A slowing economy. A bonanza for property buyers.
The Indian GDP fell by 0.5% in the latest quarter and currently is 7% for the quarter ended June 2015. Over the last year, growth has been hovering in the 6.5-8.5% range.
On a global canvas, when most economies are tottering and China is choking, ask any economist if these figures for the Indian economy look bad and he is bound to choke up with laughter.
But, think about it. It is a fact that India is slowing down. In absolute terms, a 1% fall in the nation’s GDP would mean a loss of hundreds of billions of dollars in trade and revenues.
Now, here’s the curve ball. The Indian investor or borrower may actually benefit from this doomsday scenario.
As per a recent Firstpost report, real estate was one of the sectors to experience a slowdown in transactions and economic output. There were recent exhortations by the RBI governor to clear housing inventory (read lower prices) in order to arrest the sector’s slowdown before expecting rate cuts.BLOG
Though this may become a game of chicken between the real estate sector and the RBI to see who blinks first, something is bound to give-either home loan rates or property prices. There are other factors, other slowing sectors that may force the RBI Governor’s hand in softening the rates.
This means only one thing for the Indian property purchaser – it’s time to lick your chops and keep your war chest ready for a prime property buy!
YOU MAY ALSO WANT TO: Check our Home Loan EMI Calculator in case you’re already sharpening your knives for a property buy.