Even though there is a period of sluggishness in the real estate and the pace of selling of the house is sluggish, according to the banking regulator Reserve Bank, it has become very difficult for the common man to buy a house in the last four years. Reserve Bank of India has done a survey for this. In the survey of RBI, it has been said that the house has been away from the reach of people during this four years.
The difficulties of home buyers in Mumbai have been the highest. Here’s the difference between people’s income and home price. This means that the house in Mumbai has been the most distant from the reach of people.
The Reserve Bank is conducting residential property price surveillance surveys (RAPMS) on home loans given by selected banks and housing finance companies in 13 cities on a quarterly basis since July 2010.
While releasing the survey, the Reserve Bank said, “In the last four years, the household income has gone away from the reach of the common people.” The ratio of income from housing (HPTI) has increased from 56.1 in March 2015 to 61.5 in March 2016. Compared to the income of the people, the prices of houses have increased. “
According to the Reserve Bank survey, buying a house in Mumbai is the most difficult and the easiest in Bhubaneswar.
RBI’s survey says that the ratio of income from the average debt (LTI) during this period has also been 3.4 out of March 2015 to March 2019. An increase in this ratio suggests that the house is far from the reach of people. It has been said in the survey that the ratio of the average loan (LTV) ratio has increased from 67.7 to 69.6 percent, which shows that the banks are now taking more risk in giving home loans.
LTV is related to the risk of debt on housing loans.
Another conclusion in the RBI survey is that the income from the average monthly installment (ETI) ratio has remained almost steady during the last two years. It really tells about the eligibility of borrowing a person.
Compared to the other cities of the country, Mumbai, Pune and Ahmedabad have registered the highest average ETI. The Reserve Bank did this study in Mumbai, Chennai, Delhi, Bengaluru, Hyderabad, Kolkata, Pune, Jaipur, Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneshwar.