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Home Authors Posts by Bhanu Sahu

Bhanu Sahu

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Talks about real estate and finance. Besides this, he is an eternal optimist , he loves to explore new heights and worships nature.

Lease guarantee in rental buildings: What is it?

    In commercial real estate, the term “lease guarantee” is frequently used for rental buildings. Its goal is to give investors some security about the rental income they would get from their investment in the commercial property. Lease guarantees are provided by independent businesses or the developer directly through a tie-up for a specific time frame. 

    What does commercial property lease guarantee mean?

    The idea behind a lease guarantee is for the investor to provide the developer with a fixed-term lease on his commercial property. A monthly rental revenue is promised either by the developer alone or jointly with a third party. A typical business lease term is nine years long, including a three-year lock-in period. This approach is used to attract investors or allay worries about potential dangers associated with rental revenue. Stable income is often only guaranteed for a certain amount of time under lease guarantees. Depending on the conditions of the arrangement, it may be anything from a few months to several years.

    The lease guarantee pays the rental income when the property is vacant. In most situations, the developer who provided the guarantee will reimburse the landlord for any lost rental income, subject to any conditions or restrictions that may have been stated.

    It’s vital to remember that lease guarantees are distinct from the typical lease contracts that landlords and renters enter into. These are additional measures intended to give property owners financial stability. The terms and circumstances of lease guarantees can, however, differ greatly between service providers. Hence, it’s essential to carefully analyze the agreement and comprehend the limitations, exclusions, and any related expenses.

    Pros aspects of lease guarantees for commercial properties

    For property owners, lease guarantees can have both advantages and disadvantages. Consider the following probable benefits and drawbacks:

    • Consistent rental revenue: The promise of a steady rental income is one of the key advantages of lease guarantees. During the guarantee term, landlords are paid the agreed-upon rental sum regardless of tenant occupancy or financial capability.
    • Risk reduction: Lease guarantees offer some degree of security against the monetary risks connected with rental properties. By ensuring landlords have a safety net, they can lessen the effects of vacant or unpaid rent.
    • Encouraging investors: Lease guarantees are frequently used as an incentive by real estate developers and third-party guarantee providers to draw in investors. The guarantee can be considered an added benefit that gives investors assurance about possible returns and allays their worries about varying rental revenue.
    • Ease of management: Lease guarantees provide reassurance for landlords who want to take a hands-off approach or are new to the rental sector. They are able to concentrate on other facets of property management or investment plans since they are confident that their rental revenue is stable.

    Cons of commercial property lease guarantees

    The following are some drawbacks to purchasing commercial real estate:

    • Perhaps more expensive: Apartments with lease guarantees typically cost more than the going rate. The developer either levies a fee or absorbs the expense as part of the final selling price. Investors should carefully consider whether the guarantee’s cost justifies the rewards earned.
    • Limited flexibility: Lease guarantees may include particular terms and conditions, such as limitations on rental rates, tenant selection, and property management. During the guarantee period, landlords have little control over these factors, which may affect their overall approach or preferences.
    • Variable guarantee terms: Suppliers differ substantially between the conditions and scope of lease guarantees. It is essential to carefully read the agreement to comprehend any restrictions, conditions, or exclusions that can affect the guarantee is effectiveness.
    • Dependence on guarantee provider: Landlords who rely on lease guarantees must take into account the provider’s financial standing and reputation. The landlord might not receive the anticipated security against loss of rental income if the provider breaches the guarantee.

    Lease guarantees may also create new legal difficulties and issues. Verifying the guarantee agreement’s provisions and getting legal advice is crucial to ensure that it complies with local laws and regulations.

    Is a lease guarantee the better option?

    You can invest in a business property with a lease guarantee if you want to play a more passive role in managing the property or don’t have much experience dealing with tenant-related difficulties. As the guarantee provider manages the rental collection and any potential concerns relating to non-payment or default, it enables the investors to take a hands-off attitude.

    Having a home with lease assurance might be a marketing benefit in competitive rental markets. It can improve the property’s appeal, help recruit eminent tenants, and allay any tenant worries.

    What justifies developers offering a lease guarantee?

    Developers give lease guarantees when they want to use the facility for their own ventures. The developer may also rent out the space to franchises and brands by providing investor lease guarantees. The developer makes a profit along the way, even after selling the asset, by collecting a higher price and paying the investor a specific sum each month. However, the investor is spared the trouble of doing their own tenant screening. Developers leverage their connections to secure well-known brands, raising the asset’s face value.

    Do the rental guarantee and lease guarantee differ?

    There is, in fact, a distinction between these two names. A rental guarantee often called a rent guarantee or rental income guarantee, is a kind of financial agreement or insurance policy that guards landlords against the possibility of rent default or non-payment by tenants. It gives investors financial protection and guarantees that they will continue to receive a stable rental income even if their tenants are unable to make payments.

    Lease guarantee properties, on the other hand, are ready-to-move commercial buildings that come with a guarantee that the developer will get a tenant or pay a set sum until the tenant is settled. It includes precise stipulations, including the length of the lease guarantee.

    Investors should be aware that balancing the potential benefits against the related expenses, restrictions, and dangers is crucial when assessing lease guarantees. If a lease guarantee is a good choice for a property owner, it will depend on their unique situation, their financial objectives, and the state of their local rental market. It is advised to speak with a real estate expert or attorney if you are thinking about purchasing a commercial property with a lease guarantee. They can offer specialised advice depending on your situation and the local rules and laws that apply to rental guarantees in your area.

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    Purchasing a Distressed Property: Evaluating the Risks and Opportunities

    Purchasing a distressed property

    When looking for a home, you can come across too-good-to-be-true bargains at auctions or “distressed properties,” which are typically listed at a price significantly below the market. You should think twice before buying a property, despite how alluring it may seem. Instead, find out why the seller is trying to sell it quickly and whether it would actually be a wise and lucrative investment.

    First and foremost, you must comprehend what distressed possessions or sales are.

    What is a distressed property?

    Banks are permitted to sell “repossessed” or distressed properties at auction to recoup their losses under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002. These losses occur when a property owner doesn’t repay a loan. A property is classified as distressed when the bank seizes it for the purpose of selling it for less than market value. The banks reclaim the outstanding loan against the owner using the sale revenues of the property.

    Distressed Property

    Banks typically use an official advertisement specifying the auction date to solicit offers to purchase foreclosed homes. They consider all of the offers before choosing who to sell the property to.

    Moreover, distressed sales take place when the seller urgently attempts to sell the property at a price below market value, typically to pay debts, cover medical costs, or handle other problems.

    Developers who are hampered by unfavorable market changes, such as the implementation of escrow accounts under the Real Estate (Development and Regulation) Act of 2016, frequently sell troubled properties in bulk (RERA).

    Homebuyers should carefully consider distressed properties or sales in order to make a secure investment because they frequently result in losses for the sellers.

    Key features of distressed property

    You must determine if you are engaging in a distressed sale prior to making the purchase decision. While making a decision regarding a property up for auction is simple, doing so for individual transactions is more difficult. So, you need to be aware of the essential characteristics that set distressed houses apart from others. A more cautious approach to the home-buying decision must be taken when two or more of these criteria are present.

    Outstanding mortgages 

    Failure to pay the principal and interest on the mortgage frequently results in the property becoming distressed. The bank then seizes the property to recoup the loan. In order to ensure that the

    Concessional cost

    The price of distressed properties is often at least 30% below market value. One key characteristic that sets distressed real estate apart from regular sales is this: Always ask the seller why they are willing to sell the property at a loss; this will reveal a lot about the condition of the property.

    Required house improvements

    Since distressed properties require high taxes and mortgage payments, they are typically a problem for the owner. The property is neglected, resulting in declining quality and integrity. You must be prepared to pay a hefty price for the upkeep and repairs of such a home.

    Overdue taxes

    Due to the owner’s severe financial difficulties, a distressed property may have some tax liens attached to it. A tax defaulter is also probably not financially stable enough to pay their mortgage. Thus, it is a good indication of a distressed sale since someone who is plagued with unpaid taxes would be more eager to sell quickly.

    Once you’ve determined that the property is in distress, you can bargain with the seller better. Always be on the lookout for additional incentives and attempts to demonstrate the property’s value to you, as they may indicate the homeowners’ urgency to sell the property!

    How to find a distressed property?

    Distressed properties are easy to find if you know where to look. Here are some methods for finding distressed properties that are within your means and will sell for a profit if you decide to sell them later. 

    Look for abandoned properties 

    Look for homes in complete neglect if you’re specifically looking for distressed real estate. The bank’s foreclosure on the property is the most frequent cause of an owner giving up on maintenance. If this information proves accurate, you can anticipate that the owner will sell the property without engaging in lengthy negotiations or requesting that the bank hold an auction. 

    Bank auctions 

    Bank auctions of distressed or other foreclosed properties are typically publicized 30 days prior to the auction through an official advertisement in a newspaper or on the bank’s website. You must submit a sealed bid to the bank and a minimum reserve sum in order to submit a bid for the property. The bank holds the auction after the bid period closes and sells the property to the highest bidder. A few websites display the properties put up for auction by various banks in their capacity as aggregation portals. 

    Sale before foreclosure 

    Pre-foreclosure is similar to a grace period during which the lender warns the homeowner who has fallen behind on their payments to take action to save their home. State regulations decide the length of the grace period, which varies across the country. This is seen as a favorable time for the buyer to approach the property owner and make a reasonable offer to acquire the property. 

    Hidden foreclosure sale 

    These are newly constructed, expensive properties that have been put up for foreclosure due to a lack of advertising. They are unlikely to be found in any open newspaper listings or websites. Typically, real estate professionals knowledgeable about foreclosure sales are able to provide information on these exclusive listings. You might have just discovered a concealed foreclosure if a real estate agent shows you a brand-new property that was built a few years before the show date and has never been occupied. 

    Check these documents before purchasing a distressed property

    You must ensure that the ownership of the property is clearly established by looking at the documentation, given the danger involved with distressed properties. A risk-free investment is one that is devoid of monetary conflicts and legal difficulties, whether it involves distressed property or not. So, you must verify that these documents are in place whether you are acquiring from an individual or a bank in the case of an auction, regardless of who you are buying from.

    Document checklist 

    Title of the property 

    Typically, a bank will confirm that the property titles are clear before holding an auction to sell the property. However, greater competition to sell off such properties could result in mistakes, particularly in houses still being built, when the developer might deviate from the approved plan. The documentation is even more crucial if you buy from a single vendor because there is a higher likelihood of fraud.

    The sale deed

    The buyer must obtain the original sale deed for the property, together with genuine receipts attesting to the transfer of the complete purchase price to the bank.

    Timeline of possession

    If the property is still being built, carefully check the delivery date and the associated fines in case the builder later fails to meet the deadline.

    lease agreements

    Checking the lease agreements and their expiration dates is essential when purchasing a pre-leased asset in order to evaluate its potential financial future.

    Development sanctions

    Check for encroachment, development authority approvals for structural development, and municipal authority essential power and water supply sanctions.

    Certificate of Recovery

    The bank running the auction needs to have a Recovery Certificate (RC) granted by the Department of Financial Services’ Debt Recovery Tribunal (DRT). Banks and financial institutions are permitted to hold foreclosure auctions under the RC.

    Asset reconstruction company

    These organizations are experts at holding bank-sponsored auctions of foreclosed properties. Be sure these businesses are associated with a reputable public sector financial institution by checking their qualifications. One such private company that does out this is The Asset Reconstruction Company (India) Ltd.

    Pros and Cons 

    Given their low capital prices, bank-repossessed distressed properties could seem like the perfect investment, but they also have a number of disadvantages. Undiscovered liabilities, such as unpaid fees or legal issues may hamper a good property deal. You must assess the advantages, disadvantages, risks, and opportunities of purchasing distressed property before making a decision.

    Pros

    • Due to the owner’s typically high level of urgency to sell the property, distressed property prices are typically low. Price negotiations will typically result in the buyer winning when dealing with a hasty seller.
    • While there is no such certainty in real estate, distressed properties do have some value as investments. On the other hand, the most recent government reforms may make purchasing a foreclosed property profitable in the near future.
    • If you keep up with bank auction listings, you may be able to purchase a home in a desirable neighborhood.

    Cons

    • Liabilities like delinquent taxes may be associated with distressed properties. The bank takes these factors into account when determining the base auction price for property purchased pursuant to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.
    • When they anticipate losing their property to the bank, the owners of these properties frequently cease maintaining them. A home needing repair could need the new owner to spend a lot of money.
    • Negative returns on your investment are not always guaranteed with distressed homes. Such a property’s price will not be able to increase by a significant amount if the market does not drastically improve.

    There are plenty of competing interests and profitable opportunities in distressed properties. The following list of dangers associated with purchasing foreclosed homes includes some benefits as well:

     

    Risks

    Opportunities

    In the real estate market, distressed homes make up a very small percentage and are typically very difficult to find.

    However, distressed properties are typically offered at bargain prices.

    You might have to go over your budget to hire a real estate expert specializing in distressed properties.

    Buying a property in a desirable area could increase its resale value. 

    Since it is impossible to predict the highest bid in an auction, your budget might prevent you from placing a high enough bid.

    Reputable banks conduct the auctions, so there is no risk of the builder failing to deliver.

    You might run into trouble if the property’s original owner sues you and the bank.

    You are free to forego seeking legal counsel in this matter because it is unlikely that a bank would not have performed adequate checks on the property before the auction.

    Advice on purchasing a distressed property

    If affordability is important to you in achieving your real estate dreams, distressed houses are a good choice. The majority of the time, banks that seize these properties want to clear them off their list of liabilities as soon as possible. As a result, many properties can be purchased for far less than their market value. With these deals, you may secure some prime properties with a well-rounded arsenal of effective strategies. You could utilize some of these:

    Find a skilled agent

    Many issues are peculiar to distressed real estate. Therefore, hiring a real estate agent or property consultant with experience managing such properties is advised. For prospective real estate agents or those already working in the field who desire to specialize, the National Real Estate Development Council (NAREDCO) offers certification courses. If an agent has this accreditation, consulting with them regarding distressed properties is a good idea.

    Avoid clusters of distressed homes

    It might be wise to invest the proper amount of repair and upkeep work into a distressed home that you purchase for a pittance. Yet, if the house you purchase is situated in a neighborhood with little to no market traction, all of these efforts will be for nothing. Frequently, distressed homes from the same neighborhood are auctioned off together. Make sure not to participate in such a trade.

    Professional home inspection

    In contrast to a typical home sale, the seller of a distressed property does not work on the property’s damage repair. Enlisting the assistance of a home inspection organization can give you a decent sense of the kind of repairs that need to be made and how much money you might need to spend on them. The House Inspection Association of India (HIA) website can help you check the credibility of any home inspection business you want to hire.

    Understand the law

    The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, regulates the sale of foreclosed property, including distressed properties. To properly understand the bank’s process for selling the house, you must be knowledgeable of every part of this Act and the Security Interest (Enforcement) Regulations, 2002. In the scenario where a person sells the property on their own, you need to exercise extra caution regarding these rules.

    Make a high down payment 

    Before deciding to purchase a foreclosed property, you must ensure your finances are in good condition. A large down payment on a home conveys your seriousness regarding the purchase to the seller. 20–25 percent of the home’s asking price should be used as the down payment.

    Good negotiating skills

    As the buyer, you do have some negotiating power in cost negotiations with the bank, lender, or seller of a distressed home. You can request an appraisal of the property from the lender. If the price determined following the appraisal is less than the market price, you can attempt to convince the bank to accept a lower offer.

    legal issues

    The former owner may attempt to delay the sale by suing the bank when the bank is prepared to sell the distressed property. If the matter goes to court as you are about to buy the house, you can find yourself paying a hefty sum for legal advice. Dealing directly with the owner is therefore advised because there won’t be a third party with a stake in the sale attempting to sue the seller.

    Competitive bidding

    Set a limit for yourself while competing for foreclosure while taking your budget, the number of additional charges, and the type of financing you want to stick with into consideration. The fact that the bank selling the property won’t finance it is a crucial factor to take into account here. You must, therefore, prepare your selections in advance. You should constantly be mindful of two things: first, the bank is not emotionally linked to the property and does not have unreasonable expectations about the price. The institute also loses money each day, and the property is on hold.

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    How can I rent a house to a bank?

    If you’re thinking about renting your property to a bank, you need to figure out certain things first. You’ll have to consider the bank’s specific needs and make sure your property meets their standards. 

    This article will give you all the details you need to know about how to go about renting your property to a bank. You’ll find out what documents you need to have and how to check if your property is the right fit. As a property owner, it’s important to take these steps before approaching a bank to rent your property.

    Considerations before renting your property to a bank 

    When you’re thinking about renting out your property to a bank, there are a few things you should keep in mind:

    Identify your target audience: Figure out which banks might be interested in your property. Some banks need bigger spaces while others prefer smaller ones, so it’s important to know which banks are looking for what. You can check out their websites or stop by their branches to get an idea of what they’re looking for.

    Get your property ready: Once you know which banks might be interested, it’s time to get your property ready. Make sure it’s clean, well-maintained, and in good condition. You might also want to consider making some minor repairs or updates to make it more appealing to potential tenants.

    Prepare a proposal: Put together a proposal that includes all the important details about your property. You’ll want to include its-

    • location 
    • size 
    • rent expectations 
    • availability of parking 
    • security features 
    • proximity to public transportation

    Contact bank: When you’re ready, reach out to the banks to let them know you’re interested in renting out your property. You can call them, visit their branches, or send them an email. Just be sure to introduce yourself and share a copy of your proposal.

    Follow-up: It’s important to follow up with the banks regularly to show that you’re still interested in renting out your property. Keep in touch and stay on their radar by communicating regularly.

    Assessing property suitability for renting to a bank

    It’s super important to make sure you’ve got everything sorted before you ask a bank to rent out your property. Here’s a list of things to keep in mind:

    Property Size: First things first, check out the size requirements for the bank branch or ATM on the bank’s website. Make sure your place fits the bill.

    Location: It’s best if your property is in a commercial or mixed-use complex. Banks love places that are easy to get to and have lots of people walking by.

    Legal clearance: You need to make sure your property isn’t tangled up in any legal disputes. Nobody wants to rent a place that’s got a bunch of problems going on.

    Documents: Keep all your property papers – things like the title, allotment letter, tax receipts, and encumbrance certificate – handy in case they want to check them out.

    Municipal Approval: You’ve got to have all the right permissions and approvals from the local government.

    Lease terms: You need to know about the terms and conditions for renting a commercial place. That includes things like the amount of rent they’ll pay, the length of the lease, who’s responsible for maintenance, and anything else they want to discuss.

    Documents required to rent a property to the bank

    If you’re thinking of renting your property to a bank, you’ll need to make sure you’ve got all the right paperwork. Here’s a list of the documents you’ll need:

    Title deed is a legal document that proves you own the property. It contains all the important details, like what the property looks like, who has owned it in the past, and whether there are any rules or restrictions on it.

    Property tax receipts are just documents that show you’ve paid your property taxes. The bank will want to see receipts for this year and last year.

    Floor plans are just pictures that show what the property looks like. The bank will want to see these to determine its size and interior appearance.

    Encumbrance certificate is a document that shows the property has no legal or financial issues, such as mortgages or legal disputes.

    Renting your property to a bank can be a great way to make some money long-term, with low vacancy risks and a reliable tenant. Just make sure you’re ready for it and have all your documents in order before you start.

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    Term Insurance vs Life Insurance

    Many people find life insurance attractive, but not all life insurance is the same. Term insurance is a crucial kind of life insurance that offers protection for a predetermined period of time.

    Life insurance is a crucial component of financial planning because it enables you to protect your assets for the duration of your life and after. It is a contract that assures the beneficiary of the death benefit in the event the policyholder passes away while the policy is still in effect.

    Life insurance is a legal agreement between you and an insurance provider that provides a guaranteed sum of money in the event of your demise. Your policy will typically have a term (the period of time during which you are covered), which can be anything from 10 years to the duration of your life expectancy.

    When compared to whole-life or universal life insurance, term insurance pays out less money over a longer period of time.  However, if you want to make sure that your family can continue their standard of living without worrying about having enough money for retirement in the future, it might still be something to think about. 

    Understanding Term and Life Insurance

    Here is a brief overview of term and life insurance plans:

    Term Insurance Plan

    Term insurance is a type of financial product that guarantees a certain sum for a particular time and is more affordable. The policyholder pays the premium for this coverage, but no additional payments are required throughout the term.

    Additionally, the majority of term insurance policies have a guaranteed minimum amount. This means that even in the absence of a claim or the occurrence of a covered event during the term of coverage, the insurer promises to pay at least this sum. 

    Life Insurance Plan

    Life insurance Plans are a great way to safeguard your family in the event of an untimely passing. Additionally, life insurance policies can assist you in creating a financial cushion for you and your dependents so that they will have security in the event of your untimely death.

    Life insurance Plans are made to cover you and any dependents you might have for the rest of your life. Many insurance policies also include death benefits that can be used to cover funeral costs and other related costs if you pass away early as a result of an illness or accident.

    The most crucial aspect of purchasing a life insurance policy is comprehending the scope of the coverage you are purchasing. Additionally, you want to make sure that all of your dependents are adequately protected so that they won’t be left without any money or savings in the event of an untimely death. 

    Life insurance and term insurance have different benefits.

    In contrast to term insurance, which offers coverage for a specific time period, life insurance provides coverage for you and your family in the event of your death.

    In general, term insurance is less expensive than life insurance. Because of this, if you pass away while the policy is active, your family will be less financially burdened. They can also benefit your family and are customized to your needs. The distinction between a term plan and life insurance will be thoroughly explained in this article.

    Overview of Term Vs. Life Insurance

    The comparison between term and life insurance is shown in the table below:

    Difference

    Term Insurance

    Life Insurance

    Coverage

    Only premature death

    Both premature death and survival until the policy tenure

    Premiums

    Low and affordable

    Higher rates

    Maturity benefit

    Usually not payable

    Mostly Payable

    Death benefit

    Payable

    Payable

    Term

    10 to 35 years

    5 to 30 years

    Paid-up/Surrender value

    No, paid-up value or surrender value

    A paid-up value is acquired by the plan if premium payments discontinue after a predetermined number of years, and a surrender value is paid if the plan is surrendered after that.

    Flexibility

    Not Flexible

    Very Flexible

    Let’s take a closer look at the points mentioned above.

    Coverage

    While term insurance gives the policyholder a cash benefit, life insurance gives the beneficiary a death benefit. Additionally, it provides coverage for the policyholder’s untimely demise during the period of time outlined in the policy document. Contrarily, life insurance provides coverage for both death before the policy’s maturity and continued life after it. 

    Premium

    Since life insurance policies cover the entire life, the premium is typically higher than for term insurance.

    Coverage Duration

    Term insurance coverage can last between 10 and 35 years, whereas life insurance coverage has a fixed duration of 5 to 30 years.

    Bonus and Additional Payments 

    After you have paid your premiums for at least one year, life insurance companies will typically add a bonus to your policy. The majority of the time, term plans don’t provide any bonuses or extra benefits.

    Under term insurance policies, the basic sum assured will be paid in the event of the insured’s demise. There are other life insurance plans, though, where bonuses, guarantees, loyalty bonuses, and other benefits can be added.

    Paid up and Surrender

    The process of applying for term insurance involves surrendering your current whole life insurance policy. There is no acquisition of paid-up or surrender value.

    In life insurance plans, if premium payments are discontinued after a predetermined period of time, the plan becomes paid up. Any later surrender results in payment of a surrender value.

    Flexibility

    Due to the lack of a surrender value, paid-up value, and maturity benefits in term insurance, whole life insurance policies are more flexible than term life insurance policies.

    Conclusion

    The two most important types of financial plans adopted by citizens of any nation in order to live peacefully are term and life insurance. So, their primary purpose is to improve the security and safety of our lives.

    The main distinction between term and life insurance is that the former offers protection for a set time (the term), whereas the latter offers protection throughout your lifetime. So, whatever insurance plan you choose, make sure it meets your needs.

    Disclaimer: Access to the content on this internet page is provided by iPropUnited as a courtesy to the public service for educational reasons based on related news and stories. The accuracy of any information on this website cannot be guaranteed, however, it is all believed to be credible.

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    Transform Your Home’s Hall with These Expert Interior Design Tips

    The hall is the heart of any home or office, and a showcase is an essential piece of furniture that adds to its beauty and functionality. The right showcase design for the hall can make a huge difference in the overall ambiance and functionality of the space. Here are some tips to help you choose the perfect showcase design for your hall.

    Size and Proportion:

    The size of the showcase should be in proportion to the size of the hall. An oversized or undersized showcase can make the space look awkward and unbalanced. A general rule of thumb is to choose a showcase that is about two-thirds the width of the wall it will be placed against.

    Style and Theme:

    The showcase design should complement the style and theme of the hall. If the hall has a modern decor, a sleek and minimalistic showcase would be appropriate. On the other hand, if the hall has traditional or rustic decor, a showcase with intricate carvings or a distressed finish would be more suitable.

    Material and Finish:

    The material and finish of the showcase play a significant role in its durability and aesthetic appeal. Wood, glass, and metal are the most commonly used materials for showcases. While wood showcases have a classic look and feel, glass showcases are modern and sleek. Metal showcases are durable and easy to maintain. The finish of the showcase should also be considered. A glossy finish can make the showcase look elegant, while a matte finish can make it look more subdued.

    Lighting:

    Lighting can enhance the beauty and functionality of the showcase. A warm and welcoming atmosphere can be created in the hall and the contents of the showcase can be brought to light. Consider adding LED lights or strip lights to the showcase to create a dramatic effect.

    Storage and Display:

    The showcase should provide ample storage and display space for your belongings. If you have a large collection of books, a showcase with built-in bookshelves would be ideal. If you have a collection of curios, a showcase with glass shelves would be perfect.

    Accessibility:

    Accessibility is an important factor to consider when choosing a showcase design for the hall. The showcase should be easily accessible to everyone in the house or office. If you have children or elderly people in the house, consider choosing a showcase with sliding doors or lower shelves.

    Budget:

    The budget is an important consideration when choosing a showcase design for the hall. Showcase prices can vary greatly depending on the size, material, and design. Set a budget before you start shopping for a showcase and stick to it.

    You can make an informed decision that will enhance the beauty and functionality of your space by following these tips. Consider the size and proportion, style and theme, material and finish, lighting, storage and display, accessibility, and budget before making your final choice. With the right showcase, your hall will become a space that you will be proud to show off to your guests.

    Trending Showcase Design for Hall with Pictures

    Are you on the lookout for the best hall showcase designs? The following are 14 of our showcase designs for a hall that is both elegant and functional, complete with images.

    1. Placing a vintage wooden Showcase

    You can go for wooden and glass showcases carved with beautiful aesthetic designs in order to give your room a vintage and older appearance. The living room’s elegant design is complemented by the opulent furniture and sleek wooden cabinets. 

    2.  Trophy Rack Edition Wooden Showcase for Hall

    The wooden showcase in this horizontal rack for the hall is a modern take on the conventional trophy shelf. Because of its rectangular one-side open box shape and sliding glass panels, it’s perfect for showcasing journals, fine china, and other small items.

    3. Modern Designs for Modular Showcases in Hall

    These modular designs have become increasingly popular in recent years due to their adaptability and variety of finishes. If you want a durable and adaptable storage option for your hall, you can consider this modular display case for something simple and refined. You certainly know where to place your trinkets in this showcase, there’s no question about that. 

    4. Double Tower Bookshelfs

    These two tall vertical bookcases are balanced by the two tiers of horizontal storage. There is a use of light beechwood laminate that gives a Scandinavian feel to it, and the closed cabinets provide additional storage space. 

    5. Minimalist Adjustable Racks Design

    As the name suggests, the entire right corner of the living room is devoted to an adjustable shelving rack. Collectables can be displayed on these flimsy shelves, which can be customised in terms of shelf height to suit your needs. 

    6. Photographic Wall Showcase Style

    A wall showcase for photos is a great way to display your cherished memories and add a personal touch to your home decor. Here are some tips for creating a beautiful and stylish photo display. You can use a variety of frames to add visual interest to your display. You can use identical frames for a cohesive look or mix and match frames in different sizes and styles.

    7. Floating Showcase Design for Hall

    Floating showcases are an excellent addition to any hall or living room, adding elegance and functionality to the space. The design of a floating showcase involves mounting a display unit onto the wall without any visible support structure, creating a sleek and modern look. When designing a floating showcase for a hall, there are several factors to consider. The first is the size of the display unit, which should be proportional to the space and the objects to be displayed. It is important to strike a balance between the size of the unit and the available wall space to avoid overcrowding or underutilization of the wall.

    8. Simple Vintage Floating Showcase

    A simple old floating showcase is a type of display cabinet that is designed to hang on the wall without any visible means of support. These showcases were popular in the mid-20th century and were often used to display collectibles, antiques, or other prized possessions. The showcase itself is typically made of wood or metal and has a glass door that allows you to see the items inside. The door is often hinged at the top or bottom, allowing it to swing open for easy access. The interior of the showcase may be lined with velvet or another soft material to protect the items inside.

    9. Wall Showcase Partition

    If you are looking for a unique way to divide your hall space while also adding a touch of rustic charm, a wooden wall showcase partition might be the perfect solution.  You can choose reclaimed wood panels of varying sizes and textures and mount them vertically to create a rustic partition. Add a few shelves to display decorative objects, such as plants or vases.

    10. Wooden Hexagonal Showcase for the Hall

    If you want to add a unique touch to your hall decor, a hexagonal showcase might be the perfect solution. Choose a hexagonal display case made of glass to showcase more delicate items such as collectibles or fine china. This design creates a visually interesting display for small decorative objects like candles, picture frames or vases.

    11. Cement Hall Showcase Designs

    Cement showcase designs are a modern and sleek way to add storage and style to your home. Cement showcases can be used in a variety of rooms, including the living room, bedroom, and office, and are perfect for displaying your favorite books, art, and collectibles. One popular design for cement showcases is a minimalist, geometric design. These showcases often feature clean lines and sharp angles, creating a modern and contemporary look. The cement material adds a touch of industrial style and durability, making it a great choice for high-traffic areas.

    12. Hallway Showcase Design Ideas in the Indian Style

    A vintage Indian showcase for a hall is a magnificent piece of furniture that adds a touch of elegance and grandeur to any living space. Typically made of wood, this showcase features intricate carvings, ornate details, and a luxurious finish that reflect the rich history and culture of India. The showcase typically has glass doors and shelves that display various items such as fine china, collectibles, or family heirlooms. The back of the showcase is often lined with a decorative fabric that adds to the overall beauty of the piece.

    13. Glass Showcase Designs for Hall

    Glass showcases are an excellent way to display your collection or items of importance in your hall. They offer a clear view of the items inside while also protecting them from dust, dirt, and other environmental factors. Glass showcases come in various designs and sizes, and choosing the right one depends on your style preference, budget, and the items you want to display. In this article, we’ll explore some glass showcase designs that you can consider for your hall. Wall-mounted glass showcases are perfect for those who want to save space in their hall. These showcases are attached to the wall and come in various sizes and shapes. They are an excellent option for displaying small items like jewelry, trophies, and other collectibles. Wall-mounted glass showcases also come with LED lights, which add an extra touch of elegance to your collection.

    14. Glossy Embellished Wall Showcases for the Hall

    These “fancy” showcases have textured glass and shelves, are eye-catching, and come in a variety of color schemes. With mosaics and other unique materials, fancy design, and lighting niches, decorative showcases are statement pieces in and of themselves. The aesthetic appeal of the treasures they house is enhanced by them.

    You spend most of your time in the hallway. Using an appealing showcase design, you can turn your dull hall into a warm and welcoming area.

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    Do Apartments on Higher Floors Cost More?

      When it comes to buying a residential unit in India, the floor or level of the apartment is a crucial factor for many homebuyers. While it is a common notion that apartments on higher floors command a premium price, the reality is that the value of these units may vary across locations. The surroundings of the project and the climatic conditions of the area may also play a vital role in determining the price of apartments on higher floors.

      The growing population in the metro cities and the limited land availability has led real estate developers to opt for vertical expansion. Consequently, high-rise structures have become a popular choice among buyers. Not only does it help developers build more units on a smaller land area, but it also provides uninterrupted city views to the residents. However, the assumption that apartments on higher floors are always expensive may not hold true. The location of the project and the topography of the area, along with the climatic conditions and the surroundings, can significantly impact the value of apartments on higher floors.

      To help you make an informed decision, we have compared two popular metro cities – Delhi and Mumbai. This comparison will provide you with a better understanding of how the floor level of a unit influences its price.

      Apartments in Delhi

      In Delhi, the trend of residing in apartments is not as common as it is in Mumbai. The majority of people in Delhi prefer independent houses or builder floors with 3 to 4 levels erected above the ground floor, which are known as G+3 or G+4 builder floors. This preference is largely motivated by the frequent occurrence of earthquakes in Delhi. Additionally, with commercial development being spread widely across areas in Central Delhi, Gurgaon, and Noida, Delhi has not experienced any significant space crunch that would necessitate vertical construction. The availability of land parcels at competitive prices, particularly in comparison to Mumbai, has traditionally shaped the housing demand in Delhi in favor of independent houses and builder floors.

      Furthermore, Delhi experiences a continental climate, which makes summers extremely hot and unbearable. Since the lower-floor units are flanked by buildings on both sides, they receive less sunlight penetration, especially in the afternoon, as compared to the upper-floor units. This way, a ground-floor unit remains cooler during summers, reducing the dependence on air conditioners (AC) and utility bills.

      Another significant factor is that lower floors offer better rental returns because Indians, in general, and Delhiites, in particular, prefer to live closer to the ground. This demand has led developers to charge a 5-10 percent premium for lower-floor apartments compared to high-rise developments in Delhi.

      Apartments in Mumbai

      Mumbai, India’s bustling metropolitan city, is known for its high-rise buildings. With land being both scarce and expensive, developers have no option but to build vertically. Living on the top floor of these high-rises has its own charm, as it offers breathtaking views of the sea and beaches, giving residents a peaceful escape amidst the chaos of city life. However, developers in Mumbai impose higher charges for higher floors and location preference. Since there are no set rules governing these charges, developers may charge an exorbitant additional price per square foot for a unit’s super built-up area.

      Living on lower floors in Mumbai can be a challenge, as the streets are often congested and noisy, making it difficult to maintain privacy. Security is also a concern, as ground floor units or lower floor apartments tend to pose a higher risk of burglary. Hence, most homebuyers prefer higher floors to avoid external noise levels and maintain better security.

      Mumbai’s climate, characterized by recurring rains, is another factor to consider. Ground floor units are often poorly ventilated and suffer from floods and insect infestations during monsoons. The high levels of ambient humidity and latent heat levels in these units can be uncomfortable for residents.

      Shashank Vashistha, Executive Director of eXp India, states that both Mumbai and Delhi are prime real estate destinations in India. In Mumbai, higher floors are more valued as builders charge preferential location charges for unrestricted views of the city and the breeze. These properties are usually priced at least 3-5% higher than other residential units in the same project. 

      In Delhi, lower floors are in high demand, and therefore, are more expensive. However, some high-rise projects in South Delhi and Gurgaon are now charging preferential location charges on higher floors and penthouses too.

      Cost of constructing residential units

      When it comes to high-rise buildings, ensuring the safety and structural integrity of the architecture is of utmost importance. Sanjeev Chandiramani, the Chief Operating Officer of Ruparel Realty, explains that constructing higher floors requires advanced technological engineering to maintain the optimum load capacity and ensure the safety of the residents. However, this process can be quite expensive and result in higher prices of the apartments.

       

      Things to consider when canceling a flat booking

      Canceling your flat booking may seem like a good idea when you face project delays, changes in development plans, and financial distress. The thing is, canceling isn’t as simple as it sounds. It’s a pretty complicated and lengthy process. That’s why we’re here to give you some insight into canceling your property registration. We’ll also tell you about your rights as a buyer and other important things you should know.

      The real estate market has been going through a rough patch, which has made many buyers and investors rethink their decision to buy property. Sometimes, people book an apartment in excitement, but later on, for some reason or another, they can’t go through with the purchase. According to property consultants, most cancellations happen because buyers reconsider their financial situation. Project delays are another common reason. So, if you’re in a situation where you need to cancel your flat booking, here are some key things you should keep in mind.

      How to cancel a flat booking?

      Many individuals may not be informed about the steps involved in canceling a booking for an apartment, which can lead to complications when attempting to obtain a refund. Prashant Nath, a representative from PropertYes De Emirates, has informed us that the government has not established any regulations or terms regarding apartment cancellations or refunds of booking fees. In essence, Mr. Nath asserts that the ease of the cancellation process is dependent on the rapport with the developer.

      Flat booking cancellation: Important things to remember

      • Builder-buyer agreements, which may include sale agreements or property allotment documents, often feature cancellation clauses. 
      • It is essential to carefully review the terms outlined in the documents, as cancellation will be subject to these conditions.
      • It is advisable to retain any acknowledgement documentation you receive, particularly in regards to payments made. 
      • It is recommended to pay through cheques or other traceable payment methods, rather than cash.
      • Be advised that any VAT or service tax paid will not be refunded in case of cancellation. 
      • It is crucial to keep all communication in writing, as verbal agreements or assurances will not be considered legally binding should a complaint need to be filed.

      If you want to cancel a booking and get a refund, you can still do it even if you haven’t signed a builder-buyer agreement. But be warned, your reason for canceling has to be legit or you could get into trouble. If there’s no signed contract or agreement, you need to keep hold of your allotment letters and payment receipts. The application forms, acknowledgement or allotment letters might also have cancellation terms and conditions that could help you claim your refund from the builder.

      What are flat booking cancellation charges?

      Builders usually take a 10% cancellation charge before refunding the booking amount. Additionally, any tax paid by the buyer, like stamp duty or GST, will also get deducted from the refund. There are no government guidelines for this, so it’s entirely up to the builder to decide whether to waive off the cancellation charge or not. 

      According to legal expert Atulay Nehra, the cancellation charges are usually mentioned in the builder-buyer agreement. So, if you have signed such a contract, read it carefully to understand how much money you can expect to get refunded. If there are no terms for cancellation mentioned, you can claim a 100% refund from the builder. In case the builder refuses to refund your booking amount even when it’s mentioned in the agreement, you can file a case with the consumer forum to get a refund with interest.

      Should you seek legal help when canceling a flat booking?

      If you’re thinking of canceling an apartment booking, it’s a good idea to talk to a legal expert. They’ll help you handle all the official procedures and make sure you get the refund you deserve. canceling an apartment booking is not as easy as just sending an email to the builder. There are many formalities involved, and a legal expert will be able to guide you through it all. They’ll even help you file a complaint if you feel your rights have been violated in any way.

      Tax implication on the excess amount

      According to the Tax Appellate Tribunal (ITAT), if you get more money from the cancellation of your flat registration than what you paid as an earnest deposit, it will be considered as a capital gain. In such cases, the difference between the received amount and the actual paid earnest deposit will be considered as taxable income.

      The tribunal has said that if the excess amount is not treated as a capital receipt, it will be considered as capital gains, and you will have to pay tax accordingly. Earlier, the income tax department used to consider the excess amount under “income from other sources” and taxed it in a similar manner.

      RERA rules for flat cancellation

      If you’re planning to buy a house, make sure that the developer is registered under the RERA. If you cancel your purchase, the developer has to return the money within 45 days. But, keep in mind that the developer can deduct the booking amount before returning the money. Rules and regulations may vary from state to state or case to case. So, it’s better to consult with a legal advisor or real estate expert before making any decision.

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      Understanding Secured and Unsecured Loans: Types of Collateral and Their Importance

      Lending entails a certain amount of risk on the part of the lender. This is due to the possibility that the capital loaned out will not be returned by the borrower, forcing the lender to incur a loss. 

      Lenders look for ways to assess the borrower’s creditworthiness or secure the loan through other means, often in the form of land or property collateral, in order to reduce the risk element.

      Types of Loans

      Loans can be divided into two main categories: secured and unsecured.

      Unsecured loans have become more popular in recent years as a result of fintech companies discovering novel ways to assess a person’s or a business’ creditworthiness by taking into account additional factors like overall cash flow, employment status (salaried or not), business turnover, and an established credit score.

      In order to qualify for a secured loan, a tangible asset, such as gold jewellery or real estate, must be pledged as security. According to the terms of the loan, if the borrower stops making loan payments for a predetermined amount of time, the lender has the right to seize the collateral and sell it in order to partially or fully recoup their loss.

      Depending on the type of loan and the lender’s policies, the type of collateral and the terms associated with it might differ significantly. Let’s explore the specifics of what this type of securitization involves.

      Why is collateral necessary?

      The lender uses collateral as a means of protecting the loan. Collateral is still a favoured securitization option for the majority of loans, even though lenders, especially traditional institutions like banks, also consider numerous other variables including credit history and income stability to determine a borrower’s creditworthiness.

      The risk assumed by the lender is significantly larger for loans granted without collateral, or unsecured loans, hence the interest rate charged in these loans is often higher than that on secured loans. Loans like personal loans, student loans, and credit cards are included in this category of credit. Prior to authorising an unsecured loan to the borrower, the lender is likely to perform a detailed assessment of the borrower’s financial situation and ability to repay the debt.

      Another method of securitization entails using a different person as the loan’s guarantor in addition to the borrower. The guarantor is responsible for repaying the loan in the event that the borrower defaults. In order to be trusted to complete the loan, the guarantor typically needs to be more creditworthy than the borrower.

      In contrast to this, a loan secured by collateral provides the lender with a higher level of security. They are consequently simpler to acquire but only available to people who already have such assets in their names. Borrowers can often acquire larger credit amounts with these loans at cheaper interest rates. As a result, the borrower will receive loans with more favorable terms.

      Various Types of Collateral 

      Another method of securitization entails using a different person as the loan’s guarantor in addition to the borrower. The guarantor is responsible for repaying the loan in the event that the borrower defaults. In order to be trusted to complete the loan, the guarantor typically needs to be more creditworthy than the borrower.

      In contrast to this, a loan secured by collateral provides the lender with a higher level of security. They are consequently more simpler to acquire but only available to people who already have such assets in their names. Borrowers can often acquire larger credit amounts with these loans at cheaper interest rates. As a result, the borrower will receive loans with more favorable terms.

      The primary types of security required to obtain a secured loan are listed below:

      Property or Land Collateral (immovable asset)

      Real estate, such as one’s own home or a plot of land, is the most common form of collateral used by borrowers. Real estate holds value and depreciates at a lower rate than other types of collateral thus lenders prefer to use it as security. However, mortgaging a property might be risky for the borrower, particularly if it is their primary residence or their source of income.

      So let’s take a closer look at some movable property used as collateral.

      Machinery or Vehicles

      Many loans are provided against movable assets with resale value, including vehicles or business-owned machinery. The ability to obtain a loan while keeping ownership and even using movable assets is made possible by hypothecating them to the lender. In rare circumstances, it can also include giving the lender actual ownership of the assets.

      Gold, cash, and other precious items

      In nations like India where many families have a custom of purchasing gold or where there may be generational gold passed down in the family, gold is a frequent kind of collateral. Lenders will accept gold bars, coins, and jewellery as collateral for loans, sometimes known as “gold loans.”

      Other valuables, such fine art and antiques, can also be pledged as collateral, but the ratio of the loan amount to the actual worth of an asset is typically lower because it’s difficult to determine the actual value of these assets and they may fluctuate.

      The money in the borrower’s savings account are referred to as cash collateral. A borrower can approach the bank where they have an open account and use the money in their savings account to secure a loan. This is one of the simplest types of collateral because the bank can immediately access and liquidate the account in the event of default. This also implies that the borrower can anticipate lower fees and interest rates on a loan secured with cash.

      Inventory Financing and Invoice Financing

      Two other types of collateral are available to business owners that can be used to get a loan for their company. They are invoice collateral and inventory financing. Stock financing is the practise of using stock or stock that is not intended for immediate sale as security. In the event of a default, the lender may take possession of and sell the inventory to recover its losses.

      On the other side, invoice financing refers to offering outstanding payments or orders as security in exchange for a loan. This is being done in the hope that the payments will be made on time and will cover the debt. This aids companies in managing cash flow and maintaining consistency in their operations.

      Investment Collateral or Securities

      Depending on the lending institution’s policies, personal investments in securities, which include stocks, bonds, and mutual funds, are another type of asset that can be used as collateral to secure a loan. This kind of security is more frequently utilised to protect line of credit and business loans. The borrower still has ownership over the securities portfolio and can continue to profit from the yields even when the loan is being repaid.

      Similar to cash, this type of collateral has the benefit of being quickly liquidated by the lender in the event of a default, but it also carries a higher level of risk. This is due to the fact that the value of such holdings can change.

      This is due to the fact that the value of such holdings is less certain than that of cash or real estate collateral because it is subject to market fluctuations. Even after the assets are confiscated, the borrower can still be obligated to pay the lender the remaining sum if the investment’s value drops below the loaned amount.

      What Happens in the Case of Default?

      While lenders typically cooperate with borrowers to lessen the likelihood that a secured loan would default, if it occurs, the lender may start the process of taking back the assets pledged as collateral and selling them to recuperate some or all of their losses. When a mortgage is involved, the procedure whereby the lender takes possession of the property is referred to as foreclosure

      In addition to being a hassle for the borrower, this process can also make lenders reluctant to start it because it takes time and money.

      • Before considering a non-payment or missing equated monthly installment (EMI) as a default, the lender will typically send the borrower a number of reminders and give them a grace period to make up any late payments.
      • Alternatives like mortgage help, loan term modifications, or partial write-offs may also be used by them.
      • The foreclosure or repossession process is initiated and the lender asserts ownership of the assets if everything else fails and the loan is deemed a non-performing asset (NPA), which typically occurs after a period of 90 days or three missed EMIs.

      Bottom Line 

      A time-tested and often used form of security for getting loan, collateral has the benefit of lowering risk for lenders and providing borrowers with better loan terms. Lack of collateral, however, prevents many individuals from accessing credit that might otherwise enable them to better their life by expanding their businesses, pursuing educational opportunities, or being able to purchase a home.

      This is especially true for last-mile borrowers who lack the formalization and comprehension of the intricate paperwork or who do not own assets that can be used as security.

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      Utilize these fascinating color combination ideas for living room

      Selecting the right paint colour for your living room is a crucial design decision that can dramatically transform the space’s appearance. Your living room is the first area of your house that visitors see, so it is essential to choose a color combination that matches your interior design style. 

      We have compiled some fantastic hall colour combination ideas to help you make an unforgettable first impression on your guests. To make things easier, we have consulted with experts, and Nippon Paint’s expert-recommended mood boards are now available to assist you in selecting the ideal hall colour combination. Nippon Paint’s Colour Vision, which is based on human emotions and thought processes, is a valuable resource that complements the homeowner’s design preferences.

      Curated by Nippon Paint India’s President, Mahesh S. Anand, and colour researcher, Dr Kaustav Sen Gupta, the list of eight palettes reveals that wall colour combinations are all about life, and life is all about colour. Additionally, we have included nine bonus hall colour combinations, so you will never be short of choices!

      Bright Orange and Blue Colour 

      According to an expert, Dr. Kaustav Sen Gupta,  colors are an integral part of human perception and are present in our daily lives. The color tendency is influenced by individual human cognition, experience, and social behavior. 

      Bright color combinations, such as orange and blue, represent mental force. The Nippon color palette Qur!ous celebrates the freedom to ask questions, get surprised, and learn more. As interior design is all about personalization, the color combination you choose for your walls will give character to your space. This guide on wall color combinations can help you choose an interior color combination that reflects your personality.

      Deep Blue with Neutrals 

      This color combination for walls is highly conducive to DIY experimentation, featuring shades that span from deep blues to whites and yellows. Moreover, it evokes a sense of personal growth and contributes to a tranquil atmosphere in the room. If you feel drawn to this particular color combination, don’t hesitate to unleash your creativity and explore its full potential.

      In addition to bedrooms, we suggest experimenting with this color combination in your hallways and home offices. Its suitability for living rooms translates seamlessly to other spaces, making it a versatile choice for any room in the house.

      Deep Blue with Grey 

      These living room color ideas center around honoring various facets of life, featuring heartwarming narratives intertwined with each theme. A cool-toned color scheme for the walls, as seen here, establishes an ideal ambiance for unwinding with a steaming cup of tea.

      The splendid hues of blue and gray convey both an ardor for one’s calling and a sense of tranquility.

      Pastel shades 

      This living room wall color scheme is ideal for individuals who draw inspiration from their environment and value creativity. The use of pastel tones creates a subdued backdrop with a touch of color. Moreover, Nippon offers several other captivating pastel hues to pick from. 

      Pastel pink and orange, as illustrated, result in a striking yet peaceful hallway color combination. If this combination is not to your liking, there are plenty of other pastel living room color schemes available for you to explore.

      White Color for Calming Room 

      If you prefer a natural color scheme for your living room, it’s best to stick with neutrals. The N.O.W palette from Nippon offers timeless options for self-expression. A neutral wall color combination, such as white and beige, will always remain classic. 

      This is particularly suitable for achieving the traditional white-on-white look. Additionally, the boho-Scandinavian interior design is gaining popularity, and the suggested color combination is perfect for achieving this style. By choosing enduring color schemes for your hallway or bedroom interiors, you can seamlessly integrate the latest trends into your existing walls.

      Blue and Yellow Color Combination for Bold Room 

      This color combination of blue and yellow promotes health, comfort, and positivity, with yellow accents enhancing the pops of blue. When paired with a white sofa, this wall color combination creates a visually appealing setup.

      It is a favored choice of paint experts for hallways, as it is believed that the love of well-being will create a defining ambiance in homes. 

      Classic Orange and Neutral color combination 

      This hall color scheme draws inspiration from the Kolam, a vibrant south Indian art form that involves creating intricate designs with powdered pigments. The rich reds and blazing oranges used in the Blendentity color palette pay homage to this tradition and are perfect for those who value both individuality and community. 

      If you’re looking for a striking color combination for your walls, this is an excellent choice.

      Green Color Combination Shades 

      Asking the fundamental query, “What is my identity?” marks the initial stage towards comprehending one’s customs. Combining shades of green, ranging from turquoise to teal, can infuse vitality into your living space. By organizing workshops and conducting discussion groups with individuals from diverse backgrounds, including musicians and entrepreneurs, specialists have documented everyday life through their recommended wall color combinations.

      To stay ahead in the game of hall color combinations and remain authentic to yourself, this compilation of Nippon color combinations can assist you in becoming a design trendsetter.

      Considerations Before Choosing Hall Color Combination Designs

      Here is everything you should think about before selecting your hall’s color scheme:

      • Th e size of the room
      • The type of mood and aesthetic that you want to create
      • And finally, the paint finish

      What Are the Different Types of Paints?

      Once you decide on the wall color combination for your living room, you must determine the paint type.

      Paint

      Feature

      Water-Based

      Uses water as a liquifying

      agent and thus emits fewer VOCs

      and has less odour

      Oil-Based

      Contains natural oils and

      are extremely durable

      Synthetic Rubber

      Made from polyvinyl

      materials and is non-toxic

      Emulsion

      Long-lasting and available

      in a variety of finishes

      Enamel

      Solvent-based paint that is

      good for spaces where

      there is rough usage

      What Are the Different Types of Finishes?

      Let’s look at some finishes once you’ve decided on the type of paint.

      Finish

      Features

      Matte

      Hides imperfections and

      provides good coverage

      Eggshell

      Has a soft and

      subtle sheen and is

      easy to clean

      Satin

      Has an elegant

      sheen and is

      very durable

      Glossy

      Highest sheen and

      durability and easy

      to clean

      Applicable GST on real estate transactions

      While purchasing under-construction homes in India, such as flats, apartments, and bungalows, buyers must pay a Goods and Services Tax (GST) at a rate of 1% for affordable housing and 5% for the non-affordable property. The GST is also applicable to the purchase of developable plots in real estate.

      GST for a flat purchase

      GST on flat purchases will become mandatory in India in 2023 for those purchasing apartments and flats in ongoing development projects. If you purchase a home in a project that has already been finished, take note that GST on flat purchase is not applicable. A project is considered to be finished legally after it has been granted a completion certificate by an appropriate body.

      GST on flat purchase  2023

      Property type

      GST rate till March 2019

      GST rate from April 2019

      Affordable housing*

      8% with ITC

      1% without ITC

      Non-affordable housing

      12% with ITC

      5% without ITC

      Notably, builders were granted a one-time option to select between the old and the new rates by May 20, 2019, for their ongoing projects, even though the new tax rate without input tax credit (ITC) will apply to all new projects. Only projects that were uncompleted as of March 31, 2019, qualified for this offer.

      Taxes before the introduction of the GST

      At the various stages of a housing project’s construction cycle, a number of state and central taxes were levied on buildings prior to the introduction of the GST single tax in 2017. Although these taxes raised the cost of project development for developers, builders were not eligible for a credit against this tax on the output liability. Prior to the implementation of the GST, real estate developers were required to pay taxes such as:

      • Entry Tax
      • LBT
      • Octroi
      • Service Tax, etc.
      • Value Added Tax (VAT)
      • Central Excise

      The property buyer was then charged for the builders’ tax expenses. Due to the intricacy of the rates for the various taxes, developers were also able to alter numbers to raise prices for customers. Finding out the rates of VAT, Central Excise, Entrance Tax, LBT, Octroi, and Service Tax that apply to the construction of a home used to be a challenging feat for the average buyer.

      After the introduction of GST 

      The GST, which became effective in India on July 1st, 2017, was regarded as the country’s largest tax reform since independence. Several indirect taxes were merged under the GST to give taxpayers a unified system. The GST regime’s real estate tax category has seen a number of modifications since it was first introduced. 

      Types of state and federal taxes that the GST absorbed

      These are the types of federal and state taxes that the GST replaced when it became effective in July 2017:

      Central taxes 

      1. Service Tax
      2. Central Sales Tax
      3. Central surcharge and cess on supply of goods and services
      4. Excise Duty
      5. Customs Duty
      6. Special Additional Duty of Customs

      State taxes 

      1. State surcharge and cess on supply of goods and services
      2. Taxes on advertisement
      3. Purchase tax
      4. Taxes on lotteries, gambling and betting
      5. State Value Added Tax
      6. Entertainment Tax
      7. Luxury Tax
      8. State Excise Duty

      What is affordable housing, in terms of GST?

      Housing units worth up to Rs 45 lakh qualify as affordable housing by the government’s definition. Yet in order to qualify as affordable housing, the unit must also meet other requirements. If a housing unit in a metropolitan area costs up to Rs. 45 lakhs and is at least 60 square metres in size, it is considered to be an affordable home. Metropolitan cities include Delhi-National Capital Region, Bangalore, Chennai, Hyderabad, Mumbai-Mumbai Metropolitan Region, Kolkata, and Chennai. If a housing unit costs up to Rs 45 lakh and has up to 90 sq m of carpet area, it qualifies as an inexpensive dwelling in any other Indian city besides the ones stated above.

      What is input tax credit (ITC) under GST?

      The ITC system, which distinguishes the GST law from India’s prior tax structure, is one of its distinctive features. A real estate developer incurs various tax payments on the purchase of products and services during the course of a housing project. The builder would receive an input tax credit under the GST system when he paid his output tax.

      Example:

      A developer must pay tax on his completed project of Rs 25,000. When buying goods like steel, cement, paint, etc., the builder already paid Rs. 21,000 in input tax. After correcting for the input tax credit, he would only be required to pay Rs 4,000 in output tax in this case.

      GST on reasonably priced real estate

      Here is an example of how to compute GST on affordable housing segment flat purchases both before and after the April 1, 2019 rate change:

      Affordable housing

      GST on affordable housing before April 1, 2019

      GST on affordable housing after April 1, 2019

      Property cost per sq ft

      Rs 3,500

      Rs 3,500

      GST rate on flat purchase

      8%

      1%

      GST

      Rs 280

      Rs 35

      ITC benefit for material cost of Rs 1,500 at 18%

      Rs 270

      Not applicable

      Total

      Rs 3,510

      Rs 3,553

      Effect of GST on high-end real estate

      Luxury property buyers would save more than they would have previously under the new GST rates. Here is an example of how to compute GST on a luxury apartment purchase:

      Luxury housing

      Before April 1, 2019

      After April 1, 2019

      Property cost per sq ft

      Rs 7,000

      Rs 7,000

      GST rate on flat purchase

      12%

      5%

      GST

      Rs 840

      Rs 350

      ITC benefit for material cost of Rs 13,000 at an average of 15%

      Rs 126

      Not applicable

      Total

      Rs 7,714

      Rs 7,350

      Tax on public housing initiatives

      The government has made it clear that under the new system, only 1% GST will apply to government-led mass housing projects intended for the average individual. These housing schemes include the Rajiv Awas Yojana, the Pradhan Mantri Awas Yojana, the Jawaharlal Nehru National Urban Renewal Program, and housing scheme of state governments.

      GST on building services

      While the GST regime does not directly apply to real estate in India, a range of the sector’s operations and services are subject to taxation under the new system. The rates at which related activities in the construction sector are assessed under India’s GST system are as follows:

      Under-construction home bought under the PMAY Credit-Linked Subsidy Scheme (CLSS)

      8%

      Under-construction home bought without the subsidy

      12%

      Works contract for affordable housing

      12%

      GST rate on construction and building materials

      While all materials used in the development work are subject to GST, the Goods and Services Tax (GST) applies to real estate in India through works contracts, building, and constitution activities. Simply defined, the new regime covers the Indian construction sector, which continues to be subject to high tax rates through a variety of levies imposed on the purchase of different building construction supplies.

      Applicable GST housing society maintenance fees

      If a flat owner pays their housing society at least Rs 7,500 in maintenance fees, they are subject to paying 18% GST on residential property. Housing societies or residents’ welfare associations (RWAs) must also pay 18% tax on the total money collected if they collect Rs 7,500 a month per unit. However, housing societies are excluded from paying the GST if their yearly revenue is less than Rs 20 lakhs. Both requirements must be met for the GST to be applicable, i.e., each member must pay more than Rs 7,500 per month in maintenance fees and the RWA’s annual revenue must exceed Rs 20 lakhs.

      In addition, the government has made it clear that the entire sum is taxable if the monthly fees for each member exceed Rs 7,500. For instance, the 18% GST on flats will be payable on the total value of Rs 9,000 and not on Rs 1,500 (Rs 9,000-Rs 7,500) if the maintenance fees are Rs 9,000 per month per member. Also, owners of numerous flats in the same housing society will pay taxes separately for each unit.

      RWAs, on the other hand, are eligible to claim ITC on taxes they pay on input services like repair and maintenance services as well as capital goods like generators, water pumps, lawn furniture, and taps.

      GST on rent 

      When is the tenant liable for paying GST?

      Tenants who are GST-registered and rent a residential unit must pay an 18% tax on the rent amount. On July 13, 2022, the GST Council announced a change in this regard. The new rule is applicable to both businesses with an annual revenue over Rs 40 lakh and individual service providers who make more than Rs 20 lakh. GST registration becomes mandatory in both the instances for the individual/business. 

      When the Landlord is liable GST?

      Residential property rentals for commercial purposes are considered a supply of services under the GST scheme. If the annual rent exceeds Rs 20 lakh, an 18% GST rent on residential units is levied against the landlord under this regime. Landlords are required to register in this situation in order to pay the GST on their rental income. A GST of 18% is charged on commercial property rentals.

      GST on a mortgage

      Financial organisations provide a number of “services” as part of house loans, even though the borrower is not subject to the GST on loan repayment. Since that these are services, the GST’s application becomes relevant. As a result, the processing cost, technical valuation fee, and legal fee would all be subject to GST if you apply for a housing loan with the bank.

      Facts about GST 

      • The GST treats residential projects that contain up to 15% commercial space as residential properties.
      • On commercial property, the actual GST is 12%.
      • For the acquisition of plots, there is no GST due.
      • When you purchase a ready-to-move-in flat, there is no GST due.
      • Unless the tenant is a business company, landlords are exempt from GST obligations.
      • GST and home registration: If you’re purchasing a property, you’ll still be required to pay stamp duty and registration fees. However, GST does not cover these costs.
      • GST is applied to the processing fees, legal fees, and other services provided by banks as part of house loans.
      • Around a dozen different taxes have been merged into the GST.
      • To account for the GST cost, sellers raise the price of properties that are ready for occupancy.
      • Homes that are still being built are less expensive than completed residences, even with the GST being applicable.
      • GST is only applicable to apartments that are still being built; it does not apply to ready-to-move-in apartments.

      It is significant to note that the real estate industry is not included in the scope of the GST. The “work contracts” system is used to determine the tax rate that applies to a property building. For this reason, a developer is not permitted to add GST to the price of residences that are ready to be occupied. A property is labelled as ready-to-move-in upon completion and after acquiring the occupancy certificate, and is no longer bound by a work contract. In other words, the GST would be applicable to the sale of properties that are still under construction and are awaiting Occupancy Certificates. The previous administration required buyers to pay service tax on the purchase of ready-to-move properties, which deserves to be included here as well.

      The developer/owner would eventually include this cost as part of the total price of the property, though, given he has already paid GST as part of the acquisition. This essentially means that even if GST is not applicable to ready properties, the buyer still has to pay it.

      GST charged by builders on a one-time maintenance deposit

      The one-time maintenance deposit that builders take from home buyers is subject to the GST, according to the Gujarat bench of the Authority for Advance Rulings (AAR). The authority claims that this charge is non-refundable and belongs to the category of supply of services. However, the AAR also stated that, in the future, when this money is actually used to pay for maintenance work, the GST will be subtracted from the maintenance price.

      Remember that before the foundation of the residents’ welfare groups or cooperative housing societies, which take over responsibility for maintenance from the builder, most real estate developers collect a one-time maintenance deposit from home buyers. After the RWA and CHS are established, they take exclusive responsibility for the maintenance tasks and are permitted to establish their own set of guidelines for determining maintenance fees. It would made builders unable to interfere in the matter. 

      This particular liability for home buyers is based on the size of the property; they are required to pay a specific amount per square foot.

      There have been numerous cases when conflicts have developed between buyers and developers regarding the applicability of GST on the one-time maintenance payment since there has been a complete lack of clarity regarding the laws governing collection of this levy.

      Developers frequently transfer the remaining funds into the common fund after deducting GST at the rate of 18% immediately following the collection. After the AAR decision, developers would be required to deposit the entire sum without any GST deductions.

      Furthermore take notice that before the GST regime came into force in 2017, builders were not required to pay service tax on these maintenance deposits.

      Although the builder would have initially charged this fee, the AAR’s decision now allows RWAs and CHSs to collect the GST from society members as needed. In essence, from the perspective of home buyers, it is just a delay in the payment.

      Land transactions are exempt from GST

      Since the sale of land does not entail the transfer of any goods or services, it is also not included in the GST on construction services. For taxable real estate transactions, the GST offers a standard abatement of 33% of the entire contract value towards the value of land because the cost of land is an important factor in property prices.

      Example: How to calculate the GST on a flat that is under-construction

      Let’s say a builder sells a buyer a Rs 100 house that is still under-construction. In order to determine the GST on construction, the land value of Rs 33 will be subtracted from the total, leaving Rs 77 for which the GST on construction would be charged.

      GST rate for developable land

      If you buy developable plots, there won’t be any GST to pay. This was established by a circular the Central Board of Indirect Taxes and Customs (CBIC) released on August 3, 2022, which said that even if some basic infrastructure has been completed, plot sales are not subject to GST. Recently, a similar decision was also passed by the Karnataka AAR.

      Before, certain state officials adopted a conflicting viewpoint. For example, the Madhya Pradesh Appellate Authority of Advance Ruling (AAAR) ruled in July 2022 that land sold after involving in development activities will be subject to an 18% Goods and Services Tax (GST). The Gujarat Authority of Advance Ruling issued a similar decision in 2021.

      Prior to the implementation of the GST system, sales of immovable properties were not subject to the value-added tax, and as a result, only direct taxes, such as stamp duty and registration fees, were paid.

      What is developable land?

      Only those plots qualify as developable plots if the owner has all the necessary approvals from local and municipal authorities to carry out future development over the land parcel. The owner must develop the fundamental infrastructure as well in order to facilitate future development. 

      The land parcel would qualify as developable land if any or all of the following had been done there:

      1. Laying work of water pipelines
      2. Laying work of underground sewerage lines
      3. Setting up of water harvesting facility
      4. Setting up of sewage treatments plants
      5. Development of landscaped gardens
      6. Setting up of a drainage system
      7. Demarcation of plot
      8. Ground leveling
      9. Boundary wall construction
      10. Road construction
      11. Construction of overhead tanks

      GST on the plot 

      Even if the selling of plots is exempt from the GST regime, any little construction on the plot would be subject to the tax. In the event that such a plot is sold, one-third of the plot’s value will be deducted, and GST will be applied to the remaining two-thirds of the land’s value.

      GST on developable plot sales

      If the land parcel for which the transaction is recorded meets the criteria for developable land, there are GST ramifications even though the sale of plots is exempt from them.

      The sale of developed land was formerly believed to be exempt from the GST until the Gujarat Authority for Advance Rulings (AAR) specifically said in a judgement that it was a “service” and hence taxable under the existing system. This is so that the sale of land and the sale of buildings will not be recognised as either a supply of goods or a supply of services, according to a listing in Schedule-III of the CGST Act.

      Applicable GST on farmer compensation: Karnataka AAR

      The Karnataka Authority of Advance Ruling (AAR) has declared that the compensation given to farmers for giving their land while a project is being completed is subject to goods and services tax.

      The AAR has ruled that reimbursement of land compensation amounts paid to farmers and landowners during the execution of work is taxable as GST since the applicant does not meet the criteria to be a pure agency.

      Impact of GST on registration fees and stamp duties

      With the implementation of the GST regime, there have been repeated calls for the government to stop charging stamp duty and registration fees for real estate, but nothing has come of these calls. Thus, stamp duty and registration fees are still associated with real estate transactions in India. The registration price is either 1% of the property value or a specified fee, while states charge stamp duty in the range of 5% to 10%.

      GST on flat registration

      The registration fees paid while registering a property are not subject to GST. But can we anticipate that in the future, GST would also include registration fees and stamp duty? Experts don’t concur.

      “Stamp duty on real estate transactions provides a significant portion of the income received by Indian states. The exchequer would suffer significantly greater losses if states chose to forfeit this money than it already does. This aspect makes us think there is little chance the GST will combine the two fees, at least not in the near future, said Lucknow-based attorney Prabhansu Mishra.

      GST return on cancellation of a flat purchase

      It’s possible that the GST regulations will be altered to allow homebuyers to get their money back if they decide not to buy the property for which they previously paid the tax. The new tax system does not currently provide a method that enables unregistered organisations, such as homeowners, to request a GST refund. At its 48th meeting on December 17, 2022, the GST Council suggested that the CGST Regulations, 2017, be amended and that a circular be issued outlining the process for unregistered buyers to file refund applications in such circumstances.

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