Should You Buy Property After Demonetization? Home Loan Blog - Tata Capital

Should you Invest in Real Estate Post Demonetization

Mar 08, 2017

In the wake of demonetization, many people are concerned about the real estate market and how the big move is going to impact the sector. Along with the recently passed Real estate Regulatory Act, demonetization is sure to bring transparency in the sector. However, some steps should also be taken towards cashless transactions in realty sector - which is still going to be an issue regarding the demonetization aftermath - to prevent illegal purchase of property. Like most other sectors, real estate is also expected to be reformed. But when? The process has begun and in the coming months, there will be a lot of transparency in realty dealings. So, it is a really good time for the first-time home buyers to purchase property.

If you are planning to purchase your first house, post-demonetization is the right time to do so and here's why.

Amazing offers

Since there's less cash in the market and the unaccounted money is out of the picture, builders are in desperate need of cash liquidity to fund their construction projects and even pay off wages. Therefore, they would be negotiating their projects with buyers with home loan eligibility. The important aspect to consider here is that they are not going to significantly cut down the prices as this impacts their credibility with previous buyers. But the new buyers are going to leverage some great offers like modular kitchen at the price of traditional kitchen, etc.

Reduced land and resale prices

The resale property segment is going to take the biggest blow and the options for buyers will widen tremendously. And since all real estate dealings are going to see more transparency, sellers can no longer price their properties at their will. Real estate boom is expected in the coming years, which will enable the common man to apply for home loan and purchase low-priced properties.

Less home loan rates

Most of the first-time homebuyers fund their purchase from home loans. Thanks to demonetization, home loan rates are expected to drop down and even EMIs will be considerably lowered. This will make homes more affordable for buyers. Those with good credit can even apply for home loan online and make the most of this opportunity at the earliest.

Market reformation

Demonetization will shift the real estate dealings through banking channels cutting out the need for brokers who raise the price of certain properties to exorbitant rates. This will further bring down the prices.