Saturday, November 19, 2016

Home Loan Prepayment: The Whys and Hows

A few years ago, Misha took a large home loan, at a monthly EMI of almost Rs.37,000 and interest rate of 11.75%. She still has to pay close to Rs.26 lakhs of the principal amount with just a little over 10 years remaining. She is looking for options that can help her diminish the loan burden. As home loans are some of the biggest debts we take on during our financial lives, repaying them often becomes a substantial burden on middle-income earners with a fixed salary. However, there are four ways in which you can reduce your home-loan debt—or at least minimize its effects:

1. Transfer your home-loan to a low interest provider: If Misha transfers her home loan to a lender who levies 10.5% interest instead of 11.75%, her loan tenure comes down drastically. If she maintains the same monthly EMI, the reduced interest brings the tenure down to 113 months from 124. The longer you spend repaying your loan, the more interest you have to pay—therefore, Misha will save approx. Rs.4 lakhs in interest.

2. Increase your EMI and reduce the tenure: This can be availed only if your financial situation changes substantially. For example, you had been saving for your child’s education, but she has already left for college. Or your salary has been hiked by 30% or more. Suppose Misha pays Rs.42,000 a month instead of Rs.36,407 a month— her interest tenure comes down to 96 months from 124, as a result of which she pays Rs.476000 less in interest.

3. Make prepayments: Prepayments are payments made towards your loans in large chunks, and at irregular intervals. Here are the basic ways in which they differ from EMI payments:

  • EMIs are compulsory and regular. You pay them every months, and you pay a fixed amount. While this amount can be changed, there is not much flexibility. Prepayment, on the other hand, depends entirely on the loan taker
  • Prepayments are much larger than EMIs, for example the average home loan EMI can be anywhere between 10,000 and 50,000, while prepayments are numbered in lakhs.
  • The most crucial difference between EMI and prepayment is that a large portion of your EMI goes towards payment of interest, at least towards the beginning of the loan tenure. Prepayments, however, go directly towards your principal, thereby bringing down not only the loan tenure, but also the outstanding loan amount.
If Misha makes prepayment of Rs.2 lakhs for 5 years, alongside her regular EMI of Rs.36,407, her total interest will drop by a staggering Rs.8.5 lakhs and her loan tenure will be almost halved— from 124 months to 73 months. Obviously, out of the three options for reducing the home-loan burden, making prepayments is the most profitable one. But while going down the prepayment route, there are a few things you must note:
  1. You will have to pay interest when you are making a prepayment, i.e. the day you make the payment, your principal will decrease and from that point on you will be paying interest on the reduced principal. But suppose you make a prepayment on the 10 of the month— the interest on the original amount for those 10 days will have to be paid as well.
  2. Some loan providers insist on validating your proof of income before accepting prepayment, as these are usually big ticket payments. Therefore it is advisable you carry bank statements for the account from which you are making the payment, dating back to at least three months.
  3. The longer you take to repay a loan, the more your loan provider will earn. Therefore, accepting prepayment is often not in the best interest of the bank, so there might be measures like prepayment charges and limitations in payment mode. There may be a specific period after loan disbursement during which prepayment is not permitted. Also, the borrower may have to be present personally to make prepayment. Acquaint yourself with these rules and regulations before you take the leap.
  4. Once your principal loan amount decreases, your CIBIL score (which reflects your credit worthiness) will improve. Follow up on your credit score within a few months of making the prepayment, to ensure that the reduction in outstanding balance is reflected.
  5. Make sure to preserve the acknowledgement of payment. This document contains important details such as outstanding principal, home loan tenure, and change in EMI (if any).
The catch is, prepayment is possible only in case of a sudden financial windfall, such as yearly bonus or inheritance or gift. Then you would have the dilemma of whether to invest it and increase savings, or whether to prepay your loan and reduce your debt. Our advice is, if the rate of interest from investment is less that the interest you pay on your loan, it is better to make a prepayment. For example, investing in a provident fund would fetch Misha interest at 8.8 currently, while her loan interest rate is 11.75. Therefore, making a prepayment makes better financial sense.



This is a guest post by Team Paisabazaar

Tuesday, November 15, 2016

Step by Step Guide to Buying Property in Thailand

In our last post, we discussed why investing in Thailand real estate can prove to be beneficial for foreigners. With Thailand economy growing at steady pace and improvement in transport system in Bangkok area, the time is ripe for foreign investors to invest in Thailand real estate.

The country is strategically placed geographically and offers convenient trade with 3 largest economies of the Asian continent namely China, India, Japan. At the same time, Thailand is the gateway to the countries of the Association of Southeast Asian Nations (ASEAN). It also offers easy access into the Greater Mekong sub-region, where newly emerging economies such as Cambodia, Lao People's Democratic Republic (Lao PDR), Myanmar, Vietnam offer great business potential. By 2020, full-fledged logistical infrastructure along with superb physical infrastructure will be ready to accommodate businesses that want to enter the growing economies of East Asia, upper ASEAN (CLMV), and South Asia. In a nutshell, Thailand will act as a stepping stone for investors and businesses alike looking to invest in the region.



In this post, we will list down the step by step process to buy property in Thailand.

  • Step 1: What kind of property a foreigner can buy in Thailand?

First thing first, as a foreigner, what kind of property that you can invest in? As per the Thai laws, a foreigner can buy condominiums which are freehold and these condos can be 100% in foreigner’s name. If a real estate developer in Thailand develops condominium project, then, 49% of this residential development can be sold to foreign buyers. However, Land properties such as; villa/house, bungalow cannot be owned in foreign buyer’s name. For foreigners looking to invest in land properties, company setup is an option (51/49 share).
    • Freehold
As stated above, foreigners are allowed direct freehold ownership in Freehold condominiums. Foreigners can also invest by way of common property co-ownership with locals.
    • Cap on Foreign investment in residential development (condominiums)
If a developer develops a condominium project (residential development) with 100 condominium units, then, at any given time, foreigners can hold maximum of 49 condominium units in that project and 51 units need to be held by locals.
    • Leasehold
If a foreigner is looking for land properties, then, he/she can effectively use land with a leasehold tenure. He/she is permitted by law to own structures or buildings developed on that land. The maximum duration of such a lease is 30 years. The lease can be renewed upon expiration of 30 years lease term. However, if a foreigner has a registered company in Thailand, then, he/she may also buy land or a house built on land.

  • Step 2: A typical buying process for foreigners looking to buy property in Thailand

  1. To reserve a property, pay for reservation fee (generally 50000 THB).
  2. In 1-2 weeks time period, sign the standard purchase agreement with the developer.
  3. Once the purchase agreement is signed, the foreign buyer will need to make 30% of property value to the developer within 1 month.
  4. If you are investing in a completed property, then, pay 70% final payment in 4 months. If you are investing in an under construction property, then, no further payments are made till the construction is complete.
  5. Once the final 70% payment is made, the developer and foreign buyer will meet at the land department to legally register the condominium with the land department of Thailand.
  6. Within 1 month, foreign buyer will receive the title deed and census registration.
Below is a detailed chart for a foreigner who is looking to buy a condo in Thailand:



  • Step 3: Get the FET Form

An authorized financial institution (normally a Thai Bank) issues a FET form (Foreign Exchange Transaction). This FET form is an official statement by the authorized Thai bank of exchanging foreign currencies into Thai baht. Whenever a foreigner brings native currency to invest in Thai real estate, the authorized Thai bank exchanges that foreign currency to equivalent Thai baht and issues a FET form for the conversion of foreign currency into Thai baht.

The FET-form was earlier known as the Thor.Tor.3 (and pronounced as tor tor saam). The FET form is one among many other documents that are required when buying and registering foreign ownership of a condominium unit in Thailand as a non resident.

  • Step 4: Paying for taxes when a foreigner buys the condominium in Thailand

When buying a property in Thailand, Taxes can always be negotiated between the parties in order to determine who pays for payable tax and duty. Generally, the Buyer will be liable for the Transfer fee and the remaining types of taxes are borne by the Seller.

Transfer taxes - The land department levies 2% of the property value which is based on the value registered in the agreement.

Stamp duty - A total of 0.5% of the registered value will be taxed.

Withholding tax - 1% of the appraised property value will be levied (explained below).

The total withholding tax payable shall in any case not exceed 20% of the total price.

How much of these taxes will be paid by the seller and how much will be paid by the buyer? Well, it shall be negotiated before going to the land department and it shall be explicitly written into the sales contract.

  • Step 5: Paying for taxes when a foreigner is looking to sell the condominium in Thailand

Special Business Tax (SBT) is only payable if the property is sold within its first 5 years of ownership and is levied at the rate of 3.3% of the appraised value.

If one retains the property for more than 5 years, then, only stamp duty 0.5% + the 2% transfer fee are paid.

If the subjected property has been used as the principal place of residence of the seller, then, the seller is also exempted from SBT (Special Business Tax). However, the seller name must also appear on the household registration certificate for at least one year.


Monday, November 14, 2016

7 Reasons for Investment in Chennai Real Estate

The real-estate industry is growing at a rapid rate in our country. The contribution of this industry to the national economy is significant. It chips in about 5% share to our GDP. The expansion of the real-estate sector can be attributed to globalization and the setting up of many MNCs. Within this booming sector, Chennai presents a stable and lucrative market to invest in. Let’s take a look at the factors that add up to make this city a prime real-estate location:

1. Ranked among top 12 cities
In a report by Candy GPS (Global Prime Sector), Chennai is positioned among the top 12 cities in the world to invest in real estate. Factors like market transparency, rational prices, and steady growth make this city ideal for investments.

2. Consistent appreciation of property value
The real-estate market in Chennai witnessed a 150% capital appreciation from 2009 to 2012. There is an overall positive outlook for this trend to continue, with the market value expected to increase by up to 10% year on year. These numbers alone give a strong cue for investing in the sector in Chennai.

3. Better employment prospects and flourishing trend of renting homes
The mushrooming of MNCs in Chennai has resulted in better job opportunities, which have further led to significant migration to the city. This trend has increased housing needs, which has hiked the real-estate value in the city. While some of the migrants move to Chennai permanently, there are those who do not have such long-term plans. They would rather purchase a house in the new city, stay there for a certain period, and then move elsewhere. In such a scenario, they choose to rent out their house and earn an additional income every month. Apartments in Chennai are, thus, a great investment.

4. Better investment returns
Increasing value, absence of depreciation, and no phase of depression have made Chennai an ideal city for real-estate investments. More people are now booking their homes and investing in properties in the city, thus propelling Chennai to the top of the real-estate list. This rise in demand has brought about an expansion in the housing sector. Also, a chunk of these investors are NRIs who were born in Chennai.

5. Developed infrastructure and public transportation
Usually, investors are weary of investing in cities that lack public facilities, especially a well-established transportation system. Chennai boasts of an integrated public-transportation network, including local trains and buses, which makes it an attractive real-estate market.

6. Education and health-care facilities
Be it for good education or advanced health-care facilities in the country, Chennai is a name that easily crops up in one’s mind. India Today has rated the city the best place in India for education, what with the presence of leading educational establishments. The city also has renowned health-care establishments. Recognizing these factors, a lot of people from across the country and abroad visit, and at times move base to, Chennai, which enhances the lucrativeness of the real-estate market in the city.

7. Choices across budgets
Those days are behind us when only IT professionals, NRIs, and foreign nationals sought to invest in Chennai. Today, real-estate investors have many options across budgets. They could opt for a small, affordable home or a luxury apartment in Chennai.

This is a guest post by Dinesh Dawde

Sunday, November 6, 2016

Why investing in Thailand Property market can prove to be fruitful for Indians investing in overseas property market?

In October 2016, International Real Estate Expo was held in New Delhi – India. The purpose of the 3 day Expo was to showcase International Properties to Indian investors looking to buy property overseas. Real estate consultants and developers from Thailand, USA, UK, Cyprus, Dubai, Canada, Sri Lanka, and Australia participated in the 3 day event.

Indian nationals have been investing in properties abroad for plethora of reasons namely portfolio diversification, for studies of their children, holiday home to name a few. Singapore, Dubai, USA, UK have been the preferred locations. High Net worth Individuals, Strategic Property investors, Top level executives from India typically form the group of investors that are buying properties abroad.

On May 26, 2015, Reserve Bank of India (RBI) further liberalized Outward Remittance scheme for Indian Resident individuals. Under the scheme, an Individual can now remit US$ 250,000 per Financial Year (April-March) to overseas locations for the purposes of any permitted current or capital account transaction or a combination of both. Therefore many more properties are now under the reach of Indian investors.

According to a report published in October 2014 by US National Association of Realtors (NAR), buyers from India bought residential properties in USA worth 5.8 billion US$ during the one year period ending in March 2014. Similarly, in year 2015, data released by Dubai Land Department depicts that Indian investors carried out a total of 4089 property transactions estimated at 13 billion Dirhams. UK and Singapore also attract substantial real estate investments by Indian investors.

However, one location that hasn’t caught the fancy of Indian investors but can prove to be fruitful for Indian Property Investors is Thailand (Bangkok, Phuket, Pattaya, and other cities in Kingdom of Thailand). Non Resident Indians (NRI) as well as domestic Indian investors can consider including Thailand Properties in their portfolio. Following are the benefits that an Indian Buying Property in Thailand can look forward to:

1. Thailand: A tourists paradise

No foreign power has ever colonized Thailand. Throughout its history, Thailand has been preoccupied with two things: overcoming regional divisions to consolidate central Thailand's power and attracting foreign wealth without allowing it to undermine internal stability. On the surface, the country's politics fluctuate continuously as successive governments attempt to balance regional and foreign interests. Yet Thailand's economic and cultural core remains relatively stable.



Thailand is the member of ‘The Association of Southeast Asian Nations’ (ASEAN). It is an alliance promoting economic and political cooperation by fostering dialogue among its ten members.



Thailand dominated as the most popular regional travel destination last year, with three of its cities making the top ten in MasterCard's Asia Pacific Destinations Index 2015.

   

2. Bangkok Transport Infrastructure

MRT system – Metro
BTS system – Skytrain
BRT system – Rapid Bus





3. Thailand – India historical relations

Thailand and India share a deep historical bond.

The Thai alphabet is derived from the Old Khmer script (akson khom), which is a southern Brahmic style of writing derived from the south Indian Pallava alphabet.

Thai vocabulary includes many words from Pali, Sanskrit ……especially in praying



During the 5th to 13th centuries, Southeast Asian empires were influenced directly from India and followed Mahayana Buddhism. The Mahāyāna and Hindu Khmer Empire dominated much of the Southeast Asian peninsula.

Theravada Buddhism was made the state religion only with the establishment of the Sukhothai Kingdom in the 13th century.

Hinduism played a strong role in the early Thai institution of kingship, and exerted influence in the creation of laws and order for Thai society as well as Thai religion.

Hindu influences, particularly shrines to the god Brahma, continue to be seen in and around Buddhist institutions and ceremonies.

The Ramakien is Thailand's national epic, derived from the Hindu epic Ramayana.

Popular celebrations in Thailand – Diwali, Navratri ( nationwide including the corporate entities), Ganesh Chaturthi.



Phahurat or Pahurat known as Little India - A Sikh community settled there more than a century ago and established a textile trading center that is still thriving. The golden-domed Siri Guru Singh Sabha temple is a landmark of Phahurat. The neighborhood is also home to South Asian Hindus and Muslims.




The number of tourists from India to Thailand is on the rise. In 2016, Expected number of Indian tourists to Thailand are 1.8 million.





4. Thai Economy and its growth

As per the World Bank Data, in 2015, Thailand’ population was 67.96 million, GDP (Gross Domestic Product) was 395.3 billion US$, GDP Growth rate was 2.8%, and inflation was -0.9%.

Economically, Thailand has been one of the great success stories of the ASEAN region. Smart policies adopted by successive governments have enabled the country to become an upper middle income economy.

 

5. Thai real estate and its prospects


Find below the detailed analysis of Bangkok realty market including supply, demand parameters and rental yields.





6. Easy Process to buy property and Liquidation or exit

  • Reasonable investment entrance
  • Growing rental market
  • Growing tourist market
  • Iconic buildings – innovative designs
  • Thailand offers the highest rental return in South East Asia
  • Easy buying and selling process – one stop service
  • International banks present for transfer
Click here to read the Step by Step guide to investing in Thailand Property Market.


7. Portfolio diversification

As the saying goes - ‘Never put all your eggs into one basket’. One can diversify his/her investment portfolio by investing in various asset classes or if one has propensity to invest only in a particular asset class, then, geographical diversification certainly helps in risk mitigation. Investing in lucrative Thailand property market will certainly help in diversification of one’s investment portfolio.

8. Double Taxation Treaty

As the name suggests, levying of tax by 2 countries on the same income is known as double taxation. Since, you will be investing in and operating an income generating property in Thailand, therefore, you must make sure that taxes are not paid in 2 countries on the same income. To avoid double taxation on same income, Government of India has entered into a double taxation avoidance agreement (DTAA) with several countries and Thailand is one of them. Here is a list of countries with whom India has double taxation avoidance agreement (DTAA).

Tuesday, October 25, 2016

Finding out the best home for yourself

Ask the baby boomers in India, they would ‘tch-tch’ your decision of staying in a rented place. It’s always has been to buy your own place, and pay EMI instead of rent.

But this is no longer the truth for the Indian real estate market. Market studies have revealed that renting a house in Hyderabad, Ahmedabad and/or Kolkata is much cheaper and cost effective. Additionally, majority of demand for homes in India is from the middle class segment, whilst the developers are constructing the premium flats and apartments. To give you facts, currently, more than 69% of the unsold homes in Mumbai cost over Rs. 1 crore or more. This means unsold inventories and eventually crash of the real estate market in India. With buying safely out of option, here are few things that you can keep in mind when making the move to a new city and a new state:




  • Getting a job: Before feverishly searching the online portals for accommodation, it is very important to get a steady job. The city is new, therefore, commute would always be a problem. For example, most people in Bangalore, like staying near to their work places mainly for the convenience of traveling. Therefore, before looking for a flat for rent in Bangalore, figure out the areas nearby your job location and then move in. 

  • Looking for healthcare related services nearby: Most probably, you have moved in to a complete new state which has different weather from your home town. Additionally, you would be staying alone or in PG with strangers. The best thing to do is figure out nearby hospitals and clinics and while you are at it, the house should be located at comfortable walking distance from the supermarket, the bazar, ATMs, clinics, etc. 

  • Getting to know your own place: You have moved in a complete new city. Take some time to know the place. Don’t select the first flat that you see. The best way to understand whether the flat that you have chosen does not have any disturbing elements (like a noisy neighbor, bad neighborhood, etc.) is to visit the place at least twice (once in the broad daylight and another in the night) before taking the final call. 

  • Strong bond with the owners of the flat: Once you have understood and done all of the above criteria, be sure to maintain a good rapport with the landlord. Under no circumstances should there be trust issues. They should be sure of handing over their property to you, and you should be able to take care of the place like your own. Ensure to ask your landlord about any additional costs that might be incurred before moving.

  • Keep additional money: Lastly, keep some additional cash in hand. This is important as it is not only a new place, but you might need some last minute supplies.

Once you have followed this check list, you are ready to move in.

Finding homes can prove to be a taxing affair, especially if it’s the first time or to a city in which the majority of the population speaks a different language. Take the help of friends and colleagues who stay there and have some patience.


This is a guest post by Alvira Rehan

Monday, October 17, 2016

5 Factors You Must Consider before Buying Plots

Whether looking to buy plots for your dream house in popular cities such as Mumbai, Delhi, Chennai, or Hyderabad, or simply making an investment in one, it is important to consider the following factors before making any rushed purchase:

1. Checking, verifying licenses and certificates

Tiresome as it may sound; getting some specific licenses checked and verified by a consultant is of prime importance before buying a plot. These include:

  1. Title deed: This is a legal document that shows you have the right to the ownership of the plot. Before buying, confirm that the deed from the seller (or re-seller) has full right to the ownership of the property, and that it meets all necessary approvals from the authority.
  2. Encumbrance certificate: It is a proof that the property is free from all/any monetary and legal liabilities. It also shows that the property can be sold as free title and that there isn’t any problem associated with the ownership. Ensure that this certificate says the land is free from the earlier-mentioned dues or liabilities.
  3. Release certificate: This is important especially when dealing with resale lands. This certificate, which you get from the bank you have pledged a loan from, shows that the land you are about to buy is clear from all impending loans. It shows that any loans on the land in question have been repaid.
  4. Property tax receipts: Any bills from the owner that haven’t been paid for, for a land on resale are shown on these receipts. Ask for tax receipts from the owner to ensure there isn’t payment pending from the original owner.
  5. Approvals: Make sure that the land-use is permitted as per the city plan. You can get this from the local pubic-body office in your city. Additionally, ensure that the plot layout has been approved by the local body and the development corporation.

2. The wrong impression of renting the property

You may buy a particular land thinking you will cover the EMIs through renting the land. It may be a miscalculated or erroneous approach, as experts say rental benefit on residential properties is a meager 2-3%. Secondly, it may require a much longer duration than expected to rent out your property.

3. The right buying cost

When asking a broker about the plot, ensure that he or she tells you the final cost of the plot and not just the basic one, as such is the case many a time. They may keep you in the dark with respect to extra costs such as, but not limited to: Service tax, preferential location fees, development fees, etc.

4. Look out for available plans

You may be eligible for a guaranteed rental scheme that lets the developer pay you rent during construction of the plot, for a fixed period. Then there is another scheme that lets the developer pay you after the possession. In such cases (and schemes), the properties are generally located outside the city limits.

The fact of the matter is that you need to be aware of all the available schemes or plans before making the payment for your plot. While some may benefit you, some may also result in loss such as subvention schemes where the price is generally 10% higher of normal.

5. Constructing costs

When choosing to make your house, consider these for the construction costs:
  • Home designing plan of the architect
  • Contractor’s fee
  • Labor cost
  • Interior fittings such as tiles, bathroom fittings, etc.
  • Building material costs
It’s wise to pay more towards the initial cost for building your house than to spend extra money at the time of reparation or maintenance.

Whether you plan to buy plots in Hyderabad or an apartment in Mumbai, you must consider these factors to make a wise decision.

This is a guest post by Dinesh Dawde

Monday, October 10, 2016

Ultra Luxurious Houses That Are owned By Big Pocket Celebrities in India

India is rapidly as well as continually growing country with rising economy as well as Big Pocket celebrities who are not just investing in their business for generating more and more revenue but are fully dipped into a luxurious lifestyle. They are investing a huge amount of their earnings in luxury. Not  just them, with the changing lifestyle, many people are looking for luxurious properties in Mumbai. Here is the list of some big pocket guys owning dream mansions in one or the other urban cities of the country. This is how the house of your favorite celebrity or a popular Industrialist looks like:

  • House Name: Antilia



It is the most expensive home not just in India but in the world. The Owner of this ultra-luxurious dream house is none other than the filthy rich Mukesh Ambani. Antilia is spread over an area of 4 lacs Sq Ft. having 27 floors. The building contains amenities which only a few people can dream of. 6 floors in the building is just reserved for parking and 3 for the helipad. If a building has a separate 3 - helipad, then you can imagine the type of world-class amenities it stores.
Owner: Mukesh Ambani

City: Mumbai



  • House Name: Abode
Anil Ambani, following his brother’s footsteps hold 2nd position when it comes to the luxurious houses in India. Currently under construction, he has named his sweet home as Abode worth Rs 5000 Crore, subject to rise based on needs and amenities he wants to fix in his Abode.

Owner: Anil Ambani

City: Mumbai

  • House Name: Mannat
The second richest actor in the world and the King of Bollywood “ Mr Khan” owns one of the most expensive houses in India having an approximate worth of Rs 125 to 150 Crores. All his fans gather in Bandra, Mumbai, outside his residence with a hope to wave him “Hi !!”
Owner: Shahrukh Khan


City: Mumbai



  • House Name: Ratan Tata’s Bungalow

Ratan Tata is the name almost everyone is familiar with. A Very well known and reputed industrialist owns a home worth Rs 125 to 150 Cr comprising the area of 15000 Sq Ft. with 3 storey building and an infinity pool at the top for a view that is breathtaking, something which a common people like us can’t even dare to imagine in our house.

Owner: Ratan Tata


City: Mumbai


  • House Name: Naveen Jindal Mansion

Industrialist turned politician, Naveen Jindal is another filthy rich guy who owns an ultra- luxurious high-cost bungalow in Leafy Lutyens, Delhi. His property is also valued to be Rs 125 to 150 Cr.

Owner : Naveen Jindal

City :  Mumbai



Apart from this, there is a huge list of other filthy rich celebs in India who owns a house which feels like a resort. If even you are one of them and looking to own such kind of a house, QuikrHomes can help you in your search for the most magnificent and lavish house in Mumbai.


This is a guest post by Prakshi Agarwal.

Wednesday, September 21, 2016

Seventh Pay Commission and its impact on the real estate sector

The Union Cabinet’s implementation of much-awaited Seventh Pay Commission has given public sector employees and pensioners a big occasion to celebrate. The Central Government Employees will receive a hike of about 23.5% in their salaries. This increment in the earnings of the Government employees is bound to have a positive impact on the Indian real estate sector. The hike in the House Rent Allowance (HRA) is expected to increase the residential demand further.

Mentioned below are the highlights of the Seventh Pay Commission that will boost the real estate sector:

  1. Higher purchasing power - The starting salary slag of Government employees is pushed from INR 7000 to INR18000. The topmost salary slag will be INR 2.25 Lakh per month. As per experts, the hike in the salary will increase the purchasing power of the employees, thus tempting them to invest in residential properties.
  2. Increased loan eligibility - The rise in salaries will increase the loan eligibility as well as the repaying potential of the people. The high amount of loans will encourage people to invest more in properties.
  3. Growth in economic development - Employees of some Central Government departments have already started getting the revised salary as per the Seventh Pay Commission. It means that in these departments the six month arrear will also be distributed during the current financial year itself. Receiving a larger amount together will also encourage individuals to make an investment in the residential sector. The increased investment in real estate sector means growth in the economic development of the country. It is obvious that rapid economic growth always works wonders for real estate sector.
  4. Increment in gratuity- The earlier gratuity of INR 10 Lakh has been increased to INR 20 Lakh, and the HRA (Housing Rent Allowance) has been raised from a mere 7.5 Lakh to 25 Lakh. The increment in HRA is bound to bring more money in the real estate sector.
  5. Benefits to Pensioners - Pensioners being a major chunk of beneficiaries of the Seventh Pay Commission will now have more funds at their disposal to invest. They can invest in a dream home that is away from the hustle bustle of the city.
  6. Higher demand for affordable houses - The substantial hike in salaries of middle-class people might result in more demand for affordable residential properties. This is mainly because more middle-class people will have access to a significantly increased lump sum amount.

The sale of residential properties is expected to increase gradually by the end of this year. The implementation of the RERA bill will also encourage the buyers to invest in the realty sector. Also, the new launches in various areas will give the buyer more options to choose from.

A report by Neelkanth Mishra, Prateek Singh, and Ravi Shankar of Credit Suisse suggests that the implementation of the Seventh Pay Commission will have a huge impact on the properties in small towns as compared to the ones in the main cities. This is mainly because more than 80% of the Central Government employees are located in tier II and III cities.

As per the experts, now is the right time to invest in the real estate sector. The expected surge in the realty sector in the coming times might just bring you the wonderful stroke of luck you need. The development of properties in Devanhalli town in Bengaluru makes it a great option for investment.

The experts also believe that along with the housing sector, the transportation sector too will receive a boost. It is seen that people with more disposal incomes tend to spend more on things like food and transportation.



This is a guest post by Pooja Shet

Thursday, August 25, 2016

6 Tips to Give Your Home a Charming Vintage Look


Planning to redecorate your home and add some vintage charm to it? Well, it doesn’t necessarily need to be expensive, and you don’t have to visit antique stores to get your hands on vintage decor.

Start with things like old frames, metal baskets, old cartons, and suitcases. Paint the rooms right—choose pastel shades like vintage blue, along with shades of silver and gold for that perfect vintage look.

Here are some simple tips to help you give your rented apartment or house a rustic look:

Old-School Mirrors


Go to that storeroom with the half-forgotten trunks full of old hand-me-downs from your great-grandparents. Look for old mirrors, with gold or silver-toned trim on the frames.

You could even buy one of these ornamental mirrors from furniture shops. Once you have a mirror, place it in one of the walls of your living room for the perfect vintage look. This will also serve to make the space look larger and disperse light evenly around the room.

Dishes and Cupboards


You can find antique china dishes at thrift stores and flea markets. These are a great way to add that classic vintage touch to your home. Put on your creative hat and figure out unconventional ways of working them into your decor - hang them on walls or use them as soap dishes or candle holders.

Go for wooden or metallic cupboards that have an antique-looking finish instead of modern clean-cut ones. You can also reuse your old cupboards and paint them from scratch to achieve that   beautiful distressed look.


Ladders


Have an old wooden ladder? Give it a fresh coat of paint and place it in your bathroom or kitchen to be used as a towel or soap rack.





Collectible Curios


Old telephones have a unique charm that’s been lost in modern design. They will fit perfectly into your freshly vintage-themed home. Go to an antique store or shop around online for such these telephones and use them as decor elements.

You could also look for old radios, gramophones, typewriters, and all other little curios that embody the vintage spirit. An antique-looking clock can really tie a room together by acting as the centerpiece.



Speaking or curios—mason jars are versatile and cheap decor elements. You can use them as candle holders or use them to hold lights for a touch of class.

Old Books


The vintage look feels a bit lacking without appropriately old books. There’s something about a stack of old books placed on a coffee, kept company by a vintage lamp.

You can also invest in a bookshelf. Make sure to go for one that has plain rack design and is made of wood. A dull, somewhat distressed finish is preferable. Place hardbound books - old classics - to complete the setting. And of course, these classics make for great reading, so it’s a win-win.

Kitchenware


When every room in the house is getting a vintage makeover, the kitchen can’t be left behind. Make use of bronze, brass, or earthen pots and vessels for a quaint, and functional, look.

These home makeover tips will give you that dream vintage-themed home without putting too much of a strain on your finances.


This is a guest post by Chandni Lal

Tuesday, August 16, 2016

How GST Implementation Would Be Helpful for Real Estate?

Why is the Goods and Services Tax (GST) a welcome change for realty? Read on if this topic piques your curiosity as a property developer or seller.

The Goods and Services Tax (GST) is an effort toward simplifying the process of taxation by bringing different types of taxes under one umbrella. As simple as it seems, the implementation of GST entails far-reaching effects across sectors. Real estate is indubitably part of this spectrum.

Real estate has evolved by leaps and bounds over the last 15 years and will continue this upward trend in the years to come. Properties have always been looked upon as a lucrative investment option. GST promises to reduce the cost of ownership if its rate is lower than the summation of all the existing taxes.

Tax management is a challenge in the dynamic domain of realty, as any property purchase transaction is governed by a number of indirect taxes such as Value Added Tax (VAT), stamp duty, and service tax. With GST, all indirect taxes pertaining to property deals would be absorbed into one large cover.

We are aware that the effects of GST implementation are not restricted to buyers; developers play a significant part in the story, as they are the ones who initiate projects. Be it procurement of land or a redevelopment project, taxes rule the roost at every stage of property development. In the current scenario, taxes are levied at two levels: center and state. The state taxes the goods and materials, and the center taxes the services. Such a taxation process adds to the complexity of real estate deals, and it is the end customer who bears the brunt of dual taxation. GST implementation promises to put an end to the woes faced by property buyers, as a uniform rate would make it easy for the buyers to interpret the nitty-gritty of property dealings. Even though buyers may need to pay a slightly higher price, GST is sure to simplify the process of compliance to a great extent.


What is the probable impact of GST on developers?


During the procurement of land, developers are required to pay a host of taxes, such as Central Sales Tax, Excise Duty, and Customs Duty. Developers’ expenditure on construction materials comes to be 20 to 25% higher owing to indirect taxes. If all these taxes were to be subsumed, the cost of procurement and development would drop. This would translate into reduced costs for the buyer, which would eventually lead to a boost in sales. However, the actual impact on property prices would be based on the final GST rate.

Given that interdependence is an industry norm, real estate has close relations with other sectors such as finance, IT, steel, and construction. Therefore, if any one industry was to benefit from GST implementation, all the related sectors would simultaneously reflect the positive impact.

Transparency is a major advantage of GST implementation; a unified tax structure makes tax calculation a more comprehensible process for not only the industry bigwigs but also the end customer. Tax evasion would reduce significantly after GST enforcement, as a unified structure leaves no room for manipulations.


How would GST influence the economy?


Considering the booming trend in realty, the contribution of this sector to India’s gross domestic product (GDP) would be 5%. GST itself is estimated to account for 2% of the country’s GDP. 

Is there any section that would not witness the impact of GST?

Indirect taxes are not levied on possession-ready property, so resale dealings would not be affected significantly by GST implementation. 

In conclusion, GST implementation would prove to be a boon for developers and buyers alike, provided the standard rate is low. Buying high-end luxury apartments in OMR, Chennai would no more be a distant dream, which is a good enough reason to cheer. 

This is a guest post by Pooja

Tuesday, July 26, 2016

Bengaluru, the top performing city in the real estate market

If you are looking to acquire a new home in Bengaluru, then you are at right place at the right time. Post the drop in the overall real estate market; Bengaluru sturdily held its number one position in India in the first six months of 2016. This course is expected to go on for the rest half of the year with the new launches likely to rise by 4 percent in comparison to the last six months of 2015.

The Knight Frank's "Indian Real Estate Residential and office" for the period of January-June 2016 stated, Bengaluru's residential territory witnessed 13 percent boost in new launches and 18 percent boost in sales on a year by year (YoY) basis in comparison to the first half in 2015. Although, the major parts of the country's realty market were quiet in all segments, Bengaluru's prime locations such as Richomond Road, Lavelle Road, Malleshwaram, Bannerghatta, Hebbal, Whitefield, Electronic City, Marathahalli and Indiranagar witnessed a considerable rise of 23 percent in new launches in the first six months of the year 2016. It is advisable to invest in apartments in Bannerghatta road and apartments in Richomond Road. The investors’ interest in quality properties has seen a swell in the first half of 2016 in comparison to the first six months of 2015 that witnessed poor sales.

“However, due to the slackening of the premium housing markets in the past year, the weighted average price growth YOY in the premium segment saw a marginal decline of 1 percent in first half of 2016, as compared to first half of 2015,” the report said.

When it comes to pricing, the prime residential segment in Bengaluru has seen a gradual hike in its average price in the past one year in comparison to the price hike in the overall city that stood at 3 percent. The prime housing saw a decline of 1 percent.

The realty sector experts foresee the overall weighted average price in Bengaluru to have a slow growth of 3 percent in the last six months of the year 2016 in comparison to the second half of 2015, accounting to the quantity of reserve that requires to be offloaded.

Despite the slump in the realty sector, the residential real estate sector in other cities are going to see a ray of hope due to the recent development of policies such as REIT, land acquisition, real estate regulator, and smart cities. All these measures play a vital role in encouraging the key players to invest in new projects.

The real estate market is ripe especially for NRI investors due to the depreciating value of the Indian rupee in the past few years. Other favorable factors include the stable political reign of Prime Minister Narendra Modi, the easy availability of loans, and the growing economy.

Also, as the urban population of the nation rises, there is going to be more and more demand of residential as well as commercial properties that will give a great boost to the overall realty sector.

This is a guest post by Deepak Yewle

Wednesday, July 20, 2016

16 Super Uber Tips on Finding the Perfect Flatmate

It’s probably one of the most serious problems dogging the 21st century working professionals in the country. In fact, it’s pretty much like finding a new boyfriend/girlfriend, only a little more complicated.

Why is that? Well, because you can part your ways with your partner when things go awry, but it’s not as simple with a flatmate. Since you will have signed a lease agreement, you will need to stick with them till the contract runs out.



In this article we give you with some of the best tips in order for you to come out victorious in your quest for finding the best flatmate.
  • 1.    Go Beyond Your Friends List
Just because you enjoy hanging out with a friend or an acquaintance, doesn’t mean they can actually be a good flatmate. For all you known, they might have the world’s worst in-room habits that could drive you over the edge. So, go beyond the first impression and actually find out what a person is like.
  • 2.    Look Online
Finding a flatmate on the internet has become extremely simple. You will just need to post in one of the many Facebook groups and can find one within a few hours.
  • 3.    Interview Them
No, we don’t expect you to go full John McClane on them, you will just need to ask them what they are looking for and what they are comfortable with.
  • 4.    Find Someone Like-minded
Find someone that has a same a similar perspective of the world as you. Are they metalheads? Do they love Megadeth and Motorhead? Or are they more into pop music? Knowing these things is absolutely essential if you want to live in harmony.
  • 5.    Are They Ready to Contribute?
In the ready/not-so-ready to mingle world, you will need to know if your flatmate is ready to do the household chores same as you. This is extremely important because chores are often the first things that could lead to a rift in your relationship.
  • 6.    Understand What It’s Like to Have a Flatmate
No matter how platonic a relationship, getting a flatmate is still a major responsibility that needs to be taken seriously.
  • 7.    Do Good unto Others
Find and find out if they are ready to help you out in case of emergencies.
  • 8.    Have The Right Apartment
The kind of apartment you have chosen also plays a role in the type of flatmate you will find. To find the perfect place, check some of the property management firms like Zenify, who curate some of the best rental property in Bangalore.
  • 9.    “What Do You Expect from Me?”
Having a flatmate is a two-way street. If you want them to be a certain way, you will need to be the same too. So, ask them what they expect out of a flatmate.
  • 10.    Someone in The Same Profession
While this isn’t customary, it can do you a world of good because at the end of a busy, tiring day, you will need someone you can talk to, who can actually understand what your problems are.
  • 11.    Meetup
Once you have found a potential roommate, fix a meet and talk to them over a cup of coffee or a drink just to get a feel of what they are like.
  • 12.    Talk Money
One of the most important aspects required to lease flats is money. So, bring the money topic up with them and discuss whether they are comfortable with the money they are paying.
  • 13.    Assess Their Lifestyle
Imagine a runway model living with a desi sanskaari person—it’s not always the best combination. This is why you need to assess their lifestyle and find out if it is in line with yours.
  • 14.    Communicate
Communication is important aspect in a flatmate relationship. Figure out how open they are in voicing out their concerns.
  • 15.    Find References
Sometimes a friend of a friend of a friend will know someone that’s looking for a flatmate. Try and find a good reference, one that actually trust.
  • 16.    Get It in Writing
You might have talked about a million things, but unless you get them written in a lease agreement none of them ever really matter.

All in all, getting a flatmate is quite like every other relationship you have had in your life. At the end of the contract, you might even walk out with a life-long friend by your side. So, be very mindful before you choose one.


This is a guest post by Chandni Lal

Monday, July 4, 2016

Decoding Hinjawadi – The Locality that's Revolutionized Western Pune

Pune is such a laid-back city, it's easy to it call home. Located on the Deccan Plateau and 560 meters above sea level, it enjoys impeccable weather all through the year. However, it's not just the temperature that makes Pune cool, but also the people and its blend of traditional values and modernity. The infusion of these two elements brews a vivid cosmopolitan attitude that defines this city.

In 2001, India's first six lane high-speed Expressway was built, connecting Pune with its larger & more famous cousin, Mumbai. One could say it was the beginning of a revolution, one that influenced the transformation of Pune from an education city to a bustling IT hub.

The western side of Pune is exceptionally beautiful and surrounded by hills and lush greenery. Owing to its proximity to the Expressway, this area enjoys better connectivity that catalyzed an explosion of urbanization. The western suburbs began to garner the attention of builders that were eager to cater to the needs of professionals working at the busy IT parks in Aundh, Hinjawadi and Nagar Road.

Despite the rapid urbanization that Pune has witnessed in the last decade, the area of Hinjawadi still retains its tranquility and solitude. Thanks to the Special Township Policy Act of the Maharashtra Government, the suburb has a modern infrastructure with a deluge of luxury gated communities. These integrated townships encourage residents to work closer to where they live, with more convenience and a better way of life. The gated townships of Hinjawadi ensure that the suburb still retains its calm demeanor and open spaces, while adding impressive buildings and towers to the skyline.

In the coming years, Hinjawadi is set to become even more popular. The area will soon be incorporated with a proposed metro line that will ease travel through the city to a great extent. The area is also favored to experience steady price appreciation, which makes it an enticing investment opportunity for home buyers.

Life Republic, a popular township located in the neighborhood, is easily one of Pune's most vibrant townships. It presents a life of glamour and convenience set amidst a 400 acre sprawling community. The modern township has one objective, which of being a delectable and vibrant address in Hinjawadi. Featuring the best of amenities, the project is a haven for lively spacious homes with a contemporary attitude and aesthetic.

The layout of Life Republic begins with a wide boulevard that traverses through the mega-township. The project is also packed with premium lifestyle and entertainment options like fine dining restaurants, a multiplex, high-street stores, a mall, clubs, wedding and party venues, community centers and academies, lake-front recreation and much more.

Apartment towers are surrounded with ample green cover, and the project features artistic installations with an abundance of green open spaces. Life Republic also encompasses organic farming, an agro institute and fresh vegetable market. The plenitude of green cover here creates a pollution-free and pleasant environment.

At Life Republic, you experience a lifestyle that's unique to your preference but tailored to create an urban habitat where everyone’s needs are answered.

Townships like Life Republic are bringing a new premium lifestyle to Hinjawadi. It's this transformation that is shaping the future of real estate in Pune and in India.

This is a guest post by Gaurav Mishra

Saturday, June 25, 2016

Commercial office market shines in real estate sector

Although the residential market continues to dip, stable lease rentals, high absorption levels, worldwide investor’s interest and insufficient supply have paved the way for commercial real estate market.

Unlike the disintegrated residential sector, a few distinguished developers, with the support of investors, are building quality office spaces in the central cities.

The chief operating officer of JLL India said, “While demand for good quality office space remains high, absorption will be lower this year because there isn’t adequate supply in the market. Also, demand is high but relevant supply, which depends on location and other advantages, is restricted. We expect the sector to continue to do well.”

As per the property advisory CBRE, Bengaluru is riding high on the demand and the supply of office space and the vacancy level of its office buildings is the lowest. In Pune region, the scarcity of good supply has led to many people showing interest in Grade B buildings as well. One of the worst hit areas was the National Capital Region, grabbing only 37% of the 5 million sq. ft of office space or leasing.

Post the economic dip in 2008, many builders ceased to invest in capital-intensive projects and started showing interest in the residential market. The next few years saw many large apartment projects, resulting in a glut. The market, therefore, experienced a slowdown in the year 2012-2013.

The leading developers in building office projects are RMZ Corp, Embassy Group, Panchshil Realty and DLF Ltd. Most of these names have the support of global investors. Over 80% of the commercial office spaces are occupied by information technology (IT) and IT-enabled services (ITES) clients, the left ones are for the e-commerce firms and banking and financial services.

Panchshil Realty, backed by Blackstone group has added 5 million sq.ft of a new area in Pune for three projects. The Panchshil Reality Chairman Atul Chordia said, “We lease around 1.5 million sq. ft. office space every year, so we just have to keep building because the demand is high.”

DLF doesn’t have any residential launch this year, but the largest developer of India as per the market value plans to cover two-three million sq.ft office area in its lease/rental portfolio. The real estate giant seeks to repeat its success in developing a nearly 30 million sq. ft commercial portfolio over the past decade.

DLF has begun to work on a 2 million sq. ft office project in Gurgaon this year and is also going to cover 1 million sq.ft of the IT Park in Chennai. Chennai is seeing an investment from DLF in the commercial market, and increased investment in apartments in Chennai OMR by the House of Hiranandani.

K. Raheja Corp group based in Mumbai is also planning to spend about INR 2000 crore in purchasing land and building 6 million sq. ft of office space in the area of Navi Mumbai.

Vinod Rohira, the MD, and chief executive of commercial real estate and REIT, K Raheja Corp said,“ Growth and consolidation, particularly in the IT and ITES sectors, are driving the demand for big commercial office spaces. Demand for commercial real estate is growing at 20-22% on a year-on-year basis,”

The year 2016 is likely to observe two massive private equity investments in the commercial sector. While DLF is in the course of selling a 40% stake in its lease assets arm to get about $2 Billion, another $1 Billion investment is being invested by Brookfield Asset Management Inc. to purchase the office and reality assets of Hiranandani Developers in suburban Mumbai.

Like the developers switched focus to the residential market post the financial crisis of 2008, the commercial office projects are gaining popularity now. Some developers are rearranging their portfolios to build more office spaces.

Bijay Agarwal, MD of Salarpuria Sattva Group said, “While entry barriers are low in residential and there are too many developers, office development is not easy and as a result, we have a few serious developers building good projects,”

This is a guest post by Deepak Yewle

Tuesday, June 7, 2016

The 5 Craziest Haunted House Stories of All Time in India

Bam! A thunderstorm roars with scary intensity, seemingly taking the electricity with it.

Backup generators stop functioning and the temperature in the room seems to drop by 10 degrees, making it unnaturally cold. You know you are all alone in your apartment. But you get the sneaky feeling that you aren’t.




Sounds like the clichéd (and poorly written) horror movie plot, right?

Wrong!

These are some of the stories from people that have lived in or around some of the haunted houses in India.

But where are these houses, you ask? Here are the tales of some of the craziest haunted house stories the internet has heard of so far.

  • The Vrindavan Society - Thane
Constructed by Raheja Developers, The Vrindavan Society is a luxury apartment complex with over 100+ apartments in the Thane region of Maharashtra. To this day, all the houses here are occupied (thanks to those irresistible ‘flats for rent’ placards). However, people here live in constant fear and are even worried to step out of their homes after dark.

Curious to know why? It was reported that a man living in this complex committed suicide. Ever since that fateful day, residents and night watchmen claim to have witnessed some paranormal activity almost every day of the week.

In fact, one of the night guards has a strange incident to narrate: during one of his late-shifts, while he was nodding off in his chair, a tight slap jolted him back from his sleep, almost toppling him off his chair. He summoned a few of his colleagues to check if an intruder had entered the premises.

However, after searches proved futile, residents concluded that this was the handiwork of the unnamed man that died within these quarters.

  • House No. W-3, Greater Kailash, Delhi
As the legend goes, two elderly couples used to live in this rental property. Unexpected events saw them being murdered in cold blood by unknown assailants. But even after their death, the couples’ spirits have supposedly lived on in this place.

Passersby and other locals have complained that they’ve often heard muffled laughter, strange voices, and soft whispers coming out of the house; this has left the witnesses baffled and very, very scared.

  • D’Souza Chawl, Mahim, Mumbai
Among the many haunted places in Mumbai, D’Souza Chawl takes the cake, and has even been reported several times in the media. According to local lore, the spirit of a deceased lady roams the corridors of D’Souza Chawl at odd hours of the night.

Supposedly, the lady fell in the only fresh-water well in the vicinity and succumbed to death and hasn’t found the peace she was looking for.

  • Grand Paradi Towers, Mumbai
Located in one of the poshest areas in Mumbai, this complex has sadly played witness to over twenty suicides over the last decade. These unnerving stories begun with the suicide of a couple, followed by the jumping of their children and grandfather a year after that.

Ever since then, there have also been reports of maids and children falling to their deaths on multiple occasions. Just what the reasons behind this are, we don’t know.

  • GP Block, Meerut
A lot of haunted places are abandoned, and GP Block in Meerut is no exception. This place has been so unnerving that people have supposedly even stopped passing by the building. According to reports, several of the locals have witnessed the sightings of ghosts: 4 drinking men illuminated by the presence of a single candle.

Initially, the story was discarded but upon further prodding by some youngsters, it has become apparent that the 4 men were in fact spirits and not a group of friends. There have also been tales of a woman in a red sari who accompanies these men and walks around in the dark.

So, next time when you are looking to lease flats be sure to do a recon and verify that the building doesn’t have an eerie, dark paranormal story behind it. Better yet, pick one of the convenient property management services, or log on to zenify.com to find the house of your choice.


  • References:
http://www.holidify.com/blog/most-haunted-places-in-india-asi-list/
  • Image References:
https://pixabay.com/static/uploads/photo/2013/10/24/01/45/haunted-house-corner-200065_960_720.jpg



This is a guest post by Chandni.

Tuesday, May 31, 2016

Unitech Project Delays in Gurgaon

Project delays in Gurgaon. Many buyers are left in lurch. Home buyers had invested their hard earned money in some of the Unitech Projects; however, project delays have taken its toll on these buyers. Many are paying EMIs as well as monthly rents. What is the solution?


Tuesday, May 24, 2016

Revival of the residential real estate market this year

From the past few years, India’s residential real estate market has experienced a slowdown. Thanks to the macroeconomic indicator and measures taken by the Indian government to bring transparency, this sector is all set to rebound.

It is believed that apartments in Whitefield (Bengaluru), apartments in OMR (Chennai), and apartments in Kondwa (Pune) are great for investment, at the moment.

Ashwinder Raj Singh, the CEO, residential services, JLL India, said,“India’s residential property market has been going through turbulent times for past few years. However, things are looking up now with changes in the economy and various initiatives announced by the government.”

Factors like low demand, high inventory levels, and limited fund flow has dwindled sales in the sector, affecting the new establishments.

As per a recent report by JLL, the novel residential venture launches witnessed a reduction by 6 percent in the first quarter of 2016 over the last quarter of 2015.

Overall sales of residential properties declined in the financial year 2015-16 compared to 2014-15. As per recent reports, 1,58,211 units were sold in the financial year 2015-16 as opposed to 1,61,875 units sold in the financial year 2014-15, which is a decline of 2.2 percent.

A ray of optimism was seen in the otherwise hopeless situation with the rise of sales in the first quarter of 2016.

Specialists believe that the implementation of the Real Estate Act will give a positive drive to the feeble sector by reviving the spirits of the buyers through manifold initiatives.
One of the best initiatives taken is that the aggrieved party has the right to claim the amount at the prescribed rate along with the interest if the possession is not given.

Shveta Jain, the managing director, residential services, Cushman & Wakefield said, “The Real Estate Regulation and Development Act 2016 will encourage investments from foreign and domestic financial institutions and protecting the interest of the home buyers. Mandatory disclosure of projects, including details of the promoter, project, land status, clearances, approvals, etc. would increase the credibility of developers and would protect consumer rights as well.”

Ashwinder Raj Singh of JLL states 5 points for the road ahead for the realty sector:

  • The expectation of good monsoon, recovery in the economy, decreased inflation, and the fact that the rates of residential properties are on a hike again has brought a shift in the trend. Also, the combination of an improved regulatory environment of the realty sector and progressive Government schemes like AMRUT, Housing for all by 2022 and Smart Cities are starting to create a positive influence. Moreover, factoring in banks’ passing on of interest rate cut advantages to the end user; the residential department is on the path of regrowth. 

  • At the end of the financial year 2015-16, the rates were stagnant or at a modest rise. While Lucknow witnessed a hike of 16.1% in the prices in third quarter 2015, NCR witnessed a price ascent of 5% during the second quarter of 2015. Moving forward, rates are expected to rise moderately.

  • The establishment of the Real Estate Regulatory Authority to ensure timely delivery of the real estate projects and bring more transparency in the dealings with builders has build trust in the market, motivating the buyers to invest again. A credible start has been indicated by the affordable housing segment, with this division seeing heightened traction on the outskirts of the leading cities. Of the entire sales, more than half the properties were marked below Rs. 5000/sq ft in the financial year 2015-16.

  • International factors have an effect, but India’s present low-interest rates and low inflation rates along with moving economy will encourage development in the residential realty sector in the mid-to-long term.

  • The encouragement that the latest Union Budget is providing to both, the demand as well as supply side has improved the funding for the real estate industry. It has also helped in clearing problems on REITs. More impressive signs of recovery should be evident during the last quarter of the year 2016 or by the first quarter of 2017.

This is a guest post by Deepak Yewle

Tuesday, May 10, 2016

Stamp Duty Refund Process

So things haven’t been as perfect as you would have expected with your registration procedure and to make things worse you have already paid stamp duty to the state. Since you are right now on this page, I will make a wild guess and deduce that you wish to have your stamp duty refunded. Good for you, however, there’s a slight problem, the first thing you need to realize is that your money has already been received by the state government and the second thing is that to get it back from them wouldn’t be any less of a mean feat. So how can you go about it?


The whole of the stamp duty refund procedure could be described into two general steps:

  1. Step 1: Filing a stamp duty refund application.
  2. Step 2: Dedicated follow up.

  • Step 1. Stamp duty refund application (Maharashtra)

To file a stamp duty refund application you have to complete an online procedure and an offline procedure.

Online procedure: To complete the online procedure you could go to state government’s Department of Registration and Stamps website. Complete the form and download or print a copy of completed form.

Offline procedure: To complete the offline procedure for stamp duty refund you will need to download various forms from IGR Maharashtra’s official website like;
  • Application form
  • Jabab
  • Checklist
  • Receipt for the Value of stamps (Two Copies)
  • Affidavit
  • Pratidnyapatra

Besides the aforementioned list you will further need some other documents, they are as following:
  • Photocopy of I.D. (Preferably Pan Card)
  • Original Gras Challan/Simple receipt Challan or ESBTR certificate
  • A draft of the Agreement which you couldn’t register or Cancelled Agreement
  • A cancelled cheque of the account where you wish to receive the refunded stamp duty and registration fee amount

Attach all the downloaded forms and rest of the documents together. Create two more photocopies of all the completed forms and attached documents. One photocopy will be attached with the file you are about to submit, the other photocopy will be served as your acknowledgement.

  • Step 2: Dedicated follow up.

Filing of the stamp duty application is just the beginning and you will need to maintain consistent and dedicated follow-up of the concerned government office. Make sure that no additional requirements are asked of you by the concerned office. Usually there is a deduction of Rs. 1000/- (max) only out of your stamp duty and registration fees and the rest is refunded to you. Sometimes the application is rejected.

Those of you who intend to file stamp duty refund application personally, you could check if you are eligible for refund from here: Are you eligible for stamp duty refund?

I hope that you have been informed about the basics properly and sincerely wish that you do get your Stamp duty & Registration fees amount back.

Was this article useful to you? If you have any queries regarding stamp duty refund procedure, please feel free to contact Sarvesh R by posting comments here.

Monday, May 2, 2016

5 Top Affordable Rental Locations in Bangalore for Working Professionals

Bangalore has a number of IT and business parks where thousands of working professionals earn their livelihoods. But with the traffic situation in the city escalating to new heights every passing day, it doesn’t make neither financial nor logical sense to move to areas that aren’t close to your workplace.

However, there’s one more concern you need to address- the cost of living. Not every rental property close to these IT hubs come cheap, courtesy of the rising price of rental houses in Bangalore.

 (Picture Source – Pixabay)

Besides, not everybody can afford to buy a luxury apartment or live in a villa in this expensive city. So here are the top 5 affordable locations in Bangalore, you and every other working professional should know about.
  • Whitefield
If you’re particularly in the IT industry, living anywhere in the Whitefield vicinity is the best decision you can make. For starters, you can find houses for rent at as little a budget as Rs. 7000 per month, which come semi-furnished with modular kitchen, geysers and the like. Another important aspect about Whitefield is that it’s a little far away from the fast-paced life of the city and sees relatively less traffic. Basically moving to Whitefield can save you a lot of money and time, which you’d otherwise spend on commute.
  • Marathahalli
With plenty of tech parks and other employment hubs in its vicinity, Marathahalli is yet another locality that sees a vast majority of working professionals looking for an abode. You will get houses or flats for rental as little as Rs. 6000 per month, depending on the choice of area. Places like Prestige Tech Park, Ecospace, and Divyasree Technopolis are just a few of the well-known IT hubs in and around the area.
  • KR Puram
With easy connection to ITPL and Marathahalli, KR Puram is slowly becoming the most sought-after locality in Bangalore. Besides, this area isn’t too far away from the city either. Located along the fringe of National Highway 44 (Bangalore to Hyderabad), this locality also offers you some respite if you’re looking to go for a long drive on a lazy weekend. Rents around here start from Rs. 6,000 per month for a 1 BHK and can go up to Rs. 20,000 per month based on your choices.
  • Horamavu
Located along the Outer Ring Road stretch that connects Marathahalli and the Old Madras Road region to Bengaluru International Airport and Tumkur Road among others, Horamavu happens to be the least chaotic locality to live in. Close to Manyata Tech Park, which is at a distance of about 5 km from here, Horamavu offers a great place to relax and enjoy. Rent around the area start from Rs. 7000 per month for 1 BHK and can go as high as Rs. 30,000 per month depending on a house of your choice. It is close to several leisure places like Kammanahalli, an area that happens to be the most attractive proposition around here.
  • Kaggadasapura
If you’d looked around Kaggadasapura over a decade ago, you’d either have seen acres of empty barren lands or under-construction apartment projects. But now this area is a major hub for working professionals. It is strategically located close to Bagmane Tech Park, which happens to be one of the most beautiful workplaces in the city with its own lake. It is also close to key parts of the city like Indiranagar and Domlur. You can find houses for rent around here starting from Rs. 6500 per month. In case you’re looking to lease flatsor apartments instead of renting, you can also find several interesting options to choose from.

Overall, these 5 prime localities are teeming with budget-friendly houses that you can choose from to improve your experience of staying in Bangalore.

This is a blog post by Chandni Lal

Thursday, April 28, 2016

DLF Launches Mall of India in Noida

DLF officially launches Mall of India in Noida, Part of Delhi NCR region on 27 April 2016. The shopping mall is located in upscale Sector 18 market of Noida. The mall comes up with a retail area of 2 million square feet. The Mall has 18 anchor stores.

The shopping mall will be easily accessible from South Delhi, Lutyen’s Delhi, Greater Noida, Ghaziabad, and Faridabad. The mall offers 7 levels of excitement with enough parking space offering 3 levels of basement parking. The mall is expected to generate footfall of 3 million shoppers per month.

There are 330+ brands and 82+ kiosks brands. 40% area is dedicated to Food and Beverages segment with about 1000 seating capacity in the food court. There is also 7 start DT cinema experience for visitors with a capacity of 2000 viewers.



Find below the complete details of DLF Mall of India: