Potential real estate buyers may not feel happy, after the RBI scraped the 20:80 housing loan program. In the past, all the real estate professionals were just buying lands and old properties, for the purpose of constructing new homes, under various projects. They needed to pay only twenty percent of the value of the property and the banks were sanctioning loans for the rest. The real estate businessmen were able to attract homebuyers, with new and innovative schemes. It was easy for them to raise the money from the new homebuyers. In addition, they were making money by selling the properties to the potential buyers.
In one way, it is a happy news for the new home buyers, since the price of the property would come down now. The RBI feels that the real estate professionals are in need of money and they don’t have sufficient cash for their construction projects and they would be pleased to sell their properties, with the reduced prices.