Since the last couple of months, the real estate sector has been facing many challenges. Some complicated issues appeared due to demonetization and the Benami Transactions (Prohibition) Amendment Act, 2016 has also created confusion. Now the budget 2017 announcement is just around the corner! There are many hopes, expectations circulating around the Ministry of Finance. Here’s what to expect and what could be the outcome from budget 2017 for real estate sector:
Clarity On GST
GST is one of the most discussed topics in real estate sector. The problem real estate developers and buyers are facing is that there’s no clarification available on its structure. GST will undoubtedly provide a relief to everyone in real estate sector by reducing the burden of multiple taxes like stamp duty, VAT and service tax etc. There are chances that the government will bring more clarity and the impact of GST on real estate will be visible when it comes to the final tax rate.
Income Tax Benefits For Buyers
There are chances that homebuyers will get more tax benefits with budget 2017 announcements. In 2016, the government of India gave benefits to first-time home buyers with a tax exemption of INR 50,000. The announcement didn’t help people in metros, but this time, industry experts are speculating the possibility of income tax benefits for first-time homebuyers living in metro cities as well.
There are possibilities that government will reduce REITs. This will eventually result in lower property rates and budget-friendly accommodation. The transparency and affordability will undoubtedly encourage many potential homebuyers to take a decision.
From establishing the Real Estate Regulatory Authority to the bold moves such as demonetization, it has become very clear that real estate sector is going through a transformation process. The core focus on increasing transparency in transactions, reduced home loans, The Pradhan Mantri Awas Yojana indicates that the future is very bright for homebuyers and real estate developers.
The budget 2017 announcement details are still under wrap. But those living in rented houses and planning to buy a property in India, 2017 can be the perfect time to do so. Since people planning to buy property in Bangalore and other metro cities are expected to get big benefits, the transparency with GST will also help homebuyers a lot. Before making a decision, it is important to choose the right real estate developer.
There are still many problems in real estate sector and it is expected that government will successfully address the challenges. As a reliable and trusted real estate developer, M1 Homes hopes that the budget 2017 will create a better environment for homebuyers and those interested in buying luxury property in Bangalore will undoubtedly get many advantages in the coming days.