“When one gets a home, a poor person gets courage”. These were the words spoken by our Finance Minister, Nirmala Sitharaman while announcing the budget this year. Amongst the slew of incentives that have been announced for homebuyers, the most noteworthy incentive has been the allocation of Rs 48000 crores for the Pradhan Mantri Awas Yojana. The government aims to build 80 lakh homes under PMAY Urban and PMAY Gramin in the year 2022-23. Under the PMAY scheme, 60,000 eligible beneficiaries will be identified.
If this wasn’t good news enough, it was also announced that the government would take steps to cut down red tape that might be involved in constructing these homes. Add to this, interest rates for home loans start around 6-7% while business loans start from 8% onwards and go up till 21%.
Also, there are several tax incentives ranging from additional deductions on the interest component to exemptions on reinvesting the proceeds from the sale of an asset into a home. Case in point, you can invest up to Rs 50 lakhs or invest the money that is accrued from the sale proceeds of a home into qualifying assets. You can then claim exemption from capital gains tax. This makes it one of the most lucrative tax incentives available in the country.
All these incentives are definitely going to boost the real estate sector which is the second largest employment sector after agriculture and contributes to 6% of the country’s gross domestic product. If these don’t prompt you enough to invest in those prelaunch projects in Bangalore this year, make note that Ms.Sitharaman has also announced that a high-level committee of urban planners will be assigned the task of urban planning. A total of five academic institutions will be designated as centers of excellence in urban planning. Each institute will be allocated an endowment fund of 250 crores. All these will lead to good infrastructure which in turn will lead to an increased value of your prelaunch projects in Mysore.
The Indian Economy is also looking god this year. It is projected to grow at 8-9%. This has led to an increased demand for larger homes. To conclude, 2022 is an excellent year to invest in those new apartments in Mysore. There are several factors that come into play that include low rates, soft property prices and additional benefits that are being currently offered. Additionally, the work-from-home culture is making it more important than ever to buy a home.
A huge amount of pent up demand has been unlocked over the past two years thus giving a positive flip to the real estate market. Add to this, the repo rate remains unchanged after the recently held RBI bi-monthly review. This is a positive outcome that translates into cheaper home loan interest rates. But it is unlikely that these rates will sustain in the next fiscal. Thus, it is better to invest in those prelaunch flats in Mysore this 2022. Hence, don’t wait. Visit Mysore’s biggest property expo from May 27th to May 29th at Cosmopolitan Club, Mysore.