Real Estate

The Indian housing industry abounds in real estate companies of all sorts, big, small and new. Since there is no regulatory authority to check their functioning, investors are often duped into unreliable transactions by attractive sales strategies and marketing techniques. Disputes related to the escalation of costs, delay in completion of projects, absence of clearance certificates, and non-inclusion of costs for fittings are quite common.

When you are investing in real estate, a number of questions may arise in your mind. More so, you may not even know what to ask. The following are some basic questions that every investor should ask and find the answer for in the context of real estate laws in India.

Property tax laws revision is expected soon. Tax obligation on a property commences as soon as one takes ownership of the property. This implies that an individual is liable for taxes even before and during the construction. The current Union Budget set a 10 percent service tax on 33 percent of the net cost of under-construction homes. This effectively adds to the cost of properties by 3.3%.

An investment in real estate is generally a long-term commitment; wherein the funds may be blocked for as much as 15-20 years to gain a decent return. Also, considering the fact that purchasing a real estate property requires large amount of funds, it is wise to take the plunge after careful deliberation. For the average investor, the best strategy to invest in real estate in India is to finance at least a part of the property with a loan.

In India, buying a house of your own is like a dream come true but if you are not aware of the essential laws pertaining to buying a new house, it can turn into a nightmare. Builders and property dealers will show you their glossy brochures and pricing models but they will not educate you with necessary legal tips while buying a new house.

In India, there are several income tax rules for investing in property. Typically, investing in immovable property is considered to be a very good form of investment.