A primer on how to buy a property in Goa
Source: Money Control ( https://bit.ly/449IC00 )
Planning to buy a second home in Goa, especially now that the new airport in Mopa is operational? To start with, a prospective homebuyer should know that the Land of Beaches has emerged as a preferred choice among buyers of second homes on account of the high rental yields it offers. These typically range from 4 percent to as high as 15 percent for luxury sea-facing properties.
Before zeroing in on a property in Goa, buyers should keep in mind that unlike some states in North India that offer a partial fee waiver on stamp duty for female owners or joint owners, such waivers are not available for women buyers in Goa. Also, there is a slab system for property registration, which means that the stamp duty is dependent on the cost of the property being purchased.
Most important, make sure that the title of the property is properly vetted by a legal expert, as several land parcels belong to local Goan families and the Church maintains a record of these properties. Buyers also have to be aware of the Coastal Regulation Zone (CRZ) norms and ensure that the sea-facing property that they are buying has a setback of 500 metres from the coast.
It has been seen that some people who wish to upgrade to a better home in their cities are now preferring to buy a second home in Goa since the rental yield is between 4 and 8 percent, depending on the location of the property.
A 3BHK villa can be rented out for Rs 35,000 a night, while a 6BHK villa can fetch as much as Rs 1.5 lakh a night during the December to January tourist season. Non-season rates are Rs 20,000 a night for a 3BHK villa and close to Rs 80,000 a night for a 6BHK villa.
Real estate prices and rentals
Property prices in Goa range from Rs 4,500 per square foot (sq ft) to Rs 12,000 per sq ft. In Goa, a home with a sea view may cost upwards of Rs 2 crore. Properties in North Goa cost more than in South Goa. Rental yields range from 4 to 15 per cent.
Tax and financial implications on buying property in Goa
Stamp duty and Registration charges: Stamp duty is a compulsory fee that a buyer has to pay to the state government to get the property registered under his/her name.
The GST on under-construction property in Goa is around 5 percent, while for affordable housing projects, it’s only 1 percent. There is no GST on ready-to-move properties or on those projects that have received the completion certificate.
This fee is around 2 percent of the total cost of the property. However, some brokers can be expensive and may charge a higher fee.
Maintenance and Society Security Deposit
The maintenance deposit is to be paid to the builders as an advance towards the maintenance of the building and its amenities for up to two years.
Total legal fees can start from Rs 50,000 onwards.
House tax and other fees
If it’s an old Portuguese house, the house tax receipt will show a range of around Rs 500 to Rs 600 a year. Other taxes include garbage tax, fees associated with the local panchayat, and cleaning fees, among others.
Infrastructure and development disparities
While certain areas in Goa have witnessed substantial infrastructure development, there can be disparities between different regions. Some areas may have limited access to essential amenities such as water supply, electricity, and proper road connectivity. Investors should carefully evaluate the infrastructure development plans and potential growth prospects of the chosen location