How is money refunded when a property deal is cancelled

Februay 2020

What are the financial and income tax consequences that follow, if a property deal is called off or cancelled? We examine

Property deals need not always culminate in the execution and registration of an agreement. Sometimes, the deal may not go through and may be abandoned halfway, after the payment of token money or even after some of the payments have been made. The deal may be cancelled by either the seller or the buyer, for any reason.

Credits : pexels.com

In case of deals for the purchase of any real estate, the buyer generally pays some amount as token money, when the other terms and conditions for the transfer of the property are agreed upon. The amount of token money may vary, from being merely a token to a substantial percentage of the value of the property.

If the seller backs off from his commitment to sell his property, there are no immediate financial implications, except that the buyer gets a right to file a suit for specific performance in the courts of law. However, this is generally not resorted to.

If the buyer backs out from the deal, the seller has the right to forfeit the token money paid. With respect to such forfeited token money, the buyer cannot claim any income tax benefit, as this is treated as a capital loss under the tax laws. However, the advance money/earnest money that is forfeited, becomes an income of the seller in the year in which the deal is called off. Such forfeited earnest money is taxed under the head ‘income from other sources’ and not under the head ‘capital gains’, even though the income is received with respect to a capital asset.

Before the amendment of the law in 2014, the amount of forfeited earnest money was required to be deducted from the cost of acquisition of the asset with respect to which it was received, in the year in which the asset, which is the subject matter of the deal, was sold.

​​Refund of stamp duty paid

Generally, for all property transactions, the buyer has to pay certain amount as stamp duty. This is either a fixed amount or a percentage of the property’s market value. You also have to pay registration charges, for registration of the agreement.

The stamp duty rates and registration charges payable, are determined by the respective state governments. So, the rules for refund of stamp duty that is paid for property transactions, would vary from state to state. You are required to pay the stamp duty before the execution of the document.

In Maharashtra, you are entitled to claim refund of the stamp duty, within six months from its payment, in certain situations. You can claim the refund of stamp duty paid on such instrument, if the same has not been executed. The government deducts 1% of the stamp duty, subject to a minimum of Rs 200 and a maximum of Rs 1,000 of the stamp duty paid.

In case of cancellation of a deal for the purchase of a property and for which the agreements have already been registered, the Maharashtra government allows a longer period of two years from the date of the agreement, for claiming the refund of the stamp duty, subject to certain conditions.

This refund is allowed, only if the developer fails to hand over possession of the property booked and this fact, as the reason for cancellation of the deal, is mentioned in the cancellation deed. The rules also provide that the cancellation agreement should be registered.

The buyer of the property can get a refund of 98% of the stamp duty, if an application is made for a refund of the stamp duty. With the refund application, you are required to attach the original agreement, as well as the original cancellation deed, with both the documents being registered. However, you will not get a refund of the registration charges.

Refund of GST (Goods and Services Tax)

When you book an under-construction property, as per the existing laws, the developer levies a GST on the agreement value, at a certain rate. This rate will depend on whether the property falls under the ‘affordable housing’ category or not and also on whether the developer is availing of the GST. For any reason, if you want to cancel the booking and thus, surrender your rights over the under-construction property, the builder may agree to refund the booking amount and instalments paid, or even agree to pay a higher amount to you, depending on the demand and supply dynamics at that time.

Although the developer may have collected GST from you, he may or may not agree to refund this amount, as he may have already deposited the amount to the credit of the government. The builder will not be entitled to claim any refund with respect to the GST, as he has already rendered services to you.

In case you enter into an agreement to transfer your rights in the under-construction property to a third party, with the developer being the confirming party, your sale price would be inclusive of the GST and you will not be able to separately recover or charge any GST on such transaction.

While computing the capital gains, the GST that is already paid by you, will form part of the cost of acquisition. The capital gains will be taxable as long-term, if your holding period has been three years, or else, the profits, if any realised, will be taxed as short-term capital gains.

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Should you choose under-construction, ready-to-move or resale property?

Februay 2020

Unsure whether you should buy an under-construction, or ready-to-move-in, or resale property? We analyse the pros and cons of each option, to help you get clarity

The purpose for which a residential property is purchased, is crucial when it comes to deciding between an under-construction, ready to move (new property), or a resale property. You may buy it for occupancy as an end-user, or for investment purposes, or to keep it as a second home.

Credits : pexels.com

What factors to consider when choosing between Under-construction vs ready-to-move-in vs resale property?

Experts suggest that for under-construction properties, the buyer should ensure that the developer has taken all the approvals, that the project should be RERA-registered and that it is being developed as per the development plan. There should be no financial stress on the project and the developer should have a good track record and the capability to deliver the project.

In case of ready-to-move-in projects, the buyer should ensure that all the property papers and approvals are in place and there is no financial liability on the project. The amenities and utilities promised by the developer should be in place and functional.

While buying a resale property, the buyer should check the age of the property, repair costs (if any) and encumbrances related to electricity, water, society bills, etc.

	Resale	Under-construction	Ready-to-move-in
Price	At market price, or lower if the seller is needy.	Discount over market rate	At a premium over the market rate
Risk level	Secure	Risky	Secure
Possession delay	No	Possible	No
Social infrastructure	Present in most cases	May not be present	Present in most cases
Physical infrastructure	Present in most cases	May not be present	Present in most cases
Return on investment	Low	High	Moderate
Suitability	End-use	Investment	End-use/investment
Loan facility	Available	Depends on papers and legal clearances	Available
Possession time	Immediate	Depends on project completion	Immediate

​​Who should buy under-construction properties?

An investor would always invest in an under-priced project with upside potential. During construction, the developers start with competitive pricing to attract buyers. As the project matures in construction and occupancy, the demand rises, leading to an increase in prices.

“An investor will always find it attractive, to invest during the early stages of project development. Under the guidelines of the Real Estate (Regulation and Development) Act (RERA), a developer cannot launch a project without obtaining the requisite permissions. Therefore, there is no pre-launch stage now. It is always advisable to invest, after thoroughly understanding the project, including the permissions obtained, government dues, project plan, etc.

All these details are better known upon official launch,” says Amit Chawla, director, valuation and advisory services, at Colliers International India.

Investing in resale property could be a costly affair because the existing buyer would have already paid stamp duty on it, and the investor has to again pay the stamp duty for such property. So, the cost of the ownership escalates by the value of stamp duty. The existing property owner may also add some premium on the price of the property, increasing purchase cost.

For example, if the stamp duty and the registration cost at a particular location is 8%. So, each time a property changes hands from one owner to another, the price will increase by at least 8% due to the stamp duty and registration thereof.

Who should buy ready-to-move-in properties?

People who are living on rent, may find it challenging to manage the EMI and rental outgo at the same time. The situation may become more complicated, if the possession of the property possession is delayed. Hence, such buyers should prefer ready-to-move-in properties over under-construction properties. 

“First-time buyers are usually end-users, who need a place to live and therefore, prefer ready-to-move-in flats, as they generally do not plan to sell the property for a long time,” opines Rituraj Verma, partner at Nisus Finance.

A ready-to-move-in property allows the buyer to understand the quality of construction, infrastructure support and locality. Moreover, the end-user can immediately leave the rental home, to save on the rental money. With a ready-to-move-in property, a buyer can also have a look and feel of the property and can compare it with other projects more effectively.

TO KNOW MORE ABOUT INVEST IN PROPERTY IN THANE TO SAVE ON LONG TERM CAPITAL GAIN BLOG - A GUIDE TO CREATING WEALTH WITH RESIDENTIAL REAL ESTATE INVESTMENT, VISIT CREDAI MCHI THANE UNIT

How to buy a home that delivers long-term ROI

The decision to buy a property, should be based purely on the needs of the individual and the inherent value of the unit. We look at how home buyers can ascertain this, to choose a property that provides good returns on investment

With the Real Estate (Regulation and Development) Act (RERA) coming into force, as well as various other policy initiatives such as the Benami Transactions Act and the government’s push to affordable housing, we are seeing increased activity in the residential property market in the larger cities. After the dampener of demonetisation in 2016, the positive buyer sentiment visible now is especially significant. Consequently, builders are determined to capitalise on it, via increased marketing efforts. Given that there is already a lot of supply in the residential market – a lot of it for ready possession – fresh launches have been curtailed, so that the existing inventory can be absorbed. Much of the intensified marketing efforts are centered around special deals and offers.

How to ascertain the real value of a home

While this may be advantageous for property buyers, they should be judicious while evaluating offers and schemes and base their purchase decisions solely on the real value of the home. Freebies such as gold, cars and household goods, have an undeniable attraction but they are fundamentally frivolous in nature and do not add to the value of the home.

The price of a home is obviously an important consideration for middle-class property buyers. However, the strategy of looking for the cheapest options on the market, does not make much sense because it is quality that determines value. In the case of residential property, the quality of an offering depends on three aspects:

1. The quality of the location.


2. The brand value of the builder.


3. The availability and quality of facilities and amenities in the project and in individual units.

​​The importance of location in a property’s value

Central locations are traditionally the costliest, as they offer great access to many important parts of the city , such as the CBD (central business district) and SBD (secondary business district). These areas tend to host the offices of high-profile companies and offer a vast cross-section of jobs, from highly-paid management to more modestly-paid support staff jobs. Even the second category of jobs is attractive, because the growth prospects in high-profile companies, are usually very good. This is what makes living in central locations very desirable and from a real estate pricing perspective, very expensive.

In India, this mantra held true for a very long time, until the advent of the infotech culture. The IT/ITeS industry, tends to offer very good salary packages but is not focused on high-value locations. Quite to the contrary, such firms prefer to set up shop in peripheral locations, so as to save on the real estate costs. As a result, many cities’ outskirts have become very desirable places for home buyers and they are far less expensive.

For IT professionals and industrial employees, as well as property investors, buying a home in a peripheral location that connects to an IT hub and/or manufacturing belt, makes perfect sense. Unfortunately, such locations attract all kinds of developers – from those who have a reputation for creating true lifestyle value offerings, to those who specialise in constricted, ‘pigeon-hole’ homes. This is where the brand value of a developer plays a significant role.

Correlation between brand value and quality

With a lot of housing supply available in the new growth corridors, buyers are spoilt for choice. The cost of a flat is obviously important but one still only gets what one pays for. Ultimately, a home is not just an asset but one which performs the very critical functions of offering refuge, comfort and security. Buyers must look for options, which offer them these three advantages to a satisfactory level. Branded builders provide these as part of their standard value offering, because their reputation demands it.

Facilities and amenities that add value to a property

Urban life today, places a lot of stress and demands on us. Consequently, our homes cannot be mere places of refuge but must also provide healing and rejuvenation. A clubhouse, swimming pool and children’s park, are no longer luxuries but the bare minimum that Indian home buyers can and should expect. Nevertheless, even projects without such offerings will find buyers because of their lower prices. While short-listing prospects for home purchase, it is important to ensure that the final selection provides a decent lifestyle and not just an abode.

If one looks at the supply in the residential property market from this perspective, the choice of options automatically narrows down to a more manageable and comprehensive level. Buying the right home is not just about present and future comfort, but also about investment growth. Homes in good locations, built by reputed developers with a good saturation of amenities and facilities, will always yield better capital appreciation, as well as potential rental income for property investors.

TO KNOW MORE ABOUT INVEST IN PROPERTY IN THANE TO SAVE ON LONG TERM CAPITAL GAIN BLOG - A GUIDE TO CREATING WEALTH WITH RESIDENTIAL REAL ESTATE INVESTMENT, VISIT CREDAI MCHI THANE UNIT

A guide to creating wealth with Residential Real Estate Investment

How does an investor make the most of a property investment? We get the experts’ views on the factors and the regions that residential home buyers should consider

For any investment in residential property to provide effective returns, the chosen location should have good social infrastructure, adequate public transport and sufficient economic activity to sustain development and growth. These parameters apply to investments in non-agricultural land approved for residential development, as well as flats in residential projects.

However, to mitigate risks, one should stick to tier-1 and select tier-2 cities only. It is also prudent to invest in properties, where the prices range between Rs 2,500 and Rs 5,000 per sq ft, as this will provide protection against capital value erosion. Simply put, this is a safe price segment and almost guarantees capital appreciation.

Guidelines, to make the most of your property investment:

• Understand the property cycle, to identify the best entry point.
• Leasehold titles issued by the government must be fathomed.
• The investor needs to have a clear comprehension of unearned increase or capital gain and quantum of stamp duty that needs to be paid.
• Check the quality of the development because poor design and construction are common when the markets are depressed.
• The project’s development plans and all statutory approvals, should be in place. If the approvals are not yet in place, the investor should monitor them closely during the investment cycle.
• Check the credibility and track record of the developer and his arrangement for finance to complete the project, as even reputed developers have failed to deliver under the current market conditions.
• Enlist a reputed legal firm to carry out the due diligence on the property’s title. One can no longer rely solely on the due diligence of home loan firms, as they have targets just like developers.
• Understand the implications of the size and dimensions of the plot/apartment. Small plots or apartments may cost less but they may be difficult to sell.
• The location of the project may be important but so is the location of the plot or the apartment within the complex. Investors should avoid buying flats on the top floors of high-rise buildings, as the floor-rise charges will add to the cost.
• The price of the development, should be lower than the last peak (in 2008). However, exceptions can be made for quality, delivery date and location.
• The time frame for getting possession of the property and conveyance of land, must be explicitly clear. The penalties in case of delays, must be well understood.
• The investor must know the difference between soft launch, launch and current price of the developer. The resale price in completed projects, may be actually cheaper.
• The investor must understand all the clauses in the sale agreement along with the transfer charges that may applicable, in case he wishes to sell the apartment during its construction. He should also establish whether the agreement value includes the cost of all amenities, parking, etc., or whether these are to be paid separately.
• The investor should compare the project with others, based on its carpet area rate.

If all the above precautions have been taken, the property should ideally appreciate at a consistent rate of 15% per annum for three years. It is important to remember that one can almost never sell at the peak, just as it is impossible to always catch the lowest price.

​Best cities for residential property investment

• North India: National Capital Region, Lucknow, Chandigarh, Jaipur and Dehradun.
• East India: Bhubaneswar, Kolkata, Guwahati and Ranchi.
• West India: Ahmedabad, Mumbai, Pune, Nashik and Nagpur.
• South India: Hyderabad, Bengaluru, Chennai, Coimbatore and Vijaywada.

These cities offer the potential for higher capital value appreciation, depending on the demand and supply dynamics of their micro markets, the quality of the development, the reputation of the developer, location of the project and its timely completion.

Also read: Investment Tips: How To Buy A Home That Delivers Long-term ROI

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Co-living spaces versus hostels and PG accommodations: What should students choose?

Co-living spaces and student housing have emerged as viable alternatives for those looking for rental spaces in metro cities. We look at the factors that students should be aware of, before choosing such accommodations

With the growing migrant population across the country, the idea of shared living is finding many takers. Such accommodations are particularly useful for students, who head to cities to start their college life. While, earlier, hostels and paying guest accommodations were the available options, modern concepts for students include co-living spaces or student housing.

Concept of co-living spaces

“The concept of co-living involves having a common kitchen, a utility space and a lounge area, along with a common study zone that the students can use. This is apart from the private bedroom and bathroom that each resident has. It is a modern form of housing, wherein students stay in a common apartment or building, while sharing common facilities. Similar to how serviced apartments evolved, owing to the need for greater flexibility and freedom as compared to hotels, co-living has taken shape, owing to the need for a cost-effective, flexible and hassle-free lifestyle, as compared to traditional rental accommodations,” explains Divya Seth Maggu, senior associate director, valuation and advisory services at Colliers International India.

​Benefits of co-living spaces, over hostels and PGs

The main benefit of a co-living space, is that one need not compromise on comfort, when living away from home. The facilities available, such as utilities and maintenance, are at par with what is available in one’s house. Although co-living may not be as cost-effective as a hostel, it does offer more benefits over the latter, at a slightly higher cost. Experts point out that hostels and PGs are mainly about lodging and boarding, while co-living provides an elevated lifestyle, with opportunities to interact and cohabit without the overbearing scrutiny and rules.

“Co-living spaces offer flexible lease periods that can range from short-term to long-term. Several co-living spaces also hold events like yoga, festival nights, movies, sports tournaments, etc., which takes care of the leisure activities within the complex. Also, hostels and PGs may have conditions, in terms of visitors, deadlines for returning home, etc., which can hinder flexible working hours,” adds Abhishek Kulkarni, chairman and managing director of Million Sqft Realty Pvt Ltd.

How does a co-living setup operate?

Companies in the co-living segment lease properties on a long-term basis from building owners, for a period of three to seven years. They revamp the interiors, to suit the requirements of students before renting it out. They also hire housekeeping staff and security guards, for property management and are overall responsible for providing the facilities. Students then sign the agreements with the co-living operators. Kulkarni explains: “The agreement includes details pertaining to the rental amount, the period of the lease and verified personal details of the person on rent. The responsibilities of the co-living operators include maintenance, cleaning, collecting rent, etc., thereby, eliminating the multiple levels of operations that exist in renting out a residential property.”

Before signing the agreement for a co-living space

It is important to establish one’s budget in advance, to ascertain the budget that you can pay every month, before starting the search. The next step is to align your requirements from the co-living space, with the budget. Finally, students should look for properties that meet their expectations, as well as budget.

Things to keep in mind, when opting for a co-living space

• Check the time frame of the agreement and the duration of your education.
• Verify the facilities and utilities available and the distance of the co-living space from the place of education.
• Explore various rental options, to ensure that the co-living space is at par with industry rates and not overpriced.
• Check on the privacy available, as a co-living space should offer a conducive environment for studying.
• Check the security in the place.

Also read: Dos and don’ts for relocating a house

TO KNOW MORE ABOUT PROPERTIES IN THANE BLOG - CO-LIVING SPACES VERSUS HOSTELS AND PG ACCOMMODATIONS: WHAT SHOULD STUDENTS CHOOSE?, VISITCREDAI MCHI THANE UNIT

Dos and don’ts for relocating a house

May 2019

Shifting from one home to another, can be a tedious process. We look at some simple ways in which home owners can make the relocation process stress-free 

People often relocate to different locations, to pursue lucrative job opportunities. This is especially true of today’s millennials, who live in rental homes and shift within the same city or different cities. Hence, one has to ensure that the process of packing and moving, remains stress-free and smooth. Deepu Chandran, co-founder and CEO of Pikkol, a technology-centric relocation service provider, points out that renting and co-living trends are on the rise, with millennials moving into a new home every 11 or 12 months. “They have no qualms about moving into a new location or a new city, if they perceive certain advantages to their lifestyle or career. With the growth of the residential real estate sector, the options for property seekers in metropolitan and tier-2 cities, have increased exponentially, boosting mobility,” adds Chandran.

Credits : freepik.com

How to plan for a relocation when living on rent

Priyanka Mullick, an account executive, who came to Mumbai from Kolkata with only a few bags, maintains that packing and moving requires planning, in advance. “When I started working in Mumbai, I shifted along with my roommate, without taking any professional help. Now, I have mastered the art of packing. One has to pack wisely. For example, I even use the pressure cooker, to keep things in it. Simply fill the insides of all spaces, with something smaller. Always use good quality boxes to carry stuff and ensure that each box is not very heavy. Also, if one lives on rent, it is better to collect as few things as possible, to reduce the load when shifting. I am now a cautious buyer and believe in de-cluttering and getting rid of things that are not required,” Mullick explains.

​The advantage of selecting a professional relocation service provider

Although there are many online platforms offering packers and movers’ services, a lion’s share of them are lead-sharing platforms or are based on the marketplace model, where the requirement is ultimately fulfilled by a local vendor. “An individual faces many issues when it comes to moving to a new city, starting from packing and moving, to unpacking and getting settled into the new home. Professional relocation service providers are, ideally, those who can be your ‘companion’, ensuring that when someone moves to a new city, they are not just packing and unpacking their household goods. Hence, there is an increasing demand, for relocation services globally,” says Aakanksha Bhargava, CEO PM Relocations Pvt Ltd (PMR).

How to choose a credible, professional mover and packer

The choice of a professional mover, should only be done after a thorough research. “The major deciding factor, when choosing a professional relocation company, should always be the quality of the service, instead of the cost alone,” adds Bhargava. Before finalising a mover, check the credibility of their service, by reading online reviews or talking to their previous customers.

“One can spot a good service provider, by gauging the level of detail they take for the inventory. If a detailed inventory is being collected, it could mean that they care about the safety of each and every item that needs to be moved. Their online presence should be independent and not through lead-sharing platforms or marketplaces. Ensure that they provide extra services like carpenters, plumbers and other technicians, to avoid a last-minute rush, to find vendors for the same. Ensure that the price quoted for the service is final and there will not be any additions, later. The availability of online payment as an option, rather than cash, could also be a sign of transparent and reliable operations. Essentials like insurance, after-service support and a reliable customer care system, are also indicators of a trustworthy packer and mover. With a professional packer, one does not have to worry about procuring packing materials. A professional service provider will also offer options, vis-à-vis dates for relocation, additional services that may be needed while moving and transparent pricing with convenient mode of booking, payments and billing, etc.,” states Chandran.

Supervise the packing

It is advisable to be present when your belongings are being packed, loaded and unloaded. “Supervise the packing team and do not let them pack things in your absence. This will help you to organise things at the destination and also check if something is missing. In case you are hiring a professional, they will carry out this activity but do keep a copy for yourself, as well,” adds Bhargava. Once all the stuff is packed, make sure you have minimal essentials and things to eat at both, the origin and destination. If one is moving a pet along, make sure that the pet is trained to stay in a crate. If you are relocating overseas, ensure that you have all immigration and other formalities in place.

Tips, to make relocation a smooth process

• Pack things that are not needed every day, well in advance.
• When packing, label the boxes clearly, room-wise, so you know its contents.
• Pack the basic essentials that you need separately, like medicines, mobile chargers, mugs, plates, kettle, some snacks, a pair of clothes, etc.
• Always carry valuables (like bank papers, documents such as Aadhaar card, birth certificates, credit cards, passports, jewellery, etc.) yourself.
• Bubble wrap fragile things. You may need multiple layers of packing, to ensure safety from impact, moisture and static, in the case of appliances, especially for inter-city relocation.
• On the day you shift into the new house, make a prior appointment with an electrician or carpenter, to fix your gadgets and furniture in the new house.

Also read: Home Buyer's Checklist

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How to buy a home that delivers long-term ROI

May 2019

The decision to buy a property, should be based purely on the needs of the individual and the inherent value of the unit. We look at how home buyers can ascertain this, to choose a property that provides good returns on investment

With the Real Estate (Regulation and Development) Act (RERA) coming into force, as well as various other policy initiatives such as the Benami Transactions Act and the government’s push to affordable housing, we are seeing increased activity in the residential property market in the larger cities. After the dampener of demonetisation in 2016, the positive buyer sentiment visible now is especially significant. Consequently, builders are determined to capitalise on it, via increased marketing efforts. Given that there is already a lot of supply in the residential market – a lot of it for ready possession – fresh launches have been curtailed, so that the existing inventory can be absorbed. Much of the intensified marketing efforts are centered around special deals and offers.

Credits : freepik.com

How to ascertain the real value of a home

While this may be advantageous for property buyers, they should be judicious while evaluating offers and schemes and base their purchase decisions solely on the real value of the home. Freebies such as gold, cars and household goods, have an undeniable attraction but they are fundamentally frivolous in nature and do not add to the value of the home.

The price of a home is obviously an important consideration for middle-class property buyers. However, the strategy of looking for the cheapest options on the market, does not make much sense because it is quality that determines value. In the case of residential property, the quality of an offering depends on three aspects:

• 1. The quality of the location.
• 2. The brand value of the builder.
• 3. The availability and quality of facilities and amenities in the project and in individual units.

​The importance of location in a property’s value

Central locations are traditionally the costliest, as they offer great access to many important parts of the city , such as the CBD (central business district) and SBD (secondary business district). These areas tend to host the offices of high-profile companies and offer a vast cross-section of jobs, from highly-paid management to more modestly-paid support staff jobs. Even the second category of jobs is attractive, because the growth prospects in high-profile companies, are usually very good. This is what makes living in central locations very desirable and from a real estate pricing perspective, very expensive.

In India, this mantra held true for a very long time, until the advent of the infotech culture. The IT/ITeS industry, tends to offer very good salary packages but is not focused on high-value locations. Quite to the contrary, such firms prefer to set up shop in peripheral locations, so as to save on the real estate costs. As a result, many cities’ outskirts have become very desirable places for home buyers and they are far less expensive.

For IT professionals and industrial employees, as well as property investors, buying a home in a peripheral location that connects to an IT hub and/or manufacturing belt, makes perfect sense. Unfortunately, such locations attract all kinds of developers – from those who have a reputation for creating true lifestyle value offerings, to those who specialise in constricted, ‘pigeon-hole’ homes. This is where the brand value of a developer plays a significant role.

Correlation between brand value and quality

With a lot of housing supply available in the new growth corridors, buyers are spoilt for choice. The cost of a flat is obviously important but one still only gets what one pays for. Ultimately, a home is not just an asset but one which performs the very critical functions of offering refuge, comfort and security. Buyers must look for options, which offer them these three advantages to a satisfactory level. Branded builders provide these as part of their standard value offering, because their reputation demands it.

Facilities and amenities that add value to a property

Urban life today, places a lot of stress and demands on us. Consequently, our homes cannot be mere places of refuge but must also provide healing and rejuvenation. A clubhouse, swimming pool and children’s park, are no longer luxuries but the bare minimum that Indian home buyers can and should expect. Nevertheless, even projects without such offerings will find buyers because of their lower prices. While short-listing prospects for home purchase, it is important to ensure that the final selection provides a decent lifestyle and not just an abode.

If one looks at the supply in the residential property market from this perspective, the choice of options automatically narrows down to a more manageable and comprehensive level. Buying the right home is not just about present and future comfort, but also about investment growth. Homes in good locations, built by reputed developers with a good saturation of amenities and facilities, will always yield better capital appreciation, as well as potential rental income for property investors.

Also read: Dos and don’ts for buying a property to earn rental income

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Source: housing.com