Adden Homes

01/02/2015

Available 200 Sft ground floor east facing 100% vaastu compliant corner shop for immediate rent.

Ideal for retail business : stationery, clothing, medical, dispensary, ATM, etc.,

The landlord is open to long term commitments from interested parties.

This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected] or [email protected]

01/01/2015

26/10/2014

AVAILABLE 3 BHK FULLY FURNISHED APARTMENT (WITHOUT WHITE GOODS) IN NANDED CITY FOR IMMEDIATE/URGENT SALE.

The owner wishes to sell the apartment on priority and would like to close the transaction on an URGENT basis.

This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected] or [email protected]

22/10/2014

Available 2BHK semi-furnished apartment on 1st floor for immediate occupation in MANIK BAUG. The apartment is in immaculate condition and ready to movein for families- tenants looking for immediate accommodation.
This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected] or [email protected]

21/10/2014

Seasons Greetings to you and your dear ones... May the festivities continue year long... Best Wishes. . . Team Adden Homes

04/10/2014

Available unfurnished 2BHK apartment 1st floor Terrace apartment on rent in immaculate condition in Nanded City @ Madhuvanti. The apartment is available for immediate occupation. The apartment is well lit and has very good cross ventilation.

This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected]

27/09/2014

NRI's GUIDE TO BUYING PROPERTY IN INDIA

One of the Greatest Indian dreams of this generation is buying real estate in India. A house in India is essential, irrespective of which corner of the world you currently reside in. The Indian laws, over the years, have evolved and made this a fairly easy job. The Reserve Bank of India governs such transactions and they fall under the purview of the Foreign Exchange Management Act (FEMA).
In this article, we have made an attempt to give you a glimpse of all the fundamentals you are supposed to know if you are an NRI wanting to buy property in India. To begin with, we need to understand the definition of non-resident Indian. Since property purchases are governed by FEMA, we need to go by the definition of NRI as stated in FEMA. According to FEMA, an NRI is a citizen of India who is resident outside India.

Now let us understand the rules and implications:

Q: Can an NRI buy property in India?
A: Yes, a non-resident Indian can buy either a residential property or a commercial property in India. There is no limit on the quantity of properties that an NRI can purchase in India.
Exception: Agricultural land, plantation land or a farm house in India are properties an NRI can NOT buy. He cannot even acquire such property as a gift. He can inherit this property.

Q: Is RBI permission required?
A: No. RBI permission is not required to buy residential or commercial property.

Q: Is deemed income from house property taxed in foreign country?
A: You would need to look at the tax code in your country of residence. In the case of NRIs in the United States, the US tax code does not tax deemed income. However, you would still have to show the property if it is an investment property in your tax return in the US (even though you do not have any rental income). "If you do not show this investment property, the problem will arise at the time of sale of property. Suppose you sell a property on which you had no rental income for US tax purposes but had deemed income as per India Tax code, then the amount spent on the maintenance, repairs and renovations and depreciation on this property which may be eligible for deduction or addition to your cost basis while calculating capital gains would become difficult to establish. However, if you have not declared the property in your tax returns, the US tax code may challenge the cost basis (purchase + improvements + suspended losses) to claim a tax deduction at the time of sale.
Any investment properties with rental income and related expenses must be reported on Form Schedule E in the US tax returns and rental activities by nature are always treated as 'passive' investments with restrictions on deductibility of the net rental losses. Always consult a tax expert as passive activity rules are quite cumbersome.

Q: What are the income taxes that are applicable on house properties in India?
A: According to the Indian Income Tax Act, if a person (resident or NRI) owns more than one house property, only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property. The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given the second property on rent, you will have to calculate deemed rental income on the second property (based on certain valuations prescribed by the income tax rules) and pay the tax thereof.
Now, the Income Tax Act does not specify if either or both these properties must be situated only in India. At the time of drafting the Income Tax Act, one did not envisage a situation where an Indian would own properties overseas. But now, more and more Indians are settling abroad. So from the reading of the Act, the rule of 'more than one property' will apply to global properties.
What this means is that if you are an NRI and own only one property globally and that property is in India, you would not have to pay any income tax on it in India.
However, let us say you are an NRI resident in USA. You own and live in a house in USA. You also own a house property in India. Even if you do not give the property in India on rent, you would have to pay income tax on deemed rent in India. The deemed rent is determined by certain valuation rules prescribed in the Income Tax Act.
Remember that even if you have inherited a property in India and that is not your only property, you would have to pay tax on deemed income.
The Reserve Bank of India has also given permission to all non-residents who possess Indian passports as well as people of Indian origin to put their money in the real estate sector (residential as well as commercial property). The number of NRIs investing in real estate is increasing fast as the value of the rupee is depreciating and real estate offers better returns. A place in the homeland usually gives a sentimental support and sense of security, which is the other reason of investment in real estate by NRIs.
The RBI along with the Foreign Exchange Management Act (FEMA) over the years has become lenient in terms of rules and regulations for non-residents who are looking for an investment in real estate. They are not only simplifying the rules but also providing the benefit of repatriation of the capital involved. The government is planning some investment growth activities through their investment promotional council, to create an environment appropriate for non-residents to put money.

Q: How can NRIs invest in real estate?
A: According to the regulations of FEMA and RBI, an NRI is permitted to make specific investment in real estate.

A NRI is allowed to do the following investments in property:
1: Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
2: He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin.
3: Obtain any property by inheritance.
4: He can transfer immovable property to any resident of India by sale.
5: He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
6: He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.

Q: What are the sources of finance available to NRI?
A: NRIs consider financial institutions as an easy option available in India for purchasing any property. At the same time financial institutions consider NRIs as their potential clients. Financial institutions provide home loans easily, efficiently and sooner to such people as they are very much prompt at the time of repayment. Furthermore, the repayment can readily be done by inward remittance through the proper banking channel. If someone is already getting income in India from sources like rent or dividend, he/she can directly repay the loan as well.

Q: What are the tax implications for NRIs looking for property in India?
A: An NRI has to shell out stamp duty as well as registration fees at the time of purchase. He is entitled to avail all sorts of benefits at par with Indian residents on the interest paid for the home loan. However, the tax process becomes full of twists and turns if the property is leased.

RBI has also predetermined these norms in home loans for non-residents who are looking forward to buying any property:
- A maximum of 80 per cent amount is financed by the financial institution. The rest should be given by the NRI.
- The remittance of the amount for down payment can be done from the place of residence by normal banking channels, i.e., NRO/NRE account in India.
- The NRI has to repay his principal amount as well as interest part from that similar channel only.
- As the amount of income received from such action comes under the head of income from property, therefore, standard deduction is applicable as per the standard slab. In this case, the NRI will have to pay the applicable tax if he is residing in the country where worldwide income is taxable unless the country has Double Tax Avoidance Agreement with India.
- The special advantage for an NRI is the amount which is paid for the interest of home loan is deductible from NRI's taxable income without any upper limit. The NRI is legally responsible for the payment of capital gains tax as prescribed under the Income Tax Act, in case he sells off the property.

Q: What are the points to be considered at the time of purchasing a property?
A: Investment in real estate is a simple move but there are several drawbacks as well. So, one should be cautious enough at the time of purchase to secure the deal. Few points of consideration are under:
- Property name: The name of property should be clear from issues and the seller should have the required right to sell it, especially if it is inherited or any joint property.
- NDC: Always check that there will be no outstanding electricity/water bills or any other authority dues pending with the property. Take a no dues certificate from the seller at time of purchase.
- Bank release letter: It is advisable to take the bank release letter from the concerned bank, if the property had been mortgaged as security in any type of loan.
- Permits: The property of sale should have all approvals and permits from the civic authorities in terms of construction
India’s real estate growth prospect lure NRI investors from every part of the world and NRIs are looking to capitalize by buying property in India. However, there are various rules and norms which should be followed by the NRIs in order to own a property in India. Here are a few steps which should be followed by an NRI for property buying;

PROOF OF ELIGIBILITY: If you are an NRI and are looking for investing in a property in India, you should obtain a Person of Indian Origin (PIO) certificate as an eligibility proof. In case you do not have your PIO certificate, you can always produce your mother’s/father’s birth certificate for the eligibility. However, these documents should be submitted to the Indian embassy of the particular country.

THE EXHANGE CONTROL REGULATIONS: Unlike the initial times, the restrictions relating to investment by NRIs in Indian properties have been lessened. An NRI can easily buy a property with the funds received from regular banking. Also an NRI can hold a Foreign Currency Non-Resident FCNR account, Non-Residential External (NRE) account or a Non Resident Ordinary (NRO) account to make a property purchase. An NRE account is required for the pay outs and an NRO account is required for the depositing and the transferring of money.

REPATRIATION: Once the relevant income tax and capital gains at the time of sale proceedings are deducted from the account, one can repatriate the funds from the NRE account to the foreign account.

RENTING PROPERTY: In case if an NRI wishes to rent out a property, he/she can rent the immovable property. However, the rental income or the profit which is made as returns from the property will be eligible for repartition for payment of taxes and payment of a certificate which is produced by a chartered accountant.

We at ADDEN HOMES help assist our NRI customers in these services right from property management to lease administration to client sourcing. REACH US: [email protected]

SELLING PROPERTY: If an NRI owns a property in India and wants to sell it away, he/she can sell it to another NRI or any person residing in India who is free from any legal issues. However, the purchase or sale of a farm house or other agricultural land is not permitted, but gifting of an agricultural land or a farm house or plantation land is permitted to a resident of India. The same follows with an NRI or a PIO.

THE POWER OF ATTORNEY: It is advisable that an NRI should give the power of attorney to an Indian resident who is trust worthy. In case the NRI is not present in India for the legal formalities, the trusted person can complete all the formalities.

THE HOME LOAN: An NRI can avail a home loan in India for the purchasing of a property. A home loan nowadays of about 85-90 per cent can be taken from a bank and further the loan will be disbursed to him/her at the time of buying a property.

We hope you have found this article of interest to you.

If you are an NRI and looking to invest in India reach out to Adden Homes and we shall be very happy to service your investment in Real Estate and be able to provide you with advisory services.

The above article has been put together based on our experiences and should be considered as a legal or a taxation advise.

DO REACH OUT TO US ON +91-750-700-9888 / +91-982-080-1234.

Adden Homes

26/09/2014

BASICS OF RENTING A PROPERTY !

Q: What is the procedure for the owner to give his property on leave and license?
A: The owner has to satisfy in writing to the society committee the inability to occupy the flat with a genuine reason, mentioning that he will continue to pay the maintenance charges including Non-occupancy charges (upto 10% max).
If a member wants to sublet the premises and society is not giving permission, then in such circumstances the Registrar as per the new bye-laws will have the power to issue permission to sublet the premises.
He shall also, by joining the society as a party to the proceedings initiates necessary legal proceedings against the sub-lettee, licensee or care-taker, on his failure to get vacant possession of the flat on expiry of the period of sub-letting and meet the cost of the legal proceedings required to be incurred by the society.

Q: What documents have to be submitted to the society?
A: Registered ‘Leave and License’ agreement copy; Police verification; Form 27 (Under Bye-law 43(2)(i) is an application to sub-let; Form 11 signed by sub-lettee.

Q: Does the person renting a flat have the right to park his car in the building?
A: If the Lessor owns a parking space, then the said parking space can be given to Lessee because that could be part of agreement. However if the open parkings are less, in such scenario the permanent residents have the first right.

Q: Are there certain restrictions an owner can put on a person renting his flat — like no pets, no non-vegetarian food, bachelors, etc?
A: No. There is no such provision in law. This is matter of personal choice whom to leave and license and whom not to. For example there are no rules as to how many maximum numbers of people can stay in the rented flat. If the society has not passed any resolution then bachelors/spinsters can stay in rented flats.

Q: Does the person who is staying on rent have any say in housing society matters?
A: The person who is staying on rent in a building, which has a housing society, has no say in the affairs of the society. However they are at par with other members of a society, for peaceful use of all services available in society unless it’s a membership of a club in a society, which may not be transferable. Also, the Licensee can place suggestions in the housing society, which may or may not be accepted by the Managing Committee. It is ideal to keep the owner of the flat informed.

Q: If I rent a flat and live on leave and license does the leave and license have to be for 11 months?
A: ‘The Maharashtra Rent Control Act, 1999’ says there is no stipulation as to whether ‘Leave and License’ agreement should be in multiples of 11 or 12 months, and there is no stipulation as to total time period. However ‘Leave and Licence’ agreement generally does not exceed three years. But the new rule effective from May 7, 2005 states that you can do a ‘Leave & License’ agreement now for a period up to five years and in multiples of 12 months each. Owners may refuse to renew for various reasons since they may be uncomfortable with their licensee.
An instrument creating a leave and license of immovable property for a term of one year and above is required compulsorily to be registered by virtue of provisions of Section 17(d) of the Indian Registration Act. Therefore, such ‘Leave & License’ Agreements were being executed for a period of 11 months with the dual intention, namely, to avoid the stamping of such an agreement and its registration and secondly to avoid interpreting such ‘Leave & License’ Agreement as a leave and license of the immovable property to avoid protection against vacation of the occupier, as per the provisions of the said Bombay Rent Act.
Also, another reason for making an agreement on an 11-month basis by the property owner is to shy away from the ‘Rent Control Law’ provision of giving six months notice at the end of those 12 months. If the agreement is for 11 months then even a minimum period of notice, say, seven days, would suffice.

Q: What is the basic difference between possession and occupation?
A: As per law, ‘Possession’ implies control of the property. It could be actual or possession in law. On the other hand, the term, ‘occupation’ is understood in the sense of a physical presence in the premises concerned, usually for a period of time.

Q: Can an owner terminate a leave and license agreement mid-way?
A: Unless the Licensee has violated terms of Leave and License agreement, owner cannot re-claim the flat mid-way. A leave and license can be terminated midway by the owner, only if there are violations related to agreement. These could be exit clauses. The common violations that could lead to re-claim are (a) Renovating flat without permission of Licensor (b) Sub-letting (c) Illegal or immoral activities in flat (d) Some anti-national activities carried out in flat and so on. All this can be avoided by proper screening before one shortlist’s a Licensee. The Licensor should check the background of a Licensee such as marital status, previous track record, verification of professional status, details about permanent address etc. Also, it is compulsory to register the agreement with the local police station.

Q: Are there any kind of guidelines/rules about how much a person can charge as rent?
A: The rent can sometimes be higher or lower than the (Rent) Ready Reckoner depending upon ‘Hard Furnishings’, ‘Soft Furnishings’ and other amenities provided by the Lessor. A person renting a flat can pay monthly rent or the entire sum at one time. Many Lessors prefer post-dated cheques in advance for the whole year. The owner can increase the rent mid-way only if it is mentioned in the terms of agreement. However, in the absence of this (increase in rent) clause, it is understood that rent is fixed for a period of the leave and license.

Q:Should you engage a broker for doing your leave and license?
A. It is always advisable to have a broker involved in your accommodation deals as this ensures that you have a adjudicator to help address any issues not only before but also post your transaction.

Q: What should one inspect in premises before taking it on rent?
A: To prevent the possibility of misunderstanding, before signing any Leave and License agreement, a potential Licensee should read the terms and conditions thoroughly and seek clarification where required. To help keep the relationship cordial, before hiring the premises, the following should be investigated:
- Foundation, basement and visible structures
- Water supply, plumbing systems, drainage condition, sanitary and CP fittings
- Walls, ceilings, paintwork, flooring, type of roofing, etc.
- Continuous electricity supply, electrical systems, functioning of light fittings etc
- Quality of doors and windows, latches, locks etc.
- Furniture, fixtures and fittings
- Whether any security systems such as CCTV have been installed for safety
- Also understand processes of building security and other operational issues that will have an impact on his occupancy at the rented property.

Q: Who has to pay for a problem in the flat like a leakage?
A: It is understood that possession has to be given in ‘Vacant and Peaceful condition’. Generally, the owner has to pay for the leakages if the leakage is from outside the flat. However if the terms of agreement between the Licensee and Lessor state otherwise, then the problem in the flat is to be executed on the basis of these terms and conditions.

Q: How does 'Lease' differ from 'Leave and License?'
A: U/s 105 of 'The Transfer of Property Act, 1882,' Lease is defined as a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The Lessor (owner of the property) gives the Lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement. U/s 52 of 'The Indian Easements Act, 1882', ‘Leave and License’ does not allow any interest in the premises on the licensee's part. It merely gives the licensee the right to use and occupy the premises for a limited duration. A lease deed needs to be stamped and registered. The amount payable as stamp duty towards the lease deeds is generally more than that payable towards the Leave and License's. For a period exceeding three years, the stamp duty is same for both agreements. A Leave and License arrangement ensures a regular periodic renewal of the terms, which as a rule effectively safeguards the interest of most homeowners as opposed to leasing out a property.

This article is not to be used as a replacement for legal opinion. This has been put together by the advisory team of Adden Homes based on its experience of dealing in providing services to its clients for their accommodation needs.

24/09/2014

Available a beautiful villa for IMMEDIATE sale in Undri-Pune. This villa is in one of the most prestigious projects in Undri - Pune.

This property is being "EXCLUSIVELY" marketed by Adden Homes. For details contact Adden Homes @ +91 750 700 9888 ; email: [email protected]

Only serious inquiries ....Call for more details

22/09/2014

Available unfurnished 2BHK apartment on rent in immaculate condition in Nanded City @ Sarang. The apartment is available for immediate occupation. The apartment is well lit and has very good cross ventilation. The apartment overlooks the club house.

This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected]

21/09/2014

Available unfurnished 2BHK terrace apartment on rent in immaculate condition at Nanded City @ Madhuvanti. The apartment is available for immediate occupation.

This property is being "EXCLUSIVELY" marketed by Adden Homes.
For further details call Adden Homes @ +91 750 700 9888; email: [email protected]