Pune builders wants improvement for affordable homes, clearness on policy

Q: The city's real estate group wants finance minister Arun Jaitley to present a budget that will create a strong foundation for achieving the "home-for-all" goal of the Narendra Modi government.

Amreesh Murugan,

23rd February 2015

Real estate News in Pune

affordable housing

income tax

housing loans

pune real estate

pune real estate market

fdi

foreign direct investment

finance minister arun jaitley

psu

union budget 2015

union budget 2015-16

pune real estate growth

narendra modi government

Follow Discussion

Also see discussions for

Pune Real estate News Real estate News in Pune

Replies (6)

Hi all,
I am agree with the above mentioned statement. And in my opinion reduction in home loan interest rates will be important so will be offering industry/infrastructure status for the housing industry. Also necessary is availability of finance at lower interest rates and clarity on taxation for real estate investment trusts and foreign direct investment (FDI) in housing.

Ramakrishna, Hyderabad

26th February 2015

Comment

@Sandeep,
Re-introduce tax exemption (like under IT Act 80 IB earlier) for affordable housing projects with a specific definition of affordable housing. Houses less than 40 square meter area will only qualify. Dealing out of 2% of the PSU banks' deposit portfolio for housing loans less than Rs 25 lakh could be another advantage.

Kanthi Sridhar, Bangalore

25th February 2015

Comment

@Santosh,
You are right and i hope that this government can come out with a well-conceived PPP Model for development of low-cost/ budget housing. A detailed financial blueprint for the proposed 100 smart cities is expected from the budget. They also want industry status for real estate and 'priority' sector lending status for home-loans below Rs 75 Lakh.

Sandeep Mhatre, Mumbai

24th February 2015

Comment

@Santosh,
Developers are also expecting that this budget should announce measures to regulate costs of construction material. Though the inflation has come down, the cost of construction has not. Many developers with less capitalization have been forced to slow down or halt their projects. The cost of raw materials such as cement and steel need to be brought down or an upper ceiling should be imposed on their prices.

Dhiraj,

23rd February 2015

Comment

@Dhiraj,
The new government seems to be actively working on the concept of "home for everyone" which is a good sign. This concept needs to be coupled with certain constructive changes in the policy. Substantial reduction in interest rates on home loans, a scheme similar to the earlier 80 IB (Income tax) for houses smaller than 800 sq-ft.

Santosh TR,

23rd February 2015

Hi Santosh,
You are right but at the same time Tax incentives such as higher exemption limit for repayment of home loans as well as resumption of incentives for developers to build homes of smaller sizes would encourage the housing sector.

Dhiraj,

23rd February 2015

Comment

@Dhiraj,
Besides, faster clearances for projects and reduction in red-tape will deliver on the government's promise of offering comfort of doing business. Income tax exemption for profits earned from smaller sized flats will kick start investments in the sector.

Santosh TR,

23rd February 2015

Hi Amreesh,
Yes, they are looking for an opportunity and a movement for creation of affordable housing by work out a expansion of incentives for both developers and buyers and also to stabilise prices of homes across the board through measures such as regulation of input costs.

Santosh TR,

23rd February 2015

Comment