Planning to make a real estate investment in 2016? Best options for you
Indian real estate sector has been sluggish for a few years but is expected to make a turnaround in 2016. Experts believe that the sector is expected to record increase in sales and a reduction in unsold inventories. They believe the government initiatives announced this year will give a push to the sector and reinstate investor confidence.
Real estate experts believe that government’s promotion of 100 Smart Cities, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), Housing for All by 2022 and infrastructure development are some of the government steps that would not only benefit the economy, but would also create a sector-wise
“The government’s easing of FDI policy, the probable implementation of the Real Estate Bill and Smart Cities, and the introduction of REIT(real estate investment trust) would bring in the much-required transparency into the sector and enhance investor confidence in the coming years. The year 2016 is likely to begin on a cheerful note on the back of reforms and increased investor confidence.
The RBI has cut rates recently and both the developers and buyers expect to see the transmission of these lower rates to consumers in coming years.If you are planning to invest in real estate in the new year then the buyer should keep in mind certain points as the market has multiple choices to offer.
players, we list out cities that could be good investment bets in the year 2016 and give good returns in the next 5 years.
Pune, being one of the Chosen city under SMART city program has been growing continuously and has lot to offer in Future as well.
How stamp Duty is calculated
Stamp duty is calculated on the market value or the agreement value, whichever is higher. Further, it is payable only on the contents of the registration document, and not the transaction value. To assess the market value, stamp duty authorities refer to the Stamp Duty Ready Reckoner, which is issued on 1st January every year by the government. The stamp duty charges vary from state to state. The amount also depends on several other factors such as:
- Old or new property
- Rural or urban property
- Male or female property owner
- Agricultural or non-agricultural
- Freehold or leasehold
- Residential or commercial units
- Multi – storied apartments or independent houses
You can visit the official website of your respective state government to know the updated stamp duty charges and other related details.
What is the purpose of Registration?
Ans. (a) By Registration of transaction of immovable property will become permanent public record. This is a notice to the general public. Those getting transfer of property should verify whether such property has been previously encumbered.
(b) According to Transfer of Property Act right, title or interest can be acquired only if the deed is registered.
What factors I should keep in mind while starting a Property?
“It is important for a buyer to get a detailed information on the shortlisted projects including the builder type, locality, to name a few. As a buyer you must not get lured by freebies and discounts that are being offered all around and rather check all the legal documents thoroughly and carefully. Buyers must get all the documents thoroughly verified by a professional. Few Points to consider
- Budgeting : finding the right budget that suits you
- Identification of property : locate a property according to budget, requirements and location.
- Estimation of expenses till occupation : take an estimation of owning the house till you move in. Including expense on pre-emi, charges to consultants, interior decoration, expenses of wardrobes, kitchen cabinets, maintenance charges, sinking funds, taxes, registration charges, stamp duty, legal charges etc
- Verbal verification of legal aspects : ask the builder about handover, availability of documents pertaining to title of the property, specification of construction, status of land etc
- Checking on approved banks : talk to the banks those have approved the projects. A general verification with few public sector bank would help you to avoid some risks before booking.
- Identify existing customers: try interacting with existing customers.
- Booking : book the preferred house and collect receipts, allotment letter for the specified unit which specifies enough time for legal verification of the property at least on a letter pad, ideally nothing should be deducted in case of cancellation happening within limited time.
- Legal verification : sit with a lawyer who is an expert in real estate matters in the particular, never mind spending on a good legal advisor.
- Signing of sale agreement : sign the agreement if the legal requirements by your lawyer is met
- Sale deed registration