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Investing in Property

Questions Answered (23)

with a budget of 45lacs - where to buy in navi mumbai to get good appre.

Aditya Verma

CEO & Business- Head
Makaan.com

You can look at any of these locations - Panvel, Taloja and Ulwe.

I want to invest in good location in Mohali with good returns in long term. Can you please suggest the properties?

Aditya Verma

CEO & Business- Head
Makaan.com

Sorry as a company policy, we don’t comment on any builder/developer.

Which is a better investment in Mumbai projects - 2 BHK in Vasant Oasis Phase 3 borosil plot, andheri marol or mayfair hill crest POwai Extn Vikhroli

Aditya Verma

CEO & Business- Head
Makaan.com

Sorry as a company policy, we don’t comment on any builder/developer. However, for investment purpose, Powai is good and gave appreciation of around 30-38%

Dear Sir, Please suggest some decent projects build by Reputed builder with excellent plan/construction quality in Pune. I am currently working in Hinjewadi. Carpet area around 1500-1800 sq ft. would be an ideal match. My budget lies between 50-70 L. Interested in Big Society, Villas or Row houses with good amenities and security. Under construction/ about to start project will also suffice my requirement

Aditya Verma

CEO & Business- Head
Makaan.com

Sorry as a company policy, we don’t comment on any builder/developer. You can look at Hinjewadi, the price appreciated by 18% last year according to our “Top 50 investment report”

looking to start a business in Nagpur city for which i need min 500sqrft shop/showroom space please suggest the area where to purchase or take on lease

Aditya Verma

CEO & Business- Head
Makaan.com

No Comments

Dear Sir, i am planning to buy one flat (2bhk)at IYYAPANTHANAGAL , PORUR, CHENNAI, for invesment pourpose. project name: colour country. Builders name : colorhomes developers. need your advice for the same.

Aditya Verma

CEO & Business- Head
Makaan.com

Sorry as a company policy, we don’t comment on any builder/developer. However, Porur is a good area to invest.

Must we invest in apartments or in plots for higher appreciation in bangalore ?

Aditya Verma

CEO & Business- Head
Makaan.com

It is completely your choice whether you want to move into apartment or construct a house. However, for better appreciation, you can look at following localities which comes under Top 50 investment options in India , a research conducted by Makaan.com. These localities appreciated from 10-30% last year, which is mentioned below and expected to give good returns in future

more (16)

Property rates in India

Note
Mumbai beyond Thane Capital Values Rate/Sq ft (INR) (min / max)
Aajiwali 3000 - 5000
Ambernath 3000 - 5000
Dombivali (East) 4000 - 6000
Kalyan (East) 2000 - 4000
Kalyan( West) 3000 - 5000
Karjat 1000 - 3000
Khandala 8000 - 10000
Kharegaon 5000 - 7000
Lonavala 3000 - 5000
Mumbai Nasik Highway 3000 - 6000
Senapati Bhagath Singh Road 3000 - 5000
Mumbai Central Line Capital Values Rate/Sq ft (INR) (min / max)
Chembur (East) 15000 - 17000
Chembur (West) 11000 - 14000
Heeranandani Gardens Estate - Powai 25000 - 30000
King Circle 17000 - 28000
LBS Marg 12000 - 15000
Mulund (West) 11000 - 14000
Mumbai Central 23000 - 34000
Sion (East) 18000 - 21000
Sion (West) 17000 - 22000
Tilak Nagar 12000 - 22000
Mumbai South Capital Values Rate/Sq ft (INR) (min / max)
Altamount Road 62000 - 72000
Breach Candy 62000 - 74000
Chowpathy 48000 - 58000
Colaba 42000 - 46000
Cuffe Parade 67000 - 69000
Dadar(East) 32000 - 34000
Dadar(West) 29000 - 32000
Malabar Hills 68000 - 75000
Parel 26000 - 34000
Tardeo 41000 - 49000
Mumbai-Andheri Dahisar Capital Values Rate/Sq ft (INR) (min / max)
4 Bunglows 17000 - 28000
7 Bunglows 13000 - 23000
Chandivali 10000 - 15000
Dahisar 4000 - 8000
Goregaon (East) 13000 - 17000
Kandivali (East) 12000 - 14000
Kandiwali (West) 11000 - 12000
Malad (East) 12000 - 14000
Malad(West) 9000 - 14000
Versova 21000 - 24000
Delhi East Capital Values Rate/Sq ft (INR) (min / max)
IP Extension 12000 - 14000
Krishna Nagar 9000 - 17000
Mayur Vihar-III 8000 - 10000
Pandav Nagar 6000 - 8000
Patparganj 10000 - 12000
Preet Vihar 13000 - 17000
Shahadra 6000 - 8000
Shahdra 8000 - 11000
Vasundhra Enclave 9000 - 10000
Delhi North Capital Values Rate/Sq ft (INR) (min / max)
Adarsh Nagar 7000 - 13000
Civil Lines 30000 - 33000
Dr Mukherjee Nagar 21000 - 31000
Gujranwala Town 11000 - 21000
Lawrence Road 13000 - 17000
Model Town 19000 - 22000
Pitampura 20000 - 22000
Rohini 10000 - 14000
Shastri Nagar 12000 - 15000
Vijay Nagar 9000 - 15000
Delhi South Capital Values Rate/Sq ft (INR) (min / max)
Chirag Delhi 30000 - 50000
East of Kailash 23000 - 28000
Greater Kailash 28000 - 31000
Green Park 25000 - 27000
Malviya Nagar 11000 - 17000
Panchsheel Enclave 32000 - 35000
Saket 22000 - 26000
South Extension 30000 - 45000
Vasant Kunj 12000 - 29000
Vasant Vihar 19000 - 24000
Delhi West Capital Values Rate/Sq ft (INR) (min / max)
Jail Road 8000 - 11000
Janak Puri 17000 - 21000
Kirti Nagar 14000 - 18000
Mansarovar Garden 13000 - 19000
Mohan Nagar 4000 - 8000
Moti Nagar 12000 - 14000
Paschim Vihar 13000 - 18000
Punjabi Bagh 25000 - 40000
Rajouri Garden 19000 - 26000
Ramesh Nagar 12000 - 14000
Faridabad Capital Values Rate/Sq ft (INR) (min / max)
Aravali 3000 - 6000
BPTP 2000 - 4000
Charmswood Village 9000 - 12000
Dayal Bagh 5000 - 7000
Green Field 3000 - 5000
Jawahar Colony 4000 - 7000
Sector-20-29 7000 - 9000
Sector-21 6000 - 7000
Sector-30-39 5000 - 9000
Sector-75 3000 - 5000
Gurgaon Capital Values Rate/Sq ft (INR) (min / max)
DLF City Phase-I 18000 - 21000
DLF City Phase-V 15000 - 17000
Golf Course Extn Road 7000 - 10000
MG Road 11000 - 15000
park View City 8000 - 11000
Sector-42 12000 - 17000
Sector-56 6000 - 8000
Sushant Lok-I 12000 - 15000
Udhyog Vihar 6000 - 15000
Vatika City 6000 - 9000
Noida Capital Values Rate/Sq ft (INR) (min / max)
ATS Greens 11000 - 15000
Gautam Budh Nagar 4000 - 8000
Noida Expressway 3000 - 7000
Sector-12 9000 - 12000
Sector-134 3000 - 5000
Sector-137 4000 - 6000
Sector-21 8000 - 10000
Sector-44 18000 - 20000
Sector-50 10000 - 12000
Sector-93 7000 - 8000
Kolkata Capital Values Rate/Sq ft (INR) (min / max)
Airport Road 2000 - 4000
Ajay Nagar 2000 - 6000
Baguihati 2000 - 4000
BT Road 3000 - 5000
Lake Town 4000 - 5000
Nagar Bazaar 3000 - 5000
New Alipore 6000 - 7000
New Town 2000 - 5000
Salt Lake 4000 - 9000
VIP Road 4000 - 6000
Hyderabad Capital Values Rate/Sq ft (INR) (min / max)
Amberpet 2000 - 5000
Ashok Nagar 3000 - 6000
Banjara Hills 8000 - 11000
Bowanpally 2000 - 4000
Dilshukh Nagar 2000 - 3000
Hafizpet 2000 - 5000
Hi-Tech City 4000 - 5000
Kavuri Hills 4000 - 5000
Manikonda 2000 - 5000
Miyapur 2000 - 4000
Bangalore Capital Values Rate/Sq ft (INR) (min / max)
Banaswadi 3000 - 5000
Bannerghatta 3000 - 6000
Defence Colony 8000 - 12000
HBR Layout 3000 - 5000
Hebbal 5000 - 6000
Hennur Road 4000 - 6000
JP Nagar 5000 - 6000
Kormangala 10000 - 12000
KR Puram 3000 - 7000
Queens Road 9000 - 12000
RT Nagar 4000 - 8000
Chennai Capital Values Rate/Sq ft (INR) (min / max)
A Nagar 11000 - 13000
Anna Nagar 10000 - 14000
Kelambakkam 3000 - 4000
Mangadu 3000 - 4000
Mount Road 13000 - 20000
Mylapur 16000 - 19000
Pallikaranai 4000 - 6000
Porur 4000 - 5000
Tambaram 3000 - 5000
Velacheri 7000 - 9000
Pune Capital Values Rate/Sq ft (INR) (min / max)
Aundh 6000 - 8000
Baner 6000 - 8000
Bibewadi 5000 - 6500
Hadapsar 4000 - 6000
Kalyani Nagar 8000 - 10000
Kharadi 4000 - 6000
Law College Road 11000 - 16000
Magarpatta 4000 - 8000
New Sanghvi 3000 - 4000
NIBM Road 4000 - 6000
Pimple Saudagar 4000 - 6000
Pune Satara Road 4000 - 5000
Ravet 3000 - 4000
Talegaon 2000 - 3000
Undri 3000 - 5000
Viman Nagar 5000 - 7000
Vishrantwadi 3000 - 5000
Wakad 4000 - 6000
Yerwada 4000 - 7000
Ahmedabad Capital Values Rate/Sq ft (INR) (min / max)
Bodakdey 5000 - 7000
Gota 2000 - 3000
Maninagar 4000 - 6000
Prahlad Nagar 5000 - 7000
S G Highway 4000 - 6000
Sola 3000 - 5000
Vastrapur 4000 - 6000
Vejalpur 3000 - 5000
Ahmedabad West Capital Values Rate/Sq ft (INR) (min / max)
Bopal 3000 - 5000
Satellite 5000 - 7000
Chandigarh Capital Values Rate/Sq ft (INR) (min / max)
Sector - 50 10000 - 12000
Sector-110 2000 - 4000
Sector-125 3000 - 5000
Sector-126 2000 - 3000
Sector-15 13000 - 17000
Sector-34 11000 - 19000
Sector-38 9000 - 13000
Sector-40 5000 - 9000
Sector-66 5000 - 7000
Sector-85 5000 - 6000
  • Excessive supply in a city or area means less demand

    Most cities have pockets with excessive supply, as well as pockets wherein supply is severely constrained. Despite concern about economic...

  • The metros are still the best places to invest in real estate

    Property prices in many of the metros have skyrocketed. Investors observe these trends, analyse the magnitude and scope of activity,...

  • Major Indian developers are abandoning the MIG sector and concentrating on high-end residential projects because it makes better business sense.

    Most big-banner developers still see sense in constructing mid-income housing projects, since they can construct more volumes. The demand in...

  • There is a 'bubble' in the Indian real estate market, and it will burst soon

    It is certainly true that many units in cities are not proving to be slow movers because of the current...

Tools

Sanjay Dutt

Executive MD-South Asia , Cushman & Wakefield

(11 Jun- 14:00hrs)

Property Investments

A will for a property can be made by a person only when the property is

On rent

Leased

Owned by him

Occupied by him

SUBMIT

CLASSROOM

What are the tax implications of buying a second home?

While explaining tax implications of buying a second home, Naushad Panjwani, senior ED, Knight Frank India said a person can declare one of the two houses as a self occupied property and offer the other house for income under the house property.

Feb 04 2014,17:56

FAQs

Q.
Who is liable to pay Stamp Duty-the buyer or the seller?

The buyer is liable to pay the stamp duty.

Q.
What are the tax implications of sale of any house property, commercial or residential?

For the purpose of Real Estate the Long-term Capital gain would be only if you hold the property for more than three years, then it is subjected to tax @20%. In case you sell the property in less than three years time then it would become short-term Capital Gain and the same is required to be taxed at the prevailing tax schedule of the rate applicable to the assessee depending on his other incomes.

Q.
Does availing of a teaser loan make sense?

Availing of a temporarily discounted home loan without taking a protracted view of one's financial position is not advisable. One should be aware of the manner in which one's finances will be affected after the teaser period is over and real-time lending rates kick in.

Q.
What are the different ways of investing in commercial property?

There are three ways to invest in commercial real estate - directly buy office space from a developer, buy shares of a commercial developer from the stock market, or invest in a real estate fund focused on commercial real estate. As the quantum of investment is usually huge, the prospective buyer needs to take more informed decisions.

Q.
What exactly do we mean by a Free Hold flat? What are the advantages and disadvantages, if any?

A freehold property flat is one where there is a whole and sole owner/s, ownership is full and unconditional and there is no lessor / lessee involved.

Q.
Which are the instruments that attract the payment of Stamp Duty?

The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.

Q.
Is there any way by which I can claim exemption from tax on capital gain?

Several options are available for saving capital gains. For example, in the first place invest in a residential house property or a flat to make investment so as to see that capital gains are exempted. Likewise, if a person were to make the investment in REC or NHAI bonds then also he enjoys complete exemption from the long-term capital gain payable by him in respect of capital gains due.

Q.
What are the risks associated in buying a flat on Power Of Attorney (POA) basis?

Purchasing a flat on a POA basis is not permitted.

Q.
What is meant by the market value of the property and is Stamp Duty payable on the market value of the property or on consideration as stated in the agreement?

Market value of property is the price at which there is a willing buyer and a seller agreeing to the transfer the property at an arm's length transaction. Stamp duty is levied on the ready reckoner rate or the agreement price, whichever is higher.

Q.
What are all the important documents one should check before buying any property?

While purchasing a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout title search, etc.

Q.
What are the possible returns of investing in commercial versus residential property on rent?

The rental yield for commercial property is usually 9-12%. In contrast, the yield for residential property is much lower at 3-4%.

Q.
What is the difference between built up area, super built up area, and carpet area?

Carpet Area: Carpet Area of a property is defined as the net usable area from the inner sides of one wall to another. Carpet Area comprises of the carpet area of the demised premise, toilet areas within the demised premises, AHU room/s within the demised premises and dedicated service areas for the demised premises. Built-up Area (BUA): BUA consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc. Super Built-up Area (SBUA): SBUA consists of BUA and the proportionate area under the common spaces of a building like lobby, staircases and elevators.

Q.
What are the risks involved in residential property investment?

The risk factor in real estate investment lies in the possibility of buying at a higher price and having to sell at a lower one in a depressed market. It is also risky to try time the market to discern the 'best' time to invest. Much like in the stock market, it is impossible to predict the point of lowest ebb in the real estate market. The danger in delaying investment too long is two-fold - firstly, one may lose out on the best properties, and secondly, the market may pick up ahead of one's predictions, meaning that the lower rates may no longer be available.

Q.
What are the factors to keep in mind while investing in residential property for capital appreciation?

The fundamental aims of any residential property investment should be to maximise yield as well as capital gains and to reduce the risk as far as possible. To illustrate, renovating and embellishing a property makes it eligible for a higher rent, which means maximised yield. Property investment aimed at capital gains involves buying real estate cheap and selling it at a higher rate, thereby maximising one's ROI. An astute investor will also buy a well-located property at a high price if the rental market is booming, since this makes it possible to rent it out for as long as it takes price to rise again.

Q.
Is a POA revocable?

Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.

Q.
In whose name are the stamps required to be purchased?

The stamps are required to be purchased in the name of any one of the executors to the Instrument.

Q.
Does it make sense to buy a home now?

That depends on one's actual objectives and level of need. If one is a first-time home buyer, attempting to time the market makes little sense. Any correction will be a brief phenomenon, and prices inevitably rise again. This is a risky game that only investors should play.

Glossary

Abatement notice

A notice served on the owner(s) or occupier(s) of a property from which a private nuisance arises, warning them of the intention to enter on the land in order to abate the nuisance.

Absolute title

The right of ownership of a mortgage deed, which gives the right, in certain specified circumstances, to demand repayment in full, of the outstanding debt than the due date. Or a clause in a deed or contract, which provides for the early termination of an exciting interest in land, in certain specified circumstances, thereby advancing the future interest.

Agreement for lease/sale

A contract to enter into a lease (or sale), which in order to be enforceable either must be evidenced in writing and signed by the person against whom action is taken for the breach of the alleged contract and there must be a sufficient act of part performance.

Alternative user value

The value of land and buildings which reflects a prospective use which is different from that of the current use.

Anchor tenant

One or more department or variety chainstores, or supermarkets, introduced into a shopping centre in key positions to attract the shopping public into the centre for the purpose of encouraging other retailers to lease shops en route. The larger the developments the more anchors required.

Asset valuation

In the property market this expression is applied to the valuation of land and buildings or plant and machinery. The term is often used to describe an expert opinion of the worth of a property which may be incorporated into company accounts, where the ownership of the asset is not necessarily to be transferred but the valuation is required for the company takeovers, share flotation or mortgages.

Assignment

The transfer of a property interest, especially a lease, from one party to another.

Atrium

An entrance hall of a building, often rising through a number of storeys and containing lifts, reception areas and plants. Originally the hall or chief apartment of a Roman house.

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  • Excessive supply in a city or area means less demand

    Most cities have pockets with excessive supply, as well as pockets wherein supply is severely constrained. Despite concern about economic growth and high inflation, areas with excessive supply will continue to see demand, and therefore price appreciation. As long as an area is seeing infrastructure development, it remains a safe investment bet.

  • The metros are still the best places to invest in real estate

    Property prices in many of the metros have skyrocketed. Investors observe these trends, analyse the magnitude and scope of activity, and identify one or the other new town as the next coming thing. A fundamental real estate investment mantra is that emerging localities are preferable to established and often saturated ones. Established areas eventually reach a peak in terms of appreciation potential, after which the growth rate either slows down or stagnates. Moreover, there is little scope for new market drivers such as malls to find a place in saturated localities – meanwhile, prices remain high. This is not the best of scenarios from an investment point of view, since optimal investment requires low entry levels and appreciable growth within a realistic timeframe. Therefore, as one or the other destination reaches its peak potential on all these counts, new ones come into the limelight.

  • Major Indian developers are abandoning the MIG sector and concentrating on high-end residential projects because it makes better business sense.

    Most big-banner developers still see sense in constructing mid-income housing projects, since they can construct more volumes. The demand in terms of units is phenomenal and developers getting into this segment can build for years to come. They have the assurance of sure-shot absorption, as well. Most major Indian developers are ‘not’ shifting from affordable to high-end housing -- only branching out. While they get into middle-segment housing, they continue to build high-end projects.

  • There is a 'bubble' in the Indian real estate market, and it will burst soon

    It is certainly true that many units in cities are not proving to be slow movers because of the current price points, and developers do need to re-calibrate their bottomlines while still remaining viable as businesses. Since the only way to catalyse healthier sales at this point is offering buyers tangible financial relief, a reduction in rates will work best. In fact, new projects are already being launched at lower rates and good deals are available at the negotiation table for serious buyers. In other words, we are not looking at a bubble that is likely to burst, but at a gradual and perceptible relaxation on hard pricing norms.