Are you planning to sell your home, and you are unsure whether you can sell it at higher profits? Performing a couple of improvements and upgrades and getting support from the right expert professionals can help increase the value of your home in Gurgaon by selling it at a higher price and bagging more profits for you. The value of a home is directly connected to its condition, including the interior décor and the maintenance of your property. If you aim to sell your home sooner, then it is important to understand the best to maximize its value in terms of making it appear appealing to potential buyers who wish to buy a new home around your area.
On September 30 2022, for the fourth time in a row, the Reserve Bank of India's Monetary Policy Committee (MPC) decided to raise the repo rate or the lending rate by approximately 50 basis points. Simply speaking, the RBI increased the rate to 5.90%, joining the group of all the central banks and financial institutions that have done the same thing to counter inflation and rising dollar prices.
Let us understand the Repo Rate and how the hike will impact you and your money.
What is Repo Rate?The repo rate is the rate at which the central bank of a country (which is the Reserve Bank Of India for us) lends out funds to other commercial banks. When banks borrow money from RBI, they must submit securities like collateral, treasury bills, or Government bonds. Mostly these loans are short-term loans when a bank is in dire need of emergency funds. RBI increases or decreases the repo rate to balance inflation by keeping the money supply in check. The repo rate was first hiked this year in May to 4.40%. It was further increased again in June to 4.90 per cent. The next hike happened in August when the repo rate was increased to 5.40%. Currently, the repo rate is 5.90%.
Impact of Repo Rate Hike on Citizens
1. Loans and EMIWhen the banks or financial institutions increase the repo rates, the existing borrowers will experience a hike in their monthly EMI. This will have a big impact on people who are planning to buy new homes. The rate Hike impacts all types of loans like student loans, business loans, credit card loans, mortgages, personal loans, and various others. So if you are planning to buy 2BHK apartments in Gurgaon, you must learn about the new repo rate and how it will affect your EMI. Any change in the rate affects all types of customers as borrowing money from a bank or financial institution becomes more expensive. Therefore, it lowers the consumption of goods and services.
2. SavingsIndividuals with savings and fixed deposits will usually benefit from the higher repo rates.
3. Mutual fundsAll mutual fund investors, especially those who invest in-depth mutual funds, must be extremely careful during this hike in the repo rate. The rate increase directly affects debt mutual funds, especially all the long-duration bond funds. This is because all the bond prices start falling as the yield increases. This, in turn, lowers the return gained from debt investment. If you are a debt investor, you might experience temporary medium-range volatility.
4. Fixed deposit ratesAll the consumers who have short or medium-term investments in banks and Financial institutions like fixed deposits will benefit hugely from the higher repo rates. This is because they will be receiving much higher returns from the investment. However, this depends on how and when your bank accepts the new rate.
5. InflationBy the end of the next fiscal year, it is estimated that India will face economic stagnation if the inflation growth situation does not improve. Therefore, there won't be any growth, the unemployment rate will increase, and inflation will continue. To balance the country's macroeconomic factors, RBI continuously monitors and updates the repo rate. Every time there is a change in the repo rate has a big impact on all the economic sectors. If you are planning to buy a 3BHK flat in Gurgaon, you should visit Krisumi Japanese Waterfall Residencies.
Renting property in Gurgaon is a big deal. Looking for a hassle-free process to rent your property in Gurgaon? Then make sure you seek professional assistance from reliable sources to avoid any discrepancies. As one of the top real-estate groups in India, Krisumi is here to give you some valuable guidance and make real-estate investment a cakewalk for you!
Here are the Tips to Renting Your Property in Gurgaon:
1. Finalising the rentThe first step you need to take while renting your property is to assign a fixed rate amount. Before deciding on the amount, you must first perform a market check about the average rent prices in your locality and the current trend. A higher rent will make it pretty difficult for you to get a tenant. However, if you are fixated on getting a higher rate than the average market price, you need to justify the rent by offering extra features like complete furnishing and other premium services like top-notch security and garage services.
2. Proper AdvertisementNowadays, most people visit various real estate websites to learn about nearby places for rent. Enlisting your 2BHK flat in Gurgaon on a popular real estate website with a catchy title is a good idea. These real estate websites have a column or a page called "house on rent", where thousands of homeowners post advertisements for the properties they are putting out on rent. To post your advertisement, all you have to do is create a profile with one such website, upload the correct details of the property along with photographs and then fix a rent. On the other hand, you can also try traditional methods like advertising in newspapers or getting in touch with a broker.
3. The Rent AgreementWhile renting out your property, it is always advised that you make a legal contract. In this way, the entire process is legally documented so that there won't be any confusion in the future. While creating the rental agreement, make sure that the papers are duly signed by you and the tenant and that the terms and conditions are clearly mentioned.
4. Furnishing DetailsWhile listing out your property on rent, you need to mention the furnishing details and also share details of every extra feature and fittings of the property. This documentation process will be useful in case the tenant damages any of the furniture. In such a scenario, you can always issue a penalty charge. Additionally, you also need to make sure that the walls and roof of your rental property are in good condition to avoid any conflicts.
5. Police VerificationIt is crucial that you perform a background check on the tenant before renting the property. In this way, you can avoid all sources of trouble that may come with renting a property to a person with a criminal history. All you need to do is get the details of your tenant; you can ask for identity proof which you can cross-check from the state police department website or submit to a police station nearby to get the details. These are some of the things that you need to make sure of before renting out your property. Make sure that you mention all the terms and conditions correctly and clearly on the rent agreement. If you are looking for a 2BHK flat for sale in Gurgaon, you can always contact Krisumi Japanese Waterfall Residencies.
In the past couple of decades, there has been a steady rise in NRI investing in the real estate markets of India. According to recent statistics, out of the 80 billion US dollars India earned last year, more than 13 billion dollars was from the real estate market. Specific factors like the falling value of the Rupee and uncertainty in other investment options have made the path clear for investing in the real estate market.