On 26th August, the state government of Maharashtra announced the reduction of stamp duty on real estate. This move, made by the government to revive the real estate sector after being battered during the pandemic, has been welcomed by one and all.
As per the official sources, this temporary reduction will be carried out in two phases:
- There will be 3% reduction in stamp duty between Sept. 1st and December 31st, 2020
- And, a 2% reduction will be levied, between Jan 1st and March 31st 2021
The Demand for Real Estate Will Go Up
The COVID-19 pandemic has had many-fold impacts on the real-estate sector. On one hand, it has made people realize the importance of owning their own homes. On the other hand, the government has realized the immediate need to boost the real estate sector and the economy in its entirety. With the rate of interest on home loans hitting a 15 year low and reduction in stamp duty has made home buyers get off the fence and go shopping for their dream homes. Thus, it is anticipated, that the demand for real estate will see a spike in the months to come, especially in major real estate markets like: Mumbai and Mumbai Metropolitan Region (MMR).
Now, how is the reduction in stamp duty going to impact you as a home buyer? Let’s find out!
Better Affordability for Home Buyers
The reduction in stamp duty will have a favorable impact on home buyers. Arvind Subramanian, MD & CEO of Mahindra Lifespaces, has described this move by the government as ‘commendable’. According to him, this move will improve affordability, especially for first time home buyers. He was quoted saying, “It will aid in accelerating purchase decisions, while driving demand in the affordable and mid-premium segments. This is an opportune time for homebuyers who have put off decision making due to the pandemic. . .” In a sector like real estate, a 2-3% saving is extremely significant. It will directly lead to a cut in the overall cost of acquisition.
The Extent on Cost Reduction for Home Buyers
Depending on the location of the apartment, a 3BHK apartment in Mumbai can easily range between INR 3 – 8 Crores. Now, apart from the price of the apartment, there are other indirect expenses that a home buyer needs to incur. These indirect expenses can significantly increase the cost of acquisition for a home buyer. One such example is stamp duty. But, with the reduction in stamp duty, a home buyer can save upwards of 15 lakhs on a home worth INR 3 crore. And, this is no small saving. In the wake of this announcement by the Maharashtra state government, now is the best time for aspiring home buyers to make purchases. Check out our Courtyard Project in Thane. Now, you can save big on the ready to move in apartments.
We as Indians have inherently felt the need to own the roof above our head. This COVID-19 situation has only affirmed and hastened this belief. You need a safe space to live in for you and your loved ones! How would you like to live in the most premium and healthy neighborhood in Thane? Would you like to wake up to breathtaking views of the Yeoor Hills, bask in the natural sunlight percolating through your apartment, unfurl yourself in ample living space and be surrounded by state-of-the-art amenities? We can make that happen for you at Courtyard, Thane West!
At Narang Realty, we believe that every customer deserves to own an optimally designed home with abundant sunlight and cross ventilation with minimum wastage of space. This ideology of ours makes our ready-to-move-in apartments a great home for you and your family. To take a virtual tour visit our website today!