Need Serious Advise very badly

Need Serious Advise very badly

Score: 4 Votes: 4
Score: 4 Votes: 4
Score: 4 Votes: 4
Score: 4 Votes: 4
Th gd008
Deal Cadet
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Hello Friends,

I am pretty old member of DD, almost 6yrs old member. I hardly post deals but follow DD very regularly. Now I need your advise https://cdn3.desidime.com/assets/textile-editor/icon_sad.gif

All of you are aware about 500/1000 thing right..

Let me elaborate my issue.

I purchased a Flat in Bangalore for 75L 2 months back, and have done a Sale agreement with Builder by paying 12L and rest have to payed after 6 months.
Builder is not reputed builder like Salarpuria and all..

Becase of Modi’s blackmoney effect, property prices are going to fall and all flats and lands prices going to be decreased/slashed.
Now I am sure my flat value is going to be slashed because of same and I have to pay same 75L even if it falls as I have done sale agreement.

Can you please advise me how to proceed now as breaking of sale agreement will be penalized by 3Lakh deduction.

I am tensed so please advise with best of your knowledge.

Thanks in advance!

//
Sagar

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18 Comments  |  
15 Dimers
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Deal Subedar
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My suggestion- do not rush on the conclusion.
IMO drastic fall in property prices are next to impossible in Bangalore

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@Anand Sagar Since it’s not a reputed builder, making this decision is a straightforward, yet difficult, matter of guesstimating whether your flat prices will fall below the penalty price of 3 lacs [edit: and your cash flow situation — important].

@19 Female Gurgaon @hese What’s your situation like?

Hound
Deal Captain
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Don’t Think Any Shorterm Propery Price Fall..Go Ahed And Buy House And One Question Will Give You Answer,

Are You Buying 1st Home Or 2nd Home(For Investment)

If You Buying 1st Home No Worry As You Going To Live Minimum 5 Yr There So Property Price Fall Will Not Have Problem For You

If For Investment You Can Think About Breaking Agreement,

This Property Fall And Other Are Media Hype Created Do Not Fall For It,

Max Fall Come Is 10% If You Buying House Little Outside In Bangalore

But If You Buying Inside City Means Major Area No Problem In Buying,Bangalore Is IT Hub Demand Sure Will Keep Rising

End Of The Day Discuss With Your Family N Decide https://cdn1.desidime.com/assets/textile-editor/icon_smile.gif

Missing
Deal Cadet
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75L is not a small price for a small-time builder apt in BLR imo (I mean price is already on higher side – again guessing since location nor size is mentioned).

Btw my view on real estate is that it will crash due to unrealistic pricing with piled up inventories in big cities esp where registered prices are way below the purchase prices.

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Deal Subedar
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Real estate is going to fall for sure but time will tell the impact as source of money is ceased and there will be only white money mostly gonna exists in market also ceasing black money will release more resale property in the market, rest you can ask financial experts

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@DealSeeker wrote:

@Anand Sagar Since it’s not a reputed builder, making this decision is a straightforward, yet difficult, matter of guesstimating whether your flat prices will fall below the penalty price of 3 lacs.

@19 Female Gurgaon @hese What’s your situation like?


I did make huge investments in Hyderabad very recently, market updates till now… yes there is effect but it depends on many factors.! I suggest talk to friends, family and experts before taking harsh decisions., Sry OP not sure to what extent i can help you.

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Deal Subedar
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most black money in this country is in gold. so not much impact is expected.

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Deal Lieutenant
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@Anand Sagar

It depends on the locality and demand in the area. If it is one of those areas where flats/plots are on the outskirts which exist in the hopes of huge price increase there might be a dip in the value. But in the core areas as per one of the builders I know would increase and he gave me an interesting reason (I am a noob in real estate and I still cant comprehend it). His expectation is that the seller not budging to bear the full tax implications asks for a premium to compensate his tax loses. He says even now most transactions happen in ratio 60% (in white): 40% (black) and PAN card of both parties would have to be submitted during the registration. He also said that the buyer now deducts 1-2% (I thought it was still higher but he says TDS is only so much) and pays the IT challan. So for a short term the impact would be more and would discourage new developers to expand areas 50-60 KMS away from Bangalore. So the core/developed areas would still have the demand and people wouldn’t give up properties for any lesser prices. This is most of what I remember and might have missed some trivial details. So if you could comprehend something and help you make a decision would be nice. I don’t know anything more than this personally.

Also I was watching a discussion on some channel and an economist there had a different opinion. He was of the opinion that everything would be a blip for a couple of quarters and would return to normalcy. He said that only a small percentage of them buy property/gold to stash away ill gotten money but for majority of them it would be a needful buy. At the end of the day people buy gold, stock, property as per need and not because something is comparatively cheap (Property is not something us normal people buy because prices have fallen 10%). He also said there are chances that in Metros there are chances of increase in Rental rates due to decreased construction of rental properties.

And don’t go by what you see in Media as market force is bigger than what they presume it is. They did the same thing yesterday and today in terms of stock markets. They expected American Indexes to fall at least 10% with some cases going towards mid-teens. But US markets opened green and are at 1 month high. No hasty decisions in terms of investments so take your time and decide.

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Deal Lieutenant
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any information on mumbai flat prices…. is it expected to fall as being shown on tv like 20% – 40% in the coming one year
https://cdn2.desidime.com/assets/textile-editor/icon_rolleyes.gif

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Deal Lieutenant
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@desidude2013 wrote:

any information on mumbai flat prices…. is it expected to fall as being shown on tv like 20% – 40% in the coming one year
https://cdn2.desidime.com/assets/textile-editor/icon_rolleyes.gif


I am really not aware of it but what they show on TV is lies these days. They said no brexit or Trump and both happened. They said stock markets would crash heavily and that didn’t happen either. But then again how many of them buy mid level flats without getting loans? In fact many projects would be stalled due to lack of capital. No black money to fund projects and banks who are nursing bad loans already have no capital to fund. It will create some liquidity crunch in the real estate sector.

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@ranjithsai01 wrote:

@desidude2013 wrote:

any information on mumbai flat prices…. is it expected to fall as being shown on tv like 20% – 40% in the coming one year
https://cdn2.desidime.com/assets/textile-editor/icon_rolleyes.gif


I am really not aware of it but what they show on TV is lies these days. They said no brexit or Trump and both happened. They said stock markets would crash heavily and that didn’t happen either. But then again how many of them buy mid level flats without getting loans? In fact many projects would be stalled due to lack of capital. No black money to fund projects and banks who are nursing bad loans already have no capital to fund. It will create some liquidity crunch in the real estate sector.


similarly they also said on next day of resign of R3 (ex rbi gov) , NSE and Sensex will fall very badly , but that too never happen . land price thing is just to make hype and then create panic in public and to politicize this issue , bcoz they cant oppose this step openly so new way . land prices will not affected bcoz of it , in some areas where already land prices are much more than valuation may be seen little bit fall .
but yes in coming years you can expect strong law on illegal and black market of real estate .

Qwqwq
Deal Lieutenant
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@hese wrote:

@DealSeeker wrote:

@Anand Sagar Since it’s not a reputed builder, making this decision is a straightforward, yet difficult, matter of guesstimating whether your flat prices will fall below the penalty price of 3 lacs.

@19 Female Gurgaon @hese What’s your situation like?


I did make huge investments in Hyderabad very recently, market updates till now… yes there is effect but it depends on many factors.! I suggest talk to friends, family and experts before taking harsh decisions., Sry OP not sure to what extent i can help you.


One of my friends have recently sold their flat. I don’t know exact amount but he was telling it’s big amount(>50 I guess) And as most people do actual registered amount is Abt 60% of sale price. Now they still have liquid cash with them and are panicking. What’s the best thing they can do as max limit is about 2.5L to deposit in bank.
Is fine really 200%?

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@bookface wrote:

One of my friends have recently sold their flat. I don’t know exact amount but he was telling it’s big amount(>50 I guess) And as most people do actual registered amount is Abt 60% of sale price. Now they still have liquid cash with them and are panicking. What’s the best thing they can do as max limit is about 2.5L to deposit in bank.

Is fine really 200%?


I think he can use the option which will soon become the standard for all such cases, if not already. Get the money deposited under Ramu kaka’s family members’ names. https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Ah, the proverbial Ramu kakas will suddenly have a lot of cash. https://cdn3.desidime.com/assets/textile-editor/icon_lol.gif

As for the penalty, yes, it’s indeed 200%. But this is nothing new. ITD has always had a 200% penalty on undercharged tax, i.e. 200% of the tax liability on the concealed income.

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Deal Lieutenant
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@Anand Sagar if you are purely looking at the value on a short term then there might be a depreciation in value for a short term but on a longer term the value will get better eventually. So do reconsider yourself if you are making a long term investment into the flat or a short term one.

If at all the location is bad and it’s a short term investment then you might have to go through the hassles of fighting it out with the seller to get your money back or forfeiting some amount as per agreement but if the locality is good and you intent to retain the property for a long term don’t worry too much.

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Deal Lieutenant
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@DealSeeker wrote:

@bookface wrote:

One of my friends have recently sold their flat. I don’t know exact amount but he was telling it’s big amount(>50 I guess) And as most people do actual registered amount is Abt 60% of sale price. Now they still have liquid cash with them and are panicking. What’s the best thing they can do as max limit is about 2.5L to deposit in bank.

Is fine really 200%?


I think he can use the option which will soon become the standard for all such cases, if not already. Get the money deposited under Ramu kaka’s family members’ names. https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

Ah, the proverbial Ramu kakas will suddenly have a lot of cash. https://cdn3.desidime.com/assets/textile-editor/icon_lol.gif

As for the penalty, yes, it’s indeed 200%. But this is nothing new. ITD has always had a 200% penalty on undercharged tax, i.e. 200% of the tax liability on the concealed income.


Not to forget,
6 months to 7 years imprisonment can also be granted in such cases !

And a common man will not be able to escape from the hands of Income Tax authorities, once it gets highlighted.
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Regarding the OP’s scenario, I would suggest (as most people above) to wait for a few weeks atleast and see the market reactions to this change.

You never know the builder may himself/herself offer you some discount on the property since they are themselves under huge cash crunch !
Just make sure you be,
→ informed
→ proactive
→ trust only facts not assumptions/rumours
→ dont take so much risk which you cannot afford
A calculated risk is not a bad move.

In fact, once I started reading this thread, I was wondering OMG OP must be having lots of cash at his home due to the property deal and the question would be how to settle it ? https://cdn2.desidime.com/assets/textile-editor/icon_toungueout.gif

But, you are in a better position and you have the document with legal backing for the property you are buying. So, IMO, you should be least bothered about the scenario right now. And please ensure you make no knee jerk reaction ! https://cdn2.desidime.com/assets/textile-editor/icon_smile.gif

@DealSeeker Got forwarded message that next up in the line of Modi Surgical strikes is bank lockers where digital locks will be installed and government officials will assess the value of items in your lockers! Any chance? https://cdn1.desidime.com/assets/textile-editor/icon_eek.gif

Th gd008
Deal Cadet
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I thank you all for your replies.

Property is in decent location (If you are in/from bangalore, it is just beside Brigade exotica/Salarpuria East Crest and faces to 250ft National Higway)

Builder is not reputed builder, but this is a big project (150 Flats + One 9 floor commercial complex).

Flat Possession is by Jan 2018, and this property is my 1st property in Bangalore with size of 1750sqft 3BHK with 2 Car Parkings.

As possession is by Jan 2018 we will have lot of time. But cancelling the property lead to 3L Deduction.

I thank you again for your answers https://cdn1.desidime.com/assets/textile-editor/icon_smile.gif

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Deal Lieutenant
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@Anand Sagar wrote:

I thank you all for your replies.

Property is in decent location (If you are in/from bangalore, it is just beside Brigade exotica/Salarpuria East Crest and faces to 250ft National Higway)

Builder is not reputed builder, but this is a big project (150 Flats + One 9 floor commercial complex).

Flat Possession is by Jan 2018, and this property is my 1st property in Bangalore with size of 1750sqft 3BHK with 2 Car Parkings.

As possession is by Jan 2018 we will have lot of time. But cancelling the property lead to 3L Deduction.

I thank you again for your answers https://cdn1.desidime.com/assets/textile-editor/icon_smile.gif


Bhai, given the situation right now, even if you decide to terminate agreement. I feel it will be difficult for you to receive balance amount – 3L panelty. My suggestion would be to stay put as by the time your apartment is ready for possession, the situation will be different.

PS: We Indians are all Desis who are well known for Jugaad in every situation… https://cdn2.desidime.com/assets/textile-editor/icon_wink.gif

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@19 Female Gurgaon wrote:

@DealSeeker Got forwarded message that next up in the line of Modi Surgical strikes is bank lockers where digital locks will be installed and government officials will assess the value of items in your lockers! Any chance? https://cdn1.desidime.com/assets/textile-editor/icon_eek.gif


Nothing but FUD.

Missing