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  • Union Budget 2017-18 makes real estate more affordable

    Keralaproperty.com | 2017-02-02 00:49:18
    Union Budget 2017 proposes several positive measures for the real estate sector. Below are the key positives measures included. 
     
    Infrastructure status to affordable housing, which will reduce the cost of funding for the builders, the benefit of which he can pass on to the purchasers. 
     
    Capital gain tax period reduced to 2 years from 3 years, which means less capital gain tax for a person who intends to sell the house after two years of purchase instead of 3 years. 
     
    Notional tax on the unsold but ready inventory to be charged only after 1 year. The land holder in any real estate project has to pay tax on the gains only once the project is complete. Earlier the land holder had to evaluate the price of the land held while entering into an agreement with the builder and pay the tax on the notional gains. Now this payment would be deferred, thus encouraging more land holders to enter into development with realtors. This would increase the supply of properties, thus a positive for home buyers. 
     
    The 30 square meter limit for affordable housing will apply only in case of municipal limits of 4 metro while rest of the country including in the peripheral areas of metros 60 square meter will apply. This will make apartments in non-metros cheaper. 
     
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