Real Estate Sector Expectations are High from Budget 2017
May 22, 2017 Real Estate News
The government has proposed several moves and laws in 2016 for higher transparency and stricter laws in the real estate sector. To make them a success, the government will have to tighten the norms and make sure the laws are abided by both the buyer and the builder. With the Union budget right on the corner, there are few expectations from the government for the real estate sector. Firmer policies, stricter laws and low cost housing is of foremost importance. It has been highlighted in RERA, the fake promises, the possession and completion related issue.
There are certainly more areas that need to be looked in the upcoming budget:
1. The exemption of interest loan should go up from Rs 1.50 lacs to Rs 5.00 lacs. The rates of the properties have soared higher in past few years and it will only be justified to increase the tax exemption limit.
2. The stamp duty charges should be reduced from 5.0 percent to 2.5%. this will increase more revenue for the government and more buyers will show interest in investing in the property.
3. Cross purchasing should be allowed for the buyers. That is if the buyer should be allowed to invest from residential property to commercial property and vice versa from the sale of either of the property. This will increase the resale market and more buyers will come forward.
4. More builders should invest and launch affordable housing in metro cities. The government should give special incentives to the builders who come forward with affordable housing segment. Demands for such projects have gone higher in recent years as people from smaller cities have moved to big ones and affordable housing is their choice at first.
5. To control real estate prices, the MNCs, private companies should be given 100 percent tax exemption for the rent paid towards the house on leave and licence/ lease basis. This will encourage people to lease out their property and help in controlling the real estate prices.
6. Investors who buy property for the investment should be allowed to sell it off after two years in reduced tax slab. This will help in stabilising the property prices and curbing the involvement of black money in the real estate market.
7. Properties which are leased out for banks and ATMs should be exempted from the property tax as they are given out for a higher period of time and the escalation in licence fee is low.
8. Stricter rules for the building that has a number of floors higher than 40 storeys. They should be given a proper timeline to complete the project.
9. NRIs should be given certain tax relaxation so they will invest more in India.
There are certainly more areas that need to be looked in the upcoming budget:
1. The exemption of interest loan should go up from Rs 1.50 lacs to Rs 5.00 lacs. The rates of the properties have soared higher in past few years and it will only be justified to increase the tax exemption limit.
2. The stamp duty charges should be reduced from 5.0 percent to 2.5%. this will increase more revenue for the government and more buyers will show interest in investing in the property.
3. Cross purchasing should be allowed for the buyers. That is if the buyer should be allowed to invest from residential property to commercial property and vice versa from the sale of either of the property. This will increase the resale market and more buyers will come forward.
4. More builders should invest and launch affordable housing in metro cities. The government should give special incentives to the builders who come forward with affordable housing segment. Demands for such projects have gone higher in recent years as people from smaller cities have moved to big ones and affordable housing is their choice at first.
5. To control real estate prices, the MNCs, private companies should be given 100 percent tax exemption for the rent paid towards the house on leave and licence/ lease basis. This will encourage people to lease out their property and help in controlling the real estate prices.
6. Investors who buy property for the investment should be allowed to sell it off after two years in reduced tax slab. This will help in stabilising the property prices and curbing the involvement of black money in the real estate market.
7. Properties which are leased out for banks and ATMs should be exempted from the property tax as they are given out for a higher period of time and the escalation in licence fee is low.
8. Stricter rules for the building that has a number of floors higher than 40 storeys. They should be given a proper timeline to complete the project.
9. NRIs should be given certain tax relaxation so they will invest more in India.
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