After assuming you’re an investor who is searching for properties for investment. Then, first of all, Property’s prices vary from cities to cities. And the return of investment is also an important aspect to know. All the terms have to be analysed in city-level So that you can get exact information about the real estate in India. Let us see in detail about Real Estate Investment is Good in India.
Real Estate (Regulation and Development) Act, 2016:
The Real Estate Act, 2016 which may come into force in April 2017 has laid down a regulatory framework. Thus this changed the way the real estate sector in India. It aims to enhance transparency, to protect home-buyers as well as help boost investments in the real estate industry.
Amendment to the Benami Transactions Act:
The Benami Transactions (Prohibition) Amendment Act, 2016 brought by the parliament of India to prohibit some types of transaction. Any transaction in which property is transferred to one person for a consideration paid by another person. To increase the institution-investor participation and regulating the sector to make India an attractive investment destination act is sanctioned.
100% reduction in profits for affordable housing construction:
To promote affordable housing; the finance minister of India has proposed a 100% reduction in profits to an agreement from a housing project. Flats of up to 30 square metres in four metro cities and 60 square metres in other cities. Thus these projects have to be approved from June 2016 to March 2019. And another condition was that the project should be completed within three years of the grant of approval.
Interest subsidy for first-time homebuyers:
For the first- time home buyers, the Union Budget 2016-17 also declared deduction of additional int. of Rs 50,000 p.a. for first-time home buyers for loans of up to Rs 35 lakhs authorized during the next financial year for houses with a value not exceeding Rs 50 lakhs. This move should positively influence home sales in non-metros in the long term where residential product prices are not as high as those in metros.
Service tax exemption on construction of affordable housing:
Exemption of service tax on construction of affordable houses up to 60 square metres. Under any scheme of the Central or state government that includes public-private participation, i.e. PPP schemes will push towards construction in affordable segment across India.
Implementation of GST structure:
Goods and Services Tax (GST) is a positive move towards simplification of the old Indian tax system.
Builders can select from existing 12% tax rate for under-construction homes as on 31 March. Or choose a new GST rate of 5%, effective 1 April. In the case of under-construction affordable homes, builders can choose between the existing 8% tax rate or GST rate of 1% it’s up to them.
The demonetisation of Rs 500 and Rs 1,000 rupee notes done by the prime minister of India. This is perceived as a significant reform. This measure along with Real Estate (Regulation and Development) Act, 2016 (RERA) will align the real estate sector to the international standards of doing business. Resulting in more fund flow from institutional investors, banks and higher unit sales.
Seems amazing right? So many benefits in real Estate Investment is Good in India. So what’re you thinking about? yes, it’s a good choice. So if you’re planning to buy a home in India then visit 1st prelaunch.
And stay tuned for more such contents until that Bye Bye.