Affordable Housing an Urgent Need for all Indian Cities

Urgent need of affordable housing

Rent  or  Smaller  House 

       Affordable housing in the last couple  of years has been the most discussed  topic in CREDAI as well by many analyst.  Infrastructure  industry leaders  like to believe that there has been a lot of progress on the affordable housing front but the fact is that a lot more needs to be done to meet the actual demand  of  the mass youth.

      Studies  showing a  demand for  1.2  Crore  affordable homes and the demand for these homes comes from buyers with a monthly  income of   Rs 15,000-25,000 range.

This affordable housing Schemes will be a solution for the people  to move away from  renting in poor areas with high rentals, providing a build home with clear title,  lighting, water and electricity.

Small Flats with a size range of 230 sqft – 275 sqft will be an ideal space range for this income group. Which can be purchased at a cost of  8 – 10 lakhs max.

Research analyst are worked and found this pocket are free for Developers to Enter. But the hindrance may be the Profit margin on each unit may be very negligible.

Low income housing Profit margin are much  low, which could be a deterrent for developers to get into this segment. “It would help if the government declared real estate as an industry. This will allow real estate players to get capital at cheaper rate and more easily. Eventually, it will help in reducing prices of homes,” says Geetamber Anand, president, CREDAI.

Another big problem with low income housing is that 70 per cent of low income people don’t have access to home loan. According to industry experts, inefficient government policies are also hampering the development of affordable housing. We also see other problem with government norms. When you develop a low-cost housing, the norms should be different than the one apply to the high income group.

Whether it is low-income or high end Housing , certain development such as road width, parking, documentation, etc also required. There require  more incentive to do authorised development rather than unauthorised developments.

“Also, because people don’t want to buy homes far away from their workplace is also a reason that not many affordable homes have come up”, says Manish Srivastava, CEO Muthoot Housing Finance Company Ltd. “So, you need good infrastructure as well to encourage housing to come up near all cities,” he says.

Every Indian City must have this kind of Low income accommodations for the future of the youth coming to City in search of Job and picking up mid level or low  paid Jobs. Helping them to invest rather than paying heavy rents for prolonged period. I’m sure such schemes are extremely ideal for  beginners to  start with and later on  move  to a bigger one as most of us dream.

My DELHI Property on General power of Attorney in trouble

Property on General power of attorney,

                                      Sales deed can register again in Delhi ?

        The Delhi government on 22 July 2013 issued a new notification to allow registration of properties through General Power of Attorney.

Transfer of  property  generally conducted   two methods in Delhi:-

1) Through a sale deed executed between the buyer and seller, which attracts stamp duty of 7 per cent approx. of the sale price of the property.

2) Through execution of a general power of attorney, agreement to sell and will by the seller in favour of the buyer, which attracts a much lesser stamp duty, which people go for it.

what is a Power of Attorney I want to know more?

             A power of attorney is an instrument that is used by people to confer authority on somebody else to legally act on their behalf. They can be of two types – Special Power of Attorney (SPA) and general power of attorney. While an SPA is used for transfer of a specific right to the person on whom it is conferred, the GPA authorizes the holder to do whatever is necessary. For example, in property ‘sales’ using this instrument, the buyer gets a GPA from the seller not only for his own use of the property, but for further ‘sale’ to someone else if he want so. yes, a GPA holder can only sell the property through another one.

             Here the person wanting to sell grants a GPA to the buyer. Often, the buyer will insist that the GPA must be ‘irrevocable’, since he wants to ensure that the seller does not refuse on the deal after the money has been paid. He will also insist on a will and perhaps even on all legal heirs of the seller submitting affidavits revoking their claim to the property. The GPA also specifies that he has the right to sell the property when it is saleable or transfer it to anybody else at his discretion. Typically, the right to get the property converted to free-hold is also specified in writing.

Tell me how to use GPA  in property transactions? 

            Trough the execution of a GPA, agreement to sell and will by the seller in favour of the buyer is used for properties which cannot technically be sold for a variety of reasons. For instance, the original owner may have got it from an institution like Delhi Dev Authority at a below-market rate and it may have imposed a minimum period for which it must be held. Any sale before this period is not legally possible, so a GPA may be resorted to. 

                                              Or
             The property could be part of a housing society which has got the land on lease. In such cases, the owner of the property actually has only a certificate from the society allowing him to use it, but not to sell it. It is only when the property is converted from lease-hold to free-hold that he gets the title to the property. That is when he actually becomes the owner, hence he is entitled to sell it.

Very Simple:                                                                                                                

       Say A freehold property is transferred by executing sale deed by seller in favour of buyer and a leasehold property is transferred through execution of a general power of attorney, agreement to sell by the seller in favour of the buyer.  

Problem on adopting  GPA  method ?

          There were some smart people who were not getting the Agreement to Sell registered with the registrar and were only getting the GPA registered. This was done to evade the stamp duty to be paid on the on registration of ATS. 

Delhi Government Different stages and  Events for lifting the ban 

                        The Supreme Court had on October 12, 2011 had ruled that sale transactions carried in the name of GPA will have no legal sanctity and immovable property can be sold or transferred only through registered deeds. Most states banned the use of GPAs for this purpose soon thereafter. 

But the Delhi government passed an order to this effect only on April 26, 2012, the Revenue department in Delhi had directed all registrars and sub-registrars not to register any sale deed for an immovable property based on a GPA, will or agreement to sell.

The Delhi High Court on May 5, 2013 had quashed the Delhi government order banning property sale through GPA. Delhi HC, in its order, reproduced a paragraph from the SC judgment and held, "Quite clearly, the Supreme Court has not said that in no case a conveyance (sale deed) can be registered by taking recourse to a GPA. As long as the transaction is genuine, the same will have to be registered by the sub-registrar.

In a circular issued on 22 July 2013, the government clarified the following:

A) There is nothing in existing provisions of law that prevents the registered property owner holding registered and valid deed of transfer, like sale deed, gift deed, partition deed, relinquishment/release deed, from executing general power of attorney/special power of attorney in favour of their spouse, son, daughter, brother, sister or any other relative or person of trust to manage his property or empowering him/them to execute any further deed of transfer, including conveyance, sale, gift deed on behalf of the registered owner.

B) Lease can be validly transferred only under a registered assignment of lease. The registered power of attorney is competent to execute further deed of transfer by any authorised mode, like sale, gift, conveyance in accordance with the terms and conditions of the power of attorney. It is also legally tenable if the registered owner enters into a land development agreement or builder agreement and executes a registered attorney in favour of such land developer or builder with respect to his immovable property to facilitate land or building development provided the builder agreement is also produced and registered.

C) The immovable property can be legally and lawfully transferred only by a registered deed, like sale, gift and conveyance. Transaction in respect of immovable property by merely executing GPA/special power of attorney/Will do not convey any title and thus, are not legally recognized valid mode of transfer of the immovable property as per the existing provisions of law.

D) As per the circular, property transaction through GPA will be considered legal but it will not be considered as transfers of title for mutation of property. 

According to the new circular :-

         This lacks clarity on whether the leasehold properties can be sold on the basis of registered GPA, Sale agreement and will. There is no mention of this fact in the circular. Form the circular it looks like I can be given a GPA by someone to manage his or her property and also execute the deed of transfer on his behalf. If I have a GPA it doesn't means I am a legal owner of the property. I am just a custodian of the property and can assist the legal owner in different property matters including the execution of transfer deed. If my understanding is correct this absolutely changes nothing from the sale and purchase point of view for Delhi properties. The leasehold properties legally won't be transferred on GPA.  Also key point to note is that banks do not give loans for property transactions done through GPAs. So, it will not lead to greater demand for such properties. 

              Last Couple of Year’s people are of the view that this move is expected to provide relief to lakhs of residents living in group housing societies and unauthorised colonies. The lifting of the ban on GPA-based transactions will help sell and purchase of properties in unauthorised colonies where there is no clear title. To me this looks to be a difficult proposition as most of the property in unauthorised colonies have been sold on GPA and that too not registered ones rather they have been just notarized. The properties have changed number of hands and it is really a difficult task to get them registered and regularize. The Government needs to come up with a procedural framework to get this matters clear for the public.

     Hope the Government will soon come out with further clarification on the circular and sort out all the above issues.

      Its always advisable to buy a Free Hold  Property in DELHI rather than getting in to the loops of endless General Power of attorney chains. Finally who is the Owner? The one with the Purchase Deed registered.

Home buyers need to worry on TDR present shortage

Will Home price Increase on TDR issues?
                        Or It’s a concern for TOP Project  Developers in Mumbai- Pune

               Government stepped in to  TDR policy and launched in 1991 to decongest cities. Plot owners who spare marked spaces like playgrounds, etc., or whose land was needed for road-widening, could surrender it and get an equal amount of space in the suburbs. In the suburbs, (transfer of development right ) TDR is generated when the developers/owners surrenders his land to the government and agrees to re-house slum dwellers or project-affected persons free of cost. In turn, he is issued a TDR certificate that gives him additional construction rights in the suburbs but only to the north of the plot he has surrendered. For instance, if a slum is redeveloped in a non-prime area, the builder can utilize TDR in an upmarket area. According to industry sources, developers have reaped a bounty ever since the concept of slum TDR was introduced by the state government in 1997. They have gone on a construction spree, especially in the congested areas.

         

              Through the constant up and downs the real estate in Maharashtra in now facing another obstruction  through TDR,  since the last few years. However, the segment received a major jolt due to the recent spike in transfer of development right (TDR), a move which have been received by the sub-urban developers with great caution and even disappointment.  Hear what MR. Ram Raheja, director and head-design architecture says,  on this “TDR is an important component for builders redeveloping suburban properties because it doubles the built-up area over and above the usual floor space index (FSI) permitted on the Plot. Builders wanting to buy it from the market are now finding it increasingly unaffordable”.

         Last few years, the price base of TDR was in the range of Rs 2,250-2,500 per sq ft but suddenly, it jumped to Rs 4,000 per sq ft. According to experts, there was effectively an increase every month. Look at the experts view on this Shubhankar Mitra, head-strategic consulting (west), Jones Lang LaSalle India, informs, “The sudden rise in the TDR price from Rs 2,000 to Rs 4,000 per sq ft has caught the market unawares, despite the fact that a rise was likely, as not much TDR generation mostly comes via slum redevelopment or road widening projects. Effectively, TDR prices have now doubled; such a steep rise was not expected.”

          For all good TDR policy was launched in 1991 to decongest cities. Owners having plots were used for spaces like playgrounds, government projects welfare for the public etc, whose land was needed for road-widening, could surrender it and get an equal amount of space in the suburbs. In the suburbs, TDR is generated when the developers/owners surrenders his land to the government and agrees to re-house slum dwellers or project-affected persons free of cost. In turn, he is issued a TDR certificate that gives him additional construction rights in the suburbs but only to the north of the plot he has surrendered. For instance, if a slum is redeveloped in a non-prime area, the builder can utilize TDR in an up market area. According to industry sources, developers have reaped a bounty ever since the concept of slum TDR was introduced by the state government in 1997. They have gone on a construction spree, especially in the congested areas.

         Executive director, Ravi Ahuja, Cushman & Wakefield India, concurs that “An increase in prices of TDR will have a negative impact on developers as it will reduce profit margins in projects. Hence, these increases would be passed on the buyers, putting additional pressure on them and creating a negative impact on demand.”

         The transparency in the process of acquisition can help in price and quality control. However, Ahuja is quick to point out, “TDR is traded in the open market and prices are arrived upon based on supply-demand dynamics. It would be very difficult to control prices in the open market.”

          Experts caution that if some measures are not taken immediately, a further hike is going to affect the market negatively. “The substantial price hike will result in a slowdown in trading of TDRs for some time as the current residential markets are subdued in many pockets in Maharashtra and developers are faced with liquidity issues. Hence, developers looking at launching new projects would be slow in acquiring TDRs at the new prices as they would have to be sure that the project costs and unit prices can absorb the increased costs,” concludes Ahuja.

              Un less the government find new developing pockets and start spending on it the TRD availability shrinks in the market and the existing holders demand steep price hike. From now may  be discounted property rates may vanish.

There the option may be only to stick with the allowed FSIs area wise.

    

Discounted Property Rates on Coming Index

Discounted Property  Rates Claim Now than Never

Magicbricks.com  recent  Property Index  gives a clear idea  of property availability  price quote and comparisons.  Its clear that the  structured real estate market function on defined metrics which  act as indicators to the health of the country's economy. India’s  housing Charts  are different  with all kind of  this projections, even though  many may compare this present charts with US housing  data which shocked  markets around the world five years ago.

Much of  Indexes  developed by  modern  Guru’s  and publish  in the market,  people use as reference  to wards real estate housing purchases.  Ground reality is far different than the charts when one approach for a Home Buy.  Many Sensible buyers are not referring to chart when they sit across a negotiation table.  

Affordable Housing  projects developed by almost all the  company  are maintaining a substantial satisfactory demand – sales- creation graph. Price Index lines as one watch in the graph  is not visible and taken in to account  while negotiations, considerations work when it comes to closing of a deal. Holding close to Index certainly creating adverse effect  between buyers and Property developers.   

FREE Property Posted in many  Digital portals like MagicBricks.com, domydeal.in, Quikr,  are mostly posted by Agents, they are  the same property  but in multiple site. This doesn’t  mean all this  property in the market is going to create a seen like BUY ONE and take ONE FREE.  Even Reputed builders Use this free  posting facility  along with brokers and agents creating  adverse effect with in their Brand name and reputations in the real estate market. Since  they are displayed  in the lot  people do claim  for 20% discount on this property on to days market. 

Indian Property Investors and Developers also Dealers want to see a steady  rise and demand of  few Hundreds  may be every Week  in all towns, , that  is not happening now.

Going through the index and further adding self projection, many people may even think of selling their  own home, thinking of buying it cheaper  after a Property Crash. NO, Indexes are only for marginal study purposed not ideal for Common man to make drastic decisions.  

Indian Common man need a Home which take decades to happen or life time EMI & Earnings.

 Indexes vanishes  as  months  old  stories !!     

Bangalore World Trade Center

Towers and Trade Centers of  Bangalore

Top Project Developers of Bangalore, are now planning landmark high-rises within their credit  to stay away from the cluster of  new mid size project developers mushroomed in the market.

They also want to test on  World Trade Centre brands, seen on some of the world’s most prestigious buildings, symbolises locally-focused economic strength in world commerce and is synonymous with cutting-edge technology, international business and trade.

 All such schemes under construction  skyscraper format requires  best of  construction technology with large access  to funding. Thanks to FDI  flow  in Infra  Development ,fast track sanctions  opened  by the  new government policies a year ago, giving a substantial boost  for funds to  flow  towards right projects for quick execution.

       However, the more important advantage is that such towers free up more of the available ground space, allowing more green areas to be developed. If infrastructure is planned adequately and efficiently, such projects could help provide better living standards for the residents.

Apart from the benefit of increased ground space, such projects help in making better air, light and overall environment available to the residents as well as Commercial establishments . Other factors are improved safety and security, which – along with services, common facilities and amenities – have always been a major concern for project developments.  By sharing the cost of common services, security and amenities cost, thereby reducing the overall cost burden and increasing saving & efficiency for the end users. Definitely, there are considerable  value attached to operating  from  a high-rise Business tower  – especially in a Indian city that has not  experienced  much  with such projects till now.

Bangalore WTC

India is the hub for big shot construction companies in the market like Brigade Group, L&T, DLF, Tata Projects, Gammon India and Hindustan Construction. Since it is a developing nation, the role of these companies is vital. Today, there are more than 100 super tall skyscrapers under construction. Every major Indian city has at least one tallest skyscraper to flaunt about.  Have a look! Where Bangalore can hold to “ Brigade Gateway”

World Trade Center Bangalore, at Brigade Gateway, will be part of the most respected international business community—through WTCA’s network of nearly 300 World Trade Centers in 100 countries, serving more than 750,000 affiliated businesses. As on now there is  only one WTC building in India is in Mumbai.

Locating in the Malleswaram-Rajajinagar area, close to the central business district of Garden City, In a premium neighbourhood, within the 40-acre

 Brigade Gateway integrated lifestyle enclave, Ideal for Corporate offices, IT / ITES and Software development  companies.

New York Architect: H.O.K and  his  team  are behind  the Bangalore  tallest  structure.

With 32 levels and 128 m high, 1.1 million sft of prime office space it has amazing Unique features, which differs from many other towers  and Office spaces.  

Its tough to find , anything more to  added to this massive structure.

 All international standard add such as 4.2 m floor-to-floor height, 21 high speed elevators, of which some are destination controlled . Low  E- glass to minimise heat and maximize visibility. Double glazing to minimize noise and power loss, Uninterrupted power supply with 100% power back-up,  Grand triple height atrium

Adding more towards  comfort  to Business visitors,  Centralised air-conditioning, 9-level parking, Cafeteria for occupants.

To Keep away  from the Bangalore Traffic  mess a Helipad and observation deck Sky bridges connecting WTC with the 5-star Sheraton, Bangalore hotel and Orion Mall & Multiplex within the enclave.

On top of all highest levels of safety and security measures are taken in to account.

This ready to occupy  space having the existing foot print of  renowned   business houses such as   

Amazon, H&M, KPMG, Canadian High Commission, IEEE, Siemens, Samsung, Toyota, HDFC Bank, Mytrah Energy, Samsung, UEC, Regus, Kalyani Gerdau, LS law, CAPA, Tellabs, Quadgen Wireless, Pramathi Technologies, Planet Retail and many  more ..

A World Trade Centre is a premier business address. It is a building or a complex of buildings housing the central World Trade Centre staff as well as diverse range of tenants (public and private), the majority of which are involved in international commerce. The World Trade Centre may be located in a tailor made new, special purpose structure or in a building that already exists. Anchored by a unique combination of tenants and visitors, a typical World Trade Centre is usually a bustling hub of export activity for the Business Houses.