Demonetization Move on Real Estate Industry...!

8^th November 2019 has been a historic day for both India and the United States, with many successful events. America saw the remarkable victory of Donald Trump. To curb black money, Narendra Modi (Prime Minister) announced the sudden withdrawal of 500 and 1000 rupee notes.

Encouraged by these developments, the sensex opened lower, during demonetization gold jumped by Rs 900 to a three-year high of Rs 31,750 per ten grams.

Soon after the decision to discontinue 500 and 1000 rupee notes, the common man (Aam Aadmi) went helter-skelter. In no time, the Internet was filled with advice on where you could use your leftover notes and how to make the most of it. Some restaurants and gyms in Delhi were quick to come up with attractive plans and proposals.

So, what are the motives behind this so-called strategic move? Well, it seems that the Income Tax Department has not been very successful in recovering black money, despite adopting the approach of “carrot and stick” to expose black money.

After the benami transaction bill, RERA, and GST, it is another step by the central government for increased transparency and accountability in the sector. This demonstrative decision is also likely to bring more professionalism to the field as only reliable developers who take check payments will succeed.

With this, the confidence of global investors who have seen large investments in Indian markets is also likely to be shot in the arm. About one-third of India's real estate economy is powered by black money. Therefore, the move is likely to enter black money with immediate effect and will help curb unaccounted money in the region.

Now talking about its impact, the move is likely to have a positive impact in the long run. However, in the short term, it will cause disruption. This step can prove to be a boon for the gold market and e-wallet. However, if we take a look at the stock market data this morning, most of the divesting stocks were from the leading real estate companies.

Surgical strikes on black money will reduce inflation, which will benefit real buyers. The move will bring more transparency in the country's financial system, allowing India's GDP to flow through the digital pipe, thereby improving the digital economy. This decision is positive for end-users who want to buy their dream homes. With the implementation of the Real Estate Regulatory Act (RERA), this sector is going to be purified soon and will also boost the image of India globally.

The commercial real estate in India can be categorized in the industrial property, office buildings, hotels, medical centers, malls, shopping centers, retail stores, farm land, warehouses, multifamily housing buildings & garages. In India, SuGanta Realty Services llp is buying power of people has improved due to the growing economic situation of India & which is the best cause of rising demand in property investment with us. 

Pune: 40% of new supply is in the affordable segment

Pune recorded the highest price appreciation among the sixteen cities tracked by National Housing Bank's Residex. It also mentions that Pune's unsold inventory is 13 months, which is much lower than other cities.

Developers in Pune are responding to a clear call from Housing for All by 2022.

Commenting on this, Arvind Jain, managing director of Pride Group, says, "Pune's outstanding performance comes as no surprise, and it is unwavering belief that it was showcasing users and investors in Maharashtra's most dynamic economic power house is."

The city of Peshwas has come a long way in its real estate journey in the last five to seven years. From information technology to manufacturing to hospitality sector, Pune has all the right economic factors. In addition, its involvement in the program of 100 smart cities has reduced its arms.

Affordable Growth in Segments

                          

So, has Pune climbed the realty ladder? By the way, the confluence of economic drivers combined with affordable (read realistic) property values ​​has worked in Pune's favor. According to research by SuGanta Realty Services llp, the share of affordable projects was 42 percent in 2014, which increased to 49 percent in 2015. While other cities declined in the same period, Pune developed as a showstopper in the supply of affordable units.

Continuing the trend, Pune also recorded a healthy supply of affordable projects. According to the data, about 40 percent of the new supply was in the affordable category, followed by luxury and mid-segments with 36 and 24 percent respectively. Wakad, Talegaon, Chikhali. Moshi and Undri were the maximum five micro-markets, with a maximum number of inexpensive units.

“Affordable housing is in perennial demand in Pune. Although the premium and ultra-luxury housing categories are seeing stability rather than real growth, the affordable homes segment shows healthy demand and strength,” explains Kishor Pate, CMD, Amit Enterprises Housing Limited.

1 BHKs: Solution to Affordable Housing?

Another noted trend is that like other cities, there were significant launches of compact homes in Pune with about 28 per cent of the 1 BHK units in the projects. This clearly indicates that the city offers a plethora of options for both end-users as well as investors.

Recently, Maple Group announced the launch of 10,000 smart 1 BHK homes ranging from 281-302 sq ft. In Pune it will be built over a period of three years starting May 1, 2016 and spread across ten locations in Pune.

With the unique convergence of economic drivers, Pune is most likely to outperform and surpass other cities in times to come.

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Government approved construction of more than 1.4 lakh houses under Pradhan Mantri Awas Yojana (Urban)

The Center on July approved construction of about 1.4 lakh houses under the Pradhan Mantri Awas Yojana. Permission was granted to construct around 1,40,134 more affordable houses for the benefit of the urban poor, taking the cumulative number of houses to be built under PMAY (U) to more than 85 lakhs.

The Union Housing and Urban Affairs Ministry said in a statement that the approval was given at the 45th meeting of the Central Clearance and Monitoring Committee (CCMC) headed by HAA Secretary Durga Shanker Mishra.

Under the sanctioned houses, Uttar Pradesh was sanctioned 54,277 houses, while West Bengal got approval to construct 26,585 houses, followed by Gujarat (26,183), Assam (9,328), Maharashtra (8,499), Chhattisgarh (6,507), Rajasthan. (4,947) joined. ) And Haryana (3,808) under PMAY (U)

The statement further said that a total of 492 projects would cost Rs 6,642 crore, out of which the Center approved financial assistance of Rs 2,102 crore.

Additional Information about Pradhan Mantri Awas Yojana:

Pradhan Mantri Awas Yojana (PMAY) has been introduced by Prime Minister Narendra Modi on 1 June 2015. PMAY scheme is an ambitious project of PM Narendra Modi. It is provided by the Government of India which intends to provide affordable housing to the urban poor. It aims to provide housing for all by 2022, by which time the nation has completed 75 years of its independence.

Under the scheme, affordable houses will be built in selected cities and towns using environmentally friendly construction techniques to privilege the urban poor population. Further, under the Credit Linked Subsidy Scheme (CLSS), beneficiaries under the PM Awas Yojana are fit for interest subsidy if they take a loan to buy or build a house.

Beneficiaries under the Pradhan Mantri Awas Yojana?

A beneficiary family would include a husband, wife, unmarried son and / or unmarried daughters. The beneficiary family should not keep a pucca house in any part of India in his / her name or in the name of any member of his family.

Identify and Select Beneficiaries under PMAY?

The Pradhan Mantri Awas Yojana (U) scheme mainly caters to the housing demands of the urban poor. The scheme provides housing facilities for people living in limited areas of slums, inefficient infrastructure, poor sanitation and drinking facilities.

The beneficiaries of PMAY (U)?

Mainly consist of Middle Income Group (MIG), Low-Income Group (LIG) and Economically Weaker Section (EWS). While the annual income of EWS category Beneficiaries is more than Rs.3 lakhs, the annual income of LIG and MIG beneficiaries is Rs. Can be between 3-6 lakhs and Rs.6-18 lakhs. While the beneficiaries of the EWS category are eligible for full support under the scheme, the beneficiaries of the LIG and LIG categories are only eligible for the Credit Linked Subsidy Scheme (CLSS) under PMAY.

To be identified as an LIG or EWS beneficiary under the scheme, the applicant is asked to submit an affidavit as income proof to the authority.

The term commercial real estate called investment/income property refers to the buildings or land that is intended to make a profit, either from capital gain or rental income on SuGanta Realty Services llp The commercial real estate in India can be categorized in the industrial property, office buildings, hotels, medical centers, malls, shopping centers, retail stores, farm land, warehouses, multifamily housing buildings & garages. In India, buying power of people has improved due to the growing economic situation of India & which is the best cause of rising demand in property investment. One more cause for increasing in the property-investment-demand is that in the great India, it is regarded as the finest investment since it promises high returns & huge profits.  

Builders can get 10 years tax exemption on rental profit tax on rental housing

According to the Income Tax Act in India, income from property is considered taxable. This tax is levied on income derived from a commercial, residential or industrial property. If income is received from a property, the owner of the property is required to pay tax on the actual income as well as the rental tax received from the property. Deemed rentals are analyzed by estimating the potential income that a property can achieve keeping in mind the parameters and dynamics of the market.

Rental Houses Tax on Property Income

Income from self-occupied property is deemed to be income from rented property and vacant property i.e other than self-occupied house, is taxable under the section "Income from property". The taxpayer is required to pay tax on the "annual taxable value" of the property, which is calculated after adjusting the deduction under section 24 from the Net Annual Value (NAV) of the property.

Tax waiver of 10-years

In lieu of the decline and slowdown in investment in the real estate sector, the Finance Ministry is open to considering a 10-year tax waiver for real estate developers on the gains from rental housing. This can be detrimental to supporting revived investments and subsequently promoting a slowing economy.

Pleading by Real Estate Industry

To address this issue, real estate developers have been directed by the ministry to make suggestions to address the challenges faced by the industry. In addition, developers have been asked to present a rental business model where deductions are reimbursed and exempted from taxes for a period of 10 years. The real estate industry has long been demanding that the government take steps to rectify liquidity shortages due to lack of funds from banks and NBFCs.

Current GST Waivers

Earlier in 2019, the GST Council dropped GST on sluggish housing to 1% on affordable housing and GST on 8% (without input tax credit) on under-construction houses to boost sluggish demand. In real estate. In addition, for ongoing residential projects, builders have the option to choose between the old GST and the new GST to facilitate input tax credit issues.

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Maharashtra government announces new redevelopment policy for rented building in Mumbai

The Maharashtra government has made public a new development policy for tenant-occupied shabby building in the suburban area and non-closed tenant-occupied buildings in the island city. Yes, this step came due to the recent demolition of the Ghatkopar building, which killed 50 people.  

This new policy, the notification of which has now been published by the Government of Maharashtra, is going to benefit ten-storey buildings and non-winding ten-storey buildings in the island city.

According to the Brihanmumbai Municipal Corporation, there are over 600 dilapidated buildings in Mumbai, which have been declared as dangerous structures. Almost every part of the country has such dangerous structures or buildings. The residents, especially those belonging to the ten buildings, live as landlords or owners of flats in these shabby buildings and do not undertake redevelopment work due to lack of any motivation.

The current policy is only for old closed buildings in the island city, where private builders receive additional construction benefits for redeveloping such properties and re-housing tenants in a new building. But they are properties that give tenants access to the housing authority, MHADA, which includes cooperative housing societies that were not previously covered under this policy.

Some of the salient features of this policy are:

1) Those who occupied this place before 13 June 1949 are covered under this policy.

2) Developers will get 50 percent incentive floor space index (FSI) for redevelopment of the building.

3) Redevelopment of old buildings requires 70% tenant consent.

4) A fund should be created by the landlord who will take care of the maintenance of the building for a period of 10 years.

5) Landlords should start the construction of the building within one year from the date of demolition and complete it within a period of five years.

6) Each tenant will be given a carpeted area in the old building with a minimum area of ​​300 square feet and a maximum area of ​​753 square feet.

7) Landlords must provide alternative accommodation for tenants for the time of redevelopment.

It is hoped that this new redevelopment policy will benefit thousands of people living in ten-ten buildings. The developer community has also welcomed the move. However, such an initiative alone cannot help solve the problem of old buildings in the city.

The state government may soon issue detailed guidelines for regulating tenants' eligibility and for better implementation of the policy.

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NDMC: Linked to more than 400 properties of property tax evaders

NDMC has attached more than 400 properties from property tax thieves with effect from 1 April 2019. It attached 125 properties in 12 days which included Rs 1090.55 lakhs. It has opened its property tax offices on all Saturdays except gazetted holidays.

New Delhi Municipal Corporation (NDMC) has attached more than 400 properties to property tax evaders from 27 April to 1 April 2019. The NDMC said these assets comprise a total of Rs 2775.42 lakh.

However, out of 416, 82 properties have been de-attached, as NDMC realized Rs 367.60 lakh from these assets.

According to the civic body,

The North Delhi Municipal Corporation attached 125 properties in 12 days, including an amount of Rs 1090.55 lakh, while 28 properties were issued an amount of Rs 262.04 lakh.

In April 2018, the North Delhi Municipal Corporation attached 648 bank accounts and 670 properties for non-payment of property tax from 1 April to 31 October 2018.

For NMCD, property tax is an important source of funds. It is the responsibility of the owner / owner of the property to self-assess the property tax of his property and submit it to the Municipal Corporation within the due date. But many property owners / occupiers are not doing this, so NDMC has to keep their property or bank account in one place. As per the rules, a property tax defaulter has to pay penalty and interest along with the due tax.

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Our team of experts offers a route to sellers to use all the options to reach to the maximum number of buyers. On the other hand, we give entire information about the property to the buyers and thus, allow them to make a good decision.

Haryana RERA calls for residents to create pool in fund to end project

In its first order, the Real Estate Regulatory Authority (RERA) of Panchkula Bench, Haryana, raised funds for a group of residents to complete the project and complete the remaining construction work and relocate to their dream home. Have said.

This is a major relief for home buyers, who were expecting the completion of their flat by 2011, but could not get it because the builder failed to meet the deadline specified to Project Within. According to them, they are ready to pay 15-20% extra, but at least they will get their flats.

The Panchkula Bench of Haryana RERA has suggested them to form an association and be ready to pay extra money if needed. More than 100 residents of Piyush Heights Society of Faridabad have agreed to pool Rs 8 crore to complete the project.

The Society has 16 residential towers and the builder gave possession for only 14 towers. The remaining 2-towers were left unfinished and the buyer had to relocate to RERA as the builder could not give possession on time.

By order of RERA, the builder of Piyush Heights failed to appear in the court hearing despite public notice and in the 6th hearing, a builder spokesperson asked for he postponement. RERA adjourned the respondents. Some of the unsold flats will be sold by the district authority to recover costs.   

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