Monthly Archives: January 2017

Impact of Demonetization on Real Estate

demonetization impact on real esatateStripping of currencies legal status is what is termed as Demonetization. It has been the long debated government policy now and has little or more impact  on almost every citizens of our country. Effect of demonetization on real estate has been very  much controversial with loads of romours and own speculations. But, lets have a look at the facts and statistics about its impact or reality market.

Most of the people thinks that it will help eradicate black money and will bring the much needed transparency which will build confidence and have the long lasting stability in the realty market. Our Hon’ble Prime Minister Narendra Modi has said that that over 5 lakh crore deposited with banks are not going to be kept idle and Banks will have to extend loans for all sorts of economic enterprises – for which they will have to bring down their interest rates, which seems to be a good sign for realtors. With falling interest rates property market will become more attractive.

Also since all the well organized companies choose to do their transactions through legal channels and financial means using bank loans and emi it will have a very positive impact on them. For those who used to do their transaction in cash will be forced to choose cheques and other legal payment modes which will eventually generate more confidence in buyers and more and more people will start investing without much of worries.

In short Demonetization is another big step along with Real Estate Bill and other government policy towards greater transparency  and better customer confidence. The sector is  also expected to receive more attention from foreign institutional investors given the improved transparency and better systems being in place.


Investing in real estate property and financial stabilty

Does owning a house still mark a significant achievement in realizing our financial dream? Now a days we may notice that more people are choosing to rent instead of buying a home. The most common reasons I guess includes housing prices are too high, payments are too expensive. There is some truth in those reasons, but I hope to make a case for owning your own home that goes beyond an investment. Owning Real Estate is more than just financial dream it make you feel the stability in your life. It diversifies your overall portfolio. Most investors recognize the value in diversification among different asset classes to reduce investment risks. Having the appropriate mix of investment enhances the chance of reaching your investment objectives while minimizing risks or chances of failure which may occur sometimes. Today we are observing a lot of uncertainties around the world which affects our jobs, businesses, investment policies and so on in one way or the other. Government policies like Real Estate Bill, Housing for All and Demonetization had made the Real Estate market more transparent and stable for the long term for both buyers and property holders. These events makes the changes the way we want to invest our hard earned money. As investors we react to these changes and it affects our choices.I am sure that it feels pretty great that at least one asset you own, the home you live in whether it is your rented property or you own them sees some consistent appreciation.