Wednesday, 12 July 2017

Bellary Road Makes A Desirable Property in Bangalore

Introduction

Located in the North of Bangalore, Bellary Road is a relatively calm area in the bustling city of Bangalore. The area has ample amenities one could require with all the conveniences. The area is very well organized and divided into neat roads allowing easy navigation. The area is relatively developed and is the hub of quite a few 3 BHK flats in Bangalore. If one is looking for property in Bangalore which will give you all amenities one could desire, as well as various commercial plazas, then Bellary Road is the place to be in.

Overview


Various housing options are available in the area, ranging from 1 BHK to 4 BHK. One can expect houses at affordable rates as the area isn’t classified as posh or up-market. For the residents or aspiring residents of the area this is good news because, given the number of colleges, schools and other various workplaces located in the area, housing is cheaper and easier. Bellary Road is the epicenter of new residential projects in Bangalore due to the recent economic boom. People can find elegant and economical homes for rent as well as for purchase according to one’s choice.

Advantages

Given its proximity to different colleges, the youth of Bangalore can rent a single room or even a bigger flat on sharing basis. Various new residential projects in Bangalore offer housing units to students to multiply their profits. The area is potentially the upcoming hub of Bangalore and a developing marvel. Looking for property in Bangalore can be a tedious process due to the vastness of the city but people with jobs in the various hospitals and clinics in Bellary Road or the different commercial plazas can easily find an affordable abode without too much of a hassle. 

It is situated conveniently near the highway. The presence of a mall and a number of colleges has given rise to different hangout spots and restaurants in the area. This again leads to making the area conducive for the real estate business as well as to the investors.




One can argue that the proximity of the number of schools in the area can lead to a lot of traffic and hustle and bustle, but Bellary Road is arguably one of the calmest locations in Bangalore. The well defined and organized roads perfectly handle and divide the traffic to avoid traffic jams and invariably, sound pollution. The exponential growth of the market has resulted in businesses looking to expand in different areas and Bellary Road aptly fits into the list of preferred areas.
Conclusion
The area already has a lot to offer, with a profound magnificence of its own, adding to its elegant charm. Crime rates are exuberantly low here thus providing complete security to families and other residents. The schools in the area are also critically acclaimed, forcing more and more builders to invest in the area for their profits.
In conclusion, Bellary Road is an idealistic location for everyone looking for a relatively calm area with a safe neighborhood. Investing in a home in this area would be the best step anyone could take because, in the years to come, this area will yield major profits for everyone.

Monday, 10 July 2017

Developers in India Hope for Property Boost From Goods and Services Tax

Albert Einstein said that the hardest thing to understand in the world is income tax. At present, there are several taxes levied at the state and central level. Such a system has led to rise in the final prices of the goods and services.
The government is all set to roll out the Goods and Service Tax (GST) Act from July 1, 2017. GST is a single tax rate that will replace all the existing indirect taxes by the State and the Central government. A single tax rate is expected to bring uniformity in the tax system.
The realty sector is particularly excited about this; especially, after the slowdown in the sector post demonetisation. The GST on under construction property will be 12%.
Here’s all you need to know about GST and the real estate sector:



The Existing Tax Rates


At present, service tax and Value Added Tax (VAT) is levied on under construction property. For properties costing more than Rs.1 crore, you pay a service tax of 4.5% on the agreement value. For those costing less than Rs.1 crore, the tax rate is 3.75%. Under construction properties also attract VAT. The VAT rate varies across states. Maharashtra levies 1% VAT on the agreement value. The VAT rate in Karnataka is 5.5%. States like Tamil Nadu and West Bengal do not levy VAT. In addition to these taxes, you pay stamp duty as well as the registration charges while buying a property.

    • Tax Rate Under GST
    The 12% GST will do away with the existing service tax and VAT. However, you will still have to pay the stamp duty and registration charges. On the surface, the new tax rate may be perceived as a higher tax burden for the realty sector. However, the tax incidence in actuality is quite lower. This is because of the Input Tax Credit (ITC) that the traders and manufacturers claim.

    • Input Tax Credit (ITC)
    Traders and manufacturers pay tax on the raw material that they use for their product or service. They again pay tax on the final output that they offer. ITC allows them to claim a deduction from the tax on the output. The tax paid on the input can be reduced from the tax paid on the output. Currently, real estate builders get no ITC on the tax paid on fittings, steel, and cement. Under GST, this will change. Post, GST, builders will get the benefit of ITC.

    Developers Hopes on GST

    Real estate was one of the worst hit sectors due to the demonetisation policy. GST is expected to bring some respite to the real estate sector. Since GST allows ITC, the property prices are likely to come down. Several developers are of the opinion that GST will boost investments in sector.
    With reduced prices, the Indian real estate market will become more attractive for Non-Resident Indians (NRIs). GST is likely to invite more foreign investments into the realty sector. This is further supported by the findings of property consultant Knight Frank and industry bodies such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and National Real Estate Development Council (NAREDCO). According to 64% of the industry leaders, residential sales are likely to improve in the next 6 months after GST implementation.
    Materials such as steel and cement are important inputs for the construction business. These inputs are most likely to be cheaper due to the reduced tax rates under GST. For instance, coal is used in the making of steel. The current tax incidence on coal is 11.69%. Under GST, coal will be taxed at 5%. Thus, GST is likely to bring down the cost of raw materials. This could contribute to the reduction in the final property prices.
    Property developers in India are also hopeful of a transparent realty sector. Many believe that a single tax rate is likely to bring more clarity to the sector.    
    To sum it up
    GST is said to be India’s biggest tax reform. Developers across the country are hopeful that this reform will boost investments into the realty sector.    

    Buying a Home in Dilshad Garden Would Be A Dream Come True

    For a regular middle class family, buying a home in a safe and secure neighborhood is of paramount importance and Dilshad Garden is one such best place. A reputed colony situated in the north-eastern side of Delhi, the colony was first developed by the Delhi Development Authority and contrary to popular belief; it is not the same as the Dilshad Colony, which is located nearby. The entire colony is extremely well planned and divided into various blocks denoted from A through R. One of the major landmarks in the vicinity is the Deer Park which is famous for its lush greenery and very popular among the residents for walks. Apartments for sale in Delhi hence never remains unsold.
     
    Dilshad Garden is serviced by quite a few DTC buses and private buses from various sections but the Anand Vihar Bus Terminus is situated about 4 kms away and the railway station is about 3 kms away from Shahdara. Flats in Dilshad Garden are hence owned by people who want to stay well connected to the rest of the city and are regular commuters and the region itself has an eclectic mix of population from various income groups. Hindus, Jains, Sikhs, Christians and Muslims live here in complete harmony and the colony is also well known for celebrating festivals of all religious communities. The colony is situated in close proximity to areas in Delhi like Vivek Vihar, Jhilmil, Seema Puri and Nand Nagri and that makes owning a home here a great advantage.

    The bus depots of the region are located in the various Pockets and the area is also serviced by the Dilshad Garden Metro Station, situated on the Red Line. People living here have access to almost every kind of amenities in the shape of shopping malls like Stuff Garden and Chetak Complex, Reliance Fresh and Bansal Stores. Most importantly, the area has a number of hospitals which give the people of the colony access to the best medical facilities like the Delhi State Cancer Institute, Rajiv Gandhi Super Specialty Hospital and GTB Hospital among others. Also the best of educations, in any of the following schools, like MCD Primary School, Greenfields Public School, Flora Dale Senior Secondary School and Lovely Public School, are available to the children of the colony.

    Those who buy flats in Dilshad Garden know that a place here would be extremely helpful for enhancing their lifestyle. Flats for sale in Dilshad Gardens are available at various price ranges with a 3 BHK flat of about 1150 sq feet being sold for about Rs. 90 lakhs. Flats are usually sold at a price of Rs 8000 per sq feet and even a modest 2 BHK flat would cost around Rs 65 lakhs. Since the colony was built sometime back, the flats available for sale now are mostly secondary and the colony being well maintained, the flats are in very good condition and will remain so if the residents continue to maintain the individual premises.

    Thursday, 29 June 2017

    Is it Worth Investing in Real Estate in India?


    Real Estate market directly addresses one of the three basics human needs, shelter. Investment in the Indian real estate is a very lucrative option for investors. Thus, the real estate industry in India has a constant demand. In 2017, Indian real estate has attracted $32 billion in private equity. The global capital flow into Indian real estate in 2016 stood at $5.7 billion.
    Let’s look at the reasons that can influence one’s decision to invest in real estate.

    Factors That Affect Real Estate in India


    • Demography Analysis
    India has one of the youngest demographics in the world. This is an important factor for real estate buyers and investors. Demography comprises of details about people age, population growth, income, and migration pattern. Knowledge about these factors would help you narrow down on the type and location of the property to choose.

    • Economy of the country
    The Indian economy is one of the fastest growing economies in the world with Gross Domestic Product (GDP) growth around a healthy 7.1%. With the Indian economy doing well, real estate sector has appreciated at a considerable pace.

    • Government policies
    This is another factor that can affect investment in real estate. With introduction of The Real Estate (Regulation and Development) Act, 2016 (RERA) and Goods and Services (GST) is bound to impact the real estate market. Before deciding to invest in this sector, it is advisable to verify the new taxes, charges, subsidies have been levied on the property.

    Things to Consider Before Buying A Property


    • Location – Invest in a property that is situated in a desirable location. A good location should have a safe neighbourhood, proximity to schools, hospitals, shopping stores, restaurants and shops. Access to public transportation and freeways is also critical when choosing a home.

    • Affordable prices – Price is one of the main factors while buying or selling a property. If you are a builder, you should price the property that the standard middle-class can easily afford. This would ensure people always have a reason to choose you over other sellers. When buying a property, ensure that you negotiate to get the best price possible.

    • Consider emerging cities – Cities like Indore, Pune, and Kochi are picking up pace due to reasonable prices and better development. Employment options are also drawing people to these places. This has led to spike in real estate prices in such cities. Investing in real estate in such developing areas might increase the chances of you getting good returns. You can invest in such cities during the initial stages and then reap benefits when the value of the property increases.

    Be Updated!
    Ensure you pay attention to the tax system for the real estate sector. Taxation on real estate is determined on how long you own a property. Returns on investment in real estate also attract a significant amount of tax by the government.
    The short-term gains from real estate are taxed at 30%. However, property held for over 2 years is considered to have long-term gains. These could attract a tax of 20%. Also, there is Service tax exemption on construction of affordable housing.
    Educate yourself to take benefit of these exemptions and deductions. Implementation of Goods and Services Tax bill will have an impact on your investment.  Thus, ensure that you follow-up on the developments to know how it would affect your property and returns.
    To Sum it up
    India is emerging as a strong economy in recent times. Many bold decisions like increasing the Foreign Direct Investment (FDI) and demonetization are giving economy new directions. It is therefore imperative to analyze all the factors well before you invest in real estate.

    Wednesday, 28 June 2017

    How GST will Impact Real Estate Sector in India

    Impact of GST on Real Estate Sector in India

    The real estate sector in India is one of the most important revenue generating sector in the country. Real estate in India contributes around 6% to the GDP and generates demand in more than 250 odd ancillary industries. Over the past few years, the real estate in India has witnessed a phenomenal growth not only in the metropolitan cities but also in Tier II and Tier III cities. However, the main complaint against the real estate industry is the lack of transparency that plagues end users and makes the industry a complex one to understand.

    The recent introduction of RERA (Real Estate Regulation and Development Act) effective 1 May 2017 has helped to bring transparency in the land dealings and protects the interest of the homebuyer. It is expected that the introduction of Goods and Services Tax (GST) too will bring in greater tax compliance and enhance greater transparency in real estate India. Though prima facie, the cost impact of GST is expected to be negligible, GST levied on real estate will certainly ease concerns over tax structure for those who wish to buy property.

    A Unified Tax Regime

    Currently, there are two major taxes levied on the real estate sector. These are service tax and value added tax (VAT). However, given the multiple options exercised by developers under the aegis of tax authorities in different states, there are constant disputes over multiple discharges of taxes that even differ from location to location within the same state.

    Those purchasing residential property in India have to bear the highest tax burden as they are compelled to pay various elements of non-creditable tax costs, such as customs duty, excise duty, entry tax, Central Sales Tax (CST) which is included in the pricing of the unit. This is apart from VAT and service tax that they must pay on the purchase of a residential property in India. All these taxes add up to 20-25% of the actual price of the unit. This is same even if you buy a property online or otherwise.

    Reduction in procurement costs

    With the implementation of GST, these taxes will be replaced by a unified tax regime and also ensure a smooth flow of input credit, which in turn will reduce the procurement cost for the developer. Unlike the previous tax regime, builders will now be able to claim input tax against the procurement of key raw materials such as cement and steel. Further, GST will play an important role in simplifying the current tax structure by identifying work contracts as services.

    Under the new GST regime, steel products will be taxed at 18% (as against 17.5% currently), cement 28% (as against 23-24% currently) and work contracts will be charged at a rate of 12% (as against the multiple tax structure on work contracts where the Centre levied a 6% service tax, after a 60% abatement and states imposed VAT that could range between 1-4.5%). While the new tax regime looks higher for the construction segment, real estate experts opine that the overall tax incidence will come down significantly as a result of input credits now being available for developers in both residential and commercial segments. 

    Under the new GST regime, steel products will be taxed at 18% (as against 17.5% currently), cement 28% (as against 23-24% currently) and work contracts will be charged at a rate of 12% (as against the multiple tax structure on work contracts where the Centre levied a 6% service tax, after a 60% abatement and states imposed VAT that could range between 1-4.5%). While the new tax regime looks higher for the construction segment, real estate experts opine that the overall tax incidence will come down significantly as a result of input credits now being available for developers in both residential and commercial segments.

    Neutral impact from cost perspective

    Under the new GST regime, a uniform tax of 12% (exclusive of stamp duty) will be applicable on the purchase of residential property in India. However, this does not automatically mean that it will lower the cost of property for those who wish to buy, as real estate pricing is more a result of market forces than principals of cost. Further, the stamp duty is outside the purview of indirect tax regime and will thus continue to be levied as before.

    The same principle holds true for the commercial real estate segment. Under the new GST regime, credits related to construction will now be available for commercial property developers. This is expected to bring down project costs for developers thus reducing rentals as well. However, if all commercial real estate business entities including trading companies are not allowed to take credit on the GST paid on rentals (similar to the current regime where service tax on rentals is considered as credit) it will have a contrarian impact as project cost may even get escalated.

    Overall Positive Impact

    While prospective homeowners and the real estate sector as a whole may not see prices cooling off in the short term, the successful implementation of GST augurs well and will prove to be quite a game changer for the real estate sector. The clarity of a unified tax regime and establishment of a common market will help break the perception against the opaque structure of the real estate market and bring about efficiencies in the sale of the online property.

    The existing grey areas of taxation will be eliminated as paper invoicing becomes passé and will bring about greater transparency in tax compliance. This will bring in the much-required accountability for real estate developers as there is a large part of project expenditure that remains unrecorded due to the invoicing clout. A greater transparency in the sector will thus help prospective home buyers make an informed choice. The developers too will benefit from the smooth inflow of input credit and reduced procurement costs.

    Finally, the implementation of GST will improve supply chain efficiency and create a lucid audit trail and result in better monitoring of the sector. All of these, benefits will uplift the real estate sector as a whole and will attract more Foreign Direct Investment (FDI) in the sector. The key, however, lies in the successful implementation of GST that will improve sectoral efficiencies and result in better reformation. 

    Friday, 23 June 2017

    Versova or Oshiwara – Where Should you Consider Investing?

    Investing in real estate Mumbai can be a wise choice since the property rates have been constantly increasing with an increasing rate. Almost all places in Mumbai are good in terms of investing but when it comes to a comparison between the two places, then one needs to carefully check out the real estate market and its development at that particular location. One needs to study the real estate market of the past few years to get an idea of what has been the trend and several other factors affecting the market of real estate needs to be carefully studied. Versova and Oshiwara, both the places are good in terms of investment in real estate but Oshiwara has numerous advantages than Versova for investing.



    Reasons Why Oshiwara Has Added Advantages

    There are several advantages why one should choose Oshiwara for the purpose of investment are as mentioned below.
    • Oshiwara gets a lot of benefits from the transport facilities of the Andheri West. The place has a good connection with both the road and rail network. These networks connect Oshiwara to other regions of Mumbai. Oshiwara also benefits from the Andheri railway station which is one of the busiest in the country. Several buses are deployed by the municipal corporation of the state so that it becomes easier for the people to commute. Several people are choosing this place for living and there are several new residential projects in Mumbai coming up in this area which are ideal for investment purposes.
    • The upcoming metro rail project in this area will be of immense help to the people who travel from the eastern areas of the state to Navi Mumbai or Central Mumbai. This would be a mono rail project and would go above the ground. This facility is sure to increase the price of real estate Mumbai in Oshiwara and so this would be a good place from the point of view of the investors since this would give good returns on their investment.
    • The recreational and the entertainment facilities are well developed in recent times.  One can find several shopping complexes, luxury shopping malls, multiplexes, multi cuisine restaurants etc. which are the major source of attraction of this place and all these facilities are further adding up slowly to the price of real estate in Oshiwara and hence a very suitable place to invest in properties.
    • One can see the steady development of the residential properties in Oshiwara in the recent times. Some of the well – known property developers of Mumbai have invested here and there are several new luxury projects in Mumbai at Oshiwara which are coming up. These kinds of developments make it a favourable place for the investors. The developers have very well realized the potential of this particular area in terms of both residential and commercial growth as well.
    Thus, all the above - mentioned factors contributes to make Oshiwara an ideal destination for the purpose of investment. The prices of real estate have still not achieved the sky rocketing limits but it will happen in a matter of a few years and hence is perfect for investors. 

    Alipore Offers Better Prospects For Real Estate Development in Kolkata



    Alipore is located in southern Kolkata in West Bengal and is the headquarters of South 24 Paragans District. It is the poshest and costliest area of Kolkata with homes costing up to Rs. 12.7 crores. The higher real estate market and increasing property rates are due to Alipore’s good connectivity and proximity to major areas. Some of the most famous luxurious flats of Kolkata are built in this area. It is a commercial and residential hub with price trends increasing up to 10% - 12% in the past three years.
    Connectivity
    Alipore is well connected to its surrounding areas and major cities by a network of railways and roadways. It is surrounded by Tolly Nullah in the north and Bhowanipore in the east. On the west, it is surrounded by the Diamond Harbour Road and new Alipore borders it from the south. Alipore is connected to different parts of the city by the KSTC bus service. The nearest railway station is the Majherath Railway Station and New Alipore Railway Station. Netaji Subash Chandra Bose International Airport is the nearest airport located at a distance of 10 kms. It is also connected to the Kalighat Metro Station which connects it to major areas of the city. The roads are wide and the traffic area is sufficient, causing no problems whatsoever even during the peak hours.
    Profits
    With a well-developed infrastructure and increasing property rates, the locality of Alipore also provides all the civic amenities required to lead a posh and luxurious life of peace and content. The educational facilities are well provided for with some major institutions like Army Institute of Management, University of Calcutta, Lakshmipat Singhania Academy among others. Health services provided by the area are exceptional with some of the famous hospitals like Woodlands Multispecialty Center, Calcutta Medical Research Institute, BM Birla Heart Research Center among others being located here. Other then these, recreational centers and some of the city’s finest eateries are present in this locality. The Zoological Garden and historical monuments in the area are an attraction for tourists and people from all walks of life.
    Property Market
    The property rates in the city of Kolkata are continuously rising and Alipore is one of the leading localities to have the costliest property of Kolkata. Property rates in the area have risen upto Rs. 10 crores and the average buying price is Rs. 7210 per sq ft. The average rate for renting an apartment in Alipore is Rs. 35500 per month. Apartments in Alipore cost between the range of Rs. 60 lakhs – Rs. 2 crores and plots are placed at the rate of Rs. 5 Crores. Commercial space in Alipore can be rented at Rs. 55000 per month and most of the projects are residential housing.
    Upcoming Possibilities
    With increasing population, the real estate market of Alipore is continuously rising. The increasing property rates and price trends are attracting some of the known developers like Zenith Constructors, Urban Buildtech Pvt Ltd, Unique Constructions among others to invest in the area.
    With well-developed infrastructure and a large number of the residential properties, Alipore is sure to become the most lavish and posh suburb of Kolkata with elites of the society residing there. 

    Monday, 12 June 2017

    Top Reasons to Choose Hyderabad as Your Residential Destination


    "From a buoyant economy and dynamic workforce to an affordable real estate market, Hyderabad is trending as a buyer’s market. It not only boasts practical perks, such as a relatively lower crime rate and international schools, but it has that intangible quality that makes it both desirable and trendy.
    Here are top reasons to consider Hyderabad as your next city of residence.
    • Economical Market
    When it comes to property rates, Hyderabad is attractive in comparison to the top residential real estate markets across the country. The city is probably one of the most affordable among tier 1 cities of India. If you are looking for budget homes in Hyderabad, then this is the city is the right choice. According to the Buy vs. Rent Report 2016 by ArthaYantra, Hyderabad has witnessed de-growth in real estate costs by 3% since 2007. This is a far cry from top cities, such as Mumbai, Delhi-NCR and Chennai, where real estate is still beyond the reach of a middle-income household. In Mumbai, the average cost of buying a 1,000 square feet home is Rs.1.91 crore. On the other hand, you can buy flats in Hyderabad in well-developed residential areas such as Kukatpally, Manikonda, Sainikpuri and Miyapur in the budget range of Rs.30-50 lakh.
    • Infrastructure and Connectivity
    An IT/ITes investment zone II is coming up in the south and southwest part of Hyderabad. The upcoming Hyderabad Metro Rail will further enhance the city’s attractiveness as a real estate destination. More international schools have cropped up in recent years, contributing to making Hyderabad a city of choice. In addition, the city is located 22 km from the Rajiv Gandhi International Airport, which offers a good variety of international flights.
    • Be a part of the Growing Industry
    Major companies such as Uber, Salesforce, and Flydubai have queued up to set up or expand their operations in Hyderabad. Industry giants such as Apple, Google and Amazon took the decision in 2015 to set up their development centres in the city. Little wonder that the Telangana government announced that the city’s IT exports reached a milestone of Rs.75,070 crore in 2015-16. This was 13.26% more than the previous fiscal year. What is more, Hyderabad generated nearly 35,611 new jobs in IT industry during 2015-16, taking the total workforce to 4,07,385.
    • One of the safest Indian cities
    Mercer’s survey has listed Hyderabad as one of the safest cities across the world—a list that also includes Chennai and Bengaluru. The city has a personal safety ranking of 121, a number that was accorded after a thorough study of crime figure levels, internal stability and performance of local law enforcement agencies."