Posts Tagged ‘Tips’
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 »
Monday, October 5th, 2009
As the festival season begins, analysts believe banks and developers will offer attractive schemes to attract home buyers. Activity in the residential property market has increased quite significantly during the last couple of months.Many banks are planning attractive home loan schemes to draw homebuyers during the coming festival season. Therefore, people looking at investing in property can make a serious attempt to get a good property and home loan deal.
As consumer confidence is increasing, the developers are launching many new projects. Analysts believe developers will offer some attractive schemes to attract homebuyers and book as many units as possible. Flexibility of the scheme during the home loan tenure is an aspect that borrowers should look for while selecting the lender. It is important to go through the various terms and conditions of the available schemes and offers carefully. Prospective borrowers should know the various fees/charges that come with the schemes.
Reference:
Home loan schemes attractive at festival time
Tags: Apartment, attractive offers for property buyers, Buying, festival season, Housing, Housing India, indian real estate, market trend, property, Real Estate India, residential property, Tips
Posted in Uncategorized | No Comments »
Monday, October 5th, 2009
Today it is world of cards where you will have credit card, debit card, petro and membership cards. Now property owners in Karnataka will soon have property card which will serve as authentic documents.
When the Karnataka Land Grabbers (Prohibition) Act comes into force soon, it’ll bring in transparency by cleaning up land records. Sources in the revenue department said that, with new rules in place, registration of sale deeds would be replaced with registration of titles. This will be done by introducing the progressive system of property titles and maintenance modeled on the Torrens System. The newly formed task force for eviction of encroachers on government land is also part of it.
The Karnataka Land Revenue Rules provide for a detailed inquiry of urban properties which can be done by the survey department following a procedure of issuing notices, hearing objections, ascertaining documents and finally writing property cards. The property card proposal is currently awaiting presidential assent.
There are about 15 lakh properties under BBMP and still more in the 2,000 sq km of Bangalore Urban district.In Bangalore,survey of property was last undertaken in 1975. It’s estimated that about 150 qualified surveyors would be required to complete the city survey inquiry.Even if a citizen pays Rs 500 to get the highly dependable property card, the cost of the project can be met. The present system of registration of documents can be misused quite often. With new rules in place, registration of sale deeds would be replaced with registration of titles.
Reference:
Property cards to fix glitches in records
Tags: Apartment India, bbmp, Housing India, indian real estate, karnataka land grabbers (prohibition) Act, market trend, property, property card in karnataka, property card will serve as authentic documents, Real Estate India, Tips
Posted in Bangalore | 1 Comment »
Tuesday, September 29th, 2009
The BBMP has tied up with some nationalized banks to fund the regularization penalty amount with the same property as guarantee. In fact, the last time when Akrama-Sakrama was announced and BBMP started collecting applications, many owners availed of this loan. But the BBMP stopped the process midway when the scheme was delayed by the new BJP government. After realizing that the notification of rules would get delayed, BBMP passed a resolution to refund the money.
More than 3 lakh property owners in Bangalore alone will now have to plan their investment better to get a clean chit for their properties. The penalty rates, which run into thousands and lakhs of rupees, will definitely pinch the pockets of the middle class. The BBMP has tied up with some nationalized banks to meet this expenditure with bank loan.
It’s also good business for banks as a majority will apply for the loan. And for owners, the loan will not be a big burden. Also, the same customers may get back to the bank for home loans in future when they construct after the regularization. The arrangement is such that banks, after processing documents, will present a cheque directly to BBMP for the amount. The rate of interest is as per the prevailing home loan interest.
Nationalized banks to chip in for Akrama-Sakrama Loans. The rate of interest is as per the prevailing home loan interest. After processing documents and calculating regularization amount, bank will directly pay to BBMP through cheque. If regularization is rejected for that property, the cheque will be returned to the bank.
Reference:
Bank loans for penalty amount
Tags: akrama-sakrama loan, Akrama-Sakrama scheme, Apartment, Bangalore, bbmp bangalore, guidelines, Home Loans, Housing India, indian real estate, nationalized banks, property, Real Estate India, regularization of unauthorized property, sakrama loans, Tips
Posted in Bangalore | 2 Comments »
Monday, September 14th, 2009
Karnataka Stamps and Registration Department is considering over 2000 post office and equal number of public sector banks across the state for property registrations. The department has been running the pilot project for the e-stamping initiative at four sub-registrar offices in the city. Property buyers will not have to go through the hassle of paying the registration fee and stamp duty at the sub-registrar’s office from next month.
On a pilot basis, the department is planning to launch the facility in 75 post offices in Bangalore by next month. A public sector undertaking, Stock Holding Corporation of India Limited (SHCIL) would be in charge of keeping a centralized record of all e-stamping documents. E-stamping is computer based application which enables you to pay for stamp duty using electronic device.
The postal department wants to charge Rs 10 as an additional fee from customers for e-stamping denominations up to Rs 100, and Rs 15 for e-stamping denominations above Rs 100. This is in addition to 0.15 per cent commission per transaction, which post offices get from the government for the e-stamping.
The department in association with SHCIL, is implementing e-stamping to put an end to illegal benami registrations and for plugging revenue leaks. The post offices have expressed interest and are waiting for a final approval by the state finance department.
Links to Refer:
Property Registration at post office
Tags: Apartment, apartment buy-sell, Bangalore, guidelines, Housing, indian real estate, market trend, property, Property Registration, Real Estate India, Stamp duty, Tips
Posted in Bangalore | 3 Comments »
Monday, September 14th, 2009
It is good time for investing in residential property. Localities in each zone of Bangalore are emerging as prime residential areas.
A region is good for investment with various reasons such as easy commuting to key areas in the city, good connectivity with the Outer ring road, commercial development, good social infrastructure, industrial growth etc.
Residential segments in the north and northeast Bangalore such as Hebbal, Nagavara-Outer Ring Road (ORR), Yelahanka, Sahakaranagar, Jakkur, Coffee Board Layout, HRBR and HBR Layout, Banaswadi, off Kempapura Road, Amruthahalli, Hennur Road, and Thanisandra Road are the best options for investments. Devanahalli and Yelahanka are emerging as good alternatives to set up facilities. The international airport spurred growth in the north, and many companies are shifting here Yelahanka has seen significant residential spread over the past eight years. Due to good connectivity with the Outer Ring Road, the Hebbal flyover, and the underpasses, the 18-20 km to M G Road can be easily covered. There are approximately 4,000-5,000 units under construction to be completed in two years’ time here.
Major demand for housing in south Bangalore comes from the IT/ITeS segment. The completion of the flyover from Central Silk Board to Hosur Road will boost residential development along this stretch through smooth connectivity. Koramangala, Madivala, BTM Layout, HSR Layout to Sarjapur-Outer Ring Road, and Kanakpura Road up to Metro in the south-east and in South Bangalore, areas from JP Nagar to Bannerghatta Park, including Vijaya Bank Colony, Meenakshi Temple belt are good for investments.
In the east, Marathahalli, Brookefields, and Whitefield are witnessing residential development. The easy commute from the east to the international airport through the Outer Ring Road and the signal-free junctions will see the emergence of the east and north as major residential and commercial hubs.
In the west, The Vijayanagar belt, Nagarbhavi, Bangalore University belt up to Rajarajeshwarinagar and Kengeri satellite town, are emerging as good places to investment. There is good social infrastructure with a host of educational institutions and hospitals. Jalahalli and Peenya have the potential for residential development since there will always be an inflow of workforce looking for homes nearby due to locality close to industrial areas.
Tags: Apartment, apartment buy-sell, Bangalore, Bangalore East, Housing India, indian real estate, investment, market trend, property, Real Estate India, residential property, Tips
Posted in Bangalore | No Comments »
Thursday, September 3rd, 2009
Demand and price rise for properties in the outer ring road belts. The IT boom accompanied demand for the property in localities close to areas where IT development was happening. The capital appreciation seen in the IT belts over the last two years was around 25-30 percent.
IT Belts in Bangalore city are Whitefield, Electronic City, Outer Ring Road (from Marathahalli towards Old Madras Road), parts of the CBD, and Bellary Road (towards Hebbal). Whitefield and Outer Ring Road (Marathalli-Sarjapur stretch) are the key IT belts in the city that have witnessed significant commercial development in the last three to four years.
Nowadays, investors who want to invest in commercial spaces are bringing in lesser capital, pooling it into a large facility and leasing it out to quality tenants. North Bangalore and areas in close proximity to Hebbal are the emerging micro markets with potential for future commercial development over three to five years. This is largely due to the improved connectivity as well as potential for development of social infrastructure and residential development.
When it comes to investing in an IT belt, a leased commercial IT space garners a yield of around 9-12 percent. This acts as a hedge against inflation. The capital appreciation seen in the IT belts over the last two years was around 25-30 percent. A rental return of 9-12 percent can be expected depending on the quantum of investment.
The Whitefield and Sarjapur-Outer Ring Road belts have been the fastest-growing belts in the last few years. These are the two belts with the highest IT development in Bangalore with Outer Ring Road having around 11 million sqft of completed leased space and Whitefield having around 13.2 million sqft of completed IT stock. Both areas are well-connected to the international airport through existing or planned civic infrastructure initiatives. The planned Peripheral Ring Road (PRR) will improve connectivity from Whitefield to the airport.
A long-term investment in this belt will yield high rental returns and capital appreciation, and acts as a hedge against inflation.
Whitefield has seen residential growth in Varthur, Brookefields, Mahadevapura, and in localities around Whitefield. The Outer Ring Road belt has both residential and commercial development with multi-tenanted facilities as well as high-end apartments. Southeast Bangalore is an employee catchment area close to the Sarjapur-Marathahalli- Outer Ring Road belt. The largest increase in the gross rental yield in the city was seen in Whitefield - from 11.6 percent in the fourth quarter last year to 12.4 percent in the first quarter of this year.
Tags: Apartment, apartment buy-sell, Bangalore, Housing, Housing India, indian real estate, market trend, outer ring road, property, Real Estate India, Tips
Posted in Bangalore | No Comments »
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 »
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 »
