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Bhanu Sahu

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All about Gujarat RERA (GUJRERA), its vision and mission

The Real Estate (Regulation and Development) Act 2016 and all its sections came into force on May 1, 2017. Under this Act, the Government of Gujarat established the Gujarat Real Estate Regulatory Authority (GUJRERA) to regulate and promote the real estate sector in the State of Gujarat. GUJRERA is intended to make Gujarat the premier destination for real estate investment regionally, nationally, and globally, where the interest of consumers and developers in the real estate sector is secure through effective and fair regulation. The Act aims to provide a robust, secure, trustworthy, transparent, and sustainable real estate regulatory environment that encourages investment while protecting consumer rights.

Key components of Gujarat RERA Act, 2016 

Real Estate Regulatory Authority And Appellate Tribunal 

The appropriate government established real estate regulatory authority for regulating and promoting the real estate sector in State and Union Territories under this Act. 

The authority makes an effort to facilitate the growth and promotion of a healthy, transparent, efficient, and competitive real estate sector while protecting the interest of promoters, allottees, and real estate agents. Authority established an adjudicating mechanism for speedy dispute redressal regarding registered real estate projects.

The key responsibilities of the authority are as follows-

  • The act ensures the disclosure of real estate projects by realtors. 
  • Registration of real estate projects 
  • Registration of real estate agents
  • Covers receipt and processing of complaints from consumers
  • Provide recommendations to the appropriate Government on matters relating to the development and promotion of the real estate sector. 

GUJRERA – Real estate project registration 

All residential and commercial real estate projects will have to register except for projects where

  • The area of land proposed to be developed is not more than five hundred sq mt. 
  • Inclusive of all phases the number of apartments proposed to be developed does not exceed eight 
  • If the promoter has received completion certificate for a real estate project before the commencement of this Act
  • For the purpose of renovation, repair, or redevelopment which does not include marketing, advertising, selling, or new allotment of any apartment, building, or plot, as the case may be, under the real estate project. 

Without registration of the project under GUJRERA, no promoter is allowed to advertise, market, book, sell, offer for sale, or invite persons to purchase any plot, apartment, or building in any manner, as the case may be, in any real estate project or part of it, in any planning area within Gujarat. In ongoing real estate projects, in which buildings as per sanctioned plan have not received completion certificates, promoters are also required to be registered for such phases of the projects consisting of buildings without occupation or completion certificate. 

As per the Act, the promoter will be liable for a penalty that may extend up to ten percent of the estimated cost of the real estate project on the failure of registration. He will be punished with imprisonment for a term that may extend up to 3 years. 

The promoters are also required to provide updates on the project on a quarterly basis to the authority. 

GUJRERA – Real estate agents registration 

Real estate agents are required to be registered under this Act. Without registering under this Act, no agent is allowed to facilitate the sale or purchase of any plot or building, or act to facilitate sell or purchase on behalf of any person as the case may be in a real estate project. 

On failure of registration, real estate agent is liable to penalty of ten thousand rupees for every day during which such default continues, which may cumulatively extend up to five percent of the cost of plot, apartment, or building, as the case may be of the real estate project, for which the sale or purchase has been facilitated. 

Filing of complaints

Any person who is mistreated may file a complaint with GUJRERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation of the provisions of this act. The authority establishes an adjudicating mechanism for the speedy redressal of such complaints. 

Any aggrieved person by any direction or decision or order made by GUJRERA may file an appeal before the Appellate Tribunal. Any person aggrieved by any order of the Appellate Tribunal may file an appeal to the high court. 

Financial discipline 

  • As per the act, the promoter is not allowed to accept more than ten percent of the total cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale. 
  • Allottees shall deposit seventy percent of the amounts from time to time that is realized for the real estate project, in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose. 
  • Withdrawals from these accounts must be made in accordance with the project’s progress as certified by an engineer, an architect, and a practicing chartered accountant.
  • The promoter must compensate the buyer in case of any false or incorrect statement with a full refund of property cost with interest. 
  • Project Accounts to be Audited/FY. Copy to be submitted to GUJRERA.
  • Provision for GUJRERA to freeze the project bank account upon non-compliance.
  • Impose stronger financial penalties for GUJRERA non-compliances. 

Citizen Centricity 

  • Citizens shall be able to view all disclosures pertaining to registered projects on GUJRERA website. This shall enable data-driven informed decision making.
  • The act restricts the promoters to make any changes in the sanctioned plans, layout plans and specifications, and the nature of fixtures, fittings, amenities, etc. without the previous consent of at least two-thirds of the buyers who have agreed to take apartments in such buildings.
  • The promoter is liable to pay interest for every month of delay, in case of failure to provide possession of an apartment, plot, or building in accordance with the terms of the agreement for sale. Further, in case the allottee wishes to withdraw from the project, the promoter shall return the amount received by him with interest without prejudice to any other remedy available. 
  • Promoters must form a legal entity like a cooperative society, company, association, federation, etc. within three months from the date on which sixty percent of the total number of purchasers in such a building have booked their apartment. 
  • Within three months from the date of issue of occupancy certificate or sixty percent of the total number of purchasers have paid the full consideration to the promoter in such a building, the promoter should execute a registered conveyance deed in favor of the allottee. 
  • Real Estate (Regulation and Development) Act 2016 focuses on  reforming the real estate sector in India, encouraging greater transparency, citizen centricity, accountability, and financial discipline.

Transparency in the market 

RERA ensures the land title is clear, the encumbrances are sustainable, and the documents for sale are sound and legally enforceable and in accordance with the model documents to protect buyers from non-professionals. The physical progress and the financial discipline are monitored by independent engineers and financial experts as well as by ensuring the development and operation of the owners’ associations.

The act drives transparency in the real estate sector as follows-

  • Ensures sanctioned plans, layout plans, along with specifications, are approved by the competent authority. 
  • It allows buyers to ask the promoter for the proposed Plan, the Proposed Layout Plan of the whole project, and the Floor Space Index proposed to be consumed in the whole project.
  • Sanctioned and proposed number of buildings or wings to be constructed. 
  • The stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation, and electricity. 
  • Quarterly update of the list of the number of covered parking, and garages booked. 
  • Quarterly update the list of approval taken and the pending approvals 
  • which are subsequent to the commencement certificate.
  • Quarterly update of the status of the project
  • Other specified information and documents specified by the regulation made by GUJRERA.  

The advertisement of prospectus issued by the promoter shall prominently mention the RERA registration number and website address of GUJRERA, wherein all details of the registered project have been entered. 

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What is Return on Investment (ROI) and how to calculate it?

Understanding Return on Investment (ROI)

Return on investment (ROI) is a measure used to estimate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI approaches directly measure the amount of return on a particular investment relative to the investment’s cost. 

The benefit (or return) of an investment is divided by the cost of the investment to calculate ROI. The result is expressed as a percentage or a ratio. 

To calculate ROI, divide the difference between the current value of the investment and the cost of the investment by the cost of the investment. 

“Current value of investment” refers to the profits obtained from the sale of the investment of interest. ROI is easily comparable to other investment returns because it is measured as a percentage, allowing a variety of investment types to be compared. 

ROI is popularly used because of its versatility and simplicity. Essentially, it is used as a rudimentary gauge of an investment’s profitability. This could be the ROI a company expects on expanding a factory, ​the ROI on a stock investment, or the ROI generated in a real estate transaction.

The calculation itself is not overly complicated, and it is relatively simple to interpret given its wide range of applications. If the ROI on investment is net positive, it is probably worthwhile. However, if other opportunities with higher ROIs are available, these signals can assist investors in eliminating or selecting the best options. Besides, investors should avoid negative ROIs, which imply a net loss.

For instance, suppose A invested Rs 1,000 in Slice Pizza Corp. in 2017 and sold the shares one year later for a total of Rs 1200. Now, divide the net profits (Rs 1200 minus Rs 1000) by the investment cost (Rs 1,000) to calculate an ROI of 20%. 

Now, this information will give you an idea to compare the investment in Slice Pizza with any other projects. Suppose A also invested Rs 2000 in Big Sale Stores Inc. in 2015 and sold the share for a total of Rs 2,800 in 2018. The ROI on A’s holdings in the big sale would be 40%. 

Limitations of ROI

The above example reveals the limitations of using ROI, particularly when comparing investments. While A’s ROI was double that of the first investment, the time between purchase and sale in the first and second investments was one year and three years, respectively. 

A could adjust the ROI of the multi-year investment accordingly. One could divide the entire 40% by three to obtain the average annual ROI, which is 13.33% annualized. These adjustments show that the second investment earned more profit, while the first investment was actually a wise decision. 

ROI can be used in conjunction with the rate of return (RoR), which takes into account a project’s time frame. You can also use net present value (NPV), which accounts for differences in the value of money over time due to inflation. The application of NPV when calculating the RoR is often called the real rate of return.

ROI developments

SROI was created in the late 1990s to account for the broader impacts of projects using extra-financial value (i.e., social and environmental metrics not currently reflected in conventional financial accounts). Lately, investors and businesses have shown their interest in the development of new forms of ROI, called SROI, or “social return on investment.”

SROI helps to understand the value proposition of certain environmental, social, and governance (ESG) criteria used in socially responsible investing (SRI) practices.

For example, a company may want to recycle water in its factories and replace all of its lightings with LED bulbs. These tasks have an immediate cost that may have a negative impact on the traditional ROI. However, the net benefit to society and the environment could lead to a positive SROI. 

There are some other new variations of ROIs that have been developed for specific purposes. The efficiency of social media campaigns is determined by the social media ROI, which shows the number of clicks or likes achieved per unit of effort. Similarly, the return attributable to advertising or marketing campaigns is determined by the marketing statistic ROI. 

Understanding ROI in simple terms

ROI (return on investment) tells you how much money you’ve made (or lost) on an investment or project after accounting for its cost.

How to Calculate Return on Investment (ROI)?

Return on Investment (ROI) is obtained by dividing the gained profit on an investment by the cost of that investment. For instance, an investment with a profit of Rs 100 and a cost of Rs 100 would have an ROI of 1 or 100% when expressed as a percentage. However, ROI is a quick and easy way to estimate the success of an investment, but it has some significant limitations. For instance, ROI is unable to reflect the time value of money, and it can be hard to meaningfully compare ROIs as some investments will take longer to generate a profit than others. Due to this reason, other metrics are being used by professional investors, such as net present value (NPV) or the internal rate of return (IRR). 

What Is a Good Return on Investment?

The “good” ROI depends on a number of variables, including the investor’s risk tolerance and the length of time it takes for an investment to start paying off. If everything is equal, investors who are more risk-averse will probably accept lower ROIs in exchange for taking less risk. Moreover, investments that take longer to pay off will generally require a higher ROI in order to be attractive to investors. 

What Industries Have the Highest ROI?

Altogether the average ROI for the index S&P 500 has been about 10% per year. However, depending on the industry, there can be significant variation within that. For instance, many technology companies produce annual returns above this 10% threshold. Meanwhile, companies in other industries, such as energy companies and utilities, made much lower ROIs and in several cases faced losses year over year. Gradually, it is normal for the average ROI of an industry to shift due to factors such as increased competition, technological changes, and shifts in consumer preferences.

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Kartik Aryan leased a luxury apartment from Shahid Kapoor in Juhu

The actor has paid 45 lakhs as the security and will get exclusive access to two car parking. The stamp duty and 36-month lease registration were done by his mother.

Bollywood actor Kartik Aryan has leased a luxury apartment from Shahid Kapoor for 3 years in Mumbai’s tony Juhu locality and will be paying rentals of over Rs 2.89 crore across the total term. 

The rentals will see a 7% escalation every year and the actor has paid 45 lakhs as a security deposit for the lease. The monthly rentals will be 7.50 lakh in the first year which will increase to over Rs 8.58 lakh during the third year of the lease. 

The apartment has a total area of 3.681 sq ft on the ground floor and the basement of a residential building Parneta on Juhu Tara Road. Aryan will also get exclusive access to two car parking slots, as part of the lease agreement. 

The deal was registered on January 12, the actor has leased the apartment through his mother Mala Tiwari, while on behalf of Shahid Kapoor, his wife Mira Kapoor inked the deal.

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ConTech is the revolutionary buzz word in construction domain

ConTech (Construction Technology) is a revolutionary technology that is being used for all construction work within the construction industry. Like many others, the industry is changing, and in order to sustain and grow, every construction company needs to update its work and methods when it comes to technology. The good part is that one can learn easily to use these technologies, for the most part.

Here are different ConTech items that every construction company and worker must adopt :

  1. Virtual Reality

VR is a major ConTech item within the construction industry. Virtual reality components made construction designing, planning, and implementation easier. Construction companies can create 4D models of buildings so that their clients can have a surrounding experience before even raising a single wall. The best part is that the construction workers can use these virtual reality models to see any problems or concerns before the beginning of construction work. This can keep the project moving forward on schedule and can keep delays from happening.

  1. Augmented Reality

While virtual reality is an excellent feature, many construction companies find that augmented reality is much better. This type of technology allows construction workers and others who are involved in the project to walk through the 3D version of the augmented reality building. This is popular because they can see and feel the distance between walls, as well as the distance between other objects such as the wires and plumbing fixtures that are running through the walls, for determining the walkway between cabinets and counters, and even the distance between toilets and sinks. This type of construction technology is continuously improving every day, as amazing as augmented reality is at the moment. These all indicate that within the next couple of years, the technology will unlock many options for doing even more with it.

  1. Wearable Technology

Despite the efforts of the workers, accidents occur pretty often at construction sites. However, wearable technology ensures that workers have the assistance they require immediately if something unfortunate occurs to them at work. when a person falls, slips, or trips this ConTech feature can alert others, so help can be sent right away. Wearable technology assists everyone with potential hazards and how to avoid them. As this type of technology continually improves, construction companies may be required to use it if they want to work smoothly and to be given contracts.

  1. Software and mobile apps 

The rapid development of different construction software platforms is a key element of ConTech. In terms of digitization, construction is still one of the slowest industries, and construction software is slowly changing that.

In recent years, there has been a wave of either acquisitions or investments in construction technology startups. 

  1. Drones

Drones have been used on construction sites for a while now because they are so helpful in reaching places that employees have a difficult time seeing.  This technology significantly lowers the accident chances that occur from people climbing up to roofs, because the drone can fly up for aerial views that can be sent via photograph or video.  No one will ever need to wonder what something looks like, simply because they don’t want to take a risk climbing up to see it.  Instead, they can send the drone up in real time and can see everything that they need to in order to make an informed decision.

  1. Prefabrication

Prefabrication has become more common in recent years because having certain things ready to use avoids delays from unpleasant weather or other circumstances. However, technology made it possible for everyone involved in construction work to see the entire process of the prefabrication. Everyone can see the prefabrication progress and when the final product will be ready for delivery. This streamlines the entire process, everyone has more time to complete other important tasks.

  1. Predictive Analytics

The potential dangers associated with any work have long been an open question as to what risks are possible for every job. However, with the developing technology programs can now identify which risks are more significant for particular work. The program analyzes the data entered by subcontractors and suppliers as well as the design plans and the site information for any possible hazards that could be present throughout the course of the job. Construction companies will like to adopt this type of technology, especially as it develops and advances, and they will no longer need to question whether they have made right decision.

  1. Communication Amongst Job Sites

ConTech is notably essential when it comes to communication amongst job sites, as delays can lead to loss of profits. There is now technology, mobile apps, and software that make it possible for every job site to connect and view the latest drawings, documents, and even RFIs. With this kind of ConTech, nobody at the site is ever excused from being unaware of what is happening.

ConTech is continuously improving, which is great for the industry because it will simplify the entire process of construction from beginning to end.

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PMLA court  issued an arrest warrant against Faith Builder’s owner

Bhopal: The land of Faith Cricket Club is in the inventory of assets under scrutiny said Income Tax officials. Tomar was summoned for a personal appearance by the ED with relevant documents of the assets.

On Monday, special PMLA court issued a fresh arrest warrant against Raghvendra Singh Tomar after the Enforcement Directorate (ED) reported that despite multiple attempts they failed to trace him. 

To execute the warrant issued for the alleged money laundering case, last week, ED officials visited the residential premises of Tomar. On Thursday, the warrant was handed over to his wife as Tomar was not found at home. 

MP Lokayukta investigated the assets of an IAS couple in an alleged disproportionate assets case. Almost after a decade of investigation into the assets of IAS couple Arvind Joshi and Tinu Joshi, ED probed Tomar.

Income Tax also searched for Tomar who is the owner of Faith Builders was summoned to appear in person by ED with relevant property documents which the investigator firmly believes are linked with the Joshi couple. Tomar was charge-sheeted before the special court on January 10. 

On Monday, Tomar uploaded a video on social media claiming that he was a ‘bonafide buyer’ of Joshi’s land and had invested in the property more than the actual cost. The money which he has invested was earned through his real estate business and other sources of income. He said that he was unaware of any illegality related to the land on which his Faith Cricket Club is built. 

Tomar said that the cases registered by ED at Habibganj police station are entirely different. The complaint made by H M Joshi to the police is false. The matter is subjected to an inquiry by the questioned document section, I haven’t done anything wrong and I am sure that the facts will come to the fore. He added that the case was registered under the pressure of a former DG and former CSP. 

The land of Faith Cricket Academy is in the inventory of assets under scrutiny, said Income Tax officials. 

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Home ownership demands are expected to increase or remain stable in 2023

About 58% of developers across India expect housing prices to increase further in 2023, according to the Developer Sentiment Survey conducted by CREDAI, Colliers, and Liases Foras. Demand for homes and volatile key input costs simultaneously increased the housing prices in the Indian market. A joint report by Colliers-CREDAI-Liases Foras, on Real Estate Developers’ Sentiment Survey 2023, summarizes perspectives of developers on how the residential sector spanned out in 2022 and which transects the sector is anticipated to follow in 2023.

Disruption in global chain supply leads to inflationary pressures, as the cost of raw materials has increased in the last two years. Compared to 2021 about 43% of the developers saw a 10-20% rise in project costs through rising input costs. Colliers mentioned in its construction cost Update on November 2022, that the key construction material costs have increased by around 32% in a span of three years leading to increased construction costs for the developers.

Record-breaking sales in the previous year in the last decade, encourage more than 70% of developers to believe the housing demands will increase by 25% or remain stable in 2023. Most of the developers in the community are looking to expand their offerings and the year is expected to see a surge in new launches equal to the current supply under construction. Key factors such as Rising population, wealth growth, and rapid urbanization are stimulating the industry’s growth. Thus, in order to maintain the momentum, nearly 31% and 40% of developers respectively anticipate that the government will rationalize/ income tax credit, GST, and ease of doing business, said Harsh Vardhan Patodia, President of CREDAI National. 

Ramesh Nair, Chief Executive Officer | India & Managing Director, Market Development, Asia, Colliers said that since the pandemic, there has been a constant preference for home ownership leading to an increase in enquiries for developers across the spectrum in 2022. According to the survey, the developers remain confident about the market. About 43% of the developers anticipate that residential demand in 2023 would remain stable. Despite increasing loan rates, homebuyers are still excited to buy homes. Developers are also formulating strategies to complete their pending projects and focusing on launching new projects that are aligned with the needs of the homebuyers and bring in demand-led supply. 

A survey revealed that 62% of the developers feel that buyer enquiries and engagement have increased in 2022 as compared to 2021. 43% of the developers anticipate constant residential demand in 2023, while 31% predict that the demand would increase by up to 25%. 43% of the developers witnessed a 10-20% rise in project costs in 2022 due to increasing input costs. As an alternative business model, 31% of the developers are willing to consider plotted developments, followed by branded residences preferred by 19% of developers. About 39% of the developers expect better ease of doing business from the government in 2023, while 31% expect rationalization/ Income tax credit GST. Almost half of the developers expect that a predicted downturn will moderately impact their business. “2022 witnessed the highest-ever sales and new launches across major cities in India. Liases Foras, Managing Director, Pankaj Kapoor said, “We have also seen a marginal increase in property prices. The market is expected to retain the momentum that the sentiment survey re-affirms”. 

About 31% of the developers are willing to explore planned developments as an alternative business model, whereas 19% of the developers preferred branded residences which were considered favorite by the majority of developers. Demand for self-contained residential complexes has risen due to rising disposable incomes and an increased desire for top-notch amenities and open areas. With lower land rates and flexibility, plotted developments are also becoming popular among homebuyers, especially in tier II cities. 

Around 87% of the developers are willing to launch new residential projects in 2023, the upcoming year is expected to witness a surge in new launches. Despite inflationary pressures and any significant turndown, this encourages optimism among developers. However, developers are probably adopting a wait-and-watch approach to see how the economy, job freezes, and layoffs pan out over the coming few months. The developers request easy business from the government. 

The survey states that ‘Ease of doing business’ is developers’ top expectation from the government. The government announced the launch of ‘Ease of doing business 2.0’, in the Union Budget last year. The sector anticipates more clarity and guidelines for the index, including aspects such as single-window approval. 

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10 Hidden costs to know while buying a property

Buying a house is generally the biggest purchase of one’s lifetime which can’t be done without detailed financial planning. Understanding and evaluating the actual cost of ownership of the house is the first and vital step while purchasing a house. The actual price of the house will be contrary to expectations, it could be different from the cost projected by the builders and sellers.

This is because the property always includes hidden charges and  additional expenses that should be checked and considered while buying. Here are some of the factors that necessitate being considered while buying a property. 

Registration fee and Stamp Duty  

A registration fee is mandatory and a buyer is supposed to pay the state government to register a house under his/her name. These charges may differ from state ranging from 5-7 percent. Registration is the final agreement between the seller and buyer indicating the transfer of ownership. The court charges a 1-2 percent registration fee for it. 

Surcharge 

This fee is charged in addition to the stamp duty. The property priced above 32 Lakh would charge a cess of 10 percent surcharge in urban areas and three percent in rural areas. 

Goods and Service tax (GST)

GST is paid to the government like stamp duty and registration charges for under construction. The GST on the under-construction property is 5% while affordable housing projects attract only 1%. The GST is not applicable on ready-to-move properties or on those projects which have got the compilation certificate. 

Advance Maintenance Deposit

Builders can charge advance maintenance or security charges, and this may be for up to 2 years which usually comes in common amenities, parks, and lighting. It is charged as a deposit for any future damages to the property. Deposit sum could vary with the number of amenities in society and include membership like clubhouse, gymnasium, etc. The charges depend on locations and societies to societies. For instance the high localities like Bandra and Cuffe Parade and lower places like Borivali and Mahim in Mumbai. 

Parking space

The seller has all rights to sell the parking place to another member of society if the parking fee is not paid. The charges apply depending on the size and number of spaces provided to you. The spaces can be varied depending on the location and societies in which the property is. 

Interiors

The interiors include any lighting, paints, carpets, furniture, and electric appliances. Fully furnished interiors can be charged up to Rs. 10 lakhs. The fee comes separately and has to be paid by the buyer. It is an important and unavoidable cost, and moving in with a proper interior is a good option that can save your budget and further interior costs.

PROPERTY INSPECTION CHARGES

Obtaining a house loan from a bank will require an inspection of the property to ascertain its existence and worth as well. Investigate the developer’s credibility. The bank did not charge for any inspection, but the inspection agent can ask for a fee. 

Preferential location charge 

Few builders do charge depending on the environment and the view surrounding the society or house. Living in apartments that are overlooking the sea will come with an extra charge for the higher floors. So one must aware of this aspect before looking for a home with preferred surroundings.

In addition to this, in case of resale, you may have to pay Transfer Memorandum (TM) charge to the local body or a transfer charge to the the association for transfer of property ownership. 

Home and Contents Insurance

It is common for homeowners to protect their homes and include contents such as expensive appliances with home insurance and continents policies.

Property insurance and charges vary on multiple factors such as property type, location, the value of contents, and so much more, so it is a good idea to compare different quotes. 

A Lawyer or Conveyancer fee

The legal process of buying a property includes complexations like managing the documentation and settlement of your property sale. Therefore, an expert is needed for a smooth process and property settlements, which could be charged accordingly to their standards. 

Conclusion

These extra costs put together can push up your house’s actual cost by 10-15%. While it is noteworthy fact that, the bank or lender will not include these costs while finalizing the loan amount. The sanctioned amount will be based only on the worth of the property valued on inspection. Thus, you must account for all these additional expenses while estimating the overall cost of the house and ensure their arrangements for them from the time you start planning.  

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Living costs in major cities in India

Every expense is a part of all financial arrangements made necessary to survive besides enjoying the comfort of lifestyle from the metro trams to roadside “Thekas”. This level of comfort costs certain expenses, which is an essential ‘subscription’ for your leisure time. However, the costs and expenses vary across every town, village, and metro city depending on specific lifestyles and circumstances. The data collected by PeProp Money highlights the cost of living in a few of the considerably ‘expensive’ cities of India.

The cost of living is referred to the basic expenses such as housing, food, taxes, and healthcare in a certain place and time. The ‘ cost of living index’ contrasts the costs in major cities with living costs in metropolitan areas. The index measures the overall costs by combining the expenses of various living expenses to provide an idea of cost standards to workforce entrants. As college currently employed job seekers and graduates compare employment alternatives and consider relocation, the index gives them a snapshot of rental, transportation, and grocery costs. One fun fact is, 4 out of 5 of the world’s most expensive cities for emigrants are now in Asia.

Here is cumulative data for the Cost of living of Metropolitan and metro cities of India –

Mumbai – Mumbai is the 6th most populous metropolitan region in the world to this day encompassing a population of over 23 million. Lifestyle is immensely varied in Mumbai. The lifestyle choices get altered with the type of property owned, the number of people residing under one roof, the mode of food choices, communication, and most importantly, the area of residence. Known as the city of ‘DREAMS’, the city comprises satellite settlements and metropolitan developments with a majority of the tenants and home seekers in its eastern and western suburbs. According to a survey, it would cost around Rs 900 for one’s meal in a ‘decent’ restaurant. A local metro costs around Rs 360 for monthly a transport pass. The monthly electricity bill and broadband connections add up to Rs 4819 (minimum). While the accumulated cost for the school is around Rs 2, 38,489 per annum. The cost of 1 BHK apartment ranges from 1.5 to 2 cr while the rental expenses cost around 2500 on average. In the posh localities, it might exceed 2.5 lakhs per month. However, a room on shared bases costs around Rs 10000 to Rs 20000 for a bachelor. Thus living cost in Mumbai ranges from Rs 40000 to 2 lakhs per month. Well, Mumbai,  thus named the financial capital needs no elaboration— the city fosters its dreamers with skyscrapers and warm breeze dense over the shadows.  

Delhi – “Delhi constantly has new offerings” this could be called the blatant truth if not for the distorted air quality. However, on the other hand, Delhi offers locations more likely to a ‘Delhi Wala’s’ heart than it can be imaginary for a Mumbaikar. It offers more spaces with an immensely growing population as well as growing commercial, financial, personal, and social needs, especially in youth. Delhi’s cost of living has become expensive. The living costs and varied expenses depend on the number of members, employment status, type of occupation, domestic services required wages, and overhead expenses. The monthly accommodation costs around Rs 10,000 for a bachelor. With a transportation cost of Rs  2500, groceries spending Rs 10000 to Rs 15000, and overhead expenses amounting to Rs 6000. Mayur Vihar, street, Vasant Kunj, and CP Park are a few of the prime localities. In contrast, Mumbai has a higher cost of living than Delhi to provide for a comparative degree, as the cost of accommodation rises. However, the overhead and transportation expenses are higher in Delhi. This differentiates the property value for both the cities and the difference of matter.

Bangalore – The city is a hub for IT Sectors, ‘Silicon Valley’ has become the new hub of the educational sector as well. The city offers economic opportunities for the entire world comprising all sorts of investments. Suggested to be one of the smartest cities, over the last decade Bangalore has experienced a revolution in the costs of living in every aspect of livelihood from profession of practice, the number of members in family, financial status, educational cost, utility necessities, especially in transportation and property size while weighing living cost. Monthly rent for a 1 BHK apartment would cost a minimum of Rs 11000 while a 2 BHK apartment would begin with the range of Rs 15,000-Rs 16000. The transport facility costs around Rs 1500 per trip. Electricity bills range between Rs 3000 to Rs 3500. Groceries and miscellaneous bills range from Rs 5000 – Rs 5400. The average cost of living lies between Rs 40,000 to 45,000 for a family including travel expenses. 

The domestic amenities in Bangalore seem affordable, it is noteworthy to pair up the services for an individual.

These three cities are hubs for the business sector however, the livelihood varies so do the prices for accommodation.

To conclude, A person relocating to prominent places needs a safe place to call it home. An individual must normally look for areas with. However, these areas offer a range within budget. An individual needs to shuffle and look carefully into the matters of property. Apps like PeProp Money offer a common platform for all property matters such as selection and comparison, contrasting all of the pros and cons of the property. The app offers an appropriate list of areas and the final cost of the property, as opted for by the dealers. The final deal is based on accounting for everything the location and the property offer. PeProp persists to expand the viewpoints of its readers through this article. 

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What are the benefits of paying rent via Credit Card?

Paying a house rent is an important and recurring monthly expense for an individual. Generally, the rental amount is paid by cash, online, or cheque by the tenants. However, paying rent via credit card is a new method, becoming popular due to the various advantages it offers, such as better flexibility in personal liquidity, cashback, and reward points.

Individuals have been using credit cards to spend for various purposes such as shopping, dining out, booking flight or movie tickets, and hotels. Along with these transactions, credit cards are now also being used to make rental payments.

It gives out benefits as against using cash, cheque, or online bank transfer to make rent payments, hence the market for such service is growing rapidly. Here are some of the advantages discussed of paying rent via credit card:

Provides financial benefits

An individual has the option of making a payment through various means, such as cash, debit card, credit card, online bank transfer, and Unified Payments Interface (UPI). However, several attractive financial benefits are offered by the credit card issuers such as Banking, Financial Services, and Insurance Sector (BFSI) companies to encourage their customers to use their credit cards over other payment modes.

Following are some of the benefits that a user may get on using a credit card for making a payment: 

Attractive and easy payment plans 

Majority of the time companies provide credit cards or even offer attractive payment plans. For instance, if you pay via their credit cards, they will provide you a 45-day interest-free period, which is practically free credit for more than a month. Since cash and cheques are more upfront modes of payment, such benefits can be availed only if the payment has been made through a credit card 

Rewards and points

A particular number of reward points is offered by BFSIs for spending a specific amount of money through their credit card. For instance, a certain BFSI offers four reward points for every Rs 150 spent on things such as insurance, education, utilities, and rent, with one of their credit cards.

Every credit card issuer provides a varied number of reward points according to their terms and conditions. You can redeem these reward points and can use them to purchase products on dedicated bank websites,  airline/travel/hotel websites, and e-commerce shopping platforms, depending upon the respective credit card issuer’s policy.

Note – You should check the reward policy of your card issuer and find out whether you are eligible to receive rewards for making rental payments.

Cashback offers

A financial benefit wherein a credit card user gets a set sum of money or a specified proportion of the transaction value back in cash. For instance, a well-known BFSI provides cashback of up to Rs 3,000 when rent is paid with their credit card for three in a row.

Gift vouchers

Gift vouchers are used as an alternative for cash, gift vouchers are used as an alternative to cash for purchases made in specified online or offline markets. Many companies give their clients gift cards to make transactions for a specific product or market.

Waiver on Annual maintenance charge/renewal fee 

Certain credit card issuers offer a partial or complete waiver of the annual maintenance charge/renewal fee (which can range between Rs 500 and Rs 2,500) on spending a minimum amount of money via their card.

For instance, a well-known Indian bank completely waives its annual renewal fee of Rs 2,500 (excluding taxes) for making transactions of more than Rs 3 lakh through their credit card. If you make your rental payments through a credit card, reaching such amounts will be easy and could result in significant savings.

Create a line of credit

Regular use of credit cards for transactions establishes a line of credit, which is a preset borrowing limit that can be tapped into at any time. The same is vital since it offers credit rating bureaus to view active credit history and gauge your creditworthiness based on your card usage and repayments.

On repaying of credit card dues on time and in full, will help in maintaining a good credit score making it easier to avail of a loan from a financial institution in the future, and at a competitive interest rate.

Note – Check over regular use over 30 percent of the provided credit limit to avoid any negative impact on your credit score.

Improvement in personal liquidity

The deferred payment system on a credit card allows you to use a credit card now and pay for your purchase/s later. When using credit money does not get deducted immediately from your savings account, therefore your bank balance does not get affected.

Naturally, you will need to repay the money later on. The company will allow you to pay a minimal amount for sometimes if you don’t want to make full repayments by charging a high-interest rate on that unpaid differential between the minimum amount you have paid and the outstanding bill amount.

You can pay your rent using a credit card and pay the dues later to the issuer in case of any emergency situations when you need to use the existing bank balance for other purposes than your monthly rent such as family or personal medical emergency, debt, and investment losses or any others. 

Lower the chances of delay in rent payments 

Delays for a few days in rent payment can raise questions in the landlord’s mind about your intent to pay the rent for the remainder of the lease. It could also negatively affect your relationship with them, limiting your chances to continue living in the same property and renew the lease.

Certain credit card companies provide the services of automatic payment of rent which helps to minimize the chances that you may forget to make payment while engaging with a number of urgent commitments. 

Ease in claiming the HRA benefits 

Several organizations provide their employees a certain amount of money as a  part of the salary package each month to pay their rental expenses. This part of the money, known as House Rent Allowance (HRA), can be used to claim a tax redemption by employees while filing their Income Tax Return (ITR). 

You will be required to provide your monthly rent receipts to your employer to claim such benefits. Making payments of rental expenses through the credit card acts as proof of rent payments to your landlord. Certain credit card companies provide the rent receipt generating service of paying rent through their card. You can use these receipts to show to your employer for claiming the HRA benefits.

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Nagpur NMCs rebate system fell short to encourage taxpayers to pay tax on time

The Nagpur Municipal Corporation’s (NMC) rebate system falls short to convince citizens to pay property tax, only 40% of taxpayers have made payments on or before December 31 and the remaining 3.92 lakhs have missed the chance to avail rebate, and will have to pay a penalty of 2% per month.

In the current financial year, the civic body’s data showed that the total demand for property tax increased to Rs 950 crore due to revaluation and reassessment drive carried out in the last few years. As per the earlier system of issuing demand in October-November, the NMC started to issue demand notes to all 6.5 lakhs taxpayers in April. 

Rs 256 was the demand for the current fiscal out of the total of Rs 950 crore. According to the rules the citizens have to pay tax on or before December 31 or will face a penalty of 2% per month. About 39.69% of the taxpayers paid the tax on or before December 31. Total recovery was Rs 145 crore, of which Rs 90 crore was for the current financial year and the remaining Rs 55 crore was arrears.

The target for the current financial year is to collect Rs 289 crore, but considering it to recover by December 31 seems a difficult task. 2.67 lakh (41.08%) citizens had paid tax on or before December 31 in the last financial year, which is slightly higher than the figure for the current financial year.

Municipal commissioner Radhakrishnan B launched a rebate system during the last fiscal to convince the citizens to pay taxes on time. As per the rebate system, citizens can avail 10 percent rebate if they pay tax between April 1 and June 30. NMC gives a 5% rebate if payment is received from July 1 to December 31. However, the rebate system fell short to make any changes to the collection. 

Around 82,332 citizens paid tax by June 30 and availed rebate of 10% in the current fiscal while 1,75,597 persons availed 5% rebate who paid tax between July 1 and December 31. 

Despite the civic body floating an amnesty scheme two years ago, the taxpayers did not pay arrears. NMC had offered an 80% waiver of interest, however, only 11% of defaulters had positively responded.

NMC deputy commissioner Milind Meshram told TOI that strict action would be taken against nonpayers. Tax is now NMC’s main revenue source for providing various civic amenities to the entire city, therefore citizens should take property tax seriously. Citizens delay paying taxes as much as possible, thinking that they will not face any penalty as it will be waived. NMC’s tax is less than even gram panchayats and grade-C municipal corporations like Amravati.

 “Most defaulters are big establishments and slum-dwellers. Earlier, NMC staffers used to collect tax by going door-to-door. Majority of people used to wait for staffers to come and pay tax. We changed this system to distribute demand notes online, manually, and allow payment of tax through non-cash systems including online payment. The number of taxpayers paying online is also on the rise”, an official said. 

The official added there is a rise in the number of taxpayers paying tax for current fiscal. However, arrears remain a major worry. “We had brought around 1.7 lakh open plots under tax ambit. We levied tax going back six years. Owners of these open plots are not paying tax, fuelling arrears. Additionally many are not obtaining the sanction of layout, building plans and occupancy certificate (OC), so they are not coming under tax ambit. We are hoping to increase numbers of those paying tax once mutation and assessment go online”.

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