Handy Guide to Guidance Value in Mysore for Property Buyers

When purchasing property in Mysore, understanding the guidance value is crucial. This essential concept plays a significant role in determining the price you pay and shaping your financial planning. But what exactly is guidance value, and why does it matter to prospective homeowners?

This guide will walk you through all the key details about the guidance value in Mysore and its impact on property transactions, ensuring you make informed decisions.

What is guidance value?

Guidance value is the minimum price at which a property can be registered. Set by the Karnataka government, it ensures fair pricing in the real estate market. It helps calculate stamp duty and registration fees and prevents undervaluation of properties to evade taxes.

In simple terms, the guidance value acts as a benchmark for property transactions in Mysore. It varies depending on factors like the location, property type, and size.

How is guidance value determined?

The government considers multiple factors to decide the guidance value:

• Location: Properties in central or prime areas of Mysore tend to have higher guidance values.
• Type of property: Residential plots, apartments, and commercial spaces each have unique values.
• Property size: Larger properties or plots with more built-up area have higher guidance values.
• Infrastructure development: Areas with better roads, schools, and connectivity see higher values.

Guidance values are revised periodically to reflect changes in the real estate market.

Why is guidance value important?

For property buyers, understanding guidance value is critical. Here’s why:

1. Determines stamp duty and registration fees: When you buy property in Mysore, the stamp duty and registration fees are based on the guidance value or the market price, whichever is higher. This ensures transparency in transactions and helps the government collect accurate revenue.

2. Prevents undervaluation: By setting a minimum price, the government ensures that properties are not sold at unrealistically low rates to evade taxes.

3. Helps in home loan approvals: Banks often use the guidance value to decide the loan amount they can approve. For instance, if the property’s guidance value is Rs. 50 lakh but the market value is Rs. 60 lakh, the lender may approve the loan based on Rs. 50 lakh.

How to check guidance value in Mysore?

• Online portal: The Karnataka government has an official website where you can check the guidance value for properties in Mysore. Simply enter the area, property type, and other details to find the value.
• Sub-registrar office: Visit the local sub-registrar office in Mysore to inquire about the guidance value for a specific property.
• Real estate portals: Many real estate websites provide guidance value information for different areas in Mysore, making it easy for buyers to do quick research.

Guidance value and property transactions

The guidance value affects how property deals are conducted. Here’s how:

• Minimum registration price: The property must be registered at a price equal to or higher than the guidance value. If the seller offers a property for less, the buyer will still need to pay fees based on the guidance value.
• Market price comparison: In some cases, the market price may be higher than the guidance value, especially in high-demand areas. Buyers should plan their budget accordingly.

Can guidance value be lower than market value?

Yes, in some areas of Mysore, the guidance value may be lower than the actual market value. This often happens in regions experiencing rapid development or increased demand. While this might seem like an advantage, it can pose challenges during home loan approvals since banks consider the guidance value as the baseline for lending.

Impact of guidance value on home loans

When applying for a home loan, the guidance value becomes a deciding factor for the loan amount.

For example, let’s say you are buying a property with a market value of Rs. 70 lakh, but the guidance value is Rs. 60 lakh. The bank may approve a loan based on Rs. 60 lakh, meaning you’ll need to pay the remaining Rs. 10 lakh as a down payment.

This makes it essential for buyers to check the guidance value and factor it into their loan calculations.

How does guidance value protect buyers?

Guidance value brings transparency and fairness to property transactions. By setting a minimum price, it ensures that buyers are not overcharged and helps the government prevent tax evasion.

For sellers, it sets a fair expectation of property pricing, reducing disputes during transactions.

Explore Bajaj Housing Finance Home Loan

Understanding the guidance value is crucial when purchasing property, but having the right financial partner is equally vital. If you’re planning to buy a residential property in Mysore and need financial support, Bajaj Housing Finance Home Loan is here to help. Here are a few benefits of opting for a home loan with us:

1. High loan amount: Secure funding up to Rs. 15 crore* to turn your dream home into reality.

2. Low interest rates: Enjoy interest rates starting 8.25%* p.a, and EMIs as low as Rs. 741/lakh*.

3. Quick approval: Get approved within 48 Hours* of applying – sometimes even sooner.

4. Flexible repayment tenure: Choose a repayment term of up to 32 years for comfortable EMIs.

5. Simple application: Take advantage of doorstep document collection for a smooth process.

6. Balance transfer facility: Move your existing home loan and get a top-up loan with better terms.

Whether you are buying your dream home or investing in real estate, Bajaj Housing Finance ensures a seamless journey. Explore your options today and turn your property dreams into reality.