Restructuring move by RBI provides breathing space to real estate borrowers.

Restructuring move by RBI provides breathing space to real estate borrowers. With a vision to boost demand in the Real estate sector there has been revision in the policy rate by RBI. In wake of high inflammation this decision by RBI is looked upon as breathing space. The decision to extend a one-time restructuring term loans with up to 2 years moratorium will work wonders for hassled real estate developers or individual borrowers in housing segment. Restructuring of loans will be on the basis of recommendation of expert committee steered by KV Kamath said the Central Bank. During this time of restructuring of loans there won’t be classification of Nonperforming assets. The Central Bank has further went on and announced further monetary infusion to the tune of Rs 5000 crores to National Housing Board with a hope to provide some relief during time of crisis. Many builders and developers are seeing this framework and flexible repayment scheme as much-needed relief to resume operations smoothly. The superior finance flow is also seeing for real estate developers to complete in stalled projects. In first half of 2020 there was decline in real estate even the launches declined by 46% but new measures are bringing in new hope in real estate segment. Attachments area

Are you first time investor in Real estate?

Are you first time investor in Real estate? Consider these five things

Real Estate is considered to be most crucial and long term decision the person has to ever 

make. It could be easy for a beginner investor to get carried away with lucrative options. Seeing 

the returns is must whenever you are investing in property.

Here are five full proof guidelines for a beginner investor to look upon while buying property, 

some of them are as follows:

1) Registration of RERA: When you have all commenced the processes of hunting it is 

important to check if the housing project is registered under RERA. If the seller or developers 

say that the project is RERA approved. Don’t forget to check the RERA number. You could 

simply check it online or physically through local municipal authorities.

2) Get into details of other costs too: You could be easily fascinated with idea of closing the 

deal but don’t forget to check in other charges like maintenance, amenities charges, water 

taxes this could disturb your financial budget later therefore it is viable to check all this costs. 

The comparison should also be done for ready to move in structure or under construction 

project. It is also important to check in the brand value of developer which will help you later in 

selling the flat.

3) Planning Budget: It is must to establish on budget before even you start fetching for 

properties. Without bothering your essential items, you should be able to repay your financial 

loans. Don’t go in higher persuasions of amounts that can’t be paid later.

4) Property Type: Be certain with perceptions of what you want to do with property. Like are 

you targeting to earn rental income, do own use or want to get an investment resale value. 

When you are all clear in mind with these points you can better look forward for a good 

property. Pertaining to perceptions you could go for calculating returns short or longer ones.

5) Liability of Taxes: Even the government takes a high end initiative by giving good offers to 

home buyers. The house owners get an interest rate benefits through schemes like PM Awas 

Yojana. Under section 24 there are also tax benefits on housing loan and section 80C along with 

payments done towards stamp duty and registration. Make sure you read on that liabilities 

clause before signing of documents.

Once you have got through all five points, you are all set to go ahead and make a deal thus step 

into real estate investments

100% percent FDI approval by Government special grant to realty sector.

 

100% percent FDI approval by Government special grant to realty sector.

Due to the pandemic many realtors are facing liquid crunch and delay issues. In these unpredictable 

Covid 19 times; government is trying to help every possible sector. To bring more ray of hope and 

investment in real estate sector every possible aspect is being seen.

The planning is on to give go ahead for 100% overseas investment for completed project and even 

there are relaxations to be given in FDI rules for projects that are completed. If this move will be 

implemented then real estate firms can easily monetize complete housing projects amid liquidity 

crunch problems caused due to pandemic throughout the globe.

Industry experts are looking forward to welcome the proposed relaxation stating that if the completed 

projects are being monetized then concentration will be on finishing pending projects that seem to be 

struck due to lack of funds. 

Already weighing options of gaining more investments have been started from overseas in 

construction sector. It is said that only in the few aspects FDI norms can be further relaxed and housing 

is also one of them. Centre is also looking forward to ease in simple to invest in India and gain back 

momentum in economic that was also majorly hit by virus.

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