Residential housing prices in the country have more than tripled in the past decade. Does it make a strong case for investing into real estate?
The yield on the 10-year benchmark government bonds has fallen sharply by 100 basis points (100 basis points is equal to 1%) to 6.4% per annum, in the last three months. Similarly, the five-year and one-year government bond yields have fallen to 6% plus levels. Fixed deposit and lending rates of banks are directly linked to these rates of the economy.
In the latest monetary policy review, the Reserve Bank of India cut its benchmark repo rate by 35 basis points of 0.35% to 5.40%. You are right in thinking that your housing loan EMI could look lower if banks follow suit and lower their lending rates too. But what happens to your committed equity and debt fund investments?