Tagged: PMAY

ATM :: Now is the time to book your dream home as property prices are set to head north

Real estate experts feel that home prices have bottomed out and they are likely to move higher in the new financial year. They say that this could be one of the best times to buy your home since loan rates, too, are attractive.
Sarbajeet K Sen | Source: Moneycontrol.com | Retrieved on 6th Apr 2017

ATM

The real estate sector has seen one of the worst times post-demonetisation with sales falling across the country, bringing down home prices. With the financial system having been successfully remonetised to a large extent, what is the outlook for the sector in the coming financial year?

Will activity in the real estate sector pick up 2017-18? Will sales pick up? How will home prices move in the coming fiscal? What will the factors driving real estate be post April 1?

The Confederation of Real Estate Developers Association of India (Credai) is optimistic that the new financial year would be good for the real estate sector and rising sales will lead to home prices moving up.

“The outlook for real estate in 2017-18 is very positive. The recent flurry of reforms and policy initiatives have set the tone for the future growth of the sector. This growth will be driven by efficient implementation of the initiatives and the subsequent rise in demand. We will see the residential sector take center-stage and be the driving force of the sector,” Getamber Anand, President, Credai told Moneycontrol.

Anand says that residential real estate prices have bottomed out and they would move up in coming months. He says those planning to buy homes should finalise the deal now.

“Prices in most markets have bottomed out and stabilised. Imbalance between demand and supply will result in an increase in property prices in the main markets. The recent policy moves have also restored consumer faith in the sector and the fence-sitters are slowly realising the timing is right for a purchase,” Anand said.

He also pointed out the loan rates are some of the lowest now. “With Pradhan Mantri Awas Yojana (PMAY) and the exemptions provided on housing loan in the Income Tax Act, the effective rate of interest for a home loan of about Rs 35 lakhs works out to about 5 percent only which improves the affordability factor and will further elevate the demand in the sector,” Anand said.

Surendra Hiranandani, Chairman & Managing Director, House of Hiranandani, agrees that low loan rates would push demand. “Post-demonetisation, interest rates have been reduced significantly on the back of huge inflows of deposits in the banking system making home loans cheaper. The various reforms undertaken by the government will address concerns faced by home buyers. Increased transparency and credibility will make it more attractive for consumes to invest in real estate,” Hiranandani said.

He also feels that homebuyers should seize the opportunity. “Homebuyers must use this opportunity and invest in properties that are available at attractive prices. They can purchase homes of their choice by full cheque payment. Those looking to buy resale properties can now avail higher finance through banks as the entire payment will happen through cheque,” Hiranandani said.

Hiranandani also feels home prices will move up after the turn of the financial year. “Home prices are expected to pick up in the second quarter of 2017 as the overall economy improves after demonetisation. Also, with Real Estate Regulation and Development Act (RERA), GST and other regulatory changes coming into effect in the coming months there is bound to be better transparency and credibility in the sector.

However, new launches would get impacted due to the implementation of these rules, so the demand for available inventory and ready-to-move-in homes will increase. The rise in demand will ensure that prices will move up again in good quality projects. This is the perfect time to buy a property,” he said.

Source: https://goo.gl/eB9J31

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NTH :: Pradhan Mantri Awas Yojana: How To Apply For Home Loan Interest Subsidy

This home loan interest subsidy scheme is part of the government’s ‘Housing for All’ initiative. The scheme will be implemented initially for a period of one year.
Written by Surajit Dasgupta | Last Updated: March 27, 2017 11:18 (IST) | NDTV Profit

NTH

The government last week announced guidelines on interest rate subsidy scheme under Pradhan Mantri Awas Yojana (Urban) for middle-income groups. The scheme has been named as Credit Linked Subsidy Scheme for Middle Income Groups – CLSS (MIG). Under the Pradhan Mantri Awas Yojana (Urban) scheme, middle income groups (MIG) with annual incomes of above Rs. 6 lakh and up to Rs. 18 lakh per year are eligible for interest subsidy on buying their first home. The scheme was earlier announced by Prime Minister Narendra Modi in his New Year’s Eve address to the nation.

Prime Minister Narendra Modi had announced interest subsidy of 4 per cent on housing loans of up to Rs. 9 lakh for those with an income of Rs12 lakh per year and of 3 per cent subsidy on housing loans of up to Rs.12 lakh for those earning Rs. 18 lakh per year. This home loan interest subsidy scheme is part of the government’s ‘Housing for All’ initiative. The scheme will be implemented initially for a period of one year. Additional loans beyond the specified limit, if any, will be at non-subsidised rate.

Here are 10 highlights of the interest rate subsidy scheme under Pradhan Mantri Awas Yojana (Urban):

1) Beneficiaries eligible for interest subsidy under the CLSS scheme have to apply to their lenders for availing the subsidy benefit.

2) Home loans sanctioned or applications are under consideration since January 1, 2017, are eligible for interest subsidy under the Credit Linked Subsidy Scheme for Middle Income Groups. The beneficiary earlier should not have own a house in his/her name.

3) The total interest subsidy accruing on these loan amounts will be paid to the beneficiaries up front in one go, thus reducing the burden of Equated Monthly Instalment (EMI).

4) Besides commercial banks, housing finance companies, regional rural banks, state and urban cooperative banks, other financial institutions like small finance banks and non-banking finance company-micro finance institutions can also lend under this scheme.

5) National Housing Bank (NHB) and Housing and Urban Development Corporation (HUDCO) will reimburse interest subsidy to the lenders. No extra processing fee will be charged by the lenders from borrowers.

6) Interest subsidy will be provided on loans for construction/acquisition of house with carpet area of up to 90 sq metres for those with income of up to Rs. 12 lakh per year and of up to 110 square metres for those earning between Rs. 12 lakh and Rs. 18.00 lakh per year.

7) Under the scheme, the tenure of loan has been stipulated to be 20 years or that preferred by the beneficiary, whichever is lower.

8) Sriram Kalyanaraman, MD and CEO of National Housing Bank, said that interest subsidy of 4 per cent will bring down EMIs of beneficiaries by Rs. 2,062 per month on a housing loan of Rs. 9 lakh and interest subsidy of 3 per cent will bring down EMIs by Rs.2,019 on a loan of Rs.12 lakh, taking normal housing loan interest rate as 8.65 per cent.

9) The total interest subsidy for middle-income people over 20 years on Rs. 9 lakh loan and Rs. 12 lakh loan comes to around Rs. 2.30 lakh per beneficiary (the present value of interest subsidy provided to beneficiaries over the tenure of 20 year loan at a discounting rate of 9 per cent.

10) Kotak Institutional Equities in a note said that the scheme will give a boost to the housing sector provided real estate players offer compact products at lower ticket sizes. This scheme will help bring down overall interest cost for home loan borrowers, the brokerage added.

Source: https://goo.gl/0ZCtM5

NTH :: Reduce Home Loan EMIs Under Pradhan Mantri Awas Yojana. How It Works

National Housing Bank or NHB has come up with operational guidelines for availing subsidy under Pradhan Mantri Awas Yojana (Urban) for middle-income groups.
Written by Surajit Dasgupta | Last Updated: March 29, 2017 12:09 (IST) | NDTV Profit

NTH

National Housing Bank or NHB has come up with operational guidelines for availing subsidy under Pradhan Mantri Awas Yojana (Urban) for middle-income groups. Under the Pradhan Mantri Awas Yojana (Urban) for middle-income groups, home loan borrowers buying their first home are eligible for subsidy on interest repayments. The scheme was earlier announced by Prime Minister Narendra Modi in his New Year’s Eve address to the nation. Sriram Kalyanaraman, managing director and CEO of National Housing Bank, termed the government’s decision to give subsidy to middle-income groups as “historic”. “This is historic as the middle income group has never been covered by the subsidy,” he told NDTV Profit.

As part of the government’s “Housing For All” initiative, Prime Minister Narendra Modi had announced interest subsidy of 4 per cent on housing loans of up to Rs. 9 lakh for those with an income of Rs12 lakh per year and of 3 per cent subsidy on housing loans of up to Rs.12 lakh for those earning Rs. 18 lakh per year. The scheme has been named as Credit Linked Subsidy Scheme for Middle Income Groups – CLSS (MIG). The scheme will be implemented initially for a period of one year.

Here are 10 highlights of the interest rate subsidy scheme under Pradhan Mantri Awas Yojana (Urban):

1) Home loans sanctioned or applications are under consideration since January 1, 2017, are eligible for interest subsidy under the Credit Linked Subsidy Scheme for Middle Income Groups. The beneficiary earlier should not have own a house in his/her name.

2) Beneficiaries eligible for interest subsidy under the CLSS scheme have to apply to their lenders for availing the subsidy benefit. National Housing Bank will pay the subsidy upfront to the lender.

3) Mr Kalyanaraman said National Housing Bank will most likely pay the lender within one week. “We would just reduce your (borrower) principal as soon as the bank claims with us. Principal effectively stands reduced to that extent,” he said. To avail the scheme banks have to get an undertaking from the customers that this is the only house they have. No extra processing fee will be charged by the lenders from borrowers.

4) The home loan borrower can then opt for lower EMIs or repay loan faster with original EMI, he added.

5) EMIs under the scheme could get reduced by Rs. 2,000 to Rs. 2,800 per month, depending on the loan amount and tenure, and the effective interest on loan could fall by up to 75 basis points, Mr Kalyanaraman added. Additional loans beyond the specified limit, if any, will be at non-subsidised rate.

6) The total interest subsidy for middle-income people over 20 years on Rs. 9 lakh loan and Rs. 12 lakh loan comes to around Rs. 2.30 lakh per beneficiary (the present value of interest subsidy provided to beneficiaries over the tenure of 20 year loan at a discounting rate of 9 per cent.)

7) Interest subsidy will be provided on loans for construction/acquisition of house with carpet area of up to 90 sq metres for those with income of up to Rs. 12 lakh per year and of up to 110 square metres for those earning between Rs. 12 lakh and Rs. 18.00 lakh per year.

8) Besides commercial banks, housing finance companies, regional rural banks, state and urban cooperative banks, other financial institutions like small finance banks and non-banking finance company-micro finance institutions can also lend under this scheme. National Housing Bank has already tied up with many big lenders and is in the process of signing agreement with many others.

9) Under the scheme, the tenure of loan has been stipulated to be 20 years or that preferred by the beneficiary, whichever is lower.

10) Kotak Institutional Equities in a note said that the scheme will give a boost to the housing sector provided real estate players offer compact products at lower ticket sizes. This scheme will help bring down overall interest cost for home loan borrowers, the brokerage added.

Source : https://goo.gl/UGaMte