Things to Keep in Mind When Paying Rent to Relatives

There are various reasons family members allow relatives to stay in their homes. Sometimes it is the way to ensure security of second property as unknown tenants don’t take care of the home as their own. In some situations it is just a way to provide help of financially weaker relative who cannot afford high rent in metro cities. Whatever is the reason, you must be careful when paying rent to relatives.

Though it is more important for the landlords to be careful when renting out property to relatives as it can affect their tax rebate, as a tenant you should also pay attention to a few things. There are many real estate sites in India which talk about the preventive step landlords should take when renting home to a relative. Most of them are concerned about the tax benefits and ask the home owners to:

Structure the property in a way to prove it’s a rental property as in opposite situation it is considered personal use home

Ask for down payment and advance to avoid any problems in future

Clear all the things regarding payment of rent in advance to protect your relation from getting bitter in future

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What about the tenants living at a relative’s home? So here are some tips for those paying rent to relatives:

Rent should be as per the market trends: No matter how great is your relative’s house, you should always pay as per the market trends. Even if you are living in an area with the best real estate in India, you have complete right to pay reasonable rent. So make sure you first confirm the prices in market to get an idea of industry trends.

Enter into an agreement: Making things clear in advance is better than fighting over petty issues later. So like any other tenant ask relatives to make an agreement. Get everything mentioned in it clearly so that neither you nor your relative feels awkward about discussing the things.

Pay through legal banking channels: If you want to enjoy HRA tax benefits, try to pay rent through legal banking channels. You can either transfer the amount through net banking or can pay through cheque to keep payment record.

Keep records if rent is paid in cash: If you don’t want to get into the hassle of net banking or other methods and prefer paying rent in cash, make sure to keep records. You can either ask for a rent receipt or can get it written. It helps you when you file an ITR and claim for tax deduction on house rent.

If you explore some of the best property websites in India, you will definitely come across some posts on this topic. Being a tenant, you also need to be careful, and when staying at a relative’s house, paying attention to some minor things can save you from various issues in future. 

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Do green home builders get enough incentives in India?

The government is making efforts to create awareness on sustainable development and encouraging builders to focus on green homes. The government even tried to encourage them by allowing extra FAR (Floor Area Ratio). Noida would have a number of green building, had this scheme worked for the builders. It clarifies that this incentive scheme failed to motivate builders to focus on green and sustainable housing projects.

Not just Delhi, several other states also tried to boost green development through different policies. By visiting property websites of different states you can easily get an idea of this. Till then, you can have a look at some of the incentives provided by varied states here:

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• Developers in Noida and Greater Noida were allowed to get free 5% additional FAR on projects built on an area of 5,000 square meters by adhering to 4 or 5star GRIHA Rating.
• Similarly, Jaipur government also allowed builders to use additional 5% FAR free of charge by obtaining 4 or 5star rating form GRIHA.
• In Maharashtra, builders get up to 50% rebate on premium from the Pimpri-Chinchwad Municipal Corporation by getting GRIHA certificate on their projects. They also get 15% rebate on property tax.
• In West Bengal, builders and developers get additional 10% FAR on green building as per the provision under rule 69A.

Impact of these incentives

Though governments in these cities tried hard to boost development of eco-friendly homes, these schemed didn’t seem to work. Still, Realestate in india lacks expected number of green projects. ‘Green floor space’ in the country accounts for just 3 to 5% of total construction, which is too low against UK where around 40% buildings fall in green category.

Alone FAR cannot encourage builders to increase number of green housing projects. There needs to be some policies which are beneficial for both the homebuyers as well as builders. FAR is beneficial only for builders, but buyers and property investors usually have to pay more for green projects. Its cost is one of the biggest barriers in India. Just compare prices of green residential projects on real estate sites with normal housing projects and you will understand the difference.

As per Raj Gala Shah, partner at Zara Habitats states that the ideal incentive to encourage both the developer as well as buyer should be in terms of money and time. The government should speed up the approval process for green building to help builders save money paid as interest and to help buyers get possession of their dream home quickly.

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Budget 2017: What the real estate industry wants from Jaitley

The real estate segment has been tormented by many difficulties, incorporating delays in undertakings inferable from financing issues, entangled government diktats, misty records and land titles and deferrals in acquiring endorsements. The entry of the Benami Transaction (Prohibition) Act and the current demonetisation of high esteem cash notes, have added to the fleeting instability in the market. This makes the up and coming Union Budget 2017-18, all the more basic for the segment. "The up and coming spending plan must think about each conceivable obstacle and switch the negative estimations and current monetary speed.

This incorporates the elements that discourage purchaser spending, and additionally those that are making uncertainty and uncertainty in the brains of local and outside speculators," feels Ramesh Nair, COO business and universal chief, JLL India. He includes, "For the land division, the financial backing must have declarations that obviously show that the most exceedingly awful is over and that the legislature is devoted to kick-beginning a recovery in the part." Budget ought to give more investment funds to home purchasers Kishor Pate, CMD of Amit Enterprises Housing Ltd echoes comparative estimations. "Indian real estate needs a very shopper well disposed spending plan, this time around. The property sites in India are growing and it is providing essential information about the property market. The property website in India has different designs, costs and size available in the market.

The regular man needs budgetary consolation, to get off the fence and put resources into a home. This can be accomplished, by declaring unique home credit rates for first-time purchasers and updating the salary charge chunks, so that more reserve funds result," he says. As per Ajay Jain, official executive venture keeping money and headland gather, Centrum Capital, the financial backing ought to concentrate on giving sops, in the wake of thinking about the present business situation, and in addition swelling. "The present duty derivation restrict for lodging credits is Rs 2 lakhs. This is inconsequential, given the ticket sizes in urban communities like Mumbai, where most houses cost in any event Rs 1 crore. Henceforth, the legislature ought to expand the expense conclusion constrain for lodging credits," he keeps up.

Government ought to give speedier endorsements and additionally financing hotspots for realty Developers have more than once griped that their activities are subject to various government endorsements. Subsequently, delays in acquiring endorsements, brings about a situation where they cannot finish the venture inside its stipulated time. Henceforth, they demand that the administration must endeavor to give single-window clearances, to expel bureaucratic postponements.

A streamlined duty standard for property in India venture confides in (REITs), will likewise enhance the stream of assets into the part and advantage purchasers, they include. See additionally: Budget 2017: Reforms that the realty segment needs the most Clarity on GST structure required While more clarity on the GST structure is still anticipated, most designers think that its basic to present and execute the GST at the soonest. Clarifying the positives of GST, Jain says, "The land segment has been loaded with numerous charges like VAT, administration assess, stamp obligation, and so forth.

The usage of GST, will expel this assortment of expenses to only two – GST and stamp obligation. GSTs on the land segment will rely on the last duty rate. "GST could likewise prompt to lower consistence expenses and information costs for manufacturers, which thusly, could cut down the general cost to end-clients. The generally disorderly segment will see more noteworthy straightforwardness, once the Real Estate Regulation Act (RERA) and GST are set up and this will expand private value stream into the framework." Consult the specialists, before surrounding arrangements "It is impractical for any service, regardless of how all around educated, to have an all encompassing and sharp understanding into how every industry functions and what it requires to work ideally.

All significant ventures add to the nation's economy and just a more profound comprehension of every industry's flow, can bring about quicker monetary development. This is the reason the administration ought to counsel industry specialists and regard their recommendation, while detailing strategies," Pate closes.

Property website in India

Property sites in India has most recent data about the progress of the real estate market. It will support headway. There is data, which is given by the property merchants and developers. It is essential for the homebuyers in their property purchasing. It has data about the district and their preferred homebuyers to get property. The real estate market gives data sitting at ones place or home. It is unquestionably not hard to get data with simply help of a mouse. Propchill helpline: 7827456456