realestate2022

This Time, Repo Rate Cut Should Make You Really Happy. Here Is Why In its Third Bi-Monthly Monetary Policy Review on August 2, the Reserve Bank of India (RBI) reduced repo rate — the rate at which the Central bank lends to financial institutions — by 25 basis points (bps), to bring it down at six per cent, the lowest since November 2010. Since April 2015, repo rate has been slashed by 150 bps while banks have also cut the MCLR (marginal cost of funds-based lending rates) by 75-250 bps. This certainly is good news for India’s real estate. Legislations such as the Real Estate Act and the Goods and Services Tax have already done their bit to bring positivity back among consumers; a fall in lending rate would further boost homebuyers’ confidence. As DLF Chief Executive Officer Rajeev Talwar put it, the move “could not have come at a more appropriate time”. However, we all know you may have to wait a little longer till banks pass on the benefit and reduce the lending...

GST and its impact on maintenance charges What will be the impact of the Goods and Services Tax on the monthly maintenance charges paid by the residents of cooperative housing societies? We examine when and on what components, will GST be applicable When is GST applicable on maintenance charges? Maintenance charges were subject to the levy of service tax earlier, if the aggregate of the maintenance charges levied by the housing society exceeded Rs 10 lakhs in a financial year. Under the GST, this threshold limit has been raised to Rs 20 lakhs. So, a housing society will have to collect GST from its members, if the aggregate of the charges during a financial (whether subject to GST or not) exceeds Rs 20 lakhs. The society, therefore, will have to obtain a registration under the GST for this purpose. However, even if the society obtains this registration, it cannot levy GST, if the maintenance charge for a flat does not exceed Rs 5,000 per month. So, in case the aggregate of the charges ...

Why Realty Is The Best Bet For NRIs (Dreamstime) Confused how investing in Indian real estate market can be fruitful for your portfolio? Despite slow price rise in the property market as compared to other developed economies, the investment climate in India is positive due to favourable political situation and right policy initiatives. This has enhanced the confidence of global investors in the Indian economy. Apart from this, improved outlook of the economy on global platforms is bringing back those investors into the field who were so far sitting on the fence. This combination makes India a hot destination for investments. Here is how non-resident Indians (NRIs) considering investment in India c an benefit: Property prices are at the lowest NRI investors should make the most of the slow  real estate market . Historically, the price rise rate in India has always been higher than the matured markets of the West. This is the reason why India can offer more value for money to th...

5 Disadvantages Of Not Taking A Home Loan (Shutterstock) Let us not try to challenge the basics in anyway; being a borrower is not easy. There are so many terms and conditions you have to abide by; there are so many dos and don’ts one has to mind. Given a choice, you may never like to seek financial assistance from banks. Now, what if you have a choice? What if you have enough money to buy a house without taking a home loan? You like a house worth Rs 50 lakh, and you and your wife have enough savings to make the purchase without having to go to a housing finance company. Why should you opt for a life where several restrictions will be thrown your way when you can simply avoid them? A fair point, indeed, but here are some other points that you must consider before arriving at a decision. It may not be a wise idea to pump all your liquid money into an illiquid asset. In case you need cash owing to an emergency in future, you would find it mighty hard to arrange it. Your home may be worth...

How will GST impact the cost of homes   Here is how home prices in various segments of the property market will be affected by the GST Under the Goods and Services Tax (GST), the effective tax on under-construction projects has gone up to 12 per cent, which is an increase of 6.5 per cent. The actual GST rate is 18 per cent on realty, but allows one-third of the tax to be deducted from the land value, from the total cost charged by the developer. While the GST gives an option of getting full input set-off credit, this is not applicable on ready-to-move-in flats and as a result, developers will have to bear the burden of the higher tax or pass on the same to the end-consumers or increase the overall prices, to match the new tax burden, say developers. However, new flats will cost less, giving some breather to the developers of upcoming projects. “While developers might still get some benefits for projects that are in the nascent stages, they will have to bear the tax burden for ready...

Independent India - A real estate perspective As of now, the incumbent Government's 'Housing for All by 2022' vision seems a bit Utopian. In the 71 years since India gained independence, the country’s real estate market has changed tremendously. While it has not always been consumer-favouring throughout this period, it is certainly so today. The country’s cities have expanded, new economic drivers have come in and jobs are being created at all levels. Likewise, appropriate housing is now being created for all income levels. The current government has taken the needs of the people to heart and deployed various policy initiatives to ensure that home ownership becomes affordable and desirable. Also, like the real estate market itself, the market for housing loans has become very competitive, giving consumers the edge of choice. Moreover, property prices have also rationalised across the country after the government's demonetisation move late last year. While it was initial...