New home vs Resale home: which better for you

 New home vs Resale home: which better for you

"I bought a resale kitchen home back in 2016 in Borivali, Mumbai for around Rs 55.5 lakh (including stamp duty, registration fee, and other overhead charges). The house was well-maintained, so I only had to do a few minor repairs and change the paint of the house. I wanted to invest in real estate, but couldn't find a home that fits my budget in any of the newly constructed buildings. Hence, I purchased a resale home. Now, in a few years, this building shall be redeveloped, and I will get a new, bigger home, at very little extra cost," 

"Buying a new home in an under-construction project gives you time to accumulate money and make the payment accordingly. Other than that, a brand new home comes with several modern amenities, especially if one invests in gated communities/complex-style projects."

So, if you are looking to buy a home but unsure whether you should buy a new home or a resale property, then read on as we analyze the pros and cons of each option, to help you get clarity.

In the case of brand new home

• Adherence to building norms: Other than the fact that the home is brand new, newer constructions also adhere to the latest building norms, codes, and standards, which can provide greater energy efficiency and safety;
• Customisation options: If buying an under-construction home, you can request the developer to customize your home (generally, at an additional charge);
• Lifestyle amenities: A new project is likely to offer a variety of. well-planned indoor and outdoor lifestyle amenities such as playground, swimming pool, sports court, gym, mini theater, banquet hall, business center, etc. In addition to that, these homes may also offer high-end safety and security features such as smart home automation, energy-efficient appliances, and modern fixtures.

The disadvantages of buying a new home:

• In the case of under-construction projects, buyers cannot move in immediately. Also, the buyer would have to complete the interior decor work before moving in, this can delay the move. If the builder is not providing a furnished home, you may have to factor in this expense as well. As per the prevalent benchmarks, fit-out cost for a residential unit can range from Rs 1,200-2,000 per sq ft;
• Upkeep and maintenance of the society or the building premises can- not be ascertained;
• It is not possible to check in case of any issues such as seepage or leakage within the unit.

In the case of resale flat

The key advantage of purchasing a home from the secondary market is that you can get possession of the flat immediately. Also, the seller is more than willing to negotiate on the price tag," says Niranjan Hiranandani, national vice-chairman, NAREDCO.

Jhunjhunwala further mentions, "A buyer can ascertain the society premises, its upkeep and maintenance. Also, any underlying issues pertaining to the development, or the unit can be ascertained."

"Resale homes are often located in established neighborhoods with mature trees, established infrastructure, and surrounded by amenities such as schools, shopping centers, and transportation. This can be a great advantage for buyers as it enables convenience. It is also crucial for those who wish to buy a home at a specific location. The outgoing costs (such as society maintenance) are also lower as compared to the newly constructed homes," elaborates Mody.

The drawback of buying a resale home

• Dated home models: Resale homes may have outdated home layouts. They also come with old appliances, outdated electrical and plumbing systems, or old heating and cooling systems. This can be costly to update and may not be energy efficient;
• Maintenance costs: Resale homes may require more maintenance and repairs than the new homes due to the wear and tear. This can add up to substantial costs over time and may be unexpected.

Earn a side income from your land with minimal construction effort

 Earn a side income from your land with minimal construction effort 

Land is the primary asset in the real estate industry, for obvious reasons. However, if the asset is kept unattended, it could soon become a liability. One of the main reasons that land is kept vacant is because the owner doesn't have the finances required to build on it, and thus loses out on potential returns. But, what if you can earn a decent return from your vacant land? Here is a look at how you can do that with minimum construction efforts.

• Agro-tourism or farming

Several professionals are turning into urban farmers, and are making it either their side hustle or their main income source. Ashish Narain Agarwal, founder and CEO of a property portal shares, "Agro-tourism is gaining popularity; thus if you like farming, you can consider cultivating crops. The income from the sale of the produce is one way to earn money, the other is by entertaining visitors as a part of agro-tourism. Harvesting rare or seasonal crops is an option as they are in demand in local as well as international markets. Starting a poultry or dairy business can give you good yields as well. If migratory or unique birds or animals are visiting the farm, then you can entertain photographers and give them a chance to click a few nice pictures." However, do keep in mind that to offer agro-tourism on your agricultural land, you would require a commercial license.

If you do not have space for a full-fledged farm but only a small patch of land, consider organic farming.

You might be wondering residential purpose in a non-urban area."whether a non-agricultural (NA) plot can be turned into an agricultural plot or not. Agarwal clarifies, "Agricultural plot can be converted into an NA plot, but one NA plot can be converted into another NA plot through land conversion procedures of respective states.

"Further explaining the same, Heena Chheda, partner, Economic Laws Practice shares, "Under normal circumstances, non-agricultural land is not generally converted to agricultural one. Further, no land assessed for one non-agricultural purpose shall be used for any other non-agricultural purpose without the permission of the district collector. However, no such permission is required for conversion of any agricultural land for the personal bona fide residential purpose in a non-urban area"

• Special events

If you have your land at a picturesque location, you can rent it out for various events. Depending on the size of the land, it can be utilised for special events such as fairs, birthdays, weddings, educational conferences, product launches, political rallies, and large events. This will help generate a regular in- come from the land. But you will have to spend a bit to ensure that the land has basic infrastructure in place to facilitate such events," asserts Mohit Ramsinghani, chief sales officer of a real estate company.

"Destination weddings are very much in trend. If your land is near a water body or mountain, you can rent it out for family functions and wedding ceremonies. You might need some basic infrastructure like stay options, washrooms, drinking water facilities, etc. However, if it's agricultural land, you may have to rezone it for different purposes. You may also need necessary conditional licenses and rent agreement (between you and the events organizers), as well as NOCS from the local authorities." opines Agarwal.

• Camping sites or tourism

Owning a piece of land at a beautiful location amidst nature, like near a water body can attract tourists. You can use your land for camping or tourism. Locations such as Karjat, Alibaug, Goa, Shimla, Mussoorie, Nainital, Kasau-li, and Dehradun are gaining

interest among tourists for camping purposes. You just have to set up some tents and provide basic amenities like a hygienic environment, bedding, clean washrooms, food, drinking water, etc. You can also hire locals who have experience in setting up the camping business and are well aware of the local train.

About the legalities in- volved in the same, Chheda adds, "At the central level, the Ministry of Tourism, Government of India has set out guidelines wherein, project approval and classification of operational tented accommodation have to be adhered to, to set up a campsite on the open plot of land. Then, the Hotel and Restaurant Approval and Classification Committee (HRACC) would inspect and assess the tented

accommodation based on the facilities and services offered. Project approvals would also be given to two categories (standard or deluxe) at the project implementation stage. Classified tented accommodation/approved projects may be eligible for various concessions and facilities that may be announced by the government from time to time besides, getting worldwide publicity through the tourism offices located in India and abroad. There could be certain state-specific guidelines as well, which need to be followed."

Shivani Surve who runs her camping site in Alibaug shares, "I started a camping facility on our land in Ali-baug last year. Being a local and having researched other camping sites around, I curated the camping site myself with the help of some locals. We have found that people just want all the basic amenities along with good food."

Advertising and billboards Based on the location of your land, you can give it to advertisers and earn a steady income. "If your land is at a strategic location or beside a highway, you can put billboards on the land and charge the advertisers to display their adverts. This business will give you a consistent and recurring income for the long term, also there will be no major cost required to start the same," shares Ramsinghani.

• Storage spaces and warehousing

Various big companies are on the lookout for large spaces where they can store their goods. If you have non-agricultural land that has easy access to commercial areas or the city, you can lease out the land to companies who want to use it as a storage space or warehouse. Ramsinghani mentions, "Today, all businesses need a place to store their goods and here warehouses create a major impact. There will be decent money required to build up a warehouse, considering the space, electricity, facilities and planning, but a warehouse can generate good income for a long term."

Talking about the permissions of the same, Agarwal shares, "Any person commencing or carrying on the warehousing business has to register the warehouse with the Warehousing Development Authority."

• Capital appreciation

Varun Jhangiani, director - land services, Anarock Group shares, "Investors should bear in mind that while plots can and do yield good returns in most cases, they are far from being liquid assets unless they are a part of a plotted development project. In plotted developments, the developer increases the value of land by providing basic facilities and infrastructure, which make buying plots attractive to buyers looking to build homes there. Whenever one invests in a land without actually constructing it or leasing it out for other purposes, one must remain vigilant for encroachment, which is one of the biggest potential pitfalls of owning unused land."

Property laws for NRIs and OCIs buying a home in India

 Property laws for NRIs and OCIs buying a home in India

You might be surprised Y to learn that there are three distinct types of Non-resident Indians (NRIs). Moreover, there are different laws for each of these categories when it comes to buying property in India. Take a look.

Role of RBI in property purchase

The Foreign Exchange Man- agement Act, 1999 (FEMA) empowers the Reserve Bank of India (RBI) to frame rules to regulate the flow of payments to and from persons based outside India including the acquisition or transfer of immovable property in India.

Section 6 (5) of FEMA states that a person residing outside India may hold, own, transfer or invest in any immovable property situated in India if such property was acquired, held or owned by such person when she/he was a resident in India or inherited from a person who was a resident in India.

All financial transactions concerning foreign securities or exchange have to be executed through authorised.

persons and cannot be carried out without the approval of FEMA.

What is your residential status?

Before you set your property purchase plans in motion as an NRI, you need to understand your residential status. This is because it is defined differently for various categories and different laws are applicable for each category. While NRI is a broad term to describe an Indian citizen living abroad for a certain period of time in a year, it is defined clearly under the FEMA, 1999, and the Income Tax Act, 1961.

NRI under FEMA

Persons going outside India for employment, on business or vocation, or for any other purpose for an uncertain period of time are considered as NRIs irrespective of their period of stay abroad;

Persons coming to India for employment, on business or vocation, or for any other purpose for an uncertain period of time are considered as residents in India, irrespective of the period of stay in India.

NRI under the Income Tax Act

Is a person who is not a resident in India. An individual is considered to be a resident in India if:"The person is in India for a period of 182 days or more during the previous financial year;

The person is in India for a period of 60 days or more during the previous financial year and 365 days or more for four years immediately preceding the previous year.

Overseas Citizen of India (OCI)

If you are not a citizen of India presently, but were in the past or at least one of your parents /grandparents /great grandparents was an Indian citizen, or you are married to TY

an Indian citizen /OCI, you can register as an OCI card holder under Section 7 (A) of the Citizenship Act 1995.

Under this Act, you are eligible for certain privileges in India such as a lifelong multiple-entry visa.

Property purchase and ownership in India

FEMA lays down the rules and restrictions for NRIs and OCIS to buy and own certain types of property in India. Both, NRIs and OCIS are permitted to buy, acquire and own immovable property in India. The restrictions are on purchase of agricultural land, farmhouse and plantation property. However, specific proposals for the purchase of these types of land can be made to the RBI, which in turn consults the government of India to issue the specific approval.

Citizens of Afghanistan, Bangladesh, Bhutan, Nepal, Iran, Pakistan, and such other countries as may be notified from time to time, need prior permission from the RBI to acquire property in India.

Assess your residential status as an NRI under any of these categories for a simplified property purchase.

Here’s how RERA benefits homebuyers

 Here’s how RERA benefits homebuyers

The government announced the Real Estate (Regulation and development) Act,2016 and set up RERA for each state to regulate and promote transparency in the real estate sector. Anand  gupta ,chairperson of the housing and RERA committee of a national apex representative body of civil engineering construction companies, informs, ’’According to the Act, every real estate project where the total area to be developed exceeds 500 sq m or more than eight apartments proposed to be developed in any phase-must  be registered with its respective state’s RERA.’’

     Niranjan Hiranandani, vice –chairman,  NARMECO, further shares, “The Act mandates developers to display detailed information of their project, which will help discerning homebuyers make an informed decision. The aim was a common information exchange for the buyer and seller, which will ensure streamlining of the process and documentation, enabling ease of doing business.’’

Access of information

The RERA website has plenty of useful information like the developer’s profile, track record, details about ongoing and past litigations, promotional material about his projects, details of plots and apartments, an authenticated copy of all approvals, commencement certificate, sanction plan, layout plan, specification, plan of development work, proposed facilities, proforma allotment letter, agreement for sale and conveyance deed, details of registered brokers or brokerages , as well as approval status and project layout plans. If one is planning to buy in an under-con- struction project, they can access details on the RERA website about the number of units booked-rather than relying on the information provided by the builder.    

Availability of land title documents

Some of the land documents such as the project’s land title ownership, which were inaccessible to buyers, are now available on RERA website for buyers’ scrutiny.

Clarity on carpet area and amenities   

For first-time buyers’ the concept of carpet area, built-up area, and super built-up area can be confusing.The conventional practice of pricing based on the carpet super built- up area is na longer permitted. Now the quoted price is based on the carpet area of the property. Jitesh Lalwarni, president of a real estate advisory, explains, "Under RERA, this ambiguity has been eliminated, and buyers pay the price based on the carpet area which is already stated on the website. Developers share all the details of the amenities. This gives buyers an added advantage of gaining knowledge about the amenities offered by the developers and choosing the project based on their preference."

Facility to check payment plans

Now with the availability payment plans like flexi payment. possession-linked payment, and construction-linked plans – buyers can do due diligence before opting for one. As homebuyers, it is important to select a RERA-registered project to make a safe investment.

Is it better to buy land for a second home?

    Is it better to buy land for a second home?

After experiencing the lockdowns in the city, people with high disposable incomes began searching for properties - in green environs or near the sea - that are at a driving distance of three to four hours from their home in the city.  The market is gaining wider traction from this segment of the working population that is now looking for better work-life balance, more open spaces that allow for wellness activities and greater access to the outdoors.

        Vikesh Kamath, a chartered accountant who bought land in Dahanu for building a bungalow, says, “After staying in my two-BHK house during the lockdown, I realized the importance of having your own terrace and a garden or even staying in locations with more open spaces.  It was then that we, as a family, decided to purchase a second home.  We had the option of buying a ready-to-move-in bungalow or a plot of land.  However, I didn’t want a pre-designed structure because I wanted to design the house based on my needs.  So, we agreed to buy the land, which is located near a mango farm.”

Choosing between land and apartment

Traditionally, investing in a plot of land has been a popular choice of long-term investment for most Indians.  Many buyers are considering plots in gated societies.

    Anuj Puri, chairman of a leading real estate services company and property consultancy, says, “Amidst a rising demand for plots, some of India’s top developers have ventured into plotted developments.  In the case of buyers, the advantage is the relative affordability of plots compared to built-up real estate.  Also, one gets potentially good returns on land investment in the long term.  Even the proposed infrastructure projects in the city peripheries provide a strong rationale for investing in land now and reaping the benefits on their completion.”

     A flat is a pre-designed, multi-floored construction where the buyer lacks the freedom to change the shape and size of the construction area.  But the buyer has the advantage in terms of location, connectivity, and security.  Industry experts advise that one must focus on one’s own needs.  “Not all homebuyers face the dilemma of choosing to invest in land or an apartment.  Both have their pros and cons.  Buying land means you have the freedom to build a house that suits your requirements.  But you have to put in a lot of effort and time to build a house, sometimes in a remote location, which comes with its own issues.  On the other hand, investing in an apartment or ready villa ensures that the infrastructure is taken care of, and furnishing it is the owner’s responsibility.”

Buyers, take note

Buyers should consider key factors like social infrastructure, connectivity and proximity to the main city, and view from the location, before buying the land.  Land that’s located close to a water body or mountain/hill will fetch good value after construction.  Property consultants are of the opinion that the appreciation trend is different in each of the areas.  Padman Bhoir, a property dealer in Palghar, explains, “For instance, Jawhar, Dahanu and Wada have connectivity.  So, if somebody constructs a bungalow, he could easily give a part of it for rent.”

           One should check the agricultural status of the property as there are restrictions for non-agriculturists   with regard to purchasing agricultural land in different states.  Conduct a physical survey of the land, make note of the land size, access to the plot and municipal laws relating to the construction in the area, as permissions will need to be sought from the local bodies.  Lastly, with the help of an expert, analyse the stamp duty and registration charges, along with the taxation fees. 

உரிமையாளர், பவர் முகவர் இடையே பிரச்னை உள்ள சொத்துக்களை வாங்கலாமா?

 உரிமையாளர், பவர் முகவர் இடையே பிரச்னை உள்ள சொத்துக்களை வாங்கலாமா?

வீடு, மனை உள்ளிட்ட அசையா சொத்துக்களை வாங்கும் போது அதில் வில்லங்கம் எதுவும் இல்லாமல் பார்த்துக்கொள்ள வேண்டும்.  இதில் முந்தய பத்திரப்பதிவு தொடர்பான வில்லங்கத்தில் மட்டுமே கவனம் செலுத்தப்படுகிறது.

      ஆனால், சொத்து விற்பனையில் 'பவர் பத்திரம்' எனப்படும் பொது அதிகார ஆவண ரீதியாக உள்ள வில்லங்கங்கள் மீது மக்கள் கவனம் செலுத்துவதில்லை.  ஒரு உரிமையாளர் தன் பெயரில் உள்ள சொத்தை விற்க, இன்னொருவரை முகவராக நியமிக்க பவர் பத்திரம் உதவுகிறது.

        முறையாக பதிவு செய்யப்படாத பவர் பத்திரம் செல்வது.  அதுவும், பவர் பத்திரத்தில் விற்பனைக்கான அதிகாரம் முகவருக்கு கொடுக்கப்பட்டு இருக்க வேண்டும்.

        விற்பனை அதிகாரம் இன்றி குறிப்பிட்ட சில பணிகளுக்காக 'பவர்' வழங்கப்படுவது உண்டு.  இவ்வாறு, வேறு நோக்கத்தில் அளிக்கப்பட்ட பொது அதிகாரத்தை பயன்படுத்தி மேற்கொள்ளப்படும் விற்பனை செல்லாது.  பவர் பாத்திரங்களை பொறுத்தவரை, உரிமையாளர், முகவர் இடையே நல்ல உறவு இருக்க வேண்டும்.  இவர்களுக்குள் கருத்து வேறுபாடு ஏற்பட்டு ஒருவரையொருவர் சந்திக்க முடியாத நிலை இருந்தால் அத்தகைய சொத்துக்களை வாங்குபவர் பிரச்னைகளை எதிர்கொள்ள வேண்டியிருக்கும்.

       இவர்களுக்குள் பிரச்னை உள்ள நிலையில் முகவரை நம்பி ஒருவர் சொத்து வாங்க வந்தால், அதற்கு எதிரான வேலையில் உரிமையாளர் இறங்கலாம்.  இதனால், அந்த விற்பனையை பதிவு செய்ய முடியாத நிலை கூட ஏற்படலாம்.

        எனவே, உரிமையாளர், முகவர் இடையே சூழல் எப்படி உள்ளது என்று பார்த்து அதற்கு ஏற்ற வகையில் செயல்பட வேண்டும்.  சில சமயங்களில் உரிமையாளர், பொது அதிகாரத்தை ரத்து செய்ய நினைக்கலாம்.  இதற்கு முகவர் எதிர்ப்பு தெரிவிக்கலாம்.  இத்தகைய சூழலில் சொத்து வாங்குவோர் புதிய சிக்கலை சந்திக்க வேண்டியிருக்கும்.  பவர் முகவர் விற்பனையை அனுமதிக்க கூடுதல் தொகை கேட்டு தகராறு செய்யலாம்.

             இது போன்ற பிரச்னைகளால் ஏற்படும் கூடுதல் செலவை, விலையில் சேர்க்க ஒப்புக் கொள்ளாதீர்.  உரிமையாளர் ஆட்சேபத்தை சரி செய்ய வேண்டிய பொறுப்பு முகவருடையது.

              அதே போன்று முகவரால் எழும் ஆட்சேபத்தை சரி செய்ய வேண்டிய பொறுப்பு உரிமையாளருடையது.  சொத்து வாங்குவோர் இதை புரிந்து செயல்பட வேண்டும் என்கின்றனர் பதிவுத்துறை அதிகாரிகள்.

வீடு வாங்குவோர் விசாரித்து அறிய வேண்டிய புதிய தகவல்கள்

 வீடு வாங்குவோர் விசாரித்து அறிய வேண்டிய புதிய தகவல்கள்!

      புதிதாக வீடு வாங்க வேண்டும் என்ற எண்ணம் எழுந்த பின் அதற்கான நடவடிக்கைகளை துவங்குவோர், முதலில் நிதி ஆதாரம் என்ன இருக்கிறது என்பதில் கவனம் செலுத்துவோம்.

      இதையடுத்து, எந்த பகுதியில் எத்தகைய திட்டத்தில் வீட்டை வாங்குவது என்பதில் சரியான முடிவு எடுக்க வேண்டும்.

      இதில் உங்களுக்கு அனைத்து வகையிலும் பொருத்தமான குடியிருப்பு திட்டத்தைத் தேர்வு செய்வது சவாலான பணியாகும்.

       எந்த பகுதி என்பது முடிவாகிவிட்டால் அதில் எந்த திட்டம் என்பதை தெரிவு செய்ய வேண்டும்.  இதில் சம்பந்தப்பட்ட திட்டம் முறையாக அனுமதி பெறப்பட்டு, விதிகளை மீறாமல் கட்டுப்பட்டுள்ளதா என்று விசாரிக்க வேண்டும்.

        அந்த சொத்தின் ஆவணங்களில் வில்லங்கம் எதுவும் உள்ளதா என்று பார்க்க வேண்டும்.

         வில்லங்கம் இருப்பது தெரிய வந்தால், கட்டுமான நிறுவனம் அதற்கு என்ன பதில் அளிக்கிறது என்பதையும் அறிய வேண்டும்.

         அவர்கள் அளிக்கும் பதில் சட்ட ரீதியான கேள்விகளுக்கு தீர்வாக இருந்தால் தொடர்ந்து அடுத்த கட்டத்துக்கு செல்லலாம்.

         கட்டுமானத் திட்டங்களைச் சார்ந்த பொதுவாக பல்வேறு விஷயங்களை விசாரிப்பது வழக்கம்.

          இதில் கூடுதலாக புதிய சில கேள்விகளை கேட்க வேண்டிய நிலை மக்களுக்கு ஏற்பட்டுள்ளது.  நீங்கள் வாங்க நினைக்கும் வீடு அமைந்துள்ள குடியிருப்பு திட்டத்துக்கான தரக் குறியீடு என்ன என்பதை விசாரித்து அறிய வேண்டும்.  இதன்பின், அத்திட்டம் அமைந்துள்ள பகுதி எந்த வகை நிலநடுக்க மண்டலத்தில் வகைப்படுத்தப்பட்டுள்ளது என்பதை விசாரிக்க வேண்டும்.

           கட்டுமானத் திட்ட அனுமதி வழங்கும் நிலையிலேயே இதை அரசுத் துறைகள் விசாரிப்பது நல்லது.

           புதிதாக கட்டப்படும் குடியிருப்பு திட்டத்துக்கு அனுமதிக்கப்பட்ட மின்சார அளவு என்ன என்பதை கேட்க வேண்டும்.  அதிலும், ஒவ்வொரு தளத்துக்கும் அனுமதிக்கப்பட்ட மின்சார அளவு என்ன என்று அறிய வேண்டும்.

          

         இந்த அனுமதிக்கப்பட்ட மின்சார அளவை பயன்படுத்தும் வகையிலான கட்டமைப்பு வசதிகள் உள்ளதா என்றும் சரி பார்ப்பது அவசியம்.  அந்த குடியிருப்பில் பொது வசதிகள் என்னென்ன செய்யப்பட உள்ளன என்பதை பட்டியலாக பெற்று அதை கட்டுமான ஒப்பந்தத்தில் சேர்க்க வேண்டும்.

           கட்டுமானப் பணிகள் முடிந்த குடியிருப்பு திட்டம் எனில், அதில், பொது வசதிகள் என்னென்ன செய்யப்பட்டுள்ளன என்பதை அறிய வேண்டும்.  இந்த வசதிகள் குழந்தைகள், பெரியவர்கள் பாதுகாப்பாக பயன்படுத்தும் வகையில் உள்ளதா என்றும் பார்க்க வேண்டும்.

            நீங்கள் வீடு வாங்கும் குடியிருப்பில், கட்டுமான நிறுவனம் என்னென்ன இயந்திரங்களை நிறுவியுள்ளது என்பதை அறிய வேண்டும்.  குறிப்பாக, லிப்ட், கண்காணிப்பு கேமிரா, கழிவு நீர் சுத்திகரிப்பு நிலையம், தண்ணீர் ஏற்றும் மோட்டார்கள் போன்ற விஷயங்களையும் விசாரிப்பது நல்லது என்கின்றனர் கட்டுமான வல்லுனர்கள்.