Is Internet The Only Mode Of Info For NRI For Real Estate Investment?

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December 15, 2016

Internet, for NRIs, is as a technological bliss. Not just it helps them connecting with people, allowing online transactions but also a medium of valuable information. Taking of NRIs searching for property, this medium can be trusted but you simply cannot rely on the information available online for making a purchase decision. A number of things need to be considered when an NRI buyer is looking for investing in Indian real estate market. What is of prime importance when entering into a property deal is physically inspecting the same. However it is quite unfortunate to note that NRIs consider it impractical to come all the way and get the property inspected physically.

Factors that led the developers to ensure online presence
The ignorant attitude or laziness on part of the NRIs when it is all about inspecting the property is what that has led to the Indian realty developers to increase their presence online. In order to grab the interest of the NRIs in real estate, these realty developers are taking up to all forms of advertisement thus leaving no ground untouched. What has given rise to the interest of the NRIs in searching and buying property online is the opportunity that they enjoy in connecting to the developers directly via the online advertisements. The digital medium indeed has proved to be an ideal forum for connecting the NRIs to the Indian real estate market market.

Why is the online medium looked upon by NRIs when making realty purchase decision?
Undertaking a survey on the reason for the preference of NRIs on the online medium for purchasing home, it has been estimated that the same is because of the opportunities it lend them in developing interactive sessions with the realty developers. Being far away from the country, it is hardly possible for them to come here and get their preferred property inspected. Hence, they rely on the online medium for checking the same. Upon finding the same of their choice, they go ahead connecting the developer. Hence while they use the online platform for reaching the Indian realty estate developers, these developers too utilize the same forum for establishing connection with Indians abroad.

Debate that Prevails
Some believe that the online platform is just capable of establishing communication between the developers and the NRIs but the same cannot influence one’s purchasing decision. Even though the developers are trying to maintain their good name over the internet and help the NRIs in every possible way with the deal but still these NRIs need a friend or family member who is a locale and can take a look over various facts like the developer’s goodwill, work quality, infrastructure of the building to be bought and others. A realty deal can be called successful only when it is finalized after cross-verification.

Real Estate Business To Be Bound With New Rules – Understand Its Effects

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Team iPropUnited

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December 14, 2016

There have been many gossips all around that regulations in the real estate sector are essential. If they are not enacted upon, the promoters are adopting many tricks that are indirectly putting pressure on the buyers and sellers. The government is blamed the most for all these, although they are not directly involved in it. Keeping all these things in view, Real Estate Regulation Act is all set to come up in the coming year, with a new set of rules. However, the following details will help you to understand your position.

Real Estate Regulation Act
There are different rules as per the RERA. The rules hold the ground for both buying and selling. Here are the summarized rules to support you –

Rule No.1
The first rule states that all the real estate projects are to be registered with the Tribunal. Unless that is registered, the property cannot be bought or sold by any promoters.

Rule No.2
The regulator’s portal must show the complete project details. This must include a layout plan and even the schedule of completion. This is the indication that the property is registered and is updated on the portal itself.

Rule No.3
The Act also states that the promoter can collect only 70% of the project cost that has to be kept in a separate bank account. All the expenses needed in the project must be made from that account. On the other hand, the amount that is deposited in that account cannot be spent on any other things or mediums. If the government finds any mismatch in the account, they have the sole right to alter the amount at any point of time.

Rule No.4
A tribunal will be established, which will be responsible for the settlement of all disputes related to the property. An additional advisory body will also be present, which will deal with the disputes along with the Development Authority of Government.

Rule No.5
The act states that all the brokers will remain under the ambit. It also states that all their activities will be monitored and uploaded in the portal to provide perfect details of the property to the buyers and sellers.

Salient Features To Support Buyers and Sellers
(RERA) is meant both for buyers and sellers. One will have to register the property with the Tribunal and in case that is not done, there can be a high amount of fine and one may have to face Real Estate Regulation Act imprisonment, too.

For buyers, they will have to pay the amount at the right time, in order to get rid of the overdue. This will be a binding effect that will be an aftermath of the registration.

The sellers will have to allot the houses at the right time. They will have to issue the essential certificates to the buyers such as the CC (Commencement Certificate). If they fail to complete the project within the estimated time, they might have to face some serious penalties.

The RERA will disclose some of the aspects in the real estate industry. The first thing is that people will get the properties that are built by licensed promoters only. On the other hand, the price of the real estate properties will be regularized. Hence, the buyers will be much safer after the act is going to be in use.

The demand is definitely there in the market, however, it is clustered in few locations only. This system will open the property owning in different parts and this will disperse the clusters. Hence, the demand will be met and finally reduce the property value.

Safety and Security
It is tentative that the act would be in action from May 2017. Now, there is a natural dilemma in real estate business among the buyers – whether they will wait for the act or go for their decision to purchase now. For them, there are a few details which might provide help. The act will enact bind the promoters more. They will have to be clear in property valuation, legal proceedings and all other things, including time binding. On the other hand, the enactment of this regulation might increase the price rate of the properties in some of the cities.

Thus, if you are willing to invest in the major cities, you can go for them now. However, once the law is entitled to regulate the Real Estate business, it will be safer to buy and sell properties.

Things To Know About Carpet Area, Built Up Area, And Super Built Up Area

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Team iPropUnited

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December 14, 2016

Carpet area, built-up area and super built-up area make the total area of a house. Before investing in properties on area basis, know about these terms perfectly. Today, real estate dealers and agents are coming up with so many new patterns, styles and types of houses that we really get tempted by the concept and actually ignore much more important things. As an investor, it is our duty that we carefully understand all the important things such as super built up area, carpet area, and built up area and how they can hamper our investment.

To purchase a property is a long-term investment and if you do not understand how these three ways affect the calculated area, then you have certainly landed up on the right page.

Carpet Area
The name itself states that carpet area is that area of the property in which you can actually lay your carpet. It is measured from wall to wall and the areas that are included in this section include the dining room, living room, dressing room, balconies, bathrooms, bedrooms, kitchen and other rooms.

Built-Up Area
Built up area also known as Plinth area is the total area which is covered under the property unit. It is calculated by adding the ducts that are present within the property unit along with external and internal walls. Thus, it includes carpet area, utility ducts, internal and external walls.

Super Built-Up Area
This area covers the built up area along with some common areas that are proportional to the unit. It is calculated by adding up the carpet area that can vary between 15% to 50%. Common areas such as lift ducts, lobby, air ducts, clubs and entire built up area are covered.

How The Above Terms Will Help You In Buying
This breakup is important so that a builder will not place any amount or a particular percentage of super built-up area as the carpet area. This means, if the price that has been quoted is Rs. 1,000 per sq ft super built-up area; it means the carpet area can be around 650-750 per sq ft. This will help you understand which are the actual carpet and super built-up areas.

From the above concept, it should by now be clear that there is a huge difference between built- up area and the carpet area. So, let the developer or agent not try to impress you with some unneeded information and make yourself thorough with the above terms so that next time you plan an investment in the property, you actually take all the above pointers into consideration carefully.

Tax Benefits On Ready Houses Over Under-Construction

Tax Savings

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Team iPropUnited

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December 12, 2016

Are you aware that going with an already constructed property can offer you tax benefits hundred times more than going with one undergoing construction? Often people are found preferring under-construction properties over ready to move houses. Analyzing the reason, it has been found that it is the low cost of the under-construction houses that attract the buyers. But, getting driven by such low rates what they miss is realizing the potential risks involved in relation with the income tax and other financial implications. Hence, while going with the low rate houses, what people end up with is incurring huge bucks for income tax.

Benefits Offered by Income Tax Act 24(b)
As of the present scenario, it cannot be overlooked that property prices in the metro cities are going up each day. Without home loan, it is hardly possible for an average man to get a house. But what Income Tax Act Sec. 24 (b) offer is a considerable deduction over the interest paid on the sum borrowed for construction, purchase or accomplishing repairs of an apartment. One can however claim this only after the task is accomplished and there is a document ready for satisfying the same. The interest you paid throughout the construction period is liable to be claimed any time over the span of five years in 5 installments once you take over the possession. What is important to note in this regard is if you sell the property within this 5-year span, you will lose the option of claiming your Pre-EMI interest.

Tax Benefits Over the Interest To Be Paid in Home Loans
While the maximum deductible interest amount is restricted to Rs. 2 lakhs, there prevails a chance of Rs. 30,000 being deducted in case you make delay with the possession of the property over 5 years. Where the risk prevails with under construction properties is the delay with possession. On the contrary, with ready to go houses, such issues can be avoided reliably. Again, if you intend to sell the property within this span of 5 year, you will end up losing this tax benefit on house on a whole. Not just you enjoy deduction over the interest to be paid, section 80 C of Income Tax Act also offer you with a deduction of Rs. 1,50,000 over the principal loan repayment amount obtained from certain specific entities. But this benefit, too, is available after you take over the possession. Also, you have the chances of losing the benefit upon making delays with the possession.

Benefits offered by Income Tax Act sec 54 and 54F- exemption from capital gains(long term)
Now that you have learned tits on tax benefits upon buying property, there is another benefit that you obtain from selling your property. Income Tax Act section 54 and 54F allow you with an exemption from capital gains (long term). This means that if you invest the amount you gained from the sale of your residential house on another undergoing construction within a span of 3 years from the sale date, then you are liable for enjoying the tax benefit offered by the above mentioned sections. But any delay with the possession might lead you to pay some taxes for your capital gains. So, though you enjoy certain benefits going for under construction property, the risk of delay in possession can let go all in vain.

Laws And Procedure For Property Registration In India

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Team iPropUnited

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December 11, 2016

According to Indian Registration Act- section 17, any transaction of immovable property amounting more than Rs. 100 is mandatory to be registered. This is a direct indication for registration of all the deals related to immovable property in India. Along with this, immovable property that is offered on gift deed or on a lease period exceeding a year, registration of all documents is mandatory. In case the party fails to reach the office of the sub registrar, the sub registrar is entitled to appoint any deputy officer for accepting documents for registration directly from the party’s house.

It is mandatory to get all the documents related to the purchase and sale of any immovable property in India registered so as to prevent fraudulent and restore the evidence of ownership. There are laws and procedure for registering a property in India.

Procedure of the Registration Process and Documents to be Submitted
Before proceeding further with the registration procedure and the documents required for transferring property ownership, you need to learn that immovable property refers to building and land. The documents for registration of the property needs to be submitted to the Sub Registrar under whose jurisdiction the property comes. Both the buyer and the seller along with their witnesses need to be present at the office at the time of property registration. These signatories further need to carry with them some ID proofs such as PAN card, Aadhar Card, Ration Card and others authorized by the Government. In case you are serving as a signatory for someone else, you need to provide the POA or Power of Authority documents.

Get the Stamp Duty Done Poperly
Along with your Id proofs and property documents, you also need to provide the sub-registrar the payment deed stamped duly by the court. The sub registrar will get the documents verified before getting them registered. However, if any deficit is found with stamp duty, the registration process can be refused by the registrar. Hence, it is essential to ensure that the paper work is done thoroughly before up approach the sub registrar for helping you out with the property registration process.

A Look into Time and Fees Consideration
The documents that are to be registered mandatorily needs to be presented to the sub-registrar within just 4 months from their execution along with the registration fees. In case you are unable to make the application for registration within this time limit, you need to explain the registrar in written the cause of such delay. The registrar will get the documents registered upon payment of fine on your part. This amount can be ten times that of the actual registration fees. In this context of registration, it is important to know that while earlier the documents of registration were returned to you after a time span of 6 months, now with digitalization, these documents are returned to you at very same day after getting them scanned.

Remember, any failure on your part in property registration process will bring about huge trouble in future.

Greater Noida West Soon To Have 15-km Metro Link To Noida

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Team iPropUnited

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December 10, 2016

Greater Noida West will soon have metro link to Noida as UP govt. gives a nod to the 15-km metro proposal connecting Sector 71 of Noida and Knowledge Park V of Greater Noida. This metro connectivity may boost the buyers and investors to invest in Greater Noida real estate. However, not before March 2021 the two suburbs will have the connectivity, as per the deadline decided by NMRC.

The proposed plan has been laid by the state government in consideration with the convenience in buying homes in Greater Noida West as well as nearby Crossings Republik in Ghaziabad. The later encompasses 30,000 occupied housing units out of 36,000 of total housing units.

noida-greater noida metro route — The under-construction 30-km metro line and proposed 15-km metro line will meet at Sector 71 station.

Moreover, Greater Noida is currently witnessing around 3.5 Lakh of under-construction housing projects of which merely 40,000 units are occupied and rest are still awaiting the reason to be sold out, may be.

The 15-km Noida – Greater Noida West metro will cover most of the localities at the corridor of Greater Noida. The preeminent track of the project will be covering nine stations and will be constructed on Vikas Marg divider that well connects Noida with Greater Noida West along with the road that runs through residential, educational, and industrial areas in Greater Noida.

The proposed metro project will be covering Noida’s sectors 63, 66, 67, 71, 72, 118, 119, 122 and the areas along the metro track. Where as in Greater Noida, Knowledge Park 1, 2, 3, 4, and 5 along with Sectors 1, and 10 will be on the metro route.

This advantageous metro project to be laid down soon by the state government is worth ₹3,884 Crore.

To Buy A House Or To Rent A House ?

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Team iPropUnited

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December 8, 2016

Indeed, both the ideas are perfect in terms of financial security while safe dwelling. We generally argue on when and where to buy a house. But that’s not worth discussing. We shall discuss whether to buy a house or to live in a rented house. Both have their own benefits and drawbacks. Where buying a house is a great responsibility, rented house is free from banks and paper formalities. Nevertheless, on the other hand, owned house always give a sense of security, rented house may not able to provide the security if living in same house for many years. So, let’s check out when you should buy a property and when to rent them up –

To Buy A House
A home that is owned is purely and solely yours. No one – means No One – can ask to vacant it till the time you are taking care of all the banks’ norms, paying EMIs in time and not being fraud to the financial institution. You can buy home in case –

You have enough funds
If you have saved up sufficient funds for paying marginal value of the bank loan then you can go for buying a house. Banks, generally, approve 80 to 85 per cent of home loan and 15 to 20 per cent of the marginal cost is to be beard by the buyer. If you have saved the 20 per cent of the capital value of the property, you can easily purchase a house.

You have planned to settle down
In case your roaming days are over or do not have any roaming plan then you can buy a home for yourself to settle down at one location. Or, if you are looking for safety of your family while you are roaming around the cities or countries, buy a home for their safety while you are away.

The property price is downfacing
If you have saved up some good amount for house and you find the price of property dipping down, you shouldn’t wait for further depreciation in coming years. Not always does it happen, but people who generally think of purchasing house after major price revaluation usually have to pay more because of sudden capital appreciation.

To Rent A House
It is always wise for a man to live in the house built by a fool. At least this is what a British proverb says. You have many reasons why you shall stay in a rented house. You can rent a house in case –

You don’t have sufficient fund
Renting a house is wise in case you do not have sufficient fund to cover the marginal cost of the home. It has been observed that the rent to be paid accounts for 2 to 4 per cent of the capital value of the property while borrowing home loan may cost around 10 per cent of the property value. It leaves a gap of around 8 per cent. If this 8 per cent is really a big amount for you then you should go for renting a house.

If you have to roam around the cities
By chance, if you are in a job where you have to travel from place to place, it is always recommended to rent up the houses wherever you go. For buying a house, the locality is a measure concern. Till the time, you are not sure of settling down or of the locality where to settle down, renting a home will be wise.

You have to decide the location
If you have just arrived from a foreign country (in case of an NRI) and you have sufficient fund in your account to fund a house but confused with the locality, you can rent a house till the time you are not sure of the city of your choice. And even if you are planning to relocate from one city to another, you can still rent a house for few days or months to have proper tap on the city.

Owning a house, no doubt, is always a better idea for it provides mental peace and security. Decision is all yours!

Faridabad–Noida–Ghaziabad Expressway: Reason For More Housing In Faridabad

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Team iPropUnited

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December 7, 2016

Those who have already purchased properties in Faridabad can appreciate them now. FNG (Faridabad – Noida – Ghaziabad) Expressway has now opened the way for easy travelling from Faridabad to Ghaziabad and vice-versa. It was just a few days ago, it used to be an imprudent decision to purchase a home in Faridabad. Connectivity issues had always pulled investors and buyers’ hands back while investing in Faridabad real estate.

Investing in houses is always beneficial. Some people might had been aware of the fact and hence, purchased properties at lower rate as ₹2000 per sq. ft. few years ago despite knowing that they would not be able to live there and neither they will find tenants for their homes. And today, the same sin seems to be turning out as blessings for many.
It was just few days back when people wanted to sell their properties in Faridabad thinking that they can hardly make any plan to shift to the Faridabad area and rarely they could find any buyer for the home. Courtesy Faridabad – Noida – Ghaziabad Expressway proposal, the owners now have a sigh of relief.

Intelligent Decision
Decisions taken few years back might not looked wise at that time. But now, when FNG Expressway is in process, the decision seems to be an intelligent move. The properties purchased at that time could be due to the following reasons –

Retirement
Many people had invested in Faridabad properties for the purpose of retirement days. Those who have purchased the properties in Faridabad or Greater Faridabad regions thinking of their retirement, knowingly or unknowingly, made a wise decision.

Price Value Constraints
Many of the buyers had to purchase the property due to their unaffordability of buying properties at high rate. Co-incidentally, the properties purchased under price value constraints will now be turned as blissful for the owners as the houses will now have appreciated value. The rate of property in Faridabad at one time was ₹2000 per sq. ft. (approx.) while at the same time the property rate in Ghaziabad was elevating with minimum value as ₹3000 per sq. ft. (approx.)

Investment Purpose
While some good investors made a call to invest in the projects in Faridabad to harvest long-term benefit. Those who had invested in Faridabad projects with the same purpose will now be working on the harvesting plans.

What’s There For Builders and Developers?
A big opportunity! They are looking forward to get engaged in the projects in these areas nearby the proposed expressway before the completion. The plan is surely going to improve the connectivity between projects and properties lying at the FNG corridor.

FNG Expressway Plan
The preliminary plan depicts the length of the corridor as 56 kms which will be connecting National Highway (NH) 24 (Ghaziabad) and National Highway (NH) 2 (Delhi-Agra highway). Two bridges across the Yamuna Bank will be constructed to give a smooth Noida-Faridabad connectivity. The plan, thus, seems to be destined for the complete transformation of the property markets around the FNG Express surrounding areas and their urban landscape.

Revaluation NCR Property Market
With the improvement in connectivity, the FNG Expressway will revaluate the property market of NCR regions. More of large ticket-size investment and huge economic opportunities will soon be witnessed and will be carrying long-term chain effect. The FNG Expressway is also expected to be a helpful move for small-value markets in order for scaling up and advancing their liveability.

Team iPropUnited

Is Internet The Only Mode Of Info For NRI For Real Estate Investment?

Real Estate Business To Be Bound With New Rules – Understand Its Effects

Things To Know About Carpet Area, Built Up Area, And Super Built Up Area

Top 10 Ready To Move 3BHK Flats In Noida Under Rs. 50 Lakh

Tax Benefits On Ready Houses Over Under-Construction

Laws And Procedure For Property Registration In India

Greater Noida West Soon To Have 15-km Metro Link To Noida

Top 10 Ready To Move 1 BHK Flats In Gurgaon

To Buy A House Or To Rent A House ?

Faridabad–Noida–Ghaziabad Expressway: Reason For More Housing In Faridabad

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