Guide for Latur Residential Real Estate Investment

Latur is a city situated in the Indian state of Maharashtra. It is one of the largest cities in the Marathwada region. Apart from being a well-known tourist spot, Latur is an educational hub for secondary, higher secondary and university-level education. The Latur pattern of study, which includes intensive coaching, is also quite well known. 

Latur is also home to Western India Regional Council of Institutes of Chartered Accountants of India. Several polytechnic colleges, medical colleges and research institutes are also present here. The Dalda factory situated here was Asia’s first oil mill set up by cooperative terms.

Let us understand how investing in residential properties in Latur might be a profitable venture. 

Top Reasons to Invest in Latur Real Estate

Here are some of the reasons why you might want to invest in residential real estate in Latur:

  • Connectivity

The connectivity of Latur is excellent. However, this would not have been possible without good roads as well as rapidly emerging highways. Latur is also very well-connected with the rest of the country via railway. The intra, as well as inter-city bus services, have also further enhanced and improved the connectivity of Latur. Connectivity is why several residential real estate investors want to buy a property in Latur.

  • Education

Latur has transformed into an educational hub for secondary, higher secondary as well as university education. This city is famous for its Latur Pattern of study that involves giving extensive coaching. There are more than 140 colleges in the city. Government Medical Colleges are also there in the city. A large number of public, as well as private schools are also present in Latur, making it apt for becoming a residential real estate location.

Residential Real Estate Investment Opportunities in Latur

Here is a list of some of the locations which might be best places to invest in residential real estate:

  • Udgir

It is one of the best places in Latur. Some of the biggest markets of the state are present here. Public transportation is excellent as the railway station is only 2 km away. Even auto rickshaws are readily available. All the necessary amenities like hospitals, schools, banks, and grocery stores are present in the vicinity. Residential property here may cost around ₹9375 per square foot.

  • Arvi

It is one of the areas that is developing quite fast. All basic facilities like schools, colleges, hospitals and malls are within walking distance. It is quite a hygienic place with a lot of parking space and children’s playing area. Rate of residential property in Arvi is quite affordable and ranges around ₹2700 per square foot.

Things to Consider Before Buying a Residential Property in Latur

Here are some of the factors that you might want to keep in mind if you are planning to invest in a residential property in Latur:

  • Finances 

This is one of the most important factors when investing in a residential property. You might find a property that ticks off all that you were looking for, but after finalising, you discover that it is way above your budget. As buying a property requires a hefty amount of money, it is essential to calculate a budget keeping all your expenses in mind, like your income, loans etc. 

  • RERA Approval

It is of utmost importance to check whether the builder and the property you choose are authentic. You can do so by visiting the RERA Maharashtra website. RERA, or the Real Estate Regulatory Authority, is the statutory body that promotes accountability and transparency in India’s real estate sector. This body came into action after enactment of the Real Estate Regulatory Authority Act of 2016

Stamp Duty in Latur, Maharashtra

Mentioned below are the rates of stamp duty applicable in Maharashtra:

Stamp duty rates
GenderWithin the municipal limit of an urban areaWithin the municipal council of an area within MMRDAWithin the limit of Gram Panchayat
Male 6% of the property value4% of the property value3% of the property value
Female5% of the property value3% of the property value2% of the property value

Registration Charges in Latur, Maharashtra

Here are the rates of registration charges applicable in Latur, Maharashtra: 

GenderRegistration Charges
Male1%
Female1%

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

The starting price of proper in Latur is approximately ₹1500 per square foot. While the average price of the property here is around ₹4,048 per square foot. Therefore, as per the price trends, both purchasing and selling properties in Latur might be a profitable venture. 

Latur is listed among the most promising developing cities in India. It offers a great platform for setting up housing projects. Latur has a very distinct social and cultural structure due to the perfect blend of residential and commercial coexistence. 

Latur might be a great option in terms of residential real estate investments as it is home to a large number of healthcare centres, educational institutions, commercial centres, as well as entertainment options.

Residential Real Estate vs Other Asset Classes

Here is the comparison between the different asset classes and residential real estate:

Residential Real Estate vs Stocks & Mutual Funds

Real estate offers highly consistent returns if we compare it with stocks and mutual funds. However, returns are much higher in case of stocks and mutual funds. 

Quantum of investment is huge in case of real estate, while you can start investing in mutual funds with a minimum amount of money. In terms of risk and volatility, however, real estate is better in comparison to stocks and mutual funds.

Residential Real Estate vs Commercial Real Estate

Residential real estate investment offers tax benefits if the property is availed on a home loan. However, returns are comparatively higher in commercial real estate.

Residential Real Estate vs Bonds

Bonds are much less risky and offer much more stable returns than real estate. However, the returns are much lower in case of bonds if we compare them with real estate. 

If you are interested in investing in stable and secure assets and earning fixed returns as high as 9 to 11%, you can register yourself today and invest in the top-rated bonds available in the market.

Residential Real Estate vs Gold

Gold is highly volatile and risky in comparison to real estate. In terms of returns, real estate gives you a chance to earn something every month, which is not possible in case of gold. However, quantum of investment is much higher in case of real estate.

Here is the tabular representation of comparison between different asset classes as per their returns, liquidity, risk, volatility and ticket size:

ParametersResidential Real EstateStocks & Mutual FundsGoldCommercial Real EstateBonds
ReturnsModerateHighModerateHighModerate
LiquidityLow High High Low Moderate 
RiskLow High Low Low Moderate 
VolatilityLow High Low Low Low 
Ticket SizeHigh Varies LowHighVaries 

Steps to Invest in Residential Real Estate in Latur

Here are the steps that you can follow if you want to start investing in residential real estate in Latur:

Step 1: Prepare a budget keeping all your financial liabilities in mind. 

Step 2: Come up with a list of all the places where you will get the facilities that you are looking for in your residential property. 

Step 3: Take the help of a broker and visit all the locations and check whether their legal documents are authentic. 

Step 4: Select a property only after verifying that it adheres to the norms of RERA. Prepare the official documents for the purchase. 

Step 5: Complete the payment process. Remember to pay the requisite stamp duty and registration charges. 

Final Word

Latur is one of the most promising developing cities in India. This is attracting a huge number of residential real estate investors to invest and earn great returns in the future. However, to keep earning good returns, you need to take specific measures. One would be to insure your property from any sort of damage. Opting for a policy would financially secure your property so that any damage in the future can be repaired without much hassle. 

Frequently Asked Questions

Why is it necessary to register agreement for sale? What is the purpose of registration?

As per the Registration Act of 1908, Real Estate (Regulation and Development) Act of 2016 and Transfer of Property Act of 1882, it is compulsory to register an agreement for sale of immovable property. By this method, it becomes a public record, and the buyer becomes a legal owner of the property. 

What are the different types of residential properties? 

The different types of residential properties that you can invest in are apartments, dormitories, hotels, individual houses, lodging houses, etc.

If I sell a flat and buy a bigger one, what are the tax implications for capital gains?

If you purchase a new property within two years from the date of sale of the previous or the original flat and invest the entire capital earned into the new flat, then the capital gains are tax exempt. This is as per the provisions of Income Tax Act of 1961.

What is a lease deed?

A lease deed is basically a contract in which the tenant, also known as lessee, agrees to pay the landlord, known as the lessor, periodic rents for using the property.

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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