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Impact Of Budget On Real Estate

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Impact Of Budget On Real Estate

Last updated: March 2 2015
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  • Impact Of Budget On Real Estate

    Understand service tax has been increased to 14%. Also, hearing that list of services which were not covered under ST have been pruned. Anyone can throw more light.
  • #2

    #2

    Re : Impact Of Budget On Real Estate

    http://www.indianrealestateforum.com...post20208.html

    It implies more maintenance cost and at least 15-30 k extra for those still to get possession of their flat.

    Comment

    • #3

      #3

      Re : Impact Of Budget On Real Estate

      Specifically there is only service tax.

      Sentimentally it is HUGELY negative. 2 lakhs limit is insufficient and more demanded has not been increased. I doubt is it will ever be increased further in BJP rule.

      The outlays in both budget and railway budget are very big. High govt borrowing is likely and will be inflationary.

      RBI will not like to lower rates after this budget until inflation is controlled.

      Inflation will be controlled only with general deflation and not just real estate deflation. So some time will elapse. Until then rates high. So that is negative for real estate.

      Govt is controlling inflation by deflating real estate.

      Budget is hugely negative for RE.

      Good for the poor wanting affordable flats
      Last edited February 28 2015, 06:55 PM.
      Venky (Please read watch a or before posting)

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      • #4

        #4

        Re : Impact Of Budget On Real Estate

        simply

        Baba ji ka thoolu

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        • #5

          #5

          Re : Impact Of Budget On Real Estate

          Modi jiee nay thoka thoka.. But thank good no hike in property investment rebates. Its a big scam and we need to kill real estate by stopping all such benefits.

          We morons get into this trap with some few thousands tax benefits but in real paying lakhs in terms of exorbitant pricing and long loan tenures . Second home buying should be taxed instead of any rebates.

          Anyhow, Modi is for corporates and we have got his real thinking in last couple of days!

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          • #6

            #6

            Re : Impact Of Budget On Real Estate

            Historically, RE prices are subdued under NDA rule while share markets boom. RE prices are way too inflated still and I see little chances of a major upswing in the near future. This budget is just an extension of NDA's lack of focus on RE sector.

            Congress may have been negative for the economy as a whole but the hell lot of black money and inflation generated during Congress regime was definitely propping up Indian RE big time.

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            • #7

              #7

              Re : Impact Of Budget On Real Estate

              All good views - I think gradually RE will die its own death as far as it being an invest-able asset class.

              Neither is it being incentivised nor will it be a source of parking black money. In particular there is clear imbalance between usage - which is low - because the haves have 2-3 properties and the have nots who cant afford any.

              But at the same time - land and building materials are becoming more expensive.

              Something is gotta give:

              - Land price is more expensive, land is getting tougher to procure
              - Circle rates are going up and away
              - Cost of borrowing is not coming down
              - Cost of material and construction is up
              - Approvals for builders are more and more difficult
              - Sand is getting tougher and tougher to procure
              - There is very little incentive for investing - black money will be eroded soon
              - Yet prices are unaffordable for most
              - And there is talk of housing for all and prices coming down
              - We are getting out of capitalism and open markets to a pseudo-capitalist, half open-market, half socialist setup.

              Subsidies for low-cost-housing, massive taxation for HIG and above housing next?

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              • #8

                #8

                Re : Impact Of Budget On Real Estate

                Sabkaa Saath Apnaa Vikas . Ramdev key majey aa gayee...

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                • #9

                  #9

                  Re : Impact Of Budget On Real Estate

                  Joker FM

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                  • #10

                    #10

                    Re : Impact Of Budget On Real Estate

                    Originally posted by dineshsays View Post
                    All good views - I think gradually RE will die its own death as far as it being an invest-able asset class.

                    Neither is it being incentivised nor will it be a source of parking black money. In particular there is clear imbalance between usage - which is low - because the haves have 2-3 properties and the have nots who cant afford any.

                    But at the same time - land and building materials are becoming more expensive.

                    Something is gotta give:

                    - Land price is more expensive, land is getting tougher to procure
                    - Circle rates are going up and away
                    - Cost of borrowing is not coming down
                    - Cost of material and construction is up
                    - Approvals for builders are more and more difficult
                    - Sand is getting tougher and tougher to procure
                    - There is very little incentive for investing - black money will be eroded soon
                    - Yet prices are unaffordable for most
                    - And there is talk of housing for all and prices coming down
                    - We are getting out of capitalism and open markets to a pseudo-capitalist, half open-market, half socialist setup.

                    Subsidies for low-cost-housing, massive taxation for HIG and above housing next?
                    Affordable housing is already doing well in Gurgaon, Bangalore, etc. I do not foresee the next generation of middle class playing exorbitant amounts or black money to buy 4 BHK's or Villas coz families are shrinking real fast.

                    I guess only affordable housing or lifestyle choices such as Kalypso/ Imperial kinda projects will do well in future. After all shauk badi baat hai, so luxury housing will always do well when times are good. As for the 50 lakh to 1.5 cr premium ( not luxury ) projects, future aint looking too bright IMO.

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