RERA Enforcement: Investors Who Bought Property in India May Find Help from Center

In what is good news for homebuyers who invested in a yet to completed best property in India. The Center has warned states against diluting the Real Estate Regulatory Act or RERA. Among the warning to states by the centre include the introduction of rules and regulations by states legislatures which violate the RERA’s provisions. According to the Centre, dilution of the RERA by states may lead to a legal challenge.

Words from the Housing Ministry

The Union Minister of State for Housing has stated in a letter that rules, regulations and schemes enacted by Indian states cannot be in violation of the main provisions of the RERA because the RERA is settled law that cannot be altered by the subordinate legislation of Indian states. The Union Minister in a letter to the Chief Minister of Haryana wrote that any provision inserted into the rules of the RERA constitutes an open legal challenge which is liable to be struck down by Indian courts.

Table of content Brokers Penalized Despite No Control Over New Projects in Ahmedabad Stocks Or Real Estate: Which Is A Better Investment Option For A Profitable Portfolio How Will GST Impact Home Buyers And Renters in India?

Most incomplete projects in Haryana have been kept outside the scope of the RERA because the state of Haryana has diluted the norms which were a part of the draft rules for the RERA.

A ministry official went on to say that the housing ministry has appealed to each state not to dilute the RERA but to frame their rules in synchronicity with the Real Estate Regulatory Act. Ministry officials have provided Union Territories as exemplars of an undiluted RERA which has been notified in UT without any legislation. Indian states are encouraged to follow the RERA in the form in which it exists with Union Territories.

What Home Buyers Have Said

Across India, hundreds of thousands of homebuyers who have invested in projects that are yet to be completed have been against any dilution of the RERA. Such homebuyers have openly opposed any attempt by state governments to dilute the RERA and in particular the attempts by states to exempt yet to be completed projects from the RERA.

A recent example of action by homebuyers who were against the dilution of RERA is that of UP homeowners petitioning the Chief Minister of Uttar Pradesh because they were deeply concerned about the dilution of the RERA by the UP state legislature. Many such investors had bought yet to be completed real estate in India at Noida. In this instance, the UP Chief Minister had assured Noida Authorities that the RERA would not be diluted by his government.

     

RERA across the States Today

The state of Gujarat has kept all projects launched in the state before November of last year out of the grasp of the RERA. According to some of the best property websites in India, states including UP, Andhra Pradesh, Haryana, Madhya Pradesh, Maharashtra, Tamil Nadu, Rajasthan, and Karnataka have worked against the interest of buyers by excluding most incomplete projects from being completed as stipulated under the provisions of the RERA.

Conclusion

The RERA’s function if enforced by the Judiciary could lead to the implementation of the undiluted RERA at the state level in India.   

5 Reasons Making It a Perfect Time to Buy Home in India

Home buying is a crucial decision. Whether you are buying your first home or looking for a property for investment, you need to pay attention to many things. There are times when homebuyers hold back their decision of investing in real estate due to adverse market conditions. Recent demonetization move is one of the examples when many people who were almost going to pay for their new homes took backstep.

If you have also been planning to buy a new home and waiting for the right time, the right time has finally come. Yes, you read it right. This is the perfect time to invest in a residential project in India. Just have a look at real estate sites in India and you will find most of them promoting housing complexes due to the reasons given below.

The exponential growth of Indian realty sector: Though the market got hit due to demonetization, it has recovered from it. Various amendments in laws including Rera (Real Estate Regulation & Development) Act and Benami Transactions act have played a vital role in the exponential growth of the market. Further, the exemptions provided in the home loan in the Income Tax Act have also encouraged people to buy property.

Low-interest rates on a home loan: There are a limited number of people, who can pay the complete amount for their home from their pocket. With a high ratio of middle-class people, in India, most of the people apply for a home loan to realize the dream of owning an apartment. What if you are looking for a home loan and get it at impressively lower rates? Yes, this is possible now. After demonetization, banks got a colossal inflow of funds, which helped them bring down interest rates. So this is the right time for you to grab the opportunity and buy a flat. You should start searching properties sites in India.

Higher returns: The returns on investment in the real estate sector are expected to grow in near future. This will make this sector a favored choice for investment while leaving behind gold and fixed deposits.

Feasible property prices: Increasing demand for the affordable projects and government’s support to builders will definitely boost the number of quality residential projects. It will also help you find a property at reasonable prices.

The launch of PMAY: Since its launch three months back, the government has already got more than 1.5 crore applications. The Pradhan Mantri Awas Yojna (PMAY) focuses on helping economically backward section get their own home with the help of private builders.  This move has remarkably increased the demand for affordable housing, which will also help the government meet its goal of ‘Housing for All by 2022’. Just check any property site and you will be amazed to look at the increasing number of affordable housing projects launched by builders.

These are just five reasons to help you understand that this is the right time to use your savings in realizing your dream of buying your own home.

Table of content 4 Financial Numbers That Influence Your Home Buying Power Why Pune is The Best Place To Invest in Real Estate Market? Builders Altering Plans Midway To Construct Affordable Property in India

How to make money by investing in real estate in India?

Though making money and earning profits in the real estate market is comparatively easier than other investment ventures like stock and mutual, you still need some tricks and strategies to maximize your return on investment from this sector. Like any other business, you need to spend ample time on research and analysis to earn well.

You cannot expect to earn money in realty market by simply buying a home or a commercial property.From selection of the project to the right time of selling and advertising your house for rent on different property sites in India, everything needs to be done effectively. If you are a first-time investor and confused about the ways to earn money from real estate market, here are three simple ways for you.

Appreciation: Price appreciation is one of the most common ways to earn profits in this market. This is the way our ancestors created wealth from it. People who had huge land parcels made a lot of money when the government started SEZ projects.

Table of content A Leading Real Estate Website in India Laments Homebuyers Plight Against Builders Government and Housing Ministries Role in Creating Affordable Property in India Under PMAY 5 Brilliant Ways to Beat The Heat and Keep Your Home Cool In Summer

Just wait for the market when it goes down to buy a suitable project at cheap prices and sell it off when the market improves. For instance, now prices of commercial as well as residential projects in most of the cities in India are down due to demonetization. But these are expected to improve in near future due to the amendments made by the government. So now you should buy property in India and wait for appreciation in the value to sell it at right time.

Rental income: If you own residential property in cities like Gurgaon, Mumbai, Bangalore and Pune, where demand for rental homes is high, you can make good money by renting out your extra home. This is one of the best ways to make a regular income until you plan to sell the second home for high capital gains. However, you need to be careful while renting out your house and think about the maintenance expenses as well.

Listing on real estate site: Remember, the internet is a vast ocean of information and opportunities. Whether you are a property buyer or a seller, Real estate site in India can help you a lot. All you need is to understand your requirements and find a suitable site. For instance, if you want to sell your property at high prices, list it on a high-authority and reliable website. Homebuyers will find your residential project and get in touch with you for further discussion. In this way, you can also save the time and money wasted on agents.

Even though investing in Indian realty market is easy, it also has its own risks and you need to work on your part to minimize this. Careful research, right project selection at a strategic location and timing are some of the important points to earn huge capital gains from the investment made in real estate market.  

Should you buy heritage property in India or not?

There are people who love antique and old things. Even when it comes to buying a home, they search for heritage properties made decades back. But is it really wise to invest in heritage properties as it comes with its own challenges? From taking so many permissions to selecting the material, at every step you need to be extra cautious while investing in a heritage property.

When talking about heritage zones with ample choices of old properties, cities including Delhi, Mumbai, Ahmedabad, Hyderabad, Pondicherry, Varanasi and Goa top the list. There are many property websites specifically dealing in heritage properties. But the problem is that you cannot always rely on these sites and the agents because these cities are full of money spinners when it comes to tourism. To prevent guides and agents from cheating tourists, the authorities here are planning to pass legislation declaring heritage zones.

Table of content Why are real estate developers offering easy payment plans? According to Real Estate Sites, a Solution to Real Estate Delivery Delays Property Site in india

Now again comes the same question, “is it wise to buy a heritage property in India?” Looking at the huge demand for heritage hotels from tourists, many properties in Delhi, Rajasthan, Agra, and Lucknow have already been converted into hotels and resorts.

Approval:

Whether you want to use heritage property for commercial use or for residential purpose, you will have to face many troubles when renovating it. There are many restrictions on development and improvement of heritage properties. The authorities don’t want the buyers to spoil the look and feel of the property, which was created after a lot a research and creativity. Further, to renovate the old structure, you need to find an architect who has experience working with heritage properties.

Renovation

Once you get approval to make changes in the building, you need to work on every aspect. From wiring to lighting fixtures, paint, interiors, you need to pay attention to everything. Further, to fix issues like windows and doors, you need to explore antique markets as you cannot just buy a window randomly to fix the problem. You need to find a matching window in local second-hand market.

Finding heritage properties in India is not difficult, but making them livable is the major challenge. From getting permissions to ensuring the character of the old building, you need to be extra careful at every step.

If you are looking for a suitable heritage building in India and wondering from where to start your search, just start exploring the best real estate websites. You will definitely get a right home, which not just draws the attention of passer-bys but also links generations.

Leading Real Estate Website in India Highlights Role of PE in Indian Realty

According to a real estate website in India, lending to builders by banks has more than halved over the past two years. Lending by banks stood at 55 percent in 2014 but last year fell below 24 percent. The poor performance by the countries real estate sector has been stated to be the decrease in lending by banks to builders.

Why Builders Are Considered Riskier by Banks

The high proportion of non performing assets on the balance sheet of builders have led banks to lower lending to builders. Greater provisioning for risk and rising losses in the real estate sector have also led banks to extend less credit to builders in the country.

New Sources of Funding

While builders who construct propertyin India are losing their charmed status in the eyes of banks, private equity players have been lending to builders and their funding accounts for sixty percent of the funding received by builders. Notably, the proportion of funding from private equity players to builders comprised a mere 20 percent of the funding received by builders seven years ago.

According to this real estate website the funding received by builders from private equity players is not restricted to PE firms buying equity in the builder, rather the funding to builders from private equity players has moved on to a quasi equity structure.

The Scenario in the Past

Seven years ago Initial Public Offerings were the preferred means for builders to raise capital, yet today because many builders are perceived to have a poor credibility this route to raise money is no longer as viable for builders. Private equity players share of investment dropped from 3.6 billion dollars in 2015 to 3.1 billion dollars last year. The average deal size last year was 56 million dollars.

Table of content 5 Things to Keep in the Mind When Using Wallpaper to Decorate Your Home CREDAI Commits to Creating Numerous Units of Affordable Property in India Essentials of MIG Housing According to Established Property Websites in India This Property Website Believes Affordable Housing Is Not Affordable Enough

What the Future Holds

Real estate in India is almost certain to mature in the future and changes in the regulatory framework and market forces will ensure that PE firms play an even larger role in Indian realty in the future. Notably, currently the huge excess inventory of real estate in India has driven private equity players to shift their focus to investing in commercial space rather than investing in residential space. 

Learnings Emerging from the Recent Trend of Buying a Second Property in India

Owning a second property in India may no longer be only for the jet set and the tycoons. Owning a second home is become quite popular among Indian households, even among those who may at one time have struggled to purchase a first home. Usually, such homes are bought in vacation spots in regions such as Goa, Nashik, Khandala, Kerala, and Lonawala. Most such homes are bought as vacation homes by families that enjoy vacationing yet who have had trips cut short in the past due to the high expense of hotels. Among the most popular destinations where second homes are purchased are Alibaugh, Lonawala, Khandala as well as lesser known places such as Karla, Karjat, Talegaon

Why The Rise in Popularity Now?

According to correspondents and several real estate websites, many families earlier had to shorten the duration of their vacations because their budget did not allow for a longer stay at an expensive hotel. Today banks are offering such households loans with which to buy a new property at their favourite vacation destination.  

How Far We Have Come

Ten years ago many families that could not have dreamt of owning a single home today own one in their city of residence and another in their favourite vacation spot.  Such vacation homes have been well promoted and this has led families to easily buy the home of their choice.

Table of content Buying A Property In India? Beware Of The Tricks Used By Builders Builders Seek New Sources of Financing for Affordable Property in India Real Estate Websites in India Forecast into the Rest of This Year

What Buyers Should Look For

According to this real estate website, households that are eager to buy a new home in a small town or vacation spot need to consider several factors before making a purchase. Firstly, the quality of local infrastructure matters since buyers would want to be able to drive to their new home and to enjoy the comfort provided by electricity during most hours of the day.

A newly purchased home should also provide security to the owners when they vacation at the house. Friendly neighbours, as well as regular police patrols, ensure security for families when they are vacationing in their home. The capital growth of a newly purchased house must also be taken into account since despite being a vacation home, a house is an investment that should appreciate in value over time. Another important factor for buyers to consider is the architecture and design of the new vacation home.

Valuations of Properties

The price of plots, as well as bungalows, has risen over the past few years. This is another reason many are investing in vacation properties in India. A locality located in a peaceful locale commands a premium and the shorter the commute from the airport the better it is long term for the value of the property. Properties, where residents can get together at clubs or play golf, are also highly coveted. According to this property site, the market for such housing is gradually maturing which has led to the construction of numerous projects in the lap of nature.

7 Safety Features You Mush Look For When Buying Home in India

If you want to buy a house in India, there are a number of safety features you need to look at. In today’s time with the increasing number of crimes, it gets really difficult for the working professionals to leave their family unsecured at home. They look for a home where they can relax about the complete security of the family. Experts with knowledge of different types of properties in India mention some of the security features, every homebuyer should look for when buying a flat.

Table of content Far from the End for Luxury Property in India The Story So Far of Luxury Properties in India Despite the Hype, Don’t Invest in Property in India Yet

Furnished or unfurnished

Before buying a residential property, you first need to decide whether you want a fully furnished and pre-designed home or want to build it as per your preference. If you are opting for a bare-shell home, you can plan security features as per your choice.

Fire safety

Fire safety is one of the most important factors you need to pay attention to while investing in a residential property. To ensure that fire breakouts don’t damage the property, check about fire safety measures used in the building. If you read project details on real estate websites in India, check this in the specifications section.

Electrical safety

Electrical equipment and switches can also be the reason for big accidents. So carefully check switchboards, circuits, fuses and other electrical fittings in the building.

Exterior safety

Exterior safety is an important consideration in modern residential projects with amenities like jogging area, swimming pool, kid’s play area etc. Ask the builder about security system at entry and prefer the project with high-tech security features like boom barrier, card entry etc.

Neighborhood

Though people nowadays have limited or no time to interact with the neighbors, it is important to look for the good neighborhood for the safety of children. Further, a neighborhood with a lot of pollution, sound or drainage problem cannot make a right place to live. For this, you can check location comparison charts on Indian property sites helping the home buyers.

Staircase

The quality of handrails used on staircase has a lot of impact on your safety. If you don’t find them suitable as per your requirements, you can ask the developer to get it changed. For families with elderly people, slippery handrails can be risky, so they need to check for it.

Convenient life

This might not be a security feature, but an important requirement to enjoy a happy life. If you are looking for a property to spend rest of your life there, check a few things like proximity to the public utilities, retail store, and space for setting up a home office in future.

Building Real Estate in India Using Non-Traditional Financing Methods

Real estate in India could benefit from a mew method of financing informally known as Masala Bonds. As things stand today, the real estate sector in India requires large sums to finance projects. One source of funding for real estate in India is to raise capital from homebuyers. Under this financing scheme, homebuyers pay regular instalments as work on a project begins and continue to pay as milestones towards its completion are met.  

Additional Sources of Funding

External Commercial Borrowings (ECB’s) are a source of financing that builders may consider to help finance real estate projects in India. Raising money from External Commercial Borrowings means raising money from outside India. Doing so may be highly profitable yet Indian builders and companies regularly shy away from doing so. The reason this is so could be that even while absolute foreign currency loans could be cheaper than rupee loans, it is only after additional costs such as Hedging, Consultants Costs, Incremental Transactions Costs are added that the true all-in-all interest rate of such a loan is revealed. While much of the real estate in India could be built by loans from an ECB channel which would be cheaper than a rupee loan, the ECB financing option may actually turn out to be a more expensive financing option than a simple rupee loan due to the additional costs mentioned.  

Table of content The Latest on Real Estate in India Within Smart Cities Property in India Not Yet Punching According to Its Weight Technology: A Game Changer For Indian Real Estate Market

Who Can Use ECB’s & Masala Bonds?

Another catch to using funds thru External Commercial Borrowings is that only firms that have foreign capital reserves at their disposal are able to borrow money via this channel. Hence fresh entrants who wish to build property in India are certainly ineligible for such a loan. Real estate sites in India often provide information about new launches in a city and also provide information about payment options for interested buyers. This is a standard model for financing building projects in India and one that is very unlikely to be usurped anytime soon by the ECB borrowing model.

Masala bonds are the reverse of ECB’s which means that foreign entities take a loan on a financial instrument which is in rupees and is backed by an Indian entity. Some of the best real estate in India may be built in the future with the use of these instruments.

Conclusion

Due to consolidation in the Indian realty sector and also because of the entry of large corporate houses into the real estate sector, there may finally be companies large enough to have reserves of foreign capital that allow them to raise capital via the ECB or Masala Bonds channel. The buying and selling of property in India will evolve and create new financing models as sturdier players enter the countries real estate market and use tools such as Masala Bonds and ECB’s to finance projects.

4 Major Behavioral Patterns That Affect Home Buying Decisions In India

Home is not just a brick and mortar structure where we come to sleep at night but a very special place where we create memories with our family and loved ones. For many, it is a dream to realize which they need to plan and save for years. Based on the requirements, background, and family, every home buyer in India has different traits differentiating them from other buyers. Let’s have a look at four major traits and behaviors seen in people planning to invest in Indian real estate .

The emotional buyers

Have you ever though why old age people refuse to relocate to a new city or location? It is the emotional attachment they have with the streets, neighborhood, landmarks and the place they have important years of their lives. This emotional attachment can be seen in native buyers looking for residential real estate projects in India. When looking for a new home, they prefer projects close to their localities so that they can stay close to their family and friends.

The agnostic buyers

Relocating to a new city or location has mixed emotions with some preconceived notions. For instance, we read different news about Delhi every day. So when a migrant buyer looks for a home in Delhi, the doubts and “tourist gaze” highly impact their buying decisions. No matter for how many hours a home buyer explore the property website, there will always be a doubt in their minds.

The sensible buyers

These buyers generally include career-oriented married couples with no kids. These people with dual income have a more practical approach to life. No responsibility and additional expenditure of kids allow them to think more about their own lifestyle. Luxury projects in India is flourishing basically due to this category only. They look for luxury residential projects in posh locations with easy access to all the amenities like hotels, spa, malls, multiplexes etc.

The judicious buyers

The retail investor is a completely different group. These people have different psyche and pay more attention to their individual traits like tastes, sensibilities, and preference of geographical areas. These retail investors looking for investment property in India are more sensitive to name and location than the return on investment.

Undoubtedly, home buying process in India is different for different people, but the basic requirements remain same. There are many dynamics that you can find on the best property sites in India. So buy a home wisely and let it tell your story and behavioral aspects.  

Real Estate in India

The real estate sites provide enough data about the real estate segment. The realestate in India is growing fast in the country. There is the latest information available about the property market. The property market has different information about the progression and new launches occurring in the market. There are both ready to-move-in and under construction properties available in the market. Propchill helpline: 7827456456

Real Estate in India

Realestate in India is going through a rough patch for the past couple of years, a recovery was being forecast for 2017.  However, with the demonetisation initiated in Nov 2016, real estate in India will continue to reel due to lack of market liquidity and negative market sentiment. It is general knowledge that real estate in India was one of the highest grossers of black money and therefore the secondary real estate market has just frozen due to demonetisation, only distress sales are taking place. Fortunately, market pundits are highlighting this as a short term effect and the real estate markets are predicted to recover by end of 2017 with a fresh strong foundation. With a number of policy changes and a stronger legal infrastructure the real estate sector in India is going through a reorganisation and will bounce back much stronger.  Propchill helpline: 7827456456