The budget of 2018 brings a smile on the faces of residential property seekers. With the mission to provide ‘housing for all by 2022’, the NDA government promotes and boosts affordable housing solutions across India. Many renowned builders, who were earlier known to take up some premium projects, are now aiming to take up some affordable housing projects so to get instant ROI (Return on Investments). Though premium residential projects were quite popular in the last few years, affordable housing projects are functioning well in many Indian cities.
However, if the government has to achieve its targets of providing housing solutions to everyone by the year 2022, it needs to do a lot in the fields of real estate like lowering the housing loan interests & prices in various cities, making the procedure simpler, and so on.
Indian Finance Minister Arun Jaitley has introduced the budget of 2018 with various features and this will help the common people get to achieve a home of their own.
An interest subsidy of 3-4 percent has been provided to the new and existing residential loan customers who fall under LIG (Lower income group) and EWS (Economically weaker section). The latest bank rate cuts have made home loan interests range between 8.3%-9%, and a subsidy of 3-4 percent can make the home loan interests as low as 5 percent or even more than that. However, if the housing costs are more, it would be difficult for the common people to afford and the real estate market will never be able to recover its position. Maybe an overall growth in economic front by creating more job opportunities can also help make housing affordable.
The government must provide more facilities to the economically weaker class people and those belong to the low-income group. The government must allocate more funds for these deserving people under CLSS (Credit-Linked Interest Subsidy Scheme) for the budget 2018 as the beneficiaries are increasing. CEO of a renowned Real Estate firm says-“the creation of the fund will boost buyers’ sentiments and help revive the realty market. We expected the government to give industry status to real estate sector, though its efforts to support infrastructural developments laudable. This will have some impact.”
There must be more income tax benefits provided to the customers who are seeking a residential property. The first-time buyers can claim tax reduction benefit of 50,000 on the home loan. So, the professionals now can have more reasons to buy a home for herself/himself and her/his family.
Housing, food, and clothes fall under basic necessities, and making them affordable is one of the biggest concerns of any developing country. As the housing complexes are loaded with hosts of amenities, the prices are usually higher than the standalone apartments. But with little push from the government and aids provided, these big residential complexes are easy to touch. The budget of 2018 provides ample opportunities to the people of middle and lower income group to get their dream home without shelling out a lot. However, an overall economic growth can help boost credibility and affordability to buy premium properties easily.