Low cost housing gets a boost

This years budget has brought some cheer for first time home buyers. Chidambaram announced an additional Rs.1 lakh in tax savings for those taking loans of up to Rs.25 lakh for the purchase of their first home. The savings will be applicable over and above the Rs 1.5 lakh that is already available. Something had to be done to revive moribund home sales and this could just do the trick. But then again the additional rebate on interest paid is valid only for one year. For someone who takes a 20 year home loan it sounds like peanuts.