Impact of Budget 2012 on affordable housing
This year budget has brought great hopes for those builders who were indulged in developing affordable homes.
As per the current external commercial borrowing (ECB) norms, interest rates will be charged less in case of loan taken from foreign financial institutions than domestic ones.
Also loans have been made cheaper for affordable homes’ buyer by extending the interest subvention of 1% for another year on housing loans up to Rs 15 lakh, on the cost of the house which does not exceed Rs 25 lakh.
One disadvantage would be the increase in service tax from 10% to 12% this year.
Speaking for the increase in service tax, Lalit Kumar Jain, National President of CREDAI said that TDS applied on transaction of a property will also increase the cost of buying a property.
Vikas Malpani, one of the Co-founders and Head of Marketing & Communities of CommonFloor.com stated this will result in increase in price but will bring down the unaccounted transactions involved in the industry.
Source: Deccan Herald
Affordable homes, Budget, Budget 2012, Buying property, CommonFloor, commonfloor.com, CREDAI, ECB norms, External commercial borrowing norms, Service Tax, TDS
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