Expectation of Investors from our Finance Minister Arun Jaitley
May 22, 2017 Real Estate News
The sudden demonitisation phase affected various sectors in various different ways, as for the real estate sector there was a mix review. However the investor and the developers are of a positive view. Recently, there are rumors that in Union budget of 2017-18, Narendra Modi will shower a good amount of money on the building infrastructure. However, the investors are having high expectation from Arun Jaitley who will be announcing the budget on the 1st of February. Investors are hoping to find announcement which will be beneficial to them and will help them grow above the rough patch that they have encountered in the last few years.
Let’s have look at the points which will help boost this real estate industry-
1. The government has already ensured that the real estate transactions will no more be subject to the in-number of taxing with the implementation of GST law i.e. the Goods and Service Tax. The GST Council the rate of this new regime between 5 to 28 percent. The rate at which the real estate transactions would be taxed ae not announced yet. The investors are of hope that government keeps the affordable housing under low tax bracket; this would matter for fulfilling the ‘housing for all’ policy established by Modi. REITs will also help in boosting of investment.
2. The implementation of the RERA i.e. the Real Estate Regulatory Authority will be a great benefit to the investors as recently it was witnessed that the decline in investment was majorly due to the delays in delivery. With this act the things will get faster and more transparent.
3. It was pretty much seen clearly in the last year how the profit margin of the real estate industry saw a decline. This is not at all a healthy sign for the real estate sector and it could lead to negative investor spirit as investor invest in markets which offer them with good benefits. The government can stop this by merely offering incentives to the investors in the next Union budget. A reduction in the stamp duty will also be beneficial for investments.
4. Real Estate is a complex sector and in the middle of all this complexity, it is easy that a dispute emerges. A dispute is perhaps the last thing one investor wants but what turns out to be worse us that there is a delay in the settling of the dispute. With the new budget, the investors are hoping for new real estate laws which help in faster dispute resolution.
5. As per the statistics on the home sales in India, it is seen that despite the constant efforts and attempts made by our government to enhance housing, the buyers stay away from the real estate arena. This is a major hindrance that the investors are finding when they try to sell their projects. The new measures that Jaitley announces will surely trigger this sector and will be greater good to the real estate sector as well as the investors.
Let’s have look at the points which will help boost this real estate industry-
1. The government has already ensured that the real estate transactions will no more be subject to the in-number of taxing with the implementation of GST law i.e. the Goods and Service Tax. The GST Council the rate of this new regime between 5 to 28 percent. The rate at which the real estate transactions would be taxed ae not announced yet. The investors are of hope that government keeps the affordable housing under low tax bracket; this would matter for fulfilling the ‘housing for all’ policy established by Modi. REITs will also help in boosting of investment.
2. The implementation of the RERA i.e. the Real Estate Regulatory Authority will be a great benefit to the investors as recently it was witnessed that the decline in investment was majorly due to the delays in delivery. With this act the things will get faster and more transparent.
3. It was pretty much seen clearly in the last year how the profit margin of the real estate industry saw a decline. This is not at all a healthy sign for the real estate sector and it could lead to negative investor spirit as investor invest in markets which offer them with good benefits. The government can stop this by merely offering incentives to the investors in the next Union budget. A reduction in the stamp duty will also be beneficial for investments.
4. Real Estate is a complex sector and in the middle of all this complexity, it is easy that a dispute emerges. A dispute is perhaps the last thing one investor wants but what turns out to be worse us that there is a delay in the settling of the dispute. With the new budget, the investors are hoping for new real estate laws which help in faster dispute resolution.
5. As per the statistics on the home sales in India, it is seen that despite the constant efforts and attempts made by our government to enhance housing, the buyers stay away from the real estate arena. This is a major hindrance that the investors are finding when they try to sell their projects. The new measures that Jaitley announces will surely trigger this sector and will be greater good to the real estate sector as well as the investors.
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