Guide for Malegaon Residential Real Estate Investment
Malegaon is a city situated in Nashik district of Maharashtra. Important highways like National Highway 3 and State Highway 10 pass through this city. Malegaon is known for its cloth manufacturing industry. According to census 2011 data, Malegaon has a population of 4,81,228. Of which 51% are male and 49% are female.
There are a number of agricultural universities present in the area namely H.H. Sri Sri Muralidhara Swamiji College of Agriculture, Krishi Vigyan Kendra and H.H. Sri Sri Muralidhara Swamiji College of Horticulture.
Keep reading to find reasons why investing in residential real estate in Malegaon might be profitable.
Top Reasons to Invest in Malegaon Real Estate
Let us check out some reasons why you would want to invest in residential real estate in Malegaon:
Connectivity is hassle-free for the residents of Malegaon as it is well connected to different parts of Pune via bus services. Both intra and inter-city bus services are available. Railway station is also just a few kilometres away. This makes it really convenient to travel to nearby locations. Connectivity is one of the main reasons why there is an increase in demand for properties in Malegaon.
- Basic Amenities
Malegaon is well-equipped with hospitals and healthcare centres in its vicinity. Apart from these, there are many educational institutes and entertainment centres located in and around Malegaon which makes it one of the best options for people who are planning to reside here. All these basic amenities and facilities transform Malegaon into a great option for the home-seekers looking for property here.
Residential Real Estate Investment Opportunities in Malegaon
Mentioned below are some of the locations that might be apt for residential real estate investment in Malegaon:
Soygaon is one of the best places to live as it is hygienic and a large number of shops and restaurants are present here to meet the needs of the residents. Transportation facility is quite good as well. Hospitals are within a radius of 3 to 4 km. Schools are present in the vicinity as well. Rate of residential property here ranges from around ₹1,875 per square foot to ₹3,727 per square foot.
- Satana Road
This locality is at a short distance from Malegaon. It is well-connected with Malegaon and other important places in the state via bus services. There are a large number of schools as well. Rate of residential property in this locality ranges from around ₹2,727 per square foot to ₹3,500 per square foot.
Things to Consider Before Buying a Residential Property in Malegaon
Below are some of the points that you might want to keep in mind if you are planning to invest in residential property in Malegaon:
- RERA Compliance
Before purchasing a property it is wise to check whether the builder from whom you are purchasing the property has abided by the rules of RERA. Real Estate Regulatory Authority (RERA) is a statutory body that was established after enactment of Real Estate Regulatory Authority Act of 2016.
This body looks into the accountability and transparency of the real estate sector in India. The best way to check whether your property complies with the RERA rules is by visiting the official RERA Maharashtra website.
- Investment Budget
It might so happen that you find a property that ticks off all the required amenities. However, you may find it is way more expensive than what you can afford. Therefore, it is important to set a budget before even going ahead with anything else. While deciding your investment budget, keep your income, outstanding loans and any unforeseen requirements in mind.
Stamp Duty in Malegaon, Maharashtra
In order to maintain equality, the Maharashtra government has kept the stamp duty same across genders. Here is the rate of stamp duty applicable to people purchasing a property in Malegaon, Maharashtra:
|Male||6% (Stamp Duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)|
|Female||6% (Stamp Duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)|
|Joint (Male + Female)||6% (Stamp Duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)|
|Joint (Female + Female)||6% (Stamp Duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)|
|Joint (Male + Male)||6% (Stamp Duty 4% + Local Body Tax (LBT) 1% + 1% Metro Cess)|
Registration Charges in Malegaon, Maharashtra
In order to legally own the property that you purchase in Malegaon, you need to pay property registration charges. Here is the rate of registration charge that you need to pay for that:
|Male||1% of property value|
|Female||1% of property value|
|Joint (Male + Female)||1% of property value|
|Joint (Female + Female)||1% of property value|
|Joint (Male + Male)||1% of property value|
Malegaon Residential Real Estate Sector: What’s the Forecast?
Malegaon is slowly but steadily becoming quite an important name in the real estate sector due to a large number of development activities taking place here. One of these is a project for concretisation of roads and construction of bridges with a state fund of ₹100 crore. Out of this ₹100 crore, 70% will be provided by the state government while the remaining will be raised by the corporation.
This development is sure to attract more real estate investors as people will be more keen to purchase houses here due to the infrastructural development. Further, foundation plan for 25 industries has been done at Ajang-Rawalgaon MIDC which will improve the status of Malegaon taluka.
Due to construction of these industries, more job opportunities will be generated in the near future with more people migrating from other districts and even states. This can work as an ultimate impetus for residential real estate investors who wish to invest in Malegaon.
Residential Real Estate vs Other Asset Classes
Let us take a look at the comparison between residential real estate versus other asset classes:
Residential Real Estate vs Bonds
Bonds are much more stable as an investment option and risk-free in comparison to real estate. However, returns generated are much higher in case of real estate if we compare them with bonds. In terms of tax benefits as well, real estate is comparatively a better investment option.
Do you wish to invest in an asset that is both risk free and offers you stable returns ranging from 9 to 11%? If yes, you can register on our website today and start investing in the wide range of bonds available.
Residential Real Estate vs Stocks & Mutual Funds
Real estate is a much less risky and less volatile asset if we compare it with stocks and mutual funds. On the other hand, stocks and mutual funds generate much higher returns in comparison to real estate. In terms of consistency, real estate is better than stocks and mutual funds; however, when it comes to investment amount, stocks and mutual funds are a better alternative.
Residential Real Estate vs Gold
Gold is a much more risky and volatile asset in comparison to real estate. Real estate requires a much higher quantum of investment in comparison to gold. While gold is apt for both short- and long-term investment, real estate is apt for long term investment. Real estate gives you the opportunity to earn every month which is practically not possible in the case of gold.
Residential Real Estate vs Commercial Real Estate
It is much easier to invest in residential real estate in comparison to commercial real estate as investment amount is comparatively less and tenants are easier to find. However, commercial real estate offers much higher returns.
In case of residential real estate investment, you get an opportunity to avail tax benefits if you opt for the property via a home loan. Commercial real estate is less risky in comparison to residential real estate as lease tenure is longer.
Here is the tabular representation of comparison between different asset classes on the basis of their returns, liquidity, risk, volatility and ticket size:
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Malegaon
Here are the steps that you can follow to start investing in residential real estate in Malegaon:
Step 1: Fix your investment budget.
Step 2: Come up with a list of all the properties that you find suitable for investment.
Step 3: Consult with a broker and visit every property. Make sure to assess the properties in terms of infrastructure and amenities and remember to check whether the property papers are authentic or not.
Step 4: Select a property only after confirming whether it is RERA approved or not
Step 5: Contact a lawyer to prepare all the legal documents required for the purchase.
Step 6: Pay for the property. Make sure to pay the required stamp duty and registration charges.
Step 7: In order to safeguard yourself financially in case your property incurs any type of damage, opt for an insurance policy.
As the government of Maharashtra is providing for infrastructural development as well as attracting investors to set up their businesses in Malegaon, its status as a top residential city is improving. Development of industries will not only provide employment but also will provide business opportunities to hundreds of people residing in Malegaon.
All this will certainly increase the influx of people wanting to reside in Malegaon. With the government’s promise of providing all that will be needed for further development, Malegaon is sure to transform into a hotbed for residential real estate investments in the near future.
Frequently Asked Questions
Q1. Why is it necessary to register an agreement of sale?
Ans. According to Transfer of Property Act of 1992, Registration Act of 1908 and Real Estate (Regulation and Development) Act of 2016, it is mandatory to register agreement of sale of immovable property. By doing so, it will become a public record and you will be considered the legal owner of the property.
Q2. What are the different types of commercial properties?
Ans. The different types of commercial properties that you can invest in are warehouses, factories, retail spaces, shared workspaces, restaurants, hotels, etc.
Q3. What is the tax implication if you decide to sell your older flat for a new one?
Ans. As per Income Tax Act 1961, in case you sell a property and purchase a new one with the entire capital that you receive by selling the property within two years, capital gains are tax-exempt.
Q4. What is a lease?Ans. As per section 105 of Transfer of Property Act, a lease is when an owner gives the right to use the property for a certain time to another person. This right is given in exchange for money or other services.