One owner who wants it all white
The cost of construction had increased by almost Rs 200 per square feet.
Hyderabad: The owner of a two-bedroom flat that is on sale at Dilsukhnagar is definitely a rarity. He was ready to accept cash in white — the Rs 38 lakh that he had quoted for his nearly 20-year-old apartment with car parking.
Was he not aware of the tax burden? “This will be the norm and I am willing to pay the required taxes,” he said.
In Malkajgiri, a builder had priced his 2BHK flats at Rs 28 lakh and 3BHK flats at Rs 38 lakh. The obvious question. How much in black? He was willing to take up to 15 per cent in cash, the rest had to be white.
A builder said mostly no one would ask for black money while selling new properties costing up to Rs 80 lakh, as the buyers could get bank loans. The down payment that these families make is also routed via banks so it is accounted for, he said.
There was a downside to demonetisation. The cost of construction had increased by almost Rs 200 per square feet.
Construction material suppliers are collecting money in white and giving proper bills. They are charging more to pay their taxes. “The burden will be passed on to the customer. The cost per square feet which used to be Rs 2,500 would now be Rs 2,700 in new constructions,” he said.