If circle Rate is more than the market value, I think the buyer has 3 options to choose from. Now, the applicability of an option varies from case to case and base. In addition, the rules vary from state to state. The following options are universal, but they should be exercised taking into account local rules and regulations. These options are presented using an example from Mr. Sanjay. Suppose he plans to buy a property with a market value of 70 lakes. The circular debit / custody invoice / Guidance Value / Floor Price / Govt Value of the property is 1 Cr. Now, Sanjay has in mind 2 questions that I mentioned above, that is, the value to be mentioned in the deed of sale and at what value stamp duty and registration fee must be paid. This offers maximum benefits from your hard work. Of course, this can be annoying for anyone who wants to refinance and access equity, or for buyers who have to make a larger deposit, because banks only give a percentage (of loan) to the bank valuation and not the market value. Also, be sure to complete any unfinished renovations. It is difficult for an expert to rejoice in a house that lacks half of its tiles or is waiting for a kitchen cabinet to be installed.
Often, valuations are only completed when needed, but if you have the option, you should consider earning a valuationr during a well-established rising market. A more formal way to put it is: “The estimated value that a buyer would pay and a seller would accept for an item in an open and competitive market.” In short, ask yourself – “What affects me to pay more or less for a particular good?” If any of these things can be changed advantageously, you will likely improve the value of the property. An owner may sell their property at a price below the circle/reference value, but stamp duty must continue to be paid on the basis of the district rate. “The proposal to grant tax cuts for incomes of up to five lakhs will help increase the buyer`s budget and can strongly boost demand for housing. The budget gives residential property buyers more disposable income, encourages them to increase their budgets for new homes, while providing a tax incentive to invest in a second home. This is expected to lead to an increase in demand in the housing market. From a real estate perspective, Colliers International India is therefore giving a 7/10 to the 2019 budget,” said Joe Verghese, Managing Director of Colliers International India. The demeaning effects of wear and tear have yet to be imposed, so that an expert evaluates your assets in their most original state. Stamp duty and registration fees are one of the main sources of revenue for the Land Government. This is a dilemma, or rather to capture 22 situations for each Land government in order to maintain the district course at its current market value, in order to prevent revenues from stamp tax and property registration from being flouted. Unfortunately, in the current scenario, the real estate sector is not healthy. Prices have been sharply corrected.
For example, a property that costs 1.8 Cr in Gurgaon is now available for 1.4 Cr. The circle of this property is 1.75 Cr. According to the fundamental logic, the rounding course of a property should reflect the market value of the property. But that`s not always true, because I haven`t come across a single case where the state government lowered the Circle rates to reflect true market value.