Announcement

Collapse
No announcement yet.

Increase Of Income Tax Relief On Home loans

Collapse
X
Collapse

Increase Of Income Tax Relief On Home loans

Last updated: December 16 2009
29 | Posts
  • Time
  • Show
Clear All
new posts
  • #11

    #11

    Re : Increase Of Income Tax Relief On Home loans

    Originally posted by Natarajg007 View Post
    Nabhishek, If a land was priced at 50L last year and then 30L this year as per your example, then can we say it was Undervalued this year. Same way if it costs 30L today and 50L after 2 months can it be over valued? In other words the forces of demand and supply decide prices. So I think your definition though in sync with what a typical LOCAL MADRASI tells does not sound Scientific.
    To make it scientific you need to have a base line which can move with other static parameters. In other words, though I enjoy your explanation it seems extremely Subjective and with zero Objectivity.
    I hope there will be more Objective Scientific means to measure VALUATION.
    Going by Nabhishek's explanation. Infact very often people say SPECULATIVE when prices rise. Why cant they say SPECULATIVE when it falls? In other words ORDINARY people can only think as a BULL and not as a BEAR. So when prices fall they think it is bad omen, not realising that there are ways to make money either ways. In RE as a Bear the way is a bit difficult since as Wiseman would love there are no Calls to sell in RE.
    However a coterie can sell off most of its owning at a higher price and then have a vested interest in price lowering. I dont know if they can sell in advance and then procure properties as Futures and Options would allow in Stock market but they almost reach that in their own ways. This I meant in case of big hands.
    Now when I accuse Wiseman, I feel he has vested interest in a fall in RE since he is trying to buy at lower levels and he personally does not dispose off his own properties in RK Salai or in Koramangala.
    In other words Bearish thought among ordinary folks is based on feeling and not on logic or scientific reasoning.
    Well let me complete it with a story which got me to write here now. I talked to a fellow who was selling 7grounds for 7crores in Lake View road West mambalam. I said if you can sell me half a ground for 50L it will be great as Anandxx wants it!
    He tells me, that price in WestMambalam is 2.5Crores. Then I asked why is he selling this at 1cr and he gives me some explanation that got lost in the din. Something like some documentation issue and one man owns everything (how can that matter?) and so on.
    In other words those of you who are clamouring for cheap property prices are just imagining falling prices. Those who sell you such cheap properties are actually disposing off SHIT to you and whether you pay 50L or 5L to shit, it is only shit. Sorry for using such a phrase but the truth is so!
    Now if I quote 2.5Cr for a property in Saligramam, I have DTCP approval, clean documentation and a place just across Big bazaar and Avichi school. Now I can get you a property around Saligramam for even 1cr per ground. These properties will be 2.5Km from Arcot road, in a messy cheri, and with dubious land records. If you buy that or put your money into the ocean they both mean the same. Infact you might as well give away that money to an orphanage and get some blessings.
    Now Wiseman being unable to get a price in RK Salai could also mean such dubious stuff, though I cant prove that as I dont have his documents.
    In Chennai dont be deceived by price. For the same locality you can have multiple prices as 1.Documentation 2. Villangam or Encumberance 3. Proximity to facilities and 4. Accessibility of the property matter a lot. Very often 1 and 2 are not easily understood by most of the so called Ordinary folks. So they can go by Nabhishek's logic of Last year vs This year. However last year the junk property might not have had any value and the good property might be 50L. This year since there are lesser buyers, the good property guy does not sell but bides time, while the dirty property guy comes and sells at 30L. Can this be a measure?
    I will love the folks reading this to evaluate it.
    Last edited June 18 2009, 06:55 PM.

    Comment

    • #12

      #12

      Re : Increase Of Income Tax Relief On Home loans

      Contra, This thread might be for something you might have suggested as you started it. However please remember that prices of land have not fallen and when we talk about Overvalued price it should be explainable. Remember I am talking about something written in this thread and nothing personal about my land in Saligramam. Hope sanity prevails with you.
      PS. What is trivial? Can you explain. Is RE buying or selling a trivial issue to you contra?

      Comment

      • #13

        #13

        Re : Increase Of Income Tax Relief On Home loans

        Friends,

        The Budget 2009 is out, please post your interpretations.

        Going by the News, I couldnt find anything concrete for reviving the real estate industry.

        The realty stocks are already seeing sharp erosion in prices.

        Comment

        • #14

          #14

          Re : Increase Of Income Tax Relief On Home loans

          Yes no help to RE or home loans in the budget

          RE revival is difficult now.

          Comment

          • #15

            #15

            Re : Increase Of Income Tax Relief On Home loans

            Originally posted by PosterXYZ View Post
            If a land was priced at 50L last year and then 30L this year as per your example, then can we say it was Undervalued this year. Same way if it costs 30L today and 50L after 2 months can it be over valued ?
            Yes .When a property value sees a 66.67% increase in 2 months ,its over/ultravalued and even a layman understands.But...
            Last edited July 6 2009, 03:19 PM.

            Comment

            • #16

              #16

              Re : Increase Of Income Tax Relief On Home loans

              No incentives to boost Real estate

              The budget has provided no incentives to boost real estate sector.
              1. There is no increase in income tax exemption on home loan repayments from existing 1.5L p.a.
              2. Even the income tax savings limit under section 80CC remains same.
              One good news for IT/ITES sector is that Fringe Benefit Tax has been completly removed, needs to be seen how this benefit will be passed on to employees of IT companies.
              Last edited July 6 2009, 11:43 PM. Reason: grammer

              Comment

              • #17

                #17

                Re : Increase Of Income Tax Relief On Home loans

                Still not been through the budget details as much info is not available online.....tommorow morning's newspapers should have printed copies of union budget 2009 in full details, for curious people.

                2 important tax benefits have also been announced which are of special interest.
                • There will no more income tax surcharge for those who earn above Rs.10L per annum. (Ofcourse only those who earned above Rs.10L p.a. paid surcharge in the past, so social ists need not cry foul). This means a person earning 30Lp.a. or 50Lp.a. could save Rs84,000 or Rs1,40000 respectively each year. Of course this savings may not boost real estate as its small given RE prices, but definately it could boost consumer spending among high income groups.
                • CTT or commodities transaction tax is removed. This would help commodities traders and dealers who transact in crores in commodities markets like NCDEX or MCX. I also have a feeling that government wants of encourage investors to invest in commodities futures trading. While there is no benefit announced for stock market, this special encouragement to commodities market seems to send a new signal.

                Comment

                • #18

                  #18

                  Re : Increase Of Income Tax Relief On Home loans

                  Contra,

                  As an individual who has not yet invested in RE, I also feel that there should have been an increase in income tax exemption for home loan.
                  But looking from a larger perspective, I feel it is good that this has not been provided. Becoz lot of ppl have already invested in 2nd, 3rd house etc and some 10-12yrs before. By increasing a limit of 1 Lac, there wud be serious deficit.

                  Reg,
                  Ravi

                  Comment

                  • #19

                    #19

                    Re : Increase Of Income Tax Relief On Home loans

                    Originally posted by G_IVAR View Post
                    Contra,

                    As an individual who has not yet invested in RE, I also feel that there should have been an increase in income tax exemption for home loan.
                    But looking from a larger perspective, I feel it is good that this has not been provided. Becoz lot of ppl have already invested in 2nd, 3rd house etc and some 10-12yrs before. By increasing a limit of 1 Lac, there wud be serious deficit.

                    Reg,
                    Ravi
                    Hi G_IVAR

                    I have just posted the points noted down from the budget for the benefit of forum members.

                    but not expressed my own opinions on the budget.

                    In my world i am against all tax exemptions....there should be no tax exemptions first of all for home loan repayments. I pay my taxes fully happily...you will be surprised but expect my EPF i have no tax saving investments like insurance etc.

                    Because i know none of the so called tax savings instruments really benefit the individual....it will save you 2 Rs. in tax while stealing 20 Rs. from your long term cummulative savings by giving away big commissions to agents and finance folks.

                    Comment

                    • #20

                      #20

                      Re : Increase Of Income Tax Relief On Home loans

                      a valid point missed by many

                      Originally posted by contra View Post
                      Hi G_IVAR

                      I have just posted the points noted down from the budget for the benefit of forum members.

                      but not expressed my own opinions on the budget.

                      In my world i am against all tax exemptions....there should be no tax exemptions first of all for home loan repayments. I pay my taxes fully happily...you will be surprised but expect my EPF i have no tax saving investments like insurance etc.

                      Because i know none of the so called tax savings instruments really benefit the individual....it will save you 2 Rs. in tax while stealing 20 Rs. from your long term cummulative savings by giving away big commissions to agents and finance folks.
                      hi contra,

                      You have made an excellent point missed by many while investing in
                      so-called tax-saving instruments.
                      However,many who would otherwise not save or invest end up saving
                      because of such ploys.

                      regards
                      unlikely

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X