Vice President CREDAI National
With over 30 years of experience in the construction and Real Estate sector, Mr. S.N. Raghuchandran Nair leads the team from the operational and technical front. A stickler for quality and workmanship, he inspires and motivates the team with his wide array of knowledge and expertise. He is currently the National Vice President – CREDAI (2015-2017) . He holds various other key positions namely, Vice President – Trivandrum Chamber of commerce and Industry, Treasurer- Kerala Information Centre and also serves as the Honorary Secretary, SAI Trivandrum Golf Club. He is also a member in various Advisory Committees to the Government and other Statutory Bodies.
What will be the impact of budget on real estate?
The Real Estate Sector will get a boost from reduced financing rates with the doubled lending target and interest subvention. Having been granted “Infrastructure” status, those who meet the criteria for Affordable Housing, can reap many additional benefits, Income and Service Tax immunity being the most important among the various exemptions. The revision in base Index year ( from 1981 – 2001) and the reduced holding period for Long – Term Capital Gains computation will give the momentum for Real Estate Industry. The assessment of Capital Gains Tax on Joint Venture Agreements to the year of completion will attract more Landlords into Real Estate. Similarly, deferment of taxation for inventories held by the Builder for one year from the date of completion eases the liability of the Builder. Introduction of GST is said to have a positive impact on real estate investments.
2. Is this the right time to invest in real estate?
Yes, as the beginning of the forthcoming fiscal year will bring in a bunch of reforms both on the Tax and regulatory fronts including reduction in interest rates. The Buyers therefore would use the interim pre-quarter period to evaluate the offers and prepare themselves with the choice.
3. Will there be a price correction on properties?
Not on Real Estate Developments. However, price correction is likely to happen in property transactions on account of demonetisation.
4. How affordable would housing loans be?
Housing Finance Interest rates have already dropped by 0.5 % and it is expected to come down further on account of interest subvention.
5. How would the resale of properties be affected?
At present, it is affected on account of demonetization and is likely to pick up with the new Capital Gains Policy.
6. Your piece of advice for the investors !
It is the right time to invest before the prices move up when the benefits of the Budget start trickling in.