Govt relief for Real Estate: How it will impact home buyers?

Real estate has been badly affected by the lockdown and the Government relief for the real estate sector has been announced. On May 13 the Government extended the deadline for registration and completion of projects for six months which is a big relief to developers who were already struggling with the economic unrest due to the COVID-19 pandemic. 

At the end of the day, it’s the homebuyer who has to bear the brunt as the extension of the deadline for the completion of projects may also mean extra interest burden for homebuyers. With the extension of the RERA deadline for project completion, the homebuyers’ wait for their possession of their property will increase. This can severely impact the finances of the homebuyer as they might have to pay their home loan EMI as well as the rent during the extended period. 

Vishraam Builders, leading builders in Thrissur with 19 years of excellence in building flats & villas in Thrissur brings to you an insight into this scenario.

As such the economic slowdown, due to the nationwide lockdown imposed to restrain the spread of the virus has led to job losses and salary cuts for many industries. At present many homebuyers are struggling to pay their EMIs of their home loans. A moratorium of three months has been announced by the Reserve Bank of India (RBI) on term loans, including home loans. This only allows postponement of payment of EMIs but there is no relief on the interest part. For people who have opted for the moratorium, the interest burden will only go up as the tenure of the loan will get extended.

As the Finance Minister of India, Nirmala Sitharaman stated, the Urban Development Ministry will advise the states and regulatory authorities to extend the registration and completion date for projects suo-moto by 6 months for all registered projects expiring on or after 25th March 2020. 

The government has already announced that the TDS and TCS rates for interest, dividend, rent payments and other non-salaried payments will be reduced by 25% with effect from May 14, 2020. The TDS reduction of 25% will benefit existing homebuyers as it will leave additional money in their hands.

The CREDAI has implored the Prime Minister Narendra Modi to boost liquidity by reducing the rate of interest to 5 percent and introducing a scheme in which homebuyers need to pay only the margin money upfront and no EMIs for 24 months.

The Indian Government will soon issue an advisory to all real estate regulatory authorities and states about the special measures that need to be taken to safeguard the interest of homebuyers and other real estate industry stakeholders.

Buyer preferences have certainly changed in recent times with more people now preferring risk-free investments from leading developers like Vishraam Builders with least project execution risks. As the leading eco friendly Builders in Thrissur, Vishraam Builders have been ensuring on-time delivery of flats in Thrissur to achieve maximum customer satisfaction. Contact us today for more details!