IGBC Green Homes Infographic.
Impact of Demonetisation on Real Estate Sector
The entire nation is under shock; things are going crazy since the night of 8th November 2016. Prime Minister Modi has played his master card against the fight with black-marketing and corruption by demonetization 500 and 1000 currency note. And its effect can be felt in each and every Indian household and business form, be it the jewellery or film industry.
As for the real estate sector, it has welcomed the change with an open arms, and it is believed to bring greater accountability and transparency. Also, the change will put downward pressure on the housing prices that will further help to revive the otherwise sluggish housing segment. Besides the change will lead the sector towards a cashless economy that is a well-known indicator of a mature economy.
But demonetization has not been greeted equally well by all divisions of the real estate sector. Secondary property market and unorganised builders are the ones who will witness the adverse impact. As unlike the big builders and developers and organised players, they deal in cash and are not using banking channels for operation.
CREDAI Chairman, Irfan Razack said that “It’s a fantastic and bold move by the government. A lot of money will get into the banking system. Listed entities and organised players will not be affected by this decision.” Adding to which he also said that sale and demand of housing would not be affected.
All in all, this significant move will curb unaccounted cash from the sector and is a tremendous step towards transparency.
Ministry Notifies Rules 2016 Real Estate Act
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.
Tips to Transform Ordinary Homes into Eco-friendly Living Space
It’s not an everyday affair that we take up restoration work at our houses. So, whenever such activity is planned, one must try and make changes keeping in mind the eco-friendly aspect of the same. Below are mentioned few tips (both modern and traditional) that’ll increase the green quotient of your house.
1. Water Harvesting
Such a change will go a long way especially in drought prone states like Rajasthan, Gujarat, Andhra Pradesh and Orissa. Whether you live in an independent home or a flat, water harvesting installations can preserve rain water. Also, are available bathroom fittings like motion sensor faucets, low-flow toilet and shower heads that can replace the regular ones to save water.
2. Proper Ventilation and Insulation
The flow of air and penetration of sunlight brings in positivity in a house. Big glass windows are a good solution and also increase rental and resale value of the property. But glass windows hinder the efficiency of cooling and heating system. As a solution, eco-friendly products like recycled cloth-based, plant-based, and cotton garments can be used for insulation.
3. Energy Saving Appliances
Energy saving appliances can cost a little extra than the standard ones, but with their electricity saving ability you will end up saving much more that the additional purchase cost incurred.
4. Air-Conditioner Care
See that the A/C gets regular service, as it will reduce significant load from the machine. Also, when opting for the new ones see that they have high energy saving rating.
5. Plants
Keep both indoor and outdoor plants in your home. While the inner ones will purifier the air, the outer ones will help keep the house cooler.
6. Alternate Source of Power
These days a wide variety of solar cells are available in the market. People living in independent houses can opt for the slightly bigger ones that can be installed on the roof. While for apartment residents options of solar panels that can be mounted on balconies, windows, etc. are available.
Tenants – Know Your Rights & Learn When to Say NO
Tenancy culture is popular in India, with every other house offering additional residential options for families/students that are looking for one. But with the growth of this wing of housing sector it has been widely noticed that tenants are unaware of their rights and in most cases are dominated by the landlords.
The lease agreement is a piece of paper that defines the boundary of tenant-landlord relationship. Therefore, in the event of any misconduct witnessed on either end, it is this lease document that’ll help bring both parties to justice.
Through this article, we bring into light rights of a tenant and under what circumstances he can say a clear cut ‘NO’ to a claim or conduct of the landlord –
1. No intrusion
After signing the lease agreement, the landlord loses his right to break into the rented property anytime and disturb the peace of the tenant.
In short, every tenant has the right to enjoy peaceful possession without disturbance from anyone including the landlord.
2. Forced Extension
Owner holds no right to force the tenant to continue with the tenancy deal. After giving a valid reason, every tenant has the right to vacate the property.
3. What if the Tenant Dies?
If the tenant dies, it is his lawful heir who after him will continue with the tenancy deal. The landlord does not hold the right to ask the heir of the tenant to vacate without giving a valid reason.
4. Oral Agreement
According to the government of India tenancy laws regime, all agreement exceeding the time frame of twelve months are required to go in writing. So, if the landlord insists on an oral agreement, tell him that you’d rather prefer everything in writing.
5. Passing on the Liabilities
As per law, any expense born on the structural changes or damages are to be fulfilled by the landlord.
6. Deposit Settlement/ Return
Tenant has the right to ask the landlord to settle the rent against the deposit amount during the notice period.
If that is not the case, when the tenant is vacating the property, landlord is under obligation to refund the security amount deposited.
7. Revision in Rent
The landlord can only increase the rent in accordance to the terms agreed upon in the loan agreement. Also, the increase in rent amount should obey the state law proposed formula to calculate hike percentage.
8. Evict the Premises
At no given point of time can the landlord ask the tenant to evict the property. Not only he is required to give the tenant a valid reason but also a reasonable time frame ( 1 month, as per law) to search for an alternative.