Showing posts with label BUY. Show all posts
Showing posts with label BUY. Show all posts

Friday, July 3, 2020

Is it wise to invest in the Indian real estate market in 2020-2021?


Finance Minister, Nirmala Sitharaman presented the Union Budget 2020-21 on 1 February. Highlights of the budget for the real estate sector are as follows:

Deductions on affordable housing were allowed on housing loans sanctioned on or before March 31, 2020. In order to ensure that more people take advantage of this benefit and to pursue affordable housing, the date of loan approval has been proposed to be extended by 1 year. To boost the supply of affordable homes in the country, a tax holiday is being provided on the profits earned by the developers of the affordable housing project till 31 March 2020.

Currently in real estate transactions, when taxing income from capital gains, business profits, and other sources, if the consideration value is less than the 5% circle rate, the difference is counted as income for both the buyer and seller. To reduce the difficulty in real estate transactions and provide relief to the sector, it has been proposed that the limit be increased from 5% to 10%.

An investment of Rs 100 crore will be made on infrastructure in the next 5 years in various sectors like housing, infrastructure, energy, healthcare, educational institutions, transport, logistics and warehousing, irrigation projects etc.

The year 2019 was a period of many highs and lows for the Indian real estate market. The ongoing crisis resulted in a decrease in liquidity and a slower pace of sales improvement. However, on the positive end, the successful launch of India's first real estate investment trust (REIT) opened up new avenues for investment, while several positive government initiatives provided much needed relief to the sector. 

According to research, the housing sale price of India's top 9 listed players reached in the 2nd and 3rd quarters of 2019, an increase of 5%. 2019 saw a 4–5% annual increase in housing sales with over 2.58 lakh homes sold during the year. The new housing launches in 2019 saw 18-20% annual growth and developers are expecting sustained efforts of the central government such as additional cuts on loan interest, GST rate cuts, alternative investment funds for stalled projects and credit guarantee scheme changes in the sector will be strengthened.

Wednesday, June 24, 2020

You Should Know Before Buying Vastu Compliant House


The ancient science of Indian architecture, Vastu Shastra places great emphasis in choosing the right direction of the house, the size of the plot, air and ventilation to help the residents live a happy, healthy and prosperous life. Although most Indians still look for Vastu-compliant homes, the truth is that not all apartments follow the principles of Vastu Shastra. Rather, real estate developers in India only focus on optimal use of space. But many builders promise to provide architectural-friendly flats. Well, your decision to buy a house should not be influenced by attractive advertisements by real estate developers. Rather, you should flat check whether everything is designed perfectly. In this blog, we've shared some excellent tips to help you test whether a flat is Vastu-compliant.

1) Check the entrance or Main door.


By the way, most people think that the north-eastern entrance is the best, but there are actually 32 entrances in Vastu Shastra. And each direction has its own importance. East, west and north-facing entrances are always good. But south facing doors can either be extremely beneficial for housework.

· The main gate should not be in the southwest, northwest and southeast.
· While most Vastu experts suggest that northeast entrance is most beneficial.
· Others say that it can be extremely dangerous in some cases.
· The main gate should not be placed directly in front of the lift or stairway.

2) Kitchen Location.


· The kitchen should be in the right direction to balance the fire element of the house. Fire signifies wealth and cash flow.
· Having a kitchen in the north-east and south-west areas should be avoided.
· Vastu Shastra suggests that the kitchen should be kept in the south-east direction. However, this may not always be possible in modern homes. In such a case, make sure that the gas burner is in the south, west or northwest corner of the flat. And, while cooking, you should face east or north.
· The kitchen should not have black or blue tiles, floors or slabs. And, avoid granite under the gas burner. A marble slab is highly recommended.
· The cabinet should be placed on the southern wall.

3) The rooms.


· The master bedroom should be in the southwestern direction of the flat. And, the children's room should be in the east or north direction.
· The living room should be either in the east area or central area of ​​the house.
· There should be no bedroom between the east and south-east area of ​​the house as it may affect the health of family members.
· Bedrooms on the southern and western side are to be used by sons and are perfect for daughters who are on the northwest side.

4) Toilet or Bathroom.


· Modern homes have one or more toilets, which are connected to a bedroom or living room. Ideally, the washroom should be in the northwest direction. And, toilets in the north, north-east, south-east, and south-west directions are considered inauspicious.
· The bathroom or toilet door should not be faced in the kitchen.

General points you should know when purchasing property:-


· The land on which your apartment is built must be either rectangular or square in shape. Irregular shaped plots are considered inauspicious.
· There should be no pond near the south and west direction from the house. You should check if there is any swimming pool in these directions of your flat.
· Avoid balconies or courtyards in the western or southern direction.
· Apartments in red, black or sky colors should be avoided as these colors attract negative energy.
· The puja room should be either in the northern or eastern direction.
· According to the guidelines of Vastu Shastra, the ladder should not be in the north-east corner as it troubles the residents.
· The total number of doors and windows should be 2,4, 6 etc.
· All the doors of the flat should open inwards.

Monday, June 22, 2020

Builders Priority to Clean Ready-to-Occupancy Inventory During COVID-19 Outbreak

Real estate sales in India were improving in the first quarter of 2020, until the social distancing advisory was implemented by the government, with the outbreak of the COVID-19 virus continuing, reducing site visits. Subsequent lockdown forced house buyers to postpone the decision to buy their home until the government and the market had more clarity than stability.

The economic relief measures announced by the government are extremely positive for the real estate sector on a large scale. This measure will compensate for the short-term impact of the crisis and increase liquidity, thereby easing credit flow and reducing the pressure of delivery deadlines. This will allow real estate developers to reorganize their business strategies and focus on high priority operations without additional financial burden. It will also ease home buyers' concerns and accelerate the completion of delayed projects. This step highlights the magnitude of the realty sector in India. Being the second largest employer in India, it is mandatory to protect the welfare and interests of all stakeholders.

Currently, the priority of most builders is to sell ready-to-occupant inventory. Now that the government has relaxed the lockout, the market may pick up momentum again, with more buyers entering the market. Although sales will be comparatively slow, it is unlikely to affect real estate prices overall, which has also maintained flexibility during demonetization and other reformist changes previously announced by the government .

In these challenging times, as people have realized the importance of owning a house, the demand for residential properties may increase in metro cities.

Better demand for property is likely to have a positive impact on property prices.

The place for price appreciation in real estate as the city offers quality housing options at affordable rates. Although the lockdown caused a short period of delay in construction activities, a reduction in prices is unlikely.

Saturday, June 6, 2020

Should know about payment of guest accommodation agreement


Paying guest accommodation is becoming a preferred option among students and young employees. Staying away from his hometown, a Paying guest provides a homey atmosphere to flourish. Students look for excellent facilities, good food, high security and many other facilities when choosing paying guest accommodation in various cities, but they often ignore the importance of signing a Paying Guest Accommodation Agreement with the landlord. By doing this, they create sufficient scope to pay huge deposits and to rent for various facilities. In addition, they may end up in a variety of landlord-tenant conflicts, with no valid way of proving their point. Before digging deeper on the importance of a paying guest housing agreement, let us understand the important difference between a paying guest and a tenant.

Paying Guest vs Tenant


As a tenant one gets a separate flat or a different part of the rented house. And, the landlord is not allowed to enter that premises, without the permission of the tenant. On the other hand, a paying guest resides within the landlord's premises and can share many common facilities with him. Now, as the paying guest is not a tenant, he / she cannot enjoy all the privileges that have been given to a tenant under the law. But the government has provided special provisions for paying guests.

The Urban Development Department has come forward to regulate the functioning of payment of guest accommodation across the state, making their registration with the designated officer mandatory. In addition to determining registration with fees, the rules also specify the number of guests who can stay at a Paying Guest. In addition, the law also makes it mandatory for a landlord to sign a paying guest agreement.

Benefits of signing a Paying GuestAgreement


Once you have selected a Paying Guest, the next thing you need to do is a Paying Guest Agreement with the landlord. It may be possible that your landlord may not be convinced about entering into a legal agreement. If this is the case, you should convince them of the benefits of signing this agreement. A well prepared Paying Guest settlement protects both the owner and the guest paying against future legal battles. It also ensures that either party does not deviate from the rules that were previously agreed upon.

The Paying Guest Agreement also serves as proof of local address for the paying guest. Also, it will provide proof of the rent you are paying to the landlord and the facilities he is obliged to provide to you.

How to sign a Paying Guest Agreement?


A paying guest agreement must be documented on stamp paper. As long as the agreement is signed on the stamp paper, it does not need to be notarized. Remember that if there is no agreement on the stamp paper, it cannot be used as a document of proof in the courts in case of disputes.

The agreement must contain the name and permanent address of both the landlord and the paying guest. It should be signed by both the parties and two witnesses.
Also, the agreement should provide detailed information about facilities, rent, security deposit and the code of conduct expected from both parties.

Since the Paying Guest Agreementis a license to live and use the premises only, it can be made for 1 year, 1 month, 6 months or any period.

Friday, June 5, 2020

How to manage joint property ownership after divorce


Family is the most integral part of making a house a home. But unfortunately, divorce has become a harsh reality of society. In modern times, both partners contribute to buy a property. And, thus, when they split, each partner tries to claim ownership of the property. Of all the assets you brought as a pair, the real estate properties call for the most attention.

Between emotional turmoil and social pressure, the division of property can be quite difficult. To claim their respective shares in the property, both parties must provide proof in the form of clear documentation. There can be real confusion over who pays to buy the property. Therefore, each party is required to produce proof about every penny spent on the property. In this article, we have shared some tips on how to manage property ownership when you say it with your partner.

How to divide residential property after divorce?


There are three simple ways in which a couple can divide a real estate asset. They are mentioned below:

· Both parties can rent the property and share the rent equally. It is a good idea if there is speculation that the property price will increase over time. You can continue the rental income until the property rate goes up and you find suitable buyers for it.

· If it is difficult for one spouse to leave the house, the other may rent part of the other party. If the former wife decides to rent it from the husband, it can be adjusted against any alimony allowance made by the husband.

· The third option is that one partner buys the other partner's property by paying in cash. But if there is confusion on the part of each partner in the property, it is better to clarify it first.

If there is a long-term home loan that has to be repaid by each partner, it is best to keep paying EMIs. And, until then, they can rent property and share income.

How to establish your claim after divorce?


· If each partner can present well-written documents proving equity in your claim and assets, the division of assets becomes easier. However, in the case of joint ownership of property, both husband and wife legally will have equal rights over the property.

· However, if a party contributed more money to purchase the property, it can claim a higher stake in the property by furnishing valid documents such as bank statements and EMI payment receipts.

· In India, many husbands decide to register a house in their wife's name to take advantage of reduced stamp duty. In this case, the husband cannot claim his share in the property even though the entire property has been purchased by him. Indian laws on marriage recognize the ownership of homes.

· If the property is jointly owned by the husband and wife, after the divorce, the former wife is entitled to receive 50% of the property, even if she has not contributed towards purchasing the property.

· If a property is owned by the spouse alone, the other partner cannot make any claim on the property acquired themselves if they decide to divorce.

· However, if the wife has contributed to the purchase of the property, but the title deed is only with the husband, then she can claim her share by presenting proof about payment of EMI and other details.

· If the wife has contributed towards the down payment of the property while paying the monthly EMI, the husband can claim ownership if he pays the amount extended by his wife.

Can every real estate be divided after a divorce?


Only property that was brought after marriage can be divided after divorce. Assets acquired by husband or wife as inheritance cannot be divided.

If India, if a woman wants a divorce, she cannot claim rights in her husband's property. However, if the husband wants a divorce, he must pay a regular maintenance fee to his wife or support her by providing the property.