On Friday, Finance Minister Nirmala Sitharaman made an announcement in budget to increase the interest earned on home loan from Rs 2 lakh to 3.50 lakh rupees. Although this can be said as a welcome step, but the entire benefit will not be available for all customers who take home loan. There are many reasons for this.
Whats a problem
Often, in the initial years of taking home loan, the most money is to be paid as interest. There is very little money in it. In the last five years of the end of the home loan, the basic money is more and the interest is reduced. Now the Finance Minister has announced that if you have bought house of upto 45 lakh, only then you will get the benefit.
The previous rule
Earlier, the buyer was given a discount of two lakh rupees on each year’s interest under Section 24B of Income Tax Act. Now there will be an additional rebate of Rs 1.5 lakh under Section 80EEA. This means saving of Rs 3.5 lakh every year for the home buyer. But for this the price of the house should not be more than 45 lakhs.
Hope for real estate sector
Despite this, the real estate sector growth is very much expected from the government’s move. Many developers working in the sector hope that this will give enough boost to Affordable Housing. These decisions will make big savings for home buyers for the first time. This will not only accelerate the real estate sector but also the home buyers.
House taken in top seven cities
If you are thinking of buying a home in the top seven real estate markets in the country such as Mumbai MMRDA, Delhi-NCR, Bangalore, Hyderabad, Kolkata, Chennai and Pune, then try it in the outskirts of these cities. That’s because there you can get home in the limit of 45 lakhs, but chances of that are also low. Apart from this, its easy to get two or three-room flat in small towns easily.