"Property Rental Value is all set to decrease". I told this to one of the readers of this blog Mrs. B during our interaction. She is planning to buy a property in Gurgaon where the property prices already corrected by 25% post demonetization. She is of the opinion that now it is a good time to invest in the property. Maybe she is right in case she is planning to buy the property for self-use but not for investment purpose. The reason being, if you are buying the property for investment then you also need to check the property rental value. If correction of 25% in property price is accompanied ... Read More
Property for SALE – 5 Mistakes a Seller Should Avoid
I put my property for sale few months back, but i have not received many queries. Last week, one of the sellers asked me over the phone. He further added what should he do now?. He also gave me feedback that i don't frequently write for sellers. Candidly i told him that as the entire risk of a property transaction rests with the buyer. Therefore, i have a soft corner for the buyers :). I promised him series of posts on the property for sale. This post is first in the series. I hope he is reading :). Similar to property buying even when seller put his property for sale it requires proper ... Read More
Renting a Property – 5 Points to Check
Renting a Property is sometimes painful for landlords. Finding a good tenant is tough. An owner trusts the real estate agents and brokers to find a good tenant. I hardly found direct renting between landlord and the tenant. The only exception is both are known to each other. Some landlords are skeptical in renting a property to people from specific professions as a lawyer, police, etc. A landlord has their concerns in this regard. Another common complaint is that tenant is not vacating the premises. It is especially true for commercial properties. Though these units are on long-term lease ... Read More
Rental Income – How to save tax on it?
Rental Income is one of the most favorite retirement planning tools in India. As i keep highlighting that Property and Gold are two most popular investment avenues for Indians. With the grace of God, i am currently staying in my house, but my previous landlord has seven properties in Mumbai. An average rental income of Rs 30,000 means monthly rental income of Rs 2,10,000. A good enough amount to live a peaceful and luxurious life. The best part is to leave an asset to legal heirs. Besides, retirement planning i keep getting queries from my readers on taxability of rental income. Many readers ... Read More
Rent Agreement – 11 Must Have Clauses
Rent Agreement is also known as Rental Agreement or Leave and Licence Agreement. Due to high property prices & floating population there is always a huge demand for property on rent. In my previous post on Real Estate, i highlighted 10 Benefits of Staying on Rent. To enjoy these benefits, you have to take a house on rent :). Rent Agreement is signed between Owner and the Tenant. Rent Agreement can signed on a regular stamp paper of Rs 100 / Rs 200. In some places like Mumbai, most of the Rent Agreements are registered in sub-registrar office. Cost of registration is equally borne by the ... Read More
Fair Value of Property – Pay the Right Price
Whenever we plan to buy a property, The biggest dilemma for a buyer is what is the Fair Value of Property? It is because of fear of paying more than the market price. There is no straight forward answer to resolve this dilemma. In fact, sometimes people postpone purchase decisions in anticipation of price correction. In other words, they wait for the fair value of property. I am tracking real estate sector of key markets from last 6 years but i have never seen instances of sharp price correction. In last few years, prices have softened and corrected by 10%-15%. I do agree that there can be ... Read More