While planning for your retirement years, make sure you invest in some property
Arjun is a 40-yearold engineer working with a private firm. He couldn't save much over the past few years. Arjun is worried about his post-retirement years. Retirement planning is about preparing for a financiallycomfortable and independent life after 60. Will he be able to arrange for a regular stream of income to meet financial needs in the sunset years? Arjun is wondering if he should invest in property as a part of his retirement plan?
RETIREMENT PLANNING
In simple terms, it is setting aside money to be spent after retirement. A good retirement plan ensures that your monthly inflows will continue and you enjoy a comfortable lifestyle, even when you are no longer working.
NEED FOR PLANNING
Not long ago, the concept of retirement planning was unheard of, as the son took care of his aging parents. But with the culture of joint families disappearing, it is not wise for people nearing retirement to ignore their future economic needs. People should save as much as possible for your retirement years. However, factor in inflation when planning for retirement.
THE INVESTMENT OPTIONS
Investing in market-linked plans could provide you higher returns. Start saving early for financiallycomfortable retirement years. Systematically invest a fixed amount every month. You can benefit from the power of compounding. The most common options are pension products from insurance companies, mutual funds, post office investments and PPF.
REAL ESTATE
Investment in a house not only appreciates with time, but also allows you to enjoy income tax benefits on repayment of the home loan. Retirement planning spans over a long term. With inflation looming large, it is essential that the investments yield decent returns that beat inflation.
Courtesy:- ET Realty dt:- 22-Jan-2010
Friday, January 22, 2010
Wednesday, January 20, 2010
SUPERTECH ANNOUNCES LAUNCH OF SPORTS CITY IN MEERUT
Supertech Limited has announced the launch of a residential development project `Sports City' in Meerut. It's located at the main National Highway (Roorkee Road) near Pallavpuram and combines sports facilities with comfort and luxe living.
Spread over 51.06 acres of land, this residential project is strategically located in terms of convenience and comfort of the inhabitants. Worth around Rs 600 crore, it's scheduled to be completed within a period of 30 months from the date of commencement of construction work.
Commenting on the announcement Mohit Arora, director, Supertech Limited said, "Sports City will be an important landmark in Meerut and it will set a different experience of living for its residents. Our latest offering is a unique proposition providing contemporary luxury living and world class infrastructure."
The integrated township will consist of apartments of various sizes, villas, commercial complex, post office, health centre, community centre, police post, an international cricket stadium, volleyball, basketball, badminton, lawn tennis courts and also other facilities like baseball, carrom, chess, table tennis etc.
Courtesy:- HT Estates dt:- 16-jan-2010
Spread over 51.06 acres of land, this residential project is strategically located in terms of convenience and comfort of the inhabitants. Worth around Rs 600 crore, it's scheduled to be completed within a period of 30 months from the date of commencement of construction work.
Commenting on the announcement Mohit Arora, director, Supertech Limited said, "Sports City will be an important landmark in Meerut and it will set a different experience of living for its residents. Our latest offering is a unique proposition providing contemporary luxury living and world class infrastructure."
The integrated township will consist of apartments of various sizes, villas, commercial complex, post office, health centre, community centre, police post, an international cricket stadium, volleyball, basketball, badminton, lawn tennis courts and also other facilities like baseball, carrom, chess, table tennis etc.
Courtesy:- HT Estates dt:- 16-jan-2010
REAL ESTATE TRENDS 2010
Established brand names that show potential for fast completion will rule the roost this year
The effects of the slowdown were still noticeable across the country in the first quarter of 2009. However, towards the middle of the year, residential rates in some of the larger cities began showing an upward curve. The cities that were most affected were Mumbai and Delhi. In Mumbai, many developers began raising rates by as much as 12-15 per cent under the assumption that the renewed demand was assuredly sustainable under all circumstances. This assumption started backfiring towards the end of the third quarter, which is when demand began slowing down again in the financial capital. Delhi showed a more rational graph, thanks largely to a better volumes profile, with price escalations not going beyond 5-10 per cent even in high-demand regions. Bangalore continued to display a sombre profile, since demand from the IT / ITES employee segment has not yet ramped up sufficiently. Chennai's residential market continued to showcase its usual conservatism.
Looking at 2010, I can safely say that residential demand is the highest and most promising by far. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalization in newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment. This segment does not depend overly on international funding. There are two cost-to-developer components in question for such projects. One of these is cost of land, but such projects are located in areas where land costs are low to begin with. The second is cost of construction, which is adequately covered by the down-payments taken on such units. Moreover, such housing formats invariably employ de-frilled mass-construction parameters, which also imply lowered construction costs. I see an increase in private equity funding for affordable housing projects in 2010, since the demand for such projects is inflexible and assured. The emphasis will be on projects by established brand names that show sufficient potential for fast completion and absorption.
Office space
For the better part of 2009, the commercial segment uptake remained at about the same level as it was last year, when the slowdown was beginning to show its claws in earnest. It is an immutable fact that Indian office space depends to a significant extent on multinationals seeking to establish or expand their bases here. The health of Indian commercial real estate is closely connected to the global economy, meaning that Grade A office spaces have largely been about MNC occupiers and the IT/ITES industry. When the financial crunch deepened in the West, many intending international occupiers put their Indian entry/expansion plans on hold. We are beginning to see the first signs of revival in commercial real estate now, but the process is pretty gradual. For investors, this is the best time to invest in wellresearched commercial real estate opportunities. There is, in fact, an increase in investors looking for such opportunities, since the prices are now near the bottom. Long term investment, which is the kind that truly works, will ensure that investors can reap the benefits when the office market shapes up for real in 2-3 years.
Retail space
Indian retail had gone through a decisive learning phase in 2009. Like the commercial segment, Indian retail growth depends significantly on the aspirations and spending power of cash-rich IT professionals. When the downturn hit the IT sector, there was a noticeable setback in Indian retail real estate. There had been corrections in rentals and consolidation both at the retailer and market levels. Many unsustainable market models were edged off the map. While 2009 was the year that separated the boys from the men, 2010 will be the year of the survivors to make a serious bid at the recovery process. Many players will consolidate their operations and rationalise their business models to dovetail with the newly emerged consumer dynamics. Value retail will be the winning ticket, and we will see the stronger value retail players make calculated plays in key Tier II cities. High end retail will show a stronger hand in 2010, as well. There will be also a wider acceptance of big brands as returning economic stability infuses buyer confidence into the market. The revenue sharing / minimum guarantee model will gain wider acceptance and become the norm rather than the exception, bringing this model's prevalence in India closer to international trends.
The author is chairman and country head, Jones Lang LaSalle Meghraj
Courtesy:- HT Estates dt:- 16-jan-2010
The effects of the slowdown were still noticeable across the country in the first quarter of 2009. However, towards the middle of the year, residential rates in some of the larger cities began showing an upward curve. The cities that were most affected were Mumbai and Delhi. In Mumbai, many developers began raising rates by as much as 12-15 per cent under the assumption that the renewed demand was assuredly sustainable under all circumstances. This assumption started backfiring towards the end of the third quarter, which is when demand began slowing down again in the financial capital. Delhi showed a more rational graph, thanks largely to a better volumes profile, with price escalations not going beyond 5-10 per cent even in high-demand regions. Bangalore continued to display a sombre profile, since demand from the IT / ITES employee segment has not yet ramped up sufficiently. Chennai's residential market continued to showcase its usual conservatism.
Looking at 2010, I can safely say that residential demand is the highest and most promising by far. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalization in newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment. This segment does not depend overly on international funding. There are two cost-to-developer components in question for such projects. One of these is cost of land, but such projects are located in areas where land costs are low to begin with. The second is cost of construction, which is adequately covered by the down-payments taken on such units. Moreover, such housing formats invariably employ de-frilled mass-construction parameters, which also imply lowered construction costs. I see an increase in private equity funding for affordable housing projects in 2010, since the demand for such projects is inflexible and assured. The emphasis will be on projects by established brand names that show sufficient potential for fast completion and absorption.
Office space
For the better part of 2009, the commercial segment uptake remained at about the same level as it was last year, when the slowdown was beginning to show its claws in earnest. It is an immutable fact that Indian office space depends to a significant extent on multinationals seeking to establish or expand their bases here. The health of Indian commercial real estate is closely connected to the global economy, meaning that Grade A office spaces have largely been about MNC occupiers and the IT/ITES industry. When the financial crunch deepened in the West, many intending international occupiers put their Indian entry/expansion plans on hold. We are beginning to see the first signs of revival in commercial real estate now, but the process is pretty gradual. For investors, this is the best time to invest in wellresearched commercial real estate opportunities. There is, in fact, an increase in investors looking for such opportunities, since the prices are now near the bottom. Long term investment, which is the kind that truly works, will ensure that investors can reap the benefits when the office market shapes up for real in 2-3 years.
Retail space
Indian retail had gone through a decisive learning phase in 2009. Like the commercial segment, Indian retail growth depends significantly on the aspirations and spending power of cash-rich IT professionals. When the downturn hit the IT sector, there was a noticeable setback in Indian retail real estate. There had been corrections in rentals and consolidation both at the retailer and market levels. Many unsustainable market models were edged off the map. While 2009 was the year that separated the boys from the men, 2010 will be the year of the survivors to make a serious bid at the recovery process. Many players will consolidate their operations and rationalise their business models to dovetail with the newly emerged consumer dynamics. Value retail will be the winning ticket, and we will see the stronger value retail players make calculated plays in key Tier II cities. High end retail will show a stronger hand in 2010, as well. There will be also a wider acceptance of big brands as returning economic stability infuses buyer confidence into the market. The revenue sharing / minimum guarantee model will gain wider acceptance and become the norm rather than the exception, bringing this model's prevalence in India closer to international trends.
The author is chairman and country head, Jones Lang LaSalle Meghraj
Courtesy:- HT Estates dt:- 16-jan-2010
Friday, January 15, 2010
3 Bedroom Independent floors for sale in gurgaon sector-81
Type- Independent Floors
NH.8, Sector-81, Gurgaon
Price- Rs. 3723000 Lacs*
Description – Vatika Primrose Floors II, 3 Bedroom Independent floors for sale @Rs 37,23,000, at NH.8, Sector-81, Gurgaon, 25 KM from IGI Airport, 12KM from Ifcco Chowk, 6 KM from Rajiv Chowk, 1 KM from Haldiram
Vatika Group launches primrose floors II “Iris and Emilia Floors” at Vatika India Next in Sec 82, Gurgaon. Offering residential apartments, The apartments provide all that you have desired for your dream home at affordable prices. The infrastructure conforms to international standards with lush landscapes and well planned street architecture. So catch your breath at fabulous price as your dream home unfolds at a dream location.
Living / Dining : Choice of shades of acrylic emulsion paint / ceiling in distemper
Ceramic tiles
Ceramic tiles above counter / on non-counter walls upto 1500mm above floor
Granite counter with twin bowl stainless steel sink drain board and CP fittings
Flush Door with wooden frame, Window panes with glazed aluminium/durable wood.
Complet Electrical wiring with branded switches & Scokets.
For more info log on to http://www.zameen-zaidad.com/primrose-floors-II-vatika-gurgoan.aspx
NH.8, Sector-81, Gurgaon
Price- Rs. 3723000 Lacs*
Description – Vatika Primrose Floors II, 3 Bedroom Independent floors for sale @Rs 37,23,000, at NH.8, Sector-81, Gurgaon, 25 KM from IGI Airport, 12KM from Ifcco Chowk, 6 KM from Rajiv Chowk, 1 KM from Haldiram
Vatika Group launches primrose floors II “Iris and Emilia Floors” at Vatika India Next in Sec 82, Gurgaon. Offering residential apartments, The apartments provide all that you have desired for your dream home at affordable prices. The infrastructure conforms to international standards with lush landscapes and well planned street architecture. So catch your breath at fabulous price as your dream home unfolds at a dream location.
Living / Dining : Choice of shades of acrylic emulsion paint / ceiling in distemper
Ceramic tiles
Ceramic tiles above counter / on non-counter walls upto 1500mm above floor
Granite counter with twin bowl stainless steel sink drain board and CP fittings
Flush Door with wooden frame, Window panes with glazed aluminium/durable wood.
Complet Electrical wiring with branded switches & Scokets.
For more info log on to http://www.zameen-zaidad.com/primrose-floors-II-vatika-gurgoan.aspx
3 Bedroom Multistory apartments for sale in faridabad sector-77
Type – Multistory Apartments
Sector -77, Faridabad
Price - Rs. 30, 43,800*
Description – KLJ Greens, 3 Bedroom Multistory apartments for sale @Rs. 30,43,800 in Sector 77 in Faridabad. Near the proposed expressway which puts in close proximity to Delhi and Noida. Best accessibility of Project from FNG Expressway, Proposed Metro Station Just 3 Km.
Payment should be made by cheque / draft only, favoring “KLJ Town Planners (P) Ltd.” Payable at New Delhi.
In case of any upward revision of EDC & IDC by Govt. agencies in future, the same will be recovered proportionately.
Prices indicated above are subject to revision at the sole discretion of the company without prior notice.
Prices ruling on the date of booking and its acceptance by the company shall be applicable.
Power back-up will be @ Rs. 20000/- per KVA (5 KVA Mandatory)
ECC & FCC Charges @ Rs. 150/- per sq. ft.
Other charges such as Stamp Duty and Registration etc. shall be payable at the time of possession.
At a short drive from New Delhi is the upcoming project in Faridabad - KLJ Greens. the complex is meticulously planned with 2, 3 and 4 bedroom apartments, earthquake resistant structure, power back-up and round the clock security.
For recreation and rejuvenation the complex will have a club, swimming pool, tennis court, greens and jogging tracks. there will also ba a shopping centre stocking the best brands, as well as provision for medical facilities for the residents.
For more info log on to http://www.zameen-zaidad.com/klj-greens-faridabad.aspx
Sector -77, Faridabad
Price - Rs. 30, 43,800*
Description – KLJ Greens, 3 Bedroom Multistory apartments for sale @Rs. 30,43,800 in Sector 77 in Faridabad. Near the proposed expressway which puts in close proximity to Delhi and Noida. Best accessibility of Project from FNG Expressway, Proposed Metro Station Just 3 Km.
Payment should be made by cheque / draft only, favoring “KLJ Town Planners (P) Ltd.” Payable at New Delhi.
In case of any upward revision of EDC & IDC by Govt. agencies in future, the same will be recovered proportionately.
Prices indicated above are subject to revision at the sole discretion of the company without prior notice.
Prices ruling on the date of booking and its acceptance by the company shall be applicable.
Power back-up will be @ Rs. 20000/- per KVA (5 KVA Mandatory)
ECC & FCC Charges @ Rs. 150/- per sq. ft.
Other charges such as Stamp Duty and Registration etc. shall be payable at the time of possession.
At a short drive from New Delhi is the upcoming project in Faridabad - KLJ Greens. the complex is meticulously planned with 2, 3 and 4 bedroom apartments, earthquake resistant structure, power back-up and round the clock security.
For recreation and rejuvenation the complex will have a club, swimming pool, tennis court, greens and jogging tracks. there will also ba a shopping centre stocking the best brands, as well as provision for medical facilities for the residents.
For more info log on to http://www.zameen-zaidad.com/klj-greens-faridabad.aspx
Monday, January 11, 2010
PANDARA PARK: HASINA’S SECOND HOME!
Sheikh Hasina, the PM of Bangladesh, came to Delhi in 1975 after her father was assassinated and lived here for five years with her husband and two children at Pandara Park. Vivek Shukla revisits her sojourn
Sheikh Hasina Wajed, prime minister of Bangladesh, will certainly discuss several bilateral issues with Indian leaders during her forthcoming visit to India, like sharing of waters of the common rivers, including Teesta, increase of trade and commerce, cooperation in power and energy, and security related matters. In all this, Pandara Park would also definitely remain high on her mind during her stay at Delhi.
Notwithstanding the three decades that have elapsed when Delhi was a home to Sheikh Hasina Wajed, surely she would not have forgotten those days. For almost five years, she lived here with her husband, M Wajed (now deceased), a nuclear scientist and children Sajeeb and Saima Putul, at a flat in C Block of Pandara Park.
Hasina came to the city the year her father and founder of Bangladesh, Sheikh Mujibur Rahman, was felled by the senseless bullets of assassins in his Dhan Mandi home in Dhaka, along with his wife and three sons. The killings took place on August 25, 1975. Hasina and her younger sister escaped death because they were in Germany at that time.
Given the fact, Sheikh Hasina has very strong emotional ties with Delhi. Hasina moved to Pandara Park in the later part of December 1975. She first lived at 56 Ring Road, Lajpat Nagar. Interestingly enough, later on, Bangladesh high commission worked from 56 Ring Road before shifting to the more spacious Chanakyapuri.
Hasina lived in Delhi till 1981. It is still unclear whether she would make an emotional trip to her ‘home’ here, despite her crowded itinerary and security considerations, but one thing is very sure - she would, in all probability, ruminate upon her days in exile, in Delhi.
It is said that the daughter of Mujib, a powerful political leader, was rank apolitical when she came to Delhi. Her father was a fiery political leader since his college days in Calcutta (now Kolkata) and was at the forefront when the Pakistan government tried to impose Urdu in East Pakistan. Coming back to Hasina’s days and years in Delhi, when she came here, India itself had to contend with a grand turmoil - the national emergency (1975-77). And, she was always surrounded by her security entourage. Leaders of Bangladesh Awami League visited her to persuade her to take over the reins of the party. She was even elected the head of the League while in exile in India.
While Hasina was in Delhi, a person by the name of A L Khatib worked as her assistant. Khatib had also authored a book, “Who killed Mujib”, published by Vikas Publishing House.
D K Bose, a very familiar face in the football circles of the capital, was among the few who had met Hasina at her Pandara Park home, at that time. Bose says an academician from Dhaka University organized the meeting. Though it was a brief one, they apparently discussed at length the state of Bangladesh and Bangla literature.
Hasina generally remained indoors, except for visiting Indian International Centre once in a while, for a quiet lunch or dinner.
Courtesy:- Times Property dt:- 09-01-2010
Sheikh Hasina Wajed, prime minister of Bangladesh, will certainly discuss several bilateral issues with Indian leaders during her forthcoming visit to India, like sharing of waters of the common rivers, including Teesta, increase of trade and commerce, cooperation in power and energy, and security related matters. In all this, Pandara Park would also definitely remain high on her mind during her stay at Delhi.
Notwithstanding the three decades that have elapsed when Delhi was a home to Sheikh Hasina Wajed, surely she would not have forgotten those days. For almost five years, she lived here with her husband, M Wajed (now deceased), a nuclear scientist and children Sajeeb and Saima Putul, at a flat in C Block of Pandara Park.
Hasina came to the city the year her father and founder of Bangladesh, Sheikh Mujibur Rahman, was felled by the senseless bullets of assassins in his Dhan Mandi home in Dhaka, along with his wife and three sons. The killings took place on August 25, 1975. Hasina and her younger sister escaped death because they were in Germany at that time.
Given the fact, Sheikh Hasina has very strong emotional ties with Delhi. Hasina moved to Pandara Park in the later part of December 1975. She first lived at 56 Ring Road, Lajpat Nagar. Interestingly enough, later on, Bangladesh high commission worked from 56 Ring Road before shifting to the more spacious Chanakyapuri.
Hasina lived in Delhi till 1981. It is still unclear whether she would make an emotional trip to her ‘home’ here, despite her crowded itinerary and security considerations, but one thing is very sure - she would, in all probability, ruminate upon her days in exile, in Delhi.
It is said that the daughter of Mujib, a powerful political leader, was rank apolitical when she came to Delhi. Her father was a fiery political leader since his college days in Calcutta (now Kolkata) and was at the forefront when the Pakistan government tried to impose Urdu in East Pakistan. Coming back to Hasina’s days and years in Delhi, when she came here, India itself had to contend with a grand turmoil - the national emergency (1975-77). And, she was always surrounded by her security entourage. Leaders of Bangladesh Awami League visited her to persuade her to take over the reins of the party. She was even elected the head of the League while in exile in India.
While Hasina was in Delhi, a person by the name of A L Khatib worked as her assistant. Khatib had also authored a book, “Who killed Mujib”, published by Vikas Publishing House.
D K Bose, a very familiar face in the football circles of the capital, was among the few who had met Hasina at her Pandara Park home, at that time. Bose says an academician from Dhaka University organized the meeting. Though it was a brief one, they apparently discussed at length the state of Bangladesh and Bangla literature.
Hasina generally remained indoors, except for visiting Indian International Centre once in a while, for a quiet lunch or dinner.
Courtesy:- Times Property dt:- 09-01-2010
REVERSE MORTGAGE COMES WITH TAX BENEFITS
A property owner is not liable to pay both capital gains tax and income tax in the case of income from this scheme, explains Ashish Gupta
Reverse mortgage is a relatively new concept here. It is yet to gain significant acceptance. The concept is quite popular in the developed countries as a means generate cash flows for senior citizens.
In case of a reverse mortgage, the property owner surrenders the title of the property to a financial entity. The financial entity doesn’t pay the entire amount to the owner upfront. It pays out a regular sum each month for an agreed duration. The owner gets to stay in the property along with his spouse for their lifetime. Thus, the owner can ensure a regular cash flow in times of need and enjoy the benefit of staying in the property. After the owner’s death, the property is transferred to the institution, and not to his heirs.
The arrangement will be available to those above a specific age. The aim is to use the property and make it generate a return at the same time. The financing institution has to bear the risk of the individual out-living the agreement. At the expiry of the agreement period, the monthly payments to the owner stop.
The monthly payout depends on the value of the property, the term of the agreement and the rate of payment. The valuation of the property is to be made by professionals. The entire payout mechanism - calculation and computation - depends on the law of probability. Property can thus generate a regular cash flow for senior citizens to supplement their income. A reverse mortgage scheme helps senior citizens address their financial requirements. They can unlock the value of a house by mortgaging it with a financial institution such as a bank, and derive regular payments during the contract period.
Under this scheme, the senior citizen is not required to service the loan during his lifetime or period of contract. He does not have to worry about the monthly repayments of principal and interest amounts to the financial institution.
On the death of the property owner, or on his disposing off the house, the loan is repaid along with accumulated interest, through the sale. The senior citizen or his legal heirs can also repay or prepay the loan along with accumulated interest to release the mortgage without opting to sell the property.
The value of the property is generally revisited periodically. If the valuation has increased, the senior citizen is given an option to increase the loan.
An advantage of this scheme is, under the provisions of the Income Tax Act, any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the centre is not regarded as a transfer, and hence, does not attract capital gains tax. Moreover, any amount received as a loan either in lump sum or instalments under such a scheme, is also not regarded as income, and hence, not liable to income tax.
Courtesy:- Times Property dt:- 09-01-2010
Reverse mortgage is a relatively new concept here. It is yet to gain significant acceptance. The concept is quite popular in the developed countries as a means generate cash flows for senior citizens.
In case of a reverse mortgage, the property owner surrenders the title of the property to a financial entity. The financial entity doesn’t pay the entire amount to the owner upfront. It pays out a regular sum each month for an agreed duration. The owner gets to stay in the property along with his spouse for their lifetime. Thus, the owner can ensure a regular cash flow in times of need and enjoy the benefit of staying in the property. After the owner’s death, the property is transferred to the institution, and not to his heirs.
The arrangement will be available to those above a specific age. The aim is to use the property and make it generate a return at the same time. The financing institution has to bear the risk of the individual out-living the agreement. At the expiry of the agreement period, the monthly payments to the owner stop.
The monthly payout depends on the value of the property, the term of the agreement and the rate of payment. The valuation of the property is to be made by professionals. The entire payout mechanism - calculation and computation - depends on the law of probability. Property can thus generate a regular cash flow for senior citizens to supplement their income. A reverse mortgage scheme helps senior citizens address their financial requirements. They can unlock the value of a house by mortgaging it with a financial institution such as a bank, and derive regular payments during the contract period.
Under this scheme, the senior citizen is not required to service the loan during his lifetime or period of contract. He does not have to worry about the monthly repayments of principal and interest amounts to the financial institution.
On the death of the property owner, or on his disposing off the house, the loan is repaid along with accumulated interest, through the sale. The senior citizen or his legal heirs can also repay or prepay the loan along with accumulated interest to release the mortgage without opting to sell the property.
The value of the property is generally revisited periodically. If the valuation has increased, the senior citizen is given an option to increase the loan.
An advantage of this scheme is, under the provisions of the Income Tax Act, any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the centre is not regarded as a transfer, and hence, does not attract capital gains tax. Moreover, any amount received as a loan either in lump sum or instalments under such a scheme, is also not regarded as income, and hence, not liable to income tax.
Courtesy:- Times Property dt:- 09-01-2010
Friday, January 8, 2010
A WEEKLY ROUND-UP OF SOME BIG-TICKET CITY DEALS HYDERABAD
A residential apartment in an under construction project, located at Miyapur in the North-west part of Hyderabad, was sold at approximately Rs 37 lakh (Rs 2,900 per sq ft). This mid-end, three-bedroom unit, which is spread across 1,260 sq ft, is being developed by a prominent builder and will be ready for possession within 3-5 months. Miyapur is an established residential region with a concentration of apartment projects that largely target the mid-income, salaried class. Further, this region is well connected to the IT hub of Hyderabad at Gachibowli and Madhapur, and also in proximity to well-known educational establishments such as Jawaharlal Technological University. Presence of social infrastructure such as schools, shopping centres, hospitals, restaurants and various entertainment zones contribute towards the location advantage of Miyapur. This gated community project is likely to provide various leisure and entertainment facilities to its occupants. Capital values in the North West regions of Hyderabad are currently in the range of Rs 2,400-2,900 per sq ft for mid-end apartment units.
PUNE
A residential apartment, admeasuring 1,208 sq ft (approximately), was sold for Rs 38 lakh (Rs 3,145 per sq ft). The apartment is situated in Magarpatta, an upcoming township in suburban Pune, in the east. The location is gaining importance, largely due to the upcoming office space supply. This midranged apartment is within the expected capital value, which ranges between Rs 2,800 and Rs 3,100 per sq.ft. The location, including Wanowrie and Hadapsar, have in the last few months, seen a steady growth in interest from end users as a result of growing economic stability, lower loan rates and rationalised costs. The location is expected to remain stable with a possibility of marginal appreciation in the mid term.
NCR
An independent house, covering an area of 400 sq ft, was sold to a single owner at an average cost of Rs 60,000 per sq ft. This highend unit is located in Vasant Vihar, which is a premium residential location in south Delhi. The area is well connected through arterial roads to various nodal destinations across the city, including the airport, central business district, secondary business district as well as Gurgaon and Noida. Apart from the physical infrastructure, other amenities such as international schools, healthcare, recreation and rejuvenation facilities and entertainment options are commonly available. An apartment, admeasuring 5,850 sq ft, was leased out for a monthly rental of Rs 2,65,000 per month. The apartment is located in a premium residential condominium on the Golf Course Road in Gurgaon. It is located on a higher floor within the complex and thus commands a premium over the average rental value. This premium condominium comes with high-end amenities and resembles as exclusive membership club due to the fact that the initial sale was through invitation only. Gurgaon is fast coming up as an alternate business district in NCR, with many major corporates, Indian and multinational companies having taken up spaces in this location. Subsequently, the location has become an attractive residential location, giving end users and investors’ options of modern residential.
Courtesy:- ET dt:- 08-01-2010
PUNE
A residential apartment, admeasuring 1,208 sq ft (approximately), was sold for Rs 38 lakh (Rs 3,145 per sq ft). The apartment is situated in Magarpatta, an upcoming township in suburban Pune, in the east. The location is gaining importance, largely due to the upcoming office space supply. This midranged apartment is within the expected capital value, which ranges between Rs 2,800 and Rs 3,100 per sq.ft. The location, including Wanowrie and Hadapsar, have in the last few months, seen a steady growth in interest from end users as a result of growing economic stability, lower loan rates and rationalised costs. The location is expected to remain stable with a possibility of marginal appreciation in the mid term.
NCR
An independent house, covering an area of 400 sq ft, was sold to a single owner at an average cost of Rs 60,000 per sq ft. This highend unit is located in Vasant Vihar, which is a premium residential location in south Delhi. The area is well connected through arterial roads to various nodal destinations across the city, including the airport, central business district, secondary business district as well as Gurgaon and Noida. Apart from the physical infrastructure, other amenities such as international schools, healthcare, recreation and rejuvenation facilities and entertainment options are commonly available. An apartment, admeasuring 5,850 sq ft, was leased out for a monthly rental of Rs 2,65,000 per month. The apartment is located in a premium residential condominium on the Golf Course Road in Gurgaon. It is located on a higher floor within the complex and thus commands a premium over the average rental value. This premium condominium comes with high-end amenities and resembles as exclusive membership club due to the fact that the initial sale was through invitation only. Gurgaon is fast coming up as an alternate business district in NCR, with many major corporates, Indian and multinational companies having taken up spaces in this location. Subsequently, the location has become an attractive residential location, giving end users and investors’ options of modern residential.
Courtesy:- ET dt:- 08-01-2010
TIME FOR NCR TO SHINE
Experts predict that the coming decade will belong to the National Capital Region. The new decade will see rise of new development centres in this region, Prabhakar Sinha
As the economy is likely to maintain a growth of around 8% in the coming decade, it will witness a sustained growth in the real estate sector with affordable housing continuing to be in focus. The National Capital Region (NCR) of Delhi, in particular, will see a number of new destinations coming up. But, unlike the last decade when Delhi did not contribute much to the housing development, the new decade will witness a large number of housing projects being developed here.
At the same time, a number of townships will come in the NCR region to meet the demand for housing and commercial space. The last decade witnessed an unprecedented rise in the activities in the sector. Not only did construction activity increase substantially, the prices also went up manifold. The growth momentum was so strong that it could withstand the global financial crisis successfully, albeit with the help of the government's stimulus package. RBI's decision to reduce interest rates also helped in this regard. But, the main driving agent in the revival in the second half of 2009 was the developers' strategy in building affordable houses. In this, builders built two and three-bedroom apartments with lower specification at up to 40 percent lower prices than what they used to sell only a few months ago.
CMD of CB Richard Ellis, South Asia, Anshuman Magazine, says, "In 2010, we can expect to see some sustainability in the residential market as activity levels have improved. On the office market front, demand is expected to improve, although rentals are expected to remain flat in the medium term due to the forecasted surplus supply of office space." Samir Jasuja, CMD of PropEquity, a realty research firm, says that Delhi will emerge as the centre of planned development in the coming decade with the new Master Plan coming into effect soon. The huge land bank in Najafgarh in Southwest Delhi, Brijwasan and Chhattarpur in South Delhi, will be released under the new Master Plan of Delhi. Similarly, a large tract of land will also come up in the marketplace in North Delhi. He says that thousands of acres of land are likely to be released under the new Master Plan.
As 2000-2009 saw the development of areas like Indira Puram, Vaishali, Vasundhara and Crossings Republik, in the East of Delhi in Ghaziabad, Sector 44 and 93A & B in Noida and MG Road, Sushant Lok, Golf Course, and DLF Phase II, III and V in Gurgaon and Nahar Paar area in Faridabad. Many of these areas were unheard of, before 2000. Similarly, 2010-19 will see a hectic development of new areas like Noida-Greater Noida Exressway, Crossings Republik, Raj Nagar Extension on National Highway 58 in Ghaziabad, and Noida Sectors 34, 50, 45, 128 and 134 will emerge as the new development centres in the new decade. In Gurgaon, new areas that are likely to come up are Sohna Road, Golf Course Road Extn and Pataudi Road. Sonepat is also likely to emerge as a new destination for residential market.
Samir Jasuja says that under the new Gurgaon-Manesar Master Plan, around 1,50,000 residential units will be developed in the area. Out of this, around 10,000 are at the implementation stage by various developers. The rest will be developed in the coming years. Besides this, the introduction of the concept of 'township' will expedite the construction of residential units. The development of townships will allow private developers to share the onus of development of infrastructure. So far, only the government agencies used to develop infrastructure, which results in a slow pace of development. With this, the supply of housing units will get expedited.
The good news is that such a huge supply of housing units will stabilize prices. Global realty consultancy firm, Knight Frank, in its report on India's residential market says that given a general stability of markets around Delhi and the supply expected in this part of the NCR until 2011, it is reasonable to expect residential prices in Delhi to remain relatively stable or even increase, if demand in the region significantly increases due to better internal connectivity.
The report further says that several infrastructure initiatives around the NCR are expected to boost residential options through augmenting connectivity and decongesting traffic within certain locations. If consumers are attracted to small markets around the NCR due to better infrastructure, the subsequent decongestion of demand in the region could alleviate the upward pressure on prices in locations like Gurgaon and Noida, which are becoming increasingly attractive residential options. The 2010 Commonwealth Games have also played an important role in improving connectivity to different parts of the city through the Metro Rail.
Courtesy:- ET Realty dt:- 08-01-2010
As the economy is likely to maintain a growth of around 8% in the coming decade, it will witness a sustained growth in the real estate sector with affordable housing continuing to be in focus. The National Capital Region (NCR) of Delhi, in particular, will see a number of new destinations coming up. But, unlike the last decade when Delhi did not contribute much to the housing development, the new decade will witness a large number of housing projects being developed here.
At the same time, a number of townships will come in the NCR region to meet the demand for housing and commercial space. The last decade witnessed an unprecedented rise in the activities in the sector. Not only did construction activity increase substantially, the prices also went up manifold. The growth momentum was so strong that it could withstand the global financial crisis successfully, albeit with the help of the government's stimulus package. RBI's decision to reduce interest rates also helped in this regard. But, the main driving agent in the revival in the second half of 2009 was the developers' strategy in building affordable houses. In this, builders built two and three-bedroom apartments with lower specification at up to 40 percent lower prices than what they used to sell only a few months ago.
CMD of CB Richard Ellis, South Asia, Anshuman Magazine, says, "In 2010, we can expect to see some sustainability in the residential market as activity levels have improved. On the office market front, demand is expected to improve, although rentals are expected to remain flat in the medium term due to the forecasted surplus supply of office space." Samir Jasuja, CMD of PropEquity, a realty research firm, says that Delhi will emerge as the centre of planned development in the coming decade with the new Master Plan coming into effect soon. The huge land bank in Najafgarh in Southwest Delhi, Brijwasan and Chhattarpur in South Delhi, will be released under the new Master Plan of Delhi. Similarly, a large tract of land will also come up in the marketplace in North Delhi. He says that thousands of acres of land are likely to be released under the new Master Plan.
As 2000-2009 saw the development of areas like Indira Puram, Vaishali, Vasundhara and Crossings Republik, in the East of Delhi in Ghaziabad, Sector 44 and 93A & B in Noida and MG Road, Sushant Lok, Golf Course, and DLF Phase II, III and V in Gurgaon and Nahar Paar area in Faridabad. Many of these areas were unheard of, before 2000. Similarly, 2010-19 will see a hectic development of new areas like Noida-Greater Noida Exressway, Crossings Republik, Raj Nagar Extension on National Highway 58 in Ghaziabad, and Noida Sectors 34, 50, 45, 128 and 134 will emerge as the new development centres in the new decade. In Gurgaon, new areas that are likely to come up are Sohna Road, Golf Course Road Extn and Pataudi Road. Sonepat is also likely to emerge as a new destination for residential market.
Samir Jasuja says that under the new Gurgaon-Manesar Master Plan, around 1,50,000 residential units will be developed in the area. Out of this, around 10,000 are at the implementation stage by various developers. The rest will be developed in the coming years. Besides this, the introduction of the concept of 'township' will expedite the construction of residential units. The development of townships will allow private developers to share the onus of development of infrastructure. So far, only the government agencies used to develop infrastructure, which results in a slow pace of development. With this, the supply of housing units will get expedited.
The good news is that such a huge supply of housing units will stabilize prices. Global realty consultancy firm, Knight Frank, in its report on India's residential market says that given a general stability of markets around Delhi and the supply expected in this part of the NCR until 2011, it is reasonable to expect residential prices in Delhi to remain relatively stable or even increase, if demand in the region significantly increases due to better internal connectivity.
The report further says that several infrastructure initiatives around the NCR are expected to boost residential options through augmenting connectivity and decongesting traffic within certain locations. If consumers are attracted to small markets around the NCR due to better infrastructure, the subsequent decongestion of demand in the region could alleviate the upward pressure on prices in locations like Gurgaon and Noida, which are becoming increasingly attractive residential options. The 2010 Commonwealth Games have also played an important role in improving connectivity to different parts of the city through the Metro Rail.
Courtesy:- ET Realty dt:- 08-01-2010
Tuesday, January 5, 2010
2 NCR DESTINATIONS YOU CAN BET ON
Expecting a delivery of 10,000 units in 2010, both Greater Noida and Ghaziabad are likely to become the NCR's hottest spots
In 2010, Ghaziabad and Greater Noida will see a supply of 10,000 units, making these the most sought-after real estate destinations in Delhi NCR. According to real estate consultant Knight Frank, Ghaziabad should expect a fresh inflow of about 7,590 units, equating to 10.83 million sq. ft of built-up area, while Greater Noida should see 2,343 new units, totalling 4.85 million sq. ft of built-up area.
Although it is not an applesto-apples comparison, Ghaziabad is all set to establish itself as a middle-class affordable realty destination, while Greater Noida will emerge as a premium housing area. Realty experts also point out that while Greater Noida means a good investment because of great infrastructure, Ghaziabad scores over Greater Noida because it is closer to the national Capital.
Both will flourish because of the connectivity solutions coming their way. "With the Metro reaching Noida and Ghaziabad, connectivity will improve and various companies will contemplate setting up operations here," says Gulam Zia, national director, research and advisory services, Knight Frank India.
The supply in Ghaziabad will be spread across locations like Indirapuram, Vaishali, Vasundhara and Raj Nagar Extension. According to the Knight Frank report, 40 per cent of this supply will be in the three-BHK category and 46 per cent in the twoBHK category. Due to availability of cheap land parcels on NH 58, Raj Nagar Extension and NH 24, builders have explored these areas for developing affordable projects. The supply in Greater Noida will be located in sectors Alpha, Beta, Pi and Sigma.
According to Sameer Jasuja, CEO, PropEquity, the profiles of both areas differ. While Ghaziabad is an affordable housing market, Greater Noida offers relatively premium products.
Out of the units sold in both areas, Greater Noida saw a majority of the sales in 2007-2008, which are likely to be up for delivery next year.
Absorption of these units at that point in time was high because Noida was expensive and Greater Noida offered the next best option, he says.
Greater Noida is a good investment from the point of infrastructure and proximity to the Expressway. a realty portal, agrees. "In terms of proximity to Delhi, Ghaziabad has an advantage over Greater Noida. People who work both in Noida and Delhi have made Ghaziabad their home, whereas Greater Noida is inhabited only by those who work there -- or in Noida.
As for price appreciation, the next two to three years will see a sharper upward curve in Ghaziabad than Greater Noida as the former will strengthen its position as a middle class realty destination, especially in the Rs 20-50 lakh range. Greater Noida will feel the pinch of the Expressway development.
Real estate development along the Expressway is likely to push back markets in Greater Noida by at least five years. According to Chintan Patel, associate director, real estate practice, Ernst & Young, "Developers are expecting increased sales volume in 2011. The two-BHK format comprises the maximum supply, followed by three-BHK. In 2009, the micro-markets witnessed a correction of around 5-10 per cent as compared to 2008 prices. However, prices in 2010 are likely to be quoted at around 10 per cent premium over 2009 prices."
Looking ahead, both Ghaziabad and Greater Noida will see demand overstripping supply in the next five-six years. Prices are likely to remain stable but may move northwards in the next five years, adds Zia.
Overall, most of the projects launched in 2009 were in the price range of Rs 30-50 lakh. Unit sizes were mainly two and three BHK and almost none in the luxury segment. During 2006/07, most developers were focusing on highend projects. Vivek Dahiya, founder and CEO, GenReal Property Advisers Private Limited, says, "In many new launches in 2006/07, the starting unit price was around Rs 70 lakh, and going up to over Rs 5 crore. However, in India, `middle of the pyramid' in residential real estate starts at below Rs 50 lakh. Interestingly, one of the largest demand segments got almost completely ignored during the `boom time'."
Inputs from Vandana Ramnani
Courtesy:- HT Estate dt:- 02-01-2010
In 2010, Ghaziabad and Greater Noida will see a supply of 10,000 units, making these the most sought-after real estate destinations in Delhi NCR. According to real estate consultant Knight Frank, Ghaziabad should expect a fresh inflow of about 7,590 units, equating to 10.83 million sq. ft of built-up area, while Greater Noida should see 2,343 new units, totalling 4.85 million sq. ft of built-up area.
Although it is not an applesto-apples comparison, Ghaziabad is all set to establish itself as a middle-class affordable realty destination, while Greater Noida will emerge as a premium housing area. Realty experts also point out that while Greater Noida means a good investment because of great infrastructure, Ghaziabad scores over Greater Noida because it is closer to the national Capital.
Both will flourish because of the connectivity solutions coming their way. "With the Metro reaching Noida and Ghaziabad, connectivity will improve and various companies will contemplate setting up operations here," says Gulam Zia, national director, research and advisory services, Knight Frank India.
The supply in Ghaziabad will be spread across locations like Indirapuram, Vaishali, Vasundhara and Raj Nagar Extension. According to the Knight Frank report, 40 per cent of this supply will be in the three-BHK category and 46 per cent in the twoBHK category. Due to availability of cheap land parcels on NH 58, Raj Nagar Extension and NH 24, builders have explored these areas for developing affordable projects. The supply in Greater Noida will be located in sectors Alpha, Beta, Pi and Sigma.
According to Sameer Jasuja, CEO, PropEquity, the profiles of both areas differ. While Ghaziabad is an affordable housing market, Greater Noida offers relatively premium products.
Out of the units sold in both areas, Greater Noida saw a majority of the sales in 2007-2008, which are likely to be up for delivery next year.
Absorption of these units at that point in time was high because Noida was expensive and Greater Noida offered the next best option, he says.
Greater Noida is a good investment from the point of infrastructure and proximity to the Expressway. a realty portal, agrees. "In terms of proximity to Delhi, Ghaziabad has an advantage over Greater Noida. People who work both in Noida and Delhi have made Ghaziabad their home, whereas Greater Noida is inhabited only by those who work there -- or in Noida.
As for price appreciation, the next two to three years will see a sharper upward curve in Ghaziabad than Greater Noida as the former will strengthen its position as a middle class realty destination, especially in the Rs 20-50 lakh range. Greater Noida will feel the pinch of the Expressway development.
Real estate development along the Expressway is likely to push back markets in Greater Noida by at least five years. According to Chintan Patel, associate director, real estate practice, Ernst & Young, "Developers are expecting increased sales volume in 2011. The two-BHK format comprises the maximum supply, followed by three-BHK. In 2009, the micro-markets witnessed a correction of around 5-10 per cent as compared to 2008 prices. However, prices in 2010 are likely to be quoted at around 10 per cent premium over 2009 prices."
Looking ahead, both Ghaziabad and Greater Noida will see demand overstripping supply in the next five-six years. Prices are likely to remain stable but may move northwards in the next five years, adds Zia.
Overall, most of the projects launched in 2009 were in the price range of Rs 30-50 lakh. Unit sizes were mainly two and three BHK and almost none in the luxury segment. During 2006/07, most developers were focusing on highend projects. Vivek Dahiya, founder and CEO, GenReal Property Advisers Private Limited, says, "In many new launches in 2006/07, the starting unit price was around Rs 70 lakh, and going up to over Rs 5 crore. However, in India, `middle of the pyramid' in residential real estate starts at below Rs 50 lakh. Interestingly, one of the largest demand segments got almost completely ignored during the `boom time'."
Inputs from Vandana Ramnani
Courtesy:- HT Estate dt:- 02-01-2010
TEASER RATE WAR HOTS UP!
A new home loan customer stands to gain from these special offers, Harsh Roongta
After initially playing down the teaser home loan product first introduced by SBI in January 2009, market leader HDFC has decided to join the bandwagon. They announced a similar teaser loan product on December 1, 2009. Kotak Mahindra Bank too announced its special home loan scheme, offering an 8.49 per cent fixed interest for 30 months this week. This clearly is a good time to be a new home loan customer.
So what does a teaser rate home loan mean for the Indian consumer? It means that there is a low initial interest rate that is fixed for a specified period (1 year to 5 years) and the floating rate as specified becomes applicable thereafter.
Given below is an analysis of some of the teaser rate home loans available in the market for a 20-year home loan of Rs 30 lakh.
HDFC's dual home loan rate may be in competition with SBI's Easy Home Loan scheme which offers competitive rates at least for the first three years. This scheme, available for loans of up to Rs 50 lakh, offers an interest rate of 8 per cent in the first year and 8.5 per cent in the second and third year. From the fourth year, the borrower would have an option of choosing a floating rate that is 2.75 per cent below the State Bank Advance Rate (SBAR) or a fixed rate that is 1.25 per cent below SBAR. As for the scheme being offered by Kotak Mahindra Bank, the special offer of 8.49 per cent fixed interest for 30 months, can be availed for all new loans irrespective of the loan amount but will be available till January 31, 2010.
For salaried customers, the bank would offer floating rates starting from 7.99 per cent per annum depending on the loan amount.
So what should a consumer look at while choosing a lender based only on teaser rates?
The big variable in most cases is the applicable floating rates after the initial period of fixed rates is over. In working out the effective rates it has been assumed that the floating rates will be what they are today. This may not necessarily be true as different banks may follow different strategies on floating rates at that time.
One should not forget the story of people who had gone in for a similar teaser rate home loan scheme floated by a foreign bank in October 2003 with interest rate of 6 per cent for the first year and 6.50 per cent for the second year (against the then prevailing rates of 7 - 7.5 per cent) and floating rates thereafter. By the time the two-year teaser period was over, the bank had lost interest in the home loan market and interest rates were jacked up to doubledigit levels even as the prevailing interest rates were still around 8.5 -9.5 per cent. As a result a lot of consumers were forced to switch loans to other lenders.
The other issue is that people should also look at pre-payment charges and any upfront charges (processing fees/stamp duty/legal charges, etc.).
But perhaps the most important thing is the property itself. If you are buying an old property (more than 25 years) or a resale property that has seen many owners or an under construction property that is still in the initial stages of construction, then it might be useful to consider the private lenders simply because they have developed expertise on dealing with the issues arising from such transactions.
Can existing home loan consumers take advantage of these schemes?
Interest rates are thought to have bottomed out and are widely expected to go up next year and these loans provide a cushion at least for the next few years. After the teaser period is over, if your lender does not offer you market determined floating rates, you should switch your loan to another lender.
On paper all the banks that offer these teaser products are giving these only to new customers and not the existing ones. So, if you are an existing loan customer of any of these lenders and want to take advantage of these schemes, you should switch your loan to another lender (i.e. become a new customer to that lender).
All the lenders offer the teaser rate products to existing home loan customers of other banks. Ironically, though, it is not available to their own customers.
So `teasers' do make a difference in the lives of new customers as well as existing customers.
The author is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments.
Courtesy:- HT Estates dt:- 02-01-2010
After initially playing down the teaser home loan product first introduced by SBI in January 2009, market leader HDFC has decided to join the bandwagon. They announced a similar teaser loan product on December 1, 2009. Kotak Mahindra Bank too announced its special home loan scheme, offering an 8.49 per cent fixed interest for 30 months this week. This clearly is a good time to be a new home loan customer.
So what does a teaser rate home loan mean for the Indian consumer? It means that there is a low initial interest rate that is fixed for a specified period (1 year to 5 years) and the floating rate as specified becomes applicable thereafter.
Given below is an analysis of some of the teaser rate home loans available in the market for a 20-year home loan of Rs 30 lakh.
HDFC's dual home loan rate may be in competition with SBI's Easy Home Loan scheme which offers competitive rates at least for the first three years. This scheme, available for loans of up to Rs 50 lakh, offers an interest rate of 8 per cent in the first year and 8.5 per cent in the second and third year. From the fourth year, the borrower would have an option of choosing a floating rate that is 2.75 per cent below the State Bank Advance Rate (SBAR) or a fixed rate that is 1.25 per cent below SBAR. As for the scheme being offered by Kotak Mahindra Bank, the special offer of 8.49 per cent fixed interest for 30 months, can be availed for all new loans irrespective of the loan amount but will be available till January 31, 2010.
For salaried customers, the bank would offer floating rates starting from 7.99 per cent per annum depending on the loan amount.
So what should a consumer look at while choosing a lender based only on teaser rates?
The big variable in most cases is the applicable floating rates after the initial period of fixed rates is over. In working out the effective rates it has been assumed that the floating rates will be what they are today. This may not necessarily be true as different banks may follow different strategies on floating rates at that time.
One should not forget the story of people who had gone in for a similar teaser rate home loan scheme floated by a foreign bank in October 2003 with interest rate of 6 per cent for the first year and 6.50 per cent for the second year (against the then prevailing rates of 7 - 7.5 per cent) and floating rates thereafter. By the time the two-year teaser period was over, the bank had lost interest in the home loan market and interest rates were jacked up to doubledigit levels even as the prevailing interest rates were still around 8.5 -9.5 per cent. As a result a lot of consumers were forced to switch loans to other lenders.
The other issue is that people should also look at pre-payment charges and any upfront charges (processing fees/stamp duty/legal charges, etc.).
But perhaps the most important thing is the property itself. If you are buying an old property (more than 25 years) or a resale property that has seen many owners or an under construction property that is still in the initial stages of construction, then it might be useful to consider the private lenders simply because they have developed expertise on dealing with the issues arising from such transactions.
Can existing home loan consumers take advantage of these schemes?
Interest rates are thought to have bottomed out and are widely expected to go up next year and these loans provide a cushion at least for the next few years. After the teaser period is over, if your lender does not offer you market determined floating rates, you should switch your loan to another lender.
On paper all the banks that offer these teaser products are giving these only to new customers and not the existing ones. So, if you are an existing loan customer of any of these lenders and want to take advantage of these schemes, you should switch your loan to another lender (i.e. become a new customer to that lender).
All the lenders offer the teaser rate products to existing home loan customers of other banks. Ironically, though, it is not available to their own customers.
So `teasers' do make a difference in the lives of new customers as well as existing customers.
The author is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments.
Courtesy:- HT Estates dt:- 02-01-2010
TEASER RATE WAR HOTS UP!
A new home loan customer stands to gain from these special offers, Harsh Roongta
After initially playing down the teaser home loan product first introduced by SBI in January 2009, market leader HDFC has decided to join the bandwagon. They announced a similar teaser loan product on December 1, 2009. Kotak Mahindra Bank too announced its special home loan scheme, offering an 8.49 per cent fixed interest for 30 months this week. This clearly is a good time to be a new home loan customer.
So what does a teaser rate home loan mean for the Indian consumer? It means that there is a low initial interest rate that is fixed for a specified period (1 year to 5 years) and the floating rate as specified becomes applicable thereafter.
Given below is an analysis of some of the teaser rate home loans available in the market for a 20-year home loan of Rs 30 lakh.
HDFC's dual home loan rate may be in competition with SBI's Easy Home Loan scheme which offers competitive rates at least for the first three years. This scheme, available for loans of up to Rs 50 lakh, offers an interest rate of 8 per cent in the first year and 8.5 per cent in the second and third year. From the fourth year, the borrower would have an option of choosing a floating rate that is 2.75 per cent below the State Bank Advance Rate (SBAR) or a fixed rate that is 1.25 per cent below SBAR. As for the scheme being offered by Kotak Mahindra Bank, the special offer of 8.49 per cent fixed interest for 30 months, can be availed for all new loans irrespective of the loan amount but will be available till January 31, 2010.
For salaried customers, the bank would offer floating rates starting from 7.99 per cent per annum depending on the loan amount.
So what should a consumer look at while choosing a lender based only on teaser rates?
The big variable in most cases is the applicable floating rates after the initial period of fixed rates is over. In working out the effective rates it has been assumed that the floating rates will be what they are today. This may not necessarily be true as different banks may follow different strategies on floating rates at that time.
One should not forget the story of people who had gone in for a similar teaser rate home loan scheme floated by a foreign bank in October 2003 with interest rate of 6 per cent for the first year and 6.50 per cent for the second year (against the then prevailing rates of 7 - 7.5 per cent) and floating rates thereafter. By the time the two-year teaser period was over, the bank had lost interest in the home loan market and interest rates were jacked up to doubledigit levels even as the prevailing interest rates were still around 8.5 -9.5 per cent. As a result a lot of consumers were forced to switch loans to other lenders.
The other issue is that people should also look at pre-payment charges and any upfront charges (processing fees/stamp duty/legal charges, etc.).
But perhaps the most important thing is the property itself. If you are buying an old property (more than 25 years) or a resale property that has seen many owners or an under construction property that is still in the initial stages of construction, then it might be useful to consider the private lenders simply because they have developed expertise on dealing with the issues arising from such transactions.
Can existing home loan consumers take advantage of these schemes?
Interest rates are thought to have bottomed out and are widely expected to go up next year and these loans provide a cushion at least for the next few years. After the teaser period is over, if your lender does not offer you market determined floating rates, you should switch your loan to another lender.
On paper all the banks that offer these teaser products are giving these only to new customers and not the existing ones. So, if you are an existing loan customer of any of these lenders and want to take advantage of these schemes, you should switch your loan to another lender (i.e. become a new customer to that lender).
All the lenders offer the teaser rate products to existing home loan customers of other banks. Ironically, though, it is not available to their own customers.
So `teasers' do make a difference in the lives of new customers as well as existing customers.
The author is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments.
Courtesy:- HT Estates dt:- 02-01-2010
After initially playing down the teaser home loan product first introduced by SBI in January 2009, market leader HDFC has decided to join the bandwagon. They announced a similar teaser loan product on December 1, 2009. Kotak Mahindra Bank too announced its special home loan scheme, offering an 8.49 per cent fixed interest for 30 months this week. This clearly is a good time to be a new home loan customer.
So what does a teaser rate home loan mean for the Indian consumer? It means that there is a low initial interest rate that is fixed for a specified period (1 year to 5 years) and the floating rate as specified becomes applicable thereafter.
Given below is an analysis of some of the teaser rate home loans available in the market for a 20-year home loan of Rs 30 lakh.
HDFC's dual home loan rate may be in competition with SBI's Easy Home Loan scheme which offers competitive rates at least for the first three years. This scheme, available for loans of up to Rs 50 lakh, offers an interest rate of 8 per cent in the first year and 8.5 per cent in the second and third year. From the fourth year, the borrower would have an option of choosing a floating rate that is 2.75 per cent below the State Bank Advance Rate (SBAR) or a fixed rate that is 1.25 per cent below SBAR. As for the scheme being offered by Kotak Mahindra Bank, the special offer of 8.49 per cent fixed interest for 30 months, can be availed for all new loans irrespective of the loan amount but will be available till January 31, 2010.
For salaried customers, the bank would offer floating rates starting from 7.99 per cent per annum depending on the loan amount.
So what should a consumer look at while choosing a lender based only on teaser rates?
The big variable in most cases is the applicable floating rates after the initial period of fixed rates is over. In working out the effective rates it has been assumed that the floating rates will be what they are today. This may not necessarily be true as different banks may follow different strategies on floating rates at that time.
One should not forget the story of people who had gone in for a similar teaser rate home loan scheme floated by a foreign bank in October 2003 with interest rate of 6 per cent for the first year and 6.50 per cent for the second year (against the then prevailing rates of 7 - 7.5 per cent) and floating rates thereafter. By the time the two-year teaser period was over, the bank had lost interest in the home loan market and interest rates were jacked up to doubledigit levels even as the prevailing interest rates were still around 8.5 -9.5 per cent. As a result a lot of consumers were forced to switch loans to other lenders.
The other issue is that people should also look at pre-payment charges and any upfront charges (processing fees/stamp duty/legal charges, etc.).
But perhaps the most important thing is the property itself. If you are buying an old property (more than 25 years) or a resale property that has seen many owners or an under construction property that is still in the initial stages of construction, then it might be useful to consider the private lenders simply because they have developed expertise on dealing with the issues arising from such transactions.
Can existing home loan consumers take advantage of these schemes?
Interest rates are thought to have bottomed out and are widely expected to go up next year and these loans provide a cushion at least for the next few years. After the teaser period is over, if your lender does not offer you market determined floating rates, you should switch your loan to another lender.
On paper all the banks that offer these teaser products are giving these only to new customers and not the existing ones. So, if you are an existing loan customer of any of these lenders and want to take advantage of these schemes, you should switch your loan to another lender (i.e. become a new customer to that lender).
All the lenders offer the teaser rate products to existing home loan customers of other banks. Ironically, though, it is not available to their own customers.
So `teasers' do make a difference in the lives of new customers as well as existing customers.
The author is CEO, Apna Paisa, a search comparison engine for loans, insurance and investments.
Courtesy:- HT Estates dt:- 02-01-2010
Saturday, January 2, 2010
THE END OF AN ERA...
And the beginning of a brand new one. In the past decade, the real estate sector saw both highs and lows, but going by the way things are at present, year 2010 promises to be a momentous year
The decade, which closed yesterday saw a rollercoaster ride - though it started off full of uncertainties and a negative outlook, it is ending on a note of hope and positive outlook. Despite a slow start in the first two years of the new millennium's decade, the real estate sector witnessed an unprecedented growth during the period. In almost all the major cities and towns of the country, real estate sector was on a highoctane drive, both in the capital values and in the construction activities.
The NCR region, in particular, was witness to a number of new areas being developed during the decade. Prominent among them, to the east of Delhi, are Indirapuram, Vaishali, Vasundhara, Raj Nagar Extension on NH-58, Crossings Republic, areas on NH-24 beyond Hindon, Noida Sector 44, 93A and B, and Greater Noida. Towards Gurgaon also a number of areas like DLF Phase II, III and V, Sushant Lok, MG Road, Sohna Road, Golf Course Road Extn have come up. Towards Faridabad, areas like Nahar Paar and Suraj Kund Road were in full bloom, while towards north, residential areas have been developed right till Sonepat.
Along with residential houses, retail commercial activities also witnessed a paradigm shift during the period. The advent of malls in particular, in the last decade, changed the way people shop in metro cities.
In fact, this decade has seen a momentous change in the mindset of the people of NCR. Till 2003-04, people's first preference used to be a house in Delhi, even if one had to compromise on space and other amenities. But, with the development of condominiums having amenities like swimming pools, gyms, car parking and hi-tech security gizmos, things have changed. You will find apartments being sold for Rs 3 crore in the suburbs. Because of the lifestyle that new condominiums are offering to residents, many people now prefer to buy houses in the suburbs. Between 2003-04 and 2007-08, economy continued to grow in the region at 8%. Even, in 2008-09, which was badly affected because of the global slowdown, the GDP grew at 6.7%. In the current year also, as per the government's projection, economy should grow at around 7.75%. The per capita income of an average Indian during the decade more than doubled in the first nine years - from Rs 15,881 to Rs 37,490 - at the current price. The easy availability of home loan coupled with fall in the interest rates further fuelled growth in the sector. At the same time, the rise in the interest rates in 2007 and 2008 to over 12% per annum affected the affordability of buyers, which affected the sector badly. The onset of global financial crisis in September 2008 brought real estate sector to almost a grinding halt. As the crisis affected global economy, with developed countries going into recession, it was thought that India would also face a similar fate. But, timely action of the government in providing a stimulus package to the economy, coupled with the lowering of the interest rates, put the economy back on the revival path.
With this, the real estate sector also gained momentum in 2009. The good thing is that the slowdown in the sector made developers change their strategy. Instead of building premium class houses and apartments, where the profit margin used to be high, they turned towards constructing affordable apartments with low margins but in high volumes. Therefore, it would not be inappropriate to say that the new decade is starting with a ray of hope and opportunity. A number of townships are already being implemented. The Crossings Republic, which is being developed on the outskirts of Noida, has almost sold out. Besides that, a number hi-tech cities are being developed by DLF, Ansal, Omaxe, Unitech, Ireo and Vipul, among others. The improvement in road and rail infrastructure in the NCR will be a boon for the real estate development here.
The extension of the Metro Rail to Noida, Ghaziabad, Gurgaon and Faridabad will be of great import to push growth in the sector. There are talks to take the Metro even farther, which will provide greater impetus to the realty sector.
Courtesy:- ET dt:- 01-01-2010
The decade, which closed yesterday saw a rollercoaster ride - though it started off full of uncertainties and a negative outlook, it is ending on a note of hope and positive outlook. Despite a slow start in the first two years of the new millennium's decade, the real estate sector witnessed an unprecedented growth during the period. In almost all the major cities and towns of the country, real estate sector was on a highoctane drive, both in the capital values and in the construction activities.
The NCR region, in particular, was witness to a number of new areas being developed during the decade. Prominent among them, to the east of Delhi, are Indirapuram, Vaishali, Vasundhara, Raj Nagar Extension on NH-58, Crossings Republic, areas on NH-24 beyond Hindon, Noida Sector 44, 93A and B, and Greater Noida. Towards Gurgaon also a number of areas like DLF Phase II, III and V, Sushant Lok, MG Road, Sohna Road, Golf Course Road Extn have come up. Towards Faridabad, areas like Nahar Paar and Suraj Kund Road were in full bloom, while towards north, residential areas have been developed right till Sonepat.
Along with residential houses, retail commercial activities also witnessed a paradigm shift during the period. The advent of malls in particular, in the last decade, changed the way people shop in metro cities.
In fact, this decade has seen a momentous change in the mindset of the people of NCR. Till 2003-04, people's first preference used to be a house in Delhi, even if one had to compromise on space and other amenities. But, with the development of condominiums having amenities like swimming pools, gyms, car parking and hi-tech security gizmos, things have changed. You will find apartments being sold for Rs 3 crore in the suburbs. Because of the lifestyle that new condominiums are offering to residents, many people now prefer to buy houses in the suburbs. Between 2003-04 and 2007-08, economy continued to grow in the region at 8%. Even, in 2008-09, which was badly affected because of the global slowdown, the GDP grew at 6.7%. In the current year also, as per the government's projection, economy should grow at around 7.75%. The per capita income of an average Indian during the decade more than doubled in the first nine years - from Rs 15,881 to Rs 37,490 - at the current price. The easy availability of home loan coupled with fall in the interest rates further fuelled growth in the sector. At the same time, the rise in the interest rates in 2007 and 2008 to over 12% per annum affected the affordability of buyers, which affected the sector badly. The onset of global financial crisis in September 2008 brought real estate sector to almost a grinding halt. As the crisis affected global economy, with developed countries going into recession, it was thought that India would also face a similar fate. But, timely action of the government in providing a stimulus package to the economy, coupled with the lowering of the interest rates, put the economy back on the revival path.
With this, the real estate sector also gained momentum in 2009. The good thing is that the slowdown in the sector made developers change their strategy. Instead of building premium class houses and apartments, where the profit margin used to be high, they turned towards constructing affordable apartments with low margins but in high volumes. Therefore, it would not be inappropriate to say that the new decade is starting with a ray of hope and opportunity. A number of townships are already being implemented. The Crossings Republic, which is being developed on the outskirts of Noida, has almost sold out. Besides that, a number hi-tech cities are being developed by DLF, Ansal, Omaxe, Unitech, Ireo and Vipul, among others. The improvement in road and rail infrastructure in the NCR will be a boon for the real estate development here.
The extension of the Metro Rail to Noida, Ghaziabad, Gurgaon and Faridabad will be of great import to push growth in the sector. There are talks to take the Metro even farther, which will provide greater impetus to the realty sector.
Courtesy:- ET dt:- 01-01-2010
Friday, January 1, 2010
GATEWAY TO THE HOLY LAND
Owning a vacation home is a dream come true for many and if this home is in a holy place like Vrindavan or Mathura, it is for the best. Builders too are offering quality real estate here
Creative designs of smaller units abound in religious places. So, whether it is Vrindavan or Mathura, Haridwar or Rishikesh, there are innumerable examples of good quality studio apartments in each of these places. The reason clearly is a growing segment of religious and wealthy who desire a second/holiday home at these religious places with a manageable size house, which caters to their frequent but short visits, and becomes their retirement home in later years. Builders have understood this need and are offering the religious and wealthy group very easy-to-manage, semi- to fully-furnished small units in lovely gated communities. A case in point is a complex with 85% greenery and only 15% constructed area with 248 5-star fully furnished cottages, complete with designer furnishings and fittings, and each cottage equipped with microwave, refrigerator, LCD TV and airconditioned rooms. The campus has landscaped gardens and water features, amenities like club house and hi-tech gym, yoga and meditation centre, indoor swimming pool, spa and sauna and battery operated golf carts.
This is not a cut from the real estate of a developed country in the west but a boutique development in our own countryside, in Mathura, by a group called Shri Group. This creative project called Shri Radha Brij Vasundhara is at the feet of Govardhan Parvat and enroute the famous Parikrama of Govardhan Parvat. The project has onebedroom, two-bedroom and duplex cottages, each of which is fully furnished and "one has to just arrive with bag and baggage", says Sapna Aurora, manager of Shri Group. A one-bedroom, fully furnished cottage of 760 sq ft costs Rs 25 lakhs, a twobedroom cottage of 960 sq ft costs Rs 30 lakhs and a duplex costs Rs 35 lakhs. Sapna adds that there is a tremendous interest shown in these cottages by a specific group of people - the Iskon devotees - Lord Krishna bhakts, both from India and abroad, and NRIs belonging to Rajasthan and Gujarat. The concept is one of lifestyle living providing for a perfect ambience in the vicinity of the Lord; it has also been done up to attract nature lovers. "We have queries from Iskon followers from Ahmedabad to New Zealand and 70% of the project is sold out," says a spokesperson.
Omaxe group has launched Omaxe Eternity, a project of on nearly 74 acres. The size of the built-up area is 425 sq ft, 840 q ft, 1100 sq ft and the rate is Rs 1,600 per sq ft + additional charges. The maximum demand in a place like Vrindavan is for studio units and as per Rohtaz Goel, religious tourism is the key driver of Vrindavan real estate and for that matter for any religious place, though actual residents too buy apartments, but preferring bigger units. These units are available in a price band of Rs 7 lakhs to Rs 17 lakhs and is high on features like a yoga and meditation centre, central park with musical fountain, large open green spaces, local shopping area, wide roads with ample parking spaces, provision for schools within the complex, gated entry-exit and security arrangements, kids park and play area, recreational centre, restaurant facility.
NRI Greens by Shri Group has semito fully-furnished units available in the Rs 9 lakh to Rs 19 lakh price band with sizes varying from 460 sq ft (studio) to 850 sq ft (one bedroom) and 1,058 sq ft for a two-bedroom unit. The project will provide facilities like pool, billiards, gymnasium, sauna bath, clubhouse, Jacuzzi, spa, and separate kids area.
On an average, land cost at Mathura is Rs 8,000/sq yard while at Vrindavan it is Rs 12,000/sq yard and the unit cost of apartments at Mathura is Rs 1,200/sq ft and at Vrindavan Rs 1,700/sq ft.
Courtesy:- ET dt:- 01-01-2010
Creative designs of smaller units abound in religious places. So, whether it is Vrindavan or Mathura, Haridwar or Rishikesh, there are innumerable examples of good quality studio apartments in each of these places. The reason clearly is a growing segment of religious and wealthy who desire a second/holiday home at these religious places with a manageable size house, which caters to their frequent but short visits, and becomes their retirement home in later years. Builders have understood this need and are offering the religious and wealthy group very easy-to-manage, semi- to fully-furnished small units in lovely gated communities. A case in point is a complex with 85% greenery and only 15% constructed area with 248 5-star fully furnished cottages, complete with designer furnishings and fittings, and each cottage equipped with microwave, refrigerator, LCD TV and airconditioned rooms. The campus has landscaped gardens and water features, amenities like club house and hi-tech gym, yoga and meditation centre, indoor swimming pool, spa and sauna and battery operated golf carts.
This is not a cut from the real estate of a developed country in the west but a boutique development in our own countryside, in Mathura, by a group called Shri Group. This creative project called Shri Radha Brij Vasundhara is at the feet of Govardhan Parvat and enroute the famous Parikrama of Govardhan Parvat. The project has onebedroom, two-bedroom and duplex cottages, each of which is fully furnished and "one has to just arrive with bag and baggage", says Sapna Aurora, manager of Shri Group. A one-bedroom, fully furnished cottage of 760 sq ft costs Rs 25 lakhs, a twobedroom cottage of 960 sq ft costs Rs 30 lakhs and a duplex costs Rs 35 lakhs. Sapna adds that there is a tremendous interest shown in these cottages by a specific group of people - the Iskon devotees - Lord Krishna bhakts, both from India and abroad, and NRIs belonging to Rajasthan and Gujarat. The concept is one of lifestyle living providing for a perfect ambience in the vicinity of the Lord; it has also been done up to attract nature lovers. "We have queries from Iskon followers from Ahmedabad to New Zealand and 70% of the project is sold out," says a spokesperson.
Omaxe group has launched Omaxe Eternity, a project of on nearly 74 acres. The size of the built-up area is 425 sq ft, 840 q ft, 1100 sq ft and the rate is Rs 1,600 per sq ft + additional charges. The maximum demand in a place like Vrindavan is for studio units and as per Rohtaz Goel, religious tourism is the key driver of Vrindavan real estate and for that matter for any religious place, though actual residents too buy apartments, but preferring bigger units. These units are available in a price band of Rs 7 lakhs to Rs 17 lakhs and is high on features like a yoga and meditation centre, central park with musical fountain, large open green spaces, local shopping area, wide roads with ample parking spaces, provision for schools within the complex, gated entry-exit and security arrangements, kids park and play area, recreational centre, restaurant facility.
NRI Greens by Shri Group has semito fully-furnished units available in the Rs 9 lakh to Rs 19 lakh price band with sizes varying from 460 sq ft (studio) to 850 sq ft (one bedroom) and 1,058 sq ft for a two-bedroom unit. The project will provide facilities like pool, billiards, gymnasium, sauna bath, clubhouse, Jacuzzi, spa, and separate kids area.
On an average, land cost at Mathura is Rs 8,000/sq yard while at Vrindavan it is Rs 12,000/sq yard and the unit cost of apartments at Mathura is Rs 1,200/sq ft and at Vrindavan Rs 1,700/sq ft.
Courtesy:- ET dt:- 01-01-2010
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