Guide for Kumarapalayam Residential Real Estate Investment

Kumarapalayam is an industrial town located on the banks of the Kaveri River in the Namakkal district of the Indian state of Tamil Nadu. It is also commonly popular as Komarapalayam. This town is famous for its textile and leather industry. Traditional-style leather chappals are one of their famous products manufactured and exported all over the world. 

Being an industrial town, it provides great connectivity through various modes, especially via roads and highways. This connectivity facility along with other amenities like transportation, schools, colleges, markets, etc., contributes to the increase in the overall demand for residential real estate here. 

Moreover, being an industrial area, it generates numerous employment opportunities, which adds to the reason why people want to come from different locations and find rental properties here. By investing in residential real estate properties in Kumarapalayam and renting them out, you can, therefore, increase your monthly earning opportunities.

Let us know about it in detail!

Top Reasons to Invest in Residential Real Estate in Kumarapalayam 

The main reasons to invest in residential real estate in Kumarapalayam, Tamil Nadu are as follows:

• Connectivity

Kumarapalayam offers great connectivity via roads, railways, and airways. The National Highway 544 passes through this area, making it easily accessible for people to travel to other cities. Additionally, it has a great transportation system via public and private buses, enhancing the intra-city and inter-city transportation system.

• Job Opportunities

Being a famous manufacturer of leather and textile, it creates a lot of employment opportunities every year. Moreover, more manpower can help in increasing production and generating revenue. All these factors broaden the prospects of finding tenants in Kumarapalayam quite easily.

Residential Real Estate Investment Opportunities in Kumarapalayam 

The best locations for residential real estate investment opportunities in Kumarapalayam, Tamil Nadu are as follows:

• Ernapuram

The locality of Ernapuram is famous for residential real estate for its infrastructural facilities and the availability of all the basic amenities near it. It also has good connectivity as well as proper transportation facilities. 

• Kuppandapalyam

The area of Kuppandapalyam is recommended for residential real estate due to the affordable prices of property and land. Being a place with good connectivity and infrastructure, a low-budget property attracts more individuals to invest here.

Things to Consider Before Buying a Residential Property in Kumarapalayam 

The important things to keep in mind before purchasing a residential real estate property in Kumarapalayam, Tamil Nadu are as follows:

• Proper Market Research 

Investing in residential real estate can involve a lot of fraudulent activities and hence, needs a substantial amount of market research to avoid such undesirable situations. Moreover, proper market knowledge will help you save yourself from unwanted losses and huge market risks.

• RERA authenticity checking

The Indian Government has established Real Estate Regulatory Authority (RERA) according to RERA Act 2016, to promote the real estate sector among more individuals, enhance transparency, and encourage their participation. To check the authenticity of any real estate project in Kumarapalayam, you need to visit the RERA website of the Tamil Nadu State Government.

Stamp Duty Rates in Kumarapalayam 

The stamp duty rates you need to pay after purchasing a real estate property in Kumarapalayam, Tamil Nadu are as follows:

Registration Charges in Kumarapalayam 

The registration charges you need to pay after purchasing a real estate property in Kumarapalayam, Tamil Nadu are as follows:

It is essential to consider these stamp duty and registration charges as they will be a major part of your investment amount. 

Kumarapalayam Residential Real Estate Sector: What’s the Forecast?

The entire state of Tamil Nadu witnessed an appreciation of the overall price of real estate property by around 20% in the previous FY, due to its improvement in infrastructural facilities. This has had similar effects in all places of the state including the real estate sector of Kumarapalayam. Although Kumarapalayam was known for its budget-friendly property prices, the price hike did not have much influence on its prices. 

Residential Real Estate vs Other Asset Classes

The difference between residential real estate and other asset classes is conducted on the basis of the following:

• Residential Real Estate vs Stocks & Mutual Funds

Residential real estate offers assured returns with direct asset ownership if we compare them with the stock market and mutual funds. Again, stocks and mutual fund investment carries higher risks than real estate investment. This is because, unlike the property valuation, the price of stocks and units of mutual funds fluctuates significantly from time to time

• Residential Real Estate vs Gold

Although Gold is highly liquid, it is a valuable commodity with higher volatility. In fact, you cannot completely avoid the risk of burglary. Comparatively, residential real estate is a stable investment option offering low risks with an additional option to make rental income.

• Residential Real Estate vs Commercial Real Estate

The vacancy risks in residential real estate properties are higher than in commercial real estate with frequent tenant turnover. However, you need to pay a high maintenance cost for commercial real estate properties than residential ones. 

• Residential Real Estate vs Bonds

Residential real estate investments are less illiquid than bonds due to higher transaction costs and the requirement of a long time to find property buyers. Further, bonds let you make a stable interest earning, given that you do not liquidate your investment before maturity. 

A tabular representation to compare the assets on the basis of returns, liquidity, risk, volatility and the ticket price is as follows:

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Steps to Invest in Residential Real Estate in Kumarapalayam

The steps to invest in residential real estate in Kumarapalayam, Tamil Nadu are as follows:

Step 1: Estimate your budget and calculate the amount of investment. 

Step 2: Conduct proper market research on potential sites that are developing.

Step 3: Shortlist a few affordable sites. You can also take the help of an agent to get the best deals.

Step 4: Go to each site and examine them properly.

Step 5: Finalise a residential property that is suitable and prepare all the official documents like title deed, property assessment extract, foundation certificate, etc.

Step 6: After finalising, make the total payment and purchase the property.

Step 7: Complete the payment of stamp duty and registration fees, and proceed with registration formalities. Also, make sure to cover your new property with an insurance policy.

Step 8: Pay service fees to real estate consultants and brokers if availed of their service.

Final Word

Considering the rapid development in property value, connectivity and infrastructure, the residential real estate sector of Kumarapalayam is witnessing positive changes. This change is attracting promoters towards this area, resulting in the increasing demand for building housing properties. However, it is also necessary to conduct thorough market research and consult a real estate agent before doing so to avoid any fraudulent activities.

Frequently Asked Questions

Q1. What are the documents required to register a property in Tamil Nadu?

Ans. The documents required to register a property in Tamil Nadu need are NOC, sale deed, POA, PAN card, stamp duty receipt, government ID proofs, no dues certificate, etc. Other than this, you will also need two passport-sized photographs for identification purposes.

Q2. What are the various ways of paying stamp duty and registration charges in Tamil Nadu?

Ans. The ways to pay stamp duty and registration charges in Tamil Nadu are via online and offline methods. Here, the transactions can be carried out through cash, cheque, debit or credit card, RTGS, NEFT, and demand draft. 

Q3. What is the average price of a real estate property in Kumarapalayam?

Ans. The average price of a real estate property in Kumarapalayam is approximately ₹3000 per square foot. However, the property price in this place actually starts from around ₹300 to ₹500 per square foot.

Q4. What are the tax benefits available on registration and stamp duty charges in Tamil Nadu?Ans. Yes, there are tax benefits available only to individuals and HUFs on registration and stamp duty charges in Tamil Nadu. This has been stated under section 80C of the Income Tax Act, 1961, where a maximum deduction of ₹1.5 lakh is permitted.