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Thursday, June 4, 2009

This year’s Budget may offer fiscal concessions to the real-estate sector for building affordable houses

One of the top priorities of the government:

The housing ministry has started pre-Budget discussions with stakeholders in the real-estate sector and state governments, with an eye on affordable housing in urban areas.

“We are formalizing a proposal to be sent for consideration of the finance ministry on extending fiscal incentives to the real-estate sector for giving a much-needed push to housing in urban areas,” a senior government official told The Indian Express.

The real-estate sector has been asking for extension of tax holiday for five years under Section 80-IB(10) for housing projects approved after March 31, 2007. “The realty firms must be encouraged through fiscal incentives to construct small dwelling units at affordable prices.

The increase in the construction activity would simultaneously give a fillip to other industries such as cement, iron and steel besides generating employment opportunities,” said an industry chamber representative.

The chambers have demanded that limit for deduction of interest paid on loans for purchase or construction of houses be raised from Rs 1.5 lakh to Rs 3 lakh."
To read more, please, visit - Indian Express

An Affordable Housing - A Big Deception?

I am sure, most of us will agree with View Seth, India. He says:
The term Affordable Housing is a big deception by builders!

It clearly shows till the recession hit, the builders where cheating the public with high rates which was inflated based on their greed!

Public should not be fooled by this new terminology, we should remember these so called affordable housing is in out skirts of cities with no proper infrastructure which caters to lower and middle class segment.

Why cant they make affordable properties inside the cities?

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  1. Affordable house means small house:-

    Where one cannot keep a fridge in kitchen.

    Where one cannot keep a wash machine in bathroom.

    Where one cannot keep a Big TV + Home theatre in living room.

    Which is Indian peoples aspiration and very affordable.

    Why cant bldrs reduce their margins a bit and share some booty i.e profits with Aam admi

  2. well said Sansei !!
    Common man also needs decent space to live, not to live in cages !!
    Day is not far when AAM AADMI will correct this system.

  3. Only answer an AAM-ADMI can give to the builder-politician nexus on the high property prices is - BOYCOTT REAL ESTATE
    Just don't look at it for another at least TWO years.

    If people are not ready to sort out this issue like this, ready to suffer by highly inflated prices, and pay EMI's for your life time and live your life like a slave for the builder and the bank.

  4. Builders are simply doing business and they have all the right to claim as much profit as customers are willing to give.

    But in free market, things can not always go in one direction.
    If people are finding it extremely tough to purchase a 2BHK for 25 lacs today, there is no reason to believe (and panic!) that the prices will go up to 35 lacs in 2-3 yrs and you will be left out.

    As for builders, there will be a limit till what time they will be able to hold back (They should as much as they can - that's Biz!)

    Property prices will come down for sure unless the job market is buoyant again... and we know that it is unlikely!