Money Of India-Propertytips

1. Before making an investment in a home, pause for a moment and consider the size of your family, the age of different family members, today’s income-tax and wealth-tax position and, finally the impact of the proposed investment so far as income-tax and wealth tax is concerned on different family members and then decide where to invest and in whose name.

2. Property can be jointly purchased in the names of two or more family members. Even husband and wife and so also major or minor children can become joint owners in one single property. For joint purchase of property the investment by the co-owners should be in proportion with their ownership in the property.

3. Taking a home loan for investing in real estate is very good, especially for self-occupied house property. After 1st April, 1999 house property purchased with loan is entitled to yearly interest which is allowed as a deduction in respect of is Rs. 1,50,000 per annum per person.

4. If the employee is in receipt of house rent allowance he can enjoy tax benefit out of his house rent allowance payment received by him if he were to make payment on account of rent to his wife or any other member of the family.

5. It is advisable from the point of view of tax planning that each person own just one residential house property only, because one residential house property is completely exempt from wealth tax without any limit. Hence, if you are contemplating to buy a several residential house property in the family, it is advisable to do so in the names of those family members who do not own any property.

6. Commercial property is completely exempt from wealth tax. Hence, even if you own several commercial properties, you don’t have any problem of wealth tax.

7. If a person is possessing more than one residential house property but the same is let out for more than 300 days in a year then such properties are completely exempt from wealth tax.

8. If you are interested to make investment in real estate specifically from the point of view of safety and security of your daughter in the years to come, then it is recommended that you should invest in the real estate not in the name of your daughter but in the name of a 100 % specific beneficiary trust of your daughter.

9. For rental income received from any type of property whether commercial, residential or industrial, a standard deduction is permissible in respect of repairs, etc., which is equal to 30% of the property’s annual value. This deduction is permissible to all categories of tax payers whether or not they spend money on repairs. This tax deduction is really very important as it reduces the burden of income-tax payment to the extent of 30% on your rental income.

10. There is no gift tax in making gift of real estate to stipulated relatives. Hence, you can gift your properties to such people without any upper limit. However, all immovable properties would require compulsory registration to make the gift complete. Avoid making gift to your own spouse and daughter-in-law from the point of view of clubbing of income.

The above-mentioned tips relating to will help you profit from your investments in real estate.

Tips while buying a House

Buying a home is a dream of a lifetime for most of us. Before applying for a home loan, consult professionals who can help you deicide what suits you best. Here are some tips that will be helpful when you are looking for a house on your own.

While buying a flat from a promoter or builder
1. With respect to the location
  1. Check for proper approach roads.
  2. Ensure secured electricity and water connections.
  3. Ensure that well laid out drainage, sewerage and garbage disposal arrangements have been made.
  4. Is there any pollution due to industries etc in the area?
  5. Level of developmental activities of the area - adequate public transport facilities and other vital amenities like educational institutions, hospitals and shopping avenues
2. With respect to approvals
  1. Check if your builder/promoter has been granted documented approvals from Municipal Corporation, Area Development Authorities, Electricity Boards, Water Supply & Sewerage Boards, Airport Area Authorities
  2. Check if the builder/promoter has secured approvals from Pollution Control Boards, Agriculture & Forest Authorities
3. With respect to the property
  1. Check for proper Development Agreements and the authority for conveyance of title in favour of builder/promoter.
  2. Obtain a clear and marketable title of the property.
  3. Ensure execution of proper sale agreements on your initial payments.
  4. See the sanctioned plan.
  5. Register the property.
  6. Verify the plinth and carpet area of the property
4. With respect to amenities
  1. Verify the specifications given by the builder regarding including quality of construction and availability of drinking and potable water have been delivered
  2. Assess the natural lighting, ventilation, water connection & sanitary connection status of your prospective property.
  3. Check up common service area charged and their reasonability
While buying a flat from a second owner
1. With respect to the location
  1. Check for proper approach roads.
  2. Check for electricity and municipal water connections.
  3. Whether well laid out drainage, sewerage and garbage disposal arrangements are made.
  4. Pollution due to industries etc in the area.
  5. Check for developmental activities of the area.
  6. Public transport facilities in the area.
  7. Check for educational institutions, hospitals, shopping avenues nearby, green belts & rainwater drainage.
2. With respect to approvals
  1. Documented approvals from city corporation, Area Development Authorities, Electricity Boards, Water Supply & Sewerage Boards.
3. With respect to the property
  1. Title deeds of the vendor of the property.
  2. Previous title deeds covering a period of 13 years.
  3. Sanctioned plan.
  4. Encumbrance certificate for the past 13 years.
  5. Upto-date tax paid receipts.
  6. Valuation of the property from a registered valuer.
  7. Check if the flat/apartment is free from tenancy.
  8. Register the property.
4. With respect to amenities
  1. Check for the condition of the building and the future life expectancy.
  2. Whether drinking water is available.
  3. Check for natural lighting, ventilation, water connection & sanitary connection
.
While buying an independent house from a promoter/ builder
1. With respect to the location
  1. Check for proper approach roads.
  2. Check for electricity connections.
  3. Whether municipal water connections are present.
  4. Whether well laid out drainage, sewerage and garbage disposal arrangements.
  5. Pollution due to industries etc in the area.
  6. Check for developmental activities of the area.
  7. Public transport facilities in the area.
  8. Check for educational institutions, hospitals, shopping avenues nearby, green belts & rainwater drainage.
2. With respect to approvals
  1. Check if necessary approvals from city corporation, Area Development Authorities, Electricity Boards, Water Supply & Sewerage Boards, Airport Area Authorities have been obtained.
3. With respect to the property
  1. Sale deed of the vendor of the property.
  2. Clear & marketable title of the property.
  3. Sanctioned plan.
  4. Encumbrance certificate for the past 13 years.
  5. Upto-date tax paid receipts.
  6. Valuation of the property from a registered valuer.
  7. Register the property.
  8. Check plinth area of the apartment.
  9. Check carpet area of the apartment.
  10. Ensure that the price being paid for the flat, including the common service area is reasonable.
4. With respect to amenities
  1. Check for the condition of the building and the future life expectancy.
  2. Whether drinking water is available.
  3. Check for natural lighting, ventilation, water connection & sanitary connection.

Source:canfinhomes.com

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