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3 Things To Consider When Planning To Sell Your Home

Senior citizens may want to sell their homes for various reasons, like shifting to another location, to get money for retirement, etc. However, they must be careful while selling their property

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Amit Sethi
September 5, 2023
Retirement Community

Retirement Community

Selling a property after staying in it for a long time may unlock a huge amount of corpus you would have never imagined. However, if you are not careful, you may end up spoiling the entire deal. So, 3 Things To Consider When Planning To Sell Your Home.

Tax Implication

If your property is held for a long term, i.e., more than two years, the profit earned on its sale is termed long-term capital gain (LTCG). Such LTCGs are subject to tax at a 20% rate with indexation benefit. Short-term capital gain on the sale of a residential property is taxed at the applicable slab rate of the taxpayer.

Before selling your property, estimate your tax liability and explore how to save the maximum amount of taxes through various ways allowed under the IT Act. For example, you can save the LTCG tax u/s 54 by reinvesting the gain into a new residential property within the prescribed time limit.

How Would You Use The Proceeds After Selling Your Home?

Never make an impulsive decision to sell your home. Plan how you would like to use the proceeds after selling your home. If you are selling a home due to a financial emergency, make sure that you use the excess funds carefully after meeting the financial emergency. If you want to use the money to repay the debt, make sure the lender levies no prepayment charges.

Prefer receiving all the payments through cheque or an online transfer to your bank account.

Where Would You Live After Selling The Home?

Selling your home after retirement can be an emotionally sensitive step, as many of your memories would be connected with that property. Also, changing your home after your retirement can be a difficult affair. You must find a new residence before selling your existing home. You can live in a rented property or purchase a new home. While deciding about a new home, ensure the new property is near your friends’ and relatives’ location.

When selling your home, make sure you are getting the right price for your property. You can get the value of your property assessed through a property valuer. You can also check the price of a similar property around your home location through listings in the online property agent’s portal before finalizing your home’s selling price.

 

The author is an independent financial journalist

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