Double dhamaka: Rs 3 lakh I-T relief on home loan likely

Sorry I have not been able to post regularly on account of work-related constraints, but this deserves attention…

In fact this piece of information is bound to rise excitement within the realty sector.

In a latest move to boost the sector, the urban development ministry has plans to double the income tax relief on home loan interest.

At the moment the slab is set at Rs 1.5 lakh per year, but chances are that in the new budget the government might just hike it up to Rs 3 lahks.

This apart, the ministry also has a proposal for raising the limit for exemption on repayment of principal amount to Rs 3 lakh – triple of the existing limit.

The existing exemption limit is rather inadequate at a time when a two-bedroom apartment in the metro cities costs anything between Rs 25 lakh and Rs 35 lakh.

Tech Mahindra takes over Satyam

Finally, 48,000 employees and 300,000 shareholders of Satyam Computer Services can heave a sigh of relief.

The company’s government-appointed board today approved Tech Mahindra’s bid to acquire 31 per cent stake in Satyam for Rs.1,756 crore ($351 million) at Rs.58 per share.

Soon, Tech Mahindra, which is acquiring the software major through its subsidiary Venturbay Consultants, will make an open offer for another 20 per cent stake at Rs.58 per share for the controlling stake (51 per cent).

DLF launches major residential project in Delhi

You would say that I am fickle minded, for today’s post in a way contradicts my last post – Real Estate prices are really…really down.

Most of you would wonder, when real estate prices are plummeting by the day why would the builders still invest in housing projects.

Ironically, the recession hasn’t stopped big builders from doing what they are best at – making residential buildings.

The latest to join the bandwagon is DLF. The realty major has launched a massive residential project in west Delhi.

Located on Shivaji Marg, the project will consist of 1,400 flats. The 18-floor structure, which will house 2BHK and 3BHK apartments, has been priced between Rs 5,000-6,000 per square feet.

To lure the buyers in the time of recession, the company also plans to offer a discount of Rs 500 per sq. ft for buyers who pay their instalment on time.

The size of the apartments will vary from 1,200 square feet to 1,525 square feet.

Now, now…isn’t it a rather ambitious project considering that the company plans to sell flats in the range of Rs 60-90 lakhs?

Real Estate prices are really…really down

In case you are still thinking that Real Estate prices are not as low as the market pundits predict then here’s what — A 2BHK flat that was priced somewhere around Rs 23 lakhs four months ago is now priced at Rs 21 lakhs.

Isn’t it an eye opener, certainly it is.

How do I know? Read on and you will know too…

Last week my friend Abhishek who works for a reputed media company came visiting and he told me that he was still keen on buying a house.

Incidentally, he wanted to buy one three months ago in Indirapurm and had also met a builder for the purpose. At that time the builder had quoted a price of around 24 lakhs for a 2BHK flat and he would have bought it but for the paucity funds.

Around, the same time I had told him to check out Ramprastha (again in Ghaziabad), only because it is better connected to Delhi via busses and other means of transport and the price range is almost the same as Indirapuram.

That was then.

Now when he visited me, he told me that he had met a property dealer in Ramprastha and actually seen a couple of flats before coming to my place. And the fall was actually shocking.

The property dealer had told him “whatever was prices at around Rs 23 lakhs then could be easily bought for Rs 21 lakhs and if you bargain you could ask for a further reduction in prices.”

Now, that’s what I call a steal.