Investing in real estate without your own money sounds uncanny. It seems impossible but that is not true. There are a few ways by which you can invest the money.
One of the most common ways is to do it by wholesaling. 1. Wholesaling This is one of the most common ways in the investment circle. It is like finding a property which has enough to call about. You can earn a profit between the acquisition price and the after repair of the property. After searching the property and putting it under a contract the search for a cash investor should be initiated who is willing to invest in the property. The contract will then be assigned to this person before closing in. If it is some serious cash buyer he will be more than happy to be investing in the property that is under contract even after paying all the fees and the costs which makes sense from the investment point of view. This is highly preferred as the investor will never hold the property on his name and gets his amount paid in a short amount of time without putting in much of the time in the transaction. The concept of wholesaling is that you get in and out without holding the property. So eventually you gain interest in the property without owning your own money. 2. Fix and Flipping If you are heading towards a concept of fix and flipping, the project can be completed without any money from your pocket. You should be finding someone who is willing to have a joint venture. They will be the one investing all the money. Your value in return will be to find a deal, negotiate with them and close the deal. The profits and the losses should be divided equally amongst the partners. To search people for your funding, start by talking to the people whom you have influenced with your business. Other ways to find some investors is by building up some relations with the local investors and cracking a deal with them. When you are using this method with none of your money, set a goal where you get into the project with no initial out-of- pocket expenses, rehabilitate the property, sell and split up the profits. 3. Buying and holding options Buying and holding is a possible way without investing your own money. The most common way is to lease out the options and the owner financing it. One of the goal of buy and hold options is to control the properties with virtually or none of your money that is tied up and collect the passive income by renting the properties. 4. Leasing a property You can lease a property for a certain amount of time. They are based on contracts from months to years. Virtually they run without money. Once the rental agreement is over and the property is handed over and you can walk out. So practically you own a property without investing your own money. Well having a real estate without your own money is not easy but virtually you can own a land. Connect with Sairung Developers to know more about the insights of real estates.
0 Comments
Having your own residential plot is like having a dream and everyone likes to make their dreams come true. There are times when we are in a hurry to buy a place which does not match the requirements that you had thought about. In a developing city like Pune it becomes very difficult to find a residential plot. But now as people are settling on the outskirts there are plots available there too. Outskirts are the developing areas of the city.
Before you plan to buy any plot there are some important points that you need to consider before investing. Here are some of the points that you should be considering: 1. Location The location of the plot will determine the cost for it. Do not purchase a plot that has no basic amenities around it like grocery stores etc. most of the things should be within your reach. 2. Confirm the original value Go and visit the plot analyze the complete area and check on the facilities that are available over there. Have an approx estimation of the plot by consulting the real estate expert. Once you get the estimate you can negotiate with the seller. 3. Size of the plot Do not believe on the word of the seller visit the plot and then decide if the plot is really admeasuring to what the seller has told you. Evaluate the land so that you know how much space you would require to live comfortably. Other factors like the soil and topography should also be kept in mind. 4. Verification Before you get on to a decision remember to verify everything from the builder as well as the seller. Check if the land is not in legal issues. Cross check and see about the reputation of the builder which will help you in knowing the builders creditability and reliability. 5. Approvals Confirm that the plot that you are about to buy is approved by the City Development Corporation. The local body should approve it. The attested papers can be demanded by the lawyer. 6. Bills and property tax receipts To keep you away from the various tax issues confirm about them to the seller and take it along with the bills as a proof. They will act as a proof that the plot does not have any tax-related issue. 7. Researching is the key Research about all the possibilities that can tamper the development of the property process. You can find a lot of details online. You should consider all the above points and keep in mind that you should not fall into any problems while buying a residential plot. Connect with Sairung Developers for buying residential plots in and around Pune. One of the hardest things is to understand the taxes. It’s not easy for a common man to understand all of them. India has various different taxes being levied upon. One of the taxes that people do not know is the property tax. The word is not new but their rules and regulations are new to lot of people. Paying all the taxes is important. Property is considered as one of the most important source of income and hence, a tax is levied on that. By property it may include anything from buildings, flats, shops as well as lands. According to the Income Tax Act, income from the properties is regarded as one of the heads of the income. The amount of the tax is being calculated on the value of the property that is being taxed.
In the first budget of our finance minister Arun Jaitley, some changes were proposed to the income tax laws related to the capital gains from the property sale. He put a cap on the amount of tax-saving by way of investing in long-term capital gains from the property sale in the specified bonds which are also called as capital gains bonds. He also specified that the investment should be made in one residential house property located in India for availing long-term capital gains benefit. As the current income-tax rule says, a long-term capital gain on the sale of property is held for three years and attracts 20 percent tax. Exemptions can be granted only under certain conditions. Here are some changes that are proposed in the income tax laws: 1. Property The property tax in India is being levied on real estate’s which include the buildings or the lands attached to those buildings. The plots which are vacant without any adjoining building are not liable to be taxed under this head. It will be taxed as income from other sources. Following are some of the properties which are liable to be taxed under the property tax in India:
2. Calculating property tax in India The property tax in India is mostly calculated on the basis of the ‘Annual value’. The annual values for the self-occupied and let out properties can vary. 3. Annual value for the let out properties In case you are having some let out property, the annual value will be equal to the maximum of the following
There are some deductions which are allowed on the interest on the loan to build, buy or repair the property. A deduction of 30% of the net value is allowed for repair and maintenance of the properties. Knowing all the taxes is not everyone’s cup of tea. You can always refer to the internet or some tax consultants for knowing the various taxes that we are paying. Consult Sairung Developers and know more about the various taxes over real estate’s from their in house experts. One of the most challenging tasks we have is to select a place that we want to stay. We need to keep a check on it so that we know that our lifetime investments are going in the right directions and you know that the decision that you have made is the right one. When we talk about the real estate there are a lot of things that need to be assessed so that we get a positive outcome.
There are a lot of people who take lot of efforts to make sure that they can get the maximum profits out of the property that they are purchasing. This is the problem that they face related to the revenues that they expect from the property. Here are some of the factors that you should consider while developing a real estate property: 1. The Location of your propertyThe first thing that you need to keep in your mind while buying a property is the location that you want to build it. Take for instance that you want to build a commercial property, ensure that the location is accessible to the people residing in that area. It can be a challenging task if you do not know what purpose will be served by the property that is being purchased. If you know the needs and the purpose of the property then it is easy to find the best location for it. 2. Purpose of purchasing Other than the location one more thing that you need to consider is why you want to build a property. At the initial stages you may not be aware as to why do you want to buy a real estate. Many purchase land as a future investment. Considering this is not at all bad but at the end you should always have your purpose defined. 3. Rates of the propertyThe last and probably one of the most important things that you need to keep a check on are the prices of the property. This will help you in knowing the amount that is required for investing. With investment you can also get to know the return that you will get on this investment. Other than doing all these researches on your own you can also consult a good real estate developer who will guide you professionally. Connect with Sairung Developers that will help and guide you professionally for real estate investments. Pune is one of the best places to live in. It enjoys an equal status of a metro, a retired person paradise, IT and Ecommerce hub, Educational hub etc. it’s a dream to own a house here. The city of Pune has a lot of residential plots around it.
But buying a property is not an easy task. It involves a lot of paperwork. Eventually, at the end the pains and the stress are all worth it. Buying a plot and buying an apartment are altogether a different ball game. The documents required for buying a plot are different than that of buying an apartment. Every state follows a different process. Here is a checklist of the important documents that you should check before buying a new property: If you have purchased a property which is under construction, following are the documents that you need to check: 1. Land records A check should be done from your side to see that the builder who is selling you the land owns it. The land records will give us the details of all the aspects of the property. 2. Sales Deed This is document which holds the proof of the property transfer from the buyer to the seller. The registration of this document is mandatory. 3. Building approval plan This document is given by the government body. The owner of the building has to get it approved from the jurisdictional commissioner. 4. Commencement Certificate This document holds a lot of importance when you want to build a property on the land. Failing to provide this document you may have to pay penalties as the property will be treated as illegal. 5. Conversion certificate This document is a proof that the status of the land is converted from an agricultural to a non-agricultural property. 6. Khata Certificate This certificate shows account of the person owning the property and is mandate for the registration of the property. 7. Power of Attorney This document gives a person authority on behalf of the owner if he is not present physically to carry out the legal transactions. 8. Completion certificate This document proves that if any property is built on the land they have met the standards in terms of all the dimensions specified by the government. 9. Betterment Charges Receipt It is a development charge which is paid to the local government body. 10. Encumbrance Certificate It is a certificate which shows the transactions that are registered related to the property mentioned in chronological order. 11. Compounding Fee Receipt This document provides us with the information regarding the deviations in the plan that were carried out while building a property on the plot. 12. PTCL Endorsement It is known as Prevention of Transfer of Certain Lands Act (PTCL) and it is issued by the Tahsildar. It is a compulsion to hold all the above documents. There are even more such documents that are required. It is always suggested to take the help of the real estate agent as they can take care of all the documentation. Consider Sairung Developers as your partner in helping you out with these tedious tasks of purchasing a plot. We all want to live in a place that we like to call our own. But to build that dream home we need a land to build it. It may happen that we do not have finance to buy that land. You don’t need to worry on that we can always take a loan for it. Most of the banks do offer loans on plots. It can be an easy buy regardless of the terms and conditions which needs to be done before proceeding with it.
The first thing that you need to remember is never to buy an agricultural land. The land that you plan to purchase should only be used for residential purpose. Banks do not provide loan for purchasing agricultural land. Some banks even check if the land is in the municipal limits. There can be some clauses also that need to be followed. There can a lot of restrictive clauses too; so be careful to read all the documents. Let us check the difference between a home loan and a land loan. A land loan is completely different from a home loan. There are a lot of factors that we need to take a note of like tax deductions. As we have in home loans, the tax on interest is paid on land loan is not deductible, which means there is more burden on the land purchaser. The high interest rates than home loans are also an added burden. So, taking a loan for purchasing a land can be a huge hole in your pocket. If you take a loan for the construction on the site, you are eligible for tax break. Tax benefits can be claimed on both the house for construction and land loan. The tax can be deducted only in the year when the construction is completed and after the submission of the completion certification from the concerned authorities. Down payment can be an issue for the people who have taken a loan on land. Only 20% of the value needs to be arranged by the people who take home loan but, in case of land loans it may go upto 70%. For documentation and other legal verifications it is advisable to hire a lawyer who will help you to complete all the legal formalities so that you submit correct documents. If your documents are inappropriate it may lead to rejections and doing all the formalities all over again can be a tedious task. Here are some documents that you may require for getting a loan are original site ownership documents, tax receipts for taxes paid by the owner, layout drawings, receipts of the revenue, no objection certificates from the society for sale and transfer of land and a no encumbrance certificate for the land. Financing a piece of land in India is not a big issue, but the problem can be of the high interest rates. If you have the capacity and the capability of paying that you can do that too. Getting a home loan is much easier than getting a loan for the land. For a land loan you need a lot of paper work and a lot of patience. You should all meet the terms and conditions laid down by the bank. Come and meet Sairung Developers for some exclusive plots in and around Pune. We will help you with all the formalities required for a loan on the plots. |
AuthorSairung Developers, backed firmly by a sound financial base and trust, started its activities in 1979. Since its inception, the Sairung Group has spearheaded revolution in many areas like construction, development of gated communities and assured deliveries of developed farm and bungalow plots, NA plots, ensuring high returns year after year. Archives
December 2016
Categories |