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villa verve
Tricky proposition
Well-maintained is well built
Launch Pad
The tech advantage
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villa verve
We are living in an era where everything is readymade. End customer is the king and he wants everything to be served to him on a platter. The customer simply wants a 'one-stop' solution. Cashing in on these sentiments the mandarins of real estate industry too have started offering ready-to-move in residential solutions to clients and villas are among the top end choices in this regard. "We are living in jet age, where time is money. People these days neither have the time nor the patience and expertise required to construct a house. Thus, these ready-to-move-in villas being offered by the developers are the best option for them", observes Hardish Sharma of Marigold Infra, a real estate broking firm.
Traditionally, villas are luxurious homes sitting pretty amid vast tracts of farmland or open space. But with land becoming scarce, developers have given a new definition to the concept. Thevillas on offer in the region are mostly part of the integrated master planned community. These have ample space and latest amenities and give an opportunity to buyers to own a place of their own in an uncluttered environment.
Why villas
"A penchant for style backed by a passion for grandeur has been drawing people towards owning luxury homes and villas", says Rajiv Gupta, General Manager, Punjab & International Sales, Emaar MGF Land Ltd. Real estate companies can easily afford international architects which is difficult for an individual constructing on his own.An individual would definitely lack that finesse plus at times the styling can be a bit monotonous, adds Gupta. Sourcing a villa is also a comparatively cheaper option than constructing a house with same measurements and with similar furnishings. "See big companies work on the economies of scale, they source the land in bulk and they also source the raw material in bulk. As such their aggregated cost is comparatively less if the same material is used to construct a single unit. Bulk purchase is always a cheaper option", observes GPS Waraich of BN Habitat. Giving these custom-made solutions makes sense for the builders also. It prevents any investor related speculative activity. "See in villas the end customer is tangible. We do not have much investor activity over here, since it is difficult to buy and forget it till profit margins swell as shelf life of villas is limited. An investor does not invest in a villa as it is a finished product and keeping it locked would cause damage to the property. Interestingly, villas prevent a township from becoming ghost townships", informs R S Gill of Gillco Developers. Villas interest that section of customers who do not want to undergo the rigors of constructing a house but want some kind of a land parcel registered in their name. "Considering the urban lifestyle pattern, villas have gained immense prominence in today's times. Also the extra tinge of luxury which these add to one's residence make these popular among many families today", says Rakesh Gupta, Director of the RPS Group. The migrating population is another strong customer base for villas. As people from far flung areas of different state move to bigger cities in search of better lifestyle, they have the funds but they don't have the local know how about constructing a house. So a villa is an answer to their predicament. "Most of my villas have been purchased by people from Abohar, Fazilka and Ferozeporer side since most of the good families over there have their children either studying or working in Chandigarh", says Gill. Range & choices Most developers are offering high standards of furnishings to their buyers. From vitrified floor tiles to world-class interior designs and private roof top terraces are some of the furnishings which are being provided by the developers. Rajiv Gupta, General Manager, Emaar MGF, explains "The villas in our project Mohali Hills is an attempt to redefine luxury living.
Price Index
PANIPAT Please note: The prices may vary as per the size of the plots and location, and are subject to change from time to time. Source: Nirmal
Infrastructures. Mohali nirmalinfrastructures@yahoo.com
A walk down the 'Street of Dreams' reconfirms the splendid lifestyle that these stand for. Designed by California based Bassenian Lagoni architects in three different architectural styles - Spanish, Andalusian, and Mediterranean". These villas come with the option of being fully loaded with even linen being provided by the developer. So one can just move into these ready-to-live in homes with just personal belongings and clothes. ATS Golf Meadows in Dera Bassi, too, has two-storey villas in 350 and 500 sq yd in Mediterranean style. "The spaces in the villas have been carefully designed keeping the needs of a family in mind. They also have all modern facilities like modular kitchens, marble flooring, air-conditioning and are fully e-enabled with the latest technology", says Soumik Bandyopadhyay, CEO, ATS Group. Modular kitchens, wooden flooring in bedrooms and part of the flooring in DD of imported marble, with the addition of owning a house in an uncluttered environment are some of the high points associated with life in the villas. The price range, however, varies according to the facilities provided. Venetian Villas, which are under construction in Sector 112, Mohali where each unit is of 192 sq yd with 3,000 sq. ft of built up area are priced at Rs 75 lakh. "We wanted to give our clients a cost effective built-up solution. Actually, it is value for money", informs N.B Singh of Manohar Singh and Co, the group that is constructing Venetian Villas. In Emaar MGF the plot size is 300, 400 and 500 sq yard with ground, first and second floors and the villas come with a price tag of between Rs 1.25 crore and Rs 2 crore. Villas in Gilco Valley are priced at Rs 65 lakh now. As per R.S Gill, the moderately priced duplex villas can even house two families. "I have purchased a combined property with my brother. We are enjoying the benefits of a joint family, yet having space of our own", says Aman Sharma who has booked a villa for himself in TDI City.
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tax tips S. C. Vasudeva Q. I have sold a residential property in India. As per the Income Tax Act, 1961, I am liable to pay tax on long-term capital gains. I get exemption from this tax in case I purchase another property within a period of three years. I do not have any other residential property in India. Please clarify whether this exemption from long-term capital gains tax will be available in case I buy a residential property outside India, say in Australia. If so, under which Section of the said Act? — Anand Prakash A. The capital gain arising on the sale of a residential house can be utilised for the purchase of another residential house within a period of one year before or two years after the date of such sale. The exemption is also available in case the residential house is constructed within three years after the date of sale. The relevant Section also requires that in case a residential house is not purchased or constructed before the due date of the filing of IT Return, the amount of capital gain should be deposited in a bank under the capital gains scheme account. The amount so deposited can thereafter be utilised for the purchase/construction of the residential house within the period as stated above. The question with regard to the purchase of property outside India is not free from doubt as there are conflicting decisions on this issue. Mumbai Bench of ITAT in Mrs. Prema P. Shaw vs. ITO (100 ITD 60) has held in favour of this proposition on the basis of provisions of Section 54 of the Act. However, Ahmedabad Bench in case of Leena J. Shah vs. ACIT Baroda (6 SOT 721) has held that the benefit under Section 54F of the Act would be allowable only if the property is purchased in India. Section 54F of the Act applies to the utilisation of net consideration arising on the sale of capital asset other than the residential house towards the purchase/construction of a residential house. In this case the Hon'ble Tribunal relied on the circular of the department issued at the time of introduction of Section 54F of the Act which clarified that Section 54F of the Act is being introduced to encourage construction of houses. In view of these two conflicting decisions, the purchase of house in Australia may involve litigation.
Date of sale deed
Q. I purchased a property in 2005. Though the sale deed was executed in 2005, the physical possession was taken in July, 2008. Which year (2005 or 2008) would be considered for calculating long-term capital gain. Please also comment regarding the indexation benefit. — Deepali Batra A. You will be considered owner of the property from the date on which the sale deed was executed in your favour. Therefore, in case the sale deed in your favour was executed in 2005, you would be considered its owner from 2005. Indexation benefit is available for computing the amount of capital gain on the sale of a capital asset. Probably you are interested in selling the property purchased in 2005-06. In such a case you would be entitled to claim indexation benefit from 2005-06 up to the year of sale. The date of possession in this case should not be relevant for claiming the indexation benefit.
Strong WILL
Q. I have purchased a plot in a city and also taken a bank loan for construction of house. My wife is not living with me for the past 15 years. I have one daughter who is living with her since her birth. My wife and daughter are living with my in-laws. My wife is getting maintenance for herself and my daughter from me as per court orders. Since she is being paid maintenance by me, I want to debar both of them from my property. Can I make a Will in the name of a third party? In that case, what should be the contents so that it is legally valid? — K.K. Swaroop A. You have all the right to make a Will in favour of anyone in respect of self- acquired properties. The law does not prohibit making a Will in favour of someone who is not one of the relations of the Testator. However, it will be better to get the Will registered and properly witnessed. The Will should specifically state the fact that both the wife and the daughter are debarred from inheritance stating the reasons for such an action. It is not possible to reproduce the contents of a Will on account of the constraint of space.
Loan from relatives
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I want to take loan from relatives to purchase property. What process should I follow and would this count for my home loan interest subsidy?
n Can such a loan be taken for property which I will purchase on the General Power of Attorney (as Administration has currently stopped transfer of property in our city)? n
The seller wants a portion of premium to be paid in cash. As my source of money would be clean, is there any implication for the buyer in such a case? — Radhey Shyam A. Your queries are replied hereunder: n
A loan from a close relative should be taken by an account payee cheque. A letter confirming the grant of loan indicating the Permanent Account Number of the person from whom loan has been taken should be obtained. If the loan is interest bearing, the letter should specify the rate of interest and terms of interest payment. The interest paid/payable on such a loan would be allowable as a deduction against the income from house property provided evidence in this regard is available and if so required, can be provided to the tax department. n
The interest on loan taken for purchasing a property on Power of Attorney basis should be admissible as deduction under Section 24 of the Income-tax Act, 1961 (the Act) against the income from house property provided the possession of the property has been taken by paying part consideration towards the purchase of the property. n
It would be advisable to make the entire payment by an account payee cheque for the purchase of the property. Even if the payment has to be made in cash by you, it should be recorded in the documents executed for the purchase of the property so as to form part of the total consideration payable for the purchase of the property.
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Ground Realty
Most Indians have a fascination for large sized houses. In spite of high property prices those who can afford big houses go for as big a house as their budget allows. Crores of rupees are spent on construction and interiors, best specification materials are chosen, houses are completed and inaugurated with much fanfare. But when it comes to the maintenance part the whole enthusiasm seems to evaporate. It, no doubt, is difficult to maintain a large house. It needs constant endeavour as well as meticulous planning. It is no use building a big and a beautiful house unless its maintenance is ensured. Also, while the major maintenance points like re-painting of the house are often attended to, it is the small and minor points which are ignored usually and make a "big bad impression". Some of the neglected points often noted in big houses and bungalows are explained this week:
Leaking taps Nothing can be more criminal and disturbing than a leaking tap. These days the stress is on water conservation. Yet taps are often found leaking. A simple washer change makes them leak proof. No tap should ever be allowed to leak or drip unnecessarily. Misaligned jets The jets on water closets have become the most preferred option these days. These are overtaking telephonic showers provided near the seats. However, these jets are often found misaligned thereby defeating their very purpose. The jets get misaligned due to rough handling during the cleaning of the seats by the sweeper. Their re-alignment takes no time. These just need to be attended. Noisy exhausts With time, the exhaust fans provided in the washrooms or kitchens become noisy. Dirty soap dishes Howsoever costly CP fittings one may have chosen for the bathrooms, if the soap dish looks dirty with soap stuck to its inside and outside, the CP fittings will lose their impression. The soap dishes should be chosen carefully and such ones should be preferred that get drained automatically. Liquid soap containers are more preferable. Leaking door closers Door springs are a thing of the past these days as these make loud sound each time a door is opened or closed. Door closers are preferred these days. However, leakage of hydraulic oil from door closers is a big dampener. Leaking hydraulic oil leads to ugly patches on the floor and give a shabby look to the door closer also. Inferior quality door closers mostly have this problem. The house owner should seek guarantee against leakage while buying these closers. In any case, a leaking door closer should be got repaired immediately by calling the company's authorised reps. Dirty fans Accumulation of dirt on the blades of fans hung in the bathrooms and other rooms is the most common feature in houses. It speaks volumes about the attention paid by the house owner to cleaning the house. House owners should devise a schedule and make it a point to keep the fan blades clean. Ill-hung paintings Costly textured paints or chic wall papers lose their effect if the paintings hung on them are ill aligned. Every painting should be viewed carefully from a distance after hanging it on the wall and made truly horizontal. In a big house, even the jumbo sized LCD was found hung with top right corner protruding upwards! The carpenter should be warned to be very careful while marking the points for drilling to drive rawl plugs. Later, it may not be possible to make the hangings truly horizontal as the screws driven in the wall can't be moved. Stained switches Costly modular electric switches are purchased and provided by the house owners in their houses. Thereafter, their cleanliness is simply forgotten. Stains of multiple types are often noted on these switches. Cleaning of electric switches at regular intervals should also figure on the maintenance schedule of your house. Rough sliders Sliding doors provided on the cupboards or in the rooms run like a bullet when newly provided. Later, dirt and foreign material is allowed to accumulate in their channels, making the running of rollers difficult. The channels should be cleaned. Take care of these points and have a blissful living. (This column appears fortnightly)
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Launch Pad
Ansal Properties and Infrastructure Limited has launched Group Housing "The Fernhill" in Sector 91, Gurgaon. The project is being developed on a Joint Development Agreement aggregating to developable area of 14 acres. These are high rise buildings consisting of 2 BHK, 2BHK+Kids Room, 3 BHK & 4 BHK apartments. The sizes of the apartments are in the range of 1348 sq.ft. to 2321 sq.ft. The project has been launched at Rs 2795 per sq ft with an inaugural discount in the range of Rs 100 to Rs 200 per sq ft depending on the size of the apartment.
Unihomes in Ambala Unitech Limited recently launched the first phase of its affordable housing project Unihomes in Ambala. The project, which will be launched in phases, is a part of around 150-acre Unitech township project in Ambala. The first phase of this project is offering 300 residential units to buyers. Unitech introduced affordable housing as a product offering under the "Unihomes" brand in 2009 as part of its strategy to expand its product offering and achieve leadership in the Residential Housing segment. The Phase 1 of Unihomes, Ambala, comprises two and three BHK independent floors (Ground Floor + 2 levels) in sizes including 953 sq ft and 1,646 sq ft. Speaking on the occasion Routhu Nagaraju, Vice President, Unitech said, "This project is part of our strategy to launch 10 million square feet in the coming months. We will be investing Rs 75 crore in the first phase of the project and plan to invest Rs 2,000 crore in the affordable housing category in the current financial year. Florence City Ansal Buildwell Limited(ABL) and Nitin Mahajan developers recently launched Ansal Florence City in Pathankot. Ansal Buildwell is the first major real estate developer to enter Pathankot. Strategically located on Secular Road, Abrol Nagar, the modern and elegantly designed township offers desired comforts and luxuries. This 200 cr project will house 270 villas. Speaking on the launch of the project Ranjeev Kalia,head Sales and Marketing of Ansals Buildwell Ltd., said, “Being a virtual gateway to J&K and Himachal Pradesh, the real estate in Pathankot has reflected a positive trend. Good infrastructure coupled with natural scenic beauty has generated good housing demand in the region”.
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IN CONVERSATION
Technology-driven solutions are gaining ground in the Indian realty sector as the number of end users familiar with Internet usage has increased manifold in the past few years. This has opened up new vistas for the sector as well as entrepreneurs who have come up with innovative ideas to add new dimensions to the process of buying and selling property. Kshitij Miglani is co-founder and director of Bangalore-based company that has come up with India's first online application that provides a login/user interface to buyers. Homebuy360 (live in Bangalore, Pune and Mumbai) and Homefind360 are technology platforms built on a SaaS (software as a Service) model that connects real estate builders, its buyers and also offers intelligent property search options. He talks about new trends in this field: Why does the real estate sector need innovative technology? Owning a home or property involves two steps. First is to "find" the property and the second is to "buy" it. Sometimes finding a suitable property becomes a nightmare and a cumbersome process as buyers don't get enough relevant information to make a confident choice. The second step of "buying" the property involves booking a residential unit, legal documentation, update on milestones, payment and taking possession. Presently this whole process is highly manual and unstructured. There is a huge value that technology can add to the two steps of finding and buying a property. There are several websites that the buyers can use for realty deals. How useful are these sites? For finding the property, there are several Internet websites. These websites can broadly be put in three categories — Banner sites, Listing sites and Search sites. Most of the popular property sites today are "Banner sites" which are full of advertisements and banners of projects and builders. These sites may not present the relevant information in a simple manner to help a potential homebuyer identify the right property. "Listing sites" are less cluttered and simple to navigate. However, the information provided on these is very basic and helps prospective buyers only if they know what exactly they are looking for. The "Search site" paradigm is different. Search sites should have Google-like simplicity in user interface, information that matters for selecting the property and technical superiority to appeal to buyers' needs. What new concept does your website offer to buyers and builders? www.homefind360.com is a new upcoming concept and driving innovation in property search space. Here a prospective buyer can write free text in a Google-like bar such as "3bhk apartment close to MG road for less than 80L" and the results would be displayed along with information on which schools, hospitals, companies, metro stations are close by and other information that helps make a choice. The results are sorted by a proprietary algorithm that takes into account property price, quality of project, experience of the builder, location, legal perspective and much more. As far as the step of buying property is concerned, the use of technology is very limited. Less than five per cent of builders today use technology solution or ERP for booking, document creation, collection, email and sms notifications, buyer issue handling. These solutions are provided by small companies and address only a small part of the problem for the builders. There is a need of a cloud-based ERP that can help them manage all the interactions and transactions such as booking, documentation, collection, customisations and handing over and help them manage their work with lesser staff and provide a wonderful and transparent experience to buyers. This application, on the buyer side can provide a home account to buyers where they can login through Internet and check the progress and status of allotment letter, agreements, milestones, payments, dues, issues, customisation requests real-time. Buyers should be able to see in their home account which banks have approved the project and make it easy for them to get home loan. www.homebuy360.com is working towards this and it is a win-win proposition for both builders and buyers. Builders can set-up their project in less than seven days and start becoming efficient and buyer friendly by providing a home account to access over the Internet. What is the scope for technology-driven processes in the realty sector in India? Next 10 years are going to be transformational years for the real estate sector as it will grow by leaps and bounds. Technology is essential for the sector to sustain its growth, increase its productivity and to serve the customers better. This is a perfect opportunity for new breed of entrepreneurs to develop path-breaking technology innovation for the real estate sector. As told to Geetu Vaid
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We are living in an era where everything is readymade. End customer is the king and he wants everything to be served to him on a platter. The customer simply wants a 'one-stop' solution. Cashing in on these sentiments the mandarins of real estate industry too have started offering ready-to-move in residential solutions to clients and villas are among the top end choices in this regard. "We are living in jet age, where time is money.
Q. I have sold a residential property in India. As per the Income Tax Act, 1961, I am liable to pay tax on long-term capital gains. I get exemption from this tax in case I purchase another property within a period of three years. I do not have any other residential property in India. Please clarify whether this exemption from long-term capital gains tax will be available in case I buy a residential property outside India, say in Australia. If so, under which Section of the said Act?
Most Indians have a fascination for large sized houses. In spite of high property prices those who can afford big houses go for as big a house as their budget allows. Crores of rupees are spent on construction and interiors, best specification materials are chosen, houses are completed and inaugurated with much fanfare. But when it comes to the maintenance part the whole enthusiasm seems to evaporate. It, no doubt, is difficult to maintain a large house.
Earlier, the concept in housing used to be "the more the merrier". Now it is the optimum utilisation of space. It is over here that the Villas score over the other built up properties. Having the latest facilities and international architectural design along with the luxury of having an independent house in well-planned integrated cities or projects has made many homeowners like Ravneet Brar to think about investing in a villa. "I have a 300 sq. yd house in Chandigarh. Its price is approximately Rs 4 crore. I think that it will be a wise decision to dispose it off and buy a villa being offered by one of the builders around Chandigarh since the built up space is the same. Moreover, a 300 sq. yd fully loaded villa is going to cost me somewhere around Rs 1.50 to Rs 2 crore so I will become cash surplus also". 
Q. I have some queries regarding the purchase of a property:
