If you are planning to appreciate your capital then real estate is the option for you. India has emerged as a major source for generating the biggest returns when it comes to investing in real estate India. Today the country is on an exponential rising phase in the global economy at the rate of 6% to 7% GDP and 30% of this share is being churned here through the investment on the real assets.
Some of the major questions that seem to haunt the investor’s minds have been addressed in this context. What are the types of loans that are being provided by the various financial institutions in India?
- Home loans- for purchase of new home
- Home improvement loans- for construction of new home
- Home Extension loans- for extension and expansion of existing home
- Home conversion loan- those who have financed present home and yet wish to purchase another home for which some extra funds are required
- Land Purchase Loans- both for construction and investment purposes.
- Bridge Loans- for selling off present home and purchase another one.
- Balance Transfer- Pay off existing home and avail loan with a lower rate of interest
- Refinance Loans- Pay off debt incurred from private sources.
- Stamp Duty Loans- loans sanctioned to pay the stamp duty amount needs to be paid on the purchase of the property
- Loans to NRI s- Tailor-made for NRI willing to invest in real estate India.
What role do the financial institutions play in benefiting the real estate investors?
Check out the latest loan and mortgages options being given by HDFC (has started a new HDFC Property Fund for domestic investors and high net worth individuals) and ICICI (has also floated Integrated Real Estate Services for the same purpose).
The recent Government policies to boost real estate investment in India have all the more helped the salaried class in thirties to purchase home. The interest rates are as low as 7% for the personal lease. For commercial real estate investors and builders the interest is normally determined and charged according to the prime lending rate of the individual bank as in the case with HDFC, ICICI and UCO. Conclusion
With a growth rate of 30% and average rate of returns on investment on real estate India at 17% there is plenty of hope for the investors. The most important aspect is the fact that Government has allowed certain generous tax rebates and concessions both for domestic and foreign investors. This has given a major impetus in the general enthusiasm in the investment scenario in India.
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