As per the definition of affordable housing, it is a housing unit that is for below-median income group, who is looking to buy homes in a medium to the high-density housing areas.
Affordable Housing is present government’s key agenda whether at the state or center level and is a big way in giving a real-estate push to the economy and provide a standard of living to the nation. Being key issue in a developing country like India where a majority of the population can’t afford a place to call their own home.
Affordable housing primarily depends on affordability which is determined by the disposable income of the people. It is the need of the hour because according to the Technical Group Report, two low-income categories – economically weaker sections (EWS) and low-income group (LIG) accounted for 96 per cent of the total shortage in India.
Due to the need for houses increasing and also the need and intent of urbanization on the rising housing in the urban area has to be increased drastically. Affordable housing is the way to go, as per the rate of urbanization 40% of the country is expected to live in an urban area by 2030.
In the context of the estimation of affordable housing needs, housing shortages are calculated (Planning Commission methodology) by adding:
(a) Excess of households over housing stock,
(b) The number of households residing in unacceptable dwelling units
(c) Those residing in unacceptable physical and social conditions due to overcrowding and congestion factor and
(d) The houseless households
Hence, it means that there is obsolescence (of houses), congestion factor and homeless factor in estimating new housing demand.
What makes a Housing scheme comes under affordable housing scheme?
There are two types of affordable houses –MIG I and MIG II
MIG – I are household for the income between 6-12 lakhs and MIG -2 are household between the income 12-18 lakhs. MIG I are allowed loan up to 9 lakhs at 4% interest. MIG-II up to 12 lakhs at 3% interest which is a huge subsidy from present rates and the tenure up to 20 years.
Developers in the affordable housing sector will also get a year’s time to pay tax on notional rental income on completed but unsold units. The tenure for long-term capital gains for affordable has come down from three to two.
Affordable housing is a great investment opportunity for people in all sector as this concept has taken of in all the countries after 2009 crash in the world. Real estate sector people basically were forced into the affordable housing sector because of the liquidity crunch which has been again faced by people in India. The problems are not the same with the affordable housing sectors as listed above the 40% people are moving to cities affordable homes are built for them hence the demand is high. Affordable homes make it easy to cash in at a higher rate after holding at a certain point.
Affordable homes are also good if you are from a low or medium group as the buyers are RERA protected and fully utilized for their space.
Overall Affordable Home is a good place to start with for your first home
If you are looking for Affordable housing in Haryana do check Springwoods City. It has best in class facilities and amenities.
Source- Haryana Goverment Circular