Impact of RERA on Delhi – NCR properties


RERA or the Real Estate (Regulation and Development) Act has been implemented across the nation on May 1st, 2017. The National Capital Territory of Delhi and its neighbouring areas, prominently Faridabad and Gurugram of Haryana and Noida and Ghaziabad of Uttar Pradesh which together form the National Capital Region are bound to be impacted by the rollout of this act.

Impact of RERA on Delhi  NCR properties

Impact of RERA on Delhi NCR properties


RERA’s influence combined with the GST’s impact is expected to have a positive sway on the Central National Capital Region’s real estate market. Let’s have a look at the Delhi RERA rules along with the RERA rules of the states of the chief areas of NCR (i.e. Haryana and Uttar Pradesh) below:-
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How will GST rollout affect Real Estate

Goods and Services Tax (GST), a tax regime intended to subsume multiple taxes and diminish the cascading tax effect has been implemented on July1st 2017 across India. Amidst the four-tier GST tax structure, the central government had initially placed the under-construction segment of the realty industry on the 12% mark, which was a tax increase of 7.5% from earlier.

How will GST rollout affect Real Estate

How will GST rollout affect Real Estate

However before GST’s rollout, the government increased its tax rate on under-construction property to 18%. Although, clubbed with this 18% tax rate on construction of a complex/structure intended for whole-some/partial sale to a buyer, the government allowed the deduction of land value equivalent to 1/3rd of total amount charged by the developer from the consumer’s tax liability, thus, effectively reducing the tax to the earlier rate of 12% and making the GST impact on the homebuyer the same as before. Let’s explore in more detail exactly how GST is deemed to change the realty industry: [Read more…]

How will REITs affect Indian Realty

REITs (Real Estate Investment Trusts) are a great equalizer for the Indian real estate industry as they will open the doors for investors from across the spectrum to make safe and secure investments in the country’s realty market. After Securities and Exchange Board of India (SEBI) relaxed their REIT regulations, realty stocks surged by 4%. For the uninitiated,an REIT is a firm which possesses and/or finances revenue-generating real estate properties. REITs allow all kinds of smaller and larger investments in large-scale properties bringing in the concepts of diversified and long-term investing in the realty sector.

How will REITs affect Indian Realty

How will REITs affect Indian Realty

The REITs providing a platform to pool money for investment in properties, especially commercial ones, are first required to be registered via an initial public offering. Just like stocks, investors can buy REITs as securities from both the primary and secondary markets. REITs are registered with stock exchanges and are structured like trusts with their objective being able to provide investors with dividends acquired from the sale money of assets such as offices, residential units, hotels, shopping centres and warehouses etc. Other than the above advantages, REITs are expected to usher in the following changes in the Indian realty market: [Read more…]

How to Plan Your Home Loan Down Payment

Home Loans are typically given on 80-85% of the entire property value. The rest of the amount (15-20%) which is to be paid to buy the property is called the Margin Money or the Down Payment. The banks require the property buyer to pay this Down Payment amount from his/her own pocket. To pay such a corpus which can range in tens of lakhs of rupees, it is crucial for you to gather your down payment amount in such a manner that it doesn’t burden you financially when the time comes to disburse the same. For this to happen, it would be beneficial for you to be aware of thebelow planning methods which can help you pay your Down Payment:

How to Plan Your Home Loan Down Payment

How to Plan Your Home Loan Down Payment

  • Save then Spend: If you plan to buy a home, then save for your home systematically. A well-planned saving which is spread-out in phases can help you in paying the down payment amount without causing much concern. Savings of this corpus can be done through initiatives like Recurring Deposits and Mutual Fund Systematic Investment Plans. It is vital for you to pay your EMIs on-time to keep your credit score up and that can only happen if you save for the down payment and pay it in the initial stage so that later you can timely pay the home-loan EMIs. Moreover, be careful if you plan to borrow from other sources to pay the down payment amount as such borrowing can lead to you paying two sets of EMIs-one for down payment loan amount and other for home loan payment amount. Additionally, if you are taking a loan for paying the down payment, then the bank may become uninterested to lend you a loan as the bank may stringently re-evaluate your capability to repay. Hence, ideally pay for your down payment through your savings rather than borrowing from a bank. Furthermore, if borrowing is the only option, you can consider borrowing from a friend or your employer or a relative too.

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5 Signs You are a Cleanliness Junkie

The saying that ‘Cleanliness is next to Godliness’ signifies that cleanliness is almost divine. There are many people who clean their messy homes however there are some who go the extra mile to shine their households. There surely are signs from which you can tell that who is passionate about cleanliness and who isn’t. If you answer yes to the five points below, you are definitely a cleanliness junkie:

5 Signs You are a Cleanliness Junkie

5 Signs You are a Cleanliness Junkie

  • Cleaning is your Work-out: You stay fit not by going to the gym or aerobics class but in the process of making your home spotless. Whether it’s night or day, you schedule your cleanliness jobs perfectly and can’t go to sleep if they are not finished.

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Tips for Beginning Gardeners

Gardening is rewarding in many ways – It provides you your daily dose of fresh air, a large and scenic exercise-yard, calming sights and invigorating fragrances of rejuvenating greenery, bountiful place to relax and much more. Consequently, to produce such a heavenly place in and around your home, you have to put in a large amount of effort. This is why creating and especially maintaining a garden is a tough job. But this shouldn’t scare you from starting out in gardening as the below tips are there to offer every beginning gardener a helping hand:

Tips for Beginning Gardeners

Tips for Beginning Gardeners

  • Know the Land– Get to know the land where you plan to start gardening and then find out which areas in your garden get round-the-clock sunlight. Subsequently, conduct a soil test to measure the pH & nutrient level of the soil. Moreover, if you want to grow edible plantations in the garden, consult an expert as it requires additional testing. Also, choose the right garden structure for a healthy and hearty garden.

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Will a Ring Road be able to help Pune Realty Market

Pune, the second most populous city in Maharashtra is also among the fastest growing cities in the Asia – Pacific region. Known for its manufacturing, information technology and automobile industries and its educational and vocational institutes, Pune is top-ranked amongst the Indian cities with high quality of life. A paramount business centre and a residential investment hub, growing at break-neck speed, Pune surely needs areorganization of its infrastructure so that its growth is uniform rather than random.

Will a Ring Road be able to help Pune Realty Market

Will a Ring Road be able to help Pune Realty Market

A typical solution to equally distribute movement and development in a big city like Pune is to cultivate a Ring Road in the outskirts of the city. A 120+ kilometre long Ring Road was proposed in 2007 in Pune which was aimed to be a rapid-transport corridor around Pune and Pimpri Chinchwad with residential and commercial stretches along the way. A collective brainchild of Pune Municipal Corporation and Pimpri Chinchwad Municipal Corporation, Pune’s Ring Road’s intended purpose was to keep the heavy traffic, from the three National Highways (NH-4, 9, 50) converging in Pune, outside city limits. [Read more…]

How to Save More with a Joint Home Loan in 2017

Home loans help you own the home of your dreams. Additionally, the government lets the borrower claim tax subsidy on both the principal and interest amounts paid. Moreover, you can save extra if you opt for a joint home loan (with two or more borrowers). In the budget for the financial year 2017 – 2018, maximum interest exemption for tax benefit on home loans has been capped at Rupees 2 lakhs including that on the rented property. This basically means that each co-borrower in a joint home loan is eligible for a tax deduction of Rupees 2 lakh for the home loan interest paid by each of them. There are tax subsidies on principal repayments of the home loans too.

How to Save More with a Joint Home Loan in 2017

How to Save More with a Joint Home Loan in 2017

Additionally, with schemes like the Prime Minister Awas Yojna (PMAY), the central government is offering 3-4% interest subsidies on home loans from Rupees 9 lakh to Rupees 12 lakh to first-time borrowers. Moreover, since MCLR-linked loans have been launched, most of the banks are arranging to pass on any subsidies by the RBI to the customers. SBI, Axis, ICICI and HDFC banks along with Indiabulls Housing Finance have lowered their home loan interest rates. Thus, it can be said that 2017 is a high-time to take a home loan especially since many government benefits on loans may end by the end of the calendar year. Read on to know how to save more with a joint home loan: [Read more…]

How to Utilize your Kitchen Cabinets

There will never be enough space for the new stuff you keep on buying. You will just have to learn to efficiently utilize the space you have. This holds true for the entire home, especially for your kitchen. The harbingers of storage space in the kitchen are its cabinets. If you smartly exploit their space, you won’t have to throw out things unnecessarily or store them in odd places in the kitchen. Read on to know how to intelligently use your kitchen cabinets:

How to Utilize your Kitchen Cabinets

How to Utilize your Kitchen Cabinets

  • Hang Overhead: A solemn issue with the in-fashion modular kitchens is their lack of surrounding walls as a modular kitchen design is built around the concept of openness. Such a design strikes out the walls of the kitchen to gain space. This in turn results in little space for placing the kitchen’s upper cabinets on. However, an easy fix to this issue is hanging open shelves from the ceiling above the kitchen counter. This lets you store minimally used things in the overhead cabinets and if you build them without doors, it keeps the stored stuff easy to see and easy to access.

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Impact of GST on Real Estate Sector

Goods and Services Tax (GST) implementation hailed as being the biggest tax reform in the country’s history after independence is expected to bring about a remarkable change in India’s economy. Set to be implemented on July 1st 2017, under the GST regime if a buyer has to purchase an under-construction home, he/she will have to shell out 12% in taxes. This is positive news for the realty sector since taxation in this industry has been multiple and uneven until now.

Impact of GST on Real Estate Sector

Impact of GST on Real Estate Sector

The Real Estate sector currently contributes an average of 5-6% in the country’s GDP and with schemes such as ‘Housing For All’ promotes over 250 ancillary industries. Moreover, the sector has constantly seen rise in private equity investments, launches and sales in the last few years. As of now, the sale of lands and buildings are out of GST influence but they are estimated to be taxed within the next year. To discuss in detail, GST is expected to bring along the following changes in the Indian real estate sector: [Read more…]