Latest Guide to Stamp Duty in Mumbai

Real Estate Scenario in Nashik

The joy of buying a new home is priceless, especially with skyrocketing prices and the demand for real estate increasing by the day. However, as exhilarating as the purchase is, the process is equally daunting. Right from own payments, loans, registration agreements, there are several factors to consider when purchasing a property. Once all of these are swept under the rug and you finally get possession, there stands the requirement for Stamp Duty and Registration under your name.

Don’t get all flustered, we’re going to cover the basics you need to know about charges for Stamp Duty and Registration along with steps on online payment.

The Maharashtra Stamp Act & Stamp Duty in Mumbai

Stamp Duty registration is a tax levied by state governments to property holders inclusive of commercial and residential spaces. The Maharashtra Stamp Duty act passed in 1958 makes it mandatory for all property holders to register their names in local municipal records for legal possession of the property. The current stamp duty on property is charged at a rate of 5% in Mumbai and 6% in the rest of the State. However, W.E.F. March 2021, a special rebate of 1% applies to female owners. Hence, any property transferred in a woman’s name is eligible to pay only 4% stamp duty. This does not apply to joint owners of the property.

Registration charges for properties in Maharashtra are charged at 1% if the value is below Rs. 30 lakhs or it’s charged at Rs. 30,000 for properties exceeding Rs. 30 lakhs.

There are a few factors that also determine payment of Stamp Duty:

  • Commercial and residential property types have different stamp duty rates
  • Market value and area of the property are considered to calculate stamp duty
  • Urban areas are charged a higher stamp duty whereas rural properties are charged lower rates.

Payment of Stamp Duty in Mumbai

To make the process easier for homeowners, payment and registration for Stamp Duty can be done through an online process. With a few simple clicks, one can easily pay through the e-stamp facility.

To make your e-payment, follow the below steps:

  • Visit the Maharashtra Stamp and Registration Department website.
  • The website allows you to either register on the website and pays or even pay without registration. Select ‘Citizen’ under ‘Type of User’, and then click on ‘Make Payment to Register your Document’. The website allows you two options, either you pay only stamp duty or stamp duty and registration fees together.
  • Fill in the necessary details requested such as District, kind of document, property details, etc.
  • Once you have filled in all required details, choose your payment gateway to make the payment online or across any banks via cash/cheque.

Voila! It’s all done! With the simplified online procedure, the government has made the payment of Stamp Duty and Registration hassle-free. A buyer can also request a refund on Stamp Duty under special circumstances such as incomplete documents, unsigned papers, etc.

Source: https://gras.mahakosh.gov.in/igr/frmIndex.php

Your dream home is just a Home-Loan away!

A roof over one’s head is a human being’s necessity. Getting a spacious, safe, equipped and accessible home is a dream. The best way to fulfill this dream, for many, is through a home loan. However, to be eligible for a home loan, one must meet certain requirements.

The eligibility criteria for a home loan is as follows:

  • Age:
    A person availing home loan should be within the age limit from 18-70 years. However, some banks and; institutions offer home loans to salaried, self-employed professionals and businessmen above the age of 23 only.
  • Net-worth:
    You can qualify for a home loan if your monthly income is more than Rs. 25,000. Those within the income bracket of Rs. 25,000-Rs. 40,000 can avail a home loan if their fixed obligation (Rent, EMI) does not exceed 50% of their income. Those with a monthly salary of over Rs. 40,000 can avail a home loan if their fixed obligation does not exceed 65% of their income.
  • CIBIL score
    A good CIBIL score of 650 is required. If you have a CIBIL score lower than 650, you still stand a chance to avail of a home loan by paying a higher interest rate, at a higher margin.
  • Company and Employment history
    You should have a stable income history and/or job continuity of a minimum of 3-5 years. The sector in which you work should not have been blacklisted by the bank. Additionally, some professions such as lawyers, beauticians, police personnel, builders, etc. may be considered negative by some banks.
  • Co-applicants
    Having a co-applicant increase your chances to avail of a home loan, it might
    also fetch you a higher loan amount. The co-applicant should have a share in the property. The list of co-applicants allowed is spouses, parents, siblings, and children.
  • Loan-to-value (LTV) Ratio
    Lenders calculate the LTV ratio using the below formula:
    LTV Ratio (%) is equal to Amount Borrowed divided by Property Value multiplied by 100.
    For example, if you wish to buy a house worth Rs.1 Crore and the LTV ratio of your
    the bank is 70%, then the maximum amount of loan that you can avail of is Rs. 70 lakh.
    The RBI has issued the below guidelines for the LTV ratio:
    For loan amounts of Rs. 30 lakhs and below, the LTV ratio for the loan can go up to 90% of the property, and for loan amounts above Rs. 30 lakhs, the LTV ratio can go up to 80% of the property value. For loan amounts above Rs. 75 lakh, the LTV ratio can go up to 75%. If the LTV ratio is 90%, at least 10% of the property value will have to be paid from your pocket and the rest of the amount can be funded through a home loan.
  • Property Approval and Valuation
    The property against which one wishes to avail a home loan should be legally approved and constructed by a reputed builder. For home loans of higher ticket size (Rs. 1 Crore & above), housing loan lenders prefer getting valuation details from independent valuers.Once a person meets all home loan eligibility requirements, they can easily make
    their dreams come true. It also comes with a series of benefits, some of them include:
    • Investing in Real-Estate is an appreciating asset:
      Property prices in India are slated to appreciate in the longer run. This makes home buying, one of the smartest forms of investment.
    • Home loans are a tax savior:
      As mentioned in the Income Tax Act – Section 24, a maximum deduction of Rs. 2 lakhs can be claimed by homeowners on their home loan interest for a self-occupied property.
      In case the property has been rented out, the tax exemption is Rs. 2 lakhs or actual interest paid by the taxpayer; whichever is lesser.
      Section 80C also gives the provision of a deduction of Rs. 1,50,000 on the Principal amount repaid.
    • Home loans improve credit score:
      Paying off your home loan EMIs on time is a great way to improve your credit score. If you make all your repayments on time and have a good credit score, availing of other loans such as a car or student loan becomes easy.
    • Home loans are a cost-effective way of funding a long-term asset:
      Home loans have the cheapest rate of interest in India as compared to other loans. It’s easy to get a home loan since it is secured against an asset.
    • Pradhan Mantri Awas Yojana (PMAY):
      A Credit Linked Subsidy Scheme (PMAY-CLSS) enables home loan borrowers purchasing or constructing their first pucca house to get subsidies credited into their
      loan account of up to 2.67 lakh.
    • Repay with ease :
      Home Loans let you enjoy longer repayment tenures ranging from 10 years to 30 years. Although, If you can pay higher EMIs, we’d suggest you opt for a shorter tenure Summing it up, you can now easily check your home loan eligibility with the help of a home loan eligibility calculator. More so, in today’s times when everything is available online, you can now avail of a home loan from the comfort of your home,
      with just a click. Happy home buying!

Source : https://www.bajajfinserv.in/home-loan

Trends in Real Estate

Modern Times = Modern Homes

How pandemic has changed the face of the real estate market

The ongoing pandemic has transformed the way real estate is viewed. The once widely-popular corporate spaces now sit empty, while the need for residential spaces have shot up. The reason is enterprises making work-from-home a new way of working. This has pushed the demand for spacious nuclear homes in urban areas with all of your essential amenities, making moving in easy for a working couple.

Embracing and adapting to this change, the real estate world is transforming in many ways:

  1. Small homes, with big hearts

Small homes that are easy to maintain have cropped up in large numbers across cities, and are affordable too. This is due to the rise in the demand for residential properties that made realtors create a new market for small, affordable spaces. The furniture industry also jumped on the bandwagon by creating compact, multi-purpose furniture pieces.

  1. Easy living with smart, equipped homes

Moving into furnished homes, equipped with essentials such as air conditioners, refrigerators & kitchenettes, etc. is essential for today’s homebuyers. This is complemented with smart homes where everything including air conditioners, dishwashers, lights, fans are voice-controlled at the push of a button even when one is away from home.

  1. Fuss-free furniture

Gone are those times where one would move into homes months after purchasing. For today’s fast-moving generation, everything is now or never. This has given rise to a new segment of ready-made, build-it-yourself furniture that is affordable and can be easily modified and installed, without assistance.

  1. Accommodating a millennial lifestyle

The technology-led millennial generation comprises the largest population. They have a heavy disposable income and are today’s homebuyers. Additionally, today’s generation is eco-conscious, hence they look for sustainable homes.

To grow & stay relevant, the realtors and the real estate market should ideally be revolving around the needs of millennials. The key for which is marrying technology, sustainability, and affordability, while being quickly adaptable.