Some banks announcing a decrease in interest rates recently is an indication of easier times for home loan borrowers. Over the last two cred...
Some banks announcing a decrease in interest rates recently is an indication of easier times for home loan borrowers. Over the last two credit policies, the Reserve Bank of India has not touched the key rates - cash reserve ratio, repo and reverse repo rates. The inflation rate is under check and the apex bank found no reason to draw out any liquidity from the system. Also, banks found enough liquidity with them to get bullish on marketing home loans and cut rates.
For home buyers in Bangalore this comes at the ideal time. The city is on the verge of drastic change with the international airport around the corner. This development promises to change the economic equation of the city. This apart, the many arterial and radial roads coming up are creating more new localities around the city with the connectivity they promise. This leaves scope for more IT clusters, residential districts and retail options. Those looking for a home now have more options to choose from. And with rates looking set for some downward movement, it is a good time to buy.
On another front, investors will find it a good time to look for some options in the real estate sector. With the demand for housing, retail and commercial spaces set to gain ground in the city, thanks to the international airport, property investments for rental returns will look even more attractive. While capital appreciation has always served investors well here, rental returns has the potential to turn property into a solid asset that one should make a part of his investment portfolio.
The stock markets have been volatile. The US subprime crisis and the talk of a recession there have led to volatility in the markets over the last few weeks. With the volatility being a cause of concern for risk-averse retail investors, property investment will be a strong blip on many an investor radar.
The India Inc growth story is intact and is promising much. The GDP projection of around eight percent growth and the good corporate performance seen in the last quarter are encouraging. The retail revolution has begun to move into Tier II cities now and the arrival of more domestic and global players will only add to the options before property investors.
The property investment pattern here was largely a second home. This was significantly due to the IT-driven affluence. To a large number of home loan borrowers completing repayments of their home loans, a second home as an investment looked attractive. With the variety of options before them, many went in for a second residential property in the city as an investment. Now, apart from a second home, they even have options of commercial and retail property.
A property investment involves three basic factors - loan rates, potential returns (rental and capital gains) and prospects of the realty sector.
The conditions look good on all three fronts. The loan rates seem set to see some softening with inflation under control. There are no significant inflationary pressures that threaten to push the inflation rates spiraling upwards. The returns on property has always been good and promises to get better with an uptrend in demand on the cards now. The prospects for the realty sector is promising with the international airport entailing a spurt in commercial activity. The hospitality sector, commercial space market and housing will find demand from a host of ancillary segments coming up in the city, driven by the demand the airport and international traffic will generate.
Investors will find the property market an attractive ground to park funds in.
Documents required when you are buying a property
Courtesy: Times of India, Bangalore
For home buyers in Bangalore this comes at the ideal time. The city is on the verge of drastic change with the international airport around the corner. This development promises to change the economic equation of the city. This apart, the many arterial and radial roads coming up are creating more new localities around the city with the connectivity they promise. This leaves scope for more IT clusters, residential districts and retail options. Those looking for a home now have more options to choose from. And with rates looking set for some downward movement, it is a good time to buy.
On another front, investors will find it a good time to look for some options in the real estate sector. With the demand for housing, retail and commercial spaces set to gain ground in the city, thanks to the international airport, property investments for rental returns will look even more attractive. While capital appreciation has always served investors well here, rental returns has the potential to turn property into a solid asset that one should make a part of his investment portfolio.
The stock markets have been volatile. The US subprime crisis and the talk of a recession there have led to volatility in the markets over the last few weeks. With the volatility being a cause of concern for risk-averse retail investors, property investment will be a strong blip on many an investor radar.
The India Inc growth story is intact and is promising much. The GDP projection of around eight percent growth and the good corporate performance seen in the last quarter are encouraging. The retail revolution has begun to move into Tier II cities now and the arrival of more domestic and global players will only add to the options before property investors.
The property investment pattern here was largely a second home. This was significantly due to the IT-driven affluence. To a large number of home loan borrowers completing repayments of their home loans, a second home as an investment looked attractive. With the variety of options before them, many went in for a second residential property in the city as an investment. Now, apart from a second home, they even have options of commercial and retail property.
A property investment involves three basic factors - loan rates, potential returns (rental and capital gains) and prospects of the realty sector.
The conditions look good on all three fronts. The loan rates seem set to see some softening with inflation under control. There are no significant inflationary pressures that threaten to push the inflation rates spiraling upwards. The returns on property has always been good and promises to get better with an uptrend in demand on the cards now. The prospects for the realty sector is promising with the international airport entailing a spurt in commercial activity. The hospitality sector, commercial space market and housing will find demand from a host of ancillary segments coming up in the city, driven by the demand the airport and international traffic will generate.
Investors will find the property market an attractive ground to park funds in.
Documents required when you are buying a property
Courtesy: Times of India, Bangalore
