Real Estate Maximum is a unique magazine that brings you offers from builders, news of the real estate market from experts, tips on generating income from prudent investments, apart from the regular updates of the Ahmedabad real estate market. The valuable information is sure to benefit anyone who is buying, selling or investing anytime in the immediate future.

1. Issue 01 – October 2013
REAL ESTATE MAXIMUM
Real Estate Regulatory
bill will bring Oligopoly
in the Sector

4. RE/MAX
Contents
Advertorial 05
Hot Properties For Sale
and Rent
11
Real Estate regulator bill will
bring oligopoly in real estate
sector 15
Ahmedabad Real Estate
Market 17
Technology Article
18
Taxation and Vaastu Tips
19
HonoraryEditor : Manan Choksi
Published by
: Madhuvan Space
Management Pvt. Ltd.
Circulation
: Tanmay Mehta
+9171727100
Volume
: 1
Issue
: 1
Regd. Office :
G5, Block A,
Safal Profitaire,
Corporate Road,
Prahladnagar,
Ahmedabad -15
www.realestatemaximum.com
info@realestatemaximum.com
Disclaimer: This magazine is for private circulation only.
The data published in this magazine is based on the inputs provided by various sources. The publisher, printer and the Editor
do not guarantee the authenticity of correctness of the data
published herein.
Printed and Published by MSMPLat Ahmedabad.
4
Editor’s Message
W
e are happy to publish this first
magazine at the time when India
celebrated its 67th Independence
Day and Real Estate Regulatory Bill
is just round the corner to help Real Estate Industry
The Real Estate Regulatory Bill, when enacted into
law, will ensure that home or property buyers get
timely possession, and as per the specifications promised by developers, say realty firms and consultants.
Besides, it will improve the image of the realty sector by bringing in transparency. The bill will pave the
way for providing the much needed transparency by
seeking to regulate the hitherto largely unregulated
housing sector in India.
However, industry experts highlighted that the bill
does not provide relief to builders in getting faster
approvals for.
The ambit of the proposed law is quite large and
seeks to cover all major private residential developments across the country as the bill applies to all projects over 4,000 square meters.
Real estate agents will also be asked to register
with the regulator, a move that is expected to help
in curbing money laundering. The bill that seeks to
provide a uniform regulatory environment to the sector was earlier opposed by private developers but the
government stuck to it on the argument that it will
infuse transparency.
It has provisions under which all relevant clearances for real estate projects would have to be submitted to regulator and also displayed on a website
before starting construction.
The bill has tough provisions to deter builders from
putting out misleading advertisements related to the
projects carrying photographs of the actual site. Failure to do so for the first time would attract a penalty
which may be up to 10 per cent of the project cost
and a repeat offence could land the developer in jail.

5. REAL ESTATE MAXIMUM
Wishes from RE/MAX MGM on a launch of Real Estate Maximum
I
t’s a matter of great pride that a magazine is being
its franchisees are active and working with Real Estate
launched for the people of Gujarat, especially de-
buyers and sellers with most pr fessional manner than
dicated to Real Estate trends, news, listings and
any other brokers.
projects. The name of the magazine, Real Estate
MAXIMUM denotes that it will be covering maximum
coverage of Real Estate happenings.
This magazine would be focusing on giving all its
readers monthly updates on various aspects of Real
Estate in India and what is happening globally which
affects our Real Estate trends.
To my mind Real Estate regulatory bills is a first step
towards empowering Real Estate Consumers and their
rights will be protected and now only professional and
ethical builders will be trusted.
RE/MAX MGM hopes to capture more market
Manan Choksi,
share in Ahmedabad Mumbai and Pune market where
R
Regional Owner, RE/MAX MGM
eal Estate Maximum – A Real Estate Maga-
Indicates which property sectors offer the best oppor-
zineis a monthly series of trends and fore-
tunities and which ones to avoid.
cast publication that reflect the views of
leading real estate executives. Real Estate
Explains how the economy and concerns about
credit issues are affecting real estate.
Maximumprovides an outlook on real estate invest-
Discusses which metropolitan areas offer the most
ment and development trends, real estate finance and
and least potential. Describes the impact of social and
capital markets, property sectors, metropolitan areas,
political trends on real estate.
and other real estate issues.
Each issue of Real
My best wishes to Real Estate MAXIMUM
Estate MAXIMUM:
Tells you what to
where the best opporElaborates
capital markets,
ding sources and
flows of equity
and debt capital.
on
expect and
tunities are.
trends in the
incluAashil Patel,
Regional Owner,
RE/MAX MGM
5

6. RE/MAX
Welcome to New Franchise Owner
RE/MAX Mumbai Gujarat Maharashtra proudly welcomes
Mr. Munish Gupta as a Broker Owner of RE/MAX DREAMZ. RE/
MAX MGM wishes him all the best. Mr. Munish Gupta has been
a most successful broker Associate in India and now he has
started a new journey as a Broker Owner.
The Broker Owners of RE/MAX Gujarat are meeting twice
in a month at Regional office over a breakfast early in the
morning to discuss various issues and suggestions to grow the
RE/MAX network. They discussed marketing and recruitment
related queries among each other.
The inputs and suggestions by franchise owners help everyone conducting their business more effectively and spread
services of RE/MAX to more and more people.
RE/MAX MGM has started a new initiative of marketing
in form of NO PARKING boards in Prahladnagar, Vastrapur and
Bodakdev areas. These boards have got tremendous visibility
and spreading brand awareness of RE/MAX
ONLINE TRAININGS: In August 2013 RE/
MAX MGM regional office gave online training for How to Break Bread with Customers,
The Attitude of Peak Producer, Professionally Serve Every Listing and Managing Your
Time and Productivity.
All the trainings given by RE/MAX MGM
are available on slidshare.net and YouTube
video channel. Anyone can take advantage
of the same and learn many real estate topics for self-development which ultimately
helps service clients better than any other
real estate brokers.
In ONLINE TRAINING IN JULY 2013
four topics were covered namely CREATING
REFERRALS, WORKING WITH BUYERS – THE
REFERRAL WAY, WORKING WITH SELLERS,
and SETTING SMART GOALS.
6

7. REAL ESTATE MAXIMUM
Master Franchise Show Participation by RE/MAX MGM in
Mumbai
A tips shared by Mr. Anand Choksi, Broker Owner of RE/
MAX ADVANTAGE Ahmedabad gave tips on suceesful real
estate investing in a houseful Seminar at Rajpath Club Ahme-
RE/MAX MGM participated in The Master Franchise Show
dabad with all ears eager to listen to magical orator . Many
which is the premier event in master franchising, attracting
clients and investors attended the seminar by spending their
the most successful multiunit / Brand operators, Global
valuable time and make this Seminar very successful! RE/MAX
MGM Congratulates Mr. Anand Choksi for such a great initiative.
RE/MAX MGM Congratulates
Mr. Vivek Parikh of RE/MAX
Metro on successful completion of 3 years in RE/MAX Real
Estate Business
brands, and service providers in the industry. The exhibition had variety of International franchises outlining their
concepts and business operations. Master Franchising allows
people or corporations to purchase the rights to sub-franchise
within a certain territory.
Mr. Manan Choksi, Mr. Aashil Patel, Mr. Sahil Shah from
RE/MAX MGM and Mr. Puneet Verma from RE/MAX India represented RE/MAX in this master franchise show.
Seminar on Successful Real
Estate Investing by Mr. Anand
Choksi
RE/MAX MGM heartily congratulates Mr. Vivek Parikh,
Franchise Owner of RE/MAX METRO for a successful journey of 3 years as a realtor with vibrant team of 14 broker
associates. RE/MAX METRO grandly celebrated the occasion
and invited everyone associated with them in last 3 years.
Moreover, Mr. Vivek Parikh gave RE/MAX METRO Branded
chocolates to its clients and well-wishers which was a very
unique idea liked by all. We wish them more successful years
ahead.
7

8. RE/MAX
Role of Technology in Real
Estate
Open House by RE/MAX Advantage
RE/MAX Advantage’s Broker Associate Mr. Ajay Sharma
organized an open House of Aishwarya Flat, a beautiful 4
BHK at Ambawadi on Sept 8, 2013 and got a good response.
All the broker associates of RE/MAX must go for open house
for their rightly priced properties for faster selling of the
same.
This Education Program was arranged by Thane Estate
agents associates of Thane for the real estate brokers and Sahil
Shah from RE/MAX MGM conducted the seminar and gave
presentation on the use of technology in real estate to make
effective use of their time and serve clients more efficiently.
RE/MAX Files Registration Statement for Proposed Initial Public Offering
RE/MAX, one of the world’s leading franchisors of real estate brokerage services, today announced
that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating
to a proposed initial public offering of its
common stock. The RE/MAX brand name
has held the number one market share
in the U.S. and Canada since 1999. The
timing, number of shares to be offered
and the price range for the offering have
not yet been determined. RE/MAX intends
to apply to list its common stock on the
New York Stock Exchange.
Morgan Stanley, BofA Merrill Lynch
and J.P. Morgan will act as joint book-running managers for the offering. Perella
Weinberg Partners is acting as advisor to
RE/MAX.
More details can be accessed
from http://www.remax.com/c/
about/newsroom
8

9. REAL ESTATE MAXIMUM
India is all set to take on Pakistan in their opening match at the ICC Cricket World Cup 2015 which is being jointly hosted
by Australia & New Zealand. With the RE/MAX Balloon soaring high above the Melbourne cricket ground, we all from RE/MAX
in India would like to wish the cricket team all the very best!!
Mr. Samir Chopra, Chairman Convention Committee, NAR
India giving opening speech at 5th Annual convention & Exhibi-
Sam Chopra on NDTV Profit discussing real estate trends
with other panelists in Property India program.
tion of NAR-INDIA. 1000 + top Brokers from across the country
attended the 5th Annual Convention of NAR India which included Speaker
sessions, networking, entertainment, educational
courses, referral
exchange program
and much more.
It was a great
networking event.
9

10. RE/MAX
RE/MAX franchising
At RE/MAX, it all starts with you. It’s about your energy,
ambition and leadership, backed up by an immense RE/MAX
support system and extensive tools and resources. As you
do your research, consider how RE/MAX compares to other
real estate networks in philosophy, services, brand awareness
and productivity. And think about the possibilities when you
combine your strengths with the power of RE/MAX.
When you join an established franchise brand like RE/
MAX, you hit the ground running with 40 years of operational
expertise and global recognition behind you. What’s more,
you’re armed with endless educational resources – both for
helping you recruit top agents and for bettering your agents
once they’re on your team.
Top 10 reasons to invest in a
RE/MAX Franchise
1.
The power of the RE/MAX name
2.
Recruiting and franchise support
3.
Worldwide real estate leader
4.
National advertising
5.
Entrepreneurial approach
6.
On-demand education
7.
Technological edge
8.
Powerful lead generation
9.
Business specialties
10.
Everybody wins
10

11. REAL ESTATE MAXIMUM
RESIDENTIAL Properties for Buy / Sale / Rent Ahmedabad
4 BHK Fully Furnished, Luxurious
Apartment for SALE, Near
Marriott, Satellite, Ahmedabad.
Gujarat.
Contact :Aja J Shah
RE/MAX Metro
Total : 310 Sq. Yds Apartment
Fully Furnished Apartment
A designer hi-end apartment
Two allotted Car Parking
A KingsizeVillla - with 1500 sqyds
of a beautiful Villa. It already
comprises of a huge portico, a
large Living area, Drawing hall, a
Study, floor to floor elevator, full
size kitchen & store, 4 Bedrooms
all with attached WCs/Baths etc.
The lux bathrooms are provided
with lifestyles of Jacuzzi, Steam &
Sauna.
http://www.remax.in/505004003-171
Call +91-9687274881
Contact:ParveshGirgla
RE/MAX Aad Realty
http://www.remax.in/505026004-138
Luxurious Bungalow on sale in
Sec.19 – Gandhinagar
1 Hall, 4 Bed Room all are
with attach toilet, 1 Children
Room, 1 Kitchen, 1 Pooja Room,
Basement Home Theater, Servant
RoomGarden, Privet Parking, V.VIP
Area
Call +91-8238002325
Contact:SirazPadhiar
RE/MAX First Choice
http://www.remax.in/505031001-28
5 BHK Bungalows for Sale at
Shrushti, Thaltej
Area: Built Up: 3690 Sq.Ft.
Plot: 2169 Sq.Ft.
Home theater room
2 Car Parking, Garden
Security, Park, Water Storage
Private Terrace
Only 9 Bungalow Scheme
Call +91-8140007771
Contact : Sameer Sood
RE/MAX Realty
Solutions
http://www.remax.in/505023013-24
Call +91-85111 14115
11

12. Commercial Properties for Buy / Sale / Rent Ahmedabad
Fully furnished corporate house
basement+3 floor is available
for sale, S G highway, bodakdev.
Total Plot area of property is 6152
Sq.Ft and building comprising
of Basement, Ground Floor, First
Floor, Second Floor having total
built up area 12304 Sq.Ft
Contact :Narendra Barot
RE/MAX Advantage
http://www.remax.in/505017038-29
For sale 3 bhk commercial
apartment of 1305 sq.feet.
Call +91-9909935396
Contact :NishantChavda
RE/MAX ADVANTAGE Plus
Main BRTS road touch.
Presently used as commercial
office.
http://www.remax.in/505033008-2
Main Road Touch property
available on RENT
Call +91-9099916504
Contact: Munish Gupta
RE/MAX DREAMZ
Good for spa, boutique etc.
ON C G Road, Ahmedabad
http://www.remax.in/505034001-19
Ground floor showroom on rent,
Call +91-9825800169
Contact : Prashant Nair
RE/MAX PLUS
Prime Location of IIM-Atira road
New Commercial Building
http://www.remax.in/505029003-14
12
Call +919879559466

13. REAL ESTATE MAXIMUM
Commercial Properties for Buy / Sale / Rent Ahmedabad
Road Side Office Space for SALE
in New Bodakdev. Very useful
Space Suitable for restaurant
/ Doctor Office / Multipurpose
use. corporate office, call center,
it space, saloon, high end
educational/training institution,
diagnostic center
Contact: ParveshGirgla
RE/MAX Aad Realty
http://www.remax.in/505026004-268
3300 Sq.Ft. Fully Furnished
Office On fourth floor, for sale at
Maninagar
- Fully Furnished Office with
AC.- Located at a high end area
of Maninagar - Near to public
transportation
- Ideal for Institutes
Call +91-8238002325
Contact: AtitFozdar
RE/MAX RE/MAX METRO
http://www.remax.in/505004016-30
1380 Sq. FeetOffice for Sale in
Shapath-V, SG Highway,
Call +91-9825036406
Contact :Mukesh Patel
RE/MAX ADVANTAGE
Strategically located on SG
Highway, Very Closed to
Corporate Houses, Malls,
Multiplexes, Hospitals
http://www.remax.in/505017043-16
Total area 935 Sq. ft. Carpet Area
720 Sq. ft, approx.
Call +91-9909998635
Contact: PunitChavda
RE/MAX REALTY
SOLUTIONS
One allotted car park,
Unfurnished office for sale.
Ideal for office.
http://www.remax.in/505023011-91
Call +91 - 9601915605
13

14. Residential Properties for Buy / Sale / Rent Ahmedabad
Excellent 3BHK Semi-furnished
Flat for sale in Bodakdev
Contact: Rajan Talati
RE/MAX REVOLUTION
-2450 Sq. Ft.
-Very well maintained society,
-With servant room
-A/c fixed in all rooms,
-Very spacious rooms
-Allotted parking
http://www.remax.in/505032001-15
Luxurious 4BHK bungalows in
satellite
High-Class Independent 4 Bhk
Bungalow on Sale in nice and
peaceful residential area with
Luxurious Furniture and A/Cs. All
common amenities like hospital,
schools, markets, malls, famous
theaters are nearby this society.
Contact: Devansh Kothari
RE/MAX SYNERGIES
http://www.remax.in/505030013-15
3BHK Apartment for sale in posh
locality of DharnidarDerasar and
Lavanya society.
2 units on each floor.
It is located in one the prime area
of Ahmedabad city. Hospital,
Schools, Colleges, Auda Garden,
Restaurants and Food Courts,
Religious places.
Call +91-8866008590
Call +91-9879167987
Contact:Ashok Bhalani
RE/MAX VINTRON GOLD
http://www.remax.in/505019003-46
4BHK flat on sale at Corporate
Road Prahladnagar
Call +91 9099948600
Contact: Munish Gupta
RE/MAX DREAMZ
4500 sq.ft flat on sale at Corporate
road, Prahladnagar.Luxurious new
Built scheme.
http://www.remax.in/505034001-28
14
Call +91-9825800169

15. REAL ESTATE MAXIMUM
Real Estate Regulator Will Bring
Oligopoly in the Sector
- Manan Choksi
With the Union Cabinet approving
the Real Estate (Regulation and Development) Bill, the popular view is that
it will help property buyers benefit and
make the system more transparent.
The real purpose of the bill is to give a
reliability of the delivery of the project
once it is launched. While the bill has
its good intentions, precedents show us
how such regulations usually eliminate
the small builders completely.
Highlights of the bill:
1.
All residential projects having units
that are more than 4000 sqmts will
size of 4,000 square meters to follow a
areas of the city. Usually the local builder
fall in the ambit of this regulation.
few rules. Now such a regulation would
association has about 2,000 small and
2. All projects to be launched only
actually harm the big projects and buil-
medium builders which are now dor-
after all the permissions have been
ders would try to divide projects and do
mant – due to slow market conditions.
received for the construction of the
smaller projects only. However, a few
The SME segment has already got the
project.
factors like cost of construction, cost
burden of lack of reliable brand, inability
About 70% of all the money collec-
of marketing and the cost of providing
of having fixed salaried staff and inabi-
ted for the project has to be used
common facilities push builders to do
lity to invest in modern techniques of
only for this project.
larger projects only. The customer even-
construction. When such a builder wants
tually thinks that he should invest his
to scale up to large sized projects, he
hard earned money in a project which is
will need to comply with the regulator’s
regulated rather than an ‘unscrupulous’
provisions which will deter him further.
3.
4. Projects to be sold on carpet area
only.
5. Each state will have a tribunal for
redressal of complaints.
We have seen in stock market that
the back of small builders, who survive
In the past India has seen regula-
builders’ unviable project. This breaks
eventually all the small and medium
on a single scheme at a time.
sized IPO and brokers are eliminated
tors like IRDA, SEBI, TRAI, CCI, RBI, DGCA,
These days in a metro city there
from the market. It is said that SEBI regu-
ICAI. What each of the regulator has
is already a lot of consolidation with a
lations have closed more brokers than
undoubtedly brought in is the required
few names like Lodha, DLF, Hiranandani,
the slow market. So we have a handful of
“buyer benefit”. However, a side effect
etc. dominating the real estate sales
stock broking houses like MotilalOswal,
of such a regulator’s impact on the
market. Lodha claims sale of Rs. 10,000
Angel Broking, Share Khan, etc. who
market is consolidation. For example,
crores in the last fiscal which is more
own practically the lion’s share of the
the proposed real estate regulator in
than DLF’s sale of Rs. 9,000 crores in the
market. It is said that unless a broking
the new bill makes it compulsory for all
same period. In a Tier 2 city there are lot
house has 10,000 customers there is no
new projects which are more than the
of local builders operating in selected
viability to run the operation. Oligopoly
15

16. is the future of real estate sector, be it a
builder or a broker.
The proposed bill has a concept called “registered brokers”. Hence brokers
are also going to fall in to the ambit of
regulation, which until now has been totally out of regulation. Such regulations
in other countries have streamlined the
entire industry and have brought a lot
of transparency. Brokers slowly adapt to
the regulated world and start building
their own brand. This indirectly regulates
the secondary market also.
Even the CREDAI (Confederation of
Real Estate Developers Associations of
velopers and end users. Implementation
in both the houses in the monsoon
India) has ‘strong reservations’ according
of this Bill as it is will cause substantial
session. The bill most probably will get
to the Credai president C Shekhar Reddy.
increase in cost to buyers. In the long
passed uneventfully as officially only
He has expressed his concerns about the
run the bill has the potential to actually
the state of Chhattisgarh has opposed
License Raj re-entering the real estate
shatter the government’s initiative of
it. So the regulator will actually cause
world and unnecessary victimisation of
‘housing for all’ at affordable rates.
‘irregulations’ as it is not conducive to
members. It is important that the Bill
Right now the cabinet has passed
the small time brokers and is quite lop-
maintains equilibrium between the de-
the bill and it is scheduled to be tabled
sided in approach. Oligopoly seems to
16

17. REAL ESTATE MAXIMUM
Ahmedabad Real Estate Market:
A Major Realty Destination
Ahmedabad, business capital
ket of Ahmedabad, by 3.5% in the past
Ahmedabad is attracting invest-
of Gujarat, is the fifth largest city and
six months. Genuine housing projects
ments not only from India but from
seventh largest metropolitan area in
with equipped amenities have facilita-
foreign countries as well. The capital
India. It is located on the banks of Sa-
ted the Real Estate sector of this city.
value for the real estate in Ahmedabad
barmati River. The city of Ahmedabad
With multifold infrastructural develop-
in terms of the residential properties
has a flourishing textile industry, and is
ments in every sector, the Real Estate
is easily affordable unlike other tier II
sometimes called the Manchester of the
Sector of Ahmedabad is booming.
cities in the country. The presence of
East. The Times of India chose Ahmeda-
Some of the best localities to invest
the superior infrastructural facilities and
bad as the best city to live in India, in the
in Ahmedabad include Ashram Road,
strategic location of residential proper-
year 2012. The city is beautifully planned
CG Road, Navrangapura, Chandkhede,
ties drive investors towards Real Estate
and has a lot of free land. With constant
Motera, Ghodasar, Isanpur, Hansol ,Na-
Market in Ahmedabad.
growth in trade & commerce and the
roda, Bodakdev, Makarba, etc. The wes-
Numerous upcoming integrated
establishment of various industries, col-
tern part of the city is posh; it includes
township projects across the city as well
leges and firms in the city, Ahmedabad
areas like Ambli, Bopal, Solagam, Thal-
as the suburban areas ensure the conti-
Properties are generating huge demand
tej, Shilaj Road, Vastrapur, Ambawadi,
nuity in the boom of the Real Estate Mar-
in the country’s Real Estate Market.
Prahaladnagar, Bodakdev and Jodhpur.
ket in Ahmedabad. Healthy economic
The National Housing Bank Index
Those in pursuit of lavish, spacious
growth and infrastructural urbanization
of the Reserve Bank of India, commonly
homes must scan these areas out, and
have contributed to position the city of
known as, the NHB Residex demons-
this should be done quickly for prices
Ahmedabad as one of the major realty
trates a price hike in the Real Estate Mar-
may escalate sharply very soon.
destinations.
17

18. Vastu Tips for your Office
entry:
information associated with all of data items.
2. The best way to manage so many emails that you receive
every day is to segregate them in to two folders, “Pro-
1. Best entry for office is North entry going to South. A
cessed” and “To Process”. 80% of the emails you receive
Zero degree north entrance is the most coveted entry
are just for information and you are in CC. So after you
by Vaastu Standards.
read that email, you have to file it in “Processed” folder.
2. Second best entry is east going to west.
3. The office with west entry should be in the name of
female.
put in “To Process” folder.
3.
4. South Entry is not recommended.
is
You can write down all your to do things in
Tasks. It is very good way to remember a list of things to
do and you can tick them off once its done. The done
5. South west entry
office
Any email which requires action to be taken, have to be
not
at all good.
items are automatically hidden so it doesn’t clutter
your viewing area.
4.
Contacts are not just email address or
Such an office
phone numbers. You can put address, birth
should change
date, all kinds of numbers, picture of the
its entry or
contact and also write notes about the contact.
change the office.
6. The North or East
5.
Calendar is very important tool to manage
your day. If you have appointment with someone,
you can invite him to the meeting sending him an
entry should have a
email automatically from this interface. The best part
Ganesh tile at the top of the
is that if he accepts the meeting, his calendar is auto-
door.
matically blocked for that time.
7. The South or West entry should have Hanuman tile at
the top of the door.
6. Use a good image
for your email
signature. Each
Technology Tips
of the emails will
become a marketing of your
brand. This will
help you get free
advertising
of
your brand.
7. There is a Social
Connector which
puts the senders
photo from a social
media website like Facebook along with their email. So
easier for you to recollect who has sent the email.
8. You can configure multiple email accounts and get all
Outlook Tips to increase your productivity
the emails access from one place. You can also send
email from all such accounts and you can associate a
1.
Microsoft Outlook is not just an email client, but it is also
a PIM (Personal Information Manager) which records
your meetings, tasks, notes, contacts and a lot of other
18
different signature with that email address.
9. Last but not the least archive and backup your folders
regularly

19. REAL ESTATE MAXIMUM
5 Important facts about home loans
Though most of us avail home
2017, in the next 5 years. Total limit for
reversed.
loans, there are a few facts about them
this exemption will still be Rs. 1.5 lakh
Loan taken from family and friends
which are worth knowing. Let’s take a
per year.
look at two simple questions:
Under Section 24, you can claim
The above example explains the
up to Rs. 1.5 lakh per year of interest
real scenario. Therefore, you cannot
on your loan. You will be able to claim
claim the interest but deductions can be
this even if you want to take it from
claimed later on in 5 equal installments
your friends, parents or any other indi-
for next 5 years starting from the year in
vidual. However, in order to be eligible
which property is acquired or construc-
for claiming the principal amount under
ted. This tax deduction is available only
Section 80C, you need to avail the finan-
if the construction is completed within
1. What are the available tax de-
cial lending from some bank or financial
3 years from the end of the financial
year in which capital is borrowed.
ductions for your under-constructed
house?
Extension or renovation of your
house
2. Do you still get tax benefit from
If you are taking a loan for exten-
your home loan, if you have taken it
ding or renovating your existing house,
from a friend and not from a bank?
you can only claim the interest amount
Many of you might not be having
under Section 24 and not the principal
answers to these questions. To realize
under Section 80C. However, the limit
that one is ignorant is a great step to
in this case is only up to Rs. 30,000 for
Additional tax Deduction of Inte-
knowledge. So let’s try and explore
owner-occupied properties. If it is a
rest on loan taken for residential House
these new dimensions of home loans:
rented or leased property, or a second
property (New Section 80 EE)
institution.
home which is not a self-occupied pro-
Tax deductions for underconstructed houses
Do you know that you should have
In addition to deductions mentio-
perty, no maximum limit has been pres-
ned above, deduction in respect of inte-
cribed in this case and the tax payer can
rest on loan taken for residential house
take tax deduction of the whole interest
property is allowed up to Rs. 100000/-
a certificate of ownership and posses-
amount under section 24.
for the loan that has been sanctioned
sion of the house to claim tax under
Selling a house serving home loan
by the financial institution during the
Section 80C? Without complete and
If you sell your house within 5
period beginning on 01st April, 2013
proper analysis, investors presume that
years from the date of buying, all the
and ending on 31st march, 2014 sub-
they can claim for tax deductions of
tax benefits which you have claimed
ject to certain conditions mentioned in
their houses which are under construc-
under Section 80C will be added in your
the section.
tion and go ahead with the loans.
salary in the year of sale and termed as
Conclusion
Let’s take an example. Say Mr
Knowledge is power. Knowing
income.
Gupta bought a house on loan on 25th
For example, if you bought a flat in
these less-known facts about home
November, 2009. He paid a total sum
July 2011 and in next 3 years you have
loans will help you take better deci-
of Rs. 5 lakh as interest in the next 3
claimed Rs. 2 lakh under Section 80C,
sions. Informed decisions lead us to
years and obtained possession on 19th
this amount will become your income in
better results. And better results lead
November, 2012. He could claim this Rs.
the financial year in which you sell the
to progress, productivity and prospe-
5 lakh of interest in equal installments,
property and will be taxed accordingly.
rity.
which is 1,00,000 per year from 2013 to
However, the interest component is not
19