The real estate sector was highly awaiting the Union Budget 2016-17 for multiple reasons and even though a few key initiatives like housing for all, hundred smart cities and affordable housing will provide a boost to the real estate sector, there have also been speculations about some key policy and regulation expectations that have been ignored. Having said all this – the question is how will this affect real estate investment here-on ? For a first time home-buyer or someone who is looking to invest, these key factors from the Budget make the process of home-buying slightly less taxing.
Attractive Home Loan Rates
One of the most important factors that determine the cost of your loan is the interest rate. Higher the interest rate, higher is your cost of long-term property purchase. After a couple of rate cuts by RBI, the home loan rates have come down in a long time. 2016 can turn out to be a good year after all.
Home loan finance not only allows you to realize your dream of owning a beautiful home, they also help you gain attractive tax benefits. The interest on your Home Loan EMIs qualify for deduction. If you use the house for your own residence, then you can claim upto Rs. 2 lakh for deduction. In case of a rented property, you can claim the entire interest amount for deduction. The principal component of your Home Loan is available for deduction under the Section 80C of the Income Tax act. You can claim upto a maximum of Rs. 1.5 Lakhs under this provision.
Real Estate Investment can yield one of the best long-term returns in a fast-developing country like India. With the fast appreciation in land prices, accompanied with growth in infrastructure, purchasing a house can be the next big investment.
Riding on the infrastructure growth story, lot of attractive projects are coming up. With the advancement in design and technology, houses are no longer seen as a place to board and lodge. Homes have become a statement, a symbol, and a lifestyle. The pleasure of having all your amenities like swimming pool, gym, and play area etc.in one’s own house has become the norm. There is a growing demand for aesthetically built ultra-smart, living spaces that are technologically sound a well. Elysium Properties offers a multitude of such projects across prime locations in Coimbatore as well as Chennai. Whatever your preference – modern, contemporary, classic or eclectic, Elysium properties offers a plethora of options. Visit www.elysium.in for more information on ongoing and upcoming projects.
Homes provide the opportunity to earn good rentals to support your primary income over a long period of time. The long-term Return on Investment can be in terms of capital appreciation on property sale as well as the regular capital inflow from rent. It also helps you create assets for your family in the long run.