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R Ramachandran Nair</B>, director & chief executive officer, LIC Housing Finance Ltd.
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'Home buyers may not have bargaining power tomorrow'

January 2, 2009
Undeterred by the current scenario and job-related insecurities, R Ramachandran Nair, director & chief executive officer, LIC Housing Finance Ltd., believes that this is just a passing phase. He supports the view that this is a natural cycle, and whatever goes up (property prices, interest rates, inflation), comes down.

In a candid interview with Harsh Roongta and Bienu Vaghela of Mr Nair discusses where the real estate market is headed, should young borrowers go for floating or fixed rate home loans and why should home-loan borrowers insure liabilities like their home loans.

The real estate market is going through a crisis. What would you advise a youngster thinking about purchasing her/his own home now?

It is very difficult to predict the direction and magnitude of the price movement on real estate. One can only assume that forces of demand and supply would always apply and price movement would follow accordingly.

For the consumer purchasing an apartment for her/his own use, this could be a good time. Not only have interest rates softened, the home buyer can also possibly get a good bargain from the developer, if she/he negotiates well.

In fact the kind of bargaining power the customer is having today may not be possible in the near future particularly when interest rates have softened and property prices have moved downwards. If the scenario persists for another two months and demand rises then property prices can go up.

Customers are benefiting permanently owing to the negotiations across the tables which are leading to a substantial cost reduction (in the prices at which they buy a home now).

Courtesy: is a guide to home loans in India. Apnaloan also enables consumers get best best home loan rates by making banks compete for their loan.

Also see: Auto insurance: Frequently asked questions

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