Good News For Home Buyers
Koshy Varghese, MD, Value Designbuild Pvt Ltd, Bangalore
Amid the crisis that the current pandemic has created, the decision of the Reserve Bank of India to cut the repo rate by 40 basis points should come as good news for home buyers. We are however in a period of uncertainty where people are hesitant and prefer neither to spend nor borrow. It will be interesting to see where this goes. Much would depend on how much of the benefits banks and HFI’s actually pass on to the one taking the loan. If this massive cut is passed on to the customer in its entirety, it will encourage him/her to look at the purchase of Real Estate. However, those who choose to buy/ borrow at this time must have a certain appetite for risk. Additionally, there have been reports of Banks/ HFI’s preferring to park excess cash with the RBI rather than lending in the present scenario. We hope that any drop in EMI’s will benefit existing as well as future customers, unlike earlier.