The Union Budget 2017-16 has given the real estate in India a much needed boost and is promising for home buyers. The budget has made way for affordable housing and funding for residential developments.
Here are some highlights from the budget that are set to make home buying dreams a realty:
Boost to private sector
Since affordable housing is in everybody’s radar, other private sector businesses would want to venture into real estate too. Companies dealing with cement, pipes, tubes, water supply, sanitation, etc. will witness an increase in demand thus creating a drop in construction costs making way for better deals by builders.
Cheaper homes for buyers
As the overall construction price drops, the price of affordable homes will also significantly drop making them more pocket friendly. If you are looking to book a home on a shoe string budget, then now is the right time!
Affordable homes to be bigger
Affordable homes are no longer the tiny homes that we are so used to. With the profit-linked income tax deduction, carpet area of 30 and 60 square metres will be counted instead of built up area of a home letting home buyers pay lesser for bigger homes!
Other factors boosting affordable housing:
- National housing is set to be refinanced with Rs. 20,000 Cr worth of loans. This means all the projects put on hold due to lack of funding can be restarted again.
- The funds under the Prime Minister Awas Yojana scheme has been raised from Rs. 15,000 Crore to Rs. 23,000 Crore.
- Tax relief for developers on unsold inventory so developers don’t have to pay for the homes they haven’t sold yet.
- Cash transaction above Rs. 3 Lac have been banned, meaning no black money and transparent dealings.
The budget this year is quite favourable and is quite the good news for home buyers!