September 2018 Vol 01
Building nods: All agencies may hop aboard BMC online system
The government may ask various planning authorities in the city to keep a common interface and use the BMC single-window system to accept and process all building construction applications. The aim is to expedite the approval process and check corruption. The Central ministry of housing and urban affairs had discussed the issue with the BMC and other stakeholders recently. Sources said the Union ministry was keen to have the system and will discuss the issue with the state government and other agencies jointly soon. An official said besides making things easy for the public, the move will help to improve the country’s ranking.
There are five planning authorities in the city: BMC, MMRDA, Mhada, SRA, and MIDC. Two more agencies, the Mumbai Metro Rail Corporation (MMRC) and the Mumbai Port Trust (MbPT), are in process of getting the status of the planning authority. Planning authorities decide on the development of land that falls under their jurisdiction and they depend on the BMC for utilities. Currently, builders submit the construction file to the respective agencies under whose jurisdiction their landfalls. The builders then need to approach the BMC — in case the BMC is not the planning authority for the area where the plot falls — to get NOCs from its drainage, sewage and water department along with the DP remark. Builders also need to approach the collector officer for property card remark for properties in any part of the city. The BMC re-engineered its building proposal software (Auto-DCR) two years after spending Rs 12 crore and integrated it with the collector office and other agencies.
All roads lead to Naigaon
Strategically located between Mira-Bhayandar and Vasai-Virar, Naigaon offers the next big investment opportunity for aspirational home-buyers. Connectivity, infrastructure and easy accessibility are the prime factors for the tremendous growth of this location. Many of the recently launched infrastructure projects can be easily accessed from Naigaon. The government plans to de-clutter Mumbai’s urban sprawl and decentralise growth areas. This has set off a rising demand for places like Naigaon. Considering the importance of connectivity and long travel hours, people will save almost 50 per cent of commute time.
As the next big investment opportunity, Naigaon offers good capital appreciation for investors who are either seeking to buy their first home or are looking at investing in a property with good returns. Naigaon certainly offers a perfect combination of serenity with growth. Availability of abundant land for projects at low rates at Naigaon coupled with the easy access to Thane, Navi Mumbai, Ahmedabad and other business centres in the region and the rapid pace of infrastructure development have contributed to the rising expectations from Naigaon.
Many real estate experts even attribute the locational advantages of Naigaon to the expectations that this region will witness phenomenal growth in the coming years. In the recent past, several well-established real estate developers have started new projects in Naigaon. Known for its ultra-luxury projects in Mumbai, Sunteck Realty has forayed into the aspirational luxury housing segment with its project of over 100 acres in Naigaon. Located just 5 mins away from the Naigaon railway station and 500 metres away from Juichandra railway station, the project is easily accessible via 30-40 metre wide roads. It is an integrated township with worldclass infrastructure and amenities such as shopping, entertainment, supermarket, healthcare and state-of-the-art clubhouse for discerning buyers who are looking at a lifestyle and not just a home.
The Deal is Real
Are you an investor or end-user? Irrespective of the buyer class you belong to, we give you a checklist to refer to before taking the plunge. Louis Glickman had once famously said the best investment on ‘earth’ is earth. Hence, whether one is intending to invest money and diversify one’s asset class or looking to self-occupy – the realty market is still a safe bet on the back of macro-level regulatory developments that have taken place in the last couple of quarters. However, the key to stable growth here would be to identify the purpose of investment and then, accordingly park one’s money.
The Commercial Market: If you are an INVESTOR looking at an income-producing office asset, do not ignore the following factors – Always invest in a property when the market is low, so that land can be acquired at a lower price; An investor must ensure that his property is located near popular social attractions such as cinema multiplexes, restaurants or commercial hubs; The more premium a location, higher is the investment, yielding even higher results; A good tenant can significantly increase the value of a commercial property.
If you are buying a commercial property for SELF-USE, ensure that it meets the following specifications – Site of the office: Can the office property be reached easily via all modes of transport? Is the location well-planned? If the answer to most of these questions is in the affirmative, then the location is a prime one; Grade of the building: Office buildings are generally classified as – Grade A, B or C building. Hence, make a decision depending on the kind of working environment you wish to give your employees; Maintenance of the property: The upkeep of commercial properties is quite high. Hence, ensure you have deep pockets so that you can keep up with the standards of the market; Engage with experts: Market analysts and lawyers will give you sound advice about the market and ensure you invest only in those projects that match your investment needs. – Viral Desai, national director – occupier solutions group, Knight Frank India
The Residential Market: If you are an INVESTOR, keep the following norms in mind – Have an eye for noteworthy infrastructural developments in the vicinity of the project as they will have a direct impact on the appreciation of the property; Commercial hubs in the area would lead to employment generation, which in turn would provide an encouraging rental opportunity. Hence, look out for that; Another aspect to look for while investing is the estimation of unsold inventory or resale opportunity in the area. While a high supply will limit the scope of capital appreciation, high unsold inventory will pose a threat to its resale potential. Also, rental yields will be affected on account of high supply as well as high unsold inventory;
If you are an END-USER, consider this before you lock the deal – Price of the property: This should be within your budget. One must not extend beyond means to purchase or the decision could prove detrimental in the long-term; Location: Easy access to workplace, educational centers, healthcare units, recreational spots among others is another key pre-requisite; Builders’ reputation and track-record: While RERA protects the interest of the consumers, it important to check the developer’s background and understand their success-to-failure ratio in order to avoid falling into any traps; Financial viability: One must have enough financial depth to service debt on a long-term basis.
Source: Times Property, Saturday 1 September 2018
Transfer fees: HC blow to hsg socs
In a setback to housing societies who get members to make a ‘voluntary donation’ at the time of sale of flat, the Bombay high court has ruled such payments are illegal. A housing society cannot recover excessive transfer fee from a member under the guise of ‘voluntary donation’, the court has ruled. Thirteen years after a Pune resident had claimed he was pressured to pay around Rs 5 lakh as a voluntary donation if he wanted to sell his bungalow property, justice Mridula Bhatkar ordered the housing society to refund the amount with interest. “A cooperative housing society..… is not expected to indulge in profiteering from members and, if such amount is earned, then it is taxable under the law. There is no bar on any member to pay a donation to the society, but it should be voluntary,” said Justice Bhatkar.
The judge remarked housing societies were known to charge extra from members. “Different ways are invented to earn more than legally permissible charges,” the judge said. The HC directed the society to refund Rs 4.75 lakh along with 8% interest from 2005. In the present case, a former member had accused Alankar Sahkari Cooperative Housing Society of forcing him to make a donation. The member claimed he was facing financial distress and hence had decided to sell the bungalow plot in the housing society. The committee, he claimed, sought a donation of Rs 5 lakh for their approval. The high court judge said, “A person facing financial crises will not donate Rs 5 lakh. There is a ceiling of Rs 25,000 for transfer fees.
Source: The Times of India, Monday 3 September 2018
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