What Are The Advance Payments Comes With Home Buying?
There are different type of mandatory advance payments comes with home buying, but as a home buyer, we should avoid to make these payments in hassle, read this blog to know why.
The booking amount and other advance expenditures are some of the important expenditures every homebuyer stumbles upon at the time of booking a residential apartment. The booking amount for the purchase of an apartment preserves buyers’ interest.
The residential property comes with numerous other additional costs such as costs incurred towards legally transferring the asset to the name. Property builders always demand the advance from home buyers in different forms.
So, suppose a real estate developer demands the buyer for advance payment and what he or she should know about such conditions?
Here in this blog, we are discussing different types of advance payments during home buying.
Every reputed real estate developer always safeguards the interests of a home buyer and maintains complete transparency with property dealings.
Table of Containts
Booking amount or token money
Many real estate developers sometimes avoid discussing the terms of conditions of the property transaction if they are not aware of the serious interest of the buyer. To confirm the home buyer has serious intentions towards the home buying, sellers or real estate developers may ask for:
- Booking amount
- Token money
- Expression of Interest
- Bayana
- Earnest deposit.
All the above-mentioned words mean the same – advance payment. A home buyer has to pay a fixed amount to confirm the intention to make the purchase. Generally, a builder may demand an amount ranging from Rs. 50,000 to Rs. 5 Lack or more as a token amount depends on the total amount of the property.
Stamp Duty
Abided by law, a home buyer has to give the stamp duty while purchasing the residential property. But, as a home buyer, you should not hurry while paying so. Because, there can be a condition when you are not so much interested in a particular property, or even the second party cancel the deal. In such circumstances, all your expenses in stamp duty could go in vain. As these legal documents are non-refundable and non-transferable, so make this decision carefully.
Advance TDS payment
From the mid of 2013, the law mandate that a sale of property value above Rs. 50 lakhs in India, a tax of 1% has to be deducted on the total sale consideration ahead of a buyer pays to the seller.
Homebuyers have to deposit this 1% as TDS to the Government along with the PAN of both parties (buyer and seller) at the time of submitting the Form 26QB. This makes sure that the seller doesn’t overlook taxes on capital gains. This 1% on advance payment is a common thing these days but you should discuss it with your financial advisor before making any commitment.
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Office Absorption: Noida Ahead of Gurugram
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The real estate market of Noida has maintained the top ranking in the 4 following quarters as the best performing micro-market in the Delhi NCR in terms of net office space absorption.
According to JLL India, the Delhi NCR have experienced net absorption of 1.07 million sq. ft. (MSF) in the January-March 2021 quarter, up 5% from the last quarter, with Noida accounting for 55% of the net absorption and Gurgaon for 38%. Since April-June 2020, Noida has constantly outperformed Gurgaon.
Commercial developments and office spaces have become increasingly important as the population of Noida’s newer neighborhoods have expanded. Following residential acceptance, demand for office space has surged, as office spaces in East Delhi are almost filled and do not fulfil modern aspirations for ultra-tech and posh offices.
Last year, a rising Indian digital payment company took 5.50 lacs sq. ft. at Sector 98, Noida Greater Noida Expressway, Noida to consolidate six offices. Another corporation consolidating in Sector 62 is a South Korean global corporation. They took almost 3 lacs square feet.
The commercial real estate market is at a halt in general, with demand for Grade A office space stable. The office leasing segment of the commercial real estate market’s demand indicators has also remained stable. Due to the second wave all over the country, companies have sustained to focus on employee comfort & security; the bigger sense of responsibility has led offices that formerly worked from confined spaces in city centers to look for luxury & spacious offices in the best locations and buildings in NCR.
As a result of its better road and metro connectivity, affordable housing, Grade-A offices, affordable rentals, and upcoming international airport and logistics hub, Noida is appealing to enterprises. Due to COVID, many businesses decided to divide the number of staff in one office among different locations, letting them increase their reach.
Providing more information real estate experts say, “The amount of lease holding in previously-operational properties has mostly followed former trends. Some commercial office occupiers, instead, are reducing their space requirements, generating demand for as much as small workspaces. Because of a steady channel of assets becoming online shortly, the demand-supply disparity could temporarily widen.”
The amalgamation of cost arbitrage and lesser pricing for the same services is a captivating combination. Noida is also developing day by day, with distinct business and residential zones presenting people with a sense of arranged development. With Metro corridors, the transportation issue has also been addressed. Builders established commercial hubs with specialized office spaces in answer to demand as the best choice for people who worked from home or in shared working space. Starting from 300 square feet, office space is inexpensive for start-ups and businesspersons on a fixed budget.
Why High-Rise Apartments In Mumbai Are Expensive And Cheap In Delhi?
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High-rise apartments for Mumbaikar and low-rise apartments for Delhiite are the preferred choice, and there are lots of reasons behind these preferences. Here in this blog, we are discussing some of these reasons.
India has two capitals – Delhi (political capital) and Mumbai (financial capital). Both cities have a high-density population of more than 2 Crores and due to this, the property value is very high. But, the way of home preference of the people of both the cities is very different from each other.
How? Let’s find out
In Mumbai, most people prefer to buy the home on the top floors of high-rise towers, but in Delhi still, there are lots of people who prefer independent homes or low-rise communities. Due to this, high-rise apartments in Mumbai are pricier as compared to Delhi. When we discussed with the real estate experts and real estate developers who are active in both cities, an interesting explanation come into sight. Because of climate, land scarcity, sea and slums, Mumbaikers prefer to live in high-rise apartments.
Table of Containts
- High buildings in Delhi owing to power cuts and heat
- Higher floors, Costlier apartments
- High Floor Preference Because Of Slum in Mumbai
- Cultural Difference of Development in Delhi and Mumbai
High buildings in Delhi owing to power cuts and heat
Residential property advisors in Delhi say that Delhi is a hot & humid city and there are also frequent power cuts in the summer season. So, if the power cuts occur during hot weather conditions, then there is lots of trouble caused by the heat on the top floor. In contrast, the heat in Mumbai remains low thanks to the sea. Here the climate is pleasant at high altitudes and the electricity supply is also very good.
Higher floors, Costlier apartments
According to the real estate developers, the residential property market is location-based, the more you buy an apartment on the top floor, the more cost will increase. The location of the high floor in Mumbai is favourable due to the climate and power supply. That’s why there is demand here. But the higher the building is built, the more the cost increases. That’s why property becomes expensive here as compared to Delhi.
High Floor Preference Because Of Slum in Mumbai
Executing director of a reputed real estate firm says, due to the slums in Mumbai people want to take floors so that the view is good. Because of high pollution, people also like to live on the high floor. Sea site views are also a factor. Due to the high demand for high-rise apartments in Mumbai, this city has 9 tallest buildings in the top 10 of India.
Cultural Difference of Development in Delhi and Mumbai
Experts from urban planning, say that there are lots of land banks are available in and around Delhi. Therefore, areas like Noida, Gurgaon, Faridabad, have developed here, and here you can see many ongoing low rises or residential plotted developments. On the other hand, Mumbai is struggling with land scarcity and is surrounded by the sea. Therefore, the possibilities of land expansion are zero here. Most of the wealthy people want to live nearby the beach, that’s why sea-facing high-rise apartments are high on demand. On the other hand, Delhi’s culture of living in high-rise apartments is not that high.
Frequently asked questions
How much does a luxury apartment in Mumbai cost?
The average price of an apartment in Mumbai starts from 3Cr. Affordable housing is tough.
Which are the most luxurious apartments in Mumbai?
Not just one there are several luxurious apartments in Mumbai,
1. Lodha The Park Worli: that is located in South Mumbai with high-end amenities and outstanding connectivity. It consists of 2BHK, 3BHK, 4BHK, & 5BHK apartments, penthouses, etc.
2. Omkar 1973 Worli, Hanuman Nagar: It is a perfect example of the finest quality modern architecture to provide an ecosystem for the people to enjoy from work, live a life i.e. relaxing and indulge in fun activities with 3, 4, 5 Bedrooms Apartments, Penthouses.
3. Peninsula Ashok Towers, Parel: Located in South Mumbai this community is highly maintained. It shares great connectivity with a myriad of features. You can choose from 1, 2, 3, 4, 5, Bedrooms Apartments, Penthouses.
Which society is best in Mumbai?
Hiranandani Estate- In addition to the various types of residential apartments, penthouses, condominiums, bungalows, commercial complexes, office buildings, hospitals, schools, community centers, gymnasiums, banks, shopping malls, film studios, bus garages, hotels, restaurants, and pubs in Hiranandani Estate, you can also find a sports club, a sports club, restaurants, and pubs. It covers an area of approximately 250 acres.
Which area in Mumbai has the highest rent?
India’s most exclusive residential address, Malabar Hill is not just Mumbai’s most posh area, it’s also its most exclusive residential address inhabited by billionaires and millionaires. A few marquee properties of more than Rs 300 crore are also located in the hillock area, in addition to luxurious condos and penthouses.
