Posts Tagged ‘recession’
Monday, December 21st, 2009
The home buyer is normally a person who wants to set up a family or one who looks around for investment options. With the tax exemptions allowed by the government for repayment of loans and interest paid on loans for purchase of house property/construction of houses, investment in property received a shot in the arm.
As for the one who wants to set up a family, his needs depend normally on the number of members in the family, price quoted for the house and available surplus for repayment of loan. Location and distance from work place, possibility of future expansion and the like come next.
In India, promotion of housing initially came from the government. For the middle and upper middle class, affordability is the key. The increase in income of people during the last 10-15 years due to higher industrial growth, proliferation of software firms etc enabled property buyers to go in for larger and luxurious houses. The global meltdown turned the table upside down and investment in house property has been hit badly. This has led to shift in demand from large or fairly large accommodation to lesser floor space. Another reason might have been the wait for locating accommodation in the city center area.
Improvement in transportation facilities, construction of ring road and peripheral ring road, metro rail etc also factored in. The development of townships in and around the peripheries of cities also shifted the demand from one location to the other. There was a time when small apartments went a begging in Yelahanka, Kengeri, Whitefield and Bannerghatta Road. After the economic slowdown, salaries took a downslide and people thought of various methods to beat the recession.
One major approach has been to go in for lower floor area houses. The city is becoming larger and people need to either move out from the central area or go in for smaller accommodation. In this background, the one-bedroom tenement is perhaps the solution.
Reference:
The Hindu
Tags: 1bhk, affordable home, Apartment, apartment buy-sell, Bangalore, Bangalore East, Buying, home buyers, Housing, indian real estate, market trend, property, property buying, property tax, Real Estate India, recession, Second homes, Tips
Posted in Bangalore, News | 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
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 »
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 »
Friday, July 24th, 2009
Budget apartment bring affordability and easy repayment of home loans. Budget apartment projects are in the price range of 25-30 lakhs and some projects are in range of 8-10 lakhs or less. There is rise in demand for budget apartment and this has become good choice for end-users and investors.
Localities around Whitefield, HRBR Layout, Lingarajapuram, Sahakarnagar, Hennur Road, Hegde Nagar, K R Puram, and Hosur Road are witnessing the rise of budget apartment projects. Some projects in the range of Rs 8-10 lakhs also, with an area of 500-700 sqft are coming up on Bannerghatta Road, Hosur Road, Sarjapur Road, and Whitefield.Lack of space in the city and high land cost has led developers to come up with such options in localities away from the city.
For an end user, budget apartment offers affordability and easy repayment of home loans. A home loan ranging 25-30 lakhs are easily available and a joint loan will reduce burden of monthly EMI. This enables end user to repay loan easily.
A budget apartment is good choice when considering to resale after two or three years. If investor doesn’t have adequate cash flows, he can buy a lower level and this can work as a hedge against inflation.
Tags: Apartment, apartment buy-sell, Apartment India, Bangalore, budget apartment, Home Loans, indian real estate, market trend, property, Real Estate India, recession, Tips
Posted in Apartment Buying | No Comments »
Friday, June 26th, 2009
Global slowdown had led all industries to look towards government for help and packages to regain the market situation. Real estate sector is one of the industries which look Union Budget with hopes and expectation. Real estate industry expects some tax concession and packages to boost the industry.
Developers and builders expect reintroduction of section 80-IB (10) of income tax Act. The section was lapsed on March 31, 2007. If the provision reintroduced, builders will be encouraged to build small sized apartments. As per this section there was exemption from income tax on profit made by developers in constructing houses of less than 1000 sqft in Mumbai and Delhi, and less than 1500 sqft in other cities.
There is huge demand for small sized apartment. There is urgent need to boost the industry by restoring fiscal concession or restoration of section 80-IB (10). Developers and builders feel this measure will encourage builders towards construction of small sized housing or apartment and lowering the price of small residential units.
Stable government has played vital role in getting hopes and confidence of property buyers, investors and Realtors. Industry experts feel government is on right track by considering the hiking of income-tax exemption available for interest payment on home loans. Home buyers and investors expect the government will increase the income tax exemption slab for interest payment on home loans from Rs 1.5 lakh to Rs 3 lakh. The Budget should free the rental income yielded by commercial premises from service tax.
Every industry is expecting government for help and stimulus packages to regain the market situation and come out from the current situation. Real estate sector looks union budget as an opportunity where government will offer packages to boost the industry.
Tags: Apartment, Apartment India, Bangalore, Bangalore East, budget, Buying, Housing, Housing Developement, Housing India, Housing Societies, indian real estate, market trend, property, Real Estate India, recession
Posted in Apartment Buying | No Comments »
Friday, June 19th, 2009
Real estate market in India has seen decline in property price for several month which attracted home buyers and investors towards real estate industry. In last few months there was a rise in demand for property and market trend favored buyers by cut down in registration cost, lowering rate of interest for home loans, builders offering property at attractive price.
That is stage is over and now property buyers can see rise in price of property. For builders liquidity position has eased, the cash flows have improved and they have cleared off existing inventories. The rise in property price depends on market trend and builders. If there is more demand for property, builders will increase the price of property. When checking the market trend and builders history, there was no increase in price for last 15-18 months. Builders had lowered prices when they were in trouble, now there is a good possibility of rise in price.
Builders regained confidence and enthusiasm that stable government will lead to improvement in economic condition. Builders can raise fund either by loans or through equity or QIP. The housing companies have seen growth pick up from the end of February. The growth for LIC housing Finance is mostly from retail finance.
In short, people cannot expect a further fall in property price. Builders will raise property price depending or market trend and demand for property. Buyers can get best from current market price where banks offer loans at affordable rates.
Reference:
The Hindu Business Line
Tags: Apartment, apartment prices, Bangalore, Buying, Home Loans, Housing, Housing Developement, indian real estate, market, market trend, property, Real Estate India, recession, rising prices, tax, Tips
Posted in Apartment Buying | 1 Comment »
Thursday, June 18th, 2009
According to sources in finance minister, the center is likely increase income tax exemption limit in forthcoming general budget. Government is considering a proposal to hike income tax exemption limit to boost demand and rebuild the slowdown-hit housing industry.
At present tax payers are eligible for exemption of income tax on interest rate paid up to Rs 1.5 lakh every year and it is likely to increase to Rs 2.5 lakh a year. If the proposal is accepted, tax payers will save up to Rs 31,000 a year from income tax exemption this will make purchasing home more affordable. However, tax payers can get this benefit only after construction of house is completed.
While acknowledging the fact that a “marginal” hike in the income-tax exemption limit will lead to some revenue loss, the Tax Research Cell (TRC) believes that the very injection of a “feel good” factor into the economy will have a positive spiraling effect on the “demand dynamism.”
Reference
www.deccanherald.com
Tags: Apartment, apartment buy-sell, Bangalore, Home Loans, Housing India, income tax, market trend, property, Real Estate India, recession, Tax calendar
Posted in Bangalore | No Comments »
Saturday, June 13th, 2009
Union Finance minister exhorted public sector banks to cut down interest rate for home loan, retail loans and industrial lending to boost the economy.
If public sector cut interest rate, loans and industrial lending may become cheaper. SBI chairman after meeting with government told the news and media that bank would take decision on government suggestion by the end of the month. If SBI country’s largest bank takes step to reduce other public sector banks will also follow suit. Canara bank and Corporation bank echoed the statement of finance minister.
Current loan rate for home loan range from 8 to 9 percent up to Rs 20lakhs, Loan rate for car loan range from 10 to 11.5 percent and public sector charge 12 to 13 percent on industrial borrowing. Bank charges lesser interest rate depending on borrowers’ credit worthiness.
Prime Lending Rate (PLR) stands in the range of 12 to 13.25%. If bank brings down the rate by 50 basis points, lending rate of all sort of borrowing will come down by 0.5%.The second largest PSU, PNB however said the current rate they offer is lowest in the market. Analyst feel there is space for commercial banks to reduce the lending rates in the range of 50 and 75 basis points.
If the banks cut down their interest rate, home loan and retail loans will become cheaper. Analyst says bank will soften lending rate further, resulting cheaper loans and industrial lending.
Links to Refer
www.deccanherald.com
www.thehindubusinessline.com
Tags: Apartment, Apartment India, Bangalore, Home loan insurance, Home Loans, Housing India, indian real estate, market trend, property, Real Estate India, recession, Tips
Posted in Loan | No Comments »
Tuesday, June 9th, 2009
In India real estate business is one of the successful industries which offer good deal for both buyers and seller. In real estate market all buyers are not buying property for long-term purpose. They hold property for short-term and sell when they get marginal or good profit on the property. These profits become good income at the end of year.
To succeed in real estate business you need to know basic market trend and some experience in property transfer. Patience is very important in real estate business. You may some times encounter failure or loss in one or more transaction but you need to stick in the business to gain more.
While investing in real estate business, you need to know laws relating to property, taxation, updates of financial and banking rules etc. This will help you to know the market trend and the right moves you need to take, whether to buy or sell the property. For example, now you can see cut down in property rate, lower interest rate for home loan, cut down of stamp duty and so on. This indicates that this is buyer market and it is right time to buy property for selling in future.
You need to have good relation with people who are investing in real estate business. A good networking helps you to get best deal and more opportunity to invest and transfer the property at profitable rate. Real estate business needs hard work and smart investment to achieve success. It may take some years to earn big profit but you can get marginal profit on your transaction and learn new experience in each transaction.
Negotiation skill is important for surviving in this field. You need to negotiate well when buying a property and when selling the property you need to sell them for marginal profit. You need to know when to walk away from the bad deal.
Real estate business offers good return if you know the trend and idea of transferring the property. Patience is very important for surviving the failure in real estate business. You need to know laws relating to property, banking rules and Income tax laws. Good negotiation skill is tool for success and walk away from bad deal is wise than investing or suffering the loss. Make good market research before you invest or step into real estate business.
Tags: apartment buy-sell, apartment prices, Bangalore, Buying, Home Loans, indian real estate, market trend, property, Property Registration, Real Estate India, recession
Posted in Housing India | No Comments »
