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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

Rates powered by:

Note
Central Suburbs Capital Values Rate/Sq ft (INR) (min / max)
Badlapur 2800 - 3500
Dombivali 4500 - 6000
Ghatkopar 12000 - 21000
Ghodbunder Road 6000 - 10000
Mulund 10000 - 14000
Naupada 13000 - 18000
Powai 13000 - 20000
Navi Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Kharghar 6500 - 9500
Panvel 4500 - 6500
Vashi 10000 - 15000
South Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Colaba 33000 - 48000
Cuffe Parade 35000 - 71000
Tardeo 40000 - 60000
Western Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Andheri 14000 - 21000
Bandra West 40000 - 60000
Borivali 11000 - 15000
Dahisar 8000 - 10000
Goregoan 13000 - 15000
Mira Road East 5500 - 7500
Virar 4500 - 5500
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
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
NCR Capital Values Rate/Sq ft (INR) (min / max)
Chanakyapuri 58000 - 68000
East Delhi (Mayur Vihar, Preet Vihar, IP extention) 5500 - 8700
Golf Links 55000 - 65000
Greater Kailash I & II 26000 - 34000
Jor Bagh 58000 - 68000
Rohini / Pitampura 8700 - 11200
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 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
Fatima Nagar 4000 - 6500
Hadapsar 4500 - 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
Magarpatta 3400 - 8000
Market Yard 4100 - 6000
Model Colony 6600 - 11000
Moshi 2600 - 3320
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
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...

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Which plant according to Vastu should be avoided near or inside the house?

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

Purchasing a flat on a POA basis is not permitted.

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 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 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.
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.

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

The buyer is liable to pay the stamp duty.

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.