Homebuyers’ expectations from the next Union budget 2023-24!
Favorable house loan policies
The real burden has grown since the same borrowers from the past are now paying higher interest rates on house loans, even as the RBI boosted its pension absorption rate to combat rising inflation. Due to this, Equal Monthly Payments increased (EMI). Additionally, it has prevented purchasers with limited resources from closing transactions out of concern about impending rate increases. Therefore, according to experts, lowering the requirement for a down payment and loosening the requirements for a house loan might make it easier to obtain credit and boost the purchasing trend.
Extending the Affordable Housing Price Cap
The current definition of affordable housing is a home that costs less than Rs 45 lakh. This restriction has to be altered since real estate prices, particularly in metropolitan areas, have risen. It is recommended that a cap of Rs 50–60 lakh be set to pique homebuyers’ interest with a variety of perks.
Bringing back Grant Programs
Homebuyers are utilizing homeowner credit to pay interest on spent credit as soon as it is given in the absence of grants from grant programs. This is a particular problem for homebuyers because the cost of rent and EMIs have increased. Homebuyers will be encouraged to invest as EMIs will be due in the case of foreclosure as a result of the repeal of the subsidy prohibition.
Review of PMAY Fund Allocation
Launched in 2015, the Pradhan Mantri Awas Yojana (PMAY) initiative aims to provide “Housing for All” by the end of 2022. The Treasury has set aside a sum of Rs. 48,000 crores to finish 80 lakh housing units for the designated beneficiaries and extend the benefits of the Credit Linked Subsidy Scheme (CLSS) for the underprivileged until December 2024 to attain this target. Only low-income (LIG) and economically susceptible (EWS) categories were included in the last budget. To satisfy the demands of the middle-income group, according to Pradeep Aggarwal, Chair of the ASSOCHAM National Council for Benefits of Credit Linked Subsidy Scheme (CLSS), under PMAY (MIG). The state governments of West Bengal, Uttar Pradesh, and Maharashtra granted stamp duty exemptions in 2021.
The developers contend that a consistent discount ought to be implemented nationally. The director of Stamp Duty, Abhishek Bhardwaj, presented his thoughts on how the Stamp Duty Reduction would help developers and guarantee that homebuyers could register their properties. The sector is expecting a policy that would foster real estate expansion and general economic development as of February 1, 2023.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
