Wednesday, 7 September 2016

Possible Introduction of Helicopter Money Great News in Noida

Helicopter money in developed countries can have an impact upon flats in Noida in positive ways. One of the top global investors has remarked that developed economies may soon resort to such extreme measures to try and increase demand for goods in developed countries. Helicopter money is credited directly to consumer’s bank accounts increasing their purchasing power and spurring demand goods within an economy. While interest rates are already low or even negative in certain economies, by injecting money directly into the bank accounts of households, shoppers are expected to increase purchasing goods leading to increased economic activity and greater sales for companies. Low-interest rates combined with helicopter money increases the liquidity in a market; however, helicopter money’s impact can be maneuvered far better than the QE policies currently being pursued by central bankers. While central banks across the globe are engaged in quantitative easing (QE), which is essentially money printing, the impact of helicopter money can be controlled with surgical precision. Quantitative easing results in the purchase of assets which prevent the value of such assets from dropping in value while at the same time injecting the value of such assets into the economy in the form of capital. Thus the capital used to buy troubled assets flows into financial instruments such as stocks raising their price; hence the stock market in the US is at new highs. However while QE leads money to flow into capital markets, Helicopter Money leads money directly into the hands of consumers and wherever else suitable in order to spur economic activity.


Direct capital injections can be targeted to be as precisely as laser beams and may lead to the construction of new infrastructure projects in developed economies if required. Such investments always bode well for economic activity. Furthermore, as interest rates remain low in foreign countries and foreign consumers may have more money in their bank accounts due to helicopter money, foreign investors are incentivized to seek markets which have higher interest rates and thus money from overseas shall likely flow into the coffers of builders in Noida from overseas household’s keen to invest in new projects in Noida. As pumping additional money into the hands of consumers (Helicopter Money) and low-interest rates mean lower capital returns for foreign investors, capital outflows to markets such as India where returns are higher is inevitable. Much of this money would flow into residential property in Noida and into residential property across India. In particular, luxury apartments in Noida may witness greater demand particularly from overseas investors and NRI’s as the value of luxury apartments is prone to sharper price increases than is the value of affordable housing in Noida.

Direct capital injections into an economy (helicopter money) if it is pursued shall signal the failure of monetary policy (QE) to bring about robust economic growth. Helicopter money had been advocated by Paul Krugman a Nobel Peace Prize laureate a few years ago. When such a policy is pursued it will mean that developed economies across the globe shall begin fiscal stimulus; essentially spending on large infrastructure projects. Consumers too shall receive a direct injection of capital into their bank accounts. Governments hope that helicopter money shall incentivize consumers to shop more thereby increasing economic activity in a country. Much of the excess capital from the combination of low-interest rates and greater liquidity from helicopter money shall flow into emerging economies driving up prices not only of stocks but also of property in Noida and in other large real estate markets in India. 


Monday, 5 September 2016

Buying Property in India May Not Burn a Hole in Your Pocket Anymore

We all are aware of the fact that buying property can get a costly affair most of the times where buyers end up getting housing loans from a bank. The situation is however, changing with the course of time and the advent of affordable properties has improved the situation a lot. What was once a nightmare for buyers has become a fairly easy process to begin with. This proves that investing in real estate has become a seamless affair with some research and a trustworthy developer. During the year 2008-09, the process of buying property in India became troublesome due to a boost in prices and limited suitable options. Nevertheless, the situation saw a positive change after that and since the year 2010, there have been countless developments that have helped realtors to get a grip of the market.

Moving on to after 2010, just as the market was about to saturate, there was a sudden boom in the real estate industry, which proved out to be a positive phase for everyone. Leaving aside the number of unsold inventories and lack of regulations, India went on to become a location with plethora of options for a modern-day buyer. With some of the remarkable cities such as Mumbai, Delhi-NCR, Bangalore, Pune, Chennai, etc., the realty segment of India became every developer’s dream.

Talking about the prices of realestate in India, it would not be wrong to say that buying a property has become comparatively easier. Developers are now able to offer properties that are affordable yet comfortable for buyers. By thinking about the end user’s perspective, there have been a lot of improvements on the end of realtors and the trend is likely to continue for more years to come. Hence, in return of this positive change, buyers are now able to invest without worrying about their incomes.

While in the real estate terms, there is never a good enough time to invest in a property, one can always consider their options before making a decision. As we encounter how the real estate is performing right now, it is rather convenient to say that the market is surely going to pull more profits from the investors and particularly developers. According to the market professionals, the growth being recorded right now is going to continue till the next two-three quarters of the year.


More such policies by government such as home loans and investment profits are proving out to be mighty helpful for the buyers. The regular and mid-income investors who were once cynical about betting their money on real estate are not shying away anymore. The market scenario is on the road to evolution and so is the perception of buyers about the increasing prices of realty segment. Although, many of the investors have now moved on from the orthodox opinion about real estate, there is still a long way to go.

The real estate market of India is a mixed bag of offers for different people investing in it. Therefore, the best way to invest profitably is by getting a thorough research and understanding about the present trends of the market.