From the budget speech 2079/80, the government has made an arrangement that only individuals and companies that have got permission from the official body can get real estate transactions. Presenting the budget in the parliament recently, the finance minister informed that the government has made such an arrangement.
It is expected that its detailed policy, working method to come in time . The Finance Minister said that the government has made such arrangement to make the real estate business systematic and transparent. Presenting the budget in the federal parliament, the finance minister said that only individuals and companies with permission from the official body would be allowed to do real estate business. In the opinion of some people, in an open economy, it is not appropriate to do this on land, but it can be a matter of discussion. He informed that it will be implemented in metropolitan and sub-metropolitan areas in the coming fiscal year and it will be implemented in all localities gradually.
In addition, the budget 2079/80 and the Finance Act have increased the capital gains tax on real estate transactions. The budget presented by the government in the parliament has increased the capital gains tax. According to the new provision, when selling a house or land owned for less than five years, one will now have to pay 7.5 percent capital gains tax on the profit. Earlier, such tax was 5 percent. The price of real estate seems to be rising sharply .
Similarly, when selling a house or land owned for more than 5 years, 5 percent capital tax will have to be paid. Earlier, such tax was only 2.5 percent.
Capital gains tax is levied on houses and land bought and sold for more than Rs. 1 million and capital gains tax on house and land is to be paid at the time of transfer of name. The sale price and profit of any house or land can be self-declared. However, the declared price should not be less than the assessment amount fixed by the government.
The capital gains tax on real estate transactions has increased. The budget presented by the government in the parliament has increased the capital gains tax. The government has increased the rate and scope of revenue.
Increasing the value of deposits required for modernization is not a good sign. Selling or buying a house or land is a complex task that requires experience and knowledge.
For this reason, you need to surround yourself with the right people for a successful real estate project. A real estate agent is a professional who will accompany you through the negotiation process, with the help of a notary until the end of the sale.
In the case of real estate transactions, their role will be to estimate the value of the property, gather all the necessary documents, work on the marketing strategy and promote your property. This can be a long and tedious process which can be very challenging for those who choose to do it on their own.
However, there are advantages and disadvantages to working with a real estate agent. This is one of the main reasons why so many rely on real estate agents in foreign countries. In Nepal it has to be seen the effectivesss and efficnency after the promulgation of the policies, then if needed Act and regulation, bye laws, working oder so on and so forth.
If the idea of bargaining for a property makes you sweat, contact an experienced broker so they can work for you! In addition to all of them, they are also widely familiar with the legal and financial aspects of the real estate sector and will definitely help you to avoid making any mistakes. Market knowledge
As experts in the field of real estate, agents know a lot about the targeted residential area and will establish the right value for your property. If you are buying a home or other type of property, they may advise you to avoid the recommended areas or places so that you do not regret buying.
An experienced agent needs to be able to pinpoint exactly what you need in order to find what you are looking for.
Who hasn't heard of a mistake or a scam in a real estate transaction? The role of a real estate agent is also to help you avoid unfortunate situations when you encounter people with bad intentions. With the help of agents certified by the authorized regulatory bodies the Self-Regulation of Real Estate Brokerage, your business must be protected by the Real Estate Brokerage Act, if any, which governs this profession.
This organization provides very clear rules regarding brokerage agreements, so it is important to make sure that your real estate agent is a member of a government-recognized organization before taking any action.
The government is tightening its grip on the real estate sector, which has been seen as a non-productive sector, as capital has started flowing in at a high rate. According to sources, arrangements are being made through the budget to control the current growth of real estate business and to conduct systematic transactions and pricing and evaluation.
According to a source, the policy of real estate transactions through the company has been put forward to make the current unorganized land transactions in the country systematic. The policy and program announcing to make the real estate business systematic states that the real estate business which is going on illegally will be arranged to be traded only from the specialized area.
It is mentioned in the program that a separate organization will be formed for real estate business.Lately, the price of land has been increasing unnaturally due to uncontrolled competition for settlement.
The government is going to make the land transaction systematic as the number of people selling land by plotting even on hilly and arable land has increased. Banks and financial institutions are also investing heavily in real estate.
The government is ready to manage and control this too. The government had earlier tried to control tax evasion by making real estate transactions transparent by creating a system of buying and selling in the style of share trading, but it could not be implemented.
At a glance, the government's recently released Economic Survey 2078/79 shows that real estate transactions have increased recently. As land and house buying and selling services and rental services activities increase, it is easy to assume that the total price rise in this sector will continue to increase.
According to the Economic Survey, the total inflation in the real estate sector is estimated to increase by 3.82 percent in the fiscal year 2078/07. Such growth rate was 2.25 percent in FY 2077/07.
The contribution of this sector to the total value added in FY 2077/78 was 9.09 percent and it is estimated to be 8.76 percent in FY 2078/07.
In the last ten years, the average contribution in this sector has been 9.09 percent and the average growth rate has been 2.29 percent. Private sector umbrella organizations have also been suggesting for a long time that the real estate business should be made systematic.
Real estate can be described as tangible real estate, possibly including land and buildings. In rural areas, even a piece of deserted land is considered as real estate, just like the house you own.
Real estate can be bought and sold, it can be owned by one person, government or corporation. Some opine that the real estate business in Nepal is very promising and investing in real estate with proper knowledge and consistency is undoubtedly beneficial in the long run.
Anyone with a steady income and looking to grow their portfolio can start with real estate to earn a rewarding income.
Why is real estate attractive?
Due to the rapid growth of physical infrastructure, road expansion, etc., the demand for real estate market in Nepal is high, so the value of real estate will increase. As real estate can generate a passive source of income and is seen as a good investment in the long run, government policy needs to be positive.
Real estate offers better returns than the stock market due to lower risk in property ownership; However, there are many factors beyond your control in the stock market that can affect the valuation of a stock.
For example, a new car decreases in value over a period of time but the value of a real estate property is always a commendable value. Property law in Nepal
The law relating to property is protected under Part 4 of the Civil Code, 2074. Any dispute relating to property is resolved accordingly. However, the law on real estate business is new to Nepal and has many shortcomings.
Nepal's property law basically covers the following areas: Ownership:
Under the section, any property ownership issues or other disputes arising out of it are handled by possible remedies. Public Property: Transferring any public property listed as public property or in the name of government is strictly prohibited.
Transfer of name:
The owner of the property has the right to sell, give or transfer his property to any person, although the consent of all parties involved is required in the case of joint property. Laws for Women in Nepal
The Government of Nepal has made some amendments to the laws relating to land acquisition and ownership, especially for women. In Nepal, only 19.7 percent women have land and to increase the percentage, the government has given a discount of up to 50 percent in the registration fee if the land is registered in the name of a woman.
Land rights have provided security, confidence and freedom to the women of the nation. The value of real estate in a democratic republic, including land and real estate investment tips: how to start investing in real estate home in Nepal is always increasing, and the statistics show that this amount will continue to increase in the coming years.
It is said that Nepal is a paradise for those who understand real estate business. The country is a land of immense opportunities for those who want to live in the realm of land and house buying and selling. However, if you are not already a professional, the topic may confuse you.
So, today we are compiling some simple tips that will help you to start a property business in Nepal. Here are some tips to help you start investing in real estate in Nepal. First, be willing to take action. Do you know why so many people fail in the real estate business? Because they don't all start. Here's the idea - if you're just curious about the house or the land, you won't make anything out of this article
The difference between earning money and not making money from real estate is that the former are willing to apply their knowledge. Banks' interest rates are not as high as you might think, and at the same time, land or house prices in the country are rising. To help you with that, here are some of the best home loans in Nepal.
Partner with someone is a great strategy to partner with to invest together in a plot or special piece of house that you can't afford on your own. But remember, in doing so, you need to make it clear to your partners that everyone is taking their own risk. Among the various areas of investment in Nepal, everyone should know about land and building holding. We can say that real estate business is flourishing in Nepal and will bring huge profits to investors in the coming days. So, if you are looking for the best investment opportunities in Nepal, there are lands or houses and apartments that can make you a lot of money.
What is a real estate business?
The real estate business involves buying, selling, leasing, and brokerage of real estate. The real estate business in Nepal has grown exponentially in recent years. Although the pandemic hit hard, the number of buyers and sellers seems to have increased.
With all of this, starting a real estate business can be an opportunity for new investors. So today, it is important to have a discussion on how to manage the real estate business in Nepal with an in-depth analysis of all the steps involved in the process.
In order to understand and manage the real estate industry in Nepal, it is necessary to make honesty and transparency our primary slogan. Although there may be many, for now, understanding the real estate industry in Nepal requires some research.
History of Real Estate Industry in Nepal
We have a record of buying and selling real estate in Nepal about a century ago, but its recognition as a business started only in 1990. There has been an increase in real estate companies in Nepal. Currently, we can find them in almost all major cities, while most of them are in Kathmandu. Different Types of Ownership in Real Estate
There are three types of ownership in real estate; Privately owned, publicly owned and owned by corporations. Privately owned house or land is owned by a special person. Publicly owned land is owned by the government and real estate owned by the corporation is owned by some kind of entity. They all have different legal provisions attached to them. How is the value of real estate calculated in Nepal? There are no proper rules for calculating the value of real estate in Nepal. To date, we trade real estate based on estimates. To calculate the value of land like land: geographical location, access to basic living facilities (e.g., water, electricity, internet to home, nearby healthcare, educational institutions, airports, roads), especially land supply and demand areas play a role.
The value of a home is harder to find than land; The quality of the materials used and the size of the building can be ascertained only by observing. Then adding the value of the land helps us determine the final value of the house.
Law is the thing that maintains the integrity and peace of the nation. It also guarantees the safety of personal, public, and corporate property. Real estate also has many legal provisions - from taxes to the division of inherited property.
As a real estate business owner, anyone can cope with all of this. Therefore, proper knowledge of these legal provisions has an important place.
Real estate loan in Nepal
Most real estate businesses in Nepal still rely on real estate loans from financial institutions. To understand the real estate business in Nepal, your research should include complex details of real estate loans. It is important to make honesty and transparency our primary slogans. In the real estate business, we seldom see the real value of real estate reflected in legal transaction papers.
A land / house can be bought and later sold or leased. Another is to become a real estate broker - where the job is to find buyers and sellers of real estate in exchange for brokerage commissions.
There are many other individuals or groups based on the type of real estate business being set up. First let's look at their role: Lawyers meet us everywhere by legal provisions - whether it's buying or selling real estate or paying taxes. So lawyers are important inclusions here.
Engineers assist engineers in the design of the building and help us ensure its durability and safety as the constructed building meets the engineering parameters.
Programmers : They help develop websites and mobile applications for our real estate business. Administrative officers help them run and run the organization. They also serve as a point of contact between all employees. Accountants Their primary job is to maintain the organization's financial records.
Intermediaries actually go to the markets and work to find buyers and sellers for real estate deals.After gathering all the manpower, it is time to distribute suitable responsibilities for all on the basis of capacity..