Real Estate

Equated Monthly Installment (EMI) sharing is a unique idea that has been introduced by real estate home builders. The scheme targets those customers who find it difficult to make EMI payments, during the construction period. You may already be aware that an EMI sharing allows a home loan borrower to refrain from paying installments till he/she secures possession of the apartment. Instead, the builder will pay the EMI, on his behalf, for a fixed period of time.  However, the builder will pay the interest alone and not the principal amount.  Remember, it is important to choose a reliable real estate home builder who has a proven track record and a good reputation in the industry.

Everywhere you go in Indian cities, you will notice that there are shopping malls, retailers and properties for commercial as well as residential use on display. Clearly, the Indian real estate market is expected to register a tremendous growth in the next twenty years, given the thriving outsourcing business and the growth in organized retail sector. The big question, however, is whether the Indian real estate laws are potent enough to meet the requirements of the changing times. Will they steer the real estate business towards actualizing its potential? Sadly, the answer is an emphatic “no,” since the country is still working with its outdated laws be it on land ownership, urban land ceiling, stamp duty and registration or rental property. So, what exactly are the problems plaguing our laws and what are their solutions? Let us find out.

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.

The Transfer of Property Act, 1882 outlines the legal formalities for transferring ownership of property in India. The act defines such a transfer may take place between individuals as well as groups, in the present or future. Besides, the transferable property may be movable or immovable.

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.