Malaysia Real Estate

[JessyMac11]

Notwithstanding the likely marginal upward revision of home loan rates, the attractive rates coupled with tax incentives and the high returns on residential property present a strong case for the home buyers to make most of the home loan bonanza.

The last time interest rates on home loans by Builders in Kerala were upped by 50 base points was in the last quarter of the year ended March 31, 2005. Barely had the dust settled down that there is now renewed talk of another, albeit marginal, upward revision by home loan players to the tune of about 25-50 points. However, industry experts are of the view that while a rate increase was indeed a distinct possibility, it wasn’t big enough to deter the decision of home buyers or make a dent in the formidable fortress of the home loan industry, which disbursed about Rs 60,000 crore in FY’05 alone and is growing at an impressive 30 per cent per annum.

There is nothing official about it just as yet, but current market feedback strongly suggests that a marginal increase of home loan interest rates by 25 to 50 points may be just around the corner. It’s the proverbial wake-up call for home loan customers as also for those dithering over their decision to take one, although it’s not expected to cause more than a ripple in a buoyant market that has clocked an impressive 30 percent growth rate in recent times.

Interestingly, this expected increase in the interest rate follows close on the heels of a similar raise (50 basis points) by big-ticket players in the last quarter of the year ended March 31, 2005.

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