February 2017 Vol 02
Govt to give Tax benefit to first-time Homebuyers
The government will give a benefit of Rs 2.4 lakh to firsttime home buyers with taxable income below Rs.18 lakh a year, which would be a game changer for the sector, Housing and Urban Poverty Alleviation Secretary Nandita Chatterjee said.The secretary said the scheme is expected to be notified shortly and will be effective from January 1, 2017.
The amount is equivalent to the total interest subsidy over a 20-year loan and will be given upfront to the housing financing company, through nodal agencies such as National Housing Bank and Hudco to reduce the outstanding loan.For a 15-year loan, the value of the benefit would be Rs 2.2 lakh.
Advantages of Ready-to-move-in Homes
Property buyers, especially end-users across metros, tier I and tier II cities, still prefer ready-to-move-in homes to those that are under-construction. A number of benefits accrue from buying them apart from financial benefits. Some of the other major factors that make them more attractive include the following.Immediate availability: Buyers do not have to wait for years to move in to their new home as it is ready as well as in proper condition. The only required thing that the buyer has to do is to make payment, sign necessary documents, especially those related to stamp duty and registration, and get their baggage and goods transported to the new place.
In Realty, warehousing and retail catch PE firms’ fancy
Apart from the preferred asset classes of office and residential, private equity firms have been taking greater interest in warehousing, logistics and retail real estate. Private equity investors and overseas developers are already looking at opportunities to enter India’s industrial and warehousing sector by investing in various development projects.Foreign investors, including those from China, Japan and Korea, have specifically shown a lot of interest in industrial development projects in the backdrop of implementation of Goods & Services Tax.
`Homebuyers can move NCDRC against Builders via Associations’
In a ruling that would help reduce multiplicity of cases for state and national consumer forums, the Supreme Court has said homebuyers have every right to file complaints against builders in National Consumer Disputes Redressal Commission (NCDRC) through associations.
Dismissing multiple appeals by an Amrapali Group firm challenging the right of a registered consumer association to file a complaint in NCDRC on behalf of multiple buyers of Amrapali Sapphire project in Noida, the apex court observed that it is the grievances of homebuyers that needs to be looked into.
Practice what you Preach
As a matter of fact, the emerging professional practices indicate that the year 2017 is promising to be the year for best practices in Mumbai’s real estate market. It is not only the eventual presence of a real estate regulator that is compelling developers to change the business practices and professional conduct, but also emerging market realities that are making the developers understand the advantages of compliance, process driven methods and consumer connect today.
The developers are left with no choice but to take lessons from streamlined markets abroad and introduce comprehensive disclosure norms. For instance, home-buyers at USA are entitled to receive a number of disclosures during the course of the house purchase. These disclosures give a homebuyer a transparent and fair picture of what he/she is getting into.In the Indian context, it seems that Mumbai’s developers are taking the lead in professionalising the business and hence, Mumbai’s real estate market is today striving to create an eco system. This will definitely change the outlook of the buyers towards the sector and its practices.
Affordable housing gets prominence
Affordable housing is the key to the real estate growth in Mumbai.Purchasing even a small 1BHK house in the city like Mumbai gives a huge pride to the buyer. Considering this and knowing that it is the ideal segment to attract potential first-home buyers, most developers today are giving priority to the completion of affordable housing projects.
Wadala-Thane metro line clears CRZ hurdle
The state coastal zone authority has granted the clearance for the elevated metro line between Wadala and Thane, forwarding the file to the central and state environment agencies for final approval.Mumbai Metropolitan Region Development Authority (MMRDA) will implement project, which officials expected to complete by 2021.The proposed elevated line promises to ease the gruelling commute between Mumbai and Thane.
‘Mumbai richest Indian city with $820-bn wealth’
India’s financial capital Mumbai, which is home to 46,000 millionaires and 28 billionaires, is the richest Indian city with a total wealth of $820 billion, says a report by New World Wealth.Mumbai is followed by Delhi and Bengaluru in the second and third place, respectively. In Mumbai localities like Bandra, Juhu, Goregaon, Parel, Worli, Palm Beach Road were named as the richest.In Delhi, Westend Greens, DeraMandi, Greater Kailash, Lutyens were listed as the richest.
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