Property Thane

February 2022

Real estate is something that is permanently attached to the land. This includes man-made additions on the land like buildings, houses, apartments, shops, etc. There are three terms in real estate which are often confused and interchanged:

• Real property: This property refers to the inherent ownership to use the land and benefits and have rights.
• Land: Anything which is below the center of the earth to the airspace above, including trees, buildings, etc.
• Real estate: This includes land and any additions made by humans like building, houses, apartments, shops, etc.

Real estate can be broadly classified into five broad types. They are residential real estate, commercial real estate, industrial real estate, land, and special houses. In this article, you will get detailed knowledge of residential property and commercial property, their characteristics, and the differences between residential and commercial property.

What is a Residential Property?

Alley with office buildings in modern Budapest area Residential property is a place where houses are built for the purpose of staying in or residing. These houses are completely for self-use and cannot be used for industrial or commercial purposes. A residential house can be broadly classified into the following types:Different Types of Residential Properties

• Stand-alone house: As the name suggests, this is a type of house that is a free-standing residential building. This is also known as a detached house, detached residence, single-family home, and single-detached dwelling.
• Multi-family residential: This is also known as a multi-dwelling unit or MDU. Here, there will be multiple separate houses for residential purposes inside one building. This can be built either one next to another one or one on top of the other. Common examples include apartments, mixed-use buildings, row house or brownstone, bedsit, cluster house, condominium, deck access, flats, four-plus ones, garage-apartment, Garlow, warehouse version, Maisonette, penthouse, plattenbau, terraced house, triple-decker, etc.
• Mobile home: This type of house can be moved from one place to another. Most common examples include park homes, trailer homes, caravan, RV, motorhome, etc.
• Duplexes: These are the housing type where one house has two distinct dwelling units with two separate entrances, but a single structure.

Things to Consider Before Buying Residential Property

• The home must be properly ventilated
• Space must be well utilized
• The material used for construction is of superior quality
• The height of the ceiling should be at least 10-12 feet
• There should be enough space for all the compartments of the house
• Quality fittings

Benefits of Residential Property

• Comparatively lesser cost: residential properties cost lesser than commercial properties. If you are a beginner and want to invest money in real estate, investing in residential property is a great option.
• Fewer complications: residential properties do not have many regulations as in the case of commercial properties. It’s easy to own and use.
• Easy to find tenants: If you are holding a residential property, finding a tenant is easier since you can decide whether the tenants can stay for the long term or short term.
• Small scale operation: Residential homes operate on a small scale compared to commercial properties. Hence, fewer complications.

What is a Commercial Property?

Commercial properties are used for non-residential purposes like hotels, business, office, retail, public facilities, industries, etc. This property will be used to run businesses. The owner can use the property by himself for business or rent it out partially or fully to the tenants.

Types of Commercial Properties

• Office buildings: This includes small professional office buildings, single-tenant buildings, downtown skyscrapers, etc.
• Retail buildings: This includes small shopping centres, grocery stores, power centres, restaurants, etc.
• Multi-family buildings: This includes high-rise apartment buildings or complexes.
• Land: This includes raw, undeveloped, or underdeveloped land which will be commercialized in the near future.
• Miscellaneous: This includes all other commercial buildings including hospitality, self-storage developments, medical, and many more.

Things to Consider Before Buying Commercial Property

• Availability of different modes of transport
• Connectivity to major commercial hubs
• Growth potential of the property
• Industries around the property location
• Infrastructure facilities available

Benefits of a Commercial Property

• Return on Investment: The return on investment is higher compared to residential properties since commercial properties will usually be located in prime locations.
• Lower maintenance cost: The amenities provided are less compared to residential properties, hence the maintenance cost is less.
• Qualified tenants: The tenants of the commercial property tend to respect the buildings since they are backed up by larger companies.
• Triple-net lease: This is a form of lease agreement where the tenant is responsible for any ongoing expenses of the building like maintenance cost, taxes, insurance, etc. Many companies like McDonald’s, Starbucks, etc., get into this agreement to maintain their brand image.

Differences Between Residential and Commercial Property

• Loans: The loan for a residential property will be provided for the individual owner of the property, whereas for the commercial property, the loan will be provided for the business entity. The procedures and paperwork for a commercial property loan are lengthy and require many documents like who is going to pay the loan, additional maintenance cost, tenure, etc. Also, the terms and conditions are involved with heavy restrictions and penalties.
• Electricity rates: Although both the properties use electricity from the same source, the rates differ for both residential and commercial properties. Some businesses purchase electricity in bulk for their operations and get some tax benefits in their bill.
• Difficulties in purchasing: Residential properties are easier to buy than commercial properties. The commercial property owner has to undergo a significant amount of investigations before making an investment.
• Returns profile: The return of investment is usually higher with commercial properties compared to residential properties. The commercial properties are usually leased out for more than 10 years, where the owner gets the bulk money. The ROI for residential property is around 4-10% and for a commercial property, it is around 6-12%.
• Risk profile: The commercial properties are leased out for a longer period of time and give the owner a stable income. But, in the residential properties, the rent period is very short. Also, the notice period is very short, hence the tenor many leave soon. But that is not the case with commercial properties since they have a longer notice period.
• Maintenance: The maintenance cost for residential property is very less. The tenants use the building 24/7 and the problems that may arise because the usage is very minimal and the repair cost is less. However, the maintenance of commercial properties is expensive because of the larger machines and equipment. Sometimes, an on-site manager is required to manage the property and its maintenance.
• Contracts: for both types of properties, you have to sign either rent or lease contracts to use the property. But in the residential property, the rental contracts are signed for the short term and are less complicated. The commercial properties, on the other hand, in-depth and complex renting contracts based on accounting standard 19 and will be signed for a long term.
• Location: The location of the property matters the most for a commercial building since many factors like transportation, water, amenities, etc. affect the running of the business. Residential property need not be in a prime location as it is only for residing.
• Law: The residential legislation supports tenants over the owners. Hence, it can be difficult to evict the tenants. On the other hand, commercial property’s lease or rent is agreed upon by both parties with contract law.

Source: www.nobroker.in

Get To Know About: Which is more attractive: Rental income from residential or commercial property?

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February 2022

In the banking sector, a central bank controls all the commercial or domestic banks throughout the country. Apart from laying down specific financial laws and guidelines, a central bank also decides the introductory rate of interest at which other banks can borrow loans in case of financial losses or cash crunch. In India, the central bank is the RBI (Reserve Bank of India). According to the Banking Regulation Act, 1949, RBI has the power to inspect and supervise the operations of any commercial banks in the country. RBI also sets the bank rate and the repo rate for other banking institutions to borrow loans. Even though most people usually assume bank and repo rates to be the same, there are some noticeable differences that we must be aware of. To know more about bank rate vs repo rate, keep on reading.

What is The Bank Rate?

In cases of cash crunch, commercial banks often take a loan from the central bank to keep the operations running. According to the country’s monetary policy, the central bank can then lend short-term loans to these banks at a particular rate of interest. This rate of interest is known as the bank rate.

The bank rate ultimately affects how an ordinary citizen can borrow money from the said commercial banks. Therefore, policymakers set the bank rate so that the balance in the economy is maintained. Thus, when the policymakers decide to reduce the bank rate, it helps stimulate the economy as the interest rate for common citizens also reduces. In such a case, more people borrow money from banks, and there is a noticeable increase in expenditures all over the nation.

When the bank rate is reduced, commercial banks lower their interest rates for ordinary people. It means more investment and expenditure all over the nation.

Similarly, when there are chances of inflation due to a rapid spike in the economy, the bank rate increases. Thus, as loans get more costly, the money supply is automatically lessened, and expenditure is visible.

Therefore, we can say that the bank rate is an impactful factor that helps guide our economy in a certain way. The central bank alters bank rates to control the supply and demand of a currency in the nation. For example, when there is a notable increase in unemployment, the bank rate is reduced to facilitate more people getting loans at a cheaper rate.

What is the Repo Rate?

Commercial banks can take loans from the central bank against some collateral like securities or bonds to maintain liquidity in the market. In such situations, the bank promises to buy back its security from the central bank. The rate at which commercial banks buy back their security at any decided rate is known as the Repo rate. Repo rates affect liquidity, inflation and currency supply in the country.

RBI, along with the Monetary Policy Committee, decides the bank rate and repo rate, thus affecting the growth of the nation’s economy.

When there’s high inflation in the market, the central bank tries to reduce the money supply. To do that, the repo rate is increased. It makes things challenging for banks and other business organizations to borrow money. Thus, there is less investment in the market, and ultimately the economy slows down. Even though this leads to a negative impact on the economy, the inflation rate is also reduced.

When the repo rate is reduced, currency supply in the market increases. As a result, businesses find it easy to borrow money. Since the cash flow increases, there’s a noticeable boost in the economy.

Bank Rate Vs Repo Rate: What is the Difference?

Bank Rate Vs Repo Rate Latest Update: The Reserve Bank of India (RBI) dropped the repo rate by 75 basis points on March 27, 2020. (bps). The repo rate was reduced from 5.15% to 4.40% as a result of the decrease. The bank rate is currently 4.65%. Borrowers will be able to acquire loans at lower interest rates if the bank rate and the repo rate are both reduced.

Definition: When there is a cash crunch in the market, the bank rate is applied on the loan that the central bank offers to commercial banks. At the same time, the repo rate is charged for commercial banks purchasing back their securities from the central bank.

Collateral: One of the major bank rate and repo rate differences is that the bank rate never involves any form of collateral, while the repo rate always involves collateral like securities, bonds or agreements.

Value: Bank rates are always higher than repo rates.

Deals With: The bank rate directly affects the country’s customers because it alters how an average citizen can borrow money from the banks. But the repo rate affects banks and other business organizations.

Purpose Bank Rate vs Repo Rate: Bank rates focus on dealing with commercial banks’ long-term financial requirements, while repo rates help deal with short-term financial goals.

What is the Difference Between Repo Rate and Bank Rate Usual Timeline: The time limit for loans taken under bank rates lasts longer than 28 days. But in the case of repo rates, loans are usually overnight and dealt with within one day.

Repurchasing Effects Due to the Difference Between Repo and Bank Rate: Based on the general definition, we can conclude that no repurchase agreements are involved with bank rates. However, the concept of repo rates itself is based on a repurchase agreement.

Bank Rate Repo Rate Difference as a Deciding Factor: Bank rates help determine the lending rates for loans in our country. Whereas repo rates help maintain a balance in the liquidity in our nation.

What is the Reverse Repo Rate?

For maintaining the currency supply in the nation, the central bank borrows money from other banking institutions. Thus, other commercial banks can avail benefits and earn interest as profit while their money is safely stored with the central bank. The reverse repo rate is the interest that RBI pays to other commercial banks for borrowing their funds.

When the cash flow in the market increases, the reverse repo rate is also increased. It motivates other banks to store their money with RBI, thus ultimately reducing the chances of more loans to citizens or business organizations. This helps reduce the currency flow and maintain a balance in the economy.

The reverse repo rate is the rate at which RBI borrows money from commercial banks.

The common difference between the reverse repo rate and repo rate is repurchasing agreement. While the repo rate is decided for the repurchase of collateral, there is no such agreement in the case of the reverse repo rate. Also, the reverse repo rate is usually lesser than the repo rate.

In every country, an apex banking institution has power over other commercialand domestic banking institutions. This central bank is responsible for keeping a balance in the economy and maintaining liquidity. But when there’s a visible cash crunch or sudden increase or decrease in inflation, the central bank changes the bank rate and repo rate accordingly. RBI (Reserve Bank of India) sets a fixed rate for lending loans to commercial banks in India, known as the bank rate. But when the loan is given on securities, the commercial banks promise to purchase their collateral at a predetermined time. The rate at which the collateral is purchased back from the RBI is termed the repo rate. The bank rate directly affects the customers’ ability to borrow loans from the banks, while the repo rate affects the business organizations or banking institutions in case of liquidity. No matter how similar both these terms sound, there’s a visible difference in the case of bank rate vs repo rate.

Source: www.nobroker.in

Get To Know About: Everything You Need to Know About TDS on Sale of Property by NRI

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February 2022

TDS is needed to be deducted from the acquisition or sale of any real estate property. When the Buyer pays the Seller, they will deduct a certain amount (officially referred to as TDS) and then pay the remaining balance to the Seller. The Buyer would subsequently be obligated to submit the sum that has been deducted from their account on behalf of TDS on property purchase from NRI price with the Income Tax Department. The amount that would be deducted would be determined by the Seller’s residency status at the sale. In the case of a resident Indian seller, the amount of TDS on sale of property by NRI to be deducted would be 1 per cent of the Sale Price; however, in the case of a non-resident Indian seller, the number of TDS to be deducted would be dependent on the amount of money received by the Seller.

The residential status of the Buyer would not be taken into consideration, and only the residential status of the Seller would be taken into consideration when calculating the amount of TDS on sale of property by NRI to be deducted.

In accordance with TDS on purchase of property from NRI section 195, the TDS on the sale of real estate by an NRI must be deducted, and it is preferably needed to be deducted on the Capital Gains. The Seller can’t compute their capital gains independently; instead, the Income Tax Officer is responsible for this task.

TDS Payment, TDS Return, and TAN Number

Importance of TAN number for NRI when submitting TDS certificates.

When purchasing a home from an NRI, a slew of legal requirements must be followed. First and foremost, the Buyer must obtain a TAN number to deduct TDS. When purchasing a property from a Resident Indian, a TAN number is not necessary; however, a TAN number is required when purchasing a property from a Non-Resident Indian.

In contrast to a PAN Number, a TAN Number is an abbreviation for Tax Deduction and Collection Account No. Only the Buyer is needed to have this TAN number; the Seller is not obliged to have this number. If the Buyer does not already have a TAN number, he should request one before the deduction of TDS on sale of property by NRI. It is vital to remember that if there are two purchasers, they will be needed to register for a TAN Number.

The Buyer’s responsibility is to deposit the TDS on sale of property by NRI thus collected with the Income Tax Department within seven days after the end of the month in which the Buyer collected the TDS.

This TDS for NRI property sale needs to be submitted with Challan No./ ITNS 281 and maybe deposited online and via a variety of financial institutions.

Following the receipt of the TDS deposit, the Buyer is obliged to submit a TDS Return. This TDS Return must be submitted in TDS on sale of property by NRI form 27Q and must be submitted individually for each quarter in which TDS has been deducted from the gross income. This TDS Return must be submitted within 31 days after the end of the quarter in which the TDS has been deducted unless an extension is granted.

Tax Consequences for Non-Resident Indians (NRIs) Who Sell Property in India

TDS deducted for property purchase by NRI can be paid without visiting India.

The amount of TDS on sale of immovable property by non-resident Indians will be determined by the length of time you have owned the property. It is necessary to pay long-term capital gains tax on property that has been in your possession for more than two years if you sell it after that period. The short-term capital gains tax will apply if a property is held for less than two years. A property’s purchase date by the original owner will be taken into account for computing capital gains on a property that has been passed down through the family before the rate of NRI TDS on the property.

Things That Must Be Taken Care of by the Seller

The Seller should keep the following considerations in mind when it comes to the deduction of TDS for sale of property by NRI.

• Make an effort to get a Certificate from the Income Tax Department to compute capital gains, which would decrease the amount of TDS that must be deducted.
• Several papers, such as the purchase price, the date of purchase, and any costs incurred during renovation or construction, would be needed to be supplied with Form 13 before the TDS on purchase of property by NRI. A certificate for lesser TDS rate on sale of property by NRI deduction will be issued by the Income Tax Officer once he has reviewed the papers and determined that they are satisfactory.
• Unless the Seller can get the Certificate, the TDS on immovable property sale by NRI will be deducted from the Sale Value, which will result in an overpayment of TDS to the government.
• The Seller should collect form 16A from the Buyer in addition to the property registration documents.
• If the Seller wants to reinvest the Capital Gains in India, they may minimize the amount of Capital Gains realized, resulting in lower TDS on sale of property for NRI and tax liability.
• The Seller may also seek a refund of the excess TDS deducted at the end of the year if he does not want to get this Certificate from HMRC.
• It would be necessary for both sellers (co-owners) to submit Form 13 individually to reduce the TDS rate on purchase of property from NRI if there are two sellers.
• The terms of the reduced TDS Certificate apply to both NRIs and holders of OCI cards, and OCI cardholders may take advantage of the benefit in the same way as NRIs.

Things That Must Be Taken Care of by the Buyer

Different taxes that the buyer must pay on behalf of the seller in India.

The Buyer’s responsibility is to bear a great deal of responsibility when purchasing a property from an NRI. The Buyer is required to do the following:

• Rather than deducting TDS at the time of each payment, TDS should be deducted at the time of property registration.
• The TDS on sale of property by NRI above 50 lakhs that has been deducted must be submitted to the Income Tax Department in accordance with the schedule for depositing TDS.
• TDS Returns must also be filed with the Income Tax Department according to the timetable for submitting TDS Returns.
• Immediately after submitting the TDS Return, the Buyer must also provide the Seller with Form 16A. Form 16A is a TDS Certificate, which certifies that the Buyer has deposited the TDS with the Seller and has received the TDS.
• In the event of late payment of TDS, interest at the property purchase from NRI TDS rate of 1 percent / 1.5 percent per month will be charged.
• A Rs. 200 per day penalty will be assessed on anybody who files their TDS Returns beyond the due date. Also possible is a penalty of up to Rs. 1 lakh levied by the Income Tax Officer.
• For Home Loans, TDS on sale of property by NRI is to be deducted when the payment is made to the Seller, rather than when the EMI is paid to the Bank, as is the case with other loans.

How To Avoid Double Taxation on Property Sales by Non-Resident Indians in Two Countries

The double taxation avoidance agreement between India and USA is a blessing for the NRI property sellers.

Many countries pay a tax on the sale of real estate by their citizens, regardless of where the property is located in the world.

Example: If an NRI resident in the United States sells property in India, both the United States and India will impose a tax on the transaction, including the TDS rate on sale of immovable property by NRI. Because the NRI is a resident of the United States, the United States will impose a tax. India will levy tax because the property is situated in India, resulting in double taxation.

Nevertheless, India has engaged in Double Taxation Avoidance Agreements with several other nations to prevent the imposition of double taxation. These agreements stipulate that if a person has paid Tax on Sale of Property in India, they may be eligible to get a tax credit for the TDS on sale of immovable property by NRI in India, which would lower their tax burden in the nation where the property was sold. In this scenario, proper disclosures must be made in the nation where the tax credit is being claimed to be valid.

Consider the following scenario: if you are an NRI resident in the United States and sell a property in India, you would be obliged to report such profits or losses on the sale of property in your United States Tax Return under Section D of Form 1040. Furthermore, when paying taxes to the United States government, you may deduct the taxes you paid to the Indian government (not including the TDS on sale of immovable property by NRI) since India and the United States have a Double Taxation Avoidance Agreement.

NRIs are responsible for the repatriation of money they have earned outside of India. It is worth noting that the TDS on sale of property by NRI below 50 lakhs is the same as above 50 lakhs The NRI would also be needed to submit Form 15CA and Form 15CB to the Bank to repatriate the money earned from the sale of property in India received outside of India. These forms must be prepared from the Income Tax Website and then submitted to the Bank. However, only a Chartered Accountant can prepare Form 15CB, while Form 15CA may be generated by either the NRI or their Chartered Accountant/Chartered Accountant. It is also necessary for the Chartered Accountant to sign and stamp Form 15CB as well.

Source: www.nobroker.in

Get To Know About: Top 5 mistakes to avoid when investing in commercial real estate

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February 2022

There is hardly any architectural design in India devoid of the ancient rules of Vastu Shastra. Literally translating to ‘the science of architecture, the texts of Vastu Shastra (from the textual parts of Vastu Vidya i.e., the broad knowledge of architecture as well as design theories in India) have laid down the principles of spatial geometry, space arrangement, layout, directions and more for any building. Just like peace, prosperity, and harmony in our homes, the ‘doctrine of dwelling’ and its associated scientific principles also apply to businesses. Given that financial success is the ultimate objective of any business, Vastu for shops must be also followed, so that not only is there positivity and teamwork at the workplace, the financial stability of the business is also maintained with steady cash flow and avoidance of financial pitfalls. So, if you are looking to build a business space that is set for success, be sure to check out our Vastu tips for shops.

Directions For Success with Vastu for Shops

Directions matter a lot with Vastu for shops so that peace and prosperity is invited in. Directions have a vital role to play according to Vastu Shastra. Even in the ancient days, the sun offered the sense of best direction for the shop as per Vastu. Today we have the compass to guide us for directions. For example, the north direction or the north pole offers amazing positive energy for the people residing or working in a building and therefore is great for shop entrance as per Vastu. As per Indian mythology, the north direction is governed by the deity Lord Kuber, one who represents wealth, prosperity, and glory. Similarly, the south direction is considered to be one that brings bad omens, given it is governed by the God of death, Yam. While we will get into the reasons and guidelines as per Vastu for shops in this blog, it is always prudent to ensure all the décor and elements of the shop follow the Shastra or the compendium.

Rules of Vastu for Shop Facing North

As mentioned before, the North is a great direction as per Vastu for shops. The Hindu deity Kuber is considered to be the owner of this direction and one known for bringing prosperity and wealth. This is why the north direction should be the one with big openings. In the case of a shop, the main entrance of the establishment should be on the north side so that the positive energy of the North finds its way home inside easily. The rule of Vastu for shop cash counter also states that it should be placed in such a way that when it opens, it faces the north direction. The rules of Vastu for cash boxes in the shop also recommend that a cashbox must never be placed near any back door, a window, a ventilator, or the main door. In fact, the cash counter position in the shop as per Vastu must also never be near or against any of the corners of any shop rooms, especially in the first or last rooms, as it is believed that the wealth will drain out if they are present in these locations. Finally, the Vastu for cash counter in the shop must never be kept empty. For best results, shop owners should fill it up with silver coins or cash, as well as an idol of goddess Laxmi or the deity Ganesh.

Rules of Vastu for Shop Facing East

As the sun rises from the East, the direction owned by Lord Indra is considered to be a powerful one for the success of a commercial shop or establishment. Poorv or East is the direction considered to be very powerful as per Vastu Shastra. Owned by Lord Indra, a deity responsible for the overall prosperity and festivity on this planet. Moreover, the east direction is where the sun rises, again a powerful natural force that sustains life on this planet. This is why the east is also considered a positive direction for the growth of your business. At home, for example, having doors, windows and ventilation are good as any obstruction in the east direction can lead to obstructions in life. Similarly, in the shop, the shop owner should position their seating to be towards the east, and the cashier should position himself/herself towards the south-east direction for growth in wealth. In addition to North, it is also appropriate for the main door to be as per east facing shop Vastu plans to attract more customers. Finally, in addition to the North, the East direction should also be considered appropriate to place the lightweight items to be sold in the shop such as biscuits, shampoo, water bottles, soft drinks etc.

Rules of Vastu for Shop Facing North-East and North-West

The north-east direction is a powerful and positive direction for the shop where it is advised to keep a copper vessel full of Gangajal. The northeast direction is one that is considered to be wonderful for the growth of wealth and prosperity in homes and shops. The Hindu Lord Shiva is the owner of this direction, and the representative plant for the northeast is Brahaspati, again, one who is responsible for offering health, wealth, and fortune. Not only is the northeast direction good for the shop, but it is also one that increases spiritual satisfaction and piety. This is why it is never advisable to create a toilet or include heady structures towards the northeast. Similar to North and East, the north-east direction is also where the main door can be placed, and the owner of the shop should be seated in. The shop cash counter as per Vastu can also be kept in the northeast direction. Note that as per Vastu for shops, you should not place the deities of God Ganesh and Goddess Laxmi on the right of the northeast corner. In fact, the northeast zone should be kept clean and uncluttered, and must instead have a small temple and/or a copper vessel full of the sacred Gangajal (holy water from the river Ganga). On the other hand, the Northwest facing shop Vastu is considered to be very unstable as it is owned by Vayudev, the Hindu deity for wind or ‘Vayu’, and can mean that things move fast. It is, therefore, best to keep items for sale which are fast-moving.

Rules Of Vastu for Shop Facing West

The west direction as per Vastu is considered to be one where shop openings must be avoided to prevent bad luck Valued for bringing stability in our lives, the west direction is owned by Lord Varun, a deity responsible for fame, fate, and rain. West facing shop Vastu plans must therefore include storage in the westernzones yet must avoid any large openings unlike the north and east direction, given that the sun sets in the west and the early solar energy does not reach the western zones. In fact, as per Vastu rules, big entrances from the western direction spoil any prospects of higher income. For example, if you have a business in manufacturing, you should begin the process from the south and then move forward towards the west and north before it reaches east. You should also place any showcases and heavy furniture in the west or the southwest zone to avoid bad luck and business losses. Rather, the western direction is considered to be a very good place to place the picture/idol of gods or mandir.

Rules of Vastu for Shop Facing South

The south direction as per Vastu is considered to be an inauspicious one and therefore shop entrances must be avoided in this direction. Typically considered to be a bad, south-facing shop Vastu plans are inauspicious. Given that the owner of the south is Yam or the God of Death, the issues for businesses can be as fatal as death, including legal problems and injustices to the shop. Given that the corresponding for the south direction is Mangal, south is also associated with inhibitions in business, career, or financial prospects in general. It is, therefore, best to rather store your wealth in the south direction of the shop, given that closed places in the closed southern zones help store wealth in the form of positive energy. Heavy walls in the southern direction are also helpful in warding off any ill-effects from the God of death, as per Vastu Shastra for shops.

Rules of Vastu for Shop Facing South-East and South-West

As mentioned previously in the blog, the South West is the best direction for storing items and for the shop owner to be seated facing north. In fact, to amplify the effects of the southwest facing shop Vastu, you can use the colour yellow or install an idol of Ashtadhatu Panchamukhi Hanumanji as this helps the owner gain dominance and stability over the shop’s growth and success. If used well, the southwest direction can lead to a strong and healthy life, as well as bring fame and name in life. Southwest is also good for placing cash boxes, as it is the best direction for the shop as per Vastu for storing cash. Finally, the rules of Vastu for south west facing shops also indicate that storing heavy and raw materials in the southwest zone brings good luck. Similarly, the south-east facing shop as per Vastu must also follow delicate rules, as this direction is governed by the Lord Agnidev, representing fire. This is why keeping electronic and computer items and accessories are best to be kept in the southeast corner, as per rules of Vastu for commercial shops. Be sure to not install any worship place as it is not advisable to keep the mandir in the shop according to Vastu in the southeast direction, and rather should be towards the northeast.

Source: www.nobroker.in

Also read: Vastu Plants for Office: Which Plants Should You Keep?

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Top 5 mistakes to avoid when investing in commercial real estate

February 2022

There are some common mistakes you can avoid, to make the best of your investment in commercial property. Here’s our top 5.

Real estate investment is more of a science than an art and requires careful planning and assessment of various factors. All the more care is needed if you are investing in commercial real estate since the ticket size of investment is usually high and there are lot of factors that determine the returns and price appreciation in such type of property. The commercial real estate market is dynamic and various aspects that determine the rent earning potential and even property price rise, change from time to time. Change of government or change of policies can also have a huge impact on the potential of the property to earn for you. Environmental impact in a particular area and consequently new laws relating to the protection of Mother Earth in a particular locality or zone, can also affect the earning potential of a building.

1. Use of the word Proforma

Sellers or brokers usually offer documents and reports of the earning potential and income-generating capacity of the property. There are times when the word ‘Proforma’ is attached alongside the earning projections. This is a Latin phrase and it means ‘for the sake of form or appearance’. The reports and documents elaborating future income generation capability of the property is based on imaginary factors. Be very realistic in assessment of the income earning potential of the property. This can be done by looking at the neighboring properties and overall real estate market scenario in the area.

2. Not surveying the property completely

Most sellers and brokers will take you to only the best parts of the building when you visit the property before making the investment. These parts will either be free of damages or renovated after an event like a fire. You must insist on looking at the whole building and every corner of it. If the property is used for industrial purpose, look at all the warehouses that store raw material. The stores, where raw material is kept are usually the worst parts of the property and may require huge renovation soon after you purchase the property. You must also carefully look at a recently renovated part of the building, if any, and see if the repair work has been done with due diligence or will cause a problem soon after you have purchased the property.

3. Environmental laws and limitations

Be very careful about the environmental laws are applicable in the locality or zone where you are contemplating investment. Usually, the seller or the broker will not even talk about it. It is for the buyer to know the kind of activities that are allowed in the locality and the zone. Blocking your money in a property to carry out a certain type of business and then finding out that the activity is not even allowed in the locality, can be really unfortunate. Hiring an expert for this purpose and cross-checking with a neutral broker in the locality, will be a good idea.

4. Not looking at tenants and their earnings

If you are investing in a building that already has tenants, then have a close look at the tenancy. What are the kind of stores there and what is their sales on a monthly and annual basis. Knowing the rent to sales ratio will also give you an idea whether there is a good possibility of the tenants to stay on for long periods or not. A rent to sales ratio of under 5 per cent is considered good. This means that the rent should not be more than 5 per cent or so of the sales. If the rent to sales ratio is more than this threshold, you could avoid investing in the building since the tenants may move out sooner than later. A closer look at the lease durations and lease deeds of each tenant will also help. If most tenants in the commercial building have signed short term deeds, then there are greater chances of you sitting with vacant showrooms and office spaces in the building in a few years or months down the line, which means lower income for you. Usually it takes a while to find a new tenant for an outgoing one and the space sits vacant for the intervening period.

5. Hidden charges

There are a lot of fees and charges that are sometimes hidden in the property documents and the sale terms by the seller of the property and by the broker. These can be statutory and local taxes that the seller is responsible for paying. There can also be impending repairs but the seller is trying to pass off the repair burden to you. There can be insurance of the building that is still continuing and the seller may be billing you for the premium. There is usually no harm in buying a building that is under insurance by the previous owner but the insurance policy would have been taken according to the needs of the previous owner and may not be fruitful to you and for the kind of use you will put the property to. For example, the previous owner might have stored some kind of raw material in the building and taken insurance for that particular substance or raw material. You may not be storing such raw material at all and hence, that policy may not be meaningful to you.

Source: housing.com

Get To Know About: What are the taxes applicable on commercial property

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February 2022

What are the taxes applicable on commercial properties that are used for the owner’s business, or if it is let out or sold? We examine the implications, in each case

Property has been one of the oldest investment avenues in India, which existed before the advent of various financial products like direct equity and mutual funds. People who invest in commercial properties, do so either for their own use or for the purpose of letting it out.

Taxation of let out commercial property

Rentals received from any property owned by you, is generally taxed under the head ‘income from house property‘ in your hands. This applies to all properties, whether residential or commercial. The higher of the rent that is actually received or the rent that is reasonably expected to be fetched by such a property in the market, is the basis of taxation of rental income. In case the property is not owned by you and is sublet by you, the income from such sub-letting of commercial property will be taxed under the head ‘income from other sources’.

In case you are running a business centre on the property owned by you, along with providing other services, the same can be treated as business income, provided the other services along with letting out of the space constitute a significant portion. Except in such cases, all the income arising to you with respect to property owned by you, will become taxable under the head specifically provided for property income, by whatever name the income is called. As the income from letting out of such property becomes taxable under the head ‘income from house property’, no deductions can be claimed against the rental income, except those specifically provided by the law. It is advisable not to show your genuine rental income under the head ‘profits and gains of business of profession’, just to claim other expenses.

Deductions from rental received from let out property

For computing income under the head ‘income from house property’, the income tax laws allow certain deductions against the rent received by you. The first deduction available is in the form of a standard deduction, at the rate of 30 per cent of the rent received or receivable for such property. This standard deduction, for a commercial or residential property which is let out, or for a self-occupied residential property which is treated as let out, is available irrespective of the amount spent by you on such property.

In addition to the above standard deduction to cover repairs, etc., the tax laws allow for deduction with respect to the interest paid for any money borrowed for the purpose of purchase, construction, repair or reconstruction of your commercial property. The deduction for interest available under Section 24(b) of the Income Tax Act, is available for all types of properties, whether residential or commercial. Processing fees and prepayment charges paid to any financial institution, for availing of the loan, can also be claimed as interest. You can avail of the interest deduction for money borrowed not only from banks but also from your friends and relatives.

With respect to commercial property that is let out, although you can claim the full interest against the rental income after standard deduction, there is a restriction of Rs two lakhs for the amount of loss as computed under the head ‘income from house property’ for all the properties taken together, which can be set off against your other incomes during the year. Any loss as computed under this head can be carried forward for set off against the income under the same head, for the next eight years. The deduction for interest paid during the construction period for an under construction property can be claimed, only after possession is obtained and that too in five equal annual instalments, beginning from the year in which you take the possession.

Taxation of commercial property used for own business or profession

For commercial properties that are partly or fully used for your business or profession, the corresponding share of such property that is used in the business, is not taxable in your hand. So, you also cannot claim any notional rent, with respect to such commercial property against your business income. However, you can claim the expenses incurred for repair and maintenance of such property, against your business income. You can also claim the full interest as business expenditure, without there being any limit. Please note that no deduction is available under Section 80C for home loan taken for such commercial property, for repayment of the principal amount, as this is available only for residential property.

Taxation of profits on sale of commercial property

With respect to any commercial property owned by you and used for your own business, the profits arising from the sale of such property becomes taxable as short-term capital gains, provided no property is left under the same category of asset, irrespective of the period of your holding. However, you can claim exemption under Section 54F, by investing the net consideration in a residential house property, if the same has been held for more than 24 months as per some of the judicial pronouncements. Alternatively, you can invest the indexed capital gains in capital gain bonds of specified institutions and claim exemption under Section 54EC.

In case of commercial property which is let out, the profit on sale of such commercial property will become capital gains. The same shall be long-term, if the property is held for more than 24 months and will be taxed at a flat rate of 20 per cent, irrespective of the quantum. You have the option to save on taxes by either investing in a residential house under Section 54F or by investing in capital gains bonds under Section 54EC, as explained above. However, if the property is sold before 24 months, the same becomes taxable as short-term capital gains and is taxed as normal income.

Source: housing.com

Get To Know About: 2022 Could Be An Apt Year To Invest In A Luxury Home. Here Is The Reason Why

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February 2022

If you are planning to invest in property to earn returns, which type of property should you choose – residential or commercial? We analyse the benefits and drawbacks of each

Rental income is an important consideration, for people who want to invest in the real estate sector. Property buyers are often confused over which would provide better income option – an investment in a residential property or a commercial one. Arvind Nandan, senior real estate professional, points out that the broad principles of asset-selection, such as the location of the property, quality of construction, age of the property and usage, remain similar between residential and commercial properties. “While most residential properties need to be leased on an annual basis, commercial properties are leased for longer tenures. The vacancy risks in residential properties are higher, given the frequent turnovers of tenants. Hence, property buyers need to pay attention to the qualitative aspects of these two segments,” he explains.

How to calculate rent on commercial property in India?

Experts advise that any investment in commercial property (other than for self-use), like office, retail, warehouse, etc., require the potential purchaser to consider aspects like the current leasing environment, the existing ecosystem in the region, distance from complementary and auxiliary industries, legal due diligence, clearances that are specific to the property’s usage, etc. On the other hand, a residential property must be analysed for liveability with respect to social infrastructure, the neighbourhood and profile of other residents.

How to calculate rent on residential property in India?

“In residential realty, the gross rental yields are usually in the range of three to five per cent, per annum, on the fair market value of the property. Net of insurance, property tax and maintenance, the net yields tend to be in the range of two to three per cent per annum. Escalations in home rentals are between five and seven per cent, per annum. On the other hand, in commercial realty, the gross yields are usually in the range of six to 10 per cent, per annum. Net of insurance, property tax and maintenance, the net yields tend to be in the range of five to eight per cent, per annum. Escalations in rentals here, are between three and five per cent, per annum. The overall returns estimate over 10 years, are now around eight to nine per cent per annum in the residential realty sector, in comparison to 13-15 per cent per annum in the commercial realty sector,” explains Amit Goenka, MD and CEO at Nisus Finance.

Risk versus rewards between commercial and residential properties

• Tax benefits: Commercial and residential properties that are let out, attract tax on income from house property. However, a house property that is taken on a home loan, qualifies for tax breaks under Section 24 and Section 80C of Income-Tax Act.
• Risk and volatility: This is perceived to be higher in a residential property, due to frequent change in tenants, higher maintenance and upkeep costs and lower returns. Commercial properties offer stable, long-term rentals, with predictable income streams.
• Entering and exiting an investment: Both are illiquid assets. However, with Real Estate Investment Trust (REIT) regulations, it would be easier to create a portfolio of commercial properties than residential properties. Also, since the supply of Grade A pre-leased assets is low, the demand is much higher, making it more liquid than residential properties.

Above all these considerations, it is also important to examine the location, investment size and tenure, before making the final decision to invest in a residential or commercial property.

Benefits and drawbacks of investing in residential property

Benefits	Drawbacks
Lower entry ticket	Low rental yields / rental incomes
No minimum / lowest size applicable	Investment in interiors, etc., to make it rent-friendly
Loan facilities easily available	Rental agreement usually cannot exceed 36 months
Leasing process is usually easier
Comparatively lower holding period for returns, as against commercial property

Benefits and drawbacks of investing in commercial property

Benefits	Drawbacks
Higher rental yield and returns	The capital values of commercial properties tend to remain stable for longer periods of time
Longer term lease possible, i.e., up to nine years	The property may need to be of a specific minimum size, to be commercially viable
Leasing can be in bare shell or warm shell	Difficult to offload, as there are fewer buyers in the market
Commercial values are not very volatile

Beware of this if you are investing in commercial property

In order to make profits out of a sale, developers may lure prospective investors by showing them a higher rental. This is misleading at times. Understand that they may be including a fitout rent and these are not permanent and so, not bankable. They are paid for a limited period of time which can be say, five years.

So, how does that work? Suppose, the base rent is Rs 60 per sq ft and the fitout rent is Rs 40 per sq ft. The tenant will pay Rs 100 per sq ft, which is Rs 1,200 per sq ft per year. Now, if the actual selling price is Rs 6,000 per sq ft where a tenant does his own fitout, a developer may charge higher, say, Rs 9,000 per sq ft, promising a higher return. This may look attractive but once the stipulated time period is over, the returns will drop.

Source: housing.com

Get To Know About: Taxation of jointly owned property

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February 2022

It is mandatory to provide the rent receipt to the employer, if the employee wants to claim HRA for rental accommodation

Rent receipts are proof of transactions that happened between the landlord and the tenant. There have been cases where tenants have been denied HRA exemption, on the ground that there was no rent receipt available to substantiate the rental transaction. Salaried people who live in a rented property are allowed to reduce their tax liability by claiming tax deductions to the extent of eligible rent payment as HRA. The House Rent Allowance (HRA) benefit is available only if you live in a rented home. Let us first understand how HRA is calculated.

HRA calculation

A salaried person can claim HRA deduction (under the old tax regime) to the extent of the least of the following:

• HRA actually allowed by the employer.
• For a person living in a metro city: 50% of Basic Salary + DA (Dearness Allowance)
• For a person living in a non-metro city: 40% of Basic Salary + DA
• Annual rent payment over and above 10% of annual salary + DA

Self-employed individuals and non-salaried personnel are not allowed to claim the HRA benefit.

Why is a rent receipt essential for claiming the HRA benefit?

It is mandatory to provide the rent receipt to the employer, if the employee wants to claim HRA for rental accommodation with a rent payment of more than Rs 3,000 per month. If the rent payment exceeds Rs 1 lakh in a year, it is mandatory to provide the PAN details of the landlord to the employer.

In some cases, landlords may not have a PAN card. In such cases, the employee should take an undertaking from the landlord and get Form 60 filled and signed by the landlord. The undertaking and Form 60 should be submitted to the employer. In some cases, the employee pays a higher rent than mentioned in the rent receipt while paying the excess amount separately to the landlord. In such cases, the employer will calculate the HRA based on the amount mentioned in the rent receipt while ignoring the excess amount. So, the rent receipt is the crucial document, based on which the employer determines the eligible HRA benefit of the employee.

There are some cases in which the person lives with their parents and pays the rent to them. In such cases, it is very important to get the rent receipt from the parents, along with a rent agreement and the rent receipt for the rental transaction should be provided to the employer. Parents should show the rental income in their ITR and the rental transaction should match with the employee’s record.

The rent receipt is also vital, when the employee owns a home but lives in a different city. In such a situation, the employee can get the HRA benefit with the help of rent receipt and also claim the tax deduction benefit against interest and principal payment on the home loan.

Important points to keep in mind before you claim HRA benefit

As already mentioned, HRA can be claimed only if you live in a rented home and a rental transaction has taken place with the availability of proper rental receipts. Fulfilment of the following conditions are essential for claiming the HRA benefit:

• The employee, his/her spouse or minor child, or in the capacity of HUF, should not own an accommodation.
• If a person owns a property and earns rent from such property, then HRA deduction cannot be claimed.
• The receipt should include the components such as the tenant’s name, landlord’s name, property address, rent amount, rent period, date of payment, mode of payment, PAN number of the landlord if the annual rent amount exceeds Rs 1 lakh, revenue stamp if the rent is paid in cash which amounts to more than Rs 5,000 and signature of the landlord.

Source: housing.com

Get To Know About: Here’s how you save on Home Loan Interest

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February 2022

Generally, most people buy immovable properties in joint names of more than one person, for various reasons, including funding for the property and smooth succession. We examine the provisions for taxation of such jointly owned property

The Income Tax Act has divided tax entities into various categories. All individuals are taxed under the category of an ‘Individual’. However, if more than one people come together to own a building, they may be taxed like:

• A partnership firm
• An association of persons (AOP)
• A body of individuals (BOI)

With respect to property jointly owned by co-owners, Section 26 of the Income Tax Act gives clear guidelines for taxation of the share of such co-owners in a building. The share of income in the property, may be either in the form of rentals or may even be capital gains arising at the time of sale of such building. The section provides that in case the share of each of the co-owners is clearly defined and is ascertainable, then, the respective share of each co-owner shall become taxable in their hand as an individual and not as a BOI or AOP or partnership. It may be pointed out that the building owned by a HUF is not a property that is owned jointly but the same is owned by the HUF in its own capacity. Thus, the income of such HUF property shall be taxed in the hands of the HUF as a separate tax entity and will not be apportioned among the members of the HUF.

How the share of each co-owner can be ascertained

If the husband and the wife’s names are added to the agreement as purchasers of a property, they may have varying shares in the property. At times, additional persons are added in the agreement, for the purpose of ensuring smooth succession of property. So, the respective share of the co-owners in the property, will be in the ratio in which they have contributed towards the cost of the property.

The cost may either be by way of down payment, or it may also be by way of their ratio in the home loan taken. This can be ascertained from the bank statements of the co-owners. Hence, if you have not contributed anything towards the purchase consideration, you will not be treated as a co-owner of the property for income tax purposes, even when your name appears in the agreement as a buyer of the property.

The property may also be acquired by way of inheritance, either under a will or by way of intestate succession. In case of a will, the ownership ratio shall be decided on the basis mentioned in the will of the testator. If the property is jointly inherited, otherwise than under a will, the ratio of ownership will be as per the law of succession applicable to you, based on your religion. However, in case some of the legal heirs have relinquished their right in the property by mutual consent, the ownership ratio shall stand modified to that extent.

Taxation of rent received for jointly owned property

In the case of self-occupied, jointly owned property, the tax laws allow you to have one house as self-occupied, on which there is no tax liability.

However, in case more than one jointly owned properties are used for self-occupation, you need to choose one property as self-occupied and the rest are treated as having been let out. For such properties, which are deemed to have been let-out, you have to offer the notional rent. This is the amount for which the property is reasonably expected to be let-out, for taxation. Such notional rent is apportioned in the ratio of ownership, as ascertained on the basis discussed above.

For a property that is actually let-out, the rent received is required to be apportioned in the ownership ratio as determined. The rent so apportioned, is treated as the annual value of the property, from which, a flat standard deduction of 30% of the rent, either actually received or notionally computed, is made, to arrive at the taxable value of the rent. In addition to the standard deduction, you are also allowed to deduct any amount of interest paid on money borrowed for the purpose of buying, constructing or repairing or renovating the building, which then becomes your taxable income under the head ‘Income from house property’.

Taxation of profit on sale of the jointly owned property

If the co-owned property is sold, each co-owner has to offer the capital gain as applicable on his share of the building. It may be noted that the apportionment shall be made at the ‘sale consideration’ and ‘cost of acquisition’ level and not at the ‘net taxable capital gains’ level. So, in the case of long-term capital gains on sale of the jointly owned property, whether commercial or residential, each one of the co-owner shall be entitled to claim exemption under Section 54EC, by investing the indexed capital gains up to Rs 50 lakhs. So, the limit up to which investment in specified bonds can be made under Section 54EC, will be applicable in case of each co-owner and not for the property as a whole. Likewise, the conditions of not owning more than one residential house as prescribed under Section 54F for claiming exemption from long-term capital gains, shall also be considered for each of the co-owners and not for all the co-owners taken together.

TDS on sale of property in case of joint owners

In 2018, the Delhi bench of the income tax tribunal ruled that joint buyers will not be liable to pay any TDS under Section 194 1A, if the share of the individual is less than Rs 50 lakhs. The order by the tribunal came, while passing its judgment in a case of one Vinod Soni. While passing the order, the tribunal also noted that since each transferee was a separate individual, the purchase consideration paid by each will be the determining factor for the applicability of Section 194-1A.

Source: housing.com

Get To Know About: 5 Things to Consider When Choosing Office Space

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February 2022

Prospective home-buyers’ preferences for bigger homes, better amenities and attractive pricing will keep them interested to seal the deals. Hence, demand for luxury homes is expected to be bullish in 2022. Read on

The higher end of the property market (properties costing Rs 1 crore and above) has done progressively better in 2021. From being about 21 per cent of all primary sales in 2020, they constituted about 23 per cent of the total primary sales, revealed Knight Frank Research. A new survey by a luxury residential and international property consultancy also stated that more than 1/4th of high-net-worth luxury home-buyers purchased real estate in the last 18 months.

All this data only goes on to show that because people were confined to their houses for long periods, the demand for homes with ultra-modern amenities has seen an uptick. As per experts, the Covid-19 period has created a reset in the luxury residential market, and sales are better compared to pre-Covid-19 levels with buyers looking at bigger and upgraded living spaces.

Why have we seen a considerable spike in the luxury and premium segment? Will the luxury housing segment remain robust in 2022? Let’s understand.

Key demand drivers

With work-from-home now being an integral part of the way we work, the demanding nature of houses has witnessed a change. “Looking at the luxury market, in Mumbai Worli to Churchgate saw massive movement in both supply and absorption. Similarly, Lutyens, Vasant Vihar in Delhi–NCR, Koramangala in Bengaluru, Banjara Hills in Hyderabad, and ECR in Chennai were some of the best performing regions. There were consistent transactions throughout the year with luxury sales filling around 20-23 per cent of the total sale value. While the Mumbai luxury market was dominated by high rises, other cities were driven by sales from independent houses and bungalows. The trend has now shifted towards low-density projects with controlled gentry since people started spending the majority time in–houses,” says Ritesh Mehta, senior director and head (West and North), residential services and developer initiatives, JLL India.

As a result of Covid-19, luxury home-buyers are now focussing on improving the quality of life with an emphasis on health and comfort. “Among UHNIs, there has been a strong demand for high-end properties that may serve as catch-all compounds, live-work spaces, and provide a resort-like living experience, as homes have become the sole space for all activities. As a result, the luxury real estate market in India has evolved to fill in the gap of providing a healthy lifestyle, world-class amenities, and distinctive architecture that supports the purchasers’ concept of modern and elegant living,” adds Ram Raheja, director of a real estate development firm.

Luxury landscape changing

With home-buyers viewing property investment very differently, real estate developers are armed with the most in-demand home features to appease buyers. “Homes that boast features like outdoor areas with huge patios, outdoor kitchens and bar areas, fire pits have gained supremacy. Glossy entrance lobby with a waiting area for guests and visitors, well-equipped gymnasium, high-speed branded elevators, reception and concierge desk, rooftop gardens, water walls, private pools, clubhouses, decks, balconies, courtyards, home automation are some of the key features that are being provided by premium developers. New-age digital transformation tools and advanced enterprise technologies such as the internet of things (IoT), ERP, robotics process automation (RPA), analytics for decision making and mobility solutions, and data science are also helping developers with negotiations, prompt assets valuation, and increasing visibility and productivity,” adds Raheja.

“With relaxed Coastal Regulation Zone (CRZ) guidelines, we may witness a considerable supply of sky–rise towers on the waterfront. Tie-ups between top developers and high-end designers have become a new taste statement for buyers. Aesthetic internal specifications like the larger floor–to–ceiling height, designer wallpapers, high–end sanitary wares, modular kitchen, and smart home have also become a decision–making factor for buyers. Tier-II cities like Indore, Chandigarh, Surat and Cochin have seen a progressive rise in luxury apartments as well. Also, developers are getting into second home options or primary home options with work-from-home facilities,” explains Mehta.

With safety and security assuming utmost importance, UHWIs prefer to purchase a home in an integrated township that does not require them to step out of the community. “A gated community provides a holistic living experience. Hence, developers are offering premium facilities that range from a drive-in theatre, health care facilities, assisted living for senior citizens, supermarkets, shopping centres, hotels and schools all within the reach of the residents,” elaborates Sandeep Runwal, managing director of a real estate company.

A pause in momentum

The last five quarters have seen a good momentum for luxury home sales starting from Q3 2020 and Omicron is not being seen as a party stopper, state experts. “The restriction in movement could lead to challenges in completion of the process of home buying and therefore deferment of purchase decisions. However, we do not see that as a great impediment as the pent-up demand for homes remains strong and will bounce back (should there be a moderate slowdown) to take advantage of the positive buying environment,” says Gulam Zia, senior executive director, Knight Frank India.

“Developers across the country have lined up a good show of new launches this year. Many organised and smaller players have formed joint ventures and joint development agreements to take advantage of the current climate. Therefore, any disruption due to Omicron is likely to be a blip in the ongoing demand recovery,” concludes Runwal.

Source: timesproperty.com

Get To Know About: Rent receipt: Why is it needed for HRA exemption?

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