Property prices are impacted by numerous factors, and hence you have to stay up-to-date with real estate market trends in Trivandrum if you’re thinking of purchasing a home there. You may have heard the term ready reckoner rate in the field of real estate. Let’s understand what it is and why it’s important in property transactions.
What is Ready Reckoner Rate?
Ready reckoner rates are the rates of real estate properties in specific areas that are decided by the government after conducting a thorough evaluation. Several factors like the location, urban/rural area, accessibility, amenities, and more are considered before fixing the rate. The RR rates can vary vastly not just between states, but even within the same city, depending on the desirability of the locality for residential purposes. Any transaction that happens must be at this price or above, not below this rate. The stamp duty and registration fees are based on these rates.
Why Ready Reckoner Rates?
RR rates serve a few important purposes:
- Standardized property valuation and transparent transactions
- Reference point for price negotiations
- Accurate assessment of property tax liability
- Makes manipulation of property prices difficult, helps minimize unfair practices and makes the market more stable.
Do Changes in the RR Rates Impact Demand?
The ready reckoner rates are defined to prevent property being sold at unreasonably low prices. There is no cap on how high the price can be set, however. Often, the difference between the ready reckoner rates and actual price is pretty huge, and this can also create problems. Stamp duty and registration fees depend on the RR rates; so when market rates are high, the government actually loses money. This can be rectified by reassessing the property and increasing the RR rate. Again, if the RR rates are too high, it increases the fees to be paid, and buyers may not be inclined to register the purchase. Lower RR rates bring down property prices, and can make it more attractive to buyers. So yes, changes in the ready reckoner rates do impact the demand for property. Property valuation and setting the RR rates may also impact the future of real estate in Trivandrum.
The Importance of Ready Reckoner Rate for Home Buyers
RR rates help buyers to understand property prices and plan their funds for the purchase. It makes sense to buy in areas where the market price is the closest to the RR rates – this keeps prices reasonable for buyers. If you attempt to purchase property below the ready reckoner rates, you may face trouble:
- You can be suspected of illegitimate property dealings
- You may be subjected to legal scrutiny and penalties
- With undervalued property, you’re likely to earn less profit during resale.
- Fair market practice monitoring authorities are likely to scrutinize you
Such dealings can also have an impact on valuation trends, and you may end up with unrealistic RR rates that impact future transactions severely.
Conclusion
Ready reckoner rates, RERA norms, environmental regulations, zoning regulations – there are dozens of legalities and regulations that builders have to comply with. With Varma Homes as your chosen builder, you don’t have to worry about any of this. Ethical and quality builders who have earned a reputation for transparent dealings and outstanding construction, Varma Homes offer the best in apartment living. Their premium 2 and 3 BHK flats in Trivandrum in multiple locations are a prime reason for the growth of luxury flats in Trivandrum.
You can be sure that you are getting sturdy construction, luxury living, and aesthetic living spaces at surprisingly affordable prices – thanks to adherence to ready reckoner rates.
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