Understanding the Impact of Ready Reckoner Rate Hike in Maharashtra on Property Buyers
Real estate expert Ravi Kewalramani shares insights on how the recent increase in ready reckoner rates in Maharashtra could affect property costs for buyers and investors.
Real EstateReady Reckoner RatesProperty CostsMaharashtraProperty InvestmentReal EstateMar 06, 2025
For those unfamiliar, the ready reckoner rate is the guideline value set by the government for property transactions.
It serves as a benchmark for calculating stamp duty and other charges.
This increase, while aimed at curbing underreporting and black money in the property market, could have far-reaching implications for buyers and investors.
Real estate expert Ravi Kewalramani has come forward to shed light on these potential impacts.
According to Kewalramani, the hike in ready reckoner rates is expected to lead to a noticeable increase in property costs.
This is because the higher rates will directly affect the amount of stamp duty and registration fees that buyers have to pay.
For instance, if the ready reckoner rate for a property is increased by 10%, the stamp duty and registration costs will also rise by the same percentage.
For first-time homebuyers, this could mean a more significant financial burden.
Many buyers rely on home loans to finance their purchases, and the higher costs could push them towards larger loan amounts.
This, in turn, could increase their monthly EMIs and extend their loan tenure.
Kewalramani advises potential buyers to carefully assess their financial situation and consider whether they can afford the increased costs before making a purchase.
On the other hand, investors may face a different set of challenges.
With higher property costs, the potential return on investment (ROI) may decrease.
Kewalramani suggests that investors should be more selective in their property choices and focus on areas with strong growth prospects.
He also recommends diversifying their investment portfolio to mitigate risks.
The hike in ready reckoner rates is also expected to have an impact on the overall real estate market.
While it may lead to a short-term dip in property sales as buyers and investors adjust to the new prices, Kewalramani believes that the long-term benefits are significant.
By reducing underreporting and black money, the market will become more transparent and fair for all stakeholders.
However, the government will need to take additional measures to support the market during this transition.
Kewalramani suggests that the government could consider providing incentives for first-time homebuyers or offering subsidies for low-income families.
This could help to soften the blow of the increased costs and ensure that the real estate market remains accessible to a broader range of buyers.
In conclusion, the hike in ready reckoner rates in Maharashtra is a significant development that will have a ripple effect on the real estate market.
While it may pose some challenges for buyers and investors, the long-term benefits of a more transparent and regulated market are undeniable.
Kewalramani's insights provide a valuable perspective on how to navigate these changes and make informed decisions in the property market.
Ravi Kewalramani is a renowned real estate consultant with over two decades of experience in the industry.
He has provided expert advice to numerous clients and has been a regular contributor to real estate publications and forums.
Frequently Asked Questions
What is the ready reckoner rate?
The ready reckoner rate is the guideline value set by the government for property transactions. It is used to calculate stamp duty and other charges.
How will the hike in ready reckoner rates affect property buyers?
The hike will lead to increased property costs due to higher stamp duty and registration fees, potentially making it more expensive for buyers.
Will investors be impacted by the increase in ready reckoner rates?
Yes, investors may face a decrease in potential ROI due to higher property costs. They should be more selective in their property choices and consider diversifying their portfolio.
What are the long-term benefits of the hike in ready reckoner rates?
The long-term benefits include a more transparent and fair real estate market, with reduced underreporting and black money.
Will the government provide any support to buyers during this transition?
The government could consider providing incentives for first-time homebuyers or subsidies for low-income families to help mitigate the financial impact of the increased costs.
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