Video Editor: Sandeep Suman
The Modi government in their previous tenure had promised ‘housing for all by 2022’, a deadline which is only three years away. Now that the Modi government has come back to power with a bigger mandate and will be presenting their first budget on 5th July, 2019 - What are the people from the real estate industry which include builders, brokers and home buyers, expecting from the 2019 union budget?
What Are Home Buyers Expecting?
Ravi Sinha, the CEO of Track 2 Realty says that the focus should be on fence-sitting buyers this time around.
He further adds that when it comes to aspiring buyers, the biggest issue that no one is addressing is income. So this year’s budget will be about what the government will do to generate more income?
What Do Home Buyers Want?
- Cheaper interest rates
- Better home loan deals
Home buyer Gaurav Prakash hopes that finance minister Nirmala Sitharaman increases the limit under section 24, especially for those who have faced a delay in getting houses.
Section 24 of the Income Tax Act states that homeowners can claim a deduction of upto two lakh rupees on their home loan interest if the owner or his/her family reside in the mentioned property. The entire interest is waived off as a deduction if the house is on rent.
He also hopes that the home buying process is made more transparent.
What Are Problems Faced by Developers?
Property expert Pradip Mishra says that the biggest issue faced by developers is the NBFC (Non Banking Financial Company) crisis, especially the difficulty to get loans post the crisis.
He further adds that as long as getting loans will be difficult, developers will not be able to procure funds easily and this will make it difficult for them to work. Developers get loans at an interest rate of 16-18 percent which makes makes it tough to complete projects. At the given rate, making projects affordable becomes a mammoth task.
Almost five lakh housing projects are stuck in seven big cities. Home buyers request that the government release Rs. 10,000 crore worth of stress funds for these projects to be completed.
How Can The Budget Help Stranded Housing Projects?
Mishra says that stranded housing projects should not be left to the banks. The government needs to invest in a stress fund, in this case so that the stranded projects can be completed.
If stress funds are used and projects are completed then home buyers will invest more. He concludes that home buyers have lost faith in the system and the only way to revive their faith is to bring stress funds into real estate.
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