Key Announcements on the Way for the Affordable Homes
Sep 26, 2019 Real Estate News
Affordable housing has been on major interest among the potential buyers and keeping the same in mind the government is planning to expand the scope of ‘affordable housing’ by including the projects that cost op to Rs 50 lacs to Rs 55 lacs. According to the reports, it will help the homebuyers to enjoy the subsidy even more along with reviving the real estate sector from the slump it has been witnessing.
The Budget 2019 did not confer real estate sector the much-awaited industry status but the government has been making enough efforts to make sure that beneficiaries save more on the affordable homes segment.
The prices of the land are high and the price of affordable homes in cities where the cost of land is higher is unrealistic. The developers have asked the government to increase the threshold of affordable housing. Most of the units fall under the price tag of Rs 45 lacs to Rs 75 lacs making the current understanding of the affordable housing difficult to understand.
The Budget 2019 did not confer real estate sector the much-awaited industry status but the government has been making enough efforts to make sure that beneficiaries save more on the affordable homes segment.
PMAY announcements in Budget 2019
The government announced the tax holiday for the builders who take up the project of affordable homes. For the tax benefit on the self-acquired property, a tax deduction of Rs 2 lacs is already given in the interest of home loans for affordable homes. This year the government increased the limit by Rs 1.5 lacs more. However, this is valid only for the home loans taken until March 2020.The prices of the land are high and the price of affordable homes in cities where the cost of land is higher is unrealistic. The developers have asked the government to increase the threshold of affordable housing. Most of the units fall under the price tag of Rs 45 lacs to Rs 75 lacs making the current understanding of the affordable housing difficult to understand.
Progress of PMAY- U
The project has been sanctioned 81 lac units out of which 13 lac units will be designed using modern technology. Modern technology will help in building safer homes efficiently. It is important to note that 26 lacs homes have been completed under PMAY and 24 lac homes have been transferred to the beneficiaries. About 47 lac homes are in various stages of construction. Even though the beneficiaries are welcoming PMAY- U, the progress of the same has been slow.Benefits of PMAY
- The deduction on the interest of housing loans has been increased from Rs 2 lacs to 3.5 lacs.
- Developers will continue getting a cent percent reduction from the income from the affordable housing segment.
- Long term capital gains will be calculated with 2001 as the base year. This helps a lot of homebuyers who have bought the property before 2001 and may have had to pay to own to the high cost of appreciation.
- From the tax point of view, the long term capital gains will be calculated after 24 months.
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