Housing Society Lifestyle Will Be Fancy With GST Rollout

This might sound bizarre, but living in a housing complex will cost you chock-full. GST is likely to umpire the taxability on every transaction. Taxpaying on realty apartments will be mostly unchanged as it will boil down multiple taxability into a single one. On which experts think that implementation of GST will bring down property prices nationally. While property purchase will be cheaper, living in a gated society will definitely roast your leisure.

Higher maintenance charges 
GST will likely to fire up maintenance charges of the society. Post GST maintenance charge will set to get under 18% tax slab, which will levy additional burden of 2.5% on inhabitants. The existing rate is 15.55%, which includes 15% service tax, 0.5% Swachh Bharat cess and 0.05% non-agriculture tax. The liability of taxpaying is to be imposed on the end users not on the sellers. Expenses such as- legal fees, security expenses, transport charges, labour charges might attract GST on RCM (Reverse Charge Mechanism) based on whether the CHS (cooperative housing society) billing surpass Rs 20 lakh or not in the previous FY. Maintenance charge will directly payable to society.

Not including property tax
Government hasn’t subsumed property tax into the fresh tax regime. Property owners will keep paying property taxes on yearly basis according to the state GST law.

Additional charges
Barring AMC (Annual Maintenance Charge) water usage will be accountable under a separate head of GST. But electricity bill won’t be taxable under GST.

Repair or renovation to be acclamatory 
In case housing society carries out any renovation, repairing or even paining and needs to buy commodities such as- cement, paint or steel, the tax paid for the same purpose will be deducted from the total amount paid under GST tax regime.  But it’s only possible when the society welfare association makes full use of the input credit. Hence, the repair fund will attract 18% tax slab of GST.

Housing societies with advanced pursue and annual corpus of over 20 lacs should get registered under GST ambit. On monthly average of 5k maintenance charge if the annual maintenance cost stands over 20 lacs, then the society will be liable to pay GST. If the total billing is more than 20 lacs but less than 75 lacs the CHS may choose to call for the composition scheme.

-- LNN (Liyans News Network)- Buy flats in Rajarhat before GST. Huge sale is ongoing on the luxury residential projects. Invest in lifestyle apartments for advanced future. Save up to 5 lacs with every successful deal. 

Does Big Lay-Off In IT Sector Impact On Realty Market? – An Overview

Indian IT companies are in process of firing employees on massive scale. This move is subsequent result of sluggish market prospective anticipated in India’s 150 billion dollar IT industry. Earlier in this FY, country’s apex trade body ASSOCHAM warned about industry growth prospect aggravated by the rising rupee value leading to lower realizations for software export. The IT sector of India has been the major employment resource of the country. But the recent news of job cut rates in the IT industry rattles the real estate industry as well.

We will tell you how the process will hit the realty market. The demand of residential apartments as well as commercial apartments will take south at the side of downsizing in the country’s major job driver. Mostly, salaried people buy home on bank loans and do all EMI repayments with their monthly income.  For instance a large number of residential units have been bought on bank loans as the close proximity of the IT hub of West Bengal. Simultaneously new start-ups are blooming with the requirements of mid-ranged commercial space requirement nearby the physical place of the IT industry. Now job escalation would make real estate industry suffer in a big way.

As per the recent market speculation more than 1 lac IT people will lose their jobs in the coming FY. America will reportedly stop doing the out sourcing which will straightway affect the BPO industry of India. On the other hand technological development, automation and artificial intelligence will be the watchdog of the industry progress. Big IT giants won’t feel to extend the business capacity or in other words they won’t have significant reasons to buy commercial property in Kolkata and other major cities of the country. 1 lac job losses would roughly render a slash of 8 million sq ft in real estate volumes, considering that per employee space consumption in the IT sector today is roughly 80 sq ft.

Kolkata’s IT sector is relatively small than major IT hubs in Bengaluru, Gurugram, Hyderabad and Pune. For, the city is not that largely dependent on the IT industry. It’s expected that Kolkata’s real estate market will be less terror-stricken by the IT cut down. Government has assured there will be no such major retrench in Indian IT sector. Government has planned to open 3 huge IT parks in Kolkata- one each in Durgapur, Darjeeling and Kalimpong.

Affordable housing sector is the only steady investment sector which is continuously attracting buyers from the bottom of the pyramid. Currently it has emerged as the growth driver of the realty industry. IT industry will have to seek micro and small medium enterprise for their necessary production, in joint collaboration. There will be increasing opportunities for the start up industry in the coming days, which will lead more job opportunities in micro market.


-LNN (Liyans News Network)

How Much Rent Can You Rightly Afford?

Assessing your requirements from a rental apartment is easy but what’s not that easy is obtaining all those needs within your budget. Thus, before even thinking of a rental apartment, we insist you should most likely know what your budget is. Calculating your budget is not tough as nails. Here we give you evenly suggestion for measuring your rental affordability.

Not sure how much you should spend for rent? This is the general guideline to assist you resolve what the exact rent against your income.

Ascertain a budget- Assess your income as in salary, bonus, interest, dividends. Expectedly 60% of the earning gets spend on family which includes- food, household stuffs, transport, several policy EMIs. Thus, stretching budget for housing rent might lead to scarcity of emergency funds.
Mathematical solution- On the base of certain assumption monthly property rent should be around 30% of your income. This calculation might vary on man to man basis. For example 20% population of the country spend almost half of their earning on comfortable residential lifestyle.

Monthly rental calculation- There is a 50/20/30 analytical method by which experts calculate average rental affordability.

This goes as following-

• 50% on fixed costs- (Paid monthly/Per annum)

• 30% on every day expenses- ( Shopping/Entertainment or Dine out)

• 20% on economical goals- (Loan repayment/ Insurance premium/ Emergency savings)

The amount that will be left out after all these expenditures will be there for your house rent. It’s exactly the proportionate to the subtracted value of the above said expenses and other relative financial liabilities.

Some additional fees- If you find your rental apartment through an agent. The professional fee of the broker will be added to your expense burden. Commonly they charge something around 8%-15% of entire year’s lease value. It would be an upfront payment during the time of agreement. There will be a deposit to consider the move-in cost also. Then there will be security deposit money payable to the land-lord which is roughly equivalent to a month’s rent, though the same would get refunded during the time of your termination of tenancy agreement. Again if you are moving to any unfurnished apartment, the furniture cost will be added to your outflow.

However, spending less than 30% on rent of your income is a smart lifestyle solution. The modern trend is rather than spending monthly hefty amount on rent choosing affordable urban housing for your well-maintained lifestyle.

Have a look at low budget flats in Kolkata, these lifestyle apartments cost you less than your ever-increasing rental value. The purchase value won’t sit on your savings. You can avail all standard facilities and amenities befitting for your lifestyle.

-LNN (Liyans News Network)

Rent On License, Not On Lease – New Profit Mantra For Buy a Flat

An ill tenant can give any landlord many sleepless nights. Presently, price of real estate units in metros and suburbs has hit the roofs. As a result, about half of the population settle with rented nests. In Kolkata a huge volume of such rental provision is found in flats in Rajarhat area.  But a squatter is someone who refuses to surrender the occupancy even after contract is over.  The best solution to this ado is Leave and Licence Agreement.

There are two options available in terms of putting the apartment on rent either Leave and Licence or lease. Now the fact is that we use both of these terms interchangeably, but they are radically different from each other.
Licence Agreement- Section 52 of the Indian Easements Act, 1882, gives permission to the licensee to use the property, Section 105 of the Transfer of Property Act, 1882, terms lease in which a tenant has exclusive possession of the property for a specified time period to the exclusion of everyone, including the owner.

Lease Agreement- Rental leases generally last for 12 months, although many landlords opt for an 11 month lease to pass up rental control laws. Rental leases can habitually be simply extended or shortened if negotiated with the landlord in advance. Most rental leases need a minimum occupation period equivalent to the duration of the lease.

The former set of rules is mostly used to rent out commercial properties across the country. Major state like Maharashtra, especially in Mumbai follows the same procedure while renting commercial spaces. A leave licence agreement doesn’t really have much in favour of the tenants related to their right of the tenancy. It’s the landlord protective mechanism to wit. It’s mostly due to the ignorance of people make snafu in order of the application.
You can actually make a lot of money with your apartment on rent. But most of the people in metro and Tier I and II cities fear of renting apartments fearing immoral claim by the tenants and never-ending litigations. As licence agreement creates a big hole inside the pocket, thus landlords mostly go with the lease option. Licence agreement doesn’t include stamp duties, whereas it’s as costly as the stamp duty in most of the cases. But it’s wiser to be cautious if you want to avoid unnecessary future problems. Thus, it’s advisable to stick to the licence agreement even if it’s costly.

A directive structure under the draft Model Tenancy Act has also been proposed by the government of India for residential and commercial properties in India. The proposed law seeks to bring stability the rights and duties of both landlord and the tenant under a contract (through legal route). The draft discuses about setting up of rent courts rent authorities and rent tribunals by the Centre, states and Union territories on the principle of “natural justice”.

-LNN (Liyans News Network)

New Project Launch Dimmed In Major Cities By 16% (Jan-March)

A negligible number of new launches across top eight cities witnessed an average decline of 14% year – on – year in 2016. For now, the residential unit launches have declined in 2016 by 12% to more or less 113,000 units and the unit launches continued to be cascading in the first quarter of 2017 as well. According to the Cushman & Wakefield report Country’s top 8 property markets have witnessed a 16% on-year reduction in new residential project launch which indicates that there’s a sag of 25,800 units of new launches in the in the Q1 2017.  New residential launches have dropped nearly 8% during the period April 2016 to March 2017 compared to the same period in 2015-16.

Following by a growing demand market is expecting natural flow in new project launches post RERA implementation. While most of the states are yet to submit respective RERA rules buyers are pretty unsure about the revisal of dynamic market graph. It’s prescribed that RERA implementation won’t collide with the current market price in the short to medium term.

Kolkata has always given a stable and fair market for top to bottom of the pyramid.  But these days, People are mostly choosing low budget flats in Kolkata over the luxury ones. Interestingly, there has been a hike in affordable project development of 30% compared to 25% in the same period in FY 2015-2016 counterbalancing the viable market demand. While, the sale of ultra-luxury residential projects have been dropped by 11% from 13% during the same period due to compressing market demand. Yet, a measured sale growth is predicted at the second half of 2017.

Major property markets such as Delhi, Bengaluru, Mumbai and Kolkata are currently sitting on huge unsold inventories. New launches in Bengaluru almost dipped by one-third compared to the previous quarter. Developers are trying to reduce their inventory level with attractive packages and bonny offerings in order to the push the sale upwards as well as to mature the present market condition which is kind of forcing them to freeze the new launches. It seems like builders have to wait for another couple of quarters prior to any new launch.

“RERA is the much awaited realty review platform. It will play a pivotal role in determining the economic framework of demand and supply. RERA will eliminate the faith dearth between buyers and builders. Residential sector will recover soon after the developer and the realtors start practicing in justifiable course realty under RERA domain as it will apply a uniform code of conduct for developers across country,”- said RERA (West Bengal Chapter) expert Mr. Mahesh Somani.