Blog

Stamp Duty Reduction

Reduced Stamp Duty in Maharashtra & More Reasons to Invest in Property in 2020

Global economies are grappling with an economic fall-out in the wake of COVID – 19 pandemic. While living with the pandemic seems to be the new normal, every industry is adopting ways to get back as close to pre-COVID times as possible. Property sales across India had adopted a slow pace after the coronavirus outbreak. It has immensely hurt residential sales across the country. Pune real estate scene, with a host of unsold apartments, 1 & 2 BHK flats in Pune are awaiting buyers.

 

To boost real estate sales the Maharashtra Government has cut stamp duty for 7 months, up till March 2021. 

 

How does it impact home buying?

 

Homebuyers can enjoy a reduction of 3% in the stamp duty in Maharashtra state on property registration till December 31, 2020. This reduction in property purchase has been done in two slabs. From September 1, 2020, to December 31, 2020, it will be a 3% reduction and from January 1, 2021, to March 31, 2021, this reduction will be 2% in the stamp duty on property purchases.

 

So for a flat with a cost of 1 crore earlier one had to pay a duty of 5 lakhs now it will be Rs 2 lakhs (the period between September to December 2020) and 3 lakhs from January 2021 to March 2021. 

 

It is not just the stamp duty in Maharashtra that is reduced, there are a couple of other factors too that augur well for property buying. Let us explore them.

 

Why is this the Golden Time to invest in property in 2020?

 

  • Cheaper EMIs / Lower Lending rates

Banks are offering home loans at low-interest rates. Cheaper loan rates from banks can help borrowers to either reduce the equated monthly installments (EMIs) or get better eligibility. 

This means if earlier you could take a loan for Rs X amount, now with a lower lending rate, you could take X+ amount (a few lakhs up). So whatever money you may have to block for interiors and other stuff it would literally be free now. 

 

  • Better deals from builders

Several developers are sitting on large housing inventories, (ready-to-move-in houses) due to subdued demand and slow economic activity. This makes a great case for aspiring first home buyers to get the best deals & offers. You could even get good discounts with the developer.  So if you are wary of investing in an under-construction project, you may pick a ready to move at home and save on your rentals too. In case you are not buying a house for end-use, you may even rent it out and make a few bucks with rental income. It is an opportune time for property investment. Many developers are offering schemes wherein you book a flat now and pay later.

 

  • Festive Offers

Ganesh Chaturthi marks the commencement of the festive season in India. Most people like to buy homes during the auspicious times of Navratri and Diwali. With such offers and concessions, it is an opportune time for investment.

  • E Registration

Some states are now mulling the introduction of the e-registration of property documents, thereby completing the entire value chain. This will not hinder work and will fulfill the social distancing norms too.

  • Real Estate is the Best Investment Bet  

With a volatile stock market, exorbitant Gold rates, low rates in FDs, real estate seems to be the only safe haven for individuals. Not only are the lending rates low, but developers are also offering attractive payment options, various schemes, and freebies to promote their projects. 

 

 

Reduction in stamp duty in Maharashtra coupled with other factors makes it the best time to invest/buy real estate.  Having gone through the piece you must now be more than willing to take a plunge now. All the best!

Leave a Comment