Impact of Stamp Duty Reduction on Genuine Home Buyers
It has been in the news recently that a reduction in stamp duty percentage will be applied. The Maharashtra Government has announced that the present charges of 5% will be reduced to 2% until December, 2020 after which they will be up by 1%, steady at 3% from January to March, 2021. Considering the image that the property market in Mumbai holds, it is extremely encouraging for the government to announce the slashed stamp duty rates. With the reduction in charges, the way in which genuine home buyers will look at buying an apartment for sale in Mumbai will change to a large extent. The announcement will have an impact on the property market in an unprecedented manner, as expected by experts.
One of the most important effects that the cost reduction move will have is that the property market will be able to see better sales. Even though the reduction in stamp duty charges is temporary it will definitely push more people to make an investment. The fact that the reduction is temporary may also inspire investors to make an investment at the earliest, making the most of the discounted charges. The reduction is a nudge in the right direction for those that want to make a wise and fruitful real estate investment. The reduction is likely to be more beneficial and encouraging for home buyers due to the stability of prices of the flats for sale in Mumbai. Since there has been no increase in the real estate prices in the last one year, buyers get to buy property at very affordable rates.
Expecting a positive outcome from the reduction in stamp duty costs, it can also be estimated that greater number of registrations can help in bringing the economy back on its feet. With the eventual reduction in property costs, there will be more number of registrations and that would translate to more money getting pumped into the state. The reduction in charges for stamp duty can be considered as one of the most important first steps towards turning back the economy from the slump that the COVID-19 pandemic created. According to experts, those that have been waiting too long to invest money in their own flat for sale in Mumbai will finally be able to take the plunge and invest in a property of their choice without having to wait any longer.
The move to reduce charges will also infuse life into the real estate industry itself which needs the push in a positive direction. Experts are of the belief that ready to move flats in Mumbai will experience high demand because homes with occupation certification can be bought without having to pay GST. The cut in the tax in combination with a reduction in stamp duty and stable real estate prices may be the perfect mix for home buyers that dream to have their own house in Mumbai. This could very well be a new dawn for the genuine home buyers in Maharashtra.