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Deepak Shenoy: Real Estate Calculator, Short Selling in India

Deepak Shenoy of The Indian Investors Blog left a comment on my “Buy vs. Rent” post that’s worth highlighting.

He has himself created a much more detailed real estate cash flow calculator that shows “why most real estate investments fail in India”.

  • Simply put, real estate investment in India is all about capital appreciation and not about cash flow. So invest if you may, but focus on capital appreciation.
  • Returns are best in the first three years

Also, he’s written up a post on how short-selling is effected in India, and why FIIs may not be the only ones doing it.

This entry was posted on Thursday, March 15th, 2007 at 1:57 pm and is filed under trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  • Bangalore Real Estate: “Rent or Buy” Part II
  • Bangalore Real Estate: Yet Another Buy vs. Rent Data Point
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    4 Responses to “Deepak Shenoy: Real Estate Calculator, Short Selling in India”

    1. Pia Says:
      March 16th, 2007 at 1:30 am

      Hi,

      I was planning to buy property in Bangalore and was wondering what registration fees, taxes, VAT I would need to pay above the value of the property. If I had to buy an apartment for 90 lakhs what would my total expediture be including the above. Thanks a ton. I have found your website very intersting

    2. Kaushik Says:
      March 16th, 2007 at 2:58 pm

      Pia,

      Please refer to the website of the Department of Stamps & Registration, Government of Karnataka.

      Here’s is a couple of pages that walk you through the calculations:
      * http://www.karigr.org/stampdutyregistration/Default.htm
      * http://www.karigr.org/modeldeeds/firstsaled.htm#pay

      I guess you should count on paying an additional 10% of the property (transaction) value for stamp duty, registration, etc.

    3. Pia Says:
      March 16th, 2007 at 10:49 pm

      Thanks. Bangalore has VAT now does’nt it ? Does it apply to resale of apartments as well and how much is it?

    4. Kaushik Says:
      March 16th, 2007 at 11:02 pm

      Not sure about VAT. I know that the recent budget decided to include commercial real estate rentals in the tax net. Perhaps you are thinking of the “Works Contract Tax”?

      http://www.indiainfoline.com/budget/innernews.asp?storyId=28557&lmn=8
      “ii. State Government levy Works Contract Tax on the transfer of property involved in the execution of a Works Contract. Value of services provided in relation to execution of Works Contract will be subjected to 12% Service Tax.”