If you have been involved in real estate deals previously, you may be familiar with the term ready reckoner rates, but if you are a new entrant, you may be wondering what it is. Ready reckoner rates are property rates set by respective state governments. Studying them will help you understand the real estate market trends in Thrissur correctly and make the right investment decisions
What is Ready Reckoner Rate?
These are the rates of property as assessed by the authorities, and they are based on location, whether the area is urban or rural, and several other factors. This means that ready reckoner rates are different all over the country, and even between suburbs or neighbourhoods within the same city. Real estate dealings cannot happen below these rates; registration fees and stamp duties depend on them too.
The Purpose of Ready Reckoner Rates
- RR rates provide a standardized valuation for properties and ensure transparency in transactions
- The rates can be used as a reference to negotiate property prices by buyers and sellers and make informed decisions.
- They help in assessing the property tax liability accurately
- RR rates limit price manipulation and other unfair practices and facilitate stability in the real estate market.
How Does a Change in the Ready Reckoner Rate Affect Demand?
The ready reckoner rates specify the lowest price at which property can be sold; however, the actual price can be much higher too. In many places, there is a big price gap between the actual sale price and the RR rates. Property deals in Thrissur are normally negotiated on the basis of market rates rather than ready reckoner rates and stamp duty and registration fees are often calculated on the RR rates. In such cases, the government stands to lose money. When market prices are high, registration fees increase, so buyers may be reluctant to register their purchases.
When RR increases, property becomes expensive, making it less attractive to home buyers, and push down demand. If the ready reckoner rate is low, property is cheaper, and people are more likely to be inclined to purchase or invest, and it is likely to be an ideal location for a family to settle down.
The Importance of Ready Reckoner Rate for Home Buyers
The ready reckoner rates give buyers a clear picture of the amount they will need to purchase property in a particular area. When the rates go up, the market rates also increase, pushing up property prices. It makes sense to purchase property in areas where there is a negligible gap between the market rate and the ready reckoner rate.
If you try to sell or buy property much below the ready reckoner rate, you may open yourself up to suspicion and scrutiny by the authorities. You could be accused of illegitimate dealings and end up paying hefty penalties. At the time of resale, you may earn a lower profit as the property was undervalued. Future dealings can also be impacted as the ready reckoner rates become unrealistic.
Conclusion
Are you worried about getting property at the right price? Buying from a reputed builder who adheres to these rates offer you excellent perks of owning Thrissur flats. Varma Homes Varmahomes is a reputed real-estate developer in Thrissur. They adhere to all regulations including RERA norms, ready reckoner rates, and requirements by various government agencies. Their experience in the field helps them deliver quality construction and easthetic living spaces to customers. Check out their completed projects; when you note the amenities, you’ll understand the benefits of living in lifestyle apartments in Thrissur.
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