Want to know how the budget 2020 has impacted the rental housing sector when you are looking at renting a flat in Noida? Keep reading, and you will find out.
It is that time of the year when you switch on your television, and the budget is all over, making headlines. Budget 2020 did make a significant influence on the agriculture sector; however, the rental housing industry did not find much of a mention.
There is, however, a hint in the revised budget slab that we can pick to understand how the rental housing sector fare in 2020.
What is the Revised Tax Slab for Different Classes of Individuals?
Below is the revised tax slab for the income tax:
| Tax Slab | Current Rate | New Rate |
| Rs 0-2.5 lakh | Exempt | Exempt |
| Rs 2.50-5 lakh | 5% | 5% |
| Rs 5-7.5 lakh | 20% | 10% |
| Rs 7.5-10 lakh | 20% | 15% |
| Rs 10-12.5 lakh | 30% | 20% |
| Rs 12.5-15 lakh | 30% | 25% |
| Rs 15 lakh and above | 30% | 30% |
Individuals who are earning less than Rs. 2,50,000 are exempted from the tax slab. The new budget did not bring any change to this class of individuals. As we can see from the table, the individuals with an annual income of Rs. 5,00,000 to Rs. 15,00,000 have to pay a reduced income tax.
How Will the Increased Income Tax Influence the Rental Housing Sector?
The individuals between the tax slab of Rs. 5,00,000 to Rs. 15,00,000 will get to save some portion of their savings. The middle class are the people who usually op
t for renting a flat as they cannot afford to purchase a house. In such a case, while some of the individuals will opt for investing in a property with an increased income, others will look at upgrading their house.
If an individual is staying in a rental flat in Noida in a 1 BHK, he may consider upgrading to 2 BHK. Besides this, if an individual is staying in a remote locality, he may consider moving to a prime location.
In addition to this, an increase in disposable income might encourage individuals to invest in housing properties. When the investment increases in the property, it will pave the way for more number of rental properties to cater to the high demand.
How Will the Smart City Project Influence the Rental Housing Sector in Noida?
The Smart City Project is likely to favour the rental housing sector in Noida. Since its inception, Noida has received abundance when it comes to infrastructure. The infrastructure in Noida is beating that of Mumbai and is advancing at a fast pace.
A separate budget for the Smart City Project would mean further infrastructural development in Noida. New properties would translate into new opportunities for the rental housing sector. This, in turn, will create a new avenue for those looking for renting a flat in Noida.
Besides the rental housing sector, even the connectivity in Noida will get better. As a result, individuals would not have to struggle for finding a flat in Noida in a prime location.
Key Takeaway
Renting a flat in Noida may not be one of the Herculean level tasks for you, especially with the online portals ready to cater to your demand. However, you should trust the ones that are in the real estate business for a long time.