Homes sales going down in almost much country the national. Housing Bank residential index Residex has shown surprisingly an increase in home prices in the October-December 2012quarter across the 18 cities. R.k.Verma, NHB says will start covering six more cities from janaury-March 2013qaurter.Based n these 26cities we will asses if we could construct a national property price index. Adding further he said the rise in in put costs for developers and sustained inflation is reflecting on the increase in prices in 18 cities. Prices have also been positively impacted by improved infrastructure development in many cities which is also pushing investor demand. The sales of home have been under pressure because over the last few quarters as the overall sentiment in the economy has been slow and interest rates have been high forcing home buyers to postpone their buying decisions.
Survey Predicts labour shortage to increase by 65%
According to a survey done on the labour force in the real estate industry as the work force is moving from the traditional construction and alsoreal estate sector to service industry like banking, telecom, IT and ITES which will lead to a shortage of labour to go up by 65% by the next some years with more work forces moving from traditional brick and mortar industry like the construction and real estate sectors to service industry.
Advancement in technology have helped business by making it faster and cost effective the realty industry too is waking up to benefits offered by tech nology and is looking atit as one the solutions to tackle the labour crisis in the market. Citing the reason for the labour shortage knight frank India said, for the last few years the shortage of skilled manpower is on the rise. With the urbanizationof rural areas many projects are taking off in the non-metros destinations. Hence the migration has slowed down. With opportunities available closer to home the preference is to stay put. Also over the years many engineers have preferred to take up cushy desk jobs over grueling site jobs. Many engineers have excelled in finance and other glamorous jobs. Many feel that government schemes like the national Rural Employment Guarantee Act (NREGA) are also contributing to the shortage of labour. Support from the government is crucial for the training of skilled laborers. They should promote and support recruiting training institues that train laborers with specific skills.Bringing technology to the real estate industry is a very expensive proposal. The government should lower the costs involved in hiring machines and promote their use in industry. It involves discipline and planning.
Home Loans – know the tax benefits
. 1. Home loan borrowers are entitled to tax benefits under section 80c and section 24 of the income tax Act. These can be claimed by the property”s owner.
2. in the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
3. A.co-owner, who is not a co-borrower, is not entitled to ax benefits. Similaly, aco-owner, cannot claim benefits.
4. Housing companies usually require all co-owners to be join borrowers to a home loan. Loan providers specify who can be a joint borrower for a home loan.
5. The tax benefit is shared by each joint owner in proportion to his share for each
Co-borrower to claim tax benefits.
6. The certificate issued by the housing loan company, showing the split between
Principal and interest for the EMIspaid, is required fr claiming tax benefits. (Republished with Amendment)