The day after the SBI and Bank of Baroda announced the festival’s seasonal bonanza, the Punjab National Bank on Friday lowered home loan interest rates for above Rs 50 lakhs by 0.50% to 6.60%.
PNB announced in a statement that interest rates on home loans are now offered at 6.60 percent, regardless of the maximum limit. In a series of proposals issued by the Punjab National Bank during the festival season, PNB has lowered the interest rate above Rs 50 lakhs by 50 basis points (0.50%). The rate will be linked to the creditworthiness of the applicant.
The bank said in a statement, “This rate also applies to balance transfer cases and is the lowest among public sector banks.”
Waiver on Processing fees-
In addition, it will offer additional home loans at a reasonable interest rate for both balance transfer cases and existing ones.
PNB said it is already offering a complete waiver of service / maintenance fees for home, car, private, myProperty and gold loans as part of its Festival Bonanza offering. One of the lender said, home loans will be more affordable for customers due to full exemption from service fees and a low interest rate starting at 6.60 percent.
While the auto/car loans start at 7.15 percent, personal loans start at 8.95 percent, one of the lowest in the industry. Earlier in the day, PNB also reduced its externally attached RLLR by 0.25 percent to 6.55 percent. “The repo-linked lending rate (RLLR) has changed from 6.80 percent to 6.55 percent from September 17, 2021 (Friday).”
RLLR was introduced in October 2019. It is a personal or retail loan based on a variable interest rate that is linked to external benchmarks such as Reserve Bank of India (RBI) repo rate.
Real estate will continue to be the preferred investment class worldwide. Smart real estate investing can change our lives by giving us enough money to make our dreams come true. Today, most of us have an investment portfolio that consists of a variety of investments, be it stocks, bonds, gold, etc. However, most of the people have still undervalued or ignored real estate investment. With the huge economic boom in most cities in India, the average income has increased, giving us additional capital to invest in the future, and real estate may be the ideal investment opportunity for you.
The price of real estate depends on various factors such as location, demand and supply, interest rates, future development plans, etc. Some investors buy properties for the purpose of selling them later, when supply is low to take advantage of price increase.
What is the appreciation rate?
In real estate, appreciation refers to the value of your property, or how much the value increases over time. You get several benefits when real estate grows and increases in value. First, you can get more by selling your property. As long as the demand is high in your market, you can get a higher selling price and therefore earn more profit.
5 Reasons for property price appreciation!
Demand & Supply:-
When the demand for housing in a given area increases. Property prices rise unless the number of housing projects built to meet the demand does not recover quickly enough. Home buyers who buy houses for their own use are willing to pay extra if the locality is attractive and desirable for living. The ideal moment for home buyers to buy a property in areas with great upward potential, is a period when investor activity has not yet begun.
Features of property:–
The property’s facilities and improvements also affect its value. For example, remodeling a home, installation of wooden cabinet can increase its value. Decorating a basement, adding another bathroom, or replacing carpet with tiles are other examples of improvements that add value. In addition, the availability of parking spaces has a major impact on the value of the property. Parking spaces can create a price difference of 10% to 15%, especially in metropolitan areas where parking in residential areas can be a problem.
Owners who continue to improve their property may receive a higher rate than current market prices. This can be a basement garage, a kitchen lawn, or a small garden terrace. In addition to this, the property’s architectural design, maintenance and interior also play a crucial role in property price appreciation.
The location of the property is a major influencing factor. As the area around your property grows, new businesses emerge and new jobs open up, local housing prices tend to rise. If society struggles, or companies shut down then lower values are usually achieved.
For property price appreciation, it is important that the social infrastructure and the local area support growth. Property in a gated community with an active Residents Welfare Association (RWA) will be preferred over independent property located in a common area. Likewise, green cover, security surveillance, and facilities in the immediate vicinity can also add value to the property.
Infrastructure development plays a pivoted role in property price appreciation. Any type of development like trans-infra projects will boost the value. They are expected to drive population growth and ultimately increase demand. Investors who identify the right time to enter the market can get the most out of their real estate investment.
Impact of Government Policies:-
One of the important policies that have a direct impact on the growth in property values is interest rates on loans. The lower rate of interest attracts more buyers to the market, creating greater demand and great property price appreciation. Similarly, lowering stamp duties, GST rates, circle rates, income tax exemptions, etc. directly affects demand. In addition, the introduction of the Real Estate (Regulation and Development) Act 2016 (RERA) has created great trust among home buyers. This may not directly affect property prices, but streamlines the process of buying homes. Also home buyers can challenge offenses conducted by a builder. Such as property rights, delays or changes to the master plan without your consent, etc. This transparency helps with integrated development of the real estate industry.
Tips to improve property price appreciation!
In general, the national average property price appreciation rate for real estate is between 3% and 5%. However, this can vary greatly and really depends on the unique factors of your long-term ownership. Fortunately, if your real estate investment does not appreciate as you would like to see, there are several ways to increase the value of your property.
Improve efficiency of property: If you can reduce the amount of energy needed to run a property, you should gradually increase its value. This could mean replacing appliances with EnergyStar, installing solar panels,planting trees around the house.
Increasing property square footage: Increasing living space to a property increases its value. You can build an ADU or guest house at the back of the house, or add a basement.
Make smart improvements: Improving your property can add value, but be sure to make the right choices. Not all upgrades increase the value, some can degrade the existing value as well.
The e-registration for developers for the first property sale will begin on October 2, Balasaheb Thorat, State revenue minister announced on Saturday. This initiative will benefit the citizens.
“The registration department is all set with the software, and the process will be officially implemented from 2nd October. This will be for developers registered with RERA, to whom the department will supply the software after appropriate checks. This allows them to register documents from their offices.”
Orientation program for developers
While the minister had previously said that e-registration would be compulsory for all such developers, Throat said citizens can also register properties at sub-registrar offices. Before the e-registration of all new housing projects started with the Maharashtra Real Estate Regulatory Authority (MahaRERA) from October 1, the state registration department is ready to test the software next week. 50-60 developers have already begun e-registration in the state. Currently, more than 350 projects and 2,700 documents have been registered by e-registration.
Shravan Hardikar, inspector general of registration and stamps, said, “the upcoming software allows the developer to prepare a project template within 24 hours, this process took time earlier. A developer orientation program will be held in the last week of September.”
Brings more transparency
The department also reflects on the application process. To access the software, the developer must first contact the district registrar. This process expected to result in more e-registrations, the department will also provide for an increase in staff to speed up the e-registration of documents.
Sunil Furde, CREDAI State President expressed his opinion and said, E-registration will be a game changer for developers and customers registered with RERA. “This will bring transparency and clarity to the registration process.” Customers planning to register properties next month said the process would remove intermediaries or middlemen.
Last week Finance Minister R. Ashoka said, that the government is considering revising the guidance value by December. Any reduction will be made in overall Karnataka, with the exception of industrial areas and areas along the highways.
Discussions in the state government about the decline in the guidance values have encouraged developers and potential home buyers. This will spur the real estate sector showing signs of improvement after the second wave of Covid-19.
A lower guidance value is expected to boost the number of property registrations, which in turn will increase government revenue. About 2.1 lakh documents were registered in August, which generated revenue of Rs 1,142 crore, up from Rs 969 crore (1.7 lakh documents) in 2020 and Rs 911 crore in 2019.
What is Guidance Value?
Guidance value is the property’s minimum sale price. The government creates this depending on the area and the type of building. Downward revisions will lead to lower property prices. According to the rules, the government must review the costs every year. In January 2019, the government announced an increment in the range of 5 to 24 percent.
Demands to lower the rates
K.P. Mohanraj, Inspector General of Registration and Commissioner of Stamps, said, the guidance value could not be revised in 2020 due to the pandemic. Since the government wants to accept this year, we started the process. Demands for lower rates have long been heard, which in some areas is very high and leads to overpricing of real estate. For example, the guidance value of a property on MG Road is over Rs 1.9 lakh per square metre. On Lavelle Road it is about Rs 2 lakhs per square metre. Some real estate representatives said that due to the recession associated with Covid, some properties were undervalued and sold.
Government should also provide exemption in stamp duty
MS Shankar, the general secretary of the Forum for People’s Collective Efforts, said a decrease in the guidance value will have an impact on the property tax. The news added to the positive sentiment, especially in the wake of the recent property tax euro caused by BBMP’s erroneous zoning. The government should also consider reducing the stamp duty on property registrations across all price ranges.
Suresh Hari, chairman of CREDAI-Bangalore, said, while we welcome the government’s plans to lower the guidance value, we hope the government also takes into account the underlying realities before concluding the final rates. He added that real estate sales have reached 30 percent from the level before covid.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has opened a help desk for citizens to resolve inquiries from home buyers regarding various services. Toll-free numbers are 1800 2103770 and 022-69157100 operate from 7:00 am to 11:00pm every day, except Sundays and public holidays.
MahaRERA’s secretary Vasant Prabhu said the technical assistance was launched when many citizens declared their inability to communicate with the authorities after the pandemic for various problems. A team has been appointed to assist citizens in resolving their concerns. The team will assist them in filing complaints online or checking dates of hearings or other project registration requests. The support service will provide general information. If there are citizens who want to understand more technical issues, a dedicated technical team will help them.
Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association, said, this move would help citizens who are unfamiliar with MahaRERA’s activities. Many of MahaRERA members tried to call the toll-free number and found it very helpful. This move is very advantageous during the time of pandemic. Citizens can contact the support service and check the status of the project before investing in it.
The helpdesk will also help people file complaints under the direction of on-duty staff.
Manjunath Kakkalameli, a district court lawyer, said, even though the virtual hearing took place during the pandemic, there would be a help desk available to help citizens. Section (3) of the Real Estate (Regulation and Development) Act 2016 requires the authorities to introduce an online system for submitting project registration applications.
The demand for duplex house for sale in Bangalore has increased at a fast pace. The outbreak of the pandemic has made the average Indian citizen realize the value of owning a home, especially in major cities like Bangalore. People are increasingly choosing larger homes, like a duplex or 3 BHK apartment, to accommodate a specialized workspace within the living space. As work from home is becoming the new norm, people want a home that has dedicated space that can be used as a workspace without any hassle. As a result more and more home buyers, especially working professionals, intend to shift their decision to Duplex home.
Apart from apartments, Bangalore is also experiencing an increased interest of buyers in independent houses for investment purposes. As people turn towards more open spaces, especially due to the inability to go out at will, the demand for independent houses has also increased in the city. With the change in priorities, the trend towards duplex houses is likely to continue for a long time and for a significant portion of sales in Bangalore. Duplexes can be attractive because they cost more than a single-family home.
So, if you are looking for a duplex house for sale in Bangalore, read this article. We have discussed some tips, pros, and cons of buying a duplex home/apartment in Bangalore.
What is a Duplex House?
The duplex is a structure consisting of two separate family units. The two units share a common central wall but have separate entrance doors. Typically, a duplex home in Bangalore has a kitchen, a dining room, and two apartment blocks located side by side or on two floors with separate entrances. Although there are two floors, they are sold together and owned by the same person. A duplex house for sale in Bangalore usually has a kitchen, living room, and bedrooms on the lower floor, and a master bedroom on the upper floor.
The owner of a duplex house can rent out both or a single unit as well. It is mainly connected by an internal staircase. They are good investment opportunities and offer several advantages over apartments or villas. They provide a life experience similar to what you find in a home.
Different type of duplex home in Bangalore-
A duplex house can consist of apartment blocks designed side by side or on two floors. They are usually of 3 types and available in the following categories:
Standard duplex:– This is a two-story house, where the first floor is connected to the second floor by a staircase. On the ground floor there is a living room and a kitchen, and on the upper floors there are bedrooms and children rooms.
Low rise duplex:- This type has large balconies and a ceiling on the second floor. It is usually built in a smaller area compared to other types of duplex houses.
Low or Ground duplex:- These are houses built on the ground floors of the apartments, where the lower floors have a garden and contain bedrooms. The upper floor consists of a living room and a kitchen. This type of house is ideal for homeowners who prefer gardens.
Some best localities to buy a duplex home in Bangalore!
Bangalore has always been an attractive destination for both home buyers and developers. With lucrative options and bespoke budgets, the city is also one of the most popular cities for duplex homes. Some of the best localities to buy a duplex house in Bangalore are:
Tips before you consider a Duplex house for sale in Bangalore-
Cost of the House- Generally Duplexes cost more than single-family homes. Hence, you not only have to pay a higher percentage for the down payment, but the overall cost itself will be higher. So ensure you have enough capital to pay for this extra cost. So if you are planning to buy or rent a duplex house with many rooms, it will be very expensive.
Size or Layout- The number of bedrooms on each floor completely depends on the size of the house. If you buy a larger duplex, you get more rooms, and if you buy a smaller one, you get relatively fewer rooms. You can plan your duplex layout based on the number of rooms you need. Typically, a small two-story home has a living room, hall, and kitchen on the first floor and a bedroom on the second floor. The best thing is that you can customize the duplex to suit your needs and requirements.
Privacy- When you buy a duplex house and live on the same side (either down or up). Your tenants can come to you at any time with questions or concerns about your rental property. You can hear them through walls and they can potentially hear you. In simple words, a duplex house in Bangalore has less privacy.
Privacy/Confidentiality:- Everyone wants to live in a big house and more space and who doesn’t like a big space. A duplex house promises total comfort for its residents. The house plan has advanced features and large spaces that can include outdoor gardens.
Rental income opportunity:- One of the houses in the duplex can be rented out easily. This is especially beneficial if you have purchased a property on credit or loan. Since the rent you receive can be used to pay off the loan. The duplex house has a good resale value and appreciates faster, since the two units are well equipped with separate rooms and entrances.
Suitable for two families:- Duplex is a good option if you want to stay with your family, such as your grandparents. You can let your family or friends stay with you in one of the two units. Sometimes duplex house for sale in Bangalore are much more affordable compared to a single-family luxury home having same bedrooms and carpet area.
Share facilities easily:- You probably do not have access to facilities that are common in residential complexes, such as a tennis court or swimming pool. However living in a duplex means you only have to share the amenities and common space with some peoples, and not a whole group of people.
Office or work space:- With the trend of work from home, more and more home buyers are looking for a house which can provide them an additional space. For those buyers, duplex is a perfect option to consider. In a duplex house you have enough rooms which can used for your work or office space.
Disadvantages of buying a duplex home-
Maintenance responsibility:- As the owner of 2 floors the owner has to check the maintenance and repair work. If duplexes are not managed professionally, they may not guarantee you enjoyment and comfort.
Problem with tenants:- The relationship between landlord and tenant is delicate. If you share a property with another family, perhaps tenants, this can affect your privacy, which in some cases can cause controversy. This applies to any rental, be it a duplex or an apartment, it can be difficult to have an uninteresting neighbor. Understanding this will help you set expectations and hopefully help you avoid negative situations.
Sharing can be an issue:- In case of duplex house for sale in Bangalore, you are likely to share your yard and other amenities with your neighbor. This can be a problem if your neighbor uses too much of these areas or does not respect your space. So, it is best to consider all of these aspects when renting a duplex.
Duplex houses are more common in areas where there is a significant area of land. Most Indian cities have made room for skyscrapers due to the limited availability of land. Southern cities, especially parts of Bangalore, Hyderabad, and Kerala have duplex houses. These houses are suitable for roommates and families living in the same house who need a home-like environment. Duplex home in Bangalore also sometimes more affordable than single-family homes. So, they can be a smart way to live in a good area for less money.
About 1,824 residential projects in the state were declared as “expired” due to exceeding completion dates set by the Maharashtra Real Estate Regulatory Authority (MahaRERA).
These projects will now require 51% of the buyer’s consent to ensure that appropriate completion dates are extended. 103 of these projects were completed on time in 2017, 541 next year and 1,180 in 2019.
According to an official, many projects were not completed, even after a one-year extension under section 6 of the Real Estate (Regulation and Development) Act. “All of these projects will now require the consent of 51% of the buyers in accordance with Section 7 (3) of the Act”.
Developers are now restricted to promotions-
Due to the Act, developers of these projects are prohibited from selling, advertising, or promoting them before applying for an extension. Of the 1,824 projects listed by MahaRERA as overdue or expired, 350 project renewals have been submitted. However applications of these projects are currently pending or under scrutiny.
MahaRERA has extended the deadline to September for projects that were supposed to be completed in March. “The rest of the projects had deadlines before 2020 year, when the pandemic hit,” a MahaRERA spokesman said. A majority of the projects are based in Pune, Mumbai, Thane and Raigad.
An additional 1,500 projects may be under the scanner since their deadline expired in March 2021. Developers of these projects may now benefit from a one-year renewal under RERA Section 6.
Strong message to arrogant developers-
The developers felt that the authorities should make decisions appropriately as the market was down and there were difficulties in getting documents on time.
Anuj Puri, Anarock Property Consultants chairman said, the MahaRERA’s decision was a strong signal for arrogant developers who were postponing projects. “Home buyers have been waiting to gain possession of projects for the past three years. The last year was unique as the pandemic resulted in disruptions in the supply chain and inaccessibility of buildings. The year 2020 should be considered as an exception.”
Credai Maharashtra President Sunil Furde said, “MahaRERA was right to point out the status of unfinished projects. However, many projects remain “unfinished” for technical reasons. The authorities need to consider and evaluate this aspect as well. In addition, the projects for Credai members listed on the portal were completed on time. The “completion certification” for these projects has been received from municipal corporations before the registered dates. There are projects that have been completed, but completion certificates were received later.”