Demonetisation impact: The last hurrah of King Cash in real estate

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

Demonetisation: PM Modi has created a new normal, will clean and expand economy, says Arun Jaitley

Official Narendra Modi has made "another common" of white exchanges with crackdown on lessen cash, Finance Minister Arun Jaitley said on Monday, giving affirmation concerning that demonetisation will affect to a bounce in private hypothesis and more open spending on welfare measures. Tending to BJP parliamentary putting away over the result o the choice, he struck Rahul Gandhi saying from one perspective the Congress pioneer says the demonetisation choice was especially spilled to BJP overpowering hitters and on the other he guarantees "that even Finance Minister, that deciphers I, was likewise not cautious".

Talking finally, Jaitley cleared up all parts of the move and said, "Demonetisation has form relationship with poor with franticness and with strained quality engaging" and said once the substitution of money fulfills a sensible level, th controls will be reinforced.

Portraying the conceivable positive results of this move, Jaitley said the nation reliably gets Rs 4-5 lakh crore and after this move and these awesome conditions can be utilized for open spending for improvement of typical districts and mix of poor About Rs 8 lakh crore will be amassed from wage charge this year and Rs 8.5 lakh crore from circumlocutory duty however despit that another Rs 4-5 lakh crore is required to hold up under costs for running the nation, he said.

"..so if the good 'ol fashioned drive paying framework makes in the nation… then do we have to get cash… and in the cas these borrowings of about Rs 4-5 lakh crore reliably can be used as a touch of country spaces for wretchedness enabling and othe square with measures," Jaitley included.

Source:- Indianexpress