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what are the effects of budget 2019-20 on property in Bahria town

Introduction

Bahria town from 1997 leading housing project in Pakistan. It is privately based housing project started by Malik Riaz from Rawalpindi. It is now well established in Lahore, Rawalpindi, and Karachi. It is considered as the biggest and most popular housing project of Pakistan.
Bahria Town is providing world-class luxurious comforts along with best-living facilities. You can get all the details about the property for sale in Bahria town from Pakistan best online real estate portal.

Bahria town is providing safe and secure housing project along with the better atmosphere, health, education, and all other basic facilities of life at its level best. Bahria town first project was in Rawalpindi from that time it is growing with leaps and bounds.
It is now the highest revenue generating project and its demand is increasing day by day. After budget 2019-2020 people are curious that how it will effect all the real estate especially Bahria town as it is now currently leading property project in Pakistan.

 

Here is how budget 2019-20 effects on Bahria town.

Budget 2019-20 is first proper budget announced by Hammad Azhar of Pakistan Tehreek e Insaaf. Pakistan is facing a tough time in the economy due to the burden of loan. Government is clearly looking to meet the deficit by collecting extra revenue with taxes. The property was one of the fastest growing industry from past time and that why the government tries to gain some tax from property head as well as also looking to discourage plots sale and purchase. Government is clearly looking to uplift the construction industry.

 

Documentation

Pakistan is facing deficit due to low taxpayers that why the government has decided to take charge on the person who is not paying taxes along with that they are looking forward to putting everything in proper documentation so they can verify assets of every individual and group of companies. Now according to the new rules, anyone buys a property he has to make his payment through a proper channel means through its bank account. In this way, the government has proper proof of your money transaction.

 The government will also have the right to ask for a money trail at any time. In the past, there was cash payment which can not be verified by any means. It is a great step against black money also it also helps you maintain property business. It is also appreciated by Bahria town as this is a great step against black money. Proper documentation will help both the customer as well as Bahria town in maintaining proper records. This will help in building relationships as well.

 

Rebate in the construction business

Pakistan is the only country in which people use to trades in plots instead of build houses. This is horribly affecting prices of property. Government is trying to impose hurdles in sale and purchase of plots by imposing withholding tax along with that there is a huge difference between demand and supply There is more demand for houses and the government is encouraging construction business by giving them rebate by different means. Bahria town is a principal housing project which is looking to meet up that demand by providing housing facilities in affordable rates to millions of peoples in Pakistan.

 

Benefit end user

The best thing about this budget is it is supporting the end user. There was a trend in Pakistan that rich people as a stack holder on the base of capital used to buy all the land and plots and then resale it on high prices. This will lead to capitalism which ultimately not in favor of people who want to purchase a home for living. Now when the large capitalist is not able to buy property in bulks. This will ultimately help end users and help them buy home more easily. Bahria town in spite of huge demand is providing home is easy installments so almost everyone can afford it very easily. This will help Bahria town achieving their dream of providing the basic home facility to everyone.

 

Tax Relaxation

The best thing about this tax budget is that it also encourages property business. They have reduced withholding tax from 2% to 1% so it can be encouraging for people for property business. The more the property business the more the government has the opportunity to gain more and more tax.In the new budget duration of property holding increased so that everyone encourages to hold the property for a long time and take initiative for construction.

 

Proper transaction medium

According to new budget 2019-20, Nonfiler can buy property to more than 50 lakh but according to our rules and regulation, the nonfiler must have to be a filer in 45 days. It is also compulsory that all the transaction must be through the banking sector with the proper medium. This should also be clear that the government can ask for proofs of the money and transaction as well. Indirectly it’s a great way to put nonfiler into filer. It is compulsory that purchaser of property have to be filled within 45 days.

 Before this nonfiler was unable to buy a property worth 50 million but now he can buy property by just choosing the proper channel of payment. If you are nonfiller no worry and want to be no filler at least you can look for a house for rent in Bahria town because to buy a house you have to be filler in 45 days.

 

Discourage plot sale

Government is now directly imposing a strict condition on sale and purchase of plots and lands to discourage the sale of empty land and to invite the public for the construction business. Bahria town is leading project providing build house, villas, and all the commercial markets. Bahria town Karachi is providing the home facility to almost 10 million people of Pakistan.

 

Steel and cement prices

Due to an increase in inflation rates and an increase in petroleum product and raw material, price of cement and steel will be higher from last time and that’s why people encourage to buy already build houses. Bahria town is providing the best housing facility and affordable price and that’s why people are demanding house for sale in Bahria town.

 

Discourage black money and speculation

Unfortunately, people use to convert their black money by buying plots and land in bulk without using the proper medium of payment. Now the buyer has to payment through proper medium and it government officials can require money trails any time due to which black money and speculation will be decreased and overall, It makes our country more progressive more ever it will help property business grow in a smooth way in future.

 

Conclusion

Government has increased taxes and withholding time period for discouraging sale and purchase but on the other hand, has provided a rebate on the construction business. This will open a new era of opportunities. Bahria town is already leading in the construction business and it will keep on growing. It is a great time now to invest in Bahria as it is the present and it will be the future of real estate in Pakistan.

The best thing is that now everything will be documented and through proper channel. It will decrease the conversion of black money into property and encourage equal growth opportunity to every ultimate user. Now every single house buyer can also buy a house in Bahria town very easily which is the ultimate goal of Bahria town.
Overall this budget is in the benefit of real estate business and it will increase the value of Bahria town as well. You will have a great chance now to invest in Bahria town. You can get all the details about Bahria town through Pakistan’s best real estate portal.