Tax Benefits to Homeownership Outweigh Risks

For people considering buying a home for the first time, things can be a bit intimidating. You just have to keep in mind the benefits far outweigh the risks.

There are many benefits to owning a home. Sure, there are the usual obstacles to get over. First, people don't want to put that much money into it, they'd rather just rent.

Also, they don't want to have to go through the lengthy process of buying the home and even searching for the right home in the first place. Then they don't want to have to go through the mortgage process and go into debt to get the home. While these are definitely disadvantages, the simple fact is that there are so many major advantages to owning a home that going through these steps ends up being well worth it.

Tax Benefits of Homeownership is most notable benefit to owning a home is equity. Equity is the value of the home. When mortgaging a home, your initial equity is the down payment you made on the home. As you make additional payments, your stake in the equity of the home rises (since the lender owns the rest of the equity). However, it is also important to note that equity also rises when the value of the home rises. This equity is solely yours; the equity of the lender does not increase. That is why many California homeowners are sitting on gold mines.

This equity can be used for valuable things such as home equity loans and home equity lines of credit. These are low interest loans with the home used as collateral. Equity opens up many valuable new doors and is just one reason why owning a home is one of the best things you can ever do.

Another advantage is the tax savings. Every dollar of interest paid in the mortgage payments can be used as a tax write-off. This can be a very considerable amount, especially early on in the loan when the interest is front-loaded, and it can save you a lot of money in taxes.

Of course, it really comes down to the simple fact that you own a home. That home is yours and that with that comes a certain pride. Owning a home is one of the most important things you will ever do. Don't pass it up, don't choose to rent if you don't have to. There are just too many advantages of owning a home to pass up.

{Source: http://ezinearticles.com/?Benefits-to-Homeownership-Outweigh-Risks&id=225394}

Checklist of property documents for buying resale property

You might be running out of patience while planning to purchase property. Sometimes getting the property possession may take 3 to 4 years. To avoid such delay, many opt for buying resale property. But, since you would be buying an already used estate, you would have to go through proper checklist of property documents for buying resale property.

Important Checklist of property documents for Buying Resale Property

Check whether the property is included in the government registry or not. Make sure that all the documents related to the registration of the property are available. You may also take help of legal experts to verify the authenticity of the papers.

Finding the debt status is an important part of checklist of property documents for buying resale property. If the property is under mortgage, then check its debt status and whether it has approvals from authorities or not. Also, ensure that the property tax, water charges, society tax and electricity bills are paid by the previous owner.

Since the property you are buying has already been in use for years, you may further need to invest money to repair all the wear and tear of the structure. So, plan a budget according to the money you would have to spend in renovation.

The cash component is another important checklist of property documents for buying resale property. In India, the sellers force buyers to make the payment mainly in cash. You are recommended to avoid huge sum of cash payments. The seller insists for cash payment in order to evade tax on the gains of property sell. On the other hand, if your cash component of the payment increases, you might not receive home loans on the full price you are actually paying.

You are recommended to make sure that the building is built according to the plans and layouts approved by authority. The seller should provide you with certificates of completion, occupancy and NOC or No Objection Certificate.

In case the age of your property exceeds more than 10 years, you are recommended to check the quality and the durability of the building. Good quality building structures are necessary for safe living and would also save you from spending large sums of money on repair and maintenance.

You might be running out of patience while planning to purchase property. Sometimes getting the property possession may take 3 to 4 years. To avoid such delay, many opt to checklist of property documents for buying resale property. But, since you would be buying an already used estate, you would have to go through proper checklist for buying resale property.

{Source: http://ezinearticles.com/?Checklist-For-Buying-Resale-Property&id=4350522}

Checklists of Property Documents that you need to hand over to the buyer before you sell your house

One of the mandatory and crucial steps at the time of selling apartments is essentially the checklist of property documents that needs to be kept handy. As you transfer your house into another owner’s hands these documents also needs to be transferred to them.

It is not the case with Thrissur alone, but for a matter of fact, in every other Indian state, the document verification process is one of the grilled up tasks that complicates the process of selling flats or apartments as the government emphasizes a strictly legal, statutory and regulatory property transaction strategy.

As per certain researches and statistical surveys, it is quite clear that around 80% of the sellers are negligent of the importance of getting all the property documents verified and are left in the dark, which actually delays the sale process when they plan to sell. Buyers have done their part of research when they come to buy the flat from you. You need to be prepared to produce these documents whenever buyers demand to make the selling process smoother.

But most of the time both the buyers and sellers have minimal information on the importance of getting the property documents verified. So, there are certain things that buyers and sellers need to know before they plan to sell or buy a house.

 We have decided to help you with the property transaction process by sharing the checklist of property documents – Part I that needs to be handed over to the buyer regardless of whether you are selling 1 BHK or 3BHK apartments in Thrissur:

1. Title Deed / Conveyance Deed/ Mother Deed/ Sale Deed:

Conveyance Deed or Sale Deed forms the major legal property document that marks the evidence of sale as well as indicates the transfer of ownership of property from the seller to the buyer. Also, it is one of the crucially important documents that is essential for resale by the buyer in future proving his ownership over the property. A sales deed acts as per the sale agreement which is drafted according to the terms and conditions of property transaction as agreed by the seller and the buyer. Once the sale agreement is executed, instantly you can proceed with the execution of the sale deed.

No matter whether you own a 1 BHK or 3BHK apartments in Thrissur you need to mandatorily get the Sale Deed registered from the Sub Registrar office that comes under the jurisdiction of the area in which the property is located and hand it over to the buyer.

Once it is handed over to the buyer they have got only 4 months of time to get the Sale Deed registered from the date of execution or else it is liable to be fined or it becomes invalid.

It is mandatory to produce all previous Sale Deeds in original during:

Property Purchase

Home Loan

2. RTC Extracts:

It is mandatory to define the “Title of the land” to identify whether the property was constructed on the converted land. For instance, it provides information on establishing “whether the land that was previously used for agricultural purposes has been transformed into commercial one”. Generally, RTC Extracts are issued by the Village Accountants.

All the information related to the land that includes the land area extent with the survey number or sub-survey number, the extent of Kharab land, the names of the present and previous owners, their corresponding holdings and also the names of the tenants are contained in RTC extracts. Also, it contains other relevant details like the kind of soil/crop, any previous mortgages that was made, charges exercised on the properties contained on the land, the land’s status that implies whether it is Inam land or not, in case of land conversion the exact date (situations in which agricultural land is converted for non-agricultural usage) & the conversion order number, and also any related references to mutants or inheritance with proof certificates that indicates the transfer of property ownership, etc.

It is not a mandatory document and there is no need to produce it in original though it needs to be produced when you are selling your house.

3. Khata Certificate and Extracts

Khata is a Hindi word that originally means “account” though it might be known in different names across different states. With regard to the property transaction, Khata represents the account of a person who holds property in the city. Khata indicated in this context are of two types: the Khata Certificate and the Khata Extract. Khata certificate serves 2 main purposes:

Registration of a new property

Transfer of a property

This approval is provided by the Assistant Revenue Officer of the respective area.

The account is entered in the records maintained by the local municipal committee which indirectly confirms that the apartments or flats have been constructed according to the approved plan.

It is mandatory to obtain a Khata Certificate for the registration of your new apartment after completing the tax payment process. The Khata Certificate is issued stating that a person “X” is the owner of a property No “N”. This certificate is mandatory when you apply for:

Water & or electricity connection

Trading and building license.

Also, the Khata certificate that is issued will be handed either to the owner or his immediate family members.

Khata Extract as the name suggests extracts information such as the name, size of the apartment, use of the apartment (commercial or residential purpose), annual value and also when it was last assessed from an assessment register and is mandatory while applying for trade license and also when you buy apartments or flats in Thrissur.

It is mandatory to produce it in original during:

Property Purchase

Home Loan

4. Mutation Register Extracts

Again the Mutation Register Extracts is required to define the “Title of the land” whether the property is located on converted land as in #2. It is usually issued either by the Tahsildar or by the Village Accountant. It provides access to the extracts from a mutation register or an inheritance certificate that contains the details of the previous owner, present owner, mode of acquisition of the property, the total extent of the property and also an order stating that the Khata account of the property was transferred into the ownership of the present owner, that is in your name. It is not mandatory to produce it in original though it might be needed at the time of property sale.

{Source: http://www.tbpl.in/house-for-sale-thrissur/}