When the whole world was watching US presidential selection which could lead to an upset win for candidate Mr Donald Trump, few of us might have thought that prime minister Modi would plan something bigger to steal the thunder of Mr Trump. Prime Minister Narendra Modi’s late evening announcement on demonetization of 500 and 1000 high value notes would cease to be legal tender within few hours not only gave a stroke to every Indian, but also drowned completely and made everyone to rush into the nearest ATM.
Some people had arranged big amount of cash for buying new home and it was obvious that all were high value bank notes. Few people suffered little trouble in exchanging the money. Common Indians have always suffered when they decide to buy a new home or property for their future resistance. The only reason to this is that people who carry huge amount of black money, purchase real estate properties to hide their cash transactions. Black money hoarders put their piles of cash in real estate sector and this has been the favourite assets class for them. They always undervalue their property buying transactions by giving black money to the property seller. Lands and properties have become the great asset to spend their black money in one go. Also, there are few fraudulent builders who support black money hoarders. This way property demand goes up in the market and common man suffers from this high price.
How were commoners suffering earlier before this move of PM?
Day by day India is getting acquainted with technology and various property building projects are running. Millions of common people in India, dream about a home of their own as a permanent and reliable asset. They always seek for a stabilised and under their budget in real estate sector so that they can buy a new home. But, real estate prices are always destabilised because black money holders buy all the lands and properties to hide their illegal cash. They know that putting their money in real estate is the easiest way to hide the black property transactions. Because of this reason, common man never gets a good option to buy a new home as per their budget. Prices go up day by day and their dreams never become true.
How is this going to help the common man?
- Most buyers in real estate do the transactions in black money. Once black money goes out of the system, over-valued property prices will be stabilized soon.
- Most of the Indian commoners will be able to buy their dream home by their hard-earned money.
- Maximum people will start doing deposits in bank accounts. People will prefer cashless transaction and cheques rather than cash. Also, banks will gain huge volume of deposit from them.
- Banks will be having a liquid flow of deposit money and they may come up with better Home Loan schemes. Using these home loans people can buy their own house to make their dream successful.
- Real estate properties or land prices will be stabilised and people will be able to buy their dream home in affordable price.
- With Government support, in future, so many Smart City Projects are coming to provide everyone with the standard lifestyle of living.
- Overall, Real estate sector will gain a healthy boost in the long run.
Having an own property or dream home would be the best asset ever one must have imagined. Housing will be for everyone who earns hard money in half of their life to buy property near them. President Pranab Mukherjee has commented that real estate will benefit greatly in the long run by the demonetization decision of the government.