LOCATION
let’s look into the most crucial factor that affects your investment. The success of your investment depends majorly on this factor i.e. Location. When a person is investing in any residential property for capital appreciation then this factor needs to be highly taken care of. One needs to check the immediate surroundings of the location as well. It is the surroundings the location which will determine how much growth prospect lays there.
One needs to check for factors like the distance of the house from the major places, accessibility to good hospitals and schools. Reputes shopping complexes and markets are other factors which people should look in for while investing. Ensure good road connectivity and proper infrastructure which also includes elements like water supply, electricity supply, security and safety and so on.
REPUTATION OF THE BUILDER
next on the list is the reputation of the developer which is of equal importance to ensure when purchasing a property in the real estate industry. One must and must look thoroughly in the track record of the developer in whose project you are planning to invest. Check for his past projects and how are their reviews. Also, check for the quality of his projects and time delivery.
There are cases where the small builders or builder with less and no experience leave the process of approvals (which is a complex process) once the concerned project of theirs starts to sell out.
However, with the RERA bill now, such builders will be weeded out and thus will help protect the innocent home buyers who put in their hard earned money in such properties.
TAX
a homebuyer should be well aware of the capital gains which work in a residential property sale. For houses which are help for a period of more than three years, long-term capital gains will be calculated on the sale of such properties. Such capital gains by the sale of any housing asset are again put into another housing property then the sum of the amount which has been invested in the new property will be exempted from the capital gain tax.
The other property needs to be bought a year prior to the transfer of the first housing property or in two years after the property is sold. The amount of deduction is also available for people who are interested in constructing a home or in investing in some under-construction project, in both situations, the construction will be completed in three years of the sale of the first property.
In the case of sale of a property in three years of its purchase, then it will imply that seller will have to pay a short term capital gain tax.
POINTERS TO KEEP IN MIND
- Cheap is not always good. A low rate can be good for small areas which have growth prospect in the future.
- Don’t get excited with ‘Freebies’. Make sure you check the past record of the developer in terms of quality and timely delivery.
- Try and give preference to the properties which are located in the integrated townships, as they provide you will better and higher demand in the future when you plan on selling or renting.
- Check for all the documents, approvals and grants before sealing the deal with your builder.
- Give a thorough and careful read to the agreement. Ensure there are no extra charges for any service and also read the fine print regarding the sale of the property attentively.