About

Plan for Taxes and Deductions

• Tax Benefits: Understand the tax deductions you can claim on home loan interest (Section 24) and principal repayment (Section 80C). You can claim up to ₹ 2 lakhs per annum on interest and ₹1.5 lakhs on the principal under these sections.
• Capital Gains Tax: If you own your property in the future, be aware of the long-term capital gains tax.

Conduct Property Valuation

• Market Valuation: Ensure that your price aligns with current market rates. Consult real estate agents and check prices of similar properties in the area.
• Resale Value: Consider the property’s future appreciation prospects, especially if you’re in an you’re area.

Check Legal Aspects

• Title Deed: Ensure the seller has a clear and marketable property title free of encumbrances or legal disputes.
• Sale Agreement and Loan Documents: Have the sale agreement reviewed by a legal expert, and carefully review the loan documents to understand all clauses, particularly those related to default penalties and foreclosure conditions.

Diversify Your Investments

• Risk Management: Don’t invest all Don’tfpDon’tll resources in one property. To balance risk, diversify your investments by allocating funds to other asset classes (mutual funds, stocks, etc.).

Post-Investment Strategy

Exit Strategy: Plan your exit strategy if you need liquidity in the future. Consider factors like capital appreciation, market demand, and ease of resale.

Rental Income: If you want investment, calculate the potential rental yield. In Bangalore, a rental yield of 2-3% is typically considered good.