5 Tips for Selling Your Property at the Best Price By: Unknown No comments

Since the last few years sellers of property are finding it difficult to get appropriate price for their property on account of the real estate market being very sluggish. Moreover selling a house is not easy due to falling prices and rising inventories. Despite these negative factors, you can still get a fair price for your property if you take care of the following points:

Price Correctly

The first and foremost thing before selling a property is to price it correctly. The right price will definitely attract more buyers as cost is the main attraction as well as a big differentiator for the buyer. Both, under pricing and over pricing will be detrimental to the sale of your property. While under pricing will lower returns, while over pricing will not find buyers, especially when the market sentiment is not very favourable.

Hence, arriving at the correct price of your property will require a lot of effort in the form of doing surveys of market as well as similar properties on sale. For selling your house quickly, you can give a small discount by keeping the asking price lower than what others are quoting. This will attract more buyers.

Repair the House

The adage ‘First Impression is the last impression’ has to be taken care of as it holds good when you want to sell your property. A buyer generally gets attracted or turned away on seeing the property for the first time. Hence, a fresh coat of paint, clean surroundings, and a tidy atmosphere add immense value to your property. Minor repairs like fixing leaking faucets, broken windows, damaged stairs and chipped-off plaster can have a positive impact.

Deploy a Broker

As most of the owners are busy now-a-days, it is advisable to hire a broker who can show your property to prospective clients as well as explain its positive factors. Besides saving your time, the broker will also help you in negotiations and paper work. But before hiring a broker, it is imperative to do his thorough background check  as well as check his reputation. Moreover his fees should also be decided in advance.

Advertise Effectively

You should spread word amongst your friends, relatives and well wishers that you are looking for a genuine buyer for your property. Listing on various housing portals is also a mandatory exercise in today’s online environment. While listing on portals, do upload photographs of the property from various angles, to give a fair idea of the property to the prospective buyers. Also social media is also an effective tool for spreading the information as well as advertising due to its enormous reach. Another important thing is to give proper contact details on the real estate portals on which the prospect gets appropriate replies to his queries.

Keep Documents Handy

All legal documents and other papers relating to the property on sale should be kept handy with the seller to make the deal close faster. Apart from the sale documents, one should keep proof of prior purchases, property tax receipts and major installations in the house.

Keeping the above 5 tips in mind before selling any property, should in all probability, result in getting a good deal of genuine price, that too quite fast.

How GST will impact the Real Estate Sector By: Unknown No comments

This Independence Day the citizens of India have a got a gift in the form of unanimous approval from both the houses of parliament of the long awaited GST (Goods and Service Tax). The GST, once applicable, would make the tax process transparent as it will also reduce double taxation on many items. The Government has set a deadline of April 2017 for its roll out. Let’s see how the GST would impact the real estate sector in India.

The real estate industry is an important sector of our economy as it contributes about 7.8% to India’s GDP and is the second-largest employment generator after the IT industry. The implementation of GST is expected to solve many of the challenges faced by the real estate sector and help in ushering in transparency needed to pull out the sector from the problems it is facing since the past few years.

Presently, a buyer of property has to pay Service Tax, VAT in some states as well Stamp Duty. The Service Tax is collected by the developer and deposited with the Central Government. If you are purchasing an under-construction property, you will have to pay additional VAT (Value Added Tax) in some states such as Karnataka, Haryana and Maharashtra. Developers charge this value added tax, and deposit it with state government. Also, Stamp Duty is charged by state government, again at varying rates, for registration of sale agreement for real estate transactions.

Moreover, there are also various elements of non-creditable tax costs, like excise duty, customs duty, CST, entry tax, etc paid by the developer on his procurement side, which add to the cost of units upto anywhere between 22%-25% of its price.  The proposed GST should replace these multiple taxes with a single tax and should also ensure smooth flow of credits through the chain.

Also, under GST developers would see lesser burden of tax on input items like cement, and steel, as tax credits would be available for set off at various stages. This can lead to lower construction costs for developers across all asset classes, which could likely be passed on to property buyers. Hence, it is widely expected that GST should reduce the construction cost in the hands of the developer

However, the direct impact of GST on real estate, in terms of tax outflow for developers and consumers, will depend on the final GST rate. But one thing is certain in that the cumbersome procedures involved in collecting and depositing various taxes will be done away with and the taxation part will become highly transparent, thus helping the builders and buyers alike.