By Accommodation Times (www.accommodationtimes.com)
• Realty picture: Sales and registrations down by 30%
• Home buyers hit hard with multiple taxations, says MCHI President
Mumbai: The Maharashtra Chamber of Housing Industry (MCHI) has thanked the Maharashtra Chief Minister for his assurance that the Ready Reckoner rates for real estate industry may not be increased in the New Year.
Reckoner (RR) rates form basis for imposing stamp duty and registration charges for new sale deeds.
MCHI President Mr Paras Gundecha said “We are also thankful to the various legislators who took up the issue of possible hike in RR rates with the government.”
An MCHI delegation recently met Maharashtra Revenue Minister Mr. Balasaheb Thorat to present the case on RR rates On the one hand the real estate sales have been falling, while on the other the consumer if burdened with high rates of interest on housing loans, inflation on all counts, service tax, VAT labour cess and increasing property tax, Mr Gundecha pointed out.
The existing tax structure, therefore, is not at all encouraging for home buyers. Even globally the sale of real estate property has been very low during the year 2011 due to the prevailing negative sentiment. In Maharashtra, too, this trend has resulted in a fall of stamp duty revenue by 30%.
Moreover, developers across have been offering discounts to customers to help them realize their dreams of owning homes.
The industry which supports 200 other industries is under tremendous pressure. The series of rate hikes by RBI have pushed up the cost of funding for buyers as well as developers. The sales have been badly impacted as many prospective buyers have become fence sitters, being unable to take a firm decision to buy a house, he pointed out.
The continuation of the negative sentiment will also hamper the government’s dream of creating ‘Affordable Housing’.