How Budget 2016 has impacted Home Buyers and Real Estate Developers

The Real Estate had high hopes with the Union Budget of 2016 and when it was presented on the day, a moment of joy and cheer was noticed on everyone interested in Real Estate. This year Budget 2016, has an impact on Home Buyers to a great extent and with the budget presented, there was an overall joy and satisfaction felt on faces of Home Buyers. As soon as the budget and presented and announcements were made, several much awaited high hopes came into a reality.

First Time Buyers and Interest Deduction

For first time buyers, the Union Budget was a special gift as first time home buyers and people looking for Affordable Apartments in Jaipur were announced an interest deduction of Rs. 50k a year and extending up to a loan of 35 lacs, sanctioned during the year 2016-2017. However, the restriction with the deal announced is the home price should not exceed 50 lacs. With this announcement, the home buying will see an upwards rise and as a result the Builders in Jaipur and other cities will be seeing more flats of theirs being purchased. However, the houses exceeding above 50 lacs, and loan amount above 35 lacs is not allowed. Still, with such an announcement has proven to be a blessing for the people aiming to buy Residential Flats in Jaipur as a good percentage of flats in Jaipur come under 50 lacs.

Announcement on Service Tax

Another major announcement that service tax will not be imposed on developers of affordable housing or affordable Flats with unit sizes not exceeding 30 square metres in the larger cities and 60 square metres in the smaller cities is a significant boost to the developers and Builders in Jaipur and many other such cities. This announcement in way highlighted the government’s policy towards boosting of affordable housing.

Three year Window Completion

However, three year window for Project completion which has been imposed on Builders across is a bit short time interval considering all aspects like constructions and several approvals. However, the tax holidays for builders in the affordable housing segment which does not exceed 30 square meters, is a welcome announcement in the budget. One aspect, states that the ceiling could have been enhanced to 50 square metres.

Outcome of Budget announcements in Real Estate

Overall, considering all aspects of announcements in budget with regard to Real Estate, several positives can be concluded from it. The highlight on affordable housing is one major aspects of budget. Several encouragements were done in order to provide people with the ways for better buying of Residential Flats in Jaipur and other such cities. The better the capability of people in buying flats, the better it would be for Builders. In a way, Affordable flats in Jaipur and cities of same class are on its way.

Jimmy Carter is a graduate and freelance writer. He loves to research about the best in the world belonging to all spheres of life. He collects information about the topics concerned and writes about them.