Its Time to buy flat at your conditions. Prakash Deshmukh Mumbai

Hello Indians - नमस्कार
Hope every one get it's own shelter by 2022 as proposed by Modi government. What govt is doing to fulfill its commitment is the question

PMIThe Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for launch of “Housing for All by 2022” aimed for urban areas with following components/options to States/Union Territories and cities:-

a) Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource;

b) Promotion of affordable housing for weaker section through credit linked subsidy;

c) Affordable housing in partnership with Public & Private sectors and

d) Subsidy for beneficiary-led individual house construction or enhancement.

Central grant of Rs. one lakh per house, on an average, will be available under the slum rehabilitation programme. A State Government would have flexibility in deploying this slum rehabilitation grant to any slum rehabilitation project taken for development using land as a resource for providing houses to slum dwellers. Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on NPV basis would be about Rs.2.3 lakh per house for both the categories. Central assistance at the rate of Rs.1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. State Government or their para statals like Housing Boards can take up project of affordable housing to avail the Central Government grant.

The scheme will be implemented as a Centrally Sponsored Scheme except the credit linked subsidy component, which will be implemented as a Central Sector Scheme. The Mission also prescribes certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing. Houses constructed under the mission would be allotted in the name of the female head of the households or in the joint name of the male head of the household and his wife.

The scheme will cover the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and it will be implemented in three phases as follows, viz. Phase-I (April 2015 – March 2017) to cover 100 Cities to be selected from States/UTs as per their willingness; Phase – II (April 2017 – March 2019) to cover additional 200 Cities and Phase-III (April 2019 – March 2022) to cover all other remaining Cities. However, there will be flexibility in covering number of cities in various phases and inclusion of additional cities may be considered by the Ministry of Housing & Urban Poverty Alleviation in case there is demand from States and cities and have capacity to include them in earlier phases. Credit linked subsidy component of the scheme would be implemented across the country in all statutory towns from the very beginning.

So these schemes are not for Metro cities except schemes for slum area. 

Now the question is why builders are providing various discounts in metros ? yes there are many builders providing discounts in metros where they have grabbed land and started projects based on their then capacity which was very good before demonetisation. Because they used to get free money for such a project, land was bought at very low rates. Now this easy money is stopped coming in such projects and inventory is increased. As per the study there are about 3-4 lakhs flats empty in Mumbai alone, Pune around 2 lakhs. Same situation in all capitals of every state. Now a days builder using one trick to sale the flats, usually they don't sale flats directly but through some agency, agent so that they are committed directly to the customers. Later on they can deny any demad if customer ask because they have not committed directly to you. whatever commitment is given is by agent or agency. So kindly get the quotation directly from the builder either on their letter head or from official email I'd (not gmail or yahoo mail) so that you have all details what they are charging and what they are supposed to provide. This is very necessary for RERA, a central govt law for housing where builders can punished if default on commitment. So due to very high inventory and no flow of easy money they have to either reduce rates or provide various discounts freebees etc. So start demanding and get fulfill. Do not hurry in buying homes. If we all do this I am sure the rates will come down at least by 20-25%. Secondly ask about loading ? what is living carpet you are getting excluding balcony, terraces, dry balcony etc. Now a days there is loading of about 70% in every high rise building. (scalable - carpet)/ carpet is the formula of loading. Avoid huge complexes as they are having their own problems now and increasing. Municipal corporation charge us property tax based on facilities they are supposed to provide like swimming pool, gym, public garden, hosputals etc but now thus responsibility they have diverted to big complexes without reducing property tax. So this is additional burden transferred to citizens in metros and big cities. So keep demanding and enjoy the buying of your sweet home.

Many Thanks 

Prakash Deshmukh

Mumbai