The Impact of 2017 Budget on Home Buyers like You
The 2017 budget gave an impetus to the real estate market of India. This Union budget will affect us in a major way. Let us look at some of the points that will help you understand the budget better.
A grant has been chosen for affordable housing which gets Infrastructure Status. This will benefit the low cost housing in India which is much needed, 95% of dearth is in this segment of housing supply. The Infrastructure status will help developers in things like, taking loans at a cheaper interest rate (12% or even lesser). The construction industry will see lot of healthy growth. More development in infrastructure would mean more employment opportunities. Launching more cost effective housing projects is the top priority at places where the demand lies. The main agenda behind all of this would be to meet the government objective of housing by the year 2022.
But How Will All of This Benefit Us??
This new budget will enable us to take cost benefits from the tax concessions provided to the developers. It is expected that the costs of construction will come down. The increase in flow of private capital will help boost the construction activity in India. Hence, it is said that this particular budget will bring a big change in the construction and housing industry.
After This Budget We Will Be Able To Get Home Loans Easily And At A Cheaper Rate.
According to Arun Jaitley, Pradhan Mantri Awas Yojana will get ₹23,000 crores in 2017-18. And the National Housing Bank will refinance housing loans worth approx. ₹20,000 crores.
He also says:-
“Thanks to the surplus liquidity created by demonetisation, banks have already started reducing their lending rates, including those for housing. In addition, interest subvention for housing loans has also been announced by the Prime Minister.”