If you’ve been following the latest news on stamp duty in Maharashtra 2020, you would know that home buyers in major cities like Mumbai, Pune, Nagpur and Nashik are in for some great news. As per the stamp duty in Maharashtra 2020 notification of the State Government, there will be a major stamp duty cut that promises to boost home buying sentiments. Lower interest rates on home loans (hovering at decade-lows in the current scenario), special festive offers and discounts from developers, reasonable property tax rates and higher interest in the affordable and mid-range categories should lift the realty sector in the festive season as per experts.
Stamp duty and registration charges in Maharashtra 2020- How will the rates impact you?
Affordable home and mid-range homebuyers stand to benefit considerably from the 3% cut on property registration for stamp duty between 1st September, 2020 and 31st December, 2020. This means that someone buying a home priced at Rs. 50 lakh in this period will benefit from 3% lower Maharashtra stamp duty rates, giving him/her savings of Rs. 1.5 lakh. This will increase to a whopping Rs. 3 lakh for homes which are priced at Rs. 1 crore. Between January and March, 2021, stamp duty on real estate sector will be reduced by 2%.
A reduction of 2-3% matters a lot in a costly city like Mumbai or even Pune in relation to average ticket sizes of apartments. Stamp duty stood at 5-6% earlier across Maharashtra and the new reduction should be a game-changer according to experts.
Industry players welcome affordable property registration with open arms
Real estate developers, industry players and real estate firms have all welcomed this move of the Maharashtra State Government. Stamp duty basically means the levy paid to the registrar and is a fixed percentage that is charged on the minimum property price (called the circle rate) or transaction value whichever turns out to be higher. Real estate experts call this move highly beneficial for the realty sector. Founder at India’s leading property brokerage platform Square Yards, Tanuj Shori, has rightly pointed out how such incentives are being rolled out globally for ushering in a revival of demand across the sector.
Shori has highlighted how the United Kingdom (UK) has announced a stamp duty waiver for 8 months while Australia, according to him, has announced its housing subsidy of a generous $25,000 as well. Shori has lauded the Government of Maharashtra for this visionary decision while stating that this will boost the realty sector immensely throughout the State. Other experts feel that in tandem with more affordable stamp duty and property registration, other incentives like tax exemptions on interest payments may be required for reviving the sector.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.