A union budget is simply one of the biggest events about finance in a financial year. It is the Union Budget that determines the allocation of funds. It also defines the goals that the government has set to achieve within a period of one year. Union Budget affects each and every citizen in a certain way. Each segment of the society has certain expectations from the budget, and thus, everyone keeps a close tab on it. Budget is subject to criticism and appreciations because opinion differs from person to person. If certain expectations are met it will help the budget garner appreciation and if they are not then obviously criticism is set to follow.
The Union Budget 2017 witnessed various alternations in favour of the citizens. Moreover, much to the awe of the citizens, the budget was presented on 1st February rather than being presented on last working day of February. One of the highlights of this years’ budget was a handful of changes being introduced in real estate sector. Budget emphasised on how new changes are forthcoming and speedier implementation will be opted for. The budget concerning the real estate can be seen in two lights – pro buyers and pro realtors. Let us check out the major benefits provided in each as per this years’ introduction:
Pro-realtors: One of the major development introduced this year is the identification of affordable housing schemes as infrastructure status. This has convinced buyers to invest in real estate. It has drawn a positive response. A strategic move has enabled the infrastructure and real estate to get back on track. The fact that both of these are aligned, it has resulted in considerable growth.
Apart from these, several benefits have been provided by the government. One of such benefit includes developers getting one year period to pay tax on rental income. The government is keeping in mind long-term gains and thus, the time limit for capital gains has been reduced from a period of 3 years to 2 years. Moreover, also developers will now have a 5-years project completion timeline as compared to the 3-years period in the past.
The realtors are inclined towards making tremendous infrastructural development because of the conducive conditions. More infrastructure is being built, and projects are being constructed with considerable planning at a rapid rate. Affordable housing has led to increased demand, and thus, it has given a huge boost to real estate developers to carry on developments.
Pro-buyers:The Union Budget 2017 provided a commendable thrust to pro-buyers with regards to investing in the real estate sector.It is not just that buyers that have been impacted positively but lenders as well. The lenders are confiding in the policies being introduced by the government. As a result Home Loans have been made quite affordable. Affordable housing has paved the way for increased Home Loan borrowing. Furthermore, lenders are granting Home Loans at an attractive interest rate to help government fulfil the collective goal of “Housing for All” by 2022.
The government pledged 1 crore houses by 2019, and significant steps have already been taken. More efforts are being laid to create a home for the houseless. Apart from that, the area has been increased as affordable houses are now entitled to have a carpet area of 30 sq. metres. Earlier it was the built-up area which was 30 sq. metres. This means that the houses under affordable housing will be much spacious. Apart from this, falling Home Loan interest rates will aid home buying even further.
Overall one can say that the Union Budget 2017 has brought about tremendous development as well as increased purchase from buyers.
Anamika Verma writes on various types financial loans and has a vast experience as a financial advisor. Her expertise on financial issues is well sought after and she is known for her in-depth knowledge topics such as debt management, liquid assets, mutual funds etc. She has written more than 1000 blogs on topics related to Home Loan, Business Loan, EMI Finance, and loan against property and shares. A post-graduate in finance management ,Anamika loves to travel or cook in her free time.