AUTO, HOME LOANS SEE REVIVAL: KAMATH

September 8th, 2009 | zameensapna

Credit demand from consumers seemed to be back on track, especially in sectors such as auto and home loans though banks had cut down unsecured loan exposures, said KV Kamath, chairman of ICICI Bank.

“So far as mortgages are concerned, I think they are back from where they were a year ago. The tension between buyer, builder, and the lender is now more or less off. Auto sector financing is also back,” Kamath said at the sidelines of a banking seminar. The chairman of the country’s largest private sector bank felt 80 per cent of the consumer loans were back, the remaining 20 per cent mostly unsecured loans had taken a back seat.

“Unsecured consumer credit is certainly hit. Banks are not lending unsecured loans,” he said. “We at ICICI Bank have significantly slowed down unsecured loans since one year. We only give unsecured loans to few existing clients, which have deposits and a good track record with us,” he said while adding that ICICI Bank took the lead in slowing down unsecured loans.

Though home loans have picked up, commercial real estate loan demand is still slack due to excess capacity creation.

The growth of retail credit demand was not reflected in the overall credit growth numbers as a slowdown in working capital demand dragged down the overall numbers, felt Kamath.

“It’s not reflected in the numbers because lack of working capital. This loan is distorting the numbers. If we keep the working capital loan aside, lending rate will be healthy by the end of the year,” he said while adding that credit growth for 2009-10 was likely to be 29 per cent except the working capital loan.

Credit growth during April 1 to August 14 was only 1 per cent compared with 3.3 per cent a year ago.

He said projects which were in a conception stage a few months back were being implemented now.

On interest rates, he said, “To me, I do not fear interest rates to go up immediately. What the Reserve Bank of India will do if inflation rears up, we think we have to wait for one month for the monetary policy. It may react based on the what is the type of inflation and whether monetary policy action will help or not,” he said

Courtesy:- BS dt:- 08-09-2009

REAL ESTATE REVIVAL STORY BEING SCRIPTED BY INVESTORS: ANALYSTS

September 8th, 2009 | zameensapna

The real estate revival story is being driven by the residential segment, but contrary to the claims made by a number of developers that end-users are their main buyers, the current trend is being driven by investors.

“These are investors who are taking an opportunistic view of the situation where prices have corrected considerably in many locations,” says Sanjay Dutt, CEO business at Jones Lang LaSalle Meghraj (JLLM). He estimates that a good 40% of the stock sold in the last few months would have gone to investors. In Delhi-NCR, this figure might be higher at 50%.

“Investors are back in good numbers and before the curve goes up, they want to buy. Some who have bought are already hoping to book profits during this Diwali,” he adds. This could be a precursor to further improvement in investor sentiments, since investors would take this as a sign to look towards a sustainable run in the future.

Investors took flight from the residential real estate market when the market crashed last year and many have been shy of venturing back. The last few months though have seen a number of affordable launches at price points, which have stimulated the market. Most developers have launched mid-income housing in the Rs 20-40 lakh range, which has created a movement.

While the short-term investor is there, interestingly, a good number of the investors are medium to long-term investors. “These investors are flocking to real estate because of the lack of other investment opportunities in the market at the moment,” says Ajit Krishnan, partner, real estate practice at audit firm Ernst and Young who feels the trigger for these investors was the drop in price points in the residential segment in the last eight months.

These investors are not purely speculative and are investing in real estate as a shelter against inflation, he says. Other investment opportunities today do not yield the same results.

Developers on their part are insisting that a majority of the buyers in their projects are end-users. As there is no set way to differentiate investors from end-users, Unitech looks at consumer behaviour to judge one from the other. “Investors usually are not too bothered about specification details, do not go for site visits too often. We have not seen such behaviour at our projects. It appears that a large majority are end-users,” says R Nagaraju, general manager of corporate planning at Unitech.

Wherever prices have been brought down to attract customers, there have been investors but Aditi Vijayakar, executive director, residential services at Cushman & Wakefield says these investors are mostly long term. “These investors are using this decline in the market to buy another property which they can decide on selling after the project is delivered,” she adds.

Alongside investors are endusers who are mainly interested in completed homes. “The question is of consumption. We are definitely seeing movement in completed properties which are being picked up end-users,” explains Krishnan.

Prices in the residential market in NCR-Delhi and Mumbai have started to climb up in the last months or so and Vijayakar warns that it is a little too early to raise prices. “In the medium term, it will not be sustainable for developers,” she says. There is a concern that the few end-users who have started to show interest might be deterred from making purchases if the prices of homes keeps rising.

Courtesy:- ET dt:- 08-09-2009

YAMUNA’S NEW TRANSFER POLICY

January 18th, 2010 | zameensapna

A new transfer policy of YEIDA will enable you to possess a residential plot, if the allottee is willing to transfer his property to you after the draw, says A K Tiwary
If you don’t get any plot in the Yamuna residential draw, do not be unduly perturbed. Now, a new transfer policy will enable you to possess a residential plot, if the allottee is willing to transfer the property to you.
To change the power of attorney and rights over the property, Yamuna authority has already launched the new transfer policy. For this, an allottee has to pay 4.5% additional fee as transfer charge. The new policy is being applied for the entire 21 thousands residential plots up for the draw. According to Mohinder Singh, CEO of Yamuna Expressway Development Authority, the new transfer policy has been implemented. “We are getting good response,” he says.
All along the non-stop 165 km long Yamuna Expressway; new residential schemes have been launched, in Sectors 18 and 20, on a 35-minute drive from Pari chowk. To develop the residential sector, the revised structure Master Plan has already been finalized and approved by the board of Yamuna Expressway Industrial Development Authority (YEIDA), one of the biggest authorities in the NCR. The feasibility study has been completed by M/s L&T Ramboll and has been positive. The consultant has proposed that the project of airport and SEZ should be taken up together. The airport is proposed to be a passenger and cargo terminal. The project has already been sent for approval to the Centre by the UP government. The development of Yamuna Zones will take place in two phases. Already, the Singapore-based Manhert Company has drafted a plan for roads and transport, while ICA Company has formulated a road map for water, sewers and drainage.
Mohinder Singh says that after the success of the scheme in which 10,000 residential plots in YIDA had been launched, mega budget schemes for industrial, commercial, warehousing, IT plots have also been drafted. Out of 35,000 hectare, 6,000 acres of the land has already been developed, between the Yamuna and the GT Road. It will have much bigger sectors compared to what Noida-Greater Noida currently have. The entire project will be developed in three phases. In faze one, 35,000 hectares is being developed, up to Jewar.
YEIDA also offers land for mega-institutional development. Recently, the authority has allotted 14 institutional and IT plots at the rate of Rs 1,750 per sq metre.
It is planned that large projects that cannot be accommodated in Noida or Greater Noida would come up here. The Yamuna region, which is divided into 23 zones, includes residential, industrial, institutional and commercial sectors. A number of such zones will come up all along the Yamuna Expressway right up to Agra.
Each zone has 2,500 acres of land. The manner of development is based on priority. Out of 35,000 hectares, 35-40% of the area has been developed for main commercial activity like industrial, IT, institutional, warehousing, transport, sports, among others. The remaining area, except the green area, is being developed for ancillary and infrastructure support purposes, including residential. For Formula One, the possession of 1,025 hectares land has already been given to JPSK Pvt Limited.
Courtesy:- Times Property dt:- 16-01-2010

ECOFRIENDLY: BUZZWORD TO SAVE PLANET

January 12th, 2010 | zameensapna

It’s not just fashionable but very essential to get ecofriendly. Namrata Kohli on how just about everyone, from developers to institutional sector to corporate, is going green
Recently, a building at Jaipur was awarded best-learning building award of the year at world architecture festival awards (WAF) 2009 at the Centre Conventions International Barcelona, from among 611 projects from all over the world. This was the Jaipur campus of Pearl Academy of Fashion, a building designed in a way that helps in controlling the temperature of internal spaces, ie, the temperature remains at 28 degrees Celsius inside the building even though it is a scorching 46 degrees Celsius outside. The main focus was to provide submissive cooling strategies such as open courtyards, water bodies and a step well in the academy where the students can overcome the hot weather. Passive environment strategies were used in the academy to decrease power consumption, be it ACs or lighting.
According to Arindam Das, director of Pearl Academy of Fashion, “We hardly use artificial light in our campus as natural light is enough - if anything, we have to shut it [natural light out with blinds. Also, the use of ACs has been reduced substantially due to path breaking techniques employed by our architect, Morphogenesis, such as in the use of ‘matkas’ as fillings in the floorings, which trap heat and are a natural coolant. Use of ‘jaali’ designs throughout the campus for ventilation has also helped.” Akshay Kaul, a landscape architect, traces the history of green buildings in India.
He says that all old havelis and buildings of colonial British India were green as they were built keeping the natural climate in mind (another example is Connaught Place). “It is only in the recent times that very thin building skins like aluminium, steel, glass, which are high in embodied energy, have been used - which means you need to spend a lot of money and energy in first creating them, and then later maintain them using artificial systems like airconditioners and heating systems.
All the slick buildings of suburbs have blindly imitated the west where the climate is temperate and amount of energy available in US or Europe is inconceivable in India. But, now, with growing eco-consciousness and with construction sector becoming competitive, going green is suddenly seen as an USP. Still, we have only grazed the tip of the iceberg and we need to customize every building to our climate and not as per the climate conditions of the west,” says Kaul. Suddenly, there is an awareness that we need to secure our environment as our future depends on how we conserve the food resources and the environment we live in. And that’s where their money should be invested. So, what were exceptions yesterday seem to become the norm today with occupiers emphasizing ongoing green.
From planting trees, to using solar energy, to constructing smart buildings and even collecting litter, corporate India is going green. Patni Computers in Noida is IGBC (Indian Green Building Council) Platinum Rated LEED (Leadership in Energy and Environmental Design) certified green building. The basic design has been inspired by the traditional inward look “Indian Haveli plan” design that balances environmental responsibility, energy efficiency, resource efficiency, occupant comfort.
The design concept is that of a simple straight-line low-key architecture in sync with the surroundings, site and climate. Passive (architecturally) and active (mechanical, electrical) strategies have been optimally designed to minimize energy consumption. The building depth is optimized to capture daylight for more than 75% of occupied interiors and to maximize outdoor views. The campus of Wipro Technologies in Gurgaon is also Platinum Rated LEED certified green building.
The main focus of the design is the inverted cone, strategically located at the cross-junction of two roads to give visibility to the building. A highlight of the building is a control, open to sky landscape courtyard that will contribute towards keeping the building cool during summer. All open office spaces look into the courtyard, thus these spaces have good access to daylight. Developers have been making many announcements of eco-projects, by the hour and day. Recently, Supertech launched “Eco-City” residential project in Sector 137, Noida with the idea to building a zero-carbon emission and eco-centric development project by using special generators, machineries and ecological sanitation.
According to R K Arora, CMD of Supertech Limited, “In Eco-City, our approach is based on the idea that all the ecologically responsible aspects of the building are ‘made visible’ as part of its role as an eco-habitat.” Green Boulevard, a project by 3C, is a green building that is home to multinational corporations like Accenture, Sapient, Nokia, Siemens Network, and others.
It has been designed around shaded landscape courts with water bodies and plants, which help reduce the ambient temperature. The building depth has been optimized to capture daylight and to maximize views. 3C has executed Lotus Boulevard, a green residential project, which has features like insulated walls and insulated roofs that reduce heat by up to 60%.
While the external lighting is solar, the mechanical and the electric equipment inside are energy efficient. Other features like 80% open spaces, zero-discharge, a mechanism to recharge water by water-harvesting methodology make it a unique project. In an endeavor to reduce its carbon footprint, 3C is creating environment-friendly buildings. According to Vidur Bharadwaj, director of 3C, “Realizing that green-building technology is the way forward for saving the planet, and as it is pro-life, we will constantly strive to make our projects safe, secure and a delightful experience for occupants. The mission for developing green buildings has helped in saving huge operating energy costs, which ultimately benefits end users.”
According to Sandeep Singh, an architect and director of a project management company, TPM, “Earlier there was a thrust only on aesthetics but finally, builders and occupants have realized that aesthetics can take a backseat and functionality should rule. Products which offer functionality are being introduced, like Hindalco manufactured fireproof glazing on glass facade.” He adds that the practice is to go in for green buildings - that of utilizing maximum natural light and conserving energy in every possible way. Newer techniques and materials are being invented by the day to ensure that the buildings are in sync with nature. A lot of green products are foraying into the construction industry. One such innovation is Green Windows by Fenesta Building Systems, which are UPVC windows and help in saving energy as they cut air-conditioning costs significantly. Also, they allow ample ventilation and sunlight into the house.
These windows do not require paint or polishing and are therefore maintenance-free. While green is a buzzword now, it all started with Orchid, who call themselves a ‘ecotel’, instead of a hotel. From the basic architecture of the building, to water conservation, to use of ‘rubber’ wood instead of real wood, to use of energy-saving devices, the hotel does it all to qualify as an ecofriendly hotel.
Courtesy:- Times Property dt:- 09-01-2010

FOCUS ON AFFORDABLE HOUSING

January 8th, 2010 | zameensapna

Affordable housing will continue to be in focus in the second decade of the millennium, with the NCR playing a critical role in throwing up new destinations, says Prabhakar Sinha
As the economy is likely to maintain a growth of around 8% in the coming decade, it will witness a sustained growth in the real estate sector with affordable housing continuing to be in focus. The National Capital Region (NCR) of Delhi, in particular, will see a number of new destinations coming up. But, unlike the last decade when Delhi region did not contribute much to the housing development, the new decade will witness a large number of housing projects being developed here.
At the same time, a number of townships will come in the NCR region to meet the demand for housing and commercial space. The last decade witnessed an unprecedented rise in the activities in the sector. Not only did construction activity increase substantially, the prices also went up manifold. The growth momentum was so strong that it could withstand the global financial crisis successfully, albeit with the help of the government’s stimulus package. RBI’s decision to reduce interest rates also helped in this regard. But, the main driving agent in the revival in the second half of 2009 was the developers’ strategy in building affordable houses. In this, builders built two- and three-bedroom apartments with lower specification at up to 40% lower prices than what they used to sell only a few months ago.
CMD of CB Richard Ellis, South Asia, Anshuman Magazine, says, “In 2010, we can expect to see some sustainability in the residential market as activity levels have improved. On the office market front, demand is expected to improve, although rentals are expected to remain flat in the medium term due to the forecasted surplus supply of office space.” Samir Jasuja, CMD of PropEquity, a realty research firm, says that Delhi will emerge as the centre of planned development in the coming decade with the new Master Plan coming into effect soon. The huge land bank in Najafgarh in Southwest Delhi, Brijwasan and Chhattarpur in South Delhi, will be released under the new Master Plan of Delhi. Similarly, a large tract of land will also come up in the marketplace in North Delhi. He says that thousands of acres of land are likely to be released under the new Master Plan.
Jasuja said that the most heartening thing is that unlike in the past, the new decade will see development in these areas by private developers. This will bring in development of modern condominiums with amenities like swimming pools, gyms, security systems and car parking lots.
As 2000-2009 saw the development of areas like Indira Puram, Vaishali, Vasundhara and Crossings Republik, in the East of Delhi in Ghaziabad, Sector 44 and 93A & B in Noida and MG Road, Sushant Lok, Golf Course, and DLF Phase II, III and V in Gurgaon and Nahar Paar area in Faridabad. Many of these areas were unheard of, before 2000. Similarly, 2010-19 will see a hectic development of new areas like Noida-Greater Noida Exressway, Crossings Republik, Raj Nagar Extension on National Highway 58 in Ghaziabad, and Noida Sectors 34, 50, 45, 128 and 134 will emerge as the new development centres in the new decade. In Gurgaon, the new areas that are likely to come up are Sohna Road, Golf Course Road Extension and Pataudi Road. Sonepat is also likely to emerge as a new destination for residential market.
Samir Jasuja says that under the new Gurgaon-Manesar Master Plan, around 1,50,000 residential units will be developed in the area. Out of this, around 10,000 are at the implementation stage by various developers. The rest will be developed in the coming years. Besides this, the introduction of the concept of ‘township’ will expedite the construction of residential units. The development of townships will allow private developers to share the onus of development of infrastructure. So far, only the government agencies used to develop infrastructure, which results in a slow pace of development. With this, the supply of housing units will get expedited.
The good news is that such a huge supply of housing units will stabilize prices. Global realty consultancy firm, Knight Frank, in its report on India’s residential market says that given a general stability of markets around Delhi and the supply expected in this part of the NCR until 2011, it is reasonable to expect residential prices in Delhi to remain relatively stable or even increase, if demand in the region significantly increases due to better internal connectivity.
The report further says that several infrastructure initiatives around the NCR are expected to boost residential options through augmenting connectivity and decongesting traffic within certain locations. If consumers are attracted to small markets around the NCR due to better infrastructure, the subsequent decongestion of demand in the region could alleviate the upward pressure on prices in locations like Gurgaon and Noida, which are becoming increasingly attractive residential options.
The 2010 Commonwealth Games have also played an important role in improving connectivity to different parts of the city through the Metro Rail. As far-flung areas like Greater Noida, Faridabad, Kundli and Gurgaon are likely to be connected by the Metro, the travel time to these places will come down drastically.
Courtesy:- Times Property dt:- 02-01-2010

HAVE A PLAN AND WATCH YOUR INVESTMENTS GROW

January 8th, 2010 | zameensapna

Investing without a plan is like driving without a map in a desert. This year, filter the noise of financial advisors and stick to your financial plan, says Nikhil Walavalkar
By The end of 2008, for most salaried individuals, the resolution was to save their jobs. Within a year, many are thinking of growth opportunities as smiling faces have replaced worry wrinkles. As the stock markets end the year on a high note, there is a need to sit down and plan for the year ahead.
DISCIPLINE
“In 2010, your discipline will make a difference. Having a discipline and planning for the future is a must. One must adopt a method and stick to asset allocation without getting swayed due to shortterm volatility,” says Hrishikesh Parandekar, CEO of Karvy Private Wealth. At a time when everything from job market to India’s GDP and from equities to real estate look optimistic, the discipline becomes the key determinant of investment success in 2010.
FINANCIAL PLAN
As the markets move, we come across many new products and new promises. “Investors will come across investment proposals that promise to double their money in a year. There is a need to filter the noise and stick to their financial plan,” says Amar Pandit of My Financial Advisor. If you do not have a financial plan ready, get it now. Investing without a plan is like driving without a map in a desert.
“As we approach 2010, one should clearly identify his short-term and long-term needs. Accordingly, one should invest taking into account long-term inflation-adjusted returns of asset classes,” asserts Aneesh Srivastava, chief investment officer of IDBI Fortis Life Insurance Company.
CONVICTION
There are cases where investors get a financial plan and execute it. However, as markets move, investors start thinking of moving with the markets. As equities move up, the asset allocation tilts towards equities. Under such circumstances, there is a need to rebalance your portfolio. You should have conviction in your ideas and a roadmap towards wealth creation.
CHANGE
The fundamental principles of wealth creation never change. However, there are many changes in the environment. One should aim to manage change in a better manner. Dynamic economic variables need not alter one’s stance. However, there are many learning opportunities available in the economic environment. As the regulatory environment changes, one comes across many new offers to build on to. Online investments, digital tax returns can be some of the ‘change agents’ we may have to learn to live with.
LEARNING
Each year leaves us with some lessons. We come across new products, new concepts and new skills that may be helpful in propelling our boat towards the financial goals. There is a need to aspire to seek knowledge and find out better ways to apply the acquired knowledge for one’s benefit.
There are instances where we may have to unlearn before we learn the new knowledge. Investors must understand that the process of learning and unlearning is an ongoing one and we have to approach the same with an open mind in 2010.
EMOTIONS
When an asset delivers returns, one should be in a position to ascertain the contribution of both </a href=”fundamental returns and speculative returns. Fundamental returns come from the fundamental changes whereas speculative returns are attributed to the change in the investor perception. Fundamental returns are influenced by the speculative elements. Over the years, speculative elements backed rallies in markets have led to increased volatility. Emotions play a big role in volatile markets. The debate of ‘Emotions or intelligence’ is over. It is the time to go for ‘intelligencebacked by emotions’. Year 2010 will reward those who work harder for gaining the intellect and simultaneously improve their ability to control their emotions.
Courtesy:- ET dt:- 01-01-2010

Saumya Constructions made Farm houses and Individual bungalows in Ahmedabad

December 23rd, 2009 | zameensapna

Saumya, being the pioneer in introducing farm houses and individual bungalows, through the concept of elite neighbourhood community development, has successfully completed more than 500 individual bungalows in 10 residential schemes, spread over more than 240 acres of fully developed land area in Ahmedabad.
AantarKshitij, as the name suggests, is a retreat, envisioned and planned by Saumya, beyond the horizon of densely urbanized city of Ahmedabad. Beyond the horizon of dreams. Located at a crow-flying distance of 10 kilometers west from the commercial hub of S.G. Road. A unique residential community in the midst of green farm lands in the neighbourhood of this mega city. Self sustained, secured and yet serene.
AantarKshitij, is a community of alternative residential plots (ranging from 1000 sq. yards upwards) with a well developed infrastructure of common amenities and community services, which are designed to make the entire community one of the most coveted addresses of future Ahmedabad.
Common Amenities for the Plot Owners
The whole community will be private property and will have no public roads passing through. This will make it one of the largest private, guarded residential community in Ahmedabad with a single entrance gate, monitored and secured privately.
Different common plots, with a main community plot of 18,000 Sq. Yards.
An artificial lake with a large designer fountain island.
A huge garden with a landscape of articulated greenery.
Large Swimming Pool and Spa facilities.
A separate children’s park as a fun escapade for the children.
A well designed large club house of 20,000 Sq. Feet having colonial architecture with a large verandah for dining on the side of the green landscape in the midst of nature.
Indoor facilities like card room, table tennis and billiards.
An exclusive state-of-the-art health club and gym for fitness.
A restaurant for the guests with all 7 days operations serving breakfast, lunch, dinner and snacks.
All weather synthetic-turf tennis court and volley ball court.
Mini Golf & Cricket ground.
20 ultra-luxurious airconditioned residential rooms available round the year for your guests.
A private and secured jogging track of more than 4 kilometers.
An airconditioned Private Party Cottage for 50 persons for exclusive dining (inside/outside), executive conferences or for any occasion that you want to celebrate with state-of-the-art digital music system and a movie home theatre with its own exclusive lounge, kitchen/pantry and service areas.
For more info log on to http://www.zameen-zaidad.com/saumyaconstructions-aantarKshitij-ahmedabad.aspx

PNB EXTENDS SPECIAL HOME LOAN OFFERS

December 21st, 2009 | zameensapna

The country’s second largest public sector lender, Punjab National Bank (PNB), extended the festival offer of discounted interest rates on housing loans to borrowings up to Rs 50 lakh from Rs 30 lakh. “Punjab National Bank has announced extension of housing loan coverage from Rs 30 lakh to Rs 50 lakh under its festival bonanza offer 2009. PNB charges discounted interest rate of 8.50% for fixed loans,” the bank said in a statement. This fixed rate would be valid for the first three years up to December 31, 2012, it said. The offers would be valid till the end of this month. In subsequent years, the bank will charge 2-2.5% below the benchmark prime lending rate under the floating option, it said. Besides this, the bank would also offer complete waiver of processing fee and documentation charges. The margin on housing loans up to Rs 20 lakh has also been slashed to 15%.

Courtesy:- ET dt:- 18/12/2009

December 21st, 2009 | zameensapna

MAKE MONEY OUT OF YOUR HOME

Few banks in the country have started offering reverse mortgage loan. While it is quite popular among the elderly in the west, there is not much awareness about the same in India and it still needs time to pick up
Reverse mortgage, as the name suggests, operates in a manner opposite to that of the typical mortgage such as a home loan. In a typical mortgage, you borrow money in lump sum right at the beginning and then pay it back over a period of time. In your payback - the EMIs - a portion goes towards paying the interest and the remaining goes towards paying back the principal. All along, you pledge the asset - the house you have bought with the loan - to the bank.
This asset is the security against which the bank is lending to you. In reverse mortgage, you pledge a property you already own (with no existing loan outstanding against it). The bank in turn gives you a series of cash flows for a fixed tenure. These can be thought of as reverse EMIs.
A house can thus generate good income during your lifetime. The key question is - how much of an annuity income can a house generates using reverse mortgage? According to Bharti Gupta Ramola, transactions leader at PricewaterhouseCoopers (PwC) India, “The annuity income will depend on a number of factors. These should include, among others, the value of the house (banks look for a valuer’s certificate), residual life of the house, the proportion of the value considered for financing (banks may consider up to 90% of the assessed value subject to a cap of Rs 1 crore), the period of the mortgage, which may vary between 10 and 20 years, the interest rate applied. To give you an example, one of the leading banks is currently quoting an annuity value of about Rs 56,000 for an assessed loan value of Rs 10 lakh for 10 years.”
The tenure of a reverse mortgage loan is a maximum of 15 years. The residual life of the property should be at least 20 years. The payments stop after 15 years but the borrower can continue to occupy the premises.
A few banks like IndusInd Bank, SBI, PNB offer reverse mortgage loan. SBI Reverse Mortgage Loan was recently rolled out for people above 60 years. The loan is being given jointly if the spouse is alive, provided he or she is above 58 years of age.
So what is the developer’ take on reverse mortgage. Ashiana’s Ankur Gupta feels that the reverse mortgage is an excellent product but has not been marketed well. He feels that for banks, this is a risky product, on which they have to invest a lot of time on creating awareness.
“The best thing about this instrument is even if an elderly person decides to reverse mortgage his house at says Rs 30 lakh today, and it becomes Rs 50 lakh worth after he dies, his inheritor can pay off the debt and buy the house back from the bank or the HFI. So, it gives the senior citizens a chance to enjoy a good quality of life with regular returns coming their way without having to be uprooted from their residence of years and it also gives the inheritors an opportunity to buy back the asset and own it if they so desire,” Ankur adds.
“It is a very practical product which should have come to the country a long time ago, but nevertheless, now that it has finally come and is being offered by some of the nationalized banks,” says a south India-based developer, Nawaz Hussain, director marketing of South India Shelters Pvt Ltd. He adds that it would certainly give a sense of security to senior citizens (60+), especially in an age where children move abroad for better placements or opt to have nuclear families.
Kumar Gera, chairman of CREDAI, is of the opinion that reverse mortgages is a very good instrument. He says that when he compares two scenarios where an elderly person sells his house to generate income and shifts to a smaller unit, and the other where he uses reverse mortgage instrument and converts a non-liquid asset - the house - into liquid cash flows for himself and continues to live in that house even after drawing cash flows from it, the latter scenario wins hands down.
Until now, the common practice and the only option available for an aged retired person lacking income was to sell his property and move to a smaller house or a smaller city - say, from a 2BR in Mumbai to a 1BR in Mumbai or a 2BR in Pune, and put that money into returns. This way they were uprooted, had to change their lifestyle and had to be burdened with paying taxes and managing the money. Instead, if they negotiate with a bank, they don’t have to sell that house anymore and they can continue to stay in dignity at a place where they have spent all their years.
Another view is that this instrument may work at a theoretical level in India and fail at the level of execution due to perception of house as an emotional entity and people preferring to pass on a house to the next generation rather than a reverse mortgage loan. Bharti Ramola agrees that there may be initial resistance because parents want to leave unencumbered property for children for emotional reasons.
But, she also argues that this trend will pick up slowly as there are many parents now whose children do not live with them, nor are in the country. They may prefer to seek such a mortgage rather than ask their children for monetary help.
Courtesy:- ET Realty dt:- 18/12/2009

HOME IN THE WORKS? KNOW YOUR RIGHTS

December 18th, 2009 | zameensapna

Builders may tempt you with special discounts in their housing projects. But before you fall for such offers, you ought to ask the right questions, advises vidyalaxmi

Buying a house is one of the biggest financial commitments today. Many developers offer to sell apartments during the construction phase. Buyers are tempted because of the discount to current market price and the attractiveness of the show flats on display. But remember, there is a trade-off. While you get a discount for the under-construction flat, you are also undertaking the risk of timely construction. If you are a potential buyer of under-construction property, you can deal with the risks better with some information on hand.

Payment milestones
If you have a choice, opt for the property that allows you construction-linked payment plans. If construction is stuck half-way, there is no pressure on you to make future payments. “Lenders are happier funding by this route. It gives both the buyer and the financing institution greater comfort levels,” says Ashutosh Beri, managing director — Property & Asset Management, Jones Lang LaSalle Meghraj.

Interiors matter
Most developers who have construction-linked target, link the instalment to casting of slab. Over 80% of the payments are required to be completed by the time the slab structure is in place. In reality, given the technology used today, the slab casting gets completed in no time. While 80% of the construction time is taken in doing up the rest of the work.

Time-linked not legal
During the boom, many builders shifted to a time-linked payment plan. So a customer was required to pay even if the developer didn’t show any signs of progress in the project. But many developers were caught on the wrong foot as the law of the land widely advocated for construction-linked payment plans.

Developer funding of EMIs
Post financial crisis, some builders started offering schemes where they pay the EMI of under construction properties. “After 2-2.5 years, the builder would ask the borrower to take care of EMI payments as the project would near completion,” said Gulam Zia, National Director — Research & Advisory Services at Knight Frank India.

Investors beware
If you are buying an under-construction property as an investment, you would be exposed to liquidity risks. Until there is a conveyance or a co-operative housing society formed by home buyers, investors cannot re-sell their flats without a no-objection certificate from the developer who might ask for transfer charges for the same. Investors in a Central Mumbai property are facing a demand for transfer charges amounting to Rs 2,500 per square feet from the builder.

Down payments risky
Here you are actually getting into the tricky area of financing a builder. Probably a builder who is not creditworthy enough to get a loan from mainstream lenders, which is why he is willing to offer discounts up to 25% for those who put up the cash. It’s a bad choice for customers as there are many projects that have not see the light of the day.

Courtesy:- ET dt:- 16-12-2009

Purvankara group launches 3 bedroom Apartment in kochi

December 16th, 2009 | zameensapna

The views from Moonreach are breathtaking and unique. But frankly speaking, these words still don’t measure up to the views.
The sweeping, uncluttered views from your sky-home at Moonreach will make you feel that you’re in the company of Gods.
The dining and living areas of your home is open out to different perspectives of the city. The ventilation is 3-sided, giving your living space a lot more natural light than you had thought possible. For the success that you have scaled so far, its not only apt that you live in an apartment at Moonreach; a home that’ll be envied not for its height, but for its luxuries as well.
STRUCTURE: RCC framed structure with pile foundation. Parking in Lower Basement and Upper Basement, The apartments are spread over from Ground floor to Twentieth and Thirtieth floor level. Staircase and lift in each block connect from basement to all levels.
Finishes
Flooring Ground floor Main Entrance Lobby - Highly polished Granite/Imported Marble
Living/dining - 800 x 800 Vitrified tiles.
Bedrooms/ Attached balconies, Kitchen/utility - Vitrified tiles
Toilets - Anti-skid / Matt Ceramic designer Tiles
Walls All Interior Wall faces - Plastered, smoothly finished and painted with Plastic Emulsion paint.
Kitchen & Utility - The dado over kitchen counter is of Ceramic /Vitrified tiles to 60cm ht.[2'0'']
Toilets - Glazed designer tiles from the floor to ceiling level with designer border.
Exterior Fascia of Building - These are plastered and painted with acrylic based paint and textured surfaces in selective places, as per design to give an elegant look.
Ceilings Cornices in living / dining/ foyer /passage area.
Staircase hand rails / balcony railings Railings to Architects design.
FIXTURES & FITTINGS:
Doors - Main Door Teak wood frame and teakwood door shutter with melamine polished / Sufficient thickness to inhouse all the hardware. [good quality hinges, tower bolts, lock and security eye
Other Doors/Toilet Doors Hard wood frame with polished HDF/DF door shutter with good quality hinges, bolts / locks and handles . Internal surface of toilet doors painted.
Toilet Doors Toilet doors - Sal wood frame with painted solid core flush door shutter with good quality hinges, bolt/lock and handles .
Living & Balcony door Glazed french windows, powder coated, heavy gauged, AL / UPVC frames and sliding / hinged shutters with mosquito mesh.
Balcony/ Utility door Glazed door and window heavy gauged, AL / UPVC frames and sliding shutters/hinged shutters with mosquito mesh.
Windows Heavy gauged, AL / UPVC frames and sliding shutters/hinged shutters with mosquito mesh.
Ventilators Heavy gauged, AL / UPVC frames with glazed louvers / hinged and exhaust provision.
PLUMBING /SANITARY FITTINGS :
Toilets Master bedroom toilet with bath-tub and granite/marble counter wash basin [ good quality vitreous pastel colored ceramic ware] with bottle trap along with Jaguar premium quality or equivalent CP fittings, good quality vitreous pastel . colored wall mounted EWC. EWC includes seat cover, flush valve [button type]and health faucet.
Common Bedroom detached toilet - Jaguar premium quality or equivalent CP fittings, good quality vitreous Pastel colored wall mounted EWC and wash basin with pedestal. EWC includes seat cover and flush valve [button type] and health faucet.
Third Bedroom attached toilet - Jaguar premium quality or equivalent CP fittings, good quality vitreous Pastel colored wall mounted EWC and wash basin with pedestal. EWC includes seat cover and flush valve [button type] and health faucet.
Kitchen Stainless steel sink ( Double bowl single drain) with hot and cold water, Jaguar premium quality or equivalent sink mixer. Kitchen counter top of highly polished bull-nosed granite. Water outlet provision for water purifier above drain board in kitchen.
Electrical
Best quality cables / wiring through PVC conduits concealed in walls and ceilings. Light points, fan / exhaust points , power points, call bell point, telephone points , TV points and AC point in master bed room . And provision of dummy A/C points for other Bed rooms. The electrical room will have panel boards, meters, etc.as per KSEB norms. Each Apt to have 7000W KSEB power supply.
Internet points One outlet in Common bedroom
TV/Telephone points One outlet for TV& Telephone in the Living area and in all the Bedrooms. Provision for cable TV connection.
Elevators Hi-speed Automatic lifts with stainless honey comb matt and mirror finish car cabins and Intercom facility connected to security cabin.
D.G Back up for common area lighting, pumps, lifts and 3000W in each apartment
Visitor car parking Ample Visitor car parking
Intra communication system
Intra- communication facility provided from security to each apartment and from apartment to apartment within the complex.
Security Peripheral Vigilance through CCTV/ cameras and patrolling by security guards.
For more info log on to http://www.zameen-zaidad.com/purva-moonreach-kochi.aspx

December 16th, 2009 | zameensapna

Mir Realtors Launches 3BHK Apartments Villas at Rs 41,04,000 onwards
This eco friendly township sprawls across six acres of land with choices of apartments, villas and penthouses. An impressive bouquet of common amenities that redefine your lifestyle, architectural experts have made sure that the designs are contemporary and efficient in its approach. Landscaped specialists ensure lush green and pollution free living thus providing the perfect solace from the dust and grime of the city. The project is situated at Kakkanad, which is fast developing as the nerve center of Kochi. It is located just 300 meters away from the Airport-Seaport Highway and very close to the Collectorate.
Specification
Structure: RCC frame structure with well-designed foundation to withstand seismic and wind forces. Walls with CC Blocks plastered to smooth finish.
Rooms Spacious rooms with cross ventilation, foyer, separate living and dining area with independent balconies.
Flooring Vitrified flooring for apartments, main staircase, lobby and passage.
Kitchen Platform done in quality granite with stainless steel sink. 2 feet dado above granite counter, Aqua Guard point.
For more info log on to http://www.zameen-zaidad.com/green-metropolish-kochi.aspx