Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Better times for home buyers ahead?
Thu, 9 Apr Pre-Open

We have often expressed our skepticism about players in the real estate. Lack of enough regulation, professionalism, transparency and accountability are some of the key issues with Indian property markets. The same have had an adverse impact on the home buying activity and investments in the sector. Not to mention the rising speculative activity and black money transactions thriving on this sector.

But soon the real estate sector may witness an act of cleaning. With Union Government planning to set up a regulator for the real estate sector, it is likely to be a lot more transparent and credible.

As stated in an article in Livemint, the Cabinet has approved amendments to Real Estate (Regulation and Development) bill to create uniform regulatory mechanism.So let us see what difference this regulation can bring to real estate sector and home buyers.

The new bill will seek more disclosures from the developers. And these disclosures will not be just about promoters, but about the crucial details of the project as well. Further, the bill will make registration of all projects and real estate agents mandatory. And the ones who do not toe the line will be made to bear the penalty.

It is a common practice with housing developers to collect advances from customers for a promised construction date, and then to use it for other purposes. This not just leads to a delay in house possession, but also leads to opportunity loss on the amount offered as advance. At the same time, it is almost like free money for the developers for which they are hardly ever held accountable. As per the new act, the developer is supposed to put 50% of the collections from customers in a separate account which will be used only for the concerned project. Unnecessary changes in the plans will not be allowed unless approved by two thirds of the customers. The act also sets a deadline of 3 months for ongoing projects that have not received a completion certificate. Better transparency, accountability and standardization are likely to allow better access to finance in the real estate segment and provide a congenial environment for more home buying. The act will be applicable to commercial properties as well.

All this sounds good indeed. However, as far as project delays are concerned, the regulatory authorities are equally responsible for the same. Hence, we hope that equal thrust will be placed to ensure efficiencies in project execution at the end of all the involved parties. Also, while the bill has been approved, the Government should also make sure that it is followed, else it will end up just providing a false sense of security to investors and home buyers.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Better times for home buyers ahead?". Click here!

  

Views on News

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

Gold could Hit 40,000 Sooner Than Expected (Profit Hunter)

Aug 16, 2019

Domestic gold prices are firing on both engines now. Gold prices could touch 40,000 faster than you could imagine.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Intraday Trading for a Living (Fast Profits Daily)

Feb 15, 2021

In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS