In the budget for 9-months last year, the new government had stressed on the vision for making housing more affordable. What is the real estate sector in India expecting from the Budget 2015-2016. Let’s have a look:
Provisions to boost affordable housing:
In the budget last year, the new government had stressed on its vision to boost affordable housing. In the 2015-2016 budget, the real estate sector is expecting provisions to be provided by the government to the developers for making housing more affordable.
Offer incentives to develop green real estate:
The upcoming budget is expected to let the consumers clearly know the benefits of green real estate in the country. The residential real estate developers need much more encouragement for going green. Since the buyers of homes in India are not quite ready to pay extra premium and don’t fully understand the concept of a sustainable residential project, even the developers are averse to enter this segment. The Union Budget this time is expected to offer incentives to boost the development and consumption of sustainable real estate development in India.
Tax incentives for renting out residential properties:
For improving the supply of rental properties in metros and boosting the rental pan-India housing segment the Union Budget is expected to offer tax incentives on rental income. Presently, rental income is treated just like any other taxable income. Tax incentives is required for more residential properties to be rented out.
Speeding up project approvals:
The developers in India have been demanding for speeding up the project approval process. Quicker approvals are expected to widen the supply pipeline, which would in turn help in reducing the prices and ensuring real estate sector’s rise from the slump it has been in lately. The budget is expected to take measures for speeding up the approval process along with measures to ensure quality norms of construction are not compromised resulting in infrastructure failure for new projects.
REIT Fast Tracking:
Political instability, red – tapism and lack of apt regulations had kept the Indian real estate market away from foreign investment funds. The new budget has a great chance to make India friendlier towards foreign investment by introducing a revised tax code. Overcoming the tax counter-productive hurdles is very important for REIT, which can become an absolute booster for the overall economy and the Indian real estate sector.
Real Estate Regulatory Bill Implementation (RERA):
The RERA bill is expected to be implemented this time since the approval for the Real Estate Regulatory Bill has been delayed for quite some time now. With the implementation of the bill the Indian real estate sector is expected to be more open to the investors from foreign countries. This policy is an absolute must for the growth of the Indian realty sector.
LARR counter-productive clauses to be relaxed:
Land Acquisition, Rehabilitation and Resettlement (LARR) Act has been formulated and has been changed again and again for quite some time now. However, it has failed to deal with land bureaucracy. Currently, the LARR Act deters the developers and institutional investors’ big time. The realty sector in India wants to desperately cross this hurdle as a lot of land is required for infrastructure and real estate development. With the Union Government’s vision of affordable housing and development of 100 smart cities across India, the Budget should make suitable changes to the LARR Act.
The real estate sector is looking forward to some major reforms and reliefs from the Union Budget 2015-2016. Let’s see how much expectations this budget can meet for the Indian realty sector.
“To keep or not to keep the pet, that is the question.” Every pet owner asks this question to himself before buying or renting a house in an apartment today. With the mushrooming growth of the apartment complexes in India, it’s quite common to hear stories of how pet owners on one fine day find a letter taped on the notice board of the society (on behalf of apartment association) of how pets are banned and they should either abandon the pet or vacate the apartment.
As per an advocate practicing at Delhi High Court and Supreme Court of India, the apartment associations and RWAs of apartment complexes cannot legislate and pass such decisions and abstain citizens from their rights to own a pet. It is unlawful and a form of harassment if the RWA is following such practices.
Let’s have a look at the do’s and don’ts that an RWA should take care of for building a harmonious community:
Request pet owners to always keep their pets on leash.
Issue guidelines to clean after their pets in case they are soiling the common areas and lifts.
Set timings for pets to use the park area when small children are not playing so that there is no calamity.
Put gentle reminders for pet owners to vaccinate their pets on a regular basis.
An apartment management association cannot ban any resident from keeping a pet even if the majority votes for the same.
RWA cannot comment on the size of the pet to be kept in the apartment.
The pets cannot be banned to use the lifts.
Pets cannot be banned to use common areas and park area.
On the other hand, it is important for the pet owners to understand their responsibilities towards the other residents so that the community living is harmonious for both. The pets should be trained in such a way that they should not be provoked when seeing other residents or children. Ensure they are always on a leash in common areas and are properly vaccinated. At the end, your pets should not become a nuisance for everyone else living in the apartment. Proper walks for your pet, food and water at the right time and lastly, love and care will help it remain healthy and content. Keeping a pet is not easy, so in case you do plan to keep one, make sure you are very disciplined yourself as a little carelessness on your side towards your pet can cause a huge ruckus in your entire apartment complex!
So, for all you aspiring pet owners out there, don’t be afraid to get yourself a pet today, but remember it’s a great responsibility that you need to carry out diligently every single day.
Haryana Government is now focusing on the lower and middle segments of the society and trying to make homes affordable for them by fixing the home prices.
As per the government, no builder is now allowed to sell affordable homes at a rate of more than Rs. 4,000 per square foot in Faridabad, Panchkula and Gurgaon, which are the high potential zones. In the medium potential zone such as Jhajjar, Mahendargarh and Rewari, the rates have been set at Rs. 3,600 per square foot.
A source from the Town and Country Planning department revealed that 34 licenses have been granted by the Haryana state government till now for affordable homes specifically in the Gurgaon circle, with 2 in Rewari, 9 in Sohna and 23 in the Gurgaon city.
Nearly, 20,000 homes are expected to be built under the affordable housing projects as 23 licenses have been granted in the Gurgaon city.
About 46 affordable projects have been approved all across Haryana, with 2 in Panchkula, 2 projects in Rohtak circle and 2 in Panchkula.
Since the house aspirants are exponentially higher than the affordable homes planned and sanctioned by the government, the flats will be allotted under the lucky draw system.
Typically, a 2–BHK flat in Sector -69, Gurgaon should cost somewhere between Rs. 18.66 lakh – Rs. 19.50 lakh and a 1-BHK flat would cost somewhere around Rs. 15.69 lakh p.a.
With the properties now becoming affordable, the middle class and lower middle class strata of the society can also plan to buy a house in a location like Gurgaon. The stand taken by the government is truly beneficial for the economically weaker section of the society.
The corporates in Delhi/NCR region are generally in a fix to choose between Gurgaon and Noida to set up their offices. Most of them choose Gurgaon due to its airport proximity. However, with the new airport coming up at Jewar, Yamuna Expressway near Noida, the tables might turn drastically.
Sources from a property research firm revealed that the new airport might help in boosting up the sales of the region, which have been showing a downward trend in the past few years. Noida has been losing out quite a bit since it was not in close proximity to an airport. The new airport is expected to increase the demand for offices in Noida, which in turn will increase the demand for homes.
An architect and town planner, Hafeez Contractor revealed to Economic Times – “A new airport transforms an area. Noida and its surroundings could get transformed from a poorer suburb of Delhi to an affluent one. A new airport near Noida will change the face of the area. Roads will change and get lit up, law and order will improve, hotels will come up and the area will get cleaned.”
Bengaluru seemed to experience a similar activity in the past. People were apprehensive about the launch of the new airport 20 kms away from the main city. However, today the main city seems to be moving towards the airport with immense development taking place in the areas nearby to the Bengaluru airport. The new airport at Jewar is expected to improve connectivity and encourage tourism in Mathura and Agra due to its strategic location.
Quite a few developers such as Jaypee, Gaursons, ATS and SuperTech have commenced real estate projects on the Yamuna Expressway in the last few years. Currently, there would be around 30,000 apartment units under construction. The sales were showing an upward trend in the initial years, after which there has been a major slowdown. The announcement of the new airport has now stirred up some movement in the new Yamuna expressway area.
The demand for affordable properties is seeing a continuous upward trend in the Indian real estate market. However, homebuyers are expecting the property prices to decrease in the next 6 months.
This was revealed in the buyer sentiment survey jointly carried out by Magicbricks and IIM Bangalore in Pune, Noida, Mumbai, Kolkata, Hyderabad, Gurgaon, Delhi, Chennai, Bengaluru and Ahmedabad.
The Housing Sentiment Index (IIMB-Magicbricks HSI) forecasts that homebuyers expect real estate prices to drop in the period of next 6 months. Overall, the aggregate HSI (Housing Sentiment Index) measured across 10 cities dropped sharply by 29%.
As per the survey, soaring prices, circle/guidance rate and high inventory levels were some of the reasons for this sentiment.
The home consumer loans and EMIs are also expected to ease a bit with Reserve Bank of India cutting its key policy rate by 0.25%. The bank base rates are expected to be cut down by March and reduce the lending rates. The realtors expect the demand for affordable properties to go up with the change in the RBI repo rates.
The trend of buying holiday homes in the outskirts of a city far away from maddening crowds and the jarring sounds of car honks is quickly picking up in India. Most of us love the idea of owning a house on the beach or a hill station. However, buying a holiday home is certainly not something a person with an average salary would do. Neither someone looking for his first home will buy a holiday home as his first house.
Mostly people who are interested in buying holiday homes are people with surplus investments after buying 1-2 houses in major cities of India. This segment of people is definitely expanding. Points to remember before buying a holiday home:
Take a well-thought decision:
Buy a holiday home, only if you have cash to spare! In case, you are planning to buy a house since your family is growing or your kids need a garden to play in, go for a bigger house and not a holiday home in a remote location. If more than living, monetizing your holiday home is on your mind, then maybe you are on the right track. The purpose of buying a holiday home should be absolutely clear in your mind before you take the buying decision. After all you don’t want your dream holiday home to burn a hole in your pocket with you realizing it too late that you took the wrong decision of purchasing it!
Choose the right location:
Even though you want to buy a holiday home away from the hustle bustle of the city, you should ensure that you don’t buy your home in a very remote location. Your holiday home should be close to essential facilities such as markets, hospitals and eating joints etc. Moreover, in case the holiday home is your second home ensure its not very far away from your current home so that you can easily visit and keep a check on the new house. Ensure you buy a property only in areas which have high growth potential.
Return on Investment:
Every investment needs to generate good returns to make it worthwhile! If you buy a holiday home in a good location, the appreciation will be higher, which will make it lucrative if you are looking towards reselling it or renting it. The best deal you can crack and earn some good returns is by renting the property whenever you are not staying in it. The additional income will help you in maintaining the second property and will also help you avoid situations wherein your holiday home is vacant for a very long period of time.
Cost of Taxation:
Your holiday home is not going to be tax free. Make sure you are all set to pay taxes on your second property. In case, you sell your holiday home within a period of 3 years of purchasing it any capital gains arising from the sale of property will be taxable.
Maintenance of a home away from home is definitely not easy. Maintaining a holiday home on a regular basis needs quite a bit of extra cash since you need to hire the right set of people to take care of the same. Moreover, reselling sometimes becomes a problem since not everyone requires a holiday home so the number of buyers comes down. Security is also a problem in holiday homes situated in interior or remote locations.
In case, you have analyzed all the above pointers and are quite sure that you want to buy a holiday home, what’s stopping you? Go ahead and buy one for yourself and enjoy your vacation in your very own holiday home!
ApnaComplex.com – India’s leading platform for Apartment Management announces exclusive partnership with HomeConnectOnline.com – India’s first of it’s kind market place for lifestyle services.
With this partnership, ApnaComplex would be able to offer 600+ local services to residents of Apartment Complexes and Gated Communities using ApnaComplex platform. Apartment Owners and Residents would benefit from this partnership as they get exclusive attractive discounts and unique services not found otherwise easily. The partnership also provides HomeConnectOnline.com a ready user base of over 100,000 homes who can avail the services offered.Benefits due to bulk orders from the same community to a local service provider shall be passed back to the apartment residents by HomeConnectOnline as discounts or as reward points that can be redeemed or even reduce the maintenance dues to be paid to the society!
Raja Sekhar Kommu – ApnaComplex.com co-founder says, “We are always committed to leverage technology for benefits of Apartment Owners, Residents and Managing Committees. We are a leader in innovating in this space with our solutions like Tablet based Help desk, Gatekeeper for Apartment Resident ID and Visitor Tracking apart from several other Society Accounting features. The partnership with HomeConnectOnline.com is yet another innovation that our customers will truly benefit from. Sourcing quality Service Providers and bringing them online onto a platform, ensuring connect between consumer and the provider of the services is a specialist work and requires a different organisation mindset and the culture. By partnering with HomeConnectOnline.com, we are now able to offer these services to our customers while we continue to focus our energies on providing more solutions to Managing Committee members for Better Apartment Management. Its best of both worlds to our customers and we have no doubt they will benefit through this.”
Naveen Lakkur, CEO of HomeConnectOnline.com says, “with the mission of ‘Love All – Serve All’, HomeConnectOnline.com has evolved as an online platform for a householder to explore and engage with lifestyle services. We asked 100’s of young householders living in an apartment and we learnt from them that most of their household time went in looking for lifestyle services, predominantly in the Health, Wellness and Wellbeing segments. These services are highly fragmented, unorganised and they are local. Taking a pragmatic approach,HomeConnectOnline.com has been able to bring onboard interesting and useful services such has organic square foot balcony gardening, nursing at home, kids skill development programs, getting a new cooking gas connection, getting a dental care treatment at home, organising a bhajan program at home or connecting with a vastu expert to name a few. In essence, I believe the combination of ApnaComplex.com and HomeConnectOnline.com is a twin power creating convenience to householders living in an apartment.”