How to Buy a House and Sell Your Existing One?
One of the most typical occurrences in the global property market is the sale of one home and purchasing another. Because we can’t expect everyone to be an expert at this, problems can arise if the proper procedures aren’t followed. It’s usually a good idea to get the advice of a reputable real estate agent and proceed with caution.
There are a variety of ways to put this together:
- Selling one home and purchasing a larger one in the same area.
This means you’ll have to put up a bit more money, perhaps 35 to 40 percent more. A one-bedroom apartment in Andheri West costs around 1.25 million rupees, two-bedroom apartments cost around 2 million rupees. Three-bedroom apartments can cost around 3 million rupees, so you need to know the approximate value of your home and your own contribution if you are looking to buy another one in the same location to compare prices. It is extremely difficult to find cheap house for sale in Mumbai.
- Buying and selling properties in different locations
If you’re moving to a more costly neighborhood or increasing the size of your apartment, you may face more costs.
- Upgrade to a more premium location than the one you now occupy
Then you need to find out what the prices are in the area, the size of the flats, and other aspects such as how big of a difference there is and whether or not you can afford to make that difference.
- for example, if you want to upgrade from a 2 BHK to a 3 BHK apartment.
Then, if you want to buy a three-bedroom house in another place, you’ll have to check out the costs and see if the sale of your existing home would cover the cost of the purchase of the larger property.
About 5% to 10% of the total cost of purchasing a property goes toward unforeseen expenses.
- Stamp Duty Flat Rate of 5%
- Older properties are exempt from the standard 1 percent VAT.
- 71 percent Service Tax – In the case of a property that is currently being constructed or is connected to construction.
- Any property’s registration fee is 30000.
Apart from that, if you purchase a resale property, you will be responsible for paying Transfer Fees to the society, etc. Because of this, you’ll need to know all the arithmetic before you go ahead and accomplish this.
If you thought this was the end, you’ve only just begun.
- First, make sure that both properties’ contents are in sync and that you have an alternate housing arrangement in place just in case. It’s common for possessions to lead you to make a bad judgment while purchasing a home.
- Avoid any ambiguity while dealing with the buyer and the seller. Because everyone is reliant on a sale or buy, be as specific as possible and try not to become angry if the transaction takes longer than expected.
- Make a to-do list and cross items off as you do them.
- When selling a home, be aware of any potential short-term capital gains tax consequences.
- Please check where the legal papers are, and if they are mortgaged, obtain clarification on the same.
- Be aware of local market practices, be certain of everything, and plan well.