What I do if I am seller
What I do if I am seller
The Top Line and Bottom line is that sale is standstill not because of Taxes but investors are not feeling that any gain will come in 2,3 years, rather loss is expected.
Almost 2 Months have passed and there is still no clear market direction, The demands
prices have failed to decline. Most experts agree that prices will come down a bit may be 15 to 20%. However More Sure thing is that, they will not rise in near future. If I am a seller, and holding a plot in an “Inflated” area. Say worth 100 Lac in peak time. I must be sure that prices will not increase in coming 2,3 years at least, The Likely Hood % wise is that It may Come Down to 85 Lac in March 2017 [70% Likely hood] may fall another 10 lac and fall to 75 Lac in Dec 2017 [ Likely hood 50%] May not fall at all and keep hoovering at same level 25% Chance, Have another Kick in 2 years’ time almost no Chance.
In this scenario I will be benefitted if I sell it in 1,2 Months with 7,8 lac Bargain say in 92 Lac and Pay 5 Lac Gain tax. If My Plot is small and less than 40 Lac even Gain Tax Factor will be lesser. In market there are always buyers due to certain reasons. Make sure not to sell to investor on biana [ Currently market is full of these disputes]
If I am lazy or Long term holder then in 3 Years Price will be lesser than today and end of 4 years price will reach current value and then will start growing fast like cycle. That explains why in hype the gain gain is 200% annualized and why in long term the gain is 17,18 % annualized.
Again the Bottom line is that sale is standstill not because of Taxes which are just about 2 lac per 100 Lac Plot but investors are not feeling that any gain will come in 2,3 years, rather correction is expected.