The interest hike by the first housing finannce Instt is against the interest of middle class. HDFC is always a first mover in putting span in the dreams of middle class though the objective of founding this Instt was to help people buy homes for which the HDFC get funding from NHB at a lower rate. Also they collect deposits from public at less than 10% but the spread they earn is much higher than other banks also. Now the other banks will also hike the rate. The otherwise dull real estate market will further dip in the mud. Rising inflation and interest rate will further increase the cost of housing for the common men. Secondly, those who have already taken the loans on floating rate ill feel the pressure extremly as either their tenure of outgo will increase which may result in default also. This may turn into a crisis like sub-prime in USA. If this result into recession due to Inflation, default, Oil price etc then economic Growth will hurt very very badly. Is this the India's Finest Economic reformer's gift to countrymen after country has promoted him to Prime Minister. The policies of present Govt. is absolutely responsible for this.
Why not all HL borrowers come out on streets against this hike?
Like Gurjars get what they want through agitation... like all pro-reservationists force politicians tow their line ifthey take street rout... I think it is time for all Indians to come out and create a revolution against Govt.'s wrong economic policies which is destroying
RE:Against Interest of Interested Indians
by Raju Painter on Jun 20, 2008 10:29 PM Permalink
SuperPower,
Real Estate is a market best stirred clear off by the "middle class"!
When a person from the "middle class" jumps in this frying pan, he or she is bound to get fried completely!
Instead of buying "flats" that are effectively stacked-up shoes boxes, it would have been better if that money was invested in a real homes with land around them in Tier two or three cities!
The way India is "progressing", the collapse of its high-profile, high-demand metros is imminent!
The best bet now is the smaller, less populated cities and towns which will develop into better laid-out living areas (that is contingent on the developers and city planners learning their lessons from the disasters the major metros have become)!
If you followed the herd with its asinine instint and are getting cooked by the "hot" conditions, you have no one to blame but yourself!!
