Educate yourself with Property and RealEstate tips

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ANCESTRAL PROPERTY, HINDU SUCCESSION ACT AND INHERITANCE

Inheritance of properties by legal heirs are governed by the Hindu Succession Act, 1956. The act lays down a uniform and comprehensive system of inheritance and succession into one act. 

The Hindu Succession Act is applicable to Hindus, Jains, Buddhists and Sikhs. It takes into consideration that the deceased shall have a different class of heirs and such different classes shall have different stakes over the property. The classes are –

THE CLASS I HEIR –

 1. Widow               4. Mother of the intestate

 2. Son                     5. Heirs of pre-deceased children of the interstate 

 3. Daughter 

THE CLASS II HEIR –

1. Father                            4. Brother 

2. Grand Parents              5. Sister 

3. Grand Children             6. Other relatives 

In case where a Hindu male passes away the following shall take place –

1. The class I heirs get equal shares

2. In case of no class I heirs, it shall be equally divided amongst class II heirs.

3. In case of no Class I or Class II heirs the property shall be divided among the Agnates (blood relation to the deceased through males) and then the cognates (blood relation to the deceased through females).

4. If none of the above-mentioned heirs exist then the property shall pass on the government and this is known as Escheat. 

In case a Hindu Female passes away the property shall be divided amongst –

1. First her children 

2. Then among her husband’s heirs 

3. Then among her father and mother 

4. Then among her father’s heirs 

5. Then among her mother’s heirs 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

880100384

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GENERAL POWER OF ATTPORNEY IN PROPERTY

A general property of authoritative document that is signed by an individual (principal) with an intention to give power to the executor. An executor therefore, has several rights as mentioned in the General Power of Attorney, to sell or allow transactions on the behalf of the original owner. 

Property sale through GPA will not give complete ownership of the property title to the buyer. A deal done based on a GPA will give you the possession of the property, but will not ensure that the title deed is in your name. Already, banks do not finance a property bought based on GPA. 

If you have a property bought through a GPA, you need to get it registered by appearing before the local magistrate and declaring your ownership rights along with all relevant documents. 

If you have brought a property through GPA, but in absence of a registered sale deed, you will not be considered the legal owner of the property. Without the sale deed, you will not be able to sell the property either. Moreover, banks also have a policy of not financing projects involving a GPA. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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PROPERTY AND LEGAL RIGHTS

Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual property. 

Property can be exchanged through contract law, one could sue under tort law to protect it. 

The definition, allocation and protection of property rights comprise one of the most complex and difficult sets of issues that any society has to resolved in some fashion. 

A property right is the exclusive authority to determine how the property is used, whether that resource is owned by government or by individuals. 

A real estate should be well aware about the rights and obligations which come attached with the purchase. Rights such as –

Right of possession

Right of exclusion 

Right of disposition 

Right to have property appraised in a fair manner

Right to dispose of the waste 

Any infringement or discrimination gives legal rights to the homeowners to approach the law enforcement authorities or the court.

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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PROPERTY DISTRIBUTION LAW IN INDIA

The Indian Successful Act, 1925 mainly deals with the distribution of the property of a person after death in India. Under the Indian Succession Act, the distribution of the property after death is divided mainly into two parts, intestate succession, and testamentary succession. 

TESTAMENTARY SUCCESSION – PASSING AWAY WITH WILL

The property distribution is done through the creation of Will as per the wish of the deceased. Hence, any person who wishes to pass on property not as per the laws of inheritance applicable to him/her can do so by creating a Will. Succession as per the Will or any other testamentary document is testamentary succession. 

INTESTATE SUCCESSION – PASSING AWAY WITHOUT WILL

If a person passes away without a Will is intestate succession. In such cases, the property distribution is done as per the inheritance law applicable to the deceased person. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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ADVERSE POSSESSION OF PROPERTY

It is a legal principle that states that a person can acquire legal ownership of someone else’s property. In order to do so, they need to do so, they need to acquire possession or reside on that property for a certain length of time. Typically, the form of property is land. 

If the adverse possession is successful after following certain requirements and conditions, there will be no requirement to compensate the owner for that property or receive permission. Adverse possession is also known as squatter’s rights. 

According to the Indian law of adverse possession, if a tenant occupies a property for 12 years, they are granted the ownership rights to the property. Property owners needs to be aware about these adverse possession laws to avoid any hassle or dispute. 

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UNAUTHORISED AND ILLEGAL COLONIES IN INDIA

With rapid growth in population and urbanization, housing demand has always been higher than the supply. Hence, it cannot be denied that cities lack affordable planned housing stock and supporting infrastructure. 

Let us take the case of Delhi. The story of this city is no different. Nearly 30% of Delhi’s population live in areas designated by the government as unauthorised colonies. 

Such colonies are structures built in contravention of zoning regulations and land use patterns. 

Unauthorized colonies come under Unplanned Housing System where sub-system where settlers have a semi-legal title but sub-division of land into plots happened with or without compliance of planning norms, zonal regulations, building bye laws and without the approval of competent authority. 

Gautam Bhan describes UCs as home to educated elite families. This diverse population is matched by a heterogeneous built environment: shanties stand beside tiled bungalows. 

Slums can be an excellent example of such an unauthorized colony. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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REALITY OF MONEY BACK PLANS, GAURANTEED INCOME AND ENDOWMENT

You must have heard the above words quite often from insurance agents. Surprisingly, they are all the same. They are known by different names to manipulate customers to buy it, however the results are the same, the buyer does not get results as such. Even after such results, these plans continue to sell 

Firstly, they get their agents high commissions in return for each sale and the inability to sell them makes agents and bank relationship managers suspectable to ill-treatment at their offices.

Secondly, due to lack of awareness, people buy anything on the word of the agents

INVESTMENT VS. INSURANCE

Insurance is not an investment. When you invest your money, somewhere, you expect something back. Not so with pure insurance terms. If you die, your nominee gets something. If you live, no one gets anything. Now that may sound like a raw deal. But hey that’s what life insurance is all about!

Ironically, life insurance is not about life, but about death.

Written By 

Property Channel Expert 

Anurodh Jalan 

Jalan Property Consultant

8801003684

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REAL ESTATE SIDE HUSTLES

There are a lot of ways to get involved in the real estate business which gives access to endless opportunities. Here are a few ways to generate a side income from this field. 

1. REAL ESTATE INVESTMENT TRUST (REIT) – It is the mutual fund that pools money from people that offers attractive dividends and recurring a passive income. 

2. HOUSE HACKING – It is the process of renting out the extra room in your house to generate an extra income. By finding a roommate, renting out part of the garage or basement as storage space, or pet sitting in the backyard, a homeowner can earn extra money. 

3. VACATION RENTAL – In some locales, using a primary residence as a short term or vacation rental has the potential to generate serious money. That’s because people often look out for an alternative to an expensive hotel room and welcome the experience of living where the locals do.

4. HOUSE FLIPPER – Buying underdeveloped properties and then flipping them and listing them on the market for resale. This business might require huge cash and might not be possible to do in bulk, but are great to generate cash in the short and getting started with real estate investing. 

5. BIRD DOGS – Investors are always looking out for deals that might be inaccessible to others and might not be able to dedicate much time to this. They are looking for people like drivers and delivery boys who can spend their spare time to bring them deals and are paid accordingly. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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THE STATE OF REAL ESTATE IN 2022

India Real estate sector is witnessing a healthy increase in demand in 2022 and this momentum is expected to hold for the rest of the year. From commercial spaces to the residential market, the overall market outlook is the bright one for real estate industry. 

Despite pandemic exigencies, the sector has continued to show resilience and steady growth in 2021. India’s first wave of Covid-19 brought sector to a relative standstill for a while. 

However, in the 3rd quarter of 2020, the market had begun to pick pace despite covid 19 negatively impacting this sector. 

 THE FUTURE

The real estate sector in India is set to experience around 5% capital value growth in 2022 particularly in the residential segment. Certain projections state that the sales momentum is expected to increase in 2022 as prospective homebuyer will continue to prefer bigger homes, better amenities and attractive pricing which will keep them interested in sealing deals. 

The government continues to prioritize the affordable housing segment and parallelly looking at ways to strengthen the existing financing systems to provide liquidity to stuck real estate projects. 

NITI Aayog expects that the Indian real estate market will reach a size of $1 trillion dollars by 2030 and will count for 13% of India’s GDP by 2025. 

Written By 

Property Channel Expert 

Anurodh Jalan 

Jalan Property Consultants

8801003684 

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HOW TO MAKE REGULAR INCOME FROM INVESTMENTS?

Real estate when done right can offer the most profitable opportunities and lifetime earnings that are enough to leave your regular job. Not only such opportunities help you generate good amount of positive cash flow, but they offer tax benefits to the owner as well as property appreciation that you might get in future.

However, this may sound delightful, but the truth is it is not so easy as it seems to be. In case, you are a novice, the first and foremost thing you need to do is to apprehend the market and trend for masked opportunities and losses. 

Before you decide to invest, you should be well versed with what is happening in the market. 

Lease option can be a great way to get involved in real estate without having to put up a significant amount of capital or even have great credit at the outset. 

You can lease out with an option to buy. This tend to work well when the real estate market is climbing because you are creating a pre-set price at which you can later purchase the property. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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REIT – REAL ESTATE INVESTMENT TRUST (REIT)

Real estate investment trust is a tax-efficient vehicle that owns a portfolio of income-generating real estate assets. A REIT is created by a sponsor, who transfer ownership of assets to the trust in exchange of its share. 

Think of it like a mutual fund, where money is pooled from investors. In return, they were offered mutual fund units. Instead of shares of public companies, REIT units represent ownership of real estate assets. 

Profits are generated in the form of dividends and capital appreciation. 

India saw its first REIT in 2019. Three years later now three REITs namely Mindspace REIT, Brookfield REIT and Embassy REIT have gained significant popularity among institutions and retail investors. 

You can buy units of REITs just like shares through regular trading accounts on BSE and NSE, the major exchanges. 

These top REITs have an average CAGR of 8-9% in revenue, which is quite good. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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HOW TO INVEST MONEY AND GET RICH

Real estate investing is not a scheme to get rich overnight but a long term wealth game for the wealthy investors. Keeping agents, contractors, attorney and lenders in the loop can surely help in generating wealth in the long term. 

Unfortunately, only a few people know how to generate wealth from the real estate market. This article aims to share a few strategies of these in top 1% investors –

1. Buying property at a lower price – Good agents who knows good attorney can help in buying under-valued properties from distressed sellers, Bank REOs, auctions and other sources which allows you to have a built-in-equity in your asset. 

2. Refinancing – A property that is flipped or is undervalued or its free of debt can be refinanced and the amount used to buy another property with it. However the cash flow must be enough to provide with EMI payments. 

3. Flipping – Flippers buy properties and do the necessary repair and update and sell it at a price exceeding the total investment (acquisition + renovation). 

4. Holding –  holding such properties and paying down the debt from the rental income and eventually it becomes the debt free asset for you which generates cash flow every month. 

Ideal investors do all these together. 

Investors buyer under-valued property, upgrades and do the necessary repairs, rehabs it with a tenant (supported by a long term lease) and then refinances it and reinvests the balanced amount in buying another property. This method multiplies their wealth over time. 

Written By

Property Channel Expert 

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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ALL ABOUT REAL ESTATE INVESTMENTS

                                             AN HONEST TALK

Real estate has been a safe and secured investment platform for the baby boomers in the last 50 years. It is considered to be its own asset class and one that should be at least a part of a well-diversified portfolio. 

One of the key ways the investors can make money is by buying rental properties that not only develops a passive income source for the investors but also better chances of appreciation. 

Another way is flipping; flippers buy under-valued real estate, fix it up and sell it for a profit. 

Real Estate investment trusts (REIT) provide indirect real estate exposure without the need to own, operate or finance properties. 

Home prices did take a small hit at the onset of the COVID-19 pandemic in the Spring of 2020. However, as vaccines were rolled out and pandemic concerns waned, home prices accelerated to reach all time highs by 2022. 

A real estate limited partnership (RELP) is an entity formed to buy and hold a portfolio of properties, or sometimes just one property. However, RELPs exist for a finite number of years. Property managers often act as a general partner and the outside investors sought to provide financing of the real estate projects in return of a share of ownership as limited partners. 

Power of leveraging and inflation hedging are a few of the factors that attracts investors towards this industry however an agent must be involved diving into any of such investing.

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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BEST INVESTMENT IN REAL ESTATE INVESTMENT

Investing in real estate can be very challenging to the freshers of the market. What challenges the most is to choose the type of property to invest in. This article aims to educate you about the potential investing opportunities when real estate investing is concerned –

1. COMMERCIAL REAL ESTATE 

 The best commercial properties to invest in include industrial, office, retail, hospitality and multifamily projects. It is considered one of the best type of real estate investment potential for higher cash flow. Investor who opt for commercial properties may find they represent higher income potential, longer leases and lower vacancy rates than other forms of real estate. 

2. RAW LAND INVESTING & NEW CONSTRUCTION 

Raw land refers to any vacant land available for purchase and is most attractive in markets with high projected growth. New construction is not much different; however, properties have already been built on the land. Investing in new construction is also popular in rapidly growing market. 

3. REAL ESTATE INVESTMENT TRUSTS (REITs) 

They are companies that own different commercial real estate types, such as hotels, shops, offices, malls or restaurants. You can invest in shares of these real estate companies on the stock exchange. When you invest in a REIT, you invest in the properties these companies own without the added risk of owning the property yourself. 

Written By 

Property Channel Expert

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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TIPS TO REDUCE HOME LOAN INTEREST

Home loan EMIs (equated monthly instalments) can put severe stress on your monthly budget if you don’t have a proper plan chalked out. So if you are planning to take a home loan or already have taken one, then consider the following tips –

Let’s get started 

1. Go for a shorter tenure – Longer tenures say 25 years or 30 years will cut down the monthly instalment amount, shorter tenures say 10 to 15 years, will help reduce the overall interest payable. So before you sign up for a loan, choose the tenure carefully so that you don’t end up paying higher interest rate. 

2. Pre-payment are a good option too – Lenders don’t charge prepayment or loan foreclosure charges or floating rate loans. So if you have signed up for a loan, try to make pre-payments from time to time. Making frequent prepayment will substantially bring down the principal amount. 

3. Pay more as Down-payment – Borrower often have to contribute 10-25% as a down payment while the rest gets financed by the bank. However, instead of paying the least, its better to contribute more from your pocket as down payment. 

4. Look for better deals – Its known fact that lenders prefer customers who have a good credit history. Banks often roll out preferential rates for existing customers or those who have a good history. So, if you have been a responsible borrower and have made all the repayments on time, chances are you will be offered lower rates on your loan.

5. Increase your EMI – There are lenders who allow you to revise your instalment annually. So, if you have switched your job with a higher salary, you can always go for higher EMIs to reduce the tenure. And once the tenure is reduced, the overall interest that you have to pay against your loan will come down substantially. 

Written By

Anurodh Jalan 

Jalan Property Consultants 

8801003684

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HOW TO CALCULATE GST ON RESIDENTIAL PROPERTY

Since its establishment, the government has considerably decreased the GST applicable on flat purchases to replicate demand during a prolonged slowdown. According to analyst, this might potentially reduce the buyer’s payout by 4%-6% on total purchase. 

AFFORDABLE VS. NON-AFFORDABLE HOUSING –

Housing units upto Rs 45 lakhs qualify as affordable housing, according to the government criteria. A housing unit in a metropolis qualifies as an inexpensive dwelling if it cost less than Rs. 45 lakhs and has a floor area of less than 60 square metres (carpet area). Metropolitan cities include Delhi-National Capital region, Bengaluru, Chennai, Hyderabad, Mumbai metropolitan region and Kolkata. A housing unit in any Indian city other than the ones listed above qualifies as an affordable house if it costs less than Rs. 45 lakhs and has less than 90 sq metres of carpet area. 

For affordable housing, GST rate is 1% without input tax credit 

For non-affordable housing, GST rate is 5% without input tax credit