As mentioned in my earlier posts, I have been searching for a home for quite sometime. This weekend, we finally found something which we were interested in buying and so we asked the real estate agent to arrange a meeting with the seller this week. The meeting happened today and it didn’t go as planned. Since me and wife are both salaried professional, we wanted to get a home which would be financed by the bank. The bank normally finances 80-85% (depending on your credit scores and eligibility) of the agreement value. The seller however was only willing to make an agreement which was less than Rs. 49 lakh as he wanted to avoid the TDS (tax deductible at source) which needs to be paid if the agreement value is more than Rs. 49 lakhs. The total cost of the house was coming to 80 lakhs, so this would basically mean that bank would give a loan of Rs. 40 lakhs and the remaining 40 lakhs would need to be managed by me. I was very surprised on hearing this. The reason the seller cited for not making the agreement for more than Rs. 49 lakhs was that once the TDS is deducted, there is no guarantee that money would be refunded by the Income Tax officials. Apparently the seller had some really bad experiences with the tax authorities and he didn’t want to take any further chances. The estate agent asked me if there was anything I could work out. I replied in negative saying that since we are salaried, this does not work for us. The meeting finally ended with the estate agent promising to revert back to us with some kind of decision by the end of this week. Not feeling very hopeful about anything being worked out for this place.
Published by Akshay
I am Akshay Varma, a Project Manager who likes writing, taking pictures, and listening to music. I am mainly work with projects in transition and onboarding of new client projects and business transformation. I like writing about current affairs and how they effect me, my personal life and anything and everything which comes to my mind. I like landscape and bird photography. Humans as photographic subject don't attract me :). This is a personal blog and thoughts written here are my own and do not reflect/ represent those of the organization(s) that I am with in professional or personal capacity. View all posts by Akshay