Real Estate 2012 – Powerful Measures Will Encourage Investment In Real Estate
The real estate sector donates prominently to Indian GDP, a buoyant section impacts in cascading good results on economy. The current economic condition has affected the real estate field in orders of huge interest prices both for house purchasers also developers, decreased liquidity because off slower retail sales and huge cost of funds.
Along with Budget 2012 being over the corner, it offers the Government a chance to identify the concerns afflicting the housing section to confirm good quality houses at reasonable costs. Few major matters for deliberation are shared below –
The government must raise tax deduction for interest on mortgage for self- engaged property from 150,000 to 300,000 and the restriction of deduction below section eighty C beyond the existing restriction of rupees one lakh on principal refunds of house loans. This will boost a person to purchase a home and allow refunding the bank mortgage a speedy rate.
Past year, the Government has prolonged one per cent interest subsidy for house loans more than fifteen lakhs where price of home doesn’t exceed twenty fine lakhs. The chances of this subsidy can be augmented to contain a huge cost band of budget housing to advantage house purchasers, majorly in less revenue groups. At presently, very less really projects serve homes pricing low than twenty five lakhs.
Recently RBI required to eliminate the price of stamp duty, other charges and registration while measuring worth of property for conceding home loan. RBI might have envisioned to curb gossip in real estate sector through searching to curb purchasers who buy homes for investment drives and to confirm that the house purchaser pays a huge proportion of total price.
But this move will creel genuine purchaser’s interest to buy a home and can impact in decreasing demand. The RBI and Government must carry in measures to secure the genuine purchaser’s interests.
The Government must award incentives to State Government to encourage them to decrease registration prices and stamp duty. A device for justifying the impact of multiple level stamp duty must be believed or the stamp duty price for following sales can be at a less rate. When this will certainly have tax income problems, the resulting removal of disorganizations in the system will prominently raise of housing stock.
Government must apply provisions for Special Residential Zones to offer push to the housing section and carry important amendments to real estate mutual fund rules to make this specifically possible and boost an organized housing lease market.