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Relief For Realty And The Housing Sectors Likely in 2nd Package: NathBy ugesh sarkar, Section Real Estate
The second package to stimulate the economy, expected in the next few days, is likely to give monetary and fiscal relief to realty and the housing sectors, Commerce and Industry minister Kamal Nath said.
Senior ministers have been holding discussions in the last few days on finalisation of the package with key inputs from the Committee of Secretaries. When asked whether the government can announce further cuts in duties, Nath said, "We are looking at that also," Nath said. The government had announced four per cent across the board cut in excise duties in the package announced on December 7. "We should do it in next two-three days," Nath told newsmen when asked how soon the second package would be unveiled. Besides cut in excise duty, the last package involved raising the public expenditure by Rs 20,000 crore. Click On "Full Story" For More...
The need for more government measures is being felt in the wake of industrial growth slipping into the negative zone in October, the first time in 15-years.
In addition to the fiscal stimulus, the Reserve Bank through a slew of measures reduced key ratios and policy rates releasing about Rs 3,00,000 crore of liquidity into the system and signaling soft interest rate regime. The Mid-Year Economic Review tabled in Parliament yesterday projected slowdown in the economic growth rate to 7 per cent from 9 per cent in the previous fiscal. LIC Housing to launch reverse mortgage after insurance tie-up Home finance company, LIC Housing Finance (LICHF), is awaiting the National Housing Bank's tie-up with insurance companies before launching its reverse mortgage scheme for senior citizens. "We have the product but we are waiting for certain clarifications on tax issues and the insurance tie-up. The taxation issue has been cleared and once the insurance tie-up is done, we will launch the product," said R R Nair, director and chief executive, LIC Housing Finance. The National Housing Bank (NHB) is tying-up with insurance companies, including LIC, for restructuring of reverse mortgage. Reverse mortgage is a financial product that enables senior citizens (60-plus) who own a house to mortgage their property with a lender and convert a part of the home equity into tax-free income without having to sell the house. "We do not have any date fixed for launching as we do not know how much time this (insurance) tie-up will take," Nair said, adding there was no upper limit in reverse mortgage as it was the percentage of property prices. Nair said the percentage depends on discounting and age of the owner (life-expectancy), amongst others. Reverse mortgage would prove very beneficial for those senior citizens residing in India but whose children were settled abroad, Nair said. "For an NRI, spending a few lakhs on a property which can help his parents live in comfort and with which they could also generate income was not a big thing," Nair added. Source: Realty PlusRelief for realty sector likely in 2nd package: Nath
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