Posts Tagged ‘indian real estate’
Monday, August 31st, 2009
Our Union Finance Minister recently announced that profits from housing projects, qualified under section 80IB(10) of the Income Tax Act and approved by a local authority between April 1, 2007 and March 31, 2008 will be tax free, if they are completed before March 31, 2012. The Minister has urged the builders to pass on the benefit to consumers.
As the profits made from residential projects depend on so many parameters which vary from one place to another.An expert committee comprising Valuers and Chartered Accountants should be appointed to arrive at the profit for each project. The cost of the committee report should be recovered from the builder/developer.
It is also to be observed that the profit range in constructing small houses is much less and hence the genuine builder, who is also helping the noble cause of providing affordable houses, should be compensated properly.It is suggested that instead of asking the builder to pass on the entire tax saving to the purchasers, the builder should be awarded 30 per cent of the tax saved and 70 per cent passed on the home purchaser. It is necessary to single out builders who might be pocketing the tax savings and encourage the genuine builders.
The Finance Ministry and all concerned should evolve a proper control mechanism to ensure that the incentive meant for home buyers reaches them and not the pockets of a few builders.Associations such as CREDAI (Confederation of Real Estate Developers Associations of India) and Builders Association of India (BAI) should help in this regard.
Reference:
Tax benefits must reach the buyer
Tags: Apartment, apartment buy-sell, Buying, Housing Developement, Housing India, income tax, indian real estate, property, Real Estate India, Second homes, tax benefit, tax free, Tips
Posted in Builder | 1 Comment »
Thursday, August 27th, 2009
Tax evasion was causing huge losses to the BBMP as people were avoiding paying crores of rupees. In the past, many Bangaloreans reduced the size of the buildings or commercial establishments or even knocked off one floor in a multi-floor building to reduce the property tax amount. If you’ve cheated while paying your property tax, you’re not going to get away so easily this time.
This year, BBMP roped in neighbors to get information about evaders. Informants were assured their identity would not be disclosed. This yielded great dividends and BBMP received about 20,000 tip-offs through emails alone. About 10,000 alerts came through letters and telephone calls. “GIS technology helped BBMP confirm the violations,”
BBMP used GIS to record details of assets which come under the tax net. Detailed maps are drawn showing the area of the plot, taxable areas and the tax details. The moment the owner pays the tax his payable details, paid details are tallied and details of tax evaded are calculated. The GIS mapping also shows details of nonpayment of tax and the list of payments. Even small evasions are shown by GIS.
Common complaints of tax evasion
- Residential sites used for commercial purpose
- Wrong zone where tax is less
- Building given for rent declared as own-use
- Reduced built-up area
All tax evaders will receive notices shortly. BBMP has fixed targets for BBMP officials to issue these notices. After issuing the notice, owners will be asked to reply and the final list of all tax evaders will be posted on the BBMP website. Tax evaders have to pay double the fixed tax with an interest of 2%.
Tags: Apartment, Bangalore, Bangalore East, bbmp, GIS mapping, indian real estate, property, property tax, property tax return, Real Estate India, tax evaders
Posted in Bangalore | No Comments »
Thursday, August 20th, 2009
Real estate sector always come up with innovative way to secure your investment. Buying a home is dream of common man and affordable housing has made dream come true. “Affordable housing” is a term used to describe dwelling units whose total housing costs are deemed “affordable” to those that have a median income.
Affordable housing denotes the basic human need for a comfortable home that offers value for money and cost is relative to the amount that the buyer can afford. Experts here suggest that homes costing no more than five times the buyer’s annual income can be considered affordable.
According to a Planning Commission Report, the urban housing shortage as in March 2007 was around 24.71 million and it will increase to 26.5 million by 2012. Ninety-nine per cent of this shortfall in housing is with regard to Economically Weaker Sections (EWS) and Low-Income Groups (LIG) which contributes to squatting and slum formation. Apart from the existing shortfall, the increasing urban population, which is expected to reach 576 million in 2030 from the current figure of 328 million, will add to the affordable housing demand.
Some developers have either shifted to affordable home projects or made some change in project to make their existing project fit for affordable home. If you already own a house, investing in a second property may not be a bad idea. You can get tax benefit on your second home. Buy a second house that meets your needs, available finances and lifestyle. The economic slowdown is proving to be a blessing in disguise for the common man, especially as far as housing is concerned.
Lower interest rate, construction cost and easy home loan makes investing or buying affordable home easy.The future of affordable housing for the next few years to come is indeed bright. Energies of all stakeholders are focused in the right direction to meet a common goal. Public-private partnerships will be a vital tool and the way forward to address affordable housing.
Tags: affordable home, Apartment, apartment buy-sell, Apartment India, Bangalore, Bangalore East, cut down, Home Loans, Housing, Housing India, indian real estate, market trend, property, Real Estate India, recession, Second homes
Posted in Apartment Buying | 1 Comment »
Wednesday, August 19th, 2009
The Karnataka land revenue bill 2009 seeks to regularize unauthorized layouts and house sites developed prior to December 31, 2008. The details of the regularization process will be drafted in the rules to be formed under the amendments to the Land Revenue Act. There are large number of people who had constructed houses in unauthorized layouts or on unauthorized sites and were not in possession of valid ownership documents.
The Karnataka land revenue bill 2009 seeks to regularize unauthorized layouts and house sites developed prior to December 31, 2008.
It is a one-time measure to provide relief to a large number of people who had constructed houses in unauthorized layouts or sites. Nearly five lakh persons have purchased such sites and built houses thereon and are facing undue hardships. This is a one-time comprehensive scheme subject to certain reasonable conditions.
The legislation seeks to regularize all unauthorized structures and even the layouts and house sites formed on revenue lands, which include agricultural lands. In a way, the regularization announced under the Revenue Act is another format of the Akrama-Sakrama scheme contemplated nearly two years ago and has been awaiting implementation. However, that scheme is only pertained to jurisdiction of BBMP while amendment of bill is applicable to all over the state.
Under the new legislation, unauthorized structures or sites in natural drains, on government lands, the applicant has no title, beneath high tension lines etc., will not be regularized.
The H.D. Kumaraswamy-led coalition Government had taken pains to implement the Akrama-Sakrama scheme in 2007 and it was then estimated that nearly six lakh unauthorized constructions in Bangalore would stand to benefit. Under the new legislation, some of the conditions include — unauthorized structures or sites in natural drains, on government lands, coming in the way of existing or proposed rings roads, national highways etc, belonging to another person over which the applicant has no title, beneath high tension lines etc., will not be regularized. Property owner with more than two floors have to produce a certificate from a structural engineer and a no-objection certificate from the Fire and Emergency Services Department.
Links to Refer:
Opposition for debate on Land Revenue Bill
Unauthorised layouts, sites to be regularised
Tags: Akrama-Sakrama scheme, Apartment, Apartment India, Bangalore, Bangalore East, bbmp, indian real estate, karnataka land revenue bill, market trend, property, Property Registration, Real Estate India, regularize unauthorised layouts, Tips
Posted in Bangalore | 1 Comment »
Wednesday, August 19th, 2009
Demand and enquires for small or affordable home is increasing in last two or three months. In the coming month, sale of property will increase since people who postponed purchase in October due to recession and instability in market are firming up their mind.
Developers and most companies as reported increase in sale of property by 60 per cent in second quarter. In the recently concluded CREDAI Realty expo besides large number of enquiries in new projects 36 housing units were sold on the spot.
Single bedroom apartment or small homes were exception in past. Developers or builders are looking this segment as feasible opportunity to offer affordable home. Several projects are being modified to fit in 1 BHKs.
The recession has also bring down the cost in the affordable home segment, range from Rs. 15 lakh to Rs. 25 lakh in well-developed areas. As the demand for space increases along with the need for affordable houses, 1 BHK apartments and small homes will become a norm in the future.
Before the recession set in, 1 BHKs were confined mostly to projects developed by Category C developers whereas even Category A developers are also pitching in into affordable home segment now. This is also the best time for customers to buy homes, as prices could go up again in near future.
Reference:
For builders, small is now beautiful
Tags: affordable home, Apartment, Apartment India, Bangalore, indian real estate, market trend, property, Real Estate India, recession, single bedroom, Tips
Posted in Builder | No Comments »
Wednesday, August 19th, 2009
Register property with alternative documents
After two-and-a-half years of rigmarole over khata transfer and endorsement which had put property registrations in the erstwhile urban local bodies in a limbo, the Karnataka government has facilitated the sale-purchase transactions by suggesting alternative documents.
The government issued a fresh notification on August 12, 2009 about the acceptable documents during registration.On Aug 14, the inspector general of registration and commissioner of stamps K R Niranjan has written to the sub-registrars to follow the new guidelines and open up the registrations.
Since 2007 after the urban local bodies came under BBMP fold, property Owners who wanted to sell their properties could not do so. Now the government issued a fresh notification on the acceptable documents.The registration process for apartments located in these areas has also been made smooth now.
The khatas issued by the erstwhile CMCs, TMC or panchayats to which your buildings/sites belonged before becoming a part of the BBMP, will suffice to do property transactions.
You can submit following documents during property transaction
For buildings/sites in old urban local bodies:
- copies of khata and assessment extracts issued by CMCs, TMC or village panchayats to whose jurisdiction the properties belonged
- copies of property tax application and tax paid receipt under BBMP’s Self-Assessment Scheme
- Sale of apartments: copy of registered sale deed of first transaction
Links to follow
register property with alternative documents
Khata Transfer
Tags: alternative document, Apartment, apartment buy-sell, Apartment India, Bangalore, bbmp, guidelines, indian real estate, khata, property, Property Registration, Real Estate India, Tips
Posted in Bangalore | No Comments »
Friday, August 14th, 2009
Housing finance major HDFC offers loans between Rs 30 to 50 lakhs at 9 per cent. HDFC has upped the ante for market share in the home loan market by reducing rates by 50 basis points.
The development comes within a week of the country’s biggest bank SBI cutting rates by 50-75 bps for high-value loans and offering loans up to Rs 5 lakh at 8% fixed rate for five years.
As per the revised rate, loans between Rs 30 to 50 lakhs will be offered by HDFC at 9 per cent. As the lender has not revised its prime lending rate, the rate will apply only for new customers.
Several public sector lending institutions such as Canara Bank, SBI and LIC Housing Finance have unveiled competitive schemes to attract home loan seekers. HDFC now wants to take advantage of the festival season spike in business.
Reference
HDFC cuts rate to 9% for Rs 30-50 lakh loan
Tags: cut down, HDFC, Home Loans, Housing, indian real estate, market trend, property, Real Estate India
Posted in Loan | No Comments »
Thursday, August 13th, 2009
There are chances of sellers producing fake certificates
Recession has opened opportunity for people seeking home or apartment at affordable price. Though real estate business hit by recession, it manage to get demand from property buyers and investors in short period. There are chances of sellers producing fake certificates, hence, check the authenticity of property before you buy them.
The hassle in purchasing unauthorized properties is that there are always chances of the property being demolished or heavy penalties being levied to regularize it. Check the details and authenticity of the property with civic agencies before buying the property. Layouts are indeed springing up on plots measuring up to three acres in places like Kengeri, Whitefield, Ulsoor and Sarjapura Road.
People should ask for no-objection certificates (NOCs) issued by civic agencies like the Bangalore Development Authority (BDA) and Bruhat Bangalore Mahanagara Palike (BBMP) before purchasing a property. Buyers can check lists of unauthorized properties on BDA, BMRDA and BIAPPA websites. The BDA website (www.bdabangalore.org) had listed 127 illegal layouts as in 2007 with their geographic location and details of builders.
Last year, BDA had cautioned people against purchasing properties in European township as it was unauthorized. People wanting to buy property can contact BDA at 080 23443206/ 23340258 for more details before taking a decision.
Links
BDA Approved Layout
Bruhat Bangalore Mahanagara Palike (BBMP)
Guidelines for property buying
Watch out-Home dreams can sour
Tags: Apartment, apartment buy-sell, Apartment India, Bangalore, bbmp, Housing, Housing India, indian real estate, market trend, property, Real Estate India, recession, rising prices, Tips
Posted in Apartment Buying | No Comments »
Monday, August 10th, 2009
Green building is a concept fast-catching the fancy of people all over the world. Demand for green building materials and equipments are increasing day by day. A green building is one which is energy efficient, uses natural and renewable energy and causes the least amount of damage to the environment.
In India, Indian Green Building Council (IGBC) Green Homes is the first rating program developed exclusively for the residential sector. Indian Green Building Council (IGBC) is a part of CII-Godrej Green Business Centre, which is actively involved in promoting the GreenBuilding movement in India.
IGBC estimates the demand for green building materials and equipment will reach USD 4 billion per annum by 2010. In tune with the global trend to protect the environment, the number of green building projects in India may go up from the current 164 to over 2,000 by 2012.
Some of the features of green buildings are heat reduction insulated roofs and walls that substantially reduce heat ingress (up to 60 percent) thereby resulting in lower AC loads, cross ventilation with fresh breeze, low energy costs (up to 40 percent), and 100 percent natural light all across, thereby cutting down usage of artificial light by 50 percent. You can enjoy healthy living with innovative solid waste management, waste segregation system and nature-friendly infrastructure.
The biggest advantage is, the well designed green building may accrue life-long benefits at small make-up costs and reduction in water and operating energy costs. Generally, the cost difference while raising a green building is approximately between five and eight percent more than a conventional building, but the investor recovers costs within three years.
Green building not only offers healthy environment but also helps to save energy and water. If you are planning to buy an apartment or home, green building enables you to save cost of construction and you can enjoy healthy living with innovative solid waste management, waste segregation system and nature-friendly infrastructure.
Tags: Apartment, Apartment India, Bangalore, Buying, green, green building, home, Home Loans, indian real estate, market trend, property, Real Estate India, Tips
Posted in Apartment Buying | No Comments »
Saturday, August 1st, 2009
It is good time for home buyers, especially buyers looking for affordable home. The government has taken some positive step to boost realty sector. Tax holiday has been announced for ongoing infrastructure projects which were approved during 2007-08 and projects to be completed before 2012. Earlier, the provision was limited to only projects sanctioned before March 2007 and the project to be completed before March 2010.
The government has decided to reduce interest rate one per cent for one year on home loans less than Rs 10 lakhs for a house costing Rs 20 lakhs. The move is expected to boost realty sector and the realty sector is directly or indirectly support other sectors. This measure will have positive impact on economy.
The interest subsidy is aimed at mid-segment housing loan borrowers. One caveat is the cost of the house should not exceed Rs 20 lakhs. Also, the subsidy will be available only for one year. This interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. A number of developers have been considering getting into this segment. The move to extend by two years the tax exemption available to builders of smaller homes is also likely to persuade builders to reduce the cost of such homes. The minister has urged the developers to pass the tax benefits to customers.
Working of One per cent subsidy
The government has decided to reduce interest rate one per cent for home loan up to Rs 10 lakhs for house costing Rs 20 lakhs, for one year. This means, if you take home loan for 9 per cent and your loan amount is less than Rs 10 lakhs to buy a house costing Rs 20 lakhs, you are eligible for one per cent subsidy.
The Bank deducts one per cent interest from your loan and collects only 8 per cent interest on your home loan from 9 per cent. The one per cent interest subsidy will be routed through scheduled commercial banks and housing finance companies registered with NHB. It means a one-time saving of Rs 7,596 for anyone who takes a Rs 10-lakh 20-year loan at an interest rate of nine percent, with the subsidy taking his effective interest rate down to eight percent.
Tags: Apartment, Apartment India, Bangalore, Bangalore East, Buying, Home Loans, Housing, Housing India, Housing Societies, income tax, indian real estate, market trend, property, Real Estate India
Posted in Bangalore | 2 Comments »