Vikas Malpani, Co-founder of CommonFloor.com commented on a recent story featured in Deccan Herald following the Budget 2012-13.
"The Budget has given a boost to the affordable housing sector. Real estate companies developing large affordable housing projects with large fund requirements will benefit the most from the easing of external commercial borrowing (ECB) norms. “Adds Malpani, Co-founder and Head – Marketing & Communities – CommonFloor.com, “This will result in increase in price but will bring down the unaccounted transactions involved in the industry.”
This year budget has brought great hopes for those builders who were indulged in developing affordable homes.
As per the current external commercial borrowing (ECB) norms, interest rates will be charged less in case of loan taken from foreign financial institutions than domestic ones.
Also loans have been made cheaper for affordable homes' buyer by extending the interest subvention of 1% for another year on housing loans up to Rs 15 lakh, on the cost of the house which does not exceed Rs 25 lakh.
One disadvantage would be the increase in service tax from 10% to 12% this year.
CREDAI source said the TDS applied on transaction of a property will also increase the cost of buying a property.