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Investing in Property

Questions Answered (17)

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

hi, how would you rate kundli, greater Gurgaon (Sohna) and dwarka express way from investment perspective with a 10 year time horizon.

Aditya Verma

CEO & Business- Head
Makaan.com

I see a good future for Sohna compared with Dwarka expressway as it has been planned very well. There is a good mix of residential and commercial activity which is critical for the success of any region. The corridor starting from Golf Course extension towards Badshapur and all the way to Sohna is at a stage that Gurgaon was about 7-8 years back. So between the two options I will prefer Sohna. Good luck for your investment :). Dwarka Expressway - Dwarka Expressway has come up essentially as a residential area with very little commercial activity. Typically such areas have limited grown potential.

Hello sir , 1)Want to ask is there gone be a price correction in real estate market in coming months? if yes what would be the margin of it 2)I am looking for 1rk in goregaon east or 1bhk in mira road east around 50lakhs what do u think is better option in terms of growth maximum i can stretch my self with 60 lac including all after sale expenses.

Aditya Verma

CEO & Business- Head
Makaan.com

Real estate sector went thru a challenging 1 ˝ years with high input cost, low transaction and unsold inventory. These factors kept a lid on the price appreciation. Many cities in India did not experience any significant price rise. With the new government coming in, we can hope for a sentiment revival and increase in transaction. I do not foresee a price correction in the coming months.

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

more (10)

Property rates in India

Note
Central Suburbs Capital Values Rate/Sq ft (INR) (min / max)
Aajiwali 3000 - 5000
Ambernath 3000 - 5000
Badlapur 1000 - 3000
Bhandup (West) 11000 - 13000
Chembur (East) 15000 - 17000
Chembur (West) 11000 - 14000
Dombivali (East) 4000 - 6000
Ghatkopar 13000 - 15000
Heeranandani Gardens Estate - Powai 25000 - 30000
Hiranandani Gardens Estate - Powai 25000 - 30000
Kalyan (East) 2000 - 4000
Kalyan( West) 3000 - 5000
Kanjur Marg (east) 11000 - 14000
Karjat 1000 - 3000
Khandala 8000 - 10000
Kharegaon 5000 - 7000
King Circle 17000 - 28000
Kurla 12000 - 15000
LBS Marg 12000 - 15000
Lonavala 3000 - 5000
Mulund (East) 11000 - 14000
Mulund (West) 11000 - 14000
Mumbai Nasik Highway 3000 - 6000
Nahur 11000 - 14000
Powai 15000 - 17000
Senapati Bhagath Singh Road 3000 - 5000
Sion (East) 18000 - 21000
Sion (West) 17000 - 22000
Tilak Nagar 12000 - 13000
Ulhasnagar 3000 - 5000
Vikhroli 11000 - 14000
Mumbai beyond Thane Capital Values Rate/Sq ft (INR) (min / max)
Ambivili 3000 - 5000
Bhiwandi 2000 - 4000
Kalwa 2000 - 4000
Kalyan(East) 8000 - 10000
Khopoli 3000 - 5000
Neral 4000 - 6000
Mumbai-Andheri Dahisar Capital Values Rate/Sq ft (INR) (min / max)
4 Bunglows 17000 - 28000
7 Bunglows 13000 - 23000
Chandivali 10000 - 15000
Charkop 11000 - 13000
Malad (East) 12000 - 14000
Oshiwara 15000 - 20000
Versova 12000 - 24000
Navi Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Airoli 4000 - 8000
Belapur 6000 - 9000
Ghansoli 6000 - 8000
Kalamboli 4000 - 6000
Kamothe 4000 - 6000
Khandeshwar 5000 - 7000
Nerul 7000 - 10000
Palm Beach Road 12000 - 15000
Panvel 3000 - 6000
Roadpalli 5000 - 6000
Sanpada 8000 - 10000
Sea Woods 8000 - 10000
Taloja 3000 - 5000
Ulwe 3000 - 6000
Uran 3000 - 6000
Vashi 9000 - 12000
South Mumbai Capital Values Rate/Sq ft (INR) (min / max)
Altamount Road 63000 - 69000
Breach Candy 60000 - 64000
Chowpathy 48000 - 58000
Churchgate 62000 - 73000
Colaba 42000 - 46000
Cuffe Parade 67000 - 69000
Dadar(East) 32000 - 34000
Dadar(West) 29000 - 32000
Lower Parel 32000 - 34000
Mahalaxmi 38000 - 40000
Malabar Hills 68000 - 75000
Matunga 45000 - 49000
Mumbai Central 23000 - 49000
Napean Sea Road 66000 - 74000
Parel 26000 - 34000
Prabhadevi 37000 - 39000
Tardeo 41000 - 49000
Worli 36000 - 41000
Western Suburbs Capital Values Rate/Sq ft (INR) (min / max)
Andheri (West) 18000 - 20000
Andheri(East) 15000 - 17000
Bevarly Park 5000 - 7000
Bhayander (East) 5000 - 6000
Bhayander (West) 3000 - 5000
Boisar 1000 - 3000
Borivali (East) 11000 - 13000
Borivali (West) 10000 - 14000
Dahisar 4000 - 8000
Dahisar (East) 7000 - 9000
Goregaon (East) 13000 - 17000
Goregaon (West) 12000 - 14000
Kandivali (East) 12000 - 14000
Kandiwali (West) 11000 - 12000
Malad(West) 9000 - 14000
Mira Road 5000 - 7000
Naigaon 1000 - 4000
Nala Sopara (Eastt) 3000 - 5000
Nalasopara (West) 3000 - 5000
Nallasopara 1200 - 4000
Palghar 5000 - 7000
Poonam Nagar 6000 - 8000
Shanti Nagar 7000 - 9000
Shrishti 6000 - 9000
Vasai Road 1200 - 4000
Virar 1000 - 3000
Delhi East Capital Values Rate/Sq ft (INR) (min / max)
Anand Vihar 27000 - 43000
Dilshad Garden 7000 - 9000
Ganesh Nagar 5000 - 8000
IP Extension 12000 - 14000
Karkardooma 5000 - 10000
Krishna Nagar 9000 - 17000
Lakshmi Nagar 14000 - 16000
Mayur Vihar-I 8000 - 12000
Mayur Vihar-II 8000 - 10000
Mayur Vihar-III 8000 - 10000
Pandav Nagar 6000 - 8000
Patparganj 10000 - 12000
Preet Vihar 13000 - 17000
Shahadra 6000 - 8000
Shahdra 8000 - 11000
Shalimar Garden 5000 - 7000
Vasundhra Enclave 9000 - 10000
Vivek Vihar 10000 - 12000
Delhi North Capital Values Rate/Sq ft (INR) (min / max)
Adarsh Nagar 7000 - 13000
Ashok Vihar 20000 - 23000
Burari 3000 - 9000
Civil Lines 30000 - 33000
Delhi University 10000 - 13000
Derawal Nagar 13000 - 15000
Dr Mukherjee Nagar 21000 - 31000
Gujranwala Town 11000 - 21000
Gulabi Bagh 13000 - 20000
Hudson lane 14000 - 18000
Lawrence Road 13000 - 17000
Madhuban Chowk 11000 - 12000
Model Town 19000 - 22000
Narela 13000 - 15000
Pitampura 20000 - 22000
Prashant Vihar 11000 - 21000
Rani Bagh 10000 - 12000
Rohini 10000 - 14000
Sant Nagar 5000 - 7000
Shalimar Bagh 9000 - 15000
Shastri Nagar 12000 - 15000
Vijay Nagar 9000 - 15000
Wazirabad 8000 - 10000
Wazirpur 20000 - 30000
Delhi South Capital Values Rate/Sq ft (INR) (min / max)
Alaknanda 13000 - 15000
Anand Lok 39000 - 51000
Chattarpur 4000 - 8000
Chirag Delhi 30000 - 50000
CR Park 16000 - 19000
East of Kailash 23000 - 28000
Greater Kailash 28000 - 31000
Green Park 25000 - 27000
Kalkaji 15000 - 21000
Ladosarai 28000 - 31000
Lajpat Nagar 12000 - 29000
Malviya Nagar 11000 - 15000
Munirka 12000 - 29000
New Friennds Colony 28000 - 33000
Noida Extension 4000 - 7000
Okhla 4000 - 8000
Pamposh Enclave 23000 - 41000
Panchsheel Enclave 32000 - 35000
Saket 22000 - 26000
Sector-13 13000 - 16000
Shivalik 23000 - 28000
South Extension 30000 - 45000
Taj Expressway 2000 - 4000
Vasant Kunj 12000 - 29000
Vasant Vihar 19000 - 24000
Yamuna Expressway 2500 - 3500
Delhi West Capital Values Rate/Sq ft (INR) (min / max)
Bali Nagar 5000 - 14000
Hari Nagar 8000 - 11000
Inderpuri 14000 - 23000
Jail Road 8000 - 11000
Janak Puri 17000 - 21000
Kirti Nagar 14000 - 18000
Mahavir Enclave 6000 - 10000
Mansarovar Garden 13000 - 19000
Mohan Garden 4000 - 8000
Mohan Nagar 4000 - 8000
Moti Nagar 12000 - 14000
Mundka 4000 - 9000
Naraina 19000 - 25000
Paschim Vihar 13000 - 18000
Patel Nagar 12000 - 19000
Punjabi Bagh 13000 - 18000
Rajinder Nagar 13000 - 30000
Rajouri Garden 19000 - 26000
Ramesh Nagar 12000 - 14000
Subhash Nagar 11000 - 14000
Uttam Nagar 5000 - 8000
Vikas Puri 12000 - 14000
Faridabad Capital Values Rate/Sq ft (INR) (min / max)
Aravali 3000 - 6000
Ashoka Enclave 6000 - 8000
BPTP 2000 - 4000
Charmswood Village 9000 - 12000
Dayal Bagh 5000 - 7000
Green Field 3000 - 5000
Jawahar Colony 4000 - 7000
Nahar Par 3000 - 5000
NIT 8000 - 10000
Palwal 2000 - 3000
Sainik Colony 5000 - 7000
Sector 10 - 20 7000 - 10000
Sector 20 - 29 7000 - 10000
Sector 30 - 39 7000 - 10000
Sector 40 – 49 5000 - 10000
Sector-20-29 7000 - 9000
Sector-21 8000 - 10000
Sector-30-39 5000 - 9000
Sector-56 2000 - 4000
Sector-65 3000 - 5000
Sector-75 4000 - 6000
Sector-80-89 3000 - 4000
Spring Field 2000 - 5000
Suraj Kund 7000 - 9000
Gurgaon Capital Values Rate/Sq ft (INR) (min / max)
DLF City Phase-I 16000 - 18000
DLF City Phase-II 16000 - 18000
DLF City Phase-IV 12000 - 15000
DLF City Phase-V 15000 - 17000
Dwarka Expressway Gurgaom 4000 - 7000
Golf Course Extn Road 7000 - 10000
Golf Course Road 13000 - 15000
MG Road 11000 - 15000
Nirvana Country 7000 - 10000
Palam Vihar 7000 - 9000
park View City 8000 - 11000
Sector-10 6000 - 9000
Sector-18 4000 - 7000
Sector-27 12000 - 14000
Sector-37 4000 - 5000
Sector-42 12000 - 17000
Sector-56 6000 - 8000
Sector-92 3000 - 5000
Sohna Road 3000 - 7000
Sun City 12000 - 15000
Sushant Lok-I 12000 - 15000
Sushant Lok-II 9000 - 11000
Udhyog Vihar 6000 - 15000
Vatika City 6000 - 9000
Noida Capital Values Rate/Sq ft (INR) (min / max)
Alpha-I (Gr. Noida) 4000 - 5000
ATS Greens 8000 - 10000
Chi – Phi Sector 3000 - 4000
Delta-II (Gr. Noida) 3000 - 6000
Gautam Budh Nagar 4000 - 8000
Knowledge Park 5 (Gr. Noida) 2000 - 4000
Noida Expressway 3000 - 7000
NRI City Omaxe (Gr. Noida) 4000 - 7000
Sector 36 (Gr. Noida) 4000 - 6000
Sector-1 2000 - 5000
Sector-107 5000 - 7000
Sector-12 8000 - 12000
Sector-134 3000 - 5000
Sector-137 4000 - 6000
Sector-20 14000 - 17000
Sector-31 14000 - 16000
Sector-44 18000 - 20000
Sector-45 6000 - 7000
Sector-50 9000 - 11000
Sector-61 8000 - 10000
Sector-93 7000 - 8000
Sigma-4 2000 - 4000
Kolkata Capital Values Rate/Sq ft (INR) (min / max)
Airport Road 2000 - 4000
Ajay Nagar 2000 - 6000
Bangur 2000 - 3000
BT Road 3000 - 5000
Kestopur 2000 - 3000
Madhyam Gram 3000 - 4000
Nagar Bazaar 3000 - 5000
Santoshpur 4000 - 7000
Tagore Park 3000 - 5000
Tangra 3000 - 6000
VIP Road 1000 - 3000
Kolkata East Capital Values Rate/Sq ft (INR) (min / max)
EM Bypass 4000 - 7000
New Town 4000 - 5000
Rajarhat 2000 - 3000
Kolkata North Capital Values Rate/Sq ft (INR) (min / max)
Baguiati 1500 - 4000
Bansdroni 3000 - 4000
Kasba 4000 - 6000
Lake Town 4000 - 5000
Salt Lake 4000 - 9000
Tollygunge 5000 - 6000
Kolkata South Capital Values Rate/Sq ft (INR) (min / max)
Garia 2000 - 4000
Narendrapur 1000 - 4000
New Alipore 6000 - 9000
Hyderabad Capital Values Rate/Sq ft (INR) (min / max)
Amberpet 1000 - 3000
Ashok Nagar 3000 - 6000
Attapur Ring Road 3000 - 4000
Banjara Hills 7000 - 9000
Bowanpally 2000 - 3000
Chanda Nagar 2000 - 4000
Dilshukh Nagar 2000 - 3000
Dilsukh Nagar 2000 - 4000
Gachibowli 1500 - 5000
Hafizpet 2000 - 5000
Hi-Tech City 2000 - 5000
JNTU 3000 - 5000
Kavuri Hills 4000 - 5000
Kondapur 2000 - 5000
Kukattpally 3000 - 5000
LB Nagar 2000 - 5000
Manikonda 2500 - 6000
Miyapur 2000 - 3000
Nalagandala 3000 - 5000
Nizampet 1500 - 3000
Pragathi Nagar 2000 - 5000
Sainikpuri 2000 - 3000
Sanath Nagar 4000 - 6000
Shamshabad 2000 - 3000
Uppal Mandal 2000 - 3000
Bangalore Capital Values Rate/Sq ft (INR) (min / max)
Bannerghatta Road 3000 - 6000
Horamavu 2000 - 3000
Infantry Road 17000 - 27000
Kanakpura Road 1000 - 2000
Marathahali 5000 - 8000
Uttarahalli 3000 - 4000
Whitefield 8000 - 10000
Yelahanka 3000 - 4000
Bangalore East Capital Values Rate/Sq ft (INR) (min / max)
Banaswadi 3000 - 5000
Defence Colony 8000 - 12000
KR Puram 3000 - 7000
Marathalli 3000 - 5000
Sarjapur Road 2000 - 3000
Bangalore North Capital Values Rate/Sq ft (INR) (min / max)
Devanhali Road 4000 - 6000
Hebbal 5000 - 6000
Hennur Road 4000 - 6000
RT Nagar 4000 - 8000
Bangalore South Capital Values Rate/Sq ft (INR) (min / max)
Bannerghatta 3000 - 6000
Electronic City 3000 - 6000
HBR Layout 3000 - 5000
HSR Layout 6000 - 7000
JP Nagar 5000 - 6000
Queens Road 9000 - 12000
Bangalore South-East Capital Values Rate/Sq ft (INR) (min / max)
Kormangala 10000 - 12000
Chennai Capital Values Rate/Sq ft (INR) (min / max)
A Nagar 11000 - 13000
Anna Nagar 13000 - 15000
Guduvancheri 1000 - 2000
Kolathur 3000 - 5000
Mount Road 13000 - 20000
Mylapur 16000 - 19000
Navalur 3000 - 4000
Oragadam 1000 - 3000
Palikaranai 2000 - 6000
Pallavaram 2000 - 4000
Chennai North Capital Values Rate/Sq ft (INR) (min / max)
Ambattur 2000 - 5000
Chennai South Capital Values Rate/Sq ft (INR) (min / max)
Kelambakkam 3000 - 4000
Mangadu 3000 - 4000
Medavakkam 4000 - 5000
OMR 1000 - 2000
Pallikaranai 4000 - 6000
T. Nagar 16000 - 19000
Tambaram 2000 - 4000
Velacheri 7000 - 8000
Chennai West Capital Values Rate/Sq ft (INR) (min / max)
Porur 4000 - 5000
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)
Ambala Highway 3000 - 4000
Dera Bassi 2000 - 3000
Kharar Road 2000 - 3000
Mata Gujri Enclave 2000 - 4000
Patiala Road 2000 - 3000
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-49 9000 - 10000
Sector-66 5000 - 7000
Sector-85 5000 - 6000
Sunny Enclave 3000 - 6000
Swastik Vihar 3000 - 5000
VIP Road 1000 - 3000
Zirakpur 2000 - 3000
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Aditya Verma

CEO & Business- Head , Makaan.com

(21 Aug- 14:00hrs)

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FAQs

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

The buyer is liable to pay the stamp duty.

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 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 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 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.
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.
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.
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 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.
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 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 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.
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.
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.

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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Smriti Irani

22217.76 4.27%

Narendra Modi

6724.58 1.74%

Arun Jaitley

5075.18 1.04%

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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.