Within the timeline of 2015-17 FY government has pulled off 25-30 per cent of the scheduled target for rural housing for landless and the underprivileged population. The rural housing development will be pursued under the flagship of Pradhan Mantri Awas Yojna (Gramin). According to central’s order states have to meet the deadline of 2022 for providing homes to the needy people. In a bid to push the construction process of affordable housing, government is now likely to approve more floor area ratio (FAR) to builders instead of receptacle lean-to.
In exchange builders will be given lands in one portion of the city for the development of high-end projects. There is also a statement in the proposal, where it’s stated that for affordable housing development builders will be allotted other locations and the private developers will be provided the land as well from the governmental end as well. In its draft policy for public-private partnership (PPP) for the PMAY scheme the Ministry of Housing and Urban Poverty Alleviation (MHUPA) has put in these options in the public sphere of influence. MHUPA also proposed policies to sanction building affordable houses in private land. Allottees will be identified by the public authorities, as they will be eligible to avail government interest subsidies. With the handing over of the respective housing units private developers will be free from all their asked responsibilities.
The draft policy says, “Taxation benefits under Section 80-IBA of the I-T Act can also be made available to the developer, subject to fulfilment of other pre-requisites. “ Under these circumstances, the private developer shall recuperate the cost directly from the allottee either in the form of a lump-sum payment at the time of transfer of the housing unit or in EMI. The developer will also recover part of the cost through governmental subsidy and other incentives. Just as the policy says, “The private players’ role will end as soon as it hands over the completed dwelling units and the residents’ association will manage day-to-day affairs.”
As per the revived proposition model private developers shall provide land. Government authorities will subsidize stamp duty charges and other charges for internal and external developments other than the additional FAR. To attract more private investors in affordable housing development government has provided single window clearance service to incentivize the private developers.
–LNN (Liyans News Network) – In Kolkata we offer you many luxury budget flats in Rajarhat and New Town area. Available 1/2/3 bhk lifestyle apartments for sale. Choose the right property with the best market expert. Interested people contact us now.
Goods and Services Tax (GST) will dematerialize multiple taxability of states and UTs. Single taxation will be imposed on commodities across the country. The impact of this unified tax regime (GST) will be visible in every transaction being in function. Real estate sector is not hidden from GST purview. According to the GST announcement realty projects and properties are kept under 12% tax slab; this new rule will be legit for under construction and approaching projects.
Realty sector used to be one of heavily taxed sectors and the sector holds high expectation from GST. Previously, realty sector had to pay several state and centre levied taxes such as- service tax, Value added tax (VAT), excise duty etc on every property. GST will reform the existing tax system and dilute all these taxes into a single one i.e. 12% specific tax slab.
GST role on real estate
Regarding GST rollout real estate sector is multi-vocal. While a set of expert’s group opines that GST implementation would increase property price, the other one exactly visualizes the opposite. Government has already set 12% taxability upon under construction properties, till there is no clarity on the property prices across the country in respect to post-GST cycle.
As GST would subsume for than 16 different tax rates into a single one, thus NAREDCO (National Real Estate Development Council) thinks it will bring down property prices. Though the property prices will vary from state to state as VAT percentage is state wise individual. For states where indirect taxability used to be higher than 12% will benefit from lower property rates and states used to receive lower than 12% indirect tax rates will face the higher property rates. The GST rate for work contracts will also be counterbalanced by input credits. GST will bring out consolidated, made easy tax policy. Homebuyers can expect low property price by and large. GST probably will make real estate sector attractive choice of investment.
Mr. Saurav Talukdar, a potential homebuyer said, “As potential buyers we still don’t have any clear idea whether the property price will increase or decrease after GST implementation. But in Kolkata flats in Rajarhat have always been economical for every economical group by far. Let’s hope property price would further dip in, so that more people like me, can afford their own nests in Kolkata.”
GST will overall decrease the construction cost for the builders. Along with RERA GST is also framed to give rise to transparency in realty practise, as there won’t be puzzlement related to multiple taxpaying. Market is eagerly waiting for July 1, to witness dynamism of the market graph.
–LNN (Liyans News Network)
Retirement fund body Employees’ Provident Fund Organisation (EPFO) will sign on treaty with the Housing and Urban Development Corp (HUDCO) to empower members of its housing scheme to avail subsidy and interest allowance under the Pradhan Mantri Awas Yojana.
EPFO lets on its subscribers from societies for withdrawing up to 90% of their EPF accumulation for home purchase. As a part of goverment’s ambitious project ‘housing for all by 2022’ the EPFO has signed a Memorandum of Understanding (MoU) with HUDCO on June 22, 2017 as per the official source. The released statement also confirmed that the MoU will be ink pact in the presence of Labour Minister Bandaru Dattatreya and Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu. This agreement is related to coverage of EPSO subscribers under PMAY by offering them several benefits including cheaper loans for home purchasing purpose.
According to the official statement EPFO won’t be directly involved in the construction process of the buildings for its subscribers, rather than it will be working as a catalyst so that the members can easily come into the purchase process. The labour ministry proposed to simplify the homebuying for at least 10 lakh subscribers in the next two years by allowing them to use 90 per cent of EPF accumulations for down payments purpose of their home purchase and use their accounts for repaying of home loans.
Earlier on during April 2017, EPFO released its notification in the public domain and media where they introduced the amended version of EPF scheme. It approved the subscribers for making their down payments for buying home and payment of EMI through the EPF account. The withdrawal scheme will be brought into the line with the Urban Development Ministry (programmes) and other organizations because the Union government is also giving subsidy of 1.5 lac to the socio-economically weaker section. All these benefits will be merged together to make affordable housing sector an attractive stratum of investment. EPFO has also launched Aadhar seeding application for the optimization of the reach of EPF benefits. In the collaboration with (CSC) Common Service Centers and CDAC EPFO has developed this Aadhaar seeding. EPFO has decided not to collect Administrative charges towards EDLI contributions.
According to the EPFO notification of March 2017 the new rate of PF contribution will be as follows-
Elderly people who are willing to move into metro cities like Kolkata, rather than choosing a rental apartment to reside, go for low budget flats in Kolkata on the purchase of which you can avail all these major competences along with the goverment’s assurance. Utilize this optimum benefits to buy property in Kolkata and other major cities of the country.
–LNN (Liyans News Network)
Not really far from now, we found an investor (unwilling to disclose his name) who invested in high-end project in Kolkata and repenting his first home purchase. Not only in Kolkata, this is a common story throughout the world. This happens when the buyers easily get into the loop of the appeal. It’s mostly for the higher returns from the very purchase unit. Mostly people have seen chasing after handsome features and facilities within limited price range.Not always a low budget can hand over your desired fixtures from your choice of property. But it doesn’t mean if you buy cheap, you will get cheap.Getting cheap deal always demands further exploration. For example in Kolkata, if you explore flats in Rajarhat you will get a whole lot of attractive projects within your budget limit.
Impulsiveness is what should be strictly prohibited while purchasing an immovable asset. Definitely seeking an ideal property involves hastiness. But that doesn’t mean you overlook mechanical and structural issues as well as the builder’s previous track records. Experts say that people are running fast to get their dream home as they scare fueling market price and unpredictable market corrections. Often, people are caught amid the panoply of the realtors. Cross-checking the offerings have been eternally a buyer’s one of the prime duties. Read all the agreements before coming into any deal with the developer.
Property prices vary with the location and social infrastructure and the presence of alluring amenities. According to one’s budget limit he/she has to compromise anyone of these. All these components in combined make a property satisfactory. Thus, sacrificing one of these components can make your investment rather partial. Again, transportation nodes can give you some major stress. Distance from residence to workplace matters a lot while you are shifting into a new city. These days, there are brewing residential apartments with commercial provision attached. These apartments might cause a big hole inside your pockets. But, these are indeed favorable. We have seen many flats in Rajarhat are having the same configuration for providing superior comfort level to the working people, whose workplaces area at conveniently close.
Insufficient nearby facilities can lead you to waning. Always check out the local map before selecting a property. Modern homebuyers need school, college, hospital, markets at the close proximity to their residence. Eventually, most of the property ad display consist misleading information regarding transportation and infrastructure portrayal. Always double check their quality assurance.
Moreover, that the Real Estate Regulation Act (RERA) is about to enforce and all set to remove all misleading assurances by the developers and the realtors. They can’t even now advertise a property without having registered. If any builder are observed violating any regulation, proved with the valid documentation that person will be penalized by legal route.
-LNN (Liyans News Network)
It’s the residential property segment that has been single-handedly contributing from 5-6 per cent to national GDP for past two FYs. After RERA implementation a projected growth of 7% is predicted by the several market experts in 2017. Being the well acclaimed potential asset class and the second largest employer the sector has not been up to the snuff during past few years.Coming to a real estate investor, a deep research of the market is obligatory before putting money on the industry. Profitable return from realty investment is a different ball game altogether. Before you invest, you need to understand the market graph and investigate positive facts that will turn your investment velvet. But the essential point is a potential investor has to explore as many as opportunities that come in front of him/her.
Residential property price is variable on the basis of location choice. A good neighbourhood, quick accessible transport route, enhanced infrastructure, availability of shopping mall, schools, hospitals, parks and other public spaces have equally vital role in pricing factor of a residential unit. For example- for obvious reason housing properties in suburb are less priced than metro cities such as- Mumbai, Kolkata, Bengaluru, Delhi, Chennai and Pune. For availabilities in the close proximity Mumbai has been voted the best lucrative residential property investment zone.
“Residential property sale in Kolkata has been earning satisfactory returns from affordable housing sector. Big market players have also involved themselves in the development of urban low budget projects across the city. Cost of living is another triggering fact that has turned Kolkata into a prime investment choice. Cost of high-end residential apartments are relatively low than the other metros. The city offers equally lavish housing well-connected projects as the other cities do, still they are economical; which is the biggest reason driving Kolkata to be an investment hotspot,”-said Mr. Mahesh Somani West Bengal RERA expert.
“Residential projects developed by reputed builders are back on demand after RERA implementation announcement. All the projects linked with the major business locations and commercial hubs of the city. Besides, banks have also reduced their EMI interest rates on home purchase. It’s really rare in real estate market that an ascending and persistent growth in any particular location. Market has its own highs and lows. But Kolkata is the only metro city which has been considerable to every block of the pyramid. Now market price has dropped for luxury residential units. Investors should plunge into residential market of Kolkata during this transition period to profit maximum from their respective investment.’’- Somani added.
-LNN (Liyans News Network) – To sell property online, enjoy free property listing under post your property in Kolkata segment on our property portal. We offer Buy/Sell/Rent any property transaction and get you the best negotiable rate.