Hike exemption limit on home loan interest: Builders’s Association
With the Union Budget to be presented in a week, Builders’s Association of India (BAI) expects a hike in exemption limit on the interest in home loan.
At present, the exemption is set at Rs 1.5 lakh which the builders want to be set at Rs 3 lakh.
The builders demand the Finance Minister to hike the exemption limit in the forthcoming Union Budget to keep the pace of interest to cover cost of flats available in major parts of the country.
With the current exemption limit on home loans interest which ranges between 10- 11 percent per annum and the amount sums up is sufficient only on home loan up to Rs 15 lakhs.
As per reports, all the major towns having population above one million hardly find any location and flats available within Rs 15 lakh since most of the houses cost Rs 30 lakh and above.
Also, currently there is a shortage of 30 million houses in the urban areas of the country.
Furthermore, Reserve Bank of India (RBI) is set to cut the CRR as well as repo rates and bank lending rates to increase liquidity in the system.
With this initiative, developers in Mumbai are hoping that with the upcoming Union Budget 2013, it will improve investment volumes and general growth across real estate sector in Mumbai.
Mumbai real estate industry expects increased provisions of external commercial borrowings for low-cost housing, tangible tax relief for individuals and greater investments in infrastructure.
As buying a home is everyone’s dream, home buyers are keeping a track of the steps taken during the budget to decide their next course of action for investment on their dream home.
A well known developer in Mumbai said, Union Budget 2013-14 is expected to widen the tax benefits on housing loans. The real estate sector has been one of the major contributors to India’s GDP and is a growth driver for the economy.
Furthermore, another property consultant comments that with the budget, investment climate and business environment is going to improve in the real estate sector.
Related Real Estate News:
Mumbai real estate hopes good news from Union Budget 2013
Real estate bill likely to favour property buyers
RBI may allow real estate brokers to apply for bank licenses
BAI, budget 2013-14, Builders's Association of India, Commercial real estate, CREDAI, CRR, home loan, Home loan interest, Interest on home loan, Mumbai, RBI, Real estate in Mumbai, Repo Rate, Reserve Bank of India, Residential real estate, union budget, Union Budget 2013
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