(By Renu Sud Karnad)
NEW DELHI: The Indian housing sector is in a sweet spot now, because the thrust given to housing has been extraordinarily beneficial no longer only for builders but also homebuyers and lenders. Flagship govt schemes like Pradhan Mantri Awas Yojana and developments similar to granting of infrastructure status to affordable housing, 100% tax exemption on profits for builders development affordable properties, implementation of RERA, and the subsidy schemes for first time buyers of residential assets are anticipated to create provide as well as help fulfill housing call for and reinforce city infrastructure.
Though there was a minor building up in rates of interest recently, they are still somewhat low compared to 2011-12. The prevailing interest rate at HDFC is 8.55% for home loans as much as ₹30 lakh. A borrower is eligible for tax deduction of ₹2 lakh on the hobby paid on home loans underneath Section 24B and ₹1.five lakh on essential paid underneath Section 80C. This may scale back the efficient interest rate on the loan to less than 4%.
The schemes for EWS and LIG are to be had as much as 31 March 2022 and for MIG as much as 31 March 2019. Also, the most recent resolution to chill out the eligibility criteria by means of expanding the carpet house to 160 sq.mt for MIG-I and 200 sq.mt for MIG-II displays the federal government’s intent to encourage home buyers, particularly in smaller towns. With assets prices steady, low rates of interest, upper source of revenue levels, large subsidies for firsttime buyers, fiscal benefits, anticipated economic growth, etc, this is possibly the most efficient time for an finish user to shop for a house.
The author is the MD, HDFC Ltd
NEW DELHI: The Indian housing sector is in a sweet spot now, because the thrust given to housing has been extraordinarily beneficial no longer only for builders but also homebuyers and lenders. Flagship govt schemes like Pradhan Mantri Awas Yojana and developments similar to granting of infrastructure status to affordable housing, 100% tax exemption on profits for builders development affordable properties, implementation of RERA, and the subsidy schemes for first time buyers of residential assets are anticipated to create provide as well as help fulfill housing call for and reinforce city infrastructure.
Though there was a minor building up in rates of interest recently, they are still somewhat low compared to 2011-12. The prevailing interest rate at HDFC is 8.55% for home loans as much as ₹30 lakh. A borrower is eligible for tax deduction of ₹2 lakh on the hobby paid on home loans underneath Section 24B and ₹1.five lakh on essential paid underneath Section 80C. This may scale back the efficient interest rate on the loan to less than 4%.
The schemes for EWS and LIG are to be had as much as 31 March 2022 and for MIG as much as 31 March 2019. Also, the most recent resolution to chill out the eligibility criteria by means of expanding the carpet house to 160 sq.mt for MIG-I and 200 sq.mt for MIG-II displays the federal government’s intent to encourage home buyers, particularly in smaller towns. With assets prices steady, low rates of interest, upper source of revenue levels, large subsidies for firsttime buyers, fiscal benefits, anticipated economic growth, etc, this is possibly the most efficient time for an finish user to shop for a house.
The author is the MD, HDFC Ltd
'The best time to buy a home'
!['The best time to buy a home']()
Reviewed by Kailash
on
June 26, 2018
Rating:
