What is real estate? How is it different from the estate of agriculture? Why cities real estate and agriculture lands are governed by different laws in India? Do you know that the declared value of the property is 20-25% of market rates in India? This is to avoid heavy tax on the purchase / sale of real estate in India. Nevertheless, real estate has proven to be the best investment in India. Real Lands in the cities and agricultural lands are governed by different laws and the conversion of farmland to real Lands is a long process.. Investment in property for rent is considered bad investment. Rent Act is in favor of the tenant and it is not easy to obtain a rent increase, despite inflation. However, ownership has proven to be the best investment in India.
Property investment has a different interpretation under the Indian Act. What do you mean real estate in India? Real estate is a piece of commercial property in the area plan in cities governed by the Municipal Board, including the floor beneath him, and all buildings or structures. There are other areas that are governed by agriculture or forest acts. The property may include industry and / or residential properties, and are generally held by the person or company registered or trust.
Lands of agriculture or forest is governed by different law. In general, all the lands of the village, including his house is not considered real estate in India and almost all properties developed or under development in cities are regarded as immovable property in India. The property is given on rent and the law favors the tenant. It is not easy to get the property released without the consent of the tenant or to obtain a rent increase. Thus, investment in property to rent is a losing proposition.
Why real estate has proven to be the best investment in India? Despite the many contentious issues and trade is limited to the rent, the value of any investment in real lands is always better than its demand always exceeds supply. Lands in India is limited supply and investment covers inflation. India is a country of great population of 1.2 billion and the population has increased by 20 million people annually. Thus, the demand for property continues to increase, particularly in urban areas. Again India continues to have inflation and the real property are not affected by it. Over 80% of the population lives in villages and only 20% live in cities that are considered real property. India being a developing country, the village’s population continues to move to the cities. This makes the availability of real lands in India as more limited.
To set up an industry or an office in India, the major cost factor is the property purchased rightly or on rental basis. If you want to secure investment in India with assured returns in the form of satisfaction, investing in properties that are being developed in the near future is good. Another option is to make investments in farm property adjacent to a city somewhere that must be converted to real estate in the near future. This farm can be rented for a faster return on investment real estate.
Here, the right to information must be verified before proceeding with investments in real estate investment.
1. Check the ownership documents of property to the authority of official registration.
2. Check the ownership documents to ensure that it is not rented.
3. Check the property is not purchased under government procurement of essential services and ensure that it is not faced with litigation.
4. After recording his purchase with the registering authority for a transfer registered in your favor in the records of the municipal committee.
5. Before choosing a city to buy a property, verifying that you or your company are eligible to do so. In certain state of India, a citizen of India is not allowed to purchase real estate. In some cases, individuals or nations with another company are not allowed to buy property in India.