If you go anywhere to see properties, you must have often heard about circle rates from builders. But if you do not know about it then definitely know about it before buying the property.
If you go anywhere to see the property, you must have often heard about the circle rate from the builders. Many times builders decide the full price of the property on the basis of this. This changes when viewing properties in other areas. Today in our report, we will give complete information about the circle rate and how it plays an important role in your decision to buy a property.
What is circle rate?
In India, the land is under the state. The district administration is responsible for fixing a standard rate for land and other properties in cities, below which transactions cannot be registered. Because it is very large and is divided on the basis of regions. Because of this the circle rates differ from locality to locality.
Circle rate is known by different names in the country. In Maharashtra it is called Ready Red Corner Rates. District collector rates in Haryana, Punjab and Uttar Pradesh are known as Guidance Values in Karnataka.
How is it decided?
The circle rate in any city is determined by the district administration. The administration fixes the circle rate after reviewing the prevailing market rate in that area over a period of time. The administration tries to keep the circle rates at par with the market rates. Market rate is the price at which property is bought and sold. Let us tell you, the registration fee of a property is decided on the basis of the market rate.
Disadvantages due to high circle rate-
High circle rate has many disadvantages for the property buyer. First of all you find the property expensive. With this, if you are taking your property loan, then you will have to pay more EMI. At the same time, home insurance will also become expensive for you.
