Investing in Real Estate in Mumbai? Here’s Why You Should Consider Thane

 Courtesy Of A Number Of Commercial And Residential Infrastructure Projects, Thane Has Become A Top Realty Spot In Mumbai. The City Of Lakes Offers You The Opportunity To Side-Step The Congestion And Traffic Faced By Mumbai Residents And Has Excellent Amenities, Educational And Healthcare Services, Employment Avenues, And Connectivity On Offer.

Property Appreciation Trends, The Presence Of Well-Known Builders, And Benefits To Middle-Class Buyers Through The Interim Budget 2019 Are Some Of The Reasons Why You Should Consider Thane When You Are Looking To Buy A Property In Mumbai.

Take A Look At Each Of These Factors More Closely For A Better Understanding.

Property Appreciation And Price Trends

Thane Has Witnessed Rapid Infrastructural Development In The Recent Past. The Advantage Of Buying A Property In This Developing Area Is That You Get Lower Rates And Can See The Value Of Your Property Appreciating Quickly.

If You’re Looking At Buying Property As An Investment, Generous Appreciation Will Mean Higher Returns In A Shorter Span Of Time.

Presence Of Reputed Real Estate Developers

Buying A Property From A Real Estate Developer With A Proven Track Record Ensures That Quality Of Building Materials Used Is High, There Is Proper Maintenance Of Common Spaces, World-Class Amenities Are Available, And An Enhanced Life Experience On The Whole.

Owning A Property At Such A Project Can Also Go A Long Way In Securing Good Rental Income Should You Want To Let It Out. Fortunately, Reputed Real Estate Developers Have Set Up Shop Here, Which Means You Have Plenty Of Credible Options To Choose From.

Growing Locations Like Ghodbunder Road

Another Reason Why Thane Is A Top Real Estate Locality In Mumbai Is That You Can Choose From A Wide Range Of Sub-Localities. So, While Areas Like Thane West Can Be Expensive, Locations Like Ghodbunder Road Will Help You Buy A Property In Mumbai At A Cheaper Price.

What’s More, According To Recent Data, Price Trends For Apartments At Ghodbunder Road Are Moving Upwards At A 33% Rate, 13% Higher Than The Average Price In Thane West.

Benefits Of Interim Budget 2019

Investing In Property In Thane Now Is Ideal Because Of The Newly-Announced Tax Exemptions For Homebuyers. The Interim Budget Presented By The Ruling Party Has Made Way For Nil Notional Rent Tax On A Secondary Self-Occupied Tax, TDS Threshold Increase To Rs.2.4 Lakh, And Capital Gains Rollover Of Up To Rs.2 Crore. Additionally, Taxable Incomes Up To Rs.5 Lakh Enjoy Greater Rebates By Way Of Section 87A.

Now That You Know Why Thane Is A Great Location To Invest When It Comes To Prime Real Estate In Mumbai, Get All The Help You Require By Availing A Home Loan By Leading Home Loan Service Providers.

With A Loan Amount Of Up To Rs.3.5 Crore, You Won’t Have To Compromise On The Property Or Apartment Of Your Choice. You Get Affordable Interest Rates And Should You Be A First-Time Home-Buyer, You Can Get Tax Benefits Up To Rs.2.67 Lakh Under PMAY’s CLSS

GST rate for construction and building materials

This article discusses in detail the tax you have to pay as GST, on various building materials

To subsume almost all indirect taxes in India, except for a few state taxes, the government, in 2017, launched the Goods and Services Tax (GST) regime that is in line with globally-accepted tax regimens.

The Goods and Services Tax (GST) covers real estate in India through works contracts and building and constitution works, as all components used in the development work attract GST. To put it simply, covered under the new regime is the Indian construction industry, which continues to attract high rates of taxes through a blend of levies imposed on the purchase of various building construction materials.

In spite of the many policy support measures that have been announced by the government and the banking system and several discount offers launched by the builder community, rates of properties in India’s most active markets continue to move upwards, on the back of a spike in rates of building and construction materials. In the past few months, leading to September 2021, prices of construction materials have shown nearly 20% increase, primarily because of supply concerns. With no correction in GST rates, developing residences continues to be pricey for the builder, making purchases pricier for the buyer. According to industry estimates, the average price to develop a sq ft of space now stands at Rs 2,000. This means the buyer has to pay a price much higher than what the builder spends.

Discussed in detail in this article are the taxes one has to pay as GST on various building materials. 

Real Estate trends: Housing supply and demand set to grow this festival season

 In Mumbai Metropolitan Region (MMR) alone, consultants expect 2 million sq ft of launches in the coming festive months with 25-30 big launches planned.

The upcoming festive season is expected to spoil customers for choice in the residential real estate sector. After witnessing tepid launches momentum for several years and last year’s season getting hit by the pandemic, 2021 will see some big projects getting launched across the country.

As per Anarock Research, current trends suggest that there will be at least 30-40% growth in both new launches and sales in the ongoing quarter (July-September) as against the preceding one. As many as 24,600 units were sold across the top seven cities in Q2 2021, while 36,250 units were launched in the same quarter.

In Mumbai Metropolitan Region (MMR) alone, consultants expect 2 million sq ft of launches in the coming festive months with 25-30 big launches planned, having inventory worth Rs 3,750-odd crore. After a long hiatus, the good news is that branded developers are entering the market. Prestige Estates Projects is launching three projects in Mumbai’s Byculla, Mulund and Chembur neighbourhoods, another south-based developer Puravankara plans to launch two, while Oberoi Realty is understood to be launching a project in Thane. Sunteck Realty has also lined up launches in the existing Oshiwara District Centre and Naigaon projects.

Ritesh Mehta, senior director & head (residential services & developer initiatives), western India, JLL told FE that the launch pipeline is particularly looking strong in MMR because developers have taken advantage of government’s concession scheme under which if developers gave upfront amount for all the approvals needed for their projects, they got a 50% concession on the same.

“Last year, developers were selling at a cut-throat price and were undercutting their inventory. So, the money that has got accumulated as a result of higher sales, they have incurred on acquiring approvals for the new projects. This means we will see lot of launches this year,” he said. Also, since all the approvals have been acquired, from the customers’ perspective, the major thing is they would be relieved in terms of the certainty of the projects. Approval costs typically form 20-25% of the project cost, which came down to 12-13% as a result of the concessions.

Most of the launches are expected to be in the ticket size of Rs 1 crore to around Rs 2 crore, with preference for larger houses continuing and developers offering an extra half or one room catering to the new requirement for study or work purposes.

Anuj Puri, chairman, Anarock Group said, “With Covid-19 cases relatively under better control for now and the vaccination drive gaining more acceptable saturation, we anticipate housing demand and supply to see an uptick in the upcoming festive season. While some developers have already increased property prices on account of rising input costs and improved sales traction, many continue to offer deals and discounts”.

However, the element of direct price reduction has disappeared now; and offers and indirect discount being offered are to the tune of 1-3% of property value. Vivek Rathi, director (research) Knight Frank India said, “Most of the discounts now are in form of an extended stamp duty relief to assuage concerns of consumers who have missed the bus on the limited period stamp duty cut in markets like Mumbai and Pune”.

In a reversing trend, the negotiation power of buyers are now diminishing and the market is gradually turning to a sellers market. The discounts and freebies offered by developers will be dismal because they have incurred lot of money in acquiring approvals and land. “Both costs are already incurred and have covered the cash flows and thresholds of last year, so if Rs 10 was the quoted price and they were closing at Rs 7 last year, they are closing at `9 and nothing below that,” Mehta explained. However, the prices have not changed much yet.

Kamal Khetan, chairman and managing director, Sunteck Realty said that while the company is not announcing any discounts or price cuts, it would be launching phase-wise projects in the coming months.

Similarly, in NCR, developers are gearing for a good festive season. Saransh Trehan, director, Trehan Luxury Floors said, “We are launching 300 luxury independent floors at Sector 67 and few other locations in the heart of IT City Gurugram. We are also offering flexi-payment plan for prospective homebuyers. We expect a good response from customers. We are targeting to sell entire 300 units in the next few months riding on pent up and festive demand coupled with very low interest rate on home loan”.

Thane corporation gives nod to proposal for internal metro

The proposal for the internal metro was prepared and tabled in last week's general body meeting of TMC and approved unanimously.

The Thane Municipal Corporation (TMC) has decided to scrap the proposed Light Rail Transit system and instead build a conventional metro line as an internal transportation system for the city.

The proposal for the internal metro was prepared and tabled in last week’s general body meeting of TMC and approved unanimously.

Metro line 4 from Wadala to Kasarvadavli-Gaimukh, which is being constructed by the MMRDA, will connect Thane to Mumbai. The TMC, however, felt that it also needed an internal metro to connect various parts of the city to this metro line.

Subsequently, a DPR of the entire project was prepared by Mahometro. However, the central government instructed TMC to implement a Light Rail Transit (LRT) project as it would be more cost efficient.

The Maharashtra government stalled the LRT proposal, stating that in view of Thane’s burgeoning population, the metro would be a better transportation system as it could carry more passengers than an LRT. The state also said it would not be possible to integrate an LRT system with a metro system.

Based on the state directive, a proposal for the internal metro was prepared and presented in the general body meeting, where it was sanctioned unanimously. The cost of the project is Rs 10,000 crore.

The central and state governments will each provide 16.65 per cent of the funds for the internal metro project, and the remaining funds will have to be made available by TMC with low-interest loans.

MahaRERA sets up citizens' call centre to resolve queries of homebuyers

 The Maharashtra Real Estate Regulatory Authority (MahaRERA) has started a citizens’ call centre or helpdesk to resolve queries of homebuyers related to various services. The toll-free number 1800 2103770 and 022-69157100 will be operational from 7 am to 11 pm on all days, except Sundays and govemment holidays.

MahaRERA Secretary Vasant Prabhu said the helpdesk was initiated, as many citizens had expressed their inability to reach out to the authorities In the wake of the pandemic for various queries.

A team has been appointed to help citizens get their issues resolved by assisting them on how they should file their complaints online or check for the hearing dates or any other query regarding the registration of the project. “General information will be provided by the helpdesk. If there are citizens who want to understand more technical issues, a special technical team will help them,” explained Prabhu.

Ramesh Prabhu, Chairman of the Maharashtra Society Welfare Association, the move would help citizens not familiar with MahaRERA’s operations. “Many of our members have tried calling up the toll-free number and they have found it very effective. This is one of the best moves in the time of the pandemic. Citizens can contact the help desk and check the status of a project before investing in it.”

MahaRERA authorities said the helpdesk would also help people file complaints under guidance of staffers on call.

Manjunath Kakkalameli, an advocate practising in the High Court, told TOI that while virtual hearings were being conducted at the time of the pandemic, the helpdesk would assist the complainants.

Section (3) of the Real Estate (Regulation and Development) Act, 2016, mandates the authorities to operationalise a web-based online system for submitting applications for registration of projects.

Vastu tips for office, to bring prosperity at work

 People often try to make sure that their offices adhere to Vastu Shastra guidelines, to usher in luck and fortune. From maintaining cash flow to business stability, it is believed that Vastu can play a role in everything that you do in the office. In fact, if properly followed, Vastu can also bring financial prosperity and holistic well-being at your workplace. To help you with this, we delve into some important Vastu guidelines that you can follow at your office.

Vastu tips for seating arrangement

Department-wise seating arrangement

• Entrepreneurs should sit facing the north, east or north-east, as these directions are said to encourage growth and new beginnings.
• People who are in marketing or sales, should face the north-east direction, to ensure proactiveness. They can also sit in a north-west direction.
• Account department officials should sit in the south-eastern corner and should face the north-east direction.

Seating arrangement for managers and owners

• People in leadership roles, should have a cabin in the west direction and face the north-east direction.
• Business owners should sit facing the east or north directions. Also, there should be a solid wall behind the seat and not a wooden divider or curtain.
• Managers, directors and executives should sit in the south-west, south or west corner of the office. This will help the workforce take better decisions.

Employee seating arrangement

• Employees must face the north or east while working in the office, as it improves productivity. Employees should not sit directly under a light beam. If it is unavoidable, then, it can be covered with a wooden board.

Vastu tips for office entrance

• The entrance of the office should be in the north or north-east or north-west direction.
• These directions are considered to be auspicious and brings positivity.
• North direction is also known as the direction of the lord of wealth. It will help you in accelerating financial profits, as well.

Vastu tips for office décor and interiors

According to Vastu guidelines, the north direction is ruled by the god of wealth while the north-east direction is indicative of a person’s financial health. You can keep a mirror or Kuber Yantra in the north direction or on the northern wall of the office, to ensure good financial health.

• Avoid piling up of finished goods in the north-east direction, especially in front of the office desk. You can place these goods in the north-west direction, to ensure smooth clearance of unsold stock.
• Place your safe in the south-west corner of the office, to keep financial documents. The safe should face the north-eastern direction, to ensure prosperity.

Vastu tips for the reception at the workplace

• The reception of any office should be built in the north-east or east direction.
• The receptionist must be seated facing north or east.
• The logo or the company profile should be on the southern wall of the reception area. Vastu also says that the reception table should be placed diagonally to the front door of the office.
• French lavender flowers or green jade flowers can be kept at the reception area. You can also keep a four leaf clover plant at the entrance.

Vastu tips for pantry/canteen area at the workplace

• The pantry should be constructed in the south-east direction.
• At any cost, it should not be located in the north.
• The walls of the pantry can have colours like light blue or green and plants can also be kept in the pantry.

Vastu tips for washrooms at the workplace

• Washrooms are considered to have bad or negative energy. So, it is very important to get the placement of the washroom right
• The washroom should be in the west or north-west direction.
• Washrooms should never be in the east, north-east or south-east directions.

Vastu tips for staircase at the workplace

• The staircase can be constructed in the south or south-west direction.
• There should be no staircase in the centre of the office, as this can lead to financial drain.
• Plants can be kept on the corners of each step.

Vastu tips for installing elevators/lifts

• According to Vastu experts, elevators in an office, should be installed in the north or east directions, while the north-east and south-west directions should be avoided at all costs.
• Do not install lifts exactly in front of the main entrance as it will flush out the positive energy from the space.
• Avoid mirrors on the left as it is not suitable as per Vastu Shastra.

Vastu tips for your office desk and cabin

• Place a mountain scenery in your cabin, behind the chair.
• You can also place a turquoise pyramid on the desk, for better relations with your employees and peers.
• Keep your desk clean and clutter-free.
• Do not let unimportant documents pile up on your desk.
• Keep papers and books locked away.
• Throw away broken stationery as it acts as an obstacle to financial prosperity.

Vastu tips for choosing wall colours for the office

Always use bright colours for the wall paint and décor, as it spreads positivity, reflects light and keeps negative vibes at bay. Here is a colour guide for your office:

• Blue: This colour makes the overall aura cheerful and full of positive vibes. You can use this colour for the southern wall.
• Green: Use different shades of green colour as it is beneficial for professional relationships. Paint the south-western wall in a green colour, to promote harmony in the office culture.
• White: Use different shades of white, cream and yellow in south-east, east, north-east and north-west corners and walls.
• Red and pink: Usually, office interiors are not painted in red and pink tones but if you want, you can use these colours on the southern walls.

Vastu tips for placing plants in the office

If you want to add a some greenery to your office, consider keeping bamboo plants, jade plants or snake plants on your office desk. You can also keep Areca palm plants, money plant, or dracaena plant, as it brings good luck and prosperity.

Vastu tips for conference/meeting rooms

According to Vastu, the best direction to have a conference or meeting room, is the north-west. This direction is also suggested for marketing and sales staff, as they require motivation for improving their performance. You can also plan a waiting room in this area.

Vastu tips for choosing office furniture

• For north-facing workstations, things like files, documents and electronic appliances like computers, must be kept on the left side of the table.
• East-facing workstations should have the storage space on the right-hand side.
• Workstations or desks must never be L-shaped or any other irregular shape as it may create confusion and delays in the delivery of work.
• Never eat food at the workstation or desk, as it shows disrespect to work.
• Business owners, especially entrepreneurs, must ensure that their desk is rectangular or square-shaped and made with a superior grade of wood. Avoid tables with glass tops or metal tables, as these are not considered lucky for any growing businesses.

Vastu tips for home office

Since work from home has become the new normal, here are some Vastu tips to ensure your workspace at home has a balanced environment and promotes productivity:

• Set up your desk/home office in the west or south-west direction. Your position during work must be towards the north-east.
• If you have a separate space that can be converted into an office, opt for neutral colours. You can also choose light gold, as it ensures productivity and profits.
• The work chair should be comfortable, spacious and up to the head of the person sitting on it.
• The drawers should be in the west or south-west section of the desk.

Common Vastu defects and their remedies

• Having the master cabin located in the north-east or south-east, is a major Vastu defect. As a remedy, place a natural crystal rock in the south-west corner of the main cabin.
• The main entrance of the office should be free from any kind of obstacle and the environment should be bright and emit fragrance. However, there could be a pillar or a tree at the front entrance. You can place a basil plant between the pillar and the main door. This will add some greenery to space and make the entrance look welcoming.
• You can place a bright painting in the office’s east direction, to weed out negativity from your office premises. This will also boost the productivity of your employees.
• If your office has a floor sloping towards south-east or west, you can place a lead metal or copper pyramid on the sloping side. You can also place three triangular coral stones if the slope is towards the south-east.
• If your office has a pantry or toilet in the centre of the premises, keep Vastu salt in a wooden bowl and replace it every week.
• For offices which have extended corners in the north-west, south-east, or south-west direction, you can keep aromatic plants in the window in the north-west corner. Apart from this, putting wind chimes with six pipes in the window in the north-west, can also be beneficial. You can also use the extended area as a storeroom .

A quick guide to choosing between a ready-to-move-in and under-construction house

 The Coronavirus pandemic has made people realise the importance of owning a home, rather than living on rent. Owning a house is associated with a sense of security and safety in such uncertain times. However, when it comes to buying a house, should a property seeker choose a ready-to-move-in house or an under-construction one? We explain the crucial differences between the two, to help you arrive at a decision

The COVID-19 pandemic has made one realise the value of real estate as an asset class, which is more reliable, as compared to the volatile and risky stock market. Moreover, interest rates have reduced, making it favourable for people who are looking to take home loans .Besides this, many developers are offering discounts and this lures the potential home buyer as he can strike a better deal.

While buying a property is no easy task, another decision that compounds the dilemma for home buyers, is whether to choose a ready-to-move-in house or an under-construction one. While there are advantages and disadvantages to both options, the choice will depend on various aspects like, what the buyer is looking for, his needs/requirements an whether one is buying for investment or end-use.

With the pandemic and work from home (WFH) becoming more prevalent, aspiring home buyers are largely favouring ready-to-move-in homes, as people find it much safer under the present circumstances. According to Amit B Wadhwani, managing director of Sai Estate Consultants, buying an under-construction property makes sense, if one is looking at it from an investment perspective, while a ready-to-move house makes more sense, if the buyer is looking for accommodation. “As the buyer is also spending his earnings on the property, it should bring profit. The investment should help the buyer in the long run, wherein, he can sell the property, if need be,” adds Wadhwani.

Points to consider, while choosing a ready-to-move-in property

Choosing a ready-to-move-in flat, helps the buyer to avoid costs associated with living in a rental accommodation and the long wait in big cities, for an under-construction project to be completed. It also gives the home buyer a sense of security. Moreover, the buyer can check the neighbours and the infrastructure in the vicinity of the house, before buying the property.

With lockdowns, restrictions on construction and shortage of labourers, construction has been affected. This has led home buyers to choose ready-to-move-in units, fearing delays in under-construction projects. Also state real estate authorities have extended the completion deadlines of under-construction projects. According to the Real Estate Act (RERA), the registration granted for a project can be extended by a year, under the force majeure clause. During such delays, developers are not required to pay compensation for deferment.

Manish Kadam, an assistant account manager in a media agency, who bought a house in Virar, in Mumbai, states that the best part of buying a readymade house, is the absence of a waiting period. “There is a lot of inventory in the real estate sector, which gives the home buyer a broad choice of location, configuration and low risk, as the ready-to-move-in segment has no construction delays. The GST (Goods and Services Tax) is also applicable on under-construction properties. So, even if one books an apartment, where the builder asks for 10 per cent and the balance after possession, one will still have to pay GST on the full amount,” points out Kadam.

Points to consider, while choosing an under-construction property

“Under-construction properties are generally in the non-established parts of the city and hence, the potential for price appreciation due to future development is good. However, this is not true in each and every case. One has to look at the location and future plans around that area. Moreover, in an under-construction project, a buyer also has flexibility in payments, with options like construction-linked plans, subvention schemes, flexible payment plans, etc.,” states Wadhwani.

The implementation of the Real Estate (Regulation and Development) Act (RERA) and other buyer-friendly policies, aimed at bringing about greater transparency and compliance from developers, could boost home buyers’ confidence in investing in under-construction projects. However, in places where the RERA is not yet implemented, it is must for a home buyer to check the credentials of the developer and choose a reputed builder.

If an under-construction property is bought after selling another property, the construction of the new property has to be completed within three years from the sale of the old property. Otherwise, one has to pay 20% tax along with the payment of cess and surcharge on the profit earned on the sale of the property, as long term capital gains (LTCG) tax.

Tax exemption on the capital gains is allowed from the sale of a property held for more than 24 months, if the sum is reinvested in a property within 24 months or if it is invested in a house purchased 12 months before the sale of the asset or used to construct a house within 36 months. If the developer delays the possession, the owner may have to pay a huge amount as ‘capital gains tax’.

Ready-to-move-in versus under-construction property

Parameter	Ready-to-move-in property	Under-construction property
Formalities	A lot of legal work and documentation required, because of transfer of title.	Relatively lesser documentation because there are no previous owners.
Payment	No stages of construction and hence, the buyer needs to have the finances arranged.	The buyer has more time in hand to spread the payment, registration charges, stamp duty, etc.
Level of risk	Higher chances of getting cheated as the property may be sold to more than one buyer. Buyer’s due diligence is very important.	Relatively simpler to buy an under-construction property. Due diligence is still required.
Property prices	Usually expensive, because the socio-physical infrastructure is relatively more developed.	Cheaper entry costs but usually depends upon the location.
Impact on your finance	You would be free of paying rent and other expenses undertaken on site visits.	If you are living on rent, the burden of EMIs will also be added.
Neighbourhood	You will know who your neighbours are and what to expect when you invest in the particular project.	Many surprises may await you and you will get to know only after living in the property.
Ease of selling	Ready-to-move-in properties can be sold, if one wishes to, after some months or years.	It is difficult to sell an under-construction property, if the possession is delayed due to some issue.
Source of income	Ready-to-move-in houses can be given on rent and one can earn income immediately. This can be used for paying the home loan EMI.	One has to wait till the house is constructed, to give it on rent and any delay can cause stress and affect one’s finances.

Points to keel in mind, when investing in a ready-to-move-in or an under-construction house

• Ascertain the total budget for purchasing the property and ensure that your finances are in place, in advance.
• The property should have all the necessary approvals and licences.
• All information pertaining to the other parties associated with the project (such as banks, advisories, etc.) should be obtained, to undertand the project’s feasibility and quality.
• The desired location should be selected, based on your regular commute requirements.
• Buyers should check online and on social media, for reviews on the project, developer and locality.