Real Estate

1232

Management of existing properties- investment

19 Oct, 2014

When an investment is made in property like a villa or an apartment; these need to be taken care of and ideally upgraded/ updated every few years.

Let’s discuss 5 aspects of your property which could increase its sale value:

1. Refurbishment of the property (For eg: layout , design , color scheme, utility value, replacement of old fittings and fixtures to give fresh , clean feel and look): If the buyer feels that the house looks and feels new, the chances of your getting a little extra amount is higher. Your small investment can make a big difference.

2. Select your real estate agent whom you trust and once that is done do not list your property directly or with multiple agents. This might affect your negotiation stand and the market value of your property.

3.Once you get an offer for the expected / quoted price do not get tempted to increase the price as this would lead to buyer's and agent's not showing priority interest as there is no certainty on closure. 

4. Understand tax implications before the sale which will help you to make the transaction smooth. Understanding if there would be short term/ long term capital gains will help you plan how you could ensure that you take advantage of the tax breaks that are offered. For example: If there are only a few weeks for the property to be converted to long term, it might be worthwhile to wait for that period.

5. Have a plan as to what you wish to do with the income received from the sale which will help you invest wisely. If you need to invest in capital gains bonds/ another property- whether the entire sale amount needs to be invested or only the capital gains- these should be discussed with your Chartered Account even before the sale is made.

Shweta Jain, a Graduate of Business Management from Jain College and a CFPCM to boot, brings excellent organizational and management skills to the table. She is in charge of the financial planning for our clients and spreading financial literacy.

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