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Income Tax Benefits on House Rent

March 22, 2019 by balajisymphony  

Property in Navi Mumbai

To meet the high costs of living in rented accommodations, employers pay house rent allowance (HRA) to their employees. India’s income tax laws also provide benefits to people who do not own a house and live on rent, without receiving HRA. However, the tax benefit differs, in each case.

Tax benefits available to salaried people who receive HRA from their employers

You are entitled to tax exemption under Section 10 (13A) of the Income Tax Act, with respect to the HRA received by you, subject to certain limits and conditions. The first condition, is that you should actually be paying rent for a residential accommodation occupied by you. This means that the accommodation should be in a place where you are employed. Moreover, you should not be the owner (sole owner or co-owner) of the accommodation for which you are paying rent.

This situation may arise, when the tax payer pays rent to the joint owner of the property, or if the property owned by the tax payer is leased to the employer under an arrangement where the employer gives the same back to the employee on rent.

The quantum of deduction, will depend on where the employee is staying. The exempt amount of the HRA would be lowest of the following:

HRA actually received.
50% of the salary (for employees staying in metropolitan cities of Mumbai, Kolkata, Delhi or Chennai), or 40% of the salary (for employees living elsewhere).
Excess of the rent paid over 10% of the salary.

Salary for the above purpose includes the basic salary, dearness allowance and any fixed commission as percentage of turnover. All other allowances shall be excluded. For the purpose of computing the exemption, the salary shall only be considered for the period for which you have paid the rent. Consequently, no HRA tax benefit shall be available, if the rent paid by you does not exceed 10% of the salary for the relevant period.

Rent paid by people who are not in receipt of HRA

Section 80GG of the Income Tax Act also allows deduction on the rent paid by a person. This can be claimed by self-employed people, as well as employees who do not receive any HRA from their employers. The benefit is allowed as a deduction from one’s total income. However, the deduction is restricted to 25% of the total income, or excess of rent actually paid over 10% of the total income. Moreover, the maximum deduction that can be claimed in a year is Rs 60,000 and Rs 5,000 per month.

This 10% deduction is not based on the period for which you occupy the rented premises. Hence, you can claim the full deduction, even if you have occupied the rented premises for one month. However, this benefit cannot be claimed, if you, your spouse, or minor child also own any residential accommodation in the same region. It also cannot be claimed, if the HUF of which you are a member, owns residential property at the same place where you reside. So, even if the property owned by the specified persons above is let-out, you still cannot claim the benefits for rent paid under section 80GG. You also cannot claim this deduction, if you own a house property at any other place, which is not let-out and claimed as self-occupied.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.

Source: https://housing.com/news/income-tax-benefits-house-rent/

Taxation of Profits From The Sale of Assets Used in Business And Exemptions on Such Profits

March 20, 2019 by balajisymphony  

Property in Navi Mumbai

With respect to assets that are used for the purpose of business, tax payers are allowed to claim depreciation on the cost of acquisition of such assets. The depreciation, under the income tax laws, for such assets is allowed, on the basis of a concept called ‘block of assets’. There are different classes/types of assets, like tangible and intangible. Within the tangible class, there are various categories of assets like plant and machinery, building, furniture and fixtures, etc.

For the purpose of taxation, all the assets falling under the same class and for which the same rate of depreciation is prescribed, constitute one block of asset.

Computation of profit or loss from sale of business property in an asset block

Unlike regular accounting where the depreciation is calculated with reference to the cost or written down value of each asset, the depreciation for a particular block of assets is computed in an aggregate manner. If there are more than one assets in one particular block of assets, the depreciation is calculated on the value arrived at after adding the cost of acquisition for the assets purchased during the year and falling under the same block of assets, to the written down value of the block at the beginning of the year and by reducing the sale price of one or more assets sold during the year.

So, depreciation will only be admissible, if the value of the block of assets so calculated is a positive figure. If the computation as stated above results into a negative figure, then, the same is treated as capital gains. For example, consider that the value of the opening balance of a block of assets of office premises, comprising of more than one office, is Rs 50 lakhs. If a businessman disposes of one or more offices for Rs one crore, this makes the value of the block of assets -Rs 50 lakhs. Since depreciation cannot be calculated on a negative figure, the amount of Rs 50 lakhs of surplus is treated as capital gains. Even a single asset on which depreciation is allowed, is treated as block for income tax purposes.

Impact of holding period on profit from the sale of business property

In normal circumstances, the taxability of the surplus of Rs 50 lakhs accruing from the sale of the property, would depend on the period for which the asset was held. In case of profits on sale of office/ residential premises that are not used for business but are let out, on which no depreciation can be claimed, if the same is held for more than 24 months, it would have been taxed as long-term capital gains. However, for assets that are used by the tax payer in his business, the profits arising from the block of assets of a particular class turning negative, is treated as short-term capital gains under Section 50 of the Income tax Act. Long-term capital gains on properties are taxed at a flat rate of 20 per cent, whereas short-term capital gains on properties are taxed at the slab rate applicable to you.

There are two consequences that follow, if a particular property is treated as a short-term capital asset:

The tax payer loses his right to take the benefit of enhancing his cost of acquisition, by availing of the benefit of indexation.

The tax payer loses the benefit of paying tax at a flat rate of 20 per cent on such surplus and instead, will have to pay tax on such profits at rates as high as 30 per cent and that too, without the benefit of indexation.

Section 50 versus Section 54 of the Income Tax Act

Generally, for profits on sale of properties, which are held for more than 24 months, you are entitled to claim various exemptions, if you make investments in another residential house under Section 54 or 54F, depending on whether you have sold a residential house or any other capital asset. Alternatively, you can invest the capital gains in bonds of specified financial institutions under Section 54EC, to avail of the exemption from long-term capital gains tax.

However, the provisions of Section 50 treat the surplus on sale of a depreciable business asset as a short-term gain and thus, not eligible for either the benefit of indexation or concessional tax rate of 20 per cent. While there is no clear bar on the tax payer claiming the benefit of exemption by making investments in a house or capital gains bonds, the income tax officials have been denying this exemption to the tax payers, on the contention that these benefits are available for long-term capital gains only and the surplus on a block of assets is to be treated as short-term gains, as per Section 50 of the Income Tax Act.

Income Tax Tribunal’s decision on claiming exemption from capital gains

The same issue was taken up recently, before the Income Tax Appellate Tribunal of Mumbai, in the case of Smt Jaya Deepak Bhavnani, where the tax payer had sold an asset on which depreciation was claimed. The tax payer had only one asset in the block, which was sold at a higher price than the written down value of the asset, which resulted in the block of asset turning negative. The tax payer had invested the entire sale proceeds, as required under Section 54F, for buying a residential house and had claimed exemption under Section 54F. The assessing officer disallowed the claim of exemption of the tax payer but the commissioner of appeals (CIT(A)) allowed the claim. The Income-Tax Department appealed before the tribunal, against the allowance of exemption by the commissioner of appeals.

While deciding this case, the Income Tax Tribunal followed the decision of the Mumbai High Court, in the case of CIT v/s ACE Builders (P) Ltd, where the Bombay High Court had held that the provision of Section 50 only provides for treating the profits on business asset as short-term but at the same time does not provide that the holding period shall also be deemed, to make such asset as short-term. The Tribunal, therefore, held that if the holding period of the property being sold is more than 36 months (now 24 months), because Section 54F makes the exemption available on the basis of the holding period of the asset being sold, then, the exemption is not barred just because some deeming provision treats such profits as short-term.

Hence, even if the profits from the sale of depreciable assets are treated as short-term capital gains, an assessee will still be entitled to claim the exemptions available to a long-term capital asset, if the same is held for more than 24 months in the case of immovable properties and 36 months in the case of other assets.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


NRI Investments in India: The Essential Checklist

March 19, 2019 by balajisymphony  

Property in Navi Mumbai

Presently, Indian real estate is a very popular investment option for most NRIs. However, since they live abroad, it becomes more important for them to do proper due diligence before risking their money.

Important checks for NRIs

Nowadays, many Indian developers conduct roadshows abroad. NRIs should not be entirely convinced by impressive presentations and glossy brochures. They should have someone trusted visit the property’s site and check the ground realities. Like all real estate investments, the location of the project should be attractive and should enjoy good connectivity.

Pricing is another important issue. “Often, the prices quoted by builders to buyers abroad, are higher than those quoted to domestic buyers. Also, builders don’t offer discounts when selling abroad,” points out Sanjay Sharma, managing director, Qubrex Realty, a Gurugram-based real estate consultancy. In such a scenario, the international buyer must learn the rate at which the project is being sold in India. Furthermore, they should avoid paying a large part of the cost upfront. In fact, they should opt for either a construction-linked payment plan or the 80:20 or 70:30 scheme. In such schemes, a small portion of the cost is paid upfront at the time of booking, and the balance is paid on possession. Better still, they should opt for finished apartments to avoid the risk of delay in possession.

It may also be wise for NRIs to take a small bank loan, even if they don’t need the money. “When an NRI takes a loan, the bank will do the due diligence on their behalf,” explains Sharma. “It will check whether the builder owns the land on which he is developing the project and has obtained the requisite licenses. This will avoid a lot of trouble,” points out Sharma, adding that he has witnessed quite a few examples of NRIs investing in small builders’ projects and then regretting not having done timely research.

Indian laws governing NRI transactions

NRIs investing in India must understand the laws that govern real estate transactions. There are, for instance, restrictions on how quickly the profit from a real estate transaction can be repatriated. NRIs also need to learn whether their gains will be subject to double taxation.

Market research for NRIs

The real estate sector in the developed markets is better governed and more evolved, unlike India. Here, buyers are often subjected to a lot of hassles. Unless an NRI has a trusted person running errands in India, buying real estate in India could be challenging. Then there’s the management of the property as there are not many companies in India still that offer such services. This makes it all the more essential that an NRI has an agent to collect the rent as well as look after its maintenance.

ROI expectations for NRIs

“The theory of mean reversion suggests that returns from real estate, are likely to be lower than they have been in the recent past,” explains Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors. “Therefore, NRIs investing in residential real estate at this point of time, should have reasonable return expectations over a long-term period,” he says. Finally, NRIs also need to be aware that the depreciation of the rupee against their home currency, will also have a bearing on their returns.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.

Source: https://housing.com/news/nri-investments-india-essential-checklist/

Is 2019 The Best Time to Buy a House?

March 15, 2019 by balajisymphony  

Property in Navi Mumbai

The Indian real estate sector has witnessed several positive developments over the past few years, with schemes like the Pradhan Mantri Awas Yojana (PMAY), the granting of infrastructure status to affordable housing, 100 per cent tax exemption on the profits for developers building affordable homes, implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) and the subsidy schemes for first-time buyers of residential properties. The push towards infrastructure development also makes it an ideal time to invest in real estate, as the prices in a locality often increase, after the completion of an infrastructure project in its vicinity.

Mumbai’s recent development plan, for example, will enhance the infrastructure in the city, points out Amit Ruparel, managing director, Ruparel Realty. “The increasing number of metro lines, are closing the gap between distant places. The construction of more highways and other infrastructural development, will facilitate real estate industry, as well. Owing to the prolonged sluggishness in the industry, property prices have gone down significantly. Hence, home buyers should certainly take advantage of the situation,” Ruparel says.

Affordable and mid-segment housing in 2019

In the past few years, many developers have launched affordable and mid-segment housing projects. Industry experts are of the view that this is where the demand exists. According to Pritam Chivukula, co-founder and director, Tridhaatu Realty & Infra Pvt Ltd, “There has been a resurgence in Mumbai’s residential property market, with increased sales happening mainly in the affordable and mid- segment of the market, towards the second half of 2018. This provides a roadmap for 2019, which will see better conversion rates and creation of more housing stock, catering to these buyers.”

Aditya Kedia, managing director of Transcon Developers, adds that the government’s decision to grant infrastructure status to ‘affordable housing’ and the lower Goods and Services Tax (GST) rate on this segment, have brought relief to buyers and increased housing demand. “Easily available financing options, are further streamlining the property purchase of buyers and this is expected to result in an overall growth in real estate, in 2019,” says Kedia. Nevertheless, a majority of home buyers are likely to focus on ready-to-move-in apartments, where the GST is not applicable.

Reduced GST rates from April 1, 2019

Farshid Cooper; Managing Director at Spenta Corporation, explains “The 33rd GST council meeting was positive for homebuyers and in turn for developers. The issues regarding transaction costs and affordability which have plagued the sector over the last 18 months or so has been addressed. With the reduction in the rates of under construction buildings to 5% from the earlier 12%, the developer fraternity will be relieved as this could potentially be the catalyst to boost demand for under construction homes. Further, the reduction in rates from 8% to 1% for the affordable housing sector, will help the sector grow and go a long way in achieving the honorary prime minister’s vision of housing for all by 2022. Also, doing away the ITC (Input Tax Credit) will make GST compliance easier and more cost-effective for developers. That said, without ITC developers will now have to deal with increased cost of 18% (which is the GST rate for most construction-related items) and account for the same when planning cash flows and project costs.”

Second home segment to witness a revival

With modern day home buyers increasingly exposed to global norms through their travels, there is an increasing segment of buyers that is looking for uniquely designed homes in tourist destinations. According to Dhruthi Reddy Kasu, director, Kasu Assets, “People appreciate and value homes that are unique in design, as it enables the home buyers to have a fresh experience. This has a direct impact on the second homes market, where more people want the opportunity to have a getaway with family and friends, away from their otherwise urban lives.” Punit Agarwal, CEO of Nirvana Realty, says that the second homes market remained pretty much stagnant over the past few years.

“There was muted response from buyers, although many projects were completed on time. It was only during Dussehra 2018 that the sector seemed to gain any ground, as buyers once again saw the opportunity to earn returns from the second homes segment. This segment will, hopefully, see better days after the Lok Sabha polls,” he reasons.

HNI investment in Indian realty and returns on investment

Ramesh Sanghvi, CMD of Sanghvi Parrsssva, foresees a lot of investment in Indian real estate, from non-resident Indians (NRIs) and foreign investors, in 2019. “This is the right time to take a ‘buy’ decision, as buyers can secure discounts and deals across all the segments, as developers are struggling with excess inventory. Moreover, interest rates on home loans are likely to increase, forcing investors and end-users to take a call immediately,” he elaborates.

With developers holding back on launching new projects, the demand-supply gap is likely to increase, thereby, giving good returns on investment. Niranjan Hiranandani, co-founder and managing director of the Hiranandani Group, points out that for investors, real estate is about appreciation in capital values or rental income, while for others, it is an option for wealth creation. “Given the prevailing price points, the first half of 2019 would be an apt time to buy a home. This is a factor which should be taken advantage of, by the home seekers,” he maintains. Developers have also become more aware of what the buyers are looking for. Dhaval Shah, joint managing director of the Parinee Group, concludes that offers like fully furnished homes, easy subvention schemes and relatively easy availability of home loans, are some of the reasons why one should not wait to make a real estate investment in 2019.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


Legal Tips For Buying Agricultural Land In India

March 14, 2019 by balajisymphony  

Property in Navi Mumbai

Buying a piece of land, for many, is the first step towards building one’s own home. Hence, it is important to confirm that the land has a clear and marketable title, to avoid falling into legal hassles. While buying agricultural land in India, one has to confirm that there are no disputes or legal hassles and the process of registering has to be hassle-free. Procedures for buying agricultural land vary from state to state.

In some states like Telangana, anyone can buy agricultural land, regardless of whether or not they are farmers. However in other states, like Karnataka, only registered farmers or those from farming families can buy agricultural land. Therefore, one should be aware of the rules in the state, prior to buying agricultural land. Given below are some of the points that one should consider, for buying agricultural land in India.

Title deed of the land plot

The title of the property confirms the seller’s name and also verifies whether the seller has an absolute right to sell the property. The original present deed and previous deeds, should be examined by a lawyer, to verify that the seller has not allowed access to others through this land. If there is more than one person owning the land, it is important to have the release certificate from the other participants involved, before registering the documents.


After the verification of all the documents, a written agreement on the cost, advance payment and the time within which the actual sale will take place, is made. The agreement must be drawn by a lawyer and should be signed by both the parties and two witnesses.

Stamp duty on the land

Stamp duties are government taxes and vary from state to state. A stamp duty paid shall be considered a legal document and can be admitted in court, as evidence.

Registration of the land

Registration is the process by which a copy of a document is recorded and the title of the immovable property is transferred in the name of the buyer, at the registrar’s office. As per the Indian Registration Act 1908, the deed should be registered at the sub-registrar’s office, within four months of the date of the execution of the document. Details such as original title deed, previous deeds, house tax receipts and two witnesses for registration of the property, should be provided in the document.

Conveyance deed or sale deed of the land

A sale deed is a document that transfers the title of the property, from the seller to the buyer. This document will help you to determine ownership of the property, where the property is located and the details such as site measurement, boundary details, etc.

Tax receipt and bills

The buyer should check the latest property tax bills and can ask for the same at municipal offices. The buyer must also ensure that notices or requests relating to the property are not outstanding. Water, electricity are other bills, should be up to date.

Encumbrance certificate

An encumbrance certificate may be obtained from the sub-registrar’s office, for the last 13 or 30 years, to ensure that the land has no legal duties or complaints.

Measuring the land

A recognised surveyor can ensure that the measurements of the plot and its boundaries are accurate and as indicated in the title certificate.

Changing the title of the land in the village office

The entire legal procedure for the purchase of the property is completed, only if the name of the new owner is added to the village office record. An application can be made to the village office, together with a copy of the registered deed.

Purchasing land from NRI land owners

A person staying abroad can sell his or her land in India, by authorising a third party to sell the land on his or her behalf. In such cases, the power of attorney should be witnessed and duly signed by an officer in his province’s Indian embassy.

Important guidelines to convert agricultural land into non-agricultural use

Any development, which has to be undertaken in agricultural land, should take place only after converting the land into non-agricultural use.

An application form has to be submitted to the concerned authorities, clarifying the reason behind conversion.

The necessary documents like sale deed, tax paid receipt and mutation letter, have to be submitted with the application form, along with details like the dimensions and extent.

Depending on the property and locality, a fee should be paid for the land to be converted to non-agricultural purposes.

The authorised person, like the deputy commissioner or the collector, will permit conversion of the land if the necessary conditions have been met and no litigation is pending.

The land is declared non-agricultural land, after it receives the official conversion certificate.

Above all, when buying a property, home buyers should check the previous land records and always buy it from a trusted and renowned developer.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


Maharashtra Stamp Duty Amnesty Scheme 2019: How Does It Work

March 13, 2019 by balajisymphony  

Property in Navi Mumbai

Stamp duty is a state subject and is administered by the respective states. The government of Maharashtra, on March 1, 2019, announced an amnesty scheme with respect to the penalty that can be levied for insufficient payment of stamp duty made in the past. The scheme is available only for certain real estate transactions.

Stamp duty in Maharashtra and existing penalty provisions

When you enter into any transaction of immovable property, whether it is a lease or sale or mortgage of the property, you are required to pay appropriate stamp duty on the agreement under which such transaction is being done. You are also required to register the document with the office of the registrar.

In case adequate stamp duty is not paid with respect to any instrument, the instrument is not accepted as evidence in any legal proceeding. Moreover, such inadequately stamped documents can also be impounded by the judicial authority, as and when submitted as evidence.

In order to rectify any such infirmity in the inadequately stamped document and to make it admissible as evidence, you are required to pay the differential amount of duty. You are also required to pay a penalty, calculated at 2% of the deficient amount of stamp duty, from the date of execution of the document till the date of payment of deficient stamp duty. However, the maximum amount of stamp duty that can be levied in such cases shall not exceed 400% of the deficient duty.

Gist of the Maharashtra stamp duty amnesty scheme

The scheme proposes to limit the penalty payable on certain transactions to 10% of the deficient stamp duty, instead of the 400% which can be levied in normal course by the government. The scheme can be availed of only with respect to inadequately stamped documents and cannot be availed of, if no stamp duty has been paid at all for such instrument. However, for documents executed by government corporations like the Maharashtra Housing and Area Development Authority (MHADA), City and Industrial Development Corporation of Maharashtra Limited (CIDCO) and Slum Rehabilitation Authority (SRA), the benefits under this amnesty scheme can be availed of, even if no stamp duty has been paid on such documents.

The scheme applies to all the transactions of sale or transfer of tenancy rights, of residential houses within Maharashtra. It even covers any instrument purporting to allot, transfer or sale any of the units in a housing society, which are eligible for deemed conveyance or for which deemed conveyance is pending. It also applies to transactions of allotment or transfer of all the immovable property units, whether residential or non-residential, of CIDCO, MHADA or SRA.

You can avail of the amnesty scheme for all the cases where the action for recovery of deficient duty has been initiated, or the cases which are subject matter of appeal before any stamp duty authority or before any court of law and with respect to which no decision has yet been pronounced. In case of pending appeal, you will have to withdraw the appeal unconditionally, before making an application under this scheme, with a declaration to this effect in the application form. You can also avail of this scheme for the documents that were not adequately stamped and you want to get them regularised. You can also avail of the benefit under this scheme, in cases where applications were made under any previous amnesty scheme and the stamp duty and penalty was not paid, by filing a fresh application.

However, you cannot avail of the amnesty under this scheme, to claim any refund of penalty if the same has already been paid, before the announcement of this scheme. This scheme is available only for documents that have been executed on or before December 31, 2018.

How to avail of the amnesty scheme on stamp duty penalty?

Any person who is party to any documents, or his successor in the title to the property, as well as power of attorney holders, are eligible to apply under this scheme.

In case you wish to avail of the benefit of reduced penalty under this scheme, you are required to make an application in Form A prescribed under the scheme. You are required to furnish your basic details, as well as that of the property which is subject matter of the documents. You are also required to submit the original instrument on which inadequate stamp duty was paid, along with self-attested copies of the other supporting documents. The application, along with the instrument and supporting documents, has to be made within a period of six months from March 1, 2019, i.e., by August 31, 2019, the period up to which the scheme will remain open.

Once the application is received in the stamp office, the amount of deficient duty, as well as the amount of penalty, will be communicated to you, based on the details submitted by you through an order. You are required to pay the amount stated in the order within 60 days, failing which your application will be treated as null and void.

Whom will this scheme benefit?

This scheme will benefit all the property owners who had purchased their present property in a housing society or those constructed by MHADA, CIDCO or SRA and the agreements thereof, were made only on stamp paper of nominal amount, or even in cases where the sale transaction was made on a plain paper, at a time when the registering authorities were not under any obligation to ensure that adequate stamp duty was paid on the document purporting to transfer the title in the property. This will help such owners to sell the property with ease, as the defect of inadequate stamp duty gets cured. It will also help many housing societies, where the conveyance is not yet done and wish to avail of the facility under deemed conveyance, for the land on which the building of the society is constructed. This will also help the residents of old housing societies who wish to opt for redevelopment.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


5 Reasons Why Online Home Booking Is Here To Stay

March 12, 2019 by balajisymphony  

Property in Navi Mumbai

In today’s digital world, online buying has become a norm. The online marketplace is so vast that there is hardly anything left out of its ambit. From a pack of noodles, or clothing to even jewellery, almost anything can be bought through online marketplaces.

With easy access to mobile data on smartphones, combined with platforms for secure online transaction, consumers have been exposed to a new channel of buying at the convenience of a click of a button. In the case of the real estate industry, consumers are predominantly more accustomed to the old practices of word-of-mouth or visiting the actual site, before making a buying decision. However, this is also slowly changing. With various benefits offered by the online medium for home booking, there is a deviation from the old pattern and a new trend can be seen, where online bookings and payments have risen in numbers.

Government policies like RERA give a boost to due diligence

With the government enacting consumer-friendly policies, such as the Real Estate (Regulation and Development) Act (RERA), it is mandatory for every developer to register their housing project with the authorities and provide certain specific details, for the benefit of home buyers. The consumer also has an option to check the credentials, reputation and the delivery track record of the builder, by researching online, before investing their hard-earned money in a project.

24×7 availability of online bookings eliminate barriers of distance and time

The biggest advantage of online bookings, is the fact that it is available to the consumer 24×7. All one needs, is an internet connection, to book a dream home. The proliferation of mobile devices with strong data connectivity across the country, has become a boon for consumers to make online purchases. This eliminates the need to visit a particular premises, to make payments. One can book a home by logging in and making the payment online.

Developers turn to technology to project transparency and woo customers

In a bid to project themselves as transparent to their consumers, developers are now offering the exact floor plans or specifications of homes online. Certain developers have even gone ahead and leveraged technology, to provide a 360-degree overview of residential projects and are also using virtual reality walkthroughs and interactive online chat desks, which provide consumers with ample information.

Online availability of sale agreements and home loan documentation, a boon for buyers

For consumers, especially first-time home buyers, heaps of paperwork involved in buying a home, can be daunting. Confusion, over the various types of documentation required and whether one has the completed the required paperwork, can derail the overall home buying experience. However, with much of this information now available online, this whole complicated process is made simple. This means that customers can conveniently pay the booking amount online and complete the other formalities later.

Attractive rates on online pre-booking of properties

The developers usually look to generate maximum sales for their housing project initially and resort to special offers, such as lower interest rates, discounts, freebies, etc., on pre-booking of properties. In such a scenario, pre-booking a home can be one of the smartest and affordable ways of owning a home. To facilitate this, developers offer the option to home buyers to book their home, by paying an initial price online and paying the rest through installments.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


Here’s Why Indian Real Estate Needs More Women in The Business

March 8, 2019 by balajisymphony  

Property in Navi Mumbai

A lot of research and discussion, have gone into the topic of gender diversity and the role of women in senior positions in companies. More often than not, most of the results pegged that companies with a higher percentage of women in leadership positions, tend to perform better than those with low women representation at senior positions, on a wide range of performance metrics.

The real estate industry, which has largely been male dominated with very few women in leadership positions, is slowly acknowledging this fact and is seeing a positive change. Not surprisingly though, as most of the large firms dealing with property are family-run businesses, the reins of the business were eventually passed on to the sons of the family. The construction business, because of the nature of the industry, with long hours on site, having to deal with contractors and workers, again became traditionally male-dominated. Consequently, the investment side also took a natural progression to being male-dominated.

Women’s participation in the real estate industry

Over the years, the Indian real estate sector has grown significantly. With the sector getting more organised, there has been increased international penetration into the Indian markets and increased service offerings. In this scenario, limiting the sector to only one segment of the population, also limits the available resources and talent base that is needed to take the sector forward. The expansion of companies and the need for talent, prompted the inclusion of more women into the sector.

Currently, while we do find that women feature strongly at the entry-level and administrative positions in the industry, their numbers dwindle as we go up the ladder. Those who make it to the leadership position, are clearly outliers – ambitious, talented and hungry for growth.

One of the most important factors, for the growing number of women in companies, is an inclusive workplace culture, where both, men and women, have the environment to succeed. Firms that value diversity and embrace high ethical standards, thus, providing opportunities for women to take on broader roles, will attract more female talent and eventually, have a larger talent base to pick from.

Being a woman in the real estate industry: An advantage?

With the real estate industry growing by leaps and bounds, today, if I look around me in my current organisation (Colliers International India), the opposite may hold true. There are more women than men, in the division responsible for selling homes. Being a woman in the real estate industry may, at times, be an advantage, as well. With qualities of empathy and persistence present in the DNA of most women, client relationships are honed to a larger extent. Women tend to be more nurturing, more sensitive and more patient towards client’s needs. Another aspect that women tend to bring into the business, is a more balanced and dispassionate outlook.

Women, typically, are good at balancing work and family and hence, are better at multitasking, which is a critical aspect in real estate, owing to the nature of the business. Women, in various segments of the sector, are able to bring in a unique combination of compassion, assertiveness, focus and determination. Qualified and educated women are able to balance out and provide the necessary synergies required to take the business forward.

The road ahead

Some women do opt-out prematurely, which could also be one of the reasons for their miniscule number at senior positions, not only in real estate, but in other businesses, as well. Nevertheless, visibility of women in leadership roles, examples of which are mushrooming now, have nurtured the art of balancing work and family and in turn, are helping and motivating the younger, ambitious ones. With the sector moving towards maturity, we need to see more women taking on leadership roles in all segments of real estate development, as well as consultancy. On this International Women’s Day, let’s celebrate the spirit of womanhood.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


Difference between HFC and bank: Which lender should you opt for?

March 7, 2019 by balajisymphony  

Property in Navi Mumbai

Housing Finance Companies (HFCs) are entities set up under a license by the National Housing Board (NHB), to provide home loans as per the NHB’s guidelines. On the other hand, banks are regulated by the Reserve Bank of India (RBI). New home buyers are often in a dilemma, over whether they should apply for a loan from an HFC or a bank. The recent liquidity crisis being faced by non-banking finance companies (NBFCs), has also raised serious doubts about their working style and people are concerned about its impact on their home loans.

Difference between home loans from HFCs and banks

“The primary difference between a bank and an NBFC/HFC is the way they calculate the rate of interest. Banks are mandated by the RBI, to follow the marginal cost of funds-based lending rate (MCLR) for all loans after April 2016. For example, for a home loan of up to Rs 30 lakhs, a leading bank may have a spread of 35-40 basis points above its one-year MCLR of 8.35 per cent. The interest rate in an MCLR-linked loan, will automatically change at fixed intervals that are clearly mentioned. On the other hand, loans by HFCs and NBFCs are linked to the prime lending rate (PLR),” explains Navin Chandani, chief business development officer, BankBazaar.

While banks cannot lend at rates below the MCLR, there is no such restriction on PLR-linked loans. HFCs and NBFCs are free to set their PLRs. This gives greater freedom to NBFCs, to increase or decrease their loan rates as per their requirements. However, this also means that it would take more time for the impact of rate cuts to reach the customers.

Impact of the liquidity crisis in NBFCs

According to Prashant Thakur, head – research, ANAROCK Property Consultants, the ongoing liquidity crisis in the NBFC industry, is the result of asset-liability mismatch (ALM).

“As NBFCs are not allowed to raise retail deposits from the general public, they depend on wholesale lending, for their capital requirement. As a result, the cost of funds for NBFCs, is higher than that of banks. The major mistake that most of the NBFCs and HFCs did, was to venture into long-term lending to developers and underwriting loans that had a very long-term payment duration,” Thakur explains.

Experts point out that companies with high credit ratings, have not had a problem and have been able to maintain their assets and liabilities. However due to liquidity requirements, if the debt facilities extended to HFCs are sold or discounted, albeit at higher rates, it may trigger a domino effect. “While the asset quality and financial strength of the HFC or NBFC may be intact, the need to provide for repayment of short-term loans, can lead to a shutdown in operations, thereby, further spooking the capital markets. HFCs are then forced to sell down their loan assets, recall short-term loans, conserve cash and repay their short-term loan obligations,” elaborates Amit Goenka, MD and CEO, Nisus Finance.

Advantages and disadvantages of HFCs and banks

Both HFCs and banks have their advantages and disadvantages. For instance, if you want to enjoy the best interest rates, then, a bank could be a better option. However, if your credit score is dented or if you need funds on an urgent basis, then an NBFC could be better suited for that requirement. Also, it depends on the type of services sought to be availed. If banking services are required along with home loans, then, the choice has to be a bank. If it is only a housing loan, then you can evaluate your options by comparing associated charges and facilities provided the bank and HFC players. Either way, it is best to do your homework and compare quotes, etc., before making the final decision.

Should you choose a NBFC or a bank?

Goenka maintains that the decision to opt for a particular home loan lender, should be based on the resilience and financial strength of the lender, irrespective of whether it is a bank or NBFC/HFC. “Long-standing players like HDFC, LIC Housing Finance, etc., are stable NBFC/ HFC companies, which compare with large banking players like SBI, ICICI Bank, etc. Hence, choosing a strong lender with deep-rooted history and operations, is the key in today’s times,” he concludes.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.


Tips To Choose A Retirement Home

March 6, 2019 by balajisymphony  

Property in Navi Mumbai

Sitalakshmi Gopalan, a retired school teacher in Delhi, invested in a senior living project in Coimbatore. Although her children continue to stay in Delhi, she was clear that she wanted to stay with people her age and live a leisurely life. Similarly, Jitender Singh and his wife, residents of Pune, whose children worked abroad, sold their property and invested in a senior living project in the city. Gopalan and Singh represent a small segment of buyers, who opt for retirement communities, in a country where the multi-generational ‘joint family’ structure still endures, despite modernisation.

Accounting for less than 1% of the $25-billion senior housing industry worldwide, the concept of senior citizen housing, still carries a social stigma in the country. According to a JLL analysis of 135 urban cities and towns in India, with a total population of 223 million and a total of 52 million households, households with seniors stood at 12.8 million (24.6%). Of these, the demand for formal senior living facilities, is estimated to be around 3,00,000 dwelling units.

However, there is a large gap between potential customers and customers who are aware of their requirements, points out Ashwin Kumar Iyer, CEO, Vedaanta Senior Living LLP. “Being a relatively new industry, the concept also needs to go through a steep awareness curve. Typically, the price for high-income senior units is around Rs 50-75 lakhs and above, while it is Rs 25-50 lakhs for mid-income and Rs 10-25 lakhs for low-income,” adds Iyer.

Hotspots for retirement home projects

Although there is a nationwide requirement for senior housing, south India seems to be the largest market.

“We found that Tamil Nadu had the largest percentage of senior customers with high per capita income, making it a very interesting state for projects on senior living,” says Ankur Gupta, joint managing director, Ashiana Housing Ltd.
Consumers in this segment, prefer properties that have open spaces, pollution-free environment and are close to their friends and family. People like to retire in places, where they spent a lot of time, or their children are settled. Therefore, projects along the outskirts of cities and towns, have witnessed good demand.
Cities like Coimbatore, Chennai, Bengaluru, Pune, Puducherry, Hyderabad, Kanchipuram and Bhiwadi, have become popular locations for senior living.

Amenities that a senior living complex should have

The amenities of a senior living complex, are different from other target age groups. The projects should be self-sustaining, so that the residents do not have to venture out to look for basic services. “Home seekers should consider the cost of the dwelling unit, monthly maintenance charges, presence of healthcare facilities and other amenities for senior citizens at the community site. This includes quality food, clean water and space for exercise and leisure,” says Dr PM Chandrashekara, resident medical officer and board member, Sushruta Vishranthi Dhama Ltd: Suvidha Retirement Village.

The project should also have easy access to transport facilities, railway stations and the airport, if possible. The retirement community should, ideally, be located in a serene location, with good ventilation and sunlight and also be connected to the city’s main areas.

Property prices in senior citizen projects

So, would the addition of senior-friendly amenities, add to the total cost of the project?

“Yes, the cost will be 10%-15% higher than a regular project,” says Iyer. Gupta explains that the planning of facilities and designing a senior living complex, can add almost Rs 100 per sq ft to the construction cost. “There are two categories of investors, in the retirement home segment. The first category, invests with a view to sell the dwelling at an appropriate time and make a profit. The second are genuine retirees, who want to live in a community project that is designed for people of their age,” says Chandrashekara.

Costs and benefits to consider, in senior living projects

The price for high-income senior living units is around Rs 50-75 lakhs and above, while it is Rs 25-50 lakhs for mid-income and Rs 10-25 lakhs for low-income.

Factors that one should look for in a retirement home, include its location, accessibility from the airport and railway station, proximity and availability of medical services and hospitals and connectivity to the city.

Balaji Symphony is one of the best Luxury residential and Commercial Real Estate developer and Builders in Panvel, Navi Mumbai. Provides lavish and luxurious developed 1 BHK, 2 BHK and 3 BHK Flats & Projects in Panvel. The venture is well prepared with all contemporary facilities and 24X7 protection support to accomplish the needs of the citizens with modern amenities and security services. Buy Property in Navi Mumbai.

Source: https://housing.com/news/tips-choose-retirement-home/