Real Estate News
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Everything to know about REIT Investment
Back in 2014, the government announced that they were starting with the process to set up Real Estate Investment Trust (REITs) in India. In 2016-17 financial budgets, Finance Minister Arun Jaitley announced several tax deductions for the investment in REITs. Mr Jaitely announced that “To stimulate housing activity, I propose that any distribution made out of an income of SPV (Special Purpose Vehicle) to the REITs and InvITs(Infrastructure Investment Trust) having specified shareholding will not be subjected to dividend distribution tax.” We discuss everything you need to know before investing in REITs below: What is REIT? Real E...
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Everything you need to Know about Property Insurance
Buying a house is a once in a lifetime investment for most of us. And it does not harm going a bit further to make sure your investment is safe for the future as well. A lot of us are unsure about property insurance and deem it unnecessary. But just like other things in life that are near and dear to us, our property needs to be protected and insured. Unfortunate situations never come knocking on the doors, and sometimes they can cost a financial dent. It is better to be prepared for the worst than regret later. We discuss everything that you must know about property insurance: Types of property insurance Just like every other insu...
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Beware of ‘Assured Returns’ Schemes
Once in a while, we come across ‘Assured Return’ scheme on the real estate properties. The schemes offer 12- 18 percent returns till possessions. They are even advertised under different names to attract buyers. The Securities and Exchange Board of India has already declared such schemes as Ponzi schemes and has urged the buyers to refrain from investing in any such project. The returns that the builders offer are unrealistic, and the buyers generally fall into the trap due to the false promises of high returns. There have been cases where the buyers have complained about how the payments stopped after a few months or the cheques keep ...
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Being the Solo Owner of the Property Might Not be a Bad Idea
As potential home buyers we all are aware of the fact that adding a co- owner to the property and home loan can help you increase your home loan limit. Not only the limit but one also enjoys tax deductions and lower stamp duty if a woman is applying for home loan. We often discuss the advantages of having a co- owner for home loan and property. But one cannot argue the fact that being a solo owner of the property has its own advantages too. We discuss them below: You are have the sole responsibility In co- ownership you know you have the backup in case one of you fails to make the payment. But there’s also a drawback, if one of...
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What to do If Your Builder Has Run Out of Money
Thousands of buyers are in a state of confusion and financial lurch since their builders have run out of money to fund the project. Who can the buyer blame for the bankruptcy of the builders? The government’s regulations have made t difficult for the builders to survive. Only key players, who have standing and enough funds to finish the projects without any hitch are in the game. Rest has been shown the exit door and so have been their projects. Most people stay away from asking a piece of professional advice in this case and refuse to take the help of their family members and friends. We discuss what a buyer should do in such a situa...
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Things You need to Know before Buying Farmland for Non- Farming Activities
In India, only people who are into agriculture can buy farmlands, and a large portion of land in India is agricultural. The law has been amended to safeguard the agricultural lands in fear that non- agricultural activities on such lands will harm the agricultural sector. Some states have amended their land use laws and provided some liberty for the use. We discuss them below: Maharashtra Until 2016, one could only buy agricultural land for farming only. Section 63 of Maharashtra Tenancy and Agricultural Land Act, 1948 (MTAL), prohibited the transfer of agricultural land for non- farming use without the permission of collector or authorit...
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Remember These While Transferring Sale Proceeds from One Property to Another
Property investment without any doubt is a gold mine for investors. The returns and gains from selling the property are higher than any other investment sector. The capital gains that you acquire from selling a property are taxable under the Income Tax law in our country. They are taxed depending on whether they are long term capital gains are short term capital gains. However, if you are planning to invest the capital gains on another property, there are specific provisions under the Income-tax laws that can exempt you from paying the same. According to Section 54 of the IT Act, if you are investing your long term capital gains in a resid...
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Neighbourhood Features that Increase the Price of Your Property
Just the property and its condition are not the only things a buyer looks at when buying a property. The neighbourhood and the locality also play a crucial role in the price of the property. The well being and the good flourishing neighbourhood is not just the added advantage; it is one of the most critical aspects of property selling. We list down the neighbourhood features that will increase the price of your property: School nearby Gone are the days when people used to save money all their lives and buy a home nearing retirement. Now, since the banks offer home loans, people in their 20s and 30s have decided to take a plunge and buy...
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Check these Documents to avoid any Property Fraud
Frauds against the properties aren’t unheard off. There have thousands of cases related to property fraud that is pending with the court, waiting for a resolution. But as a buyer, we can stop from getting caught in a property related scam with just little more attention towards the property papers. We list down all the documents that you must carefully check before buying the property: 1. Sales deed: It is one of the most critical documents in the ownership of the property. The document is the legal proof of the name transfer and your ownership on the property. Make sure that the property has a clear title and it is duly regist...
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What is better: Renting or Buying?
On April 4th, Finance Minister Mr Arun Jaitely said that the government would try to bring down the interest rates for the home loans so that paying the EMI is the same as paying the rent. The announcement came after RBI reduced their repo rates by 25 basis points. It has come as good news to the home buyers who are still wondering if they should take a step towards buying a house or continues living on rent. The home loan interest rates are at the lowest in the past five years. Most people generally refrain from getting into real estate and making the investment is because of the interest rates and the higher EMIs. The amount paid for ren...
