Central Govt. to Launch Rent to Own Scheme

Rent to Own Scheme

The central government is soon considering launching a house rental policy, whereby the migrant people coming to the cities will be able to rent houses from government institutions. Not only this, in the future, they will have the option to buy this rental house by paying the full price in easy installments. According to the housing ministry, the name of this scheme will be ‘Rent to Own Scheme‘ which will be launched under the National Urban Rental Housing Policy of the Central Government. Union Urban Development and Housing Minister Venkaiah Naidu said on Thursday that this act will be presented before the Cabinet soon for approval.

What is Rent to Own Scheme

Apart from this, the government is also considering the subsidy of 1.5 lakh rupees for the poor people, even after buying houses built on private land. So far this exemption was given only on the houses on the grounds of state governments and bodies. Venkaiah Naidu said that the ministry was considering this since the inauguration of the Affordable Housing Projects launched by private developers. He said that till date we have approved housing for 17.73 lakh urban poor in 2008 cities and towns.

The minister said that by 2022 everyone has the goal of fulfilling the promise of the house. By 2019, this target will be achieved in 15 states and Union Territories, which include states like Kerala, Himachal, Arunachal and Jammu and Kashmir. After this, this target will be completed in other states by 2022. The Minister said that after issuing notification of ‘Rent to Own’ Act the state will be able to work on it. The Union Minister said that this will be a big scheme under the government’s goal of providing housing to all by 2022. Under this scheme, there is a target to arrange suitable accommodation for a large number of migratory migrations.

How to take advantage of ‘Rent to Own’ scheme?

Under this scheme, initially, the house will be leased for certain years. The buyer will have to pay the equivalent amount of EMI per month in the bank, it will be in the form of a rental and the rest will be deposited. When the amount of EMI deposited by the buyer will reach the level of 10% then the house will be registered on its name. If the person taking the lease does not deposit the money then the government will sell this house again. In addition, the amount deposited with the rent will be returned to the tenant without any interest.

Fear of landlords will be removed from the new Rent Control Act

To ease the shortage of houses in the country, the central government is going to bring a rental housing policy soon. Under this, the government will give benefits to the homeowners who rent their houses. It will also be ensured that the tenant can not occupy his house. Now the Rent Control Act, it is in favor of tenants. Because of this, the landlords are shy away from hiring their house. The government wants that those who have bought houses, if they do not live in it, then let them rent so that they can be utilized. If this happens, then in many cities, the problem of houses will end. The government will prepare a model agreement, which will be done by mutual consent of landlord and tenant. The amount and duration of the rent will be fixed in it. This will ensure that the landlord’s house will be safe.

News Source: http://navbharattimes.indiatimes.com/business/property/property-news/poor-may-get-to-own-homes-they-take-on-rent-and-get-subsidy-on-private-land/articleshow/58291127.cms

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