In pursuit of an integrated city
The Hindu : Most of us end up looking at property as an investment option due to various reasons. While the prospects of earning good returns is a driving force, the tax sops has been another motivator in recent times. As a result, families with double incomes have often looked beyond a single property. The congenial interest rate atmosphere did its bit as home loans with an annual interest rate of 8-9 per cent didn’t pinch the Indian middle class or the high net worth individuals.
However, the sharp rise in interest rates in the last 12 months coupled with the slow-down in appreciation in property prices have made many take a fresh look at their home loan commitment. It is not completely misplaced as every fresh hike in home loan rate, even by a 0.25 percentage, adds to the EMI. As a result, many borrowers have been forced to readjust their home loan commitments.
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