home loan – Page 7 – FindMyProperty

With union budget on the limit of being announced, the real estate sector has come up with a host of views and demands. 3 key expectations of the realty market, from budget 2017.

1) Clarity on REITs: Help the guidelines for the Real Estate Investment Trusts (REITs), to get the easy funding and ensure timely possession of the project for the realty sector. Tax clarity certainly helps investors and buyers, by hassle free transactions. One of the main reason for lack of funds, so delay in completion of projects.

2) Tax benefits for Home Buyers: It is major boost for realty sector. A deduction in income tax rates and stump duty will also be great measures. Another boost on tax benefits NRIs who invest in Indian properties. The central government can also reduce the stamp duty in the states/union territories where they are in power. Such a move could encourage other states to follow suit.

3) GST Law: Real Estate Sector is fervently awaiting clarity on the slabs slotted and construction market, in the Goods and Services Tax (GST) structure. Taxes should be reduced, especially for the affordable housing segment. It would be beneficial, if home buyers can come under the lowest possible slab of the GST, thereby, enabling greater affordability for prospective home buyers.

Real Estate Sector seems to have taken a big hit from demonetisation, with builders seeing their sales drop in last three months and now holding their hopes on buyers coming to market with ‘white money’.

Buyers appear to be holding back their purchase plans on hopes that interest rate would fall and property prices would be fall post demonetisation in residential sector, which some see as a cleansing of a sector infected with prohibited funds. As per industry data, resale or secondary market, where maximum black money gets deposit, has been worst-affected as transaction almost dried up and barring some interest in trademark properties, due to lack of cash after fighting of old 500 and 1000 notes.

Though, many builders and property experts also said it is too early to say that black money has been completely removed from the sector though it has become especially difficult to effect cash transactions as of now. But previous year have been many policies with RERA (Real Estate Regulatory Act), Benami Properties Act and low circle rate, would be help in destroying black money in real estate sector to a great scope and improve the industry value.
Due to demonetisation, in primary and secondary market, were affected during November and December as buyers postponed their buying decisions not only in real estate but across the entire sector. Sales in the primary market have started to improve, with banks lowering interest rates on home loans, in NCR Market, which huge delay in projects completion. Real Estate Market will become totally transparent.