Control black money in property dealings by increasing circle rates to match market rates.
Though this initiative was taken by previous governments, it is yet to be implemented properly. Circle rates are quite less compared to the market prices. This means lot of black money is exchanged in every property deal. Can the state government increase the circle rates to ensure that the market prices match them ? This will mean lesser commission for dealers and more tax/money in the form of stamp duty revenue for the state government. more
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As per my research so far, I concluded that increase in circle rates will result in property prices coming down. This is because demand decreases due to increase in white money value (due to high circle rate). So this step of increasing circle rates will have positive impact in terms of economy growth and reduction in black money. more
Feb 17
In Delhi, circle rates are around 25% to 60% of the market value. Hence majority transactions (more than 90%) involve exchange of cash for the amount exceeding declared value. Another reason is to save on property tax. This makes real estate an investment heaven for people having ample black money. Simplest way to curb this is by increasing the circle rates reasonably. Governments should at least take basic and easy steps to stop circulation of black money, especially investment opportunities. more
Feb 17
I have a wild idea to control the property prices and increase the availability. Though I know this is hard to implement. And, that is - Ban property sell. Most of the properties in Delhi are owned by DDA and are given on lease to people. People do not have right to 'sell' these leased properties. If they do not need it, let them return it back to DDA. DDA in turn will pay them their purchase price + 12% (or whatever) annual appreciation. This way, there will be no benefit to property hoarders (investors) and they will release all properties (increasing availability) and only those who need will buy them. more
Feb 17
In India (Mumbai/Delhi), property prices are higher than even the best of places in USA. We all know how poor is infrastructure quality (not earthquake resistant, not fire proof etc.). How can a salaried common man earning white money afford to buy a property in India ? Circle rates should therefore be streamlined in line with the market prices. Quarterly review should be done for these circle rates. more
Feb 15
Proper market study shud be done before implementing circle rates. For eg. Some'A' category places where circle rates are higher than the market rate and because of that property sale has gone down drastically. more
Feb 15
