If you are buying a property in the outskirts of Chennai then check for the following details with the developer:
Land rights document
Does the land come under city corporation limits?
Does it come under a Taluka area?
Check for non agricultural clearance if it is rural land
Has the developer obtained permission and required clearances from the area development board?
Has the respective government bodies legally approved water and electricity connection?
What are the administrative fees, duties and taxes to be borne by the property buyer?
Clarify the stamp duty, registration fees, documentation fees, electricity and water connection charges, car parking charges and maintenance fee.
Additional important expenses property buyers in Chennai need to be aware of include: Value Added Tax and Service Tax. In some cases, when the project reaches the possession stage property buyers will need to pay VAT and service tax in addition to the other expenses.
Service tax is tax levied on commercial and residential construction. In general the rate of service tax is 4 per cent of the total construction cost. The residential Builder’s agreement with the buyer must reflect this point.
VAT has replaced the earlier sales tax and all builders’ pay VAT. The builder can choose to pay two per cent of the total building cost or calculate it on item basis for materials like sand, cement, bricks, etc.
The service tax and VAT put together would roughly work out to 2% of the price mentioned in the sale agreement in the case of apartment complexes with less than 12 units, and for buildings with more than 12 units it would roughly work out to 6% of the total price.
Sometimes escalating construction costs can impact the amount charged by the builder, howeverreputed residential builders don’t levy any additional charges because of rising construction costs. Also, the rate quoted will include all taxes and that is the final price.
This is a first of its kind initiative by MARG ProperTies where home seekers can join in and pray together to be blessed with their dream home. There will be nine 30 to 40 minute sessions between 7 a.m. and 3 p.m.
There will be various poojas such as Ganapathy, Vaastu, Navagraha, Sudarshana conducted at the venue. Well-known poojaris from Chennai will be performing this pooja. Prasadam and refreshments will be served to all the guests. All are welcome! If you have family or friends who are looking to buy a home then you can bring them along so that they benefit from the poojas.
This is an absolutely free and open pooja where one and all are invited to participate. MARG ProperTies has taken many initiatives to stay connected with people and GRIHA PRARTHNA is one such effort.
To avoid rush, kindly register for the event. Call MARG ProperTies at 044 – 42525252 or simply visit www.margproperties.com. There will be spot registrations too, however prior registration is recommended to avoid rush.
Are you in the process of buying a property in Chennai? If yes, then you might want to know how to register a property in Chennai.
Once you have shortlisted the hot property that you want to own, then the next logical step is to enter into an agreement for sale with the seller/residential builder. The agreement for sale is between the seller and purchaser. The deed must mention:
·Name
·Father’s name: example, Mr Praba, son of Mr Shanmugam Illangovan
·Advance amount paid with details of cheque number/demand draft number/cash paid
·Balance amount to be paid and various other details
Please bear in mind that the final sale deed completes the sale transaction. Who can draft the deed? An advocate, licensed document writer, or a chartered accountant who has a document-writing license can draft the sale agreement.
Only licensed copywriters or licensed typewriting copywriters must prepare the document copy, also the copy sheets sold by the registration department must be used. Cost of each copy sheet is 1 Indian rupee. There is a fee that you will have to pay for document writing and the fee is prescribed by the government.
When can you register? The registration must be completed within four months of the execution date. This timeframe is not applicable to wills. If you are unable to register within the prescribed timeframe then you can pay a fine and complete registration at a later date. The percentage of fine varies depending on the time delay.
Where can I register the property? Registration with the relevant district or sub registrar’s office is mandatory. Documents needed for registration are: Stamped, signed and executed deed; required registration fees, duplicate registration fees, sub division fees, etc. It takes about 3 days for the documents to be returned.
Please note a list of stamp vendors is available with the registration department of Tamilnadu. These vendors a re licensed to sell stamp paper at face value and commission to the vendors is borne by the government. Stamp paper is also available at the Sub Registrars’, Treasuries, and Assistant Superintendent of Stamps, Chennai. Stamp duty can be paid as cash or demand draft.
The overview of property registration in Chennai will give you a better understanding of the process!
The Chennai residential property market’s growth over the last few years has been amazing. The residential property market growth is in tandem with the overall economic growth, and the entire real estate segment.
Home to several important industries such as IT/ITES, automobile, education, entertainment, Chennai commands great respect amongst the cities in India. Chennai is known for its safety, infrastructure, quality of life, and low living costs compared to other cities in India. Property value is fast appreciating and yet affordable to many; likewise rental rates are far lesser than other cities.
In up market areas the rate per square feet ranges anywhere between 8,000 to 33,000 Indian rupees. Chennai’s up market areas include Adyar, Alwarpet, Boat Club, Besant nagar, Raja Annamalaipuram, Nungambakkam, Greenways road and Radhakrishnan Salai. Other hot areas include Mylapore, Royapettah, Velacherry, Loyds Road, Tiruvanmiyur, Anna Nagar where the prices per square feet range between 4000 and 7000 Indian rupees. The prices indicate average prices only.
Although each area has a certain market rate within that area depending on the street, proximity to the main road and other facilities such as hospitals, post office, schools etc the price will vary. Pricing also depends on the amenities and facilities offered by the residential builders.
Buying an apartment in the heart of Chennai would cost you 3.5 to 6 crore Indian rupees. However compare it to other cities such as Bombay, and Delhi you will be able to find an apartment for this range a little away from the city.
After the Tsunami property prices did drop considerably, but over a period of time the Chennai property market has stabilized. Now there is more demand than supply thanks to the influx of multinational companies in Chennai, the volume of jobs being generated and also migrants from other cities. Residential apartment builders are launching new projects to meet the augmenting demand for properties across Chennai.
Chennai is becoming a potpourri of culture and the changing scenario is reflected in the city’s buildings as well. Drive around Chennai and you will see modern apartment complexes with state of the art facilities.
The Government of India has opened the doors to Non Resident Indians for property investment. And this is an ideal time to invest in a stable property market like chennai. As a Non Resident Indian looking to invest in property in cities like chennai you have three choices: use your own funds; or apply for a home loan; or a combination of own funds and a partial loan. Non Resident Indians considering a loan to buy property must know that banks will sanction loans for the following properties only:
· To buy a built house/apartment
· To buy an apartment/house under construction
· To buy a second hand house/apartment
· To construct a house on approved land
· To buy an approved plot
· To renovate an existing property in India
The basis on which loans are sanctioned is similar to that of resident Indians. The general factors looked into are: qualifications, present job, previous work experience, chances of staying broad for the loan tenure, ability to repay the loan should the Non Resident Indian return to Indian during the loan tenure.
The loan term period varies from bank to bank depending on the individual’s profile. Non Resident Indians are eligible to apply for loans form housing finance companies as well. In such cases he loan period is 5 to 7 years generally.
Interest will have to be paid once the loan is disbursed. If only a partial amount is disbursed then simple interest in that amount alone is levied. The loan must be paid through NRE/NRO or FCNR accounts only. Please note there are no tax benefits to NRI’s unless the NRI has been filing returns in India.
Documents required for home loans include passport copy, employment proof copy, recent salary statements, bank statements, any returns filed in the country residing, etc. And in some cases in the absence of the Non Resident Indian a power of attorney is required to complete the formalities.
There may be slight differences from bank to bank, however the overall prevailing conditions on buying a property in the cities like chennai using a home loan remain the same.
