Stamp duty from 5% to 2%: here’s what that means for the market
Finally some good news for the real estate industry! The government is set to announce to temporarily reduce the stamp duty charges on properties from 5% to 2% till December 31st and to 3% from January 1st to March 31st 2021. The rules is set to come into effect from September 1st. But the big question everyone is asking is: Will this help?
There seems to be a consensus around the real estate market over the past two months - the demand for real estate is still there, however, clients have been expecting a “Covid19 discount”. Since real estate prices had been going down for the past couple of years, most developers can not afford to negotiate more than 5-7% of the current prices. This is where the government has stepped in. By reducing the stamp duty by 3%, the government has offered buyers a great opportunity to avail of the “Covid19 discount” which should attract some more movement in the space. A lot of buyers who have been on the fence about purchasing a property can now proceed and make a decision knowing that by deciding now they could save 3% directly in taxation. A person buying a 10 cr property would effectively be saving around 30 lacs in taxation.
Who should be excited by this news?
Actual users: if you are looking to buy a property to accommodate a growing family you should view this as the ideal time to buy and actively look for good deals in the market. We are seeing a lot of good property deals available in the luxury segment at the moment. Low real estate prices along with the stamp duty reduction make this an ideal time to plan to buy a house that you can use for the next 10-15 years.
Developers: a lot of developers have been struggling with sales and this move is poised to provide them with some relief. The burden of the “Covid19 discount” is now being shared with government support.
With the festivities of Navratri, Dussehra and Diwali just around the corner, now seems to be the ideal time to start scouting the market and finding yourself a deal that you’re happy with.
Over the past few months we have been helping our clients find good property deals around the market. If you are planning to buy a property or are confused about what you should do, feel free to reach out to our property experts and let them work to find you your dream home!
About qube: We are a real estate consultancy based in Bandra West, Mumbai. Our goal is to provide you with a professional experience while finding you a property that perfectly matches your requirements. During Covid19, we are taking as many steps as possible to ensure your safety and are using technology as much as possible to make it easier to shortlist the property of your choice. Please reach out to us if you're looking to buy, lease or sell your property. Click here to WhatsApp Us directly or call us on +919152038480.