Get ready for sale of Property in Mumbai

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.

Table of Content

Builder in Mumbai Godrej Properties ties up with Taj to build luxury hotel

Know Top 3 Locations to Invest in Western Mumbai’s Real Estate Market

Explore the Best Projects in Mumbai

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).

These are few points that you may consider while buying Property in Mumbai.