The property market depends a lot on the increasing/decreasing percentage of the reckoner rate as it allows the aspiring home buyers to plan property purchase. Hence, it is important to stay updated with these rates which are commonly popular as the term, Circle rate. Many home buyers, landlords and people are aware of this but still, some of you might not have a deep understanding of this subject. So, here is all you need to know about Circle rate as it plays a crucial role in the home buying process.
- What is Reckoner Rate?
This rate is an estimated cost of properties set by the Government for different areas where all selling deal must begin from the fixed amount. The reckoner rate [RR] differs mainly from State to State but this rate also varies from city to city at times. The Government takes several factors into consideration while setting the Reckoner rate as the property buying cost depends completely on RR [Reckoner rate]. The Registration fee and Stamp duty charges are added to the property cost according to the circle rate and then the home buyers get to know the exact payable amount for the purchase of their dream home.
- Know How Reckoner Rates Affect Property Transactions
This rate is the minimum amount payable for buying of a residential property. But, the property market has its own rules. The brokerage amount, kind of property purchase such as direct from the developer or a realtor are some things which hamper the property price and thus the aspiring home buyers have to shell out more money from the pocket. Apart from this difference the prospects also have to bear stamp duty charges and registration fees which escalate the property price. Like said earlier, the stamp duty charges are different from State to State and it is always beneficial to purchase a residential property in the name of female spouse as the Government offers a rebate on stamp duty charges for women. So, take this opportunity to save money as the reckoner rate is defined to help people with property purchase.
- Importance of Circle Rate for Homebuyers
The Reckoner rate is the foundation of home buying procedure and thus all prospects must check for this rate as the increase/decrease here proves beneficial to save money and raise funds for home buying.
- Revision of Circle Rate
This rate is kept lesser in comparison to the market rate as it helps people to own a home. Also, the addition of other charges increases the property price which affects both buyers and the realtors directly.
The market experts suggest you buy a residential property when the circle rate is low in the preferred area as it allows you to make a budget-friendly deal.
The people in Mumbai are familiar with the term Reckoner rate and the Delhi-NCR people know this term as Circle Rate.