Can register properties without structural safety certificate: Govt.

ROPERTY can now be registered without procuring a structural safety certificate, which the government had made mandatory this month, officials said on Monday.

Lieutenant Governor Te jendra Khanna has approved the government’s proposal to withdraw the order and the decision will be notified this week, restoring the earlier arrangement, a source said.

The government made structural safety certificate mandatory to ensure safety of constructions, but the Municipal Corporation of Delhi (MCD) claimed it did not have the infrastructure to issue certificates so quickly.

MCD Standing Committee chairman Yogender Chandolia had said they did not have engineers to give structural safety certificates. The Committee had also passed a resolution in this regard.

While revoking the order, the Lieutenant Governor, however, asked all civic agencies to upload on their websites a list of buildings under their jurisdiction that violate construction laws, a source said.

"The Lieutenant Governor had received a letter from the Chief Secretary citing con straints in implementing the structural safety requirement. The proposal was approved but with clear instructions to pursue defaulters," the source said.

Structural safety came into limelight after a building at Lalita Park, East Delhi, which was constructed illegally, collapsed last November, killing 59 people.

Pressured to act, the government decided to make it mandatory for all property deals to have structural safety certificates.

Though the MCD initially empanelled a few structure engineers, it later said in a city where 500 to 600 property deeds are registered everyday, it is not possible to ensure effective service with the existing staff.

When you buy property under construction

When 30-year-old Gurgaon-based Vikas Aggarwal decided to buy a house last year, he opted for one that was being constructed. "I had leased a house for a year, so I thought it would be a good idea to go for a flat that is inching towards completion. The developer was offering a 15% discount on the market rate and promised to hand it over in January this year," says Aggarwal, a chartered accountant who works with an MNC. But it has been three months past the deadline and Aggarwal is yet to get possession. "Every time we go to the builder, he makes some excuse for the delay. Instead of shifting to our own house and saving on rent, we had to renew the lease," says Aggarwal's wife, Archana.

North Eye will have three parts; an East Wing and West Wing on the ground and a Central Tower. The East and West Wings will occupy the first and second floors, built to provide facilities like cafeterias, lobbies and other facilities like creche, playschool and a primary school. Central Tower consists of a waiting lounge, lobbies, cafeteria and high-end shopping area. The tower comprises fully furnished studio apartments of 520 sq ft area on level 3-19 and 21-39; level 41-58 comprises 3BHK apartments of 2,510 sq ft, 4BHK apartments of 3,350 sq ft area and 3BHK duplex condominiums of 1,675 sq ft. All the apartments will be spacious, well ventilated and artistically designed with all modern facilities and amenities.

Aggarwal's case isn't unique. These days, project delays have virtually become a norm, which is why the buyer needs to be careful. "When you buy property during a soft launch or before launch, check the location, the future prospects of the project and whether the developer is capable of delivering on time," says Pankaj Kapoor, managing director, Liases Foras, a Mumbai-based realty research firm. "If the market crashes suddenly, or the developer runs out of money, or the bank stops funding, the project could be in a limbo," he adds.

Usually, a small developer does not have the necessary funds when he announces a project. To ensure liquidity, he tries to sell it to investors or buyers during pre-launch. If he does not get the minimum number, he may decide to postpone the project.

"Buyers should also research and verify a developer's reputation," says Sanjay Dutt, CEO, business, Jones Lang LaSalle India, a property consultancy firm. Besides, since 1 April last year, a service tax of 3.5% is being levied on property that is being built. So, a property is considered 'under construction' till the builder receives a completion certificate from the relevant authorities. Though the builder is supposed to pay this tax, it is ultimately passed on to the buyer. If a buyer purchases such a property, he has to bear the additional burden of this tax.

Fortunately, there are certain safeguards that can help restrict your losses. To ensure that the builder is faithfully following what he has promised you, ask for a copy of the project's drawings duly stamped by the municipal authorities. The developer is allowed to make some changes in the original plan. "Certain necessary alterations are usually permitted and also mentioned in the agreement. Once the construction begins, there may be grey areas in the blueprint that come to light later," explains Dutt. Sometimes, this may involve new regulations regarding parking space or other aspects beyond the developer's control.

There are also some advantages in booking a house while it is being constructed. "Depending on the stage of construction, as well as the response that the project has already elicited from other buyers and investors, the developer could offer you a 15-30% discount," says Dutt. Niranjan Hiranandani, chairman and managing director, Hiranandani Group, says that nearly 85% of the flats in his projects are booked before the construction is complete.

REAL ESTATE ON NH-24, NH-58

A quiet and dusty town a few years ago, Ghaziabad has now turned out to be a chic place to live in. Two places in Ghaziabad that have witnessed maximum real estate attention are the areas in and around NH-24 and NH-58. Places that used to be deserted in 2003, with a hint of development taking place, are now buzzing with real estate activity and are now commanding a premium.

Since 2003, localities like Indirapuram, Vasundhara, Kaushambi, Vaishali, NH-24 and NH-58 came into prominence and have became the addresses that people are literally fighting for.

As an option to the capital city, NH-24 and NH-58 are flourishing owing to their proximity to the capital, excellent connectivity and infrastructure development. The Delhi Metro project is also an added feather to connectivity, whereas Anand Vihar rail junction has already enhanced rail mobility. With a strong commercial catchment, a well-planned infrastructure network and an affordable price band, both regions offer several drivers to draw a homebuyers? attention.

Close to the new zones of Ghaziabad, namely Indirapuram, Vaishali and Vasundhara, a multilayered flyover at Ghazipur Chowk is being constructed with the aim of improving connectivity to NH-58.

In addition, various projects are under way at Raj Nagar Extension. A link road connecting NH-58 to the residential zone at Raj Nagar Extension is also under construction. The place with maximum number of entry and exit points with Delhi, Ghaziabad boasts of people from all classes that are adding to city?s fast growing real estate market. These places have become one of the choicest options for people working in Noida and Greater Noida, as they are close to some of the new sectors where many offices are situated.

Rakesh Yadav, the MD of Antriksh Group, says: ?These are places that have seen maximum attention and boast of huge projects. Crossings Republik, Antriksh Sanskriti, Wave City and Golf Links are the major hubs getting a good response from buyers. Golf Links is a golf-centric development and a high-income project.? R K Arora, the CMD of Supertech Group, says: ?For NH-24, the real estate revolution started with Crossings Republik and is set to continue with the development of huge townships like Wave City.?

Manu Garg, the director of Landcraft Developers, says: ?We are maintaining that people get quality life that they aspire for in Golf City. Our endeavor is to see that our delivery meets the promises made to our valued customer. I personally see NH-24 as the place of future, where people will throng because of the livability factor. People have started living here and others will find it easy to move in because they do not have to wait for years to assure themselves about the security of the place.?

Wave City, a 4,500 acres township, will be among the largest integrated-city developments happening in the NCR region. In the first phase, the company will develop 1,671 acres of land consisting of around 7,500 plots, which will house plotted development, row-housing, built up floors, and bungalows. In addition to this, the first phase will have around 1.7 crore sq ft of group-housing schemes consisting of built up flats starting from 900 sq ft to 3,000 sq ft.

R K Jain, the executive director of Wave City, says: ?We will offer all the infrastructure facilities and lifestyle amenities that a person aspires to see in his neighborhood, including mechanized cleaning and sweeping, closed-loop city mass rapid transport system, approximately 2 acres of park for a population of every 400, a lake spanning 3 acres and a major road network depending upon the built-up area and population concentration throughout Wave City.? Ashwani Prakash, the executive director of Paramount Developers, says: ?As prices in this stretch are still affordable, people are keen to buy here rather than at places that have higher prices. Response to this project is heartening and people are vying to get hold of a piece of land here. One more development near NH-24 is the Noida Extension, which is abuzz because of the availability of houses for people with lesser affordability.?

This place is now topping the popularity chart because it has caught the pulse of buyers; Raj Nagar Extension has lived up to the expectations of buyers who were thwarted by the high price index in other parts of the NCR. Situated on new Meerut bypass and a virgin piece of land only a few years ago, it has now a well-laid wide road that passes through it and construction activity can be seen in full swing. Also, people have started living here. Its proximity to the bypass enables people to travel to Delhi without crossing the crowded Ghaziabad.

Vijay Jindal, the CMD of SVP Group, says: ?The way this area has progressed shows that certain innovations like association of developers and a joint-action works well for the development of an area. The success of Raj Nagar Extension Developers? Association has proven the fact that it started with 12 members and now has 22 members.?

MAKE THE MOST OF A SMALL HOME

Small spaces can be family-friendly spaces and they can be great for entertaining. A small home also means lesser maintenance and cleaning time. Be proud of the small place you call home and plan the use of your spaces to have a lifetime of living pleasure.

Make the most of your outdoor space. It could be the balcony or a small garden patch in front of your house. Go out and enjoy it while you can. Houses that have rooms that open up onto patios allow indoor/outdoor living. Meals can be taken outdoors and children get away from the TV, videogames, and gadgets and breathe fresh air and get exercise. There is no better place for summertime dinners than on the patio. Even if you are only allotted a small balcony where you live, add a nice wicker chair with a cushion and some flowers and you have a great spot to read a book or just watch the passing traffic. Hang up a cosy swing chair and plug in your earphones to soothing music.

Most dining rooms are not used since most folks prefer TV dinners. If you already have a dining room, make it into a room that gets used often. Add some french doors to close it off and turn it into an office or a children?s play room. If you don?t have a dining room, use your eat-in kitchen or the patio.

Make your main living spaces open to one another. Living rooms, kitchens, and eating spaces that flow together get the most use. Have an open kitchen so you could keep an eye on the kids while you are rustling up dinner. Connecting the spaces you have will make a small home feel larger.

Built-in furniture, like desks, and storage, dressers and cabinets, tuck needed space into areas that are otherwise hard to furnish. If your house has a sloping roof, the space under this roofline becomes dead space as no one can fit in to sit or stand. But with added built-in dressers or cabinets, the space has function and helps free up other areas where a dresser might otherwise go. A properly organized closet can completely eliminate the need for a wardrobe in the bedroom.

Buy a kitchen or dining table that is expandable. They not only allow for more space, they are friendly for other uses like a family game night.

EYE IN THE SKY

Now another Burj Khalifa (world's tallest building in Dubai) can be seen in Noida. But it will not be too tall, standing at 60 floors only. This will be the NCR's tallest tower, located in Noida's Sector 74. If all goes well, in another 42 months, Noida will be a tourist attraction inviting people from all over to wonder at this spectacle.

R K Arora, the CMD of Supertech Group, says that North Eye will be the tallest residential development in North India and a one of its kind project, which will be 255 metres tall with 60 floors, spread over 9 acres.

North Eye will have three parts; an East Wing and West Wing on the ground and a Central Tower. The East and West Wings will occupy the first and second floors, built to provide facilities like cafeterias, lobbies and other facilities like creche, playschool and a primary school. Central Tower consists of a waiting lounge, lobbies, cafeteria and high-end shopping area. The tower comprises fully furnished studio apartments of 520 sq ft area on level 3-19 and 21-39; level 41-58 comprises 3BHK apartments of 2,510 sq ft, 4BHK apartments of 3,350 sq ft area and 3BHK duplex condominiums of 1,675 sq ft. All the apartments will be spacious, well ventilated and artistically designed with all modern facilities and amenities.

Arora says: "These apartments range from Rs 40 lakh to Rs 2.25 crore. The company is investing Rs 500 crore on the project. Level 20 and 40 have a club house each, luxuriously decorated multi-cuisine restaurants, international-standard pubs, gymnasiums, pool tables, cigar rooms, indoor lounges for reading and relaxation and outdoor terrace for enjoying fresh air; there will also be dance and yoga rooms, sauna and spa rooms for complete rejuvenation. Level 59 is designed to get a 360-degree view at the North Eye observatory, which is equipped with a high end telescope, with a coffee and reading lounge.

Infinity Pool is at Level 60, which will be an altogether out-of-the-world experience, where water and the sky will seem to merge into one and also an open-air restaurant for the finest dining experience and a uniquely designed helipad for the frequent urban flyers.

Also, Assotech Ltd has launched Celeste Towers in Sector 44, Noida. Sanjiv Srivastava, the MD of Assotech Limited, says: "It is being developed as a tall luxurious tower in the NCR. This 35-Level high rise will be spread over an area of 14,331 square metres. Assotech Ltd has all relevant clearances from the government authorities concerned. International consultants have been roped in to provide landscaping, interiors and lighting consultancy for the project. S K Das Associated Architects are the principal architects for the project."

Celeste Tower project consists of two 121-plus meters tall towers - Celeste Europa and Celeste Corona. Each level of Celeste Europa will have only one condominium of 4,750 square feet and there will be only thirty condominiums in all. Celeste Corona will have three apartments to a floor with each being 1,790 sq ft (Vega), 2,172 sq ft (Vesta) and 2,120 sq ft (Venezia). Celeste Corona offers state-of-the-art facilities like a health club, a swimming pool and a gymnasium at top two levels of the tower. A helipad at the 35th level will add to the USP of Corona.

Rama Raman, the CEO of Noida authority, says: "We have permitted four such projects in Noida's prime localities. North Eye is one of them. The building's plan has been cleared by the Airports Authority of India and the fire department."

CREATIVE ACCESSORIES

Make your home inviting with colourful cushions
Easy to manoeuvre, cushions can be a great way to bring instant freshness to your home decor. Be it in the living room or the bedrooms, you can creatively throw around colourful and decorative cushions to enhance the decor element in your house.

Opt for bolder colours and prints as cushion covers to strike a difference. Colours like yellow, pink, green or different prints like a black and white combination, floral or abstract prints will impart a unique appeal to your decor. Choose according to the colour of your room. If there is too much colour in the room, you can tone it down with some neutral shades and go bright if the colour scheme is muted.

? Metallic shades and shimmer are not restricted to festive use alone. There are innumerable varieties of metallic hues that can dress up your cushions and add a glint of diversity. If you have a black and white colour scheme, cushions in gold or silver or even copper can work well. Choosing and mix matching odd shades can be done to bring home some fun.

For the kids' rooms, cushions in different shapes and sizes and covers in colourful unique prints can be brought in. Get that favorite cartoon character imprinted upon the cushion cover and see the smile on your child's face go wide! To do something different, hand paint the cushion covers yourself. Or do some different embroidery or just simply block-print them. Another wonderful idea is to create a patchwork cushion that looks not only exotic but would also reflect personal style. You could also get your family picture embossed on to the cushion cover to make it really special.

Designers too are increasingly getting experimental with cushion designs. Check out for designer collection if you are looking for something really unique for your cushions. Leather, chenille, silk, velvet, suede are the richer tones that can be meshed together with different prints to create an interesting design. Cushion covers with zari borders; mirror-work or tribal motifs will impart an artistic touch to your room.

The key lies in arranging the cushions in a way that exudes both comfort and style. If there are more kids in the house, make sure the cushion cover fabric remains more plain than decorative as cushions tend to change hands very often. In the bedrooms, a bunch of cushions can be arranged over the bed to make the look inviting and cozy. Get those floor cushions in the living room to create some stylish informal seating spaces!

Cushions are a great way to bring in more colour into the house especially the ones you wouldn't think on a larger canvas. For example, colours like bright purple, fluorescent green, loud pink and an array of haphazard prints and designs could squeeze in through the way of cushions should you require to quickly infuse a little element of style. The best part about cushions is that they are easy to use, come in varied colours and shapes and can be styled creatively to blend in with the comfort you require. If you don't want to spend too much and yet bring in a visible change, just experiment with your cushions and turn it around.

SUMMER TIME: TAKE EXTRA CARE OF PLANTS

Like humans, your home plants too need some kind of tender care and pampering to withstand the summer heat, says VIVEK SHUKLA
In this sweltering summer when the days and nights are seemingly on fire, spare a thought for plants at your home, which give you such positive vibes and a cool ambience.

As the days of the summer heat are upon us, your home plants need some special care or they may succumb to the heat wave. Even in flats where there is so little space, it is a joy to see or sit close to nice potted plants with flowers. "Right from Patna days to here in Noida, I spend at least 30-40 minutes in my garden taking care of the plants. It is out of the world experience," says R K Sinha, author-turned expert on security matters.

?The ideal temperature for survival of plants is about 28 degrees celsius and they can barely survive temperatures up to 40 degrees celsius; any further increase in temperature becomes oppressive for them. And when the temperatures hovers over 45 degrees celsius, it is virtually a death knell to them. As the capital city and the entire region come under a severe and scorching heatwave, it is really a tough call for plants to survive unless one adopts special methods and care.

Kamal Saini of Masjid nursery at Pandara Road says: "Right from March to end-June, plants deserve special care and protection. This is a very crucial time for them. These four months prove really tough for them to stand up in the face of a heat wave. Understandably, they fall if they are not protected well as well as watered on time."

A landscape designer of SVP group says partial light for plants in summer is a must; it can be shadenets to cover them partially. They are to be protected under shade-nets so that the sunlight does not seep in. "The extreme heat conditions sap the energy of your saplings placed in open courtyards and balconies. Though plants need gentle sunlight to aid in the manufacture of food through photosynthesis, excessive heat will damage their leaves."

J K Jain, an architect, says that during summer months, despite all efforts leaves of small plants start yellowing. "If you notice yellowing in any plant of your home, then it is clear-cut indication that the plant has become a victim of a heat wave. It is advisable that plants should be covered with shade-net in the daytime. Apart from that, loosening of the soil every week is a must. Any non-serious attitude can ruin your plants," Jain says.

Plants with their roots in the ground fare better during summer than plants in containers. Thorny plants and those with rough leaf surface are more resistant to sun and can tolerate heat and drought conditions.

Nuzhat Alim, an amateur landscape expert and director of ALM International, points out that one must avoid chemical fertilizers in plants as they will generate great amount of heat. Heavy pruning should be avoided too as fresh growth of foliage is more prone to sunburn.

Summers months are ideal for growing lush green lawns. Most kinds of the lawns do very well in sunlight, provided they have abundant water supply to go with. Experts say that when it comes to houseplant care, watering is usually the trickiest. The amount of water will depend on how fast a plant absorbs the moisture. Obviously, a house plant that is in active growth requires more water than a dormant one. A good rule of thumb for house-plant care is that they will require more water during April to June.

Alim says that another task of house-plant care is feeding (organic fertilizers) the plant. Plants that have rooted well and are growing freely need the most feeding. This extra nourishment is needed, especially during summer months. As we are facing the heat, we can do great service to our plants if we can make some efforts to protect our plants. It goes without saying that if we take care of them, especially in these inhospitable conditions, they would also give us a lot of joy in return.

MARCH TO END-JUNE IS A VERY CRUCIAL TIME FOR PLANTS. THESE FOUR MONTHS PROVE REALLY TOUGH FOR THEM TO WITHSTAND THE HEAT WAVE. SO, PLANTS DESERVE SPECIAL CARE AND PROTECTION EXTREME HEAT CONDITIONS SAP THE ENERGY OF YOUR SAPLINGS PLACED IN OPEN COURTYARDS AND BALCONIES. THOUGH PLANTS NEED GENTLE SUNLIGHT TO AID IN THE MANUFACTURE OF FOOD THROUGH PHOTOSYNTHESIS, EXCESSIVE HEAT WILL DAMAGE THEIR LEAVES

SUMMER TIME: TAKE EXTRA CARE OF PLANTS

Like humans, your home plants too need some kind of tender care and pampering to withstand the summer heat, says VIVEK SHUKLA
In this sweltering summer when the days and nights are seemingly on fire, spare a thought for plants at your home, which give you such positive vibes and a cool ambience.

As the days of the summer heat are upon us, your home plants need some special care or they may succumb to the heat wave. Even in flats where there is so little space, it is a joy to see or sit close to nice potted plants with flowers. "Right from Patna days to here in Noida, I spend at least 30-40 minutes in my garden taking care of the plants. It is out of the world experience," says R K Sinha, author-turned expert on security matters.

?The ideal temperature for survival of plants is about 28 degrees celsius and they can barely survive temperatures up to 40 degrees celsius; any further increase in temperature becomes oppressive for them. And when the temperatures hovers over 45 degrees celsius, it is virtually a death knell to them. As the capital city and the entire region come under a severe and scorching heatwave, it is really a tough call for plants to survive unless one adopts special methods and care.

Kamal Saini of Masjid nursery at Pandara Road says: "Right from March to end-June, plants deserve special care and protection. This is a very crucial time for them. These four months prove really tough for them to stand up in the face of a heat wave. Understandably, they fall if they are not protected well as well as watered on time."

A landscape designer of SVP group says partial light for plants in summer is a must; it can be shadenets to cover them partially. They are to be protected under shade-nets so that the sunlight does not seep in. "The extreme heat conditions sap the energy of your saplings placed in open courtyards and balconies. Though plants need gentle sunlight to aid in the manufacture of food through photosynthesis, excessive heat will damage their leaves."

J K Jain, an architect, says that during summer months, despite all efforts leaves of small plants start yellowing. "If you notice yellowing in any plant of your home, then it is clear-cut indication that the plant has become a victim of a heat wave. It is advisable that plants should be covered with shade-net in the daytime. Apart from that, loosening of the soil every week is a must. Any non-serious attitude can ruin your plants," Jain says.

Plants with their roots in the ground fare better during summer than plants in containers. Thorny plants and those with rough leaf surface are more resistant to sun and can tolerate heat and drought conditions.

Nuzhat Alim, an amateur landscape expert and director of ALM International, points out that one must avoid chemical fertilizers in plants as they will generate great amount of heat. Heavy pruning should be avoided too as fresh growth of foliage is more prone to sunburn.

Summers months are ideal for growing lush green lawns. Most kinds of the lawns do very well in sunlight, provided they have abundant water supply to go with. Experts say that when it comes to houseplant care, watering is usually the trickiest. The amount of water will depend on how fast a plant absorbs the moisture. Obviously, a house plant that is in active growth requires more water than a dormant one. A good rule of thumb for house-plant care is that they will require more water during April to June.

Alim says that another task of house-plant care is feeding (organic fertilizers) the plant. Plants that have rooted well and are growing freely need the most feeding. This extra nourishment is needed, especially during summer months. As we are facing the heat, we can do great service to our plants if we can make some efforts to protect our plants. It goes without saying that if we take care of them, especially in these inhospitable conditions, they would also give us a lot of joy in return.

MARCH TO END-JUNE IS A VERY CRUCIAL TIME FOR PLANTS. THESE FOUR MONTHS PROVE REALLY TOUGH FOR THEM TO WITHSTAND THE HEAT WAVE. SO, PLANTS DESERVE SPECIAL CARE AND PROTECTION EXTREME HEAT CONDITIONS SAP THE ENERGY OF YOUR SAPLINGS PLACED IN OPEN COURTYARDS AND BALCONIES. THOUGH PLANTS NEED GENTLE SUNLIGHT TO AID IN THE MANUFACTURE OF FOOD THROUGH PHOTOSYNTHESIS, EXCESSIVE HEAT WILL DAMAGE THEIR LEAVES

EXIT OPTIONS WHEN YOUR PROPERTY IS OCCUPIED

Owners of old properties have limited choices to unlock the value of their buildings.
Picture this: You own a property worth crores of rupees in a prime locality. But, you must be satisfied with the valuation only on paper. In real terms, all you get is a paltry amount ? a few hundreds or even less in some cases ? from your tenants as monthly rent.

Reason: The tenants are protected by the Bombay Rent and Lodging House Control Act, 1947, or as applicable, more commonly known as the ?pagdi? system. The Act is a state-wise subject and hence, varies across the board. It was an attempt to eliminate the exploitation of tenants by landlords by fixing the standard rents payable in the seventies. However, they have not been revised since and tenants continue to pay the low rents.

• ? Sell off the property to the tenant: But, this will be at a discounted rate


• ? Redevelopment:Either accept monetary compensation for sale of the land title to the developer or an apartment in the new property


• ? Buyout: The property can be bought by the tenant. This is the most expensive option as it will not be at the market value


• ? Wait for the building to collapse: This will not help. As even in that case, the tenant will not lose protection

?The main aim (of the Act) was the protection of tenants against unfair eviction,? says Dhiraj Jain, partner (real estate), SNG & Partners. Tenants can be evicted only in case the landlord wants to use the property for residential purposes or the tenant has breached any contractual terms. Also, a delay in the payment of rent will not count.

However, this crippled the landlords. ?The legal owner of the property may be the landlord but the ?tenancy rights? bestow an informal ownership upon the tenant,? adds Jain.

Many complain the laws are archaic and unfair to the owners. As a result, their options for unlocking the value of the property and capitalising on the boom in real estate prices are limited.

Though not the most beneficial, this is the simplest way out and quite rare, too. As the tenants have the law on their side, they may not be willing to pay a high amount for ownership. Besides, once their status changes from that of a tenant to an owner, they are liable to pay property taxes at the current levels and not the low rates offered historically.

That said, they may be willing to buy out as legal ownership can benefit them, too. For instance, they can mortgage the property and raise funds against it, which would not have been be possible as tenants.

The selling price, though dependent on the location, will be at a discounted rate, as the tenant can easily flex his muscle in such cases, says Rajesh Mehta, proprietor, Raha Realtors.

Usually, when buildings become old, members consider redevelopment or outright sale. In the former, they tie-up with a developer who demolishes the existing structure and builds a new one.

The members are rehoused in the same premises and get additional space (in excess of their existing flat area) or a monetary compensation for the same. In the second case, the builder buys out each of the flats at market price.

Both these options are available for properties under the Rent Control Act as well. Except, in the regular situation there are only two parties, the developer and the members. However, in this case, the transaction is three-way, involving the developer, tenants and the landlord.

?Builders are wary of such projects,? says Sunil Rohokale, ED, Ask Investment Managers. Reasons range from internal clashes between tenants and landlords, to delays in decision-making. ?Probably the reason why those who venture into this area prefer to buy out both the parties,? feels Rohokale. In case of an outright sale, the builder has to acquire the land title from the landlord and the flats from the tenants.

However, the project is usually more commercially viable when the tenants are rehoused within the same premises, feels Rajesh Jain, chairman, Neumec Group. Builders get extra floor space index (FSI) as an incentive only if they rehouse the tenants in the same area and convert them into owners. ?There are no clear norms about the additional area given to the tenants or the landlord. This depends on the negotiations,? adds Jain.

The landlord can either accept monetary compensation in lieu of the land title or an apartment in the new construction.

What if the building collapses? This does not mean that the tenant loses his protection under the law. ?In such situations, he can easily say he was willing to pay the rent but the collapse is beyond his control. He will, therefore, be included in any redevelopment or sale and the resultant profits,? says Anil Harish, partner, D M Harish & Co Advocates.

Anyway, such cases are extremely rare. In fact, as Rohokale says, ?Here the tenants are quite forthcoming for negotiations. And matters can be resolved much faster.?

Invest in property that suits you

ET Realty helps you choose a property to suit your needs
Investing in property is a dream everyone nurtures from the day they start getting an income. When this dream gradually starts translating into a reality, and the time finally comes to start looking for property, the questions that arise are many. Apartment or plot, renting out the property or staying in your own home - these are some of the questions that many investors have in mind. To get a fair idea of what you are looking at, and the type of property you are seeking, you need to ask the right questions.

Will you be able to repay your home loan while you stay in the new home, or would you rather rent out the premises and let the rent help you pay for your EMIs. If you are looking at buying an apartment, or a plot, you will have to consider how you will manage your finances and sustain your present lifestyle.

NEIGHBOURHOOD

The quality of the neighbourhood in which you buy will influence both the types of tenants you attract (if you are looking at renting out) and the kind of returns on investment you will be getting. For example, if you buy in a neighbourhood near a college, the chances are that your pool of potential tenants will be mainly made up of students and that you will face vacancies on a fairly regular basis. Locations with growing employment opportunities tend to attract more people - meaning more tenants. Check the potential neighbourhood for current or projected parks, malls, movie theatres, public transport hubs like the Metro and all the other perks that attract buyers.

FUTURE DEVELOPMENT

Get all the information about new development that is coming or has been zoned into the area. If there are many new business parks or malls going up in your area, it is probably a good growth area. However, watch out for new developments that could hurt the price of surrounding properties - road widening.

RENTING OUT

When buying an apartment, look for amenities within the apartment complex, location and quality of construction work. Potential tenants will want the apartment to be furnished with wardrobes, utilities in the kitchen and bathroom furnishings, so make sure that the apartment has these fit in. Also keep the necessary lease documents to be signed by the tenant and you in order so that the formalities can be done immediately.

Ahmedabad's property scenario is quite bright and is flourishing in leaps and bounds. Almost all the factors are favouring the growth and expansion of realty development here. One can say that Ahmedabad's property picture is booming. Because of the strong political backup, the benefits the developers are getting are quite effective. Ahmedabad as a city is slowly taking steps towards betterment in terms of quality development, modern facilities and designing. In the post earthquake period the mindset of people has changed. People don't tend to buy highrise apartments and so Ahmedabad lacks highrise buildings like Mumbai, Delhi and Bangalore. It is extremely important that this frame of mind be changed, because now the quality of the buildings and raw materials has improved immensely.

Although the government is favouring the real estate growth in the city, the increase in the cost of raw materials and increase in service tax leads to expensive property rates. And also the royalty amount which now the developer has to pay to the government should be minimized to make cost effective infrastructure. Courtesy - Times property – Dt: - 16-04-2011

Land loan to buy residential site

ET Realty explains how you can get a loan to buy a site and build a house on it
Most banks offer loans to people who wish to buy a piece of plot to construct their dream home. Available to salaried and self-employed people and also to NRIs, land loans enable you to purchase a residential plot of land.

WHAT TYPE OF LAND CAN BE PURCHASED?

A person who wants to buy an agricultural land cannot avail a land loan. A land loan is exclusively meant to purchase plots for residential purposes. Some banks require the land to be within municipal limits. Further, some banks add restrictive clauses that require the purchaser to begin construction on the land within six months to a year.
IS IT SUITABLE TO YOU?

There are a few factors that influence an individual's decision to construct his house himself. The price situation is one. Investing in a plot and building a house yourself can at times be less expensive. Also, you can pace the construction to suit your finances and economic constraints. Building an independent home enables the owner to implement his creative ideas in design and colour schemes. Further, you have the flexibility to postpone major expenses, improvements and expansion to a later date.

HOW DIFFERENT IS IT FROM HOME LOAN?

The rate of interest charged on a land loan is on a par with the rate charged on a home loan. Unlike home loans, you cannot claim income tax deductions on interest paid on land purchase loans. When you take a loan for construction on the site, you become eligible for tax break. Here you can claim tax benefits on both loan for land purchase and loan for house construction. Tax deductions will be applicable only in the year in which the construction is completed after submission of completion certificate from authorities concerned.

DOWN PAYMENT

People who seek a loan to buy a plot have to pay a larger down payment. The loan-to-value (LTV) ratio is often as high as 70%. Usually, a person seeking a home loan has to make arrangements for only 20% of the cost of property.

DOCUMENTS NEEDED

It is prudent to hire the services of a lawyer to verify legal documents associated with the plot of land. Verify the layout drawing of the site as approved by the town planning authority, and no encumbrance certificate of the land. Other property documents include original documents pertaining to ownership of land, revenue receipts, land records and tax receipts.

SOME DOCUMENTS YOU NEED WHILE APPLYING FOR A LAND LOAN:

Original site ownership documents, tax receipts for taxes paid by the owner, layout drawing, revenue receipts, no objection certificate from society for sale and transfer of land, and no encumbrance certificate for the land.
Courtesy: ET Realty -22/4/2011

Buy or rent in Delhi NCR?

Does buying a house make sense in some Delhi NCR areas where rents are higher than capital values?
If you are confused between buying a property or renting one, take a look at your finances first and then check out the area where rents have increased more than the capital values. As per the Buy Vs Rent index (MBRI) designed by Makaan.com, rents in areas such as Ghaziabad and Greater Noida have risen higher than capital values. Meanwhile, in west Delhi and north Delhi, Dwarka and Gurgaon, capital values have grown faster than rental values.

Buying options in Delhi

NCR's sub-cities -Noida, Gurgaon and Faridabad -are recommended for buying as against renting. Typically, if the MBRI for a city/ subcity is between 1-20, it is much less expensive to buy a home than to rent it.

Property seekers looking at investing in these areas are advised to buy property rather than rent there.

Neutral areas in Delhi

The sub-cities of Ghaziabad and Greater Noida have emerged as neutral areas.
These sub-cities have an MBRI of 21-25, which denotes that it is relatively more expensive to buy a home than to stay on rent. This is a neutral range and property seekers looking at investing here are advised to take the final decision based on their financial situation.

Rental destinations in Delhi

According to the report, houses in sub-cities of east Delhi, north Delhi, south Delhi, west Delhi and Dwarka are recommended for renting over buying. These sub-cities have an MBRI value of over 25, indicating that it is way more expensive to buy a house here than to stay on rent. Property seekers investing here are advised to stay on rent rather than buying property.

Shifts over the past quarter

If one compares the current report with the previous report (released for the period October-December 2010), one can see that MBRI for sub-cities of Ghaziabad and Greater Noida has dropped by four MBRI points. This indicates a rise in rentals over capital values, making these sub-cities relatively less attractive for rentals.

On the other hand, the subcity of west Delhi has seen a rise by three MBRI points and north Delhi, Dwarka and Gurgaon have seen MBRI go up by two points. This indicates that capital values in these sub-cities have risen more than rentals, making it relatively more attractive to stay on rent.
The report was released for seven Indian cities. The MBRI for Ahmedabad (19), Bangalore (18) and Chennai (17) shows an overall preference for buying versus renting. MBRI for Pune (24) and Hyderabad (25) suggests neutral territory and MBRI for Delhi NCR (28) and Mumbai (26) shows an overall preference for renting over buying.
Courtesy - Times property – Dt: - 16-04-2011

IN an effort to change perceptions and build trust, 6,000 real estate developers across the country, who are members of the the Confederation of Real Estate Developers? Association (Credai), will sign on a self imposed code of conduct that embraces best practices in the business, the core team of Credai said at a press meet in Delhi.

By signing this code of conduct, developers will commit to the sale agreement they sign with buyers, specify the carpet area of dwelling and also provide detailed break-up of the room sizes, specify when they will deliver the project, spell out the penalty for the developer for delays as well as for the customer if he defaults on payments.

?We want each developer to sign on the code of conduct within six months,? said Credai national president Lalit Kumar Jain and asked consumers to buy a flat from a builder who is not a Credai member. This has already become a norm in cities in the South and the West. Jain urged consumers to take up their grievances with a builder at Credai?s consumer redressal levels at the local or state level before going to courts.

Credai wants to set up consumer redressal cells in every state to address consumer disputes. Such cells have already come up in Karnataka, Tamil Nadu, Maharashtra, Andhra Pradesh and Kerala. Credai is also working on model agreement that could be adopted by its members, though this would be different across different micro-markets.

Courtsey ? Business Standard ? Dt:- 14-04-2011

Sanction Plan, Safety Certificate Needed Now

New Delhi: Registration of property transactions has witnessed a steep decline in the capital after the state government made it mandatory to produce a building sanction plan and structural safety certificate as a prerequisite to any form of registry. In nearly all districts, the sub registrar offices have seen the number of registrations come down sharply. Some offices are witnessing registration of just 7 to 8 each day against the previous average of 100.

The Delhi government?s revenue department on March 30 issued an order banning registration of transactions of all structures not supported by sanctioned building plans or where sanctioned plans show major structural deviations. The government particularly looked at the cases where structural deviations were non-compoundable in nature. ?Now the vendor and vendee are also required to furnish a certificate of structural safety issued by the competent authority,? stated the order.

The decision was taken after a review showed unchecked growth of unsafe and unauthorized construction. The Lieutenant Governor of Delhi, Tejendra Khanna, in a review meeting held in January, emphasized the need for a special task force to crack down on land sharks and unauthorized construction. The issue of introducing stringent measures to focus on structural safety was also discussed. The March 30 order of the state came as a follow-up action to the meeting.

Since the order came into the force, the offices of the sub registrar?s, which witnessed frenzied activity earlier, have seen little business as most applicants still come without the requisite documents. In southwest district, nearly 80 to 90 property transactions were registered every day before the new norms were implemented. In comparison, only seven registrations took place at the officer on Monday. The number was 10 on Tuesday. In east Delhi too the situation is same. While earlier over 100 registrations took place, the number has now come down to 10 now

According to sources, the problem lies in the fact that most properties that have sanction plans lack structural safety certificates as this was never asked for earlier. But now faced with this directive they are caught in a dilemma.

Ramesh Kant, a resident of Paschim Vihar, explains it. ?My father built the house we live in. It is over 30 years old. Now we want to sell the house. But a visit to the registrar?s office has put us in a dilemma as they want a structural safety certificate. We have all other documents, including a sanction plan. Now who would give us a structural safety certificate for a 30 year old construction? I want to sell it to a builder who would be demolishing it to rebuild on the land and I feel spending money on reinforcing the house to get a structural safety certificate may not be of much use,? said Kant. Others like him feel the intent is good but its execution didn?t take into account the ground reality and the practical problems.

The revenue department has written to the MCD, asking it to empanel more architects and engineers. Senior officials in the department said they had expected the registrations to come down after the directive. But with Delhi falling in seismic zone IV, the government can?t ignore the structural safety anymore, said an official.

Courtsey ? Times of India ? 06-04-2011

New Delhi: From now on, documents will be accepted for the purpose of registry at the office of the sub registrar only if an applicant or purchaser presents himself to the staff. The new directive of the revenue department is part of measures taken to crack down on touts acting as middlemen at the sub registrar offices in nine districts of the capital.

To ensure that the applicant is not harassed, a five-day period has been fixed for delivery of documents from the time of acceptance of the same by the staff. The order states that failure to comply with the directions will invite disciplinary action. The order states documents will be accepted from and delivery will be made only to the applicant or purchaser, unless the documents are presented by a person duly authorized through a special power of attorney by the applicant.

The attested photographs and signatures of the authorized person should be provided by the applicant along with the written instructions for delivery of documents. ?Even if the applicant authorizes any other person to present or receive documents, the formal cash receipt of documents against which delivery is to be made will be handed over only to the applicant and no one else,? says the order.

Besides regulating the application process, the revenue department has also decided to regulate the delivery of the service to the applicant. To cut down on red tape, it has been decided that delivery of documents will be ensured ?as soon as possible but in any case within a maximum of five days of its acceptance for registration.?

Courtesy ? Times of India ? 06-04-2011

Companies in better shape; key players plan to halve debt burden by 2012-13.

Nothing seems to have gone right for the real estate industry in the last couple of years. All the excesses of boom times are coming back to haunt the players. From rising interest rates to an inventory build-up, the industry has remained under pressure. The Realty Index is close to its October 2008 lows, suggesting investors are risk averse and are expecting a repeat of 2008-09.

According to some foreign brokerages, reality isn?t so bad. While high inflation and interest rates coupled with corporate governance issues may act as a negative overhang for the sector, valuations look attractive now. Unlike the past, when valuations were mostly based on land bank sizes alone, now analysts look at numerous parameters to arrive at valuations. For instance, Standard Chartered Equity Research has adopted a VALLCRAB matrix to assess companies in this universe. This matrix examines visibility on projects, asset turnover, leverage, land bank quality, cash flows, return on equity, annuity stream and breakeven analysis.

The biggest overhang for most realty stocks has been the high debt on their books. With real estate prices touching new highs, after the peak of 2006-07, buyers have deferred purchase decisions, causing a build-up of inventory. The debt burden of eight companies ? DLF, Unitech, Indiabulls Real Estate, HDIL, Oberoi, Sobha and Prestige ? is close to $3 billion, which has to be repaid between FY12 and FY13. Analysts believe free cash-flows of these companies are not enough to repay and, thus, most of this debt will have to be refinanced or converted into new debt for new projects.

According to Standard Chartered analysts, DLF and Unitech look most under pressure as the cost of debt will inch up. Players may face some stress in the first quarter of FY12 as repayments come up in this period. Amongst listed players, during FY12 DLF, Unitech and Sobha need to repay Rs 2,600 crore, Rs 1,000 crore and Rs 550 crore, respectively, says Religare. Of this, Unitech and Sobha need to repay Rs 300 crore and Rs 200 crore, respectively, in the first quarter of FY12.

But the good news is that despite the debt burden, some companies will have positive free cash flows over FY12-14. Consequently, analysts estimate the sector?s gross debt/equity ratio to halve from 1x in FY09 to 0.5x by FY12E, primarily due to the increase in net worth led by capital infusion. Undoubtedly, inventory levels have gone up for both commercial and residential real estate; analysts believe these levels are not as bad as they were in 2008-09. With residential stocks at 11 months of sales (lowest since September 2008), the market is clearly not very heavy on inventory. Certain micro markets like Hyderabad do suffer from low absorption and high inventory.

Analysts expect pick up in commercial real estate once there is clarity on the direct tax code. While commercial inventory at 61 months looks high, it is widely believed that much of it is at IT SEZs, currently unoccupied due to uncertainty over DTC. Strong momentum in the IT sector would translate into accelerated demand for commercial space especially in the IT hubs of Bangalore and Chennai.

Courtesy ? Business Standard - 6th-04-2011

Be wary of fraudulent dealers while buying land to build your dream home, says VIVEK SHUKLA

Sadly, lack of knowledge has made many a land buyer an easy prey to shady characters resulting in huge losses. Recently, there was a case reported in most of the papers that some crooks had sold Army land in Faridabad to unsuspecting people and pocketed huge sums of money. As the realty scene booms in the NCR, many dubious people are on the prowl. The land and building racket department of Delhi Police's economic offences wing (EoW) has seen a 40% rise in land-grabbing-by-impersonation cases in the past year. In Gurgaon too, at least 50 cases of fake deals were registered in 2006 as against 82 in Delhi. In 2009, nine complaints of land and building scams were received by the EoW in Delhi while the figure was 58 in 2005.

Needless to say, people invest in land either for constructing their dream homes or for speculative gains. There is nothing wrong in this kind of thinking, but there is an urgent need to be extra cautious while investing in land, as land dealings are complicated and the authorities have little control over the haphazard development of residential layouts, says S K Gambhi, an eminent lawyer. If you are planning to buy a site, select a layout approved by local authorities and one with a particular number approved for sale. Collect copies of property documents and various approvals obtained by the developer and engage an expert lawyer to verify the title to the property.

If the layout is large, the developer may not part with copies of property documents and in such a case, collect copies of project approval letters issued by banks and home finance companies (HFCs).Engage the services of an advocate for verifying the original title deeds to ensure that the developer has not mortgaged the property for getting project finance. If project finance has been obtained, ask your advocate to verify original title deeds at the bank or HFC, which has granted the finance. Ensure the release of the mortgage on the property selected by you before the sale deed is registered in your favour. As fake documents and fabricated approvals are common, let your advocate visit the DCs office to verify the approvals obtained by the developer.

Select a layout which is fully developed, even if the cost is 10-15 % more than that of layouts under development, as this will remove all apprehension about the developers ability to complete the work as promised, within the specified time frame. Don’t get carried away by the attractive prices (which may be up to 50% less compared to neighbouring layouts approved by the local bodies) and assurances of approvals in the near future by a developer who has developed the layout using short-cut measures,  as explained earlier. It is advisable to select only an approved layout. Talking about capital, it is said that the target areas are the high value properties in posh South Delhi colonies. The main victim in these cases is the buyer and not the bona fide owner. A police officer explains: The owner gets the sales deed based on forged papers cancelled. Though he faces harassment, the true loser is the person who has bought property from fake owners. He is forced to return it and also loses his money.

All said and done, it is not a child’s play to buy land. Be careful and seek the services of a realty expert to clinch the deal.

Courtesy ? Times Property ? Dt ? 02-04-2011

ASHISH GUPTA outlines some documents you need to ensure that the sale is in order while buying a property in a housing society.

In case you are buying a flat located in a registered cooperative housing society, some documents are required and you should ensure they are provided to you.

The chain of original conveyance and sale deeds from prior purchasers and sellers of the property is needed. In case the seller has lodged the original deeds for registration with the sub-registrar, he should provide a copy of the conveyance and sale deeds along with photocopies of the receipt from the sub-registrar where the documents have been lodged for registration. This will give you an idea of the transfer of ownership of the property.

Missing documents are a hindrance while disposing of a property later. A property with clear documentation and title commands a higher price in the market compared to one with a title defect.

These are the major documents you need to ensure are in order: Share certificate issued by the society in favour of the seller indicating his membership to the society. No objection certificate from the cooperative group housing society certifying that the society has no objection to the transfer of the share in favour of the purchaser. The certificate should also certify that the seller has no defaults or dues to his credit to the society. Copies of stamped receipts of payments made to previous sellers.

In case you are buying a flat in a society that has not been registered as yet, these documents should be obtained:

Transfer permission from a competent authority - development authority or society signifying ownership of the seller.

Copy of approved building plan and occupation certificate issued by a competent authority to the seller 
Original stamped receipts of payments made to previous and present sellers by the builder or the development authority

The chain of previous agreements with past owners in original with original receipts of registration or the original letter of allotment issued to the first owner by the development authority

In case the latest agreement is pending for registration with the Registrar of Assurances, the original receipt issued by the sub-registrar acknowledging the receipt and pending registration needs to be shown along with a certified true copy of that agreement

Documents indicate legal status

These basic documents will give a good idea of the legal status of the property to a purchaser. After this, the rate may be negotiated between the parties. These would include the consideration payable, the stages in which it is payable, and the mode of payment.

The parties can then proceed with entering into an agreement to sell to put the terms and conditions in black and white further, the preparing of the sale or conveyance deed and agreement should be initiated.

The society membership transfer form for transfer of ownership needs to be duly filled in and signed by the seller as well as the purchaser.  It should be submitted to the society for necessary action.

Courtesy – Times property – Dt-02-04-2011

ASHISH GUPTA explains how the exemption against HRA is arrived at, and the conditions to be met to claim the exemption

House rent allowance (HRA) is a form of allowance employees receive.HRA is exempted from tax under Section 10(13A) of the Income Tax Act. The amount of exemption is taken to be the least of amount of HRA received, excess of rent paid over 10% of salary, and 50%of salary in case the employee resides in a metro city. Otherwise, it is 40% of the salary

For the purpose of HRA, salary means basic salary plus dearness allowance and commission, which is based on turnover achieved. One important condition is that you should have paid the rent for the house in which you live. Only such rent is considered for exemption. If you are staying in a house for which no rent is paid or payable, then HRA exemption is not available to you.

Only the period for which rent has been paid is taken into account to calculate exemption, irrespective of the number of months for which rent has been paid as advance. For purpose of deduction of tax, payment of rent by an employee drawing more than Rs 3,000 as HRA should be verified through rent receipts, though no rent receipt is required to avail the HRA perk.

No portion of HRA will be exempt from tax if an assesses lives in his own house or in a house for which no rent is paid by him. Also, if the actual rent paid by him is equal to or less than 10% of his pay. In other cases, exemption of HRA received is permissible to the extent admissible by applying the formulae.

HRA is received from an employer by an employee as a part of the salary package, with the terms and conditions of employment.HRA is given to meet the cost of rented premises taken by the employee for his stay.

Exemption rules

HRA exempt is the least of:

The actual amount received by an assessee in the relevant period during which the rental accommodation was occupied by him during the previous year The amount by which the expenditure actually incurred by an assessee exceeds one-tenth of the salary due to the assessee in the relevant period.

In case the accommodation is situated in Mumbai, Kolkata, Delhi or Chennai,50% of the salary due to the assessee in the relevant period.

In case the accommodation is situated at any other place, 40% of salary due to the assessee in the relevant period As long as the rented accommodation is not owned by the assessee, the exemption of HRA will be available up to the limits specified.

How it works:

Assume, during the year 2010-11, a person who resides in Bangalore gets a salary of Rs 8 lakh as basic and Rs 4 lakh as HRA per annum. He pays an actual rent of Rs 3 lakh per annum.

In this case, the HRA exempt would be calculated as:

Actual HRA received: 

Rs 4 lakh Excess of rent paid over 10% of salary: Rs 2.2 lakh (Rs 3 lakh less Rs 80,000 which is 10% of salary).An amount equal to 40% of salary (as the accommodation is in Bangalore): Rs 3.2 lakhs (40% of Rs 8 lakhs Since of these amounts Rs 2.2 lakh is the least,it will be allowed as a deduction from salary for the year.

Note:

The deduction against HRA is not available in case an employee lives in his own house. The deduction is also not available in case an employee does not pay any rent for the accommodation used by him. The deduction will be available only for the period during which the rented premises is occupied by the employee, and not for any period after that.

Courtesy – Times Property – Dt-02-04-2011

DDA eases norms for conversion of property

New Delhi: - Here’s good news for Delhi-ites looking to convert property from leasehold to freehold: the Delhi Development Authority (DDA) has reduced working days for completing the process of conversion, from 90 days to 45 days.

The land agency has also changed ownership norms due to which it has now become easier to sell properties. Owners can convert property on payment of a conversion charge and sell it without any hassles.

DDA vice- chairman G S Patnaik said: “We have started reviewing the processes of various transactions in DDA so that people face no inconvenience. As a large number of grievances pertain to cases of conversion from leasehold to freehold in the housing department, the whole process of conversion was reviewed by identifying the components of the process, devising a flow sheet and assigning new time schedules for expediting each component by the concerned department. The time has now been reduced from 90 days to 45 working days for completing the process.”

Owners will need to have all documents, such as sale deed and power of attorney, when applying for conversion. A no- objection certificate will be needed if the property is mortgaged. Conversion will not be allowed if there is a legal dispute over the property title.

The department concerned will be held accountable for any delay. “An office order has been issued to all departments, specifying time allotted to each for expediting the components they are responsible for,” added Patnaik.

The charges for residential properties vary from Rs 27,720 to Rs 4,575 per sqm depending on the locality earlier, all flat or shop owners were joint owners of the land. To sell a flat or shop in a multi- storey building, approval of all owners was a must.

Through a hailstorm of bouquets, brickbats, controversies and triumphs, the Indian real estate sector has always been one of the mainstays of the country’s economy.

While the changes suggested in budget 2011 were not sweeping, a significant boost is the credible interest subvention on housing loans where the interest rate subsidy of 1% has been extended to loans of up to ` 15 lakh  (it was at ` 10 lakh earlier) in cases where the cost of the house does not exceed ` 25lakhs.

Assuming an interest rate of 10%, what this really means for the common investor is a potential annual saving of ` 15,000 on a loan of ` 15 lakh   ( for a house costing not more than `. 25lakh). Additionally, the priority sector lending limit for housing units has been raised from Rs. 20lakh.

The incentives introduced in the budget are in addition to some very sought- after tax breaks, which are already available in the law. A housing loan is repaid usually by way of monthly installments, which include a principal amount and the interest thereon. While the repayment of the principal amount is eligible for deduction up to ` 1.5 lakh for self occupied property. For a let-out property, the actual amount of interest paid is deductible and thus for many investors taking up a loan and putting the property on rent may be a good cost benefit decision as the resultant loss can also be set off against his salary income.

Most of these benefits, except the tax break on the principal repayment, have been retrained in the proposed new law the Direct Taxes code (DTC) which is effective from April 2012.
There are however, a few myths that need to be shattered- while owning one self- occupied property is exempt from tax under the Act as well as the wealth tax provisions, additional properties(land as well in case of wealth case) may be subject to both income and wealth tax. Where on the one hand , you would be required to declared the fair rent the property would have derived, irrespective of the actual letting out position, on the other hand, the additional house property would be subject to a wealth tax at the rate of 1% ( over `30lakh). There are planning opportunities possible and it makes sense to consult an expert before one take the plunge.

And if you are looking to sell, then such sale  proceed (net of cost of acquisition and expenses on sale) would be subject to capital gains tax at the rates prescribed under the law.
However, if you invest the proceeds held for a long term (three years as it stands today) in another house property, then a roll over exemption is also available for reinvestments. There are changes proposed in the DTC, but quite a few of the principles have been tweaked and retailed, making these provisions more beneficial.

So the next time you get lured by the promise of quick gains, step back and think of how you can plan and still emerge with more green in your bank. 

Courtesy: Economic Times - 23rd March, 2011

GURGAON: After a long delay, the Haryana Urban Development Authority has invited tenders for the much-touted Northern Peripheral Road (NPR).

This stretch will connect Dwarka with National Highway 8 at Kherki Dhaula.

According to the tender document, March 7 is the last date for submission of tenders by private players. The road is being developed under the public private partnership (PPP) model.

The HUDA is expected to open the tenders on March 15.

The detailed document inviting tenders mentions that the project has to be completed within 12 months from the date of awarding of the project.

The NPR stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway.

Sources said that the construction of the peripheral road had been a priority for the state government, considering the major residential and commercial development happening along this corridor.

The road will also provide connectivity to the much-touted Reliance-HSIIDC SEZ besides the Garhi Harsaru dry depot.

A senior government official said, "A lot of time has been lost due to protests from affected property owners on this stretch. Now we want to expedite the work. The infrastructure development is crucial."
The HUDA tender also clearly mentions that the successful bidder will also have the responsibility to maintain the road for five years.

"Maintenance work will include repair of any potholes or depression, removal of all defects such as defective material, bad work man-ship and defective work/design, which will be done by the contractor free of cost. The contractor will be bound to repair road cuts also," the document said.

Source - Times of India - Feb -17 - 02-2011

Slums, home to the urban poor, evoke an image of filth, discontent and inhuman living. But can't these large chunks of land be channelized creatively to create better living conditions or alternative housing units - what is happening to slum rehabilitation ET Realty takes stock

Remember how the slums in Janakpuri were cleared, when residents relocated to Shiv Vihar and a super-specialty hospital was erected there. But how many slums have been redeveloped after that, is the question.
Delhi has around 900 slum clusters housing almost a fifth of its population. The Delhi government is now trying to redevelop 30 clusters and for the first time they have involved private developers in these projects. Several real estate firms, including India's largest real estate developer like DLF, Omaxe and Raheja Developers have shown interest in slum redevelopment projects.

Why is slum rehabilitation projects generally stuck up at design, conceptualization and initial stages and not pick up the way they should. On the face of it, it should be something that developers should die for and vie for as in a slum rehabilitation project, the biggest cost head, land, comes free. A developer is expected to build houses for the slum dwellers and in return get a portion of the total space for development which it can sell at market rates. The developer gets higher floor area ratio (FAR),that is permission to build more floor area on a piece of land in a slum redevelopment project, and thus books higher margins in these projects. So, theoretically, for any developer slum rehabilitation should be a very attractive prospect. However, the return on these projects is qualified by the fact that there are huge payouts as too many parties are involved, and such projects are not at all funded by financial institution. Also, it's tougher to execute such projects as they are fraught with issues of getting the consent of 70% of the slum dwellers, face opposition from political interests as well as voluntary organizations.

A developer who bagged one such slum project, asking not to be quoted, reveals how they have been running from pillar to post to find an alternative place to relocate the slum dwellers so that their houses could be constructed. But there has been absolutely no progress and there seems little hope. For getting their plans cleared, realty firms are stuck up with the development authority because there are several interpretational issues with respect to clearance of building plans under slum development programme. The disillusioned builder says: "Whereas people talk of higher margins in SRA projects, we are putting questions on rationality of such schemes unless there is a compatible policy of government officers to let things happen, and not to bring in the political interest which they are apparently trying to balance."Mumbai has far greater experience than Delhi in SRA. There are nearly 100 slum pockets under development out of which 60 proposals have been passed and are under construction.

Health experts attribute slums to be the primary cause of deaths in Mumbai, most of which happen due to malaria and dengue. With so much happening in Mumbai on SRA front, the positive part is, In Mumbai rehabilitation process, machinery has been oiled and the laws are in place, where as in Delhi, the rehabilitation process has no precedent.

Experts feel that most often than not, in slum rehabilitation projects, the urban poor are at the receiving end and they only move from the devil to the deep sea. According to Amit Mookim, director of Strategic and Commercial Intelligence at KPMG India Private Limited: "Relocation sites often provide less access to basic amenities than the original slum clusters. Many a times, there is sheer ghettoization instead of good living conditions and what is compromised in the actual implementation by the builder is quality of construction, design, ventilation, sanitation and hygiene and basic amenities. Besides, as they are next to up market societies, they create pressures in society."

For the government too, the challenge is on countless fronts; first, to rehabilitate people during construction, that is relocation of slum clusters, in situ up gradation of slum clusters and informal shelters, and the extension of minimum basic civic amenities for community use. Also, the number of people could be enough for a small township, so managing the numbers can be difficult.

Dharavi,one of the most ambitious slum rehabilitation projects in the world is on 600 acres of land. The problem here is that it is not just a matter of residential zone, but they will have to incorporate the loss of earnings by creating an industrial zone and a leather zone apart from a huge township. Dharavi is a non-moving duck, says Jock in Arputham, who has worked for more than 40 years in slums and shanty towns, building representative organizations into powerful partners with governments and international agencies for the betterment of urban living. Arputham is the president of the National Slum Dwellers Federation and bemoans the interference from political parties and the huge corruption prevailing as the root cause for much delay in these projects.

Others corroborate that a builder with the blessings of his political mentors bags a projects and then executes it manipulating all laws, plans, and shares profits with his mentors in the end. As a result, the redevelopment is of another kind, not in favour of the slum dwellers in some cases.

Jockin says that the most important thing he has achieved is the recognition of the role of the community.He strongly advocates community participation and the building of houses by the community itself."Why are houses of masons (most slum dwellers are masons or people who can easily work and learn this) being built by someone else "asks Jockin, adding,"We approach the government and say 'please leave building houses to us'. We have found a solution by organizing the community, keeping good quality control and costs low.This also gives the community a sense of ownership, makes them agents of change instead of being at the receiving end."

As against Mumbai, where the slum clusters are spread out in size, in Delhi the size of the slums are small and are therefore relatively less attractive. Nevertheless, Delhi's slum redevelopment projects too are likely to offer high margins and thus attract private developers' interest.

Recently, DDA awarded 5.22 hectares (13 acres) project at Kathputli Colony near Shadipur Depot in West Delhi to Raheja Developers for Rs 6.11 crore. Under the scheme,the builder pays only Rs 6.11 crore - the bid amount - for the land, but has to build 2,800 houses, each of 30 sq metre, for existing slum dwellers of Kathputli Colony (named after its majority residents of puppeteers and craftsmen).In the bargain, the builder gets for commercial exploitation 10% of the total space earmarked for 2,800 homes and also close to a hectare for high-end residential development. Therefore, the cost incurred in building 2,800 homes for slum dwellers will be offset by the sale of commercial space (offices, shops) and high-end houses in the project, while land came dirt cheap at Rs 6 crore. Is it true that developers vie for such projects as they get access to cheap and strategically located land and earn a high margin, as high as 80%,compared to 35-40 % in other realty projects.

Government has a huge role to play in laying done standards in construction, in utilities and in hygiene for such projects and ensuring better structures in SRA projects.

Courtesy: - ET REALTY - dt-17-12-2010

Along the skin of South Delhi,0 Km from DND Toll Plaza, located between the DND Flyway and Sector 15A,Noida,is this first mixed land use destination of Delhi /NCR. Slated to redefine the real estate market, Delhi One will showcase commercial spaces, 150 units of serviced luxury apartments, two 5 star hotels and leisure and entertainment avenues

The 3C Company has announced the launch of their new project Delhi One. This 12.5 acre mixed land use project is adjacent to the DND Flyway, in Sector - 16 B, Noida. The company will be developing this project in association with Red Fort Capital and its sale value would be Rs 5000 Crores.
Keeping in line with its tradition of designing architectural marvels, The 3C Company is all set to take the Green Revolution several notches up by launching Delhi One, which is envisaged as 'the destination' for the privileged few. Contemporary chic design and intimate interiors will be elemental to this refreshing retreat. Destined to be unsurpassed, Delhi One will witness the rendezvous of the discerning enthusiasts.

Speaking at the launch, Vidur Bharadwaj, Director, The 3C Company said, "Delhi One is the epitome of The 3C Company's architectural excellence. The exceptional design leads to the seamless integration of the various verticals; residential, commercial, hospitality and retail into one stunning visual treat which is bound to change the way NCR has been perceived. The architecture of Delhi One does not only mark the grand emergence of Indian developments but also symbolizes India's transformation.

Taking the 3C's connection with nature forward, the design philosophy of Delhi One is driven by the five elements of nature i.e. the pancha mahabhuta, or 'five great elements'. These five elements are kshiti or bhumi (earth), ap or jala (water), tejas or agni (fire), marut or pavan (air or wind), shunya or akash (aether/space/sky).

Defined as compact, mixed use, urban and a green development, Delhi One is segregated into Domicile, Entertainment, Leisure, Hospitality and Business First. These sections of Delhi One perfectly synchronize with and are directly related to the elements of nature.

Domicile - Privileged Living | Serviced Residencies

In the lap of luxury, elected few always find their way. These 150 fully furnished spacious and splendid serviced apartments with high end luxurious amenities will soon be the prestigious address for a discerning few. Some features include - concealed parking, pedestrian friendly, gym/spa, concierge service/housekeeping, exclusive business areas, wi-fi connectivity, sports courts / swimming pools, security and fire safety provisions, professional facility management and medical touch point.

Entertainment - Amphitheatre | Shopping | Fine Dining

When it's about entertainment, It's sure to be the talk of the town. Delhi One will witness the reinvention of this city's indulgences. The high street retail, theme shopping streets, high end restaurants, wine lounge, cigar lounge, anchor store, food court, ports courts, swimming pools etc. are just a few ways that will see the city delight its senses and pamper itself.

Leisure - Art Gallery | Culture Center

Renaissance - the rebirth or the revival of art and craft, of literature and learning, of theatre and culture. Delhi One will play host to the culturally rich events that the city has been urging for. Art exhibitions, classical performances, theatre and drama, library and book stores will create an aura enough around themselves to allure the city's who's who.

Hospitality - 2 Five Star Hotels | Sky Bar

In hospitality, the primary thing is service. Delhi One will showcase one of the finest chains of hotels providing five star luxury services along with service apartments. To emphasize on the holistic approach towards body, mind and soul, DELHI One will also offer a synergic blend of therapeutic and rejuvenation treatments based on traditional Indian Ayurveda and Oriental spa rituals complimenting the best in the industry. Health club and gymnasiums will come as an attachment for all those at Delhi One.

Business First - Office Towers | Business Suites

Strong coffee aroma, permeating the hallways and well designed office floors, steady stream of cars zooming down to the spacious parking terminal, huge atrium of a five star lobby, this is the Numero Uno office address for you at Delhi One. The commercial space at Delhi One comes attached with a helipad and a medical touch point. The inbuilt health club and gymnasium along with roof top not only add on to the beauty of the complex but also make sure that all those at work here spend some non working yet official relaxing hours too.

Brijesh Bhanote, Senior Vice President, The 3C Company further added, "Along the skin of Delhi, right next to the DND Toll Plaza, Delhi One is destined to change the way Noida has been looked upon. The perfect amalgamation of unmatched location, design and product mix is bound to make it the most sorts after destination. Delhi One marks the beginning of a golden era not only for the 3C Company but for the entire real estate."

Delhi One carries with itself the urge of excellence into exclusivity, of refinement into preciousness, of elegance into class and convention. Designed to gratify the senses, this contemporary masterpiece is extravagantly lavish in all the aspects.

While others measure their success by their land bank, 3C is counting the Green Buildings they are developing. The accolade of being the sole squad in the entire Asia Pacific, which has three platinum and two gold rated LEED certified Green Buildings by IGBC (Indian Green Building Council) under the umbrella of USGBC (U.S. Green building Council),not only testifies the impeccable architectural excellence of The 3C Company but also echoes its concern for the environment. Green Boulevard, one of the Platinum Rated Green buildings of The 3C Company, is under the process of getting Carbon Credits. This would be India's 2nd building to get carbon Credits. The 3C Company's recently launched Green Residential projects in Noida - Lotus Boulevard, Lotus Boulevard Espacia, Lotus Panache, Lotus Zing and Lotus 300 have not only brought a paradigm shift in the real estate sphere in the last one year but are also moving ahead at a fast pace to take the shape of Green Landmarks of Noida.

The 3C Company's holistic perspective as a responsible corporate balances the development of NCR along with creating a healthier and greener planet.3C's recent social campaign - Earth| Water is an effort to inculcate wider audience to Preserve Earth and Conserve Water, thereby leading them to Think Green and Live Green.

Courtesy: - ET REALTY - dt-17-12-2010

Have natural, non-toxic materials in your decor theme to make your home a healthy place

The use of natural material can create a more relaxing and low stress environment, in contrast to man-made laminates. Maximum use of natural elements like sun and wind; appropriate use of colours, furnishing materials, lighting systems, regulated use of mechanical and electronic gadgets - these are all things which define a healthy home. Improperly maintained gadgets used indoors as well outdoors can increase the level of chemical pollutants indoors, affecting the air quality and ultimately our health.

NATURAL AIR FRESHNERS

Avoid chemical air fresheners- instead, use baking soda or any other natural fresheners or simply open the windows for some time. Choose toxic-free upholstery, furniture, carpets and curtains that don't contain brominated flame retardants, stain repellents or wrinkle-resistant treatments. Another great way to reduce toxic exposure is to have lots of house plants. House plants clean air by absorbing chemicals and converting them into food and energy. It is recommended that homes have two to three houseplants per 100 square feet of room space. Also, use organic paints and treatments. Allow natural regulation of indoor humidity. Use real wood rather than pressed particle board.

COLOURS

All colours have varied wave-length and energy output. Hence, keep a balance in the colour schemes you choose for interiors. Neutral background of white and cream tones gives a calm pristine quality to the room, with little tones of vibrant colours.

VENTILATION

Keep your house warm and dry with the help of exhaust fans if the number of doors and windows are not adequate. By increasing ventilation, the relative humidity could be reduced and mould growth could be prevented. Soft furnishing containing synthetic material including foams release various unhealthy gases over time. Avoid plastic food wrap, non-stick cookware etc. in kitchens, wrinkle-resistant sheets containing formaldehyde or made with pesticide treated cotton in bedrooms could help you maintain a healthy indoor air environment.

Courtesy: - ET REALTY dt-17-12-2010

One of the major factors affecting affordable housing is land be it land availability, land-accessibility or cost of land the question of land always comes into the picture when plans for a housing-project are drawn up. That this land factor should play such a vital role when affordable housing projects are concerned only underlines the importance of planning and provision of substantial portions of land on which such housing projects may be developed. With land prices within the city ever on the rise, the CMDA (Chennai Metropolitan Development Authority) has had to make a few adjustments to help establish affordable housing in the city, "While preparing the Second Master Plan, we have taken into consideration the high land value and construction cost," says Susan Mathew, vice chairman of CMDA, adding, "The review of space standards were made and the plot size for residential construction has been brought down from 90 square meters to 80 square meters. For EWS (Economically Weaker Sections) it is retained as 20 square meters in Chennai city and 40 square meters in the rest of the Chennai Metropolitan Area (CMA)."

    Cross-subsidization (the practice of charging higher prices from one group of consumers in order to subsidize lower prices for another group) is another strategy adopted by the CMDA to combat land prices and rising costs, as it advocates the Jawaharlal Nehru National Urban Renewal Mission's (JNNURM) strategy which stipulates a minimum of 20 to 25% of developed lands in housing projects for EWS and Lower Income Groups (LIG) with a system of cross-subsidization. This strategy has takers, as cross-subsidization is being looked upon as an effective method of making land and building material affordable to those belonging to LIG."Cost of land is a consideration, as much as the rising prices of building materials," says Durganand Balsavar, a city-based architect."However through exploring cross-subsidized housing, these adverse impacts can be mitigated considerably," he says.

While measures like reduction of plot size and cross-subsidization may be encouraging, there are those who believe that land availability is not the only decisive factor of affordable housing."Land prices just outside the city are as low as Rs 1,400 and Rs 1,800 per square foot it is infrastructure, at the end of the day, that plays the biggest role in affordable housing," says Shripal Munshi, an urban planner and partner with SV Architects, a city-based architecture company, "Facilities onsite, transport connectivity, sewage and basic amenities can determine whether the land in question is viable enough for the establishment of a housing project."

There are takers for Munshi's point of view, as architects feel infrastructure is undoubtedly the way forward."Investment in infrastructure is a basic and non-negotiable requirement for affordable housing," says Durganand, "New sources of renewable power generation, recycling waste water, investing in roads, public transport and social infrastructure like colleges, schools, hospitals and markets facilitates affordable housing."

According to the US Department of Housing and Urban Development (HUD), housing is affordable if it costs the occupant not more than 30% of his income for gross housing costs, including utilities.

  Chennai is the 4th largest metropolitan city in India and the total population of Chennai Metropolitan Area (CMA) as per 2001 census is 70.41 lakhs. The total number of households as per 2001 census in CMA is 16.19 lakhs and the total number of housing units in CMA is 15.83 lakhs.

   According to a study conducted by the CMDA in 1989-90, the number of households living on pavements was 9,491 at 405 clusters at an average of 23 households at a place.

As per 2001 Census, Chennai city had a slum population of 8.19 lakhs, which is approximately 19% of the city's population. The percentage of slum population to total population has reduced from 30% in 1971 to 19% in 2001.
   The National Urban Housing and Habitat Policy, 2007 stipulates 10 to 20% of land in every housing project or 20-25 % of FAR reserved for EWS/LIG housing. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched by the government of India stipulates a minimum 20 to 25% of developed lands in housing projects for EWS/LIG housing with a system of cross-subsidization.

  It is mandatory on the part of the developers to reserve at least 10% of the site area and provide houses for LIG with dwelling units not exceeding 45 square meters in cases of large-scale developments exceeding 1 hectare. This rule was brought in the SMP to encourage EWS and LIG housing developments.

   The statistics on the number of Planning Permission Applications issued for residential layouts, since 1989 reveals that 44,673 residential plots have been approved of which 19,075 plots are for EWS.

   Recently, development regulations have been amended by providing an additional FSI concession of 50% over and above the normally permissible FSI for those who construct units of 30 sq m and below. For those who construct dwelling units of 50 square meters and below, an additional FSI concession of 30 % over and above the normally permissible FSI is given.

Courtesy:- Times Property dt-11-12-2010

Maintenance of property is important. A common point of dispute among many landlords and tenants is maintenance of a rented property. Usually, a lot depends on the mutual terms and conditions as agreed upon between the parties and laid down in the lease agreement. It is the responsibility of the landlord to ensure that the tenanted premises are habitable and safe. If need be, he should ensure that adequate repairs are undertaken.

   In case a landlord is unable to do so or is unwilling to do so, his tenant may undertake these repairs. He needs to give proper notice to the landlord, specifically mentioning the nature of problem, the nature of inconvenience caused, safety hazards, and the necessary steps required to correct the problem. It should be mentioned that in case the landlord fails to undertake the repairs within a specified time, the tenant will have it done and will be eligible to recover the amount spent from the landlord - from the rent or otherwise.

  However, it should be noted that this covers only repairs that are essential and urgent. It would not cover circumstances where the tenant wants some alterations or additions for his convenience. The essential test is the requirement to keep the premises safe, habitable and usable.

   The Rent Control Acts of various States also provide some guidance to this effect. As per these Acts, a landlord has to keep the premises in good repair. Every landlord is bound to keep his premises in good and tenantable repairs. If a landlord neglects or fails to undertake any repairs which he is bound to within a reasonable time after notice in writing, the tenant may do so himself and deduct the expenses from the rent payable to the landlord. This is subject to the condition that any amount deducted or recoverable in any year will not exceed one twelfth of the rent payable by the tenant for that year.
  In case repairs are to be undertaken, without which the property is not habitable or usable except with undue inconvenience, and the landlord neglects or fails to do so notice in writing, the tenant may apply to the rent controller under the Rent Act for permission to undertake the repairs himself. He should submit to the controller an estimate of the cost of such repairs too. The controller may give the landlord an opportunity of being heard. After considering the estimate of cost and making any inquires as he may consider necessary, the controller may by an order in writing permit the tenant to undertake the repairs. It will then be lawful for the tenant to undertake the repairs himself and deduct the cost. The costs can be recovered from the landlord. It cannot exceed the amount specified by the controller.

Courtesy:- Times Property dt-11-12-2010

According to NUHHP (National Urban Housing and Habitat Policy) 2007,an affordable house is defined as," a dwelling unit having super built-up area not less than 300 sq ft for EWS (Economically Weaker Sections ),500 sq ft for LIG (Lower Income Group) and between 600 and 1,200 sq ft for MIG (Middle Income Group) available to the end user at a price that permits home loans in monthly installments, which should not exceed 30%-40 % of a person's monthly income."However, affordable housing continues to be an elusive dream, especially for those in the EWS and LIG categories. Why there is a problem in terms of supply and implementation of affordable housing schemes 

P Suresh, MD, Arun Excello, believes that the biggest impediment to construction of affordable housing projects is the non-availability of land. He says, "It is impossible to find land at appropriate locations at affordable prices. Where can you find land at a cost of less than Rs 1 crore per acre this is a big deterrent as land price accounts for more than 40% of the cost of the project."

It's not just availability of land that we are talking about here. As Kumar Gera, Chairman, CREDAI (The Confederation of Real Estate Developers Association of India) points out ,"Well-connected, accessible land with title and infrastructure needs to be provided on a regular basis. Only then can developers provide affordable housing in the real sense of the word."

In cities, in particular, land availability is a bigger problem. According to a report by McKinsey Global Institute (MGI),India's urban population will soar from 340 million in 2008 to 590 million in 2030.How will the housing demands of the population be met Sample this: 23% of India's urban population resides in eight cities. If the housing shortage (of 26.53 million housing units) is to be addressed effectively, at least three million housing units must be added to the cities, every year. Instead, only 0.3 million housing units are being added in the existing cities. Urban land expansion is, therefore, the need of the hour.

As per the estimations given in the Second Master Plan, of the total housing demand of 12.38 lakhs, the demand for EWS and LIG housing will touch 3.71 lakhs and 4.33 lakhs respectively by 2026.More than 90% of those affected by the shortage in housing are from the EWS and LIG categories, for whom an affordable house would fall in the range of 4 lakhs to 7.5 lakhs. Most developers however continue to cater to the niche market that serves about 5-10 % of the population. As P Suresh points out," Promoters are averse to handling more number of clients; in an affordable housing project, for instance, it's a volume game. You need to provide a large number of housing units, as opposed to a luxury project where you deal with very few clients and big spaces."

Coupled with this is the problem of financing affordable homes. To offset this problem and deliver financial assistance to the poor so as to enable them to purchase their own homes, the central Government has instituted the ISHUP (Interest Subsidy Scheme for Housing the Urban Poor) scheme all across the country.

"This scheme gives EWS households a subsidized loan for a period of 15-20 years for a maximum amount of Rs 1 lakh.LIG households can avail of a loan of up to Rs 1.6 lakh but the subsidy is not applicable for the remaining 60,000.The subsidy is 5%/annum on interest charged and is deducted from the loan quantum right in the beginning," says Dharmendra Pratap Yadav, Managing Director, TNHB.

Harsh Roongta, CEO, Apnapaisa.com, an online portal that specializes in price comparison of loans, insurances and investment options, believes that the affordable housing industry has led to the growth of a microfinance industry as well, that funds people who may not have the means to buy a house otherwise.

Groups like Mahindra, MAS, Micro Housing Finance Corporation Ltd offer loans at 12-14 % interest rates to those who do not have proofs of salary documentations. He says, "People in the EWS and LIG categories do not have income documentation and hence they face problems while applying for loans. So to them, availability of loans is of prime importance; the cost of the loan does not matter as much."

Kumar Gera believes that tax concessions and a micro level road map for affordable housing will help plan such projects. A public- private partnership (PPP) is a solution too. As Susan Mathew, vice chairwoman of CMDA (Chennai Metropolitan Development Authority) says, "It is the social responsibility of every developer to ensure that housing is provided to the EWS and LIG categories."

To facilitate this, the government has announced a few incentives and subsidies to developers who cater to this segment."In order to facilitate PPP in provision of housing for rehabilitation of slum dwellers, the government has announced a Transfer of Development Rights (TDR) of 30 sq m of floor area per slum dweller to the private builder who provides housing for the slum dwellers and the Development Regulations (DR) have been amended suitably," she adds. Also, additional FSI concessions of 50% over and above the normally permissible FSI for those who construct dwelling units of size 30 sq m and below are given. For those who construct dwelling units of size 50 sq m and below, an additional FSI concession of 30 % over and above the normally permissible FSI is given, she says.

These policies and incentives will go a long way in promoting affordable housing. However, unless the bigger issues of land availability, planning and pricing are addressed, the market will not be able to serve the needs of those who really need an affordable house.

Courtesy:- Times Property dt-11-12-2010

With environmental concerns having taken centre stage, a spate of major construction projects have recently been pulled up by the ministry of environment and forests (MoEF) on the ground of violation of norms. Adarsh and Lavasa have become household names and notices for their demolition or cease-construction are pending. Thus, rather than investing lakhs and crores of rupees in property that may face the risk of demolition in the future, It might serve one well to ensure that all environmental clearances have been obtained.

   It is vital for end users looking to purchase or construct a home, villa or a sprawling farmhouse to acquaint themselves with these rules and regulations but, as of now, there is no information out on the table which will give them a clear picture of the various clearances that are required, and there is even little awareness that there are any such regulations at all.

  Take Delhi, for example. How many are in the know that for any major construction project, the Delhi Urban Art Commission (DUAC) is to give the final go-ahead. Most people, even among the educated and the professional class, might not have even heard of DUAC and those who were mandated to apply for a clearance would often not bother. The city is dotted with several projects, including the Commonwealth Games Village, which came up without all the necessary clearances. For instance, the CWG village, built on what several claim is a flood plain, needed a no-objection certificate (NOC) from the Central Ground Water Authority a clearance that was not even applied for.

    Naturally, for someone looking to invest in property, the issue of environmental clearances becomes critical and the question then is, how one to acquaint oneself about them. R P Singh, a Mumbai-based architect says: Normally, such clearances are required only for residential complexes or townships and not single unit homes. However, the situation would change from city to city. One would know if they are too near the sea, or in a mangrove area, or in the case of the national capital, whether they are in the Delhi Ridge.

   Construction here is not permitted in any case. Architects are aware of constructional clauses and would be able to guide prospective owners about fire-safety clearances and height of buildings permitted in certain zones. In Mumbai and other coastal areas, the Coastal Regulation Zone has been marked out and constructions taking place within it, whatever they might be, need to apply for clearances, Singh adds.

Some of the acts under which permissions have to be sought include the Wildlife (Protection) Act,1972;Water (Prevention and Control of Pollution) Act of 1974;Air (Prevention and Control of Pollution ) Act of 1981;Forest (Conservation) Act,1980;Environment Protection Act 1986;EIA Notification of 1994 (since amended in 2006); Coastal Regulation Zone (CRZ),1991and Central Ground Water Authority (CGWA),1997.While these are major heads that can be applied to most projects, a clean chit would also be dependent on where the project is coming up as local laws vary widely.


Manoj Mishra of Yamuna Jiye Abhiyan quips, I would not like to get stuck with a property in Lavasa, referring to the now disputed Lake City project coming up near Pune. The environment ministry has now taken cognizance of the fact that it [Lavasa] does not have all green clearances but how would an ordinary investor know that. The tragedy is that there is no one agency delegated authority to clear building plans and advise on the environment clearances required. In Delhi, the Municipal Corporation of Delhi is supposed to pass plans but, that in itself is an exercise mired in controversy. There are also local level bodies from whom clearances might be required like the DUAC, Yamuna Standing Committee (YSC), Delhi Pollution Control Committee, he adds. Y C Khurana, a lawyer, says that it would not be a bad idea to ask builders for all clearance certificates before investing in a property. The most common practice these days is to market new property by showcasing its green aspects, its proximity to nature, etc. However, one needs to be most careful here. There have been many instances of constructions coming up in notified buffer zones, around tiger reserves or other eco-sensitive zones. Before investing, one must either approach local authorities, or lawyers and architects concerned to ensure that there have been no violations, he says.

    Experts also add that seeking environmental clearances should not be a task confined only to the environmentally conscious, as the penalty of violation of these norms applies upon every citizen. The penalty of constructing without green clearances could be forbidding, including demolition of the building. The Right to Information Act has played a major role in this regard. Many of the illegalities that have come to light are because the government bodies concerned were forced to acknowledge that either clearances had not been applied for or not been granted. With MoEF now so active in cracking down on illegal constructions, what it needs to do is to create a proper archive of laws and clearances that one needs to keep in mind before either constructing a house or investing in a township or complex and put it up on its website, a Delhi based activist says.

Courtesy: - Times Property dt-11-12-2010

With its latest project, Bellevue, Central Park delivers not only homes but also on its promise of quality. RAVI KUMAR MANGALAM writes 


This is a home which no one will want to leave. That’s the kind of response that Bellevue the Phase 1 condominium towers of Central Park II in Gurgaon has been generating among buyers. Vineet Nanda, vice-president of business development at Central Park, explains why: Bellevue is a rare example in India to have obtained six quality certificates from leading auditors and consultants (Grant Thornton, Jones Lang LaSalle-India, KCB Associates, Dema Consulting and Manu Jain).The certificates carry a seal of approval from the consultants on specifications relating to the construction quality and the structural integrity of Bellevue. Certificates are being handed over to each apartment owner at the time of possession. We are not just in the business of building apartments, we believe in building trust. 

Bellevue, comprising over 400 exclusively-designed apartments in the range of 2,350 sq ft to 4,650 sq ft, offers all the main features that buyers usually seek a prestigious address, the vibrancy of city living, quiet green surroundings, good security coupled with modern range of amenities. These apartments overlook the swimming pool and the sprawling greenery on one side and the Aravali skyline on the other.

Nanda adds: The amenities offered by Bellevue include an amphitheatre, a basketball court, tennis and badminton courts, power backup, double-level basement parking, solar water-heating, fire safety systems, high speed communication networks and beautifully designed park and play areas for children. Another feature of the Bellevue project has been the use of state-of-the-art construction technology, known as Mivan shuttering. Mivan uses aluminum frameworks for the construction of tall buildings, to impart solid structural integrity and a high-degree of seismic resistivity. Launched in 2007 at a price of Rs 2,050 per sq ft, the condos now carry a re-sale value of Rs 6,000 per sq ft evidence of its great demand and endorsement by the upscale market segment, he says. The project has been designed by one of the worlds largest and well-regarded architectural firms HOK (formerly Hellmuth, Obata + Kassabaum).

Another advantage of Bellevue is connectivity. It is very close to the heart of the city centre, IFFCO Chowk, the Metro station and the international airport.Also,it is located within the vicinity of good schools like Pathways World School and GD Goenka World School and reputed hospitals like Medanta and Artemis.

Central Park is jointly promoted by Amarjit Bakshi and K S Bakshi It also has Ashmore PLC, a leading international PE fund based out of UK as a third partner with an equity participation in the company. Currently, Central Park has over 2 million sq ft of existing development and another 6 million sq ft are in an advanced stage of planning and execution across verticals like upscale residential development, hospitality and SEZs.

The company has the distinction of being a Zero Debt company and its market cap is valued at over Rs 5,750 crore by the PE fund, says a company director.

Courtesy:- Times Property dt-11-12-2010

Citizens of Delhi and the NCR seeking an accommodation near Metro stations is an old story. Today, even the expatriate community in Delhi is lining up to grab a vantage house, flat or villa near a Metro station, says VIVEK SHUKLA 


Derek Amiss, an expatriate from the UK, was elated when the Metro reached Noida - and ever since he has been commuting on the Metro, even to Gurgaon, for official and personal work. An IT engineer by training, Amiss has even shelved plans to move to Noida from Green Park where he has been living for the past couple of years."After the Metro crossed the borders of the capital for Noida, it has given me a huge relief. Now, I often visit my office on the Metro - from Green Park to Rajeev Chowk and then to Noida. It is hassle-free and takes less than 45 minutes to reach my office from home and vice versa," Amiss chuckles.

As the Metro rail is moves at a steady pace to the various parts of the capital and the NCR, it has greatly eased the life of locals as well as the large expatriate community in the capital. Rental market watchers say that it is a matter of great surprise that even those with luxury cars are now shifting over to the Metro for their regular commute to office, markets, malls or social outings.

"I am really surprised! Over the past couple of weeks, I have come across several requests from expatriates seeking rental accommodation close to Metro stations. It is a clear sign that they prefer the Metro to facing the harrowing traffic jams on the capital's roads," says Kajol Makhijani of Mak Realtors.

A French lady, who does not want to be identified, says that as her kids study in a French school at Aurangzeb Road, they take the Metro from Gulmohar Park station daily and get down at Jor Bagh station. And from there, the school is at a shouting distance."Earlier, I used to drop them off at the school as, very often, their cab did not turn up. That was very irksome. Now, the Metro has solved our problem and my kids are also happy travelling on it," says the lady, a journalist by profession.

While the Metro is making life comfortable and better for people, it is also boosting the demand for properties close to Metro stations. The demand for rental accommodation as well as commercial properties close to Metro stations is increasing by the day. Rail and development go hand in hand and the Metro has clearly proved this old saying once again, says Sunil Jindal, CEO of SVP group, adding, "As the Metro moves beyond the capital, it is ringing in development at every place it touches. Infrastructure is improving and people seeking a roof over their head are also shifting there. Ghaziabad is an example. With the Metro touching Anand Vihar and slated to move into Vaishali and Vasundhara in Ghaziabad soon, the realty scene of the entire area has received a huge boost."

And talking about Faridabad, there are indications that once the Metro reaches here, it would give the rather sedate realty market of this once bustling town a new lease of life. Having reached Sarita Vihar, hopefully, its onward journey to Badarpur and Faridabad would commence soon.

Sanjay Khanna, director of Kailashnath Projects Pvt. Ltd, says there is no doubt that apart from giving a huge relief to lakhs of people who had to struggle to reach their respective destinations due to a poor publics transport system and a chaotic traffic,the Metro has also boosted the realty prospects of almost all the places it has touched and even to those place where it is planned to reach.

According to Madhav Joshi,a cartoonist working for News 24: "I was happy at Mayur Vihar till I came to know that the Metro was going to Vaishali in Ghaziabad.I was convinced that the news was correct and I booked a flat in Vaishali two years ago. I have recently shifted to my flat and I am really looking forward to travelling on the Metro in order to reach my Noida office."The Metro is slated to reach Vaishali within six to eight months.

Anil Sharma, CMD of Amrapali group, strongly believes that the Metro's ingress into various NCR cities likes Noida, Gurgaon and Ghaziabad would prove a game changer for all of them."We are observing that due to the Metro factor, the demand for flats of almost all the realty firms have gone up," says Anil Sharma.

While the Metro is on the move and there is still a great scope to improve its service, it has perhaps, unknowingly, helped the cause of even expatriates as well realty sector.

Courtesy:- Times Property dt-11-12-2010

The newfound craze of Delhi's neo-rich and the corporate to develop holiday or de-stressing resorts cheek by jowl to Delhi, Gurgaon and Manesar has caused a spurt in the prices of lands, particularly those located along NH 1,NH 2,NH 8 and NH 10 (Delhi-Mathura road, Delhi-Jaipur road, Delhi-Karnal road and Delhi-Rohtak road) and also in those along some link roads like Pataudi-Taoru-Palwal road, Gurgaon-Sohna road and Gurgaon-Sultanpur road.

According to the reports available with the real estate agents at Gurgaon and Faridabad, the land rates have crossed Rs 50 lakh to Rs 75 lakh per acre - all over-the-counter, and even at these rates, they say it is a sellers' market! 

A senior officer of the Haryana Town & Country Planning Department (TCPD) said that during the last few months, no-objection certificates (NOC) have been issued to someone dozen parties to develop farmhouses-cum week end resorts in the Haryana part of the National Capital Region (NCR).He vouched that such NOCs are not granted for lands situated within 2km of the Kundli- Manesar-Palwal (KMP) multi-lane global corridor (under construction ) and for land pieces which are less than 2.5 acres in size. These farm houses or de-stressing resorts are, no doubt, eating into the green lungs of this prime region.

According to an executive of the Federation of Estate Consultants of NCR (Foenc) while earlier, the first choice of a VIPs and the affluent class of the national capital was the areas near Chhatarpur and the neo-rich had engulfed the prime fertile land on Faridabad-Sohna road and Sohna-Taoru road touching the KMP corridor, now Delhiites are sourcing land along other roads in the region.

The first VIP to have developed his rural retreat was former Prime Minister Chandra Shekhar, at Bhondsi, on the Gurgaon-Sohna road. But later, the neo-rich began acquiring big chunks of fertile agricultural land from Kundli to Karnal (via Sonipat and Panipat) to build farmhouses.

In a related development, the tourism department of Haryana has also initiated steps to promote 'farm tourism' n the NCR, conforming to the recently revised norms in this regard.

Sources in the Foenc say: "If you, your family and friends wish to inhale the fresh air of green fields, wish to watch a Harynavi villager milking the buffaloes and see the 'chaudharies' enjoying 'hooka' and you,your family and friends wish to spend a Sunday,away from the hum-drum of Delhi, drive to the rural parts of Faridabad, Palwal and Mewat districts."

It is now official that Haryana's tourism department has identified some 20 farms for the public-private partnership initiative. The farmhouse owners have committed to providing boarding and lodging facilities to tourists at reasonable rates.

The Nature & Nature Farm (near Tigaon) offers natural food, nature cure and natural surroundings. Surrounded by lush green foliage, a stay at this village with ethnic huts promises to give one a taste of the best in rustic and rural life.

Just half an hour away from Palwal is the sprawling farmhouse of Rajinder Bisla. It is considered a complete 'nature destination' for the Delhiites, to learn about the roots and traditions of 'Brij Bhoomi'. Further down, another one hour drive from Hodal on the Hodal-Hassanpur road fetches the Silver Scene Abode that offers an escape from the hectic urban life into the tranquil natural surroundings. It has raw earthy elegance and fully irrigated and vast fields.

The Progressive Farm in Faridabad opens a different world to tourist, as it abounds in flowers and chirping birds. At Sheilma Farms in Faridabad, a pool and swings for children make it an ideal place for a family picnic.

The YMCA Rural Centre on the outskirts of Hodal on NH 2 is equipped to impart technical skills of modern farming techniques and creates awareness to improve the health status of the community.

Courtesy:- Times Property dt-11-12-2010

At the outset, just consider two situations. When you buy a car or a two-wheeler, the auto company gives you free service for a certain period and looks after the maintenance of your vehicle for donkey years. And just spare a thought for realtors. You buy residential or commercial property from realty firm for huge sums. And once the deal is sealed, realtors more often than not, feel they are not duty-bound to serve their clients. What a pity! 

    Surprisingly, for a change, the Delhi Development Authority (DDA) has decided to maintain the flats after their allotment. For the first time, DDA will now provide maintenance of the flats that are part of its latest housing scheme for the next 30 years.

    DDA will maintain the usually neglected common areas like staircases and shafts of the flats that it will allot. A large number of the nearly 16,000 flats that are part of the new housing scheme will enjoy DDA's healing touch. The allottee, however, will have to pay a one-time lump sum amount for the maintenance.

    While DDA realized its responsibility for the maintenance of the flats, will other builders too rise to the occasion and provide the much needed after-sale service to their clients.

   In a very candid admission, Sanjay Khanna, director of Kailashnath Projects Pvt. Ltd, says that generally, it can be safely said that "realty firms hardly look after the affairs of buildings they build". Not surprisingly, due to this apathy, the buildings start decaying after some years.

    Coming back to DDA, the cost of the houses in the new scheme will now include the cost of maintenance. Allottees of flats with lifts will have to pay 15% of the total amount as one-time maintenance and Allottees of flats in up to five storey buildings will pay 12%.DDA will now plaster the facade of apartment blocks, repair staircases, railings, balconies and floors and also take care of the common drainage lines.

    Sunil Jindal, CEO of the NCR-based realty firm, SVP Group, says: "We have outsourced the maintenance to a team and they look after our projects and they address all the issues of our customers. You cannot survive in the market without taking care of the interests of your clients."He adds that they have deputed technically sound people who can ensure smooth operations of the infrastructure in the complex.

    However, an expert of realty affairs says: "I have observed that as maintenance of apartments and commercial buildings is not a great business opportunity, most of the realty firms extend maintenance facility only during the first year or till such time that a resident association is formed, purely on a no-profit no-loss basis. The corpus collected is accounted for and the remaining funds handed back to the association for relevant maintenance activities."

It is no secret that residential and commercial buildings that look good and impressive are maintained by dedicated maintenance teams. Maintaining a building is not all about housekeeping and cursory maintenance. Far from being confined to plumbing and electrical work, maintenance of these complexes extends to include a host of items that require a fully functional office and maintenance staff on call round the clock.

    Understandably, maintaining a complex not only includes housekeeping and round-the-clock emergency services, it also includes beautification and care of gardens and common areas, security, to name a few.
    R K Sinha, CMD of SIS India Ltd, says that they had started an upkeep service for residential and commercial buildings and the response was very encouraging."Within a couple of months of starting our new business, we started getting a barrage of queries from both small and big cities, for managing buildings, "he says. According to this journalist-turned entrepreneur, the service is typically managed by a manager and office personnel complete with a wireless network to track field staff.

   Anil Sharma, CMD of Amrapali Group, says: "While we extend the facility of lifetime maintenance, it is certainly not because it is an added business opportunity but merely to ensure the development is well taken care of."According to him, apartment maintenance is more of a bother than money earner. He, however, accepts the fact that this is one area which deserves attention from realty players.

    Realty market watchers say that maintenance is the key to the upkeep of a residential complex. The going rate is around Rs 1 to Rs1.50 per sq ft for a normal residential complex with facilities like lifts, swimming pool and power backup. But complexes with a golf courses, etc, will have a higher rate, around Rs 3 per sq ft. All good things come at a price, so does maintenance of a nice residential complex. This is like owning a luxury car, which naturally has high maintenance cost and expensive spare parts. Similarly, maintenance cost of apartments with golf courses and other luxurious specifications is high.

    This fact should however be made clear by developers to prospective buyers. Paying a high maintenance of Rs 2 psf, is not practical for a buyer of affordable home in the range of Rs 30 lakh to Rs 50 lakh, as he has to budget for the EMI and doesn't expect high monthly maintenance cost.

There is a clear-cut consensus among realty experts that any property, howsoever magnificently built, will deteriorate and lose its grandeur if it is not maintained with the requisite expertise.

    A building managed by a reputed property manager helps enhance the company's image and gives it an edge in marketing its properties, especially under the present tight market conditions where people seek better value for money that they are investing.

   Professional services and maintenance can always be achieved by hiring good vendors, Jindal feels. Talking about cooperative societies, marketing professional and social worker of East Delhi, Pavan Dhir says [] that there is an attitude of indifference or lack of consensus on matters related to maintenance of the society, resulting in delays in decisions on building repairs, renovations and so on. A professional approach and outsourcing of property management helps carry out the jobs in time and also check deterioration of the structure.

    It is learnt that there are a few international players in this business, like Knight Frank, Brooke Insignia, CB Richard Ellis and Sodexo. The few Indian companies that match these big names are IPM & SL, Radhakrishna Hospitality; etc Richard Ellis manages properties measuring over 10.8 million square feet in India. In Chennai, they manage 1.3 million square feet at Tidal Park, another 3.75 lakh square feet at Raheja Towers, and 68,000 square feet at ITC Centre.
   Alimuddin Rafi Ahmed, CMD of ILD Group, says that unlike in the west, professional facilities management of buildings is a new concept in India."I sincerely feel that after developers construct and sell their products to customers, experts should be given the responsibility of managing the properties. They will always do a better job."

   Sanjay Khanna is of the view that builders should give utmost priority to the affairs of the clients even after sealing the deal with them .It is better for them to create a dedicated department that only looks after the upkeep of the building of their clients, he says.


Courtesy: - Times Property - dt-11-12-2010

Big names have suddenly cropped up along the real estate landscape - be it Tatas (Tata Housing),Godrej (Godrej Properties),Oberoi Group (Oberoi Realty),Hero Honda Group (Arrow Infratech), Essel (Suncity),Jaypee (Jaypee Greens),Paras (Paras Buildtech) – nobody ,it seems, wants to be left behind in grabbing a share of the attractive real estate pie.

  They all agree that the sector is disorganized, perhaps plagued with more issues than any other industry; but none seem deterred by the challenges. In fact, they seem ready to unleash the 'huge opportunity' that the realty sector can offer, given a combination of demand-supply mismatch in housing and a lack of quality real estate in all segments along with enchasing on their brand name and an existing customer base, which is brand loyal.

  Take a look at Tata Housing. Their Raisina Residency was completely sold out and some investors confess that they did not even wait to see the layout plan. Ask any professional, and they say the name of a credible corporate house wins favour with them hands down vis-a vis a project by a private developer. Says Sumit Sethi, a Gurgaon based banker ,"There is a stamp of credibility if a good corporate name is associated with the project. To an investor like me, It gives an assurance about everything - right from project execution to quality of construction and timely delivery to clearances being in place. The fact is there is a lot of money involved in a real estate investment and it involves a huge risk, so the realty firm with a corporate brand makes it worth the while to take a calculated risk."

  At the recently launched Godrej Frontier, the firm managed to sell over 200 apartments within two days of launch, even though it was not officially announced. Investors were not deterred by the fact that it is close to Manesar and is the group's first project in northern India.

  So, do the corporate have an edge over other individual players in having better branding and marketability, understanding of consumer needs and preferences According to a Godrej spokesman, "The major advantage of being a corporate real estate developer is the brand name - the brand is instantly recognized even when the company undertakes projects in new markets. Most developers have a regional setup while a company follows customer-centric approach and even ropes in international architects and brings in newer designs. Typically, a company then ties up with reputed construction companies like L&T, thereby ensuring superior project quality and on-time delivery."

  Godrej Properties started operations in 1990 and its first project was Godrej Eden woods in Thane. Subsequently, it developed projects at Worli sea face, Kalyan, Panvel, etc. Now, the company is doing large projects and has a presence in 11 cities across India. According to Milind  Korde, managing director of Godrej Properties Ltd, "The company uses the joint venture (JV) model of development. This is an asset light model where a certain portion of the land cost is given as an advance to the landowner and the arrangement is either area sharing or revenue sharing or profit sharing."Even in the Godrej Frontier project in Sector 80 in Gurgaon, the Godrej Properties' joint venture partner for this project is M/s Frontier Home Developers Pvt. Ltd.

  Their focus is on medium to high-end residential properties. Some of the key projects of Godrej Properties include Planet Godrej, Mahalaxmi, Mumbai (a premium high-rise residential project located in Mahalaxmi, Mumbai),Godrej Woodsman Estate (Bangalore) and Godrej Prakriti (Kolkata).Godrej Garden City is a 250-acre township planned in Ahmedabad. Besides, there is Godrej Avalon at Mangalore, a high-end residential project spread over 6 acres, which will have three 23-storey towers offering 3 and 4BHK luxurious apartments with panoramic view of the city, the surrounding valley, and the sea. The Godrej Group has several land assets across India and there will be arrangements as and when they get ready for development. Currently, the company has signed a JV for developing 35 acres in Vikhroli. This will be a mixed use development. One thing common to corporate developers is they are all seen taking the JV route. Many a time, there is an inherent advantage in tying up with a local developer who can consolidate land banks, get clearances and as a real estate broker says, "get the dirty work done". For a local developer, they derive mileage from their association with a big brand player. Essel Group's real estate division, Sun City, recently developed condominiums in Gurgaon in collaboration with a local player ABW.

  The expectation of an investor or an end user is pretty high when a corporate name is associated with a real estate project. According to Brotin Banerjee, MD and CEO, Tata Housing Development Co Ltd, "As a corporate real estate developer of choice we work extremely hard to win over our consumers in delivering products with design excellence not only in aesthetics but also functionality. We have an approach that is customer-focused and customer-centered. Every residential or commercial premise is created o the basis of a thorough understanding of the stated and unstated consumer needs, which are obtained through a concentrated and focused consumer and market research. All our projects have been conceptualized and designed on the basis of a theme or concept, which is driven by consumer insights. We have an increased commitment to environmental stewardship and conservation that results in an optimal balance in terms of cost, environmental, societal, and human benefits while meeting the mission and function of the intended facility or infrastructure. All of Tata Housing's projects are green-building initiatives constructed and designed under the guidelines of the Indian Green Building Council (IGBC) and certified for Leadership in Energy and Environment Design (LEED) to positively contribute to the environment, like 'Xylem', Bangalore's first LEED Gold Rated Green Building; Aquila Heights, the first in India to be honoured with the AAA+ Certification by Construction Industry Development Council (CIDC) and Construction Quality Rating Agency (CQRA),which benchmarks construction quality levels."

Talking about the huge opportunity that the real estate sector offers, Brotin Banerjee says: "The opportunity presented by the Indian real estate industry is extremely large. There is immense potential in this sector due to the shortage of housing units, estimated at nearly 26.53 million and the contribution of this sector to India's GDP is 8%."However he voices concern that "the real estate sector is predominantly unorganized in nature. Most of the developers have scattered and fragmented local or regional presence. Further, the lack of a common regulatory authority increases the hurdles faced by developers and consumers."

Courtesy:- ET  REALTY - dt-10-12-2010
 

Imagine for a moment that you are attending a marriage party or a big birthday bash inside a shopping mall. Did you ever hear of such a scenario earlier Perhaps, not! But, just wait for the time when you get an invitation for weddings, family get-togethers, birthdays, Xmas parties, or other such social dos in malls - maybe, you too would end up inviting people to attend your own private bash there someday! While this is a novelty, the trend is fast catching up across the metros.
While the capital will soon find a mall with a huge banquet hall inside, residents of other cities will not have to wait long to see the same kind of malls with banquet halls.
"It is good that realty firms are reinventing and redefining fast and giving space for banquet halls inside malls as well, "says Devinder Gupta, CMD of Century 21, adding,"We all know that except for a few malls all of them have been facing a severe crunch in footfalls. Hence, they have to make some additions so that people still visit them in a big way."
Talking about Delhi, it will soon see a mall with a big banquet hall, which will be able to host big parties with a capacity to accommodate up to 1,000-plus guests. Sanjay Khanna, director of Kailashnath Projects Pvt Ltd, says: "After a lot of consultations and market survey, we thought that if we give 
space for banquet hall in our mall, it would be a first in India and it would create tremendous amount of curiosity among all the stakeholders on the realty sector."This firm is on the final leg of construction of a mall with banquet hall, Ivory Towers, in West Delhi.
Sudhir Mathur, strategic adviser of Kailashnath, says that their strategy started paying dividends even when their project was at a nascent stage, in the sense that many big-ticket players of banquet business have started making inquiries in order to book space there."They have finally zeroed on Tivoli Garden to start their business there as they are very formidable brand, "Mathur says.
PVR Ltd is about to start a new innings in the world of consumer entertainment - it certainly is no laggard when it comes to writing a new grammar for malls in India. It is likely that PVR will open the first of its 'Entertainment City' malls featuring an Olympic-size ice skating rink, a 24-28 lane bowling alley, food courts, micro brewery based 'Beer Island' and a medley of food kiosks next year.
PVR plans to introduce this format in other cities like Hyderabad,
Bangalore, Chandigarh, Pune as well as in all the major cities of the country. In a recent interview, Ajay Bijli, CMD of PVR, said they want their malls to be one-stop entertainment centers for consumers.
Realty experts say that as the footfall in malls have seen a steady decline in the recent past, it is very important that the whole business of malls be redefined."I thought that unless you keep on redefining yourself according to the times and needs of your clients, you have no chance to survive in the market, "says Sunil Jindal, CEO of SVP group.
It is clear that malls are putting in a huge effort in arresting the decline in footfalls. Both shopping malls and retailers are going all out to attract the maximum footfalls via exciting combinations of innovative marketing schemes and themes. Malls have increased their marketing spend on several novel themes for shoppers, accompanied by retailers offering bumper schemes across product categories with exciting price points and attractive festive packs. To own up, franchisee malls are facing fierce competition this time of the year! While DLF Promenade celebrated 'Festival of Happiness' till recently, Select City walk (Saket) organized Diwali Bazaar.DLF 
Promenade held a 24-hour sale on October 30-31 with a "Free Women Pamper Zone "thrown in for good measure. Pushpa Bector, VP of DLF Promenade, says: "We bring for our women shoppers the opportunity to indulge themselves; those who shop for more than Rs 5,000 will get a free entry into The Pamper Zone at The Dome.Pamper Zone will have free services like Makeovers, Tattoo Zone, Hair Beading, Spa, among others."There is also a Jewellery Exhibition through which DLF Promenade brings to you a uniquely designed exhibition, Riwaaz 2010,where all the wedding related products and services are displayed at one place and people can buy products across categories like apparel, jewellery, accessories, cosmetics, according to their requirement, taste and needs. In a nutshell, it can safely be said that all the stakeholders of mall business are making efforts in their own way to make malls still relevant.
 "I know that mall owners have hiked their marketing budgets and have announced big offers based on events, fun activities and incentive schemes so that they get a good number of people on a regular basis, "says Nuzhat Alim, marketing director of ILD group, which has a mall in Gurgaon.
Anyway, there is a strong possibility that with a lot of new and innovative efforts, malls attract lovers of shopping and also happy baratis.

Courtesy:- ET REALTY dt-10-12-2010

Courtesy:- ET REALTY dt-10-12-2010

Finally, Delhi Development Authority has announced what everyone has been waiting for. Its mega housing scheme will be open from November 25 to December 24 this year. Around 16,000 flats will be offered for the draw. These are located all have Delhi in colonies like Vasant Kunj, Mukherjee Nagar, motia khan, Jasola, Dwarka, Rohini, Narela, Jaffarabad, Kondli and Gharoli besides other colonies.

The cost of construction of these flats ranges from Rs 1536 to Rs 6069 per square feet. The flats located at Vasant Kunj, which have been built according to higher specifications, will attract a higher price. The cost for the new scheme flats includes lumpsum maintenance charges for exteriors and common portions.

In order to make the flats accessible to all sections or society, there is a mix of one bedroom, two bedroom and three bedroom houses, expandable units and Janta one room houses. It is for the first time that the one-room tenements located in Narela, Trilokpuri and shivaji enclave have been included in the scheme.

Any Indian citizen who has attained the age of 18 years can apply for the flat provided he or she does not own any residential flat or plot in full or in part, on leasehold or freehold basis, in the capital either in his or her own name or in the name of his/her wife/husband or in the name of minor or dependent children.

Both husband and wife can apply but only one will be allotted a flat n case both are successful in the draw. One person can submit only one application form. There are no income criteria. The applicant can apply only if he has a valid pan card and a bank account.

For the first time, it has been made mandatory that the entire allotment money should be from the bank account of the allottee and a certificate to this effect will have to be submitted at the time of possession.

The applicant will have to deposit a registration fee of Rs 1.5 lakh. But for the Janta one-room tenement category, the amount is Rs 50,000. The cost of the form is Rs 105 and it will be available at various designated branches of the banks. The form details which have been provided in the brochure will be uploaded on the website of DDA on November 25.

The reservations for scheduled castes will be 17%, scheduled tribes 7.5%, one per cent for war widow, one percent for the physically handicapped and one percent for ex-serviceman.

Drawing a lesson from last time when the draw came under a cloud, DDA says to ensure that the money is deposited by the allottee only, a copy of the pass book along with bank certificates will have to be given at the time of possession and it will also be sent to the income-tax department by DDA.

The draw will be held within a period of four months from the last date of closure of the scheme and, therefore, no interest will be paid for this period. Money will be refunded to unsuccessful applicants at the earliest, and in case the money is not refunded within four months time from the closure of the scheme, simple interest at the rate f 5% per annum will be paid. The refund as in the earlier scheme will be paid though the banks only.

Courtesy – Times of India – Dt. – 20-11-2010

TDI has opened bookings of Tuscan Heights Phase-II with 250 apartments following overwhelming response of Tuscan Heights Phase-I project at Kundli. Rajarshi Bhattacharjee reports

As the real estate sector in NCR is in full infrastructure limited has more than just pocket friendly price to offer with its strategically located project at Kundli. After an overwhelming response for Tuscan Heights Phase-I, TDI has introduced Tuscan Heights Phase-II where luxury meets affordability.

A part of sprawling 53-acre Tuscan city. Tuscan Heights Phase-II is located at TDI city at Kundli. Nestled right beside the NH1 in a clean-green ambience, it is 15 minutes signal free drive away from up market residential hubs of north and North West Delhi. For it s strategic location on the border of Delhi along NH1, Kundli is considered the gate way to prosperous states like Haryana, Punjab and Himachal Pradesh.

Uniqueness of the location and land rates has also made this fast developing city an ideal destination for investment. Apart from the third existing industrial zones nearby – HSIIDC, Kundli industrial Area (KIA) and Rai Industrial Area (RAI), the growing industrial and business zones here are likely to generate significant job opportunities, Tuscan Heights also boasts of having the upcoming 5000-acre Rajiv Ghandi Education City in its proximity that is likely to emerge as a global academic hub. Top universities from around the world and a number of their Indian counterparts have already expressed interest to be a part of the Rajiv Gandhi Education City at Kundli.

On the other hand, land rates at Kundli are presently one-tenth of what these are in up market residential areas of North Delhi viz Pitampura. Rohini etc. , which is an opportunity for both customers and investors. Appreciation of value is also estimated to be significantly high considering the planned development and investment prospects here. When TDI city was launched four year back, land rates  Kundli was Rs 4,750 (approx Rs 5,000) per sw. yds at TDI City. Today it stands at close to Rs 25,000 per yads. Rate has per sq. yds. This Rs. 25,000 per yds. Rate has potential to further appreciate manifolds in near future.

In lines with the first phase, Tuscan Heights Phase – II is designed to offer the look and feel of Tuscany in Italy, which with its capital Florence is considered as the birthplace of Italian renaissance. A typical Tuscan village is synonymous with the landscape dotted with heritage architecture, pebbled pathways, ornamental street lamps and railings, fine cuisine, exquisite red wine, along with music, opera and much more.

Reliving the charm of Tuscany, this township too will have classical fountains, water bodies, cobbled pavements and a central plaza, which is a public square in an Italian town. The whole place will have arches as motifs and the developers promise world-class amenities with professional maintenance facilities, as designed by famed architects HO Partner, Hong Kong.
Kamal Taneja, managing director. TDI infrastructure limited says,”A part from being a business destination, Kundli has evolved to be a fantastic place to live at. Considering the strategic location and appreciation of value at Tuscan Heights or aim is to provide high quality and international flavor in architecture, integrated in a township with world class infrastructure and amenities. The USP of Tuscan Heights is luxury within your budge.”
The other social infrastructure adjacent to Tuscan Heights include TDI mall, Oxford Street, Kings street to name a few, for shopping and entertainment, state-of-the-art hospital and healthcare facilities, primary and high  schools, a health club, temple, among others.

But to make it within the reach of all pockets, Tuscan Heights offering 2 BHK, 3 BHK and 3 BHK+ study are priced at Rs 2175 per sq. fts. If that is not all, TDI infrastructure Limited is also offering exciting schemes like assured gifts like televisions, air conditioners, food processors, holiday packages for couples to Thailand, Dubai Singapore with each booking till 15th December 2010.

Courtesy – ET Realty 19-11-2010

M3M Golf Estate, a project of the M3M Group, was launched on October 22 in one of the poshest parts of Gurgaon — Golf Course Extension Road, in Sector 65. This flagship project of the M3M Group also enjoys the advantage of connectivity and is close to the Indira Gandhi International Airport. Spread over 75 acres, M3M Golf Estate boasts of ultra luxury apartments built around a 9-hole reversible ‘in-city’ golf course designed by world famous architect, Graham Cooke.

Basant Bansal, chairman and managing director of M3M Group, planned the project round the concept of an exotic vacation resort, which can be snapped up by prospective end users looking for an ultra luxury living in the middle of an urban setting.

Boasting of state-of-the-art apartments, modern amenities and an aesthetically designed golf course, the project will feature luxurious outdoor and indoor living spaces, state-of-the-art kitchens replete with fittings and high-end fixtures, Wi-Fi in all buildings, roof-top jogging tracks and a world-class club house.

Basant Bansal says: ?We have also started the internationally accepted style of the escrow-account system, which ensures proper funding and timely delivery of the project. We have engaged the best architects and interior decorators in the world for this project. The M3M Group will change the way the metro-centric Indians live.?

Golf Estate provides a luxury option for the ever growing community of expats, corporate honchos and HNIs in the region.

Bansal adds: ?We are proud to announce the launch of M3M Golf Estate, India?s first 7-star residences, in Gurgaon on October 22. This is a one of its kind project in the region and provides an ultra luxury living option; we have received appreciation from across the world for Golf Estate. The project will redefine luxury, art and architecture.

The project has been designed keeping in mind the taste, the class and the requirements of our target audience.?

Bansal say: ?The launch of M3M Golf Estate will add to the luxury quotient in the developing real estate market, especially in Delhi and the NCR region. We plan to add further projects across India in the coming months.? The project has received awards internationally as the ?Best Upcoming Golfing Lifestyle Residences in India? in the US, the UK and Dubai.

The project has been designed by the renowned architects and design group, Arcop Group, from Montreal, Canada. The interiors of the Golf Estate buildings have been designed by Cecconi Simone Inc.

?The company has gained over 25 years of real estate expertise with diverse and complementary talents from a rich network comprising top-notch intermediaries, financial institutions, high net worth individuals and some of the most reputed developers in India. Our Golf Estate project is valued at over $1.5 billion. M3M Group has already embarked on other verticals in the commercial and retail space as well as the IT/SEZ areas,? Bansal adds.

Times Property ? Dt- 13-11-2010

RBI’s new measures are likely to prevent a real estate bubble and help home buyers, says Vandana Ramnani

Sanjay Modi and Bhaskar Roy, Both IT professionals, have been looking for homes that suit their Rs. 40 lakh budget. They have scouted markets such as the Noida Expressway, Indirapuram, Vaishali and even Gurgaon, but have not been sure enough to zero in on a property of their choice. And right in the middle of their hunt, the Reserve Bank of India (RBI) unveiled its second quarter review of monetary policy last week, making norms for housing loans more stringent, aiming to curb excessive borrowing. It is estimated that property prices in most metros have already touched pre-slowdown levels. The average rise in property prices this year (from January 1 till today) is as high as 30% in some markets. So, how will the apex bank?s recent announcements impact Modi and Roy?

As per the new norms, buying a home will became expensive for those who are totally dependent on a bank loan. So, its time you saved up before going in for a home or a loan. Buyers can now avail only 80% of the value of the house from a bank and will have to arrange for the remaining 20% on their homes. So, if their budget is Rs. 40 lakh, the maximum loan they can be granted by the bank is Rs. 32lakh ? much less than the almost 90% loan being sanctioned by some banks. This measure is intended to check overheating in the property market and the immediate reason seems to be the 10-90% scheme wherein the home buyer has to pay only 10% of the property value upfront as booking amount and 5% on possession. It is a preemptive measure to rein in inflation and prevent an asset bubble in real estate.

Economic growth and favourable macroeconomic factors have so far been sending the real estate sector into overdrive. In most cities, property prices have gone beyond the consumer?s reach and investor driven speculative activity has resumed. Says Sachin Sandhir, managing director and country head, RICS (Royal Institution of Chartered Surveyors), India,?These ?short-sighted? moves have proved detrimental in the past and have once again reared their ?ugly head? and? could undoubtedly affect the overall health of the market. These ?pre-emptive? measures by the RBI are in anticipation of another property bubble being created as a result of increased domestic inflows in the real estate sector which have been driving property prices to new high in major markets over the last few months.?

The fact that banks will now provide only 80% of the loan is a good guideline as this will ensure that only serious home buyers with borrowing credibility make a real estate purchase by availing a home loan. This will reduce risk in the system and control an asset bubble. People may have to put in additional finances but in the loan run it will ensure health in the financial system and reduce speculation, points out Adhil, CEO and founder, BandBazaar.com

In its review of the monetary policy, the RBI has made its unease with the special rates or the teaser home loan rates scheme official. These loans are offered at a discount of the first few years to entice customers, after which the rates go up. To discourage teaser loans, the RBI has increased the provisioning for such loans from 0.4% to 2%. This means that for all outstanding teaser home loans, banks will now have to set aside as a cushion a onetime additional standard provision of 1.60% and in the future account for this additional standard provisioning norm if they decide to continue with the teaser rate scheme. Such schemes present a high risk to banks as borrowers are likely to default/find it difficult to service their loans in the loan term when the prevailing-normal rate of interest becomes applicable. The move by the RBI will now force banks to rethink their strategy with respect to such product, given the extra associated costs.

According to shetty of Bankbazar.com, if the buyer decides to go in for a house now, he could be in position to cash in on the teaser rate schemes till they exist. However, buyers should look beyond the low rate being offered for the first three years as they will be paying interest for the next 20 years (the average life of a home loan).?My advice is that for every loan, calculate the total cost. Second, take your expected EMI payment over the lifetime of the loan and add the processing cost to that. With that you will arrive at the total coat of the loan. As far as teaser rates are concerned, what matters is what you pay from the fourth year onwards up to the 20th year. Customers should go for a home now as rates are headed upwards, says Shetty.?

Loans above Rs. 75 lakh made expensive

The apex bank has also increased the risk weight on housing loans of Rs. 75 lakh. The rise in interest rates on large-ticket loans is expected to be higher given the increased risk weight in the segment. This could help moderate the demand for loans of above Rs. 75 lakh and control overheating in the property market. ?The risk weight age for such loans has been increased since there tends to be more volatility in prices for higher value loans and there is a large speculative element. This well makes it more expensive for the buyer and hence it?s a good step, ?points out Harsh Roongta, CEO of apnapaisa.ocm

The apex bank has also increased the risk weight on housing loans of Rs. 75 lakh. The rise in interest rates on large-ticket loans is expected to be higher given the increased risk weight in the segment. This could help moderate the demand for loans of above Rs. 75 lakh and control overheating in the property market. ?The risk weight age for such loans has been increased since there tends to be more volatility in prices for higher value loans and there is a large speculative element. This well makes it more expensive for the buyer and hence it?s a good step, ?points out Harsh Roongta, CEO of apnapaisa.ocm

It is also worth pointing out that last week the National Housing Bank, regulator for the housing finance companies, has issued guidelines on the issue of pre-payment charges to housing finance companies such as HDFC, LIC housing and Dewan housing. They have been asked not to charge loan prepayment charges if the payment is made out of the customer?s own source of funds.

The impact on home buyers

The RBI measures will largely work in favour of the homebuyer as they will go a long way in controlling the spiralling real estate prices. The buyer can look forward to a stable price regime going forward, point out realty experts.

The macroeconomic environment is changing and GDP growth is on expected lines, which means that the disposable incomes are bound to rise and jobs will continue to grow. The rbi recognizes the fact that prices have run up sharply in the last one year, not necessarily backed by fundamental and user demand. These proactive measures will ensure that there is stable and steady growth in property prices (not more than 5-10%). ?Going forward,? the end user will have many housing options before him and price stability will ensure that he gets reasonably good value for his money because prices are not likely to rise any further. This is the right time to exercise your choice, ?advises Priyankar Bhikshu of DTZ research India.

Even if interest rates were to move up slightly, demand may not be impacted as in case of residential property for self-use, the price of the property is a bigger determinant than interest rates.

?Interest rates would hardly dictate the timing of the buy. Advice to customers is that they may still get a good deal. It makes sense to buy now if the intention is to buy for self use. Delaying your decision will not make sense,? adds Roongta.

Courtesy HT estates Dtd :-13/11/2010

Builder flat

A buyer must thoroughly check all related documents before buying this asset

As prices of single unit houses climb prohibitively higher, more and more people are opting to buy builder flats, both in Delhi as well as in the surrounding NCR area. Builder flats are easily available, and according to real estate market watchers, this year their sales have gone up 20-25% compared to the same period last year, their prices have also risen 10-20% depending on the type of flat and area where it is situated.

It is essential that buyer?s property check the property papers before purchasing the flat so that they face no problems later. It is always advisable to buy a flat constructed by a reputable builder. Better still, by from a builder who has been in the construction business for a considerable period of time. The buyer checks the previous projects of the builder and the visit one or two to judge the quality of work. This also gives the buyer a chance to speak to others who have bought flats constructed by the builder and get feedback about their experience. However, good quality flats are made by lesser known builder as well.

Builder flats are available in various categories, including those which are ready to move in, or are under construction and others that have to be booked before the construction work has begun. Obviously, the best option is to buy flats that are ready since this gives you a chance to see what you are buying. Flats that are still under construction carry the risk of completion being delayed (though most reputed builder generally do not delay projects).

When booking a flat, buyer?s punctuality in delivering flats to avoid blocking of the booking amount. The easiest way to do so is by the builder?s earlier projects and his delivery history. Property papers that need to be checked include ownership papers. Check the entire chain of ownership of the plot right from the time the plot was allotted or purchased by the first owner, till the time it was bought by the builder. Many builders make an out-right purchase of the plot and the sale deed can be viewed.

Others might build flats in collaboration with either the owner of the plot or another party. In this case, the collaboration agreement should be checked to ensure the builder actually has the rights to sell the flat. Check the terms and conditions of the agreement. Says Anil Kumar, based on Malviya Nagar, who runs GMR Construction and has been in the business for over 12 years, property ownership papers should definitely be checked for ownership.

Also check that the building plans for the property have the requisite sanction from competent authorities and the flat conforms to those plans. Ideally, get a copy of the completion certificate issued by the local civic agency. Beware, however, that many builders do not bother to get a completion certificate.

Additionally, a copy of the forms relating to electrical conduiting, and sanitation lines should also be obtained.

Others papers that need to be checked include property tax papers. Electricity and water connection arrangement ought to be checked to make sure separate meters for each flat have been installed.

Gurgaon-based Captain Manpreet Singh Chawla of Amarveer, a realty company, says it is vital that buyers get the property papers checked by a lawyer or a reputed property agent who can verify the authenticity of the documents. The fee required to get this done is hardly anything compared to the lakhs or even crores of rupees one is spending on the builder flat. Do not accept the papers? authenticity at face value. Check it meticulously.

Courtesy by : ht estates Dtd :-13/11/2010

Home hunters are in a spot. While real estate prices are not showing any signs of easing (in fact, they have started hardening again), the Reserve bank (RBI) has chosen to tighten a few norms for home loans, adding to borrowers’ woes. In its recent policy review, RBI has taken three steps that will adversely impact prospective homebuyers who are dependent on home loans. To begin with, the loan-to-value ratio has been lowered to 80% from 85%. This means that you can borrow only up to 80% of the value of the property that you plan to purchase. The remaining 20% has to be funded out of your own/family savings. Secondly, RBI has also increased the standard asset provisioning requirements to 2% for all the teaser rates offered by scheduled commercial banks.

Teaser loan rates typically offer loans at a fixed rate for the first three years and then move on to the floating rate. The fixed rate is as low as 8.9%, which is fairly insulated from the rate swings at least in the first three years. These loans were a boon to customers who typically finish their repayment within 5-7 years. RBI’s stance on this issue is; this practice raises concern as some borrowers may find it difficult to service the loans once the normal interest rate, which is higher than the rate applicable in the initial years, becomes effective. ”The central bank has also noted that at the time of initial loan appraisal, many banks do not take into account the repaying capacity of the borrower at the normal lending rates. This is the reason why the central bank has increased the risk weight for residential housing loans, of Rs.75 lakh and above, to 125%.

Impact Of Stricter Norms: Even as banks, developers and housing finance companies are in the process of digesting these measures, financial advisors have welcomed these steps, saying the customers will now have to take more prudent financial decisions. “Homebuyers often overshoot their budget aspiring for a bigger house. They bank on their future salary hikes and borrow up to even 80% of their take-home salary. In terms of financial planning, these measures are to be lauded. Also, every borrower should examine his repaying capacity rather than his loan eligibility,” says Pankaj Mathpal, a Mumbai- based certified financial planner.

The measure, which has a direct impact on homebuyers, is the low loan-to value ratio. Earlier, on a Rs.50 lakh or even more in certain cases. As per the new stipulation, you will have been eligible to borrow Rs. 42.5 lakh or even more in certain cases. As per the new stipulations, you will be eligible to apply only for a loan of Rs. 40 lakh. “Certain Southeast Asian Economies such as Thailand and Singapore started regulating loan-to-value ratios because of an asset bubble in the real estate market. The RBI is anticipating a similar situation here. There is no way a borrower can mitigate the impact of lover LTV. But this regulation has been introduced only in his/her interest,” says Harsh Roongta, CEO, Apnapaisa.com.
Amar pandit, certified financial planner, My Financial Advisor, add, “Clearly there is an asset bubble and the property market, especially in the metros, is overheated. Hence, RBI is justified in protecting home loan borrowers. It wants to avoid a scenario where over leveraged borrowers may be staring at lower security cover if the property prices start falling.”

Let us assume you have borrowed Rs.90 for a property valued at Rs100. While you are repaying the loan, if the property value dips to Rs80 at any point of time, banks can ask for additional collateral. This is because they should have lent only Rs 72 as per loan-to-value ratio. At this point of time, you have to provide additional collateral or pay the extra margin money. If you are not in a position to pay up the extra cash/collateral, the bank can categorise you as a defaulter. This is clearly mentioned in the home loan agreement.
Should You Wait ‘N’ Watch? : Things will not change from the regulators’ perspective. The lover loan-to-value ratio is here to stay. But certain pockets in metros such as Mumbai, Delhi and Bangalore can see a modest correction; hence a prospective homebuyer can wait to clinch a more affordable deal.”Certain builders, who are able to hold on to their flats to avoid selling at lower prices, will try to create an artificial supply shortage. Smaller builders will not be able to withdraw from the market on a sustained basis. These new regulations are not going to chance either. Hence, I would advice homebuyers to wait until some clarity emerges,” Pandit adds.

Save For Sown Payment Now: Buying a house cannot be an overnight exercise. If you are planning to postpone your home purchase, use this time to systematically cough up some funds for down payment. Maneesh Joshi, a Mumbai-based creative director, has been saving in three SIPs (systematic investment plans) worth Rs. 20,000 since 2006. He also deposits Rs 60,000 in mutual funds once in six months, which is dedicated for the purchase of the house. “The main objective of these SIPs is to buy a house. I am not looking at other goals rainy days. My profession is very volatile in nature. So I have to keep a contingency fund,” says Mr. Joshi. He has an in- principle approved home loan of Rs. 70 lakh. Still he hasn’t rushed into buying a property. He wants to cough up Rs. 15-20 lakh for the down payment.

Go For Joint Home Loans: It’s the best way to share the loan burden, especially in case of working couples. This trend is already picking up in metro such as Mumbai, Delhi or Bangalore due to spiraling of real estate prices. a joint housing loan comes with a number of advantages such as bigger loan amount, higher tax benefits and so on. To avail tax benefits, both the borrowers have to be co-owners. Co-borrowers, who are also co-owners, are eligible for tax rebate in the proportion of their share in the loan. It means, you have to consider the repayment capacity of each spouse while deciding the share of the loan. So, a couple can be equal owners but if their share of the loan is in the ratio of 60:40, the tax benefits will be shared in the proportion.”You have to get a break-up of share of the loan on a stamp paper at the beginning itself to avoid tax complication,” says Vaibhav Sankla, executive director, Adroit. The maximum tax deduction available for a single borrower is Rs 1.5 lakh. This deduction will apply to each borrow, taking the total possible deduction to Rs 3 lakh. But a word of caution here. Before you decide on shouldering such huge loans together, it is better you do some self-evaluation. “Don’t borrow up to the maximum limit as a percentage of your income. You should keep aside some contingency funds and investments which will come in handy in case of unforeseen emergencies such as job loss, forced sabbatical or even a family. Hence, single borrowers should not stretch their housing loan EMIs beyond 40% and double borrowers beyond 50% of their take home salary, “Suresh Sadagopan, a certified financial planner adds.

Courtesy HT estates Dtd :- 11-11-2010

The concept of affordable housing is a gift of the downturn. Like it is said. ‘Sweet are the uses of adversity.’ While at no time is an economic downturn useful or welcome, the 2008 recession gave those looking for homes in the Rs 20 to Rs 35 lakh segment something to cheer; The lack of activity in the midrange segment led many developers to venture into the affordable homes market. The result is a concept here to stay. Affordable homes typically combine the best of both worlds to the extent possible. The carpet area is relatively smaller but many of the other basic amenities are offered. This is possible due to the relatively lower land costs at locations these projects are developed in – invariably in the suburbs. Land forms a large chunk of an apartment’s cost and when this cost is low, the apartment can be sold for a much lower price tag. This is also the reason why an apartment in the core city areas is expensive even if the carpet area is lesser too. The largest buyer base for affordable homes is the salaried segment and the individual entrepreneurs running small business setups. As the number of nuclear families increases, the demand for affordable homes too goes up. Though a new phenomenon in the city this market segment has already indicated that it holds huge potential for developers as well as investors.

Location and connectivity,

A unique aspect of an affordable homes project is its relative price advantage in the near term. As connectivity improves thanks to the many road development projects or the Metro Rail, the neighbourhood will have more residential and commercial projects being developed. This in turn will lead to a market for social infrastructure. It will then not be long before the locality turns into a self sufficient neighbourhood and prices escalate with more demand for property. Then, the erstwhile affordable homes project will command a much higher price. Those who, in this context, buy an affordable home early, are holding a good investment too, that will earn them handsome capital gains in a matter of time.

Base for second home

The capital gains the home earns over time helps those looking for a bigger property in a matter of time. Liquidating or mortgaging it helps in making a down payment for the second home comfortably. In the current times, an affordable homes project serves as an efficient hedge against inflation.

Temporary option

For young couples relocating to the city for a job, or for those looking at setting up home after marriage, this is a viable temporary option ? for those who plan for a larger accommodation later on this saves on rent while developing a corpus alongside. Also, given the tax advantage on home loans, it is an ideal option for an interim period before the combined earnings afford them a bigger home.

Investment angle

Affordable homes serve as good investment options for property investors who don?t have a large budget. It is easy to find a tenant as the rental will also be relatively lower. The capital appreciation, especially in emerging localities, will be sharp. Property investors now have the option of investing in a mid-range home in the city and a budget home project on the outskirts, across long and medium term horizons.

A credit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A prospective borrower has to go through the various stages of the credit appraisal process of the bank. Each bank has its own criteria to satisfy itself on the credit worthiness of the borrower. The eligibility for the loan that a person can get depends on his credit worthiness, determined in terms of the norms and standards to the bank. Being a crucial step in the loan process, a borrower needs to be careful in planning his financing modes. The credit worthiness, basically, assures the repayment capacity of the borrower whether the borrower is capable of repaying the loan and dues on time.

Broadly, the information collected is on these aspects: Incomes of the applicant and co-applicant Age of applicants qualifications family details nature of profession experience employer security of tenure tax history assets owned and their financing patterns additional sources of income past loan record, if any recurring liabilities investments other present and expected liabilities

The norms differ from bank to bank. Each has certain norms within which a prospective borrower needs to fit to be eligible of the loan. Based on these parameters, the maximum amount eligible is worked out.

Installment-to-income ratio

A bank applies the installment-to-income ratio(IIR). This helps in finding the loan eligibility of the applicant. It is generally expressed as a percentage. This percentage denotes a portion of the monthly instalment on the home loan taken. Usually, the banks fix 33.33% to 40% as the ratio. It is assumed that in normal circumstances, a person can pay an installment up to 33.33% to 40% of his salary. For example; Assume the IIR is 33.33% and the gross income is Rs. 30,000 per month. According to the IIR ratio, the applicant is eligible for a loan where the installment does not exceed Rs 10,000 per month.

Fixed obligation to income ratio

Banks also calculated the eligibility based on the fixed obligation to income ratio (FOIR). Here, a bank takes into account the installments of all other loans already availed of by the applicant and still due, including the home loan applied for. This ratio includes all the fixed obligations that a borrower is supposed to meet regularly on a monthly basis.

The fixed obligations do not include statutory deductions from the salary such as Provident Fund, professional tax and deductions for investments such as insurance or a recurring deposit. For example, assume the income is Rs.30, 000 per month, there is a car loan installment of Rs. 4,000 a TV loan installment of Rs 1,000 and the proposed housing loan installment is Rs 10,000.

Accordingly; the FOIR is 50 percent - -50 percent of the monthly income. The bank may have a standard of 40 percent of FOIR. So, the total installments the person can pay, as per the bank?s FOIR standard is Rs. 12,000 per month. As he is already paying Rs. 5,000 towards the car and TV loans, he has Rs 7,000 left and the loan eligibility is taken as Rs 7000 per month as the basis of housing loan repayment capacity of the customer. Thus, a backward calculation of the repayment capacity is made to find out the amount to be given as loan.

Loan-to-cost ratio

A bank also computers eligibility on the basis of a loan-to-cost ratio (LCR). This ratio is used to calculate the loan amount that an applicant is eligible for on the basis of the total cost of the property. This sets the upper limit or the maximum loan amount that a person is eligible for irrespective of the loan eligibility under other criteria. The maximum amount of loan eligible is pegged to the cost or value of the property. While the loan eligibility as per the other parameters may be higher, the loan amount can?t exceed the cost or value of the property. The ratio varies between 70 to 90 percent of the registered value of the property. Loan eligibility is computed on the basis of these parameters that act as a guide to determine the loan amount. Generally, the lowest of these is taken as the loan amount that the applicant is eligible for.

There are various factors affecting the eligibility for a home loan. Banks have their own parameters and criteria to determine the eligibility and quantum of housing loan. It helps borrower if they are aware of a few of such factors.

Information furnished

To begin with, it is the information on the application form. The information submitted in the application form by the individual is verified from various primary and secondary sources. In case of wrong information or inconsistencies, the loan application is liable to be rejected.

Financial strength

This is an important determinant. The loan eligibility as well as repayment capacity depends on the financial position of the borrower. The financial position of the borrower, his income level, net income, liabilities etc determine the amount of loan he is eligible for. One should have a minimum income level or fixed and certain source of income.

Credit history

The credit history of the borrower also plays an important role. Usually, lenders maintain a database of borrows and verify the credit history to check for previous repayment defaults, even from other lenders. Personal profile The personal profile of an individual is also important. This includes factors like educational qualification, profession, number of dependent, assets owned, liabilities owed, savings history etc. a higher number of dependants or existing liabilities implies lower repayment capacity.

Age

It determines the earning years left for the individual. In case the property is co owned. The co owner cannot be a minor. Also, the co owner cannot be above a certain age limit. The age limits are set to minimize ownership disputes. The age limit also affects the tenure of the home loan, and EMIs. An applicant?s retirement age is also considered. For example, if the applicant is 45 years of age and is set to retire at 60 years, the maximum loan tenure available will be 15 years. Also, in case a bank has 75 year age limit for a co-applicant. If the applicant is 40 years old and the co-applicant is 60 years old, the home loan will be sanctioned for a maximum period of 15 years only.

Attributes of property

Courtesy Tymes Property? 30-10-2010

“Like gold, real estate tends to retain its intrinsic value. On the positive side, unlike gold, it is possible to earn a regular income on it. Depending upon various economic factors, a property owner can increase rent in times of high inflation. Also, real estate is always a good investment option because of the possibility of capital appreciation,” says Shobhit Agarwal, joint MD (capital markets), Jones Lang LaSalle Meghraj.

As inflation is high, the cost of construction is going up. However; in markets like Noida, Noida extension, Greater Noida, Faridabad and Kundli prices are not going up because of oversupply-like situation. But the margin of profit for the builders is getting squeezed. Therefore, consultants say the prices of these apartments will have to preciate, soon, to meet the increased cost. In a way, the prices of apartments have to keep pace with inflation.

As the economy is growing, several companies are expanding in the service and manufacturing sectors, which will directly lead to an increase in employment and the demand for house as well. However; the boom in real estate will depend on the implementation of the projects by developers. As developers are working on a very thin margin, there is an apprehension that there could be a problem in delivery of projects. ?The extent to which one can rely on the professionalism of a developer depends both on the developer?s existing credibility in the market and on the strength of enforcement agencies specific to each state,? Agarwal says, stressing the need for a regulator to bring in transparency in the sector.

?Generally speaking, larger developers are becoming a lot more transparent and professional in their business dealings. There is increased accountability in the organized sectors, brought on by greater awareness among buyers and also increased investments by international investors. However, players in the unorganized parts of the market ? especially those who have a limited number of smaller projects to their name ? are often not subject to the same accountability. Therefore, the safety of an individual real estate investor?s interests in property transaction continues to depend a lot on personal research and understanding of the real estate market, especially in local terms, prior to a purchase, ? Agarwal adds.

Courtesy Times Property? 30-10-2010

Planning a household budget gains more importance when you have a large debt. People, who owe money to others and have other expenses and commitments, can create a budget plan is in place for saving and spending money. With almost 40 percent of monthly income diverted towards a home loan repayment, a budget helps balancing other financial commitments. A budget helps allocate future personal income towards expenses, debt repayment and savings.

Spending pattern

Before crunching numbers in a elaborate worksheet, the first step is to determine your spending pattern. For determining the spending pattern, you must track your expenses over a few months using credit card receipts, bank statements and other bills. Do not forget to include small cash purchases. Categorise the expenses as essential and non-essential. Essential expenses are those that are required for living and cannot be compromised with. Some such expenses are fixed each month like home loan repayment, rent and school fees. Transport, food bills, utility bill and vehicle maintenance are essential expenses that are variable expenses. Identify how much you spend on expenses like snacks, movies, eating out, gifts and parties that can be categorized as non-essential expenses for three months will give you an estimate to work on a comprehensive budget.

Compute income

The next step is to calculate your monthly income taking into account all income sources including rentals and investments. Some people may be drawing pension or getting regular interest or dividend income too. Add all these numbers to arrive at total monthly income.

Allocation

If you can calculate what portion of your income is spent towards every expense, it is easier to track your expenses. Apart from allocating to essential and non-essential expenses, set aside a portion of your income towards cash surplus or savings. This is the money you would like to set aside for your children?s future, retirement savings and emergencies. Typical heads under which you budget include personal debts/credit card dues, home loan, food, transportation, clothing, utility, insurance, healthcare, savings and other miscellaneous expenses. The percentage allocation under each of the headings will be different across families. Families living close to city centre may have to spend more on housing and food. Those families located in the outskirts may be spending more on transportation and less on home rent. The spending pattern differs across persons. Some may spend more on clothes and parties while others may like to splurge on food. Families with children and elders will have different spending priorities.

A budget worksheet must be flexible where you can insert any additional expense or income element. It helps you to identify opportunities of minimizing wasteful expenditure.

Managing home loan debt Defaulting on home loan repayments can land a borrower in serious trouble. Further, it leaves a blot on the credit history that will adversely impact future borrowing capacity. Credit card and personal loans are high interest debts that must be repaid with highest priority. Do not borrow to invest in stocks. If needed, defer other major expenses such as a vacation till the financial pressure eases out. Assign priorities to your expenses and set aside money regularly to fulfill your major plans like an overseas vacation. Sticking to a meticulous budget plan will help you sail comfortably through a home loan tenure.

Courtesy Times Property? 30-10-2010