Guidance value: Mixed response to hike

Guidance value: Mixed response to hike
Deccan Herald

A cross-section of citizens and real estate agents feel this is a retrograde step, while others feel both the citizens and the government stand to gain by this proposed revision.

The proposal of the State government to increase the guidance value of land by over 60 per cent in and around Bangalore City coming under the jurisdiction of the 12 sub-registrars has been received with mixed response. A cross-section of citizens and real estate agents feel this is a retrograde step, while others feel both the citizens and the government stand to gain by this proposed revision.

According to consensus, by its proposal the government has shattered the dreams of poor and middle-class citizens of owning a property in the City. The general feeling of the citizens is that by this decision the government has added insult to the injury already caused by banning registration of revenue lands.

Real estate agents and builders oppose the proposed hike in the guidance value. This will affect our business by the way of less turnover resulting from decline in purchase of property, said R Srinivas Reddy, who has been in the real estate business for the last 20 years. Due to increase in the registration charges at least some property buyers will delay the registration of their properties, he added.

Opposition

Many citizens have also expressed opposition to the increase in guidance value as the tax on the properties levied by Bangalore Mahanagara Palike will also increase. “My house tax of Rs 2,500 will go up to Rs 4,000,” said K Poornaprasad, a resident of Sahakaranagar.

Palakshaiah, a retired factory worker, said with the rising cost of living and increase in water and electricity tariff, the hike in property tax will be an additional burden on peoplewith limited means. However, civil engineer Puttaswamy feels that property buyers can get bigger loans from banks, on the basis of the guidance value of the property. The government which will be getting a higher revenue should spend it on providing better facilities to the citizens, he added.

Gangadharappa, a real estate agent of T Dasarahalli has the same viewpoint. “At the same time, the value of properties also goes up,” he said.

The opposition to the proposed hike is, by and large, high among the citizens.