Dinesh Kamath's news item 'High property rates worry buyers' that was published in Newsband

High property rates worry buyers

By Dinesh Kamath

NAVI MUMBAI: People who want home loans are finding it extremely difficult to get them. To get loans from banks and other financial institutions, long procedures need to be followed and even after that there is no guarantee of getting loans from them. In the past it was much easier to have a home of one’s own owing to the ease with which one could get home loans. But it is not so currently.  

The increase in stamp duty is causing more problems. In Navi Mumbai, the minimum rate at which a flat is available is around Rs 30 lakhs – i.e. if one wishes to buy a 1BHK of 600 sq feet. The bank doesn’t sanction the loan, unless you pay 20% of the amount in cash.  In addition, the buyer has to shell out Rs 15 lakh for paying the stamp duty and registration. If the buyer waits for sometimes to arrange for the cash amount, by the time the amount gets accumulated, the rate of the property is found to have gone up. This is the problem that the buyers face.

Developers and estate agents are found to be merciless since they just are never willing to negotiate the rates, although they are aware of the problems faced by the buyers. One can’t blame the developers and estate agents too since their problems are genuine considering that the prices of plots have really gone up.  

When the plan was put up to have an International airport in Navi Mumbai, an area around the airport was chalked out and this was called Navi Mumbai International Airport Influence Notified Area (NAINA). The state government gave the charge of this area to City and Industrial Development Corporation (CIDCO) which became the special planning authority for NAINA. This created panic among the developers who thought that since CIDCO was now in charge the rates of the plots would increase. Hence in anticipation they started increasing further the property rates.

The CIDCO then made it clear that it would not try to acquire anybody’s plot and that it would play just the role of the planning authority. This gave some relief to the developers, real estate agents and flat buyers.