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)

MakeMy Trip To Purchase Ibibo To Have Autonomy In The Tourism Industry

Being one of the pioneer companies in the travel portal industry MakeMy Trip is about to buy their biggest opponent ibibo Group to have the absolute surveillance in hotel, flight and bus booking periphery. The all-stock deal values the combined company at $1.5 billion, stated by an old-hat source with the deal. With this deal MMT will bring ibibo and redbus.com under their assortment, which owns the mother-brand and the interchange lodging site Rightstay.

Naspers Ltd (NPNJn.J) is a South-African firm which holds the maximum share of ibibo with a 91 percent stake and the rest of the share is in the name of Chinese company Tincent Holdings Ltd. (0700.HK). The accumulated valuation of the stake is $600 million according to some trusted source. MMT had a market capitalization of about $861.3 million as of Monday’s close. Cox & Kings Ltd ( COKI.NS), Thomas Cook (India) Ltd (THOM.NS) and newbie OYO rooms have been challenging competitive other companies of MMT in this online travelling industry.

For the last seven quarters MMT has been partially missing the profit estimates for the upper marketing costs, according to the Thomas Reuters I/B/E/S reports MMT will be probably holding a second quarter loss of 63 percent and total returns of $50 billion. As per the company sources this deal will whirl great possibilities in the entire online travel and tourism industry but there was no statement about the deal value. As reported by a gross booking tracking analyst the online travel market in India has an average gross booking of $10 billion in terms of over the year calculation.

Hitting conjointly 2year-high market valuation, MMT market share got an acceleration of 56.4 percent to $31.90 on this 18th of November. In conversation with a stock analyst MMT affirmed that the combined company will have the authority to regulate a market share of around 20 percent of the entire Indian online air booking industry, adding on there will be a single digit market share of this alliance in online hotel and bus booking.

Nasper and Tencent is going to own 40 percent of MMT shares after the deal closes by the end of this December. Also one of the eminent travel services providing company Ctrip.com International Ltd (CTRP.O) will be the owner of 10 percent stake in this coalition company. Ctrip.com is about to invest $180 million in MMT through the medium of convertible bonds. The founder of MMT Deep Kalra will be continuing the company as an executive chair person and chief executive chairperson of this new combined company. On this deal Morgan Stanley was the advisor to MMT and Goldman Sachs advised ibibo and Nasper on this deal. Online travel industry is looking forward to this deal eagerly.

By- LNN (Liyans News Network)
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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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Property portals- The real estate agents of India

After the growth in the big cities, now it’s the turn of small cities and suburbs of West Bengal and eastern India to experience the boom in the Indian real estate market. The demand for real estate items in India have been increasing rapidly with the population growth of India. As per the current property market demand residential properties left requirement of commercial properties way behind. As a result most of the commercial properties in Kolkata are coming under high rental options as there is not much saying in fresh arriving commercial property sector. Having said that residential flats in Kolkata have to maintain their offering cost too, this is due to a consistently numb selling statistics and Govt.’s announcement for providing affordable flats in Kolkata to every medium and lower-medium income group family within 2022. For, the property price is fluctuating on a daily basis.

With the announcement of HUPA moderately salaried and even lower income group have started moving to Kolkata in a large number with the expectation of having an affordable nest in the prime locations of Kolkata. Though Kolkata is popularly known for its low cost of living, but offering luxurious, fop flats in shoestring budget and that too in the prior location is a grotesque task in itself. Those who confuse that eye-popping skyscraper are of reasonable budget it’s not even close to that. Speaking about the leading property portals in India, people think that property portals are for searching properties in the metros and other major cities in India. Actually every leading property portal covers suburban properties of West Bengal and other part of eastern India. With the arrival and authenticated professional support of property portals Indian real estate market is getting charged up with each passing day. Real estate property portals are not only for searching properties, they are much more than that.

A compete property portal in Kolkata comes with buying/selling/renting/listing property provision. Adding on they also have a good rapport with the nationalized banks and other trusted financial sector for home loan assistance for their customers. Now the time to zoom on the leading property portals in India-

Magic Bricks- with the Alexa India traffic rank of 142, Moz DA of 68 and over 5 million pageviews every month Magic Bricks is the apple of the eyes of every builder and other real estate investors.
Pros-They provide mainstream commercial and every online promotional activity that is particularly needed for any real estate business. Ahead thinking approach is the USP of this site.
Cons- Yet some of the referral traffics are of low quality/irrelevant for real estate business.

Commonfloor- Real estate builders are often between Magic Bricks and Commonfloor to put their money on.
Pros- They provide a steady traffic
Cons- poor in referral traffic, Low Moz domain authority.

99acres - 99acres can give Magic Bricks a tough competition in coming days.
Pros- 99acres has strong offline brand equity and they have great communication with all well-known builders across the country.
Cons- But 99acres seems to have slightly slowed down in overall market.

Indiaproperty- This company has extreme increment in monthly traffic. During last six months they had more traffic than Magic Bricks. Surprised!
Pros- In January 2015 monthly traffic of this site has become exactly double than it had in the previous year. Everybody is having their eyes on this site.
Cons- Still their referral traffic is poor quality.

Housing- Housing is the trailblazer in real estate property portal business. Housing is known for its higher level of technology and simplicity throughout their offerings.
Pros- They have detailed algorithm and data mining for every needed numbers, information, listing expiry logic and much more.
Cons- Some unhappy feedbacks in several social platforms clotting the investment.

Liyans- Liyans is relatively a new in this business. Started in 2012 Liyans is one of the leading Kolkata based property portals.
Pros- Strong traffic, high quality referral links and cordial understanding with all renowned builders all over India make this site indispensible for property business.
Cons- Despite years of vast practice as of now there is no publicity of this site on TV / Radio.