Beach House Investment: Financials That It Entails

Weekend homes also called as second homes or vacation homes are currently an oasis of market activity in India’s real estate sector. The trend that is really catching on, nowadays, is investing in a property near the beach—your very own beach home that is also a source of regular cash flow. A beach home should be ideally bought after one’s primary home is secured. If the first home is debt free and one has sufficient reserves, then investing in a bungalow on the beach makes perfect sense.

Beach House Investment: Financials That It Entails

Beach House Investment: Financials That It Entails

Buying a beach home can be a good investment providing you with a regular source of income in the form of rent and also a place for spending vacation on the beach free of cost whenever you desire. Many real estate investors find a beach home in an area which is highly visited and with a high rental demand. The investor can make ample money to cover the expenses for the year. It gives an added benefit to the owner who can use it for free during the slack season. [Read more…]

All You Need To Know About Capital Gains Tax

What is capital gain? This is a crucial question which every layman wants answered. A capital gain is the profit that the investor earns when he sells his capital assets at a higher price than the purchase price. The transfer of the capital asset must be made in the previous year and this is taxable under the heading ‘capital gains’. So there must be a capital asset, transfer of the capital asset and profits or gains arising from the transfer. For example, when you transfer your property to someone else in the form of sales and earn a profit, it is known as capital gains.

All You Need To Know About Capital Gains Tax

All You Need To Know About Capital Gains Tax

Capital Gains include any property held by the assesse except the following-

  • Stock in trade

  • Agricultural land and other forms of real estate

  • Gold bonds, National Defence Gold Bonds and Special Bearer Bonds

  • Gold Deposit Bonds under gold deposit scheme

  • Personal effects that is movable except jewelry, sculpted art works.

[Read more…]

Benefits of Investing In Real Estate Private Equity Funds

No business can run without funds. However, funds are obliged to pay the interest on borrowed money which will come from a flourishing business. To circumvent the heavy risks of taking debt, the concept of equity has evolved which permits shareholders as legal proportionate firm holders. Stake holders provide the funds, thus enabling the operations. The property sector typically involves enterprises that are capital intensive.

Benefits of Investing In Real Estate Private Equity Funds

Benefits of Investing In Real Estate Private Equity Funds

Real estate is one of the most popular investment options for majority of Indian households, usually done by investing in residential apartments or residential plots. Like gold real estate has been regarded as a safe investment. Over the past few years, structured and formal routes in real estate have increased which is primarily a structured deal via subscription to Non-Convertible Debentures [NCD]/ Optionally Convertible Debentures [OCDs] by the SPV developing a project. [Read more…]

Explaining Tax Gains from Different Property Deals

Over the years, real estate has grown as a preferred investment option. Some have inherited the property from their ancestors, while others buy and sell real estate- but when it is sold, the motive in both cases is to earn capital gains. However, irrespective of how you have acquired theproperty, when you earn capital gains, the Income Tax Act has its eyes on you.

Explaining Tax Gains from Different Property Deals

Explaining Tax Gains from Different Property Deals

So, let’s talk about different real estate transactions and the types of tax implications they entail-

Properties Inherited or Gifted

When you sell your ancestral property or one that is gifted to you by someone, you will obviously incur capital gains/loss which will be taxed, even though you might not have spent a penny on acquiring it. In case of gifts, the cost to the previous owner indexed to the year of purchase will be used as the acquisition cost of the property. [Read more…]

All You Need to Know About Married Women’s Property Act

The government, time and again, announces several acts and reforms to protect the interests of women of our country. Married Women’s Property (MWP) Act is one such step taken by the government to protect the properties of women against creditors.

Under MWP Act, all properties belonging to a woman will be insulated and protected from tax proceedings and other court attachments that the husband has run up. It also states that any debt of a married woman, before or after the marriage, will be the liability of her husband. This is also applicable on life insurance policies provided that the husband has endorsed the policy through MWP Act.

All You Need to Know About Married Women's Property Act

All You Need to Know About Married Women’s Property Act

Let us try to understand this with an example-

A family consisting of husband, wife and children lives in Noida. They have a family business and have taken several bank loans and institutional credits. The banks lend the amount against the assets of the business along with the personal guarantee of the owner that is the husband. Now, in case of untimely death of the husband, banks start the process of recovering its loans by liquidating the assets of the business. Since there is also personal guarantee of the owner, they attach properties belonging to the guarantor which is the husband. They will also attach the life insurance of the guarantor which means that all claims went to the bank and not to the surviving members of the family. [Read more…]

Co-Owning a Property? Here is All You Need to Know

Ashish wanted to buy a home in Bangalore. Though he wanted it in central inner-city location, all property prices were exceeding his budget, and he did not want to shift to the far-off suburbs. So, he decided to co-own the property with his college friend Gaurav, who was also looking for a similar property. Both of them were aware of the importance of legalising their agreement and so they hired a lawyer to discuss the terms. They were surprised with the legalities involved in a co-owning agreement.

Co-Owning a Property? Here is All You Need to Know

Co-Owning a Property? Here is All You Need to Know

So, if you are also thinking of pooling in your funds for a joint ownership, this is what you should learn from Ashish and Gaurav.

What is Joint Ownership?

Joint ownership, also known as co-ownership, is when two or more people have rights over the same property. All co-owners hold title to the property, according to the agreement. Majorly, there are two types of co-ownership- Joint Tenancy and Tenants-in-common. In case of joint tenancy, all parties have equal rights over the property and it provides rights to ownership of the property for the co-owners who outlive other co-owners. When one co-owner dies, his rights are automatically passed on to other co-owners equally. Whereas in case of tenants-in-common agreement, the shares of co-owners are not specifically mentioned. And unlike joint tenancy, the deceased person’s share passes on to whomever that person named in his or her will. [Read more…]

Guide to Transferring Your Property

During the life of a property, there comes a time when you have to pass it on to someone else. Many of you might think that we are talking about selling it. However, there are other ways, too, of transferring a property. A sale deed does not fit the picture when you want to transfer your property to your relatives. In this case, gift deed or relinquishment deed is the best way.

Guide to Transferring Your Property

Guide to Transferring Your Property

Basically, for lawful transfer of an immovable asset such as property, you need to get the gift deed registered with proper authority. So before you get any of these deeds drafted, you must know about the pros and cons of each of them. [Read more…]

Best Localities in NCR for Residential Property Investments

Buying property for profitable investments? Delhi/NCR is the best. Well-connected to major catchments of the city such as airports, Railway Stations, National Highways, Government and Private Hospitals, several locations in NCR are largely attracting investors from India and abroad. Gurgaon and Noida are great hubs for people looking for homes but they also make great investments for those who would otherwise end up buying builder flats in Delhi. Gurgaon and Noida have recently seen such tremendous development that they’ve stretched to include more investment worthy spots as compared to Delhi.

Best Localities in NCR for Residential Property Investments

Best Localities in NCR for Residential Property Investments

If you want to join the exclusive club of the investors, here are some hot-spots to choose from.

New Gurgaon- Located in Haryana, New Gurgaon is an investor’s paradise and the current focus of many developers. Owing to better connectivity via NH-8, Kundli-Palwal Expressway and Dwarka Expressway, this is the area which will give great dividends in the near future. A large number of projects in sectors 82 to 92 have come out as great option for investors. [Read more…]

Buying to Rent Out? Here is All You Need to Know

It may be common knowledge that buying rental property can be one of the fastest and secure ways of building up serious wealth- but the ‘how to’ knowledge is not so common. The process or steps to buying rental properties are not so different from that of buying your own home, just a few differences. Nowadays, the legal rights of tenants have been made quite explicit, so as a landlord, you must also know your rights. But, first of all, you need to invest in the right type of home.

Buying to Rent Out? Here is All You Need to Know

Buying to Rent Out? Here is All You Need to Know

Step One- Do your homework before going in for the dotted line.

As soon as you have decided to buy property for rent, don’t think of the décor or paint, there are other important factors which you have to consider.

  • What kind of investment you want to buy?

  • How much can you afford to spend?

  • What kind of a neighborhood would you like to invest in?

  • What is the average rent in your area?

  • What kind of return on investment you want to make?

Doing your homework right is important. [Read more…]

Signs That a Suburb is going to See Impressive Value Appreciation

Investors always want to be the one to find the new up and coming suburb before it booms. But what are the signs to look out for? There is no better feeling than watching the value of your property skyrocket, and while some commentators look for falling vendor discounts or reduced rental vacancies, these figures aren’t readily available. There are far simpler ways to work out if your suburb is about to experience a price boom.

Signs That a Suburb is going to See Impressive Value Appreciation

Signs That a Suburb is going to See Impressive Value Appreciation

Neighboring Suburbs are in Hot Demand- The property market often experiences the ‘ripple effect’. As prices rise in one area, neighboring suburbs offer better value so demand rises in these localities often pushing up prices. If the ‘sold’ sticker is rapidly going up across homes in the neighboring towns, chances are your suburb could experience the outwards ripple of growing prices. It is a clear sign that this suburb is right for you. [Read more…]