I recently re-visited the state of Goa. My last visit was an alcohol-fueled let-loose trip that I took with my school friends after finishing high school. That was nearly 7 years ago. This time my travel was more for the purpose of buying a residential property in Goa for my parents for their post-retirement life. We checked out multiple properties in Panjim(Panaji) and Dona Paula which are the top sought-after areas for residential purposes.
The total value including stamp duty and registration charges ranged from INR 70 lakhs to 1.7 crores for 2-BHK flats. The flats we explored were in gated societies with a community club and many other facilities. They ranged from INR 90,000 per square meter to over 1.2 lakh per square meter.
All the while, I heard the term RERA (Real Estate Regulatory Authority) being used a lot by the agents as well as by the builders. I knew it was an Act regulating real estate dealings in Goa, but I knew I had to learn more about it. And thus, I began my deep dive into what makes Goa real estate so special but also so tough for non-local builders to get into.
The Legal Framework of Buying Property In Goa And India
Previously a union territory, Goa was granted statehood in 1987. However, the central government is the appropriate authority that regulates the real estate sector. The Real Estate (Regulation and Development) Act, 2016 is an act established for regulation and promotion of the real estate sector in India and to ensure buying and selling of real estate properties in an efficient and transparent manner. It also protects the interest of consumers in the real estate sector and establishes adjudicating mechanisms for speedy dispute resolutions.
This Act establishes authority in each state for the regulation of real estate in that state called the Real Estate Regulation Authority (RERA). Such authority will govern both residential and commercial real estate transactions and help to carry out the provisions of the main act. RERA will ensure the discipline of timeline in delivery of project which is a big relief for home buyers..
Rules under RERA for the state of Goa were notified in November of 2017. The notification published in the Official gazette of Goa is divided into 5 chapters and includes formats for all forms relating to registration and intimations between promoter/builder, buyer and the RERA Authority.
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Do not forget to claim deduction u.s. 80C during ITR filing
Buying a real estate property involves further legal and statutory costs like stamp duty, registration, and GST and may range anywhere between 15-20% of the basic cost. The government has listed these expenses under Section 80C of the Income Tax Act, 1961, to give taxpayers some relief. The deduction of upto INR 1.5 lakh however can only be claimed once the property is fully constructed and you have legal possession of the house.
Pay Attention To GST Exemption as well
Further research into buying a home in Goa led me to understand the differential GST treatment levied by the central government with respect to ready-to-move-in properties and under-construction properties. The most lucrative thing about picking a ready-to-move-in property is that they are totally exempt from GST.
Whereas the GST rates for under-construction properties are 12%, having been slashed to 5% post-April 2019. However, builders whose residential projects are incomplete will have the option to choose between old GST rates and new ones. Beware of this because builders will try to coerce you into paying @12% whereas you should ask for GST to be deducted at the rate of 5% only. Such was the case when we had tried to agree payment terms with the builders of one of the properties.
Finally, after touring multiple properties in multiple locations across central and south Goa, I came upon a definitive favorite. Aldeia De Goa, meaning village/settlement of Goa in Portuguese, is a spread out over 140 acres of sheer paradise. It consists of villas, seaside plots with a 30,000 square feet clubhouse, water sports and a 5-star Grand Hyatt situated within the property. It spells pure luxury and post-retirement bliss. Perfect for my parents who after working years and years in long-hour jobs deserve the peace, quiet and tranquility that Aldeia De Goa will surely provide.
So when the day comes, when you go to look for residential or commercial properties for yourself or your loved ones, you will be ready to handle swindling and shady builders and agents and buy the house of your dreams. Whether you are looking for a property to live-in, rent, AirBnB or for any other commercial reason, we at MoreTasks got your back.