Buyers of residential property in Nagpur are now planning to postpone their buying decisions in wake of the demonetization move. People who are looking to buy flats in Manish Nagar and other Nagpur property are now waiting for a price correction to happen. The areas where the market price and government approved prices are not the same are likely to see a price correction. Also both buyers as well as sellers will have to face the consequences of demonetization move.
The sellers of flats in Manish Nagar and other Nagpur property will now also prefer to document the actual transaction details as if they do not do so they will have a difficultly in specifying from where they have received such a huge cash component . For residential property in Nagpur the sale price has always been different as compared to the amount which is entered in the registration document. When one buys residential property in Nagpur one pays a substantial amount as duties and fees which amount to almost 20%.
People pay a huge amount as registration fees, stamp duty and for various other taxes and this all can be reduced by simply under quoting the price of the asset on registry papers. The buyer therefore looks to mention undervalue or the minimum rate at which the property can be register on legal documents. The seller of flats in Manish Nagar and other Nagpur property also looks to register the deed at undervalue price so that he can save on the capital gains tax.
But now till the time there is new circulation of notes people will have to adjust with mentioning the actual selling rate on the legal registered documents. However by doing this both the buyers as well as sellers of residential property in Nagpur will have to pay a higher tax component so it is a loss for both of them. But looking at the larger picture it is for the greater good as now the government will receive more money from duties and taxes.
This money can be forwarded to impending infra projects which will in return boost the real estate prospects of the city. Also this might also lead the government of correctly valuing the price of land so that there is less ambiguity in the property deals so that the buyers and sellers declare the correct real value of assets and document it properly.