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Govt. to Formulate Affordable Rental Housing Scheme under PMAY
PMAY - Govt. to Formulate Affordable Rental Housing Scheme For Working Poor

While addressing a press conference on May 14, Union Finance Minister Nirmala Sitharaman said that the government is implementing an Affordable Rental Housing Complex (ARHC) scheme for migrant workers or urban poor people to make living convenient at an affordable rent. Government New Scheme Under Pradhan Mantri Awas Yojana Amid the outbreak of coronavirus, migrant workers faced challenges in getting houses at reasonable rent. The scheme will be launched under the Pradhan Mantri Awas Yojana (PMAY) by a transformation of government-funded housing in the cities into Affordable Rental Housing Complexes under PPP (public-private partnership) mode through the concessionaire. This move will help migrant workers, and urban poor people live in cities by paying reasonable rents at these complexes of government. The government-funded housing in cities would provide the much-needed drive to the revival of the real estate sector and other related industries. The affordable rental scheme is a key step towards resolving the problem of the housing of migrant labor, urban poor, and students, etc. And will provide them access to quality accommodation and security to encourage these workers not to return to their native places in a crisis like COVID-19.  There will also be tax concessions for industries, manufacturing units, and institutions to develop the AHRC scheme on their unused land. The announcement that rental housing projects will be constructed through public-private partnerships would increase demand for raw materials, create employment, and thus offer a boost to affordable housing. The sitharaman announcement overall would certainly relieve the stress of the real estate sector to a certain extent. However, the central government announcement would help thousands of migrant laborers who were the worst hit by COVID-19 also provide benefit to the allied industries  By: Shailaja K  

Revival of Property Registrations in Telangana
Revival of Property Registrations to Boost Real Estate Sector in Telangana

While acquiring a house, it is also necessary to take into consideration the registration and stamp duty charges. Such charges will increase the budget set for the purchase of your house considerably, and it will vary from one state to another. Under the Indian Stamp Act, 1899, stamp duty and registration fees are required primarily to verify the property's sale and to keep a record of the purchase.   Revitalization of Property Registration & Stamp Duty The revival of property registrations has given hope to the real estate sector dumping due to the lockdown and rising cement & steel prices. In less than ten days of full-scale registration and stamp (R&S) department operations began, the Telangana government has received Rs 78 crore, registering more than 28,000 property registration transactions since May 8th. The state government has set Rs 10,000 crore target for 2020-21 financial year to the R&S department and has so far accomplished Rs 91 crore.  The joint inspector general of R&S department Vemula Srinivasulu said the number of registrations has been picked up, and they are currently tracking half the amount of transactions that were made before the lockdown caused by Covid-19 came into effect. R&S department officials say the actual scenario will only be known after a month as at present old transactions, which happened earlier and only registration was pending, were being made. Generally, more than 6,000 documents had been registered every day before Covid-19, currently, we are doing 3,000 to 3,500 documents.  The R&S department used to earn Rs 25 crore in revenue per day earlier. Today, it is hovering about Rs 10 to 13 crore a day. Such transactions might be agreements made before the lockdown came into force, and would like to register to prevent any legal complications. If we watch out for another month, the department would know the real estate sector situation, because the majority of registrations will be new transactions. We hope that the property registrations will pick up.  The department collected Rs 600 crore revenue per month in the pre-COVID-19 period, and in the last financial year, it had earned around Rs 7,200 crore revenue. It has conducted minimum operations, but full-scale operations resumed after 8 May due to unexpected COVID 19 lockdown. Meanwhile, realtors have been proposing a revival of building activity from the Center and state government. The department says that the real estate market will initially experience a downturn due to the effect of the lockdown, but there is no issue with projects that are approaching completion. The government is taking necessary measures to help real estate consumers and developers alike.  Real Estate is a great investment opportunity and is considered as one of the best long-term investments even better than stocks, shares, mutual funds, bank deposits, or even gold. Investing in real estate is an ongoing passive income, and is a good strategy over time to create wealth.   By: Shailaja K  

Outlook on Upcoming  Hyderabad Real Estate Conditions
Outlook on Real Estate Conditions By Sumanth Reddy, NAR-India President

Although the lockdown has been increased and many large-scale construction projects have come to a standstill, property developers are optimistic about picking up Hyderabad's lucrative real estate market. Many builders think that the lockdown's negative impact is expected to last no longer than six months once it is lifted. And in this time, they hope that the banks, as well as the central and state governments, will take measures to allow people to buy property without hesitation. National Association of Realtors-India (NAR-India) National President A. Sumanth Reddy said the current stagnation in the real estate sector is temporary.  We return to normal once things get better. Sumanth says that when the market is booming, everyone has shown interest in acquiring a house even with premium prices. But in reality, buying a home is lucrative when the market is down. In a recent interview, he outlined his thoughts about current and future real estate conditions.  Let’s deep-dive in Hyderabad real estate market pre and post COVID lockdown. Current Real Estate Market Condition Many buyers are ready to buy a house if prices fall when compared to the property price before lockdown. This is a complete fraction of the 2008 situation at that time builders tried to sell a property with reduced rates, but no one came forward to purchase. Yet now it's a different situation, I don't think the real estate market would be in the downturn because during the lockdown period house is one which guarded people to stay safe and happy. Is it possible for Real Estate Prices to Fall? Prices of land are likely to decrease, and under-construction building prices are not expected to fall. Because currently, there is a shortage of workers, availability of steel, and other equipment, which could increase the cost of construction. There is also no possibility that new developments would push down costs. Hyderabad real estate prices are already very attractive, and they will rise according to the natural curve of time. There may be some decrease in some properties which are already completed and ready for possession. How long does it take for the market to recover? Once the vaccine for the coronavirus is available, the real estate market conditions will return to normal. It will take at least six months for the market to get in pitch. The Hyderabad real estate market has been booming for three years, and it is believed that the builders will be able to cope with these short bursts and bounce back. Future of Real Estate Sector The government has established several development plans with high expectations for revenue from the real estate. There are strong government measures and opportunities to keep the market from falling. In the wake of Corona, some countries are preparing to make real estate investments at some places in India besides China. Already Hyderabad is regarded as the best market in price comparison across the top 10 cities in India. Hyderabad is expected to attract investment to the country. All these are market-driven, and with the arrival of new companies, under construction buildings are likely to be complete. What changes are we going to see after the lockdown? The impact of Covid-19 has been severe in tourism. Plans to develop and expand new hotels are postponed. It is probable that the healthcare organizations will expand as the corona effect in the town is high. Those who want to live in safe places have the option to move to the suburbs of the city.  If one is planning to stay near the workplace, Satellite Townships will be available. We expect that those affected by the lockdown will be willing to go some distance for the widest interiors. Nowadays, people are more driven toward high street markets than toward shopping malls. Considering its rapid growth in education, work opportunities, medical facilities, retail, hospitality, and other businesses, the Hyderabad residential real estate sector is widely regarded as low risk and high return sources. With government, special initiatives Hyderabad real estate sector will be revived and will remain a favorite investment destination. By: Shailaja K  

TS-bPass-Approval of Self-Certification System to be Implemented from June
TS-bPass|Approval of Self-Certification System to be Implemented from June

The Telangana State Building Permissions and Self Certification System (TS-bPASS) is a futuristic initiative of the state government, which was designed to simplify the rules for obtaining state building permits. It would come into effect from the first week of June, covering all municipalities and the Greater Hyderabad Municipal Corporation (GHMC) areas. State Government New Proposal On Thursday, Telangana Municipal Administration and Urban Development (MAUD) Minister KT Rama Rao, held a review meeting on the implementation of the program. He instructed officials to be ready to introduce TS-bPass from the first week of June in Hyderabad. If the house is to be constructed within 75 square yards, the TS-bPass will permit people to build a house with self-certification.  KTR said the TS-bPass is being put into practice on a trial basis in 87 municipalities. While officials were reviewing the applications, some buildings have already been approved. So far, approximately 1,100 applications have been received.  He has asked officials to enhance the necessary infrastructure and improve employee training to ensure trouble-free transactions once the system is in active use. When the entire program is in place, the MAUD minister told them to work towards providing online approvals.  He directed the officials to provide various online options like Mee Seva citizen service centers, Mobile App for the citizens to send in their applications, apart from the offline registrations. This new system would be of great benefit to the applicants as they don't have to run from one office to another for processing their application. After uploading the application with basic details, the system generates the setbacks and other guidelines to follow, and the building owner can get the plan drawn from an architect. The government's new Self-Certification system proposal can go a long way to help low and middle-class salaried property owners, and they will be able to own a dream house constructed in a much easier way.    By: Shailaja K  

Arogya Setu App compulsory for construction firm
Central Government Directive to Use Arogya Setu App in Construction Firms

Governments around the world are looking at ways to wipe the Coronavirus pandemic curve. In India, one such move is the Aarogya Setu mobile app, which was developed to help individuals understand the risk of contracting COVID-19. The guidelines issued by different districts following the comprehensive order on lockdown relaxation given by the Delhi government to revive economic activities. It made mandatory for businesses and construction firms to ensure employees download the Arogya application to their phones as a preventive measure against Covid-19 spreading. Construction Workers to Use Aarogya App While the country remained in lockdown, during the time, migrant workers were left with no work and no income. The central government has issued orders to popularize the Aarogya Setu mobile application after six weeks of lockdown among factory and construction workers returning to work. Among other features, the application warns the user if she or he comes in close contact with a person tested positive for Covid-19. However, the user will be required to keep his phone's Bluetooth, and Wi-Fi switched on all the time. Even though installing the app was not made compulsory for the entire population, the Center has already made it a must for its employees to return to work. The Ministry of Home Affairs guidelines on the movement of migrants, visitors, pilgrims and students stuck in various states and going back via special trains and buses arranged by the governments also state that people wishing to return to their hometowns should also be encouraged to use the Aarogya Setu app to monitor and track their health status. Last week, in a separate order, the government had instructed all district magistrates and deputy police commissioners to make everyone living in the containment zone aware of Aarogya Setu 's benefits and to enable them to download and use the application. All the factory workers must download the Aarogya Setu app from their mobile phones. The manager of the factory shall file reports of the employees having cell phones, and the downloaded mobile app shall state the guidelines provided to industries and construction firms by the district administrations. The government has made it clear that any violation of the guideline would incur penalties. Allowing the phase-wise reopening of construction activity with safeguards by the government helps to boost real estate activities and the country's economic growth.   By: Shailaja K  

 5% Tax Rebate for Commercial & Residential Property in Hyderabad
Telangana to Extend 5% Tax Rebate for Commercial & Residential Property

The government of Telangana has announced orders providing a 5% rebate on property tax payments for taxpayers in both residential and non-residential categories. Furthermore, owing to the ongoing lockdown, the time to avail early bird discount has also been extended to May 31. What is the Early Bird Scheme? GHMC provides an early bird discount for all of the property tax payments in April. Taxpayers can get a 5 percent discount on their taxes according to this proposal. Therefore, if you make full payment of property tax for the year 2020-21, you need to pay just 95 percent of your tax liability. Property Tax Rebate to All Properties In a relief to owners of residential, non-residential properties around Telangana, the government of the state has enhanced the Early Bird Scheme (EBS) to all property categories without an upper limit on tax. You now have the right to take advantage of this financial year's 5% rebate under the scheme. Now property owners have time to pay their taxes up to May 31. Until now, the five-percent rebate applied only to property tax assessments with a cap of Rs 30,000 per annum in all the ULBs ( Urban Local Bodies) of Telangana, including the GHMC. Now that the limit is removed, the scheme will also help owners whose annual property tax demand exceeds Rs 30,000. MAUD minister KT Rama Rao agreed to relax the upper limit in light of the ongoing economic crisis in a video conference with municipal commissioners and additional collectors on Saturday. Minister KTR directed the municipal commissioners concerned to make efforts to increase the property tax collections and encourage property owners to avail of the discount. The Director of Municipal Administration and the Commissioner shall take appropriate action, including the granting of this facility to all taxpayers who have already paid their property tax dues for the year 2020-21, if they are found eligible under these revised orders. The proposed extended early bird scheme to all properties is expected to encourage citizens to clear their property tax dues in advance.    By: Shailaja K  

All Construction Sites to appoint COVID 19 marshal
Real Estate Construction Sites to Supervise With COVID-19 Marshal Measures

As we seem to turn a step away from the fear of COVID-19 pandemic and subsequent economic slowdown, the real estate sector is one of the first to restart its activities. While abiding by lockdown alerts and comprehensive sanitization steps, aiming to initiate construction activities in India's tier-2 and tier-3 cities and rural areas, the Center is developing guidelines to ensure the implementation of safety measures. Construction Sites with COVID-19 Marshal Contractors head back to work across the country, as the lockdown to curb COVID-19 spread is gradually easing in a phased way. Construction sites are directed to resume activity in non-containment zones, areas which are at a safe distance from the spread of the virus' hotspots. Following government standards, each construction site must have a COVID Marshal or nodal officers to ensure that the required health and hygiene measures are followed properly.  Detailed Standard Operating Procedures (SOPs) and Guidelines The marshal is also responsible for ensuring that sufficient supplies of Personal Protective Equipment (PPEs) are made available in labor camps.  It is confirmed that the laborers will be provided with PPEs according to their work requirements. Face masks, tissues, goggles, and gloves will be given to all laborers.  Coveralls would be given to those responsible for sanitation and cleaning.  The soap and sanitizer dispensers would be positioned at the main construction site's entry and exit points.  Tobacco products continue to be banned from use. Every site will have a doctor visiting every week. Sites will provide an isolation facility for laborers who have a cough, cold or other symptoms. It will become mandatory for every laborer, even symptomless workers, to remain quarantined for a fortnight and undergo a health check-up before beginning work at the construction site. They would not be allowed to leave the labor camp after the quarantine period ends. An undertaking would also be reportedly taken from every laborer if they had been in contact with a COVID-19 positive person and other health-related details. All construction material entering the site would be left undisturbed for three days as it is common knowledge that coronavirus can stay active on any surface for two-three days. The announced center guidelines are expected to offer some relief to stalled construction activities. This will also help in engaging and holding the migrant workers back at the project sites and avoid any strain further on the human-economic crisis caused by the Covid19.    By: Shailaja K  

 Force Majeure Clause to Uphold Real Estate Sector
Govt to Mull Force Majeure Clause to Uphold Real Estate Sector

To address the challenges emerging from the COVID-19 pandemic lockdown, the central government would provide an advisory to all States to take special measures to protect the interests of homebuyers and the real estate sector. Force Majeure Clause As the pandemic lockdown has already disrupted real estate construction activities due to large scale reverse migration of labor and disruption of the supply chain of various construction materials. In order to cope with the adverse impact of the current crisis, the Center will soon issue a notice to all state and property governments under Real Estate Regulation Act (RERA) to invoke the force majeure provision. This will bring considerable relief to the builders as they would receive an extension of the project completion deadlines, exemption from paying penalties to state agencies for the affected period.  What is Force Majeure? It is a standard provision in contracts that effectively relieves all parties of responsibility or obligation when an unusual occurrence or situation beyond the control of the parties, such as war, strike, rebellion, crime, plague, or an incident defined by God's legal term act (hurricane, storm, earthquake, volcanic eruption, etc.), prohibits one or both parties from meeting their obligations under the terms of the contract. Special Measures to Comfort Builders & Buyers The government will also announce measures to save the home buyer's interest and defend the industry from adverse impacts. Some of the RERA officials said home buyers would gain compensation because they would not have to pay any fines for late payments to builders during the affected time. The entire time is viewed as zero-period. So the authorities will not enforce any penalties for failing to reach deadlines for pandemic-affected projects. The provision to invoke force majeure is already there in the legislation. COVID 19 is an imminent situation, and the Center has used the Legislation on Disaster Management to tackle that. The real estate regulation law has this provision to give the builder more time for completing a project. The developers can request timeline completion information when they apply for registration with the regulators. The Central Government special measures are expected to provide relief to the real estate sector, boost much-needed liquidity, and demand creation.  By: Shailaja K  

Double Stress Fund for Unfinished Affordable Housing Projects
COVID-19: Double Stress Fund for Unfinished Affordable Housing Projects

The national lockdown to curb the spread of the novel coronavirus pandemic has stalled many Real estate activities. The proportion of 'stressed' projects is expected to grow due to the continuing shutdown, which has resulted in delays in project completion and timely home delivery. To seize the upside of the current disruption and enable speedy completion of real estate projects, global consultancy firm EY has proposed doubling of special stress fund to Rs 50,000 crore to provide liquidity to developers to finish stalled affordable middle-income housing projects. Special Funding Package for Stalled Projects Last year, a Rs 25,000 crore special window was approved by the government to provide funding for nearly 1,500 stalled housing projects with the goal of reviving the real estate sector, boosting the economy, and supporting home buyers. The government has so far approved Rs 540 crore worth projects and has issued initial clearance for due diligence in almost 14 projects. Cash Flow management and debt structuring are key to mopping up the current situation.  This will allow a crisis management plan to be drawn up and stress tests on cash position.  It will also entail close project monitoring, immediate discussions with lenders on post-moratorium options, and exploration of revival capital for stressed projects. The new fund would be available to only those projects which are managed effectively and can demonstrate complete visibility of cash flows Interest Waiver Package for Low-cost Housing Loans In addition, EY also proposed an Rs 11,000 crore package for waiving interest on home loans received for projects under Pradhan Mantri Awas Yojana (PMAY) for three months. Support for the sector in terms of solvency and liquidity will ensure the effect is not permanent. In this regard, the government could immediately announce a three-month interest waiver for low-cost housing loans, such as under PMAY. As buyers of these houses are from the economically weaker section and low-income households, the lockdown may result in a risk of mortgage default from their incomes Interest exemption for a few months will help both protect vulnerable households, boost demand for low-cost housing developers, and ensure that banks and NBFC trust remain strong in the low-cost housing segment. Besides this, the government can also allow the payment of GST paid on inputs in the construction of commercial property as compensation for GST charged on rents. The government can also permit states to suspend stamp duty for the next nine months in major metropolitan areas to boost demand, as well as defer municipal taxes and other fees for the next six months. The proposed funding package would provide a much-needed boost to the real estate sector and set it on the path to recovery and growth.   BY: Shailaja K  

Tips to minimize COVID-19 impact on builders in hyderabad
How Builders in Hyderabad Can Maximize Opportunities During COVID-19

Laborer Retention The Indian real estate contributes about 8% to the Gross Domestic Product (GDP) of the country.  This was before the COVID-19 pandemic but things may not be the same for the economy if migrant laborers – the foot soldiers of the real estate sector – witness mass disruptions. There’s a need for builders and developers in Hyderabad to minimize the COVID -19 effect on their ongoing and future projects by adopting a humanitarian approach. This is possible when the sector goes out of its way to make migrant laborers feel reassured with financial, health, and emotional security through confidence-boosting measures. With the center relaxing lockdown allowing migrant laborers to travel, the real estate builders in Hyderabad will be hit hard if there’s a reverse exodus to villages. States like Bihar, UP, West Bengal and Assam provide the bulk of migrant laborers to construction hubs. Equally, the workplaces at the construction sites need to gear up to meet all social distance and hygiene measures. Laborer Incentives The real estate sector would find itself in a catch-22 situation if the COVID-19 situation improves, but migrant laborers who left already do not return to the cities. Such a scenario calls for out-of-the-box policy measures & incentives to woo them back. This can include linking the flagship Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the construction sector, allowing them to receive dual payments from government as well as the private construction industry. Focus Liquidity  The COVID-19 may likely disrupt the plans of builders and developers in Hyderabad when it comes to launching new commercial and residential projects in the immediate future. Thus, a business continuity plan (BCP) must focus on offloading existing inventory with some bargain for the buyers to overcome liquidity crunch. RERA Extension The statutory protection available to real estate stakeholders including buyers under the Real Estate Regulation Act (RERA) needs a relook post the COVID-19 extended lockdown.  The statutory compliances including project completion due dates and registration validities for all RERA projects in Hyderabad may have to be extended for builders & developers for a duration ranging between 3 to 6 months. Reason: If not, they might get tangled in consumer cases & may pay up penalties. That the Goa RERA has already done this by extending all statutory compliances by three months, is a case in point. In fact, RERA allows an extension of project completion dates under section 6 on grounds of "force majeure". Premium Segment Unless real estate friendly COVID-19 policy measures like relief in tax deductions to real estate stakeholders, low housing loan interest, and subsidies are offered, the real estate builders in Hyderabad may find it tough to attract low and middle-level buyers. In such a scenario, the premium segment will hold the key to drive the business for real estate players. Hence, the focus may be shifted to this segment for quite some time. Digital Alignment No one exactly knows how long the COVID-19 impact will last as social distance and precautionary hygiene measures are likely to stay as the new normal. Work from home (WFH) driven economy will push the real estate sector to adopt a 360-degree digital alignment connecting all stakeholders. From a virtual tour of the project site, home banking, loan arrangements, documentation to the property registration process, the digital alignment will be the new norm. It will call for seamless digital integration of services offered by bankers, buyers, developers, builders, and government regulatory authorities.   By: Prabeer Sikdar  

Govt Permit Real Estate Builders to Restart Construction Work in Hyderabad
Hyderabad - Govt Permit Real Estate Builders to Restart Construction Work

With the coronavirus outbreak, the near-complete lockdown and social distancing have affected many businesses in India, including real estate. Construction activities throughout India have slowed down, which has resulted in project completion delay, contributing to cost overruns and impact on the workforce. To manage the uncertainties resulting from this scenario, recently, the government of Telangana has announced that real estate developers in Greater Hyderabad to undertake construction activities by securing the required material and engaging their workforce. This will enable the real estate sector to unfold its economic movement in a staggered manner. Ministry of Home Affairs Permitted 'in situ' Construction Work Chief Secretary Somesh Kumar attended the teleconference on Saturday with senior officials, the Confederation of Real Construction Developers' Associations of India (CREDAI), and Telangana Real Estate Developers Association of India (TREDAI) and declared permission to resume construction activity in Hyderabad. The proposal came a day after guidelines were released by the Ministry of Home Affairs (MHA), allowing for in situ construction in urban areas, including those falling in red zones. What is in situ construction? In situ is often referred to as "in situ" or "in-situ" as a Latin term widely used in the construction industry to mean "on-site," "in place" or "in position." It refers to work done on the building site itself, often in the finished state, as opposed to working in an off-site location as with prefabrication or pre-assembly techniques. The Chief Secretary ensured the state administration with all appropriate assistance to the project developers for the construction activities. He instructed builders to instill trust among workers, particularly migrant workers, through counseling, expanding incentives, services, and medical attention. He said every effort should be made to make sure the workers feel comfortable.  Transporting Construction Materials Somesh Kumar said the government would take measures at the builder's request to ensure a smooth supply of steel, cement, sand, and bricks. Director-General of Police (DGP) Mahender Reddy said three police commissioners would ensure smooth movement of construction goods vehicles. Once the construction process resumed, the much-needed cash flow will be ensured for laborers to get wages and developers. Since many homebuyers use loans to finance their real estate purchases, the resumption of construction activity would enable developers to increase demands on their customers who, in turn, would demand disbursement from banks, leading to a credit take-up. The government permit is expected to offer relief to the real estate sector with the commencement of economic activity and employment opportunities for millions of daily-wagers.   BY: Shailaja K  

What Real Estate Buyers Must Look At Before Buying Property
What Buyers Must Look At Before Buying Property in the Time of Covid-19

If you are a potential buyer eyeing the Hyderabad real estate market, the COVID-19 induced crisis may feel like a dampener to any investment opportunity.  The International Monetary Fund (IMF) signaling that the world economy is under a recession will only make one even more cautious. So, does that leave any scope for a real estate buyer to turn the COVID-19 recession into an advantage? It does! If you have enough liquid funds at your disposal or have means to manage a bank loan to fund your dream home buy in Hyderabad, our team at Property Adviser suggests the following tips. Keep Your Eyes Open: For those with funds at your disposal, recession provides a good enough time to invest in real estate, especially in ready-to-occupy units as the risk-factor is low for them.  What’s the expected percentage drop one can wait for ‘favorable’ real estate prices in Hyderabad to set in?  The real estate prices may drop up to 20 percent in India, opined HDFC Chairman Deepak Parekh while addressing real estate stakeholders in a webinar conducted by National Real Estate Development Council (NAREDCO) recently. There’s a rider though as one may not expect much of a ‘price reset’ or a shake-up on real estate prices in Hyderabad.  Reason: When compared to the national market, land rates in Hyderabad are already low. Industry insiders, however, do not rule out good deals and bargains for the early birds i.e. the initial real estate buyers post the COVID lockdown. Advantage Low Interest: If your preferred mode of real estate investment during the COVID-19 induced recession is through a bank-funded housing loan, the best time to exercise this option is now. Reason: Low-interest rate is here to stay for quite some time. While opting for a lock-in interest rate has its advantages, most banks offer a floating interest rate on the housing loan but that would be still good. Reason: The interest rate on housing loans are now down as the Reserve Bank of India (RBI) stimulus package for banks with “Repo Rate” (the rate at which RBI lends to commercial banks) cut to revive the economy would ensure interest rates become affordable. For now, home loan interest rate has fallen below 8% after RBI's stimulus package but industry experts believe loans would continue to become cheaper in the coming days. Delayed EMI Scheme If you are not sure as to how long the recession will last but still would like to take investment risk with a ban loan to gain from the falling Hyderabad property rates, what do you do? This is a scenario that calls for delayed equated monthly installments (EMIs) scheme that some banks offer.  Under this scheme, there is a pre-agreed moratorium period (ranging between 36-60 months) during which no EMIs are required to be paid. The EMIs are supposed to begin after the end of the moratorium period, which would thankfully help one to sail through the turbulent recession. Low to High EMIs This is another option offered by some banks that can be explored to withstand the uncertain recession period. The EMIs stay low in the initial period but increases after a couple of years. Which one of the above tips may work best for you? There are no hard and fast rules but the ideal thing for a buyer is to keep a tab on the Hyderabad real estate trend, wait for the right time and make your move.   By: Prabeer Sikdar

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