WITH THE RESIDENTAL PROPERTY MARKETS RENTEL, THE TIME IS HUST RIGHT FOR NRIs TO STIRIKE A DEAL -bijoux perles eau douce

WITH THE RESIDENTAL PROPERTY MARKETS RENTEL, THE TIME IS HUST RIGHT FOR NRIs TO STIRIKE A DEAL By: zameen 01

After a rollercoaster ride, the residential property market has stabilized now and a number of developers are gearing up to launch new housing project. Developers are gaining confidence and pricing the products in a realistic manner. Realty funds are coming back to identify strategic partners for investments in residential project.
With the corporate gearing up to expand operations,
commercial space getting absorbed at frequent intervals unlike earlier. For homebuyers, the time is just right to strike bargain deals.
For NRIs who have been waiting in the wings, the situation is just appropriate to enter the marker. Home loan rates are competitive and linked to base rates after the initial period of three years. There are banks who have waived processing and documentation charges.
As the market is becoming more competitive with the entry of a number of private housing finance companies, self employed people are in for a bonanza with flexible lending norms even though at a marginally higher lending rate.
Apartment prices are firming up in some areas. With the widening of the Whitefield Road and improved connectivity from ITPL, people are shifting towards the area. This has led to a marginal hike in property prices, according to market sources. Residential projects in the vicinity.
Yet another good development is the arrangement between developers and housing finance companies to waive pre-EMI interest charges on behalf of the buyer. As result, homebuyers need not pay interest to the lending institution till the occupation of the apartment. A significant factor is that housing costs are continuously rising with the increase in material and labour costs.
PROPERY MANAGEMENT SERVICES
Another significant development is the proliferation of property management service companies to service the retail clients in the real estate sector. This has been a long-felt need among NRIs have set up shop in Bangalore and are expanding to other cities as well.
TAX ADVANTAGE
There are inherent tax advantages for NRIs while investing in real estate. Besides income tax and wealth tax exemption for one self-occupied house, residential units if leased for minimum period of 300 days in a calendar year are exempt from wealth tax. The benefit of cost inflation index is available to a NRI for the purpose of computation of taxable long-term capital gains.
If a NRI is interested in selling a residential property, whether one or more, be will be eligible to get 100 percent exemption n respect of long term capital gains. The amount of long-term capital gains should be invested in the purchase of another residential property in advance within one year of the date of sale of the first house or within two years after the date of the sale.
If a NRI is interested in the construction of another residential property, the net taxable long term capital gains should be invested within three years in the construction of the new residential property.
If a NRI is not the owner of more than one residential property and has derived long term capital gains on the sale of any other asset like shares, debentures, commercial property, jewellery, urban land etc, he will get 100 percent tax exemption in respect of long term capital gains made on the sale of such capital assets provided he invests the proceeds in a residential property.
REPATRIATION
Moreover, repatriation of original investments made in foreign exchange is permitted up to two residential properties after a lock-in period of three years. This is apart from the rental repatriation and sale proceeds of inherited properties within the overall limit up to one million dollars every year.
Courtesy:-Times Property 02-10-2010
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