The COVID-19 pandemic has introduced us to many unforeseen changes. The importance of one’s ‘own home’ has come into play – significant contributors driving this change: the half-year lockdown & the new work-from-home norm. However, with businesses plummeting & the economy reporting an all-time negative GDP, is it prudent to buy a property in Maharashtra?
The Government of Maharashtra’s recent decision will answer this concern in the form of the following three benefits:
Starting September 1, 2020, the existing 5% stamp duty (in urban areas) has been reduced to 2% until December 31, 2020. Post which, the duty rises to 3% from January 1 – March 31, 2021. This is a significant incentive for homebuyers to capitalize upon this temporary but highly lucrative opportunity.
Not convinced? Let’s take some statistics here:
An ideal home in Maharashtra is available at exorbitant prices.
Let’s take Rs 1 Crore in our example. Earlier, the stamp duty & registration charges would have been Rs 5 Lakh & Rs30,000respectively. With the amendment, the liability reduces to Rs 2 Lakh & Rs 30,000 until 2020 & Rs 3 Lakh & Rs 30,000 until 2021 first quarter.
Result? Savings of Rs 3 Lakh & 2 Lakh (respectively)!
Extending on this principle, the stamp duty has been slashed from 4% to 1% in rural areas until December 2020, which rises to 2% until March 2021.
Benefits for Home-Loan Seekers
In an attempt to revive activity in the real estate sector, there have been some interesting changes brought upon by RBI & the government. The reduced repo (4%), lower interests on home loans, and credit-linked subsidies qualified under Pradhan Mantri Awas Yojana (PMAY) serve as promising signals for prospective buyers.
Moreover, with the reduced stamp rates, a loan seeker can also leverage their status under Section 80C of the Income Tax Act, 1961. The maximum value eligible for deduction stands at Rs 1.5 Lakh for the Principal & Rs 2 Lakh on the interest accrued.
There is no replacement for the emotional sentiments attached to residing at one’s own home. After all, if this pandemic has taught us anything, it has been the greater value that a home can leverage upon its owner – both financially & emotionally. Don’t sit on your inhibitions. Make your move, today.