Archive for the ‘Office Space’

DLF CONVERTS MUMBAI MALL PROJECT INTO RESIDENTIAL ONE

Friday, March 5th, 2010

DLF, the country’s largest realtor by market value, is planning to build a premium residential apartment complex at Worli in Mumbai instead of a high-end mall project, as demand for retail spaces has come down sharply, according to a company executive.
“We felt residential will do well here, and we will fix the price depending on market conditions,” he said. According to DLF website, the project is under “planning and development” under the high-end mall brand Emporio.
Rents of retail spaces are down by 25-30 per cent from their peak in 2007-08 as demand slowed. Though demand for
office spaces have picked up slowly, property consultants expect lukewarm demand to continue for retail developments.
Worli, which was a former hub of textile mills, is witnessing modern office developments by realtors such as Indiabulls, Bombay Dyeing and Century Textiles, and residential apartments command a price of Rs 22,000 per sq ft and above.
DLF made news in 2005 when it bought a 17-acre Mumbai Textile Mill land from National Textile Corporation (NTC) for Rs 702 crore. The company at that time announced it would build a futuristic retail-cum-entertainment complex on the land.
The new project is expected to be launched in the next four-five months after taking all the necessary approvals, the executive said.
According to property consultants, the company changed the plan several times as real estate market went through a prolonged slowdown.
However, DLF is not alone which converted its mall project into a residential one. Host of others such as DB Realty in Dahisar area of Mumbai, West Pioneer in Kalyan near Mumbai and TTK group in Bangalore also changed their plans to build mall to apartment projects.
Apartment prices have raised 15-20 per cent since mid-2009 as home buyers returned to the market. Earlier, prices had declined by around 40 per cent as home buyers stayed away.
Buoyed by response for its apartment projects, DLF is expected to launch 8-10 new residential projects in the next one year, according to sources. DLF, which stalled some of its office projects during the slowdown, is planning to launch two-three
commercial projects in Gurgaon and Hyderabad.
DLF today sold 1,200 units of independent floors in its Panchkula Valley housing project in Chandigarh within a week of its launch.
The units were priced between Rs 30 lakh to Rs 60 lakh. The company is aid to have made around Rs 500 crore from the sale of units. The company originally planned to launch 500 units, but later increased it to 1200 due to good response, a release from the company said. The project was launched on Feb 18, 2010.
The company, which had plans to book these units in 45 days till March 31, 2010, closed bookings within seven days of launch as the bookings crossed 1200 units within 15 days.
Courtesy:- BS dt:- 26-feb-2010
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BUILDER CARTEL JACKS UP PRICES IN MUMBAI

Friday, March 5th, 2010

Half a dozen developers control 70 per cent of Transferable Development Rights in the city.
A cartelisation of Mumbai’s real estate, one of the costliest in the world, in the matter of transferable development rights (TDR) has put upward pressure on prices and has also caused concern in policy circles. In a recent development, just six-odd builders and developers hold 70 per cent of the 2.5-3 million sq ft TDR available. The price of TDR has also surged to Rs 2,500-Rs 3,000 per sq ft from Rs 800-1,000 sq ft in the past six months.
TDRs are rights granted by the civic or state agency to a property developer who surrenders land to the government and, in exchange, is allowed proportionate or more development rights on land in the vicinity or northwards. He may sell that property so developed or sell the right itself, the TDR; these are transferable.
Realty sector sources said the Mumbai cartel had meant a rise in TDR prices practically every month. The development is a sequel to a 2008 order of the High Court here, which stayed a state government decision to allow 33 per cent extra building rights (measured as more of Floor Space Index, or FSI, the ratio of what can be erected on a plot of land to its area) in return for more premium.
The order was in response to a public-interest suit on the issue.
A state government official, who did not want to be quoted, said the government may approach the court shortly to reiterate its plea for additional FSI (they may even go to the Supreme Court to get the stay vacated, say officials). The higher FSI, if allowed, will stop the builders’ cartel from jacking up prices at will, he said.
Maharashtra’s minister of state for housing, Sachin Ahir, said: “The government will take all necessary measures to curb cartelisation in the use of TDR in Mumbai.”
Sunil Mantri, chairman, Sunil Mantri Realty, said, “Prices of TDR are unaffordable.”
However, Nainesh Shah, executive director of Everest Developers, argued that TDR rates can be brought down only by an increase in the stock of land and the government is the only entities that can make this happen. “More land needs to be released,” he said.
Ashutosh Limaye, associate director, strategic consulting, Jones Lang LaSalle Meghraj, said TDR trading follows the open market principle. For areas that are popular and in demand for real estate development (Bandra, Chembur, Vile Parle, etc), land prices is high and it makes sense to buy TDR even at a higher rate.
Mumbai’s own peculiarity is that TDR, in practice, can only be deployed in the northern suburbs, while it is generated in the area south of this. This contributes to the upward pressure on its price. The government order which the court stayed, on allowing more FSI on payment of a premium, had sought to widen the supply, was the official argument.
Opponents of the way TDR has worked in practice, including those who went to court on the issue mentioned, argue that it has led to congestion in the suburbs, haphazard and unplanned development, and intense pressure on infrastructure. It may be noted that this policy, pioneered in Mumbai, has since been adopted by state and civic agencies through the country.
Courtesy:- BS:- 03-march-2010
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Living next door to granny

Tuesday, March 2nd, 2010

As opposed to a pure senior living model, developers today are getting ready to launch inter-generational townships
Manohar Singh, a marketing professional who travels extensively, constantly worries about his father’s security and medical needs. The duo share a strong bond and yet cherish their independence. They’re looking for a modern housing option where they need not live under the same roof but at the same time stay close to each other. Well, the Singhs can count themselves lucky as some developers are planning to introduce inter-generational (IG) townships in the market soon. These would be integrated townships that include an enclave or a special cluster for seniors with special facilities such as nursing care and a wellness centre.
What is IG housing?
Studies have indicated that seniors, especially the post independence generation, do not wish to be isolated in remote retirement villages but prefer to be actively involved in the changing urban cityscape. A popular concept in the US, these inter-generational communities can become relevant from an Indian standpoint too. Developers can carve out well-planned enclaves aimed at seniors within their integrated townships and carefully integrate the same in the overall plan.
So, an elderly couple can have their children with their nuclear families living a block or two away. The younger lot can enjoy its independence and yet, reassuringly, just be a phone call away from the parents.
“These dwellings enable elders to look at retirement from a fresh perspective -the beginning of an active new lifestyle where they are not only well taken care of but even get to deploy their skills to serve society or pick up a new hobby,” says Saumyajit Roy, assistant vice president, strategic business unit, education, healthcare and senior living at Jones Lang LaSalle Meghraj.
Varied products The Indian housing market has been experimenting with models for senior living. From old age homes built on a single plot to senior living resorts located away from the city, spread across three to five acres, the sector will now see the advent of IG communities located on land parcels that are as big as 50 acres to 1000 acres.
Rakindo Developers Private Ltd will launch one such project, Kovai Hills, in June this year. Located on the fast developing Coimbatore Pallakad corridor, the project is to be developed over 1,000 acres and will have a 100bedded hospital, a wellness spa, schools, colleges and even a 18-hole golf course thrown in. Says Dr Prashant Koneru, the company’s director-development, “It’s wrongly assumed that seniors want to live a secluded life. They would much rather interact with and play an important role in giving back something to society. That’s why we decided to introduce this concept in our integrated township. We also plan to replicate the model in our future townships in Kumarakom and Chennai.” Impact Senior Living Estates Private Ltd, too, is coming up ILLUSTRATION: ABHIMANYU SINHA with a similar facility in Amritsar. This will be part of a larger township spread over 50 acres with three to four acres reserved for senior residents.
“It will be a gated colony within a colony. The focus is on service and medical care.
There will be nursing care and healthcare provided by Fortis. The seniors’ facility will be located at the far end of the colony for their security and to enable them to enjoy a great view,” points out Jaivir Singh of the group.
Different formats there are two ways in which IG communities can be created. The first way, according to Roy, is to develop an age-targeted enclave or a cluster within a master planned community, something that the developers targeting senior accommodation in India are focusing on. The second involves a pre-planned infill pattern wherein senior housing is sprinkled over a larger neighbourhood involving multiple generations in agetargeted homes. A massive experiment of this nature was undertaken in Denver, US, over a 4,700 acre redevelopment exercise. The layout pattern had both small and large lot sizes. This promoted natural selection wherein a community was created with different age groups living together in spaces specifically designed for them.
In both cases, placement of amenities and landscape can play an important role in connecting the private home areas to the common areas such as a clubhouse, dining areas, nursing care, or wellness centres. In a particular neighbourhood in the US, an architect placed the club house and the common areas such as coffee shops, restaurants and convenience stores in such a manner that it was convenient to the senior for his active daytime usage and for youngsters’ usage in the mornings or late evenings. This also promoted intermingling of generations, which is extremely healthy for seniors and young people. Schools, colleges, creche, day care facilities and even small time businesses can be designed inside the township so as to encourage seniors, repositories of knowledge and learning, to work as teachers and advisors.
Such engagement activities help the social fabric develop in a township and also provide seniors with a sense of identity.
The model As in the US, IG colonies can be based on equity, lease, deposit fee or a combination model. These communities, unlike standalone senior living resorts, provide for economy of scale as many facilities are shared.
“It is possible to develop well-planned senior enclaves within larger townships since it cross-subsidises the cost of development of common area facilities among larger townships and makes the neighbourhood attractive for seniors,” says Roy.
Usually, in many senior living facilities, developers offer a payback scheme for these homes after the demise of the residents.
People get to buy membership to live there and use the facilities for as long as they live.
Impact Senior Living Estates Private Limited offers two models -a high entry charge and a monthly amount (approximately Rs 20 lakh as entry charge and Rs 15,000 to Rs 20,000 that includes food and housekeeping) or a low entry amount and a high monthly charge (approximately Rs 42,000-Rs 48,000 per month), points out Singh.
Adds Koneru, “We are planning to introduce a lease model (creating a low entry barrier) which will cover housing, food, regular medical check-ups and specialised services such as house accountants, etc.” The future Inter-generational colonies have a bright future in India.
This is because many township projects in the country cover areas of well over 30 acres, where the developer can easily use a part of his project to create an enclave which has facilities that elders can appreciate.

Courtesy: HT Estates 27th Feb 2010
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Haridwar Greens project launched

Tuesday, March 2nd, 2010

Haridwar Greens, one of Uttarakhand’s largest integrated residential projects, was inaugurated by the state chief minister Dr. Ramesh Pokhriyal `Nishank.’
The project is being developed by Arrow Infra Ltd, promoted by The Hero Group, the two-wheeler and bicycle manufacturer. Spread over 50 acres, Haridwar Greens will be a self-sufficient integrated residential complex. Its location in Dev Bhoomi — The Land of the Gods — lends the project a divine ambience. The project has been designed by world- renowned architect B+H.
The project has been approved by HDA (Haridwar Development Authority) and is located in proximity to the District Courts, DM and SSP Offices. Home finance is available. The company expects to start delivery of apartments in the next two years. Sunil Kant Munjal, Chairman, Arrow Infra Ltd. and Hero Corporate Services Ltd. said, “Haridwar Greens aims to meet the needs of the local population, those who have migrated to the area and others from India and overseas who consider Haridwar a special place — the true dev bhoomi.”
Courtesy: HT Estates 27th Feb 2010
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YOUR CITY DELHI RENTAL Residential rental trends in Delhi/NCR

Saturday, February 27th, 2010

Rental values are expected to rise by 10-20 per cent in select localities this year
Vineet K. Singh

Delhi, as part of the National Capital Region, traditionally sees a huge influx of people who come here for various reasons. However, due to rising real estate prices, most people rent, rather than buy, apartments during their stay in the city. During 2009, the city and the NCR region witnessed varied average residential rental trends. Prime localities in South Delhi, such as Shanti Niketan, Vasant Vihar and Defence Colony have seen rentals dipping in mid2008 and rising by the end of 2009. Rents in localities such as Safdarjung Enclave, Greater Kailash and CR Park wound down by 20 per cent in 2009 but rose in Vasant Kunj and Saket all through last year. Vasant Kunj commanded rents of Rs 21, 897 in the first quarter, Rs 22, 910 in the second, rose to Rs 23, 414 by the third and ended the year at Rs 23,440. This signifies a 7 per cent rise in rental values from the first to the last quarter. (See box) Vasant Kunj has also emerged as the most affordable rental destination in South Delhi for the middle-income group.
Mayur Vihar, one of East Delhi’s most sought after colonies, has seen a significant rise in rents ¬ 34 per cent rise in the period of a year. This locality is very popular with people who work either in Noida or in Delhi because of the easy access it provides and its strategic location. The present average rental value for a 3BHK flat here would be Rs 21,000. Meanwhile, Patparganj has maintained a steady average rental over the last four quarters. (See box)
In North Delhi, the rent in Pitampura area rose from Rs 5,923 in the first quarter to Rs 6,349 by the fourth quarter -a rise of 7.2 per cent. In West Delhi’s Janakpuri area, the rent in the first quarter was Rs 5,093 and by the fourth quarter, it had shot up to Rs 5,840 -a significant rise of 14.7 per cent. Paschim Vihar also witnessed an increase of 14.4 per cent in rental values. As far as rental trends for 2010 are concerned, I see the rental market stabilising and firming up on the rates after the first quarter. Also, since there will be no new supply coming in immediately, the rental values will more or less remain stable. Select localities may see an increase of 10-20 per cent in rental values.
The author is Business Head, 99acres.com

Courtesy: HT Estates 20th Feb 2010
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Loan special Home loan tax implications

Saturday, February 27th, 2010

Both the principal and the interest components of home loans offer attractive tax benefits

Availing a home loan does not just make you the owner of a house, it also brings with it attractive tax benefits.
Under section 80C of the Income Tax Act, investments in specified instruments up to Rs 1 lakh annually are deductible from an individual’s taxable income. Also included under this section are principal repayments on a home loan. So, in case you take a home loan, any payments you make towards repayment of the principal is deducted from your taxable income up to an amount of Rs 1 lakh.
Besides the principal, the interest component of a home loan also offers tax benefits. Your interest payments are considered as an expense under the head `Income from house property’ and are deductible up to an amount of Rs 1.5 lakh per annum.
Joint applicants, who are also joint owners, are eligible for tax benefits in the proportion of their share in the loan.
The interesting part is that both spouses can claim benefits up to the maximum limit.
Let’s take the case of a couple who buy a home jointly (each owning 50 per cent) and take a loan for it. If the interest and principal paid for the loan is Rs 3 lakh and Rs 1.20 lakh, respectively, each of them can claim Rs 1.50 lakh as interest deduction. This is also the maximum amount that an individual can claim.
For the purpose of tax planning, the spouse earning with the higher salary should claim a higher share to maximise his/her tax relief. Always plan your tax savings after taking all the loan benefits into account, which are the deduction and the rebate. All banks and financing institutions usually issue a provisional certificate at the beginning of the year. This is based on the Equated Monthly Installments (EMIs) payable in the financial year, with the breakup of the interest and principal to be paid. This will give you an approximate idea of how much principal and interest has to be paid in that year. Accordingly, see how this translates into a rebate or interest deduction. Based on such projections, you can assess your income and plan for other investments such as tax-saving bonds and life insurance to save tax. At the end of the year, you will get an original certificate based on the actual EMIs paid for that year. This certificate has to be submitted along with the income tax returns to claim the deduction. Fixing home loan rates One has to be careful about the manner in which the rates are fixed on a particular floating rate loan. While there is a benchmark rate present, one needs to take into consideration its nature, which can influence the way a rate is fixed. There have been several examples where the bank or financial institution actually fixed a separate benchmark rate for its housing loans, which moves and behaves differently from the prime lending rate of the bank.
This gives the financial institution flexibility to make several changes in the benchmark rate without having to rest all the loans in their portfolio. When a larger action has to be initiated, only then the prime lending rate is touched. This has also led to a situation wherein several borrowers have complained about the manner in which the rates move under different circumstances.
When the rates start falling, the revision in the rates is slower than the overall fall.
However, when the rates start rising, the rise in the floating loan rates are much faster than the overall rise.
New and existing loans the loan rate change benefit is available only in a few sectors. There are times when the lending bank or institution changes or lowers the rate on a floating rate loan. But, before existing borrowers can rejoice comes the news that the new lower rates will be applicable only to new borrowers who will be taking loans during a certain period.
This makes the entire move worthless for the existing floating rate loan borrowers because there is no change in the rates as far as they are concerned. There is also a slim chance that a person will go in for another loan to purchase a house because this is a large purchase that occurs at infrequent intervals.
How the spread works One term that is important to understand the fixing of rates as far as floating rate loans are concerned is the spread.
Often borrowers are impacted by a subtle change initiated by banks. The loan for a particular customer is decided on the basis of a benchmark rate. This can be a 50 basis points spread over the benchmark rate.
In such a position, borrowers could find that even though there is no change in the loan rates, they have to pay a higher cost because the bank has changed the spread to 75 basis points over the benchmark. In this situation, the borrowers will find that the loan cost has gone up by 25 basis points for them.
However, this can be changed only in specific conditions and hence it is the terminology used for the entire loan that is important. All this seems to be a minute part of the entire process, but is of great importance to a borrower.

Courtesy: HT Estates 20th Feb 2010
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YOUR CITY NORTH DELHI Linked to the future

Thursday, February 25th, 2010

Syed Amir Ali Hashmi finds both residents and real-estate prices in North Delhi upbeat -all thanks to better connectivity

Aregion in the city that can boast of its own special charm is North Delhi. Much of it is due to the presence of the scenic Delhi University campus. Another aspect to the charm is added by Azadpur Mandi, where thousands of tonnes of fruits and vegetables land before finding their way to different parts of Delhi and neighbouring states. North Delhi is well connected with other parts of Delhi through local buses and the Metro. In fact, the superb connectivity offered by the Metro has had a very favourable effect on the real estate scenario here.
North Delhi encompasses an area of 60 sq. km. Major localities here include Alipur Road, Ashok Vihar, Azadpur, Civil Lines, Kashmere Gate, Model Town, Mukherjee Nagar, Navjiwan Vihar, Pitampura, Prashant Vihar, Rajiv Nagar, Rani Bagh, Rishi Nagar, Rohini, Shakti Nagar, Shalimar Bagh, Surya Enclave, Vardhman Nagar, Vivekanand Nagar, Wazirpur and Inderlok.
Dr Prashant Bhasin, a dental surgeon who runs his own clinic in Shakti Nagar, was born and grew up in North Delhi. His grandparents as well as parents have called the Ashok Vihar area their home.
“I would say that in the last ten years the area has evolved to a great extent.
The (development resulting from the) Commonwealth Games has had a good effect here and the Chatrasal Stadium has been upgraded to international standards and, yes, this will help the people staying here, especially those interested in sports,” says Dr Bhasin.
North Delhi, he adds, has seen vast improvements in the last decade. Along with many malls that have come up more recently, there has been widespread elctrification of the roads, facilitating the installation of streetlights. Lanes where residents never used to venture after dark are well-lit and safe now, says Dr Bhasin.
“In Shakti Nagar Extension, a cricket academy has come up, and we’ve had some swimming pools come up in the area as well. One more stadium has come up on Lawrence Road. All this means that North Delhi has something for all ages and takes special care of kids’ needs too,” says Dr Bhasin.
North Delhi is also one of the first regions to have witnessed improvements in connectivity to the Central Business District (CBD) due to the Delhi Metro. Ever since the Vishwavidyalaya ¬ Central Secretariat Metro link became operational, many North Delhi locations have seen a rise in property prices.
In six months, the Jahangirpuri-Central Secretariat-Qutab MinarGurgaon Metro link is expected to get operational.
This in turn will allow easier access to various South Delhi locations and will also improve connectivity to Gurgaon.
It is widely believed that this will improve North Delhi’s status as a key residential zone and will drive property prices and rental values upwards.
With increased accessibility to the CBD and other areas, the capital and rental values have seen a marked increase. Real-estate experts believe that areas such as Model Town and Azadpur have seen an appreciation of about 30 per cent in capital value.
When it comes to the residential segment, houses near Metro stations attract higher capital and rental values.
Shailendra, a real-estate agent, says that when the Metro reached DU’s North Campus, the rentals went up by 50-70 per cent.
“The introduction of the Metro has meant that people from other parts of Delhi are moving to this area. It has also improved connectivity greatly. Business centres have come up as have some new hospitals. Fortis has come up in Shalimar Bagh, and there’s Max Hospital in Netaji Subash Place,” says Dr Bhasin.
The developers are active here, too, now. Parsvnath Developers has launched two residential projects -near Civil Lines and Subhash Nagar Metro stations. The same developer is also coming up with La Tropicana apartments and villas on Magazine Road, Civil Lines, a project launched in 2005.
The project boasts sophisticated designs for three, fourand five-bedroom apartments, penthouses and villas.
The company started construction in August 2009 after obtaining the requisite approvals including sanction of building plans by the Municipal Corporation of Delhi.
The M2K Group, which has malls in Rohini and Pitampura, is coming up with Victoria Gardens, a freehold, residential project in the Model Town area.
A look at real-estate prices: One-room janta flats in Pitampura, with an area of about 200 sq ft to 250 sq. ft, are priced at Rs 10 lakh to Rs 20 lakh. LIG flats, with one bedroom and a drawing room, spread across 400 sq.
ft can be bought for Rs 30 lakh to Rs 35 lakh in Pitampura. MIG flats come for Rs 40 lakh to Rs 65.7 lakh; super MIG (1150 sq.ft.) go for Rs 50 lakh to Rs 75 lakh; and HIG flats (1150-1450 sq.ft) are going for Rs 75 lakh to Rs 1.25 crore. Plots measuring about 200 sq yd in Pitampura are available for about Rs 2.25 crore to Rs 2.5 crore.

Courtesy: HT Estates 20th Feb 2010
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Loan special All about teaser rates

Thursday, February 25th, 2010

Don’t buy an expensive property just because the interest rates remain low for two years. Look for a better price instead of that 2 per cent savings over two years, writes Satkam Divya

The new home loan</a” teaser rates have sparked off a fresh debate on the discriminatory approach adopted by banks in not letting their existing customers benefit from the current low interest rates.
At present, many private and public sector banks have been offering home loans at rates as low as 8 per cent while the benchmark lending rate applicable to old customers remains as high as 10 per cent to 12 per cent.
Banks have been reluctant to pass on the benefits of lower interest rates to existing customers despite complaints of discrimination. The banks’ terms and conditions have also been widely perceived to be opaque.
A month ago, the Reserve Bank had voiced concerns over `teaser’ rates. Later, it said the cheaper rates should be extended to existing borrowers as well, to which the Indian Banks Association (IBA) replied that if banks offer lower rates to old customers as well, this will affect their earnings as it is not feasible for them to change their deposit rates accordingly to compensate loss of interest from such a move.
The logic given by the banks is that their cost of borrowing funds in the past cannot be changed now and hence it won’t be possible for them to reduce the earning from the same fund.
First, there was the real estate boom and then there were spiralling interest rates.
Post slowdown, the interest rates have come down immensely. While the concept of teaser loans opens up several interesting opportunities to existing and new
home loan borrowers, there are a lot of caveats too.
Understand teaser rates: Before we make some suggestions for borrowers, let us understand the concept of teaser loans. This is how a teaser loan looks like: It offers a fixed rate for two to three years between 8 to 8.5 per cent interest rate.
It can be in the form of a floating rate after teaser period at a declared discount to PLR.
The catch lies in this floating rate. Even at current PLRs, it will be in the region of 9.25 per cent-10.25 per cent, depending on the bank and the size of the loan. Now, all borrowers from 2008 or earlier know that banks are very swift in increasing PLRs. And won’t they lose new customers, because of high interest rates? Well, like in the past, they will give higher discounts to new customers. Get it?
Floating rates, when they were introduced in India in 2000, meant that the customers paid rates according to market interest rates. But banks have only increased rates so far. Why don’t they do anything about it? There is a prepayment penalty of 2 per cent which locks them to the high rates. Yes, one wonders what the RBI is doing. They have been making some noises and sending memos to banks `requesting’ them to be fair to existing customers. There is a chance that some banks will make some temporary superficial amendments, and go slow on PLR discounts for a while. But, unless there is strong regulation protecting customers, one should not `bank’ on this.
New borrowers: This is a good time to borrow, if you are getting good rate for a property. Make sure that you have enough room for an EMI increase after 2 years.
For eg, an EMI of Rs 34,083 on a 40 lakh loan with 8.25 per cent interest for 20 years today will go up to Rs 36,455 or more after the end of teaser rates, when interest rate goes up to 9.25 per cent or more. Also, a small piece of advice for new borrowers: don’t buy an expensive piece of property just because the interest rates are low for two years. You should look for a better price instead of saving two per cent over two years.
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Old borrowers: A good time to prepay and get a refinance on your loan. Most existing loans taken in 2008 or earlier are at rates of 10 per cent or more. The teaser rates give you enough room to justify a 2 per cent penalty of prepayment an around 0.5 per cent costs for a new loan.
Bargain hard, and make sure that you have a good discount on floating rates. A good home loan consultant can explain the entire math and suggest ways of optimising your refinance deal.
The author is CEO & MD, Rupeetalk Financial Services Pvt. Ltd.

Courtesy: HT Estates 20th Feb 2010
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Home loan eligibility criteria

Tuesday, February 23rd, 2010

There are a number of factors that are taken into consideration by a bank or housing finance institution while assessing your eligibility to get a home loan. Below are some of the basic criteria you are required to meet to be eligible for a home loan. The applicant must be at least 21 years of age. The maximum age to avail of a home loan is 58 years for salaried people, and 60 years for self-employed persons. Again this might vary with different financial institutions.
The applicant should have a stable source of income. Banks calculate the amount they can give to you primarily on your net monthly earnings. They take into account their previous experiences and your current track record, which would indicate whether you have taken any other loan or you have had a bad credit history and things like your savings history and your current investments before making a decision as to how much they will lend to you. Finally, they would place you in a certain category of customers which they believe will be able to contribute a certain percentage of their monthly earnings towards their loan repayment. In many cases, an individual’s income level is not sufficient for him/her to be eligible for a high loan amount. In such instances, a viable option is to club the income of another person such as a spouse or a relative in order to boost eligibility. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Even your fiancé’s/ fiancée’s income can be considered for sanctioning the loan on your combined income. The disbursement of the loan, however, will be done only after you submit proof of your marriage. You can also club incomes of parents or children. Clubbing with other relatives is discouraged as banks don’t want to take risks on relationships lasting long-term. Providing additional security like bonds, fixed deposits and LIC policies may also help enhance eligibility.
While there is no need for a guarantor, it could be that having one might enhance your credibility with the bank.

Courtesy: HT Estates 20th Feb 2010
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IS IT REALLY GREEN?

Thursday, February 18th, 2010

A mere `green wash’ is not enough for a development to be environment friendly
Of late, several real estate developers have launched a slew of residential green projects across the country. Their efforts are led by their belief that such products help enhance marketability and also increase operational efficiencies.
There is a school of thought, however, that contends that some of these residential offerings could be `green wash’ projects, and not inherently green.
A consumer must understand that a mere garden or a manicured lawn is not enough for a development to be environment-friendly. Green projects adhere to certain specifications even before work begins on the ground. In fact, these residential structures are graded right from the pre-construction stage, on the basis of site selection (whether it is a `brown field’ or a `green field’ site) right up to the point when construction begins — the type of construction material used and the facilities provided, once people are ready to move in.
The green home launches closely followed a spate of http://www.zameen-zaidad.com/corporate-news.aspx/”>affordable housing products introduced into the market last year. Realty experts are of the view that while the affordable trend will continue to dominate the residential market this year, the new flavour will be green housing.
According to Abhishek Kiran Gupta, head, research and REIS operations, Jones Lang LaSalle Meghraj, “A green project has special green specifications and amenities thrown into it. While the main driver for commercial green spaces is primarily demand, that is not the case for residential structures. When used for residential, the green features are an attempt to be different from regular buildings. While going for a green residential project, it is important for the end-user to choose a brand he/she trusts and look at it from the point of view of past performance, and execution capabilities. These projects are generally available at a premium and bought by those who are ready to pay extra for the differentiator.”
Samir Mathur, architect, points out that the process of certification begins at the point of site selection-depending on its being a brown field or green field.
A developer generally gets additional credits for not utilising virgin land, for the design, the specifications, and for the locations from where the material has been sourced (should be areas close by).
Then there are the green wannabes — who don’t seriously incorporate environment-friendly features in their projects and just want the `green’ status.
The true green projects are those that stick to the straight and narrow and completely comply with all rules related to eco-friendly practices — right from the planning to the execution stage.
Green housing products promise a slew of environment- friendly features such as rainwater harvesting, sewage treatment plant, low flow water fixtures, low volatile organic compound paints, etc. These residential structures are usually certified by two indigenous rating systems namely: LEED India (Leadership in Energy and Environment Design -India) advocated by Indian Green Building Council (IGBC) and TERI GRIHA (The Energy and Resource Institute Green Rating for Integrated Habitat Assessment). These two systems have been developed for awarding ratings to green buildings based on the evaluation of design and construction and assessment of their impact on the environment.
Mahindra Lifespace Developers Ltd (MLDL) has four of its projects registered for the CII-IGBC green home rating system and three of its projects, including Mahindra Chloris in Faridabad, have been given platinum rating in pre-certification. “These buildings incorporate smart design, technology, construction and maintenance elements to significantly lessen the negative impact of a home on the environment,” says Amit Paul, general manager, quality assurance and innovation, Mahindra Lifespaces.
Most projects launched by the 3Cs group: Lotus Boulevard, Lotus Boulevard Espacia and Lotus Panache have all been registered with the IGBC. “In a green development, the whole idea is to reduce the carbon footprint. It is important for a consumer to understand that a green apartment is not about getting a garden or a manicured lawn. It’s all about how the development has been constructed, the materials that have gone into its construction and how will it be maintained,” says Vidur Bharadwaj, director, the 3C Company.
So, what is it that a consumer should bear in mind before investing in an apartment that a developer claims to be green? According to Dr Prem C Jain, chairman, IGBC, “For an apartment, it is enough for the consumer to go in for a basic green certification rather than gold or platinum ratings. Also, the consumer must insist that the flat-buyer agreement clearly identifies that the project is registered with IGBC. This will ensure that the developer will follow the various green parameters to make the building energy efficient. In case the developer decides not to register with the IGBC but claims the project is green, the consumer should insist on specifications such as rainwater harvesting, sewage treatment plant, etc.”
Courtesy:- HT dt:- 13-02-2010
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