The housing and finance sector has been experiencing a growth since the past few quarters. This sector is being observed very closely with the specific trends including exemption of GST on affordable housing, and RERA making the industry move forward.
Affordable Housing-
This segment has been specifically witnessing an increase and an uptrend. The supply growth will be 15 percent as per the launches which have taken place over the last three months when compared to the previous quarter. It is evident that the developers will begin to expand their portfolio in affordable housing which also caters to the lower as well as middle-level income household levels.
The impact of RERA-
This act was the first real estate regulator act of India which enforced that each State and Union territory should form a regulator of its own and then frame rules which will overlook the functioning of this regulator. In the long run, RERA will also carry out more fair and equitable transaction between the seller and buyer by bringing an organized approach with a high transparency in the picture which can benefit all their stakeholders.
Goods and services tax-
The market has been made uniform with the help of GST which has included central excise, VAT, service tax and other local levies helping in the overall growth of the GDP.
GST on home loans-
In case of home loans, it must be remembered that there is no GST or service tax which is applied to the home loan in terms of its interest component. Also, any stamp duty which is charged on the documentation of the home loan will also remain unchanged since the stamp duty is not included in the GST.
Banks along with the NBFCs continue to offer attractive deals with the help of the government’s commitment. Real estate prices offer a good price and a good time for those looking for houses to apply for home loans and buy the house of their dreams.