The seller in this transaction is identified as Anushka Constructions, with the agreement registered on October 5. According to property registration documents, Micro Labs paid ₹6.22 crore in stamp duty for the purchase.
Plot Image
Life sciences company Micro Labs Ltd has acquired a 3-acre plot in Hoodi, an eastern suburb of Bengaluru, for a total sum of Rs 111 crore, as per property registration documents accessed by PropStack. This transaction ranks among the most expensive real estate deals in Karnataka’s capital in recent years.
Bengaluru-headquartered Micro Labs, known for its prominence in various pharmaceutical therapies and active pharmaceutical ingredients, is best recognized for its Dolo-650 paracetamol tablets.
The seller in this deal has been identified as Anushka Constructions, with the agreement registered on October 5. Micro Labs paid Rs 6.22 crore in stamp duty for the purchase, according to the documents.
Moneycontrol has reached out to Micro Labs for comments regarding the intended use of the land, and updates will follow once a response is received.
In other major real estate transactions in Bengaluru this year, Quess Corp’s founder and chairman Aji Isaac purchased a 10,000 square foot plot in the Koramangala area for Rs 67.5 crore, while businessman Shrinibash Sahoo bought an 8,800 square foot plot in Indiranagar for Rs 47.5 crore.
Our homes are special places where we go to feel secure and at ease. We share some of the most memorable times of our lives there with the people we love. Everyone aspires to buy their own home at some point. However, sometimes the prices of properties make it difficult for a dream to come true. Fortunately, home loans are encouraging people to buy their dream houses. You can even apply for it jointly to improve your eligibility for home financing.
Joint Home Loan
A joint home loan can truly help you own a home you have always wanted. This article will help you have a better understanding of a joint home loan, its eligibility and criteria.
The Benefits of Joint Home Loan
Having some assistance when requesting a loan is always beneficial. The same is true when you apply for a home loan. Here are some of the major benefits of a joint home loan –
Higher sanctioned loan amount
The most obvious advantage of a joint home loan is the possibility of receiving a larger sanctioned loan amount. This happens because the lender would consider two incomes in the application instead of one. So, you can stop worrying about having to compromise on your dream home because of a lack of funds. Therefore, you can raise your budget and go for the flat or house you want in the locality you want. Since most of us only make this decision once in our lives, and would not want to settle for less than the ideal property just because we are short a few lakhs of rupees.
Repayment ease
The responsibility of repaying the loan is shared between two people. So, the heavy EMI burden is not only on one person. It is much simpler and brings peace of mind to know that two people are responsible for repaying the loan. While your spouse or other family members may agree to assist you with a housing loan that is in your name, formally adding them as joint applicants may increase their sense of ownership over the situation and make them more responsible for making timely EMI payments with you.
In addition, you might even pay off your debt earlier if you have a co-applicant on the loan. You can choose higher EMI values each month because you have two incomes available to pay the loan rather than just one. As a result, you can opt shorter term for your mortgage than 30 years, such as 20 years or less. You will save a lot of money by taking out a home loan for a shorter period of time rather than a longer one because you will not have to pay as much interest.
More tax benefits
Additionally, each co-applicant is eligible for their own tax advantages with regard to the home loan. Tax advantages apply to both the loan’s interest and principal. Section 80C of the Income Tax Act provides this home loan tax benefit for joint applicants and co-owners. To be eligible for these tax advantages, the co-applicant or co-borrower of the loan must also be a co-owner.
Who is eligible to Co-Apply for A Joint Home Loan?
To increase loan eligibility, a close relative can be added as a Co-Applicant on a home loan. Close relatives do not have to be co-owners of the property.
A close relative may be added as a co-applicant if he or she is also a co-owner of the property.
A non-resident Indian (NRI) can also be a co-applicant.
Eligibility and Documentation for a Joint Home Loan
You can easily check home loan eligibility for joint applicants on the website of your preferred bank or financial institution. The most important eligibility criterion is the co-borrower’s relationship with you. They should be your parent, sibling, or spouse. Some lenders even require the co-borrower to be a co-owner of the property.
Additionally, all relevant documents must be submitted by the joint applicants as required by the lender. These include identity proof, income proof, address proof, property sale documentation, and NOC of the property. All these documents need to be submitted by the main borrower as well as the co-applicant for the home loan.
You must check your credit score as well as the co-applicant’s credit score prior to applying for a home loan. Your home loan application can possibly be impacted if either of the applicants has a low credit score. You can check your credit report and your co-applicant’s credit report at CIBIL, CRIF Highmark, Experian, and Equifax which are the four credit bureaus in the country. Most major banks in the country provide customers with free online access to their Credit Bureau scores. It is good to check your CIBIL score for a home loan can help you understand whether your current score makes you eligible for a good deal on your home loan or whether you need to work towards increasing your score.
Tip: There are numerous advantages to co-owning your property with a female family member. She will pay lower stamp duty charges, which can help you save a lot of money. Even if the stamp duty reduction is only 1%, keep in mind that it is 1% of a very expensive property.
How to check eligibility for a Home Loan?
Eligibility for a home loan can be easily checked online. The home loan eligibility calculator is a special tool that can help you understand how much funding you qualify for. This tool is simple and free to use. You only need to enter a few basic details into the tool to determine your eligibility. These details will include –
Gross income
Tenure of the loan
Interest on the loan
Other liabilities, expenses, and EMIs
These details will assist you in estimating how much funding you can expect. Keep in mind that the final decision on your home loan will depend on other factors such as your age, CIBIL score, and existing loans. Co-applicants’ details will also be a factor in the equation.
It is suggested to close all other major loans prior to applying for a home loan. Having less debt in other areas will increase your eligibility for a larger home loan, and the same applies to the co-applicant too. Having a lot of debt will decrease their eligibility and impact the joint loan application.
Following the 1962 Indo-China War and the India-Pakistan Wars in 1965 and 1971, the Indian government took possession of the movable and immovable property left behind by those who fled India as a result of the wars. These properties spread across various Indian states and were regarded as enemy properties.
Enemy Property Image
The office of the Custodian of Enemy Property for India (CEPI), is in charge of enemy possessions in India which was created under the Defence of India Act of 1939. Via the Custodian, this center essentially controls all enemy possessions in India. India and Pakistan signed the Tashkent Declaration in 1966 following the 1965 war, in which they promised to discuss the possible restoration of assets captured by either side during the conflict.
What exactly is the “enemy property law”?
This Act established in 1968, provided for the custody and management of the enemy property. As a result, of an increase in succession claims by the legitimate heirs of the original owners of enemy assets, the center was obliged to revise the 50-year-old statute in 2017. The bill’s text states naming particular examples that there have been many rulings by various courts, negatively impacting the authority of the CEPI (Custodian) and the government of India as granted under the Act.
Example
A 2005 Supreme Court decision had a significant impact on the sharp rise in the number of these lawsuits. When it came to the ownership of the estate of the former Raja of Mahmudabad, the Supreme Court decided in favor of his son, who asserted possession after his father died in 1973. His father owned many historic properties in Sitapur, Lucknow, and Nainital and fled India for Iraq during the partition. In 1957, he obtained Pakistani citizenship and then relocated to London, where he died. Raja’s wife and son remained in India as Indian citizens, despite this Raja’s estate was considered enemy property under the 1968 enemy property statute.
Supreme Court returned Raja’s inheritance to his son after an almost four-decade legal fight. But when the 2017 law’s regulations took effect retroactively, the order was declared void. The Enemy Property (Amendment and Validation) Bill, of 2016, was brought with the intention of amending the Enemy Property Act of 1968 and the Public Premises (Eviction of Unauthorized Occupants) Act of 1971. The Bill was adopted in parliament in March 2017 when the Lok Sabha passed it to broaden the meaning of ‘enemy’ and ‘enemy subject,’. The 2017 legislation specified that heirs of persons who cannot claim ownership over enemy possessions, who left India during the conflicts of 1962, 1965, and 1971, regardless of nationality.
Key Components Of The 2017 Enemy Property Law
Enemy definition
The terms “enemy” and “enemy subject” refer to any enemy’s legal heir and successor, whether they are Indian citizens or citizens of other countries that are not enemies. Regardless of the nationality of its members or partners, it will also include the succeeding firm of an enemy firm in the designation of “enemy firm”.
It also specifies that the law of succession, as well as any customs or potential uses controlling succession, will not apply to enemy property.
In-charge
The Custodian retains ownership of enemy property as per the Defence of India Rules, 1962. The enemy property will remain to vest in the Custodian, even if the enemy, enemy person, or enemy firm ceases to be an enemy owing to death, extinction, business wound up, or change of nationality. This holds true regardless of whether the legal heir or successor is an Indian or a citizen of a country that is not an enemy.
With the prior consent of the federal government, only the custodian can dispose of such properties. It states that the transfer of any property vested in the custodian will be illegal and any adversary, enemy subject, or enemy firm has no right and is never to be believed to have any right to transfer any property.
Disclaimer: Access to the content on this internet page is provided by iPropUnited as a courtesy to the public service for educational reasons based on related news and stories. The accuracy of any information on this website cannot be guaranteed, however, it is all believed to be credible.
Starting a restaurant business is tough because of high competition, complex regulations, and red tape. That’s why people are checking out Cloud kitchens. It’s a good option because you can get delicious food delivered to your doorstep easily and safely. Cloud kitchens are also known as dark kitchens, ghost kitchens or virtual restaurants. They’re great for startups that don’t want to spend too much money upfront.
Cloud Kitchen Image
A virtual kitchen can be the best option because it requires less investment. If you want to make a profit without spending a lot of money, starting a cloud kitchen is the right option. However, not all cloud kitchens are successful. Many entrepreneurs fail to implement their ideas properly. In this article, we’ll talk about how to set up a cloud kitchen and how much it will cost.
What is a Cloud Kitchen?
A cloud kitchen is like a restaurant, but it only does online food delivery and takeout. The cool thing is that it doesn’t need a storefront with dine-in space, so you can start one even in your little home kitchen! You don’t need to hire people to manage staff or worry about front-of-house labor and overhead. All you need is a menu that’s delicious and healthy, and you can connect with food delivery partners or even build your own food delivery app to start serving people. In short, a cloud kitchen is a commercial kitchen that offers online food delivery and takeout services.
Benefits of setting up a cloud kitchen
Cloud kitchen is a new and revolutionary business model that’s becoming really popular. Wanna know why? Well, for starters, it’s a quick and cheaper way to get into the restaurant business. And there are loads of benefits that come with it.
One major advantage is that it’s way more cost-effective since you don’t need to hire hosts, servers, or valets. You only need to worry about paying kitchen staff and delivery agents. That means the operational cost is much lower than a traditional restaurant.
Cloud kitchens are where you can experiment with new brands and menus without any extra investments. You can launch multiple brands without changing locations or investing in a new one. For example, if you’re running a Mexican cloud restaurant, you can easily start another brand for Thai cuisine without extending the existing menu!
You get more flexibility with menus. You can change them up without worrying about reprinting physical menu cards every time. This saves a lot of time and money.
Cloud kitchens allow you to track data and analyze customer behaviour. This helps you save additional expenses by scrapping items with fewer orders and executing new strategies to gain customers. You get to meet your customers’ demands with efficiency and lower wastage.
Tips to Setup Successful Cloud Kitchen Business
Establishing a cloud kitchen can be a challenging task, as its success is heavily reliant on a well-structured and robust workflow. If you have the determination to initiate a food delivery business and make it a triumph, it is imperative to familiarize yourself with the key steps involved in setting up a cloud kitchen business. Proper planning and execution of these steps will ensure a smooth and successful journey towards establishing a successful cloud kitchen.
Online ordering in a cloud kitchen setup
Online ordering is the primary source for delivery-only restaurants. It can get complicated managing orders from different sources, but a cloud kitchen POS can help by allowing you to accept and manage orders.
Processing an order in an online food delivery system
Once you receive the order, you must process it quickly while ensuring that it’s made just the way your customer wants it. To do this, ghost kitchens must have different teams of chefs for different types of food or brands.
But how do the chefs know what to make? That’s where the POS (point of sale) system comes into play. The POS kitchen display system shows the chefs the order and any additional instructions. This way, they can easily view the details and prepare the order.
Kitchen staff for cloud kitchen
If you want to start a successful cloud kitchen restaurant, the most important thing is to hire the best chefs. Virtual kitchens aim to provide customers with delicious meals and excellent service, so investing in quality chefs is crucial. Since there is no sit-down dining, there is no need to hire waiters, hosts, or other staff.
In addition to skilled chefs, restaurant owners will also need delivery personnel if they want to offer in-house delivery from their cloud kitchen setup.
Supply management
It is crucial to have a reliable system for managing your supplies. The way you manage your supplies for a virtual kitchen is the same as how you would manage them for a physical restaurant. However, it’s essential to have a good system in place to keep your suppliers organized and efficient.
Inventory management for delivery-only kitchen
Managing multiple brands under one cloud kitchen business can be a challenging task. However, with proper inventory management, it can become easier. A smart Point of Sale (POS) system can help restaurant owners to manage their inventory better.
A POS system allows you to view and manage inventory at any time, enabling you to keep track of the daily consumption of stock. Additionally, you can raise purchase orders for each brand based on their requirements. This helps you to stay organized and keep your inventory in check, ultimately contributing to the success of your business.
Location for Cloud Kitchen
When starting a cloud kitchen business, the location is really important. However, you can choose a location based on the type of customers you want to serve and what the market is like. You don’t need to have a fancy storefront in a prime location. You can start your business in a smaller space like a room, basement, parking lot or other places that might not be as noticeable.
Essential Kitchen Appliances for Cloud Kitchen
If you’re planning to start a cloud kitchen business, you’ll need to have some basic kitchen equipment. This will include things like-
Exhaust hood
Oven
Fire suppression system
Refrigerators and freezers
Cooking Range
Counters
Sinks
Commercial fryers
These are some of the essential items that you’ll need to have to get started.
Start a Cloud Kitchen Business, Hassle-free
Starting a cloud kitchen business can be a great way to make a profit with low investment. However, it is slightly different from traditional restaurants and requires some planning.
The first thing you need to do is set up an online ordering system that your customers can access through the internet or their smartphones.
Before starting the business, it’s important to know your customers’ demographics. Understanding their preferences will help you design your menu and target your marketing efforts. You can use online surveys, social media campaigns, and other tools to gather this information.
Apart from cooking, you also need to have some experience in accounting, management, and marketing. This will help you run the business more efficiently and profitably. It’s also important to analyze your competitors to find ways to improve your delivery-only kitchen.
While setting up a cloud kitchen costs less than building a traditional dine-in restaurant, you still need to bear some initial costs. You will need to invest in equipment like ovens, microwaves, utensils, burners, and more. It’s also important to equip your kitchen with upgraded technology like mobiles, laptops, tablets, and POS systems to manage everything from receiving orders to delivery.
Before you start your cloud kitchen business, you will need to get an FSSAI license. This license regulates everything from food storage to preparation and delivery. You will also need to spend some money on proper packaging, pandemic precautions, and an organized delivery system.
Starting a cloud kitchen business requires planning, research, and investment. But with the right approach, it can be a profitable and rewarding venture.
Most Popular Cloud Kitchen Business Models
Cloud kitchens are becoming popular among food entrepreneurs because they offer an affordable way to start a restaurant business. These kitchens operate on a delivery-only basis, without any dine-in or takeaway options. There are six types of cloud kitchen business models, each with its own unique features.
Brand-owned single cuisine
The first model is where one brand owns a single cuisine kitchen. This means the kitchen only produces food for delivery and does not have a physical restaurant. This model is affordable because there is no need to rent additional space for diners.
Separate dine-in
The second model is where a restaurant already has a dine-in option but adds a delivery or takeaway option as a side business. This model is low-cost until the restaurant needs additional staff or processes.
Shared kitchen with Separate dine-in
The third model has a separate dine-in restaurant that operates in a shared kitchen space. This is more expensive than the first two models because the shared kitchen must be rented and equipped, and the dine-in restaurant must be maintained.
Hub and Spoke
The fourth model is called “hub and spoke”. Multiple restaurants share a centralized kitchen, which is more expensive because of the cost of labour, pop-up locations, and other expenses.
Multiple virtual brands
The fifth model is where one cloud kitchen runs multiple brands under one roof. This model can be low or medium cost depending on equipment, space, and rent.
Shell-kitchen
It is a delivery-only kitchen that specializes in one cuisine and has minimal overhead costs. This model is the most affordable.
Wrapping up!
If you want to start a cloud kitchen business, you gotta work hard from day one. First, figure out the right cloud kitchen model for your business, find a solid mobile app development company to create a professional platform, budget accordingly, and more. To make things easier, you can check out Foodiv – they’ve already designed, developed, and launched a hundred similar platforms.
Investing in real estate necessitates a lot of research, legwork, and hefty investments. Hence, a decision of such high investment should be taken with utmost care. The buyer must consider several important factors while choosing between ready-to-move-in or under-construction properties. Almost all buyers get stuck upon this question while buying a property, a ready-to-move-in or an under-construction property, which is better? Both types of property fulfill their own objectives. It is crucial to understand the pros and cons of both property types.
UC VS RTM
This article is about ready-to-move-in and under construction properties to help buyers understand the difference and choose wisely.
Returns on Investment
In case of an under-construction property, if the project gets delayed beyond a certain limit the buyer might need to spend more. The increase in price often exceeds the overall budget of the buyer. However, under-construction property makes payments easy, as it allows flexibility of paying in stages as the construction process evolves.
If buying a ready-to-move-in unit, a buyer can select a house within a fixed budget.
Besides, buyers can enjoy the benefit of tax exemption on the home loan on both principal and interest repayment in case of a ready-to-move-in unit. The tax benefits on the home loan for an under-construction property can be demanded only after getting the actual possession.
Appreciation on Investment
Buying an under-construction property is usually a good choice as the launch price gives better returns due to an extended window between the buying and the delivery timeline of the project. Buying a property that is close to possession would be the better decision. An under-construction property closer to possession will earn a healthy appreciation in most of the posh localities.
Customizations
Under-construction properties allow making a few possible customizations based on needs, except for the structural ones associated with compliance. However, this option is not available in ready-to-move-in homes. You have to purchase a home the way it is or else invest time and effort in searching for a home that meets the elements you want in your house.
One must consider and prioritize one’s needs. You can go for an under-construction home to customize the home to meet your needs. But if otherwise, you can buy a ready-to-move-in property.
Possession Concerns
The major concern associated with a lot of under-construction properties is delayed possession, although it doesn’t happen in every case. The arrival of RERA and the following heavy penalties imposed for failure to meet commitments have diminished cases to a significant extent.
Nevertheless, in some exceptional and genuine cases, the developers cannot help it, which results in customers having to bear the consequences.
Whereas the ready to move in properties do not have such risks or uncertainties. You can move into your dream home as you make the payments. One should consider buying a ready-to-move home if one needs urgent possession.
GST Implications
GST applicability and rate are other essential considerations. Under construction properties with an agreement value of below 45 lakh INR require a GST payment of one percent. While above 45 lakhs INR incurs a GST of five percent of the agreement value, as GST increases the total cost of the home.
However, in case of a ready for possession home, the applicable GST is zero percent, and it comes in as a great reliever for home buyers.
Immediate Tax Benefits
In a ready-to-move-in property, you can avail of tax exemption on your home loan on both principal and interest repayment instantly while tax benefits on a home loan, for an under-construction property tax exemption, can be claimed only after the possession of a flat.
Pay Only EMI With No Down Payment
The most relieving thing about ready-to-move-in property is that you will have to only take care of the EMIs on the home loan, and not bother about anything else. In case of an under-construction property, EMI normally begins after the completion of construction work. Despite this, if there is any delay in the construction, then the EMI will start after the home loan gets dispensed.
Buyers must understand the purpose of the purchase to make the right decision between a ready for possession property and under-construction property.
Buying a home is a significant milestone, but the hefty price tag isn’t the only hurdle. Home loans come with interest rates, and those rates can significantly impact your monthly payments and the total amount you pay over the loan term. Here’s the good news: there are ways to bring that interest rate down.
Choose tenure wisely
While signing for a loan, be it home loan or personal loan or even loan against property, one factor to always keep in mind is to choose the tenure carefully to avoid paying higher interest against the loan taken. Loan tenure is the primary factor responsible for the interest that accrues, shorter the tenure, lesser the interest. Longer tenures like 25 to 30 years will surely bring down the actual outflow monthly but in the process will cost us higher.
People generally take home loans for a longer tenure to reduce the monthly EMI burden but opting for a longer tenure makes the person pay more interest. Using a home loan calculator will help to check how the interest rate and tenure can affect the overall payable interest on the principal amount.
Make advance payments
Nationalised banks and NBFCs often don’t charge for prepayment of loan or fore-closure charges on floating-rate loans. If the home loan is on a floating interest rate, making advance payments whenever your pocket allows will reduce the principal amount, therefore the total interest payable would also decrease. That is simply because, during the first few years after you take up a loan, a larger part of your loan EMI goes towards the interest payment while the smaller amount is adjusted towards the principal amount. However, some lenders may charge a certain percentage on fixed-rate loan prepayments. So, it is advisable to check with your bank/lender to know the prepayment charges before taking the loan.
Compare interest rates
It is necessary to do research on different home loan interest offers and compare rates before choosing a particular loan product or even the lender. You can compare the home loan interests on various third-party websites that can give you a clear picture of the rates and other charges levied by different lenders. Comparing home loan interest rates offered by various lenders will help you to choose the best deal.
So, it is advised to compare the home loan interest rates for all banks before deciding on a particular bank or home loan to avoid paying a big amount of interest rate.
Go for Home Loan Balance Transfer
You can opt for balance transfer (BT) if you have an existing loan and you feel that the current lender is charging a high-interest rate compared to the interest rate offered by another lender. In this case, you can transfer the remaining principal amount to the new lender and avail lower interest rate.
However, sometimes it may involve file transfer charges, and you may also need to get a written consent from the current lender for balance transfer. This kind of transaction is only advisable if you feel you are geared up to clear the monthly EMI without giving it a miss. As any missed payments on balance transfer-based loans incur higher penalties.
Pay big chunks on a down payment
Most banks and other financial institutions offer home loans up to 75% to 90% of the total value of the property and the rest 10 percent to 25 percent, is required to be paid by the owner. It is therefore advisable, that while investing in a property, instead of looking for a higher loan amount it is better to make a big down payment at the initial stage and lessen your burden of loan and subsequent interest. The higher you pay as down payment (DP), the lower the principal loan amount would be, which directly reduces the overall interest you have to pay as well.
Negotiate with the lender
If you justify all the criteria with a good margin and have provided all the necessary documents, negotiate with the lender to reduce the interest cost. Financial institutions generally offer lower interest rates to borrowers who have low or zero existing EMIs, stable income sources, and good credit scores. A small difference in interest percentage can make huge savings in the long term.
Improve your eligibility
Excellent repayment capacity, a stable income, and high credit scores can help negotiate better interest rates. Use the home loan calculator to get an estimate of the maximum amount you may be able to borrow. You can improve your repayment capacity by adding a close family member with a good credit score and income as a co-applicant. Pay off any outstanding debts to the possible extent, so that your monthly obligations are less than 30% of your income. Improve your credit score if you have a low credit score before applying for a home loan.
Look for Better Deals
Lenders prefer customers with good credit scores to make sure the loan amount can be recovered on time. Banks often roll out preferential rates for existing customers or those with good credit history. So, if your score is above 700, there are chances that you may get better rates on your loan. If you have been a responsible borrower and have made all your repayments on time, chances are you will be offered lower rates on your next loan.
If your credit history is not good enough, you may have to negotiate with the lender provided you have a good business relationship with the lender. Banks often lower their interest rates during festive seasons, and keeping a close eye on festive offers can be beneficial to grab a good deal.
Increase your EMI
Some of the lenders allow you to revise your instalment annually. So, if you have taken a home loan from such a lender you can opt for a higher EMI if your income increases. This act will reduce the tenure of the loan and therefore the interest payable against the home loan will be substantially reduced. So, it is good to check with your lender whether they provide such options.
Conclusion
You can significantly reduce your interest paid by repaying your home loan earlier than the actual tenure and by following the guidelines discussed above.
Also, make sure to read the terms and conditions as well as other fees and charges taken by your lender before signing up. Make yourself aware of all the tax deduction provisions under Income Tax Act 1961 and consider co-applying for the home loan to get maximum benefits through tax deductions, while repaying the home loan.
Tax lien certificates are those that are given to investors who demonstrate their interest in a property by contributing to the payment of the owner’s overdue property taxes with that property. When paying the unpaid property tax, the investor is given this certificate, and in exchange for it, he will get a certain amount in interest payments from the property owner.
Also, the holder of the tax lien certificate will have a claim over the property for which he has paid the property tax in the event that the owner does not pay the debt after a predetermined amount of time. The lowest bidder in the auction who is willing to accept the low-interest rate on its investments from the property owners is given this certificate by the regulating body.
How Does a Certificate of Tax Lien Work?
Let’s examine the procedure for investing in tax lien certificates.
It is a charge that municipalities impose on homes where the real estate taxes are persistently unpaid. In a tax lien certificate auction, the cities of the relevant areas are permitted to sell the tax lien for the full amount of the unpaid property tax.
Investors bid amounts in the auctions, and the tax lien certificate would be awarded to the highest bidder who offered the lowest rate of interest on the total amount of unpaid taxes. The successful investor will pay the municipalities’ unpaid taxes; in exchange, they will be entitled to recover the taxes paid, together with any interest, from the property owners.
Depending on the municipality and the area, the interest rate may change. The interest rates for these tax liens are typically between 3% and 8% for those sold in the tax lien certificate auction. These certificates, as well as the outstanding interest component, must be redeemed by the property owner within the redemption window of one to three years.
How to get tax lien certificates?
Let’s examine the investment process for tax lien certificates. It is not purchased on the open market. When the municipalities offer the tax lien certificate for auctions, these might be won by submitting bids in the auction market. The bids are made by the investors for various properties with unpaid property taxes, and the winning bidders will receive these certificates. The investor cannot purchase these certificates from a secondary market. The only way to purchase a tax lien certificate is to outbid other bidders for the property you’re interested in at an auction.
Example
Consider Jules, a Florida property investor who owns a prime piece of land. Yet due to a lack of funds, he is unable to pay the property tax. John now enters the picture, wanting to make a profitable investment by purchasing a tax lien certificate for a property. John agrees to a return of 15% with a maturity time of 3 years and invests in the Florida property certificate of Jules. As a result, in the case given above, John will pay the property tax and receive the certificate back from Jules along with a 15% return after three years.
Advantages
Low capital expenditure
Only the amount of the property’s overdue property taxes must be paid by the investors in order for them to qualify for the tax lien certificate, hence it only takes a little capital commitment. It becomes available to the investor upon making a payment of property tax to the local governments where the property is located on behalf of the owner that has been past due for a considerable amount of time.
Return on investments
When the certificate is redeemed, the owner must pay the fixed rate of return on the investor’s investment in addition to the amount of property taxes that the investor has already paid to the municipality on the owner’s behalf.
Lumpsum amount on redemption
When the owner of the certificate redeems it, the investor will get a lump sum payment in addition to the interest earned on his initial investment.
Right to buy property at a very low price
If the owner is unable to redeem these tax lien certificates by the due date of redemption, the investor has the option to buy the property. In a foreclosure, the investor will be able to purchase the property for pennies on the dollar.
Safe investments
As they are issued by municipalities and are presumed to be redeemed by the owner of the property at maturity, they are among the safest investments. Investors will have the option to purchase the property at a low price if it is not redeemed.
Disadvantages
Let’s take a closer look at the drawbacks and risk associated with tax lien certificates.
No Recurrent Income
Under this, the investor’s investment does not consistently earn a return. At the time of redemption or certificate maturity for the tax lien, the owner will get a lump sum equal to the return on his investment.
Extremely slow process
This certificate’s issuance takes a very long time. Even the redemption of them takes a very long time. The process is slow because municipalities are the ones that issue the certificate; as a result, neither the issuing nor the redemption of the tax lien certificate are finished on time.
Low Rate of Return
Although these certificates offer a return on investment (ROI), these returns are still not as high as other options on the market that are available to investors.
High Competition
Due to the fact that these certificates are awarded based on bids, which are made by several investors, real estate agents, and money managers, there is intense rivalry among investors. As a result, new investors sometimes fail to return with the certificate, in contrast to other investors who frequently participate in similar markets and tend to place the winning bids.
As a result, the investor should consider the aforementioned risks when obtaining tax lien certificates.
Certificates of Deposit vs. Tax Lien Certificate
Compared to certificates of deposits, tax lien certificates have the potential to yield higher returns.
The risk is greater for the former than the latter.
Those with a higher risk appetite should choose the former over the latter.
The former need much investigation to be an effective investment. For the latter, there is no need for research.
Tax liens do not have the option to be purchased from brokers or banks as certificates of deposits do.
The Hindu Marriage Act of 1955 and the Hindu Succession Act of 1955, respectively, set down the rights of a wife and her children in relation to the husband’s property. The interactions between a second wife and her children, though, can be different.
The Hindu Adoptions and Maintenance Act of 1956 and the Hindu Succession Act of 1956 must be acknowledged when discussing a divorced woman’s rights on her husband’s property. The provisions of these acts grant women complete control over their husband’s assets following his passing. Even in the event of her remarriage or choice to adopt, the rights cannot be reduced or disputed. If the husband marries again, there are various subtleties that come into play. If the second wife and her kids don’t fit the legal requirements, their rights may be contested.
Second wife’s legal rights to her husband’s property
We must first look at the legitimacy of the second marriage in order to ascertain the second wife’s rights. Polygamy is forbidden by the Hindu Marriage Act of 1955. The act stipulates that neither party may be officially married at the time of the second marriage and that both parties must dissolve their first marriage before getting married again. Hence, the second wife does not qualify for a portion of the husband’s property if this requirement is not satisfied.
Also, the second wife has the same rights as the first wife over the husband’s property if the second marriage is valid, that is, if the husband marries after the death of the first wife or after divorcing the first wife. This holds true for both the husband’s own property and his ancestors’ assets.
The laws governing the property rights of the first and second spouses and their offspring are quite complex, and the judge must rely on a number of different Government Acts to make a legal decision. These are a few situations where making a decision could prove challenging.
The legality of a husband’s property rights in various circumstances
Case I
A husband marries a second time without formally divorcing his first spouse
When the first wife and their children from the marriage are still living and the husband gets remarried without divorcing the first wife, they are entitled to the property. Following the patriarch’s passing, the property will be equally divided amongst the first wife, her children, the children of the second wife, and in very rare circumstances, the second wife. Regarding the second wife’s rights in this case, there is some ambiguity.
Case II
After the death of his first wife, the husband marries again
The children from the first marriage and the children from the second marriage, as well as the second wife, have the right to equal interests in the patriarch’s property after his death when the husband remarries.
Case III
The husband remarries following the divorce
All parties, with the exception of the first wife, receive an equal share of the patriarch’s property when the husband remarries after divorcing his first wife. These parties include the children from the first marriage, the second wife, and the children from the second marriage.
Case IV
The husband and his first wife co-own the property
The following situations can occur when the in question property is jointly owned and is marital property:
Even after the husband’s second marriage, the first wife and her designated beneficiaries continue to be the legal proprietors of the property left over after the husband’s passing. Nonetheless, the Hindu Succession Act may be used by the offspring of the second marriage to assert a claim to a portion of the property.
The second wife can make a claim on the property when the first wife passes away because the husband will then become the sole owner.
Rights of the second wife’s children to the husband’s property
In the absence of a will or the owner’s intestate death, the Hindu Succession Law designates the following individuals as Class I legal heirs to the deceased person’s estates: the son, daughter, widow, mother, son of a predeceased son, daughter of a predeceased son, widow of a predeceased son, son of a predeceased daughter, daughter of a predeceased son, and son of a predeceased son.
The father’s immovable property, which included both his own acquisitions and his inheritance, will therefore be divided equally among the children from the first and second marriages under the law.
Remarriage without the legal culmination of the previous marriage is prohibited by the Hindu Marriage Act of 1955. So, if the second husband passes away without making a will, the second wife in those circumstances cannot claim any portion in the property of the deceased husband (intestate). Children from the second marriage, on the other hand, will be regarded as legitimate under Section 16 of the Act and will have the same claim to the father’s property as the children from his first marriage because, under the terms of the Hindu Succession Act, 1956, children in both cases will be Class I legal heirs in the event that the father passes away intestate.
According to the Hindu Adoptions and Maintenance Act of 1956, the second wife and her children are entitled to maintenance even in cases of illegitimate marriage.
However, the second wife’s children from her prior marriages are not entitled to any of the deceased husband’s property.
As a result, the second wife’s property rights depend on the legitimacy of her marriage.
First wife’s property rights and inheritance after divorce or abandonment
The first wife and the children are still considered to be the legal heirs of the marriage if the first wife is abandoned or alienated, that is, left without a divorce. In certain situations, the second marriage is invalid, and the second wife has no legal claim to the husband’s inheritance or property. The offspring of the second wife, however, are entitled to the patriarch’s possessions.
Half-blood children’s property rights
Children of half-blood parents only have one biological parent; the other parent is either the mother’s other husband or the father’s other spouse. Property rights are granted to the heir closest to the property owner when a spouse has both biological and half-blood children. This scenario most frequently occurs after divorce or remarriage. Half-blood children are given secondary precedence over biological offspring in terms of ownership rights to property that belongs to the parent.
The children in both scenarios fundamentally have the right to the father’s immovable property, despite the fact that the ownership rights may appear to differ in the circumstances of first and second marriages. To avoid any unwanted situations, it is best to get in touch with a legal professional in the event of any inconsistencies.
The Indian real estate industry has grown significantly over the past 10 years, and Non-Resident Indians (NRIs) have significantly contributed to this boom. Due to hybrid work arrangements, a desire to return to their own country, and a desire for a higher standard of living, NRIs are more likely to buy a home in India. Read on to learn more.
Reasons for NRI Investment in India
When NRIs buy homes in India, they can make domestic investments that help the economy of the nation. Foreign investors are a significant additional source of capital for the Indian economy. NRIs can now easily participate in the rapidly growing Indian real estate market through a professional and gain from it.
Indian Currency Value
The decline of the rupee has also spurred demand for homes as NRIs try to invest their money in real estate and hedge against currency fluctuations. The INR has been losing ground since 2018, when it fell 8.6 percent against the USD: 2 percent in 2019 and 2020; 1.5 percent in 2021. Since the beginning of 2022, the value of the rupee has decreased, dropping from Rs 74.40 to an all-time low of Rs 81.88 this year.
The rupee was already under pressure from an expanding trade deficit and rising fuel prices, but it also suffered from rising US interest rates and worries about a worldwide economic collapse. The rupee’s depreciation benefits NRIs, especially those who stay in countries with stronger currencies. They have an advantage because they can buy a residence for a lot less cash than it would cost them to live in the nation after changing their balance to the local currency.
An Accommodation
Second homes are also becoming more popular among NRIs as they are increasingly viewed as assets that might produce a steady income. Purchasing a weekend home was once considered an upscale and ambitious act. Yet now, weekend homes are becoming recognized as being more prudent and safe.
Offers good returns
NRIs see investing in Indian real estate as a lucrative opportunity that will boost their earnings and help them diversify their holdings. Cities like Gurgaon, Bangalore, and Hyderabad, which are found in the US, Canada, the Middle East, Europe, and other Asian countries, have shown a definite preference for NRI investment.
In Tier 2 cities, NRI interest in acquiring substantial homes in their hometowns has also surged. The pandemic changed the dynamics of Indian families. Since many people now choose to live with their parents and grandparents, the extended family system has been strengthened.
Simplified Purchasing Process
Government investment in infrastructure has also boosted tier-two city growth and increased linkages. The linkages in tier-one cities are frequently stronger than those in tier-two and tier-three cities. Yet, due to the tremendous infrastructural growth in these locations, connectivity has improved, and there are more businesses in tier-two cities. Also, the digital infrastructure has changed along with the physical infrastructure.
In these new areas, broadband speeds have increased, mobile data costs have reduced, and there is more data availability.
Multiple options for properties
NRIs see investing in Indian real estate as a profitable opportunity that will boost their financial returns and assist them in diversifying their portfolio. NRIs have made it obvious that they prefer to invest in cities in the US, Canada, the Middle East, Europe, and other Asian countries, such as Gurgaon, Bangalore, and Hyderabad.
The habit of working from home (WFH), which began during the epidemic, is also driving demand for bigger dwellings. Professionals often seek additional space in their homes to put up workstations.
Excellent Resell Value
The preference of NRI investors for real estate over other asset classes like shares and gold has been made obvious. Real estate is thought to be the most stable asset class in the current political and economic upheavals around the world.
Gold is a commodity with a global market, and its price has climbed in contrast to underperforming debt assets. The stock market has gone through several irrationally huge swings as the world struggles with war and a global recession. For NRIs, real estate is a safe investment that will yield gains over the long haul.
Transparency
NRIs now have more faith in the government as a result of transparency reforms like the RERA Act (Real estate regulatory authority). RERA has made it feasible for real estate transactions to be more transparent. As a result, both local and NRI home purchasers now have more confidence. It is common knowledge that the Indian real estate industry has many challenges. One of the key problems is the lack of transactional openness.
The lack of confidence between buyers and sellers was the result. In order to solve this problem, Rera was created. The introduction of Rera has made it easy for people to buy or sell properties without a fuss or concern for being fooled or duped because all information about a property can be accessed on this site. Because of the enhanced openness and lack of any hidden fees involved with any transaction, both buyers and sellers are more confident, which raises property values and increases the number of transactions.
What encourages NRI investments?
India’s growth has been accelerated in recent years by a significant change in the economy. India currently has a GDP of more than $2 trillion.
A robust economy
India’s high-quality, resilient, and transparent economy, which is supported by a strong banking system, has allowed it to withstand the financial crisis.
Reputable Market
The Eminent Markets Indian Stock Exchange is one of the largest and oldest stock exchanges in the world. It is efficient, less expensive, has a modern setting, and boasts returns on investment of over 15% annually for the past ten years.
Diverse investors
The thriving service sector has made several businesses more accessible for investment. Investors are also learning the necessary information to invest in knowledge-based businesses.
Dividend in statistics
India is the youngest nation in the world, with more than 64% of its citizens of working age. Because of this, there is room for increased productivity and innovation, which will speed up economic growth.
The rapid growth of the market
Due to the market’s fast growth, traditional investments are being replaced by stock-based instruments among Indian investors. The market and stock valuation are growing, making now a great time to invest in India.
Favorable market to investors
As a result of the Indian government being more welcoming to foreign investors and the RBI developing several laws and guidelines for encouraging FDI, or Foreign Direct Investments, NRIs are turning their attention to investing in India.
Many projections predict that NRI investment in India will reach a record high of INR 96 crore in 2021. This record-breaking real estate investment is attributed to RERA’s commencement. NRI investors now have more faith in making investments in India. They benefit from having access to properties that have already been registered under RERA, dependable developers, and an easier participation process.
What led to the reversal of the NRI real estate investment in India?
For a variety of reasons, NRIs have been persuaded to invest in a lucrative area of the Indian real estate market.
Strict regulatory control
Significant drop in properties rates
More lucidity in the process
Major sectoral consolidation
Decline in Indian Rupee value
Bottom line
In the Indian real estate market, a transparent market has taken the place of an opaque and inefficient one. Thanks to technology, NRIs can now purchase and transfer real estate even if they are not physically present in India. India’s real estate boom, higher transparency standards, a declining rupee, and stronger real estate regulations are all contributing to the rise in NRI house demand. The real estate market’s strength suggests that this trend will continue for some time.
When they learn that there are additional stages required in the sale-purchase of a leasehold property, sellers and buyers are frequently caught off guard. It is crucial that either the seller or his or her broker informs the buyer that there will be additional transfer fees when purchasing a leasehold home or flat. To learn more, keep reading.
It is crucial to determine whether your home is leasehold or freehold before beginning the process of transferring ownership. It is essential since the type of property affects the sale process. Let’s first define freehold and leasehold properties before we begin the process.
Freehold Property
A freehold property, as implied by its name, is unencumbered by the control of any party but its owner. As a result, the owner retains full ownership and can use the property any way they see fit, including renovating, selling, or transferring it. A freehold property’s owner can sell it without seeking permission from the authorities, and the selling procedure is also rather simple. Buyers typically favor freehold properties over leasehold ones since the property title is permanent.
How to sell a freehold property?
Let’s say you want to sell your house (i.e. transfer the ownership of your property). If so, you can proceed with the straightforward process of signing a sale agreement with the purchaser before executing and registering a sale deed at the relevant office of the Sub-Registrar of Assurances. Click here to read more specifically about this procedure.
Leasehold property
As the name suggests, a government development agency typically leases the ownership of the land on which a property is developed. The land is leased to a different party for a specific amount of time, which can range from 30 years to 99 years and, in rare situations, even up to 999 years. For instance, the government agencies in Gurgaon, Ghaziabad, Bangalore, and Delhi give freehold lands whereas those in Noida, Greater Noida, and Navi Mumbai offer leased land.
The future of apartment buildings constructed on leasehold land is questionable because lease renewal fees are paid by the housing organization in question. Also, when the property draws closer to the conclusion of the lease time, buyers find it more difficult to obtain loans from banks.
How can you sell a leasehold property?
In a housing society, let’s imagine that you are the owner of a leasehold flat. You’ve identified a buyer, agreed on a price, and intend to proceed with the transaction.
Step 1: Preparation of the selling agreement and the “No Dues and No Objection Certificate” application are the first steps.
A “Sale Agreement” or “Agreement to Sell,” outlining all the terms and circumstances of the sale, will be drafted by the buyer’s attorney. The draft sale agreement will be sent to you by the attorney for your approval, after which both parties can proceed to the relevant Sub-Registrar of Assurances office and get the sale agreement registered.
You and the buyer will also need to file for a “No Dues and No Objection Certificate” from your housing organization. Make sure that you do not owe the society any maintenance or other fees that are past due. Amounts charged by housing societies as transfer fees can range from Rs 10,000 to Rs 25,000, depending on the type of housing complex (cheap, middle-class, or luxury). These fees are typically covered by the buyer. They may also want a copy of the sale agreement in addition to copies of the parties’ signatures on the application form and identity documents.
You and the buyer will also need to file for a “No Dues and No Objection Certificate” from your housing organisation. Make sure that you do not owe the society any maintenance or other fees that are past due. Amounts charged by housing societies as transfer fees can range from Rs 10,000 to Rs 25,000, depending on the type of housing complex (cheap, middle-class, or luxury). These fees are typically covered by the buyer. They may also want a copy of the sale agreement in addition to copies of the parties’ signatures on the application form and identity documents.
Step 2: Submit a “Memorandum of Transfer” application
After receiving the “No Dues and No Objection Certificate,” the interested government agency that owns the land and is the lessor must be contacted in order to request the “Memorandum of Transfer.” You, the owner of the leased property, have been given written approval by the relevant authority to transfer your ownership rights to the purchaser.
You can get the application form at that authority’s office or through its official website (if available). Both the buyer’s and the seller’s personal identification cards must be included with the application, along with a copy of the housing society’s No Dues and No Objection Certificate.
The buyer is responsible for paying the fees for obtaining the Memorandum of Transfer, which vary by area and can cost between Rs 2,000 and Rs 9,000 per sq m. The total fee is determined by multiplying the transfer fee per square metre by the size (in square metres) of the subject property. Visit the relevant Sub-Registrar of Assurances office to find out these costs. The transfer fees for plotted projects vary depending on the width of the road where the property is situated. Also, according to the master plan, plots facing green belts fetch higher transfer fees.
Step 3: Varification at the office of the relevant government agency
Following your application, you and the seller can be given a date on which you must both appear in person at the designated location of the governmental authority. The concerned officials will inquire about your desire to transfer the property to the buyer and ask you further questions of a similar nature. Within one to two weeks after that, you will receive the “Memorandum of Transfer” paperwork.
Step 4: Complete and file the sublease deed
After the buyer has paid you the full sum for your property as well as the required stamp duty, the buyer’s attorney will prepare and print the sale deed. The concerned sub-registrar in the office of the Sub-Registrar of Assurances shall inspect all documents and sign the sublease deed after you and the buyer have both signed it. The required registration fees will subsequently be paid by the purchaser.
The original registered sub-lease deed, which the buyer must maintain, will be provided by the sub-office registrar within one to two weeks. The seller must make a photocopy of each page of the sublease deed for their own records.
Remember that depending on the state and city your property is located in, this process and the types of paperwork needed may differ. For example, if you, the property owner, initially bought the property on the basis of an irrevocable Power of Attorney (POA) from the initial seller rather than a registered lease deed, this POA will be necessary during the selling process. As a result, it would be wise to get advice from a local real estate broker and a lawyer experienced in real estate transactions before moving through with the sale of a leasehold property.
