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| SAI DHANALAKSHMI NAGAR |
Shortlisting Your Property
How to choose the right property?
One should buy property in an area which has adequate basic amenities such as
power, water, sewerage, etc. It is important to do your checks and balances while
deciding on a project. Infrastructure in the area, connectivity, builder’s goodwill and
price of the property are key components a buyer needs to take into consideration.
A buyer should also carefully check points such as the builder’s experience, number
of projects completed and delivered, banking institutions involved and present buy
options available to suit your requirements. It is better you conduct a field survey
before identifying a suitable property meeting your budget and location preference.
What do you think is the best way to buy property?
You can choose options from websites. These days all information, including model
apartments, is available on the internet. After this it is important that you or your
relatives visit the sites of shortlisted properties and experience the brand before
booking.
What is the market checklist before buying a re-sale property?
Some important tips one should keep in mind before buying a re-sale property are:
* Locality: Generally, the price difference prevails for different locations but when it
comes to price rise, it will always be proportionate to its strategic placement which
could be linked to accessibility to highways, markets, business districts and overall
living conditions.
There is a price differential between different properties within the same complex or
even the same building. In India vastu compliant units have a premium on them.
Similarly, East or South facing properties fetch better values than North and West
facing properties. Users pay more for a view in urban settings. In Mumbai, for
instance the price per unit rises as you go higher. If the property is sea-facing, there
is a hefty extra that the buyer has to shell out. In other cities, that are not quite used
to high-rises yet, the premium is for the ground to sixth floor. Higher floors do not
command a premium vis-a-vis lower floors. Pool or park facing properties have a
higher value.
The concept of Preferred Location Charges (PLC) for new properties was based
on these principles. Currently, PLC is arbitrary and there are no fixed norms for it.
There are developers who charge a PLC on every unit in the complex, which
defeats logic.
*Area-wise Demand and Supply: Price of properties within a certain area is also
dependent on the volume of supply. Qualities such as good infrastructure, access
to markets and office and entertainment hubs are common to a locality. However,
the volume of units available for sale in the market also determines the prevailing
price. If it is a new growth corridor, the first project to get off the ground normally
comes at a reasonable price. As more developers launch projects, it becomes an
area in demand and the values keep rising steadily, normally by about 8-10 per
cent per year. A developer may break the norm in an existing locality by launching
a project that is richer in features and therefore commands a higher value. Once
there are a couple of projects in a locality that command a higher value, it pushes
the base value up.
Developers too, allow investors to make money by periodically revising values of
projects that are still under construction. Once this new value is released, brokers
and underwriters, small and big investors offload their properties at a value higher
than the original sale price but lower than the new sale price. They thus, book shortterm
profits. This cycle happens at least two to three times during the
development cycle. End users enter towards the end of the cycle and purchase at
values that are at least 50 per cent higher than the original sale price. However,
with very little holding time, they get to buy very close to possession.
If you are buying on a corridor where there are several projects, check on price
and specifications of multiple projects to get the best deal. If there is more stock
than demand, you have a better chance of negotiating a better value in the
secondary market.
* Builder/Developer: Check the builder’s track record, his financial strength, his ability
to deliver on time, construction quality and the payment terms, especially in the
case of a local builder.
When is the best stage to buy?
If you have the required finances, ready-to-move-in is the ideal option for a home
buyer. For an investor, a ready-to-move-in property is feasible for business as he can
buy and put it up for lease without any waiting period. Whereas, a house under
construction eases the financial burden wherein you can finance your property
through bank loans and pay less cash upfront. The downside of this type of property is
that possession will happen only after a certain time period. If you are a new investor
with limited finances, look for an under-construction property with a suitable payment
plan and keep a horizon of 2-3 years for possession. But make sure you go for a
reputed builder.
How do you choose the right type of property?
Depending on the chosen budget, one can decide the type of property. If you are
an end-user, the size of your family, along with the budget can be a determining
factor while choosing the type of house you need. There is a wide range to choose
from today as the market abounds in various housing formats – from 1, 2, 3 and 4BHK
apartments, to studios, villas and row houses, to builder floors and independent
houses. Multi-storey projects and townships with all amenities in one project –
clubhouse, swimming pool, meditation center, health clubs, departmental stores,
schools, cinemas, sports facilities, banquet/party halls are what most end-users are
looking at today.
What are the documents you need to check before buying?
* Check for proper conveyance of title in favour of the builder.
* Check the licence/development right/approvals of the builder.
* Check clear and marketable title of the project.
* Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
* Ensure whether reputed financial companies approve the project. This will help you
in getting financial loans.
*Check the tentative layout/building plan and verify the plinth area of the
apartment. It is advisable to check the carpet area of the apartment and find out
if the difference between plinth area and carpet area is reasonable.
*Ask for Occupation/Completion Certificate.
* Ensure the Conveyance Deed is registered after the entire payment has been
made.
*For buying a property you need to check Deed of Conveyance, Mutation
Certificate (for complete property), Land Registration Status, Sanction Plan, Search
Report and Payment Schedule (for under construction). It is a must that you go
through all the documents relating to the origin of the property, chain of Title,
Occupancy Certificate, sanctions from various authorities dealing with building
plans, fire safety and Completion Certificate.
* For re-sale property, check demand notice relating to renovation, tax dues and
latest receipts of payments made towards various out-goings such as water,
electricity and ground rent.
Which is good for investment – plot or flat?
If you are a long-term investor, say 5-10 years, a plot is the best option. If you want
annual returns to manage a part of EMIs, flats are better.
What is a better investment – city or suburb?
Ideally, it is always better to invest when land cost as a percentage to sale price is 15
to 20 per cent, so that it grows. With land cost being very high within cities, hovering at
approximately Rs 7,000-14,000 per sq m, it is always better to invest in growing
corridors depending on whether you want for pure investment or want to move in.
One should buy property in an area which has adequate basic amenities such as
power, water, sewerage, etc. It is important to do your checks and balances while
deciding on a project. Infrastructure in the area, connectivity, builder’s goodwill and
price of the property are key components a buyer needs to take into consideration.
A buyer should also carefully check points such as the builder’s experience, number
of projects completed and delivered, banking institutions involved and present buy
options available to suit your requirements. It is better you conduct a field survey
before identifying a suitable property meeting your budget and location preference.
What do you think is the best way to buy property?
You can choose options from websites. These days all information, including model
apartments, is available on the internet. After this it is important that you or your
relatives visit the sites of shortlisted properties and experience the brand before
booking.
What is the market checklist before buying a re-sale property?
Some important tips one should keep in mind before buying a re-sale property are:
* Locality: Generally, the price difference prevails for different locations but when it
comes to price rise, it will always be proportionate to its strategic placement which
could be linked to accessibility to highways, markets, business districts and overall
living conditions.
There is a price differential between different properties within the same complex or
even the same building. In India vastu compliant units have a premium on them.
Similarly, East or South facing properties fetch better values than North and West
facing properties. Users pay more for a view in urban settings. In Mumbai, for
instance the price per unit rises as you go higher. If the property is sea-facing, there
is a hefty extra that the buyer has to shell out. In other cities, that are not quite used
to high-rises yet, the premium is for the ground to sixth floor. Higher floors do not
command a premium vis-a-vis lower floors. Pool or park facing properties have a
higher value.
The concept of Preferred Location Charges (PLC) for new properties was based
on these principles. Currently, PLC is arbitrary and there are no fixed norms for it.
There are developers who charge a PLC on every unit in the complex, which
defeats logic.
*Area-wise Demand and Supply: Price of properties within a certain area is also
dependent on the volume of supply. Qualities such as good infrastructure, access
to markets and office and entertainment hubs are common to a locality. However,
the volume of units available for sale in the market also determines the prevailing
price. If it is a new growth corridor, the first project to get off the ground normally
comes at a reasonable price. As more developers launch projects, it becomes an
area in demand and the values keep rising steadily, normally by about 8-10 per
cent per year. A developer may break the norm in an existing locality by launching
a project that is richer in features and therefore commands a higher value. Once
there are a couple of projects in a locality that command a higher value, it pushes
the base value up.
Developers too, allow investors to make money by periodically revising values of
projects that are still under construction. Once this new value is released, brokers
and underwriters, small and big investors offload their properties at a value higher
than the original sale price but lower than the new sale price. They thus, book shortterm
profits. This cycle happens at least two to three times during the
development cycle. End users enter towards the end of the cycle and purchase at
values that are at least 50 per cent higher than the original sale price. However,
with very little holding time, they get to buy very close to possession.
If you are buying on a corridor where there are several projects, check on price
and specifications of multiple projects to get the best deal. If there is more stock
than demand, you have a better chance of negotiating a better value in the
secondary market.
* Builder/Developer: Check the builder’s track record, his financial strength, his ability
to deliver on time, construction quality and the payment terms, especially in the
case of a local builder.
When is the best stage to buy?
If you have the required finances, ready-to-move-in is the ideal option for a home
buyer. For an investor, a ready-to-move-in property is feasible for business as he can
buy and put it up for lease without any waiting period. Whereas, a house under
construction eases the financial burden wherein you can finance your property
through bank loans and pay less cash upfront. The downside of this type of property is
that possession will happen only after a certain time period. If you are a new investor
with limited finances, look for an under-construction property with a suitable payment
plan and keep a horizon of 2-3 years for possession. But make sure you go for a
reputed builder.
How do you choose the right type of property?
Depending on the chosen budget, one can decide the type of property. If you are
an end-user, the size of your family, along with the budget can be a determining
factor while choosing the type of house you need. There is a wide range to choose
from today as the market abounds in various housing formats – from 1, 2, 3 and 4BHK
apartments, to studios, villas and row houses, to builder floors and independent
houses. Multi-storey projects and townships with all amenities in one project –
clubhouse, swimming pool, meditation center, health clubs, departmental stores,
schools, cinemas, sports facilities, banquet/party halls are what most end-users are
looking at today.
What are the documents you need to check before buying?
* Check for proper conveyance of title in favour of the builder.
* Check the licence/development right/approvals of the builder.
* Check clear and marketable title of the project.
* Ensure execution of proper Allotment Letter/Sale Agreements on your payments.
* Ensure whether reputed financial companies approve the project. This will help you
in getting financial loans.
*Check the tentative layout/building plan and verify the plinth area of the
apartment. It is advisable to check the carpet area of the apartment and find out
if the difference between plinth area and carpet area is reasonable.
*Ask for Occupation/Completion Certificate.
* Ensure the Conveyance Deed is registered after the entire payment has been
made.
*For buying a property you need to check Deed of Conveyance, Mutation
Certificate (for complete property), Land Registration Status, Sanction Plan, Search
Report and Payment Schedule (for under construction). It is a must that you go
through all the documents relating to the origin of the property, chain of Title,
Occupancy Certificate, sanctions from various authorities dealing with building
plans, fire safety and Completion Certificate.
* For re-sale property, check demand notice relating to renovation, tax dues and
latest receipts of payments made towards various out-goings such as water,
electricity and ground rent.
Which is good for investment – plot or flat?
If you are a long-term investor, say 5-10 years, a plot is the best option. If you want
annual returns to manage a part of EMIs, flats are better.
What is a better investment – city or suburb?
Ideally, it is always better to invest when land cost as a percentage to sale price is 15
to 20 per cent, so that it grows. With land cost being very high within cities, hovering at
approximately Rs 7,000-14,000 per sq m, it is always better to invest in growing
corridors depending on whether you want for pure investment or want to move in.
Real Estate Developers
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The leading Real Estate Developers and Residential
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Residential plots with quality
We are offering Residential plots with quality, expertise and trust, that is evident in each of our projects. Turning our customers dream of owning a home into reality while providing them with exponential returns on their investments.
Tax benefits on a Land Loan
A home loan attracts a significant amount of saving from income tax. But there
are no tax benefits on a loan taken to acquire a plot of land. Therefore, a home
loan brings a significant tax incentive for the borrowers, especially for those
in the high taxable bracket. There are no tax benefits for purchase of plot of
land. But if you are buying a plot for construction purpose you can get a tax
sop on loan. In such a case, the total amount will be combined i.e, loan for
purchasing a plot and loan for construction of house or villa is combined and
you will get the tax benefit on the entire amount.
The tax deductions will be applicable only in the year in which the construction is completed. In that year interest on land loan as well as the construction loan till the end of the previous year shall be taken together and one-fifth of this cumulative interest plus the interest payable for the specific year will be eligible for deduction. The principal repayment you make on your home loan is also eligible for income deduction under Section 80C.
The tax deductions will be applicable only in the year in which the construction is completed. In that year interest on land loan as well as the construction loan till the end of the previous year shall be taken together and one-fifth of this cumulative interest plus the interest payable for the specific year will be eligible for deduction. The principal repayment you make on your home loan is also eligible for income deduction under Section 80C.
Loan for Buying Plot
Banks and financial institutes offer “Land Loan” or “Land Purchase loan”. A land
loan is a financing option that is meant to be used just for the purchase of
land. These loans are available for purchasing land for both construction and
investment purposes. The quantum of loan sanctioned, depends on a number of
factors like the cost of house/flat, person’s age while applying for loan,
income, repayment capacity etc. However, any individual aged 21 years or above
having regular income is generally eligible to apply for land loan.
Banks usually insist that the land you are buying, whether it is for your house or for commercial purpose, should be from a development authority or from a society, implying that it should be legally safe land. Even if banks were willing to provide a loan for a plot of land, it may come at a higher cost and not at the home loan cost which is considerably cheaper than a plot loan. One thing that you must remember is that there are no tax sops if you take a loan to buy a plot of land. Normally, lenders will not finance more than 60-70 per cent of the total cost of the plot and the remaining has to come from your sources.
If you build a house on that plot of land, you will be eligible for both Land loan and Home construction loan. Land loan enables you to buy plot of land and Home construction loan enables you to construct the home in the plot you purchased.
Banks usually insist that the land you are buying, whether it is for your house or for commercial purpose, should be from a development authority or from a society, implying that it should be legally safe land. Even if banks were willing to provide a loan for a plot of land, it may come at a higher cost and not at the home loan cost which is considerably cheaper than a plot loan. One thing that you must remember is that there are no tax sops if you take a loan to buy a plot of land. Normally, lenders will not finance more than 60-70 per cent of the total cost of the plot and the remaining has to come from your sources.
If you build a house on that plot of land, you will be eligible for both Land loan and Home construction loan. Land loan enables you to buy plot of land and Home construction loan enables you to construct the home in the plot you purchased.
Key factors you must check before buying a plot
Buying or investing in plot is one of the difficult investment decisions for any investor. Before buying a plot of land, a number of checks need to be done to confirm that the land has a clear and marketable title.
- Check whether the seller has a right over the property. The first step is to see the title deed of the land which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies with only him and no other person. It is better to get the original deed examined by a lawyer.
- Before buying plot of land, it is important to confirm that the land does not have any legal dues. It is available as a certificate called encumbrance certificate from the sub registrar office where the deed has been registered, stating that the said land does not have any legal dues and complaints.
- Verify whether the layout has been approved by the City Development Corporation and the local body.
- Be sure to research any contingencies, which may hinder the development of the property. Determine if the plot of land has the necessary infrastructure to build your home. There should also be a deeded right-of-way, allowing the right to build a public road or accessibility to the land.
- Ensure that planning permission and building approval has been obtained from City Development Corporation from the local body concerned.
- Check whether the abutting or neighboring road of the plot has been maintained by the local body or has been handed over to the local body.
- Verify the land-use zone as per master plan for the plot.
Buying a property or home
Buying a property or home is preferred by most property buyers as there number
of incentives such as attractive property rates together with low interest rates
on housing loans and tax benefits make property investment a good value
proposition for property buyers. But some property buyers opt for buying a plot
of land for investment or construction purposes. The demand for residential
property is increasing day-by-day and buying a plot of land can be a rewarding
purchase where real estate value is soaring.
Though the apartment culture has captured cities like Bangalore, Hyderabad, Chennai, Mumbai, Delhi-NCR, Ahmedabad, and Kolkata, the plot of land is highly demanded by all those people who have a wish to build their individual home.
Buying a plot of land can be a rewarding purchase especially in the city struggling for space and where real estate value is soaring. But before you buy a plot of land, there are some vital or key factors to be considered to ensure that you are dealing with right seller and investing in plot approved by Town planning department or concerned authority. Following are some key points you need to consider before buying a plot
Though the apartment culture has captured cities like Bangalore, Hyderabad, Chennai, Mumbai, Delhi-NCR, Ahmedabad, and Kolkata, the plot of land is highly demanded by all those people who have a wish to build their individual home.
Buying a plot of land can be a rewarding purchase especially in the city struggling for space and where real estate value is soaring. But before you buy a plot of land, there are some vital or key factors to be considered to ensure that you are dealing with right seller and investing in plot approved by Town planning department or concerned authority. Following are some key points you need to consider before buying a plot
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