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Ghaziabad VIBRANT AND VIABLE 
Sitting 19 km east of Delhi, Ghaziabad is one of the most vibrant realty destinations in the NCR region. Known as the ‘Gateway to UP’ this industrial and educational hub has witnessed rapid growth of infrastructural facilities over the past few years making it an attractive destination for investors as well as end users looking for housing options in the NCR region.PLENTY OF CHOICE: A large number of flats in the affordable as well as luxury segments are coming up in the Raj Nagar Extension tax
tips
Ground
Realty
home
decor
living
with vaastu
REGULATING REALTY
project
watch
Launch
PAD
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Ghaziabad
The realty scene here has been in growth mode with the increasing presence of industries and MNCs here. Its good connectivity with Delhi has made it a preferred destination for IT, ITeS and BPO sectors. Apart from this the city also has a number of malls and multiplexes which have transformed this historical town into a retail and entertainment hub. The icing on the cake, however, remains the highly affordable price tags for properties and a vast number of well-planned townships in the area. “Real estate prices in Vaishali, Kaushambi, Indirapuram and Vasundhara areas in the trans-Hindon zone have appreciated vastly over the past few years due to good infrastructure and connectivity”, says Pradeep Mishra, the founder and Director of REPL Ltd. that has provided infrastructure support in a number of upcoming projects in the area. Ghaziabad and its vicinity provide a wide choice to those looking for affordable housing options in the price bracket of Rs 30 to 55 lakh and this is what makes it a realty hotbed in the NCR region as Noida and Gurgaon are more suitable for those looking for luxury housing, adds Mishra. With the stretch along NH-24 gaining the maximum attention of realtors, a number of projects like Crossings Republik, Ansal Aquapolis, Golf Links and those by other builders like Supertech, Panchsheel, Paramount etc have given a substantial boost to the residential inventory in this area. Prices in Indirapuram, hovered around Rs 3,500 psf in the second quarter of 2011, while in Crossings Republik it is around Rs 2200 psf. Kaushambi, which has a high occupancy rate , has rates varying between Rs 2100-4500 psf. Certain upcoming areas like Raj Nagar Extension (RNE) along NH-58 and the Hi-Tech city have evinced greater interest among investors and buyers post the Noida Extension land acquisition impasse that has left thousands of buyers high and dry. Raj Nagar Extension, which brought forth the unique model of a number of different developers working towards one project, has defied all misconceptions of buyers and industry watchers as the consortium of 30 developers has handed out possessions to almost 1500 families. With basic infrastructure needs in place, the area is well connected to Delhi and the nearby NCR areas. The proposed Delhi Metro service from Vaishali to Arthala as well as the setting up of a new substation have already been approved by GDA. At present, the area is connected to the NH-24, which is being developed between GT Road and Meerut Road , with the GT Road further connecting it with National Highway-58. The area also lies close to Dilshaad Garden and Vaishali Metro stations. Good connectivity, proper infrastructure and affordable housing have made RNE one of the major realty attractions around Ghaziabad. Ajeet Singh of broking firm Real Hands, who has seen the area grow in the past three years, terms the area perfect for those looking for homes in the Rs 15 to 30 lakh price range. “Before Noida Extension came into focus there was huge demand for RNE properties but since May 2011, the land dispute in Noida Extension has once again made the buyers return to this area and thus the market here has warmed up now”, he adds. Market experts see 20 to 25 per cent price appreciation in the current year in the area. RNE is being developed as an eco-friendly destination wherein a green belt of 200 acres has been approved by GDA to provide healthier surroundings. In addition, this township is being developed in an area of 400 acres and almost 30,000 flats will be ready in the next few years. Better infrastructure and connectivity are the plus points of this area as Gaurav Gupta, spokesperson of Raj Nagar Extension Developers’ Association says, “Raj Nagar Extension, which has been the hottest affordable housing destination, has seen simultaneous development of its infrastructure like roads, sewerage, electricity and drainage system. After the start of the six-lane highway, the work on internal road has been taken up in a big way, work on sewer and drainage systems is more than 80 per cent complete and electricity is available though work on a new substation is underway. More than 1500 families have already moved into the area and are living comfortably”. The entire area marked for development by the Ghaziabad Development Authority (GDA) in Raj Nagar Extension is freehold. Builders have bought land by making upfront payments to farmers and villagers without the intervention of the GDA. As Gupta puts it, “the land is freehold in nature and has been bought directly from the farmers so the investor doesn’t have to worry about Noida Extension like problems later on. As a result we have more end users hhere than speculators and this will ensure stable and consistent price appreciation.” While issues like a proper garbage dumping ground, road congestion etc remain very much alive, with construction activity going on a hectic pace all around the city there is good potential in terms of appreciation of investment even though instantenous gains may not be forthcoming. So the end users as well as the investors can keep a window of 2-3 years to get the full worth of their money spent in the Ghaziabad region.
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tax
tips Q. I have two houses one in Gurgaon another one in Chandigarh. Both the houses are self-occupied in the sense that Chandigarh house is occupied by my parents and I am staying in Gurgaon because of my employment. There are outstanding loans against both the houses. I intend selling the Chandigarh house as my parents would be shifting to Gurgaon soon. What will be the tax implications in this case?
A.
I assume that the Chandigarh house which you intend to sell has been held by you for more than three years. In such a case, the house property so held would be in the nature of a long-term capital asset and any gain arising on the sale thereof would be a long-term capital gain (LTCG). The LTCG so arising would be taxable in the year of sale @ 20% plus education cess of 3% thereon. You can save the tax so leviable provided you utilise the long-term capital gain for the purchase or construction of a residential house within the specified period. You can also save tax by investing the amount of capital gain in the acquisition of tax-saving bonds with in six months of the date of sale of the residential house. Can withdraw cash after paying tax Q. I am OCI (Canada) with dual citizenship card. Kindly clarify the following points to me: n From the sale proceeds of house can I withdraw cash as part of LTCG by paying 20 per cent tax? n
As OCI/PIO am I exempt from tax liability of my income in India in respect of
LTCG/pension? n As OCI can I remit to myself/my son in Canada up to $ 1 Million per year out of the sale proceeds with no tax liability for self and my son? n
Can a father gift property or money to daughter and a husband to wife within the financial limits of gift? n
What is the income tax liability for the donor and the recipient in this case? n
I have come to know that an Indian resident can send up to $ 100,000 to close relatives abroad and another 100,000 can be gifted, not necessarily to a relative. Is there no tax liability for donor/recipient? — Col. Mela Singh A.
Your queries are replied hereunder: n
You can withdraw cash after payment of the tax on the long-term capital gain arising on the sale of the house and utilise the same for any purpose. Long-term capital gain is taxable at the rate of 20.6 per cent (basic rate of 20 per cent plus education cess of 3 per cent thereon). n
You are liable to pay tax on the long-term capital gain or income from pension received in India. n
You can remit a sum of $ 1 lakh per year out of the sale proceeds of land provided the tax has been paid on long-term capital gain as stated above. n
A father can gift to daughter any amount without any tax liability. Similarly, there is no tax liability for the amount gifted by a person to his wife. However, income arising from such gifted amount will be includible in the income of the husband. n
An Indian resident individual is permitted to send $ 2,00,000 towards permissible current and capital account transactions or a combination of both. This includes acquisition of immovable property, gift and donation by a resident individual. The remittance has to be out of the taxed income of the person remitting the amount. A gift to a relative as defined by Section 56 of the Income-Tax Act 1961, (The Act) is not liable to be taxed in the hands of the recipient. Deduction
on loan repayment
Q. I am paying EMIs for a flat under construction. Am I entitled to the benefit of deduction of interest and repayment of installments of loan? If not, when will such deduction be available?
— Manish A.
You will be entitled to claim the deduction in respects of the interest payable on loan obtained for purchase of the flat as and when you get the possession thereof. In the year in which you get the possession you would be entitled to the deduction of the amount of interest payable as well as one-fifth of the amount of interest payable for the construction period. The remaining four-fifth would be allowed in four equal installments in the succeeding years. The deduction in respect of the repayment of the principal amount would also be allowable in the year in which you get the possession of the flat. Such deduction would be within the overall limit of Rs 1,00,000 specified in Section 80C of the Act. Q. My father had sold a plot in December 2006 as he was interested in constructing/buying a residential house. He had deposited the sale proceeds of the plot which was a long-term capital asset in a bank under the capital gains scheme. Unfortunately, he passed away in the intervening period. What would be the position with regard to the amount deposited in the bank under the above mentioned scheme?
— Raj Kumar A. Ordinarily, if the amount so deposited is not utilised within the stipulated period then the amount not utilised is treated as a long-term capital gain of the previous year in which the period of three years from the date of transfer of the original asset expires. However, if the assessee dies before the expiry of stipulated period for purchasing / constructing a residential house and later on the unutilised amount is refunded to the legal heirs, the amount so refunded cannot be taxed in the hands of the deceased. The amount is not taxable in the hands of the legal heirs also as the unutilised portion of a deposit does not partake the character of income in their hands but is only a part of the estate devolving upon them (Circular No. 743 dated May 6, 1996).
Q. I live in Chandigarh in a rented accommodation. I have recently bought a flat at Delhi and raised a bank loan for the purchase of the flat. I am now entitled to HRA also. Am I entitled to the benefit of deduction of HRA as well as a deduction for the repayments towards the loan raised for purchase of the house? What are the limits for the allowance of HRA benefit?
A.
You can claim the exemption in respect of the house rent allowance (HRA) as well as the deductions permissible under Section 24 of the Income-Tax Act 1961, (The Act) for the amount of interest payable on the loan for the purchase of the house and in respect of the repayment of the principal amount under Section 80C of the Act. The amount which is not to be included in the total income of an assessee in respect of house rent allowance is as under: n
The actual amount of such allowance received by the assessee in respect of the relevant period; or n
The amount by which the expenditure actually incurred by the asssessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or n
An amount equal to – (i) Where such accommodation is situate at Bombay, Calcutta, Delhi or Chennai, one-half of the amount of salary due to the assess in respect of the relevant period; and (ii) Where such accommodation is situate at any other place, two-fifths of the amount of salary due to the assessee in respect of the relevant period, whichever is the least of (a), (b) and (c). Both husband and wife can avail of rebate Q. I am a joint owner of a house along with my wife. Both of us had contributed equally towards the purchase of the house. Both of us are employed in multinational companies. The loan raised for construction is also in joint names. Yearly interest is about Rs 3 lakh. Can both of us claim the deduction for interest as well as the repayment of the principal amount in respect of the loan raised from bank?
— Vishal A.
Yes, both of you can claim deduction for the interest payable on the loan as well as the deduction for installment paid towards the repayment of the loan raised for the construction of the residential house from the bank. It will be advisable to make the payment towards the bank loan separately from your own bank account and by your wife from her own bank account. Please note that each of you would be entitled to a deduction of interest to the extent of Rs 1,50,000 in case the house is self-occupied. The deduction for the payment of principal amount would be allowable under Section 80C of the Act within the overall limit of Rs 1,00,000 as specified under the said Section. Buy a house to save tax on capital gain Q. I have earned a long-term capital gain of Rs 45 lakh on the sale of a residential house property in November 2011. How can I save the tax on this capital gain? The property which has been sold was held by me for about four years.
A.
You have following options to save the tax leviable on the long-term capital gain of Rs 45,00,000 arising on the sale of a residential house. You can purchase a residential house within two years after the date of sale by utilising the said amount of capital gain or you can utilise the above amount of capital gain towards the construction of a residential house within three years after the date of sale. So much of the amount of the capital gain as is not utilised for the purchase or construction of a residential house before the due date of filing tax return for the year in which the capital gain has arisen is required to be deposited in bank account under capital gain scheme. Such amount can be utilised for purchase or construction of a residential house within the period as specified above. You can utilise the amount of capital gain towards the purchase of tax-saving bonds within six months of the date of sale. Such bonds have a lock-in period of three years and carry interest @ 6% p.a. The writer can be contacted at sc@scvasudeva.com
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Ground Realty The level: As the name suggests, the plinth beams are laid at plinth level. The top level of plinth beams matches the plinth level of the house. In houses having a single floor level of all rooms, the floor level and top level of plinth beams are flush with each other. Importance:
Plinth beams mainly serve three purposes. These act as a damp proof course over the foundations. These provide better resistance to dampness than a 1.5 inch thick damp-proof course. In addition, plinth beams add to the earthquake resistance of the house. Thirdly, these play a role against the effect of differential settlement of foundations on the walls of the house. Section:
The width of plinth beams should be kept equal to the thickness of masonry walls. Therefore, for 9-inch thick walls, these should be 9-inch thick. However, for 4 ½ inch thick walls, plinth beams should be so designed that their width is reduced to 4 ½ inches for the top 1 ½ inch depth. If this is not done, the beam offset beyond 4 ½ inch thick wall shall be visible as abutting the floor. It will look ugly as it will not be possible to lay marble or tiles over it. The depth of plinth beams can be kept as 9 or 6 inches. Mostly, 9-inch thick beams are preferred. Steel:
Plinth beams should be provided with 10 or 12 mm diameter bars at top and bottom. Commonly, two bars of 12 mm diameter are provided at the bottom and two bars of 10 mm are provided at the top. The stirrups, commonly called rings, should be in 8 mm diameter steel, placed at about 8 inch intervals. Doorways:
No DPC used to be laid in the doorways. This was done to enable the laying of floor topping there. Now, in plinth beams also, the section of beams has to be reduced in each doorway by 1.5 inches. To do this, the top level steel bars of plinth beams are cranked downwards by 1.5 inches from their present position. The 8 mm diameter rings are also reduced in size accordingly. It must be taken care that margin to lay floor topping is available in the doorways. Create a band:
While laying plinth beams, a complete band of interconnected beams covering all walls should be laid for its uniform action. In case of a common wall between two houses, a 4.5 inch thick bearing should be given to the beams on the common wall by cutting chase in it. Erect all pipes: After the laying of steel reinforcement for plinth beams, the plumber should be asked to erect the required pipes in position before the concrete of plinth beams is laid. The plumber has to erect a number of pipes in position. These include the rain water pipes, the soil waste pipes and the waste water pipes. It is not desirable to dismantle concrete of beams to erect pipes at a later stage. In case a basement has been provided in the house, then the electrician should also check his electricity and air conditioning plan as certain conduits may have to be erected through the plinth beams. Shuttering for plinth beams:
The shuttering or formwork for plinth beams should preferably be in steel, erected tightly in position to avoid any leakage of cement slurry. It has often been seen in houses that the contractors avoid provision of steel shuttering and erect bricks masonry in mud mortar instead of steel plates. In such a case, the bricks should be well soaked. Otherwise, these will suck a lot of water from the concrete laid in plinth beams. Under no circumstances should the shuttering yield under weight or vibrations as expanded plinth beams cause problems in flooring work. Level of shuttering:
Top level of shuttering, whether in steel or bricks, is kept flush with top level of plinth beams. It should be thoroughly checked with water level before laying concrete inside the forms. Cleaning the base:
Generally, the work of earth filling under floors is completed after raising the foundations but before laying of plinth beams. Therefore, the top surface of brick masonry, over which plinth beams are to be laid, is generally full of mud. Ensure its cleaning by applying water under pressure, before laying reinforcement and concrete on it. Application of vibrator:
It is possible to use vibrator for compaction of concrete only when steel shuttering has been provided to lay the beams. As the section of beams is only 9 x 9 inch or 9 x 6 inch, a 25 mm nozzle should be used instead of 40 mm or 60 mm nozzle which shall tend to displace the shuttering due to excessive vibrations. It is not feasible to use a vibrator for compaction of concrete in case temporary brick masonry has been provided to cast the beams. In such cases, compaction of concrete has to be done by the old method of using tamping rods. Whenever the vibrator is not used, 10 per cent extra cement should be added to the concrete mix. Care should be taken that concrete is well compacted in either case, and no honeycombing is noticed in it after the removal of shuttering. Concrete mix:
A ratio of 1: 1 ½: 3 cement, sand and coarse aggregate should be used for the concrete of plinth beams. To this ratio, a water-proofing compound, at a rate of 200 ml per bag of cement should be added while mixing the concrete. Curing of concrete:
Curing of concrete in plinth beams gets ignored often as it is not possible to create a water pool over the beams as is done in case of slabs. Curing of concrete in plinth beams is, however, most important and must be done to achieve full strength of concrete. The best method of curing plinth beams is to cover them with jute bags on the next day of their casting and to keep these bags wet by regular sprinkling of water on them. Application of polymer coating:
The plinth beams should be coated with two coats of polymer modified cementitious coating. It is a two-part compound that is mixed at site before its application and adheres to the concrete well. It is grayish, flexible and breathable and covers 8 to 9 sq. ft. area with 1 kg per coat. It can be applied even on wet surface with a brush and proves better than bitumen. — This column is
published fortnightly
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home
decor No more uptight about making everything in the décor ultra coordinated or detailed, the various elements are a synthesis of ideas and experimentation, translating space into a canvas. Regardless of specific style - casual, traditional, contemporary or classic a distinct hint of sophistication runs through these ideas. Starting with one style and adding elements of another contributes to the look of today's popular interiors. A refreshingly interesting look can be achieved by unleashing a colourful mix of classic and contemporary elements. For example a contemporary piece of furniture sits well within classically traditional architecture in a manner that it retains its identity yet manages to blend beautifully with the space. Such an approach is increasingly being used in the interior design world today.
Shimmer with style Infusing the interiors with a hint of shimmer is fast catching fancy of designers now days. Use of Glass ball or cube lamps with a touch of chrome dazzles the house with exotic lighting. Use of iridescent, glass mosaic tiles featured on the wall between the kitchen counter and upper cabinets easily achieves a contemporary international look.
Chic colours In vogue for some time now, the neutral yet sophisticated colour palettes are still high on the popularity meter. Light tan coloured walls with white trim accentuates the pale backdrop in a manner that is interesting to look at yet easy to live with.
Blending textures Trends in the area of texture reflect the use of different types of materials for a more sophisticated look. Cane and wicker furniture is often mixed with more refined, upholstered pieces to nice effect. Natural and colourful dry flowers are popular for interior floral arrangements as they provide great visual texture against a refined background of furnishings. Another current interior design trend for windows is the use of less fabric and laying more emphasis on the architectural elements, creating a lighter and more contemporary look. Handsome trim work in the windows transforms spatially simple rooms into an endless visual expansion of space. Accessorising the space through use of objects and collectibles whether obscure, quirky or pretty, is a key element among popular interior design trends today. Simple display of a stack of books on the table, shelves or floor achieves this look. Black and white photographs on the wall continue to add one's own personal touch and add some refreshing contemporary panache to the existing décor. Giving full rein to the creative spirit, an eclectic mix of ideas has become the current flavor of interior decor. It wouldn't be long before people become curators of their own lives and start living among all kind of collections! The writer is an architect and Director, Studio
a+i, Architecture n Interiors
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living
with vaastu The correct position of study room is extremely important to strengthen your child’s concentration and stamina to sit for long without feeling tired. Some children begin to study, but can’t continue for long due to weak concentration. Vaastu, helps in solving such problems
Let children grow in a congenial and comfortable atmosphere. Study room should be a place where one can sit peacefully andconcentrate on studies. This room should be located at a proper place and should be in accordance with certain vaastu principles. The negative energy may disturb the child’s concentration. The study room should be located in east, north and northeast direction. These directions improve concentration of a student, while studying. Make sure that there is no mirror reflection in the study room as this may have an effect of work load being doubled. Make sure that children do not study under a beam; otherwise he/she will feel unnecessary pressure. Study table Place the study table in a way that the child faces east or north while studying. The table should not stick to the wall. There should be open space in front of the child as it fosters the arrival of fresh ideas. The child should have a solid wall behind him, as it signifies support. The study table should be square or rectangular in shape and not too big or too small in size. A small table can be uncomfortable to work on, while, a big table can adversely affect the competence of a child. Bookshelves Bookshelves and cabinets should be located in the east, north, and north-east directions. The cabinets should not be placed in the centre of a room. It is best to leave central portion of the study room empty. Avoid placing bookshelf above study table as it may create undue stress for child. Do not clutter the study table with lots of books. Wall colour The walls should be painted in light colours, like green, light green, blue, cream and white, rather than dark ones. Light colors are very auspicious and augment the retention power of students. Avoid using black colour in study room. Lights Lights have a very significant impact on one’s ability to study. The study room should be properly lit. Dim lights are not favorable for child’s eyes, education and focus. Sunlight gives us positive energy for doing work and therefore, the windows of study room should be in the east or north of the room. A table lamp is another source of proper light, which helps in concentrating on the task. If the child is using table lamp, it should be placed in south-east of the table. Keep in mind n
The shape of the study table should either be square or rectangle. Important:
Vasant Panchmi falls on January 28, which is an auspicious day to begin laying one’s foundations of education. Pre-school children are given their first lesson in reading and writing on this day. All Hindu educational institutions conduct special prayer for Saraswati on this day. Keep a small picture or statue of Maa Sarasvati on study table on this day. The writer is a Chandigarh-based Vaastu consultant.
Readers can send their suggestions/queries at realestate@tribunemail.com
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REGULATING REALTY
The second largest employment-generating sector that supports 250 ancillary industries has an impetus to contribute considerably to the country’s GDP if given a regulation in the right earnest. Yes, it needs to be organised for thorough transparency, buyers’ safety, to check black money generation, corruption and tax evasion. Over the years rules and Acts framed by different state governments to regulate colonisation and trading have failed miserably on the implementation level. Lack of will to implement rules has led to unabated flow of unauthorised projects by unregistered developers under political as well as official patronage. Unprotected and hapless end-users are at the mercy of unscrupulous realty thugs in the absence of a proper regulation. There seems to be no check on realty agents. Lured by easy money even a nukkar panwala acts as a middleman to make a fast buck. There needs to be a special course for the trade and only those with mandatory qualification should get registration to act as middlemen in the trade. Undervalue registration is a stark truth and an accepted evil of the trade. The Collector Rates fixed by the state revenue authorities are never based on the prevailing market value but are fixed to meet the revenue loss of the stamp duty collection matching that in the previous years. In the absence of a proper trade policy for the sector, a genuine trader is forced to transact on indirect sale documents in order to circumvent the irrational compoundable stamp duty burden. The housing ministry has drafted “The Real Estate (Regulation and Development) Bill 2011” to be presented in Parliament for consent. But is it equipped to meet all the requirements to cure the above stated ailments of the sector? Mainly focusing on the colonisation segment, the Bill is lopsided in nature and is tilted towards buyers’ protection. It is more of strangulatory than regulatory in nature as far as the overall trade is concerned. The new regulation must focus on consumer protection, but at the same time it must be ascertained that the provisions of the Act are balanced for the developer as well for the buyer to ensure smooth functioning of the trade. The provisions of the Act are lopsided and are in favour of the buyers giving them too much leverage to blackmail the promoter. There is no provision to deal with a buyer who fails to make timely payments. On the contrary , the buyer has the right to withdraw from the offer at any point of time on one or another pretext and the developer is bound by the provisions of the Act to refund his amount, that, too, with interest.
Clear launch Prohibiting pre-launches, advertising and booking of apartments in the projects prior to their approval can be well taken as a regulatory measure for safeguarding the buyers from fly-by-night unscrupulous developers. In the process of regulating the sector in the true sense of the word, it is absolutely fine as far as constituting a supervisory authority is concerned. But such an authority must be empowered enough to oversee the working of state authorities in implementing the existing laws governing the development and promotion of real estate projects in the private as well as public sector.
Double trouble The proviso of double registration i.e. with the local authority as well as with the newly constituted authority shall lead to redtapism and corruption besides burdening the developer with complicated documentation. The newly constituted authority must act as a watchdog to see that no unauthorised project is launched by any unregistered developer. Likewise it must also put a strenuous check on unregistered and untrained realty agents in order to bring transparency in the sector.
Escrow trap Realty is a highly volatile trade and demands precisely timed investment. Withholding 70% of the receipts of a project in a separate escrow account would mean dooming the future prospects of the promoter. Otherwise, too, as a developer has already invested in the land for a project the funds to ensure its successful completion are only required for the construction component.
Tough deadlines Stringent provisions for time-bound completion and clauses governing the expiry/cancellation of registration are bound to make the going tough, encourage red-tapism and corruption. It is a well-established fact that a developer is never going to benefit by delaying a project as in the absence of force-majeure clause, delaying the possession shall cut down the developer’s profit margin. The term ‘completion of the project’ is as such ambiguous. If ‘completion’ means completing the entire units in the project, then it is linked with sale, which is governed by the market conditions. Hence the cancellation and expiry of registration can neither be linked with time- bound possession nor with the completion of the entire project. However, the developer must be held liable for providing basic amenities like laying of roads, sewerage line, electric line and provision of drinking water etc on scheduled time frame. Clause governing the extension in the term of registration is too unrealistic and unreasonable as in a slowdown period if a certain percentage of units remain unsold, the developer would be in a fix with no further extension available.
Mute points Real estate has a complex structure. The sector is mainly divided into three segments viz. construction, colonisation and trading. Trading is further divided into two segments i.e. middleman dealers and secondary market investors. The draft of the Act is silent on the policy to trade in real estate. This segment is totally unorganised. The secondary market trader has to adopt means to circumvent compounding taxation. No more an immovable asset, the real estate, now more of a trading commodity, has acquired the status of a full-fledged trade. It needs a policy for easy tradability of land, buildings, apartments and plots like other commodities. Like other commodities the tax burden should either be borne by the end-user or imposed at the first stage. Why is a policy to replace the stamp duty with property transaction fee not mooted for easy tradability in real estate? In such a policy, traders willing to trade in the sector frequently shall be mandated to register themselves as dealers with the government. Every transaction among the dealers would be realised by signing a specific form clearly mentioning the value of the property. A Conveyance Deed would be executed at the time of transferring the property to the end-user. Such a policy would bring transparency, investor’s safety and would check evasion of stamp duty as well as of income tax as the transactions would have to be on the actually transacted value.
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Make an informed choice
According to a study by a leading realty broking firm, the demand for apartments and flats is definitely very high as maximum inquiries come from those keen to move into ready-to-move-in flats. “We have noticed that a majority of the potential customers are locals, which underlines the changing mindset in NCR where the ‘flat culture’ has taken strong roots,” a senior official of the firm informs. “Generally, end users who are looking to buy their first house look for ready-to-move-in apartments, as that would save the rental payments for their current premises. However, from investors point of view, these would fetch lower returns on their investments vis-à-vis under- construction flats, even though there are far lesser risks associated with the former option,” Samir Jasuja, founder and chief executive officer at PropEquity, a real estate data, intelligence and analytics firm said. “On the other hand, there are several risks associated with new and under-construction projects like delays, price escalations, variance from the planned layout and builder troubles etc. But these risks come with higher probability of returns on their investments, and in several cases investors or second home buyers look for under-construction properties for higher returns,” Jasuja said. Devinder Gupta of DGS Realtors says that unlike in the past the new-age customer is very smart and he ensures that his investment does not become a pain in the neck for him a few years down the line. Hence, he thoroughly checks the background of realty firms before taking the final call. They even inspect past projects of builders. While he prefers ready-to-enter house, he may settle even for the projects where work is still going on. However, Ravi Saund, COO, CHD Developers Ltd. claims that the demand for under-construction property is far higher than for the finished ones. Depending on the stage of construction and also the response that the project has already elicited from other buyers/investors, the rates can be from anywhere between 15-30% lower in under-construction flats. The completed apartments turn out to be exorbitant for the middle class buyers – and this is the segment which continues to be Indian real estate’s primary driver. “The middle class population of emerging market cities is burgeoning. If figures talk, approximately 460 million people in emerging market cities will enter the middle class between 2012-2015. It’s a buoyant situation. We are quite upbeat about it. The buyer has more choices and is lighter on his pocket. He can opt for construction-linked plan which has a long gestation period of 2-3 years. Now developers offer Subvention Scheme where the buyer enjoys a PRE EMI holiday. This scheme is beneficial for customers who stay on rent. He pays rent and no EMI and later EMI and no rent”, adds Saund. “I feel that buyer in the under-construction property can make some tweaking in interiors comfortably. Therefore, it can make a lot of sense to invest in an under-construction property by a credible and reputed developer,” Sanjay Khanna, Director of Kailash Nath Projects Pvt.Ltd. told us. However, Sunil Jindal, CEO of SVP group, has a different take on this matter, “I can tell you from my own experience that more often then not customers invest in those properties where they find some kind of activity. If they see that work is on, then they invest. I have observed this tendency among customers in our many projects. Let alone the projects of big-time realty firms, selling flat, floor or plot on barren land is not at all an easy task. Selling a dream is not possible nowadays as media has exposed the handiwork of a large number of realty firms in cornering huge sums from people after promising the moon.” Anuj Goel, Executive Director, KDP Infrastructure Pvt. Ltd. also belongs to the group of experts who feel that customers prefer ready flats. Says Goel, “If it is an investor, the flat yields an immediate rental income and if it is an end user, then he does not have to pay the rent to his existing landlord and only pays EMI for his loan. Furthermore, the investors and end users practically see the developed and completed project without any confusion on the final outcome of the project.” Housing sector watchers say that construction activity is always unpredictable as the schedule always gets adversely affected because of scarcity of labourers, raw materials and government procedural delays which the builder has to suffer all through the construction activities. Once the building is complete, it is time for the customers to enjoy. The new customer enjoys this situation without any bottlenecks. Hence there is a perceived additional value for the customers to invest on ready to move in flats without a long wait. Harinder Dhillon, VP, Raheja Developers Ltd, “The primary market for new launches is extremely active at the moment and transaction volumes are significant. Under-construction projects are generating as good a response if not better, than that of ready-to-occupy apartments.” So the real question is what is the purpose of purchasing a property? “If it is for investment then under-construction property is generally preferred, meanwhile first home or self-use buyers go for ready-to-move-in flats,” Sanjay Khanna concludes.
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watch KDP Infrastructure Pvt. Ltd has started possession of the first phase of its project, Grand Savanna located at Raj Nagar Extension, Ghaziabad. Spread over an area of 12.69 acres, the GDA-approved project offers high-rise buildings accommodating 1158 flats with an option of 1, 2 and 3 BHK apartments. Ready-to-move-in units in the first four of the total 15 towers of the project are ready for possession. The possession of the second phase is likely to start in the next three to four months.
While handing over the keys to the residents, Anuj Goel, Executive Director, KDP Infrastructure Pvt. Ltd said, "Located amidst developed infrastructure like sewage lines, electricity, roads and educational institutions, the project provides quality and comfort at an affordable price. Strategically located in the most prominent area of Raj Nagar Extension, the project Grand Savanna lies 25 km from the Central Business District of Connaught Place and only 12 km from Delhi border.
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Launch
PAD
Delhi-Based Ashiana Housing Ltd, has entered into Gujarat real estate market through a revenue share agreement for 10.65 acres located in Halol near Vadodara.
The group will be utilising this land parcel to develop a residential group housing project. Commenting on Ashiana’s entry in Gujarat, Varun Gupta, Director, Ashiana Housing Ltd., said, “It’s a matter of delight for us to announce our entry in Gujarat real estate market. Delhi-Mumbai Industrial Corridor is an upcoming industrial hub with speedy macro-economic growth and Gujarat is one such area which has the best infrastructure in the country. “Over the past few years, rapid industrialisation, growth of manufacturing sector and creation of a better social infrastructure has made Gujarat the most attractive destination for real estate,” he added. Halol is well connected to key industrial centers such as Ahemadabad, Bharuch and Surat, along NH8.
Kaamna Greens The Sikka Group has launched Sikka Kaamna Greens in Sector-143, FNG Expressway Noida. It is an extension of Sikka Karnam Greens. The project has been conceptualized by leading architect and planner, CP Kukreja Associates and will have options such as 1 bedroom + 1 toilet (650 sq.ft.); 2 bedroom + 2 toilets (950 sq.ft.); 2 bedroom + 2 toilets (1150 sq.ft.); 2 bedrooms + 3 Toilets + 1 service (1315 sq.f.t.); 3 bedrooms + 2 toilets (1465 sq.ft.); 3 bedrooms + 4 toilets + 1 service (1700 sq.ft.); and 4 bedrooms + 5 toilets + 1 servant room (2-75 sq.ft.). Land has been allotted by the Noida Authority for the project, and is located at the FNG (Faridabad-Noida-Ghaziabad) expressway and seven minutes from Sector 37 Metro Station, City Centre and Kalindi Kunj flyover. Speaking on the occasion Gurinder Singh Sikka, Chairman and Managing Director, Sikka Group, said, “After the successful launch of our earlier projects, we have ventured out on this project to provide luxury to the customers in the best of locations.”
Designer switch boards The Goldmedal Group which manufactures designer switches and electrical systems recently opened its first exclusive showroom at Paras Down Town Mall in
Zirakpur.
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Sitting 19 km east of Delhi, Ghaziabad is one of the most vibrant realty destinations in the NCR region. Known as the ‘Gateway to UP’ this industrial and educational hub has witnessed rapid growth of infrastructural facilities over the past few years making it an attractive destination for investors as well as end users looking for housing options in the NCR region.
“Peaceful surroundings as well as connectivity by NH-58 is a real bonus as you find major shopping areas of Ghaziabad on one side and fast connectivity to Delhi makes it ideal for living. Along with this the area also has good educational institutions for children”, says Sudesh Aggarwal who is living in SG Impressions in RNE. 
— Naresh Kapur
— Harban Singh
— Ajit Singh
The brick foundations for a house are provided with a damp-proof course (DPC) laid at plinth level to act as a barrier to the dampness rising upwards by capillary action. This damp proof course is normally one-and-a-half-inch thick layer of concrete as the bricks are considered quite porous in nature while concrete resists the passage of moisture through it. The past 10 years have seen a gradual replacement of DPC by plinth beams and by now, it has become almost universal to provide plinth beams instead of DPC. Here are a few guidelines for correct laying of plinth beams:
A true reflection of a person's moods, interests and lifestyle, the idea of conversing space takes a unique character of its own. A sophisticated blending of style and materials create a look that is appealing yet individualistic in taste. Refusing to be typecast into a specific pattern, the current interior trends are quite exciting and dare to be different.
The real estate sector in India is unorganised. It is graft-ridden as it is shackled by cumbersome documentation and redtapism. It is not transparent and is marred by unavoidable underhand transactions hence it generates hoards of black money. It is prone to frauds in the absence of a proper trade policy and proper vigilance and check on untrained and fly-by-night middlemen in the secondary market. The Transfer of Property Act, 1881, has lost its relevance in the changed scenario of the real estate trade. The provisions of the Act are either silent on select segments of the sector such as colonisation and trading or are impractical in the current scenario.
Do serious buyers in the realty market look for a ready-to-move-in flat or do they don’t mind investing in projects where they have to wait for for several months or years to get their dream home?
Speaking on the occasion about the new “curve modular” range of switches and accessory products, wires and cables, and distribution boards, Kishan Jain, Director of the group said, “The range is refreshingly different in terms of aesthetics, function and usability”. It includes three cover plate designs in 2-plate, 3-plate and 4-plate options that are made of polycarbonate, natural wood, stone and glass and along with over 200 plus modular inserts that include switches and sockets, lighting devices, music stations, doorbells, safety devices, fan regulators, dimmers, and more. These switches and accessories are available in mechanical as well as ‘Touch’ and Infrared systems. Definitely a first in the Indian market, the Infrared systems are available with a remote that can be easily programmed and re-programmed from the front, making these user-friendly.