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Archive for June, 2009

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Investing In Real Estate Business

Tuesday, June 9th, 2009

In India real estate business is one of the successful industries which offer good deal for both buyers and seller. In real estate market all buyers are not buying property for long-term purpose. They hold property for short-term and sell when they get marginal or good profit on the property. These profits become good income at the end of year.

To succeed in real estate business you need to know basic market trend and some experience in property transfer. Patience is very important in real estate business. You may some times encounter failure or loss in one or more transaction but you need to stick in the business to gain more.

While investing in real estate business, you need to know laws relating to property, taxation, updates of financial and banking rules etc. This will help you to know the market trend and the right moves you need to take, whether to buy or sell the property. For example, now you can see cut down in property rate, lower interest rate for home loan, cut down of stamp duty and so on. This indicates that this is buyer market and it is right time to buy property for selling in future.

You need to have good relation with people who are investing in real estate business. A good networking helps you to get best deal and more opportunity to invest and transfer the property at profitable rate. Real estate business needs hard work and smart investment to achieve success. It may take some years to earn big profit but you can get marginal profit on your transaction and learn new experience in each transaction.

Negotiation skill is important for surviving in this field. You need to negotiate well when buying a property and when selling the property you need to sell them for marginal profit. You need to know when to walk away from the bad deal.

Real estate business offers good return if you know the trend and idea of transferring the property. Patience is very important for surviving the failure in real estate business. You need to know laws relating to property, banking rules and Income tax laws. Good negotiation skill is tool for success and walk away from bad deal is wise than investing or suffering the loss. Make good market research before you invest or step into real estate business.

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Trap is set for those who under valued their property

Monday, June 8th, 2009

Income tax department is keeping track on property transaction to trap tax dues. The trap is set for those who under valued the property to escape the Income Tax net. It is found that there was large revenue pilferage even from small-value property transactions too.

The small value properties are under valued during registration for escaping from income tax net. Income tax department has asked sub-registrar to submit the details of property transaction starting from Rs 5 lakh. This is to examine the sales deed that shows the price of property and compare the guidance value. If there is difference between guidance value and price in sales deed, the same is brought under Income Tax net.

Earlier high value transactions were being scanned by Income Tax Sleuths. Sub-registrars were directed to furnish the details of high value property transaction to track down binami registrations. Until realty boom went bust, investing in immovable property was the best option to invest undisclosed income. The income tax has setup the trap to track those who invested property in binami registration and those who under valued their property to escape from income tax net.

Link to Refer

Times of India

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Avoid Capital Gain Tax by Investing On New Flat

Saturday, June 6th, 2009

Capital gain tax is not new for investors in real estate. Capital gain tax is tax you pay for capital gain you made by transferring capital. Capital gain is gain or profit derived from sale of capital investment such as property, shares, mutual fund, debentures etc. If you sell the property or capital investment for price more than what you bought is called capital gain and if the transfer is made for price less than purchase price is called capital loss.

Re-investment on residential property is best way to avoid capital gain tax. You can avoid paying capital tax if you re-invest the capital gain in any residential property which is either ready to occupy, construction in progress or purchasing any plot for construction of new house.

If you are re-investing capital gain for new house which is ready to occupy, you must invest within one year or two years after transfer. If you re-invest capital gain for purchase of residential property within specified time you can claim full exemption. If you are re-investing capital gain for buying plot to construct a new house, construction must be completed within three years from date of transfer.

Investors are attracted to real estate with lower rate of interest on home loans and cut down in stamp duty for registration of property. Now you can avoid capital gain tax on your capital gain by re-investing on your dream property.

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Posted in Apartment Buying | 1 Comment »

Lower Loan Rate for Green Building

Friday, June 5th, 2009

Green building is not only environmental friendly but also offers you lower rate on your home loan. Home buyers are very happy with cut down in stamp duty, rate of interest and now here is another reason. Banks such as State Bank of India are offering lower loan rate for green building.

There is an increase in demand for green building and SBI encourage this by attracting buyers with special rate for green building. Normally SBI charges 8 to 9.25% for normal home loan and rate is 0.10% or 10 basis points lesser for green building comparing to other.

According to Indian Green Building Council (IGBC), green building is construction that consumes less energy, water and natural resources. When comparing to ordinary building, green building consumes less energy, creates less waste and healthy for people and environment. Indian Green Building Council (IGBC) is a part of CII-Godrej Green Business Centre, which is actively involved in promoting the Green Building movement in India. It is represented by all stakeholders of construction industry.

In future more banks will come with innovative ideas to save environment and directly or indirectly encourage buyers to construct green building. Celebration of environmental day and conducting awareness program has played vital role in educating common man on need and importance of green living or environmental friendly life.

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Posted in Loan | 2 Comments »

Property Registration in New Areas Has Come Down

Thursday, June 4th, 2009

Residents of new areas is facing problem of property registration by merging of some urban local bodies with City Corporation by BBMP . As per rule when urban local bodies are elevated with city status, fresh Khatas to properties in CTC/TMC/ village panchayats should be issued by City Corporation. This is for proof or endorsement that the properties have been transferred to corporation limits.

However, merging of eight CMCs, one TMC and village panchayat with City Corporation seems not in smooth for property registration. Residents in new areas are facing problem for property registration as sub registrar insists BBMP must issue an endorsement stating that property comes under their jurisdiction for transfer or registration of property but BBMP has not streamlined khata of CMCs. This directly or indirectly leads to come down of property registration in new areas.

According to guidelines of state revenue department on registration of property or transfer of property, property owner must submit the endorsement or new khata extract along with other documents for registration. The endorsement will state that property belongs to jurisdiction of BBMP but BBMP is going slow in issue of new khata. Inspector general of registration and commissioner of stamps clarifies that though department has come out to help residents of new areas BBMP has not shown any co-operation till now.

BBMP states that new khata cannot be issued without verification of existing khata. If the khata is issued without any verification it will be like legalizing illegal or encroached property by putting seal of approval. They also states that if any discrepancy comes fingers will first point to BBMP.

In short, residents of new areas cannot register or transfer property unless they get endorsement from BBMP or BBMP issues fresh khata. Residents in new areas are upset with BBMP process and procedure.

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Changing Face of Playground in Bangalore

Wednesday, June 3rd, 2009

In Bangalore most of public playgrounds are used for parking vehicles of people working or living in and around the area. Well it is true that traffic and vehicles in Bangalore city is increasing day by day. Vehicle owners are struggling to park their vehicle when they go for shopping, office or even in their residential areas. BBMP is working for smooth movement of vehicles and make life better for citizen in Bangalore.

Akkithimanahalli playground is one of the public playground which BBMP claims is “developed” is changing its face from playground to parking lot. Now this ground is used most by vehicle owners than children. People in and around Richmond Town began to raise voice against using them as parking lot. One of the resident points that vehicle parked inside the playground is either of people working or residing in and around Richmond Town.

The fact is that playground is public space and cannot be encroached upon. BBMP has confirmed that the park is not sanctioned permission to park vehicle inside the playground. It also says that playground has no gate due to renovation and this made vehicle owners to park vehicle inside the playground and they will stop them using when the gate for playground is installed.

Residents of Richmond Town complaints that few months the ground is taken over by debris as a part of renovation and now new hindrance arise where playground is gradually changing its face from playground to parking lot. Residents hope ground will be soon renovated and children can use them as earlier.

Reference

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Opportunities for Commercial Expansion in Bangalore

Tuesday, June 2nd, 2009

Availability of large space, proximity to social infrastructure, incentive from government, higher FAR (Floor Area Ratio), good connectivity to key city areas

East opens opportunity for commercial expansion after Bangalore south. The companies looking at setting up large establishment are attracting towards eastern belt from Marthahalli onwards. There are number of reasons for setting companies here. Some of the important reason and attraction of east are availability of large space, proximity to social infrastructure, incentive from government, higher FAR (Floor Area Ratio), good connectivity to key city areas and so on. Some industrial units are already present here, key industries influencing economic development in the city and suburbs are located here.

Increasing commercial grade witnessed especially by the Whitefield micromarket. In last four to five years a development to meet the demand from Industries such as IT/ ITES, R&D and other industries. Whitefield is key region for logistic industries. Presence of central warehousing corporation, state warehousing corporation and other private warehouses opens more opportunities for logistic industries. Improved social infrastructure and residential development holds good potential to industries in IT/ ITES, biotech industry, Research & Development (R&D) and other industries.

Eastern belt starting from Marthahalli offers good opportunity for investment. Capital values for Grade A and Grade B spaces in Whitefield were at Rs 2,700 per sqft and Rs 2,400 per sqft respectively. East opens more opportunities as expansion is possible with availability of large land parcel. Chennai railway line and provision of revised master plan is eagerly watched by major industries for best use its development. Hosur road and Whitefield road is an important passageway to develop into hi-tech zone.

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Revised Tax Calendar

Monday, June 1st, 2009

Previous deadline for collecting property tax for current block period (2008-09) was Saturday May 30. Revised date for current block period is June 30 without 2% penal interest. The revision will also be incorporated into online tax calculator on civic agency’s website starting on June 1, 2009. Interest for late payment of first half year will continue. BBMP said, there was significant tax collection as the previous deadline was last Saturday May 31, 2009.

Tax counter for new block period (2009-10) will open on July 1 and last date for paying tax for whole year on first half year without 2% penal interest will be on August 30. As per revised tax calendar, last date to avail rebate for tax paid in full will be on July 30. Property owners get one more time as previous deadline for property tax 2008-09 was moved to June 30.

Important Links to follow:

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