All those house hunters out there who always had a tough time owning a house for themselves, we have something good in store for them.
The current consequential initiative espoused by our Prime Minister Narendra Modi on demonetization of 500/1000 currency notes as a remedy against black money is surely going to reform a lot of things across all sectors.
Although the note ban move has been considered as a game changer for the nation, we can’t deny the ramifications it shall hold out to the capital intensive Real estate sector.
On the contrary, many predict this move as a means of correction in property prices and sure-fire way of strengthening the real estate sector in the long run.
For home buyers, the tables have turned. Owning a house seemed too outlandish a proposition, but with this recent note ban move, a dip in residential property is likely to be an observed repercussion.
Also, the endless tug of war between the rising property prices and purchasing power of buyers may go down the tubes, much to the delight of buyers.
Let us now take into consideration some key points which would help us in taking decisions pertaining to Housing after this note ban move:
1. With the availability of more cash, the rate of interest will further drop down making way for heartening situations for buyer’s hereafter. Now this seems to be a great news for all those who used to refrain themselves into investing for a home mainly due to high EMIs.
2. Going forward, many states would implement the new act imposed by the Government, i.e., Real Estate Regulatory Act (RERA) which is an act to safeguard the interest of the buyers which would eventually pave way for a much fair dealing when it comes to housing industry.
3. Another bunch who will be benefitted will be the ones seeking to own a house in the high-end or luxury category. Since they play with an enormous amount of cash we may see prices plummeting making it affordable for the buyers.
4. In the wake of the price cut to push up sales because of cash crunch and high inventory, the buyers will surely bask in the glory of affordable price ranges. But for now, they too may wait and watch as the prices may fluctuate.
Even though the situation looks affirmative with respect to the buyers, but still it’s too early to gauge the gravity of the shakeup and its aftermath. While we can see the investors and buyers are adopting a wait and watch policy due to traces of uncertainty.
Nevertheless, the demonetization move may have put the real estate sector at cross roads now, but in the long run this strategy will definitely deliver on its promise. The high-level reasoning behind this master stroke will eventually make up for a much pure, clean and a mature economy and we can see that coming.
And the Real estate sector which may sense some commotion at present will also reap the benefits of it in the long run.