Karnataka Housing Board slashes deposit amount on Flats

Karnataka Housing Board : In a bid to boost sales of its flats in Bengaluru, the Karnataka Housing Board has slashed the initial deposit to be paid by flat buyers to Rs 50,000 from Rs 5 lakh.
Housing minister U T Khader told reporters on Tuesday that the decision was taken after he found there were not many takers for flats built by the board in different parts of the city. The board has built two apartment blocks in Kengeri and more than 50% of the flats remain unsold.

Karnataka Housing Board

Karnataka Housing Board

The board has also decided to relax conditions like mandatory submission of income certificate and the buyer having to be a resident of Bengaluru for 10 years.

The board has also done away with the rule that buyers should not previously own any property.

“We have relaxed these conditions keeping in mind competition in the housing sector from private players,” Khader said. “Now we have decided to allot flats on first-come-first-serve basis.”

The board is also mulling building apartments with more than 10 floors, like private builders do, in order to cater to the housing needs of people and also keeping in mind shortage of availability of land. Currently, the board builds only G+3 apartments.

Tie-up with cooperative societies
The housing department has decided on tie-ups with local cooperative societies to provide short-term loans for beneficiaries of various government housing schemes.

“As per the rule, the beneficiary will get the first instalment of Rs 35,000 only after completion of the foundation of the house,” the minister said.

“The poor are finding it difficult to arrange the money to complete the foundation. As a result, beneficiaries have not been able to make use of the schemes. To avoid this, the department is thinking of forging a tie-up with local cooperative societies to lend Rs 35,000 to beneficiaries after they get allotment letter. The government will stand guarantee for the loan.”

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