Budget likely to bring relief to first time home buyers

The union budget for the 2014-15 fiscal year, to be presented in Parliament on 10 July, is expected to bring some cheer to the realty market with concessional rate of interest on loans to first time home buyers.

Besides the interest subvention, the finance minister is expected to announce some other concession to first time home buyers in the union budget.

The interest subvention scheme is proposed to be linked to the income of the borrower, sources said.

Besides, the budget is expected to accord infrastructure status to low-cost housing, which in turn will make it eligible for concessional financing.

While home prices in India have been going up, the number of home buyers has not increased proportionately, simply because these are no longer affordable to the middle class buyer.

Affordability holds is key right now as buyers have been shying away from making purchases for a long time owing to lacklustre economic conditions and resultant low confidence.