REAL ESTATE
 


The scenic environs of the Shivalik foothills on the northwestern periphery of Chandigarh have become the hottest realty hunting ground for investors and realtors alike. While opening of bookings for GMADA's Eco City plots in the Mullanpur area has created a flutter of hope among investors, on ground the area is buzzing with activity with the major real estate developers like DLF and Omaxe, who have a sizable presence here, and some housing societies starting the development work on their sites. A visit to the area reveals deployment of workforce and heavy earth-moving machinery at the various project sites. These include the DLF project and Chandigarh Extension township and a commercial tower from Omaxe.

Star rating
There were numerous media reports of builders taking customers for a ride by not giving them what they had promised. There were also issues regarding poor quality of construction and delay on the part of the developers.

tax tips
NRI's home loan dilemma
I am an NRI and I have no income in India, but I do have a house loan on me and my dad (co-applicant), my dad has income in India. I also hold an NRI account of which there is a Tax deduction at source for Rs 20,000 in 2010 for my home loan (started in January 2010), I had taken a loan of Rs 55 lakh and of which in the first year I paid Rs 3 lakh over payment and monthly EMI is Rs 56,000, so till now in 2009-10 and 2010-11 the interest which I have paid is Rs 3 lakh and Rs 5 lakh approximately. Now can I get this TDS (from NRI bank) back by filing tax return? And also can I get the tax deduction for my home loan for the interest? Can I show the deductions in my dad's name as he is the co-applicant, also I do not have any other income in India?

REALTY GUIDE
Loan process
Q. I am working in a multinational company in Chandigarh. I want to purchase a property after taking a loan. In how many installments can the loan be disbursed? How much paper work is involved in this process?

Green house
Bonsai - II

The magic of miniature

While creating a bonsai the growth of the tree is not halted but guided to get a balanced, mature and an aesthetically looking dwarf tree. In a normal sized tree the pruning of leaves, branches and roots is not carried out, but all these activities are performed on the tree while creating a bonsai.

Shimla's unsafe buildings 
Not even two per cent of buildings in Shimla are safe and can withstand earthquakes of high intensity. This startling fact came to light in the recently-concluded monsoon session of the state Assembly.

UNDERSTANDING HOME LOAN TERMS
What is monthly reducing balances method? Borrowers benefit more from a loan that's calculated on a monthly reducing basis than on an annual basis. In case of monthly resets, interest is calculated on the outstanding principal balance for that month. The principal paid is deducted from the opening principal outstanding balance to arrive at the opening principal for the next month and interest is computed on the new, reduced principal outstanding. In case of annual resets, principal paid is adjusted only at the end of the year. Hence, you continue to pay interest on a portion of the principal that has been paid back to the lender.

REALTY BYTES
Grand Prix special
The newly launched “Jaypee Greens Golf & Spa Resort” , from Jaypee Hotels is all set to host special guests of the Formula 1 World travel during the entire duration of the Indian Grand Prix from October 28 to October 30, 2011. Situated at Jaypee Greens, Greater Noida, “Jaypee Greens Golf & Spa Resort”, offers 170 elegant rooms (152 deluxe room and 18 suites) with a world renowned Six Senses Spa.

Launch pad
Orris Infrastructure, one of the leading real estate companies of NCR has launched Aster Court Premier at Sector 85, New Gurgaon. The project is a perfect combination of luxury, elegance and comfort.

Realty convention on Sept 28
Estate World 2011, the 2nd Annual Global Convention for Property Brokers & Developers, will be held in Surajkund on September 28.

Sale
DLF, 3C may sell Noida IT park for Rs 500cr
India's largest realty firm DLF and green building developer The 3C Company are likely to sell their IT park in Noida to Infrastructure Development Finance Company (IDFC) for about Rs 500 crore.






 

Top

























 

At full throttle
Geetu Vaid

The scenic environs of the Shivalik foothills on the northwestern periphery of Chandigarh have become the hottest realty hunting ground for investors and realtors alike. While opening of bookings for GMADA's Eco City plots in the Mullanpur area has created a flutter of hope among investors, on ground the area is buzzing with activity with the major real estate developers like DLF and Omaxe, who have a sizable presence here, and some housing societies starting the development work on their sites. A visit to the area reveals deployment of workforce and heavy earth-moving machinery at the various project sites. These include the DLF project and Chandigarh Extension township and a commercial tower from Omaxe.

Development work in progress at a mega project in Mullanpur
Development work in progress at a mega project in Mullanpur

Reinforcing its commitment to deliver within the time frame of 18-24 months, DLF has started on-site development work in the first phase of its premium integrated township project, Hyde Park Estate. "The plots of sizes 350 and 500 sq yards were sold within days of the launch of the 117-acre Phase I of our township in March this year, and as we have all the necessary clearances, the development work is gaining momentum here now", says Mohit Gujral, Vice-Chairman, DLF. "Omaxe is almost ready to carry out the handing over process of its plots and the construction work on the independent floors is in full swing", said a company spokesperson.

In fact, over the past couple of years the area has become the hotbed of realty growth in Chandigarh's vicinity. Apart from the scenic beauty, proximity to Chandigarh is one of the biggest selling points of the area, which developers as well as investors have been cashing in on. Being projected as a modern-day avatar of Chandigarh, the Mullanpur area, which is being developed under a master plan approved in 2008, promises to have state-of-the-art health village, knowledge village and eco-tourism related activities. The township will also have a slew of recreational facilities like amusement park, spa village, open-air theatres, theme parks and lifestyle hub, and sports facilities. All mega projects coming up in the area will adhere to the master plan norms proposed by the consultants to the project, the Singapore based Jurong International.

Talking about the immense growth potential here Gujral says that DLF has pegged Mullanpur as its second important destination after Gurgaon. "This area is going to grow hugely and we are here on a long-term commitment. Our aim is to work on an economic model simultaneously as we plan to invite companies to set base here and create more jobs like we did in Gurgaon so that there is holistic development in the area rather than it just becoming a dormitory town of Chandigarh", he adds.

With high end projects promising a quality lifestyle, HNI's from the region have been quick to ink deals and so have been the investors looking for handsome returns in the next three-four years. As the prices in these mega projects were on the higher side, the common investor and home buyer had so far been cautious in venturing out here but with GMADA's Eco City there is a chance for an average buyer to try his luck at the draw of lots. This is a chance that one may not get again in the near future, say experts. B.K. Sanghi, a city-based developer says the GMADA project may well be the last of the government projects in the region as with the new Land Acquisition Bill it may not be possible for the government to float more such schemes. In spite of a number of projects rubbing shoulders competition is not in the air here as Rohtas Goel, CMD, Omaxe says, "The efforts of Greater Mohali Area Development Authority (GAMADA) are commendable to promote the region as the first eco-town of Punjab and for a high pace of development in the region. The well drafted master plan has distinguished features to endorse the region as tourism and education hub. This plan predicts a population of two lakh by 2031 and auger low-density settlements. This will ensure healthy development in this region in a short span of time". Terming GMADA project as a positive step Gujral says as the state body is offering smaller plots its target group was going to be different from that of the big builders and the projects will complement each other rather than poaching customers. Moreover, with only Punjab and Chandigarh residents being eligible for the GMADA scheme, the field is wide open for private players. The prices have been appreciating here steadily over the past few months. Property consultants say the investors in the Hyde Park Estate have already benefited by almost Rs 4,000 per sq. yard since its launch about six months back. A limited number of more such plots in Hyde Park Estate may be offered soon, they add.

Investment boosters

n The proposed metro project envisages to connect up to New Chandigarh. This will help build connectivity to planned projects in the area.

n A new cricket stadium over an area of 40 acres to replace the PCA Stadium Mohali as a venue for international cricket matches is also to come up in the next two-three years. This will bring the area on the global map.

n Broadening of the existing Chandigarh-Mullanpur-Siswan road has been cleared by the MOEF. This development should happen soon and shall give definite boost to the Master Plan Area (MPA).

n Major road under MPA passing through villages Togan, Teera, Basenpur, Sangala setcor has been decided to be put under Secton 4 of land acquisition.

Top

 

Star rating
S.C. Dhall

There were numerous media reports of builders taking customers for a ride by not giving them what they had promised. There were also issues regarding poor quality of construction and delay on the part of the developers.

The concept of rating a realty project is in a nascent stage in the country, CRISIL is the first rating agency which launched a concept of rating for the real estate. Compared to the more popular green building certification, where specific aspects, such as environment and construction material, are taken into consideration, star rating takes a comprehensive view of the quality of the real estate project based on multiple, diverse aspects. The rating is done for all projects, whether commerical, residential or a township.

Such ratings will help a customer assess the quality of the project. As the star-rated project continues to be under surveillance till it is completed, there is pressure on the developer to ensure that the quality is maintained in line with the commitment.

Crisil has chalked out five broad parameters that will help it rate the projects. These include the financial status of the developer, the quality of the construction, clarity on legal issues, financial soundness and innovations in the project. Till date, Crisil has rated nearly 100 projects in 13 cities, including Ahmedabad, Bangalore, Chennai, Kochi, Lucknow and Thiruvananthapuram

It is not yet mandatory for developers to get their projects rated and those who voluntarily do so have to pay a fee of about Rs 1 per sq ft

Crisil Real Estate Star Ratings are a comment on the quality of intra-city and project-specific real estate project under assessment.

Roadmap

The Crisil Real Estate Star Ratings are provided on an eight-point scale that helps benchmark a real estate project against peers in the same city. The evaluation of a project is based on site visit, peer-benchmarking, project compliance and interaction with management and project team. The ratings are widely disseminated through real estate websites, banks and institutions, customer awareness forums and real estate associations and through seminars.

The pricing aspect is kept out of the purview of the real estate rating process,

The key factors evaluated in the state rating process are (i) quality of legal documentation (ii) construction-related risks (iii) financial flexibility/viability of the project and its background, and (iv) track-record of the project sponsor.

The rating exercise was evolved in the background for a strong need for an independent third-party evaluation of real estate projects in the country. Transparency and information availability in the sector has been at a low level. Most buyers face difficulty in accessing credible information to support their purchase decision.

Comparison

There has also been a strong need to curb the volatile swings in the sector ranging from irrational exuberance to pessimistic withdrawal and replace it with a rational demand-supply price regime

The Crisil Ratings provides them a tool affording them an opportunity to compare projects within a city. Crisil has rated projects in Bangalore, Chennai, Coimbatore, Hyderabad, Kochi, Kolkata, Mumbai, Pune and Visakhapatnam.

Top

 

tax tips
NRI's home loan dilemma
S. C. Vasudeva

Q. I am an NRI and I have no income in India, but I do have a house loan on me and my dad (co-applicant), my dad has income in India. I also hold an NRI account of which there is a Tax deduction at source for Rs 20,000 in 2010 for my home loan (started in January 2010), I had taken a loan of Rs 55 lakh and of which in the first year I paid Rs 3 lakh over payment and monthly EMI is Rs 56,000, so till now in 2009-10 and 2010-11 the interest which I have paid is Rs 3 lakh and Rs 5 lakh approximately. Now can I get this TDS (from NRI bank) back by filing tax return? And also can I get the tax deduction for my home loan for the interest? Can I show the deductions in my dad's name as he is the co-applicant, also I do not have any other income in India?

— Krishan Kumar

A. Your queries are replied hereunder:

n The bank account held by you in India is a rupee account. It is, therefore, presumed that the tax is being deducted at source on the interest earned on balance in such account. You can file the Return by showing interest earned on such bank account as income earned in India and in case the same is below the maximum amount not chargeable to tax (i.e. Rs 1,60,000 for assessment year 20010-11 & 2011-12), you should be able to claim the refund of tax deducted at source. In case your income is more than the above amount, tax deducted at source would be adjusted against the tax payable on your income.

nThe deduction in respect of interest payable on the amount borrowed for the purpose of construction or acquisition of a residential house is allowable to the owner of the house. In case you are owner of the house, you should be able to claim the deduction for the interest paid on the amount so borrowed against the Income from house property. In case the house is self-occupied, the maximum amount of deduction allowable is Rs 1,50,000, provided the amount has been borrowed after April 1, 1999 and the acquisition or construction is completed within three years from the end of the financial year in which the amount was borrowed. In case the house is self-occupied, income from self occupied property would be nil and the loss arising on account of such interest would be allowed to be off against income arising under any other head. 

Top

 

Income of charitable trust

Q. A charitable trust is having agricultural income, As agricultural income is not taxable, the question is whether this income is to be added with other income or donation received by the trust for calculating 85 per cent amount which is to be spent on charitable tasks.

The other point is that the charitable trust purchases land and other assets such as light inverter, furniture etc. Are these assets to be taken as expenditure for the objects of the trust while calculating 85 per cent expenditure for charitable purposes?

— Surinder Singh Kanwar

A. Your queries are replied hereunder:

a. Section 11 of the Income-Tax Act, 1961 (The Act) dealing with the provisions of 'Income from property held under charitable or religious purposes', provides that subject to the provisions of Sections 60 to 63 of the Act the income specified in the said Section shall not be included in the total income of the previous year of the person in receipt of the income specified in the said Section subject to requirements contained in the said Section. The definition of the term 'Income' as contained in Section 2 (24) of the Act is an inclusive definition and, therefore, agricultural income should form part of income as specified in Section 11 of the Act. Agricultural income does not form part of the total income in accordance with the provisions of Section 10, but for the purposes of computing 85 per cent of the income to be utilised for charitable purposes, such income should, in my opinion, be included. This interpretation is based on a plain reading of various sections dealing with the non-taxability of income of a charitable trust.

b. Land and other assets purchased by the trust in furtherance of its object shall be considered as utilisation for computing the figure of 85 per cent.

Top

 

Compensation amount not taxable

Q. This is regarding the IT Return filing case. My father is a senior citizen. Recently, he has got a cheque for Rs 5,00,000 in lieu of agricultural land acquired by the state government. He has deposited the cheque in his savings account in a nationalised bank. Now he wants to deposit it as a fixed deposit for two years and wants to get interest quarterly as he has no other source of income at present. As he will get an interest amount of Rs 50,000 approximately, so will it be mandatory for him to file IT return for year 2010-2011? Although, his income from all sources is Rs 50,000, which is much less than the exempted limit of Rs 2,90,000 by the IT department.

— L.Chand

A. The amount received from the state government by your father as compensation for compulsory acquisition of agricultural land is not taxable. The amount of interest earned as fixed deposit would, however, be taxable provided his total income exceeds the maximum amount on which tax is not payable by a senior citizen. As per facts in the query his income is below the taxable limit. So it would not be obligatory on his part to file a return of income. It would be advisable for him to file Form 15H with the bank with which the Fixed Deposit is made so that tax at source is not deducted otherwise he will have to file the return to claim the refund of tax so deducted.

Top

 

Computing capital gain

Q. I am senior citizen, hence I am availing yearly amount of rent from shops up to Rs 1,20,000. I have a shop in market (old) area. In 1983 its market value was Rs 85,000 and now it is around Rs 3,00,000. If I sell the shop then how much capital gain will come?

— Anil Kumar

A. You have not indicated the cost incurred for acquiring the shop in the market (old) area. The capital gain can be computed with reference to the cost. However, in case the shop was acquired prior to April 1, 1981, its fair market value as on April 1, 1981 can be adopted for the purposes of computing capital gains. Presuming that the shop was purchased by you prior to April 1, 1981 and the market value of Rs 85,000 was also the fair market value as on April 1, 1981, there will be no capital gains tax liability in case you sell the shop in the financial year 2011-12. After taking into account cost inflation index for financial year 2011-12 there will be a capital loss of Rs 3,67,250 which can be carried forward for adjustment against the taxable long-term capital gain earned in future years.

Top

 

Rebate on interest during construction period

Q. A loan for Rs 4 lakh for a plot was taken from ICICI bank on July 20, 2005 and was repaid in full by August 4, 2008 in EMI/part prepayment with interest of Rs 80,360. Again on March 27, 2010 a housing loan of Rs 5 lakh was taken from SBI for construction on the aforesaid plot. The construction was completed on April 4, 2011. The pre-EMI interest from March 27, 2010 to March 31, 2011 amounting to Rs 23,430 has been paid to SBI in monthly instalments. EMI of principal and interest @ Rs 7,000 per month has been started in May, 2011.

Kindly tell me:

n Whether interest paid to ICICI bank on plot loan is deductible after the completion of construction on the plot.

n Whether interest paid to SBI on housing loan during the construction period is also deductible from income.

n If reply to both the above items is in positive, then how is the deduction of interest admissible (viz. in lump-sum or in five installments)?

n May such deduction of interest be shown in IT return to be filed for assessment year 2011-2012?

— Maj. Love Kohli

A. Your queries are replied hereunder:

n Interest paid to ICICI bank in respect of a loan raised for purchasing a plot is not deductible from the total income of a person.

n Interest paid on loan utilised during the construction period is allowable in five equal installments starting from the year in which the construction of the house is completed.

n The deduction for first installment of interest paid for construction period can be claimed as deduction from income from house property computed for the financial year 2011-12 i.e. assessment year 2012-13. This is because the construction as per facts in the query was completed on April 4, 2011.

Top

 

REALTY GUIDE
Loan process
B K Sanghi

Q. I am working in a multinational company in Chandigarh. I want to purchase a property after taking a loan. In how many installments can the loan be disbursed? How much paper work is involved in this process?

— Ritu Sharma

A. The loan can be either disbursed in full for outright-purchase/ready properties or in a few installments for under-construction properties. The disbursement will be made taking into account the requirement of funds and the progress of construction.

Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents.

While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety.

This may take some time but it ensures a clear title. Completing all legal and technical verifications ensures that you have full rights to your home.

The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed.

On the satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by the bank.

The disbursement will be in favour of the builder/seller.

List of standard documents for disbursement:

1. Loan agreements

2. Disbursement requests

3. Post-dated cheques

4. Personal guarantor's documents, as the case may be.

Share in property

Q. I purchased a plot in the name of my wife in 1976 and constructed a house on it spending all my earnings. But infortunately my wife died in 1990, without leaving any will. I have three sons and one daughter. I want to know my legal status vis a vis the house. What will be my share and whether I can make a will?

— Ajit Singh Vaid

A. Legally speaking you are only a co-owner in the property in question. As the property is in your wife's name after her death in 1990, in absence of any will you, your three sons and your one daughter are natural legal heirs and co-owner and have equal share in the property. With a view to make the title of the property clear now, a mutation has to be done from the competent authority to avoid legal complications at a later stage. A family partition deed could also be executed to determine the exact share of co-owners-yourself, your three sons and one daughter.

Since you are only a co-owner of the property, you can execute a will pertaining to your share alone. You should complete these formalities as soon as possible so that there are no legal complications later when one of the co-owners intends to sell of his or her

share. The better course would be to sell all shares to one of the co-owners at mutually-agreed prices so that the ancestral remains in the household only.

This column appears fortnightly. Readers can send their queries at Real Estate Desk, The Tribune, Sector 29, Chandigarh (by post) or through e mail at realestate@tribunemail.com

Top

 

Green house
Bonsai - II
The magic of miniature
Maj Gen C.S. Bewli

While creating a bonsai the growth of the tree is not halted but guided to get a balanced, mature and an aesthetically looking dwarf tree. In a normal sized tree the pruning of leaves, branches and roots is not carried out, but all these activities are performed on the tree while creating a bonsai.

The key to having the perfect bonsai is to bring nature in miniature. The styles of bonsai as articulated by the Japanese are the guidelines and there appears to be no need to keep all of them looking the same. The artistic touch of an individual can give a unique look to a bonsai. So gardening enthusiasts should feel free to experiment and use their skills to create bonsais of different shapes and sizes beyond the established styles to bring a variety in their collection.

Bonsai is trained by keeping the most presentable portion as its front and while creating it, the placement of first three branches is very important.

Formal upright style

The tree grows straight upwards from a strong buttressing root base to a tapering tip forming a well-defined apex. The branches grow evenly in all directions; however, the lowest branch being the longest should be positioned sideways at approximately one third of the trunk's height. The second branch is smaller and originates slightly higher from the side opposite to the first branch. The third branch is a back branch tilted slightly towards one side and is responsible for giving depth to the tree. The length of branches and distance between branches should decrease as you get closer to the top of the tree thus, giving the bonsai an outline in the shape of a triangular canopy.

2. Informal upright Style : This is the most popular and a dynamic style both in nature and in the art of bonsai. The trunk arises from a strong buttress of roots, and grows upwards in a series of irregular curves to the top which is slightly curved forward keeping in mind that the trunk should bend to the right or left, but not towards the front. The trunk-line should be tapering with the branches growing only on the outer curves and bend slightly downward and also become smaller as they go towards the top.

Slanting style

In this style the trunk is inclined to one side at approximately 45º angle. This inclination gives an impression of great instability. This is balanced by a buttress of roots which are spread with strong roots on the side away from incline as well as one or two straight roots in the angle of incline. The lowest branch is the strongest and spreads in the direction opposite to the incline of the trunk and is positioned about one third of the way up and then subsequent branches arranged in the formal upright position. However, the apex of the Bonsai will be located to the left or right of the root base.

Cascade

Such bonsais are modeled after trees which grow on steep cliffs where they tend to bend downwards. The trunk first grows upwards from the soil, and then curves down abruptly growing in a series of sinuous curves so that apex or tip of the tree extends below the base of its container. Such a bonsai appears to be struggling against gravity and is planted in tall, round or hexagonal pots normally placed on the edge of the stand.

Forest style

A style of bonsai where a miniature forest is made up of odd number of small trees grown in a pot. The forest should have trees of varying heights and thicknesses. The trees should not block one another when viewed from the front and should be staggered so that the forest looks natural. The crown and foliage of the bonsai forest can be rounded or tapered depending upon the species of the trees.

Other styles are windswept, semi cascade, literati, rock grown, driftwood, split trunk, twisted trunk, twin trunk, exposed root etc. but all these styles are derived from the basic top four styles.

To be concluded Potting mixture

The single most important factor in growing a healthy bonsai is the correct potting mixture as it plays a very important role in the growth of the tree. As the tree grows in a very less amount of soil, the compost used should be very porous and rich in nutrients and should be able to support the tree. It is composed of;

Coarse sand — one part

Dung manure or leaf mould — one part

Farm soil — half part

Mix all the above ingredients and to a cubic foot of this compost add:

NPK — Nitrogen, Phosphorous, Potash in equal ratio (50 gm each)

Bone Meal — a slow releasing nutrient (100 gm).

Thimet or Furadan (a fumigant) — 25 gm.

Trace elements — 10 gm

Sprinkle some water and mix thoroughly. Put this mixture in a bag or some container for a couple of weeks to make it ready for use.

Top

 

Shimla's unsafe buildings 
Vishal Gulati

Not even two per cent of buildings in Shimla are safe and can withstand earthquakes of high intensity. This startling fact came to light in the recently-concluded monsoon session of the state Assembly.

Town and Country Planning Minister Mohinder Singh, while replying to a question of Congress member Anil Kumar said only 1.52 per cent of the buildings of Shimla were safe and not prone to earthquakes.

“A large number of buildings in Shimla are liable to damage in a high-intensity quake,” Mohinder Singh said in a written reply to the question: 'Whether it's a fact that most buildings in Shimla are earthquake-prone.'"

According to the minister, 78.64 per cent of the buildings fall in category A, followed by 12.96 per cent in category B, 6.88 per cent in category C and 1.52 per cent in category X.

The buildings categorised as A are those made of mud, adobe and random stones. These are liable to suffer partial damage in the wake of quakes of magnitude 8.

B category buildings are made of large blocks and poor quality of timber. These are liable to develop deep cracks. C type are reinforced buildings that will develop only small cracks while X category structure are totally safe.

He said the state falls in seismic zone IV and V, suggesting severest seismic sensitivity. However, Shimla, once the British summer capital, falls in zone IV.

"Most of the buildings that have been categorised as A, may have ignored the traditional practices of seismic proofing such as 'dhajji' and incorporation of wooden beams," he said. However, no specific study or data is available regarding the earthquake vulnerability of the buildings. “There is a vulnerability atlas for the country based on a building census for the year 1991 for Shimla. As per the census, only 1.52 per cent buildings are safe,” he said.

At present, Shimla has 187 buildings with more than five floors.

These include a 12-storey commercial building being constructed by Jagson International Ltd, an eight-storey building of Oberoi group's five-star hotel Cecil and a 10-storey building of the Himachal Pradesh High Court. Speaking to IANS, Singh said a study is being conducted to assess the hazard vulnerability and risk analysis in the state. "Based on the study, a state disaster management plan will be prepared for the state," he added.

Officials of the Town and Country Planning Department said Shimla’s northern slope of the historic Ridge, an open space just above the Mall extending to Grand Hotel in the west and the Lakkar Bazaar in the east, is sinking. Planned for a maximum population of 16,000, the town now supports 236,000, as per provisional census figures for 2011.

An earthquake measuring 6.8 on the Richter scale, with the epicentre on the Sikkim-Nepal border region, jolted northern and eastern parts of India Sunday evening, creating widespread damage. — IANS

Top

 

UNDERSTANDING HOME LOAN TERMS

What is monthly reducing balances method?
Borrowers benefit more from a loan that's calculated on a monthly reducing basis than on an annual basis. In case of monthly resets, interest is calculated on the outstanding principal balance for that month. The principal paid is deducted from the opening principal outstanding balance to arrive at the opening principal for the next month and interest is computed on the new, reduced principal outstanding. In case of annual resets, principal paid is adjusted only at the end of the year. Hence, you continue to pay interest on a portion of the principal that has been paid back to the lender.

How does tenure affect cost of loan?

The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean greater EMI burden, but your loan is repaid faster. If you have a short-term cash flow mismatch, your bank may increase the tenure of the loan, and your EMI burden comes down. But longer tenures mean payment of larger interest towards the loan and make it more expensive.

What is an amortization schedule?

This is a table that gives details of the periodic principal and interest payments on a loan and the amount outstanding at any point of time. It also shows the gradual decrease of the loan balance until it reaches zero.

What is pre-EMI interest?

Sometimes loan is disbursed in installments, depending on the stages of completion of the housing project. Pending final disbursement, you may be required to pay interest only on the portion of the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

However, many banks offer a special facility whereby customers can choose the installments they wish to pay for under construction properties till the time the property is ready for possession.

Anything paid over and above the interest by the customer goes towards Principal repayment. The customer benefits by starting EMI payment earlier and hence repays the loan faster. Please check with your banker whether this facility is available before availing of the loan. 

Top

 

REALTY BYTES
Grand Prix special

The newly launched “Jaypee Greens Golf & Spa Resort” , from Jaypee Hotels is all set to host special guests of the Formula 1 World travel during the entire duration of the Indian Grand Prix from October 28 to October 30, 2011. Situated at Jaypee Greens, Greater Noida, “Jaypee Greens Golf & Spa Resort”, offers 170 elegant rooms (152 deluxe room and 18 suites) with a world renowned Six Senses Spa.

Expressing her delight, Ms Manju Sharma, Director, Jaypee Hotels said, “ We are receiving substantial amount of queries from the Far East nations, Italy, France and the UK . As the entire inventory has been sold out, we are now gearing up for an impeccable show. Along with the increased interest from foreign tourists, Indian enthusiasts and NRIs are equally calling in to enquire for stay facilities. ”

Moreover, Jaypee Delcourt – a residential product with 27 well appointed deluxe rooms and 36 service apartments at Jaypee Greens, Greater Noida have also been booked for the event along with Atlantis - The Club, Jaypee's integrated sports complex at Jaypee Greens, Greater Noida. — TNS

Pantaloon Earmarks 900 cr for real estate

Leading retailer Pantaloon Retail India (PRIL) has earmarked a 900 crore expenditure over the next three years on nine million square feet of retail space, which it has already booked across India for expansion. The Kishore Biyani-promoted Future Group firm is looking to insulate itself from a possible space crunch situation in the likelihood of multinational firms expanding their footprint into the Indian retail sector once FDI in multi-brand is allowed."Supply of fresh quality real estate space within large Indian metropolises is increasingly becoming scarcer. The demand for this space is also expected to increase significantly in the near future as more retail companies vie for this space," PRIL said in an investor document. Envisaging the future scenario, the company went ahead with an aggressive strategy of securing quality real estate for its future expansion plans and has booked over 9 million square feet of retail space, it added. According to sources, the company has set aside Rs 800-900 crore for the purpose. "The company believes in maintaining its high growth momentum and leadership position over the next few years and hence, intends to aggressively continue its retail expansion strategy," PRIL said.

Brigade Looking to Foray into Mid Range Hospitality Sector

Brigade Hospitality Services, the hospitality arm of real estate developer Brigade Group, is looking at entering the mid-range hospitality segment in the South, according to a top official of the company. “We have 6-8 properties in the pipeline in the South. Among them would be mid-segment properties in the Rs 3,000-4,000 per night range,” Mr Vineet Verma, Chief Executive Officer, Brigade Hospitality Services said. The company is looking at properties that will be “right fit and at the right location”, he said. In all, the company plans to add about 1,500 keys in the next few years. “We are targeting 2015-16 for all the property openings,” he added. It is looking at a total investment of about Rs 1,000 crore. The properties in the pipeline include an upscale hotel in Chennai, for which construction work has already started, he pointed out. However, he declined to give further details on the services partner for the project. 

Top

 

Launch pad
Aster Court

Orris Infrastructure, one of the leading real estate companies of NCR has launched Aster Court Premier at Sector 85, New Gurgaon. The project is a perfect combination of luxury, elegance and comfort.

Aster Court Premier is a part of 25 acres of group housing which offers 3+servant and 4+servant BHK condominiums with all the modern facilities. The size of these units is 1970 sq. ft. and 2410 sq. ft. respectively, and the cost of these apartments starts from approximately Rs 86,00,000.

The project will offer 10,000 sq. ft club area with swimming pool, Zen Next gym, net games, supermart, clinic, primary school, crèche, children tot-lot, open air theatre, Beautifully landscaped gardens with children area, jogging track, sitting area, Water harvesting, 100 per cent power back up and CCTV surveillance, round-the-clock security. The landscaped grounds and well planned infrastructure is designed by renowned architect Nelson (U.S.A).

The project is expected to be completed within 36 months from the date of commencement.

Springdale

V Square, a real estate development management company has launched a residential project, “Springdale” at Dharuhera. The 8.10 acre project is situated near National Highway-8, adjoining Indira Gandhi International and domestic Airport.

It is just 15 minutes drive from IMT Manesar with upcoming SEZ. Bhiwadi Industrial Town and Kundli-Manesar-Palwal Expressway, which will connect Punjab & UP as neighbours are also in close proximity of the project.

The project will have 2, 2+servant, 3 and 3+study BHK apartments. It will have 10 towers and 550 flats with sizes starting from 1175 sq. ft. to 1850 sq. ft. The units will be designed as per customer’s choice. The price of these units starts from Rs 21 lakh.

The key features of the project will include a club house, multipurpose event lawn, gym, swimming pool, yoga, spiritual, meditation room, library, massage parlour, snooker, pool, badminton court, multi-cuisine restaurant, a mini market for the daily needs of the occupants, schools, banks, hospitals, supermarket, business centre with broadband. The project will be completed within 36 months. — TNS

Top

 

Realty convention on Sept 28

Estate World 2011, the 2nd Annual Global Convention for Property Brokers & Developers, will be held in Surajkund on September 28.

Focusing especially on North India, this second annual global convention for property brokers and developers will showcase products, strategies, personalities and leading companies that comprise the North Indian real estate marketplace.

The country’s largest B2B initiative for the real estate sector, Estate World 2011, will charter international best practices in the real estate sector with the objective of understanding the How, Where and When to buy or sell a real estate with emphasis on understanding “How Real People See Real Estate”. Giving insights about the event, Franchise India’s President Gaurav Marya said, “The real estate industry has always prided itself on its relationship building. But it is time for a reality check. Today’s consumer expects more than just relevant information; they demand more humanisation and strategic guidance from real estate industry as they decide to buy. The transformation from a broker to a power broker is the demonstration by those savvy individuals in knowing where to concentrate their efforts and where to re-invest in their firms.

The Estate World 2011 will assemble a diverse line-up of real estate visionaries including leading developers, brands, professionals, urban planners, architects, designers, policy makers, government officials and brokers to explore the best practices and competitive strategies and tackle the issues that are most on the minds of brokers and agents that have led to their success.”

The conference aims to shed light on Indian property environment 2011 along with an in-depth analysis of the Indian rental markets, together with understanding which types of property will provide the best returns, and which market sectors and locations are showing the strongest potential for the future. Estate World 2011 would be a knowledge addition towards the already existing pool of awareness in the form of innovative business ideas (from the people driving change in real estate industry), unparalleled networking with real estate industry leaders and information about newly launched products. The conference would help professionals to learn how standards can be raised in the real estate services.

In order to commend the contributions made by real estate brokers and developers, the occasion will also witness the 2nd annual Estate World Awards 2011. Spanning across 43 categories, the awards would encourage and felicitate these risk takers for their willingness cum courage to hedge and wedge the risks involved at the same time laying down bundle of options for customers to choose from. The Real Estate Report 2011, covering end-to-end data and position of Indian real estate sector, will also be released at the conference along with the launch of Estate World, a bi-monthly magazine catering to varied requirements of the real estate sector. — TNS

Top

 

Sale
DLF, 3C may sell Noida IT park for Rs 500cr

India's largest realty firm DLF and green building developer The 3C Company are likely to sell their IT park in Noida to Infrastructure Development Finance Company (IDFC) for about Rs 500 crore.

The deal is likely to be closed next week, according to sources.

DLF has about 70 per cent stake in the IT Park and rest is with The 3C Company. When contacted, DLF spokesperson said, "the company would not like to comment on market speculations". The spokesperson of The 3C Company also declined to comment.

In May this year, DLF had said the company plans to raise up to Rs 7,000 crore in the next 2-3 years from the sale of non-core assets to cut net debt of over Rs 21,000 crore.

DLF had said in August that it expects to finalise at least two big-ticket deals for sale of non-core assets during this quarter.

Apart from Noida IT Park, DLF has approached the Board of Approval (BOA) under Commerce Ministry to sell about 24-acre in Pune IT SEZ, in which it has about 70 per cent stake. According to sources, DLF is in talks with private equity firm Blackstone to sell IT SEZ at Pune and the deal size is expected to be around Rs 900 crore.

As part of its decision to exist from non-core businesses, DLF is in talks to sell stake in its hospitality venture Aman Resorts.

DLF had acquired luxury hotel chain Aman Resorts for $ 400 million in 2007. It is likely to keep the Aman resort in Delhi with itself. — PTI

Top

HOME PAGE