Is it the right time to buy a house after demonetisation?

Homebuyers waiting in the wings to buy a house may consider prolonging their wait for a couple of months as banks may announce a cut in home loan interest rates

Homebuyers waiting in the wings to buy a house may consider prolonging their wait for a couple of months. And that’s because of a these reasons. First, after demonetisation and inflow of funds into the system, most banks are expected to announce a cut in home loan interest rates.

Homebuyers waiting in the wings to buy a house may consider prolonging their wait for a couple of months following demonetisation and expected home loan rate cut. (Photo: Burhaan Kinu)

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“Very soon we may see interest rates lowered to sub 8% levels,” says Samantak Das, chief economist and national director- research, Knight Frank (India) Pvt. This can have a huge impact on homebuyers’ equated monthly installments. Second, buyers should wait for the income tax sops announced in the next Budget. This may help them decide whether they have the wherewithal to purchase a house now.

Real estate experts also say that while the luxury and resale markets are likely to see corrections, the mid segment housing market is likely to remain slow but stable.

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