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area watch: bathinda Withdrawal syndrome The realty scene in Bathinda has been on a roller-coaster ride, thanks to the Guru Gobind Singh Refinery project. While it was the launch of this ambitious project that fuelled a boom in the property market four years ago, now it is the completion of the project that has sent the realty wagon hurtling down giving nightmares to all the stakeholders.
Decor trends
Ground Realty
Tax tips
Launch pad
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area watch: bathinda
The realty scene in Bathinda has been on a roller-coaster ride, thanks to the Guru Gobind Singh Refinery project. While it was the launch of this ambitious project that fuelled a boom in the property market four years ago, now it is the completion of the project that has sent the realty wagon hurtling down giving nightmares to all the stakeholders.
In 2008, when refinery's construction was in full swing, a huge army of workers and their families migrated to Bathinda. There were at least 120 big and small contractors working for on the project with almost 32,000 employees, who needed space to stay in Bathinda. Employees of several big contractors like Larsen and Toubro lived in rented accommodations as the colony in refinery was meant only for the HMEL (HPCL-Mittal Energy Limited) employees. Rentals in the area zoomed as these executives could afford to pay high rent. Most of them preferred areas like Model Town I, Model town II, Model Town III, Guru Teg Bahadur Nagar, Bhagu road, Patel Nagar, Kamla Nehru Colony, Panchvati Nagar, Green Avenue, Veer Colony and others and house owners were paid the desired amount as rent. As most of these 'imported' employees preferred planned areas of Model Town I, II and III, even the property rates in these localities soared to Rs 30,000 to Rs 35,000 per sq yd. Riding high on the refinery-propelled economy, many people took loans from the banks and added more floors to their houses in order to cash in on the need for accommodation here. “More floors mean more space to cater to the massive demand for rental accommodation. In many cases, locals even sold their ancestral land and valuables to add more storeys to their houses and rent them out”, reminisces Surinder Singh, a resident of Model Town Phase I, who refused to flow with the tide and never gave his property on rent. This high tide of rentals continued for four years - from 2008 to 2011- and the locales reaped rich dividends. But now most of the accommodations lie vacant as there are very few takers. "While the urbanites took loans, people living in areas like Raman Mandi used their life's savings to build more houses in the hope of getting a good rental income. The move has, however, backfired as there are no tenants left to pay such high rents. Situation is pitiable for those who had made rent their sole sources of income," says Ram Babu, a local property advisor. Those who had taken home loans to construct more floors are the worst sufferers as they are left with no rental income and hefty EMIs to repay the loans. "Some owners have lowered the rents now, but still these are not at the level where local people can afford them. Rental value will be getting a significant correction in the area," says another property advisor Yogesh Bunty. The only genuine tenants left behind now are the people from the nearby villages who have come to city for the education of their children. Being locals, they are well aware of the genuine rents and hence refuse to pay the exorbitant rents being demanded by owners. It is not the realty scene alone that is suffering the "withdrawal syndrome" after the exit of a huge temporary population with different ethnic and cultural backgrounds, the social fabric of the area has also been left grappling with a void. Commenting on the social impact of refinery employees' and their families leaving the city, Aman Singh from Model Town Phase II said, “The refinery employees belonged to different ethnic backgrounds and brought cosmopolitan culture with them. This not only enriched the city's culture but also gave the much needed exposure to the people of Bathinda”. He also observed that the families of refinery employees who were living in rented accommodations here were good company for the lonely widows and the elderly whose children have migrated abroad. “Such families are now left alone”, he added.
No new projects With the SAD-BJP coming back to power, the prices of property have become stagnant. In the previous tenure of the party from 2007 to 2012, Bathinda witnessed a boom in the property sector and an influx of new private colonies that offered planned housing solutions. These colonies included Sheesh Mahal, Ansal Mittal Sushant City I near village Jassi Pau Wali and Sushant City II near village Kotshamir, Pearls Colony, HBN Colony and Ganpati Enclave. While these colonies are doing fairly well there are no new private projects lined up at present so the realty market is dull and stagnant at present.
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Decor trends
While requirements and activities vary with the age group of the family members, one is always faced with dilemma of making the available space stretch in order to accommodate everyone's needs. Whether it is the space for socialising for a young couple, or a play area for small children, or a home office or even that required for storage, there never seems to be enough room.
The key to optimum utilisation of space lies in thinking out of the box. In the era of innovation and technology hardly anything is impossible. Here are some pointers which you can keep in mind to make the best use of the available space and also to create an effective illusion of space in your small apartment. Avoid clutter The first and the most important thing to be kept in mind is that there should be no clutter or unnecessary bits and pieces lying around as these make any room look overcrowded. It is important to buy furniture and accessories according to the room in which they are to be placed rather than purchasing them first and then stuffing them into any available space. Doors and windows
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The space required to open doors and windows can be saved by using sliding or folding ones. l
Smaller doors should be used for bathrooms. Furniture l
Bulky furniture should be avoided. It is preferable to use sofas and chairs with legs showing rather than using the upholstered ones that seem to be sitting on the floor. l
Glass front cabinets give a clutter-free feel. l
Stackable furniture e.g bean bags, chairs, tables, economise the area that they occupy and may be used whenever the need arises. l
Furniture should be light so that it may easily be shifted. l
A small dining table is ideal for an apartment, but one with attachable leaves helps to add seats in case guests come calling. l
Window seats add seating space without reducing the usable area in a room. Partitions l
Using adjustable and moveable partitions, rather than making walls, is a good way of dividing space in a room. The partitions may be removed or retracted whenever there is a requirement for extra space. l
It is preferable to have partitions made of transparent or translucent material as this opens up the space and does not obstruct the flow of light. Flexi options l
A space can have more than one use e.g a sitting room can easily be converted into a room for guests with the use of wall-mounted retractable beds or sofa-cum-bed. l
Television should be wall mounted and may even be put in corners to maximise visibility as well as save space. l
A passage or lobby area can be converted into a study by having a hinged desk space folded against the wall. The same may also be done for ironing boards. Artistic illusion l
Using a dark colour on the floor and light colors on the walls and ceiling make the room look bigger. Using dark colors on the walls makes the room look small and dingy. l
Placing a large mirror on a wall helps creates the illusion of a bigger room. Placing one opposite a window is a further improvement as it increases light in the room and livens up a dead wall. l
It is preferable to use light-weight drapes rather than heavier ones as they allow more light inside a room. l
One should refrain from using curtains with large motifs as they make the room seem low in height. Curtains with vertical stripes add height to a room.
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Wood still the best bet
Jagvir Goyal Choice of
wood: Wood is the first item that a house builder should purchase immediately after finalising the house plans and working out the quantity of wood. This is important because the wood takes time to dry and be fit for being used in construction. The surface of wooden sleepers doesn't give an idea of the moisture inside it unless you have a moisture meter with you. Watch a dry-looking sleeper being cut to sizes and you'll find some surfaces of the cut sizes completely wet. The choice of wood, however, depends on one's budget. MP Teak is the best wood but is very costly. Other woods used these days are Ivory Coast, Sudan teak, Hollock, Kali Tahli, Shisham, Meranty etc. All woods need a time of minimum two to three months for drying up. For those who don't have this much time, seasoning can be got done from a reliable source. Section of
frames: These days, the most common section for door and window frames is 6 inch X 2.5 inch. Earlier, the section used to be 4.5 inch X 2.5 inch. The bigger section looks better and attractive. For the main door of the house, a 10 inch X 3 inch section is often chosen. Same section is preferred both for single rebate and double rebate doors. The section should be decided in advance as you need to get the wood cut to this section after purchasing it. Similarly, the door thickness and section of stiles and rails should also be finalised. The wood is usually purchased in one lot and after getting the required quantity cut for the frames; the balance quantity is to be cut into planks for door and window shutters. The rebate should be 35 mm X 15 mm for each door. Here, 35 mm is the thickness of shutter and 15 mm is the depth of the rebate. Assembly of
frames: For the assembly of door and window frames, a carpenter gang needs to be engaged. The type of joint in frames should be decided beforehand. Carpenters quote different rates for different type of joints in frames. The rate demanded by the carpenter for frames is in rupees per running feet. For a mitred joint frame, commonly called kalam, the rate is more than a mortise and tenon joint frame or dovetail joint as more work is involved in the mitred joint type of work. Further, the rate depends on whether you want to save the wood cut off from the frame to make rebate for doors. The rate is more if this wood is to be saved for making use in other items like cupboards etc. Actual frame
sizes: The size of door and window openings should be carefully listed from the drawing. Further, the single rebate and double rebate frames should be clearly identified. In case the frames are to be fixed after the construction of the structure of the house, the carpenter should visit the site and measure the actual sizes of openings as the actual sizes may differ from those shown in the drawings. He should also check the diagonals of the openings to arrive at correct sizes for door and window frames. In case the frames are to be erected during the raising of wall masonry, then these can be assembled as per the sizes shown in the drawing itself. Detailed
drawings: While the work on assembly of door frames can be started once the opening sizes are available, for door-cum-windows and the windows, detailed drawing should be prepared for each frame. These drawings show the intermediate legs in door-cum-window frames, fixed glazing portions and open-able shutter portions in windows. The carpenters have their own system of working. First of all, they cut the wood to required lengths. Next, they take out the grooves in all lengths at the required locations. Then they draw the rebates. Only thereafter, they proceed with assembly of prepared pieces. Therefore, a carpenter doesn't proceed with the work unless he has all the drawings available with him. Precautions during
assembly: All the horizontal and vertical members should be fully smoothened before assembly. Preferably, sand paper of 80 number should be applied to them. The horizontal member at top in door frames and both horizontal members in window frames should project by 3 inch beyond the outer surface of vertical members to insert them in masonry and to provide better anchorage to the frames. No wedges should be inserted by the carpenter in the joints to tighten them. The joints should themselves be tight fitting and without any visible gaps. Sometimes, there are very fine gaps at joints which should be filled with a mixture of fevicol and wood particles by the carpenter. Two nails of 4 inch length should be driven at each mitred joint for stiffness. Ask the carpenter to always check the dimensions and diagonals of each frame before driving the nails in position. Holes for
holdfasts: After the assembly of frames, the locations where holdfasts are to be attached to the frames should be marked. While the door frames and large sized windows should have three holdfasts on each side, smaller frames may have two holdfasts on each side. The holdfasts should be located with one at the centre and the others two at one foot distance from top and bottom respectively. The carpenter should now make holes in the vertical sides of frames to fix bolts for holdfasts through them. Provide a temporary horizontal wooden strip at the bottom of each door frame and nail it well to the two verticals. This strip is provided to avoid distortion of frame during handling and is to be removed later after fixing of frames. When to fix? Some people prefer to erect the frames for doors and windows as the masonry work progresses while others fix them in position after completion of the structure. In the first case, advantage is of proper embedment of holdfasts and no masonry needs to be dismantled to insert the holdfasts. The disadvantage of such erection is that the frames are repeatedly subjected to application of water and may undergo warping. In the second case, the warping of frames is avoided but masonry needs to be dismantled at a number of locations to insert the holdfasts. Therefore, in case the wood is fully seasoned, one may go ahead with erection of frames with the progress of masonry. Otherwise, these should be erected after the completion of the structure. Fixing of
frames: While fixing the frames in position, care should be taken that these are fixed on the inner faces of external walls and not on the outer faces. For inner walls, the frames are to be so fixed that the doors open along the jambs. The frames should be checked to be truly in plumb. While fixing, these should so project from the faces of walls that after the plastering of walls, the frames should become flush with the plastered surfaces. Protection of frames Before fixing of frames at site, the surfaces coming in contact with masonry should be painted with two coats of hot coal tar creosote oil conforming to IS 218. This oil protects the wood from moisture and insect attack. Add 20% chlorpyriphos to it for termite resistance before application on the frames. The carpenters are in the habit of applying mansion polish on the door and window frames to save them from water used for curing during construction. Mansion polish is like wax and even though it is removed later, its residual effect resists proper application of polish on the wood at later stage. One should, therefore, avoid using mansion polish and prefer application of a mixture of fevicol or glue and chalk mitti on the frames. This mixture saves the frames from water , is easy to remove at a later stage and doesn't resist polishing of frames in any way. This column is published fortnightly |
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Will the cost of construction be included in the total cost of a plot?
S. C. Vasudeva Q.I am a bank employee. I have a plot allotted in my name under a HUDA scheme in 1984. The allotment was made on the basis of a draw of lots conducted by the bank at that time. The allotment cost was about Rs 60,000 at that time which was paid by me in installments. The registry of the plot was done in October, 2009 on amount of Rs 1.21 lakh after I constructed on the 25 per cent area of the plot by spending Rs 6 lakh. From then till now I don’t have any property sale or purchase deed. Now I want to sell the plot and am planning to buy from this money our ancestral property which is in the name of my cousin at present.
Suppose I sell my plot for Rs 50 lakh and buy my cousin’s property which costs about Rs 20 lakh, then how will the tax liability be calculated? Will I get the benefit of the construction I made on my plot for Rs 6 lakh in 2009? A.The cost of the plot and that of the construction would be taken into account for the purpose of computing the long-term capital gain arising on the sale of the house. The total cost of the house would be Rs 7.21 lakh. You have not indicated the date of completion of 25% construction put up on the plot. As the registration of the plot in your case was effected in October, 2009, the construction must have been completed thereafter. It seems the house has been held by you for a period of less than three years and therefore it will be treated as a short-term capital asset. The amount of Rs 42.79 (50 lakh – 7.21 lakh) would, thus, be treated as a short-term capital gain and would be taxable at the normal slab rate. So you would not be entitled to any exemption in respect of such a gain if you sell the house at this time. Can gifted amount be deducted from one’s income?
A.It was explained in the reply to the query being referred to by you that the gift received by a donee would be added to his capital and correspondingly reduced from the capital of the donor. The gifted amount is not deductible from the income of the donor. However, in case the gift is in the shape of cash, cheque or any other income-bearing asset, it would eventually reduce the income of the donor as he would not be in receipt of any income from the amount / asset so gifted.
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Launch pad
Berry Developers and Infrastructure Pvt. Ltd. (BDI) in association with Pahwa Buildtech recently announced the launch of their project — North Star— in Bhiwadi. The project has unique podium design concept. This 10-acre project will have 960 units with provision for ample sunlight and cross ventillation.
It has various options of flats such as 2 BHK (1140 sq.ft.), 2 BHK plus study (1340 sq.ft.), 3 BHK (1600 sq.ft.), 3 BHK plus study (1875 sq.ft.) 4 BHK (2580 sq.ft.). The price is from Rs 2500 sq.ft. onwards. Bhoomi pujan at Maya Garden City Bhoomi pujan ceremony was organised at Barnala Builder’s new venture Maya Garden City on Chandigarh-Ambala Highway, Zirakpur, earlier this week. This project is a 37-acre mini township that will have fully finished apartments with amenities like geysers, split ACs, fans, RO system, tube lights/ CFL. The group has already completed its Maya Garden Phase I where almost 1500 flats are occupied at present. — As per information provided
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In this time of small families and busy lifestyles, people prefer to buy apartments and flats rather than big houses as these are easier to maintain. However, the challenge here is in making the most of the available space. While requirements and activities vary with the age group of the family members, one is always faced with dilemma of making the available space stretch in order to accommodate everyone's needs.
While infrastructure and development projects are considered beneficial for the health of the realty sector in any area as they lead to price appreciation of residential as well as commercial properties and high rental returns, Bathinda is witnessing a reverse trend at present. The residential rentals in Bathinda city, areas of Raman Mandi, Talwandi Sabo and Dabwali have nosedived post the commissioning of the refinery. House rents in these areas have gone down by more than 30 to 35 per cent over the past six months. Earlier, a 2 BHK rented accommodation on second floor in Bathinda city would fetch Rs 10, 000. But with the refinery employees shifting to their newly constructed colony within the commercial establishment's campus at Raman and many others leaving after the completion of the project, no one is ready to pay such a high rent.
In this time of small families and busy lifestyles, people prefer to buy apartments and flats rather than big houses as these are easier to maintain. However, the challenge here is in making the most of the available space.
For the past three decades, many materials have been used to replace the wood used in door and window frames, popularly called chaukhats. However, no material has seen a major success and wood still remains the most preferred material for door and window frames. PVC, aluminum and iron has seen some success while stone has fallen flat. PVC and aluminum have been adopted by a few apartment builders while angle iron or pressed steel frames are being used in some constructions in order to keep the cost low. But by and large a house builder's choice invariably remains the wood only.
Q. In reply to a query published in these columns (Dated March 19) regarding gifting property you had mentioned that “the gift results in an increase in the capital of the donee and decrease in the capital of the donor… ”. Does this mean that the gifted amount is to be deducted from the total income of the donor while calculating income tax for a particular year?