Affordable Housing… A Blessing

Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income... As a result, it becomes the increased responsibility of the government to cater to the rising demand for affordable housing.

Here in India, loans given by banks to individuals up to ₹25 lakh in metros and ₹15 lakh in non-metros — for purchase/construction of a dwelling unit, per family, were considered as affordable housing loans. These loans also fell in the priority sector lending category for banks.

In a bid to boost the housing sector, the Reserve Bank of India recently announced home loans up to ₹50 lakh in metros and ₹40 lakh in non-metros, given by banks will qualify as affordable housing loans.

It is also prevalent and expected further that interest rates could come down on affordable loans given out by Banking Institutions. While tweaking the affordable housing definition, the RBI said the cost of a house cannot exceed ₹65 lakh and ₹50 lakh in the metros and non-metros, respectively.

Pune being declared as the 7^th Metro of India still is considered a non – metro in the new affordable housing thereby reducing the house all inclusive cost to ₹50 lakh to qualify as affordable housing.

The Government is giving every possible advantage to first home buyers through affordable housing in form of lower interest rates and tax rebates. Of the housing demand of entire India, 90% fall in the affordable housing category. No doubt, affordable housing is on the rise and expected to grow 300% in the next few years.

Mr. Mohan Thorat, MD of Kamalraj Group, which has a strong real estate history and having Affordable Housing @ Moshi and Dighi  adds “Affordable housing is on the rise but not doing as well as expected due to the inherent fact – Ignorance. People are very ignorant and least bothered of the benefits affordable housing has on offer. Real Estate groups are adding to the grief by forgetting to educate the market. Kamalraj Group stands proud here on this aspect. We take pride and stay pious to our Brand positioning “Nice People. Nicer Homes.”  We make sure that we educate and help our customers and every potential buyer on all the benefits of affordable housing.”

Dighi & Moshi- locations blessed by Budget 2017-18

Budget 2017-18 has become the talk of the town. With increase in taxation slab and infrastructure status grant to affordable housing sector, people are planning to invest in affordable housing. On the other hand affordable housing developers are also delighted, as they will now be eligible for government incentives, subsidies, tax benefits and most importantly institutional funding. At the same time, they are hoping for government to release the land in central location.

Now the big question arrives... where to invest for affordable housing especially in Pune? And the big answer is Dighi and Moshi.

Today these locations are rising as a suburb of Pune. Situated on Pune-Nasik highway, Dighi and Moshi have benefit of being in the proximity of Chakan industrial area as well as auto cluster of both Bhosari and Chakan. The employees working here prefer to live in Dighi and Moshi because of its great connectivity with PCMC and Pune. Importantly, these locations are emerging as affordable housing hub.

So, if you are planning to take benefit of Budget 2017-18, the location is hot and the time is now. 

A big broad smile for builders’ lobby -Budget 17-18 - Mr.Mohan Thorat

As we all know that post demonetization the real estate industry was looking forward for a boom. So, here comes the good news for the builders’ lobby- The budget 2017-18.

Along with increasing personal tax limit, the budget has so many reasons to increase the property affordability for middle class. The most important news among all is affordable housing got the infrastructure development status along with increasing allocation of rural housing development.  This might also be the indication that the government may also release land for affordable housing development in central locations.

For us, the builders, it’s time to gear up for the new opportunities and new challenges in the financial year 2017-18.

By

Mr.Mohan Thorat

KamalRaj Properties

http://www.kamalrajproperties.com/