Builders In Maharashtra Will Now Offer Zero Stamp Duty To Those Purchasing Homes

Days after the Maharashtra government decided to temporarily reduce stamp duty on housing units from 5 percent to 2 percent until December 31, 2020, to boost the stagnant real estate market, NAREDCO, the national body of real estate sector, has decided to give a zero stamp duty booster to homebuyers.

The offer by NAREDCO Maharashtra members is available from September 3 until October 31, 2020. All the projects are RERA registered.

On August 26, the Maharashtra government had said stamp duty from Jan 1, 2021, until March 31, 2021, will be 3 percent. In Maharashtra, stamp duty charges are 5 percent in key cities like Mumbai, Pune, Nagpur and Nashik and 6 percent in others. A 2-3 percent reduction in rates will result in significant savings for homebuyers.

NAREDCO Maharashtra members said they would be paying stamp duty from their own funds. “We will take on the burden ourselves and the buyer would have to pay zero stamp duty,” Rajan Bandelkar, president, NAREDCO – West and convener, HousingForAll.com told reporters.

Members of NAREDCO Maharashtra have come together to offer various affordable and luxury residential properties in over 1,000 housing projects under the scheme. A majority of developers from Mumbai, MMR, Pune and Nashik have decided to waive off the stamp duty and bear the burden in a bid to revive the economy. More developers are expected to jump the bandwagon.

The scheme will be applicable to the projects registered on HousingForAll.com portal as well.

“After the government of Maharashtra’s blockbuster measure to reduce the stamp duty on the property buying, it is another milestone step by NAREDCO Maharashtra to cheer the homebuyers. This decision to charge no stamp duty on units sold will bring a new wave of home buying in the short-run and change the demand-supply dynamics positively,” he said.

This will also result in a substantial savings and reduction in transaction costs for the end user, he said.

This will also encourage millennials to come forward to invest in property. “Stamp duty reduction and reduced interest rate may prompt them to take a decision to buy a house in these times,” said Ashok Mohanani, president-elect, NAREDCO – West.

(Source: Moneycontrol)