Presented by

  1. Home »
  2. Master Your Money »
  3. Real Estate

Transcript

Faq

  • 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.
  • 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.
  • Is a POA revocable?

    Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.
  • Who is liable to pay Stamp Duty-the buyer or the seller?

    The buyer is liable to pay the stamp duty.
  • 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.
  • 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 arms length transaction. Stamp duty is levied on the ready reckoner rate or the agreement price, whichever is higher.
  • 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.
  • 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.
  • 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.
  • 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.

realestate glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
  • 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.