Category: Market Trends

Land Measurement Unit in Nepal depends on which part of region you are based in. With the Bigha-Katha-Dhur measurements common in the Terai region and Ropani-Aana measurements are common in the Hilly and Mountainous regions. Land Measurement Unit Of Nepal vary from place to place and city to city. In metro city like Kathmandu, units are also measured in sq. ft. It’s quite common to hear sq. ft when you are buying housing property or  Commercial Space for leasing.

 

 LAND MEASUREMENT SYSTEM FOR HILLY REGION:

Conversions for Mountainous/ Hilly Region
Unit Divisions In square metres In square feet
1 Dam   1.99 square metres   21.39 square feet
1 Paisa   4 Dam   7.95 square metres   85.56 square feet
1 Ana   4 Paisa   31.80 square metres   342.25 square feet
1 Ropani   16 Aana   508.74 square metres   5476 square feet

 

LAND MEASUREMENT SYSTEM FOR TERAI REGION:

Conversions for Terai customary units
Unit Divisions In square metres In square feet
1 Dhur    16.93 square metres   182.25 square feet
1 Katha   20 Dhur    338.62 square metres   3,645 square feet
1 Bigha   20 Katha    6772.41 square metres   72,900 square feet

 

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What is Capital Gains Tax?

 

As described in Wikipedia,  Capital Gains Tax (CGT) is a tax on capital gain, the profit realized on the sale of a non-inventory asset that was greater than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metal, or property.  In Nepali, we call it Labhaansh Kar (लाभांश कर). Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

In a simpler phrase, Capital Gains are the profits that an investor realizes when he or she sells the capital asset for a price that is higher than the purchase price. Capital Gains taxes are only triggered when an asset is realized, not while it is held by an investor. An investor can own shares that appreciate every year, but the investor does not incur a capital gains tax on the shares until they are sold.

How to calculate Capital Gains Tax?

 

Formula: Sale Price – Purchase Price = Capital Gains Amount

Note: This formula assumes the sale price is higher than the purchase price. If an investor sells an asset for less than he or she paid, this is called a capital loss, and no tax is owed.

If the land and building is owned for a period less than 5 years – 5%

If the if the land and building is owned for a period more than 5 years – 2.5%

(If the building is owned and resided for a period more than 10yrs., it does not fall within the definition of Non-Business Chargeable Assets hence, It’s not taxable.)

Example Of Capital Gains Tax:

 

Mr. Ram purchased a house for Rs Fifty lakhs on 2070/01/01.

He sold the same house on 2074/01/01 for Rs Seventy lakhs.

Capital Gains tax on such house shall be calculated as per below:

Sale Price – Purchase Price = Capital Gains Amount

70,00,000 – 50,00,000 =20,00,000

Since the house was owned for less than five years, capital gains tax @  5% Rate on such gain amounting Rs. 1,00,000 (5/100 * Capital Gains Amount) should be deducted by land registration office. This is the advance tax and Mr. Ram should adjust this with the total tax liability by submitting the income tax return.

Note: If the house was owned by Mr. Ram for more than 10 years and stayed in there for continuously or intermittently, then it would not be categorized as a non-business chargeable asset and capital gains tax would not be levied.

If the house was owned for more than 5 years and came under the definition of non-business chargeable assets than the capital gains tax would have been levied @ 2.5% Rate which will be Rs. 50,000 (2.5/100 * Capital Gains Amount).

To know more about capital gains tax, Visit Inland Revenue Department website

 

Beautiful house and the stunning interior is everyone’s dream. If you just have bought a new house or built one, you must be looking for great furniture ideas and inspiration. Here are following five go-to places in Kathmandu where you can find furniture of your choice for your dream house and office space.

Furniture Land:-

Furniture Land is the largest furniture showroom with a wide variety of furniture available in Nepal. With four showrooms and two warehouses present in Kathmandu, It has been supplying furniture to their customers since 2001. They supply high-quality furniture from Thailand, China, Vietnam, Malaysia and many other countries.

Facebook Link: Furniture Land

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Index Furniture:-

If you are the one who is based in Lalitpur and looking for a home or office furnishing, Index Furniture is one stop solution for you. It is located in Jawalakhel, Lalitpur. Index Furniture Nepal is an exclusive franchise of Index Living Mall, which is one of the largest manufacturers and retailers of lifestyle products in Asia with over 19 stores spread across Thailand covering 3 million sq. ft. and commanding over 25% of the furniture and home decorative markets.

Facebook Link: Index Furniture

 

Imperial Furniture:-

Blending it with a living heritage of craftsmanship with the regal inspiration of Roman antiquity is the story behind Imperial Furniture. Their collection embodies a superior character that can only be derived from history’s finest methods and materials. Their pieces are finished with custom blended enamels and polished to accentuate the natural characteristics of the wood.

 

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Bira Furniture:-

With over 3 outlets, Bira Furniture is a choice for you! It’s their verse elegance over excellence. Bira furniture is one of the oldest wooden industry serving client since 1963 AD. Bira deals with all kind of wooden products, manufacturing and supplying furniture, door/windows, frames, trusses, parquets, wall panelling.

Facebook Link: Bira Furniture

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HomeMaker:-

Homemaker Pvt. Ltd. was established with the concept of introducing professional interior design services and innovative furniture in Nepal. A full team of architects, interior designers offer clients unique style suited to their personality, tastes, and budget line. Its competent implementing team has professional and practical experience in bringing complex construction and interior projects to reality.

Facebook Link: HomeMaker

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Real Estate in Nepal has been one of the main sector absorbing a large chunk of bank lending. We all know, it is also one of the fastest and easily scalable business in Nepal’s scenario. Demand and supply of house, land, apartment in urban Nepal has brought this new industry into its existence and that is online property buying and selling market.  As a number of people are migrating to metro cities and global brands and organisation being established in Nepal, the demand of Real Estate is growing higher. To meet up with clients’ tailored requirement, online portal is a technological gift.

Online portal works in a favor of both parties- Buyers and Sellers. It is serviceable to a mediator as well as people working as a Middle Man in this industry on a commission basis. Following are five Real Estate companies serving their customers/clients and doing Online Real Estate business in Nepal.

HamroBazaar.com:-

Hamrobazaar.com is a FREE online classified portal which enables individuals as well as companies to list a wide variety of new or used product via internet. Hamrobazar believes that Internet is an effective promotional vehicle as well as a communication channel that connect buyers and sellers. Hamrobazar helps to list your products for free.

Currently, there are 6132 properties including land, house and apartment listed in hamrobazaar online portal.

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Therealtors.com.np:-

Lucky Group, a business house with a varied interest in manufacturing, trading and service sector since 1980, seeks to establish a strong presence in the realty sector. The Realtors was built to create highly engaging, personalized web experiences for customers with evolving needs whilst on the site.

1ropani.com:-

1 Ropani is another online Real Estate business portal that aims to provide service to growing Real Estate need of Nepal.  Following are their four services and few unique selling point:

  • Simplifying Nepalese real estate market
  • Participation with 1Ropani.com can help you work smarter
  • 0% commission to 1Ropani.com on deal
  • Reduce unnecessary calls from non-potential buyers.

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Gharbazar.com:-

GharBazaar is an online marketplace for those who want to make a deal in their properties directly with the seller and buyer. Moreover, it is a bridge between buyer and seller. You can start promoting your property as a free listing or you can choose a premium service with a nominal fee. Your property will be displayed in a featured list (HomePage).

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Housingnepal.com:-

Housing Nepal aims to become a one-stop destination for anyone seeking information on Nepalese Real Estate and related professionals. The purpose is to provide an open hub for property seekers and sellers using ICT (Information and Communication Technology) to engage in dialogue that may help facilitate the best Real Estate deals for prospective clients.

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The online portal is a blessing to someone who is new to a city, someone who doesn’t have contact with a local broker or have any friends or family living around in a new city. It saves your time and money. Having said that, the way companies are mushrooming in the name of real estate agency and business house, the only ones to sustain are those having bigger vision and mission.

Planning to buy a land in Nepal? This post is relevant for you. A lot of us dream to buy a property in Nepal but when it comes to catch the exemplary piece, often, we get jumbled and more precisely we are unassured if given property is the best fit. This is prominently seen in all young adults, especially adults who are living in abroad & looking to buy a property in Nepal. Hence, we are dependent on family members, brokers, distant relatives for their judgement. This results in a slow process, often hidden cost and cases where you also get cheated. Enough with the confusion and sceptics in the further purchase of the property.

Following are the major concerns and questions to ask and get vivid information from your broker if you are buying land in Nepal.

Location:

A location is a foremost figure. Decide whether you want to buy a property in Ring Road, Inner Ring Road, Metropolitan Municipality, Sub- Metropolitan Municipality,  Municipality.

Land Size:

Bare in mind, land size may sound like least important thing but if you have seriously made up your mind to do investment in real estate, land size does matter. Please know if you want to buy 1 Ropani, 1 Ana, 1 Bigha or 1 Katha land for yourself. Also, you should be sure and aware of the ideal shape of land you want to buy. A reliable “Amin” should be considered for the accurate measurement of the respective land. This will help you to figure out the kind of investment you want to make. Also, saves you from being cheated.

Road Size / Access:

You need to ask your broker about the road size and the accessibility. This terminates if the proposed property is ideal for the 2-4 wheelers or not. This will also give you the insights about feasibility, public transport avenue. This often determines infrastructures like bank, school, hospital and shopping are around. Also one should be very aware of the road expansion project that might overlap their land-to-purchase during the execution.

Price:

Decide your investment budget. Price should also be accordant and directly proportional to land size and location you are looking to buy.  Often there are lands which are on the verge of rush-sell due to certain reasons and thus their price may alter(usually depreciated value) from the standard ratings.  Remember a fair and civil price is appreciated by everyone.

Buy Raikar Land not Guthi:

Raikar land has an individual or personal authority towards the property. Whereas, Guthi land means the territory belonging to a group of people. Very often people buy Guthi land without being transparent with its details. Usually, Guthi properties are confined with several disputes, a certain problem, an objection from an old party. This is one of the “Most Common” ways of cheating people in real estate scenario of Nepal. Ensure the kind of your land preference (Guthi/Raikar) before purchasing.

Mudda, Mohi, AnshaBanda, Field Visit and Naksha Details:

Do not invest over disrupts!!! You got to know the mandatory information before investing in your real estate if they have any of the following:

Mudda, Mohi Hak, AnsaBanda…. Often these questions will save you from making wrong decisions while investing and help you escape from inconvenient traumas.

Mudda means tangled by legal case and you definitely do not want to tie up with MuddaLand right? Just turn over these unnecessary stress. Mohi Hak is a land, been taken care by a respective person for a long span. The representative person is called as Mohi for that land which means he has certain rights to the property and holds legal authority as well. In a lot of cases in Nepal when a person is selling a land to the second party abide with mohi hak then he/she has to first give the mohi his/her rightful amount of share and then transfer the property to a new party.  This can be tricky a lot of time.

The ancestral property is the type of property passed on to the children and grand children from their grand parents. Anshabanda, however, means a division of property within a family. During the division of the ancestral land, there might be unsolved matters and disputes among the brothers. This may create unnecessary tantrums and expenditure in the future in which you do not want to get involved.

Field Visit & Naksha Details are supposed to be same. A lot of time property on a field and their demonstration in naksha do not match. You need to check it beforehand and make a transparent deal before you lose the money for good.

Documents:

Following are the documents you should ask and check before buying property.

  • Lalpurja
  • Naksha
  • Tax Receipt
  • Nirman Sampanna
  • Rajinima / Manjorinaama

Tax Clearance:

The government of Nepal has a property tax policy that has to be paid annually. You would want to check or at least ask your broker if the property tax is clear or not for the property you are buying. It’s an individual party who needs to check before transferring land.

To hire a professional real estate agent is still not a well-established trend in Nepal. Although real estate is not a new area of interest for investors. Real estate agent in Nepal is one of the major investing vehicle people opt for. Still, we don’t have a culture to hire professional real estate agent. Talking about the global context, we can see that real estate is one of the most popular investing vehicles. We can see a lot of professionals working in the sector. Most of the property transactions are carried out through agents who act as the mediator between buyer and the seller. With a certain commission, they act a catalyst, making the transaction easier, faster and reliable.

However, the concept of hiring professional real estate agents is still new in our country. Although we can find plenty of brokers working as the mediator between the two parties, the process has still not become structured and streamlined. Most people prefer getting involved on their own personal level and cut down the extra commission they are required to pay the agents. Although there’s no doubt that anyone can shop for a house without formally signing on with a real estate agent but unless we want to take up home shopping as a part-time job, a professional agent might be able to match you with the perfect property much faster. Here are 8 reasons why you should hire a professional real estate agent.

  1. Qualified and Experienced

The main difference between professional agents and non-professional brokers is that professional agents are trained, qualified and have knowledge. They have the required training and experience and know how the market works.

  1. Ethical

Professional agents strictly abide by their work ethics. They know the value of their personal brand and would never do anything that could harm their brand. They are also visionary and know that putting customer’s interest ahead of their own can take them a long way.

  1. Trustworthy

For the professional agents, trust and relationships come foremost than their property deals. They are in the industry to help you find the perfect dream house and to ease the customer experience for you. We believe in building a long-term relationship even though the deal could not work out for the first time. They believe in being there whenever you need them.

  1. Transparent

Professional agents keep it real with both the parties- the buyer and the seller and keep no hidden costs or whatsoever. But this cannot be guaranteed when dealing with the nonprofessionals.

  1. Price Guidance

As the saying goes, “You will know the path by actually travelling the path”, these experienced agents know the price of the properties the moment they step in. They can tell you if the properties are underpriced or overpriced and can save you from the bad deals.

  1. Time Saving

They know exactly where to find the type of properties you are looking for. They can also help you get things done efficiently in closing the deal and hence can save you a lot of time for you and make your deals easier and faster.

  1. Professional Network

One of the reasons why we need to hire professional agents is because they have a network of professionals such as contractors, lawyers, masons, plumbers and others who can be easily reached when required. We can hardly expect such facilities when we work with non-professionals

  1. Handling Paperwork 

Paperwork could be difficult, time-consuming and chaotic if you are a newbie in this sector. These works can get you into a lot of confusion. Hiring agents who have been working in this sector could guide you in handling the paperwork and ease your way through closing the deal.

Now that more people are being aware of the importance of working with professionals, we can see that a lot of professional real estate agencies rising. Working with these professionals can make your home buying process less frantic and more efficient. You can actually feel the difference!