National Housing Bank warns against Teaser Home Loan Rates

National Housing Bank, which regulates housing finance firms, has warned against risks to the sector from teaser rates under which loans are given at concessional rates for a limited period. The Finance Ministry, as also the banking sector regulator RBI, have already expressed their apprehensions over teaser rates, which a number of lenders, including SBI, HDFC and ICICI Bank, have been offering in a bid to expand market share.

“We have to be on top of the issue (teaser rate)… closely follow the issue to have better handling of the subject so that it should not start hurting the sector,” NHB executive director R V Verma said.

Real Estate Revival can Boost Connected Industries

When major sectors in the economy do well, it augurs well for several ancillary industries that depend on them. A case in point is the Rs 5,500-crore Indian glass industry, which has shown good growth in the past few quarters driven by an uptick in demand from user-industries such as infrastructure, construction, automobiles, food processing, beverages, pharmaceuticals and cosmetics, among others. The past four quarters have seen a steady growth in the fortunes of glass companies —with some of them swinging to profit. For the industry, FY09 was not particularly favourable. During the first half, when demand was relatively buoyant, companies faced soaring prices of key inputs. And during the second half, when commodity prices stabilised, demand stagnated due to the economic slowdown.

real estate

* Apartment - An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
* Multi-family house - Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
* Terraced house (a.k.a. townhouse or rowhouse) - A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.
* Condominium - Building or complex, similar to apartments, owned by individuals. Common grounds are owned and shared jointly. There are townhouse or rowhouse style condominiums as well.
* Cooperative (a.k.a. "co-op) - A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

Latest Property News on 'Real Estate Trends'

The Indian Real Estate Markets have gone through a decisive learning curve during the last year. As the year unfolds, it is anticipated that real estate markets will be governed by more orderly and thoughtful approach.