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sathyam guda
House loan firms- In a Fix
by sathyam guda on Dec 16, 2008 02:37 PM  | Hide replies

Measures by Government to boost economy by and large appear to be more in the nature of protecting the price line from dropping. This in particular can be inferred from the interest rate cuts. For instance there is sharp interest cut for housing loans up to Rs.20 Lakhs. Please note where do a person intending to buy a house can get a residential flat can get the flat at Rs.20 lakhs. Even today (in the midst of financial crunch/recession etc) the minimum cost of a flat that was available at Rs.12 to 20 Lakhs costs between Rs.30 Lakhs and Rs. 40 Lakhs. The simple prescription of Government evidently appears to be bail out realtors lobby and housing companies lobby and not the general public and the middle class. Hence it is good if none of the general public or middle class buy the Government policy and keeps itself away from getting lured by lower interest housing loans by banks till such time the realtors and housing companies are compelled to revise the price line to realistic pricing (See what happened to gamble based and trade based Stock exchange – artificially bloated by bog moneyed foreign and other investors).


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newbloger
Re: House loan firms- In a Fix
by newbloger on Dec 16, 2008 05:37 PM
Spot on.

Governement is saving greedy builders instead of helping common man. Such governments should not be allowed to pass any bail out package for RE estate which have had as much as 400% profit margins in last 3-4 years.

Property rates should drop at least by 50%. Then situation will improve automatically, even if interest rates are kept high.

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