Exchange your old property for a new one?

 

Can you exchange your old property for a new one?

 

There are many who look to exchange their old property for a new one. For some, the reason is the need to relocate to a new area or city, while others want to upgrade to a bigger house, a house with parking,  house with sunlight

Though a relatively new concept, ‘exchanging a property’ is possible in Himachal. Take a look!

Guru from Zirakpur asks on open house the discussion forum of Magicbricks, “I have a old 2-BHK flat at Sunny Side, Solan. Currently, I am living in Zirakpur but wish to shift to a bigger house in solan, how can I get this????

 

Yes it is possible; exchange your old house in Solan, Shimla or Tricity with a life style apartment in Chester Hills Solan or Cliffton Valley Shimla

 

I would like to know if it’s possible to swap my property in Shimla with a property in Solan? The difference in cost can be settled by cheque.” Yes- It is possible

 

Narain Chauhan wants to exchange his house for a flat. He asks, “I have a residential house in Anji, Solan . Is there any developer who can exchange it and give me a flat instead?"

 

Gaurav Sharma , proprietor, Aditya Homes says, “This is a new concept in this area and will clock very well, this will make people get the right choice of their property , they can now dispose of their old property and have the property of their dreams, bigger houses , with facilities matching the metro’s

 “This scheme can be lucrative for those who find it difficult to get buyers for their unused flat , which was once in use and now is not used or is underutilized .

KD Sharma from Chandigarh wants to know the tax and legal implications regarding such exchanges. Vaibhav Sankla, director, H&R Block answered him by saying, “This transaction gives rise to capital gains as there is an exchange of assets. However, if the property to be offered in exchange is a house and is held by the individual for more than three years then the entire gains arising on such an exchange could be claimed as exempt under Section 54 of the Income Tax Act, 1961. Possession of the new house must be obtained within two years and the value of the new property should be higher than the amount of capital gain.”

Atulay Nehra, owner of Atulay Nehra Consulting, a legal consultant firm, advices, “Get your property valued from a government certified valuation expert and get a certificate. If there is difference in value, the amount should be taken from the developer or additional goodies or facilities should be negotiated. If the property with which the house is being exchanged is under construction, exchange only on the basis of Agreement to Sell.

Process

The application sum will be 10% Along with duplicate papers of the property.

Not only this, there are some rules too that are to be followed. Minimum investment that is to be done must be 2.5 times of the offered property.

 With this the further procession would be done. The customer needs to 10 % of the desired apartment up-front and remaining amount at the time of possession. This further sustains the trust of investors in the builder with the genuine sense of satisfaction.