First Time Home Buyers: Few Reasons To Make Your Purchase Right Away

The government on a more recent basis has increased the carpet area or thus the size of the home to be accommodated in the Centre's initiative to provide interest subsidy to push affordable housing. Also as the larger inventory and other concerns has pushed prices down and led to price correction by a huge 15-20%, individuals on the look out to buy homes for them can make the best deal right away.

First Time Home Buyers: Few Reasons To Make Your Purchase Right Away

1. Carpet area increased for eligibility under the CLSS scheme: For the middle income group class, the carpet area for eligibility to avail interest subsidy has been increased to 160 square meters and 200 square meters in case of MIG II class. So, with this for now a larger house you can avail interest rate subsidy.

Nonetheless there are some terms attached to it such as the overall cost of such a house being opted for purchase should not exceed Rs. 40 lakhs.

Under the CLSS scheme, the Centre in its move to push "affordable housing for all by 2022"is providing interest rate subsidy to the tune of 4% of Rs. 9 lakh in case of homebuyers who fall in the MIG I category with annual income of Rs. 6-12 lakh and % interest subsidy for Rs 12 lakh in the case of MIG-II home buyers (annual income of Rs 12 lakh to 18 lakh).

2. GST Advantage: If you are among those purchasing home under the credit linked subsidy scheme, the government has yet another eased purchase for you with the reduction of GST rates to 8% from 12% earlier. Notably, the rebate is allowed to individuals whose family income is not in excess of Rs. 18 lakh in a year. This in turn reduces the cost for the buyer by as much as Rs. 2.7 lakh.

The GST advantage is also extended in case of low-housing projects that are accorded infrastructure status wherein the maximum carpet area is 646 square feet. Here in the clause of first time home buyer is not applicable.

3. Insolvency and bankruptcy code which now makes homebuyers as financial creditors: Another bigger initiative has provided more power to potential homebuyers, as in case of default by the developer or builder they are not rendered helpless as in the previous case and can now appoint a resolution personnel to get all their dues.

4. RERA implementation: Though Real Estate Regulation & Development Act (RERA) has not been all through successful and is still to take a bigger role in some of the states, its implementation has brought to light the grey areas in the system. The inventory is now being channelized and for it already there is seen a big price correction and this is especially true in case of luxury home segments.

Also, the much dreaded concern of home buyers is now being looked upon seriously i.e. developers are now more cautious to meet time deadlines. At the same consumer protection initiative has come to the forefront from the previous backseat.

Women buyers in some of the states are being given a push through rebates in stamp duty charges etc.

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