RERA - the Impact on the Real Estate Sector

In the year 2016, the Indian government came up with the Real Estate (Regulation and Development) Act (RERA). Now, it wouldn’t be wrong to say the introduction of RERA has impacted and brought in some revolutionary changes in the Indian real estate, making it safer and more convenient for home buyers to buy a home in India.

However, before talking about the impact of RERA, let's talk about the major challenges faced by the customers.

1. Delay in giving possession to the buyer by the property dealer.
2. Increasing cases of malpractices such as demanding additional money, reduced carpet area compared to the promised size, changing the society plans without informing etc.
3. Property is sold to buyers based on carpet area and not on the super built-up area.
4. Developers diverting the buyer’s money to start a new project instead of focusing on the promised property.
5. Shortcomings in the project.

Moving on, let’s talk about the impact of RERA or the major changes the introduction of RERA will induce.

1. As per the regulations of RERA, "No developer or builder shall advertise, market, book, sell or offer for sale, or invite persons to purchase any plot, apartment or building, in any real estate project or part of it, in any planning area, without registering Real Estate Project (REP) with RERA.”
2. RERA also makes it mandatory for the builders to disclose the details about the project on the website set up by the authorities. 
3. Also, RERA has issued an ordinance making it mandatory for the real-estate developers to deposit 70% of the amount realized for real estate project from allottees, in a separate account to be maintained in a scheduled bank to cover the cost of construction and land cost. In addition, the money so maintained should be used only for the afore shared reasons.

On a concluding note, the next time you buy a property in India, make sure it is RERA verified.

Bottom line: Even though the market situation is not in favor of the builders and property, you, as a customer, can leverage from this golden opportunity and own a property in Bangalore. Another thing which can make the process of buying a flat in Bangalore is a home loan. There are various financial institutions who offer home loan of up to Rs. 3.5 crores which can be paid back in a tenor of up to 20 years. The home loan interest rates terms and conditions, however, vary from one lender to the other. It is thus ideal to check what each lender has to offer thoroughly before choosing a lender.

Additional Read: The launch of RERA Act and How it Impacted the Real Estate Sector

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How to Manage the Process of Relocating to Bangalore

Migrating from one place to another in search of better opportunities, better lifestyle etc. is a very common thing and people have been doing that from ages. Hence, you should never take your life and your current job for granted. You might come across some inescapable opportunities without even asking for it. It’s like you’re relaxing in your balcony on a fine Sunday morning and you receive a call from the HR of a very big company based in Bangalore. You’re not in the mood to talk but the HR makes you an offer you can’t reject. Thus, out of the blue, the next thing you would be doing is searching for convenient ways for relocating to Bangalore.

So, if something like that actually happens with you, the things you should do are:-

1. Decide whether to buy or to rent: The first big thing is to decide whether to rent a house or buy it. That would depend on how long do you plan to stay put in Bangalore. Buy a flat in Bangalore would be a better option, renting is more conducive in certain circumstances.

2. Find out the best areas for a residential purpose: The Second important task is to find out the best residential areas in Bangalore.

3. Check out the ready to occupy apartments in Bangalore: Moving on, find out the ready to occupy apartments in Bangalore given the shifting has to happen immediately.

4. Find out a home loan: Next, find out a good housing loan scheme to finance the purchase of the property and get the paperwork done. Once everything is done, find a good mover and shift to your new flat in Bangalore.

Bottom line: Given the fact you’ll be looking for flats in Bangalore, make sure the property is RERA verified.

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Demonetization Effect on Bangalore: The Aftermath

The two biggest policies rolled out last year: GST and Demonetization have affected each Indian state equally. Kolkata’s real-estate is in shambles and so is the real-estate of Mumbai or Bangalore. It’s not that some cities were immune to Demonetization and some were not. The effect was widespread and even-handed.

So, irrespective of whether you have plans to buy a flat in Bangalore or not, 2018 is the best time for home buyers to invest in real estate property in Bangalore. The sales figures for 2016 plummeted down to a record low; causing a great downfall in the property prices. Also, a total of 13,134 units were sold in the third quarter of 2016. Whereas, the number came down to 7175 units in the fourth quarter which was approximately 45% less compared to the sales in the third quarter.

Speaking on the matter, Mr. Satish B N, Executive Director (South India), Knight Frank said, "After observing a peak in 2013, in the last two years, the city has come under considerable pressure. While launches were already on a decline, owing to factors such as the increasing unsold inventory in the city and BBMP's drive to confront the encroachment of lake beds, issues like the announcement of demonetization in Q4 2016 further led to curbing of new launches.”

Bottom line: Even though the market situation is not in favor of the builders and property, you, as a customer, can leverage from this golden opportunity and own a property in Bangalore by applying for home loan in Bangalore. Another thing which can make the process of buying a flat in Bangalore is a home loan. There are various financial institutions who offer home loan of up to Rs. 3.5 crores which can be paid back in a tenor of up to 20 years. The interest rates and terms and conditions, however, vary from one lender to the other. It is thus ideal to check what each lender has to offer thoroughly before choosing a lender.

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Latest RERA Rules as Implemented by Maharashtra

Recently the Government of Maharashtra implemented the latest changes in the Real Estate Act rules which is being celebrated for being in favor of buyers and ensuring that builders are stringent in maintaining standards. According to the new rules, it will become mandatory for builders to disclose all their upcoming projects to RERA specialists including the ongoing ones without being biased towards any venture. Owing to this move, it will become simpler to buy property in Maharashtra as RERA will make things more transparent than before.

Owing to the municipal corporation elections, despite being proposed, the new plans could not be implemented. It will, however, be cleared at the earliest and in the new guidelines, almost every concern of the buyers have been addressed as the state bodies want to make it easier for buyers to purchase property in Mumbai and surrounding areas in Maharashtra more easily.

Mumbai’s Grahak Panchayat’s Advocate, Shirish Deshpande has mentioned that there was no weakening of the core Act because of the changes which have been made. In fact, he appreciated the move and even mentioned that he had helped set up some of the recommendations and had been informed when they were implemented. However, he is not assured till he sees the new changes in print.

Apart from changes in the RERA Act, another thing which can make the process of buying a flat in Mumbai is a home loan. There are various financial institutions who offer home loan of up to Rs. 3.5 crores which can be paid back in a tenor of up to 20 years. The interest rates and terms and conditions, however, vary from one lender to the other. It is thus ideal to check what each lender has to offer thoroughly before choosing a lender. To finance your home, you can get a home loan at lowest home loan interest rate from the Bajaj Housing Finance which is the India's most trusted housing company.

Additional Read: Top Reasons Why Living in Bangalore is Best Decision

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What Is The Purpose Of RERA?

The Real Estate (Regulation and Development) Act, 2016 is an Act of the Indian Parliament. It was put into practice with the intention to secure home-purchasers and protect interests in the real estate business.

The absence of a proper regulatory action for the real estate sector was long due. It establishes the Real Estate Regulatory Authority in every State and Union territory. Its works include protection of the interest of stakeholders, data accumulation at designator repository and creation of a robust grievance redressal mechanism. The authorities have been mandated to address complaints within a maximum timeframe of 60 days.

  

The important topics the Act addresses are:

• The rights of the client and their security.
• Administrative oversight on land designers, agents/ intermediaries.
• It defines the obligations of land engineers and default situations.
• Sets up practical timelines for enrollment of ventures and resolution of disputes.
• It accurately sets up punishments and liabilities for real estate businessmen and dealers/ middlemen.
• Parts and obligations of financial specialists and investors.

With the implementation of RERA special forms such as the State Real Estate Regulatory Authority and the Real Estate, Appellate Tribunal is established for resolution of disputes related to buying homes where the aggrieved party has no recourse to other consumer forums and civil courts on these issues. RERA ensures timely resolution of such disputes and how well they are handled with a degree of finality. This further helps to ensure that borrowers get easier clearance of home loan to get the coveted property. Thus, RERA aims to bring a lot of accountability and professionalism with the implementation of transparent business practices to help both home buyers and sellers reap its benefits.

If you interested to know how to increase CIBIL Score for home loan then you must visit Bajaj Housing Finance Official website

Additional Read: Diluted RERA Makes Haryana Buyers Anxious

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Affordable Homes Are No Longer A Distant Dream

With rising inflation, it is becoming increasingly tough to find affordable housing. In cities like Pune which is a rapidly growing metropolitan the Union Government has published a notification regarding its infrastructure status to affordable housing projects. These are the ones which utilize 50% FSI or Floor Space Index for building with a carpet area of 60 sq. m.

To ensure people such as auto drivers with a household income of Rs. 20,000 or so being able to afford the house government has to declare some apartments for the poor section. This step will make sure that 10% of the poor populace can easily get its share of affordable housing to secure their future.

Moreover, leading lending institutions such as NBFCs offer home loan at an affordable home loan interest rate to this section of the society. Though, for this section or the so-called middle class to enjoy the benefits of additional funding they must be made aware of the benefits of home financing.

While Credai-Maharashtra discussed this situation and has urged for the solution of these residential projects in Pune. They said that they needed lenders to provide loan rate between the ranges of 6% to 7%. Besides, such areas must have the right infrastructure too for these residential projects to be made. The stamp duty can be waived off and the partnership models must be initiated where plots were given to the builders for construction of these affordable apartments.

Additional Read: Top 10 Most Affordable Cities in India to Buy Property

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All About Investing Smartly In Real Estate

Real estate investments are a great way to secure not only yours but the future of your loved ones. Whatever the reason be you must make sure the agent or method you choose to invest with is reliable and offers appreciable returns.

Here are some tips to help you invest wisely in real estate whether you are a salaried or self-employed individual -

• Know the market performance of various locations. This simply means that property prices will vary as per the State you are situated in. These will differ also according to the locality where the property is situated. 
• Choose the property as per your budget. You may rely on your savings or borrow from leading lenders such as NBFCs a preferable loan amount to purchase the house of their dreams. In addition, existing customers of the home loan can opt for Balance Transfer facility. This is smart of getting your loan refinanced. Upon meeting the home loan eligibility of the lender you can get the EMIs reduced, avail top up on the existing loan and enjoy nominal interest rate to manage your finances well.
• Keep all relevant paperwork ready while investing in real estate. This is especially important because it helps to get things done faster and in a legal format.
• Take guidance from people who have invested in real estate. Or, you can research extensively online. It is imperative to do your homework so you know where you are putting your money into and how much returns you seem to expect in the future.

Additional Read:- Guide to Investing in Real Estate Business

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Popular Weekend Getaways In Bangalore, To Check Out

After tiring days at work hanging out in a relaxing and scenically rich destination is what all of us aim for. Bangalore real estate is one such destination which offers a perfect getaway for you and your loved ones.

Let’s explore them here:-

Nandi Hills

This is a small hill station located 60 kilometers from the city. It is situated close to the International airport of Bangalore with hills being located about 20 kilometers from the National Highway-17. It is thus no surprise to find the city developing rapidly with several commercial and residential ventures in the region.  

Anthargange

This is a beautiful hill range situated about 1226 Meters (4021 ft.) high in Kolar district around Bangalore. It is popular for activities like trekking, cave exploration, rock climbing, and rappelling. Hence, the destination is most suitable for adventure seekers in the region.

Kanakpura

The region is famous for the production of granite and silk. Located among the lush green forests this is a tourist hotspot and something for everyone. Ranging from avid trekkers to history buffs and wildlife enthusiasts. Its close proximity to national highways makes it an ideal destination for tourist enthusiasts.

Moreover, Bangalore offers a perfect destination for home seekers too who are willing to invest in real estate. These home buyers are increasing every year owing to the rapid growth of IT in the city. Keeping up with the trend leading loan providers to offer custom home loan to buyers in the city. Being a secured loan in nature it can obtain at an affordable rate of interest and easy repayment terms. To finance your home, you can get a home loan at low home loan interest rate from the Bajaj Housing Finance which is the India's most trusted housing company..

Read Also: Top Five Weekend Getaways from Bangalore

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Interesting Weekend Getaways In Chennai

Chennai is one of the most scenic and hospitable city on the Coromandel Coast of Tamil Nadu. It is home to some of the beautiful beaches, leisure outlets, seaport, airport, theme parks, industrial cities, multispecialty hospitals and so on.

Some of the interesting getaways Chennai offers are -

Tirupati

This is an ideal place to enjoy weekends as it is rich in history and archaeology. It offers an easy commute with several lodging facilities which have been steadily increasing on a day-to-day basis.

Kanchipuram

Known as the ‘Silk City’ and is popular for its amazing silk sarees that are traditionally crafted for its culture along with numerous glorious temples which lures visitors on a daily basis. Owing to this the government has taken several initiatives to increase the facilities for tourist/ visitors in the region.

Vellore

It is known as the ‘For City’ of Tamil Nadu which has a perfect mixture of rich cultural heritage and wonderful scenery making is one of the best weekend getaway spots from Chennai. Located at a distance of under 150 kilometers from Chennai, Vellore is readily accessible. One can see numerous real estate projects upcoming up in this area to meet the increasing demand of the market.

Additionally, Chennai is a great destination for real estate investment. You may avail secured finance from leading institutions like Bajaj Housing Finance to help you to buy property in Chennai. To know more about the finance you can discuss terms with your Relationship Manager to make informed decisions.

Read Also: Top Five Weekend Getaways from Chennai

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Bangalore Smart City Project to Give the Real-Estate a Boost

Bangalore was official ‘the Silicon Valley of India’ before Hyderabad pushed it at number two. This happened probably because any city that develops fast also has to deal with a huge number of problems cropping up on the surface. Some of the biggest problems that supported Hyderabad overthrow Bangalore from No.1 position was (1) the ease of doing business was reducing, (2) traffic woes were an all-time high and power, and (3) water crisis was becoming acute. Apart from that, the lack of planning leads to a recent surge in population. This, in return, leads to an increased number of vehicles on the roads of Bangalore causing a tremendous amount of smoke emission, especially around Bellandur Lake. Sadly, all these factors also affected the Bangalore tourism badly.

However, the same won’t happen anymore! The state development authorities are all geared up with the Smart City plan. The Bangalore Smart City Plan is expected to give a complete makeover to the city. In fact, as per some of the reputed merchants of residential property in Bangalore, certain measures are already on the pipeline.

Below are some of the measures being taken as a part of the Bangalore Smart City Plan:-

• Illegal holdings of space on pavements etc have been cleared.        
• Parks and open spaces are being redone with a lot of concern to make the city welcoming. 
• Professional photographers are being hired to capture and highlight the beauty of the city in the best possible light to boost the tourism sector. These pictures will be published in monthly magazines (online and print) and on the Bangalore real estate developers' websites.
• The BBMP or the Bruhat Bengaluru Mahanagara Palike have now tried to include a bicycle ride around the Ulsoor Lake.
• Connectivity to various parts of the city has been improved at large with an app-enabled parking option at Shivajinagar.
• Summing up, investing in Bangalore real-estate can be a profitable decision as, after the completion of the smart city project, the  Bangalore real estate is sure to thrive.

You can apply for a home loan from major lenders such as NBFCs in Bangalore. You can apply for the loan online with minimum paperwork and avail a substantial amount to fulfill your dream of buying a house.

Read More: Bangalore’s Smart City Proposal Focuses on Giving Tourism and Business a Major Boost

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