Real estate business is one of the most lucrative businesses in India. It is the second largest behind agriculture. The Indian real estate market is expected to touch US$ 180 billion by 2020 and making it very attractive to start a real estate business in India. Read this article to know about the ways to start your own real estate business. Also, this article deals with the ways to become a real estate agent and get real estate license.
The real estate sector can be divided into three main categories
- Commercial real estate.
- Residential and land with all sectors booming in India due to the growing middle class.
- Industrial real estate.
- Foreign investment into India.
The first one is done by commercial property or commercial property for sale and required a real estate agent. It’s not an easy stuff to get a real estate license. To apply for this you can visit real estate websites and can look some of the examples of real estate companies. You must have the knowledge of real estate investing or property investment and about everything about investing in real estate.
Learn how to start your own Real Estate Business
Few steps are given to start a real estate business and also to become a real estate agent. These steps will help to get real estate license. A real estate license is necessary to enter in this business. Read the steps carefully and get the benefit.
Realtors of Real Estate Business
To create the vibrant real estate business in India, architects, engineers, construction equipment providers, Builders, Building labor suppliers, Building material suppliers, financiers and realtors or brokers all come together. Key elements of this group are the realtors or brokers. Find those who’ve realtor license. They are the interface with the consumers in the transaction processes. They also provide advice, information and help negotiate the deals.
Registration of Real Estate Business
Most real estate agents operate as unregistered businesses, typically a proprietorship or unregistered partnership. The real estate brokerage business is now becoming elevated to international standards, reformed, formalized to win over customer confidence and compete with large online real estate brokerage platforms. For those starting a real estate brokerage business, to improve customer confidence and bring about professionalism it is important to establish their business as a Private Limited Company or Limited Liability Partnership (LLP).
Service Tax Registration
The services provided by a Real Estate Agent or Real Estate Consultant are taxable under the Service Tax Act.
- A person who is engaged in rendering any service in relation to the sale, leasing or renting, purchase, of real estate and includes a real estate consultant is real estate agent (as per the Service Tax Act).
- A person who renders in any manner, either directly or indirectly, in relation to evaluation, conception, design, advice, consultancy or technical assistance, maintenance, marketing, development, construction, implementation, supervision, acquisition or management of real estate is real estate consultant.
Service tax is chargeable on any taxable service rendered for a consideration in money by the real estate agent or real estate consultant. Under the service tax act, the gross amount charged by the service provider is taxable at 14%. Therefore, when annual taxable services billing exceeds more than Rs.10 lakhs per year, those real estate agents or consultants having an annual taxable services billing of more than Rs.9 lakhs must obtain service tax registration and collect service tax from the client.
Real Estate Agent License
The real estate business is becoming more organized. To establish licenses for real estate agents, Haryana State is among one of the first states in the country. In Haryana, a company would have to pay Rs. 50,000 for the license while individual real estate agents have to pay a license fee of Rs.25,000. Real estate agent license from Haryana State would be valid for five years. The license can be renewed for a fee of Rs.10,000 for companies and Rs.5000 for individuals.
Real estate agents can also become a member of National Association of Realtors – India (NAR-India) in addition to real estate agent license that is mandatory. NAR-INDIA is a national level umbrella organization aims to elevate the standards of practice of the real estate brokerage business to a global level where ethics, accountability, transparency, rule of law and good governance prevail. NAR is representing the interests of thousands of realtors/brokers operating all over the country.
Benefits of NAR-India Membership for Realtors:
- The beneficiary of a credible image of the realtor profession in India.
- Consumer recognition in local as well as global markets.
- National and international level business networking opportunities.
- Platform for lobbying with governments for benefit of the profession.
- International visibility of local business thru’ global niche listing.
- Access to accepted standard procedures, practices and products.
- Opportunity to upgrade skill thru’ various education programmers, conferences, and conventions on a continuing basis.
- Access to the globally recognized REALTOR logo, subject to conditions.
- Platform for grievance redressal and conflict resolution.
Conclusion to start your own Real Estate Business
By reading above article it is not tough to start a real estate business and also to become a real estate agent. Getting a real estate license will become easy now and also you can try for commercial real estate.
Source of How to start your own Real Estate Business
The source used to write about Real Estate Business is given at the end. For anyone to enter commercial real estate or to get a real estate license, this article will be useful.
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