home loan

Desires of homebuyers and developers from Budget 2018

With the 2018 budget to be announced soon, the year 2018 is full of expectations as the developers are keen to sell the homes to the homebuyers who are looking forward to buying homes. Many people will be helped by the tax benefits, while also fulfilling the ‘Housing for All’ objective of the government. Many people desire that the reduction in taxes and incentives will result in the rise of the real estate market.
Let’s see what are the expectations by the industry and buyers from this year’s budget:

Buyers are hoping:

1. Cheaper Home Loans: Banks already offer a low interest rate but the buyers hope for more. To increase the buying the rate of interest on housing loans needs a further cut. The credit-linked subsidy scheme (CLSS) under the PMAY (U) has notably helped the middle-class group. “Benefits section 80C for home loan repayments should be increased from Rs 1.5 to 5 lakh. Incentives and lower interest rates reduce the burden of EMIs on the salaried class and gives them the confidence to buy a house,” notes Nikhil Kain, a homebuyer in Delhi.
2. Exemption and Incentives: An increase in incentives for the first time homebuyers is expected by the buyers under section 80EE by way of increasing the limit to Rs 2 lakh from Rs 50,000. Young homebuyers who desire to own a home but aren’t able to do so because of the budget problems can be hopefully aided by this.
3. Reduction in tax slab: A raise in personal income tax limit is expected from 2018 Budget as the lower-income group falls in this category. In the affordable house segment, it is one of the most significant categories so the tax benefits will hopefully be helpful for homebuyers in this segment. In this budget, the tax exemption is expected to be raised to Rs 3 lakh from 2.5 lakh.

Developers hope for:

1. Industry Status for the Real Estate Sector: “The Real Estate Sector should be allotted ‘Infrastructure’ status. This will lead to construction funds being available to the developer at much lower interest rates. This is eventually going to benefit customers from the Economically Weaker Section (EWS) and Lower Income Group (LIG) as developers would be in a position of making the projects ‘affordable’ in its true sense,” notes the Managing Director of Poddar Housing and Development Ltd, Rohit Poddar.

2. Infrastructure Status to the Housing Sector: Giving Infrastructure status to the Housing Sector is expected to simplify the approval process for affordable projects, create guidelines and increase transparency. It could also attract debt and pension funds to invest in the affordable housing segment.

3. Single window clearance: The approval process is one of the main reasons for the delay in projects. A single window clearance will not only help developers kick off their projects at the earliest but buyers are also likely to get possession without any delay.

The Industry has been demanding this for a while. “The biggest delays in delivery of houses occur due to delay in approvals of projects and authorities have a major role to play in this. An online single window clearance with bare minimum human interface and precise deadlines for approvals will not only bring down the deliveries of the project by at least three years but also reduce the cost of the project by at least 15% which can further be passed on to the consumers. Going online will also boost transparency,” says the Director of ABA Corp and Vice President of CREDAI Western UP, Amit Modi.
The budget this year is expected to be different as now the tax rates for goods and services are decided by the GST Council. But to boost the real estate industry, the developers and buyers are hoping for tax relief and incentives.

January 20, 2018 / by / in , , , ,
Will 2018 see a rise in the Real Estate Market?

In 2017, the performance of the real estate market was insipid as compared to the past 4-5 years. During the past decade, Real Estate was one of the top choices for investors to invest their money in. But due to demonetization in India, the real estate sector has been affected hard and has seen a dip in sales. In 2017, the industry saw approximately 50% dip in sales as compared to 2016.

But to cheer up investors and homebuyers here is some good news: Real Estate industry will be back on track in 2018 as predicted by the experts. The reasons for this are:

Real Estate regulatory law:

The Central Government announced a Real Estate regulatory law last year, stating that a limited one- year extension on the completion deadline under the Act was compulsory rather than optional. This law will force the builders to deliver the projects on time and the delay in the delivery of the projects will end. Therefore, the homebuyers can rest assured that the projects will be delivered on time as promised by the developer.

Buyers can get loans at cheaper rates:

The government of India declared that people with an annual income of up to Rs. 18 Lacs will be eligible for loans at a lower rate to build or buy a house of up to 1500 sq ft; the restriction which was previously limited to 1100 sq ft. And those with an annual income of up to Rs. 12 Lacs can buy or build a home of 1200 sq. Ft; which was previously restricted to 900 sq ft.

Improvement in Infrastructure of Delhi – NCR

With the development of many metro stations and corporate offices, especially in Noida, a lot of potential investors are looking forward to investing in property in Delhi – NCR as it is predicted to provide great returns on their investment in the near future.

With these factors into consideration, many experts claim that the real estate industry will be back on track in 2018 and it will be a good time to invest in property.

December 28, 2017 / by / in , , , , , , , ,