What is Home loan rate of intrest for fixed and flexible? wht do you think whether home loan intrest rate will hike or low?What is role of govt (State or Central) to control inlation in real estate industry? who can control it?
Govt do generally monitor real estate prices as it is a sensitive sector. Orderly growth and standardized process is necessary with respect to the price of any sector but more so with real estate as the whole banking system is based on the notion that real estate prices are relatively less fluctuate and reflects a realistic growth. Remember if real estate collapses entire banking system do follow the same.Though the reach of the govt by direct means to control the prices is limited in free market economy it follows the indirect means of controlling prices by regulating credit through banking channels. Reserve bank of India squeezes or eases liquidity to be flown into real estate by variety of measures through its credit and monitory policies. Regarding home loan interests for one year since now they Will raise after which there may be some cooling off.What is role of govt (State or Central) to control inlation in real estate industry? who can control it?
It's a shared responsibility between the banks and the buyers. Banks shouldn't extend credit(or at least too much credit) to the underqualified, and people should know what they can reasonably afford before they even look at buying a house in the first place. It's what caused this mess to begin with.
But, in the end, it's all about greed.
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