[ecis2016.org] With Arun Jaitley unveiling the Union Budget 2017-18, Housing News speaks to a few home buyers across the country, to gauge their reactions to the focus on infrastructure and the push given to the affordable housing sector and how it affects their decision to buy a home
Senior manager – telecom industry, Pune
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Home buyers’ confidence in the real estate industry, is likely to increase, if the Real Estate Regulation Act (RERA) is implemented at the earliest. Demonetisation has already impacted the industry and RERA will only improve the scenario. I am planning to apply for a home loan, as the rates are slightly low now. Moreover, one can avail of tax deductions on both, the principal repayment and interest, to reduce the income tax burden. With the focus now on affordable housing, there will be an increase in supply and reduction of prices. Incentives on low-cost housing and the reduction in interest rates by banks, will boost this segment.
Also, the importance given to construction of roads, rail and airports, may reduce urban congestion. This will help places like Pune and also the development of new industrial cities. I am planning to buy a house in outskirts of Pune and I am positive about the development prospects.
Public relations consultant, Mumbai
Demonetisation has changed the dynamics of the real estate market and there will be more transparency now. It is very difficult to buy a home in Mumbai, as one needs huge investment. The Union Budget 2017-18 has proposed a reduction in the tax rate for the base income slab but not for the higher slabs. Focus on construction of new roads and improvement of roads, will benefit buyers who opt for houses in the outskirts of cities. With the criteria for affordable housing being changed from built-up area to carpet area, affordable homes will become a bit more spacious.
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I am waiting for prices of small homes in Mumbai’s outer suburbs to reduce and then I will buy a property. As more builders may now start affordable housing projects, supply is likely to increase, thereby, reducing costs. Hopefully, housing prices will come down by 5%-10% in this segment.
Director of photography, Mumbai
My wife and I, have been planning to buy a weekend home outside Mumbai and are considering regions near the highway, in Kasara. We will have to apply for a loan and we hope to get a good rate.
As banks now have surplus liquidity, we hope that they will further lower their home loan interest rates. With the Budget 2017 focusing on improving road and rail transport and infrastructure, this will lead to overall development and improve connectivity. So, it will be better to buy a property along the outskirts of the city, which is more affordable.
Property owners are now allowed the benefits of long-term capital gains after two years. This will increase ownership of homes, as for most of us, real estate remains a valuable investment.
Chartered accountant, Hyderabad
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To give a push, post demonetisation, the prime minister announced two housing schemes for the urban poor and lower middle-class, in which the government will provide interest subsidies ranging from 2%-4%. The finance minister, has followed this trend in Budget 2017, by announcing measures for the affordable housing segment, in tune with the PM’s plan to provide 20 million urban houses across India by 2022, under the Pradhan Mantri Awas Yojana. This is likely to encourage a user-driven market, rather than an investor-driven one. Nevertheless, I will still wait, before buying a property in Hyderabad, as prices are still high and good properties below 2,000 sq ft are scarce.
The government is yet to implement the Real Estate (Regulation and Development) Act. Also, no announcements on the roadmap for the Benami Transactions Act was announced in the budget, which is likely to clean up the real sector by improving transparency and bringing about a correction in prices. So, it is better to wait for greater clarity, till the real estate sector reorganises itself with greater transparency.
Captain Om Prakash Mishra
Demonetisation has increased the deposits with the banks and thus, interest rates on housing loans are now quite low. This has helped home buyers in a big way.
With the impetus on urban housing provided by the government in this budget, affordable housing schemes, especially in tier-2 cities like Jaipur, are likely to grow. Jaipur has many salaried employees and people who own small businesses, who aspire to own homes in budget of Rs10 lakhs to Rs 20 lakhs.
With the incentives/subsidies on home loan interests, this dream may come true for many. Home buyers with a budget of above Rs 20 lakhs, are also likely to get good bargains from builders. Considering all above factors, this is the best opportunity for home buyers. One can also consider investing in the outskirts of Jaipur, as the budget allocation for the national highways has been increased and this will facilitate better connectivity.
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