India-Real-Estate.org

Hi Folks, lots of questions from our visitors have been coming on Home Loans since Banks started reducing home loan rates. Please see the previous posts for our views on what factors to consider when home loan interest is reduced (and if you are on a fixed interest rate home loan plan).

Here’s a question from Tushar Roy: If my monthly take home pay is Rs.12,000, then how much Home Loan amount can I get when it will be for 15 years?

Answer: Please use this Home Loan EMI calculator

http://wealth.moneycontrol.com/emi_calculater.php

You should take EMIs on the lower side of your affordable income because if situation turns difficult with job loss or business loss, then you can still manage to clear the EMIs.

The major news from last week for home loans and residential property is this: State Bank of India (SBI) has frozen interest rates at 8% for a year for new home loan customers. Now SBI has one of the most (if not “the most”) attractive home loan interest rate in India. And SBI is SBI…dependable PSU bank that will not go anywhere till India is intact.

So we are seeing many people getting ready to move away from ICICI Home loans and HDFC Home loans to SBI.  Some people have reported that ICICI is charging 11% to 15% even after RBI’s reduction of rates. So in this case, that decision to move to SBI makes good logic, if ICICI or HDFC are not willing to match the 8% interest rate. You should not pay 3-5% more interest than the lowest rate in the market. Read more »

India’s largest housing finance company HDFC has reduced home loan rates by as much as 150 basis points (ie 1.5%).

So now, the floating rate for home loans has come down from 11.25% to 9.75%, which is the same level as in 2006.

Real estate advisers say the maximum benefit from this rate cut will be for those people looking for home loans between Rs 20 to Rs 30 lakh.

For home loans below Rs 20 lakh, the reduction is 50 basis points as the earlier rate was 10.25%.

This home loan rate cut by HDFC comes on the back of two successive 50 basis point cuts in deposit rates in recent weeks.

This development is also likely to help the troubled real estate sector by getting them some much needed liquidity.

Hello Readers, how are you doing? We wish you a Happy New Year 2009.

This year, we will aim to share many interesting updates and real estate opportunities with you, and share at least 2 posts every month. We will cover Mumbai real estate in much more detail, and will also share upcoming properties across India in each real estate category: residential, commercial, and farmland.

Indian Real Estate is going through a challenging phase, and all players are facing liquidity crunch.

2009 will be a “Buyers Market”. Don’t let any seller tell you otherwise. If you have the cash, you are the king. As a buyer, you must use this fact for maximum negotiation.

As a seller, you must decide if you want to hold the property for later or sell now at a discount. For example, we are aware of sellers having “absolute prime” commercial land that used to have a line of buyers in Feb 2008, and today, there are no buyers even after advertising.