Tuesday, June 28, 2011

Awesome Breathing Therapy For Everyone

Awesome Breathing Therapy For Everyone

Breathing Therapy

The nose has a left and a right side; we use both to inhale and exhale.
Actually they are different; you would be able to feel the difference. The right side represents the sun, left side represents the moon. During a headache, try to close your right nose and use your left nose to breathe.
In about 5 mins, your headache will go?   

 If you feel tired, just reverse, close your left nose and breathe through your right nose. After a while, you will feel your mind is refreshed.
Right side belongs to 'hot', so it gets heated up easily, left side belongs to 'cold'.
Most females breathe with their left noses, so they get "cooled off" faster.
Most of the guys breathe with their right noses, they get worked up.

Do you notice the moment we wake up, which side breathes faster? Left or right? ?
If left is faster, you will feel tired. 
 So, close your left nose and use your right nose for breathing, you will get refreshed quickly.
This can be taught to kids, but it is more effective when practiced by adults.
My friend used to have bad headaches and was always visiting the doctor.
There was this period when he suffered headache literally every night, unable to study.
He took painkillers, did not work.
He decided to try out the breathing therapy here: closed his right nose and breathed through his left nose.
In less than a week, his headaches were gone! He continued the exercise for one month.
This alternative natural therapy without medication is something that he has experienced.
So, why not give it a try?

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Wednesday, June 22, 2011

PE, VC investments to touch $75 billion by 2015

MUMBAI: Private Equity and Venture Capital investments, which are major contributors in development of several sectors in the country, are likely to touch $70-75 billion till 2015, leading audit and advisory firm Grant Thornton said on Wednesday.

"We expect $70-75 billion of PE and VC investments in India during 2010-2015," Sudhir Sethi, chairman and managing director, IDG Ventures India and member of IVCA Executive Committee and Research and Data Sub Com said after the launch of 'The Fourth Wheel'.

Source:-Economics Times

“CIBIL is defaulters list the very common misconception”

The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors’ portfolio quality.

“It is very important to understand that CIBIL is not a defaulters list. This is a very common misconception. CIBIL is an information repository of both positive and negative information about the borrower. This includes information pertaining to individuals who are making their payments on time as well as those who are in default” Mr Arun Thukral- Managing Director CIBIL said while talking with this newspaper.
By Nawaz Sayyed

Q1. Once CIBIL (Credit Information Bureau India Limited) added someone into defaulters list then he/she has been banned for life time or for specific period?
It is very important to understand that CIBIL is not a defaulters list. This is a very common misconception. CIBIL is an information repository of both positive and negative information about the borrower. This includes information pertaining to individuals who are making their payments on time as well as those who are in default.
CIBIL does not ban any borrower, neither does it provide any opinion, indication or comment pertaining to whether credit should or should not be granted. The credit grantors who have received an application for credit will make their own credit decision depending on their risk management policies.

Q2. What is the procedure to remove name from defaulters list?
As mentioned earlier CIBIL does not maintain any defaulters list. However, if a borrower is showing negative credit behaviour in the CIR, there are ways to improve his financial standing going forward which would be reflected in his credit history available with lenders on request –
• Always pay your dues on time. Late payments are viewed negatively by lenders
• Keep your balances low. Most lenders review the total outstanding debt of a potential borrower (across all types of accounts) and the amount of debt used in proportion to the amount of debt sanctioned to the borrower by the lender
• Maintain a healthy mix of credit. Your CIBIL CIR should contain a mix of a home loan, auto loan and a couple of credit cards. The more the number of credit cards with high utilization, the larger are the payments resulting from the high interest rate resulting in your ability to service additional debt obligations
• Apply for new credit in moderation. Your ‘Credit Hungry’ behaviour indicates your increasing debt burden

Q3. Where does CIBIL get the information from?
CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, which are members of CIBIL, on a monthly basis. This information is then used to create Credit Information Reports (CIR) which are provided to lenders in order to help evaluate and approve loan applications.

Q4. Is there any individual credit rating possible if and what is the procedure?
Yes. This is called as a Credit Score and it is one of the most common tools for credit lending around the world. It is generated basis the individual’s credit history and is used to determine the specific level of risk associated with the individual.
In India, the CIBIL TransUnion Score is the only implemented generic scoring model, which through advanced analytics assigns a number between 300 and 900 to a borrower, based on his/her credit history. The higher the numerical value of the score, the lower is the risk profile of the individual.
The CIBIL TransUnion scoring model uses various attributes based on credit behaviour information for determining the credit score. And while many of them are proprietary in nature, the majority of the score is made up of the following elements:
• Credit Utilization: how much credit is this consumer using?
• Defaulting: how many accounts are past due – by how many days and by how much?
• Number of inquiries: has this consumer applied for additional credit lines?
• Trade Attributes: How old are this consumer’s lines of credit? What type of credit does he have? Does the consumer have a good mix of credit or is it all credit cards?

Q5. How can an individual consumer access his/her CIBIL Trans-Union Score?
Consumers can now access their CIBIL Trans-Union Score directly from CIBIL.
Consumers can purchase their CIBIL Trans-Union Score along with their CIBIL Credit Information Report (CIR) for Rs.450. The payment can be made by following an online payment procedure or through a Demand Draft. They will have to submit their own identity proof and address proof documents along with the application form and online payment receipt or Demand Draft. Further details on the CIBIL Trans-Union Score for consumers are available on the CIBIL website https://www.cibil.com/d2c

Q6. Individual corporate or non members of CIBIL could access the database of CIBIL?
Individuals and corporates can access their own Credit Information Reports (CIR) from CIBIL.
Credit institutions, which are members of CIBIL, can access credit reports of loan applicants for risk management. CIBIL works on the principle of reciprocity, which means that it will only share the information with its members who share their data with CIBIL, for credit risk management.

Posted: 21 Jun 2011 12:19 AM PDT

Infosys, Tata Group ahead of Google & Facebook in thought leadership

BANGALORE: India's homegrown firms Infosys and Tata Group rank higher than global giants like Google and Facebook, when it comes to thought leadership, according to a report by a UK-based consultancy firm.

TLG Communications' BRIC Index of Thought Leaders 2011 highlights the most successful thought leaders, according to Indian opinion formers. Respondents to the research included company directors, newspaper editors, senior politicians and charity leaders.

While the country's second largest IT services provider Infosys took the top slot in the list, that defines thought leaders as organisations or individuals that change attitudes and behaviours, Tata Group made it to second spot. Some of the other top ten thought leaders included L&T, Maruti-Suzuki and State Bank of India .

Amongst the global firms, Google made it to third spot, while Nokia came in sixth and Facebook took the eighth spot. In the US and UK, Apple took the top slot while Google came in second.

Source:- Economics Time

RBI credit policy: Rate hike to squeeze home sales; gloomy outlook ahead

NEW DELHI & MUMBAI: A 25 basis point increase in key interest rates by the Reserve Bank of India today is likely to further squeeze home sales across the country, some developers and bankers said, amid apprehensions that banks may increase home loan rates again.

"Purchasing activity had already dropped visibly during the last tranche of interest rate hikes, and we will see a further drop in buyer interest now," said Anuj Puri, chairman of property consultancy Jones Lang LaSalle India.

Owing to the last 10 rate hikes by RBI, EMIs for housing loan have risen 25% to Rs 980 per Rs 1 lakh of borrowing, and consequently loan eligibility for homebuyers has declined 20%. "Housing finance companies have no wiggle room available and will necessarily have to pass on this 25 bps hike to the customer," says Anil Kothuri, head, retail lending business at Edelweiss Group.

Customers will now have to reconsider the size and locations of houses they wish to purchase, and many buyers are expected to put off their purchases altogether till home prices come down and rates stabilise.

"This is certainly bad news for existing home loan consumers as banks will certainly increase home loan rates," said Akash Deep Jyoti, head, Crisil Ratings. For new home loan seekers, this will be big deterrent, not just because of the rate hike but also because of the frequency of the rate hike by RBI. "The only positive for a person who is looking to buy a home is the option he has, of buying or not buying. Existing home loan customers are stuck," said Jyoti.

Renu Sud Karnad, managing director of private sector lender HDFC is however of the opinion that this quarter percentage hike will not impact housing demand and loan offtake. Increase in policy rates push the cost of properties up as they increase the cost of funds for the developers, who are already reeling under the pressures created by high input costs. "We then have to pass on the same to end user," Pradeep Jain, chairman of Parsvnath Developers said.

Some builders are hoping that this is the last rate increase by the central bank for 2011. "Any further increase will be debilitating for our sector," said Sanjay Kabra, chief financial officer of the Sunil Mantri group.

Cost of funds for developers is already very high, ranging anywhere between 14.5% to 16%, depending on the credibility of the borrower, and banks have not been willing to lend to the real estate sector in the recent past.

This has forced many developers to tap other sources of funds, which are much more expensive than bank lending. The situation is not likely to improve in the next few months as analysts and economists across the board expect policy rate to be hiked by at least another 50 bps in FY12.

Redevelopment – Guidelines for Housing Societies

Ramesh Nair, Managing Director – West India, Jones Lang LaSalle India
In Mumbai, rising costs and lack of space make it unfeasible for residents to move out of aging and often sadly dilapidated housing societies. Not surprisingly, redevelopment has become a central concept – and the subject of increasingly heated debate.
Many of Mumbai’s older housing societies are showing signs of serious neglect. There are distinct safety and security issues and a complete absence of modern amenities. In this scenario, redevelopment is a sensible, viable, long-term solution – in fact, often the only solution. However, while many developers sell the dream of redevelopment to housing societies, there have been several cases where the dream has turned into a nightmare for the families who reside in these societies.
Though I will not name them, there are some rather prominent banners among the developers who have defaulted on their redevelopment promises. It is quite evident that selecting a dependable and trustworthy builder who is familiar with and knowledgeable about the processes involved is fundamental to ensuring successful redevelopment.
A redevelopment project going wrong can have disastrous consequences for all stakeholders, and it is invariably the housing society’s managing committee that becomes the scapegoat. In redevelopment, prevention is most definitely better than the cure.
A failed redevelopment can be avoided by adhering to a proper process while selecting a developer to partner with. Once the developer is finalized, it is important to incorporate all of the standard 27 clauses that safeguard the society and its members into the development agreement. This can eliminate the possibility of disputes at a later date to a significant extent.
The cure for a botched redevelopment would be legal proceedings against the developer. However, as per law, a redevelopment project has to be completed within two years – a period that can be extended to three years in exceptional cases. Legal proceedings against the developer could take several years, making this an unviable route and often not an option at all.
Who Is The Right ‘Re-Developer’?
While selecting a developer, both financial and quality aspects need to be considered. Most societies focus on only quantitative financial terms, which include:
• The carpet area offered to each society member
• The corpus amount offered
• The FSI consumed
• Alternative accommodation
• Shifting charges
• Penalties
• Specification
What gets ignored with such a blinkered focus are the qualitative aspects of the developer, which would include past experience and track record. Extensive research needs to be done on the developer’s construction, marketing and legal track record.
Some of the questions that need to be asked are:
Does the developer have a strong brand?
• Can the rest of the redevelopment scheme be on par with the quality and brand of the developer’s portion?
• Is the developer known for violations, or does he have a clear track record on aspects such as title?
• What are the systems, structure and strategy of the developer?
• Does he have strong in-house construction and marketing teams for execution?
• Does he have a record of cost and time overruns?
• What is his level of implementation expertise?
• How well-connected is he, and how adept at obtaining the necessary approvals on time?
• Is he knowledgeable about and comfortable with the local environment? He may have to handle unforseen hurdles that are always potentially a part of redevelopment projects
• What are the developer’s abilities in terms of raising equity and debt funding?
• Does he use a transparent and consistent financial accounting policy? What is his current fund availability and funding pattern?
The society should do a reference check of at least two or three others societies where the developer has constructed and delivered projects. It is essential to establish whether he adheres to promises on quality and timelines made in the agreement, whether he treats the development agreement like a contract rather than a piece of paper and if he provides sound structures with good infrastructure and finishes. A developer with good credentials would not only command a premium over competition in pricing but also have easy access to low-cost capital.
The Search
Given the complexities involved in the Mumbai real estate market, there is no single, standard solution in redevelopment. There are therefore no one-size-fits-all choices among ‘re-developers’. The process involved in a developer search should be customized, flexible, transparent and in line with the redevelopment rules. It should also be equitable and time-bound to increase interest levels among prospective top developers, and advisory-driven so that the final selection garners the highest value for the society.
Any commercial offers from potential developers should be driven by competition rather than price. Awareness has to be created amongst all the relevant developers, and a single, unified message should go out to them from the society. The society should rope in expert help to analyse the prospective developers. Word-of-mouth referrals from other societies who have recently and successfully undergone redevelopment are also an important source.

Posted: 21 Jun 2011 05:38 AM PDT

Friday, June 17, 2011

Birla Sun Life to Invest Rs.250 crores in Real Estate Projects

Birla Sun Life is set to invest Rs 250 crore in four real estate projects, three in Mumbai and one in Chennai, through its realty fund. The Rs 1,100 crore real estate fund has already invested Rs 225 crore in the sector and would be making the investment within three months, according to a senior company official. Birla Sun Life has recorded around 20 per cent return on earlier investment and hope to do the same with the new investment too, according to Investment Advisory, Birla Sun Life Asset Management. In Mumbai, the residential projects are in Western suburbs.  The fund is also investing in other cities apart from Mumbai in what is seen as a strategy. The fund-raised from domestic market is predominantly invested in new residential segment in the country. The fund is also bullish on other cities like Pune, Bangalore and Ahmedabad.  According to industry sources, experts are wary about investment in real estate especially in Mumbai, where prices have gone up by as much as 40 per cent since 2010. This is only lower (in percentage term) than Ahmedabad, where prices have increased by over 60 per cent in the same period. The investment in real estate is slow in Mumbai because there are no approvals from the government as yet. Also a lot of ambiguity surrounds some laws like floor space index (FSI) and also how the government itself is selling land parcels at steep prices.


Thursday, June 16, 2011

RBI ups key interest rates by 25 bps to tame inflation

Continuing its hawkish monetary stance to curb high inflation, the Reserve Bank of India (RBI) Thursday hiked short-term lending rates by 25 basis points, the tenth time it has raised interest rates since March 2010.

The repo rate was raised by 25 basis points from 7.25 percent to 7.5 percent with immediate effect.

"The challenge of containing inflation and anchoring inflation expectations persists," said the RBI in the mid-quarter monetary policy review.

As per the structural changes announced in the monetary policy for 2011-12, the reverse repo rate stands automatically revised to 6.5 percent.

"While the Reserve Bank needs to continue with its anti-inflationary stance, the extent of policy action needs to balance the adverse movements in inflation with recent global developments and their likely impact on the domestic growth trajectory," the RBI added.

Latest data showed that annual inflation rose to 9.06 percent in May, compared to 8.66 percent in the previous month.

Other policy rates such as the statutory liquidity ratio and the cash reserve ratio -- the minimum quantum of money against deposits which the banks have to retain as cash or specified government securities -- have been left untouched.

The bank rate also remains unchanged at 6 percent.

Highlights of mid-quarter review of RBI monetary policy

-- Repo rate hiked by 50 basis points to 7.5 percent

-- Reverse repo automatically revised upwards to 6.5 percent

-- Marginal standing facility rate increased to 8.5 percent

-- No change in other statutory rates

-- Deceleration in some interest-sensitive sectors such as automobiles, no evidence of any sharp or broad-based slowdown

-- Baseline projection for GDP growth for 2011-12 maintained at around 8 percent

-- Domestic inflation remains high and much above the comfort zone of the Reserve Bank

-- Non-food manufactured products inflation is a matter of particular concern, suggests more generalised inflationary pressures

-- Impact of the recent monetary policy actions is still unfolding

-- RBI says rate hike will contain inflation by reining in demand side pressures and anchor inflation expectations

-- RBI says actions expected to mitigate the risk to growth from potentially adverse global developments

-- RBI will persist with its anti-inflationary stance of monetary policy

-- Although global commodity prices have moderate they still pose a risk to both domestic growth and inflation

SME Times News Bureau | 16 Jun, 2011

Wednesday, June 15, 2011

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Monday, June 13, 2011

How to calculate HRA

 Employees generally receive a house rent allowance (HRA) from their employers. This is a part of the salary package, in accordance with the terms and conditions of employment. HRA is given to meet the cost of a rented house taken by the employee for his stay.The Income Tax Act allows for deduction in respect of the HRA paid to employees. The exemption on HRA is covered under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules. It is to be noted that the entire HRA is not deductible. HRA is an allowance and is subject to income tax.

An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his employer. In order to claim the deduction, an employee must actually pay rent for the house which he occupies.
The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax. As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
Actual house rent allowance received from your employer
Actual house rent paid by you minus 10% of your basic salary
50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum of above is allowed as income tax exemption on house rent allowance.
Salary here means basic salary which includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.
Meaning of Salary for calculation the exemption of HRA
Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.
Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.
Basic Salary – Rs. (5000*12) – Rs. 60,000/-
Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-
The minimum of the following amount shall be exempt
Actual HRA received (2000*12) – Rs. 24000/-
Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
40% of Salary – Rs. 28800/-
Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.
Frequently Asked Questions:-
How is HRA accounted for in the case of a salaried individual and a self-employed professional?
HRA (house rent allowance) is accounted for in the case of salaried people under Section 10 (13A) of Income Tax Act, 1961, in accordance with rule 2A of Income Tax Rules. On the other hand, self-employed professionals cannot be considered for HRA exemption under this act, as they do not earn a salary. However, they can claim benefits on the house rent expenses incurred under section 80GG, which resembles section to 10(13A) but is subject to certain conditions.
What are the dependent factors in calculating HRA for the salaried individual?
When you are calculating HRA for tax exemption, you take into consideration four aspects which includes salary, HRA received, the actual rent paid and where you reside, i.e., if it is a metro or non-metro. If these aspects remain constant through the year, then tax exemption is calculated as a whole annually, if this is subject to change, as in a rent hike, pay hike or shift in residence etc., then it is calculated on a monthly basis. It is usually rare for all the values to remain constant in a financial year.
The place of residence is significant in HRA calculation as for a metro the tax exemption for HRA is 50% of the basic salary while for non-metros it is 40% of the basic salary. This holds true especially when you work at a metro and reside at a non-metro. In this case, your city of residence only will be considered for calculating your HRA.
Can I pay rent to my parents or spouse to avail HRA benefits?
You can pay rent to your parents, however, they need to account for the same under ‘Income from other sources’ and will be entitled to pay tax for the same.
On the other hand, you cannot pay rent to your spouse. In view of the relationship when you take up residence together, you are expected to do so and hence such a transaction does not bear merit under tax laws. Sham transactions can only spell trouble under scrutiny, so steer clear of these.
Do I need to submit any proof for my HRA claim?
You need to submit proof of rent paid through rent receipts, for which only two need to be submitted, one for the beginning of the year and one towards the end of the financial year. It should have a one rupee revenue stamp affixed with the signature of the person who has received the rent, along with other details such as the rented residence address, rent paid, name of the person who rents it etc.
Can I simultaneously avail tax benefits on my home loan and HRA?
The tax benefits for home loan and HRA are two separate entities and have no direct bearing on each other. As long as you are paying rent for an accommodation, you can claim tax benefits on the HRA component of your salary, while also availing tax benefits on your home loan. This could be the case if your own home is rented out or you work from another city etc. However, you need to account for any rental income you receive from the property you own under income from other sources.

Courtesy : Taxguru

Posted: 10 Jun 2011 11:26 PM PDT

Saturday, June 11, 2011

China’s real estate market falling

According to the fresh reports from our sources that Beijing’s home prices are constantly falling from last month comparatively last year’s property prices. “The average price of a newly constructed unit dropped to 23,467 yuan ($3,400) per square meter, down 7.2% from April and down 21% from May 2010” as reports said.

As per China’s sector watcher says that from last couple of years Chinese real estate market is falling like in Beijing and Shanghai.
Recent February report said that the Beijing municipality has introduced several new norms in real estate sector from now onwards there will be restrictions for migrants for purchasing property whereas for second home purchase they have to pay higher down-payments. Those policies are expected to rein in the city’s housing transactions by as much as 50% this year sources said.
China’s National Bureau reported in May that sales prices of newly constructed buildings in 70 big cities, prices are down in 9 cities and remained same in 5 cities comparatively last month. There are 56 cities where property prices are constantly increasing.

Posted: 08 Jun 2011 03:51 AM PDT


Indian investors look to capitalise on the emirate’s secure investment environment, tax-free returns and tightly regulated property market

DUBAI, 8th June 2011: Tax-free returns are enticing an increasing number of Indian investors into Dubai’s property market according to the Middle East’s leading independent real estate company, DAMAC Properties.

Attracted by Dubai’s world-class infrastructure, secure investment environment, tax-free returns and tightly regulated property market, Indian investors are increasingly looking to invest in Dubai’s prime real estate market. With potential capital appreciation and tax-free rental yields ranging from 7- 12%, according to CBRE, premium properties in Dubai offer a safe and lucrative long-term investment.

Niall McLoughlin, Senior Vice President DAMAC Properties said: “At DAMAC Properties, we have witnessed a significant increase in enquiries about our Dubai portfolio from Indian investors looking to capitalise on favourable conditions in a secure market. Indian investors are weighing up the impact of property taxes at home, and deciding that Dubai is a more attractive market for sustainable long term investment.”

Dubai’s property market appeals to Indian investors because there is zero tax on rental returns, and no capital gains tax. This is compared to India which demands tax on rental income as well as capital gains tax of about 20 per cent.

“Tax is a big consideration in any investment decision, but Dubai takes tax out of the equation. It means investors considering purchasing property in Dubai can focus on evaluating rental yields and potential capital gains, without having to think about the possible tax implications of their investment” Mc Loughlin added.

In addition to the tax relief offered by Dubai, Indian investors are increasingly seeking take advantage of a 60 per cent price disparity between the Emirate and the sub-continent. At an average price per square foot of $264 in Dubai, according to Colliers International, property is now 60% cheaper than in central Mumbai, where the price per square foot is $664 according to Jones Lang LaSalle.

Dubai’s property market is also gaining favour with foreign investors due to the implementation of a raft of new regulations, such as the new Strata law, which favours home owners. As these new tougher and more stringent regulations take hold, Indian investors are looking to take advantage of the plethora of investment opportunities that exist within the emirate’s real estate market.
The recent Dubai Real Estate Market Overview by leading real estate services firm, Jones Lang LaSalle supports DAMAC Properties’ findings and suggests that the total value of residential property transactions in Dubai increased by 30% in 2010 over 2009, and the number of actual transactions increased by 20% during the same period. The report also suggested that as prices stabilise in some sectors and lending conditions continue to ease transaction volumes could increase even further during 2011.

“We believe that investors will always be attracted to all of the positive attributes that Dubai has to offer – world-class infrastructure; strategic location; established tourist destinations, proven business centres; a highly skilled expat workforce; and most importantly strong and stable government leadership,” Mc Loughlin concluded.

DAMAC Properties continues to deliver luxury projects across the MENA region, with 28 buildings, comprising 6045 units, delivered to date. Before the end of the year, DAMAC Properties will complete a further 8 buildings comprising 1,329 units. DAMAC Properties will be an enduring fixture in the Dubai landscape, and Dubai itself will continue to be a major draw for Indian investors.

Posted: 10 Jun 2011 12:09 AM PDT

Wednesday, June 8, 2011

Second Homes as an ideal Investment Option for home buyers

Some things are too good to be true, they say, If possible why not? Why is it too much to ask for to have the cake and eat it too? I am told that you can either be married or be happy! Likewise you can either have a second home or an investment! The later is as true as the former, depends on ones point of view I guess.As business can be mixed with pleasure, buying a second home can make investment sense if certain basic tenets of investing are followed and tailored to suit second homes. The basics of investment tell us that an investment should have the potential to grow in value. This potential comes out of the future prospects of the investment and its ability to change hands by attracting buyers at future prices or future valuations. It must hold the promise of growing in value over a period of time and be liquid enough to be able to convert to cash when one desires to do so. To make this happen a second home property must fit the following criteria;

•The area where a second home is located should show promise of development in the near future
•There should be good development in the second home scheme itself
•The property should be very well maintained in order for it to be able to attract attention of prospective future buyers
•The project should have good amenities and conveniences which can attract the interest of the buyer and make the investment worthwhile. Special emphasis is laid on recreational amenities, health related amenities and lifestyle.
•An attraction like a popular restaurant, spa, picnic spot, resort etc being part of the project is an ideal scenario. These attractions ensure foot falls in the project from outsiders, make businesses in the project viable and ensures that a resale market is created as there will be demand for properties for sure.
•The presence of such attractions also ensures that the second home project is well maintained, kept clean and attractive.
•This ensures that a resale market is created which ensures liquidity which makes the investment very lucrative and dynamic in ones portfolio.
The value addition in typical second home projects is very high, hence an investment made in vary early stages of a second home project can have a phenomenal appreciation by the time the project comes to the end and later on as the attractions start kicking in the appreciation in investment improves many more fold.
Companies like Disha Direct believe in making second homes a lucrative investment option by;
•Choosing destinations that hold promise in the near future.
•Projects that are very well developed.
•Products are reasonably priced at all times to ensure that the investor benefits in the medium to long run.
•Development of attractions like Resort, Club & Spa are popularized, professionally run and attract a lot of foot fall in the project
•This ensures that the project is not dead, always alive and bustling
•Project is well maintained in the interest of the attractions and the surplus from the attractions in addition to the maintenance charges are well spent to further a common goal.
Case in point being Talegaon, here the value of land and constructed property showed a 400% increase in 4 years time (2004-2008). The development at Talegaon ensured that this was possible and Disha Directs foresight which promoted Talegaon as a destination paid off for the investors. Likewise opportunities at Kasara, Wada, Karjat and other such destinations have returned more than 300% returns over the years.
Mr. Sameer Dange an investor at Talegaon regrets that he should have increased his value for investment as the phenomenal returns that he has enjoyed was unbelievable. Likewise Mrs.Shinde an investor in Wada has seen her investment grow from Rs.100/- per sq.ft. of land to Rs.350/- per sq.ft. over 3 years. Both these investors have an opportunity to for resale thus giving them the chance to cash their investments.
So if one is looking for a second home as an investment option , look for names of repute who are developing the project, ensure that the project will be professionally maintained once its completed, an attraction which will draw people to it regularly is a must as it creates liquidity for future sale and lastly the area in which the project is located should hold the promise of development in the near future or should be ideally located for the specific attraction which otherwise cannot be located elsewhere. Second Homes can certainly be looked at as an option to diversify ones investment portfolio.

Posted: 07 Jun 2011 04:54 AM PDT

Monday, June 6, 2011

Downturn in housing finance demand due to high interest rate: NHB

Housing finace demand has been severely damaged due to the mounting interest according to the National Housing Bank (NHB). “Prior to slowdown in global market housing finance has 25percent growth per year for consecutive four years” NHB Chairman and Managing Director R V Verma told in media conclave of the 26th Skoch Summit here.
As per the reports in the current fiscal year 2011 demand for housing loan increased by the 16prcent for Rs. 62K Cr. which directly indicates the downturn. Even though when recovery progress began in the previous year growth rate was 19percent.
According to the sector watcher “if interest will continuously increase in the near future then it will surely damage the housing finance demand.”
RBI raised key interest rates in May this year by 50 basis points to battle high inflation, its ninth rate hike since March, 2010.
Whereas NHB has raised its prime lending rates to 10.5 per cent from 10.25 per cent three months back and has no plans to further hike rates, official said.

Posted: 04 Jun 2011 05:28 AM PDT

Maya Govt announced new land acquisition policy

On this Thursday Mayawati government has introduced a new land acquisition policy to facilitate farmer those land has been acquired for development. According to this policy those farmers have provision to get return back 16% of their land which has been full developed. After the several protest demonstrated over the land acquisition issue by farmers and villagers in the entire state, now BSP government has come up with the new land acquisition policy under this policy state will no longer to acquire directly land for the development of the private sectors.
According to the sources the new announced policy will come into effect on higher priority basis. When asked more about this policy officials said that “farmers won’t benefited under this policy those lands are already under process for land acquisition” several farmers protesting in Bhatta Prasaul in Greater Noida to Allahabad, where power projects are coming up, would continue to be deprived of benefits announced in the new policy. They added that this policy has been divided into three sects such as for private sector i.e. industries, power projects, expressways etc, land acquisition is to be done directly by the private entity and the government would have no role in acquisition except facilitating the process.
Under this policy any private company could directly make contact with the farmers whose 705 land acquired, whereas if 705 landowners are disagree with the compensation package then their project will be reordered. Though farmers have an option to get back their full developed lands 16%. In addition they will get annuity of 23,000 per acre acquired for the next 33 years besides other benefits under the Rehabilitation and Resettlement Policy of 2010.
If farmer is not willing to take the entire 16 percent of the developed land then he has option take part compensation in cash and the remaining as developed land. The developed land farmers get would be free of cost and no stamp duty would be charged. In case the farmer uses the compensation amount to buy agricultural land anywhere in the state within one year of acquisition he would enjoy stamp duty waiver.

Posted: 03 Jun 2011 05:42 AM PDT

Authorities to spend Rs 20,000 crore on Noida projects


The Noida, Greater Noida and Yamuna Expressway authorities on Monday have planned for large scale infrastructure development across Gautam Budh Nagar district. In a joint board meeting, the major focus of the Authorities remained on providing connectivity within the district as well as with Delhi. “In the next four years, Rs 20,000 crore will be spent on the projects,” said Mohinder Singh, chairman of the Authorities.

To begin with, the authorities have approved a major detailed extension of the Metro route connecting almost all of Noida and Greater Noida at a cost of Rs 10,000 crores, covering a total of 86 km. The route is estimated to be ready in the next three years.

Besides extending the existing city centre Metro route connecting Kalindi Kunj and Botanical Garden, a new line from the City Centre station in sector 32 to sector 62, touching NH-24, was also approved. This new 6-km route will be via sector 71 crossing and will provide connectivity to sectors 32, 34, 35, Hoshiarpur, sectors 51, 52, 71, Greater Noida Extension Marg, Sarfabad, sectors 60, 61, 62, 63 and NH 24.

A new loop from sector 71 via sector 121 will then join the Greater Noida route between the City Centre and Bodaki railway station in Greater Noida. This route will be from City Centre along the Greater Noida Expressway, touching Knowledge Park 4 via Pari Chowk and will finally end at Bodaki. The new loop has been added mainly to connect Noida extension that falls near sector 121 with Noida as well as with Greater Noida.

“With the Metro extension, most sectors will be within walking distance from the stations. Connectivity to Greater Noida will also improve tremendously,” Singh said.

To smoothen chaotic traffic, the Noida Authority has approved construction of a 5.8 km elevated road parallel to the Shahdara drain. Starting from sectors 14 and 14 A onto sector 95 and Kalindi Kunj, the stretch costing Rs 525 crores will be of four lanes. This route will provide an alternate route between Kalindi Kunj and Noida, thus easing traffic congestion on the expressway.

In the meeting, the Authorities also approved the draft master plan for Greater Noida. As per the 2031 Master Plan, a total of 5,04,000 hectares will be developed. Of this, 27.6 per cent area will be reserved for residential development, while 24.2 per cent will be developed as green area. The approved master plan includes six expressways, overbridges, flyovers, warehouses and godowns, besides several residential, educational, industrial and commercial hubs.

According to the Authority chairperson, development of these 5,04,000 hectares is crucial as it falls between two major hubs of commercial activity, the eastern freight corridor between Ludhiana and Kolkata and the western freight corridor between Dadri and Mumbai.

Source:- Magicbricks

Wednesday, June 1, 2011

New Act to regulate rental market

NEW DELHI: The housing ministry has introduced the Modal Residential Tenancy Act, 2011 with the intention of that to renew the ancient rent control legislation that restricts to rentals at some extent, and that affects to landlord in the form of meager amount for properties located in the crucial part of the metro cities.
As state government yet haven’t approved the draft legislation which proposed that once the law in place, in case of tenancies mentioned after notification, the rental will be based on the treaty of landlord and tenant.
According to this act not only the existing ones but also for those where the rent has been already fixed number of years ago, there will be no changes in the rental deed till the 24 months get completed. Only after the completion of the 22nd month proprietor can make changes in the agreement. On the other hand if there is no agreement the landlord has an option to terminate the tenancy. As state government has implemented the obligation that only that state can get facility of this act which is funding under the flagship Rajiv Awas Yojana that has a budgetary allocation of over Rs 800 crore in 2011-12 and comes with other benefits such as interest relief.
As Central government believes that the contemporary legal system has not facilitate to landlords in any form as the current rentals are very low, so they don’t have interest to reinvest in their properties. According to the reports there is lack of housing in the country approx 25 million, so government believes that if rentals are increased then landowners could take interest in realty investment. And it may help to come out of this crisis.
The government is taking inspiration from the Jawaharlal Nehru Urban Renewal Mission that got several states to repeal the Urban Land Ceiling and Regulation Act (ULCRA). Under the scheme, central assistance was contingent upon states repealing the law.
There are several other clauses to keep safe the interest of tenants. As landlord has to be given notice to tenant before increasing rentals. On the other side if revised rent is not affordable to tenant then he has to provid the termination notice.

Posted: 31 May 2011 06:08 AM PDT

Noida-Greater Noida Expressway- Corridor to growth and connectivity


Noida (New Okhla Industrial Development Authority) has evolved as a planned, integrated, industrial hub and is well connected with other parts of Delhi/NCR via roads, highways, expressways and the metro line. The infrastructural developments and high connectivity provided by the 8-lane DND flyover and the Noida- Greater Noida Expressway are major reasons of growth for the Noida real estate.

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The upcoming residential development along the Noida Expressway, covering sectors 93A, 93 B, 119, 128, 129, 134, 137 etc is emerging as a lucrative real estate corridor in Noida. Major developers with residential developments on the Expressway are Jaypee Greens, 3Cs Group, Logix Group, Omaxe Pvt Ltd, Eldeco, Parsvnath Developers, ATS Group, Supertech Ltd, Paramount Group etc.

The residential market in this stretch can be divided into two parts. The first wherein the existing residential sectors viz. sectors 44, 93, 93A, 93B and 119 offer high-end premium segment apartments in a range of INR 4,800–8,500 per sq ft. The second, where construction activity is in full swing, offering affordable and medium projects in the range of INR 3,000–5,000 per sq ft, depending on the area, developer profile, specifications and amenities/facilities offered.

The expansion of resident population along the expressway further generates demand for related commercial office spaces and retail centres, which is presently lacking and is restricted in supply with the authority. According to market survey, Corporates in the domain of IT/ITeS have started scouting for office space in this region and to cater to this opportunity developers such as Supertech, BPTP and 3Cs are coming up with commercial projects.

As per market sources, developments like Export Promotion Zone, Taj International Hub Airport, the Formula 1 Grand Prix race etc will further open doors of all-round progress in this neighbourhood. Also, with the coming up of the Yamuna Expressway easy accessibility towards Aligarh, Mathura and Agra will be provided and it will accelerate overall development of the region.

Source:- Magicbricks