Budget 2011-12 wishlist (Real Estate Sector) from Min Man Shrestha
General Secretary, Nepal Land and Housing Developers’ Association (NLHDA)

The new budget is extremely crucial for the real estate sector that is reel under a severe liquidity crunch due to banks’ tighter lending policy and other government policies. We’ve asked the government to allow realty developers to restructure their loans for at least one year. The government should scrap the realty loan cap of 25 percent. Instead, banks and financial institutions should be allowed to lend at least 40 percent of their total loans to the housing, real estate and rural housing development sectors. The government should exclude housing loans up to Rs 12 million and real estate (land) loans up to Rs 7.5 million taken for personal residency from the speculative real estate loans category. As income source disclosure provision being among one of the reasons behind the slowdown in the realty sector and the liquidity crunch, the new budget should increase the threshold of income source disclosure from existing Rs 1 million to Rs 5 million.

source; The Kathmandu Post