As some respite for those looking to buy homes this year, provisions and incentives in the 2013-14 budget may give affordable housing in the Mumbai metropolitan region a boost, experts feel.
The budget has specified that on a on a first-time home loan of up to Rs25 lakh, the additional interest rebate is of Rs1 lakh. However, this applies only for houses that cost up to Rs40 lakh. “Almost 90% buyers obtain home loans within the Rs8 lakh to Rs25 lakh bracket. We might see a boost in affordable housing in the metropolitan region, particularly in Kalyan, Dombivli, Karjat, Vasai, Virar and Panvel,” said MD Shivam, a builder.
Managing director of Liases Foras, Pankaj Kapoor said, “Developers will now be interested in affordable housing instead of high-end luxury housing. They will have to rework their strategy.”
However, managing director of Puranik Developers Shailesh Puranik feels that the current budget is nothing but an eyewash. “The government should have increased the rebate bracket to Rs50 lakh instead of Rs25 lakh,” he said, adding that buyers are already paying several taxes and that introducing new ones will not only overburden them, but affect the sale of houses.
Moreover, the government has also taken some steps to curb the unaccounted money in the real estate market. “If the agreement value of the property is shown less than the ready reckoner rate, then the income tax will be considered on the basis of the latter. If the difference is more than Rs50,000, then it difference will be taxable. This move will curtail the flow of the black money,” Kapoor added.