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| REAL ESTATE |
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area watch: jalandhar
how to get things fixed
Green house
Apartments top choice of second home buyers
launch pad
Realty bite
Land Bill will make aggregation easier
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area watch: jalandhar
Missing NRIs Interestingly, NRIs, who have traditionally been “aggressive” buyers as far as property in the state and northern region is concerned, also seem to have developed cold feet this year. The realty scene in Doaba region, known to be the heartland of NRIs, has always been dominated by NRIs as far as acquisition of residential and commercial properties is concerned. But, this time around, they are nowhere to be seen and according to experts such a situation has emerged for the first time over the past two decades. According to market watchers recession in North America and Europe has forced a large number of NRIs from the region to not only stop purchasing property back home, but a number of them have also listed their properties for sale. NRIs, sources revealed, were selling their Punjab or India-based properties to ‘lighten’ their debt burden abroad. Dipping spirits The situation is so gloomy that of late real-estate operators have started admitting it openly that it is a ‘panic’ situation in the market. Besides, global recession they also hold the increasingly unfriendly stance of the Punjab Government towards the real-estate business responsible for the prevailing lull in the market. Another jolt to the real estate business has come from banks which have increased interest rates for commercial property loans from 12 to 14 per cent. “Tightening of bank financing has really discouraged buyers particularly, when it comes to commercial properties,” laments Rakesh Sabharwal, one of the Directors of President Hotels and the Director of the Jalandhar-based Hamilton Land Developers Private Limited. Trade insiders say that there is no scope for the situation becoming positive in the next few months. “There are no indications from anywhere that the trade will pick up in the near future. We don’t see any silver-lining so far. We had to shelve our
ambitious commercial project due to poor response and lack of requisite finance in the market,” says Sabharwal. No festive time Many schemes offered to buyers during Navratras have also failed to lift the spirits as demand has hit an all time low. “How can we expect any positive change when the state government is not encouraging the real-estate trade and we are neck deep in recession? It seems that the after effects of the global recession currents emanating from North America have reached us now and these would continue to grip the business for another two-three years,” said Sabharwal. Developers, who have residential and commercial projects coming up in the city are a worried lot as not many buyers are there in the market. Rajvir, a representative of the Omaxe group, says the demand has nosedived by a disturbing 30 per cent straight. “It is for the first time that I have witnessed such a dim scenario around Navratras. Earlier people used to wait for Navratras to finalise real estate deals for investment purpose. But this time there is hardly any buzz about property all over the state be it Jalandhar, Ludhiana, Amristar, Patiala or Mohali,” he adds “The volume of sale-purchase is dismal except for a few need-based residential property acquisitions. The investor has vanished as property has ceased to be a lucrative proposition for him. He is looking for other options for growth. There is no future trading of property as well this year so far,” says Amanbir Marwaha, owner of Jalandhar-based Unison Group of Industries and a real estate investor. He attributes the fall in demand to a wide range of factors, including lack of government policies to encourage trade. “The constant threat of withdrawal of power of attorney as an instrument for registration of land deeds has really scared the investors. Now, the government has fixed December 31 as the last date for registration of land deeds on the basis of power of attorneys. This has made traders and investors very cautious,” he added. While expressing concern over the current situation in the state Marwaha said a booming realty sector is a sign of good fiscal health of a state and contributes to its growth but in Punjab the government policies were largely responsible for the sharp decline in footfall at revenue offices. He said banks were going dry as far as financing commercial property was concerned. “A senior bank officer disclosed that only housing finance applications were received by them and their number too was going down,” observed Marwaha. Hope sustains According to Jalandhar-based financial analyst Ashwani Gupta investors and buyers will have to ‘wait and watch’ for the time being. “Property has always been attracting people and I don’t see how some rough patches could mar the growth ride of property sector. The gloom may last only for a few months or for another year. Eventuallu buyers will come back as the demand for housing will always be there,” he added while expressing hope that property business would resurrect like the proverbial Phoenix in near future. Agreeing with his logic Marwaha, too, is optimistic in his statement: “I have not lost all hope. I think we will see replication of the changing housing trends in the US and Canada where, people have started showing some interest in housing sector all over again.” So while the clouds of gloom loom large over the realty scene this festival season, there sure is a silver lining somewhere!
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tax tips
A.In the following cases the cost to the previous owner is deemed to be the cost of acquisition to the assessee: (a) The acquisition of property on any distribution of assets on the total or partial partition of a Hindu undivided family; (b) The acquisition of property under a gift or will; (c) The acquisition of property: Acquisition of property, by a Hindu undivided family where one of its members has converted his self-acquired property into joint family property after December 31, 1969.
Should I sell the flat before taking possession?
A.It would be advisable to sell the flat before taking the possession as in such a case you will be selling a right in the property. The date of acquisition will be the allotment date on which first installment was paid by you. In the given case the capital gain arising on sale of such right would be a long-term capital gain. You would be entitled to claim the benefit of indexation in such a case and such capital gain would be taxable @ 20.6%. In case the possession is taken, you will become an owner of the flat and the period of holding would start afresh from the date of taking the possession. Therefore, in case you take possession of the flat and sell the same immediately thereafter, the holding period being less than three years, the capital gain will be taken as a short-term capital gain which will be chargeable to income tax at the normal rates applicable to your total income. The tax on long-term capital gain can be saved by investing the amount of capital gain in tax-saving bonds issued by NHAI or REC within six months of the sale. The lock-in period of such bonds is three years. These bonds carry interest @ 6% p.a. The ceiling on such investment is Rs 50 lakh per financial year. There is no avenue for saving tax on short-term capital gain.
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REALTY GUIDE
A.The encumbrance certificate is used in property transactions as an evidence of free title/ownership. When buying an apartment, land or house, it is important to confirm that the land or property does not have any legal dues. A prospective home buyer must ensure that the property that he intends to purchase has a clear and marketable title. The encumbrance certificate certifies that the property is not mortgaged and has no legal dues. Encumbrance certificate for property is available from the sub-registrar’s office where the deed has been registered. This certificate is vital for buying property, applying for home loan or loan against property. Government authorities and financial institution like banks etc demand 13 years encumbrance certificate. You could demand 30 years encumbrance certificate to be checked. If you still have any doubts, then you can take a Possession Certificate of the ownership of the particular land, which is available from the town office. “Encumbrance” means the charges or liabilities created on a particular property, whereby it is held as a security for any debt of its owner that has not been discharged as on date. This certificate contains all the transactions registered relating to a particular property for a period (as required). Encumbrance certificates are issued in Form No. 15 or 16. If the property does not have any encumbrance during the said period, Form 16 will be issued i.e., certificate of Nil Encumbrance. If the property has any encumbrance registered during the said period form No. 15 will be issued. The certificate in Form 15 discloses the documents registered in respect of the property, the parties to the deed, nature of the encumbrance, amounts secured or transacted in the said deed, the registered number of the document, Book No., Volume No., date-wise.
Is it necessary to get conveyance deed? Q.I became a member of a cooperative group housing society in 2001 in Gurgaon under a HUDA scheme. The society got the possession of land in 2008 and started the construction of flats in 2009. The construction was completed in two years and I got the possession of my flat in January, 2012. Now the management of the society is asking members to register the deed of conveyance (registration of title deed). Kindly advise on the following points:
A. Registration means recording of the contents of a document with a Registering Officer. The documents are registered for the purpose of conservation of evidence, assurance of title, publicity of documents and prevention of fraud. Also, registration helps a purchaser to know if the title deeds of a particular property has been deposited with any person or a financial institution for the purpose of obtaining an advance against the security of that property. Thus, by Registration, a transaction of immovable property becomes a permanent public record. Secondly, according to the Transfer of Property Act right, title or interest can be acquired only if the deed is registered. Failure to comply with this is punishable with imprisonment of either description for a term, which may be extended up to 3 years and the offenders can also be liable to pay a fine of Rs 50,000 and Rs 10,000 for each day for continuing offence. Various individual notices have been issued to the colonisers but the legal provisions of the above said Act are not being complied with by most of the colonisers. Flat owners in the licensed areas, where part completion/occupation certificate has been granted, are advised to get the Deed of Apartment executed, by paying Stamp Duty as per law.
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how to get things fixed
If home repairs and small renovations have been tormenting you for years and the mere thought of the repairman gives you nightmares, then its time for you to re-organise the way you run your house. Renovations and small improvements need not cause a dramatic increase in blood pressure. Here are some valuable tips that would make handling repair jobs a lot more easy. Make a schedule Before starting any repair work, always make a schedule of things that you want to do, a rough estimate of the cost that will be incurred and if possible, estimate of the kind of materials required. This will help you to eliminate hidden costs and last minute hassles. Avoid doing things yourself Deal with a professional Always get a professional to do the job. Before starting the job explain to him the exact nature of the problem and how you want it fixed. Once the person has understood the task, then you must back off and let him do his job without any interference. Always fix the rate Before starting it is vital that you fix the rate. Being vague could land you in trouble and could also become the basis of dispute once the work is done. That's because there may be a difference between what you think the work should cost and what it actually does. Get in writing For big jobs like house painting and laying of pipes or cables insist on an estimate on a letterhead. If the person doesn't have a letterhead, make him write the estimate on a signed piece of paper. If the work is going to extend to days or weeks you must put down the schedule of payments. Keep your cool Dealing with repair people can sometimes be very frustrating, it is advisable to keep your cool. If you lose your temper the mechanic may in retaliation inflate his bill or if you annoy him a lot he could damage your equipment as well. Maintain relationship It is always advisable to maintain a long-standing relationship with a repair person or firm. This helps in building mutual trust and you can be sure of the person who you are letting into the house. This also saves from the agony of repeatedly calling the repairman for help. Be frugal While estimating the cost of repair always calculate on the higher side, because there is every possibility of the costs getting inflated during the course of job. Also, if you have a deadline in mind inform the repairman about it. Insist on a penalty clause that will ensure work is finished in time. Complain to authority If at all you are not satisfied with the services provided by the repair person always talk with the highest person in his company. If he doesn't come from a company then talk to him and insist he does the work to your satisfaction before paying him. Insist on a bill Once the work is done insist on a bill. This will come handy if there are any guarantees involved. If not, it will still be useful as you have proof of the work done and money spent if things go wrong again and the repair person has to be called repeatedly. A slight pat on the back Appreciation of the work and the person's skill will go a long way in building long standing bridges between you and the repairman. These small things go a long way in establishing lasting relationships and ensure that your work is done fast and qualitatively.
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Green house Such gardening becomes all the more relevant in today's context as in most of the townships potable water is used for gardening. This results not only in the shortage of drinking water but also tends to kill water guzzling plants for want of water. Such effortless gardens are ideal for people who have hardly any time to spare but have a keen desire to have a garden. To give a different dimension and colour to the xeriscape, a few water-loving plants should also be planted at suitable places. Care should be taken to ensure that these plants are grouped separately from drought-resistant plants for ease in watering. How you can save water There are certain plants that require less water for growth. Normally plants that are able to survive a dry spell of about one to two months may be classified as drought-resistant plants. To aid xeriscaping, there is an option to meet even reduced water requirement by: What you can plant The most important aspect of xeriscaping is to identify plants that need less water and can accept neglect while looking good. Some of the plants that meet these criteria and can be planted in pots or in ground are: Other plants falling in this category may also be tried to add variety and colour to the garden. — The writer is the President of National Cactus and Succulent Society of India. Tips for a healthy garden
ADVANTAGES
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Apartments top choice of second home buyers The property market in India has seen a lot of action over the past decade. Decent economic growth, easy availability of finance coupled with high disposable income has made many young Indians look favorably at multiple real estate investments. What are the various considerations when a second time home buyer sets out to search for a property? Is there a change in the mindset of the home buyers? To understand this and many more questions related to the psyche of a second time home buyer, Makaan.com conducted this survey that ran on the website for a week starting September 1. More than 1,400 second time home buyers from across the country including key cities of Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune,Kolkata, Ahmedabad, Chandigarh etc. took part in the survey. Commenting on the preferences of second home buyers, Aditya Verma, COO & EVP of Makaan.com, said, “The survey threw three interesting findings: n Home buyers invest in another home primarily keeping their “future family requirements” in mind. This finding is different compared with the popularly perceived factors like “financial security” and “steady rental income”. n In spite of high property prices and even higher interest rates majority home buyers are willing to buy their second home in the next 6-12 months. n While the stock market returns are becoming unpredictable, real estate is emerging as an asset class with promise of high RoI. As per home buyers the RoI expectation from a real estate investment continues to be over 15% pa. Highlights Apartment is the top priority as a second investment (43% opting for it) Almost 47% wanted a second investment to fulfil future family requirement Almost 51% second home buyers are willing to make the second investment in metros and Tier I cities Around 62% respondents expected returns ranging from 15% and above A majority of second home buyers were looking for a home in Rs 40 lakh budget.
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launch pad
Tuscan Residency- Exclusive in Mohali NCR-based realty firm Spaze Towers Pvt Ltd has launched Kalistaa — a luxury housing project in Sector 84, Gurgaon. This residential colony spread over 2.5 acres will have 62 high-end luxury apartments. According to a company press release Kalistaa will have one iconic tower with G+20 floors. Each floor will have three spacious apartments which will be open from three sides, with a choice of 3 and 4 bedrooms apartments attached with study and servant rooms. Each 4-bedroom apartment will have a private splash pool. The project will have an exclusive club with a rooftop pool on top of the tower. The apartments will be in a price range of Rs 2-3 crore. The starting price range is Rs 7,080 psft for 3 BHK (2905 sq ft) and 4 BHK (3865 sq ft) apartments. E-City in Bengaluru Godrej Properties Ltd. recently launched residential project Godrej E-City, in Electronic City Phase-1, Bengaluru. Spread over approximately 15 acres, this project will be launched in three phases. Phase 1 will consist of eight 5-storey towers and offer about 280 homes across 3.6 lakh sq. ft. Customers can choose from 2, 2.5 and 3 BHK apartments, ranging from 964 to 1,625 sq. ft. at prices starting from about Rs 37 lakh. The entire development is expected to have approximately 800 apartments across 1 million sq. ft. of real estate. It is located near NICE Road and the Elevated Expressway on Hosur Road — Based on information provided by the developers
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Realty bite
Realty firm Ansal Properties and Infrastructure and Canada’s education group Maple Bear have entered into a partnership for setting up 10 pre-schools in Ansal’s projects across north India entailing an investment of about Rs 60 crore.
Maple Bear Global Schools operates in India through a joint venture with Modi group firm Modi Edutech and currently has about 30 schools in operation across the country. “We have tied up with Maple Bear, India, to open pre-schools in township and commercial projects across north India. It’s a 50:50 partnership. To start with, we will open 10 schools,” Ansal Vice-Chairman and MD Pranav Ansal said. The company would provide land and also construct building for opening these schools while management would be with Maple Bear, he said, while noting that provision of schools add value to the real estate project. Asked about investment, Ansal said it would be about Rs 5-6 crore per school. Maple Bear India Chairman Alok Modi said the company plans to open 300 pre-schools across the country, of which 200 would be in franchisee mode. “We have opened a pre-school in Ansal API’s mall in Gurgaon. Expanding our partnership, we will open 10 more pre- schools with Ansal API in the next 12-18 months,” he said. The locations for schools include Greater Noida, Kundli, Kurukshetra, Ludhiana, Lucknow, Jodhpur and Meerut. The fees are in the range of 25,000-70,000 per year depending on the locations. Maple Bear Global Schools Vice-President Gerald Macleod said it has business in nine countries, including India.
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Land Bill will make aggregation easier Land aggregation would be easier with the panel of ministers proposing that consent of only 66 per cent of land owners will be required to acquire land for developing projects, developers body NAREDCO said while commenting on the Land Acquisition Bill.
Earlier this week a Group of Ministers (GoM) cleared the long-delayed controversial Bill, paving the way for its introduction in Parliament in the forthcoming Winter Session. The final draft of ‘The Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill’ now proposes consent of two-third of “land losers” (from whom land would be purchased) for acquiring land for public-private-partnership and private projects. “As is being reported, the reduction in consensus of 80 per cent land owners to 66 per cent is a welcome move and will make land aggregation process simpler,” NAREDCO President Navin Raheja said in a statement. However, Raheja said the compensation offered to land owners in the proposed Bill would increase project cost and demanded that the government should rethink on this. “The compensation amount of 2X for urban areas and 4X for rural areas is going to increase the cost of establishing projects. To benefit a particular segment of land owners, this cost would be borne by every Indian which should actually be reviewed and rethought once again,” he added. CREDAI President Lalit Jain said the consent formula arrived by the GoM is ‘acceptable’ but added that determination of price should be based on negotiations between buyers and sellers. Ramprastha Group CEO Nikhil Jain, however, said, “The Bill will bring clarity in the acquisition of land for housing development. The impetus on segregating retrospective clause from the Bill will definitely bring transparency and speedy redressal on issues pertaining to land acquisition, which has become bane of urban development these days.” |
Navratras have hardly brought any cheer for builders, developers and real-estate operators in Punjab and the region, which has recorded a ‘disturbing’ 30 to 50 per cent fall in sale and demand of residential and commercial properties.
Navratras have hardly brought any cheer for builders, developers and real-estate operators in Punjab and the region, which has recorded a ‘disturbing’ 30 to 50 per cent fall in sale and demand of residential and commercial properties.
Q.Is there any provision in the Act whereby the cost of the asset is to be taken as the cost to the previous owner where the capital asset is acquired by inheritance or any other mode of acquisition. If so please let me know what are the situations in which cost to the previous owner would be taken into account for the purposes of computing the capital gains? — k. paul
By succession, inheritance or devolution, or 
Q.I had booked a residential flat in April, 2008 by paying an initial sum of Rs 20 lakh. The balance amount was paid in installments over the years. The total cost of this flat is about Rs 80 lakh. Now, I have been asked to take possession of the flat. I had bought it as an investment and would like to sell it as I am getting about Rs 1.50 crore. Kindly clarify:
Q.I want to purchase a property in Punjab. Somebody has advised me that before purchasing a property one should take an encumbrance certificate. What is an encumbrance certificate? — b.s cheema
Has the flush in your bathroom been in dire need of repair for a month? Is the paint in your living room peeling off? Has the CD player completely stopped working? Does the drip-drop of the kitchen tap seem like Chinese torture?
Unless you are an expert, do not try to fix any broken glass pane, or dripping taps or a leaking flush. Most importantly never try and fix electric problems if you don't have the know-how. You are bound to make a bigger mess and the repair costs could go up dramatically.
Water and power shortage have become major issues in urban areas. Residents have to bear with cuts in water and power supply on a regular basis. Maintaining a garden becomes a tall order in such a scenario. Having a xeriscape is a wonderful option which drastically cuts the requirement of water without sacrificing much on the aesthetics of the garden. Xeriscaping is a technique of crafting a piece of land using plants that are slow-growing and drought resistant. It is an alternative to other types of traditional landscapes and gardens but, in no way inferior to them.
Drought resistant and water-loving plants should be grouped separately for ease in watering.
It saves water.
Most of the people interested in buying a second home prefer an apartment in the price range of Rs 10 to 40 lakh and most are willing to buy a second home in metros and tier I cities. These are the findings of a second home buyer preference survey conducted by real estate website Makaan.com recently.
The ATS Group has launched a premium signature collection of ultra luxury residential homes ‘ATS Triumph’ on the Dwarka Expressway, Gurgaon. Based on a Spanish architectural theme, the project is spread over 12 acres and will have eight towers and 443 distinctively designed homes with expansive layouts and generous living and guest spaces. It will have 3+1 and 4 + 1 BHK available in 2,290 sq ft and 3,150 sq ft, respectively and each floor will house only two apartments. Each apartment will have wooden flooring, imported marble, premium fixtures and modular wardrobes, increasing the efficiency of the living space.
The TDI group has launched ‘Tuscan Residency-Exclusive’ floors in its integrated city project in Sector-110 and 111, Mohali. Giving details of the project Sanyam Dudeja, COO, Punjab of the group said, “Tuscan Residency-Exclusive offers ergonomically designed individual floors as G+2 on a plot size of 250 sq yd. Buyers can also avail of a subvention scheme wherein the investor pays only 20 per cent of the property value at the time of booking, 75 per cent from bank and the remaining 5 per cent at the time of possession and also housing loan with other leading banks.” A ground floor unit with a spacious back-courtyard is priced at Rs 54 lakh; a first floor unit with spacious balconies is priced at Rs 48 lakh and a regular second floor unit with open to sky terrace and 50 per cent roof rights is priced at Rs 47 lakh.