It is always true that experts and buyers always share
precautionary measures and highlight the need to be tactful before any
home-purchase? Indeed, they do. However, it's equally essential to harbour an identical
strategy during a home-sale too.
Buying and selling are two important aspects of a home
transaction. The moment a person buys a home, it requires a lot of planning and
due-diligence. Similarly, selling a home also requires planning, analysis and
understanding of the prevailing market situation to get the right price.
The head of residential services, India, CBRE South shared
his view on the topic. According to him selling your home is a complicated
activity as it requires the vendor to be up to-date about the different laws,
taxes and paperwork. If it is a new house or an old one, the owner should work
towards ensuring that the house with the best possible state. While other
experts suggest that finding a buyer for the property can be a tedious activity
and hence, one needs to 'market' it through various modes of communication.
Mumbai vs other towns
Experts believe residential real estate in Mumbai is considered to be very costly. The various
guidelines that govern the prices in other cities do not usually affect
properties here. So, while a tiny home in another city may well not be too
expensive, it might command a much higher price in Mumbai. Since real estate is
at a premium here, one should understand the market first.
Another aspect that can affect selling properties in several
metropolitan areas across various states could have various challenges like:
The market scenario in the city or the state where the selling of the home is
going on. The mode of transaction that is followed; Legal guidelines that are
applicable in this particular city and state.
Mumbai's property
market predominantly involves apartments and in the case of smaller cities
towns, these would consist of specific tenements.
Tax implications
When you are selling a house, the initial thing that should
be considered is the tax factor, since, under the Income Tax Act, a property is
considered as a property. There are two categories to consider: Short capital
gain and long term capital gain. Long term capital gain tax (20 per cent on the
gain after indexation) available for purchase of an immovable property, can be
applied if the property is held for two years before selling it (here, one has
the advantage about the indexation profit for which the base year is proposed
to be changed from 81 to 2001). If the property is sold within two years, the
revenue is {referred to as short capital gain (taxed at the respective slab
rate of the individual).
