Gharonda Builders Group Highlights The Tips For Smart Investment In Second Home

The desire to own a dream-like home is common to all. Be it your first or the second one, you always wish your house to have the best of everything. Despite the stagnancy in the real estate sector, the demand for second homes is mounting with each passing day. Gharonda Builders, one of the leading real estate entities highlights that there are number potential homebuyers who are looking forward to buy their second homes.

Whether it is for residential, commercial or investment purpose, it is important to consider certain factors before investing your hard-earned resources in a house. Gharonda Builders Group brings forth the most important tips for a smart investment in your second home.

A comprehensive research of the property

It is recommended to undergo a complete research of the house you’re planning to buy. If you buy it just on the basis of your whims, you may end up making a wrong and hurried choice.

Evaluate your long term goals and needs

It is important to ensure that you make your decision of investing in a house after the evaluation of your needs and requirement. For example- if you’re looking for a second home that would be your retirement spot; the factors like health care services in the area should be considered before buying it.

 

Get to know the area before buying

A complete knowledge of the area and vicinity of your house is one of the most important factors to be considered before buying it. You can talk to locals to get the complete information about the area.

Take the help of a local real estate agent

A local agent can be of great help when it comes to buying a vacation home outside your area.

Decide the type of home which suits you the best

It is one of the most crucial factors to be considered before buying a house. The purpose of buying the house should decide the type which is the most suitable for you.

With these factors in mind, you are likely to make the best choice of a vacation house which will provide you with true value for the money spent. 

Leasehold Vs Freehold What's The Difference

Fundamentally, there are two major different of authorized ownership: freehold and leasehold. Although,realty developers often Hide the facts; the big difference can be between a home that is worth buying and one that isn’t. Many buyers who don’t rehash these terms before buying a home end up regretting it – getting into a wrong deal can be massively expensive.

What is freehold?
If you buy a freehold property, it means that you own a building and land, for eternity. While registry, your name would be mentioned as “freeholder”, owning the “title absolute”. Freehold is practically the preferred option: you can’t go wrong with it.
You don’t have to pay annual ground rent.
You are solely responsible for maintaining the structure of the building – the roof and the outer walls The entire houses are generally sold freehold.

What is leasehold?
With the leasehold property, you just have a lease from the freeholder (landlord) to use the property for a specific period. The leases are typically long term – often 90 years or 120 years but as high as 999 years – but can be less than 40 years.
A leaseholder signs a contract with the freeholder, which includes the legal rights and responsibilities of both the sides.
Usually, the freeholder is responsible for maintaining the common parts of the building, for example the entrance and staircase, along with the outer walls and roof.
Leaseholders are liable to pay the annual service charges, maintenance fees, and their share of the property insurance.
 Leaseholders have to take permission for doing any major renovations in the property.
If leaseholders don’t accomplish the terms of the lease – such as, by not paying the rent – then the lease can become forfeit.

Gharonda Builders & Developers can provide guidance on extending your lease or buying the freehold flat of your own.

Know How to Avail Tax Benefits on your Property

In India property is deemed as a source of income. Thus tax is imposed on property. Gharonda Builders have pointed out few factors that are considered during tax evaluation in India.

Property taxes differ from state to state. Different civic bodies bring about different methods to calculate tax. However, the general overview of tax calculations remains the similar. 

Assessment of the property is first carried out by determining:

-       Location

-       Occupancy status (whether it’s rented out or self-occupied)

-       Amenities provided (rainwater harvesting, car park, store, etc.)

-       Type of property (commercial, residential or land)

-       Type and the year of construction.

-       Carpeted square area and floor space index and of the property.

After determining the above parameters, civic agency can use a formula it deems fit to calculate tax. Different formulae are used by different agencies.

Ways to minimize tax on property

1.   Research neighboring properties

Information about your property is typically present in the local database. What people don’t realize is that information about other properties is also accessible. Evaluate taxes on houses that are comparable to yours. You can end up finding inconsistencies that could lower your taxes.

2.   Reinvest in another property

 If you want to save tax on the capital gained from selling a property, invest all the money in another property. This can happen only in case of a residential property and not a commercial one.

3.   Know the tax rules

Without knowing tax rules of your city, you cannot figure out if you’re missing a chance to avail tax benefits on your property. A good real estate agent or company can help you out with the nitty-gritty of property tax rules.

Real estate is a complicated world, you cannot be aware of everything that matters. Contact property experts, Gharonda Builders and Developers, for free consultation and advice regarding your real estate issues.