Union Budget 2015 and Real Estate industry

JMIS International School

Sponsored

Indian Finance minister has just spelled out the union budget 2015.
We discuss its impact on the real estate industry:

Measure: Service tax hiked from 12.36% to 14%
How does it impact buyers/owners: This is expected to impact the sales of under-construction properties as the same would be costlier by at least 1.5%. Also, owners in ready to move flats will continue to pay extra as part of monthly maintenance and other miscellaneous charges on which ST is applicable.
Verdict: Thumbs down

The Aster Public school

Sponsored

Measure: Foreign investment in Real estate
How does it impact buyers/owners: Expected to bring competition and hence improve overall quality of offerings.
Verdict: Thumbs up

Measure: No direct impact on Home loan
How does it impact buyers/owners: Much was expected on this but no direct measures have been announced for reductions of home loan rates or increase of tax exemption limit.
Verdict: Thumbs down

Overall the budget has been a let down for Real estate industry. No directions have been announced on rate cuts. All eyes would now be on RBI’s next notification of lending rates.

Comments/Feedback invited.

Last updated: February 28, 2015 at 14:31 pm

Leave a Reply

avatar
  Subscribe  
Notify of

Copyright © 2019 go4reviews.in. All Rights Reserved. 

%d bloggers like this: