Understanding the Real Estate in Delhi

In simple word, Real Estate is someone’s interest in land. It can be either a leasehold or ownership interest. Basically Leasehold interest only exist when an actual owner of property (land) pass certain rights of the land to a tenant in exchange of money as rent.At another side of real estate, Ownership interest is the interest of an investor who is given the full right of land. The investor takes the whole responsibility of land like paying the taxes of land, claiming the losses due to the different natural disasters, legally using the land. If you have a home that you own, you are said to have an ownership interest in that home. But if you rent an apartment, then in real estate you are supposed to have leasehold interest.

The business of real estate is renting, selling or buying building, lands or housing .The property that includes land and all the resources available in it whether it is natural resources or buildings in it.

Real Estate in Delhi

In India, Delhi real estate is looked in context of the economic situation of India in wholesome. The Indian economy is boosting with growth rate of GDP 8.5-9% making a group of highly dynamical investor who have significant income. Most of the investor are highly concerned to invest in housing mainly in metro cities. As a result, there are enough residential units sufficient for the next decade, the price is believed to get increase 10-15% in coming five year. Since the salary is not going to increase within five years of this time, if any middle class family is planning to buy a house in real estate of India then they will end up paying their 20 years of salary in order to have their own house. That is very high price to be paid in compare to any of the western part. The lower middle class family with end up looking for rented houses due unaffordable housing resulting the pressure on rental. Thus, the government and the tax office needs to look after and control the selling part in real estate.

Major development of real estate in Delhi, compare to properties in ahmedabad, area is the migration of people to the capital. Since Delhi is the commercial center as well as center of bureaucratic power of North India. Due to the development of different service industries and job opportunities in government sector has resulted the migration and raise in economy of Delhi. Thus to meet the demand of housing of migrated population and office space, it has led to establishment of National Capital region which includes National Capital Territory of Delhi along with selected urban area from the neighboring states of Haryana, Uttar Pradesh and Rajasthan. This region scales total area of 34144 Kilometers.

Out of the numerous regions of National Capital, Noida and Gurgaon has become the micro –market to Delhi. Many investors’ destination has been this satellite town to start real estate activity due to the connectivity of road, availability of large lands, access to talent pooled

Main Categories of real estate in India:

Condominiums

Builder flats

Co-operative Housing Societies

Chawls

Villas

Kothis

Havelis

Independent floor

Lal Dora

Information when looking for Waterfront Properties in the Bahamas

Properties in the Bahamas

Are real estate agents and brokers licensed in The Bahamas?

Yes; brokers and agents are licensed by taking a written test administered by The Bahamas Real Estate Association (BREA), which is an international member of The National Association of Realtors.  Many BREA members hold various accreditations, but the public is urged to ask for and only use the services of brokers and agents who are BREA members.

How do you establish residency in The Bahamas?

There are two categories of permanent residency in The Bahamas.  The categories are permanent residency with the right to work and permanent residency without the right to work.  The government of The Bahamas has set specific guidelines that allow for non-Bahamians to establish permanent residency in The Bahamas.

How long can you stay in The Bahamas without establishing permanent residency?

Visitors are permitted to reside in The Bahamas for as long as 8 months at a time provided they can show proof about their financial support for the time they’re in The Bahamas and have a return ticket to their home country or some other country that would be willing to accept them.  Visitors may reside in The Bahamas but are not allowed to engage in any kind of activity that would be considered gainful employment without first obtaining a work permit.

What costs are involved when buying and selling real estate in The Bahamas?

Typical sales of property are considered “gross” sales, in which it is assumed that the seller will be responsible for payment of the following costs:

  • If an agent is involved, commissions are paid as follows:  6% of gross sales prices on developed residential property and 10% of gross sales price on undeveloped property.
  • Government Stamp Duty is a tax on the conveyance of real property, payment for which is split between the seller and buyer.  The Stamp Duty tax is graduated and calculated as follows:  4% when the value of the consideration is less than $20,000; 6% when the value of the consideration is more than $20,000 but less than $50,000; 8% when the value of the consideration is more than $50,001 but less than $100,000; 10% when the value of the consideration is more than $100,001.
  • Seller’s legal fees for a sale or purchase are based on the property value and are generally 2 ½% of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and ½ % of amounts larger than that.

The purchaser of real property is responsible for payment of the following costs:

  • One-half (1/2) of the Government Stamp Tax as outlined above;
  • Purchaser’s legal fees, as outlined above, which include the attorney’s opinion on the title to the property and is considered the same as a title search
  • Court recording fees of $3.50 per page for property conveyances and other closing documents that have to be recorded;
  • Payment for the permit issued under the International Persons Landholding Act (if applicable).

If the property sale is considered a “net” sale, the purchaser will be responsible for payment of all of the fees outlined above.

Are there qualified architects, engineers and contractors available to construct residential or commercial property or make changes to existing structures?

Yes, there are many qualified individuals who were educated in the United Kingdom, Canada or the United States and have international accreditations.  A local Board of Architects licenses architects and the leading contractors employ only civil engineers with international accreditations or have certified engineers on staff.  Electrical, civil and mechanical engineers were also educated in other countries and are licensed by their respective local Boards.  These qualified professionals have international accreditations from the countries in which they attended school.  The construction industry is regulated also, but applies less rigorous standards regarding qualifications.

Can I use the services of a non-resident architect or engineer? 

Yes, but that person must obtain a permit to work in The Bahamas.  All building plans must be submitted to the Town Planning Board and the Ministry of Works document must be signed-off by a local, licensed architect or engineer.  Local procedures and customs vary, so it is highly recommended that you utilize the services of the local professionals.

Do I need approval to build on property or make changes to existing properties?

Yes, you need approval of the Town Planning Board and a building permit that is issued by the Ministry of Works.  A local architect or engineer can assist you with permits.

What are the costs of construction?

Most homes that are built in The Bahamas are made of poured concrete construction or concrete block and must meet very strict building codes.  Building costs vary widely depending on the building site and materials used.  The cost to build a modest house of concrete block with timber roofing and asphalt shingles is between $100 and $150 per square foot.  Average houses with top of the line features like marble floor tile or Corian countertops cost between $200 to $400 per square foot and you can expect to pay upwards of $500 per square foot for luxury homes with the finest finishes and details.  Costs for this type of home will be approximately 40% more in The Bahamas than a similar house in southern Florida, mostly because of freight, delivery and duty costs to the site, which represent about 65% of the F.O.B. material costs.  Building standards in The Bahamas are, however, higher than they are in southern Florida.

Things You need to know when looking for Bahama Properties

Is local financing available to non-residents?

Yes, but the lending company might only be giving United States dollars at international rates and down payments are typically 40% of the property value.  

Bahama Properties

What taxes can I expect to pay?

The Bahamas has no income taxes, no capital gains taxes, no inheritance taxes and no sales taxes (except for those levied under the government Stamp Act for property conveyances).  The government of The Bahamas receives most of its revenue from customs duties on all goods imported into the country, which include 7% on lumber and computer-related goods, 75% on luxury cars, 160% on raw tobacco products and 210% on cigarettes.  With the additional 7% stamp duty charged on each of these imported goods, the typical customs duty charges total around 35%.

Property Taxes

The taxable value of property in The Bahamas is based on the most recent sales price.  With respect to undeveloped land, the property owner is responsible for reporting the value of any improvements made.  If you have annual homeowners permit, you may consider the property owner occupied as your primary residence.

Taxes on owner occupied properties:

  • The first $250,000 is exempt from taxation;
  • $250,000 to $500,000 – tax rate is 0.75%
  • More than $500,000 – tax rate is 1%
  • Maximum amount of annual tax is $50,000

Taxes on vacant land owned by non-Bahamians:

  • On the first $7,000 of property’s market value — $100
  • On $7,000 to $100,000 of property’s market value – 1.5%

Taxes on other property, including commercial:

  • On the first $500,000 of property’s market value – 1%
  • On property values over $500,000 – 2%

Are there advantages for establishing permanent residency status in The Bahamas?

There are significant tax advantages for citizens from other countries that impose high personal and corporate income taxes, as well as inheritance taxes.  The savings vary depending on the country in which citizenship is established and the laws applied there.

Can I become a citizen of The Bahamas?

Citizenship in The Bahamas is possible, although it is a long and drawn out process.  Favor is usually given to long-term residents and spouses of current residents of The Bahamas.

Is financing available?

Most major banks and life insurance companies offer mortgages with terms up to 25 years with as little as 10% down payment for properties valued up to approximately $100,000.

Have recent changes affected the tax haven status of The Bahamas?

The market in The Bahamas is affected more by the stock market in the United States and economic conditions internationally than by any changes made in its own banking laws.  Recent changes in banking laws that affect financial reporting and compliance have caused some customers that are not willing to comply with the new laws to take their business elsewhere, although there are now very few places in the world where the wealthy can go to avoid paying taxes!