Some tips on property buying and investment

Here are some tips that can help you invest in a hassle-free manner.
1. Before planning to make an investment in a home, think for a moment and consider things like size of your family, the age of all family members, current income-tax and wealth-tax position and, finally the impact of the proposed investment so far as income-tax and wealth tax is concerned on different family members. Finally, then decide where to invest and in whose name.
2. One can always purchase property in the names of two or more family members. If you are considering a joint purchase of property, make sure that the investment by the co-owners is in proportion with their ownership in the property.
3. Taking up a home loan for investment in real estate is a good choice, especially for those who are self-occupied house property
4. If an employee receives house rent allowance, he can always enjoy tax benefit out of his house rent allowance payment received by him if he were to make payment on account of rent to his wife or any other member of the family.
5. It is always advisable from the point of view of tax planning that each person owns just one residential house property only. One residential house property is completely exempt from wealth tax without any limit. Hence, if you are thinking to buy many residential properties for you family, it is reasonable to do so in the names of those family members who do not own any kind of property.
6. If a person possesses more than one residential property but it is let out for more than 300 days in a year, such a kind of property is completely exempt from wealth tax.
7. If you are planning to make investment in the real estate sector specifically from the perspective of safety and security of your daughter in the years to come, it is definitely recommended that you should invest in the sector not in the name of your daughter but in the name of a person who is a100 % specific beneficiary trust of your daughter.
8. For rental income received from any type of residential, commercial or industrial property, a standard deduction is permissible in respect of repairs, etc., which is equal to 30% of the property’s annual value. Such a deduction is allowed to all categories of tax payers whether or not they spend money on repairs. This tax deduction is very significant as it reduces the income-tax payment burden to the extent of 30% on your rental income.
9. There is no gift tax in making gift of real estate. Hence, you can gift your properties to stipulated relatives without any upper limit. However, one has to keep in mind that all immovable properties require compulsory registration to make the gift complete.
These were the tips on how to make a hassle-free investment. Now, if you are relocating and looking for a property to buy, following are the ways to go about it:

A real estate agent can be of a great help when looking for property in India to buy, because he has a useful experience of the property market. However, you can still find property without an agent.

1. Go online: You will find a lot of information related to property on interne. There are many reputable property portals with millions of property listings on display. Each listing will provide you details like the address, sq ft, number of rooms and pictures. Some listing will also have selling price in them. All this information is very useful and you can browse through lakhs of properties in your chosen area without actually visiting these places manually. Choose the kind of places where you’d like to buy a property online and arrange appointments with the owners or agents for viewing.

2. Do target foreclosure deals: Always make sure that you attend any foreclosure event in your local area to look for good bargains and deals. Those people are usually eager to sell off their property as soon as possible. You never know, maybe you can find your ideal house there.

3. Read the classified section in the newspaper regularly: As we all know, newspaper is one of the most common channels used by people to list their properties. However, the only disadvantage that newspapers have is that there is very limited space available and you will not have the comfort to view pictures of the properties beforehand.

In whatever way you are buying a property, just make sure that you negotiate and get the best deals for your property. So, investment and purchase of a property is not all that difficult as it seems.

Sukhpreet Kaur writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information. At 99 acres, you can advertise a property in India , search for a property, browse through commercial property and residential property .