Guide for Kallakurichi Residential Real Estate Investment
The city of Kallakurichi in Tamil Nadu came into existence in 2019. It is home to numerous schools and colleges, both government and private. Some notable colleges in the area are Polytechnic College in Sankarapuram, Kallakurichi Medical College and A.K.T Engineering College.
Roads and railways will connect the city to the rest of the state. National Highway 79 passes through Kallakurichi, which connects Salem to Ulundurpet. The nearest railway station is Chinnasalem Railway station. Textile, jewellery and agricultural feeds are some of the major businesses here.
Let us understand why investing in Kallakurchi’s residential real estate might be profitable.
Top Reasons to Invest in Kallakurichi Real Estate
Here are some of the reasons why you should invest in residential real estate in Kallakurichi:
Kallakurichi has all the facilities, such as schools, colleges, hospitals, shops, hotels etc. Moreover, it has great connectivity to other prime locations in Tamil Nadu. The roads are maintained well, and traffic jams are quite controlled here. Bus services are also great in the locality, thanks to the Kallakurichi Bus stop.
Kallakurichi, located near Vannanjur, is one of the prominent localities in Villupuram. Many residential properties are available in the locality, out of which the majority are residential lands and independent houses. Many people in TamilNadu have been shifting to Kallakurchi because of its proximity to all the necessary amenities.
Residential Real Estate Investment Opportunities in Kallakurichi
Here are some localities in Kallakurichi that can be ideal for residential real estate investment:
This area has all the amenities like banks, railway stations, schools, bus stops, shopping malls and theatres within 2 kilometres. Grocery shops are nearby. This locality also has great transportation facilities as auto and cabs are available easily. It is one of the fastest-developing localities in Tamil Nadu. The rate of residential land is quite affordable here and ranges around ₹500 per square foot.
There are many schools in the locality, like RR Cambridge School and Shri Ram Government School. Even colleges like AKT Engineering and Polytechnic College are present in the vicinity. The Kallakurichi bus stop is also nearby. The rate of residential land in MRN Nagar ranges around ₹500 per square foot.
Things to Consider Before Buying a Residential Property in Kallakurichi
Here are some factors that you should consider before purchasing a residential property in Kallakurichi:
Before opting for a property, you should check whether the property adheres to the norms of the Real Estate Regulatory Authority (RERA). RERA is an administrative body formed by the Real Estate (Regulation and Development) Act of 2016, under the Government of India and is present in all states.
Each state has its own RERA portal, where it updates and records all information related to the properties and builders registered in the state. Make sure to visit the website of RERA Tamil Nadu for property verification.
You should ensure that the location is accessible to all the prominent localities of the state. Furthermore, all modes of transportation should be available to attract better tenants because an area in the vicinity of prominent localities will have a higher value in the future than those in the outskirts of a city.
Stamp Duty in Kallakurichi, Tamil Nadu
Stamp duty plays a significant role in the entire process of property purchase. Rates of stamp duties applicable in Kallakurichi, Tamil Nadu, are as follows:
|Exchange||7% on the market value of more significant value|
|General power of attorney to sell immovable property||₹100|
|General Power of Attorney for consideration||4% on consideration|
Registration Charges in Kallakurichi, Tamil Nadu
State governments impose charges when there is a property transfer. Rate of registration charges applicable in Kallakurichi is as follows:
|Exchange||4% on the market value of more excellent value of property|
|General power of attorney to sell immovable property||₹10,000|
|Sale Agreement||1% on Advance money (if possession is given, then 1% of total sum is taken into consideration)|
|General Power of Attorney given consideration||1% on consideration or ₹10,000, whichever is higher|
Kallakurichi Residential Real Estate Sector: What’s the Forecast?
The availability of all necessary facilities like schools, colleges, hospitals, companies, hotels and shops makes Kallakurichi one of the best residential real estate investment locations in Tamil Nadu. The cost of residential land here is extremely low, with chances of heavy price appreciation in the future; therefore, it is a prime time to invest if you wish to earn a substantial return in the long term.
Affordable apartments are also available in the locality. Therefore, whether you are looking for residential land or independent houses, Kallakurichi offers all the facilities at a cheap rate.
Residential Real Estate vs Other Asset Classes
Here is the comparison between residential real estate and all other types of asset classes:
Residential Real Estate vs Gold
Residential real estate investment offers a scope of earning passive income every month, which is not possible in the case of gold. However, the quantum of investment is much higher in the case of real estate.
Residential Real Estate vs Bonds
Real estate offers much higher returns in comparison to bonds investment. However, bonds are much safer than real estate. Moreover, Bonds are more liquid than residential real estate investments since they may get redeemed in cash.
Are you interested in investing in this secure asset that can offer you 9 to 11% fixed returns? If yes, register yourself on our platform today and start investing in top-rated bonds.
Residential Real Estate vs Stocks & Mutual Funds
When compared to real estate, stocks and mutual funds earn better returns. However, real estate is better than stocks in terms of consistent returns. . Moreover, real estate requires a huge quantum of investment, while you can start investing in mutual funds with a nominal amount.
Residential Real Estate vs Commercial Real Estate
Commercial real estate offers better returns in comparison to residential real estate. However, residential real estate gives larger tax advantages if a homeowner takes out a mortgage.
Here is a tabular representation of comparison between different assets on the basis of returns, liquidity, risk, volatility and ticket size:
|Parameters||Commercial Real Estate||Stocks & Mutual Funds||Gold||Residential Real Estate||Bonds|
Steps to Invest in Residential Real Estate in Kallakurichi
Here are the steps that you can follow if you wish to invest in residential real estate in Kallakurichi:
Step 1: Prepare a budget as per your requirements.
Step 2: Make a list of locations with all the amenities that might be apt for your investment.
Step 3: Consider visiting the shortlisted locations and check all the legal documents of the property. You can also get in touch with a property broker for this.
Step 4: After finalising a location, contact a lawyer to prepare all the necessary documents like the sale deed, power of attorney, agreement, etc.
Step 5: Complete the payment process. Make sure to complete the stamp duty and registration formalities as well.
Step 6: Finally, pay for the services provided by the broker and lawyer.
Although residential real estate might help you earn a lot of returns, there are certain risks linked to it as well. Therefore, examining whether the property is on the state’s RERA platform before investing in real estate is preferable. It ensures that the property is authentic and you will not face any future legal complications. Therefore, ensure to review all the property documents minutely before investing in a residential property in Kallakurichi.
Frequently Asked Questions (FAQs)
What are the types of commercial property available in the market?
The commercial real estate properties available in the market are office spaces, retail spaces, industrial areas, hotels and hospitality chains.
What are the types of residential property available in the market?
Types of residential real estate that you can invest in are apartments, duplexes, villas, bungalows, penthouses and row houses.
Does real estate investment offers better tax benefits than mutual funds?
No, mutual funds offer better tax savings than real estate investments. Under Section 80C of the IT Act, you are eligible for a maximum tax benefit of ₹1,50,000 on mutual fund investments.
On the other hand, you can avail tax benefits on a residential property if you avail it through a home loan. You can avail income tax deductions on home loan principal and interest payments.
Which is more volatile between gold and real estate?
If we compare it to gold and other investment options, real estate is subject to low volatility. It is mainly because gold prices fluctuate based on global market sentiments. On the other hand, residential real estate investment offers a stable price appreciation in the long term.