A Ready Reckoner Rate (RRR) is the standard value of an immovable property assessed and regulated by the respective state government in which the property is established. Here, the word immovable property encompasses residential property, commercial property and land/plot.
In a bid to ensure an accurate valuation of real estate properties, all the state governments publish area-wise rates of properties on a yearly basis known as Ready Reckoner Rate (RRR).
Also, referred to as Circle Rate, a RRR differs across states, cities and localities.
What is the use of RRR?
The RRR acts as a benchmark below which no property transactions can take place in an area. Generally, it is the minimum value that a buyer has to pay for a property, and also the minimum price on which the government levies stamp duty and registration fees.
However, if the actual cost of the property is higher than the circle rate, the stamp duty and registration fee is charged on the actual price of the asset.
For example: Assuming a property in a specific locality has a RRR of Rs 5,000 per sq ft. But, if the market price of the property is Rs 6,000 per sq ft, the buyer has to ideally pay stamp duty and registration fee of Rs 6,000 per sq ft, as it is higher. However, Rs 5,000 per sq ft will form the benchmark for the registration of this property, below which the city authority will not register it.
Related Post - Which option is ideal for a Home Loan tenure: Short-term or Long-term?
Ready Reckoner Rates, Current Stamp Duty and Registration Charges in Pune
Image Source: Proptiger Official Website
Ready reckoner rates refer to the minimum rate notified by the government through the registrar or sub-registrar office of Pune for registration of property transactions.
Stamp duty is to be paid on the higher of the declared transaction value and the value calculated as per the ready reckoner rate chart applicable for the sector or area of Pune.
Ready Reckoner rates of Pune has remained unchanged for FY2018 – 19. The ready reckoner rates were last hiked on 1st April 2017 by the Government of Maharashtra.
To know the current ready reckoner rates in Pune city here a great resource -
https://www.myloancare.in/ready-reckoner/pune
Related Post - What are the available options for Home Financing in Pune?
The importance of Ready Reckoner rates for home buyers
The RR rate of properties in a particular area is a good indication of the amount of money a potential home buyer will have to shell out. Market rates of properties are almost always higher and property prices in an area tend to increase when the RR rate is expected to be increased.
It is also beneficial for buyers to purchase property in an area, where the gap between the RR and market rates is relatively smaller, especially if the purchase is being financed by a home loan.
Read more articles here, https://blog.kohinoorpune.com/
comments