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Q. Does availinga teaser loan make sense?

A. Availinga temporarily discounted home loan without taking-protracted viewones financial position is not advisable One should be awarethe manner"which ones finances will be affected afterteaser period is overreal-time lending rates kick in

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

A. That dependsones actual objectiveslevelneed If one is-first-time home buyerattempting to timemarket makes little sense Any correction will be-brief phenomenon,prices inevitably rise again This is-risky game that only investors should play

Q. In whose name arestamps required to be purchased?

A. The stampsrequired to be purchased"the nameany onethe executors toInstrument

Q. Is-POA revocable?

A. Yes,-POA can be either revocable or irrevocabledependingwhat sorta POA one has made

Q. Is there any way byI can claim exemptiontaxcapital gain?

A. Several optionsavailable for saving capital gains For example,"the first place invest"a residential house property or-flat to make investment so as to see that capital gainsexempted Likewiseif-person were to makeinvestment"REC or NHAI bonds then also he enjoys complete exemption fromlong-term capital gain payable by him"respectcapital gains due

Q. Whatallimportant documents one should check before buying any property?

A. While purchasing-propertyyou have to look atapproved layout planapproved building planownership documentscarryout title searchetc

Q. What aredifferent waysinvesting"commercial property?

A. Therethree ways to invest"commercial real estate - directly buy office space from-developerbuy sharesa commercial developer fromstock marketor invest"a real estate fund focusedcommercial real estate Asquantuminvestment is usually huge,prospective buyer needs to take more informed decisions

Q. What arefactors to keep"mind while investing"residential property for capital appreciation?

A. The fundamental aimsany residential property investment should be to maximise yield as well as capital gainsto reducerisk as far as possible To illustraterenovatingembellishing-property makes it eligible for-higher rent,means maximised yield Property investment aimed at capital gains involves buying real estate cheapselling it at-higher ratethereby maximising ones ROI An astute investor will also buy-well-located property at-high price ifrental market is boomingsince this makes it possible to rent it out for as long as it takes price to rise again

Q. What arepossible returnsinvesting"commercial versus residential propertyrent?

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

Q. What arerisks associated"buying-flatPower Of Attorney (POA) basis?

A. Purchasing-flat on-POA basis is not permitted

Q. What arerisks involved"residential property investment?

A. The risk factor"real estate investment lies"the possibilitybuying at-higher pricehaving to sell at-lower one"a depressed market It is also risky to try timemarket to discernbest time to invest Much like"the stock marketit is impossible to predictpointlowest ebb"the real estate market The danger"delaying investment too long is two-fold - firstlyone may lose outthe best properties,secondly,market may pickaheadones predictionsmeaning thatlower rates may no longer be available

Q. What aretax implicationssaleany house propertycommercial or residential?

A. ForpurposeReal EstateLong-term Capital gain would be only if you holdproperty for more than three yearsthen it is subjected to tax @20 In case you sellproperty"less than three years time then it would become short-term Capital Gainthe same is required to be taxed atprevailing tax schedulethe rate applicable toassessee dependinghis other incomes

Q. What exactly do we mean by-Free Hold flat What areadvantagesdisadvantagesif any?

A. A freehold property flat is one"there is-wholesole ownersownership is fullunconditionalthere is no lessor lessee involved

Q. What is meant bymarket valuethe propertyis Stamp Duty payablethe market valuethe property orconsideration as stated"the agreement?

A. Market valueproperty isprice atthere is-willing buyera seller agreeing totransferproperty atarms length transaction Stamp duty is leviedthe ready reckoner rate oragreement pricewhichever is higher

Q. What isdifference between builtareasuper builtarea,carpet area?

A. Carpet Area Carpet Areaa property is defined asnet usable area frominner sidesone wall to another Carpet Area comprisesthe carpet areathe demised premisetoilet areas withindemised premisesAHU rooms withindemised premisesdedicated service areas fordemised premises
Built-up Area (BUA) BUA consistscarpet areaarea covered by innerouter wallsadditional areas mandated byauthority such as flower bedsdry balcony etc
Super Built-up Area (SBUA) SBUA consistsBUAthe proportionate area undercommon spacesa building like lobbystaircaseselevators

Q. Which areinstruments that attractpaymentStamp Duty?

A. The instruments like Agreement to SellConveyance DeedExchangepropertyGift DeedPartition DeedPowerAttorneysettlementDeedTransferlease attract Stamp Dutymarket valuethe property

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

A. The buyer is liable to paystamp duty
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