Stamp duty cut brings good news for homebuyers amid Ganeshotav 2020

The Maharashtra government has brought some good news for homebuyers in the middle of the annual Ganeshotsav festival. Now, homebuyers would be paying two per cent of the stamp duty charges instead of five per cent until December 2020. From January 2021 till March 2021, the stamp duty will be three per cent, announced the Maha Vikas Aghadi government.

Dolly Wadalkar, a business woman, bought a three bedroom hall kitchen (BHK) flat in Sunteck’s Signia High in Borivali (East) costing approximately Rs 4.30 crore with her husband. Wadalkar told the Free Press Journal, "I am happy that we did not initiate the stamp duty registration of our property. Now, because of this new decision, I will be saving a lot of money. Earlier, I would have had to pay Rs 21.35 lakh on stamp duty charges. However, now, as per the revised stamp duty rates, I will be paying around Rs 8 lakh. This means that I am saving more Rs 12 lakh, which is a huge amount." She asserted that before the government decides to cancel its plan, they would make sure that they avail this benefit and do the registration by September first week itself.

Developers too have welcomed the decision of the government. Ram Naik, executive director, Guardians Real Estate Advisory, believes the steep reduction in stamp duty of 3 per cent and 2 per cent till December 2020 and March 2021, respectively, will lead to an unprecedented surge in demand for the real estate sector. "This move will benefit ready-to-move apartments the most. Occupancy certificate-ready projects do not attract the Goods and Services Tax (GST). The reduction in stamp duty will now bring down the transaction cost for such apartments to a very negligible percentage. The timing of this move could not be better, as it comes on the heels of a substantial reduction in the repo rates. The reduced borrowing cost, negligible transaction cost and developers willing to offer lucrative prices create a great opportunity for serious consumers to make a purchase."

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