In the Indian Real Estate Market, be it boom or a recession, builders make money, bankers make money, but customers get slaughtered.
The government plans to make some amends and is planning to bring in an Bill during the winter session of Parliament to protect the interests of home buyers. This is to be welcomed.
Builders issue
I believe that two issues need to included in the bill :
- When you buy a car or a two wheeler, the manufacturer gives you a warranty free or an extended warranty at a cost. In the home building/housing industry too, customers are to be provided the comfort of a warranty on the apartment/house from the builder for a minimum period of two years.
- The issue of built-up area is also a major issue, which customers don't have a control on. There is no uniformity and clarity on what is super built-up area and what is carpet area in a township/apartment. Across the county, we need to have a uniform rule, where builders calculate the cost of an apartment on the carpet area only and provide the facilities.
Read more of it in
Bank issue :
Less said better about the transparency of banks in passing the benefits of lower interest rates to existing customers. Banks are taking customers for a royal ride with an objective to protect their Net Interest Margins. While RBI is trying to address this issue, commercial banks have too much of a bargaining power viz-a-viz customers to yield their ground.
