We met with Mr Anil Nair, Chairman, Builder Association of India, IPP CREDAI and also MD Pioneer Infrastructure. We asked him for his views and guidence on how a prospective home buyer should approach buying to get maximum benefits.
Q 1. What is PMAY & how does it benefit a Home buyer?
PMAY is Pradhan Mantri Awas Yojana, launched in June 2015 for promoting affordable housing in the Country. Government of India has targeted 2cr affordable homes by 2022, in this context they are giving upfront subsidy upto 2.67 lac for eligible persons. Subsidy are available for LIG, MIG (I) and MIG-(II) category people.
|Category||Annual Household Income||Unit Carpet Area||Reduction in EMI||Overall Savings|
|EWS||Upto 3lac||30 sq mtr||2,500/-||More than 6 lac|
|LIG||3-6lac||60 sq mtr||2,500/-||More than 6 lac|
|MIG-I||6-12 lac||Upto 160 sq mtr||2,500/-||More than 5.4 lac|
|MIG-II||12-18 lac||Upto 200 sq mtr||2,500/-||More than 5.3 lac|
These are tables for a term of 20 years at 10% annual interest.
Subsidy is through interest subsidy which is credited upfront to the loan account of beneficiaries resulting in reduced EMI.
But Subsidy for MIG-I and MIG-II is available only till 31.03.2020. So buyers need to decide quickly to avail the benefit. What most Home buyers are not calculating is the effect of 2.67 Lac on Their Capital and saving in Interest. This subsidy will save them 2.67 Lac PLUS Interest saving over 15 years, which itself is more than 5.00 Lac .. So the Net benefit that a buyer gets is 6.67 Lac !
- Why should a buyer select Wardha Road ?
In Nagpur wardha road has emerged as the main Growth Center of Central India. Properties on Wardha road have appreciated the most in Recent years. Also it has
- Growth potential
- Proximity to major hub
- Proximity to metro station
- Easy connectivity to City with Multiple Flyovers
- Nearest to Airport
- There is GST Apprehension in customer minds. Please clarify.
- As of now GST on our new schemes is only 1% since it’s a affordable housing
this is a huge benefit of 11%, Which is a substantial benefit that buys need to take into account. GST as regular Project is 5%.
- What Income Tax Benefit are available?
A Buyer Can get Income tax Benefit on First Home as well as Second Home. For the First time buyer home loan Interest upto Rs 2 Lac is allowed as deduction. If you buy a second home and give it on rent, you are allowed to get upto Rs 1.5 lac deduction on Home loan interest. This is a big incentive to invest in 2nd Home as well. You will need to understand the relevant sections like 80C, 80EE ad 80EEA to arrive at maximum benefits you can take. In addition Interest rates on Housing are the lowest in the this decade. So if you plan & choose wisely, you will save tax as well as get capital appreciation by investing now.
- Why should I buy a Home now ?
If you carefully look at the current situation, property prices are lowest but all other assets are at their highest level. e.g. Gold .. is at 42,000 , Sensex is at 41,000, US Dollar is at 72, So, the next cycle will undoubtedly take real estate prices far higher. You wont get to buy property at the rates that are prevailing today. So make the most of it , and don’t delay your decision.
- Why should a buyer invest in Nagpur?
When The Other metro cities Real estate market has come down a lot, Nagpur has Prospered and Invested capital is protected. Nagpur is the most livable and progressive city today and infrastructure effectiveness is ahead of time.
- Why Should I buy my Home from Pioneer:
Pioneer has been in the Realty space since 1996 . We have Delivered Homes to over 3500 families and constructed over 11.00 lac Sq.feet in Nagpur alone. Our focus has been Quality construction, Transparent dealings and full support to our esteemed customers.
We are and ISO 9001 company & We recently won awards for
- a) Brand Leadership Award – 2018
- b) PMAY- Highest Subsidy received by our Customers, Awarded by HDFC
- c) Several other awards.
We have both Under-construction and Ready Possession affordable flat options.
Our experienced team makes it easy to not only get best values for your money, but also helps with Loan Documentation, faster PMAY Approvals and also with all formalities needed.
- What are your Current project and investment options with Pioneer
We have Ready Possession flats in Tamarind Court and Chinchbhuvan Wardha road. We also have an Under Construction Scheme “Pioneer Orchid” with 2 BHK and Affordable Housing. We will also be coming up with PLOTs for Our clients in a few weeks.
To Conclude : a Home buyer must remember that the PMAY benefit for MIG-I and MIG-II are available only upto 31st march 2020. So, If you are looking for your own house, you need to hurry up and decide fast. Our team is available for guidance. You can call us on Suhas – 77740 98079, Preeti 84118 21199 Or Visit website: http://www.pioneernagpur.com/ or http://www.pioneernagpur.com/pioneer-orchid-2-bhk/
Anil Nair, Managing Director Pioneer, Nagpur