Is Budget 2019 A Blessing For Second-Time Homebuyers In India?

By SiliconIndia   |   Tuesday, 26 March 2019, 13:27 Hrs
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Is Budget 2019 A Blessing For Second-Time Homebuyers In India?



Are you ready to play your second innings in property purchase? Investing in real estate in India can be your gateway to long-term financial security. Real estate prices gradually increase over time. To take advantage of investing in property, you can sell your property for a higher price or get some tenants to rent it out. Either way, investing in property can be your gateway to receive sure-shot gains on your investment. Now, with new reforms introduced in the interim budget 2019, your gains from the property can become even more attractive.



Here’s how budget 2019 reforms can prove to be a blessing for second-time home buyers in India:



Notional rent on second house



Earlier, owners had to pay notional rent on their second self-occupied house. The recently announced budget has exempted notional rent, if there is no outstanding loan for your second home, thereby making your property gains even more beneficial.



What is notional rent?



Here’s an example. For instance, you own an apartment and assume that the price of real estate is likely to increase over the years. You pay notional rent on the property every year. Now suppose, you own two apartments. The first apartment becomes free from notional rent. However, for the second apartment, you will have to pay income tax on the deemed lease on your property.



Exempting notional rent on the second apartment has cheered many second-time homebuyers in India. Also, if your second-owned property remains unsold, you are exempted from paying taxes for two years. Therefore, real estate shopping has now become all the more interesting.



If you are planning to buy a flat in India, you can have a look at Sumadhura Acropolis. The Sumadhura Acropolis project is located in the heart of Hyderabad. It offers one of the most luxurious apartments in town. This high-rise project provides a wide range of unmatched amenities, spacious 2-3 BHK apartments, and accessibility to business centres in and out of town. Therefore, if you are looking for apartments for sale in Hyderabad, Sumadhura Acropolis should definitely be in your list.



Tax Deduction at Source (TDS) for rental income



One of the most important concerns while earning additional income is additional taxes. Therefore, investors often become hesitant to invest in more than one property. But you can now obtain relief with the new TDS reforms on your rental income. The TDS threshold on rental income is proposed to increase from 1,80,000 to 2,40,000. This has given tax relief to all small investors.Therefore, if you are planning to invest in real estate to receive lucrative returns on your investments, you no longer have to stress over the TDS on your property income.



Apart from the provisions mentioned above, the government has also proposed to raise Long Term Capital Gains (LTCG) tax exemption limit to 2 crores. Thus, real estate investors have all the more reasons to cheer. However, it will be best if you act fast, as the easing of tax provisions on real estate is likely to raise its demand, thus affecting prices.



If you are considering to purchase property, now is the time to make a move before prices rise. To avoid your dream flat from being heavy on your pocket, look at attractive home loan from Bajaj Finserv Homes & Loans It offers home loans of up to 3.5 crore. This loan can be repaid over a 20-year tenor. Obtaining lucrative real estate deals can give you handsome long-term returns.



Summary:



Are you ready to play your second innings in property purchase? Investing in realestate in India can be your gateway to long-term financial security. Putting your money in property like Samdhura Acropolis can help you reap good returns in the future.



Real estate prices will gradually increase over the coming years. Either you can sell your property for a higher price or you can get some tenants and rent it out. Either way, investing in it can help you get sure-shot gains on your investment. Now, with new reforms introduced in the interim budget 2019, your gains from the property can become even more attractive.



The TDS threshold on your rental income is likely to increase from 1,80,000 to 2,40,000. Budget 2019 has exempted the notional rent on your second-owned property. The government has also proposed to raise Long Term Capital Gains (LTCG) tax exemption limit to 2 crore. Thus, real estate investors have all the more reasons to cheer. However, it will help if you take an action quickly, as the easing of tax provisions on real estate may stir up its demand.



With an increase in demand, the prices might also increase. If you are interested in purchasing a property, you may want to make a purchase now before prices begin to rise. Have you found a lucrative property deal, but have fallen short of funds? Bajaj Finserv Homes & Loans offers home loans of up to 3.5 crores. This loan can be repaid over a 20-year tenor. Therefore, if you are a second-time homebuyer, you can make your move now.



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