Buying a house in Bangalore might get costlier
For any Indian the next step after acquiring a dream job is buying their dream house. It is best to buy that piece of property as early as possible as these properties are on a price hike journey. If you are waiting for the prices to deflate, it is waste of your time and resources. These prices will never come down. Even during the recession of o’8 the real estate market managed to stay leveled (though buyers were hard to come by).
Bangalore is expanding in all direction, both the demand for homes and property taxes are on an upward spiral. Granted the property rates are not as high as those in Mumbai and Delhi. The Bruhat Bengaluru Mahanagar Palike (BBMP) has proposed a revision of property tax rates and the tax zones in January 2016. The BBMP is a division under which all decisions regarding all civic and infrastructural properties in the metropolitan area of Bangalore are taken. It is responsible for an area of around 741 Sq. km.
These new rates are applicable from this financial year. This hike is coming after duration of eight years. The reason for this raise in rates is due to the collection objective of the BBMP not being met. After a profound discussion of the committee members and a sincere debate with a few of the residents and industrialists, the rate hikes were finally capped at 20% for residential property and 25% for non-residential properties. It was also proposed that if an area was previously classified as less developed and shifts its zone to a higher one, then the overall tax rate applied will increase by around 50% (there are currently six zones-A, B, C, D, E and F). The vice versa is also possible. Fortunately this change has been put on hold. In conclusion, the cost you pay for your property has increased and will continue to increase and there is no way for us to pause that rise.