Monday 28 August 2017

REALTY WAKES UP FROM A SLUMBER, HINTS AT REVIVAL



MUMBAI : A slew of measures initiated by the government such as interest subvention on affordable housing, steps to eradicate black money and prop up end-user demand for residential real estate are translating into better sales in the country's top-8 cities, indicating a revival in growth, several reports by property consultants and research firms have suggested.
Residential sales across top 8 cities of the country have increased 6% on a sequential basis in the second quarter taking the total growth to around 28% post demonetisation last year, showed data from Liases Foras Real Estate Rating & Research.
The sequential growth assumes significance as the rise was recorded after the 21% increase witnessed in the last quarter. This is despite the disruption of implementation of Re a l E s t at e ( Re g u l at i o n & Development) Act, 2016, and goods & services tax (GST). On an annual basis too, the rise in sales stood at 4% during the quarter.
Another recent report by Knight Frank India had also showed that residential sales, led by affordable housing, have gathered pace and have shaken off the woes of demon etisation. While sales across top eight cities during the first half ended June are down 11% on-year, they have risen by the same proportion when compared with JulyDecember period that was marked by the demonetisation shock, Knight Frank India said.
According to Liases Foras, Mumbai Metropolitan Region (MMR) constituted 24% of the overall sales in tier I cities, recording the highest number of sales at 15,824 units -this is the highest sales figure the region has clocked in the past seven years. This is also the third best performance of the region ever in terms of sales after June 2009 when it had registered 21,000 units, and September 2009 when it saw 17,000 units being sold.
“Post-Lehman crisis, market had corrected almost over 30% and had adjusted itself to see more affordable home launches. Similar feat is being repeated, albeit this time the adjustment is more through time correction as the prices have remained stagnant for the last three years. In addition to this, we are again seeing good amount of affordable home launches spurred by the government initiatives,“ said Pankaj Kapoor, managing director of Liases Foras Real Estate Rating & Research.
In the Union Budget 2017, the government accorded infrastructure status to affordable housing segment. On New Year's eve, Prime Minister Narendra Modi had announced the government's decision to provide interest subvention of 3% and 4% for loans of up to `12 lakh and Rs 9 lakh, respectively, under the Pradhan Mantri Awas Yojna.
Country's largest mortgage lender HDFC saw Individual loan disbursements growing 21% during the quarter ending June. The average size of loans stood at `26.3 lakh, an indication of the rising prominence of affordable housing demand.
According to Keki Mistry, Vice Chairman & CEO of HDFC, post demonetisation, the individual disbursement growth trajectory began normalizing during the first quarter ending March.
“Given that interest rates are lower and property prices have not moved up for long, homebuyers are showing keen interest in buying houses on the back of incentives provided by the government,“ Mistry said. Mortgage lender Indiabulls Housing Finance also witnessed a 39% on-year jump in its loan disbursements for the quarter ended June after recording 28% growth in the preceding quarter.Over the past one year, housing loan interest rates have eased over 100 basis points and this has also prompted homebuyers to act.
While sales have been improving, supply numbers are easing due to slower pace of new launches.Inventory levels across tier I cities de creased to 44 months in the June quarter from 47 months in the previous quarter.
However, it still re mains far away from the desired 8-10 months market inventory indicating continued stress on pric ing hereon. Prices are likely to remain sub dued, which would rather help in improving sales volumes.
Affordable segment with properties priced below `25 lakh across the eight cities contributed to 17% of overall sales compared with 16% in the previous quarter. MMR recorded maximum sales in the affordable category at 24% of total sales followed by Pune at 22%.Sales in the cost bracket of `50 lakh to `1 crore increased marginally by 1%.


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Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
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CAN AN NRI PURCHASE OR OWN A PROPERTY IN INDIA?


Under the RBI’s guidelines, a non-resident Indian (NRI) is allowed to purchase certain types of properties, while other forms of realty may require special permissions

Any non-resident Indian (NRI), who is interested in buying a property in India, should be aware of certain legal provisions pertaining to the purchase or owning of an immovable property in India under the Foreign Exchange Management Act (FEMA). NRIs and persons of Indian origin (PIOs) are treated at par, for the purpose of investment in real estate.

Types of properties, where NRIs or PIOs can invest


The Reserve Bank of India, through a circular, has given general permission to NRIs, to purchase any residential or commercial property in India. The investor need not seek any specific permission from the RBI, nor is he required to send any communication or intimation in this regard to the RBI. Under the existing general permissions, an NRI can purchase any number of residential or commercial properties. The income tax laws also allow an NRI to own as many residential or commercial property as s/he pleases.
In case the NRI is unable to come to India, the documents pertaining to the purchase can be executed by any person, who is given a valid power of attorney. Under the RBI’s general permission, an NRI cannot purchase any agricultural land or plantation property in India. Consequently, under the existing regulations, NRIs cannot purchase farmhouses in India. So, if an NRI wants to purchase a farmhouse or plantation, s/he will have to approach the RBI for a specific permission and the RBI will consider this on a case-to-case basis.

Joint ownership


An NRI can purchase the property, either as a single owner, or jointly, with any other NRI. However, a resident Indian or a person, who is otherwise not allowed to invest in a property in India, cannot become a joint holder in such property, irrespective of the second holder’s contribution towards the purchase.

Continuance of ownership of property, after becoming an NRI


What if a person who owns properties in India, subsequently, becomes an NRI? Such a person can continue to hold the property in his name in India. An NRI is also allowed to continue to own any agricultural land, plantation property, or farmhouse that he owned when he became an NRI, which he is otherwise not allowed to purchase, after becoming an NRI. They are also allowed to let out the property, irrespective of when it was acquired. The rent received from such property, can be remitted, after appropriate Indian taxes have been paid on such rent.
Likewise, any NRI is allowed to sell, or gift an immovable property to any person resident in India. S/he can also gift or transfer any property, other than agricultural property, farmhouse, or plantation property, to any NRI.



You may also contact us at - +91-22-25452903, 66543333 or
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Source - housing.com

Squarefeet Group


Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India
+(91)-22-25452903, 66543333
info@squarefeetgroup.in
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WILL GANESHA BRING CHEER TO REAL ESTATE?




Several policy changes being unveiled by the government in the recent past, have significantly impacted the real estate sector. We look at the long-term prospects for the property market and whether the festive season beginning with Ganesh Chaturthi, can usher in better days for home buyers

It is a common belief that making property investments on auspicious days, like Ganesh Chaturthi, will lead to appreciation in the value of the asset. Moreover, buying a property often involves one’s life savings. This year, one has high expectations from Vighnaharta (Ganpati), to bring festive cheer to the real estate market. Developers are optimistic that despite the slowdown, the market will pick up later. They cite the recent policy changes to substantiate this belief.

How policy changes will affect the festive season

The Goods and Services Tax (GST), for example, will change the market, slowly, although it is still early days to comment on its impact, says Parth Mehta, managing director of Paradigm Realty.
“Auspicious days like Ganesh Chaturthi or Diwali, always bring the much-needed cheer to the market. So, from the developers’ perspective, we do expect a good turnout. From a buyer’s point of view, there are a few good things which are happening in the real estate industry. Once the Real Estate (Regulation and Development Act (RERA) is completely implemented, we will get better results from the industry. The recent price corrections offer more reasons to buy. We hope Ganesha bestows stability on the real estate market,” adds Mehta.
Shailesh Puranik, MD of Puranik Builders, concurs that reforms such as the GST, demonetisation and implementation of the RERA, have slowed down the real estate sector to an extent. “There are short-term setbacks with these reforms but the long-term benefits are far greater. While the government’s reforms have hampered growth, positive decisions of the RBI like reduction of interest rates, have been huge boons for the sector. Lower interest rates and greater trust in a project, because of the introduction of RERA, will be major drivers to bring home seekers back into the fold,” Puranik maintains.

Real estate sentiments on Ganesh Chaturthi

Owing to demonetisation, RERA and GST, almost 90 per cent of home seekers put their decisions on hold, points out Aniket Haware, managing director of Haware Builders. “Now, the ambiguity is over. Consequently, home buyers will now proceed and freeze their decisions, this season. Home loan interest rates are going down and we now have a regulator to keep an eye on the sector and the GST has also come into the picture. With things stabilising, sentiments are also improving. In India, if the time of investment coincides with a festival or auspicious time, then, it is like icing on a cake. The sentiment of home buyers towards property purchase, is generally high during the festive season, beginning with Ganesh Chaturthi,” explains Haware.
Developers are also trying to lure buyers with innovative offers during the festive season. “As developers, we also believe that auspicious time plays a vital role. So, we line up new launches and offers during this time,” elaborates Haware. Puranik Builders, on its part, has a ‘Monsoon Bonanza’ offer, which promotes zero down payment at the time of booking, along with zero effect of GST on prices. “The positive sentiment in the market is growing and the industry is set to see much better days ahead,” feels Puranik.

The market for affordable homes

Surabhi Arora, senior associate director, research, Colliers International India, predicts that the market will pick up, owing to an increase in the number of transactions in the festive season, especially during Ganesh Chaturthi in the west and Navaratri in NCR. “Developers generally dole out a lot of festive offers, from gold coins to international holidays. However, this festive season, the buyers will pay more heed to RERA registration, rather than any other free offer. Buyers are likely to consider ready-to-move properties or projects that are nearing completion and that too, smaller units. The real estate market is in a recovery mode. The government subsidy on interest rates under the Credit Linked Subsidy Scheme, should boost affordable housing. Some banks have introduced new home loan schemes, which offer flexibility in interest moratorium and principal repayments. These schemes are aimed at the young working professionals from urban areas,” Arora elaborates.
Market demand, now, is for affordable homes, i.e., 1-BHK units. Ready-to-move-in homes are likely to fetch good prices, due to greater demand, adds Haware. “The market for luxury homes will also pick up but not as much as affordable homes. There is a lot of inventory still in the market and developers are not launching new projects. Home buyers also stand to get GST benefits, on ready properties. So, affordable housing and ready-to-move-in will be the preferred choices, this Ganesh Chaturthi,” sums up Haware.



You may also contact us at - +91-22-25452903, 66543333 or
Email us at - sales@squarefeetgroup.in
Source - housing.com

Squarefeet Group


Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India
+(91)-22-25452903, 66543333
info@squarefeetgroup.in
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Wednesday 23 August 2017

AREA FOCUS - GHODBUNDER ROAD, YOUR NEXT ABODE?




Ghodbunder Road, as an investment hub, is growing from strength to strength
In an exclusive Times Property roundtable, we tried to achieve just that.

Ghodbunder Road, also known as the State Highway-42 runs through the district of Thane. It is a 20-km stretch connecting the Eastern Express Highway and the Western Express Highway. Rizwan, a real estate agent in the locality says, “Since the locality is strategically placed and offers highspeed connectivity to every part of Mumbai, it is emerging as an investment hub. Also, it has a lot of potential due to the availability of land for residential development and upcoming infrastructure development.“ opment.“
With developers coming here to build projects, buyers are getting attracted to its better and affordable housing options with low rentals, new projects and good amenities.
According to realty experts, Ghod bunder Road, once a town with narrow roads and low-rise residential projects, today, is highly developed with skyscrapers, flyovers, highways, wide roads and malls. Subhadra A Shukla, a resident of the locality says, “Ghodbunder Road has the best natu ral environment since the Ulhas River and Yeoor Hills make it a serene place to live in. Not only this, driving from Dadar to Ghodbunder Road is swift and quick as you will hardly find any traffic.“ So whether you are a buyer or an investor, Ghodbunder Road seems to be a promising and smart investment destination.

Credit : epaperbeta.timesofindia.com


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Squarefeet Group


Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India
+(91)-22-25452903, 66543333
info@squarefeetgroup.in
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Friday 18 August 2017

FINANCIAL NUMBERS THAT ASCERTAIN YOUR HOME BUYING CAPACITY

 
While you plan to avail a home loan, it is important to understand certain numbers that are of utmost significance to mortgage lenders. 99acres shares a list of such numbers that not only ascertain your home buying capacity but also create a favourable financial image.
As you decide to purchase a house, there are a plethora of things that need careful scrutiny. Right from the exteriors to the interiors of the house, all factors should be closely scanned to avoid later regrets. Nevertheless, before you go to the point of property investigation, one thing that is utmost imperative to understand is your financial position.
Evaluating your buying power is significant to ascertain the loan amount that will be granted by mortgage lenders. Basically, there are four financial factors that lending institutions prominently zero in on - credit score, down payment, debt-to-income ratio, and assets to determine a buyers economic background. Comprehending how these numbers affect the chances of credit approval is crucial for every prospective home buyer.

Credit score

Credit score is one of the most basic ways a lender determines your ability to repay home loan. The score ranges from 300 to 900. According to Muralidhar, a financial expert, 'The closer the score to 900, the higher is one's ability to repay a loan and, therefore, better the chances of loan approval. Ideally, anything above 750 is considered as a good credit score. Anything lower than 750, does not necessarily mean that the mortgage will be denied, however, it will impact the quality of loan offered. For instance, a loan for a borrower with a credit score between 580 and 699 comes with a higher interest rate, which would make the mortgage more expensive to repay.
There are five factors that influence one's credit score, each varying in importance: payment history (35 percent), previously owed debts (30 percent), length of the credit history of the customer (15 percent), credit mix (10 percent), and new credit (10 percent). In India CIBIL, Equifax and Experian are three institutions authorised by the Reserve Bank of India (RBI) to determine credit scores.

home loan
Credits : www.freepik.com/

Down payment

The amount of cash payment made during property purchase is another important factor that determines your mortgage eligibility. Remember, while you are jostling with the loan approval process, a higher down payment wou Id improve your overall buying ability.
Ideally, 20 percent of the total amount should be utilized towards down payment. Remember the higher the amount of cash payment, the lesser the future liability and stronger is your position to negotiate with the lending institution for lower interest rate.

Debt-to-income ratio (DTI)

As important as credit score, debt-to-income ratio is a financial calculation that determines your ability to pay the mortgage amount in addition to other outstanding arrears in your name. Basically, there are two types of DTIs':
Front-end ratio: Also referred to as housing expenses, front-end ratio is the percentage of income that would be used for housing expenses, inclusive of monthly EMIs for other real estate mortgages, insurances, and other dues. This is calculated by summing up the housing expenses and dividing it by gross income (before taxes). The ideal ratio recommended is 28 percent.
Back-end ratio: This includes your monthly debt liabilities such as credit card bills, car loans, student loans, and other expenses, exclusive of house dues. To calculate back end ratio, monthly debt expenses are added and divided by monthly gross income. The ratio should not be higher than 36 percent as it poses a challenge to your financial health.

Asset proofs

A bank's biggest concern is whether the buyer would be able to repay the whole amount regardless of other financial problems that may arise in the future. Considering the surge in the number of defaulters over the years, banks have become more cautious and scan stacks of documents afore disbursing the loan amount.
Tax returns, pay stubs, income proofs, letter of employment, proof of funds, and photo ID are some important documents required. These are not the only documents needed though and a lender may ask for many more if needed.
On the whole, while you plan for a house purchase, do the above financial calculations at your end and evaluate your buying power before approaching a lending institution.





Squarefeet Group


Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India
+(91)-22-25452903, 66543333
info@squarefeetgroup.in

Source - 99acres.com

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Thursday 3 August 2017

ALL YOU NEED TO KNOW ABOUT PRADHAN MANTRI AWAS YOJANA (PMAY)


The much talked about Pradhan Mantri Awas Yojana (PMAI) is an ambitious project aimed at housing every citizen of India. We elaborates on the flagship housing project and the incentives assured by the government under the scheme. The vision of Prime Minister, Narendra Modi, to ensure housing for all not only gave hope to people who refrained from investing in real estate sector owing to high costs, but also stirred positive sentiments amongst builders and developers. Launched on June 1, 2015, the Pradhan Mantri Awas Yojana (PMAY) scheme, aimed to offer pucca affordable housing options to urban and rural poor. In order to aid the efficient development of low-cost homes, the scheme embraced a plethora of incentivising offers for developers, which targeted at helping them to tide over their financial instabilities.
The ambitious project incorporates multiple plans and solutions to benefit all stakeholders involved. Let us delve further into it to understand the key features of the scheme and how it would benefit homebuyers and the real estate industry at large.

What is PMAY all about?


PMAY is an initiative undertaken by the Central government for providing affordable housing options for Lower Income Groups (LIG) and Economically Weaker Sections (EWS).
The scheme was originally rolled out for only the LIG and EWS homebuyers, however, it has now been extended to the Middle Income Group (MIG) consumers as well. Opining on the expansion of PMAY, Rohit Poddar, MD, Poddar Housing and development Ltd shares that it is practical to include MIG under the realm of the project as the definition of affordable housing in Tier II and Tier III cities does not restrict to only 30 sq m units, but also includes bigger 2BHK units. Therefore, the extension to 90 sq m and 110 sq m is a well-contemplated and important decision undertaken by the government. In an attempt to ensure faster completion, the mammoth project is divided into two parts - PMAY-Urban and PMAY-Gramin.
1. Under PMAY-Urban, the focus is on congested slums, where temporary housing units will be replaced with pucca or permanent houses and will be delivered to the slum residents and other groups hailing from LIG, EWS and MIG segments.
2. PMAY-Gramin, the scheme extends to rural areas. Those living on rent or owning a house that entails construction can apply to this scheme Credit Linked Subsidy Scheme (CLSS) Basically, there are two key features of PMAY scheme - First, it will offer affordable permanent housing to LIG, EWS and MIG segments. Second, it has introduced Credit Linked Subsidy Scheme (CLSS) on loans availed for construction, extension and improvement of existing houses.

Eligibility criteria for CLSS


1. The beneficiary should not own a pucca house in his/her or in the name of any member of his/her family in any part of India
2. In case of a married coupler either of the spouse or both of themin joint ownership will be eligible for a single subsidy
3. The beneficiary should have not availed central assistance under any housing scheme from the government or any benefit under PMAY earlier

Who will be the beneficiaries under CLSS?


The beneficiary family will include wife, husband and unmarried children. (An adult who is an earning member regardless of the marital status can be treated as a separate household in MIG category).

Pradhan Mantri Awas Yojana
Credits : 99acres.com
*Women ownership is not required for loan availed on construction and extension of the house
** For MIG-1 and 2 loan should be approved on and after 1/1/2017
*Source- HDFC

Important facts


1. Interest subsidy will be available maximum for 20 years or the loan tenure, whichever is lower
2. The cost of affordable residential property for MIG should be less than Rs 65 lakh in six metros and Rs 50 lakh in non-metros

Why is PMAY important?


While quarterly report cards of popular metros reflect huge inventory overhang, the overall country exhibits a shortage of 20 million housing units and PMAY is an initiative to cater the shortfall.
Previously, with conventional project approval processes, it did not make much commercial and financial sense for entrenched developers to construct affordable homes as capital carrying cost remained onerous. Besides, there were no incentives for any stakeholder in the entire chain, resulting in much lower margins than anticipated. It is only for the last 1-2 years that such enabler policies have been put in place to encourage developers. Infrastructure status grant to affordable sector in the Budget 2017-18 has also been an encouraging move which would help developers in improving their credit off-take and have easy access to cheaper institutional financing. Overall, the affordable housing segment is set to scale sustainable growth trajectory on account of increased investments from FDI, insurance funds and increased participation of private players.

Challenges on the way


Single window clearance remains the biggest challenge ahead for the developers and builders. Several approvals at different stages of development not only lead to project delays but also add to total construction costs. Moreover, land being a limited resource, is also a major deterrent. While the government is mulling to unlock land parcels under its ambit, there still remain certain political and environmental limitations to overcome.



Squarefeet Group


Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India
+(91)-22-25452903, 66543333
info@squarefeetgroup.in
Source - 99acres.com
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