Women should know about low pay duty charges and interest in real estate

Women in cities have become an important focal point for developers. Unlike the earlier scenario where they were not just considered decision makers and producers, Indian women today are much empowered and have become independent decision makers in home buying matters. Along with good jobs with fantastic growth prospects - not only in corporate India, but also in government positions in rank, women today are an important target audience for major property developers.

Today a growing number of women believe that owning physical assets like home makes them realize more than marriage at the right age.

The scenario has also changed for married women. With dual-income families as background, many women are now active financial partners with equal say in purchasing decisions.

Shortly before this there was a distinct change in family dynamics and their investment priorities, which were mainly gold and Fixed Deposits. Real estate now occupies an important position in their investment portfolio.

The government and the banking system are also going the extra mile to encourage women into standalone homework. In India, stamp duty fees for property registration are lower in some states if it is executed in the name of a woman. Delhi, UP, Rajasthan, Punjab and Haryana are with stamp duty exemption for women buyers. The exemption on stamp duty is up to 1-2% in different states.

“If the property is jointly owned, there may be additional tax benefit. Like men, women home buyers are also eligible for tax exemption up to Rs 1.5 lakh under Section 80C of the Income Tax Act on principal paid on housing loans, and home loans up to Rs 2 lakh under Section 24 per annum on interest. If a property is let out on rent, full interest is allowed on the home loan as a deduction. However, to avail this additional tax benefit on home loans, the property has to be co-owned,” according to experts.

In addition, many large banks in India pay less home loan interest to women borrowers than men. The discount may vary from 0.05% to 0.25% depending on the bank and loan amount.

Thus, women across urban India are buying properties to diversify their investment portfolios or to have multiple benefits for women, ranging from tax benefits to lower home loan interest rates by some banks and in various states Stamp fees and registration fees are also reduced.

Increasing interest from house-buyers as families stay at house

Although the residential real estate sector was expecting zero sales from the first quarter of the new fiscal year, the lockdown has surprisingly brought people closer to the desire to buy a house.

The current epidemic has had an unprecedented impact on the residential real estate market. With families spending more time in the home, organized real estate players have seen increasing interest among buyers. Potential buyers also include NRIs, who are demanding digital presentations from developers in metro cities. Weak rupee depreciation and low interest rates are also factors contributing to the decision.

With work-from-house being the new normal, even existing buyers are changing their existing bookings as they look for larger apartments. While the numbers are still not comparable to March quarter sales, large developers say there is latent demand but for this to translate into sales, the job market and economy will have to respond better.

Many developers feel that there will be not only a recovery, but also a rebound in residential. The decision to favor decision-making has accelerated due to houses being closed for two months. Noteworthy recovery may take 6-12 months as real estate is a highly suppressed category, but expect first-time house buyers and mid-segment buyers to take advantage given the experience in the last two months will be encouraged.

According to research, demand was seen in the top two cities in India in the last two years, with unsold inventory levels falling 7% in 2018 and 4% in 2019.

In the first 40 days of the lockdown, the Maharashtra government has reportedly seen the sale of only 3,806 properties, which earned the state a nominal amount in registration fees. Typically, the state government earns Rs 25,000 crore per year from the real estate sector. While many state governments have allowed online registration, developers say they expect not only a return but a demand for rebound.

As far as demand is concerned, there are some very interesting patterns. Developers and real estate companies are questioning people who have never visited the site and are responding to digital advertisements. It can be said that consumers are realizing the importance of owning a house. People have started research and are ready for minimal transactions. A strong demand revival is expected once the lockdown is lifted, provided people have a fixed job.

Although the outlook is more promising for the residential sector than retail and commercial, a visual recovery is at least two years away. Developers believe that the digital sales trend will also grow in the coming years as innovative sales and marketing solutions are being worked on and drone shoots and virtual tours are becoming more and more common.

What are the rights and duties of the buyer related to RERA?

Section 19 of the Real Estate Act states that a home buyer shall:

• Accessed to obtain information related to approved plans, layout plans as well as approved by specific authority and other such information. 
• To know the phase-wise scheduling of the project including the provisions of water, sanitation, electricity and other facilities. 
• Entered to claim possession of the apartment, plot or building. 
• At such a rate one is entitled to claim a refund of the amount paid along with the interest and may be compensated in the manner provided under the Act. 
• After handing over the physical possession of the unit, it entered for necessary documents and plans, including common areas. 
• Responsible for making the necessary payments specified in the sales agreement at the appropriate time and place.
• They will also have to pay their share of registration fees, municipal taxes, water and electricity charges, maintenance fees, land rent, and other charges.
• Essentially responsible for participating in the formation of a union or society or collaborative society.
• Responsible to pay interest as stipulated. If mutually agreed upon by promoters and allottees, the interest may be reduced.
• Take possession of the unit within two months of obtaining the occupancy certificate.
• Responsible for participating in the registration of the deed.

How to file a complaint

• Registered allottees or organizations of any voluntary consumer association under any law can approach the Real Estate Regulatory Authority or Assistant Officer to lodge a complaint.
• The fees will be determined by the authority.
• The authority may direct that specific cases or issues be heard and decided by a single bench of the chairperson or any member of the authority.
• After giving a reasonable opportunity of hearing to any person, the authority shall appoint an assistant officer to conduct an inquiry in the prescribed manner.
• The application for compensation will be dealt with expeditiously by the officer concerned. The matter will have to be disposed of within 60 days from the date of receipt of the application.