Govt. Forms Central Advisory Council for Active and Effective RERA Implementation

A 30-membered Central Advisory Council (CAC) has been set up by the central government of India for counselling on the implementation of the Real Estate (Regulation & Development) Act, 2016. The Minister of State for Housing and Urban Affairs will be the Chairperson of the council. Excepting the chairperson, the council will also have 8 members from the central ministry including Niti Aayog CEO, Secretaries of Ministry of Housing and Urban Affairs, Department of Revenue, Economic Affairs, Department of Industrial Policy and Promotion and Ministry of Corporate Affairs, showed a gazette notification from the Ministry of Housing and Urban Affairs.

This CAC will monitor whether homebuyers have been provided proper protection under the central Act with the proper implementation of RERA across the country. Chairpersons of Maharashtra, Gujarat, Madhya Pradesh, Assam and Karnataka RERA have already there in the council. Standing for the homebuyers’ there will be president of Forum for People’s Collective Efforts and Federation of Apartment Owners’ Association’s Chairman. The council also have representatives of real estate agents and construction workers. As per the notification the chairperson of the council will have the power to incorporate any individual or organization as a technical representative to take part in the meetings of the council.

Abhay Upadhyay, the President of Forum for People's Collective Efforts (FPCE) said, “Homebuyers and their interest are the focal point of RERA and its proper implementation would need constant feedback coming from them. We are thankful to the government of India for recognizing our efforts over the years in getting RERA enacted and thereby protecting the interest of homebuyers.”
There will state governments’ representation in the council as well. The five states that have been included in the council are- Uttar Pradesh, Haryana, Odisha, Tamil Nadu, and National Capital Territory of Delhi. Reportedly, the Managing Director of National Housing Bank (NHB) and CMD of Housing and Urban Development Council (HUDCO) will also be part of the council.

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After CREDAI Amrapali Homebuyers Now Move to NBCC, HUDCO

Amrapali projects seem to be the biggest troublemaker in property purchase history. Around 6000 homebuyers of Amrapali properties have asked the Uttar Pradhesh Government not to involve builders’ body CREDAI in the completion of the under construction projects and demanded assurances for the guideline to complete the rest of the productions.

An eight-member committal from various Amrapali projects met UP urban housing minister Suresh Khanna and proposed the government to bring state-run firms such as National Buildings Construction Corporation (NBCC) and Housing and Urban Development Corporation (HUDCO) to take over all the projects of Amrapali.

Mr. Rahul Kashyap from Amrapali Dream Valley project, an attendant member of the following meeting claimed, "It (CREDAI) itself is a builder lobby and has not even taken a single action in favour of homebuyers so far."

A three member panel constituted by the UP government to rack up this builder-buyer spat that had declared co-developers’ participation in the completion of the major unfinished projects.  Again the Builders body Confederation of Real Estate Developers' Associations of India (CREDAI) also suggested to het members or non-members to show up as investors or co-developers.

Yogi Adityanath, chief minister of Uttar Pradesh on Tuesday had also asked developers to ensure 50,000 apartments get delivered in the coming three months, ordering Noida, Greater Noida and Yamuna Expressway authorities to make possible the hand over procedure.

Homebuyers of several Amrapali projects has also seek clarification on what will happen to those projects where the construction has just competed to 20-30%  and for those where the construction process has even not started at all.

Hitesh Nakhasi, another Amrapali home buyer said, “We also clarification on the fast process of registries of those flat owners who had received the possession letters but are unable to complete the registration due to heavy dues Amrapali is supposed to pay to the authorities."

A total 13 FIR has been launched against six builders including Amrapali and Supertech. Yet, homebuyers had claimed that no actions had been taken so far against the incriminated people. They also demanded clarification on how would the government co-ordinate with the banks and HFCs for stop calculating EMIs and interests till the time possession will be allotted.

Reportedly Amrapali homebuyers had been on strike since Aug 12. If the outcome of this meeting with government wouldn’t satisfy their need, the buyers are on their toes to take their strike to the higher authority in order to secure their interest. They claimed that they had spent 8 long years with verbal assurance and now they seek everything penned.

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Leading cement manufacturers are eyeing Binani Cement assets post blooper indication by NCLT

Short while ago, the National Company Law Tribunal, Kolkata made a revelation that an insolvency plea against the Binani Cement filed by the Bank of Baroda. Soon after this news broke, top domestic cement players are busy in finding the shortest route to reach out the in-demand assets of the Brij Binani Group Company, in order to shore up their pan-Indian market presence and bump into a prospective value buy, multiple sources related to uncompleted negotiations on the conditions of the anonymity.
On July 25th, the National Company Law Appellate Tribunal, Kolkata ordered “on the basis of documents filed by the financial creditor (Bank of Baroda) that (the) corporate debtor (Binani Cement) has committed default in making payment of Rs97.7 crore and therefore... the application for initiating corporate insolvency resolution process deserves to be admitted.”

Binani cement is one of the most popular domestic brands in the cement industry. Apart from Binani there are other big-shot cement companies currently ruling the market; they are- Ultratech Cement, Shree Cement, Nirma, Dalmia Bharat and JSW cement. All these companies have got through the lenders and intended preliminary interest in Binani Cements. There is a lot of interest in the company and all these are at premature phases. The complete deal structure will be disclosed once the potential suitors will preserve their strategy-based on the final settlement plan sanctioned by the interim resolution professional and the lenders.

Binani holds a good export potential for the company’s latency in the middle-east along with the sizable mine reserves at the location of their plant. As an outcome, the cost of the production appears to be lesser. Thus, the assets of Binani Cements are attractive to the other major market player. Worthwhile mentioning that the plant location in Rajasthan holds a good access to the market of Gujrat. This is supposed to be another valid reason behind the high interest in the assets. As per the company website, Binani has a global manufacturing capacity of 11.25 million tons per annum (mtpa), with a domestic capacity of 6.25 mtpa with an integrated part of India and China and it has its grinding units in Dubai.

Tracking the cement productivity of the country, in the last one and a half years, most of the cement deals have been clogged in the range of $100-$135 per tonne in terms of enterprise value and have caught the sales capacity ranging between 5 mtpa- 20mtpa. The capacity of usage in north and western regions lies between 70-80% is a healthful number, because pan-India the capacity utilization is lower than 70%. Experts say the reason behind the failure of Binani is affliction in management impotence in setting up a restructuring plan.

-LNN (Liyans News Network)- Avail post GST sale on buying luxury flats in Rajarhat area. Get flat 7.5% off on hi-end projects in Rajarhat and New Town area. If interested, visit www.liyans.com to explore multiple luring projects against your requirement. 

Few Important Guidelines About REITs and InvITs

SEBI- the Securities and Exchange Board of India has introduced an online listing process to speed up the registration process of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Here we discuss about the benefits that could be on your way through investing in these securities. Investing in these securities will raise resources to meet a funds crisis at present. Experts also suggest that these bonds could generate as $20 billion. The entire process of registration is a quick and cost-effective process. It seems like this announcement has bought some good news for the industry stakeholders. After registration, both the REITs and InvITs are extensively profits the real estate and the infrastructure sections.

REITs- It’s a kind of mutual fund that will boost the investment volume of the real estate sector by raising funds from the individual investors and directly investing bulk real estate. In return the unit holders will receive a share in profit proportionate to the amount contributed.

How it will benefit developers
REITs will bring financial stability in all real estate transactions. Especially developers who have been combating with the increasing debt volume, it’s a safe choice of investment with less market risk. In case there’s any shortage of fund during any project development, this investment will pull in the inflow and expedite the development process as well. Again, funded that have locked up in various on hand projects could be released to ease up other development processes.

For the investors 
It’s just like investing in share market with lesser risk involvement. Investors will get rental returns along with their monthly investment. Without direct property purchase, an investor can still earn from the invested units and count the returns. It will reduce the financial reliance on the banks as well. Investors can invest whenever they want and when feasible they can withdraw it as well.
In anyone invest in REITs any amount of small money will do. If you want to buy property in Kolkata which seems out of your reach, mark our words investing in REITs will be much cost-effective to you. It’s a good substitute to real estate investment as well as income-generating provision.

InvITs- InvIT provides the scheme to invest in the infrastructure sector. Here fund is collected from general public sector and directly channelize in many infrastructure projects across the country either thorough a Special Purpose Vehicle (SPV), in case Public Private Partnership (PPP) development, an investment can only via SPV.

InvITs provide long-term refinance to infrastructure developments. Free up developers existing capital for investing into a new one. Investing in InvITs will boost the infrastructure sector. Thus, it aims to attract foreign investments, so that developers hold to wide spread portfolio of infrastructure assets.

LNN- (Liyans News Network)





-LNN (Liyans News Network)

India To Contribute About 35% Of Total Office Space Absorption In APAC in 2017

A Cushman and Wakefield report revealed that by the end of 2017, India to measure out nearly 35% of the total absorption in office places among the Asia Pacific countries which is expected to be continued over the upcoming couple of years.
On which Ansul Jain, Managing Director, India, Cushman and Wakefield said, -“Backed by various policy reforms and government initiatives, the country today offers investors a more transparent and accountable business and investor-friendly environment.”
Jain also added,-“The ongoing technological changes and growth of the technology profession will continue to create demand for space, particularly in markets like Bengaluru, Manila, Hyderabad and Shenzhen.”

Sources revealed that where the major volume of demand is expected to be derived from IT-BPM sector, shockingly replaced by e-commerce, BFSI, Consulting agencies and health care sector. During this forecasted period of growth these are the industries showing promising dexterity to lead and accelerate the growth.
The report says that the commercial property demand in India remained stable during the first quarter of 2017, despite the foreseen geo-political and industrial catastrophe. The report also indicated, “The banking, financial services and insurance (BFSI) sector was the biggest driver of leasing activity in Asia Pacific. Prominent financial institutions have secured major leases over 50,000 sq ft in India, Hong Kong and Australia."

There is a forecast, where it’s stated that Asia pacific countries could set a benchmark in leasing office spaces in 2017. Where India will be solely contributing annual average of 32-35 per cent absorption during this forecast period. India is also to observe an office space supply of 125 msf between 2017-2019, since more banks are planning to expand and develop their corporate banking and wealth management business. The BFSI sector is expected to account for 25%-30% of fresh leases in the upcoming 2-3 years.

-LNN (Liyans News Network)-Buy luxury property in north Kolkata under our professional guidance. Visit our online property portal for advertise your property for free. Connect to a wide range of genuine buyers on this global interactive platform. Enhance the network of your property sale.

Let’s Take a Tour Around Major Policy Changes that Indian Realty Market Encountered Post Independence

Industrial development doesn’t get built in a day. From the inception to visible growth of industry bank on governmental intervene and individual business policies. An existing policy develops with extract of the previous one with some additional dressing. Indian economical policies are decided on the viewpoint of market conditions, geographical circumstances, socio-economic changes in population and other major and minor principles of a particular time period.

Real estate sector is globally one of the major revenue generating sectors when it comes to the contribution to the economy. Alike the other countries Indian real estate is not that on the button. Yet, it contributes 3-5% in national GDP; hence, the sector is largely blamed for lack of accountability.  Here we will talk about few major policy changes and its impact on Indian realty post independence.
India is about to complete 7 decades of its independence and it’s worthwhile to recall those policies that have had a resilient impact in Indian real estate.

1. Chandigarh and Gandhinagar were the first and second capital cities that came into picture in 1952 and 1960 respectively. Planning of the new cities had been started to be materialized.

2. The Maharashtra Regional and Town Planning Act, 1966, first integrated the practice of development plans and town planning. The planning commission then stretched it further towards district development and issued its first guidelines for district planning in 1969.

3. To tone down increasing land prices in urban areas and to provide low income housing, The Urban Land (Ceiling and Regulation) Act was enacted in 1976, which totally failed to serve its purpose and ended up worsening the availability of land for social infrastructure and social housing apart from states like Kerala and West Bengal.

4. Housing and Urban Development Company was the first real estate correlated government institution developed in 1970. Thereafter City and Industrial Development Corporation in 1971, the Mumbai Metropolitan Region Development Authority in 1975, National Housing Bank in 1988, and the Housing Development Finance Corporation in 1994 were set up one by one to shape up and boost the real estate industry.

5. In 1991, when Indian market was on the way to recover its rising fiscal deficits, some monopolizing reformation occurred, which seeded the modernization of economy. Creating job opportunities, setting up big market for the consumers, access to multiple products and services- these were some revolutionary influx which paved the way for big MNCs arrival in Indian market. World-class office spaces started sprouting with this development.

6. The phase of 1994-99 was the imprint of India’s first property cycle as the market. NRI and Foreign capitals started delving into Indian realty which hiked the property prices up. The market took south post 1995 due to fundamental disorganization. The misfortune continued with the approach of the Asian Financial Crisis in 1997-98. Foreign capital just got vanished from the market overnight.

7. In 1992, the concept of commercialization of airspace above transit routes was introduced at Vashi station. Sanpada, Juinagar, Nerul and CBD Belapur – on the same railway line followed the track of Vashi. Seawoods-Darave, the latest transformation in 2017 railway station was a huge hit.

8. India got its recognition in the global software business. The inception of Y2K turned out to be fruitful for Indian realty business. IT sectors and foreign companies started setting up offices in cities like Hyderabad and Bengaluru during this period which advanced residential and commercial requirement.

9. Foreign Direct Investment was allowed to invest in real estate in 2005, which led to complete transformation in business practises and product offering in real estate.

10. India’s first retail mall had been introduced in Chennai-‘Spencer Plaza’ in the early 2000.

11. With the governmental sanction of reconstruction and remodelling brownfield and Greenfield
airports through public-private partnership, the idea of airport cities and airport precinct real estate was came in fact.

12. The crash of Lehman Brothers in 2008, followed by sub-prime crisis led investors questioning the security of investment in asset classes. Global financial slowdown had a big blow in commercial real estate market and more or less the residential market too. But Indian residential market recovered within no time.

13. Implementation of RERA- the Real Estate Regulation (and Development) Act in Mat 1, 2017 has been considered as a major reformation of the real estate sector. With an objective of securing the buyers rights RERA will be the watchdog of entire real estate transactions of the country. RERA will empower homebuyers with more confident in terms of real estate investments. Small-scale developers will be non-existent as continuation of business under RERA purview will be a bit too much for them.

14. ‘Housing for all by 2022’- an ambitious project of central government is another scoop aiming to boost Indian real estate sale. Providing home for lower and medium income group at moderate price and prohibition of illegal land acquisition are backing this scheme. India is set to provide 20 million homes by 2022 to the economically weaker section of the country.

15. The Real Estate Investment Trusts will allow the investors of every budget chipping in prime commercial real estate market. REIT was first introduced in 2014.  It will open a new sky for the development of modern commercial spaces as well as rising rentals across their micro markets.

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Real Estate Slowdown- A Retrospective Overview

Indian property prices are to go up in coming days. The resurgence of property price attributes to the recent couple of policy changes of Indian government. Government is now aiming to attract global revenue into domestic economy. Affordable housing sector is supposed to be the key resource with which government is targeting to bring in. Meanwhile, rumour has it, both residential and commercial business in the country are about to see a corresponding slowdown.

At present developers are busy in reframing their business and the procedure of project registration with regulatory authority and they are very much annoyed with the rigid provisions of RERA. Sustaining business under RERA intervene won’t be that straightforward. There’s a double digit jump in home loan sector derived from loans of lesser than 25 lac in value. Affordable housing sector alone contributed 30% of the total procurement. 33 percent overall surges in home loan over a year earlier.
There is also another report which far from the original which said that there was a decline of one per cent in the number of home loan disbursements of over Rs 25 lakh in value. It can be mentioned as a slowdown anyhow, even though the margin is negligible. Up till now this calculation stands less than a fourth of the total number of home loans disbursed. Especially, the share of loans of more than Rs 25 lakh, disbursed for home loans came down to 24 per cent from 30 per cent the prior year. This holds solid and glaring that in 2016-17 a higher number of people preferred to seek loans of minor denomination, in comparison with 2015-16. Also, regardless of a decline in the number, the total number of loan disbursements during the year raised 23 per cent.

Speaking about the low budget flats under PMAY, it’s foreseen with this pace of project development it’s impossible for affordable housing sector to meet the deadline of 2022. Both the rural and urban projects under central government flagship are mostly on calendar. Even 30% of the project development is not accomplished in a right manner. Low-budget flats in Kolkata and its outline areas are yet to be materialized. Between FY 2016-17, a new trend has been observed in home loan disbursement sector i.e. - a huge slog of 48 per cent in the number of loans of up to Rs. 2 lacs which is also an upshot of government’s push to promote ‘Housing for All by 2022’. In this horse race luxury housing sector has been constantly encountering lower market demand successively. New project launch and luxury property sale have been notably reduced post GST. Yet mid budget flats, those are ranged under Rs. 50 lacs are still in demand. But residential properties with price tags of Rs 1 crore and more are detectably going under on-hand inventory category. These hi-end properties are mostly from the tier I cities.

From its inception till now affordable housing sector has been the centre of the attention of the administrative policies. Accordingly, the developers have been directed towards the development process of budget housing instead of luxurious one. Thus, there is a decline in contention for hi-end residential developments.

-LNN (Liyans News Network)

Few Important RERA Revelations

Projects that have completed the construction part, yet to set up the promised amenities won’t be eligible to the have Occupation Certificates. There are total 82 of such ongoing projects in Noida and Greater Noida location as per the sources. Both states are trying to safeguard those projects that have been issued or applied for occupancy certificates from RERA realization. These builder projects won’t be under Haryana RERA ambit. Unchanged criteria of ongoing projects would have created a huge problem. Several groups’ of homebuyers were on the verge of filing petitions in court. This indicates a large number of ongoing projects will fail to obtain the benefits of RERA as these projects won’t be required to register.

State RERA rules of Haryana have kept out massive numbers of ongoing projects of revised RERA regime. Out of 90% ongoing projects belong to Gurugram. Noida City holds the top position, in worst deliverance of the projects. Market experts hope a little difference in Gurugram as both UP and Haryana government have used same yardsticks for under construction projects which are supposed to be come under their state Real Estate (Regulation and Development) Act. This appears to be a big-time difference with the central RERA regime. Central RERA rules made it clear that no project can be dispensed without completion certificate. In Gurugram 90% of the estimated projects (flats/houses) approx 1.7 lac units are in several completion stages of development. These projects have either received the completion certificates or have applies for the same. Sources have also revealed that many of these projects have got part-completion (also an occupancy paper). These projects won’t be part of Haryana RERA. Part-completion doesn’t make the project to be counted out from RERA.
In a real estate project if any tower is under construction and other towers are complete, builder has to apply for separate completion certificate for the under-construction tower. This is supposed to be the most discernable dilution of central RERA Act. Buyers are extremely unhappy with the state government’s rule as it favours the builders where the main issue of the state has been delayed project deliverance.

“Shunning or diluting central law dents the fundamental purpose of RERA implementation. RERA aims at how well the buyers’ rights get protected throughout the entire real estate transaction starting from property selection to the deliverance. Real estate sector dwelling with negative market sentiment, majorly for the delayed deliverance and abrupt change is course of actions by the builders. Inferior quality of the construction or dearth of amenities- these are the most prominent accusations among the others. As West Bengal is on the verge of RERA notification, buyers keep on questioning us whether the state RERA will do complete justice in order to protect the buyers’ rights.”

Dilip Bose, a retired defence professional said, “I have purchased a property in north Kolkata in Feb’ 2016, which was supposed to be delivered by this year June. The developer is constantly holding us up saying he has not received the OC from the state RERA authority. Under this circumstance I doubt how far RERA will be effective to safeguard buyers’ rights”.
Alike Mr. Bose the entire real estate market is in vague whether RERA will be that powerful to provide unbiased judgement to the buyers. Let’s just wait till July 31.

-LNN (Liyans News Network)

For Smart City Projects It Requires Bigger Contribution From The Architects

Property demand might wave under the flagship of the smart city project. But, execute this mammoth project; it requires well-skilled architects in bulk. Presently, the country needs creative and ambitious input from the best architects of the cities. Recently a seminar held in the capital on ‘Redefining Indian Sustainable Smart Cities’, which was attended by noted architects and market experts. Architects don’t only have major roles in planning the entire project, but they will also make sure the plan is full-proof to take away future issues. The seminar was organized by Outokumpu India, a Finland-based Stainless steel giant.

Government has selected 100 cities for ‘100 smart city mission’ for this massive project. A sincere execution of this project can boom the entire real estate market. Smart city projects are having all the technical and engineering support, but architects are missing from the upcoming projects in the country, which is major concern of the market players at present. Speaking of smart cities, Kolkata got to know about the smart city concept with the inception of the flats in Rajarhat.

Architects have a significant role in forming the model of the smart cities, keeping in mind major bullets such as increasing population and abrupt changes in climatic condition. For solving these potential threats, the Council of Architecture (COA) is setting up five research training institutes (architectural colleges) in Delhi, Bangalore, Mumbai, Bhopal, and Bhubaneshwar. These advanced colleges will be having model making labs and climate labs, for catering better knowledge in architectural studies. Presently, 90% of architectural colleges don’t have this kind of lab facility, as it’s a costly affair.

A model smart city should be having basic infrastructure like- clean water supply, proper sanitation system, urban transport connectivity and digitally sound public security with long-lasting effect. Stainless steel would be the preferred material for building construction and durability within budget. Using high-quality stainless steel will bring down the future maintenance cost. Not just high-quality buildings and aesthetics smart city project is aiming to groom the poverty level, employment sector, greeneries, social amenities and related services for maintenance.

-LNN (Liyans News Network)- Enjoy huge discount on luxury properties under the category of  residential property sale in Kolkata available under www.liyans.com. Increase your savings with your home buying. Visit us for investing in upcoming smart projects in Kolkata. 

Realtors Demand M-sand Production To Snowball

Private players are facing major criticism for reducing the production volume of river sand (M-sand) from the entire realty market of Coimbatore.  This time construction contractors and realtors association have accused manufacturing companies and relatives authorities for the same. As per the latest market statement the supply of M-sand has dropped from 40,000 loads of sand to 4000 per day.

The prime reason behind this shrinkage in supply is limited numbers of manufacturers in the region. Sources say that, there are not more than 12 local manufacture companies of M-sand in the area.  In a press conference subjected to the scant production issue president of the Builders Association of India, Coimbatore, K Rajavel said, "Earlier the cost of one load (275cubic feet) was Rs 12,000, and now it costs us Rs 35,000. While we are with the state government in trying to regularise the sale of river sand, we urge the chief minister to regularise the manufacturing of M-sand too."

In Coimbatore the total production capacity of M-sand is 50 loads as revealed by the president of the Coimbatore Civil Engineers Association R Karthick. Apparently this production is insufficient to serve for Coimbatore region. In comparison to Coimbatore other states are manufacturing greater volume of M-sand. Using M-sand is better than using natural river sand in the construction process. River sand is really useful for plastering purpose. M-sand (Manufactured sand) is perfect alternative river sand which eventually dries up fast. Again M-sand is cheaper than river sand (Rs. 2000 for 100 cubic feet).

Now, realtors of Coimbatore are unable to purchase M-sand from the next-door states as they are legally bound by the Mines Act. Thus, the only way to fulfil the requirement of the state is to make better the production volume of districts and the states. State government should intervene in this matter as soon as possible to standardize and the licensing the production process as well.
Depending on the capacity it requires 5 acres of land and 3-5 crore investments on machinery, materials and man power. It’s not that there is shortage of mining in the state. On an average 100 people from different districts are willing to set-up manufacturing units and they are waiting for the state government’s single nod.

Realtors confirmed that this matter is already on the table of the state ministry and the chief minister of the state has promised to check out this matter. Former chief minister J Jayalalithaa announced that M-sand can be used for the construction purpose of offices and PWD buildings. Currently, the realtors are facing problems regarding mining, environmental clearance and power permissions. In a bid to aware the state government to their demands, the realtors’ associations will march from the Womens' Polytechnic College to VOC Park and meet collector T N Hariaharan and place their demands.
-LNN (Liyans News Network)- Browse our online property portal if you are interested in buying flats in Rajahat. Only in Kolkata we are having the best wide range of listed luxury properties in Rajarhat. Have a close look at the lifestyle apartments/penthouse/ bungalows in Rajarhat.

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)

Bank Accountable To Redeem The Loss Of Documents Taken Against Loan

Commonly, while buying property in Kolkata to have maximum relief from property investment barring residential property sale in Kolkata, everybody go for home-loans, provided by various national and private banks as home-loan interest rates have dramatically curbed nationwide. While borrowing loan from any financial organization we all have to go through certain procedure. We have to furnish provide concurrent security to make safe against default in repayment. For a moment, assume your bank has lost one of the regular forms like the title deed and is unable to return it after the loan repayment! Ahem Ahem…
No place for any guesswork this actually happened with Kerala’s Ebrahimkutty. By depositing the original title deed Ebrahimkutty took a loan from Mayyanad Regional Co-operative Bank of his property in Mayyanadu village of Kerala. In 1999, while the repayment of the loan Bank failed to return the title deed.  After several attempts the bank couldn’t find it at all,after verbally informing to Ebrahimkutty, bank further proceeded loan to Ebrahimkutty against the same title deed. These loans were also paid in outstanding course. After the last loan closed on September 8, 2012, bank still couldn’t trace out the deed.

The bank then informed Ebrahimkutty that the original deed was not there while shifted its building premises. Putting away with the repetition Ebrahimkutty filed an objection before the Kerala State Commission. He claimed that his property value was Rs 75 lacs, but he wasn’t unable sell it as the bank had lost the original deed. He asked for a return of Rs 25 lacs.

The state commission ordered the bank to return the original deed and also compensate worth Rs 10 lacs within a month, or along with 12% interest, if deferred. In case of letdown, to return the title deed the bank was directed to issue a certificate in print about the failure. The bank to appealed against the order keeping the point highlighted that if misplace of original deed happened in 1999, then after 12 years why a complaint should even be considered? Bank also disagreed that Ebrahimkutty had not been able to show that he had put up with any harm due to the loss of the title deed. Ebrahimkutty fought for the bank had simply owned up that the deed had been misplaced, but had never made a clean breast that they had lost it.

The National Commission scrutinized that if a document is misplaced, there is a chance that it could be recouped sometimes later. If it is gone astray, the there’s no scope of recovery. The Commission also observed that the loss of the title deed would impinge on the value of the property; subsequently Ebrahimkutty would be permitted to be compensated.
Consequently, by its order of February 20 delivered by Dr B C Gupta for the Bench along with Dr S M Kantikar, the National Commission proved the bank culpable of insufficiency in service. Nevertheless, the reimbursement of Rs10 lakhs which had been granted by the state commission was considered to be quite high, so the National Commission adapted the order and abridged the compensation to Rs 5 lakhs, to be compensated within four weeks, or along with 12% interest in case of postponement.

_ LNN (Liyans News Network)

The most effective method to Easily Find The Right Real Estate Agent For You

Purchasing or offering some property could be truly energizing, yet troubling as well. Why energizing? You can answer it well, however why upsetting? That is on account of it's confused, for you'll have to gather a ton of data – about finding a purchaser/merchant, areas, value run, documentation systems et cetera – to take a correct choice. Else, you may apologize later over your choice. Try not to stress as you can without much of a stretch ride out of this issue with the assistance of a decent land specialist.

There might be various land operators around your whereabouts. In any case, when you search for one to look for help with purchasing or offering some property, you'll certainly need a correct land operator for you. What's more, why not! The correct land specialist assembles an affinity with you, comprehends your requirements and presents to you the choices you long for. Discover tips to get the correct land operator.

Go For A Knowledgeable And Experienced Agent 

Most specialists suggest going for an educated and experienced operator. Specialists say that a correct land operator for you would be the one with at least five years of experience. Despite the fact that, they additionally say that one with great measure of data and less experience than that can likewise infer great outcomes. To know whether the operator is educated and very much experienced, you can meet a portion of the past or late customers and clear your questions.

Consider The person who deals with ends of the week 

Offering significance to this point may sound some weird, yet it is as vital as alternate ones. Being occasions, you can have property-visits or meet purchasers effectively on ends of the week. Something else, your calendar may turn out to be extremely boisterous amid weekdays, which can antagonistically influence your work. Another imperative thing, incredible operators are for the most part occupied because of their workload. Subsequently, the vast majority of them work on ends of the week as well. Check if your operator is experiencing adequate workload, or they just boast about his work pointlessly.

The One Who Has A License 

There are specialists having no expert participation or extra preparing, and there are operators who are authorized and have extra advantages of instruction and preparing in the field of genuine domains. They likewise have a place with expert affiliation. Did you see the distinction? All in all, which sort of specialist would you want to pick? Clearly, the one that is proficient and more capable.

The One Who Is Available Online 

85% of the purchasers are said to at first scan for homes on the web. Indeed, even merchants additionally peruse the web with a specific end goal to get purchasers. Due to the advantageous part of the advanced world, awesome land specialists are accessible on the web, utilize email accounts and typically convey portable workstations with them. The universe of web delivers numerous open doors for them and for dealer and purchasers too. See whether your operator is lingering behind their rivals in the advanced world.

Initially Meet A Few Agents, Then Choose One 

It is not ensured that the main land specialist you meet will be the correct one for you. Meet a couple of specialists and impart your requirements or interests to them. Along these lines, you can feel certain about picking an operator who appears to be encouraging to you. What's more, recall not to consent to any purchaser's arrangement without going to the property. To begin with, make certain about the arrangement so you can unquestionably consent to the arrangement.

Conclusion 

It is imperative to Buy Commercial property in Kolkata Also while purchasing or offering some property as they can mitigate your misery and make your hunt all the more energizing. When will get this much from them, you ought to rush to have the correct land operator.

Buyer’s Cry: To Buy or Not To Buy an Asset

Potential homebuyers have always been categorized as either buyers or tenants. For instance- Mr. Shubhajit Chatterjee was looking for a suitable property in north Kolkata for his family of four. But his search and research went on without any limit as he was totally perplexed with the various options he was getting within his budget. There were luxury properties with rental provision and as always there were on hands. In this course he almost had reached to a saturation point where he had to make a full stop to it. He chose buying over rent. Here’s why this confliction between buying and renting shoots a potential buyer at the beginning of the entire occasion-

Rented properties 
Rental properties don’t need humongous money to be invested after. The choice has flexibility of alteration of residential items. In case any problem with the property; landlord is the person to contact without spending a penny from your pocket. Hardly 20% of the property value has to be paid during the contract. So there is no burden of interest of home loans involved in the business.

Buy properties
Your asset is your sole possession. It’s an investment of lifetime. None can throw you out of your house as there is nothing that deals with any contract here. Stability of an asset brings you the optimum level of security and pleasure. Over the time the valuation of the property gets higher. Real estate investment is much secured than investing in any bond or mutual fund which envelops market risks. There would be no tantrums of any landlord.

If you take a home loan to buy your residential property the principal amount repaid up to 1.5 lakhs qualifies for presumption under Section 80C; while up to 2 lakhs of interest paid is tax-deductible under Section 24. For tax deduction buying asset could be a safe choice.
Rather than rented properties owning asset has a greater sentiment involved. You are going to have the entire control of your property for decades. You can put them on rent or use as PG accommodation too. Thus owning home makes more sense than being a complaining tenant.

_ By LNN (Liyans News Network) 

It’s 60% Returns in 2 Years For The Buyers

Mahindra Lifespaces a residential project was sold at 2275 Rs per sq ft during the initial offering stage. Buyers of these properties are mostly were the ultimate users. The combine end user ratio was 80:20, while being in the under construction these apartments used to have this ratio at 50:50 level. People who were interested in buying these properties have already done their investment. Roughly, withdrawal level was 2% after the post development stage. Now after the demonetization announcement some abrupt changes have come in these back out percentage. After the declaration of money ban buyers who had already paid the booking amount started thinking that the currency ban would have a correctional effect on builders’ inventories. They were in total confusion whether the price will rise or go down not at all for the builders’ capability of project deliverance on time. Now it’s retailing about Rs 5000 per sq ft. Last set of buyers are likely to get 25-30% returns.  700 units are handed possession and over 500 families have already occupied.

Speaking about the area like Dwarka Expressway has witnessed a lot of developments starting from the year 2009. With the each passing day this place is likely to see more and more potential property buyers with positive buying sentiment. Now with the decision of central government to connect the area with 42 mtr 2 lane expressways will fuel up the progress of the area on a broader spectrum. Now we try to explore why people are interested in investing in these properties, in Kolkata the situation is reverse rather than laying out money on residential properties people are keen to buy commercial properties in Kolkata in areas like Rajarhat and Salt Lake. These two areas have come a long way in terms of infrastructural growth.

Dwarka Expressway the investment zone 
People will have a wide ranged offering of residential units based on individual prices. All the residential apartments are uniquely crafted with breathtaking new age features. The average claim along the Dwarka Expressway is for 2&3 BHK units of about 1000-1450 sq ft in the below Rs 1 crore per unit category. Not only that investors are putting their money on these projects as they find the value of investment in these apartments are higher than investing any other asset of the city.

On the completion of the highway 
As soon as the highway connector will put to an end chances of a price hike is likely to be foreseen. Currently, Gurgaon is retailing for Rs 9,000-10,000 per sq ft. Price to go up to Rs 8,000 once the Expressway is done. The Bijwasan connectivity will definitely increase convenience of the buyers. It says that with the new investment comes up it will make more than 60% returns within the 2-3 years with the infrastructure growth.

Chief commercial influence 
The expressway connecting Delhi and Gurgaon have wide spread open spaces all around. Its immediacy to the recognized business hub of Udyog Vihar is a booster. The Metro connectivity between the Dwarka Expressway development and the established Gurgaon city is also a bonus gain. Conversely, prices are at least 10% cheaper than the developed portion of the city which can be easily compared with the flats in Rajarhat area of extended Kolkata. These flats are outstandingly designed and of lower price in comparison to the other key areas of Kolkata. These properties are also situated in the proximity of IT hub Salt Lake.

In conversation with Ramesh Ranganathan, business head - Residential, North and West, Mahindra Lifespaces on the recent property buying trend in Dwarka Expressway Ranganathan shares, “In 2009 we saw Sector 110 as a place close to the existing social infrastructure in Palam Vihar. The land was really close to Palam Vihar and was cheaper than rest of Gurgaon and so we found it economically viable. Since social infrastructure was already in place, we found it easy to sell to people who stayed in Palam Vihar. These people wanted to upgrade to gated communities with club houses and lifestyle features.” 

Realty trends in 2016

2016, has seen some real changes which over the long haul will legitimize the business which is frequently viewed as the 'awful kid' of the economy. The administration passed the RERA (Real Estate Regulation and Development Act 2016) and the Benami Transactions Act which, alongside the demonetization, will go far in getting straightforwardness into the division. Ideally, the normal man will profit by these new laws.

Demonetization 

The burdens of the land part are many beginning with a liquidity crunch, unsold stock, value remedies and drowsy deals. As per sources, this part is probably going to be influenced to a degree by demonetization as a great part of the dark cash in the division is emptied here. Purchasers remain to increase here as it places them in a decent position to deal with designers.

The essential deals fragment, that is, another loft straight from the manufacturer, is all things considered the space of banks and other institutional loan specialists thus the arrangements are for the most part considered to the straightforward. In any case, genuine purchasers may have the capacity to get a decent arrangement from developers. This would be a decent time to search for prepared to move in Affordable flats in kolkata .

In the littler towns and level 2 and 3 urban communities where money is probably going to be a piece of the arrangement will be hit and costs may drop. It is reasonable to embrace a hold up and watch arrangement here. In the private section, the offer of more established condos, or the optional deal market is probably going to take real hit as money has dependably been a basic part of these arrangements. In the transient costs will drop altogether in this portion. In the medium term costs may drop insignificantly to stand a little lower than they were before demonetization.

Exchanges of top of the line or premium class homes will likewise be affected by the demonetization as expansive parts of the arrangements are regularly in real money, specialists say. This will be a decent time for purchasers to get great arrangements on this property sort. Another segment which will be affected by this move is the offer of agrarian land which for the most part has a huge money segment. Notwithstanding, exchanges which include institutional banks are probably not going to be affected.

RERA and Benami Transactions 

RERA will guarantee that the home purchasers are enough secured and that promoters and engineers submit to the standards and controls. Numerous rich individuals, who wished to stop their unaccounted cash, frequently went in for benami exchanges in land to abstain from paying expense. This will never again be conceivable; in any event, till these cunning folks discover another route around this.

The greatest effect of this correction will be in land exchanges, which in India, take one to two years to finish. Most land proprietors are currently deciding on joint endeavors. It is likewise trusted that there will be more clarity on the land titles which has been a terror in land exchanges.

The ground reality 

Explore reports show that house deals went up in the primary half (H1) of 2016 in the six metro urban areas of Mumbai, Pune, Chennai, Bangalore, Ahmedabad and Hyderabad; a development following three years. As far as volume the lodging market developed in Mumbai and Bangalore. In any case, the lodging markets in Kolkata, Chennai and the National Capital Region (NCR) have demonstrated negative development. The explanations behind the development have been ascribed to the value rectifications in most metro markets alongside the execution of RERA (Real Estate Regulatory Authority), and in addition the late revisions to the Real Estate Investment Trusts (REITs).

The quantity of new dispatches likewise descended amid this first 50% of 2016 in eight metro urban communities. 

Unsold stock in real metros began subsiding amid H1 2016, to under 6.6 lakh units, with Pune, Mumbai, Hyderabad and Chennai driving the charge. With unsold stock, which incorporates both completed and homes under development, going down, value amendment was likewise seen in many markets. In the Mumbai Metropolitan Region (MMR), the interest for homes is chiefly in the financial plan and mid portion. In the MMR the request developed fundamentally in Thane and Navi Mumbai.

2017 Will Introduce Deducted Home Loan Rates Nationally

Banks will likely to reduce the rates of home loans in the coming financial year.  As an outcome of which probable homebuyers will get a chance to buy a bigger home than they thought of earlier, affirms the market speculation. In conversation with the chairman of SBI Arundhati Bhattacharya states, as an aftereffect of demonetarization banks are now going through the cash crunch and the interest level of home loans will reduce by a fourth. If you want to buy commercial property in Kolkata, postpone your investment program for couple of months more.

The president of the Bengal chapter of Confederation of Real Estate Developers' Association of India (CREDAI-Bengal), Nandu Belani, foresees the EMI of home loans becoming more affordable over the next 12 months with a succession of interest rate cuts. "We will know about the exact situation post demonetization when the Centre comes out with firm numbers. Interest rate cuts should happen early next year, followed by another round after the Budget. From 9.25-9.75% at present, home loans should be available at 7-7.5% around this time next year," said Belani. He also pointed out, "If someone had budgeted an EMI of up to Rs 32,000 for a loan of Rs 30 lakh, the person can now take a loan of Rs 36 lakh. The enhancement of a person's loan capacity by 11-12% can translate to the person being able to afford a bigger home or more conveniently located property."

For instance calculating abruptly in a 15 year term a 25% lesser of interest rates could see EMIs on Rs 1 lakh will save of Rs 100 a month. In a 20-year loan term, the saving can be almost doubled the amount. On a loan of Rs 30 lakh of 15-year tenure, the snowballing savings on EMI might be in excess of Rs 5,000. Experts are hopeful that with the reduction of home loan EMI rates will uphold a steady balance. Developers might get a profitable deal as they will be able to deal with the interesting EMI cut rates and also have an access of cheaper capital. Simultaneously they are waiting the micro market condition to get back into business. With the development of the micro market like Tollygunge, Garia and New Town developers are expectant to see some optimistic sentiments in the real estate market.

The former president of Bengal CREDAI Sushil Mohta stated, “For the past three years, there have been cost increases but no price hike. When new projects are launched, new costs will be computed. I expect a marginal hike in prices because no one wants to turn prospective customers away." "Now that RERA is in place, there will be no soft launches. Developers have to wait for all the clearances to launch a project and that will mean an increase in compliance cost as one has to pay interest on the holding cost," Mohta clarified.
From the developers’ perspective this will denote a huge liberation to strained builders who are either in the unification or rat on form. Mohta does not expect new projects to be launched till 2018 as developers are mortified of making new development till they take hold of the trade in of the Notified Real Estate (Regulation and Development) Act, 2016.

By LNN (Liyans News Network)

Trading property gets easier with online real estate portals

Aren’t you receiving positive response from your previous posted property ads on your dailies? Even after spending healthy amount after popular print mediums? Are you full up with regular calls with deficient bargaining options? In this entire prolonged course what plays a key role is gain the correct price which somehow goes on missing within this tug of war between the buyer and the seller. For selling/buying and renting residential or commercial property the recent and inexpensive approach is to post your property requirement online. With online real estate posting your ad is presented to the globally targeted viewers round the clock over the year. But before going on-air recognize your needs and requirement well.

Posting property requirement- can be performed even by a kid. It’s all about clicking, cropping, and uploading the current image of your asset under any crowd-pleasing portal. Mostly these sites offer this broadcast for free or often they charge a minimal sum to promote your ad on a random basis. This is the most beneficial way out of getting your requirement highlighted. Moreover you would find a major disparity between the return you are getting after taking your post online and the price quotation which you had from your local real estate agent lately. You will get amazed with the feedback you get from your online display.

Now speaking about the best portal to post your property requirement the first question arises in your mind would be how to select the exact portal that suits your need the most? Isn’t it? There is absolutely no reason to get wrinkles for the same occasion. Forfeit yourself to any leading search engine, it will return with the same according to your query. The best of real estate portals will be seen on the top of the table. Settling with the old classified property portal has always been favorable. Go through their FAQs and help sections on how well they sell properties. Point to be memorized- don’t leave any personal details rather than your contact number and related images of your possession while posting your property requirement online for safety purpose.