IntroductionReal estate investment has always been a popular choice for investors looking to grow their wealth over the long term. While Tier-1 cities have always been the most lucrative markets, in recent years, Tier-2 and Tier-3 cities have emerged as great alternatives. With the growth of these cities, both in terms of population and infrastructure, real estate investment in Tier-2 and Tier-3 cities has become the next big thing. So, in this article, we will explore why real estate investment in Tier 2 and Tier 3 cities is gaining momentum.  A Quick Overview about Tier-1, Tier-2 and Tier-3 cities in IndiaBefore we get into why Tier-2 and Tier-3 cities are becoming attractive for real estate investment, let's first understand what these terms mean. In India, the cities are categorised based on their population and economic activity. Tier-1 cities are the most developed and populated cities, including Mumbai, Delhi, Chennai, Kolkata, and Bangalore. Tier-2 cities include Ahmedabad, Bhopal, Jaipur, Lucknow, and Surat. Tier-3 cities are smaller cities with lower economic activity and population. So, without further ado, let's get started! 1. Low Entry CostLow entry cost is a huge benefit for real estate investors because land and property prices are much lower in Tier-2 and Tier-3 cities. This makes it easier for investors to buy a property in these regions and earn rental income. Subsequently, the rental yield is higher in Tier 2 and Tier 3 cities, which makes it an attractive investment option for those looking for regular income from property investment. 2. Higher Potential for Growth and DevelopmentMost Tier-2 and Tier-3 cities are gradually transforming into economic powerhouses and contributing to the state and national GDP. Rising connectivity and infrastructure development have added to the economic boom. For example, Lucknow, in recent years, has expanded its periphery and attracted millions to investmenting in properties. New businesses and companies have set up operations, thus boosting employment and the local economy. Lucknow is now a connecting link between other cities of the state and the National Capital Region (NCR). Cities like Indore and Ludhiana are now a part of the country's developing multi-modal logistics network, which promises to strengthen the supply chain in the country. Amritsar and Kochi are already well-known international tourist destinations. Several of these cities now have their own special economic zones. This in turn promotes potential employment opportunities in these cities. 3. Rising Demand for Affordable HousingWith the increase in urbanisation and the growth of the middle class, there is a growing demand for affordable housing. Therefore, Tier-2 and Tier-3 cities have witnessed higher housing demand than Tier-1 cities. As a result, the demand for residential properties in these cities is expected to rise in the coming years, providing an opportunity for investors to earn good returns. The demands for it are on a rise due to the availability of financial options, increased level of incomes, emergence of nuclear family culture. 4. High Capital Appreciation and Rental YieldAs previously stated, investments made in Tier-2 and Tier-3 cities can grow because of their lower average prices, steady growth rate, and availability of open spaces in and around their properties. As a result, the upcoming group housing projects in these cities are more likely to offer capital appreciation and higher rental yields. Rental yields for commercial properties in Tier 2 and Tier 3 cities can be as high as 12-15% and 5-7% for residential properties. Since these cities are on a steady rise, it can be forecasted that the investments made will be profitable in the long run. 5. Risk DiversificationLastly, investing in real estate in Tier 2 and Tier 3 cities helps to diversify the risk. Investing in multiple properties across different cities reduces the risk of loss due to unforeseen circumstances like natural disasters or economic downturns in a particular region. This diversification helps create a stable and varied investment portfolio that is less susceptible to market fluctuations. Final WordsIn addition to Tier-1 metros, a significant portion of the housing demand will come from Tier-2 and Tier-3 cities in the coming years. However, investors must be cautious and conduct thorough research to mitigate risks like lack of transparency, delayed housing projects, etc. With the right approach, real estate investment in Tier-2 and Tier-3 cities can be profitable and rewarding for those looking to grow their wealth in the long run. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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Recently, the Reserve Bank of India (RBI) hiked up its repo rate by 25 basis points, raising the total interest rate to 6.5%. According to industry experts, the increase is nominal and is not expected to affect the real estate sector. However, property developers and consultants think that the hike will in turn raise interest rates on home loans and may impact demand for affordable and lower-middle-income housing segments. It's important to note that this is the 6th consecutive hike, and the sector is now looking for stability. Also, the rate is at its highest point since the past 4 years  How The Repo Rate Hike Will Impact the Real Estate SectorLet's look at how the hike in repo rate can impact the real estate sector: Control inflationThe RBI increases the repo rate to control inflation. A higher repo rate reduces the amount of money in circulation, which can help reduce inflation. Lower inflation can lead to more stable economic conditions and a better investment climate in the long term. Ashwinder R Singh, CEO-Residential, Bhartiya Urban, said, "Although a rise in interest rates will be difficult for many people with home loans, it can help people save more, help them build wealth, and reach their financial and housing goals. Often, an increase in interest rates means a strong and growing economy, which leads to more job opportunities, higher wages, better financial security, and more home sales for many households. In this regard, India is doing well compared to the rest of the world." Increase in borrowing cost.For both developers and homebuyers, the hike in the repo rate directly impacts the borrowing cost. This can decrease real estate demand as people may postpone their buying decision due to higher interest rates. This, in turn, can result in a slowdown in the real estate sector. Anuj Puri, Chairman, Anarock Property Consultants, said, "With repo rates now at 6.5%, there can be some repercussions on housing demand as home loan interest rates will rise further. The rates had already crept up after 5 consecutive rate hikes over the last year. This will increase the financial burden on homebuyers because apart from home loan interest rates, property prices have also gone up in the recent past two to three quarters." Improve economic growthControlling inflation through a hike in the repo rate can help create a stable economic environment that promotes long-term growth. This can lead to increased investment and more business opportunities, which can benefit the real estate sector in the long run. Ankit Kansal, MD & Founder, Axon Developers, said, "The recent decision by the RBI to hike the repo rate by 25 basis points is expected. The global economic outlook has improved, but uncertainties remain. Besides geopolitical threats and market volatility, the prices of petroleum and non-oil commodities are rising, which will weigh on global economic growth. This may impact inflation, which is already high in India. Thus, raising interest rates makes perfect sense, as the goal should be to strike the right balance between growth and inflation." He also added, "Meanwhile, the government must recognise the economic importance of the realty sector, which not only accounts for 8% of the GDP but also is the second most employment generator after agriculture. Any increase in home loan rates needs to be balanced with policies and incentives to reduce construction costs and incentivise sales. Initiatives such as rationalising GST rates, reducing stamp duty, lowering capital gains taxes, and increasing the income tax waivers on home loan interests can accelerate the overall property market. Even if the governing bodies identify and implement one or two such initiatives, it will positively impact the overall industry." Final WordsWhile a hike in the repo rate can have some negative impacts on the real estate sector in the short term, it has positive impacts in the long term by creating a more stable economic environment. Dushyant Singh, Orion One32, said, "Compared to previous decisions, RBI has raised the repo rate moderately, this time only by 25 bps, as inflation remains a long-standing concern for the economy. The increased home loan interest rates would be a burden for homebuyers, but the commercial segment is expected to grow due to better returns on investment. However, the tax rebate policy and the government's increased incentives for infrastructure development would offset the impact of the repo rate hike, and demand for real estate projects would remain strong." About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
What is a smart home? This seemingly simple question can have different answers depending on who you ask. In general, a "smart home" is a home equipped with devices that automate tasks or allow remote access. These devices can be controlled using apps, remotes, switches, voice commands, or artificial intelligence. Smart homes are tremendously impacting lives all around the world. Here are some positive changes: a smart home can help to provide a better lifestyle.  1. Increased ConvenienceSmart homes create a comfortable and convenient living space. Using smart home devices, you can control and monitor your homes from anywhere in the world. For example, on a hot summer day, you can turn on the AC before you get home, or turn off the living room lights from the comfort of your bed. This increased convenience not only makes our lives easier but also helps us save time and energy. Even when you are held up amidst multiple tasks providing yourself the comfort you need gets easier. 2. Improved Safety and SecurityWith smart locks, security cams, and video doorbells, you can monitor your home from anywhere in the world and receive instant alerts if there is any unusual activity. For example, if someone tries to break into your home, you can receive an alert on your smartphone and take action immediately. In addition, some smart home devices can also be programmed to call emergency services in case of a fire, flood, natural disaster, etc. 3. Energy EfficiencyAll smart home devices are wired in such a way as to keep energy wastage to a minimum. Motion sensors detect the presence of people in a room and turn on the lights, fans/AC, thermostat, etc., in the room. Also, they'll shut down as you leave the room. Lights will dim themselves, any taps left running will be taken care of, and fans/Ac will perform at a reduced functionality when you are asleep. Just imagine this – you can dim the lights, change their colours and brightness, and even control them simultaneously, all through your smartphone! Such features not only reduce your energy consumption but also your carbon footprint. Also, you save a lot of money! 4. Enhanced Comfort and EnjoymentSmart home technology is also making our lives more comfortable and enjoyable. With the help of smart home entertainment systems, you can enjoy your favourite music and movies in high-quality audio and video. In addition, some smart home devices can also be programmed to create a personalised atmosphere, like by adjusting the lighting and temperature to match your mood or the occasion. 5. Improved Well-beingPerhaps the most exciting aspect of smart home technology is its potential to improve your overall well-being. It's the best option for working parents with little infants or people with elderly parents. The smart cameras installed in the home can help you keep an eye on your children or your elderly parents and monitor their activities throughout the day. It's especially helpful for the elderly as it can perform a wide range of functions. For example, notifying them when it's time to take their medicine, turning off taps and lights in case they forget, alerting homeowners in emergency situations, etc. 6. Transformed InteractionsSmart home technology is also changing how we interact with our homes. With the help of voice-activated personal assistants like Google Assistant and Amazon Alexa, you can control smart home devices with just your voice without having to interact with them physically. In addition, some smart home devices can also respond to your gestures, facial expressions, and other non-verbal cues, thus, making your interactions with them even more seamless and intuitive. Final WordsHowever, with all the convenience, security, and comfort that smart home technology offers, it also comes with some potential risks. For example, the increased connectivity of smart home devices can make them vulnerable to hacking and other security threats. In addition, the collection and analysis of personal data by smart home devices can raise privacy concerns, especially if the data falls into the wrong hands or is used for malicious purposes. To mitigate these risks, it's important to take steps to ensure the privacy and security of your smart home devices. This can include regular software updates, strong passwords, and restricting the amount of personal data shared with smart home devices. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
In India, tenancy laws tend to favour tenants and it differs from state to state. But no matter what, there are also many grounds for a tenant to get evicted by their landlord that are common in most state laws. Eviction is a complicated and time-taking process, and in most cases, the landlords are unaware of the rules and regulations governing lawful evictions. In this article, we will discuss the eviction process in India.  A quick overview of the Landlord-Tenant relationshipThe landlord-tenant relationship is a legal and financial agreement between a property owner (the landlord) and an individual or entity who occupies the property (the tenant). The landlord provides the tenant with a space to live or work in exchange for payment, usually rent. However, a dispute may arise between the two parties for various reasons. One of the most common issues is the non-payment of the rent by the tenants. In such cases, the landlord may take legal action against the tenant through eviction. But first, let's understand what eviction means and how the process can be carried out in India What is eviction, and when does eviction occur?To put it across in simple words, eviction is the legal process of removing a tenant from a rented property. Various state-level rent control laws govern the process of eviction, and both tenants and landlords must be aware of their legal rights and responsibilities to avoid any disputes or legal issues. Eviction occurs when the tenant fails to pay rent on time, causes damage to the property, uses it for illegal activities, etc. The landlord can also initiate eviction due to a breach of the lease agreement, the expiration of the lease period, or when a landlord needs the property for re-development purposes or personal use. It must be noted that eviction can only occur through a legal process, and the landlord cannot use force or harassment to remove the tenant from the property. What are the procedures that must be followed to evict a tenant under Indian law?As previously mentioned, the eviction process in India depends on the state where the rented property is located and is generally governed by the applicable rent control laws. However, in general, the eviction process includes the following steps: Notice to vacate: First, the landlord must issue a notice of eviction to the tenant, stating the reasons for the eviction and the date by which the tenant must vacate the property. The notice should be in writing and sent through a registered post or delivered in person. Filing a suit: If the tenant fails to vacate the property within the specified time period, the landlord can file a lawsuit for eviction in a court of law. Relevant documents, including the notice and the lease agreement, should accompany the lawsuit. Court Order: Once the suit is filed, the court will issue a court order to the tenant, informing them of the legal proceedings and asking them to appear in court on a specified date. Hearing: At the hearing, both the landlord and the tenant will have the chance to present their case and provide the evidence to support their claims. The court may also order an investigation for inspection of the property if required. Judgement: After considering all the evidence, the court will issue a judgement either in favour of the landlord or the tenant. If the judgement is in favour of the landlord, the court will issue an eviction order, which requires the tenant to vacate the property within a specified time. The eviction process takes a long time to complete, usually 1 to 3 months from the date the landlord sends the notice to the tenant until the date the tenant vacates the property. In some critical cases, these periods can extend even longer. Is it necessary for the landlord to refund the tenant's security deposit during an eviction?This differs from case to case and is influenced by the court's decision. However, if the tenant fails to pay the rent or causes damage to the property, the landlord may deduct a sum of money as compensation from the security deposit or refuse to refund it entirely. In some cases, the tenant will be required to pay additional fees to the landlord. Final WordsMany landlords complain about the difficulties they face when renting out properties to tenants who do not follow the terms and conditions of the agreement or fail to pay on time. So, the next time you run into a problem, you'll know how to handle it legally. Or let an experienced property management company handle such hassles for you. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
In Indian residential real estate, NRIs are one among the most important buyers and investors. They have always had a lot of influence on the Indian housing market, but never more so than in the last three years. According to a forecast issued by international property consultants JLL, the Indian real estate market will grow at 12% in FY22 - from $13 billion to $15 billion. The consultants further stated that NRI investors eyeing on property in India must act quickly if they want to capitalize on the opportunity to turn their funds into profitable investments. This article will briefly explore the property buying guide for NRIs and the types of residential properties they are most likely to buy in 2023.  Property Buying Guide for NRIs1. Documents Required for an NRI to Buy Property in IndiaIn order to purchase property, you must obtain and submit a few documents, so make sure you have all the required documents before you start the process. The important documents NRIs need to verify include: Title Deed (in the seller's name) Older Title Deeds (if any) Updated Encumbrance Certificate Mutation Extracts Tax Receipts (building tax & land tax) Approved Plan Building Permit Occupancy Certificate* Completion Certificate* Commencement Certificate* Allotment Letter* Possession Letter* Share certificate* NOC from the society* NOC from local bodies* RERA registration* * only applicable in specific cases Also, checking past property documents (at least for the last 15-20 years) with the help of an expert will help you avoid future problems when buying a property 2. Documents Needed for Registration
Some states have specific paperwork; therefore, it's always better to hire a qualified property lawyer. Also, the property deeds must be checked thoroughly before making any decisions. Now, let's look at the types of properties that NRIs can buy in 2023 Homes NRIs Will Buy in 20231. Tech-Enabled PropertiesThe pandemic shed light on enabling technologies, including smart home features. In the past, people mostly evaluated smart home features based on comfort. Today they are also assessed on the scales of efficiency and safety. Smart homes require less human assistance and support to run efficiently. This is still considered important at a time when the memory of COVID-19 is still fresh in the minds of people. 2. Larger Living Spaces for Work and LifeMany NRIs who return from abroad have remote work arrangements with their employers and need home office spaces. People buying homes for investment already know that India has accepted remote and hybrid work. The tenants and potential buyers will expect a home with such facilities where they can incorporate all their needs. 3. Easy Accessibility to Daily ConveniencesAfter Covid-19, the desirability of a neighbourhood is directly proportional to the number of accessible conveniences. This is because many NRIs have benefited from a proactive local government that ensured a regular supply of groceries and daily staples to their homes, depending on where they live in a foreign country. Therefore, NRIs will place a high value on properties close to essential amenities and services because it is convenient and provides better quality of life. This can save time and effort when going to grocery stores, medical clinics, banks, and public transportation. Also, properties in such areas tend to have a higher demand which in turn gives higher rental potential, as they are more attractive to tenants looking for convenience. 4. Amenities and Facilities for HealthThe space NRIs have grown accustomed to in other countries cannot be taken for granted in this crowded country. In India, space is the ultimate luxury, not only within our homes but also around them. The possibility of going for a nice walk, jogging, or pursuing a sport in a spacious, uncrowded surrounding is a must-have for NRIs. Every NRI's wish list includes green open spaces and well-maintained roads with sidewalks. Previously, a gymnasium on the premises was optional. Today, working out in an unsecured public gym is now highly unlikely, just a few years back when public gyms were closed because of the pandemic. 5. Children's SafetyNRIs prioritise the safety of their children, regardless of age or current educational level. Therefore, they will place high importance on properties in areas with low crime rates, good safety records, and proximity to emergency services. Also, properties with child-friendly features like round edges, slip-resistant surfaces, railings on stairs and balconies and 24-hour security will be in high demand among NRIs. They would prefer properties that are close to the educational institutions or training centres. As parents they would make sure that they have safe commuting facilities for their children too. 6. A Strong Preference for Integrated TownshipsThe qualities NRI homebuyers and investors look for in Indian housing options, integrated townships have a clear advantage. They are the closest thing the Indian residential real estate experience can offer compared to a Western city's orderly, enabled, and dependable lifestyle. Integrated townships offer a generous slice of such a life. Both NRIs and resident Indians are making a conscious decision to prioritise the quality of life over all other factors. Final WordsEven after three years of uncertainties, there can be no room for compromise. That's the one thing that remained constant for NRI homebuyers: they expect the best. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
The real estate industry had been eagerly awaiting the release of the Union Budget 2023. On the 1st of February, Finance minister Nirmala Sitharaman announced the Budget for the year. Out of the many announcements the income tax relief is foreseen to help boost the real estate industry. Satish Magar, chairman of CREDAI National, said, "With the announcement of increased income tax limits and lower income tax rates, the middle class will have more disposable income." In addition, Savills, an international real estate company, stated post-budget that India's real estate sector will benefit in the long run due to the budget outlay placing greater focus on infrastructure development. So, without further ado, let's look at some of the highlights of the Budget 2023-24 that are likely to impact real estate:  1. Increased outlay for Pradhan Mantri Aawas Yojna (PMAY).According to Sudhir Pai, CEO of Magicbricks, the decision to increase the outlay for PMAY by 66% to over Rs 79,000 crore in Budget 2023 is a blessing for affordable housing. This decision provides the much-needed momentum towards the vision of "Housing for all". Also, by increasing infrastructure spending by 33%, the government is promoting economic growth through job creation and investment, both of which directly and indirectly has an impact on the real-estate sector. Residential demand in cities such as Bhubaneswar (12%), Coimbatore (27%), Jaipur (5%), and Nagpur (66%), among others, increased in 2022, and this initiative will boost the livability index and appeal of these cities even further. Overall, the Union Budget is positive and growth-oriented for the real-estate sector. 2. Implementation of multiple programs for green buildings and housingFinance Minister Nirmala Sitharaman listed 'Green growth' as one of the top seven priorities in the Budget. Sitharaman said we are implementing many programmes for green buildings, green equipment, and policies for efficient use of energy across various economic sectors. The policies in the Budget prove the government's commitment to sustainable development. These are aimed at using energy optimization across different sectors of the economy, reducing the carbon footprint, and creating ample green job opportunities. These initiatives are set to change how we live, work, and grow. 3. Urbanisation and infrastructure developmentThe Rs 10,000 crore investment in urban infrastructure development is expected to boost economic activity. Real estate is likely to grow as the local economy improves. The tier II and tier III cities collaborating with developers and funds have been proposed to increase commercial, residential, and retail development. Municipalities will also be supported in raising funds, which may have an impact on real estate. 4. Changes in the New Tax RegimeIn the new tax regime of Budget 23-24, the increase in tax rebate slab from income amount Rs 5 lakh to Rs 7 lakh may encourage investment in the affordable segment. According to Sajjan Jindal, chairman of ISW Group, increasing the income tax rebate limit by 40% from income range 5 lakh to 7 lakh will increase the purchasing power of the middle-income group, leading to more spending. Sanjiv Bajaj, President of CII, said the attempt to rationalise personal income tax rates is going to go a long way towards increasing disposable incomes. 5. Limiting the deductions from capital gains to 10 crore under Sections 54 and 54FOn February 1, 2023, Sitharaman proposed limiting deductions from capital gains on investment in residential properties under Sec 54 and 54F to 10 crore. Since ultra-luxury homes are especially located in the metro and tier-1 cities, the proposal is likely to have an impact on the market for such properties. According to Atul Goyal, CFO of Brigade Enterprises, capping the capital gains benefit for housing property at a maximum of 10 crore will have a negative impact on demand for ultra-luxury homes because capital gains above 10 crore will be taxable. Anuj Puri, Chairman of Anarock Property Consultants, said the proposal to cap seems negative for HNIs as previously there was no such cap. So, if one sells a house and the gains are more than 10 crore, the maximum benefit when investing in another property is up to 10 crore. Puri, however, stated that it wouldn't directly impact primary luxury housing sales, but it may impact the resale luxury market. Final WordsWith all these announcements being made during the Budget 2023, the real estate industry is set to soar high. The economy will focus more on infrastructure, providing better employment prospects for the youth. Here's to a more robust, developed, and growth in India. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
What is Estate and Estate Planning?Most people understand the term "estate" to mean something like a coffee estate or a tea estate. However, estate means when all your movable and immovable properties are put together, including investments in stocks, debentures, mutual funds, vehicles, gold jewellery, etc. And the purpose of estate planning is to organize and manage your financial affairs during your lifetime and plan for the distribution of your assets after death. It involves taking stock of your assets, determining the value of your estate, and deciding how you would like your assets to be distributed after your pass away.  What is a Will? How to write a Will?A will is a legal document that specifies how a person's assets should be distributed after death to their legal heirs or beneficiaries. To create a valid will, it should include the person's intention behind making the will, as well as their declaration of assets, debts, loans, etc. A person can also mention how to transfer the assets and include medical expenses if a minor child needs to be cared for. However, the will must be in writing and signed by the testator (the person making the will) in the presence of two witnesses. Who writes a Will?Anyone who can read and write in English or any vernacular language is eligible to write a will. The only condition is that the will should clearly declare the person's intention, asset identification, and distribution in an easy-to-understand language. In what ways can medical expenses be mentioned in a Will?A will is executed after a person dies, so it's normal to be curious about how medical expenses can be included in a will. To explain this, let's take an example from real life. A person named 'X' is in the ICU and cannot write a cheque. Plus, his account is not a joint account, so who will withdraw the money? Therefore, considering such cases, X can include his medical expenses in the will, where he can mention who will have the authority to withdraw the money in his absence. When is a good time to create a Will?When a person acquires his first property, he becomes eligible to make a will. Here, age doesn't matter. It's just like insurance: once a person starts earning, he takes insurance because his family depends on him. In the same way, when a person acquires his first property, he can create a will because if something happens to him, the will would legally authorise how his estate shall be transferred and handled. Secondly, a person who owns an expensive car can also create a will. This is helpful because if the person dies, the new owner can avoid all the paperwork hassles of the RTO (Regional Transport Office or Road Transport Office). What happens when somebody dies, and there is no Will?There are two types of inheritances: one is testamentary, and the other one is interstate. In the case of testamentary, there is a valid document which says who should get what and it's legally accepted. In the case of an interstate transfer, there is no document. Here, the succession laws come into play. In India, succession laws are based on religion. For instance, there is the Hindu Succession Act (applicable to Hindus, Buddhists, Jains, and Sikhs) and the Indian Succession Act (applicable to Christians, Parsis, and Jews). The Indian Succession Act also applies to inter-religious marriages registered under Special Marriage Act. At the same time, Muslim Personal Law (Shariat) Application Act applies to Muslims. Although the laws are clearly defined, it would be difficult to understand the distribution of assets. Therefore, it's always better to execute a will. Does a Will have to be registered?As per law, registration of a will isn't mandatory. However, not registering a will can lead to complications. Let's say Mr. X who lives in Bengaluru owns a physical property and has created a will that isn't registered. After his demise when his son Mr. Y takes the will to the Sub-Registrar's office, they ask him for a document to prove that he is the legal heir to Mr. X. In such a case, Mr. Y may have to get a family tree in Karnataka. Therefore, it's better to register a will to avoid all these complications. What is the process for registering a Will?This is a general outline of the process for registering a will in India:
What is a Probate? Does every Will have to be probated?Probate is the process of certifying a will in a competent Court. In other words, the Court will attach a stamp on the will. However, before attaching the stamp, the will undergoes a verification process, including verification of the testator, witnesses, etc. When everything is valid, the Court puts a seal, which gives the will evidentiary value. Probate is mandatory only in Chennai, Mumbai, and Kolkata. However, probate may be beneficial depending on the circumstances, like family disputes. What are the different types of Will?Typically, a will has two classifications: Unprivileged Will: A will executed by a common man. Privileged Will: A will executed by a member of the Indian Army, Indian Navy, Indian Air Force, etc. Such a will is often made under difficult or unusual circumstances. However, any person creating a will can include condition(s). For instance, if X has put a condition that his son cannot be a beneficiary until he (son) is 21, the will becomes a conditional will. Do liabilities also get transferred to the new owner?In short, yes. For instance, X is a father with two sons. X built a house for which he took a loan of ₹1 crore. Now X can include a condition in his will mentioning that he will clear 50% of the loan and the remaining 50% will be cleared by his two sons (25% each). What happens in joint property ownership if one of the partners dies and there's no Will?In case there's no will, every person in the family will have equal rights on the property of the deceased. For instance, if the property is still in debt, first and foremost, all the debts must be cleared. After clearing the debts, the family members will have to sit and talk about who should be the owner within the family. If A and B are two adult children in the family besides the deceased's wife, A and B must execute a 'release deed' in favour of their mother. In other words, A and B are surrendering their rights in favour of their mother. Is there any type of property ownership in which the rights transfer directly to the joint property holder?It all depends on how the deal is drafted. When two people buy a property jointly, the deal should include all relevant information, such as the ownership ratio, how much money each person contributed, etc. Although tenancy in common doesn't transfer rights to the other partner directly because, legally, all family members fall under tenancy in common. Also, there is another type of property ownership known as 'joint tenancy.' To learn more about this, it's better to consult with a legal professional. If a person dies and only has bank accounts or fixed deposits, is it necessary to create a will besides adding a nominee?Generally, the nominee gets the money because the bank is discharged from their responsibility. However, because the nominee is only a custodian or trustee, he/she will not become the sole owner of the funds. For instance, X has two sons, A and B, and the nominee on his bank account is A. If X dies, the bank will transfer the entire bank amount deposit (let's say 10 lakhs) to A. But, A can only keep 5 lakh rupees and give the rest to B. Are there any tax implications for inheriting a property?There is no inheritance tax in India. How does one execute a Will for mentally challenged or specially-abled dependent?In such a case, a will may not be beneficial unless the person has named someone as an 'appointing guardian' for his dependent. However, it's always better to set up a family trust to protect the rights of specially-abled dependents. How can NRIs create a Will?The succession laws in two different countries are different. Therefore, creating two different wills is better to avoid legal complexities. For instance, if an NRI staying in the US buys a property in the US, he must follow all applicable laws of the US. Now, if he wants to create a will for someone who stays in India, he needs to follow all the legal inheritance procedures of India. However, the UAE is one exception. In the UAE, after an expat creates a will, he must translate it into Arabic and submit it to the Court for registration. After registration, the will becomes valid. Is it necessary for an NRI beneficiary to be present in India when the Will is executed?If an NRI is a beneficiary, he/she is not required to be present during the execution. About Prop.AcademyProp.Academy is sponsored by PropertyAngel. Prop.Academy aims to inform and educate consumers about real estate affairs and upskill professionals on the latest tools and best practices.
In this video, Sapna Chandiramani, Co-founder of PropertyAngel, speaks with Vijay Upendra, Estate Planning Consultant, PropSeva. The landscape of the investment world is changing, and many urban citizens are investing in farmlands. This trend is gaining momentum, and there are specific reasons for it. Owning farmland is an advantage over any traditional real-estate investment because agriculture is a tax-free source of income, which can be an alternate source of income for urban dwellers, i.e., passive income. It's an opportunity to connect with nature and improve the overall ecosystem; a weekend getaway to relieve stress; appreciating asset value, i.e., a higher "Return on Investment". Therefore, it is a long-term investment. Also, various state governments in India have now reduced restrictions on non-agricultural people owning agricultural land, opening up the market for new investors.  The Inception of Managed FarmlandsWhile investing in farmland is beneficial, there are also challenges to owning and managing farmland for the urban population. The most difficult challenge is identifying the right size of land in an ideal location while staying within your budget. Later on, soil quality, water resources, legalities, labour, power, farming operations, and finding a nearby market to sell your produce will be other challenges to face. Managing any farmland requires a lot of attention and knowledge, which an average urban dweller who works and lives in any metropolitan city might not have. To fill in this gap and make the dreams of urban farming enthusiasts a reality, the concept of "Managed Farmlands" has come into existence. What are Managed Farmlands?Managed Farmlands are the farmlands owned by a person or an establishment but taken care of by a professional agency. Managed farmlands are a profitable investment because they are based on rising land values and crop harvests. At first, a professional farm management company acquires well-curated farmland in an ideal location, with a focus on water bodies. Later, the basic infrastructure is put in place, and the large farmland is divided into smaller farms of different sizes. What are the Benefits of Owning a Managed Farmland?
What are the Key Points to Keep in Mind And the Legality Involved Before Investing in Farmlands?It is safe to say that investing in agricultural farmland in India is a good way to earn. Farmland has proved to be a good long term investment that pays off in the far future. It also has a high return of investment and is one of the assets that changes the least because of inflation. The quality of the land also affects how much farmland is worth. Thanks to advances in technology, it is now possible to keep the quality of the land and the fertility of the soil, which will keep farm values going up for the foreseeable future. Now obviously Managed Farmland has several benefits, but there are things you need to keep in mind before investing. Here are some of the pointers that you need to look out for -
Why Managed Farmlands are a Better Investment Prospect?A managed farmland is a long-term system in which people can invest in a farm plot and then sit back and watch their assets grow without having to manage it all by themselves. Professional farm management companies are in charge of taking care of people’s farms and the crops they grow. So, the yield is sold and the money from the sale is split between the owner of the land and the farm management firm. Mixed Farming, coffee, tea plantation, wood plantation are some of the main types of assets that managed farmland have. Investments grow without having to take care of the land themselves. There is no doubt that the value of the land will keep rising up. When a person invests in farms, not only does the value of their land keep increasing but also the area has a cover of plants that keeps growing back. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
Big-ticket luxury real estate deals are rising in India, especially over the years 2020 to 2022. Several Billionaires and Millionaires, among other ultra-high-net-worth individuals and high-net-worth individuals, have been investing in prime real estate throughout the country. These purchases often make headlines because the properties are extravagant and cost crores of rupees. So, in this article, we will explore the real estate purchases of Billionaires and Millionaires in 2021-2022.  Big-ticket Purchases by Billionaires and Millionaires in 2021-2022Nandan M NilekaniNandan M Nilekani, the co-founder and chairman of Infosys, established the Nilekani family trust. According to the reports, the NRJN Family Trust has bought a property in the Koramangala area for Rs. 59 crore. The property is located on the 3rd Block of Koramangala Extension and has a total built-up area of 4,200 sq. ft. The sale deed showed that the plot area is around 9,600 sq. ft. Entrust Family Office Legal and Trusteeship Services Pvt Ltd represented the NRJN Family Trust. The deal was registered on September 26, 2022, and Nilekani and Rajmohan Krishnan are the authorised signatories on the sale deed. In April 2022, the NRJN Family Trust bought a property for Rs. 58 crore in the same area. The property is 9,600 sq. ft. in size and has a built-up area of 3,082 sq. ft. Radhakishan DamaniRadhakishan Damani, one of India's richest billionaires, owns the second costliest property in South Mumbai. In one of the biggest real estate deals in 2021, he purchased a 5,752 square metre unit for a mind-boggling Rs. 1,001 crore! Damani quickly moved up in the billionaire rankings, thanks to the surge in DMart share prices throughout the lockdown. He was also the 8th richest billionaire on the 2021 Hurun Rich List, with an estimated net worth of $14.5 billion or roughly Rs. 1 lakh crore! Damani already owns a luxurious home in South Mumbai's Altamount Road. This property was jointly owned by Varsha Mehta, Saurabh Mehta, and Jayesh Shah previously. Damani paid a whopping Rs. 30 crore in stamp duty alone for his purchase on March 31, 2021. Gopal SrinivasanGopal Srinivasan, Chairman and Managing Director (MD) of TVS Capital Fund, bought a luxury residential property in Bengaluru worth Rs. 15 crore. The property is located at Rest House Crescent Road and covers a total area of 6,336 square feet (sq. ft.) with 2,000 sq. ft. of built-up area. According to the deed document, it also includes a dwelling house, outhouses, and a garage. Kaveri Warriar, Vijay Warriar, and Sudha Thimmaiah are the sellers. The sale document mentions that the transaction happened in November, and the buyer paid Rs. 73 lakh in stamp duty. Anil GuptaAnil Gupta, promoter of KEI Industries Ltd, a housing wire and cable manufacturer, has bought a 2,000-square-yard property in Delhi's posh Shanti Niketan area for Rs. 140 crore. The sale deed was executed on October 8, 2021, and the buyer paid a stamp duty of Rs. 8.40 crore. KEI Industries Ltd was founded in 1968 as a partnership firm. In 1992, it was converted into a public limited company and listed on the stock exchanges in 1995. The company manufactures various types of cables, house wires, and stainless steel at its manufacturing facilities in Chopanki, Bhiwadi, Pathredi, and Silvassa. Sukumar SrinivasSukumar Srinivas, the owner of Shankara Building Products Ltd, bought two properties in Bengaluru's posh Koramangala area for Rs. 44.60 crore. Srinivas sold over 10 lakh company shares for Rs. 75 crore in an open market transaction on March 21, 2022. According to NSE block deal data, he sold 10 lakh shares at an average price of Rs. 755 per share. This brought the total deal value to Rs. 75.50 crore. On 4th May 2022, the first property worth Rs. 22.30 crore was registered. The plot measures 5,400 sq. ft. and has a built-up area of 1,800 sq. ft. According to the sale deed, he paid a stamp duty of Rs. 1.24 crore on the property. His wife, Parwathy Srikanth Mirlay, bought the second property. The total area is 5,400 sq. ft., with a built-up area of 2,172 sq. ft. A stamp duty of Rs. 1.24 crore was paid for the deal. On May 4, the property was registered. Deals like these are just the tip of the iceberg. Several other transactions are making headlines in the Indian real estate market, particularly among Indian billionaires and millionaires! Cheers to more growth in the industry ahead! About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
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