The guidance value is the minimum rate at which a property can be registered Ashish Gupta, Times Property, The Times of India, Bangalore. Bangalore property and rental scene has become dearer with the new property tax and valuation guidelines issued by BRUHAT BANGALORE. 42 Sub Registrar's Offices of Bangalore (Urban) District for Guidance Value ( English Version) arrow New Guidance Value from Onword's arrow .
- Expected to be in the range of 5% to 20% and effective from October
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It clarifies that you are no longer allowed to register your property below the price of Government Guidance Value.
However, you are free to register at any price which is above the Government Guidance Value. Hope you now got an idea about Guidance Value. Why Government raises the Guidance Value of Properties? For Government, the major revenue source is property registration. By raising the guidance value, Government expects higher revenue.
Therefore, once in years usually there will be an increase in guidance value. How Guidance Value of property affect the prices? Then there is a sudden jump in Government Guidance Value from Rs. Becuase, he know Government itself fixed the price at Rs. In this way, whenever there is a revision in Government Guidance Value, the price of real estate will jump.
It is not the affordability of buyer. But the price, below which no one ready to sell. Hence, with revision in Guidance Value, those who are in real estate business will feel happy.
But the buyers feel it sad as the price of real estate will automatically raise. This again boosted the price rise in real estate market. The last revision was in the year of So again after 2 years one more revision.
This shows how Government is eager to earn more by raising the Guidance Value of Properties across Karnataka. Published Mar 11, , 3: Property prices in Bengaluru could shoot up with the state government all set to notify a revision in guidance value from April 1.
Both the builder community, which is going through rough times, and ordinary buyers feel the move could hit them hard and are calling for its withdrawal. Lying low for months in the face of public outcry and the then looming BBMP elections, the Siddaramaiah government has now revived its attempts to revise property guidance value in the state. The Central Valuation Committee of Karnataka is determined to raise the guidance value by 10 to 30 per cent for properties across the state.
The rise could be 10 per cent for agricultural properties, and 20 and 30 per cent respectively for the residential and commercial. But the building industry is far from happy, arguing any increase in guidance value could hit the flow of Foreign Direct Investment FDI into the state and negatively impact its economy as a whole. Noting that the property market is in a slump and the real estate industry has not seen a boom across the country over the last couple of years, former president of the FKCCI, Sreenivasa Murthy says the state government should ideally be helping the realty sector, not adding to its problems.
The present revision is uncalled for when the last took place only in In fact, the government should have considered decreasing the guidance value to help the situation. Since the proposal focuses on land and apartment complexes, its the middle class , the prime buyers of both these properties, who will be hit.
Also, the uniform hike across the city is not a well thought out move, according to him. For instance, property buyers in Lavelle Road and Shivajinagar will be paying the same guidance value, although the land rates in Shivajinagar, just 2 kms from Lavelle Road, are not very high.
How can the government measure land value using the same yardstick? What is guidance value? The guidance value is a reference value reflecting the market value of a property at a given time.
Hike in guidance value proposed :
In fact, the government should have considered decreasing the guidance value to help the situation. Becuase, he know Government itself fixed the price at Rs. The rise could be 10 per cent for agricultural properties, and 20 and 30 per cent respectively for the residential and commercial.
Karnataka: Get ready to shell out more for property from September onwards