Siliguri now needs development of Good High End Residential Housing Complexes !!- GFS Realtors
The Focus everywhere has been on Affordable housing and we see that most of the Builders and developers across the country and rushing towards Launching affordable housing..Just reading and listening on news is making everyone run the rat race. And so is Siliguri..
What everyone is missing out is the dearth of high end residential accommodation in Siliguri. Over the years Siliguri has seen the development of periphery Location in terms of Mid Segment flats. But not many of the builders have tried their hands at developing high end Residential Complex in the periphery of the City.
What is interesting is the fact that success has been achieved in the mid segment flats in places like Champasari, Salbari, Matigara, Kadamtala, Salugara, etc and now builders are planning mid segment flats also in the heart of the city like Jyoti Nagar, Punjabi Para, Bhanu Nagar, Near Nirmala School, etc.
The result has been lot of options in that Segment but very few option in the High End Flat Segment. Siliguri was mostly concentrated for high end flats about 7-8 years back and saw the development of Residential Flats Like Club Town, Model Town, Green Valley, Uttorayon, Green Vista, etc and all turned out to be out and out successful.
Currently the Focus has shifted mostly to Mid Segment Flats. Due to Lack of development of good apartments people are slowly shifting and thinking about own house development and same has led to spurt in development in locations like “uttorayon”.
What needs to be understood is that Siliguri still has a high potential in High End Apartment Segment. Any new Project coming up in that Segment, if it can be built with good Vaastu orientation than it assures to be a great Success.
SBI has yesterday made Home loans above 75 Lakhs further Cheaper. The Prices in Siliguri are still around Rs. 3000 per Sq. ft and have full potential to touch the Rs. 4000 per Sq. Ft rate in the days to come. RERA would also ensure that only serious players with good track record and ability to deliver quality would sustain. GST Promises to make things more transparent.
Its time for Builders to think on the line of developing High End Residential Complex with latest Amenities both within the Town and also in the periphery. If People in the Mid Segment can meet the challenge of staying in the periphery than the people in the High end Segment can Surely do it..
Are the Siliguri Builders ready to take the opportunity.. Definitely Yes !!!
CA. Sanjay Goyal, GFS Realtors, Siliguri.
CA. Sanjay Goyal
GST and Its Impact on Real Estate Sector
The Goods and Services Tax (GST) is beyond doubt the most revolutionary tax-related reform to be seen in India in several decades, since it will eliminate the conflicting and cascading taxation structures which have confounded several industries over the past few decades. It will most certainly have a profound effect on India’s economic prospects. Everyone if looking forward to the implementation of the Goods and Service Tax (GST). The 12% GST rate is welcomed by Industry. RERA is moving in the right direction to ensure transparency in the realty sector. GST and RERA collectively are expected to free homebuyers and investors from a lot of hassle. Above all, it will free them from the double taxation impact and thus, GST is being welcomed by the industry as well as other stakeholders. After RERA, the next thing everybody is looking forward to is the Goods and Services Tax which is Set to get implemented on 1st July 2017, GST will have an impact on the cost of various commodities.
What is more important is to see how the Builders and developers shall pass on the benefit of the Input Credit received under the GST regime. Its is feared that some builders may just charge 12% to the buyers and fail to pass on the benefit of Input Credit that they are receiving on Input material for the under-construction projects as on the proposed date of Implementation of GST, i.e 01st July, 2017.
Let us consider some important points –
GST Impact on Developer/Builders :
- Under GST, a developer can claim maximum credit and he would be paying for the finished product.
- The developer will need to pay only differential tax liability to the Government body. The cash component will cut down as products will have to be sourced from registered vendors to get input tax credits.
- GST is also expected to boost foreign investment and benefit the NRI community. With the availability of the seamless and all-inclusive channel, transacting in Real Estate will become easier for them.
- GST rates will also reduce the cost of production for the builders. Since the cost will be low, builders will be able to pass a part of the benefit to the buyers. The completion of housing project depends on a lot of allied industries like cement, steel, etc. A lowered GST rate of 18 per cent will offer a huge benefit in reducing the overall construction cost.
- While it is difficult to comment exactly on which type of projects will have more impact, as GST may vary for different project type. To avoid any confusion, the developers should study the GST impact analysis and understand the GST system and implications.
- Many experts also feel that the entire chain of real estate transactions, including sale of land should be bought under the GST.
GST Impact on home prices:
- While the Real estate sector was heavily taxed earlier, the single 12% GST rate is welcomed. Industry experts feel that the actual tax impact under GST would match, or be lower than the existing multiple indirect taxes on the sector.
- We are still waiting for more clarity on the applicability or continued exemption for Affordable Housing under the GST.
- If the profit margins of the developers get impacted, the profit margins for the buyer will increase. As the taxes will be low, the prices will automatically come down. Moreover, with GST all the other taxes, which buyers pay indirectly to the developers, will also be eliminated.
- Different segments will be impacted differently. Just for an example, for the luxury segment, since the taxes are kept higher, so an individual may have to pay a higher tax because of the higher-costing product used. At the same time, in such premium segments, there are a number of factors that care of it. So overall, it looks like there will be a fair play and impact on all the governing forces.
- With all the taxes coming down into a single consolidated tax, the double taxation practice will abolish. It will have a cascading effect on the inflated prices for end users.
A single indirect tax which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels. That said, it should be remembered that the favourable effects of this new taxation regime will become evident only within 2-3 years of its implementation.
RERA has already set the ball rolling and developers are running back and forth to understand the overall implications of the Act. The same will be the case with GST. We need to understand that India has been looking for such regulations and statutory environment for quite a long time now. The earlier we embrace these regulations, the better it will be. Everyone sooner or later has to get accustomed to the new ways of working, both in real estate and taxation. As we prepare for GST and how it will work, the reduction of multiple indirect taxes and minimization of the scope for double taxation is a reason for home buyers to cheer!!
CA. Sanjay Goyal (Chartered Accountant), Partner- M/s Anand Sanjay & Associates, SIliguri