Thursday, May 28, 2015

Detailed Guide: Finding and Moving to a New Home

Are you in your 20s or early 30s? And starting your master’s degree or settling in a new job or just got married, chances are, you have encountered this massive hunt. Yea hunt and we are talking about finding the right place to stay and live in a city of your choice. While real estate prices have boomed in major metros across India, and therefore, only option you are left with is to find a decent 1BHK or at most 2BHK apartment near your workplace or institute.

As easy as it may sound, the whole experience of settling in a new home is tedious to say the least. And when we talk about new home, what we mean is renting a home which is of right size, located close to your workplace and is in close proximity to commercial & institutional centers such as malls, hospitals, schools, etc.

So, what are the things one should pay attention to while looking to rent a home in a metro across India? How should I as a home seeker go about the whole experience? We list down the steps based on true experience.

  • Finding the right place
    • List down your ‘wants’ and ‘needs’
    • Search on Internet
  • Preparing to Move
    • Sign the Lease Agreement only after consultation
    • Hire a mover, it’s always worth it
    • Identify your unloading zone in advance
  • Packing Your Bags and Boxes
  • Setting Up
  • The D├ęcor


One can subscribe to the below Guide “The Most Jugaadu 1 BHK Ever” that has tips and tricks for the young population in India which can help them select/buy/transform their 1 BHK into an awesome crib. Hope you will find this useful.

Tuesday, May 26, 2015

What shall I do if interest rates go up?

Sumit booked his apartment in a builder project in 2010 in Noida Extension. He booked a 4BHK unit measuring 2250 Square Feet at a base selling price point of Rs. 1950 per Square Feet. Prices were affordable and he was able to book the apartment within his budget:

Area of the Apartment (SqFt) 2250
Base Selling Price (Rs/SqFt) 1950
Development Charges (Rs/SqFt) 225
Car Parking (Rs) 150000
Club Charges (Rs) 100000
Interest free Maintenance Charges (IFMS) in (Rs/SqFt) 85
Final cost of the apartment (Rs) 5335000

Out of the required 53.35 Lacs, he arranged for 13.35 Lacs from his own sources such as cash, provident fund, and fixed deposits. Balance amount of Rs. 40 Lacs was availed from a leading bank in form of home loan. Home loan rates in 2010 were hovering at around 8 to 8.25%. Which meant his monthly payment in form of EMI was Rs 33458 for a period of 20 years. His home loan interest rates were of floating type. This meant whenever, RBI revises repo rates, home loan interest rates would go up or down depending upon RBI monetary policy.

Everything was going as per plan; however, as the inflation started to go up because of various macro economic factors, RBI started revising its monetary policy. The focus of RBI moved towards bringing inflation under control. And therefore, interest rates started moving up. From about 8% in 2010, the interest rates jumped to about 11% in 2014.

What it meant for Sumit was that his EMI outlays increased over a period of time. At one point of time, he was paying monthly payment of Rs 41288 in form of EMI. That’s an increase of Rs 7830 per month.

What can Sumit do to maintain his EMI under control?

  1. Stretch the loan tenure: Sumit had availed home loan for a period of 20 years. However, since, interest rates had moved up, he could sit with bank officials and seek to extend the loan tenure to 25-30 years. Thereby, he can bring his EMI under control.
  2. Move to another lender: Sumit can also move to another lender offering lower interest rates. In this case, he has to study and analyze the offers by various banks. And if there is a difference of about 0.5%, then, Sumit can switch to another lender to bring his EMI under control. However, he should check if there are any pre-payment charges with existing lender. As per RBI rule, customer can move from one lender to another without paying any pre-payment charges.
  3. Prepay portion of the Loan amount: Sumit can also prepay some portion of his loan amount to the existing lender. This way, his EMI would come within manageable limits.
  4. Avoid shifting to fixed loan rates: When interest rates are fluctuating, many people believe fixed rates are way to go about. However, fixed interest rates are more expensive and at the same time, one cannot take benefits of lower interest rates as and when RBI brings interest rates down. Therefore, Sumit should stick to points 1, 2, or 3 and should completely avoid point 4.

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Friday, May 22, 2015

How is rent for residential property in India calculated? What are the basic components of Rent?

Are you a tenant looking to occupy a residential property? Or are you a landlord looking to earn income from your residential property? For both the parties, rent is the primary area of discussion before they enter into a lease agreement. How much rent shall be paid for a given residential property? What are the main components of rent? How much is the security deposit? What are the other monthly charges? How is security refunded back when tenant vacates the property? These are some of the questions we will discuss below in this article:

How much rent shall be paid for a given property?

Rent is the monthly payment paid by the tenant to the property owner for the use of property. A residential property is used by tenant for living purposes or for the purposes defined in the lease agreement. Any deviation in the use of property by tenant can lead to eviction. And what is the agreeable rent that tenant and owner can arrive at? Principally there are 2 methods:

  • Rent comparison method

It is the most common yardstick that is used by both tenant and owner for determining the rent of the residential property. This method is based on the ability of similar properties to generate monthly rent. For example, in a given locality, one needs to look at the rent that others are paying on a monthly basis. If properties in question are highly similar, then, one would expect the same rent for a specified property. However, if the properties are dissimilar, then monthly rent is adjusted. If the subject property is superior to other properties in the locality, then, chargeable monthly rent will be on higher side. And if the subject property is inferior to other properties in the locality, then, chargeable monthly rent will be on lower side.

  • Cost method

This is a method based on the cost of the property. Cost of the property is the sum of current market value of land + cost of construction. In India, rental yields for residential properties are not very high. Typically, a property fetches anywhere between 2-3% of annual return on the cost of property. For example, if the cost of property is say Rupees 1 Crores, then, expected yearly rent could be in the range of Rupees 2-3 Lacs Or in other words, Rupees 16000-25000 per month. One must take note of the fact that, this 2-3% annual rent is calculated when the property in question is fully developed or its FSI (Floor Space Index) is fully utilized.

What are the main components of Rent?

Monthly Rent for the residential property comprises of following elements:

  1. Base rent which is calculated by ‘rent comparison method’ or ‘cost method’.
  2. Utility charges to be paid by tenant as per actual. Utility charges include electricity bill, water bill, Gas charges.
  3. Maintenance charges. Maintenance charges are paid extra by the tenant.
  4. Security deposit – it is the lump sum payment demanded by landlord at the beginning of the lease. It is an interest free payment and is refunded by the landlord to the tenant when the property is vacated. However, if the property has been damaged during the tenure of tenant, then, landlord may hold some part of security deposit to cover the expenses. This is clearly highlighted in the lease agreement as well. Security deposit differs from city to city. In Delhi, security deposit is about 2-3 months of rent. However, in Bangalore, the security deposit demanded by landlord is around 10 months of rent.

It is imperative for both tenant and landlord to discuss these things well in advance and all the charges shall be clearly mentioned in the lease agreement to avoid any difficulties during the course of stay.

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Tuesday, May 19, 2015

What are the landlord’s rights and what precautions a landlord shall take before renting out a property?

Real estate is a lucrative investment class. Not only it gives you capital appreciation gains but at the same time one can earn rental income from his/her property. Whether the property you own is commercial or residential, one can rent the property to earn stable monthly income. However, as easy as it may sound, there are always issues when it comes to renting out a property. What if the tenant does not pay the rent on time? What if the tenant mishandles the property? What if the tenant doesn't pay the utility bills on time? These are some of the questions a property owner is confronted with and therefore taking precautions at the beginning of renting out a property will make sure that the property is rented out to good quality tenant.

At the same time, a landlord enjoys legal rights as laid down by the Transfer of Property Act, 1882. These are ‘Right to timely accrual of lease amount’, ‘Right to know about the condition his property is in’, ‘Right to know of any changes that the tenant might want to make’, ‘Right to notify the tenant of an intention to increase the rent’, ‘Right to be informed of any disclosures’, ‘Right to get back his property on repossession’, ‘Right to repossess the property complete with all fittings and furnishings’, ‘Right to claim all the charges for supplies’.

Therefore, before one rents out or leases his/her property to a prospective tenant, make sure to go through the following document about ‘Precautions before renting out’ and ‘landlord's rights’.

Thursday, May 14, 2015

Must-ask Questions Before You Finalize on a Luxury Apartment

Now, that you have decided to buy a luxury apartment, it’s important to invest your time and carry out the necessary homework around the luxury real-estate market. Firstly, the easiest way to do research is using the internet. There are many real-estate discussion forums and groups in social-networking sites such as Facebook or Quora, where you can post questions related to the luxury home market. All you need is basic networking skills, and you can easily evoke informative answers from “virtual” friends.

Apart from posting online queries, it’s important for you to have in-person interactions with people in real estate. For example, you can set appointments with sales people from various real-estate companies and get a quick view of the prices and deals.

Besides, it’s important to draw impartial advice from people who are experts in the market. In that respect, you may meet real-estate advisers, brokers and agents who are known to enlighten many on the market and share a few tips on finding the best deals in the city.

All the interactions, be they virtual or in person, will help you to avoid apprehensions about the big investments you’re about to make. However, there are ways in which you can prepare yourself and ask better questions to understand the market of luxury apartments.

Before the final plunge, let's quickly run through some common questions that come to everyone's mind…

  1. Is the project title clear? 
  2. Has the project got the required approval? 
  3. What is the total cost of ownership? What is the monthly maintenance cost?
  4. Which other costs are included along with the registration fee?  
  5. What are the highlights of the project? 
  6. How great is the aesthetic value of the building? Is the building design in sync with your concept of a luxury building? 
  7. What are the key amenities showcased by the builder? 
  8. According to you, what are the most desirable amenities of a luxury apartment?
  9. How good are the views from balcony and living room?
  10. Are concierge services available? 
  11. How far are the conveniences?
  12. Is the price affordable for you? 
  13. What’s the overall reputation of the builder in terms of deliverability, quality and finish?
  14. What’s the actual size of the house? 
  15. Is there a model apartment or an occupied flat that you can visit?  
  16. What is the compensation offered if the possession gets delayed?
  17. Is there an option to customize the interiors when the building is in construction phase?
  18. What are the luxury amenities provided by the builder? Are they at par with amenities in luxury projects being built by other builders?
  19. What is the overall prospect of the price trends in the given locality?
  20. What is the probable return on investment for the given project?
  21. If the apartment is already occupied, can you check the opinion of current owners about the property?
  22. How is the locality connected to other parts of the city? 
  23. Is there easy access to public transport facilities?
  24. Apart from the main features, what are subtle aspects of the project which make it unique? For example, the floor-to-ceiling height, common wall sharing, number of apartments in each floor or block, number of elevators in each block, fire safety precautions, etc.

Closing note...

Here is one suggestion to prospective luxury home buyers – don’t believe everything that sales reps say. Try to go beyond their words and the glossy brochures. Carry out a good research on your future home as the pay-out is big and it’s an important decision in your life.

This is a Guest post by Seema Mohta, who has over 7 years of experience within Real Estate Industry. She has worked with Various Real estate companies and has Good knowledge about property trends, Investment, Apartments in Sarjapur

Tuesday, May 12, 2015

Real Estate Investment in Kolkata

Investing in real estate is profitable in many ways. Property can either be rented out for a fixed monthly income or sold later for profit. However, most of the purchases consist of a considerable amount of money changing hands and it is advisable to check up on a few facts before plunging into any deal involving real estate.

  • Factors to consider when investing in real estate

Location has the biggest impact when it comes to investing in real estate projects in Kolkata. For e.g. the price of any residential project in a prime location is invariably much more in comparison to other projects. Proximity to schools, malls, markets etc. is something that buyers look for and this appreciates the value of an upcoming or ongoing project. So, the better the location, the higher the value of the property becomes.

There are many other points to consider. Any project which adheres to government regulations about building norms helps in increasing the value of the property by virtue of its trust factor. The main entrance of the project also plays a role in deciding the property’s valuation. A nice entry for a property can help in creating a good perception for a project as a ‘feel-good’ factor. Safety and security in the region and within the property is another important aspect to consider when investing in real estate.

The facilities that the property promises to provide must be looked into when the purchase is being made. This is especially important when dealing with residential projects or complexes as they have many features and facilities which can make a property attractive.

  • The rise in real estate investment in Kolkata

Kolkata has witnessed a gradual rise in property prices with more people gaining trust in real estate investments in Kolkata. More properties are being constructed to cater to the needs of the city and also around the outskirts of the city. This growth of the real estate market to an extent is dependent on the transportation facilities in the city. Kolkata features the most economical modes of transportation compared to the other metros in India. Recent developments include plans to extend the metro railway in Kolkata to facilitate connectivity across more regions within the city. This has allowed real estate companies to develop properties away from the main city as these regions will be well-connected after the completion of the project.

Most developers and real estate companies in Kolkata often adapt and follow model projects in other metro cities. Therefore, good planning of residential projects has been another reason why real estate properties in Kolkata are seen as good investment opportunities. Real Estate companies often try to attract buyers by offering gifts with the purchase of any property. Free televisions, cars and parking spots are perks that prospective buyers find worth the investment.

Real estate investment is more affordable in Kolkata than in the other metro cities. The prices for flats in residential projects are lower than those in cities like Mumbai, Delhi, Chennai or Bangalore. Also, the re-sale value of these properties provides a decent return for any investment. It is due to these reasons that investing in real estate properties in Kolkata is on rise.

This is a Guest Post by Anita Kedia

Friday, May 8, 2015

Luxury houses in India: Choose EMI over rent

Are you paying an enormous sum of money on house rent every month? If yes, ask yourself, that why are you letting your hard-earned money to go down the drain? There is no need to do that anymore! Now, you can select your dream home from various luxury houses in India by investing the same money on EMI. As per research, young professionals are seeking accommodation by buying luxurious houses in India on EMI basis. When the real estate market has a lot to offer then who doesn't wish to spend a little extra and raise their standard of living? Read further to discover how young India is investing in apartments in Chennai and other parts of the country.

  • Matching the demands of young professionals

When it comes to buying luxury houses in India, young, ambitious, and working professionals under the age of 30 are not looking for conventional choices. As per a survey, it was found that young adults wish to buy apartments in Chennai and other metropolitan cities. They do not mind investing in residential properties that are surrounded by greenery and situated on the outskirts of the city. The primary preference lies in high-rise buildings with required amenities.

According to the survey, it was also found that conventional residential spaces do not excite working professionals under the age of 30. The hunt is for owning a property that has a decent connectivity with the rest of the city, but the residential complex needs to offer something unique as compared to the other ongoing projects. A decent society needs to provide social comfort, as well as add to the intellectual quotient of the person. Keeping in mind the fast paced lives of young individuals, they prefer purchasing luxury houses in India that have a few restaurants and food joints nearby.

  • What real estate developers think?

Today, the real estate market is buzzing with modern and upscale luxury houses in India. They understand that the young prefer properties with greenery around. Having facilities such as schools, hospitals, groceries or supermarkets, works as an advantage. Since they are working individuals, they would require a well-knit local transportation from their residence to their workplace. Hence, real estate developers are designing homes where young people can choose between both comfort and affordability. Many luxury houses in India, especially apartments in Chennai are booming with an excellent social infrastructure, lifestyle shopping malls and health care centers. Most premium projects are coming up with a temple, swimming pool, Jacuzzi, spa, badminton and squash court.

  • EMI system is soon catching up with the young crowd

It has to be noted that when youngsters hunt for luxury houses in India and are away from their hometown, they avoid the conventional way of staying with distant relatives. Staying on rent turns out to be a huge hassle because you cannot make too many changes to the house as it is rented. For example, even if you would want to drive a nail into the wall, you would require permission from the owner. Banks have now made loan availability procedures easier as compared to the earlier times. The interest rates too have been brought down. These days, even real estate developers are providing low-down payments and EMI options with zero percent interest. In today’s times, owning an apartment in a contemporary housing complex has become a necessity as well as an aspiration for the urban youth. It has created a demand for quality housing and real estate developers are taking a note of this.

Nowadays, the topmost real estate developers of the country such as House of Hiranandani are coming up with the concept of environmentally-friendly buildings. They have lured potential buyers to invest in larger upscale projects with world class facilities. House of Hiranandani believes that young working individuals prefer innovative designs, classy infrastructure, and built-in modern appliances that save time and energy. Hence, they are working on developing luxury houses in India.

With young investors choosing to buy luxury houses in India on EMI basis, real estate developers are coming up with lucrative schemes for their housing projects. After all, every potential investor wishes to buy a luxurious home at their convenience.

This is a guest post by Deepak Yewle

Tuesday, May 5, 2015

Rahul Gandhi attacks Modi Government’s Real Estate Regulatory Bill. Is he right??

Real Estate Regulatory Authority Bill is facing tough resistance from the Congress Party. Congress Party Vice President has taken up the cause of middle class home buyers. Congress Party is of the view that the bill in its current state is anti-home-buyer and pro builder.

Last Saturday 2nd May 2015, about 200 home buyers who have grievances against builders met Mr. Rahul Gandhi at Congress Headquarters. The problems highlighted by home-buyers ranged from delay in deliveries of flats to shortchanging by the developers.

Congress opines that some amendments to their bill have been made which are pro-builders (Read here about Real Estate Regulatory Bill 2013 passed by Congress Government).

  1. Definition of Carpet area has been changed. As per the bill passed by the Congress party, carpet area was ‘net usable area’ in an apartment, excluding the walls. Now, it has been amended and the ‘net usable area’ will be ‘rent-able area’ as defined in National Building Code 2005 or its later versions.
  2. In the bill passed by Congress government, builders were not allowed to change the sanctioned plan once it was approved. Now it has been amended and minor changes are allowed by informing the buyer. 
  3. In the bill passed by the Congress government, it was difficult to get extensions on project deadlines. However, it has been amended now and builder can seek extensions‘…due to force majeure or under such conditions as may be prescribed, which may include issue of completion certificate, approvals etc. without default on the part of promoter…’
  4. In the bill passed by Congress government, a builder had to keep 70% of the money collected from home-buyers for the project. Now it has been amended to 50%.

Well, the points made by the Congress party are certainly in the interest of the home-buyers. However, we need to look at the whole picture comprising of Home-buyers, builders, and authorities.

Let’s take an analogy. A car comprises of fuel injection mechanism and exhaust mechanism. Fuel goes in the engine and burns and produces emissions. If fuel is of good quality and is mixed appropriately, then, we have a complete combustion and there are no toxic emissions.

As things stand today in real estate sector, we won’t get the solution if we focus only on the exhaust side. Because make no mistake, howsoever, we may try to fix the problem at the exhaust side, we won’t get the solution. There will always be toxic elements.

What we need to do is ‘fix the problem at the Fuel intake side’. And that means, taking into consideration all stakeholders including the builders, home-buyers, and authorities.

What are the ingredients for ‘Good quality of Fuel’ at the intake stage?

  1. Make Land acquisition process smooth and transparent.
  2. Digitize land records in order to eliminate title disputes.
  3. Single window clearances for realty projects. As things stand today, a developer has to take 40-60 approvals depending on the state. This whole process of taking approvals delays the project and increases the cost. By some estimates, project cost will come down by 20% if we have a single window clearance mechanism in place.
  4. Independence agencies to inspect the project during construction phase in order to make sure that project is being constructed as per the ‘National Building Code’.

Having the right Fuel at the intake stage will make sure that construction of the project is smooth and on time. There won’t be any discrepancies.


Saturday, May 2, 2015

Kisan in Demand! Are Political parties such as Congress, AAP, and others in opposition right in keeping Kisan a Kisan?

Kisan in Demand

In the name of Kisan, major political parties are organizing mega rallies. Congress Party organized a Kisan rally in Ramleela Maidan in Delhi on 19 April 2015. Aam Aadmi Party followed the trend and organized a rally on 22 April 2015. Gajendra Singh of Dausa (Rajasthan) died at an Aam Aadmi Party (AAP) Kisan (Farmer) rally in New Delhi on Wednesday 22 April, 2015. The rally was organized by Aam Aadmi Party and its leader Arvind Kejriwal against the Central Government’s land acquisition bill. Gajendra Singh, a farmer from Nangal Jhamarwada in Bandikui of Dausa district, ended his life by hanging himself from the tree during the rally. And as expected, the blame game and politicization of issue has begun. Well, what we are witnessing today is the recreation of ‘Peepli Live’ in Delhi.

Various theories are floating around as to why Gajendra Singh ended his life. Was it because of crop failure due to unexpected hailstorm and nonseasonal rain? However, local officials said crop loss in Gajendra’s area had been between 20-25%, far less than the damage in many other parts of Rajasthan. Well, investigations have been ordered by the home ministry and we will get to know the truth in coming days or weeks.

However, Gajendra is not alone in this battle. Suicide has spread like an epidemic among the distraught farmers. About 158,745 farmers have taken their lives since 2004 till 2013 and 86.5 percent of farmers who took their own lives were financially indebted.

Do these so Called Pro Poor and Pro Kisan Parties really care about Farmers issues?

Now, the question that needs to be asked from so called Pro Poor and Pro Kisan parties is, ‘Should the farmer remain tied to farming for generations and live in poverty’?? A closer look at the world data tells us the complete picture:

It is clearly evident from the Graphs above that rural population & employment in agriculture in India needs to come down to China level or world level. There are simply too many farmers working on the farm and they need to be put in industries to lift them up from abject poverty. To increase per capita income, to improve people’s livelihood, jobs and employments need to be created in a massive way. And Focus on Manufacturing can help in lifting millions out of poverty.

And the parties such as Aam Aadmi Party, Congress Party shall introspect and not oppose land acquisition bill just for the sake of opposing it. The bill must be debated and passed in a given time frame for rapid industrialization in India. Most farmers approach MPs and MLAs for jobs for their children in industries and not for working in farms. However, the very same farmers are incited by these parties for political gains. The focus shall not be on Bills in parliament; instead, the focus shall be on ‘how to lift people out of poverty’?

Land Acquisition Bill

In this political slug-fest, Land acquisition Bill has now become a hot potato. Congress, Aam Aadmi Party, Left, and Janta Dal have all united to oppose the bill in Rajya Sabha. Congress Party is in such bad mood that it is opposing the laws mooted by them in first place. They failed to deliver on those laws is another matter.

For moving millions out of rural areas to urban & semi urban areas, government needs to build capacity. And by Capacity building, we mean, developing industrial corridors, housing, roads, power generation, and irrigation. And all of this capacity building needs to be implemented at a fast pace because Kisan cannot wait for entire generation to move out of poverty and live a dignified life. 

In this context, Land acquisition becomes vital. Land is required for all these capacity building projects. India is in sweet spot at this stage among major world economies and domestic as well as foreign investors are willing to pump in the money to build infrastructure projects. However, land acquisition is major issue for these firms with many of them postponing investment in projects citing land acquisition problems. There are suggestions by some corners that these industrial enterprises shall purchase the land directly from the farmers. However, it doesn't seem feasible in India because of disputed land titles. And this is where Government has to step in to acquire land and then invite industries to build projects.

So, what are the main issues that Opposition Parties are against in the amended Land Acquisition Bill?

Till 2013, Land acquisition in India was governed by The Land Acquisition Act of 1894. However, following the controversies of Singur in Kolkata and bhatta parsaul in Uttar Pradesh, the UPA government in 2013 brought in a new bill called ‘Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation (RFCTLARR) Act’ to repeal the 19th century act. However, Industry players objected in unison saying the bill was too draconian and the bill will make sure that no land is acquired in the country thereby halting economic development.

After the NDA Government under Mr. Narendra Modi came to power, the focus shifted to industrialization in order to create jobs and economic prosperity. The new government decided to bring in following amendments to UPA Land Bill of 2013:

According to PRS Legislative Research these are:
  1. Excluded Acts brought under the RFCTLARR Act: According to the Act 2013, 13 Acts were excluded from the RFCTLARR Act but with the new ordinance they are now brought under its purview. Thus, it brings the compensation, rehabilitation and resettlement provisions of these 13 laws in consonance with the Act.
  2. Removal of consent clause in five areas: The ordinance removes the consent clause for acquiring land for five areas - industrial corridors, public private partnership projects, rural infrastructure, affordable housing and defense. The ordinance also exempts projects in these five areas from Social Impact Assessment and acquisition of irrigated multi-cropped land and other agricultural land, which earlier could not be acquired beyond a certain limit.
  3. Return of unutilized land: According to the Act 2013, if the land remains unutilized for five years, then it needs to be returned to the owner. But according to the ordinance the period after which unutilized land needs to be returned will be five years, or any period specified at the time of setting up the project, whichever is later.
  4. Time frame: The ordinance states that if the possession of acquired land under Act 1984 is not taken for reasons, then the new law will be applied.
  5. Word 'private company' replaced with 'private entity': While the Act 2013 stated that the land can be acquired for private companies, the ordinance replaced it with private entity. A private entity is an entity other than a government entity, and could include a proprietorship, partnership, company, corporation, non-profit organization, or other entity under any other law.
  6. Offence by government officials: If an offence is committed by a government official or the head of the department, then s/he cannot be prosecuted without the prior sanction of the government.
The Congress Party, Aam Aadmi Party, Left, Janta Dal are against these amendments. Recently, Rahul Gandhi in Parliament even termed the government anti poor and pro corporate.

Is Corporate really a Bad/Dirty word??

Citizens of this country answered in big numbers that we want economic growth by voting for Modi Government in 2014 elections. If Congress Party was Pro Poor, they would not have lost the elections so badly. Because make no mistake, the real power in India lies with poor. Now that poor has voted for Modi Government, the opposition parties shall introspect and not halt economic progress of the country.

Is ‘Profit’ a dirty word? Why would an industrialist take all the risks and set-up factories if ‘Profit’ be labeled as dirty? On the other hand, so called pro poor parties shall answer; is ‘Poverty’ a virtue? Since Independence, more than 65 years have passed by and pro poor parties are still shouting pro poor slogans. What did they do to lift poor out of poverty? Take a look at China & other countries and how they have successfully lifted millions out of poverty.

Ask any farmer from the Greater Noida (Noida extension region) about their land. And they all will tell you, that they are happy to sell their lands. Son of a farmer who was working for Rupees 4000 a month is now driving an Audi. Sanand in Gujarat has also witnessed such boom after Tata set-up their Nano plant. Manesar, Bhiwadi, Daruhera, and Greater Faridabad are other such examples where farmers have benefited from industrialization. As depicted in chart (employment in agriculture sector in India), millions of farmers need to move out of farms to work in industries for better livelihoods. Farms can simply not feed such a large population.

Market Place Economy:

We no longer live in a capitalist economy as termed by some Congress and Left members. Instead, we are moving towards market place economies. Anyone with entrepreneurial spirit can succeed. Capital is available for innovative business ideas and business models. Merit is the need of the hour and not doles. The more efficient or skilled one is, the more prosperous one grows. Therefore, keeping farmers on farms is nothing but hindering their growth.

Land Acquisition is an important legislation and must be communicated well by the central Government. It’s not about land acquisition; it’s all about removing poverty from India. Moving towards industrialization will mean more tax revenues for the government which then can be used for social welfare schemes for the benefits of poor.

The new Nara (slogan)

Jai Jawan Jai Industry

Author: Sachin Gupta LinkedIn

Friday, May 1, 2015

Power of Attorney in India

Power of Attorney is used in many real estate transactions in India. In fact, there are instances when people opt for Power of Attorney instead of the property registration to save on exorbitant property stamp duty and registration charges.

The literal definition of Attorney is ‘a person, typically a lawyer, appointed to act for another in business or legal matters’. Therefore, in real estate transactions, a typical Power of Attorney would mean one person authorizing another person to act on his/her behalf as a legal representative to make binding legal and financial decisions. The person who gives Power of Attorney is known as donor or Principal, while the person who receives the Power of Attorney is known as Agent or holder.

In Delhi, many real estate transactions take place on ‘Power of Attorney’. Since property circle rates in Delhi are extremely high, therefore, there are people who opt for Power of Attorney to save on stamp duty and registration charges. However, there are risks attached to such transactions in case the Agent or holder does not discharge his/her duties accurately and honestly. For example, if the Agent or holder defaults on EMIs on a given property, then, the Principal’s property may be taken over by the authorized bodies by issuing a SARFAESI notice and auctioned for recovery of dues.

More on Power of Attorney can be found below:

Monday, April 20, 2015

Innovation in essentials of construction materials

Civil engineering is raving up fast with new innovations being made rapidly. From sealants to adhesives, from wall solutions to roofing, it is getting environmental or technological friendly with every invention, which is indeed need of the hour.
Innovations in construction material industry are imperative to better manage the construction process and boost efficiency as well as provide cost-effective solutions. It also minimizes construction time along with adding durability factor.
Presenting to you with such 5 mind-blowing innovations that have brought new face to buildings-

  • Dryfix, a revolution in masonry-

Dryfix is a revolutionary bond (or glue) that is a complete wall building solution and is highly superior to the traditional mortar used by masons. Unlike mortar, which is messy to work with and takes days to settle and requires loads of water for curing, Dryfix is a strong adhesive bond that requires no curation and is ready to use. With this innovative product you can build walls almost 50 percent faster. It is easy to use and leaves no debris to be dumped. It is also seasonally independent and cost-effective. Porothermdryfix drastically reduces gaps and joints, hence leaving no thermal bridges.

Image Courtesy: Wienerberger

  • Bamboo corrugated sheets, a boon for people residing in earthquake prone areas-

Bamboo is well known for its robust and versatile nature. Bamboo, one of the best substitutes for wood, which is on the verge of getting extinct, is being extensively used in constructions, especially the low-budget buildings.  Its versatility allows it to be made into different forms like mat board, mat veneer composite, etc. among which bamboo corrugated sheets for roofing has highest merits. These bamboo roof sheets are the perfect substitute for asbestos and galvanized steel sheets used for roofing, particularly in the earthquake prone areas. They are lightweight, natural, energy-efficient and cost-effective, which also falls under green construction materials.


  • ‘Green wood’, the story of rages to riches!

Green wood’, an innovation by par, a 16 years old Delhi based girl, has made these bricks out of unwanted rice husks and straw mixed with resin which are then pressed to form particleboard. They’re believed to be free from fungi and mould and can be used for construction purposes. Alternatively, it can also be used as substitute for wood for making low-cost furniture.

  • Hollow bricks, a smart innovation for fast and easy construction

Hollow bricks, yet another innovation in essentials of construction materials has successfully raised the process as well as the buildings to a whole new level. With hollow bricks the construction is fast due to uniformity in the make and pattern of the bricks. They are bigger compared to traditional solid bricks and hence reduce the joints thereby consuming less masonry, which helps to cut costs. They’re light in weight, which makes handling easy and speed-up the process that further reduces the cost. Since they’re made of natural resources like clay it helps in reducing energy consumption by providing a means for thermal insulation.

Image Courtesy: Wienerberger

  • Bricks born from ashes, all in one rural area
RHA (Rice Husk Ash) brick is the brainchild of a farmer who believes in natural farming based in Kanchipuram. In the urge to prevent farming land turning infertile due to dumping of rice husk, this genius who has won rural innovation award started making these bricks.  These bricks can be done easily by combining RHA with sand, quarry dust and some cement. They are low-cost bricks and helps conserve the environment.

  • Bagasse Particle Board as innovative laminated flooring- 
Bagasse, the leftover pulp of sugarcane after the extraction of juice can be used as a substitute for wood in particleboard. Bagasse is generated in large scale especially in sugar mills which otherwise go waste. Though bagasse is the core material used for laminated floors, it doesn't provide enough strength on its own and has poor water resistance. However, when combined with resin, which acts as bonding agent along with wax that is used as dimensional stabilizer, these particleboard can be used for laminated flooring. Further, bagasse based partial boards can also be used to make furniture which are not only Eco-friendly but also cost-effective.

All these innovative building materials have brought a wave of change not only in terms of saving environment by reducing use of concrete, wood and other traditional resources, but have also provided architects room to think creatively to inculcate green concept in their designs.   

This is a Guest Post by Wienerberger, the world leaders in Building Material solutions, present across 30 countries and 215 manufacturing units across the globe, provides complete solutions to our clients by delivering smart building materials and smart solutions. 

Friday, April 17, 2015

Find your home in Sector 107 and Sector 168 in Noida by Sunworld

SUNWORLD ARISTA at GH-1C, Sec 168, Noida Expressway is a well-designed residential complex by SUNWORLD Developers Pvt. Ltd.

Built next to some of the renowned IT parks and schools within reach, it links to the Apollo Hospital at a mere distance of 15 minutes.

It comprises of two kind of apartments (3 & 4 BHK and Studio Apartments).While the 3 & 4 BHK Apartments have been categorized into four types (3BHK – 1750, 2100, 4BHK – 2700, 3500 Sq. Ft.) based on the area ,the Studio apartments are fully furnished covering an area of size 615 Sq Ft. and provide much of the basic amenities plus a few luxuries as well.

The architecture is a blend of two eras, the design of the 19th century Britain spiked with the privileges of the 21th century. The place being arranged with the sport lovers in mind also provide a soothing Yoga and Meditation area for the calm and composed.

The Developers provide two kinds of payment plans for the convenience of its customers which include the 60:40 plan and the down payment plan. The prices vary depending on the preferences made such as the choice of the floor and the view.

The builder also offers a wide range of other projects including the Sunworld Vanalika and more.

SUNWORLD VANALIKA, another project by SUNWORLD Developers Pvt. Ltd., located in GH-1B, Sector -107 (opposite Sector-47), Noida is a finely designed residential complex, crafted specially for those who want to stay close to the nature.

The project comprises of 3 &4 BHK Apartments and has been divided into four categories (3BHK - 1405, 1730 & 4BHK - 2650, 3400 SQ FT) based on the area plus the design.

Surrounded by a 20 m long green belt, it provides all the basic facilities like ample parking space, swimming pool, amphitheater, play courts and much more, with the main attraction being the serene landscape that soothes one’s mind and soul.

It further connects all the major necessities involving banks, food courts, hospitals and schools via a 10 or 15 minute route with the major landmark, the ATTA Market located at a distance of 550 m.

It comes with two easy payment plans, one being the 40:60 plan where 60% of the total amount can be paid at the time of possession and the other being the 25:75 subvention payment plan.

The prices vary according to the preference of the location. Some of the towers are even completed and ready for possession.

For Bookings, Click here

Monday, April 13, 2015

Buying your second property? Here is the checklist

Second home, a nomenclature designated to vacation house, investment house, or simply a home for the extended family. Whatever name you call it, second home market is developing as a cash cow for the investors and developers alike. Let us look into the concept of home away from home in some more detail and see a checklist to help make it a profitable venture without burning a hole in your pockets.

Buying a second house is very similar to buying the primary residence to some extent. However the dynamics might change depending on the purpose for which the property is bought. The purchase of such houses depends mostly on disposable income, as they are bought to match the lifestyle choice more than the primary need. Thus a lot of other things like purpose, affordability, and location etc. come into the picture.

For someone planning to buy a second house, hundreds of things need to be considered. It has been observed that it all comes down to a few basic points like purpose, affordability, location, and some other similar factors.

If you are struggling with the decision of whether or not to buy a second house, here is a checklist of decisions that you will have to encounter in order to take a sound decision. Give them a thorough thought before you go ahead and buy a house.

  • Buy an age friendly house

Investing in a retirement house is also a very common thing. If that is your plan and you have decided on living in the second house, opt for an age friendly house. The amenities offered by the project will play a major role here. For a house that you plan to retire in, it should have all the care facilities, ATMs, shopping complexes, etc. in close proximity.

In India, places like Pune, Bangalore, Chennai, etc. are seen as age friendly cities. So if you plan on retiring in comfort, buy an apartment in Bangalore or opt for a house in Pune or Chennai.

  • Think about the location 

It is one of the main considerations that second-home buyers take. The first part is to decide whether to invest in your city or buy a house elsewhere. Factors like safety, property values, rate of returns, etc. hold importance in deciding the location.

For those looking to buy house in the same city, pointers like purpose, location, and neighborhood plays a major role.

If you plan to buy a house for investment purposes, go for areas near metro routes or high on physical infrastructure front. In a country like India, where the real estate developments are on an all-time high, there are a number of profitable options available to you as second house destinations.

  • Purpose of the second house

The purpose of buying a second house should be clear before you make the investment. Decide whether you are looking for retirement house, vacation house, or for investment needs. The location, price of project, and future of the property depends on this choice.

When buying house for vacation, the factors like returns, neighborhood etc. are overridden by luxury, comfort, and status-quo. And when you buy a house for investments, the exact opposite happens.

  • Finances 

The main concern when buying a second property is Finances. If you already have the first property going on EMI, it is important to decide whether you want the second property on EMI too, or you want to pay the loan off on the first one and start a fresh loan scheme.

The affordability should always be given a priority. Avoid keeping both the property on loan. Have a good portion of the income with yourself to handle any exigencies with ease.

  • Decide what happens with the old house

It is closely related to the purpose point. Before you buy the new house, decide what you are going to do with the old one. It is seen that people often live in the new house and put the old one on rent. Do proper house-benefit analyses before you decide on something. The pricing and EMI is the first thing that will directly affect this decision.

Before you finalize something, work on the tax benefits and insurances, to get a clearer picture of what is beneficial for you.

  • Land vs. Apartment

Another important decision to take is Apartment vs. Land analysis. People who have already acquired a piece of land prefer to buy an apartment as their second house, and vice-versa. Again factors like purpose and affordability, finances play a major role here.

Along with huge tax benefits and a place for retreat or simply a source of extra income, second homes offer a number a benefits to the owner. However, the intensity of decisions in terms of how crucial they are increases in the second time round. Before you start searching for properties, go through the checklist and take a calculated decision.

This is a guest post by Tripti. Tripti writes on the behalf of Her articles talk about new developments in the real estate industry. She is an avid fiction reader, craftsman and a keen observer. Being someone who just observes without having a point of view, she keeps herself updated in real time. You can reach her on LinkedIn.

Friday, April 10, 2015

Find your home in Sector 78 and Sector 79 in Gurgaon by Raheja Developers

Raheja Ayana Residences

Nothing less than beautiful, serene, and mesmerizing is what describes the Raheja Ayana, latest launch by Raheja Developers.

With its interiors done by La Sarogeeka, India’s only Luxury Interiors MNC, the housing society indubitably typify opulent lifestyle.

Sprawling across 5.16875 acres of land, stationed at Sector 79B, Gurgaon, the housing project connects to the IGI Airport via a 22 km route and NH8 via a 3 Km distance.

With this new invention, the developer plans to pamper its customers with technology driven, ultra-luxurious, smart futuristic homes in the lap of nature. The placid view of Aravallis from the Balcony open wide, feels like residing on the Paradise on Earth.

Presenting the Housing Society with a Bungalow look, the residents are allowed to capture a complete floor of their own flaunting their individuality.

The apartments are available in sizes:-

  • 3 BHK (Sale-able Area)
Plot Size (Sq. Yd.)/
Floor Size (sq. ft.)

  • 4 BHK (Sale-able Area)
Plot Size (Sq. Yd.)/
Floor Size (sq. ft.)

Besides providing the basic amenities like Swimming Pool, Gymnasium and Play Courts, several unconventional features it owns are Parking Space of 2 vehicles with each unit, private Plunge Pool/Jacuzzi in each first floor, and provision of Service Quarter with each unit.

Based on the concept of futuristic homes, the apartments have been designed such that they could be pre-fitted with intelligent systems, so that everything can be controlled with a single touch on the smartphone, be it Curtains, Lightning, Media or Video Door Phones.

The project possesses all the necessary approvals including License, Building Plans, Height Clearance, and Environmental Clearance.

Scattered over an area of 18.72 acres, Revanta, is the brand new addition to the range of luxury residential apartments by Raheja Developers, built by the joint venture company of Raheja Developers and Arabtec Construction LLC.

Positioned at Sector 78, Gurgaon, Revanta with its 180 meters high ‘Surya Tower’, demarcates itself from the others.

22 Km from IGI airport, New Delhi and a 37 km route to the Rashtrapati Bhawan, Revanta connects itself to the city.

With its infinity swimming pool located at floor 46, and restaurant at the highest Sky-bridge of the country, its design and idea sets a class apart.

The project involves two extremely elegant distinctions:

Tapas Townhouses
Available in 3, 4 BHK and Penthouses with attached terraces, they are available in sizes:
  • GF (3532.9 sq. ft.)
  • FF (2372.5 sq. ft.)
  • SF (2073.6 sq. ft.)
  • Lower Penthouse, Upper Penthouse and Mumty Floor (3141.8 sq. ft.)

Surya Tower
Available in options of Studio, 2, 3, 4, 5, 6 BHK & Luxurious Penthouses, the sizes available are:
  • 1 BHK (1197.8 sq. ft.)
  • 2 BHK (1621.3/ 1714.6/ 1854/ 1623.3/1478.8 sq. ft.)
  • 3 BHK (2165.8/ 2304.2/ 2522.8/ 2813.3/ 2457.2 sq. ft.)
  • 4 BHK (3434.3 sq. ft.)
  • 5 BHK (4293.7 sq. ft.)
  • 6 BHK (4961 sq. ft.)

Some of the exclusive amenities it bestows are a dedicated Retail Center, a Laundromat, a Mini Theater, an Automated Car Wash and Valet Parking.

The society has been build based on Earthquake Resistant Framework and provides complete security via the CCTV Surveillance.

The project hosts a Club Facility embracing Swimming Pool, Kids Play Area, Play Courts and Gym plus some Golf Courses located at few miles away.

The project possesses all the necessary approvals including License, Building Plans, Height Clearance, and Environmental Clearance.

For bookings, click here

Tuesday, April 7, 2015

Special offers on group housing projects in Sector 37C in Gurgaon by ILD Developers

ILD Grand Centra

Grand Centra, located at Sector 37 C, Gurgaon is a new residential project in the range of Luxury Apartments by the Ild.

The project will be launched soon.

Situated at a distance few minutes away from the NH8 is one of its advantages plus its easy accessibility to the Dwarka Expressway,the Hero Honda Chowk and a mere 45 minutes route to the IGI Airport are some of the few add-ons that bring it to the spotlight.

The project has been designed considering the eco-friendly techniques i.e. rain water harvesting and follows Energy Saving Practices.

It provides a range of 2 BHK and 3 BHK apartments in sizes 1300 sqft and 1745 sqft respectively, within a gated complex provided with 3 tier advanced security system.

The project provides several amenities, Club Centra being the major one that includes Swimming Pool,Spa,Play Courts, Gymnasium and more, plus the rooms are fully air conditioned making an optimum use of the space, also providing the residents a choice between the garden facing and city skyline overlooking.

ILD Arete

Arete, signifying excellence, at Sector 33, Sohna Gurgaon designed by the WOW Architects, Singapore is the latest launch of ILD in the series of its luxury residential projects.

Located on Gurgaon Sohna Highway, it is a project that provides lavish flats in the city with ultra-modern amenities.

Sprawling across 12 acres at the foothills of Aravallis, this housing project provides 2 sides open, fully air conditioned 2 & 3 BHK Apartments in sizes 1275/1325 sqft. and 1765/1785/1998 sqft. respectively. with the Aravallis and Landscape views.

Its smooth connectivity to NH8 and NH2,KMP Expressway, Delhi-Mumbai Freight Corridor and adjacency to some of the reputed educational institutes like GD Goenka World school, Ryan International school and more increases its grades.

3 acres of central greens provide the basic amenities like Kids Play Area, Swimming Pool, Outdoor Lounge, Gymnasium, and also bestows a Quiet Zone for Senior Citizens.

Available in an easy 35:65 Payment Plan, wherein the customer can pay 35% of the amount in 4 months and the rest of it on possession.

ILD Greens

ILD Greens, another residential project by ILD, at Sector - 37 C, Gurgaon, Haryana, offers world class facilities with a feel of being close to the natural surroundings.

Being in close proximity to the upcoming metro line, schools, colleges, hospitals and malls  plus a 25 min distance from the Delhi International Airport makes it quite a fair choice to consider.

The Project offers 2-4 bedroom apartments and penthouses.

Large Balconies, permeable facades, the wide frontage and the scientifically designed light passages add a little more to the already captivating look.

It further provides a range of basic amenities like Club House, Play Courts, Swimming Pool, Jogging Track, play area within the building plus a few distinctive ones being the Penthouses with exclusive terrace.

The Project is available with two kinds of Payment Plans, Linked Plan and Down Payment Plan.

ILD Grand

ILD Grand stationed at Sector 37 C, Gurgaon presents a modern integrated complex in the heart of the city.

The main attraction of the project is its 3 side open apartments that allow one to breathe freely.

Proximity to the commercial hubs, highways and metro stations is an added advantage.

Amenities it provides are Sky Terrace specially designed for parties play area for kids, Parking Area, Complex of Shops with interconnecting walkways that provides a feel of an indoor version of traditional marketplace.

The Apartments are available in two sizes i.e. Skylark with an area of 1820/1790 sqft. and Proxima with 1310/1280 sqft.

The Projects can be availed through two kinds of payment plans, the first being Construction linked payment plan wherein the customers can pay on completion of various stages of the project and the second one being the Down Payment Plan wherein ILD offers a discount of 10% on the BSP.

For Bookings, click here

Saturday, April 4, 2015

6 reasons why underwriting is bad for real estate sector in India

What is underwriting in real estate and why do real estate developers go for it?

Sumit was looking to purchase a property in Noida and he missed out on the opportunity to book a flat with reputed developer last time because within 2 days of the launch, the project was sold out. He had made up his mind not to miss such opportunities next time. However, even after keeping an eye on new project launches, he missed out again and now the only option left was to book the apartment with channel partners, underwriters, or brokers.

Why does this happen? He questioned…and even wondered…”I read an article last time, and it said…real estate demand is dropping”. How come, these new projects are sold out within a day or two of their launch??

The reason behind the selling of these new real estate projects in a day or two is not the actual demand but artificial demand. Real estate developers use the services of their nexus of brokers and financiers who underwrite these projects.

Real Estate project underwriting in its broader term means sharing the risk of the developer. Brokers or financing houses underwrite the real estate project, which means they have taken on the risk of distributing/selling the project. Should they not be able to find enough investors or customers, they will have to hold some stock themselves. Underwriters make their income from the price difference between the price they pay to the real estate developer and what they collect from investors or from broker-dealers who buy portions of the offering.

With the help of this nexus, developers start making claims that their projects are sold out. With underwriting, developers are able to create a situation wherein they let prospective buyer believe that there is demand for the project and that they should buy the property now or else the prices will go up shortly. And this normally creates a herd mentality among end-users and they have no other option but to buy the property.

Why underwriting is not good for real estate sector in India
  • Artificial demand
The demand thus created by the nexus of builders and underwriters clearly sends the signals to the market that “All is well” with realty sector and demand is robust. However, for a given city the actual demand supply equilibrium can be understood by studying and analyzing the capital value appreciation and rental yields. If demand is robust, it should reflect in the rental yields as well. However, what we see in most Indian cities is the fact that rentals have not kept pace with the capital value appreciation. The artificial demand created by the builder-underwriter nexus keeps the capital value of housing stock unjustifiably high.
  • Prices keep on moving up despite the sluggish market economy and demand
We keep reading from various leading research agencies about the amount of unsold stock lying with the developers and how it has increased over the last quarter or year. There is hope that prices might come down to reasonable level. And all of us sit on the fence hoping that prices are going to come down, but what happens is actually opposite. Prices are always going up. Demand or no demand, prices in real estate sector in India move only in one direction and that is up. There is never a correction. Why? Well, coupled with the limited launch of new supply, holding up of existing inventory keep the prices firm. Finally, the buyer gives in and the cycle continues as usual.
  • Seller’s market
Housing is a basic need where one dreams of having a house with certain features and specifications. In reality, buyers are forced to buy whatever is available at prevailing market prices. There seems to be no choice whatsoever for buyer to buy a piece of land and construct his own property due to high prices.
  • Non preferential allotment
There might be people who might have contacted the developer early and would have thought of booking an apartment at their desired floor with best available view. However, this wishful thought may not come true due to underwriting of the project as it may be blocked by underwriters in bulk bookings.
  • Housing is treated as an investment class rather than a basic need
People or businesses with deep pocket and unaccounted income invest in some of these projects to park their money. There are instances when one individual or business house owns multiple residential properties. Whereas the land allotted by civic authority to builders should have served the purpose of creating housing supply for the needy at justifiable price, what we see is the mad rush by people to own multiple properties. And this builder-underwriter nexus serves this well by allowing cash component in property dealings.
  • Black money
A builder offloads its stock to underwriters and then an underwriter sells the stock to end-users or investors. Based on the artificial demand created, builder keeps on increasing the prices periodically (monthly or quarterly). The underwriter then sells the property at lower value than the current builder price. The premium charged by the underwriter is usually paid in cash by the investors. And this leads to a circle wherein an investor with unaccounted income invests in property and the cash amount received by the underwriter is again pushed back into buying of another housing stock.

Are there any solutions to this builder-underwriter problem?

Yes, there is a solution. Whenever a real estate developer sells, it should be made mandatory by law that the buyer information will be made public. By having the buyer information, not only will this lead to actual demand but may also put a curb on entering of black money into real estate sector. But, will the authorities pay any attention to this? We don’t know and this is where the Real estate regulatory bill has also failed. Read more on real estate regulatory bill in the next column.

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