Residential Real Estate Investment in Amarnath
The magnificent Amarnath is situated in Anantnag district in Jammu & Kashmir. This place has gained worldwide popularity because of the presence of the holy shrine of Shiva Linga. Mostly, tourism is the primary sector that contributes to wealth generation. There are different legends and folk stories about this place that serve as another attraction for tourists.
These factors mentioned above created multiple investment opportunities in Amarnath and near Anantnag. Follow this guide to learn about the funding techniques for residential real estate in this place.
Top Reasons to Invest in Residential Real Estates in Amarnath
The most important reasons to invest in residential real estate in Amarnath and near Anantnag:
- Reasonable Land Prices
Due to the high altitudes and lower demand, property and land prices are comparatively more reasonable than in metropolitan cities. This price relaxation makes investment in residential properties near Anantnag lucrative.
- Increasing Tourism Industry
As the revenue of this city is based on the tourism business, the growing rate of pilgrim footfalls acts as one of the factors increasing the scope of people residing in Anantnag. Thus, people seek to invest in residential properties for hotels or homestay businesses which are extremely profitable during peak tourist season.
Investment Opportunities in Residential Real Estates in Amarnath
The lucrative location near Anantnag where a person can invest in residential real estate are:
Pahalgam is located extremely close to Amarnath and is home to a majority of residential projects or buildings. The average price of the plot starts from approximately ₹ 4950 per square foot.
It is another hotspot where people seek to settle down. As it is close to Amarnath and has smooth road connectivity the location is high in demand. The average price of plots here starts from approximately ₹ 1428 per square foot.
Things to Consider Before Investing in a Residential Property in Amarnath
Here are the factors to consider before you make investments in residential real estate in Amarnath:
Before making a large investment in residential real estate, it is important to consider your existing financial condition. In addition, take note of the daily expenses and emergency requirements of finances.
- Quality of the Locality
The quality of the neighbourhood determines the price of the land. This means the availability of amenities in the same locality where a project is being developed helps investors earn better returns on their investments.
- RERA Authentication
Activities and transactions in the real estate market are governed by a statutory body that is vested in the compliances as laid down in Real Estate Regulatory Authority Act 2016. Every broker or dealer must register their projects under the RERA official portal of the respective states so that investors can check the authenticity of a project.
Stamp Duty in Amarnath
The rate of stamp duty for property registration in Amarnath and the rest of Jammu & Kashmir are provided in the table below:
|Type of Property Owner||Rate of Stamp Duty|
|Joint (Male + Female)||7%|
|Joint (Female + Female)||5%|
|Joint (Male + Male)||3%|
Registration Charges in Amarnath
The registration charges in Amarnath and other parts of Jammu & Kashmir
|Type of Property Owner||Registration Charges|
|Joint (Male + Female)||1.2%|
|Joint (Female + Female)||1.2%|
|Joint (Male + Male)||1.2%|
Amarnath Residential Real Estate Sector- What’s the Forecast?
Many projects and developments are gearing up in Amarnath that improve the scope of investment here for interested people. The Ministry of Road, Transport and Highway are making various attempts to improve the journey route for pilgrims.
For example, the Union government has planned a 22 all-weather long road stretching from Chandanwadi to Sangam. Also, an 11-km tunnel road is going to be set up under Ganesh Top to ease travelling.
Residential Real Estate vs Other Asset Classes
The basic comparison between the quality of the investment of residential real estate and other asset classes is explained below:
- Residential Real Estate vs Commercial Real Estate
Investing in commercial real estate properties will allow more rate of return as compared to residential real estate. However, it involves more cost of entry and difficulties in searching for tenants due to higher rent value. In contrast, investing in residential properties will offer you the opportunity of getting a tax benefit.
- Residential Real Estate vs Gold
Both gold and residential real estate give outstanding returns if invested for a long period. Though it is easier to buy and sell gold as compared to residential properties, gold might not perform well during inflation. Hence, in case of an unstable economy, investing in residential real estate offers you a better and more stable return on investment.
- Residential Real Estate vs Stocks and Mutual Funds
The investment sector of stocks and mutual funds is extremely volatile and faces constant fluctuations. Hence, people funding their money by buying shares or in mutual funds may face losses due to this instability. Here, funding your money in real estate sectors is ideal if one is interested in long-term investment and offers a steady rate of return despite market fluctuations.
- Residential Real Estate vs Bonds
Bonds and residential properties both offer passive income. Also, while bonds have the advantage of higher liquidity, residential properties on the other hand fetched better returns. Additionally, bonds also give the advantage of earning predictable income.
If you are looking for the industry’s best-performing bonds that involve low risk, register on our website today to explore your options.
The table below shows the profound comparison of different assets based on different factors like market liquidity, volatility, and risk involved.
|Parameters||Residential Real Estate||Stocks & Mutual Funds||Gold||Commercial Real Estate||Bonds|
Steps to Invest in Residential Real Estate Property in Amarnath
If one is looking to invest in residential real estate properties in Amarnath, here are the step-by-step guidelines:
Step 1: Analyse and consider your present and future financial condition before investing in residential real estate. Also, take note of your day-to-day expenses to make better financial planning.
Step 2: Once done, make a list of properties that suit your budgets and preferences.
Step 3: Carefully scrutinise all the property-related information and locality by checking both on-site and off-site data.
Step 4: You can also take help from local real estate agents or consultants to get better insights into the locality and the properties you have selected. Moreover, to get deeper insights into the reputation of a locality, getting in contact with real estate agents will be beneficial.
Step 5: Once you receive all the information, you can finalise one property after carefully considering all the factors about the property.
Step 6: Next, check for the authenticity of a property from the RERA portal of the respective state. Checking the details of a property in the RERA portal is important as it tells you whether the project has been built based on the RERA guidelines.
Step 7: Upon checking the details on a portal, verify the property-related documents.
Step 8: Set up all accounts and documents for the seamless and effective transaction including the transfer of ownership and possession of the property.
Step 9: Once all the above-mentioned steps are taken care of, do not forget to get comprehensive home or property insurance for the newly purchased property.
Amarnath, near Anantnag, is a sacred place where there is a footfall of a few hundred thousand pilgrims every year. This article specifies a comprehensive guide on the investment opportunities for people looking for these options.
Frequently Asked Questions
What is Amarnath famous for?
Amarnath is famous for the temple which is considered a holy place for Hindus. The shrine is located inside the Amarnath cave and serves as a main attraction for pilgrims all over the world.
What are the documents required for property registration in Amarnath?
Some of the important documents required for property registration in Amarnath and other parts of Jammu & Kashmir are an encumbrance certificate, details of the property, power of attorney if required, sale deed, valuation certificate, government ID proof of all the parties, etc.
What is the function of RERA?
The duties and functions of RERA (Real Estate Regulatory Authority) are vested in the activities and substantiate the authenticity of a project. This statutory body tries to find out whether a project is being built following the guidelines and norms of the law.
What is stamp duty?
Stamp duty is a tax residents pay to the State or Federal Government on the occasion of the transfer of assets or property. It is placed on specific documents.