RBI SLASHES THE INTEREST RATE !!!!!!!!!!!!


The Reserve Bank of India`s Governor Shri. Raghuram Rajan, today, cut the benchmark repo rate by 50 basis points to a 4-1/2-year low of 6.75 per cent in a surprise move.

Finance Minister ask Banks to reduce interest rates on loans


THE FINANCE MINISTER HAS ASKED THE BANKS TO PASS ON THE BENEFIT OF REDUCED INTEREST RATES TO BORROWERS, HE WAS REVIEWING THE ANNUAL PERFORMANCE OF PUBLIC SECTOR BANKS FOR THE YEAR 2014-15, THE BORROWERS MAY GET THE BENEFIT OF REDUCED INTEREST FROM 01-7-2015.

REALTY MARKET IN BANGALORE


THE SALE OF APARTMENTS HAS SLOWED DOWN DUE TO ABNORMAL PRICES AND DWINDLING OF THE DEMAND.  THE RENT SCENARIO IS MUCH WORSE.  THE RETURN ON INVESTMENT IN RESIDENTIAL BUILDING IN THE FORM OF RENT AFTER THE MAINTENANCE AND TAXES IS 2% TO 8% AND IN COMMERCIAL BUILDINGS, IT IS 2% TO 16% AND IN INDUSTRIAL BUILDINGS, IT IS 0% TO 5%, DEPENDING UPON THE LOCATION, SIZE, OWNERSHIP, TITLES,ACCESSIBILITY, AVAILABILITY OF INFRASTRUCTURE AND FINANCIAL ASSISTANCE.

BUYING A B KATHA APPEARS TO BE A VERY RISKY AFFAIR IN BBMP LIMITS.  

THE RULING INTEREST RATE ON HOME LOANS IS 9% TO 10% IN STATE OWNED BANKS AND MNC BANKS, WHEREAS IT IS SLIGHTLY HIGHER IN PRIVATE FINANCE COMPANIES.  

THE APPRECIATION OF VALUE OF PROPERTIES IS ANYWHERE BETWEEN 1% TO 12% P.A. 12% APPRECIATION IS FOUND ONLY IN 5% OF THE TOTAL PROPERTIES TRANSACTED.  HENCE, A HIGHLY CALCULATED DECISION IN THE PURCHASES WILL SECURE THE FINANCIAL STABILITY OF THE BUYER. 

INTEREST RATE HIKE-RBI


THE RESERVE BANK OF INDIA MIGHT INCREASE THE REPO RATE AND THE LENDING RATES OF THE BANKS WILL ALSO GO UP.

The rate increase is its eleventh since March 2010, making the RBI one of the most aggressive inflation fighters among central banks.

This has taken the market by surprise as most analysts expected the central bank to be more dovish and only announce a 25 basis point repo rate hike given the threat to India’s industry growth due to increased interest rates.