Will GST Make Buying A House Expensive?
Jun 28, 2017 Real Estate News
From Jull 1st, India’s tax regime will change. The unified tax regime is one of the most ambitious one. Certain things will get cheaper while others will be expensive. The tax in the real estate will jump from 4 percent to 12 percent. There are speculations that the prices will jump post GST.
According to some experts, both RERA and GST will push the price of properties by 10 percent to 20 percent.
Manu Garg, the director of Carol Developers Pvt Ltd said on the press conference held by CREDAI that, “Taxes are being rationalised which will lead to increased transparency. There will be more clarity post-GST in terms of taxes. Under GST, the under-construction projects are going to attract 12 percent tax, where previously it was about 4.5 percent. This will push the market and we can expect an increase in prices. Steel will also attract 18 percent GST, which will further put stress on prices.”
The prices of cement keep fluctuating in the market which directly affects the cost of construction. If the cement prices go high, the cost of construction will increase as well. The government is now working on correcting the minimum wages of the construction workers. From here we can only expect that the market will go forward for good making it a good time to invest in the property. The banks and lending institutes have also revised their loan lending rates, due to surplus money in their vaults post demonetisation. All these have given the right climate and condition for the buyer to buy the property of their dreams.
For the buyers hoping to buy the affordable properties, this is the right time for them as well. The government is offering subsidies for them along with cheap interest rates.
The prices of steel will go up as well as the tax on them has been finalised at 18 percent. This will surely be beneficial in future. The cement prices will go up as well. The tax slab finalised for them is 28 percent increasing from 23-24 percent.
The potential buyers can use the current interest rates and market scene to buy the property of their dreams.
According to some experts, both RERA and GST will push the price of properties by 10 percent to 20 percent.
Manu Garg, the director of Carol Developers Pvt Ltd said on the press conference held by CREDAI that, “Taxes are being rationalised which will lead to increased transparency. There will be more clarity post-GST in terms of taxes. Under GST, the under-construction projects are going to attract 12 percent tax, where previously it was about 4.5 percent. This will push the market and we can expect an increase in prices. Steel will also attract 18 percent GST, which will further put stress on prices.”
The prices of cement keep fluctuating in the market which directly affects the cost of construction. If the cement prices go high, the cost of construction will increase as well. The government is now working on correcting the minimum wages of the construction workers. From here we can only expect that the market will go forward for good making it a good time to invest in the property. The banks and lending institutes have also revised their loan lending rates, due to surplus money in their vaults post demonetisation. All these have given the right climate and condition for the buyer to buy the property of their dreams.
For the buyers hoping to buy the affordable properties, this is the right time for them as well. The government is offering subsidies for them along with cheap interest rates.
The prices of steel will go up as well as the tax on them has been finalised at 18 percent. This will surely be beneficial in future. The cement prices will go up as well. The tax slab finalised for them is 28 percent increasing from 23-24 percent.
The potential buyers can use the current interest rates and market scene to buy the property of their dreams.
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