The novel coronavirus (COVID-19) pandemic, among other things, effectively put many potential homebuyers off in making a purchase decision. Fortunately, the welcome move by the Government of Maharashtra in lowering stamp duty is a clear indication that now is the best time to buy homes and property in Maharashtra.

In August 2020, Maharashtra Government made the decision to reduce the stamp duty on property registrations from 5% to 2% for transactions between September 1 and December 31. In July this year, property registration activity in Mumbai had risen from the levels noted in the April-June quarter, although that was still lower than the pre-COVID-19 levels.

Let us look at a hypothetical scenario to fully appreciate the reduced stamp duty charges. For example, Flat A measures 1,000 square feet, and the per-square-foot rate is INR 15,000. Therefore, total saleable value is INR 1,53,00,000. The stamp duty is calculated as a percentage of the total saleable value. At 5%, the stamp duty INR 7,65,000. Now, reduced to 2%, stamp duty charges will come down to INR 3,06,000 from INR 7,65,000. The saving is therefore INR 4,59,000.

Experts are of the view that the timing of lowering the stamp duty is excellent because currently, the rates of home loans are also low. This combination is perfect for converting demands into actual sales. To make it more lucrative, many developers are offering no GST as well to the home buyers. Coupled with the reduced stamp duty, the transaction cost for such apartments will now be extremely affordable. Therefore, serious consumers will be able to use this circumstance to their advantage and make informed purchases.

The Government of Maharashtra has intelligently designed and implemented the stamp duty reduction. However, it does come with an expiry date. Therefore, potential home-buyers must consider expediting their purchase decisions to effectively make use of this opportunity. It is likely that other states will also follow in these footsteps, giving a boost to the entire real estate industry of the country.

The Dynamix Group is glad to offer a range of residential projects across Mumbai and Goa, thoughtfully designed to meet the expectations of domestic as well as non-resident buyers. Be it luxurious apartments in the heart of Mumbai, or sprawling seaside homes in Goa, the Dynamix Group has it all. Find out more about our current projects Avanya, Divum, Parkwoods and Aldeia de Goa at https://www.dynamixgroup.co.in/