‘GST may bring down property values by 7-10%’Thu Dec 15, 2016 16:30 India, Real Estate
The Indian real estate market has seen policy changes lately which has impacted its modus operandi. With Demonetisation, Goods and Services Tax, Real Estate Regulatory Act and Benami Transaction Act, home buyers are hopeful that the realty market will be more conducive for investment next year.
In order to give our readers the best insight on the impact of policies, Magicbricks has begun a series called ‘Policy Wednesdays’. Every Wednesday, experts from different realms of real estate will come online and answer queries of consumers directly.
The first episode - ‘Should I buy property now?’ was hosted today noon. This is an important series because we believe that without attaining an understanding of the market, one cannot take a wise decision. All experts whole heartedly agreed that recent policy changes has brought hope for transparency in the sector that has been opaque all this while.
How will GST impact your #property purchase?
Explains Samir Kanabar, Tax partner, Ernst & Young, “Act can come latest by September 2017 or even before. All 4 major components – Stamp Duty, VAT, Excise Duty and Service Tax which costs around 12 per cent paid by the consumers, will get subsumed into GST. Stamp Duty will continue. Under GST regime, tax will come down.”
“GST will be a game changer for real estate and will reduce #property prices by 7-10%. For this, for sure, builders need to pass on benefit to buyers,” Kanabar added. He also informed the audience that laws have been made stringent on Benami Transaction and that the government can confiscate such property.
Future of home loan rates
When asked by consumers whether home loan interest rates are going to come down in near future, Dhirendra Kumar, CEO, Value Research said, “Home buyers should be prepared for a sustained decline in the bank interest rates going forward.”
5 quick checks before investment
Khurshed Gandhi, MD, Consulting Services, India Cushman & Wakefield advised buyers on 5 things that they need to check before investing in new and developing areas that it meets their budget, has good connectivity, well-developed social infrastructure, should suit their lifestyle and has enough security.
Adding to this Dhirendra Kumar said, “Before you invest in a property, you should do a lot of research, have patience, don't cross budget, don't fall for marketing tricks and choose wisely.”
Impact of Demonetisation
On the impact of demonetisation, Gandhi said, “Secondary property market is likely to see a dip as compared to primary market, mainly 10-15 per cent.”
He also demanded from the state governments that RERA should not be a one-sided affair and must not over regulate the sector. ‘Make a proper process for builders and give them single window clearance,’ said Gandhi.
In the second Hangout event, V Suresh, former CMD, HUDCO carried the discussion on impact of policy on property market further. “Price decline is likely in primary market which builders may offer to attract transactions. Investors who have invested with the expectation of good ROI are not likely to be benefitted soon,” he said.
Asked by the host E Jayashree Kurup on what trigger the sector needs to revive itself, V Suresh said that after the changes that new policies will bring in, reduction in bank interest rate will be the final trigger that will motivate the fence sitters.
“Reduction in bank interest rate will trigger buying in real estate market. For best price, buyers should negotiate well with the developers,” Suresh added.
Benami Transaction Act, home buyers ,Goods and Services Tax, Real Estate Regulatory Act, buy property, loan rates,quick checks ,Impact of Demonetisation
Copyright © 2016 | Website Design & Developed By : www.kuwaitnris.com
Kuwaitnris try to report accurately, we can’t verify the absolute facts of everything posted. Postings may contain fact, speculation or rumor. We find images from the Web that are believed to belong in the public domain. If any stories or images that appear on the site are in violation of copyright law, please email [email@example.com] and we will remove the offending information as soon as possible.