What Home Buyers Desire From The Union Budget 2017
Home buyers have huge expectations from the Union Budget 2017. Homebuyers wish for a clear demarcation between retail investors and end-users since there are perceptions of rich investors being major obstacles towards the achievement of the Housing for All target set by the Government. Home buyers still feel anxious about receiving some or all of the benefits announced for them under the Pradhan Mantri Awas Yojana and other schemes.
A whopping 8 out of 10 home buyers or 77% approximately seek higher incentives for first-time home buyers and they also stress that these incentives should not be given to second/repeat home buyers. A huge number of home buyers up to 70% also recommend the imposition of higher taxes on repeat buyers of properties. They feel that this will also help builders in Vadodara, Chennai, Hyderabad & Ahmedabad or other cities focus more on first-time buyers instead of pandering to investors. Close to 62% also feel that moves like this will address the housing crisis in the country. They also suggest imposition of huge penalties up to the rental value of an apartment for a property which is invested in and remains locked up in major Indian cities.
These were the findings as revealed through several surveys and reports covering almost all major Indian cities including Chennai, Hyderabad, Ahmedabad, Chennai, Bangalore, Mumbai, Delhi-NCR, Kolkata, Lucknow, Pune and Chandigarh. Aspiring home buyers desire Government action in discouraging ownership of more than one home. The tax benefits should be tailored in a way that encourages the purchase of only one home by an individual.
Many also feel that all tax exemptions and incentives should be available for only first-time buyers. People with two to three homes should have to bear added stamp duties and taxes according to several prospective home buyers. According to several real estate developers, in case incentives are announced for first-time buyers only, then developers will also profit from the same. A whopping 92% of home buyers in the country want a more simple tax framework for home purchases where construction lags do not lead to them missing out on tax incentives.
54% also affirmed that the extra tax benefit of Rs.50,000 for homes up to Rs.50 lakhs will not be an adequate amount in most metropolises and this should be increased for houses which were worth up to Rs.1 crore. 58% of home buyers also desire more clarity on GST and the impact in terms of taxation on home purchases.
Affordable housing is set to be a major growth driver for the real estate industry at large and the greater transparency in the real estate industry through demonetization, RERA and GST has attracted several foreign players to the Indian market. Pacifica Companies, for example, is an US-based conglomerate which has already developed several projects across Chennai, Vadodara, Bangalore, Hyderabad and the National Capital Region. The real estate brand develops projects across categories like villas, apartments, IT parks and 5-star hotels among others.