Assured Returns on Property - Myths Busted

As the customers have become wary in the recent times while buying properties, builders have come up with new ideas to woo customers. Out of many innovative ideas, one is Assured Returns on the property. 

One can easily size up the kind of desperation the builder is in by checking the amount of assured return he is ready to offer on his properties.

The selling point in the Assured Return Scheme is that the returns are higher than the Bank F.D.s. Well that may be true prima fascia, but one needs to specifically understand that the builder is returning back the same money in installments which was paid to him initially by the investor, over a period of time agreed in the buyer/builder agreement.  To service the interest payouts the builder jacks up the price of the new project which might not be necessarily in sync with the current market prices.

It is also quite possible that the builder

RBI Policy April 2014 - Review

The RBI has kept all rates unchanged on 1^st April 2014, as was expected. It has maintained status quo in its first bi-monthly review of monetary policy whereby the reverse repo, repo and the MSF rate continue to remain at 7.00%, 8.00% & 9.00% respectively. However, it reduced liquidity available under overnight repo by 0.25% of NDTL of banks and moved this amount to the 7 and 14 day term repo window.

The central bank’s view going forward is that, it sees moderating inflation and is trying to achieve a target of 8%  CPI by Jan 2015. 

Nevertheless it is also skeptical about upside risks from upcoming monsoons (which can be anybody’s guess), outcome of the national elections and the fiscal policy (new central govt. budget for the remaining year), geo-political events and their impact on the commodity prices.

As already highlighted in my earlier blogs, RBI has very limited firearm with which it can tame the inflation. The onus lies more with the central government which needs to ...