FAQs | PropertyGeek – Your Real Estate Questions Answered

You need to pay extra taxes and fees if you are buying property in India. That is the property purchase tax in India. It includes stamp duty, registration fees, GST for the ongoing ones, and TDS for homes that are more than 50 lakh rupees. All these property purchase taxes will add to and affect the total cost. Therefore, to avoid surprises from these taxes, you should first go through these costs before planning to buy.

Some important documents that you should have whenever you are buying a new home are the Sale Deed, the Title Deed, the Encumbrance Certificate, the Khata Certificate, and approvals for the building plan. Also, don’t forget the NOC and Completion Certificate. After this, you need your PAN card, ID, address proof, and tax receipts. These are a few documents required to buy a house.​

Check your registration of property checklist before you sign the agreement of property, which is a must. Also, the property’s title, encumbrances, schedule of payment, and date of possession. Overall, a thorough review is important for safety and a smooth transaction.

Whenever you are buying or selling any property in India then you should pay Stamp duty as tax. It should be done during the registration process. It’s based on the market value or agreed value of the property. The main advantage of this Stamp duty is that it stands as a legal document and proof in court if anything happens.

The main difference between the power of attorney and registry​ is that a PoA is a legal doc that is used by an agent to manage the property-related tasks for another person. Based on different types of PoA, the agent can sell or transfer the property. Whereas, a registry is an official record. It is kept with the government, and all the transactions are noted. It helps to understand things like who owns the property and all such things.

In a Freehold flat, there will be no time limitations, and it means a full-fledged ownership of the property as well as the land occupied.
Advantages:
You don’t have to deal with lease end dates. You can change, sell, or rent it out without needing permission. That means full control over the property.
Drawbacks:
Freehold flats can be pricier compared to leaseholds.
If you’re thinking about a DDA flat freehold, it’s important to know how the conversion and everything will work. The Delhi Development Authority (DDA) has a way to turn leasehold flats into freehold by signing a deed in your name. You’ll need to pay some fees and provide specific documents.

If you are confused about ”how to choose a builder for your home,” then look at their experience in the field. Their portfolio is something you look into. They must be licensed and insured. Ask about their reputation and if they complete the project on time. Look for different reviews and also the trusted sources.

There are hidden costs of buying an apartment apart from per sq. ft. charges. If you are purchasing the multi-storey building, then check for various additional fees. Its base price plus PLC, maintenance deposits, which include advance charges of maintenance, even the fees for your car parking, if there’s a clubhouse, then its charges, charges for any amenities present like a swimming pool, and all. These are all hidden costs of buying an apartment that will eventually increase the total cost.

To compare real estate properties effectively, focus on key factors such as location, price per square foot, amenities, property condition, and future development plans. Utilize online tools and platforms to assess these aspects and make informed decisions.​

In India, there are several kinds of home loans to meet different needs: –

Home Purchase Loan: This is for buying a new house or an old one.

Home Construction Loan: Use this if you want to build a house on land you already own.

Home Improvement Loan: This is for fixing up or upgrading your current home.

Home Extension Loan: Perfect for when you want to add more space to your existing home.

Land Purchase Loan: For buying a piece of land.

NRI Home Loan: Designed for Non-Resident Indians looking to buy property in India.

PMAY Home Loan: These loans are subsidized under the Pradhan Mantri Awas Yojana scheme.

Top-Up Loan: This is an extra loan you can get on top of your current home loan.

Balance Transfer Loan: This allows you to move your existing home loan to another lender for better terms. Each loan type serves a specific purpose, so it’s important to pick one that fits your needs.​

Factors to consider home loan​- Before securing a home loan, assess your credit score, income stability, and debt-to-income ratio to ensure repayment capability. Compare interest rates, loan tenure, and processing fees across lenders to find the most favorable terms. Utilize a home loan eligibility calculator to estimate the loan amount you qualify for and plan your finances accordingly. Understanding these factors helps in making an informed and financially sound decision.

Home loan eligibility is determined by factors such as age, income, credit score, employment status, and existing financial obligations. To assess your eligibility, you can use a home loan eligibility calculator provided by various financial institutions. These tools help estimate home loan eligibility criteria​ that you may qualify for based on your financial profile.

Beyond the EMI, home loans in India often involve processing fees, legal and technical verification charges, documentation fees, stamp duty, GST, and prepayment or foreclosure charges. These additional costs can significantly impact the overall expense of the loan.

Home loan tax benefit include-under Section 24(b), you can claim a deduction of up to ₹2 lakh per annum on the interest paid for a self-occupied property. Additionally, under Section 80C, principal repayment up to ₹1.5 lakh per annum is deductible. For first-time homebuyers, Section 80EE offers an extra deduction of up to ₹50,000, provided specific conditions are met. These are income tax benefits on the home loan.

There are quite a few rules that NRIs should keep in mind regarding the sale of property by NRI RBI guidelines. They can buy commercial or residential properties. Not agricultural land, property related to the plantation. It’s possible only if it is gifted by someone or it is inherited. NRE, NRO are some modes of payment that they must follow during the transaction. Returning or selling a sale is allowed up to USD 1 million PFY. This is subject to tax and 10 years of ownership.