Maharashtra govt plans to start 'housing fund'
The move will encourage people to save for a house and to some extent housing finance will get a boost
May 05, 2015
Source : Business Standard

 

Mumbai: In a bid to make homes more affordable for people in Maharashtra, the state government is planning to start a 'housing fund' , where one can contribute a fixed amount of monthly earning for a certain period.

In its yet-to-be-released housing policy, the state housing department has proposed a housing fund, where a self- employed person or a government or private employee desirous of becoming a member, can contribute a fixed percentage of his/her salary in this fund, which will be managed by a fund manager chosen through competitive bidding.

"In case the qualifying person is employed in the private or government sector, then in such a case the employee will have the option to make a matching contribution from his/her provident fund (PF) account upto 50 per cent," the recommended policy states.

"For example, if an employee contributes Rs 1,000 to the housing fund and his/her contribution to the PF is normally Rs 2,000 then he/she can reduce the PF Contribution to Rs 1,000 and contribute the balance amount of Rs 1,000 to the housing fund," it further states.

An official from the department said the membership count of the housing fund will indicate the number of people in need of housing and added that the contributions shall be invested in RBI specified government securities.

"After 10 years of contribution, the employee can apply for a house in a government scheme and the balance in this fund to his credit shall be his share of the cost towards the house and the balance amount can be borrowed," the policy states.

The official said this will encourage people to save for a house and to some extent housing finance will get a boost.

The housing fund also proposes to offer interest equivalent to a PF account and the state government will approach the Centre to make contributions to it tax-free.

According to the policy, the members of this fund will have priority in eligibility in Maharashtra Housing And Area Development Authority (MHADA) draw for sale of flats.

In case the members of the 'Housing Fund' intends to buy a house from the private sector, the fund proceeds can be utilised for the same also.

Latest Realty News

Bonanza-for-some-Mumbai-builders-who’ve-exceeded-FSI-limits
May 05, 2015
MUMBAI: The BJP-controlled state urban development department (UDD) is set to favour some builders
HUDA-eyes-Rs-3,000-cr-windfall-through-registry-of-plots
May 05, 2015
GURGAON: Haryana Urban Development Authority (HUDA) is about to send notices to allottees by May-end to ensure plots are registered
Brookfield,-Incor-to-jointly-develop-Rs-500-cr-mixed-use-project-in-Hyderabad
May 05, 2015
HYDERABAD: A joint venture Realty project approximately worth a whopping Rs 400-500 crore has made its way into the 'hi-tech' city
Maharashtra-mulls-SEZ-Prevention-of-Land-Speculation-Bill
May 05, 2015
MUMBAI: The Maharashtra government plans to introduce a 'SEZ Prevention of Land Speculation Bill'
Bhubaneshwar-developers-hope-revised-realty-bill-will-drive-growth
May 05, 2015
Bhubaneswar: Developers in the city feel certain key changes proposed by the new dispensation were urgently needed for the survival of the real estate sector
Home-developers-continue-to-restrict-new-launches-on-huge-inventory
May 05, 2015
NEW DELHI: Developers across the top six cities continuing to restrict new residential project launches
India-for-deeper-engagement-of-ADB-for-smart-cities,-railways
May 05, 2015
New Delhi: Finance Minister Arun Jaitley sought "deeper engagement" of the Asian Development Bank (ADB) for development of smart cities
Secondary-property-market-showing-signs-of-recovery
May 05, 2015
New Delhi: Sales in the secondary property market are slowly picking up
Modi-government-faces-opposition-test-on-GST-and-Real-Estate-Bills
May 05, 2015
NEW DELHI: The government's legislative agenda may suffer a setback
Pvt-equity-investors-fund-realty-sector-amidst-slowdown-fears
May 05, 2015
Pune: Private equity investors have not lost faith in the potential this sector holds as they continued to pump in money

Latest Realty News Of State

Realty Talk's