Soon the residential sector will likely to get relief from the pain of demonetization as the Budget of Year 2017 says that the affordable or the reasonable pricing of houses will bring the boost in real estate market. Affordability is emerging as the ‘’steroid’’ for the people who are not in relief. Their demand for buying an affordable house is now seeing meeting their requirement. Realty Segment in India is totally depending upon the market prices. It has increased the allocation of Rs 15000 Crore to Rs 23000 Crore for PRIME MINISTER AWAS YOJANA which is the vital step in bringing the country closer to realising the value of housing for all. Although no specific incentives were announced for those buyers or the investors who are buying or investing first time.
As per the vision of Narendra Modi one crore houses are to be built by the end of year 2019 in rural India for the homeless and for those people who are still living in ‘’Kaccha Houses’’.
The Budget 2017 is calling as a ‘’Path Breaking Budget, as per the experts it has been come to know that granting infrastructure status to affordable housing is important as it will provide cheaper sources of finance to developers and also providing additional solutions for the developers in India to raise funds. Arun Jaitley said that ‘’we proposed to facilitate higher investment in affordable housing. Affordable housing will now give benefits to the new coming housing projects. He also said, that banks have also started reducing their lending rates, for housing.
Highlighting affordable housing as a drive area of tax proposals, he said “In his budget proposals last year, he had announced a scheme for profit-linked income tax exemption for promoters of affordable housing scheme which has received a very good response.”
To make this scheme more attractive and feasible and to make ensure homebuyers so they get good value on their investment, carpet area of 30 sqmt. and 60 sqmt. Respectively would be counted instead of the built-up area (excluding outdoor areas such as lifts and corridors).
Limit of 30sqmt will apply only in case of metropolitan cities; while for the rest of the country the limits of 60sqmt.will apply. This will also encourage leading real estate players to enter the affordable housing segment. All benefits will be passed on to customers, which in result bringing down cost of housing. “Long-term financing at lower rates will reduce costs of construction for developers hence, allow them to pass benefits to consumers, investors etc.
“At present, the houses which are unoccupied and are not in use after getting completed proposed with the completion certificates are subjected to tax on estimated rental income. The budget announcement has a condition that cash transactions above Rs 3 lakhs would not be permitted which is also likely to have an impact on land transactions.
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