SMART Cities a Launch pad for Real estate growth in India

With Digital India and Make in India Schemes Showing positive results in the growth of the Indian Economy the Modi Administration has initiated to Embark upon the next Ambitious Project to construct “SMART CITIES” across the country. 

What you should know about smart Cities?

It is estimated that in a minute 25-30 people in India migrate to Metropolitan cities in search of quality lifestyle at this momentum about 800 million people are expected to move to urban areas by 2050.

With a vision to foster Urbanization combined with technology government has taken the initiative to develop 100 other cities which are equivalent to metropolitan cities across the country, which will be referred to as smart cities. 

SMART CITY AND REAL ESTATE

To commence construction of smart cities it requires the appropriate use of technology and funding and implementing a well developed urban and infrastructure planning. With the approved budget of Rs 98000 crore by the Indian cabinet about 89% as per RICS (Royal institution of chartered surveyors) of the total budget is spent on property, infrastructure, housing and waste water management which will boost real estate market and encourage people to buy Houses at affordable prices. It is expected to provide employment opportunities and promote urbanization. This is expected to bolster real estate market in the following avenues.

·         Affordable housing

With allocation of land and capital about 2 crore homes will be built across all the urban locations over the next five years as more home are built this will energize  the housing market.

·         RERA coming to the aid of buyers

With the implementation of RERA (Real estate regulation Act 2016) effective since May 2017 that favors transparent real estate transactions will encourage buyers to explore and search for affordable properties across the cities.

·         Improved quality of life

With High quality infrastructure in place that facilitates economic development this will generate more employment opportunities and improve standard of living for people.

·         Smart City Mission is expected to provide sufficient water supply with aided with 24 hrs electricity

·         Introduction of good governance and e-governance along with active participation by citizens to ensure cordial relationship with the government.

·         Smart cities look to provide safety and security for women, children and senior citizens.

·         In addition to this Smart cities also ensure to maintain State of the art health facilities and provide holistic education for children.

·         It ensures A Robust IT Connectivity and digitalization.

To buy your dream home visit www.liveupindia.com

RERA-A Blessing in disguise for home buyers

RERA (Real Estate Regulatory Authority) is Real estate Regulation Act 2016 is an act of Parliament of India which has been formulated to protect the homebuyers and amplify Real Estate investment.
This act consists of 92 Sections. The act came into effect on May 1^st 2016 with 59 of 92 sections being notified and the remaining provisions of the act came to effect on May 1^st 2017.
The RERA act bill was initiated by Indian National Congress in the year 2013 which had 20 major amendments approved by the Union Cabinet by the recommendations of Rajya Sabha the bill was approved in the Upper house (Rajya Sabha) on March 10 2016 and by the lower house on March 15 2016.

Why RERA?

Property investment is an important and yet an emotional decision from a buyers perspective previously buyers have found that real estate transactions have largely favored developers which has had a significant impact on the buyers bank balance leaving them with a bitter experience, in order to make real estate purchase simpler, transparent and bring in accountability the central government introduced RERA read further to know how RERA protects buyers interest.

Here’s how RERA aids Buyers:

1.      To draw information pertaining to sanctioned building plans, layout plans and specifications which is approved by the competent authority.

2.      The buyer gets full has the right to information about Completion of project which includes provision of water supply, sanitation, electricity and other amenities.

3.      The buyer has the right to claim the possession of property.

4.      In case the seller/promoter fails to provide  possession of the property or building after payment has be done by the buyer, the buyer can claim refund along with the interest rate if prescribed and compensation provided under this act.

5.      Having necessary documents and plans after handing over the physical possession of property.

   Applicable penalties under RERA:

Applicable sections	Nature of offence	Penalties
Section 9(7)	Registration secured though misrepresentation or fraud           Breach of terms for which registration obtained	Revocation of Agent Registration Number
Section 62	Contravention of Section-9 & Section 10	Penalty of INR 10000/day during which default continues extending up to 5% of cost of unit sold
Section 65	Contravention of orders of RERA authorities	Penalty up to 5% of cost of unit sold
Section 66	Contravention of orders of appellate tribunal	Imprisonment up to 1 year or with fine extend up to 10% of cost of unit sold

Benefits of RERA from buyers perspective:

·         Protects buyer’s interest.

·         Quality products and timely delivery.

·         Safety and transparency of transaction.

·         Balanced agreements and treatment.

·         Sales are based on carpet area.

RERA in Karnataka

For Developers

1.      If any promoter contravenes the provisions of section 3, he will be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project as determined by the Authority.

2.      If any promoter does not comply with the orders, decisions or directions issued under sub-section (1) or continues to violate the provisions of section 3, he will be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further 10% of the estimated cost of the real estate project, or with both.

For Agents

According to section 62 states, if any real estate agent fails to comply with or contravenes the provisions of section 9 or section 10, he will be liable to a penalty of Rs. 10,000 for every day during which such default continues, which may cumulatively extend up to 5% of the cost of plot, apartment or buildings, as the case may be, of the real estate project, for which the sale or purchase has been facilitated as determined by the Authority.

To Buy your dream home visit our website www.liveupindia.com 

Affordable housing a game changer in the real estate sector

 Affordable housing dates back to 2007 but the real estate sector has faced various challenges such as lack of land, cascading taxes and lack of incentives has kept developers and buyers away. The government has granted much coveted infrastructure status towards affordable housing allowing developers to have access to cheaper sources of funding including external commercial borrowings.

Here’s Ashish Sharma CEO of LiveUp Solutions Sharing his Expert opinion below

 ”My government will also establish a dedicated Affordable Housing Fund (AHF) in the National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the government of India,"

This was the Statement Made by the Union Financial minister Arun Jaitley while presenting the Union Budget of 2018-19. The government has taken certain steps to boost real estate sector in India. With the launch of PMAY( Pradhaan mantri Awaas Yojana) Scheme in 2015 to Provide housing for all by 2022, with more than one crore houses being built in rural areas in addition to this the government has recommended the effective GST rate of 8% for houses under this scheme that Provides CLSS (Credit linked subsidy system.

However the houses under construction will attract 12% GST (With the provision of deducting 1/3^rd of the house price towards cost of land which will effective rate comes down to 12%.This will now be down by 4% which will reduce the tax rate to 8% for affordable homes).

During the initial lunch of PMAY scheme in 2015 interest subvention of 6.5% was provided for a loan of Rs 600000 for the economically weaker section (EWS) and Lower income Groups (LIG) until 2022.

A Statement by CBEC said that “one of the important recommendations is to extend the concessional rate of GST By 12%. The lowering of GST rates will likely aid the buyers and can subsequently avail interest subsidy under this scheme.

Currently assistance has been approved to construct 37lakh houses in urban areas.

This is expected to strengthen the affordable housing sector and will pave way towards better access to capital in related areas of development in urban and semi urban areas.

This move by the government would act as a relief for homebuyers which are uniquely targeted towards class of citizens based on their income criteria.

The promoters have been granted more time for project completion and have extended the deadline from 3 years to 5 years.

Government policies like RERA (Real estate regulation Act 2016) which aims to protect the interest of buyers by making real estate transactions transparent the market is expected to see an upswing in demand in the real estate sector this has enabled first time home buyers to make purchase decisions to buy a new home.

For homes under construction 18% GST Rate(Current)

·         12% effective GST Rate

·         *effective rate is calculated after deducting 1/3^rd of the house cost towards cost of land.

GST Rate proposed for affordable Homes

·         12% GST Rate

·         12% Effective GST Rate

*effective rate is calculated after deducting 1/3^rd of the house cost towards cost of land.

Affordable housing is the launch pad of India’s real estate movement in India with a shortage of 1.9 crore units in India the government has found the need to fill the gap in making housing affordable in urban and semi urban areas. With 1.3 billion people in India moving in to purchase properties this is expected to bring in a wave of investments of $13. Trillion in housing sector over the next 5-7 years. This is indeed a silver lining for buyers and developers in the affordable housing segment in India.

To Buy your dream home visit  www.liveupindia.com

Real estate investment a Step to create additional cash flow

Real estate is one of best ways to create an additional cash flow into one’s bank.

According to financial wizard Robert Kiyosaki.
“Real estate investing in a small scale, remains a tried and true means of building an individual’s cash flow and wealth”.

Here's Ashish Sharma CEO of LiveUp Solutions Sharing his expert opinion

The rule of thumb in real estate investing is to put your money to work for you in order to make it grow. It is imperative to earn profit to offset the risks you take, cost of owning a real estate investment such as utilities and insurance and taxes you pay. The investor must understand the property cycle in order to identify the best entry point. Here are a few ways to that will help you to raise your financial standing through real estate investment.

1. Rental income

This is one of the major advantages of real estate investing the owner earns money through rent on a monthly basis which adds inflow of cash to your bank. Rental income from residential properties can earn 5-6% of income.

2. Tax deductions

In real estate investment there are number of tax benefits in form of deductions that reduce income, money spent for repairs, insurance and depreciation of rental properties the owner can claim tax benefits.

3.    Going commercial

A commercial property yield higher rental income compared to residential properties and has longer leasing periods compared to residential properties. According to experts commercial properties earn rental income anywhere between 10-12% and rental value increases with capital appreciation over time. Here are a few ways one can earn by going commercial.

• Service apartments

A residential property with all the amenities and basic facilities can be given on rent for a short period of time which earns a good income.

•   Paying guests

   Individuals usually students and working professionals stay in one house and pay rent for the occupancy the owner stays in one room and rent the other room.

• Offer pay and park services

In metropolitan cities parking spaces are hard to find this is another great way to earn income through your property generally around 20/- is charged per hour for a two wheeler and 30/- for a four wheeler and one can generate at least 4000 per day that would amount to 120000 per month which is a good deal in Bangalore parking spaces earn between 8-10%

• Franchisee

Franchisee is a legal agreement between the franchisor and a franchisee many big corporations seeing a lot of potential growth opportunities in India this has a lot of scope, one can earn good rental income through this and in addition to that you can ask for profit share from the franchisee which depends on your negotiation with the franchisee. 

•  Retailers

By allowing retailers to use your property space you can earn rental income can be an additional income apart from your monthly paycheck. It can include supermarkets, Toy shops, Electronic store, etc.

4.    Invest in a growing area

For investors looking to invest in properties it is always good to look for investing in a growing area compared to a well established as a growing area provides good deals and the investor can buy at a affordable price and will have greater capital appreciation in the future. The prices in well established area tend to become stagnant after a period of time.

To buy your dream home visit www.liveupindia.com