Author Archives: Venkat Chunduru

Rising interest rate to bring down homebuyers’ affordability

The rising interest rates will bring down loan affordability of homebuyers, Knight Frank warned on Monday.

A sharp rise in inflation has forced the central bank to raise interest rates and suck out excess liquidity in the market, but it could expose the home segment to a significant headwind, the realty advisory firm said.

The 50-bps hike in the REPO rate in June Monetary Policy Committee (MPC) announcement came on the back of a 40-bps increase in May. Further, the significant 1 percentage point increase in the FY23 consumer inflation estimate to 6.7%, which was higher than RBI’s upper tolerance band of 6%, and it would mean further rate hikes, it said in a statement. Home loan rates are still approximately 150 bps below those prevailing in 2019 and a reversion to those levels will result in an 11.73% increase in the EMI load for the homebuyer, which means a 3.38% decrease in affordability, as per Knight Frank’s Affordability Index.

Property disputes dominate Hyderabad civic body cases pending in SC

Land disputes dominate the majority of appeals involving the Greater Hyderabad Municipal Corporation (GHMC).

Of 21 pending trials, the civic body is handling 14 of them pertaining to property disputes. These include encroachment on government land, land acquisition disputes, land grabbing, etc. Six other appeals to the Supreme Court involve service-related matters, mainly pay disputes. Continue reading

What is depreciation of property?

Depreciation of property value is the decrease or dip in the selling value of your home. This is calculated as the ‘factor’ product of the total value of the property with the age of construction. For independent houses, it is the building component which depreciates while the land is valued at market price. Continue reading

Model Tenancy Act (MTA) 2021

After years of preparation and drafting, the union government has finally given the green light to a Model Tenancy Act (MTA) 2021, which aims to make rent laws more equitable for landlord and tenant, and smoothen the processing of renting a home. Such an act had become necessary to achieve the target of constructing 20 million houses for the urban poor by 2022 under the Pradhan Mantri Aawas Yojana. Continue reading

Resumes  Property Registration in Telangana

Registration of land, properties and vehicles resumed in Telangana with the extended relaxation hours coming into force in the ongoing lockdown from Monday.

The resumption of services came following the decision of the Cabinet to allow registration of lands, properties under the Stamps and Registration Department and vehicles registration under the Transport Department during the working days. Continue reading