33.17 LLA-Real Estate Masterclass

Agenda

Introduction

Types of real estate:

By Naman Mohnot

10 property documents we should know

  1. Title document (Sale deed, gift deed, etc)
    1. The main registry paper with stamp on front page.
    2. Before sale deed there is another document called Agreement to Sale. This like engagement, sale deed is like marriage.
    3. Check how the seller got this property. Check the title document there.
  2. Channel document
    1. This is a document which contains the history of all the owenership changes of the property.
    2. This is mandatory before buying a property.
  3. Encumbrance certificate
    1. It is an evidence that the poperty is free from all legal and monetary liabilities.
    2. This can be get from the Tehsil office with form-15.
  4. Occupancy certifcate
    1. This is need to be chcked when we get property from a builder.
    2. This is relevant for flat.
  5. Allotment letter
    1. When we are getting flat from builder this is required.
  6. Tax receipts
    1. property tax receipts should be checked to know that the previous owner has paid all the taxes before.
  7. Car allotment letter
    1. Letter indicating the allotment of parking space in apartments.
  8. NOC
    1. ReRA provides this certificate.
  9. Mutation
    1. The official document that the property ownership has been changed from the previous owner to yourself.
    2. Go to govt office and change the ownership and get this mutation letter by showing the sale deed.
  10. Conversion certificate
    1. Converting a land to agricultural to non-agricultural purpose i.e. residential or commercial.

Property Frauds

1. Title Fraud

2. Power of Attorney Fraud

3. Possession Fraud

Preventive Measures

On the day of Registry

  1. Carefully read the sale deed
  2. Make naksha mauka of the property
  3. Title document
  4. Stamp duty
  5. Encumbrance certificate
  6. Possession
  7. Witnesses

Home Loans

By Mandeep Gill

Home Loan Rule

  1. Total House Cost <= Three years' of household income.
  2. Miximum loan tenure < 20 years.
  3. Total EMIs < 30% of household income.
  4. Minimum downpayment is 40%.

RBI Guidelines

  1. Bank will provide option to switch to a fixed-rate loan policy at the time of loan interest reset.

Taxation Aspects

Capital gain computation

Saving CG Tax

There are two ways CG tax can be reduced:

1. By reinvesting the capital gain only into a new property

  1. Section 54
    1. There is no additional tax benefit in complete use of the sale value on the new property.
    2. Only investing the CG is enough.
    3. If 60L property sold as 1cr. You need to only invest 40L in new property to save CG tax.
  2. Section 54F
    1. You can invest CG and full sale deed accumulated over on any non-residential property like Stocks to buy residential property to save the CG tax.
  3. There is some time limit on this. One year before and two year after the sale deed.
Capping on maximum investments

There are two kinds of capping is there:

  1. Number of properties
    1. If CG > 2cr after selling one house, we can take maximum two houses.
  2. Value of property
    1. No CG exemption after 10cr of capital gain.
    2. This has an indirect effect on 33.29 Why have the rents gone up massively over the last 1-2 years?.

2. By reinvesting into infra bond

  1. Take bond till 50 lakhs within 6 months of the sale.
  2. This has 5% annual interest.
  3. Lock-in of 5 years.
  4. Maximum 50 lakhs in a FY we can buy.
  5. After 5 years no tax.

Tax saving on home loan

|800

GST on property

Vaastu aspects

By Pradeep Jain

|500

|500
This is the kundli of Mukesh Ambani.

|800

|800

Do not purchase land/house near:

  1. School
  2. Graveyard
  3. Hospital and
  4. Temple

Five points to pay attention on house/flat

1. Entrance


Green and yellow are good. Orange is ok.
Red is bad to make entrance to home.

2. Bed rooms

|500

3. Kitchen

|500

4. Drawing room

|500

5. Toilets

|500

|800

|400

Source

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