“Fundamental right to own a home”, “income tax exemption limit of 4 lac” and “2% subsidy on home loan”- the three major expectations of homebuyers’ from Union
Budget 2013- Says Roti, Kapda & Makaan, a budget research by makaan.com.
The presentation of Union Budget is among the most important economic activities of the nation. The upcoming Union Budget 2013 is awaited by all sectors of the economy, including real estate.
Buying a home is one of the most significant financial investments for most Indians and home buyers keep a look out for the steps taken during the budget to decide their next course of action.
With the intention to gauge the expectations of home buyers from budget 2013, Makaan.com, India’s fastest growing property website, conducted a research christened Roti, Kapda & Makaan 2013. The research was carried in the month of January & February 2013 among 1725 home buyers in the cities of Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh, Indore and more.
The key findings of the research are:
If I were the Finance minister, I’d make owning a house a fundamental right for an Indian
The finance minister has the most critical role in shaping the countries economy and therefore this role is an extremely challenging one.
As part of the research, makaan.com asked the home buyers to do a role reversal with the FM and suggest measures that can help create a positive impact on the Indian realty sector. 30% of home buyers feel that if they were in place of the Finance Minister, they would make owning a house a fundamental right of the Indian citizen.
As per them, this step will give the much needed boost to the real estate sector. It is closely followed by the need of a change in the tax exemption limit as 27% of home buyers feel that they would increase Income tax exemptions limit on repayment of interest on home loan from 1.5 lac to 4 lac p.a.
Another 20% are of the opinion that they would provide 2% subsidy on home loan interest rates. 13% home buyers feel that they would introduce a lock in period of 3 years for home buyers to promote end user demand.
4 lakh should be the ideal income tax exemption limit for interest payment towards home loan
The Income Tax Act offers encouragement to buyers to invest in a residential property. The current income tax exemption limit for the interest payment towards the home loan is 1.5 lakh per annum. This exemption was introduced over a decade back and has not been revised.
With the increase in property prices over the past 10-12 years, this limit is no longer adequate and home buyers’ want this to be increased. 24% buyers want a limit to be hiked to over 4 lac whereas the majority 39% buyers state that 4 lakh should be the ideal income tax exemption. 26% are more muted in their expectation and believe that a jump of 1 lac from the existing limit of 1.5 lakh is good enough.
Only 11% buyers are of the view that the current limit is satisfactory and no change is required. On a similar topic, according to industry experts, it will be worthwhile to buy the property in joint names so as to reap the full fruits of tax and investment planning.
Pressing desire for dispute redressal mechanism; 85% of homebuyers believe it will be a good step for long term
On being probed on the current state of dispute redressal, home buyers expressed their dissatisfaction and 85% are of the opinion that the property market urgently requires a “dispute redressal mechanism” to safeguard their interest.
They are also hopeful that finance minister P.Chidrambram will take step in setting this mechanism as part of 2013 budget. The requirement for the redressal mechanism has been there for a long time but this is the first time this demand has been highlighted by the home buyers.
There has been growing number of cases of project delays and allotment cancellations and home buyers may be finding it difficult to cope with such situations making this desire stronger than ever before.
It needs to be seen if Finance Minister will consider these suggestions from the Indian home buyers. We will have to wait for the end of the month for this answer.
Source : moneycontrol.com