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Land Prices Are Getting Down In Chennai

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Land Prices Are Getting Down In Chennai

Last updated: January 31 2012
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  • Land Prices Are Getting Down In Chennai

    http://www.dinamalar.com/News_Detail.asp?Id=365354
  • #2

    #2

    Re : Land Prices Are Getting Down In Chennai

    Anjujeeva,

    Thanks for the link. it had given a complete review on all pros and cons.

    The implementation of the new guideline value was supposed to be from december 2011, but it did not happen, someone in forum mentioned it will be Jan 2012. But no talks on that further...

    Any body know when will it be implemented?

    Thanks,

    Mani

    Comment

    • #3

      #3

      Re : Land Prices Are Getting Down In Chennai

      Hi Mani,
      Hope soon, it has been published in tn govt website also. Most of them told in the review, once new guideline value is implemented the prices will come down since the market and guideline price is same, this case only whoever has the Tax paid money they can only buy it.
      Last edited December 30 2011, 04:04 AM.

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      • #4

        #4

        Re : Land Prices Are Getting Down In Chennai

        Originally posted by anjujeeva View Post
        Hi Mani,
        Hope soon, it has been published in tn govt website also. Most of them told in the review, once new guideline value is implemented the prices will come down since the market and guideline price is same, this case only whoever has the Tax paid money they can only buy it.
        Guideline value impacts only the stamp duty and registration charges.Where GV jas been fixed at unrealistically, Rest of the land cost can be below guideline value.No one can stop that from happening.

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        • #5

          #5

          Re : Land Prices Are Getting Down In Chennai

          Originally posted by corvette View Post
          Guideline value impacts only the stamp duty and registration charges.Where GV jas been fixed at unrealistically, Rest of the land cost can be below guideline value.No one can stop that from happening.
          Corvette,

          could not get what you meant. "rest of the land cost can be below guideline value" not clear, please clarify.

          Comment

          • #6

            #6

            Re : Land Prices Are Getting Down In Chennai

            Originally posted by iceemani View Post
            Corvette,

            could not get what you meant. "rest of the land cost can be below guideline value" not clear, please clarify.
            Guideline value as the name indicates is just a Guideline.It is used for calculating registration charges/stamp duty.Suppose I bought a piece of land at 50 rs/sft 10 years ago in Maraimalai nagar or some where.Lets say the guideline value is 1000 rs/Sft.If I dont find a buyer who is willing to pay 100o rs/Sft, Just because Guideline value is 1000 /Sft does not forbid me from selling my land at 750 Rs/Sft,If I can find a buyer who is willing to pay as much.But even if the sale price is 750/Sft, the buyer will have to pay registration charge 10% or whatever calculated with a value of 1000/ Sft (the Guideline value).As a seller,i dont care what the Govt says the value should be.I am making a cool profit of 700 /Sft which is more than enough for me.As a buyer, I don't care what the Government thinks the value should be except for calculating the registration cost and stamp duty.If the intention is to play with Black money,Guideline value cannot control this in anyway,Since I can buy at any value and the seller can sell at any value.So all in all, this GV is mere hogwash.

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            • #7

              #7

              Re : Land Prices Are Getting Down In Chennai

              But I am afraid, it is not that simple. Registered value will become the official value for income tax purposes. In your case, Rs. 1000/- and not Rs. 700/- will be taken for capital gain calculation. Clarity will emerge only when the revised guideline values come in to force and registrations happen at the revised GLV.

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              • #8

                #8

                Re : Land Prices Are Getting Down In Chennai

                Originally posted by radnats View Post
                But I am afraid, it is not that simple. Registered value will become the official value for income tax purposes. In your case, Rs. 1000/- and not Rs. 700/- will be taken for capital gain calculation. Clarity will emerge only when the revised guideline values come in to force and registrations happen at the revised GLV.
                I don't think so.If I put in a value in the document,I prove with bank statements,How can income tax authorities question that?

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                • #9

                  #9

                  Re : Land Prices Are Getting Down In Chennai

                  Corvette,

                  if your statement is true, then it is

                  1.A mere increase in revenue for TN govt,
                  2.More expenditure for a real buyer,
                  3.No impact for the black money guys.

                  But i dont think so a registrar will allow a seller to sell at a very lower value compared with guideline value. it shoule be realistic!

                  it will resist some black money in real estate market. so transaction will happen for a real buyer. it means a drastic reduction in demand, it means there is no chance of increase in price as it was for last 5 years. there is fair amount of chance for price correction(reduction) if demand is very poor.

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                  • #10

                    #10

                    Re : Land Prices Are Getting Down In Chennai

                    Originally posted by iceemani View Post
                    Corvette,

                    if your statement is true, then it is

                    1.A mere increase in revenue for TN govt,
                    2.More expenditure for a real buyer,
                    3.No impact for the black money guys.

                    But i dont think so a registrar will allow a seller to sell at a very lower value compared with guideline value. it shoule be realistic!

                    it will resist some black money in real estate market. so transaction will happen for a real buyer. it means a drastic reduction in demand, it means there is no chance of increase in price as it was for last 5 years. there is fair amount of chance for price correction(reduction) if demand is very poor.
                    This is my expectation.Whether it turns out true,Only time will tell.Big guys always find out ways of working around the system.Lets see what they do this time.

                    Comment

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