Contrary to expectations that demonetisation will blot out the use of black money, there are reports that it is still in use in real estate transactions. A sting conducted by a real estate channel in Mumbai indicated three things: developers were willing to stagger payments over several months if the cash portion was paid in new notes; those who wanted to pay with old notes had to pay a premium over the face value of these notes; property dealers were eager to sell at discounts and for cash.
Does this indicate that black is still beautiful in real estate?
Actually, no. It probably represents the last hurrah of King Cash in real estate, and one can expect future deals to be less and less cash-oriented.
The spike in black money deals is probably temporary, and one could have predicted this when Rs 500 and Rs 1,000 notes were demonetised from the midnight of 8 November. People are trying to get rid of cash, and this is apparent from not only its short-term rise in real estate, but also in increased payments of municipal taxes, and increased sales at petrol bunks and utility bills, areas that were exempted from the ban on accepting old notes.
sOURCE:-Firstpost
Does this indicate that black is still beautiful in real estate?
Actually, no. It probably represents the last hurrah of King Cash in real estate, and one can expect future deals to be less and less cash-oriented.
The spike in black money deals is probably temporary, and one could have predicted this when Rs 500 and Rs 1,000 notes were demonetised from the midnight of 8 November. People are trying to get rid of cash, and this is apparent from not only its short-term rise in real estate, but also in increased payments of municipal taxes, and increased sales at petrol bunks and utility bills, areas that were exempted from the ban on accepting old notes.
sOURCE:-Firstpost
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