No Affordable Houses Available At 8-15 Lakhs In India

BANGALORE: Buying a property remains a risky task, whereas the housing business is in a difficult situation between the poor financing options from banks and the greedy investors. The building industry is fighting its space with the need to mature into an industry, reports Yahoo finance.

The banking sector and the government’s approach to the builder segment has been one of treating it as a trader’s account with no status of industry offered to builders although they are supplementing a critical function of offering housing as infrastructure in cities that are rapidly urbanizing.

A mid-size builder buys about 180 to 200 different products from vendors ranging from gross materials like cement and steel to finer housing accessories like water faucets, fixtures, glass and many more.

The taxation rate at the universe level for a builder cascades at a shocking 42 per cent on the top line revenue starting from direct taxes for land acquisition on to secondary and tertiary cascades of taxes paid down the line in the supply chain.

The banking sector has not viewed the builder segment from about 2005. Until the middle of the last decade a builder could secure term loans for a housing project, that he could offer a proposal  to the banker stating the cost of the land included and the sum of money from any bank for the purchasing of the land as well as the execution of the project in terms of project costs.

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