Home Buyers to be Protected Against Insolvent Builders

A detailed means of action is being sought after by the Ministry of Housing and Urban Affairs to protect those homebuyers who are victims of the builders facing insolvency.

As told by a senior official of the Ministry, they want to be reassured that this act of protection is meant for the homebuyers that come under the vulnerable category. They have joined hands with the Ministries of Finance and Corporate Affairs with the sole expectation of fully protecting the interests of such homebuyers who are prone to attacks by builders.

The IBBI (Insolvency & Bankruptcy Board of India) made amendments on the fifth of October, this year. It has made it mandatory for the company to state in its resolution how it has tackled all its stakeholders’ interests in different projects, which appeared as a move for comforting homebuyers. The law that has protected the Government revenues, creditors and lenders’ interests, has been found to be demanding in the case of homebuyers. They are the ones who have spent the savings of their lifetime just to unknowingly invest in the projects of companies facing insolvency. In the words of Government sources, such problems in the Real Estate industry were not imagined during the enactment of this Act.

Hardeep Singh Puri, the Minister of Urban Affairs, brought his concern into the focus of the Finance Minister, Arun Jaitley. This intervention at the ministerial level has resulted in this notification of IBBI. Previously, other amendments have been initiated to handle the challenges that are emerging for the homebuyers.

According to the Government sources, the current issues will remain restricted to the ongoing projects without expanding further. The various legal reforms in the recent years such as the enactment of the RERA(Real Estate Regulatory Authority), implementation of GST and IBC are sufficient for safeguarding the homebuyers’ interests.

Hope, the news was a bit soothing for all the buyers out there? For more of such relevant information, feel free to contact us at Transventor Property Management Services Pvt Ltd. We offer accurate solutions to make your experience enriching when buying, selling or renting a property.

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Recent Changes in the Real Estate Industry, for the Better

The real estate industry is going through an interesting phase at present. Several high impact policy events have entered the scene in the shape of PMAY, GST, RERA, and demonetization. And as we all know, these events have the capacity of making permanent and structural transformations in the industry. The consumer demand has also increased in the last twelve months as is evident in the recent data from Magicbricks. The number of property transactions was very less in the previous two years but according to the data, at present, there is an increase of 51 percent. The number of active buyers has risen from 3.4 lakhs in July 2016 to 5.3 lakhs in June 2017.

A lot of new buyers have entered the property market resulting in a significant increase of 25 percent. Whereas, those property seekers who have entered the market a month ago or more than that have also doubled in number from 1.4 lakhs to 2.8 lakhs. This shows that the consumers are taking more time to settle on buying a property. The budget segment ranging from 0 to 80 lakhs has seen the highest demand among the buyers with a 73% growth during the previous year. This was followed by a decrease in the growth of luxury and mid-market segments at 13 and 28 percents respectively. But this growth is not the same in all the cities, with that in Kolkata, Mumbai Chennai and Hyderabad leading it.

So, what is motivating people to buy homes?

  •    The introduction of RERA and other such Acts are protecting the consumers’ interests.
  •    Rates of home loan are continuously softening.
  •    Timely completion of the real estate projects
  •    Governmental schemes like CLSS and PMAY are offering affordable housing
  •    Last but not the least, the ongoing urbanization and the urge of owning a home

However, the number of transactions is nowhere close to the above-mentioned numbers. But the increase in the number of buyers is expected to transform into transactions at the dawn of the upcoming festivals. Let’s hope for the best! If this reading has helped you then you may contact us at Transventor Property Management Services Ltd. We effectively cater to all your requirements regarding the buying, selling or rent of any property.

Consequences of Gst to Be Faced by the Real Estate Industry in Kolkata

The average price of upscale properties in Kolkata is ready to soar high up in the air with prices ranging from Rs 35 to 50 lakhs. Premium project developers are awaiting July 1 with fear since GST will come into effect that day and crash the city’s real estate industry as anticipated.

The posh localities of Kolkata like Ballygunge, Alipore, Chowringhee, Southern Avenue, Rawdon and Loudon Streets are going to be most affected since, the development cost in these areas is very high. The developers are obliged to pass GST burden on to the customers as land neither comes under ‘services’ or ‘goods’.

According to the president of CREDAI Bengal, the major real estate projects in Kolkata charge 20 to 80 percent of the development cost for the land. Previously, the 15% service tax used to offer a 70% concession for land. With the calculation of 12% GST, there will be no concession and the tax will increase by 7.5%, instead. The resulting hike in price shall worsen the already dampened market.

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The home buyers already need to pay 8.1% of the total development cost in terms of the registration fee and stamp duty. With GST coming into effect, the payment of tax fees will become 1/5th of the total project cost. Unlike the other high-value items, the rate of GST is not low for the real estate industry as stated by the former president of CREDAI Bengal. This will make situations tough for the home buyers in Kolkata.  For instance, a Rs 4.5 crore apartment at Alipore or Ballygunge will cost you 34 lakh rupees more from 1st July onwards.

The apartments in the city suburbs will get relatively less affected but the ones in Proper Kolkata will be the challenges for buyers. The cost of land charged by the developers in suburbs of the city is only 15 to 20 percent of the project value. Thus, it is evident that GST is about to create major obstacles to healthy business in the real estate industry.

Other than the land price being high in Kolkata and such other cities, the stamp duty is set on the basis of circle rate that makes it exceed the original transaction value. Thus, the developers have to pay sanction fee, land and development charges accounting for 4 to 5 percent of the selling price.

The past president of CREDAI Bengal believes that apartments within the range of 6000 rupees/ square feet will not get much affected. Consequently, the price of high-end and luxury projects will get higher.

The developers of under-construction projects are worried whether they will be able to benefit their customers at all. As we know, GST abatement on services and raw materials will come into effect only if they have been purchased after July 1. But for projects that are almost complete, input credit will hardly exist. Around 15000 apartments in Kolkata are under construction at present so you can imagine the scenario! For more of such helpful information, just log onto www.transventor.com

GST: A Ray of Hope to the Positive Growth of the Real Estate Industry

GST: A Ray of Hope to the Positive Growth of the Real Estate Industry

Through the abolition of multiple taxation systems, GST will make the system more transparent by making it streamlined. The economy will receive a positive impact and so will the real estate industry, as expected. Only one nodal agency will function rather than a multiple of them, thereby making the process methodical that will result in attracting greater FDI.

Multiple taxes lead to the confusion arising from the payment of different taxes at different stages of time. But with only one consolidated tax levied, such a problem won’t occur and things will get crystal clear. Now coming to the real estate industry, this too will be monitored in an efficient manner through a transparent audit track.

The multiple taxation system has its own side-effects that might cause inflation in prices for us. GST being a unified taxation system will bring this to an end. Now see how it works and why it is better than the previous taxation system.

As you all know that previously, VAT, excise duty and service tax were the three most important taxes.  GST being a consolidated tax has now replaced all three of them. Input credit was not available earlier. With the introduction of GST, both the developer and the contractor will get access to Input credit.

Be it a packet of salt or a house, the buyer was unable to know the actual price charged to him or her since it was a figure merged with all taxes. But GST will now offer you a transparent division of the total figure into the real cost and cost charged by it.

Economic procedures will become uniform in all parts of the country with the effect of GST. This will also simplify the existing tax structure, which is complex at present and calls for different procedures in different states. With so many changes that are going to occur for the better, the real estate sector is assumed get influenced by these.

Hope this news has put all you real estate buyers out there, in a good mood! For further information, do log onto www.transventor.com

How to Make Your Home Appear New to the Real Estate Agent for Selling

Ways to Make Your Property a Prime Piece That is Worth the Price You Demand from Buyers

Selling your own house or apartment that you’ve already used, can be a hard nut to crack. To make it smoother for you, we have come up with a few tricks that are of great help to anyone selling a home, especially the one who is a novice in such matters.

The First Impression

Whatever you have, try to present it in the finest possible way. Thus, you are suggested to get the walls painted and the furniture varnished. A little touch-up can take you way ahead in cracking a successful deal! Make sure that the entryway is free from any kind of clutter or unwanted waste.  Place small potted plants along the hallway to add warmth to your space.

Create an Open Atmosphere

Let the natural light enter your rooms by keeping the curtains apart. Those spaces that do not have enough exposure need to be lit up with floor or spot lights. Not a single nook or cranny should remain in the dark that might arouse any doubt in the visitor’s mind.  Position your furniture or move any excess of it so as to allow space for moving freely.

Repair the Flaws

Before fixing the visit of your real estate agent, you need to check out several little details such as worn-out woodwork, loose knobs, leading taps or sticking windows. In case, you have any such issue then do not forget to get it repaired.  Or else, the visitors may get the impression that your home hasn’t been maintained properly.

Infuse Serenity

All you require to do is to place potted plants or vases filled with flowers in strategic positions all over the house.  An environment with beautiful fragrance is bound to delight anyone who steps inside your home.

Clutter-free Storage Space

Your bedroom closet may not be a supersized one but try to make it look organized so that it does not impart any negative impression of the dearth of storage area in your house.  Storage space is one of the major concerns for the individual who will be buying the property.

Spotless Presentation

The bathroom and kitchen areas are the most important of all other spaces in your home. Keep your sinks clean and free from any kind of utensil ready to be washed.  Give a clean wipe or polish to the sink and the countertops so that they look crystal clear. In case, you have any of the taps dripping or slow passage of water through the drains then do get them repaired beforehand.  A nice basket or bowl filled with seasonal fruits will add a pop of natural colours to the kitchen or the dining space.

Keep Yourself and Pets Out of the Sight

It is quite natural that the agent or the buyers may not like your pet moving around all over the place and it might tend to be quite disturbing as well. So, do keep them away during the period of inspection.  You too are advised to keep yourself off from the range of the agent and the buyers so that the latter can express their opinions and interact freely with the former.

 

Hope these little do’s and don’ts have helped you and for further assistance, you may log onto www.transventor.com.

Waves of Change in the Indian Real Estate Industry

Waves of Change in the Real Estate Industry

The country’s real estate industry was in an unorganized and unregulated state for a long time. But the prime minister’s approach towards reformist policies has brought a progressive change in this sector.  Many policies have been introduced out of which, two of them appear to be the most powerful.

The real estate industry has become organized since 1st May 2017 when the RERA (Real Estate Regulation Act) came into action. It facilitates transparent transactions, which in turn makes the investors more confident and at the same time, the customers’ interests are also protected.

GST or (the Goods and Services Tax) is all set to operate from the first day of July, this year. It aims at creating a unified market by using the tools of tax predictability and transparency. This will remove centralized tax barriers and thus, enhance the efficiency of the supply chain.

With the compliance costs and expenses of tax management reducing to a considerable amount, the grip of taxes on the industry has loosened a bit. ITC (Input Tax Credit) is another such provision that is also responsible for the present status.

Several mortgage reforms like CLSS and MCLR have been undertaken by the Central government. Along with this, a strict check on the artificial inflation of price and black money has made things easy for real estate buyers. The commercial segment of the industry has already experienced the change for the better while the residential segment will move into the light soon.

For more of such useful and relevant information, please visit www.transventor.com

Give Your Home the Perfect Look that Fits Your Lifestyle

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Decorating the home is the second most challenging task next to buying a home that you have longed for.  Home interior designing may be a hobby for some but is quite tough for most of us. In this blog, we are sharing some ideas with you that will make way for more thoughts in your mind regarding decoration concepts feasible for your living space. A design is complete only when all its elements are in sync.

Go Floral

If you are fond of colours and love a cheerful ambience then fabrics in floral patterns will be the most appropriate for your living room. Be it the window draperies, upholsteries or cushion covers; infuse floral prints in varying colour combinations ensuring that they do complement the surroundings.

Buy Fabrics Prior to Painting

It is wise to select the fabrics first for any room and then move onto painting the walls. In case, you have painted a wall red but it is quite possible that the fabric you choose might not complement it or is not available in that shade.

Retro Vibe

If you are fond of the retro style, you may include it in the decor of your living room. That old iron trunk of yours can be placed in the room as the centre coffee table with all your house cleaning supplies hiding in it.

Porcelain Power

You may buy or use the porcelain vases or potteries in that scintillating blue and white patterns that have been passed onto you by your previous generations. These have a charm of their own and add little details of colour to your room in an instant.

Telling the Time

Let your living room tell the time in a vintage way.  One of the walls can be used for displaying an antique clock with a giant dial. Other than adding character to your room, the watch will also keep you alert.

 

From neutral fabrics to striped curtains and from quaint to contemporary, there are endless ways of decorating your home in respect to its surroundings and space. So keep on exploring more ideas at www.transventor.com