Real Estate (Regulation and Development) Act (Rera Act)’ is a special type of agreement under which two or more investors own a single property. Rera Act provides undivided ownership of property to its investors. It is an arrangement that allows the investor to invest in the property even if he/ she has small amount of money. If we talk about Rera Act Investment, it is an arrangement that allows the investor to invest in the property even if he/ she has small amount of money. Here the ownership shares are not required to be equal, and the ownership can be inherited. This type of investment can be made for the projects like apartment houses, shopping complexes, office buildings, etc. Rera Act is almost similar to DST but one of the common differences is that Rera Act has the number of investors limited to 35 whereas DST does not have any limitation. Gaur World Smartstreet Price List / Paras Avenue Price List / SKA Orion Price List / Commercial property in Noida for sale
Every Co-owner of the property receives an individual deed at closing for his or her undivided percentage interest in the entire property. In brief, a Rera Act owner has the same rights and benefits as a single owner of the property. So, in this kind of arrangement the first and most important step is the involvement of real estate companies. These real estate companies play a very important role in closing the exchange. There are many real estate firms that can help you in obtaining shares in Rera Act properties. Rera Act investment is very popular among investors, especially among 1031 exchanges, because of the flexibility in its structure, ease in purchasing Rera Act properties, and low investment opportunities for those who are looking for diversification.
The benefits of Real Estate (Regulation and Development) Act’ investment aren’t limited to this only. Upon exchanging a Rera Act property for another, investors can defer capital gains taxes on the exchange. Before proceeding for exchange the real estate investors must be aware of what 1031 exchange is? It’s an exchange that allows investors to reinvest the proceeds of the relinquished property on the replacement property. One of the important points that investors must keep in mind is that properties involved in 1031 exchange must be held for productive use in trade or business or for investment purposes. 1031 exchange had made possible for the real estate investors to enjoy the benefit of tax deferment. 1031 exchange only allows swapping like-kind properties. A ‘Like-kind’ property means two or more properties of the same type. During the exchange, an investor does not receive any kind cash but he can reinvest the proceeds of the relinquished property on the replacement property. For this exchange, a special type of account known as escrow account is opened by the real estate companies.
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