Why Should You Go for Affordable Housing?

By Sahil Arora - July 13, 2018

The housing sector in India has witnessed essential developments over the past few years. It has slowly paved the way for affordable housing, which earlier did not hold top priority. For decades, the primary focus was always on premium housing which was profitable for developers but extremely costly for buyers. As a result, it was tough for the middle and lower class to find affordable housing. However, now as the government has begun to pay attention to affordable housing, developers have diverse and cheaper sources of funding.

The grant of ‘infrastructure status’ to the affordable housing sector reduces the borrowing costs of developers. Hence, developers can pass on some of their savings to the buyers. If you are thinking about taking advantage of affordable housing yourself but are unsure about it, here is why you should go in for it.

Involvement of the Government is Constant

The Government of India has taken a steady step towards affordable housing. Those seeking a housing loan, under the ‘Housing for All by 2022’ scheme, can avail benefits. It includes monetary support, comfortable development regulations, tax rebates, as well as discounted interest rates by housing finances and banks. Hence, you get assurance knowing that you are not alone and that when Applying for Home Loans, you can take refuge in the fact that the government has attempted to make things a little less difficult for you.

Banks have cut down their lending rates

Most of the banks possess a very high-interest rate. The high-interest rates coupled with high property prices make it unaffordable to people who want a loan to purchase a house of their own. After the government’s insistence, a majority of the banks have cut down their lending rates. It is imperative for banks to do so because the Reserve Bank of India (RBI) has provided relaxation on its key policy rates. Lower lending rates boost the confidence of first-time home buyers as it helps you purchase affordable properties.

Attractive Home Loan offers for buyers

Going in for affordable housing is a good idea because borrowers stand a chance to take advantage of attractive Home Loan offers. The availability of affordable finance is motivating demand as well. The Home Loan market in India that consists of private banks, housing finance companies, state-run banks are all trying to leave a mark on customers. This makes it easy for buyers to find the most convenient option when it comes to applying for a loan.

The impact of the Union Budget on affordable housing

The government has bestowed ‘infra’ status to the affordable housing segment in the Union Budget 2017-18. While this helps generate funds at lower interest rates, it also offers a boost in construction activity when it comes to volume. It, in turn, acts as a channel to reach the aims of Housing for All by 2022. It works to draw foreign investors, external commercial borrowings, and good companies into the affordable housing initiative. This proves to be immensely beneficial for buyers and loan seekers who want to seek assistance from this initiative of affordable housing for all.

Proves to be immensely beneficial for home-buyers

Affordable housing has made the housing segment more lucrative for homebuyers as well as developers. In addition to this, it is immensely helpful, mainly since homebuyers obtain budget-friendly homes that come with excellent amenities. Other than the benefits that buyers stand a chance to obtain affordable housing also makes sure that builders cater to a broader segment of buyers. You so gain access to better and more comprehensive options, and hence, you can check a range of homes before you zero in on one. As a result, it ensures you end up with the house of your dreams.

Affordable housing: An excellent game changer

The accessibility of more affordable finance schemes is increasing the demand for affordable housing in India. This is because it assists homebuyers in making a home purchase that meets their financial budget seamlessly. Housing Loan interest rates today are on the lower side which makes it even easier to purchase an affordable apartment. In addition to this, the deadline to complete projects has increased from the current three years to five years. This gives affordable housing developers more time to complete their projects. Even the eligibility criteria have been put under the scanner and improvised to 60 square meters and 30 square meters, accordingly for non-metros and metros. 

Going in for affordable housing is a good idea as it brings with it rising urbanization, increased affordability, regulatory support, policy thrusts of the government and cheap finance availability. The term affordable housing holds a different meaning for different people. The way it benefits home-buyers is different from the way it profits developers, but yet the underlying principles remain the same. If you are having second thoughts about affordable housing, rest assured that it will help you in more ways than one.

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