Property Investment Archives - Page 29 of 36

Ministry Notifies Rules 2016 Real Estate Act

November 8, 2016

A lot has been said and written about the Real Estate (Regulation and Development) Act 2016. At its core is to bring accountability and transparency in the real estate sector, which it intends to do with the formation of new regulation both at the buyers and builders end.

As for 1 Nov 2016, rules are only notified by Ministry of Housing and Urban Poverty Alleviation that will be applicable on five union territories – Daman & Diu, Andaman and Nicobar, Chandigarh, Dadra & Nagar Haveli and Lakshadweep. Other states like Karnataka, Rajasthan, and Maharashtra are still under process to either notifying or rule formation.

According to the act, regulatory authorities have to be put in place by respective state governments by 30th April 2017, i.e. a day before the act is scheduled to come into effect. Below are mentioned, HUPA rules that will now serve as guidelines for state governments.

So, if you are a homebuyer, here’s what the act has in stock for you –

1. Buyers can demand compensation or refund at an interest rate of SBI’s MCLR (marginal cost of lending rate) plus 2%.

2. Within 45 days of the claim raised by the buyer, builder would have to repay the amount

3. Builders can withdraw the amount from the special account in proportion to the completion of the project.

4. Under RERA, builder would have to maintain full transparency regarding the company and its projects

5. Disposal of complaint within 60 days of filling

6. No discrimination about sale of property

If you are a builder, here are some points for you to note –

1. Fee for project registration reduced to half

2. Compulsory to register the property with authorities

3. Builder will now have to specify completion date at the time of registration

4. Declare information about open and closed parking areas

5. Insurance of the project now mandatory

6. Declare the size of the project in terms of carpet area

7. Regular updating of the site regarding project status

8. As relief, builders are now not required to disclose their income-tax returns

9. Within three months of applying for project registration, a separate bank account has to be opened for depositing 70% of the amount collected and unused ensuring completion of the project.

Here’s Why Your Home Loan Application May Get Rejected

October 18, 2016

Home loans are the perfect aid to buy a house or any property for that matter. But as more and more people are getting interested in owning a land under their name, banks are getting stricter with the loan approval process. Some crucial factors may lead to rejection of your application altogether and if not a complete no-no it may get approved for a lesser amount.

So, before applying for a loan go through these factors and get your home loan approved smoothly.

1. Physical condition and age of the property

If the property you are eyeing to get a loan is not in good shape, there are chances of your loan application getting rejected. Also, if the bank valuer finds the property’s physical structure weak, then no grants will be issued on the same by the bank. Note that here age of the building is not a factor it all depends on its physical condition.

2. Age of the applicant

Banks are always more interested in approving those applications that come with a continuous surety of income flow. So, if you are nearing your retirement age getting an approval would be difficult, or you even have to settle for a little less amount then you applied.

3. Credit History

Before approving a loan to any applicant banks always does thorough credit history check. So, if you are not regular in depositing EMI’s or payment of your credit card dues your credit history is surely getting spoiled.

4. Nature of source of income

Banks are always interested in applications that are backed up with a strong and promising job that ensures a continuous flow of salary. So, if your salary is volatile and is sourced from jobs like cooking, tuition, etc lender may not show that much confidence in your application. On the other hand, presence of concrete investments like fixed deposits, share or mutual funds will prove favourable.

5. Income Tax Return

There is a difference between fake and genuine income tax return and believe us the fake ones get detected by bank personnel easily. So, if you have filed income tax returns within a short period or more than once in a year it may give an impression of you trying to make up things to avail a loan. On the other hand, tax deductions and advance tax payments are better representers of your genuine.

6. Previous Loans

If you already have a loan under your name for which you are still paying EMIs, then there is a strong chance of your application getting rejected or reduction in the eligible loan amount.

Favorite Global Destination of Commercial Real Estate Investors

October 10, 2016October 12, 2016

Indian real estate market is currently going through a rough patch and experts claim the ongoing down phase to continue for a while. But things are not the same in other parts of the world, especially on the commercial real estate front. According to a report from ‘Global Cities’, commercial real estate investment has seen a five-fold rise in twelve months (estimated at $320 billion) starting from June 2015-2016 compared over the same time frame in 2009.

Following market favorable factors are behind such massive cross-border investments, which are expected to continue further and pour more money in the sector.

Volatile Currencies
Negative Interest Rate
Portfolio Diversification

These are top seven destinations where most investments were made in commercial real estate over the last 12 months –

1. New York

Not a shock at all, New York is better known as the world’s financial capital. Given the fact that it was taken over by London in 2015 as world’s best financial center, New York received the largest chunk of real estate investment in 12 months (June 15 -16).

Monetary investment – $26.5 billion

2. London

Called upon as the world’s favorite financial destination in 2015, London in the span of 12 months received second highest cross-border commercial real estate investment.

Monetary investment – $25 billion

3. Paris

The lovers paradise is not only famous for the iconic Eiffel tower but over the past twelve months the city has received great amount of investment in commercial real estate front.

Monetary investment – $7.4 billion

4. Sydney

The country down under has performed very well in commercial real estate, with its capital standing at number four slot globally.

Monetary investment – $ 7 billion

5. Shanghai

Being China’s biggest city and a global financial hub, Shanghai presence at number five spot is no surprise.

Monetary investment – $ 6.9 billion

6. Los Angeles

After New York, if there is any other American state that’s doing great in the commercial real estate sector than its Los Angeles. Seems like it is attracting people for reasons other than Hollywood.

Monetary investment – $6.2 billion

7. Madrid

Spain too has a share in the list with its capital Madrid scoring seventh position. Seems like its modern infrastructure and historic neighborhoods have attracted many investors.

Monetary investments – $ 5.6 billion

Features that Set Apart Trimurty from Other Market Players

September 28, 2016

Trimurty has been in the real estate arena for far too long, with its strong foundation led by Udai Kant Mishra, a trusted and renowned name in the real estate industry. What this man started single-handedly twenty-one years ago is now carried forward by his equally talented and acclaimed sons – Anand Mishra, Abhishek Mishra and Sharad Mishra. With the legacy flowing down the lane, things are only taking a promising turn. The three men are like three active shields that integrate Trimuty’s quality, reliability and care for environment fundamentals intact.

But the big question is what are the strong pillars behind Trimurty’s unbeatable market presence and unstoppable success?

1. Greener the Better

Trimurty Group is a strong believer of SUSTAINABLE development. All its projects are planned taking care of mother earth and the creatures that are dependent on it. Use of recycled material and low carbon footprints are ways through which it maintains a balance between development and nature.

2. Care for the Elderly

Good values flow within Trimurty and it is very well visible through the innovative designs that are integrated keeping in mind the elderly. Take, for example, their latest project Ariana that is equipped with amenities like anti-skid tiles and wheelchair user accessible doors.

3. Labor Safety is Never Overlooked

The safety of the real hard working group, whose sweat and energy go in making your dream home, is amongst Trimurty’s fundamentals. Each site has a fixed kitchen, toilet and medical room, making working environment easy and viable. Also, use of best-in-class safety equipment and safety signage are an integral part of the construction process.

4. Quality Assurance

As mentioned above, quality is one of the foundation blocks of Trimurty and therefore each element from cement to external fittings is used only after appropriate quality assurance.

5. Earthquake Resistant

Fighting natural disaster is never easy but when you are prepared things tend to move on your side. All Trimurty projects have hoop reinforcement (for seismic protection) and crack and dampness prevention, enabling the building with earthquake fighting tools.

How to decide when to rent and when to buy a house

August 30, 2016

Rather than arguing over whether to buy or rent a house, the question should be when to buy and when to live in a rented accommodation

‘Fools build houses, and wise men live in them’. This British proverb is often used in arguments against buying a house. Investing in a house is a very important decision, as the amount needed takes up almost all of one’s savings. In my opinion, the question should be: ‘When should you buy a house and when should you stay in a rented accommodation?’ rather than arguing about the rationality of owning a house.

Why and when should you stay in a rented house?

Banks, normally, do not give more than 80% of a property’s cost as home loan, while the buyer needs to shell out the balance 20% of the margin money, from one’s own funds. Looking at the prevailing cost of residential houses in cities, you have no option but to stay in a rented house, till you are able to save enough to fund the margin money.

If you are an employee who has been posted in a place for a short duration, or you are working in a place where you do not intend to settle, renting a house makes better sense, until you decide on the city where you intend to settle. Real estate transactions have some costs that cannot be recovered, like stamp duty, registration charges and brokerage for sale and purchase of the house.

The size of your family will also affect your decision. You may need a bigger house, in case you are planning to expand your family. In case you have enough margin money and have already decided to buy a house, but you are unsure about the locality, then, you could take a house on lease in that locality to experience the stay, before making a commitment.

Why and when should you buy a house?

It is definitely a good idea, to own a house. So, in case you are able to arrange the margin money and are confident that you will be able to service your home loan, you should buy the house. However, even if you have sufficient funds, you should take into account, whether you intend to stay in the same locality or the city.

To base your decision to buy a house merely on the cost-benefit analysis of rental versus cost of funding the house, does not make sense because the rentals generally vary from 2% to 4% of the capital value of the house, whereas, the cost of borrowing is generally around 10% for home loans, thus, leaving a gap of 8%. Nevertheless, this comparison does not reveal other tangible and intangible benefits of owning a house.

You should never defer the purchase of your first house, in the expectation of a correction in prices. This is evident from the fact that everyone has been expecting a major price correction for the last five years. People who postponed their decision to buy a house, have probably missed the bus for good. Over the long-term period, property prices on an average increase by around 9%. You should take this appreciation into account, while doing the overall cost-benefit analysis. Owning a house also provides a certain mental and psychological satisfaction and creates a sense of security.