Following the poor response to the plots put on sale, the Capital Region Development Authority (CRDA) has made changes to the value of the plots on a 60-40 basis which divides the price into two categories as sale price and development cost.
As the registration charges apply on only sale price, the CRDA claims that the new arrangement will give up to 13 lakh benefit on residential plots, 1.18 crore on plots marked for schools and hospitals and up to 85 lakh on commercial plots if the payment is made in full. The CRDA is offering 5% rebate on overall price if the payment is made in full.
The CRDA has put 424 plots on sale at four different locations in Krishna and Guntur districts.
The CRDA set the basic price for various categories of plots depending on the prevailing market prices, and the potential buyers can bid over and above the basic price by participating in e-auction process. However, the buyers showed no interest in participating in the e-auction.
Following the lacklustre response from the buyers, the CRDA came up with a new arrangement to attract buyers without reducing the base price.
The CRDA followed private realtors’ strategy to reduce the sale price of the plots which will benefit the buyers in paying less registration charges. If the entire transaction amount is shown as the sale price, the buyers will have to pay registration charges of 7.5% on entire transaction value.
In the new arrangement, as the sale price has been reduced by 40 per cent, the registration charges would apply for only 60 per cent of the value of the plot. Though the price of plot remains same, the buyers will get benefit from the reduction of registration charges. Additionally, the CRDA is offering 5% rebate on the sale price if the buyers make entire payment at once. If the buyers cannot make lumpsum payment, they can avail the offer of four equal instalments spanning over one-year period.
Vijayawada: Following the poor response to the plots put on sale, the Capital Region Development Authority (CRDA) has made changes to the value of the plots on a 60-40 basis which divides the price into two categories as sale price and development cost.
As the registration charges apply on only sale price, the CRDA claims that the new arrangement will give up to 13 lakh benefit on residential plots, 1.18 crore on plots marked for schools and hospitals and up to 85 lakh on commercial plots if the payment is made in full. The CRDA is offering 5% rebate on overall price if the payment is made in full.
The CRDA has put 424 plots on sale at four different locations in Krishna and Guntur districts.
The CRDA set the basic price for various categories of plots depending on the prevailing market prices, and the potential buyers can bid over and above the basic price by participating in e-auction process. However, the buyers showed no interest in participating in the e-auction.
Following the lacklustre response from the buyers, the CRDA came up with a new arrangement to attract buyers without reducing the base price.
The CRDA followed private realtors’ strategy to reduce the sale price of the plots which will benefit the buyers in paying less registration charges. If the entire transaction amount is shown as the sale price, the buyers will have to pay registration charges of 7.5% on entire transaction value.
In the new arrangement, as the sale price has been reduced by 40 per cent, the registration charges would apply for only 60 per cent of the value of the plot. Though the price of plot remains same, the buyers will get benefit from the reduction of registration charges. Additionally, the CRDA is offering 5% rebate on the sale price if the buyers make entire payment at once. If the buyers cannot make lumpsum payment, they can avail the offer of four equal instalments spanning over one-year period.
