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Usage of Unaccounted Cash Still Prevalent in Market: Report

Large cash transactions still present in resale realty market

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Unaccounted cash
Significant usage of unaccounted cash is still prevalent in the secondarly real estate market. Pixabay

It has been three years since demonetisation which was implemented with the aim to curb and eradicate black money. But according to a report released on Wednesday, significant usage of unaccounted cash is still prevalent in the secondarily real estate market.

The report prepared by Anarock Property Consultants said that up to 30 per cent of the total transaction value in the secondary or resale residential maket in India can still be paid in cash.

However, the primary sales market in tier-I cities offer the least scope for unaccounted wealth in property deals, it said.

“Demonetization in November 2016 sent Indian residential real estate — till then a preferred laundromat for unaccounted wealth — into an almost terminal tailspin. Even three years after DeMo, the battle is only half-won,” said Anuj Puri, Chairman Aof Anarock Property Consultants.

“The secondary or resale residential real estate market still accommodates black money; at least 30 per cent of the total cost of resale property can still be paid in cash. While more and more buyers and sellers prefer official payment routes as a matter of principle, many still use the resale property market to launder untaxed cash,” he added.

Cash in market
Many buyers use the resale property market to launder untaxed cash. Pixabay

As per the report, while the trend in the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR), which are historically notorious for black money in real estate, has tamed considerably in primary sales, their resale property markets still see cash components.

As much as 20-25 per cent of the total resale property cost can still be “adjusted” with black money, it said, adding that in Bengaluru, Pune and Hyderabad, the prevalence of transparent payment routes, even on the resale market, is much higher.

“Unlike the primary sales market, the resale market still lacks strict regulations, making it easier for buyers and sellers to use cash components.

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Also, the primary sales market involves developers with a reputation to protect, while a resale property transaction involves two individuals. The pricing of resale properties also lacks transparency,” the report said.

In the case of direct sales by developers, there are readily-available pricing benchmarks, while in the secondary market, a seller can inflate the price of a property based on location, added features and so on without stating on the books. (IANS)

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The Main Benefits of Opening an Online Business

High internet connection speed and access to the global market are definitely the engine behind the development of many online companies

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Online Business
As the world gets busier, being able to access a website at any hour is an important facility and an Online Business. This is not available for e-commerce shops only, but also for all types of businesses which can offer their clients the possibility of researching their activities any time of the day. Pixabay

The number of people starting online businesses has increased a lot in the last several years thanks to the low maintenance costs and the possibility of accessing worldwide markets. Starting an Online Business has many advantages, among which these already mentioned are just a few of them. It must be noted, though, that registering an online company implies similar steps as for starting a traditional one. For example, when opening an e-commerce company in the Netherlands, incorporating a business entity the traditional way is still necessary. From this point of view, the Dutch private limited liability company is the easiest to register.

Returning to the advantages of an online company, we will present some of them below.

A great marketing tool

An online business is an important, if not the most important marketing tool, in our days. While e-commerce companies can sell goods through their websites, having a website is useful for traditional businesses too. For example, if running a dental office in Dubai, having a website where all the procedures, costs, testimonials from patients are gathered can help attracting more patients and also increasing the level of confidence in the business. As many studies indicate, people trust companies with websites as these act as extensions of a company.

Online Business
The number of people starting online businesses has increased a lot in the last several years thanks to the low maintenance costs and the possibility of accessing worldwide markets. Starting an Online Business has many advantages, among which these already mentioned are just a few of them. Pixabay

Round the clock access for clients

As the world gets busier, being able to access a website at any hour is an important facility and an online business. This is not available for e-commerce shops only, but also for all types of businesses which can offer their clients the possibility of researching their activities any time of the day. When it comes to shopping, the option of ordering a product online and having it delivered is even more important as clients will save time, energy and money with going to and back from the store.

Low logistics and labor costs

Renting or buying office space, warehousing space and dealing with other logistics-related processes is time and money-consuming for traditional companies. For online businesses these costs can be kept to a minimum thanks to the fact that most of the activities are completed online. When it comes to the labor costs, there is no need to hire many people to work for an online company, thus helping the owner save important amounts of money.

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High internet connection speed and access to the global market are definitely the engine behind the development of many online companies. Without a doubt, the world is heading towards a majority of Internet-based businesses thanks to the advantages mentioned above and also to new developments underway.