Monthly Archives: January 2022

The new MahaRERA rule help home buyers to track project status

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MahaRERA recently issued a circular requiring promoters to provide different types of certificates. These certificates would be from engineers, architects and chartered accountants to the banks. With a copy to the real estate regulatory authority before withdrawing any amount received from the buyers, stating that the payments are in proportion to the percentage of construction completed. The amounts received from the allottees deposited to a separate account.

MahaRERA will upload these certificates provided by the architect and engineer to its website for the convenience of home buyers. This will mean that the home buyers can see the exact status of the project. For example, the amount of construction completed and costs incurred. Previously, the promoter had to receive certificates, and it was only necessary to submit a self-declaration to the bank.

Promoters must also verify their account separately within six months of the end of each fiscal year by a CA. They must also submit an account statement duly certified and signed by the CA. The audit by CA will confirm that the funds raised for a specific project have been used for that project and that the withdrawals correspond to a fraction of the percentage of work completed. This new rule applies to both ongoing, new and upcoming projects.

More financial transparency

The promoters are, in accordance with section (2)(l) D of section 4 of the Act, obliged to deposit 70% of the money raised for the project of the buyers in a separate account in the specified bank. This money used only to cover construction costs, land and other construction costs. To ensure that withdrawals are proportional to the percentage of project work performed. The developer must provide certificates from the engineer, architect and CA (Chartered Accountant) to MahaRERA, other than the bank, at each withdrawal until the project completion certificate is received.

The 2017 Maharera Circular allowed the organizer to make only one self-declaration every quarter. Instead of issuing these three certificates each time on every withdrawal from the bank account. Lawyer Anil D Souza, secretary of the Maharashtra State Bar Association, said, “MahaRERA has not only brought more transparency to the financial aspect of project management. But has also placed a greater responsibility on the promoters along with the engineer, the architect, and CA certifying at each step. Previously, home buyers were unable to know the status of their money, once they have invested in a project. But with this regulation, the authorities can regulate and track the dishonest practices of builders.

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416 Housing Plots Up For Grabs Near Airport Site

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A residential plot scheme launched by the Yamuna Expressway Authority in December nearby Jewar airport closed on January 24 with over 30 times more responses.

Against 416 plots on offer in sectors 16, 18 and 20 of YEIDA, which are 6 km from the nearest airport. The authority received about 13,888 applications, officials said Wednesday. Plots range from 120 to 500 square meters and from 1000 to 4000 square meters and demand circles rate from Rs 17,400 to Rs 17,800 per square meter.

No more than 7,000 applications for 120 sqm of land and at least two applications for 500 sqm of land were received. Interestingly, the largest plots of 1000, 2000 and 4000 square meters attracted only 128, 27 and 21 bidders, respectively. The draw will take place after the model’s code of conduct is repealed, officials said.

Shailendra Bhatia, OSD to YEIDA said, approximately 13,889 applications received for 416 plots offered under the scheme. This number may increase after the data is consolidated. The circle rate for plots up to 200 square meters is Rs 17,800 per square meter and Rs 17,400 for plots over 200 square meters.

“This excellent response is a sign of the interest that many people have in the Yamuna Expressway area. In addition to the future of Jewar Airport, interest has also increased due to the launch of various development projects, including International Film City, industrial parks and a high-speed train project, ”added a senior YEIDA official. Also earlier, YEIDA published a city plan for 440 plots.

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Maharashtra removes tax on residential properties up to 500 sqft!

Karnataka Govt. cut property guidance value by 10% for three months

Maharashtra removes tax on residential properties up to 500 sqft!

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On Saturday, New Year’s Eve, the Maharashtra government announced that it has completely removed property taxes for residential properties of up to 500 sqft in Mumbai.

Chief Minister Uddhav Thackeray announced the decision earlier in a meeting. According to the statement, CM has asked management to implement this decision immediately. On Saturday, Thackeray held a virtual meeting with Shinde, Mumbai district guardian Minister Aslam Sheikh, Mumbai suburban district guardian minister Aditya Thackeray, Mayor Kisori Pednekar and Chief Secretary Debashish Chakrabarti.

Eknath Shinde, Urban Development Minister quoted that, this tax waiver would benefit more than 16 lakh homes owners who live under 500 sqft in Brihanmumbai Municipal Corporation (BMC). Shinde said Shiv Sena, which rules the BMC, fulfilled an important guarantee he gave ahead of the 2017 BMC election.

The official said that after the launching of this scheme, BMC is expected to lose Rs 468 crore in revenue. BMC expected a property tax increase from Rs 6,738 crore in 2021-2021. But was able to raise Rs 4,500 crore due to the covid pandemic and the closure. BMC expects property tax of Rs  7,000 crore to be levied in 2021-2022.

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CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

CREDAI to boost real estate investment during Rajasthan summit-2022

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On Wednesday the Jaipur Development Authority (JDA) met with the Confederation of Real Estate Developers Associations of India (CREDAI), Rajasthan. The purpose of this meeting is to provide job opportunities and attract domestic investors during the Invest Rajasthan Summit 2022.

Several officials believe after the meeting that there will be new opportunities for industrial development and employment in Jaipur’s tourism sector. At the meeting, a leading developer from Jaipur announced that his group will invest around Rs 10,000 crore during the Invest Rajasthan summit in 2022. The group will begin work on the second phase of the Mansarovar amusement park. In addition, a medical college will be built within a 10 km radius of the established medical hospital on Shipra Path in Mansarovar.

In addition, three industrial cities also established in Jaipur City, where about 2,000 companies will be established. Also, two integrated buildings will be built with about 3,000 plots. The group said it would also set up an IT center where the company’s offices in the cities of Chennai, Bangalore and Hyderabad would be available. In addition, these plans will also contribute to the development of housing construction.

The group informed the community that we will build two shelters for working women on the Jagatpura-Tonk road. In addition, a private golf course will be built on the way to Delhi.

Authorities making efforts to increase real estate investment! 

Other developers of CREDAI (Confederation of Developers’ Associations of India), who attended the meeting. They asked for the development of residential and commercial townships.

Jaipur Development Commissioner Gaurav Goyal said: “Rajasthan is a state with enormous industrial potential. Investment in the Rajasthan Summit in 2022 not only leads to the development of Jaipur, but will also create new job opportunities.”

Chief Minister Ashok Gehlot, in the 2021-22 budget announced that an investor summit would be organized to attract more and new investors to the state. The authorities are making an effort to increase investment in the real estate sector.

According to an official, several CREDAI members offered to provide concessions and incentives for water and electricity connections a municipal development memorandum and a proposed scheme. “After receiving feedback from various participants, the issues will be resolved at the JDA level. The issue that the JDA cannot resolve, referred to the state government.

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CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

EMI for Homebuyers may inflate due to stuck registries of flats in Noida

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Along with delayed housing projects city buyers have got a new problem. As registries of thousands of apartments stalled, homebuyers began receiving messages from banks demanding an additional 2% per annum at fixed prices. Both state-run and private banks are sending the notice.

These notices from the bank indicate the reason for the delayed registration of the apartment. They referred to certain matters mentioned in the letter of sanction, which was signed between the buyer and the bank at the time of the home loans.

Under these conditions, the buyer of the apartment must present the documents in connection with the conclusion of the sales deeds no later than 60 days after being offered the possession letter by the developer. If no document submitted, the buyer must pay an additional interest of 2% per year in addition to the applicable rates. As the bank will charge mandatory interest rates and increase the balance on a monthly basis. The non-payment of these fees may affect the buyer’s credit rating in the future.

Buyers of apartments in the sectors dedicated to the development of Sports City have suffered the most. Many buyers who sent new messages approached the district’s central bank manager to intervene.

Issues between Noida Authority and Private developers 

Narendra Kumar, central government official, bought a 3 BHK apartment in Civitech Stadia in sector 79 in March 2017, said. “Several months ago, I received a notice from my bank that I should pay additional interest. Since I did not submit sale deeds after receiving possession of the flat, they quoted part of the agreement letter. Kumar paid Rs 68 lakhs for his apartment for a loan of Rs 58 lakhs. Kumar monthly EMI of Rs 56,500 can be increased by at least Rs 5,000 if an additional 2% interest applies.

Narendra Kumar received a loan five years ago, said he was responding to the notice and awaiting a decision soon. The buyers of the Sports City project were offered their own apartments. They have been living in them with their families for the past three years. However, due to issues between the Noida Authority and private developers who develop residential complexes in sectors 101, 78, 79, 150 and 152, the execution of sales contracts or registrations has been delayed.

Even after paying the land premium, the developers of the Sports City project are not able to sign a tripartite agreement with the Authority and the buyer, as they have not built the infrastructure or sports facilities in accordance with the rules.

Vedas Ratna, manager of the Lead bank, said that a meeting will take place in the near future. We are talking to more banks and we will accept applications from affected buyers in a meeting with the district magistrate. We may need to contact the Reserve Bank of India for further instructions.

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CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

5 Different types of real estate investment in India | Investing in property

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Planning to invest in real estate in India? Before you get started, you first know the types of real estate investments available in the Indian market. Real estate investment is considered as one of the most profitable businesses. Sometimes a property may bring instant cash in rare cases, such as a sudden increase in value due to market reasons or due to the unique location of the property. While in some cases an investor has to wait a long time for the land or property to increase in value. The demand for real estate has increased markedly compared to the supply in the current market. Thus, making this the perfect time to start your investment.

Some types of real estate investment in India are-

Raw land-

Raw land usually refers to undeveloped land or agricultural land. Many investors saw this as a good investment because it is tangible and has limited resources. In addition, buying land will save you from the hassle of repairs and the worry of theft or damage to property. Compared to buying a house or warehouse, land can be a much cheaper investment. The main disadvantage of this, however, is that it can not generate revenue alone.

Residential real estate-

Residential properties refer to any property used for residential purposes. These include independent homes, apartments, and duplexes. Residential real estate is ideal if you want to build your dream home or start a family. Real estate in the form of apartments is still in high demand due to its convenient location and access to nearby important locations such as shopping malls, hospitals and shops. In terms of profitability the residential real estate is a good investment option.

Commercial real estate-

Commercial property refers to any real estate whose primary motive is to provide business operations and services. Generally these properties include residential complexes, office towers, petrol pumps, hotels, hospitals, parking lots, etc. In this types of real estate investment in India, the investors are usually entrepreneurs or business owners who want to build their brand in a specific location or want a workspace for their employees. In this type, most of the profits are generated from rental income of the property.

Industrial real estate-

Industrial properties are defined as all areas, buildings and other objects on which industrial activity is carried out. These include warehousing, production, assembly, manufacturing, research and distribution of goods or products. The zoning laws usually specify in which areas of the city these facilities can be designated. So that they do not interfere with residential areas and other nearby areas while in operation.

REITs-

The Real Estate Investment Trust (REIT) manages or owns commercial real estate that generates income. REITs are one of the most effective assets in the real estate market, which can fetch you a higher return on investment. You can select different types of REITs to get the most out of your portfolio. Such as office, retail, healthcare, and housing. One can invest in these companies through an exchange traded fund or an investment association. The special thing about this type of investment in real estate and land is that they benefit from the state’s exclusive tax treatment, and the income that the investor receives is higher and easily converted into cash compared to other forms of investments.

Conclusion-

Real estate is without a doubt an attractive investment. However these different types of real estate investment in India come with their own risks and rewards that an investor should carefully consider before investing. There are several real estate options on the market, residential real estate is still one of the most popular options. One should not take an impulsive decision because the amount involved in real estate investing is huge. Many realize the economic benefits and reap the rewards in the long run.

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Maharashtra removes tax on residential properties up to 500 sqft

Karnataka Govt. cut property guidance value by 10% for three months

8 Effective Tips to buy your dream home with a single income!

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Buying a home with a single income can be challenging and daunting task for some home buyers. Even if you buy your first home, it is a good option to own a home with a single salary with a little financial overview. Since you need to spend a significant amount of money to invest in real estate, there are many factors you need to consider to ensure a good return.

Different home buyers have different intentions of investing in real estate. For some people, it may be a dream home that they would like to buy. While for others it may be a profitable investment for the future. Therefore, it is more important to understand your needs when investing in real estate. Here are some important points that can help you buy a house with only one income.

5 Tips to buy your dream home with a single income source!

Budget-

The first tip is to evaluate and complete the process of estimated budget. Properly examine the market value of property you are planning to buy. For example, if you are looking for a 2-bedroom apartment, research the prices for such projects from different builders. Also look for estimates of additional costs such as interior and maintenance costs. This will give you a rough estimate of the required budget.

Down payment and Credit Profile-

In India, the government allows a maximum loan of 80%, which means you have to put a 20% down payment for your home. You should start saving as soon as possible if you are planning to buy your dream home. Another tip to buy your dream home with a single income is to maintain a decent credit history. Here are some tips to help you maintain a good credit history:

– Make sure to pay off all previous loans before applying for a home loan.
–Try to avoid any expensive purchases before applying for a loan. A purchase before applying for a loan should not exceed Rs. 64,000.
– Maintain a good credit score by paying your credit bills on time and also try to make your debt to income ratio.

Location-

Location is an important factor in determining the value of your investment. In real estate, investing in a perfect location is the most important step. This could be your hometown or the place where you work. Generally remote locations will be cheaper than locations in a thriving city. Therefore, depending on the purpose of your investment, choose the place that suits you. If you prefer living in a quiet and green area, away from the noise of the city, consider buying a house or land in the suburbs. However if you like living a modern lifestyle close to your workplace, then invest in an affordable apartment.

Co-borrower or guarantor-

Having a co-borrower or loan guarantor can sometimes help you overcome the loan process hurdle in case you do not have a very long credit history. When assessing the application, the lender will take into account the co-borrower’s credit history, assets, and income. Your co-borrower not only helps you apply for a loan, but also helps you get the best loan terms. Thus, helps you buying your dream home with only one income source. Be aware that your co-borrower become responsible for the payments and hold a joint title of the property with you if you do not pay off the loan amount.

Adequate Market Analysis-

Knowing the latest market trends, interest rates, prices, and policy changes will enable you to understand the market situation and accordingly plan your investment. You should conduct a proper analysis of the market trends to protect yourself from any real estate fraud. Compare and find out pros and cons of different types of real estate. You should not blindly trust any agent or broker you know. Always seek a second opinion from a certified real estate consultant before committing to a financial transaction.

Government Policies-

Keep an eye out for changes in government tax policies, home loan policies, interest rate fluctuations and other government exemptions. Checking the policy changes is crucial when buying home with a single income to avoid major problems. Check the applicable property rules set by the government so that you are well informed about the necessary legal procedures. In India, for example, real estate must now be registered under the RERA Act, which protects the rights of the buyer and provides greater transparency in real estate transactions.

Choose best EMI plan for you-

EMI tenure is probably the most important factor to consider when applying for a home loan. Check how much you can afford to pay each month on a mortgage. For your family to function smoothly, the EMI of home loan should not exceed 40% of your net income. Consider increasing your EMI for a shorter loan period if you have additional sources of income in addition to your monthly salary. According to real estate experts the best term for a home loan is around 15-20 years.

Property type-

It is important to decide the type of property in which you are investing.The price of properties varies and depends on size, location, age and type of property. In addition, prices will vary depending on the number of rooms, facilities and the quality of the materials used. Investing in a ready to-move-in apartment or an existing apartment is a great way to generate monthly income. Since you can rent them out easily after buying the property. On the other hand, under construction projects will cost much less than the cost of completed projects in the city.

Conclusion-

So, these are some important points that you should remember before buying your dream home with a single income. The Indian real estate market is saturated with several types of real estate, ranging from apartments, plots, villas and commercial premises. According to real estate experts, preliminary market research can help you focus on the ideal property.

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Karnataka Govt. cut property guidance value by 10% for three months

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The Karnataka state government has lowered the property guidance value of state-owned properties by 10 percent over the next three months, allowing people to register as quickly as possible. Revenue Minister R Ashoka called it a New Year’s gift to the public. For the purchase of real estate, whether it is a piece of land, building or an apartment, the government is lowering the guidance value by 10 percent, which will only apply nationwide for three months.

Guidance value, the minimum sale price of real estate set by the state depending on the location and type of building.

The Minister said, this is kind of an offer for those who are in a hurry to get a general power of attorney (GPA) and real estate agreements. It is also for those who plan to register real estate valid from January 1 to March 31.

After the minister asked the public to seize the opportunity to register their property, the minister said it was a long-standing demand. The announcement came after several rounds of discussions between the finance and revenue departments, IGR (inspector-general of registration) and Prime Minister for the last month.

“All types of property registrations will be made throughout the state, whether it is dry or irrigated land, subdivisions or plots of land. It applies to everyone, adding that it may have some impact on state revenue, but it will also be for the benefit of ordinary people.

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