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Investing in Property

Questions Answered (14)

I would like to buy an apartment in Bangalore for around 40 Lkhs. But the water scarcity in the city is alarming should this be taken into account while buying the apt. or is it better to invest in a plot.

Aditya Verma

CEO & Business- Head
Makaan.com

Water is a very basic human requirement and needs to be taken into consideration if anyone would like to stay at a place for next 20-30 years. I am sure the local government would have the water table level for various locations in the city. If you are unable to find the relevant government department that has this information, you can look at online services that show the water levels of cities on a map. Among the areas that you finally shortlist, prefer areas that have adequate water table. It would be helpful both for investing and self use.

hi Aditya - i am selling my property in gurgaon over which i am getting an additional premium of Rs. 2.50 lakhs. the buyer is ready to pay this additional premium amount of Rs 2.50 lakhs through DD in my name.. as this amount is going to be reflected in my bank statement , is it liable for income tax and how much income tax , do i need to pay for receiving premium amount of Rs 2.50 lakhs.. please advise

Aditya Verma

CEO & Business- Head
Makaan.com

Yes, you will have to show this in your current year income. If you do not invest the proceed in another property, the premium will be considered as short term capital gains and income tax slab equivalent to your income will be applicable.

I would like to know about a project named " Navyangan " Intergrated Township in Pirangut - New Pune. Is it a good investment option ? or can you give me a better option in pune?

Aditya Verma

CEO & Business- Head
Makaan.com

I am sorry, as a policy we do not comment on any specific Builder / Project in public. However, I would urge you to check the past track record of the builder before making any investment. The property prices in Pune varies from 4000 to 6000 psf on an average depending on the location and the reputation of the developer. There are areas on the outskirts that may come in at a cheaper arte. In the given market situation, you can expect an appreciation of 5-8% per annum in the overall residential property market in Pune.

I wish to make an investemnt of around 15-20 Lakhs from a long term ( 10-15 year) horizon. I am residing in Delhi and loactions like NCR,Jaipur, Chandigarh shall be preferable. I already have bought a 2 BHK flat last year in Noida Extension. Maybe this time I would like to consider a plot. Request you to kindly guide on what are my options.

Aditya Verma

CEO & Business- Head
Makaan.com

If your preference is for plot, you can get good options in the Noida area specifically along Sector 150, Sector 166, Noida Extension, Sector 88

whats the paper check when we buy any home under of any project.

Aditya Verma

CEO & Business- Head
Makaan.com

There are various documents that are to be checked while buying a property namely, purchase agreement, sale deed etc. Makaan.com keeps informing its users about such legal check points through its knowledge website, MakaanIQ and the best three articles for you on the topic are as follows:o Purchase agreement and its importance while buying a homeo Home buyers pay attention to paperwork!o Paper work involved while purchase of a property.

I am looking to book 2 BHK in Rosa Royale, Thane project. BUilder is Sai uma corporation. need experts suggeestion about project as well as builder reputation

Aditya Verma

CEO & Business- Head
Makaan.com

Sorry, as a policy we do not comment on any builder or developer; however, Ill prompt you to check the background and the reputation of the builder by looking at his/her previous projects, their possession dates, the quality of the projects etc. through the residential society and its occupants.

I have seen a property (new project ) at Kolkata,Rajarhut . Bishnupur area . The project is Mongolia prestige . Project comple will be by 2016 ,Dec. The rate asking is 2300Rs/ft2 . What is the future growth of this area on investment point of view . D. PAL. Pune

Aditya Verma

CEO & Business- Head
Makaan.com

Rajarhut seems to be getting a new lease of life as there is current stability in the property market. In the next 10 years, Rajarhut will be the place for growth. Its proximity to the airport adds to its value. A lot of new developers are exploring into the area. For further details, you can keep a constant check on Price trends at Rajarhut, Kolkata

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Property rates in India

Rates powered by:

Note
Central Suburbs Capital Values Rate/Sq ft (INR) (min / max)
Ambernath 2750 - 3800
Badlapur 2600 - 3400
Bhandup 9750 - 13000
Byculla 13000 - 22000
Chembur 10000 - 16500
Dadar 20000 - 32000
Dombivali 5000 - 6000
Ghatkopar East 9500 - 18000
Ghatkopar West 8500 - 13000
Kalyan 4500 - 5500
Kanjurmarg 8500 - 10500
Kings Circle 14000 - 22000
Kurla 9000 - 14000
Mulund 11500 - 14000
Powai 9900 - 16500
Sion 14500 - 22000
Thane 6800 - 12500
Vikhroli 8500 - 12000
Wadala 13500 - 18500
Navi Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Airoli 6500 - 7600
CBD Belapur 5500 - 8000
Kalamboli 3500 - 5000
Kharghar 5800 - 9000
Kopar Khairane 6000 - 7500
Nerul 6000 - 10500
Panvel 3600 - 6400
Sanpada 7000 - 9500
Vashi 8500 - 15500
South Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Altamount Road 45000 - 72000
Bombay Central 20500 - 32000
Churchgate 32000 - 50000
Colaba 33000 - 48000
Cuffe Parade 35000 - 71000
Kemps Corner 38000 - 58000
Lower Parel 21000 - 38000
Mahalaxmi 22000 - 42000
Malabar Hills 60000 - 76000
Marine Drive 45000 - 70000
Nariman Point 58000 - 92000
Nepeansea Road 47000 - 75000
Peddar Road 32000 - 56000
Prabhadevi 26000 - 44000
Shivaji Park 18000 - 35000
Walkeshwar 38000 - 70000
Warden Road 35000 - 60000
Worli 27000 - 49000
Western Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Andheri East 13000 - 16000
Andheri West 16000 - 19500
Bandra East 18000 - 27000
Bandra West 26000 - 45000
Borivali East 9500 - 12500
Borivali West 11600 - 13500
Goregoan East 11500 - 13000
Goregoan West 12500 - 15500
Kandivali East 10000 - 13000
Kandivali West 11000 - 14000
Khar East 16000 - 21000
Khar West 23000 - 40000
Malad East 11000 - 13000
Malad West 12000 - 15000
Mira Road East 6200 - 7500
Naigon East 3800 - 4100
Santacruz East 13000 - 23500
Santacruz West 22000 - 32000
Vasai 5000 - 6000
Vile Parle East 19000 - 23500
Vile Parle West 22000 - 26000
Virar 4500 - 5500
NCR Capital Values Rate/Sq ft (INR) (min / max)
Anand Niketan 23000 - 37000
Chanakyapuri 58000 - 68000
Defence Colony 25000 - 34000
Dwarka 7500 - 9100
East Delhi (Mayur Vihar, Preet Vihar, IP extention) 5500 - 8700
Friends Colony (W) 22000 - 35000
Golf Links 55000 - 65000
Greater kailash I & II 26000 - 34000
Green Park 20000 - 26000
Janakpuri 7550 - 9500
Jor Bagh 58000 - 68000
New Friends Colony 19000 - 31000
Rohini / Pitampura 8700 - 11200
Vasant Kunj 16000 - 20000
Ghaziabad Capital Values Rate/Sq ft (INR) (min / max)
Indrapuram - Ghaziabad 3000 - 4300
NH- 24 - Ghaziabad 2200 - 2600
Old Ghaziabad 1850 - 5750
Vaishali / Vasundra- Ghaziabad 3300 - 4500
Gurgaon Capital Values Rate/Sq ft (INR) (min / max)
DLF Phase 1-4 / Shushant Lok 6000 - 14500
Golf Course 52/ 56/58 and 61- Gurn 6000 - 14000
Golf Course Road / Sohnar Road - Gur 6000 - 8500
Shushant Lok 6000 - 14500
Sohnar Road 6000 - 8500
Noida Capital Values Rate/Sq ft (INR) (min / max)
Express Highway - Noida 3400 - 6500
Golf Course 52/ 56/58 and 61- Gurn 6000 - 14000
Golf Course Road / Sohnar Road - Gur 6000 - 8500
Greater Noida 2700 - 4500
Greater Noida (Grade A Only) 3150 - 7500
Faridabad Capital Values Rate/Sq ft (INR) (min / max)
Anand Niketan 23000 - 37000
Dwarka 7500 - 9100
Friends Colony (W) 22000 - 35000
Green Park 20000 - 26000
Janakpuri 7550 - 9500
Nehar Par- Faridabad 2200 - 3300
New Friends Colony 19000 - 31000
NH - 2 Faridabad 3700 - 5200
Old Faridabad 4200 - 6000
Suraj Kund 4000 - 5600
Vasant Kunj 16000 - 20000
New Delhi Capital Values Rate/Sq ft (INR) (min / max)
Chanakyapuri 58000 - 68000
Defence Colony 25000 - 34000
East Delhi (Mayur Vihar, Preet Vihar, IP extention) 5500 - 8700
Golf Links 55000 - 65000
Jor Bagh 58000 - 68000
Kolkata Capital Values Rate/Sq ft (INR) (min / max)
Alipore 10000 - 15000
Ballygunge 12000 - 17000
Behala 2450 - 3500
New Town Rajarhat 2200 - 4500
Salt Lake 4000 - 5500
South of Park St. 4500 - 6500
South of Park Street 4500 - 6500
Hyderabad Capital Values Rate/Sq ft (INR) (min / max)
Banjara Hills 6500 - 9500
Begumpet 3800 - 5500
Gachibowli 3000 - 4400
Jubilee Hills 6000 - 7600
Kukatpally 3000 - 3850
Madhapur 3200 - 4600
Miyapur 2400 - 3400
Secunderabad 3500 - 4000
Srinagar Colony 5000 - 5500
Uppal 2000 - 2400
Bangalore Capital Values Rate/Sq ft (INR) (min / max)
Banaswadi 4500 - 7500
Basavangudi 6000 - 10300
Bellary Road 4000 - 6600
BTM Layout 5000 - 8100
Indiranagar 8000 - 12200
J.P. Nagar 5000 - 9500
Koramangala 7000 - 10500
M.G. Road 16000 - 25000
Malleshwaram 7600 - 12000
Rajaji Nagar 5000 - 8500
Whitefield 3500 - 6000
Chennai Capital Values Rate/Sq ft (INR) (min / max)
Anna Nagar 11000 - 14000
Ashok Nagar 9000 - 11000
Boat Club 22000 - 26000
Egmore/Kilpauk 9000 - 14000
Guindy 6000 - 8000
Moggapair 5000 - 6800
Poes Garden 20000 - 25000
R A Puram 13000 - 18000
T Nagar 10000 - 14000
Vadapalani 6000 - 8000
Velachery- OMR Road 6000 - 8000
Pune Capital Values Rate/Sq ft (INR) (min / max)
Airport Road 3500 - 4500
Akurdi 3000 - 3600
Ambegaon 3200 - 5150
Aundh 5500 - 8000
Balewadi 4800 - 5500
Baner 5000 - 7500
Bibwewadi 3200 - 5200
Boat Club Road 9000 - 15000
BT Kawde Road 4200 - 9000
Chakan 2200 - 2500
Chikhli 2200 - 3350
Chinchwad 3150 - 4400
Dapodi 3300 - 3550
Deccan Gymkhana 6500 - 10000
Dehu Road 2300 - 2800
Dhole Patil Road 9000 - 15000
Fatima Nagar 4000 - 6500
Hadapsar 45000 - 8000
Hinjewadi 4600 - 5200
Kalyaninagar 8000 - 12000
Karve Road 4500 - 6300
Khadki 3300 - 4500
Kharadi 4000 - 5500
Kondhwa 3600 - 6050
Koregaon Park 10000 - 15000
Kothrud 5100 - 8000
M G Road 4500 - 7100
Magarpatta 3400 - 8000
Market Yard 4100 - 6000
Model Colony 6600 - 11000
Moshi 2600 - 3320
Nagar Road 4000 - 7500
NIBM 3600 - 6050
Nigdi Pradhikaran 2550 - 3500
Pashan 5000 - 7500
Pimple Nilakh 4500 - 5500
Pimple Saudagar 4500 - 5500
Pimpri 3250 - 3750
Ravet 3050 - 3500
Sahakar Nagar 6500 - 8000
Shivajinagar 6600 - 11000
Sinhgadh road 3250 - 6200
Somatne Phata 2200 - 2800
Sopan Baug 4200 - 9000
Talegaon 2400 - 3250
Talwade 2150 - 2500
Tathawade 3600 - 4200
Thergaon 2700 - 3450
Undri 3350 - 4200
Viman Nagar 4000 - 7500
Vishrantwadi 3500 - 4500
Wagholi 2700 - 3500
Wakad 3800 - 4400
Wanowrie 4000 - 6500
Yerwada 3500 - 4500
  • 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

Ganesh Vasudevan

CEO , IndiaProperty.com

(06 May- 14:00hrs)

Property Prices

A person who makes illegal claim of property or land that he does not hold is known as?

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Squatter

Plotter

Thrift

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Types of documents to check before buying property

Naushad Panjwani, Sr ED ,Knight Frank India explains what are all the important documents one should check before buying any property.

Feb 03 2014,19:19

FAQs

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

Purchasing a flat on a POA basis is not permitted.

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 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.
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.
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.
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 a POA revocable?

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

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.

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 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 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.
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.

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.