Festive Real Estate Offers Are Just Gimmicks or These Even Decrease The Cost of Property?

Festive season brings the shower of offers for the homebuyers to ease their property investment. Sundry of offers like free, car, no GST, no EMI till the possession, several payback schemes and the list goes on for luring the buyers’ interest to real estate sector. Some people think that this is nothing but the marketing strategy of the promoters to sell out unsold inventories throughout the year in order to take the real estate sale upward. Definitely builders are incumbent upon high debt cost for unsold units. Thus, they offer a series of discounts to attract buyers towards real estate ventures.

Before running after the catch, we advise you to go through the offers minutely. These discounts can be divided into four major categories. 1. Cash related discounts. 2. Non-cash discounts. 3. Rewarding scheme or 4. Waive off GST.  Do these offers really bring down the cost of property or not, let’s delve into that.

Cash discounts- Let’s assume you want to buy property in Kolkata during this Diwali, as builder is currently offering 5-6 lac cash discount against your selected residential unit, which is worth of 60 lac. What happens is you understand these offers, while not having the knowledge of the monetary value of these offers. Usually, these offers remain valid for limited period of time and these offers directly reduce the cost of ownership of the end-users. But, in most of the cases promoters elevate the base price and then offer the discount which indicates rushing after the attractive discount is not really gainful. Thus, it’s advisable that you need to check the circle rate before jumping into conclusion. Cash discount is profitable only when the developer hasn’t increased the base price for last 6-12 months.

Flattering rewards- During the festive season developers offer a lot of freebies on property purchase. But are these really free? The overall cost of these complimentary offers is ultimately included in the property price. Mostly, these products are of inferior quality and developers don’t guarantee these free offered products. However, investing in real estate will return you the best market returns against your lay out.

Easy payment plans- Flexible payment plans are another festive discounts offered by the developers. The objective behind such payment schemes is to aim the liquidity of the buyers. But practically people who opt for these payment plans end up paying extra amount than those who make the full payment. One should always check this payment plans are either time- bound where the remaining amount to be paid within mentioned tenure or it’s possession-bound where the balance payment to be paid during the time of the possession. Some developers also offer interest subvention plan where they pay interest during the construction phase. This scheme also offers higher basic price. Through these schemes developers raise fund at a lower cost (4-7%) than that of borrowing from financial institutions.

GST waivers- GST is waived from those properties which have got occupancy certificates. Don’t get mislead by any offers whereas the original offer can cut your cost. There is straight discount of 12% on OC-ready projects. Only investing in under construction projects attract GST charges. Pre-OC price attract GST and Post-OC price will be the either the same or a little less.

-LNN (Liyans News Network) 

Real estate Hedge Funds And Their Functional Areas

Hedge fund is a pool of money that holds long and short positions for buying and selling equities, introduces arbitrage, trades bonds/currencies/convertible securities/commodities and offshoot products to generate returns at lower-risk. It’s a type of investment vehicle that accumulate capital from multiple sectors and invest the same amount into securities and other investment sectors. Hedge funds are structurally contrasting from mutual funds as these funds are tractable of most risk taking ability and their profit shares are not capped by the regulators. Hedge fund by and large invests in liquidity. Real estate has been added by the hedge fund managers to their list of non-traditional investments.  Real estate hedge funds generally own the asset of investment.

A few details about real estate hedge funding companies 
With more than $5 billion real estate assets and more than $27 billion in total assets Angelo, Gordon & Company is one of the largest real estate hedge funds. The company has records of investing in investment-grade underrated securities.

Blackacre Capital Management LLC is another leading company with different business strategy. The company doesn’t invest in debt securities, rather they purchase luxury hotels and same labelled projects with the objective of further development of these projects.

Cliffwood Partners LLC and The Praedium Group are two other hedge fund companies with separate business procedure. Till 2015, The Praedium Group is a new fund that has recorded profits from the divergences in indexes in the public and private equity real estate market. Cliffwood Partners, one of the earliest real estate hedge funds, has a long-short strategy in the real estate market.

How does a real estate hedge fund work?
Real estate hedge funds invest in the publicly-traded stocks of current real estate companies. Chiefly they invest in REITs (Real Estate Investment Trust). REITs exclusively invest in real estate and get tax exemption for this investment as well. The structure of REITs is quite similar to mutual funds in the sphere of realty. REITs are required to lay out 90% of the income, which is contingent on tax redemption for the REITs investors.

There is another of investment too which is totally different from investing in REITs. Hedge funds invest money through acquisition of the underrated assets at lower rates. These properties are purchased in anywhere on the earth, but for selling it has to maintain a fixed cause of disbursal, which is lack of liquidity on the seller part.

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Renovation? Why not start from your kitchen?

Re modelling or renovation of property reflects the aesthetic sense of the owner. Renovation is nothing but transforming the exhibit of your property. It also means the reinvention of the used space by functionality. As kitchen is the heart of the home, not for the sake of a quality look, kitchen renovation incorporates increasing the space of activity and the space of movement as well. Kitchen is the only space that needs to be redesigned not only for the sake of visuals, but with essential safety measurement. Here we try to spawn the kitchen renovation easier by stating easy methods that you should take up while renovating your kitchen. 

Ensure what exactly what’s the purpose of your renovation?

The objection of the renovation should be clear to you, whether the aesthetic parameter or the practical matters to you the most. Make sure the intent of your renovation gets clearly decoded by the designer. It is the most basic and important part of the idea of the renovation. Communicate with the designer to set the goal clear before he puts his hand in the renovation. 

Set up more space around the appliances 

The design of your kitchen largely depends on the choice of your appliances, which means all your cooktop, fridge, microwave, dishwasher and dimensions hold vital role in the final layout design. But, when the layout is under prep, zoom into the fact that all these appliances can occupy right amount of space and avoid leaving unnecessary gaps around the appliances. While designing the lay out these three aspects should be equally speculated-

1. The measure of your movable space should be apt.

2. Placement of the sink should be by a corner.

3. Make sure there’s space for other people to get accommodated. 

Durability vs. Decor

All the space of storage should be proportionate and made of quality products. Because kitchen is the only space that can go wrong roughly. The decor should not overpower the necessity as well as the budget. So the renovation should be organized and planned within your budget. The sample or materials which are used for the renovation should come from a good manufacturing company. The design element and choice of colour of the products must have to be well in sync to bring out the desired effect of your remodelling purpose.

Decide what to and what not to compromise 

If you think usage of costly materials will tone down the future maintenance charges will be lesser, then you are certainly mistaken. Choices of materials determine the amount of energy and money you want spend on those in the coming days. Check out the full list of the materials and its pros and cons before your designer get his hands into designing. We recommend you to work with a professional team for remodelling your kitchen. 

-LNN (Liyans News Network) - To buy property in Kolkata there’s only one real estate advisory company which you can rely blindfolded. Visit us for buying/selling/renting your real estate items across the country. 

Safety Measures For Monsoon

Monsoons satisfy the thirst of summer. It refreshes panorama. But rain imports some unwelcomed germs in the households, which must be avoided to lead a healthy lifestyle. When rainwater revitalizes the nature, a little precaution in our daily lives is required from falling ill. To enjoy a healthy, happy monsoon people have to be a little watchful.

Here are few straightforward tips that you should follow during this season -

• Avoid clogging your local drains. Get rid of roadside open/fried food.
• Water gets contaminated in this season, which leads to fragile digestive system. Keep a healthy diet plan and try to consume filtered or boiled water.
• Clean the vegetable and non-veg items well before putting them on flame.
• Drink plenty of water. Keep away from preservative outside drinks. Try herbal tea for rejuvenation.
• Avoid walking in rain. A little skin touch with stagnant water can cause several skin problems.
• If anyhow your feet get wet, try to rinse them with fresh water as early as possible; don’t stay in wet socks and shoes.
• If you get drenched, don’t let it get dried under fan and Ac. Keep an extra pair of clothes at your workplace.
• Keep medical kit updated with medicines that will help you out in case of any emergency.
• Monsoon is the celebration time of mosquitoes. Make sure there is no place for stagnant water. Don’t go sleep without mosquito net and mosquito repellent.
• Take bath twice a day. If needed, use antibacterial soaps for better hygiene.
• Take vitamin C for boosting your immunity system.
• Monsoon brings eye infection too. If there is any itching sensation into your eyes, try not rub it with dirty hands. Consult an eye specialist instead.
• In case you are about to buy property in Kolkata, this is the right time to visit property sites to determine the quality of the construction and area infrastructure.
• Make your home shock-proof with a good quality fibre wiring system. Don’t touch switches in wet cloths.
• Check out the weather and traffic update before you start from your home.


-LNN (Liyans News Network)- To avail Kolkata’s most advance infrastructure choose flats in Rajarhat. Explore available property details on our online realty portal. Buy/Sell/Rent property online. 

The State RERA Protocol of West Bengal is Uncertain

RERA deadline expired on Monday, July 1. West Bengal is one of those states that haven’t notified RERA even after a 3 months’ time stretch from the day of rollout. Moreover, the state has left no clue to the consumers about the act enforcement.

In a recent interview West Bengal Housing Minister, Sovan Chatterjee, has said that even if the state was in a motion to bring the Real Estate (Regulation and Development) Act (RERA) on board, “I am unable to tell, by when we will be able to enforce RERA.” This revelation had stirred up the end-users, as more or less they have perceived the fact that the way of implementation of RERA is truly unclear. The situation got even sceptical, when the officials of real estate industry body CREDAI Bengal stated that there was no meeting related to RERA enforcement with the state government has been held so far.

Right now the buyers must be thinking come what it may, despite the slow implementation RERA should come in frame with true law and spirit to ensure transparent realty investment. The highest parliamentary body – The Committee on Subordinate Legislation (COSL) of the Lok Sabha, had reportedly undertaken the time-consuming progress in the implementation of the Act along with the states’ attempts of skewing the provisions. State level dilution of RERA has turned into a bad headache for the central housing ministry.
“There is concern, about the treatment of ongoing projects under the new law. Not impossible but hard to implement,” CREDAI Bengal president, Nandu Belani said. Emami Infrastructure director and CFO Girja Choudhary, corroborating the problems faced by builders, said that there was need for relaxation, vis-à-vis ongoing projects. “We will highlight the same before the Bengal government,” added Belani.

“Along with the buyers realty lenders are also seeking accuracy and security from RERA. Realty Investment is known for long-term capital gain, but above all what should matter the most behind the implementation of the act is ‘buyers’ safety’. Ready projects with occupancy certificates might cost a bit high, but consumers’ are ready to bear it for the sake of better safety. Meanwhile, GST has brought all ready-to-move projects 12% tax slab. This is the ideal scope for the builders and a realtors to push the residential property sale in Kolkata as well as reduce the volume of unsold inventories,’’-said Mr. Mahesh Somani, West Bengal RERA and realty expert.

-LNN (Liyans News Network)

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.

-Liyans News Network- Buy/Sell/Rent real estate units online. Use ‘post your property requirement in Kolkata’ to send your requirement to us. We will be attended by our market experts with the best alternative at best price.

Against the increased registration fee home sales surge in Kerala

Government has already hiked the registration fee and cultivated new registration rule for properties which came into action since July 2016. Reportedly, these two major reforms couldn’t affect the realty sale in Kerala, the sales of apartments in particular. Against all odds, there was an ascending trend in sale in this state observed after revived realty law enforcement. Buying home with RERA assurance appeared to be secured choice of investment to the potential buyers.

After RERA and GST implementation market inclination has become heavier to the ready-to-move apartments, despite their relatively high prices. Buyers are increasingly showing their interest in on-hand projects that have valid occupancy certificates. The real estate industry is witnessing significant change in all real estate practices post RERA. The act strictly prohibits builders to advertise their under-construction projects. While OC ready projects are attracting healthy volume of buyers.

Affordable housing sector is another provision where limited investment can return, some serious steady proceeds.  Rather than spending a hefty volume in luxury apartments, people these days seems to be really interested in affordable flats in Kolkata and other major cities across the country. Kolkata has been mentioned separately, for the city still has some best alternatives in the category of budget flats within spending plan.

According to the updated data of the registration department of Kerala, the total number of apartments registered in 2015-16 was 7,438 in Kerala. This figure increased to 8,039 in 2016-17. The registration department pinned on the increased resilience in real estate has come along with the entry of new set of real estate builders over the past one year in the real estate economy.

However, this growth not up to the expectation of the industry players. According to the market professionals due to the money ban hit property sale had been significantly downwards since the last couple of quarters of the prior fiscal. Had the demonetization move not stir the market the registration volume would have been much higher in comparison to this numbers. The real estate market in Ernakulam has witnessed a marginal increase in terms of property absorption for 2016-17, while the increase in Thiruvananthapuram and Kozikode is remarkably high.

While the registration volume in Kerala has touched the apogee in 2013-14 and 2014-15, the stamp duty and the registration fee were 6% and 2 % correspondingly. The total value of apartments ­ as confirmed in the registration documents in 2016-17 ­ was Rs 2,622.08 crore. The revenue drawn by the government in terms of stamp duty in the course of registration of apartments in 2016-17 ­ was Rs 166.5 crore, while it was Rs 52.2 crore through registration fees.
The existing statistics of the department show is somewhat will confer buoyancy to builders who have been facing a further crisis with GST implementation. The drooping period is only provisional and the industry is anticipating that it will get back to its old rhythm within sometime.

-LNN (Liyans News Network)

Bombay High Court Ordered Builders To Be Registered By July 31

Bombay high court (the Nagpur bench) has directed a group of builders to comply with a July 31 registration deadline under Real Estate Regulation and Development Act (RERA), 2016. What happened was a group of builders have applied for the extension of the month end deadline set under the revised Real Estate Act.

After hearing a petition filed by four builders, who questioned the constitutional validity of certain strict and frivolous provisions of the new law which according to them shouldn’t be applicable for the projects that have started before RERA had come into frame and at under-constructional stage.
Against which the union government mentioned in an affidavit that RERA is not against constitution nor it is a retrospective application as ongoing projects are not complete. The centre in its affidavit also said that "The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act.'' The Real Estate Regulation and Development Act (RERA), 2016 was passed in March 2017. Builders have been found largely belittling its legal importance.
Limited percentage of builders has registered under RERA as of now, while the deadline is just at approaching stage. Government also highlighted that the provisions of RERA where it clearly cited that the responsibilities of the promoter and related penalties for the violation. All these were declared nationally from May 1 and accordingly developers should get registered by far. Already the government has allowed 3 months extension period for the registration purpose.

As per the last update a division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to revise their petition within a week and adjourned the matter to August 21 for additional hearing.
Senior counsel Mr. Sunil Manohar, who appeared for the developers, said that the developers would comply with the registration deadline for sure but the state should not take intimidating action against the developers. Additional Solicitor stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action".

According to the petition, the provisions where it is stated that opening an escrow account and maintaining 70% balance for the existing project development is against real estate sale and it’s unconstitutional as well from the perspective of real estate business development.

“People who want to buy property in Kolkata incoming days must have to check few things before coming to any agreement with the builders for instance they need to check whether the project and the developer is registered with RERA authorities and having a valid registration number. It’s also recommended for their better security to crosscheck developers’ and realtors’ track record on the state RERA website. Buyers are also advised to be sure about the project’s authentication such as whether the project has received required certificates from several authorities or not for their better security,”- said Mr. Mahesh Somani West Bengal RERA & Realty expert.

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RERA To Curb Activities of Real Estate Agents

State Government of Karnataka has submitted state RERA regulation. Over the preceding years property price has been blown up and set out of mass reach in cities like Begaluru, Pune, Delhi and Mumbai. This occasion had given birth of too many brokers with trivial knowledge of real estate, who used to operate quite smoothly and blossomed in their respective business as well. Now, their business might undergo some serious setback post RERA age. These small time brokers and developers are the sole causes of ill-portrayal of Indian real estate to the global real estate.

The state RERA rules highlights that, not only projects, it’s also mandatory for the realtors to get registered under RERA authority, in three months starting from July 10, 2017. Defaulters will be punished under state RERA regime. They will have to comply with the governmental ruling and intervene to up and continue their realty practice. Earlier, they used to be indispensible especially when the requirements are up for residential ones. They used to draw high commissions and overcharge the potential homebuyers.

Registration with the regulator is obligatory because only registered real estate agents can only survive their business practice. In this way they would be accountable for their business activities. RERA will publish registered and rejected application on its website, as part of the rule.

RERA will set the realty business free from fraudulence 

Some industry experts say that Karnataka RERA rules aim to protect buyers’ rights on large scale and retrieve more transparency into real estate industry. It’s calculated that about 70% of the brokerage firms will close down their business or will merge with relatively large real estate companies with experience of 2-3 years in realty practice.  Most of the agents are turning away registration, as they are finding RERA rules hard-wearing. It’s because of the market slowdown these agents ruled the business. The penal factor of RERA has made the situation even tough. RERA will clog all possible easy ways for the brokers and developers to reach up to the latent customers.

According to a statistics about 10 lacs real estate brokers in real estate are neither registered nor regulated. Many of them don’t have any real estate business background and under qualified for this business. These agents used to have their own sales agenda in fleecing their customers. Lack of proper regulation indulged them in doing their own. Now, under RERA only registered brokers are allowed to carry keep up their business.

Real estate will be no longer considered as a sector of unprofessionalism 

Taking advantage of real estate ignorance of the clients won’t be spared under RERA stricture. Homebuyers will be thoroughly protected in every available service from the brokerage sector. New rules will swipe away non-credible brokers from the realty business. Brokers will have to discontinue their business if found guilty under new regime.

_LNN (Liyans News Network)- Buy property in north Kolkata and avail 7.5% post GST discount. Visit our online property portal to have detailed information about such properties. Enrich your home-buying experience with us.

Still in Doubt Regarding RERA Stipulation? Banks Seek Further Collateral From The Builders

Leading market players such as ICICI, State Bank of India and Yes Bank are seeking additional pledge on housing loan disbursement to the realty developers. In some lending agreements banks asked the borrowers to avail the loan against their personal property mortgage. Banks are worried that the new real estate law might impact their existing set of home loan terms and conditions.

What’s collateral?
In lending agreements the term ‘collateral’ is referred as secure lending. It’s an asset-based lending. Under any circumstance if the borrower defaults the agreement, in terms of repayment of principal or interests, bank has the authority to seize the respective property. Collateral must be equal or greater than the loan or credit extension amount.

What RERA suggests-
As per the revised law of Real Estate (Regulation and Development) Act, 2016 (RERA), a developer should maintain 70% money received from the home buyers in a separate (escrow) account. This would allocate only 30% of the sales proceeds. Earlier on, builders used to jumble this entire collected amount for other project development. RERA will finally uproot every tangle from the inception.
Now banks are considering that following this strict regulation might lead to violation of RBI preset provision rules. In one of such cases, a reputed Mumbai-based builder, who borrowed certain amount through a consortium of banks and other non-banking financial companies (NBFCs), might put in the soup. The developer had pledged his upcoming G+5 residential project as collateral and the lenders had full control of sales receipts. After RERA, additional collateral option in a project has become extinct.

“Under RERA regime a developer needs to put up his personal belongings/immovable asset as collateral rather than any of his real estate ventures. Definitely, he will be asked to give his personal guarantee, - said West Bengal RERA and realty expert Mr. Mahesh Somani.

What banks have been directed to?
The authority mailed ICICI, SBI and Yes Bank. As per the latest update banks didn’t respond to the same. Speaking on the same banks said that it’s too early to opine on this matter. Quoting the comments of the CEO of HDFC, “30% of the sales proceeds over which lenders have right, is only towards the principal repayment by the developer while interest is to be serviced out of the balance 70%. Even though lenders had access to 100% of the sales proceeds prior to RERA, they hardly used the entire sum."

The leading property portal in Kolkata banks will soon modify their existing norms as per RERA stricture. Yet, banks don’t want to reveal their policy. Mortgage lenders are worried if their projects get stuck under RERA. Lenders including NBFC and PE firms are thinking of ways to defend this unexpected risk. There are many instances where banks have invested with a buyback security or an option of converting debt to equity and approving part of the project. In a bid to import transparency to the realty sector RERA is going to make loan conditions difficult, expected by the market trackers.

LNN (Liyans News Network)
  

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.
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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)

What Should Be The Appropriate Age For Real Estate Investment?

Property investment is counted as adulthood responsibility/ investment in our country India. Only financially sound and career-wise secured people can afford to step in realty investment. Purchasing properties in metro cities are better kept for big pies. As to buy property in Kolkata one needs to have bellyful wealth. Well, that’s not utterly true. Real estate investment shouldn’t fall under any of such decree. But of course there is a certain age, when people can partake in real estate investment but that has merely any link with the very person’s upper-limit bank balance, again financial stability should a practical term while buying any property on loan.

Again banks and financial organizations are keen on lending money for long run to count the EMIs, not they will show any interest lending money to people who are on the verge of their retirements, as the idea of lending money to the borrowers for a long term untenable. Let’s go over the issue and come up with a genuine conclusion.

A person hits his/her 30s or around 30s, they have more or less 30 years ahead of career headway. Unsurprisingly they have enough scope for property investment and enough time to develop property miscellany. Having tried in 40s people can also achieve ownership of self-earned realty units. Even self-employed people can also build property investment portfolio at the beginning years of professional eon. Laying it on, the sooner you start property investment, the more you spin money for long period of time. Profit from property multiples with time. Financial solidity can get you a home loan even for the extreme pentagenarians. Financial organizations have also realized with the emerging time that people found working even after the conventional retirement age of 65 now-a-days.

Reconstruction is the key to increase value of one’s existing asset. A person who has years of expertise in property business, knows every nitty-gritty of resale realty market; for definite reasons he/she would like to deal in properties with impressive condition. Else, dissatisfaction lives every corner among the property investors. Once people have an anchored real estate portfolio of assets or distinctive influence or healthy holds in banks; in that case these existing properties can be presented as guarantee for fresh home loan application even if they belong to the 50 age group. Thus, raising loan for buying residential property is absolutely within reach at present.

However, it’s evident that there is no particular age or ‘ideal age’ for property investment or to buy personal residential property. Besides, home-loan EMI rates have also been curved by the banks to boost up real estate sale volume. Low-budget residential units are the latest addition in this ebb. Homes under PMAY will also be free from stamp duties and other prime tax labels. One can easily afford these residential units with easy available home loans. End of the day, your self-owned home gives the biggest security above all our living investments.

- By LNN (Liyans News Network)

PMO Requests That All Govt Depts Spot Unused Terrains For Housing For All

The administration needs to construct a land bank to give a push to the a land bank to give a push to the reasonable lodging activity

NEW DELHI: After achieving the midway sign of its term, Narendra Modi government is attempting to offer fillip to BJP's survey guarantee of Housing for All. The P ri me Minister's Of f ice has requested that all administration offices recognize unutilised arrive, particularly in officially created government settlements, to arrange moderate lodging ventures.

The administration needs to fabricate a land bank to give a push to the a land bank to give a push to the reasonable lodging activity. The states are confronting an issue in arranging lodging ventures on account of scarcity of land. With this activity, PMO is planning to distinguish arrive parcels and after that urge state governments to send proposition wherever there is accessibility of land. A senior government official told ET, "PMO is checking the advance nearly. Our experience is that a few states are performing superior to others since they as of now have their recipient records prepared and arrive accessibility is no issue there. So now mandates have gone to all services to set up a rundown of provinces where new houses can be assembled."

The urban advancement service is attempting to recognize arrive inside effectively created government states as these as of now have fundamental civilities and endorsements would not be an issue. Up until this point, the Center has affirmed lodging ventures worth `90,000 crore crosswise over 30 states and union regions. The administration has affirmed development of 16.42 lakh reasonable houses with Tamil Nadu driving the activity at 2.27 lakh houses, trailed by Andhra Pradesh with 1.94 lakh houses and Madhya Pradesh with 1.81 lakh houses.

By 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.” 

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)

Do you know army canteens are the most money-spinning retail chain in India?

India’s retail chain industry has been governed by few biggies like Reliance, FBB, Aditya Birla, Shopper stop, Biyani Future Retail etc. These companies are not only famous in Indian market but also they are globally acclaimed brands we are talking about. But these companies have to agree on the same note that their entire selling profit falls dawdling before country’s defense canteen food chain stores. Army canteens are the best profitable food chain business in country presently.  For the fiscal year 2014-15, the Canteen Stores Dept. (CSD) being a non-profit-organization gained a profit of Rs 236 cr. Let’s see against this profit count how the leading retain companies performed in the same accounting year-

1. Avenue Super Mart (D’Mart stores) – 211 cr.
2. Future Group- 153 cr.
3. Reliance retail- 159 cr.

Thus it is clearly visible that CSD is way ahead in terms of business return and it’s a crucial channel too. India’s leading retail companies should step in this business for its further prosperity. On the sales front too CSD was unparallel with 13,709 cr. marginally ahead of FBB and Reliance. CSD outlets consist of 3901 units and 600 suppliers for delivering products like- food items, toiletries, cosmetics, household goods, footwear and accessories, liquor, electronic goods, liquor and vehicles. Being a non-profit-organization these canteen stores draw huge revenue every year as the Govt. relinquishes nominal amount of tax. Out of the entire sales, liquor contributes 26%, toiletries 23%, white goods and automobiles put in 20% revenue.
Now the two obvious questions are how far this canteen business will continue earning stable profit numbers for the coming days? Will they be able to maintain the profit volume? At the same point we can’t neglect growing popularity of e-commerce business and offered massive discount rates on several products. The report says that there used to be a huge army canteen demand in the markets of Punjab, Uttar Pradesh, Bihar and Jharkhand which has been progressively gobbled by e-commerce and retailers in the recent past.

Source LNN- (Liyans News Network)

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