1. NCRD’s STERLING INSTITUTE OF MANAGEMENT STUDIES
PROPERTY IN INDIA
SUBMITTED BY
KHUSHBU CHAUDHARI ( C-04)
ASHOK PATEL(C-16)
PRANAY RAGABHAGAT(C-19)
PRIYANKA PATIL ( C- 17)
SANDEEP RAMRAJE (C- 23)
FY MMS
ACADEMIC YEAR: 2012-2013
SUBMITTED TO
PROF. SEEMA LADDHA
2. WHAT IS PROPERTY
• Any subset of land that has been legally defined and the
improvements to it made by human efforts: any
buildings, machinery, wells, dams, ponds, mines, canals,
roads, etc.
•LAND
•PLOT
•FLAT
Our main focus on home the basic need
3. 45
40
35
30
25
2009
20
2010
15
2011
10 2012
5
0
Data produced by WWW.MONEYCONTROL.COM
6. STEP TO BUY PROPERTY
Buying a home can be a long and complex process, but
there are certain steps you can follow to make it as smooth
as possible.
Define your criteria
Beginning the search
Acceptance
Getting a mortgage
Buy buildings insurance
Paperwork
Exchange of contracts
7. The Fees Involved in Buying a Home
•Private mortgage insurance
•Homeowner’s insurance
•Title insurance
•Appraisal fees
•Escrow fees
•Points or origination fees
•Credit report fees
•Document preparation fees
•Survey fee
•Pest or mold inspection
•Property taxes
•State recording fees
8. Keep in mind that not all of these fees will always apply. Some may be
waived or paid for by the lender or seller. Even so, it is important that
you understand what the fees are and who is responsible for paying
them before finalizing the purchase of your new home
Homeowner’s insurance: When borrowing money to purchase a
home, insurance is required. In many cases, this means buying a policy before
closing on the home.
Title insurance: This insurance covers you in the unlikely case that the person
who sold you the house didn’t actually own it or if information on the title was
false.
Appraisal fees: An appraisal is needed so that a current fair market value for
your home can be established for tax purposes.
Escrow fees: During the closing process, an escrow account will usually hold
the money while the buyer and seller finalize the agreement. In
addition, you’ll probably have a portion of your monthly mortgage payment go
into escrow in order to pay for property taxes and insurance.
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9. Points or origination fees: An origination fee is paid to the bank or lender for their
services in creating the loan. A point is 1 percent of the loan, and is often worked into
the total cost of the loan.
Credit report fees: In order to secure a loan, the lender will require a verified credit
report.
Document preparation fees: The lender or broker will usually have a fee to cover the
preparation of the required documents for the loan.
Survey fee: If an existing survey of the land cannot be obtained, a new survey will have
to be conducted in order to determine exact boundaries of the property.
Pest or mold inspection: While not generally required for a brand new home, the
purchase of an older home may require an inspection for pests such as termites as well
as mold. This requirement can vary by location.
Property taxes: In some cases, you may owe some property taxes immediately if the
seller has already paid taxes for a time period where you will be the owner. Also, there
may be other municipal taxes or fees for sewer or water that need to be taken care of.
State recording fees: Depending on where you live, there may be a fee required for
recording and holding the information regarding the sale.
10. Home loan provide banks
MANY BANK ARE PROVIDE SOME ARE GIVEN BELOW
• SBI
•HDFC
•ICICI
•IDBI
•CANARA
•AXIS
11. Documents required in Home Loan
•Age Proof
•Address Proof
•Income Proof of the applicant & co-applicant Last 6 months bank
A/C statement
•Passport size photograph of the applicant & co-applicant
•Last 3 year IT Return
In case of Salaried
•Employment certificate from the employer
•Copies of pay slips for last few months and TDS certificate
•Latest Form 16 issued by employer Bank statements
In case of Self-employed
•Copy of audited financial statements for the last 2 years
•Copy of partnership deed if it is a partnership firm or copy of
memorandum of association and articles of association if it is a
company
•Profit and loss account for the last few years
•Income tax assessment order
12. Types of Home Loan
• Home Purchase Loan
• Home Improvement Loan
• Home Extension Loan
• Home Conversion Loan
• Home Construction Loan
• Land Purchase Loan
13. Home Loan Process & various steps involved
• find your property
• Know the Home Loan Eligibility
• Select the Best Home Loan after evaluation
• Applying for the Loan
• Documentation & Verification Process
• Credit & default check
• Bank sanctions Loan & Offer letter to the borrower
• Acceptance Copy to the Bank
• Bank checks the legal document
• Signing of agreement & the loan disbursal
14.
15. Different Types Charge to WHILE BUYING TIME
• Property Taxes
• Broker fees
• Stamp duty
• Registration Fees
16. HOW TO SAVE A MONEY
• INCOME TAX
• STAMP DUTY
• REGISTRATION CHARGE
• LTCG
• STCG
17. Income Tax
• Section 80(c) is with respect to the “Principal
Repayment” of the Home Loan.
• Rs. 1,50,000 of your total tax liability
• Reconstruction or renewal or repairs is
eligible.
18. STCG LTCG
• Period= less 36 months • Period= More than 36 months
• pay tax according to your • Taxed at 20% with the
income tax slabs.. indexation benefits
• 20% of the [(Price of sale) –
{Original price X ( CII for the
Selling year / CII for the Buying
year)}]
• Rural Electrification
Corporation (REC), National
Housing Bank (NHB),
19. STAMP DUTY
STATE STAMP DUTY CHARGE FOR STAMP DUTY CHARGE FOR
MALE ( %) FEMALE (%)
Tripura, Andhra Pradesh 5 3
Punjab 6 4
West Bengal, Manipur 7 AMENDMENT IN LAW
Nagaland, Madhya Pradesh 8 6
Delhi 6 4
Haryana 10 8
Uttar Pradesh 6 Process in Law
Gujarat 10 9
Maharashtra Depend on property valve ----------
20. Robert Vadra and DLF deal
Place Year Buy Price Stamp Actual Stamp Current
Duty Paid Price Duty Paid Price
DLF 2009 5 Cr. for 50 lk. 5- 8 Cr. 4-6 Cr. 10-15 Cr.
Magnolia 7 Flate Each Each
DLF Aralias 2010 10000 Sq. 9 Lk. 20 Cr. or 2 Cr. Or 30 Cr.
(Gurgaon) feet More More More
Apartmen
t in Just
89 Lk
DLF Hilton 2010 50% 3.2 Cr. 150 Cr. 15 Cr. 250 Cr.
Garden Inn share in
32 crore
Report is Produced by INDIA AGAINST CORRUPTION on Dated 15 Oct 2012
