The transparency and efficiency expected to rule in the real estate sector with the implementation of the provision of RERA shall come in handy for new home buyers in terms of better financing deals as well as easier access to financing means. Also those home buyers, who have already parked their hard-earned money in the immovable asset, shall be at an advantage with 10% interest payable to them in case developers default on timely delivery of property. Also know in detail, what RERA means for all the stakeholders in a real estate sector,here in this provided link.
The banking sector until now, sighting delay in delivery of real estate projects as the major concern hesitated in easy funding. However, with the enactment of RERA, the scenario is likely to see a major shift. More so, funding received from home buyers as a token money or as full cash shall be deposited in a separate account by the lender.
The amount as much as 70% shall be kept intact to meet the cost of construction of project and shall not be diverted into other investments. Real estate developers leveraged home buyer's money to secure other investors and did not paid heed to buyer's interest.
Commenting on the outlook of the real estate sector in the near future, one of the senior official of the web aggregator of real estate prices said "After implementation of RERA, lenders will provide loans with more confidence as the date of completion would be pre-decided failing to which will lead to a higher rate. This Act would not only boost confidence in the loan buyers but also among the lenders as there will be clarity about the construction cost and project completion.
"In the present market scenario, when the home loan interest rates have come down to 8.35% per annum, the eligibility of buying a property has gone up. With RERA Act, the delayed possessions will stop which will be an add-on benefit for homebuyers. Being confident about the date of the possession, they and can negotiate with the lenders on the finance amount. Also, the buyers can claim the tax benefits after the possession within 5 years from the starting date of property construction. As a result, this is a win-win situation for home buyers".