Tips To Conduct Background Check Of Landlord

October 14, 2019 By Bajaj Investors 

Every residential structure is not just a property but it is a home for most of us. However, the job opportunities today push many professionals to live away from home and thus the person turns into a tenant. This scenario begins with the search for a rental property and thus we let you know the basic tips to conduct a background check of the landlord. So, read this entire post and safeguard yourself from frauds who are likely to be a problem for you.

1. Enquire from Neighbours

At the time of site visit, try to have small conversations with the neighbours and this must include the families living nearby, the shopkeepers of the locality and do not forget to have a detailed conversation about things likes how many people are there in his/her family, how often do they socialize, are they soft-spoken and more. All this gives you a clear understanding of the family and this is important as the landlord should neither be an introvert or too friendly.

2. Ownership Check

Pay a visit to the local authority office and figure out if the person is the original property owner. This is an important tip to check the background of a landlord as you must not get caught in a foul play as it is a threat to your security.

3. Check Criminal Record

As a tenant, you must know if the landlord is involved in any criminal activity or not. Also, it is your responsibility to check for the criminal record of the person as he/she is likely to be involved in any heinous crime in the future also and this is not the right thing socially and personally also. So, do check for the character check of the landlord before finalizing a rental property.

4. Ask for Details

Background check is of utmost importance in case of renting a home and hence you must ask a few questions to the landlord. This includes basic points like:

• Where does the landlord stay?
• Who will bear the maintenance cost?
• Is any tenant vacating the property?
• Are the visitors allowed to stay?
• If he/she has a problem with late night outing or entry?
• Do you need to pay parking charges?
• Is the pet allowed?

Conclusion:

The motive behind doing a background check is similar for the tenant and landlord as the main purpose is to figure out that the person residing in the property is not a threat to the society and thus it is essential to know if the landlord is involved in any wrong activities or not.

Real Estate basics: What is Long Term Capital Gain ?

Posted on 05 Oct 2019 By Bajaj Investors




Real estate basics: What is Long Term Capital Gain?

What is a ‘capital gain’ when it comes to real estate and what are the tax implications of long-term capital gains for a property owner?

We explain

Capital gain refers to the profit that one earns through the sale of a capital asset, such as real estate, or even stocks or bonds. It is the difference between the selling price of the property and its purchase price. Depending on the period for which the property was held, the capital gain can be either a long-term capital gain or a short-term capital gain.

The gains arising from the sale of a property that has been held by the assessee for more than a specified period of time, is termed as long-term capital gains (LTCG). In the Union Budget 2017-18, the finance minister proposed to reduce the tenure for LTCG from three years to two years. With this, any immovable property that is transferred after April 1, 2017, will be treated as long-term, if it has been held for more than 24 months. This move is expected to be especially beneficial to property investors, who are looking for a quick exit option to switch their investments or to book profits.

How is long-term capital gains computed?

Like any other asset, real estate has become a powerful investment tool for those who want to buy and sell, with the aim of gaining from a property’s capital appreciation. To calculate the LTCG, from the sale price of the property, one must deduct the cost of acquisition, the money spent on improving the property (both adjusted for inflation, called ‘indexation’) and the transfer cost. This calculation can be represented by the formula below:

Long-term capital gain = Sale price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer)

Indexed cost = Cost incurred x (CII of year of transfer / CII of year of acquisition or expenditure)

Where CII is the Cost Inflation Index specified by the Income Tax Department.

Tax on long-term capital gains

Any immovable property held for more than two years, is treated as long-term and the profit on such sale is taxed at 20 per cent, plus cess and surcharge. However, a taxpayer can claim exemption from long-term capital gains tax, under certain conditions:

Section 54 exempts LTCG tax, arising on the sale of a residential house, if the indexed capital gains are invested in the purchase or construction of another residential house, within the specified period.

Section 54F exempts LTCG tax, arising on the sale of any asset other than a residential house, if the net sale consideration is invested for the purchase/construction of a house, within a specified time period and subject to fulfilment of certain other conditions.

Section 54EC allows an exemption of up to Rs 50 lakhs from LTCG tax, if the indexed capital gains are invested in government-notified bonds, within six months.

With respect to investing capital gains in the purchase of a new house, if, till the date of filing one’s income tax return, the gains are not utilised to purchase or construct another house, then, one must deposit the unutilised amount in a Capital Gains Deposit Account in any public sector bank. The new house can be purchased or constructed, by withdrawing the amount from this account, within the specified time limit.

Government approves construction of 1.23 lakh houses under PMAY-U

Posted On Oct 03,2019 By Bajaj Investors

The government has approved the construction of 1.23 lakh houses under the Pradhan Mantri Awas Yojana (Urban), taking the total number of houses sanctioned under the scheme to over 90 lakh, a statement said on Thursday.

The approval was given by the Central Sanctioning and Monitoring Committee (CSMC) on Wednesday evening.

"The CSMC, headed by Union housing and urban affairs secretary Durga Shanker Mishra, approved 630 proposals from participating states for construction of 1.23 lakh houses with an overall investment of Rs 4,988 crore," it stated.

For West Bengal, approval was given for 27,746 houses, while Tamil Nadu got approval for construction of 26,709 houses under the PMAY (U), followed by Gujarat (20,903), Punjab (10,332), Chhattisgarh (10,079), Jharkhand (8,674), Madhya Pradesh (8,314), Karnataka (5,021), Rajasthan (2,822) and Uttarkhand (2,501).

With this approval, over 90 lakh houses have so far been sanctioned against the target of 1.12 crore by 2022 under PMAY (Urban), a flagship programme of the Modi government.

"So far, an overall investment of Rs 5.54 lakh crore has been approved which includes Rs 3.01 lakh crore from the central and state governments while Rs 2.53 lakh crore as the private investment," the ministry said in the statement.

Around 53.5 lakh houses are so far grounded for construction, it stated. Under PMAY (Urban), the government provides financial assistance to beneficiaries.

Chandigarh real estate stretching boundaries Zirakpur Mohali New Chandigarh

Bajaj Investors


Being lived in small town, I always dreamt to live in the place which could be beautiful, clean, endowed with opportunities & more importantly development oriented.Chandigarh, Which is elegant, spotlessly clean, Job oriented and it seems like finally i found out the beautiful smart city . 'Chandigarh' the neighbour of Himachal Pradesh, Jammu & Kashmir, Punjab, Haryana,Delhi & Uttarakhand.Chandigarh itself is a big city, but Interestingly, Now, In contemporary phase Chandigarh stretched its boundaries, New chandigarh, Mohali & Zirakpur are being developed as Chandigarh.High Rise Residential, Commercial & Industrial Development have been established in these TRI-CITY. In the developing phase of streached Chandigarh, I feel so blessed to being the spectator of the developing phase of the fore sure prominent Cities and for me this is a historic phase so indeed I would definitely narrate the developing stories of chandigarh  to next generation. NEW CHANDIGARH, MOHALI, ZIRAKPUR are cities of  stretched chandigarh. Schools, Education institutes, Entertainment points and Medical Facilities all are found in these cities so that no need to go chandigarh for particular reason. Govt and Private players are creating infrastructure &  provide Facilities to deep end.High rise commercial and residential are giant proof of developing cities . India's Top hospitals presence gives big relief sigh to medical related concern. Construction is the core element of infrastructure and Real Estate.Developing Industrial hubs are capable to provide job opportunities and at the same time Real Estate players has been staring in high rise infrastructure for long ago to provide best and amenities enabled. However, Spending time in our town always boosting energy and drawn out positive energy aura behind us as it keeps us away from hustle bustle life to simple living.We all would be definitely attached to our small towns as our family, ancestors, belongings are here.More importantly we spend our precious childhood moments in our birth place, but i dont know why chandigarh seems like my place.