Archive of articles related to real estate investing
A reader says, ” I am a retired person. I have a portfolio of Equity, Debt and Investment Property (second home), which I have rented out to earn income. I have held the property for about 15 years but have not revalued it to the present market price. My Queries are: 1. How often should…
Continue reading →It is concerning that many casual and oversimplified pieces of advice are seen floating regarding real-estate investments on social media. I am not a legal professional, but I have been involved in many property issues and thought of sharing some of my experiences here. This is not a recommendation of equity over real estate but…
Continue reading →This is an example of how indexation benefits help reduce long term capital gains on property sales. The sold property should be over two years old for applying for indexation benefits. There are several exemptions like sections 54 (reinvest in a new property), 54ec (buy specific bonds) and 54B (sell agricultural land in non-rural areas…
Continue reading →In this article, we shall discuss how REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will be taxed from 1st April 2023 (FY 2023-2024 or AY 2024-2025). REITs and InvITs invest in commercial real estate properties and infrastructure assets via special purpose vehicles (SPV) through equity or debt instruments. This allows investors to…
Continue reading →A reader who prefers anonymity asks, ” I’m 33 yrs old; salaried; married with 1st kid due in Mar’22; living in Delhi NCR. I bought a house where I intended to live originally, but due to the extreme distance from my workplace (60kms distance one-sided), it does not seem to be feasible for me to…
Continue reading →Sudipta Roy asks, “I recently read the article – Why I gave up my life-long dream of buying a house. My dream is to buy a house too, and I don’t wish to give up on it. However, I do agree with the author’s view that all major financial decisions should be made holistically”. “Thanks…
Continue reading →In this article, Vishal discusses why he decided against buying a house and how his mindset towards owning property changed over the years. Note: The following is a point of view and not a recommendation against buying property. It is worth sharing it with the freefincal community as it is a well-thought-out view suitable for…
Continue reading →Here are some practical aspects of real estate investing that retail investors should be aware of. The article considers real estate as an investment and does not pertain to property purchase for self-occupation. About the author: Sid Joshi is a technology professional based out of Singapore. He is a keen personal finance enthusiast who loves to…
Continue reading →As part of various relief measures taken by the Government in response to the economic slowdown post-COVID-19, the Finance Minister (FM) has announced a very attractive income tax relief for home buyers (new residential properties of value up to Rs 2 crore). Here is what you need to know. About the author: Anjesh Bharatiya is…
Continue reading →Rental income is immediately appreciated by one and all as a form of passive income – perhaps the oldest. Real estate has an undeniable charm associated with it and it is quite natural to ask if it can be used as a source of passive income particularly after retirement. We had discussed how passive income…
Continue reading →Here is a ready reckoner FAQ on the basics Real Estate Investment Trusts (REIT’s) and Infrastructure Investment Trusts (InvITs) in the form of an FAQ. This covers key information for the layman and is meant to serve as a basic introduction. With Embassy office Park REIT IPO, there is a renewed interest in these instruments. However,…
Continue reading →The government announced in the interim budget on 1st Feb 2019 that house property capital gains exemption under section 54 of the income tax act can be claimed by the purchase of two new house (residential) properties. Also read: Revised Tax Rebate Under Section 87A (FY 2019-2020) Explained Existing House property capital gains exemption (section 54) Section…
Continue reading →Buying a house is often an emotional decision and as I have argued before, it makes no sense to use buy vs rent calculators. In this post, I discuss the pros and cons of buying a house as soon as possible vs later vs never. Regardless of what decision we make (or have made) it…
Continue reading →Budget 2017 has proposed a slew of benefits related to long-term capital gains. The most important is the shift of the base year to be used for long-term capital gains computation for all asset classes. Here is a summary and illustration of long-term capital gains computation with base year 2001. 1: Change in duration for computation…
Continue reading →The rent received from a house property is treated as income and taxed as per slab. However, certain deductions are eligible for this taxable amount. Budget 2017 had restricted the amount of deduction one can claim. Here is an illustration and a revised real estate returns calculator. The taxable income is given by: rent –…
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