Why PM Modi Wants Home Buyers To Have A Happy Diwali

You do not have to be an economist to understand the impact of a slowdown on growth. You know something is wrong with the economy when you have to pay, in what seems like, an obnoxious amount of money to buy, say, onions or tomatoes. If they come dirt cheap, your country has witnessed greater produce this year. But, you also know farmers may be having a facing a problem of the plenty and might be forced to sell the commodity at throwaway prices due to stocking problems.

The real estate sector is no different, and the past slowdown in the sector was indicative of the hardships the Prime Minister Narendra Modi-led government at the Centre has been facing to work on the growth numbers.

You thought house buying had become out of reach and decided against investing in the real estate for the time being. Your decision combined with the personal decisions of many like you hit the sector hard. Authorities and developers gave in and showed this by unfolding several reforms and incentives. Data suggest the real is on its way to revival now. But, there is no question about the hurt it has caused to all parties concerned.

Consider this.

Media reports say Finance Minister Arun Jaitley is likely to seek a Parliament approval to spend $7.5 billion more — this would be 2.5 per cent of the total expenditure budgeted for the current financial year till now — on roads, railways and other public programmes over the next five months, citing a decline in private investment as a key reason behind it. Struggling between tardy sales volume and high inventory, developers are exercising caution in launching new projects. At a time like this, the government has no choice but to open its own coffers to push growth. Apart from generating thousands of jobs, this additional spending is likely to give a push to existing projects in limbo owing to financial crunch.

If we go on about this, the headache the government faces would seem far more piercing than you and I are facing in managing our personal finances. This also gives you an opportunity to help it in your own way. How is that? This Diwali may be the right time for you to invest in property. Property prices will certainly seek a spike when all if back on track; troubled developers have set a platter of assorted offers for you this festive season hoping for a better sales season; home loans are cheaper and come easier. You could light up more than your new home this Diwali if you decided to make this grand gesture.