Independent Houses & Plots Sets To Get Expensive In Bengaluru.

Buying plots or  independent homes in Bengaluru will soon become more pricey. The Bengaluru Development Authority has proposed tol levy a cess of 2% for Slum development and 0.5% for the development of  Rapid metro in Bengaluru.The BDA has posted a proposal, and it is before the Urban Development Ministry as told by the BDA commissioner T Sham Bhat to a popular National Daily.

BDA earlier proposed  to levy a 5% Metro cess on market price of fresh land development, which was challenged in High Court and had later withdrawn by the state Government. The current offer has been drafted keeping in mind the court’s directive, he included.

The condition government continues to be collecting cess for that city’s infrastructure development by charging Re 1 on every litre of fuel offered within the condition. Almost a 4th of residence income tax is obtained via cess: overall health (15%), library (6Per cent) and beggary (3Per cent). The BDA got levied several cesses whilst granting sanction for models, nevertheless, a lot of makers earlier thanks on payment.

Source : IndianHousingProjects.Com

Prime residential apartments in Noida

Noida recently has emerged as the preferred destinations for residential real estate in the NCR region. Several factors put together provide a sound justification for investment here, namely: Good Infrastructure, Proximity to Delhi, comparatively low property rates to name a few. Noida, happens to be preferred destination of IT and ITES organizations and you will probably find several such companies in Sector 18, 60, 61,62,63 etc. Also it gives easy accessibility to Faridabad, Gurgaon and S. Delhi. It was therefore quite obvious that investment in a house here will yield sound returns.

DECODING The CHAKRAVYUH Of Housing LOAN.

Finding yourself trapped in conundrum of lending & returning of your home loan? Once you are caught in lending & returning of loan perplex it is surely challenging to get out of it so easily. Here are the ways to sail through your mammoth home loan.

Suppose you have more than one loan from same income source. Thereafter, your income source from where this loan must be remunerated gets shrink Thus, borrower continues to remain in debt and this leads to a situation, how one gets trapped in loan. As very famous quote by Warren Buffett on investment “I don’t look to jump over seven-foot bars; I look around for one-foot bars that I can step over.” So borrow the amount you can easily repay on the basis of fixed income source. Follow logics not intuitions.
So, if at any point in time, one is found captive in a loan trap, borrower could consider taking the following steps:

Questions to be asked from lender: Interest rate and term of the loan, how much is the monthly payment of interest and principal, is there a limit how much interest rates can vary, any processing fees and if I have to pay, is it refundable, how much money one should have at the time of closing?

Comparing different sources of borrowing: Most of the loan sources like private finance nationalize bank etc. offer different rates of interest. Even a small difference in percentage of interest makes big difference at the time of repayment for bigger amount.

Spend wisely: If the situation is such that income revisal is slow, the immediate need is to cut down on wasteful personal and related sundry expenditure. At times we hesitate to do it, thinking that this is a small step. But big things happen when many small steps are taken together. Think of all those extras – shopping, restaurants, clubs bills etc. and not to forget that heavy tax amount we pay along – which can be cut down on but won’t affect the essence of your life.

Making rough draft of all your expenditure would help you come up with a list and which in all likelihood could be substantial. This can surely help in bringing down your expenses by at least 10% in monthly basis.

Take notes of credit score: The best and easy way is to build your score is to ensure that your loan, credit card repayments and other payments are calculated in advance and are all payments are made always in time. Use your credit card in most limited manner. Try limiting your credit card usage, try to pay in cash and limit pilling on credit card bills.

Contact your loan sources: Contact your bank to discuss ways of getting rid of your loan as early as possible. This will allows you built concrete plan to pay off your loan for lesser interest.

Engage in other source of Income: Look for ways to earn some extra money. Take up freelance work of your interests. Try renting property, give tutorial class etc. This will not only help you to make some extra money but will also give you time to engage in activities of your choice.
So keep yourself inspired and motivated, nothing can be done without hope & confidence.

ICICI Bank unveils first guarantee-backed home loan product.

Mumbai: Largest private lender ICICI Bank on Wednesday launched the country’s first mortgage guarantee-backed home loan product that will expand the credit amount and increase the tenure for an additional fee as well.

It will help customers raise the eligible amount by up to 20 percent and increase the tenure by up to seven years, MD and CEO Chanda Kochhar told reporters here.

ICICI Bank Extraa Home Loans can be availed only after paying a one-time mortgage guarantee fee to be paid at the start.

Executive Director Rajiv Sabharwal said the fee will depend on the age of the borrower, extension in tenure, the nature of her income — whether she is salaried or self-employed — and the loan-to-value ratio.

It will be up to two percent of the overall loan, including the incremental component, he said.

The product has been launched in association with the India Mortgage Guarantee Corporation, which will guarantee the incremental risk, Sabharwal said, adding that it conforms to all regulatory norms.

The product is targeted at middle-aged individuals and the self-employed, he said.

Such products are popular in the US and Canada, Sabharwal added.

It can be recalled that over-leveraging of property by multiple loans is one of the reasons for the collapse of the American banking system in 2008, which led to the collapse of the global economy with the fall of Lehman Brothers and many other Wall Street titans.

Real Estate Bill To Boost Investors Confidence

During recent years sluggish economic growth and delays in getting approvals held up several housing developments, leaving buyers waiting for possession and developers holding high debt. The Cabinet therefore, has brought out a bill to regulate the real estate sector which not only protect home buyers but also curb hidden black money in property markets. The decision of government to amend the bill, aims to boost investor confidence and stamp out prevailing illegal practices in the realty markets.
The new laws will benefit Modi Government in achieving the election promise of providing houses for all by 2022. Developers in the Indian real estate market often demand part payment in illicit cash, making many ordinary people party to corruption and exclude the emerging middle class from the realty market. The move will lead to more transparency and established industry, boost investor confidence and it will make builders more accountable. A key provision of the amended bill makes it mandatory for developers to put aside half of the money collected from buyers during pre-sale of homes and use it only for construction of that project.

Projects have been delayed in recent years after developers diverted funds raised from one project to another leaving them empty handed to complete construction thus resulting in buyers waiting for their dream homes. Real Estate markets saw its worst phase last year with steep fall in ‘housing units’ consumption and very low project launches in major cities like Mumbai, Chennai, Bengaluru, Pune, Gurgaon, Ghaziabad and Noida.

Ten ways how the Bill will help property buyers:

1) Each state will get a real estate regulator, which will settle disputes and inflict compensation. All housing andcommercial projects will have to be compulsorily registered with the regulator so that buyers can have access to genuine projects. Ongoing projects that have not received completion certificates will also be covered under the present bill.

2) Developers cannot advertise or launch projects without prior registration with the real estate authority.

3) Sale of property on the basis of super area (area in which a flat is spread plus common area such as lobby) will be prohibited. Developers will have to advertise carpet area, which is the area enclosed within the walls of a flat or apartment, for sale.

4) Developers will have to disclose layout plans and submit clearances with the regulator. They will also have to name the contractor, architect, structural engineer, etc. associated with the project. This will ensure transparency about construction quality in projects.

5) To ensure project completion on time, promoters will have to set aside 50 % of the amount taken from buyers and deposit it in a separate bank account within 15 days.
6) Developers will need the consent of two-third buyers to alter plans, structural designs and specifications of the building and will have to rectify structural defects and refund money in cases of any default.

7) Brokers, who intend to sell flats and plots in a housing project, will also have to get registered with the real estate regulator. They will be a penalty for non-compliance or any irregularities in trade practices.

8) Buyers can claim refund with interest and compensation if developers fail to deliver projects in given time period.

9) If rules are violated, projects will be de-registered and penalties will be imposed on the developer. Non-compliance will attract fine up to 10 % of project cost. Misleading information will attract fine of 5% of project cost.

10) Builders often demand part payment in cash, pushing many ordinary buyers to corruption. The Bill will help curb undeclared “black money” in property markets that costs the government billions of rupees in taxable income

The bill is a welcome move which aims to restrain flow of funds to ensure time bound construction, and impose penalties, including de-registration of the project and other fines in case of a breach. Indian Realty markets are going through a lean patch with investors and buyers, both are waiting on the sidelines for the ‘acche din’ to enter property bazaar.

More Worries For Noida Flat Buyer’s

For thousands of buyers who invested in multistoried housing projects in Noida & Noida Extension, the past five years have been full of apprehensions. With projects already delayed for over 2-3 years in most cases, the latest NGT order, restricting construction of about 20+ projects, affecting 80 towers for not adhering to pollution control norms has again put a building block in their aspirations of possessing an apartment of their own. For reasons beyond their command, having already paid up more than3/4 of the total value, these buyers are now in a fix they can neither sell the apartments, nor move in any time soon. There is no time –frame for possession assurance given either from the builder or from authorities. This is not the first time under-construction apartments in Noida Extension (also known as Greater Noida West) have been affected by superfluous factors. Construction at several sites came to a halt even in 2011, when a group of farmers challenged the process of acquisition of land in the area in Allahabad high court. Till today, the final order on the Noida Extension land acquisition remains pending with the Supreme Court.

Banks are hesitant to finance Noida Extension projects which clearly show how uncertain properties in Noida Extension have become lately. Buyers are over-burdened with both EMIs and rents and this order will tarnish the real estate development not just for NCR but also for the Indian realty markets. Controlling construction site pollution is an issue plaguing Noida for long and nothing much had been done up till now to curb the menace. Growing construction activities have already taken a toll on infrastructure system and this step could be a stepping stone to safeguard public health and safety. However, interest of buyer’s and investor’s should also take care of who are putting up their hard earned money in various housing projects. There should be a proper monitoring mechanism and stringent procedures adaptation by enforcement authorities to safeguard interests of buyers as well as builders alike and not to repeat mistakes again in the future.