FLAVOUR OF THE MONTHthen the gains earned would
be referred as short-term
capital gains and taxed as per
your income slab. If you sell
the property after holding for
more than 24 months, then the
gains earned would be
referred to as long-term capital
gains and taxed at 20% with
indexation benefit.
- What all insurance one should
have to protect your home?
Your investment into house
property would be on a higher
side. To protect such
investment, it is essential to
take a home insurance, which
will cover any loss to structure
and contents due to both
natural and man-made
calamities. In addition, the
contents can be covered
against the risk of burglary too.
Ideally, the structure of a house
needs to be covered for the re-
co n s t r u c t i o n c o s t.
Reconstruction cost is defined
as the cost incurred to
reconstruct the house if it is
damaged. The ideal cover can
be arrived at by multiplying the
built up square feet area and
the construction rate per
square feet.
Apart from insuring the
property, it also makes sense to
insure your home loan. Most of
the lending companies insist
on the same while lending. You
can take a separate home loan
insurance, which would cover
the home loan outstanding
amount at any given point of
time. In the event of the death
of the borrower, the insurance
company would pay the
outstanding loan amount at
that time to the lender and the
loan shall get closed.
Alternatively, you can also take
a term insurance cover
separately. In this case, the
beneficiary of the policy would
receive the amount in the event
of the death of the policy
holder and would repay the
outstanding loan amount to
the lender and get the loan
closed.
Benefits of house property
· The major benefit that an
investor could gain from
house property is at the time
of selling the property.
· Rental income is the best
income to the investor as
there is a monthly fixed
inflow.