Next year if you are intending to invest in real estate, beware, the prices are going to rise by 25%, and this rise is due to the change in the ready reckn or rates of real estate in the state.
The government has revised the rates in the ready recknor from January. The ready recknor rates are those rates fixed by the government on which the investor in real estate has pay five percent stamp duty that is applicable while registering the flat. Hence higher the rates in the ready recknor the higher is the amount of tax the investor has to pay.
According to real estate experts, the hike in the tax structure will impact the real estate market in the state, as the prices in real estate will increase by about 25%, and this will affect the common man who is already reeling under the rising prices of the real estate.
Developers and builders pay a premium to increase their FSI (floor space index) and the rate is calculated according to the ready recknor, hence they will charge the home buyers the extra amount they shell out to gain additional FSI. This move has not gone down well with the investors and builders and home owners as they feel that the hike is unrealistic.
The government on its part wants to increase its revenue and meet its targets and has enforced high taxes on the home buyers. Rates will impact the real estate market badly, as it will derail the process of stabling the real estate market.