Published on 1/9/2017 1:00:29 PM
Will policy transformation make you buy a house in 2017?
There are many policies that have been announced in recent times that have the potential to bring down property prices for buyers.
Interest rate subvention of 4% on property upto Rs 9 lakh and 3% on property upto Rs 12 lakh. This will lead to the accomplishment of Pradhan Mantri Awas Yojana (PMAY) 2022 target of providing a good house over the head of every Indian family has worked towards creating a stock of housing that earlier eluded urban India. How? The subventions will bring down the effective rate of home loan interest. Read More
Demonetisation has created a level playing field. Elimination of black money has ensured that prices remain constant with formal finance available to all. The impact of the policy will be felt most in land acquisitions which absorbed a large volume of cash and also the secondary markets where 15-20 of cash dealing took place in some markets. Already, interest rates have started dropping because banks are flush with funds and need to lend. Buyers with good credit history should be able to source formal funds to buy. Read More
The update of the Benami Transactions Act has ensured that funds will not be diverted by unscrupulous investors who push up property values. The practice will bring transparency in the residential markets. With increased transparency, title risks will be minimised and buyer confidence during a residential property transaction will get a boost. Read More
Goods Service Tax is planned for and is expected to rationalise property taxes in the medium to long term. If the rates become lower than the present rate that the home buyers pay, they can benefit. The implementation of GST is likely to improve transparency and reduce tax evasion on account of better enforcement and compliance.