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Profitable expansion?
With the National Capital Region Planning Board giving a nod to the inclusion of three more districts — two from Haryana (Bhiwani and Mahendragarh) and one from Rajasthan (Bharatpur) to NCR earlier this week, the realty scene is agog with anticipation.
relaxation of floor norms
in delhi
Residential prices subdued across major cities
realty bites
tax tips
Green house
vaastu wisdom
Loan
zone
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Profitable expansion?
While the NCR tag is nothing less than a ‘golden’frame for any area realtors and experts are taking this developement with a pinch of salt. Anil Kumar Sharma, President, CREDAI-NCR, says, “Merely adding these areas to NCR will not serve the purpose unless infrastructure is developed in a rapid and planned manner. The decision should be followed up with preparation and implementation of master plan as soon as possible otherwise builders will start accumulating land, leading to speculative price rise.” “I believe the government should first concentrate on the current NCR areas. A lot of infrastructural development is needed in places such as Bulandshahar, Bhagpat, Bhiwadi, Manesar etc. I would have been happy if the NCRPB had announced some development plans for these regions,” says Sumit Berry, MD, BDI Group. Inclusion in the NCR means funding for infra projects for these districts at rates as less as 7 to 8 per cent from NCRPB, which should ideally give a boost to development projects. But a look at the infrastructural development in areas like Bulandshahar, Hapur, Bhagpat and even Merrut in spite of being on the NCR map for several years is nothing much to be elated about. Bhiwani and Mahendragarh are not among the developed districts of Haryana and it will be a long haul for these areas to be at par with their glamorous ‘cousin’ Gurgaon. While the real makeover of these districts is still a distant dream, speculators have already become active here after the announcement of NCRPB four days ago. Bhiwani-based real estate broker Santosh Chaudhary informed that the
prices of land had seen some upward movement over the past week. “Currently the prices are in the range of~8,000 to ~9,500 per sq yd but these are going to increase by 10 to 15 per cent in the next few months as developers will try to build a land bank here”. With Mahendragarh and Bhiwani, Haryana now has almost 10 districts out of 20 as NCR sub regions. These two districts might see more hectic activity in realty sector as these fall in the Delhi-Mumbai Industrial Corridor. Bharatpur, on the other hand may see an influx of holiday homes as it is a tourist attraction. “In order to maintain an equal growth momemtum all over NCR there is urgent need to connect various areas of NCR through multiple mode of transport, including Regional Rapid Transit System,” says Sharma while making a note of emphasis by the ministry on Regional Rapid Transit System (RRTS). Skepticism apart, realtors have welcomed the move as it will ease the burden on the existing infrastructure in NCR besides opening up more avenues for affordable housing. R K Arora, CMD, Supertech Limited, opines, “Expanding the boundaries of NCR is definitely a welcome step and if right infrastructure is developed, it could be a push in the right direction. However, the required infrastructure is yet to be developed in the existing areas of NCR as a result of which there are regular traffic jams, pollution, pressure on utilities, flood in the rainy season, and unplanned development. At present metros and their satellite towns are facing scarcity of space with high property prices therefore the development of new areas will help in de-congestion. The proposal for bringing in Regional Rapid Transit System will help in reducing the travel time as well as connectivity between NCR towns leading to more job and business opportunities. At the same time these regions will also witness a remarkable growth and development”. As per The latest figures, Delhi-NCR houses 21 million people. In 2025, says the UN State of The World's Cities report, the number will grow to 28.6 million. Further, as per a study, NCR is expected to witness the highest demand across mid and high-end segments at 381,000 units during 2012 - 2016. With land in short supply, the Government of India with the active support of concerned states has taken a futuristic step to fill in the gap in demand and supply of land in the region for housing and other needs. At the same time, we hope this decision will be followed up with swift
implementation. Expansion in terms of area Bhiwani 5,099 sq km, Useful agriculture land: 411976 lakh hectare Mahendragarh 1859 sq km Useful agriculture land: 280380 hectare Bharatpur 5066 sq km Areas in NCR before this week’s expansion decision National Capital Territory of Delhi (NCT-Delhi) Haryana sub-region Faridabad; Gurgaon; Rohtak; Sonipat; Rewari; Jhajjar; Mewat and Panipat Rajasthan Sub-region Alwar district; Uttar Pradesh sub-region Meerut; Ghaziabad; Noida & Greater Noida; Bulandshahar; Baghpat and Hapur
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relaxation of floor norms
in delhi
Not as simple as it seems Municipal corporations will have to examine structural safety and compliance of building bylaws while giving approval for construction of the third floor. They will need to look into aspects such as structural safety, fire safety, non-obstruction of passages and air and sunshine for neighbours and neighbouring buildings before approving any building plans. Also, adequate parking norms will need to be followed to get clearance. As a matter of fact, there are quite a few complications that need to be resolved to be able to effectively implement the order. As of now, the three owners of ground, first and second floors share one-third land rights. If an additional floor is to be constructed, then the other floor-owners have to forfeit their land right, which will go down from 33 per cent to 25 per cent. Moreover, if it is possible to build within the 300 FAR in any house up from 200, the other floor-owners will claim 33 per cent right on the extra 100, while the second floor owners would claim it as theirs. In other words, there will certainly be legal issues that need to be addressed. It also seems evident that there will be a need to increase the existing infrastructure due to this move, since it will have to cater to increased population. Water, electricity and all other necessary supply systems would have to be massively ramped up in order to cater to increased demand. In short, this directive, if not complemented with other necessary changes in the existing laws, and if not implemented with the right intent and spirit, will do no significant good in reality. On the positive side That said, this move will not essentially result in any major influx of new population to put the existing facilities under stress. Rather, it would primarily mean creation of more housing opportunities for those already living in an area. This means that no significant additional changes will need to be made to the existing colonies. Currently in Delhi, property prices are exorbitantly high and thus are out of reach of middle-class end consumer. This move will help to put a check on the already sky-high prices. As housing options will, to a certain extent, become more affordable, the working class population will be able to address their dream of owning a home in Delhi more realistically. With the acute scarcity of land in Delhi, there is very limited scope of horizontal expansion — and thus, vertical growth remains the only viable option. The move to allow building of an additional floor will increase usable FAR resulting in more efficient utilisation of land. Also, since we have already seen many such constructions taking place even in the absence of a corresponding documented policy, formal guidelines will give legitimacy to all such constructions, make the process smoother and help do away with involved corrupt practices. As far as the right way to go about this is concerned, the implementation of this move should be accompanied with the necessary changes in bylaws. Merely abolishing NOCs as an appeasement strategy is not recommended. To be able to implement this action with a view to the desired results, all involved complications and challenges also need to be proactively addressed. — The writer is CEO (Operations), Jones Lang LaSalle India
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Residential prices subdued across major cities
It is believed that the affordable category, primarily the sub Rs 20 lakh budget range is performing much better across major cities in India in comparison with the budget range of Rs 50 lakh and above. Reasons for this change in the overall economic conditions are noticeable. The strict monetary regulations due to high inflation, RBI not releasing funds easily making home loans difficult to get, impending elections and property prices reaching peak levels by the end of last year have propelled this turn around. As per our data, the searches on the site under the Rs 25 lakh budget category were the maximum, standing at 41 per cent during the July to December 2012 period. Second most popular category is Rs 25-50 lakh budget range, with 29 per cent users searching in this type. The Rs 50-75 lakh budget range came in third in the search statistics, as per the site. Statistics reveal that Delhi has seen a consecutive fall in the last two quarters in average residential capital values. Prices fell by 10 per cent from Q4 2012 in CY 2012 to Q1 2013 and by 15 per cent in Q2 2013 from the previous quarter. NCR, on the other hand, witnessed a marginal 1 per cent rise in Q1 2013 compared to Q4 2012 and 3 per cent increase in Q2 2013 from the previous quarter. In Mumbai, the first quarter of this year was still better but Q2 saw a drop of 4.4 per cent to Rs 13,867 per sq ft in average capital values compared to Rs 14,516 per sq ft. Chennai witnessed a bounce back in capital values in Q2 2013 after seeing a drop of 12 per cent in Q1 2013 from Q4 2012. Bangalore witnessed a negligible rise in average capital values in Q2 2013 to Rs 4,300 per sq ft from Rs 4,333 per sq ft in the first quarter. Mumbai and Chennai Mumbai and Chennai have seen a 20-40 per cent slowdown in transactions in the past 2 months. The market has performed well in these two cities from affordability point of view; however, the housing above Rs 50 lakh budget range has taken a hit. The frontrunners in price rise in Mumbai are limited to On the other hand, areas like Lower Parel, Powai, Malad and Andheri have seen subdued price levels as there is an abundance of supply and no matching demand. Delhi NCR In the case of Delhi, price levels across Delhi/NCR have remained stable, but the rate of increase might not have been as high as last year. Transactions, too, have witnessed a slowdown as compared to last year. Throughout 2013, property market across NCR is expected to be stable. The beginning of 2014 might witness a turnaround. Bengaluru Bengaluru market has performed steadily in the first two quarters of the year but not better than the last two quarters of 2012. North and East Bengaluru have benefited the most as the demand and price rise is witnessing an upward trend here. The holiday season last quarter and high price levels at the beginning of the year have dampened consumer sentiment for now. The last two years have been good in terms of prices and transactions, and this year is likely to bear the impact of the high that the market has enjoyed in the form of uniform or subdued price levels. — The writer is Business Head, 99acres.com Fact sheet
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realty bites
WAVE Infratech has tied up with State Bank of India (SBI) for providing funding for its 4,500-acre integrated city project WAVE City in Ghaziabad. It the seventh bank to fund Wave City projects, currently, HDFC, ICICI, AXIS, Bank Of India, India Bulls and DHFL are providing housing loans for Wave City Projects.
This approval would enable the Wave City customers who have booked a flat/floor/plot in the project to apply for a loan to State Bank of India. The loan would be disbursed to the eligible applicants under the construction linked plan. Wave City had recently launched its first affordable housing project ‘Dream Homes’ which received overwhelming response from customers. This new announcement would help in providing economical and tension free housing loans at Wave City, NH 24, Ghaziabad. “We are extremely happy to have SBI in our panel of bankers providing housing loans to our customers at Wave City. We are sure that this tie up would be extremely beneficial to all our customers,” Sunil Tandon, President, Wave City said on the occasion. Subvention scheme on ready-to-move-in flats KDP Infrastructure Pvt. Ltd is offering a new scheme to customers for its Rajnagar Extension, Ghaziabad-based project ‘Grand Savanna’. Under the scheme, possession of ready-to-move-in flats will be available at the payment of 20 per cent of cost. For the next one-and-a-half years, the company will pay EMIs on behalf of buyer. The company officials claimed that it is first time that a part-payment offer is available for ready-to-move-in property. KDP Grand Savanna offers 2-3-BHK flats at Rs 3600 per sq. feet (all inclusive) plus taxes. All aspiring buyers can walk-in and avail the offer anytime by paying 20 per cent amount of the cost of a flat and get possession immediately after completing documentation formalities on the spot. For the rest 80 per cent of the cost, the buyer may feel relieved for the next one-and-a-half years as the company will bear the cost of EMIs. The offer is valid till August 7, 2013. Property carnival at Gaur City Gaursons India Ltd celebrated the successful completion of its ‘60 days 60 Cars Property Carnival’. At an event organised at Gaur City, the winner of the Bumper Draw was announced. Ajeet Kumar Vibhuti, who has booked flat in Sanskriti Vihar, Gaur City received the prize money of Rs 1 crore from Ms Manju Gaur, Director, Gaursons India Ltd. During the carnival company registered a business of Rs 300 crore. During the carnival buyers booked 700 flats. A 2 BHK unit in different units is priced from ~32 lakh onwards, 3 BHK is available for ~45 lakh onwards and 4 BHK for ~70 lakh onwards. Spanish fiesta at La Montana Tata Housing Development Company Limited, will be organising an experiential campaign - 'Spain to Spain - till July 31. This Spanish culture-based campaign has been initiated for the group's award winning-project, La Montana near Talegaon, Pune, a Mediterranean themed development which offers 2 BHK apartments of 1053 sq.ft. The project offers more than 850 apartments with ultra-modern amenities such as a school, health care facilities, retail shops and state-of-the-art clubhouse, fully equipped modern gymnasium with steam and sauna, jacuzzi, banquet hall and much more. K V Developers tie up with Colliers International K V Developers Pvt. Ltd (KVD) – a Noida-based real estate developer coming up with a futuristic housing project in Tech Zone IV, Greater Noida (West) – has tied up with two of the biggest names in real estate development, Colliers International and C P Kukreja Associates. While Colliers International is one of the world’s leading Project Management Consultants and a global leader in commercial real estate services, C P Kukreja Associates is a world-renowned, multi-disciplinary ISO Certified Architecture & Engineering firm. Elaborating on their collaboration with the two industry icons, Aman Agarwal, Director, K V Developers, commented: “We have collaborated with Colliers International for their peerless project management consultancy experience and with C P Kukreja Associates — rated India’s best architects in residential buildings by CRISIL and CNBC, and undoubtedly one of the top 100 architecture firms worldwide.” Located in Tech Zone IV, Greater Noida (West), the project covering approximately five acres will have six towers comprising 2, 3 and 3+servant apartments in approximately 950 to 1,500 sq ft. size
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tax tips I would like to know if I can show the entire rent received during the previous year (Rs1,80,000) in my income tax return only. —girish sachdeva A.You have stated in the query that the house is jointly owned by yourself and your wife. However, you have not indicated the source of funds invested in the acquisition/construction of the house. In case your wife has also contributed towards the acquisition/construction of the house, then it may not be possible to show the entire income of Rs 15,000 per month in your tax return. Assuming that the entire cost of acquisition/construction was met by you, it will be possible for you to include the amount of Rs 1,80,000 as rental income in your tax return.
No tax rebate on selling a plot
A.It seems you intend selling the plot purchased by you in HUDA colony and utilising the sale proceeds for buying a plot in a builder/private colony. Assuming that your query is on the above lines, you will not be able to save the tax leviable on capital gain arising on sale of plot in HUDA residential colony. You can save tax only if you utilise the net consideration (sale consideration less expenses incurred in connection with the sale) for the purchase or construction of a residential house within the specified period.
How can I save tax on selling agricultural land?
A.Reply to your queries is based on the presumption that agricultural land has been held for more than three years.
A.Your queries are replied hereunder:
What will be the indexed cost of plot bought in 2004?
A.Your queries are replied hereunder:-
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Green house A good home landscape serves the dual purpose of beauty and functionality. It helps to enhance the aesthetics and solve privacy concerns of home owners. Moreover, a careful selection, placement and plantation of trees and shrubs also reduce energy costs. A right choice of plants can deflect chilly winds away from a house and provide shade and natural cooling during the summer months. However, creating the perfect combination of nature and construction can be a challenging task. Step back to consider the entire landscape in terms of four important elements — balance, texture, colour and height. Add colour To add beauty to the landscape, make use of flowering trees and shrubs. Trees can either be planted on the border or in different parts of the garden. Shrubs that bear flowers can also be used to make the yard look more appealing. Seasonal colours make the landscape pop as well. Go for a splash of several colours or a more monochromatic scheme, whatever fits in with the look of your home. Choose plants with unique textured and differently shaped leaves for a dramatic look. Water feature Incorporate a small pond or a waterfall surrounded by decorative stones and plants. It can also be lit up with multi-coloured lights to give an impressive look at night. Patios and walkways A well-designed patio and walkway lends itself to the overall beauty of a landscape. Patios provide for an outdoor space where one can set up outdoor furniture or grill. Bricks and concrete pavers are the traditional choice for patios Walkways create an inviting entry into the home along with providing a hard level surface to navigate the garden. Outline these by growing colourful flowers, shrubs and strips of grass on the border to break the concrete effect. Make sure that the walkway is wide enough for at least two people to walk together. Accessories Apart from trees and plants, accessories are also an important aspect of landscaping. Decorative stones, sculptures or bird baths can turn any vacant yard into a breath-taking space. Furniture like a garden bench or an outdoor sofa looks nice and is functional also. However, prior to making the selection carefully consider the size of the garden. Extremely large accessories can make a small yard look crowded whereas pint-sized ones will get lost in a large garden. Most importantly refrain from going overboard with the accessories. Maintenance All the effort put into creating a breathtaking landscape can go waste in the absence of proper maintenance. Make sure to spruce up your yard at regular intervals to retain its beauty and design. Shape unsightly or overgrown trees and shrubs regardless of the season. Take care of irrigation issues like a leaking faucet on priority. Clean up the water features by getting rid of any visible algae, removing leaves and cleaning the filters. Make grimy surfaces look fresh by washing paved areas including the walkways. — The writer is working for Emaar MGF
Know your garden One of the most common mistake made by homeowners is not having a coherent plan for landscaping. The first step towards creating an ideal landscape is to know what you really want. Consider the colour scheme, type of plants and layout of your garden in terms of face and size of the plot. Also take into account the trees and plants that already exist and those that you may want to retain. Next, incorporate permanent structures like walkways, pools and driveway into the plan. Most importantly scrutinise every detail of the yard before rushing to buy the material and fixtures.
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vaastu wisdom
A. Spiral staircases are usually made of iron or steel, though these look attractive, these should be avoided at all costs as having these can usher in a lot of problems for inhabitants of a house. There are certain Vaastu considerations regarding placement of stairs that one should keep in mind. These include: You should not have internal stairs in the corner or the centre of the house. Staircases should always be in the south corner of the house but never in the north-east. North-west and South-East corners are also acceptable. Stairs must always have an odd number and the number must never end with a zero. Staircases must always be painted in light colours and shades but red and black should be avoided. The room which has a spiral staircase in the southwest corner of a basement is not auspicious. People living such room experience high blood pressure, undiagnosed diseases, anemia and the like. You should not have a store or puja room, kitchen, toilet under the stairs. It is not considered a wise decision as whenever someone uses the stairs, the person using the room gets disturbed. The life of persons living in such houses, too, revolves like spiral. However, external spiral iron stairs to have excess to top roof for supervising water tanks etc .can be fixed.
Colours in bathroom Q.Which are the right colours to be used in a bathroom? — ram pal A.Avoid red and black paints in the bathrooms and toilets. Avoid marble flooring . Non-skid tiles of white, off white, pastel grey, pista green shades should be preferred.
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Loan
zone
A.NRIs can buy properties in India and avail housing loans from banks for residential properties. They can purchase an under-construction house as as well a house in resale. They can even take loan for self-construction of a residential property on a plot in India. Not only this, they can also get finance for purchasing a plot allotted by a society/development authority or even to renovate/improve an existing residential property in India. Like resident Indians, NRIs, too, can avail up to 80- 85 per cent (depending on the flat value) of the cost of residential property as a home loan. But the down payment should be made from direct remittances from abroad through normal banking channels or from non resident external ( NRE) account and/or Non resident (ordinary) (NRO) account in India. Even the EMI payment should be remitted to the lending bank or HFC from any of these accounts. Pre-requisites However, in case of an NRI, the banks generally lay stress on certain pre-requisites like qualifications, current job profile, past experience, probability of continuing abroad for the loan tenure and probability of servicing the loan with an extended tenure in case of return to India. The Loan To Value (LTV) ratio for NRI customers varies from one bank to another, though the manner of calculation is the same in case of a regular home loan. Income proof The income taken into account for calculating the home loan eligibility is the repatriable income plus any income in India. For NRIs working in countries that restrict repatriation like in certain African countries, only the repatriable portion of the income is considered for calculating loan eligibility. Tenure Though the regular home loan tenures can be up to 30 years, loan tenure for NRIs is normally 10 to 15 years due to their better affordability. Documents Along with the routine documents required for a home loan, some additional documents are also required to be submitted along with the application form for a NRI home loan. Repayment Repayment of home loans for NRIs is permissible through specific sources: It is important that an NRI provides General Power of Attorney (POA) in favour of a local and trustworthy relative as per the draft of the Bank which should be duly attested by the Indian consulate in the country of his residence. In case the loan borrower is in India, the POA can be locally notarized. Most banks require the POA to ease the process of dealing with the NRI lender. The POA holder only gets the powers that you give and does not have the power of dealing with the property. Like resident Indians there are certain tax benefits too for NRIs on interest payments which can be useful if they have any income chargeable to tax in India. Finally, if as an NRI you want to pre-close the home loan due to availability of surplus funds or due to switching lenders, loan pre-payment penalty will be charged by the bank.
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With the National Capital Region Planning Board giving a nod to the inclusion of three more districts — two from Haryana (Bhiwani and Mahendragarh) and one from Rajasthan (Bharatpur) to NCR earlier this week, the realty scene is agog with anticipation.
Analysts also point out the fact that a lot of vacant land is still available in other areas of NCR such as Noida, Greater Noida, Faridabad, Gurgaon, Manesar, Bhiwadi, Kundli etc. “As of now people are yet to move into these places. A lot of investors have invested in these regions but the actual buyer has not come in. For example some of the newer areas in Gurgaon have a lot of investors and speculation has led to high prices being quoted, and as a result the end user is not coming forth to buy property here. The investors, too, have a limited holding power and this price bubble is sure to burst sometime soon,” says Harsh Trehan, CMD, Trehan Home Developers while expressing fear that the announcement of the inclusion of these three districts might lead to a price bubble there too, which may not be a good sign for the real estate market on the whole. He further adds, “The point is when end-user is not going to the existing areas that have seen some development already, why will they go to newer areas recently added to the NCR map.” 
The government has relaxed norms for construction of additional floors in residential flats having multiple ownerships, aiming to weed out corruption and help people get their building plans sanctioned without hassles. As per a new directive, people having right over third floor will no longer require to obtain a no-objection certificate (NOC) from the other floor owners for the construction of a third floor.
A question that has been on the mind of many: Have real estate prices across major cities in India reached subdued levels? Internal data and some people from the industry highlight that prices in Delhi NCR, Mumbai, Chennai and Bangalore have either witnessed a slowdown or have remained unchanged during the first two quarters of calendar year (CY) 2013.
Q.My is regarding the rental income earned from house. My house is jointly owned by my wife and me. We have started receiving rent of Rs 15,000 per month from one portion of the house that has been let out.
Q.I have a couple of questions regarding the purchase of a plot:
Q.I am resident of Jalandhar. We have 3 acres of ancestral agricultural land in a village near Hoshiarpur. We intend to sell this land for approximately Rs 2 crore. At present I am not filing income tax return as I do not have any taxable income. My father is a retired government servant and gets pension. I am working as mechanic in a workshop and am getting a salary of Rs 10,000 per month. We would like to invest this amount into bank FDs. Please guide me on the following points:
Q.I have constructed a building that will be used as a hostel for college students. It has 50 rooms. Each room will have two students and the room rent will be Rs 4,000 per month. The hostel is purely for residential purpose renting to college students. Can you please advice regarding the following:
Q.I purchased a plot for Rs 40,000 on July 16, 2004 in Jalgran village in Una district (HP) and sold it for Rs 3,00,000 on March 18, 2013. Kindly advise me on the following points:
No matter how beautiful a home is, it is incomplete without the outdoor space. Landscaping is the art of modifying visible features of open spaces to make these look captivating and intriguing.
A water feature near the front entry or in the garden is a welcome addition to any landscape. Outdoor water bodies are not only beautiful to look at but are also an important part of Vaastu. They create a serene atmosphere by blocking out disturbing noise. Moreover, moving water keeps the bugs away during summers. 
Q.We are constructing a duplex house and the architect has designed a spiral staircase from our drawing room. Some say it is not as per Vaastu norms. Kindly remove our doubt.
— mahesh kumar
Q. My friend who is a Canada-based NRI wants to buy a flat so that his family can shift to Chandigarh. Can an NRI get a home loan in India? Are the terms and conditions any different from those for resident Indians? What are the documents required? What percentage of the property will be funded by the lender? — rajinder singh