We have all heard that buying a property can be a daunting task. It is true. All the new terms, policies and jargons can be quiet overwhelming.

However, the area of Noida has a different story to tell. Noida is a heavy market for real estate and one of the reasons it has flourished so much is the low price of properties as compared to nearby markets. It may be one of the hottest markets for investors or settlers but as opposed to the rest of the NCR region, Noida has a different property ownership deal. A house in Noida is owned as a leasehold property and not a freehold one.

The terms may sound scary but it is quiet straightforward actually. The difference between leasehold and freehold property lies in ownership.

As far as freehold properties go the person who buys the property becomes the owner and can rework on the property as they consider fit, within the confines of the local rules.

In case of leasehold properties the ownership of the house is with the government and they lease it out to people who buy the properties for a period. Once the lease expires it can be easily renewed but a price needs to be paid for it. In Noida the lease for properties is generally given for a period of 99 years. Another thing to note is that for leasehold properties ground rent needs to be paid to the owner of the property.

So while it may seem better to own a freehold property rather than leasehold, the latter is not a bad option. If a property is freehold than property tax needs to be paid on it every year. In case of leasehold properties one needs to pay a rent or charge. In most cases, the property tax is actually higher than the charge that needs to be paid for leasehold properties.

One of the reasons for the low prices for properties in Noida is the leasehold ownership. It makes it cheaper for the developers since they don’t actually need to buy the land.

Another attraction in leasehold properties is the fact that they are actually safer for buyers. This is because the person taking the lease need not verify the developer’s credentials, as the owner of the property is the government in most cases.

Noida has grown leaps and bounds in the past decade as a real estate hub. From a lowly cousin to the capital city of New Delhi, it has gone on to become a residential bliss. Leasehold ownership of properties here has in no way been a deterrent and Noida is sure to keep attracting buyers.

VISIT MORE INFO : http://www.prateekgroup.com/project-prateek-laurel.asp

Prateek Group is the leading real estate developer in India and incorporated in 2005 with a vision of quality and on time delivery. Prateek Group is a young and vibrant realty company provides affordable homes in Noida and luxury flats in Noida.