Tuesday, October 30, 2012

Noida to get tallest tower of 300m

Looks like Noida will back behind Dubai in terms of getting tallest tower. Brys Group, delhi-based real estate firm has announced to develop a 300 meter residential tower in Sector 15 of Noida.

Sum of 1,000 crore is invested for this high-end luxurious projects which includes 285 premium flats and villas hoping to be complete in next 4 years. Obviously the buyers would be the net worth individuals who have the capacity and want to live in these apartments offering international facilities.

Rahul Gaur, chairman of Brys Group said, ‘’land is a fast shrinking commodity and there are issues related to acquisition. Vertical development is the only way to create iconic properties.’’ Further he said development and construction of tall structure is not an easy task. Considering the high court of these apartments, resale becomes extremely difficult that eventually forces short term investors to stay away from such projects. However, we are relying on end-users and not short term investors.

After Supertech’s launch this will be the second tallest building in NCR region offering 3 BHK, 4BHK, 5 and 6 BHK flats priced between 5 crore to 9 crores. the construction will begin in January next year and expected to be completed by 2016.

Posted: 29 Oct 2012 02:12 AM PDT
By Accommodation Times Bureau


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Monday, October 29, 2012

Small office spaces in Gurgaon watches huge supply

Gurgaon one of the major commercial region of Delhi-NCR is surely witnessing a high demand of small office spaces less than 10,000 sq. ft category. About 1000-5000 sq. ft of property is the need of hour. This demand has eventually resulted over-supply of some units of one of the developers in the region.

The reason why there is spike high call is because many banking sectors, insurance companies, heavy engineering companies, consultancies, telecommunication firms and many other small industry which usually don’t get place in CBD gets settled in minimum area. The rental values of these spaces are somewhere from lowest of Rs. 25 per sq ft per month to Rs.140 per sq ft depending upon the locations, developers and facility provided.

The NCR region has seen a push in space selling from past 2-3 years as these regions are developing and many high end companies and low end companies are establishing themselves. Most of the renowned developers like Spaze Group; DLF offers office space in different sizes as required.

Space for small office is also readily available in unorganized sectors. By unorganized it means that there are several independent buildings offering 500-1000 sq. ft space, the rental values varies, customers generally look for these kinds of areas because they approach the owners by their own as the agents do not get involved due to low commission.

Posted: 27 Oct 2012 01:21 AM PDT
By Accommodation Times Bureau


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Friday, October 26, 2012

BPTP launches Visionnaire Villas in Gurgaon

New Delhi: BPTP, one of India's leading real estate companies, has announced the launch of Visionnaire Homes, the first co-branded luxury villas. These bespoke villas are a part of a gated development spread over 48 acres in an integrated township located in the heart of Gurgaon at Sector 70A. Speaking about the launch, Mr. Sandeep Bedi, Director - Systems & Strategy, BPTP, said, "Visionnaire Villas represent the finest luxury living and are a shining example of our dedication to meticulous planning and attention to detail which have made us industry leaders in quality and innovation. Our exclusive collaboration with Italian design gurus IPE Cavalli to create these architectural masterpieces is yet another step towards our goal of becoming the most preferred real estate developer in the country." Nestled in the midst of the Aravallis, Visionnaire Villas are a perfect blend of luxury and exclusivity. These villas offer low density cluster living with excellent connectivity via the Golf Course Extension road, Sohna road and NH- 8. "At BPTP, we are driven by the twin objectives of operational excellence and unparalleled customer experience to create best-in-class and sustainable developments. With the launch of Visionnaire Villas, we are taking the world into the future of urban living and setting a new benchmark in luxury development in the country," Mr Bedi added.

Source:- Economics Times
Oct 23, 2012, 03.21PM IST

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Housing Societies in Delhi welcomed DDA move of high FAR

Massive numbers of co-operative housing societies have welcomed DDA’s notification of high Floor Area Ratio (FAR) for the existing group housing societies. The increased FAR who is from 150-200 applies only to the new construction these societies will consider. A DDA official said,’’ the position for higher FAR in co-operative societies is part of the new master plan. We are getting a lot queries from group housing societies that wanted to make use of the excess FAR. However it was felt that the existing societies cannot be allowed to extend the structure as this would determine the strength of the building and put people live at risk. The only way they can make use of additional FAR is by constructing another block or tower on the premises.

There is much such kind of co-operative houses in Delhi’s prominent part which are in dilapidated state. The residents of these societies are working and checking with DDA. With more FAR the three storey buildings will be new storey’s with all amenities including car parking. Also, at times of construction the residents will be relocated at some safe place. The new construction will be under architectural and engineered guidance.

One of the DDA official said, the additional FAR is permissible under Master Plan 2021 and the decision was taken by senior officials. To avail higher FAR society member s will have to take permission for demolition of old structure and building the newer ones, complying with regulations of the government or DDA as applicable. The process is lengthy and requires consent of flat owners.

Posted: 24 Oct 2012 11:27 PM PDT
By Accommodation Times Bureau

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Saturday, October 13, 2012

Diwali gift: Excess liquidity may force banks to cut rates

MUMBAI: liquidity in the banking system has improved, bankers say, and this may help interest rates to soften even if the central bank continues with its hawkish stance on policy rates.

"There is enough liquidity and capability of raising funds through other sources for banks," federal bank treasury head Ashutosh Khajuria said. Banks are sitting on excess funds of about Rs 4 lakh crore by way of holding excess government bonds, he said. "Many banks are trying to move out of government bonds and get into alternative sources. Going by this trend, banks may continue to look at retail products even after the festive season is over."

On Friday, banks parked Rs 20,230 crore with the Reserve Bank of India's reverse repo window, the highest since May 2011. A day earlier, borrowing through the repo window was Rs 6,850 crore.

Bank borrowing from the RBI fell to Rs 2,120 crore on September 6, the lowest in this calendar year, from Rs 71,470 crore on August 14.

Banks can borrow funds from the RBI's repo window at the repo rate of 8% by pledging government securities, and they can park funds with the RBI at the reverse repo rate, which is 1% lower than the repo rate. Liquidity tends to be surplus when the revere repo rate becomes the operational rate.

Lenders on Friday voted in favour of another cut in the cash reserve ratio (CRR), or the proportion of deposits they must keep with the RBI, in the half-yearly monetary policy review due on October 30. Last month, the central bank had reduced CRR by 25 basis points to 4.50%, releasing Rs 17,000 crore into the banking system.

Experts, however, are divided on the need for another cut in CRR. "CRR is a tool for managing liquidity and not an interest signalling tool. If the RBI cuts the CRR further, it will be equivalent to a repo rate cut of almost 100 basis points, as the operational policy will shift towards the revere repo rate, that is 7%," said the head of treasury at a private bank. "This may thwart the benefits from the RBI's anti-inflationary monetary actions," he said.

Some economists, however, make a case for a CRR cut, citing lower growth in money supply and slowdown in investment-driven growth due to higher lending rate as reasons.

"We continue to expect the RBI to cut CRR by 50 basis points to pull down lending rates to support growth," said Indranil Sen Gupta, chief India economist at DSP Merrill Lynch.

"After all, growth in money supply (M3 or cash and currencies) at 14% levels is running way below 16%-17% levels warranted by 7.5% growth. Not surprisingly, India is the only BRIC nation where lending rates are at their 2008 peaks. Unless lending rates come off, FY13 growth will find it very difficult to do our 5.6% growth forecast, let alone 6.5%."

Rates on money market instruments have also remained soft due to lack of credit pick-up and surplus funds with banks. Rates on three-month commercial paper fell to 8.65% on October 4, the lowest this year, from 9.75%-10% in June.

Ruchira Roy, ET Bureau
Oct 9, 2012, 10.03AM IST

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Know these loan facts before going for an under-construction property

With the festive season just around the corner, prospective house buyers are coming back to the market. Builders too are ready to indulge in some gimmicks to catch these prospective buyers' attention.

With property prices remaining sky-high and the interest rates yet to ease significantly, many prospective buyers would be tempted to check out under-construction properties for their cheaper price tags.

Typically, these under-construction properties quote at least 20% lower than the prevailing rates in a locality. Of course, you can check the properties under construction, but do it with open eyes, because apart from the obvious risk of delay (it could even be indefinite in some cases) in construction, you may also get some other financial hiccups if there are long delays.

"The last few years have not been kind to real estate developers. Even some reputed builders are forced to divert money from pre-launch projects to the projects nearing completion," says Shweta Jain, director (residential services) at Cushman & Wakefield.

The delayed possession of the house could exert severe financial pressure on the buyer if he has to pay the EMI as well as the rent at the same time. Moreover, if the project gets stuck or even defaults, the homebuyer is still liable to pay the interest and the principal component of the disbursed amount to the bank.

If you are taking a housing loan to buy an underconstruction property, here are some points you should always remember.


In an under construction loan, a bank disburses the loan amount in tranches to the builder. However, you may be expected to pay the EMI on the sanctioned loan amount and not the disbursed loan amount.

For instance, if you have taken a loan of Rs 70 lakh and the bank has disbursed only Rs 20 lakh to the builder, you may have to pay an EMI for the entire Rs 70 lakh, which is Rs 67,552 at 10%. "There is a construction risk involved both for the bank as well as the homebuyer. Earlier, banks were promoting pre-EMIs and part-repayment of loans. Now with the increase in risk factors and elongated period of loans, such as 25 years, banks ask for repayment on the whole loan amount," says Harsh Roongta, CEO, Apnapaisa.com.

It makes financial sense to pay the EMI on the sanctioned loan amount, as the principal component of the home loan will be much higher, which will reduce the tenure of the loan. "In the above example, the interest component of the EMI is calculated on the disbursed amount. If the borrower starts paying the full EMI from the first month, the loan will be repaid in 197 month as against 240 months," adds Roongta.

However, borrowers often invest in an underconstruction project with the intention to stagger the loan repayment. This huge EMI outgo from the first month can also be a strain on the pocket, especially if the borrower is doling out a monthly rent over and above the home loan EMI. The borrower would have been better off buying a ready-to-move-in house.


If the project delays or defaults, the liability is on the borrower to pay off the dues. The loan will be settled only after the borrower has paid off the interest and the principal component of the loan amount disbursed to the builder.

Hence you should consider the "track record and reputation" of the developer while buying an underconstruction property. "The risk comes down if the developer is a prominent and trusted one with many timely completed projects and is financially sound to be able to complete and deliver the project without having to rely too much on cash flows generated purely from sales of units in the project," says Shweta Jain of Cushman & Wakefield. This has been a growing concern especially since 2008.

Even some reputed builders are forced to divert money from pre-launch projects to their projects nearing completion. Hence, if you are borrowing up to 70% of the property value, it is better you opt for a project which is close to completion or a ready-to-movein house.

Also, do check if it is already mortgaged with a lender. If the property is already mortgaged with a lender, do insist on a no-objection certificate from the lender before entering into a purchase agreement with the builder. This NOC can act as a good recourse for the home buyer if the developer defaults on his loan.


A home loan borrower can claim tax exemption on interest payments up to Rs 1.5 lakh and another Rs 1 lakh under Section 80 C towards the principal repayment. However, you cannot seek these tax benefits in the pre-construction phase, even if you have started repaying the housing loan. "The Section 24 of the Income Tax Act states that if a property is still to be constructed, there will not be any deduction on the interest payment all of those years. The interest for the pre-construction period can be availed for deduction in five equal installments from the year the construction is complete," says Vaibhav Sankla, director, H&R Block India.

You can avail the tax benefit at the time of filing your income tax returns. The Section 80C allows tax benefit for the amount paid towards the stamp duty and the registration process. "However, the tax rebate on principal repayment may not be allowed when the property is under construction," he adds. If there is a delay in the possession of the property, the tax benefits also get delayed to that extent.

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Monday, October 8, 2012

Reverse Mortgage Loan: A Benefactor

Getting into old age without proper financial support can be a very bad experience. The rising cost of living, healthcare, other amenities compound the problem significantly. No regular incomes, a dwindling capacity to work and earn livelihood at this age can make life miserable. A constant inflow of income, without any work would be an ideal solution, which can put an end to  all such sufferings. But how is it possible?
That is where Reverse Mortgage Loan comes into picture. Most of the people in the senior age groups, either by inheritance or by virtue of building assets have properties in names, but they were not able to convert it into instant and regular income stream due to its illiquid nature. The Union Budget 2007-2008 had a great proposal which introduced the ‘Reverse Mortgage’ scheme.

What is Reverse Mortgage Loan?
A reverse mortgage is a loan that enables senior home owners aged above 60 years to convert part of their home equity in to income without having to sell their home, give up their title to it or make monthly mortgage payments. The National Housing Bank, a subsidiary of the RBI, and a facilitator for home loan finance in India has set some guidelines.
Reverse mortgage is a product is fairly new to India. Dewan Housing Finance was the first institution in the country to come up with its reverse mortgage product-Saks ham. Since then, most leading lending institutions have come up with their own reverse mortgage products. Some of these are State Bank of India, Punjab National Bank, Bank of Baroda, Central Bank of India, Union Bank of India, LIC Housing Finance, Indian Bank, Andhra Bank, Corporation Bank and Canara Bank.

Things to be kept in mind before taking a Reverse Mortgage Loan:

  • The borrower should be the owner of the property with a clear title of the self occupied, self acquired residential property located in India. The residual life of the property should be at least 20 years. He should use the residential property as a permanent primary residence. Reverse mortgage is not available for commercial property.
  • The loan amount is based on the market value of the property, age of the borrowers and the prevailing interest rate. The quantum of loan may between 40 per cent of the assessed market value of the property for borrowers in the age group of 60- 65 years and 60% of the assessed market value of the property if the age of the borrower is above 75 years.
  • The lender apart from checking the property papers will ensure that the borrower pay all the taxes and charges towards the property up to date and also ensure that the property is maintained in the sale able condition and also check that the property is insured against fire and other perils.
  • Both reverse and home equity loan differ in that as with respect to home equity loan the borrower needs to pay through monthly payments, whereas in reverse mortgage he need not pay monthly payments as long as he lives in the house. There are no income qualifications to avail reverse mortgage unlike regular mortgages as borrowers are not needed to pay monthly payments.
  • When availing reverse mortgage loan the borrowers should remain independent as reverse mortgage allows them to remain in the house and also retains their ownership. The money they get from reverse mortgage can be utilized for anything they choose say like for meeting day to day expenses or for paying for home improvements or for health care expenses or for repaying any existing debts.
  • In a reverse mortgage the borrower can choose to receive the money in one lump sum or by way of monthly/quarterly/bi annual payments.
  • As per the present requirement the property in question would be revalued once in five years. The fall in property price would affect the borrower. Every five years, bank may even readjust the loan installments, if it is needed, depending on the market conditions and the loan status.
  • If the borrower does not stay for a period of 12 months in his house, or if the borrower fails to keep proper maintenance of the property or if the taxes for the property are not paid then the money may become due and must be paid in full.
  • After the time of loan is over, the bank may either, acquire the property and give the remainder to the customer’ heirs or they can pay back and keep the property.
  • The reversed mortgaged property can be willed and the legal representative should be willing to take the responsibility of paying the entire loan amount with interest on death of the borrower.
  • But if the legal heir or representative does not wish to do so the lender may sell the property mortgaged and recover the loan amount and give the surplus if any to the legal heir.
  • The scheme is ideal for some people looking for additional money to support their varied needs at their old age.
  • However, there are still some grey areas under Indian context with respect to reverse mortgage and which act as a deterrent for the banks to market the variant very aggressively.

Despite being such a lucrative and beneficial scheme, not many senior citizens have opted for RML in India. The reasons for the model not taking off include emotional attachment with one’s house, real estate price correction, absence of clear guidance against legal complications and inadequate marketing by the PLIs.
With the increasing need of post retirement liquid compensation in India, RML can be viewed as a potential alternative as the scheme is beneficial to both the borrowers and lender simultaneously. It is being projected that, RML is expected to gain popularity with the changing mindset of Indian citizens and increasing need of cash flows in old age. Needless to say that if
more awareness is actually created about the scheme and more robust marketing of the product undertaken by PLIs , this scheme can ameliorate the rundown condition of elderly people in India.

Posted: 04 Oct 2012 12:31 AM PDT
By Accommodation Time Bureau


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Saturday, October 6, 2012

Housing finance for self-employed bunch

Housing Finance benefit for self-employed individual is a scheme given to people who have low income and could not afford to buy a house. This benefit gives chance to live in a decent place without restraining the budget.

As long as you have the necessary requirements you can apply for housing benefit.
Applying for Housing Benefit
If you want to live in a decent accommodation yet you do not have enough fund to obtain fully furnished house then you should apply for housing benefit. This is not only for employed individual but also for self-employed. All you have to do is to inquire from the concerned agency if you are qualified for such benefit. When you apply for housing benefit you should possess any of the following such as income support,having full time or part time job as well as self-employed.
On the other hand, there are several factors that affect the awarding of the housing benefit to a self-employed individual.
*. The amount of rent that can afford by the applicant.
*. Council tax liability
*. Number of family member including the non-dependents
If you know that you are qualified for housing benefit you should not delay claiming it. The first thing to do is to proceed to the agency and complete the claim form. As much as possible you should show proof of self-employment, proof of income and other requirements asked by the office. If the claimant is self-employed there are other requirements to be submitted before the claim is processed.
Moreover, when applying for housing benefits for self-employed you should ensure to meet the savings required. Likewise, the approval of the claim is based on the savings as well as personal circumstances of the claimant. It is also required to submit the audited business accounts and the self-employed earnings. On the other hand, if the applicant does not have the audited accounts

Self employed individuals have created the need for a special category of mortgage loans for self-employed borrowers. While loans for the self-employed have been around for many years, recent streamlining of some programs make the process simpler and safer for self-employed borrowers. Despite the recent tightening of mortgage underwriting overall, the self-employed can still get mortgage loans.
The primary problem that self-employed borrowers face is that while their accountants are experts at reducing tax liabilities by minimizing current net income, underwriters rely on that same net income as a gauge of a self-employed borrower’s earnings. That is great for minimizing your income tax liability but hurts your ability to qualify for a mortgage.
The second major problem for the self-employed is that nearly all mortgage lenders require that borrowers be self-employed for at least two full years. For the lender, this means showing the last two years of tax returns showing two full years of self-employment income. Since most people do not start their business exactly on January 1, what this really means is that you need to be self-employed for two January to December years in order to meet the two year test.
Self-employed individuals are not necessarily more or less of a financial risk than employed borrowers. However, the manner in which borrowers are reviewed by underwriters for loan approvals can often make a self-employed borrower’s financial position look worse than it actually is. In the current mortgage environment, self-employed mortgage borrowers will be required to document every aspect of their business and can expect to have every part of their tax returns and business bank statements reviewed to make sure they are really making the income claimed on their tax return.

Posted: 04 Oct 2012 03:44 AM PDT
By Accommodation Times Bureau

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