Government mulling extending more incentives (housing)
The government is working on more attractive incentives to promote housing finance schemes in pakistan
Including a proposed income tax exemption/tax incentive on income earned from such projects, income tax
Relaxation for long term finance and reduction in capital value tax (cvt), stamp duty and registration fee to
Make houses sale/ purchase transactions more affordable, especially in case of low value properties.
Thank you for the update Muhammad.
About time the government did something to spur the real estate sector! It’s a massive industry and it is not receiving the backing it needs from the authorities.
Could you please share the source of information with us?
Awaiting response!
Regards,
zain Nadeem
Yes, such schemes will be helpful for families with lesser income. But will have to wait for its timely implementation - one of the biggest challenges, I guess!
Can you please provide the source of this news? If implemented, it might help to improve the supply, but what is really needed is to boost purchasing power by providing easier access to credit for prospective middleclass buyers. I am not suggesting that the government should start handing out loans like youth scheme, or taxi scheme or laptops etc.
My suggestion would be that if government can introduce a targeted loan guarantee/insurance scheme for middle class buyers, it will greatly help such people to obtain bank financing for purchasing of an accommodation, because then banks will be able to relax some of their stringent conditions and reduce risk premiums. After all, having a shelter is a basic human right.
Gentlemen, please see the link below for reference and details:
Raza agree with your point.
The issue here is actually the same everywhere. We have full corporations of government meant to do such things but nobody is doing its job even 50%. HBFC is supposed to do exactly the things you mentioned but 1000s of employees are working there and doing nothing.......
@Muhammad. Thank you for sharing the link. Unfortunately it highlights the same issue which I pointed out earlier. These measures are meant to facilitate the big property tycoons and financial institutions. Some thing needs to be done to make financing affordable and more importantly, possible, for an average middle class buyer to strengthen the demand side. What's the point of providing incentives to big builders for financing their grand projects when a vast majority cannot afford to buy them?
Its better to support the established institutions for financing low cost housing, but leaders are usually more inclined to get them "constructed" through public sector schemes, because it apparently generates "more benefits". Benefits for whom? Not hard to figure out.
Looks like Metro 2.0 is being considered but this time it will be property sector so that some big fish get lots of loans and then get them written-off
Dear Muhammad,
Many thanks for update.I am totally agree Raza and it's true.
Regards
Raza sb it makes good business sense for the rulers to incentivize these large tycoons as they tend to have a mutually beneficial relationship. What will they get from a petty insurance scheme for the poor?
The government will readily pay hundreds of billions to clear bills of power producers owned by tycoons, but they will not spend even a fraction of that to provide subsidy to consumers instead. So everything seems to be in line with our national policy. Big projects, big payments, big money. No worries. All being done in national interest to alleviate poverty.