Effect of old currency ban on Indian real estate. Before that please understand – What are the long term effects of ban on Rs. 500 & Rs. 1000 on Indian economy?
- Complete curb of Fake Currency circulating in the market, alteast for some years.
- Decline in Black Money – However this will not be 100% as big defaulters are still away from the reach of law as they have money deposited abroad or they have already converted to white money via alternative mean. This is big blow to medium range Black Money Culprits as their stored money will have no use now.
- Reduce in Corruption for some time – It will take some time for people to find the way to pay huge amount of money as corruption – till they make sure that new notes are safe.
- Collection of Tax via Black Money – People having black money will deposite the money in the bank and pay taxes however penalty will add up to almost 90% of their money will be paid as tax.
- Cashless Economy – This is still just hope since people will move to online/card transaction however it will take some time, there is no infrastructure at merchant level also rural population or even city people are not tech savy right now.
- Increase in Amount in Savings Account – People will deposit money in bank accounts thus increasing the total amount in bank account.
- Home loan interest rate will reduce- More funds to banks account it leads to increase availability of funds for both developers and home buyers
- Increase in Online Transactions thus helping Fin- Tech Startups like Paytm, Freecharge etc.
- Real ESTATE price will go down in same cases and going up in some cases.
NOW come at Effect of old currency ban on Indian real estate.
we have three type of property-
- (TYPE A) Property Market price is much bigger than circle rate. ( 2.5 times, 3 times , 4 times, …….10times… etc)
- (TYPE- B ) Property Market price is bigger than circle rate. ( 1.5 times , 2 times last)
- (TYPE -C) Property Market price is equal to circle rate.
- (Type- D) Property Market price is lower than circle rate.
Now understand what is Circle rate and Market Price
Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment or a commercial property can occur.
Market Price is the current price at which an asset or service can be bought or sold.
NOW COME ON EFFECT-
TYPE A property- The market price will go decrease upto 30-40-50%.
TYPE B property- The market price will go decrease upto 10-15-20%.
TYPE C property- The market will shoot up.and increase upto 20-50%.
TYPE D property- The market will stable, the price will increase or decrease as the demand increase or decrease.
HUDA affordable housing flats come in type C property. so thats why the these demand will increase.
The ban on Rs 500 and Rs 1000 notes could lead to further reduction in interest rates on home loans and increase availability of funds for both developers and home buyers.
“I expect mortgage rate of 7.5 percent in coming time”
Effect of old currency ban on Indian real estate, Fake Currency, Black Money, Corruption, collection of tax, real estate price, home loan interest, economy