Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts

Saturday, 11 February 2017

An 'affordable' dream come true!



The Union Budget 2017-18 has shown a ray of hope to millions of home aspirants by increasing the allocated amount to 23,000 Cr. towards the affordable housing needs. This revolutionary move will give the necessary boost to the real estate sector and soon affordable housing will be a reality than just a delusion.
The decision to grant Infrastructure status to affordable housing will encourage real estate developers to plan for more budget homes. This budget brings multi fold benefits to real estate developers where they receive tax benefits, subsidies and gain access to the land specially released for affordable housing. Builders and developers will obtain an advantage of faster clearances and funds for expansion plans regarding various projects.
Hon. Finance Minister's announcement of reducing the holding period for Long Term Capital Gains from 3 years to 2 years is an affirmative step which would reflect in increased interest of investors in the Real Estate sector.
Since affordable housing would be on the high priority for financial institutions, the buyers would certainly benefit from easier funding and lower interest rates resulting into more number of home buyers and eventually increased demand for creation of new construction.
This budget brings a welcoming reform which will extend some relief to the real estate industry by providing an elimination of 25 km limit for construction site from Metro Cities and making an allowance for carpet area of 60 sq meters for the income tax exemption. It also tenders 5% corporate tax rebate for construction companies having revenue below Rs. 50 Cr.
We are sure that real sector will attain the much needed thrust through this intelligent budget. It is a welcoming move and will act as a catalyst to meet the intention of Housing to all by 2022.
Hon Finance Minister also announced that NHB (National Housing Bank) will refinance individual loans worth Rs 20,000 Cr in 2017-18. On the front of personal income tax, the existing tax rate for incomes between Rs. 2.5 lakh to 5 lakh has been reduced to 5%, and taxpayers in other categories will also save Rs. 12,500.

Highlights of the budget 2017-18 include; 1 cr. rural houses will be created by the year 2019, Pradhan Mantri Awas Yojana to get Rs 23,000 cr., Instead of Built up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be applicable for affordable housing. Further to these advantages there are few more like; Indira Awas Yojana will be extended to 600 districts,
total budgetary allocation for the infrastructure sector is Rs. 3,96,135 cr.,
budget allocation for National Highways would be Rs 64,000 cr. and indexation for capital gains has shifted from 01-04-81 to 01-04-2001.
The Hon. Finance Minister announced change in the time period for calculation of speculative rental on unsold stock held by developers for tax purposes, which will now kick in only 1 year after the completion of the project has brought a major relief to housing developers.

All these moves have been greatly appreciated by the real estate sector. The impetus being given to the road infrastructure, manufacturing and affordable housing the government has incorporated all the required elements to develop new cities around our industrial transport corridors.
Smartly crafted budget will allow the new generation to save more and promote personal investment.
With an announcement of an enormous budget plan for the infrastructure development, it will further expand the possibilities for real estate development sector across the country. In all the Union Budget 2017-18 has given some respite to the realty sector encouraging the developers as well the new home buyers!