Real Estate Forecast : 2014

The year 2013 was an eventful year for the Indian Real Estate sector with the introduction of Real Estate Regulatory Bill and Land Acquisition Bill in the parliament. On the home buyers side, the year can be best described as a lackluster year with high property prices and home loan interest rates that kept the buyers waiting on the sidelines.

As we move into 2014, it is important to gauge the mood of home buyers in terms of their desire, aspirations and fears from the upcoming year. For this purpose, Makaan.com, India’s fastest growing property site, conducted a research, Property Forecast 2014. The research was conducted in November 2013 among 2058 home buyers across Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Pune, Kolkata, Ahmedabad, Chandigarh, Indore and more.

The main highlights of the research:

1) Property market in 2014 will be driven by end users:
Speculators and Investors have been riding the property market since a long time; however, they will make way for end users in 2014. Majority of home buyers want to purchase a property in 2014 for self use as they are currently staying on rent. An almost equal number of home buyers want to buy property to meet the growing family requirements and for long term investment. The analysis show that the year 2014 may experience a very positive shift from the earlier years and will bring in the much required stability in the property market. As the property transactions have fallen over the past 12 months, speculators and investors are finding it difficult to exit the market.






                                         


2) Residential property prices will either stabilize or will appreciate marginally in 2014
Property prices have remained stable over the past few months and the mood of the market suggests a continuation of this trend. 26% of home buyers feel that the residential property prices would remain stable over the course of 2014. 46% of buyers expect the prices to go up from the current level with majority of them expecting an appreciation of up to 10%. This should bring some relief to the buyers in 2014 as generally more than 10% appreciation is expected on a yearly basis. 28% of buyers are advocating for the prices to go down from the current level. 17% of them are expecting a drop of over 10%.





























3) Property budget of Home Buyers is likely to remain the same in 2014
There has been talk of a slowdown in the Indian economy with all economic indicators showing a negative trend. This, however, has not dampened the spirit of the Indian home buyer. His budget for buying a property in 2014 will not be affected by the slowdown. This reinforces the confidence of the home buyer in real estate as an asset class. There are 23% of buyers who have reduced their budget allocation while there are another 19% who are ready to dish out more money for property buying.





























4) Apartment is the preferred choice of home buyers

In 2014, majority (65%) of home buyers will be looking for apartments or flats. Residential plots (15%) also emerged as the preferred choice for a few home buyers. Apartment is the preferred choice for people in Delhi, Mumbai & other such cities that have high property prices and scarcity of land. Security and community living also contribute in making apartment the preferred option. Service /Studio apartment have gained popularity; however, they still account for a very small portion (3%) of the overall demand. There is an interesting overall shift in the property type preference; a decade back or so, quite a lot of the people preferred an independent/builder floor; however, now the preference for the same remains only 4%.




























5) Property investment budget for home buyers is 0-40 lakhs
Owning a house has been a priority for Indians since ages; it is treated as a symbol of financial stability and social status. Affordable housing i.e., housing between 0-40 lakhs will continue to be a preference for majority of home buyers with almost 60% buyers opting for this. Mid segment housing (40 lakhs to 1 Crore) will be the preferred budget category for 34% of home buyers. High end housing (1 to 2 Crore) will be preferred choice for 6% of buyers whereas only 1% of buyers will be looking for luxury housing (over 2 Crore).




























6) Location and Price will be the top purchase considerations in 2014

Location will be the top most purchase consideration for home buyer in 2014. The preference for Location is even higher than Price that was the biggest influencer for property purchase over the last few years. This is an important shift in behavior of the home buyer. Other factors that will influence purchase decision are Price (24%) and Connectivity (18%). Around 13% of home buyers will give higher importance to neighbourhood and proximity of the property to hospitals, schools and offices. It is interesting to note that only 2% of home buyers rate size as the top purchase consideration, which implies that majority of the locations have each property type available for purchase.




























7) High Property prices will be the main hindrance for home buyers in 2014

The phenomenon of exponential jump in property prices has been prevailing in the Indian real estate market since 2009; however it is for the first time that the high property prices (61%) has been identified as the single biggest hindrance in buying property in 2014. With more than half of the home buyers considering high property prices as a hindrance, it can be inferred that most of them are unable to justify or afford the high prices being asked from them.


























Other dampeners are that the home buyers are unable to find their dream adobe closer to their preferred location (11%) and with the appropriate connectivity. They are either forced to compromise with an area or postpone the purchase of the property. High home loan interest rate (11%) is another reason because of which home buyers might decide not to buy a property in 2014. Therefore, when it comes to choosing between available options, projects with economical budget and superior location & connectivity will win the race in 2014.

Courtesy : makkan.com 

Guide to Choose Energy Saving Lights for Your Home

 

Every apartment in India uses about 6% or more of its electricity to lighting. There are various forms of lighting devices ranging from fluorescent light bulbs to halogen and LED lights which consume a lot of electricity. Choosing an appropriate lighting device/light bulb can help you save a lot of energy and money. To cut your electricity bills and make lighting more beneficial, you can switch onto energy efficient lighting. Various techniques like installing timers and motion sensors can help you save and reduce the usage of electricity when not in use.

Various countries have opted the low energy lighting for everyday use and inefficient lighting is tossed out. Today, there are a wide range of efficient lighting products available in the market. The main forms of lighting used as energy efficient are the traditional bulbs, compact fluorescents, LEDs, halogen lights, strip lights and luminaries/light fittings. Below are some ideas on how you can save up energy on lighting;

Energy saving incandescent bulbs: If you’re planning to change your lights in your bedroom or any other room, you can opt for the energy saving incandescent bulbs which save up 25% of energy rather than converting it into heat. These lights have a capsule inside them which holds gas around the filament to increase its lighting efficiency. They are not only efficient but can also last up to three times longer than the normal ones. You can buy them in wide range of shapes and colours and can also use it with dimmers.

 

The Compact fluorescent lamps (CFLs): They are the curvy versions of the tube fluorescent lights which most of use and can be seen almost everywhere. Unlike the older lights the CFLs consume less electricity and can save you a lot of money for months. A CFL is also rated with an energy star to show that it uses about one fourth of its energy for lighting and can last ten times when compared to other bulbs. Like other lights, CFL lights also are available in various colours ranging from white to yellow tones. They are also encased in a cover to provide the similar shape of the bulb which you were previously using. Do not forget to check the package for these features while purchasing a dim light. The greatest advantage of using CFL bulbs are that they can be recycled and sold to a recycling mart.

Halogen lighting: They are the simplest forms of energy saving bulbs and last up to three times when compared to the other normal bulbs. You can decorate your room with halogen bulbs which come in a wide variety of colours and shapes and also save up a huge amount on your electricity.

The light emitting diode (LED): They are one of the most energy efficient bulbs and use the same technology to that of your cell phone indicator. They save up about 75%-80% electricity. These small lights are designed in a way where they can provide a brighter lighting to your room. They are one of the most developed and rapidly used forms of lighting. Similar to the CFLs they are also graded with an energy star and last up to 25 times more when compared to the normal bulbs. They are available in various replacements for the 60W, 75 W and 40W normal bulbs. An LED is quite an expensive light but is worthy enough as it saves a huge amount of energy.

Efficient strip lights: They are similar to the CFLs but are different in structure and are not twisted. They are the modern versions of tube lights which are more efficient, slim, faster to light up and emit brighter light. They are mostly used in chic places and you can use them in your home to give a classy look. One of the best positions to sue a strip light is to install it in a Reflected mounting place.

Tips for the usage of energy efficient light both indoors and outdoors;

• Replace all the traditional and older bulbs in and around your home with the energy saving lights. This can save up a huge amount of energy and money. Also opt for the energy star bulbs for best quality. The energy star bulbs are available in various shapes and sizes and can also be shopped online.
• If you’re remodelling your home, opt for the recessed cans or light fixtures rated for insulation and are air tight.
• It is advisable to opt for the Star qualified fixtures which are available in various colours, shapes and sizes.
• Installing timers and photocells will save a huge amount of energy and money by turning off the lights when not in use. Also installing dimmers will make an efficient usage of energy.
• It is always better to use natural lights by keeping your windows and doors open rather than using artificial lights during the day. Decorate your home with light colours so that the light reflects inside.
• The perfect devices for the outdoor lighting are the LEDs. Many of us use outdoor lighting for decorative purposes. LEDs and CFLs can be both used for outdoor lighting as they are durable and last long. They can also be recycles and are available as flood lights.
• The outdoor lighting fixtures also come with the energy star tag for you to opt for.

Property inheritance- Nominee vs. Legal heir

According to the Hindu Succession Act, 1956, the property of a deceased is distributed equally among sons, daughters, the wife and the mother. The Hindu Adoption and Maintenance Act, 1956 governs the adoption of children and the maintenance allowance to the wife.

Who is a Nominee?

As per the law, a nominee of a immovable property is a mere trustee entitled to receive the money/proceeds receivable by a deceased person on behalf of his/her legal heirs. The nominee will be in charge of the property only till the court decides who is entitled to the property as per the succession laws. To make it simpler, the nominee is only a caretaker of the property and not the owner of the property. He/she will only hold the asset as a trustee and will be legally bound to transfer the property to the legal heirs.

A society member can make a nomination which can be cancelled at any time. In case of death of the member, the society transfers the shares to the nominee or the legal heir/s. In case there is no nominee, then the society puts out a public notice inviting claims. And the nominee takes care of the property until the court decides who is entitled to the property as per the succession laws.

Who is a legal heir?

A legal heir of a deceased person’s property is the one who is mentioned in the will. The legal heir is entitled to be the real owner of the assets of the deceased. If the will is not made, the legal heir/s are decided based on succession laws which also defines about who gets how much share of the assets.

For example, if Mr. X would have mentioned that his brother Mr. Y will be the nominee of all his assets. But in his Will, Mr. X would have written that his children will receive his assets after his death or he would not have written a Will. In either case, based on the Indian Succession Act or Hindu Law or Mohammedan Law, the brother Mr. Y will receive all the assets but he will have to distribute it among the children of Mr. X. But in case, Mr. X has written a Will which says that all his assets belong to Mr. Y then Mr. Y will become the owner of the property.

To sum up, a nominee has the right to receive the property while a will decides who will eventually own the property.

What if there is no will?

If there is no will, then as per the Hindu Succession Act the property will pass on to Class 1 heirs who include spouse, children and mother of the deceased. In case of absence of Class 1 heirs, it would pass on to the Class 2 heirs comprising of father, grandchildren and siblings.

How co-operative societies define it?

According to the Section 30 of Maharashtra Co-operative Societies Act, 1960, in case of death of a member of a society, the shares of the person will be transferred to the nominee. However, such transfer does not imply transfer of the property contained under the shares of the society. The nominee acts only as a trustee for the deceased person’s estate.

Self acquired property

If a property is a self-acquired by a person, then after the death of that person, whether a “Will” is made or not, legal heirship determines the vesting of the deceased person’s property.

Inherited property

In case of inherited property rights of “Successors” of the deceased person overrides all other modes including Will. All members of the immediate family acquire the right to get equal share of the property.

Jointly-owned property

In case of joint ownership of a self acquired property, the surviving owner becomes the sole owner after death of the co-owner/s.

To conclude, it is advisable that merely nominating a property is not enough. To pass on your property to the right hands, as per your wish, making a “Will” would be helpful. However, even when there is a will made, there are chances that your inheritors may end up facing some legal issues that may arise. It is better to have a fair understanding of the rules and regulations pertaining to inheritance of properties.

Role of Vaastu Consultant in a Property Buying

 

Choosing a good Vaastu consultant involves the same search process you apply when looking for any property for investment. Vaastu for your home plays vital role in generating the positive energies and neutralize the negative energies in buildings that lack Vaastu principles.

 

Vaastu means a place where you live. As per Vaastu Shastra, if we can create a balance between the built in energies and the 5 elements of the Universe (Fire, Water, Earth, Space and Air), creates balance and coordination between the nature and its laws. If you are a new entrant into the real estate in India, especially buying your first home then you may made list of experts such as real estate agents, legal expert, bank or lending company, top builders in India or leading developers in your city etc. Here is one more expert -Vaastu Consultant- who can play vital role in paving way for happiness and prosperity. In past our ancestors were having Vaastu Shastra as a religious & rigorist code like today we are having National Building code of India.

Role of Vaastu Consultant

The word “Vaastu” means dwelling place or place where you live. You might have observed that shifting to a new house affects several parts of your life, either positively or adversely. If you are always surrounded by tensions and other negativities in life, then it is time to seek the advice of a Vaastu consultant.

The role of a Vaastu consultant becomes important when you are planning to buy a property. Buying a property orreal estate investment is the decision of a lifetime and you need to be equipped with the right know how but Vaastu for home is also vital for happiness and prosperity. Vaastu is built on formulas and practices developed from ten thousand years of observations about the energies and the laws of the cosmic universe.

According to Vaastu Consultants in India, man does not inhabit this earth alone. He lives amidst other natural forms such as Fire, Water, Earth, Space and Air. Vaastu for Home or Vaastu Shastra can be used for every room, every house, temple, shop, office or industry, every building, town planning, tour, cities and even for earth.

A Vaastu compliant structure will surely channelize the positive energy in your life. Today, leading property builders or developers are specifically following this as they have realized that the Vaastu Compliant Structure becomes their Unique Selling Proposition and it helps in their marketing efforts.

Choosing a Vaastu consultant

Boom in Real Estate India not only in residential property but also commercial properties has attracted not only top builders in India but also Vaastu consultant who have mushroomed in the recent times. While choosing a Vaastu Consultant, do not go on attractive advertisements or offers but seek genuine consultancy. They can play vital role in paving way for happiness and prosperity in your and your family members’ life. Choosing a good Vaastu consultant involves the same search process you apply when looking for any property for investment.

• Ask your friends: Word of mouth can be highly valued. Word-of-mouth depends on the extent of customer satisfaction with the product or service. Ask your friends, relatives or colleagues if they have had a Vaastu consultation and can recommend a good Vaastu consultant.

• Fee structure: Some consultants charge by the hour, some charge by fulfilling specific deliverable tasks, and some charge for the whole project or customer satisfaction. Know the fee structure and service provided for your Vaastu for home.

• Marketing materials: In most cases, the Vaastu consultant will have marketing materials, such as a website, a brochure, etc, that will answer most of your questions. If the Vaastu consultant is new in business and does not have much experience, ask reference about their clients.

• Local Consultants: Even though Vaastu Consultants can offer service or suggestions by referring or seeing the building plan, it is still good to have a consultant who can visit your site or property. It is best to focus your Vaastu consultant search locally.

• Request for Service: There are number of service providers who can help you to choose right service for your Residential Community where you can describe your service requirements in detail and the service providers will help you with list of Vaastu consultants or experts who can provide best service at an affordable rate.

Vaastu Consultants can not only provide service to property buyers or construction of buildings but also recommend Vaastu for to generate the positive energies and neutralize the negative energies in buildings that lack Vaastu principles. The Vaastu remedies give up to 80 to 90 per cent positive effect to your home or building. The Vaastu Shastra is also applied for selecting the plot, agricultural land or a farm land, development work, Demolition Schedule, re-development work etc.

Your Vaastu for home is acting as a media between you and the nature for acquiring the natural energies. If the home or building is not constructed or built as per Vaastu Shastra rules, it creates imbalance between man and the nature which generates negative energies. A Vaastu consultant should have the skill of designing and modifying spaces. An expert practitioner can apply Vaastu principles and pave way for happiness and prosperity. Whilechoosing a Vaastu Consultant, do not go on attractive advertisements or offers but seek genuine consultancy.

Guidelines to make your home climate sensitive

 

 It is very important to make our homes climate sensitive. With the increasing urbanization and converting of the Indian cities into concrete jungle, it has become very important to treat the building envelope with a sensitive touch – both keeping in mind the environmental implication and cost efficiency.

Thermal effect of building materials

Factors

The solar energy reaches the external wall of a building by radiation and then it travels across the building material by conduction. The heat flows across the unit material in a unit time, depends on the thermal conductivity of the material. The reciprocal of thermal conductivity is thermal resistance which is dependent on the thickness of the building material.

The heat capacity of the envelope of the material is the factor that determines the amount of heat the house absorbs and conducts.

The maximum temperature and the diurnal range are the two ambient characteristics required to be taken in to consideration while choosing materials for the external walls of an apartment building or house.

 

 

The third factor is the orientation and the external color of the building as they determine the absorption of solar radiation. After a threshold, temperature insulation is required to moderate the heat flow from the outer surface to the interiors of the building.

For climates where the diurnal temperature range is quite high, the materials with high thermal mass should be used and for hot and humid climates where the diurnal temperature range is not quite high, the lightweight materials are most appropriate.

However, recent studies have shown that even in the hot and humid climates where there is continuous ventilation, thermal mass can play a big role in providing thermal comfort during nights.

The color of the building material also plays a large role as it determines the amount of solar radiations absorbed. The darker color material absorbs more heat in comparison to the lighter color material. During extreme summers, the difference in the temperature of the room painted white and black was 6?.

You should consider the following to make your external walls and roof weather proof in the extreme hot and humid climate .

Roof

• Due to the heavy rainfall, it is very important to make the roof waterproof and if the building is not conditioned, the vents at the rooftop should be added to improve the air circulation. The hot air rises up and the vents on the top will help in letting the hot air  move out and thus creates a low pressure. This process will start the flow of air through the window and exit through the vents on the top.
  

  

• If the building is air-conditioned than, it becomes very important to insulate your roof. Since, this will restrict the heat flow through conduction from hot air outside to roof and from roof to the conditioned environment inside the building.
• Double roof or false ceiling is also one good method to restrict the roof from radiating heat inside during the daytime since, the space between the two roofs or the roof and the false ceiling acts as a heat buffer.

• Reflective foil insulation is another technology which is installed in the areas of the attic.  It is actually a material that is shiny and is used for reducing the costs of cooling and heating. Heat is reflected back in the summer days and it reduces the cost of air conditioning. Warm air is trapped by these insulators in the winter time reducing the cost of heating. The process of installation of these foils is very easy and you will be able to do it on your own, as there are no requirements of any special tools. it is a very good option for those who want to condition the air of your house in a way that would be energy efficient and be economic at the same time.  

Walls:

• For the wall in hot and humid climate, it is very important it to transmit less heat to the interiors and promotes airflow.
• Do not use wood cladding or any material, which is sensitive to water.
• Use the low e glass for the glazing.
• Use the light color for the exterior of the wall.

Buyers Not To Be Charged Extra For Parking Space

The Central Mumbai District Consumer Disputes Redressal Forum recently said that developers cannot charge buyers extra for a car parking space. This verdict came out in response to a complaint lodged against Tata Housing Development Company in the forum. The developer was directed to refund a buyer car-parking charges and pay him compensation.

The Supreme Court had passed a judgment in August 2010 saying that a developer cannot sell an open space or parking space as it was a part of the society common area. Upholding this judgment, the consumer forum said that the developer could not charge any amount for use or sale of parking space.

While this verdict is welcome by most prospective buyers, there are counter arguments for this verdict. Here is a critical look about the pros and cons of this verdict.

A fair verdict

The verdict is encouraging as it makes sense from a legal and economic point of view.

1) When a developer sells a flat to a buyer, the charges for the flat not only includes the carpet area (the buyers private area), but also for the common spaces and support structures such as staircases, lifts, corridors, sewage disposal system, parking spaces and so on. In fact, many states have regulations that require adequate parking spaces. Builders incorporate these costs into the market price of the flats they sell. Hence, it becomes illegal to charge extra for parking space or any of the common amenities.

2) Allowing developers to charge extra for parking space is also bad economics, especially during times when demand for parking increases multifold in a very short span of time. This is because, with limited parking space, the developer has no incentive to maximize supply of parking slots. With that, the developer can withhold supply of parking slots and charge maximum prices for each parking slot. If the parking slots are free, the flat owners can attempt to come up with innovative measures for maximizing the number of parking slots.

Doesn’t account for ground realities

While this may sound a fair deal, many argue that the verdict does not take into account the ground realities. Some of the counter arguments for the verdict are:

1) The number of cars in India are constantly increasing. With this trend, paying for parking ought to become normal. This is also the only way of dithering people from buying more cars while encouraging them to use public transport. It however needs to be understood that the public infrastructure and transport services must be improved and can happen only if more people use those options and demand better services.

2) Big metros such as Mumbai and Delhi have parking space constraint. It is in this scenario where ‘pay for parking’ becomes relevant. Developers of residential properties receive almost no support from municipal authorities. Most of the residential projects are self-sustained units with provisions for water supply, electricity and parking spaces. It is only fair that developers are allowed to charge for parking spaces. While on one hand, this will force more people to use public transport, on the other hand, it will assure buyers of the space guaranteed parking everyday.

3) It is also better to allow the developer to charge extra for parking space. Otherwise, they will pass on the cost through other hidden means to the buyer. Ultimately, it is again the buyer who bears the brunt. A buyer who does not use the parking space will pay the same as the one who parks multiple cars. Moreover, common parking spaces can create chaos, which may lead to disputes and fights. ‘Pay for parking’ is the only alternative to avoid this scene.

With both arguments having equal weightage, measures will have to be taken which can appease the buyer as well as the developer.

Tips for Green Living in Your House

 

Most of us crave to re-model our properties in India with different concepts. Few of us would like to concentrate on interior design while few others would like to convert the apartment into a healthy place to live in. One of such concepts is turning your home/apartment eco-friendly. Going green does not literally mean permanently renovating your building but to change your lifestyle and have a positive effect all around.

It does not matter if you own the apartment you are staying in or have rented it, you can still create your own eco space living without hampering the design of the house. All you need to do is follow the below simple steps;

Efficient energy use: In order to get a healthy eco-friendly home ambiance, you should make sure that you unplug all the electrical sockets connected to all your electrical appliances when not in use or not use for few hours in a day. Almost all the electrical gadgets in your home make use of the electricity and are turned off when not in use. When you turn off the equipments, they are in a standby mode and consume tons of electricity. This is more than enough to waste tons of electrical energy each day. In order to avoid this, make sure you unplug all the appliances when not in use. You can also use power strips to avoid the wastage of energy. Also make use of natural light and ventilation rather than the artificial one. If any electrical appliances are not in a working condition, recycle it rather than storing it in your room.

Keep a check on your waste: Restricting the production of waste and recycling them is one of the best options. Most apartments in India lack space, hence you need to be creative enough to store the milk crates, newspapers and other objects in your car trunk or under a closet. Avoid storing up of unnecessary items thinking them to be useful sometime later in life. The more you store such items the more you will have to clean up in future.

Efficient computer use: This is one of the most important ideas to save energy and make your place an eco-friendly one. Make sure to turn off and pull the plugs when you are not using your computer. They consume the maximum amount of energy when compared to other appliances. You can also plug your PC connections into a surge protector.

Replace your bulbs: There are arrays of energy efficient bulbs which are available in the market. Swap your old traditional bulbs with compact florescent bulbs like CFLs, LEDs, strip lights and so on. These bulbs save up to 60%-70% electricity and last 10 times longer than the normal bulbs.

Compost the waste: Every household does produce large amount of vegetable and organic residues. In such cases make a compost pit in your garden or your lawn and make a productive use of it for your flower bed or garden. If you lack space, try doing this in your neighbour’s garden or your friend’s garden.

Going green in Bathroom: Make sure you keep your bathroom clean always and avoid the growth of mould. Try the organic cotton shower or the hemp curtain with a nylon liner. This is hygienic than the PVC coated curtain and can be washed frequently to avoid moulding.

Usage of cold water: You can save up to 80% of energy if you wash your clothes in cold water.
Recycling and reusing: This is one of the most effective ways to go green in your surroundings. You need to stop the excessive usage of various appliances and gadgets. Collect all the used cans, electrical items tins and plastic items and recycle them. Avoid using disposable products and opt for recycled products.

 

Indoor plants: Having potted plants and small lawns inside your home is one of the best ways to produce fresh air. You can either cultivate ornamental plants in pots and place them inside your home or keep plants which do not need much care like bottle planting and so on. Also you can create a small lawn for your pet in your balcony. Proper care and fertilizers to your indoor gardening can make your home ambiance an eco-friendly one.

Cleaning process: Avoid using chemical cleansers all over your home to clean floors, walls, tiles and other places. Instead, use home based cleansers like white vinegar, baking soda, essential oils and so on. Home based natural products are also available in market these days.

Reduce water usage: There are various ways in which you can efficiently use water.  Installing a low flow toilet, an aerator, sink faucet and a shower head can reduce the consumption of excessive water.

Heating and cooling systems: Avoid the usage of the air conditioner during winter; instead make use of the natural air and ventilation. Also switching your room temperature to two degrees can save you a huge amount of money.

Buy organic food rather than purchasing chemical based foods. Also avoid using plastic bags and carry fibre or jute bags.

Henceforth we hope that the above tips are useful to create an eco-friendly ambiance along with a healthy life.

Home and Home Content Insurance in India

Home insurance, also commonly called hazard insurance is the kind of property insurance that offers insurance coverage to the homes. The home owner certainly counts his home as his biggest asset. Home insurance is basically required for the financial security it provides to the property in case of any loss suffered. Home Insurance has two parts—one covers the building, while the other covers the contents of the house.

Home Insurance

The home insurance policy is usually a term contract that is in effect for a fixed period of time. There are mainly two parts for insurance covered. One covers only the building, while the other covers both building and its content.

• Building structure-Insurance covers for a building structure includes compensations paid for losses due to fire, storm, tempest, flood, riot, strike, lightning, explosion & implosion, landslides and rock-slides, bursting or overflowing of water tanks, apparatus and pipes, earthquake and damages to the structure due to acts of terrorism.

• Contents of the home-This coverage is for the loss or damage of the valuables inside the home like the electronic and electrical goods, furniture, clothing, jewelry and any other precious contents inside the home. The contents are covered on the market value of the items and in case of a loss the insurance claim is paid on the value of purchasing a similar new item exempting the depreciation value. This Policy covers your Household contents only and when they are kept in the building but Jewellery is covered against snatching whilst being worn.

 

Content Insurance

Content insurance is the insurance policy that covers all movable goods and personal possessions within your home against loss or damage. Usually the contents insurance policy comes along with the home insurance policy though at times it may be sold separately. This insurance is great for tenant, landlord and property owners.

In case you sell the property during the policy period you can either do an endorsement to the policy changing the Insured premise address or also have the option to cancel the Policy. In case you have rented out your flat and moved out, if your current policy covers only the building then you can continue with same policy However, if your policy covers both the building and the contents then you need to inform the insurer and get the contents removed from the policy. You will be issued a new policy, which will cover the contents and will mention your new address as the “location of risk”.

Insurance covered under policy

• Content insurance policy covers all your Household articles like, Furniture, Fixtures, Clothing, Carpet, Linen, Electrical items like Refrigerators, Air conditioners, Washing machines, DVD players, Television sets, Tape Recorders and Electronic items like Computers are covered under this Insurance.

• Allied perils including Earthquake and Floods along with Burglary, Housebreaking, and breakdown of mechanical / electrical appliance are also covered under this policy.

• The Insurance cover the Jewels worn by your Spouse, Children and Parents or other family members residing with you. The policy covers your contents only and when they are kept in the building but Jewellery is covered against snatching or lost whilst being worn. Policies also include cover in the event of an injury in your home.

• The contents are covered on market value i.e. the cost of buying a similar new item after deducting appropriate depreciation on the basis of the age of the item. Home used for business purposes such as coaching class, Yoga and other commercial activities are not covered under this policy.

Rectification Deed: Rectification of Error

 

Sale deed is a legal document authenticating transfer of right, title and interest in immovable property and evidences devolution of the same from seller to buyer. It is executed on a stamp paper; hence any error may make the entire deal cumbersome and invite litigation. Since it is executed on valuable stamp paper, it is not possible to make fresh sale deed on every detection of error.

Correction at pre-registration stage

(1) Some common errors such as errors in names and addresses of the parties, description of the property, sale consideration etc. may be corrected on the deed itself and authenticated by all the parties.

(2) In case of factual errors such as defect in the title of the seller, measurement of the property, additional rights of the buyer etc, the relevant page should be changed, whatever may be the cost of stamp on that page.

 

Post registration stage

 

Any error detected after registration of the concerned sale deed, can be corrected by a “Rectification deed” only which also has some conditions and limitations.

Conditions

(a) Error must be genuine
(b) It must be inadvertent not intentional
(c) All the parties must agree to the rectification thereof.

Limitations

Rectification deed can rectify only factual errors NOT error of law, such as
(A) Deficient stamp duty
(B) Jurisdictional error of Sub-Registry office
(C) Basic character of transaction e.g. Sale transaction cannot be corrected as Gift
(D) It is meant to rectify defects in the original deed NOT to change the nature of the transaction OR Intention of the parties involved.

Procedure for Rectification by Rectification Deed

 

(1) Rectification deed must be signed by all parties
(2) It is to be executed on stamp Paper as per rates of registration in respective states
(3) Rectification deed also must be registered with the same Sub-registrar’s office where original deed was registered.
(4) For minor mistakes the stamp duty and registration charges are Rs.100/- each
(5) For rectification of major errors viz. names of the parties, measurement of the property, location and any other description of the property, the stamp duty and registration charges apply as per rate of registration of the original Sale deed
(6) It must give reference of the errors in the original deed which is being rectified now.

Why registration of immovable property is important?

A person is considered lawful owner of a property only after s/he gets it registered in his / her name. Section 17 of the Indian Registration Act 1908 makes it mandatory to register the document regarding transfer, sale, gift or lease of a property.

Registration of the sale deed by which the right, title and interest in a property is transferred from seller to the buyer, must be done for legitimate transition of the ownership of the property.

The Apex Court has ruled that transfer of all right, title and interest in a property would be considered invalid unless the sale deed was duly stamped and registered. Under Section 49 of the Indian Registration Act, 1908 sale deed will not have any bearing on the property and will not confer any “right to the property” if it is not registered. Further, section 23 of the same Act states that “Document of Title” must be registered within four months of execution.

However, if due to unavoidable reasons the desired registration cannot be done within the stipulated period of four months, then the buyer can request the District Registrar, for extension of another 4 months by paying a penalty of up to 10 times of the registration fee.

Usually the penalty levied is 100-300% of the registration fee. This extension of time limit for registration of “Document of Title” with penalty is allowed under Section 34 of the Indian Registration Act, 1908.

Sale deed is the only “document of title to a property” and must be prepared very carefully. Any discrepancy and / or error in the sale deed may have very serious repercussions both for the buyer and the seller. It may lead to legal tussle between the seller and the buyer or by their respective legal heirs.However, if there is any genuine and inadvertent but grave error in the sale deed then legally prescribed process is there for rectification of such error(s).

How does the new land acquisition law work?

The new land law,“Right to fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013”, will replace the old Land Acquisition Act,1894. So, how the new law will affect the Land Acquisition by Govt?

Acquisition of immovable property in India is governed and regulated by “The Requisitioning and Acquisition of Immovable Property Act, 1952” (Act 30 of 1952). Acquisition of land is governed and regulated by Land Acquisition Act, 1894. Both these acts are applicable to whole of India except the state of Jammu and Kashmir. Under both these acts the Central Govt. as well as State Governments are empowered to requisition and acquire land and immovable property for public purpose (present or future). Since land is a state matter every state Governments have their own respective land acquisition laws and rules to acquire land in respective states.

However a new bill named and titled “Right to fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013” has been passed very recently by both the houses of Parliament and after getting Presidential assent and notification will replace the old Land Acquisition Act,1894.

Once the competent authority formed for the purpose of acquisition of immovable property decides to acquire any immovable property they must send a notice of requisition under section 3 of the said act (Act 30 of 1952) to the owner of the property in this regard.

Opportunities of protection and fair compensation

1. After issuance of “notice of requisition” under section 3 and before issuance of “notice of acquisition” under section 7 of the said act, the acquiring authority gives an opportunity to the owner of the property to explain why the said property should not be acquired and after considering the causes the authority passes order as it deems fit and proper.
2. If in spite of valid reasons the authorities insist to acquire the property then the aggrieved owner may appeal to the central Government within 21 days from the date of order.
3. No property or any part thereof can be acquired which is being used by the owner as residence for himself or his family member(s) or which is used for religious or public purposes.
4. If a property is not acquired within 5 years from the date of notice of requisition, it will be released and restored to the owner.
5. Compensation for the acquired property will be paid to the owner and quantum of such compensation may be decided by mutual agreement of the owner and acquiring authority.
6. If no agreement is reached arbitrator will be appointed, the owner of the property has right to state fair amount of compensation.
7. If the owner is satisfied with the award of the arbitrator regarding quantum of compensation, he may appeal to High court having jurisdiction over the area.

Would you Prefer a Ready-to-Occupy Flat?

Most of us would like to live life the easiest way by occupy a well-furnished flat with no hassles of arranging or being impatient while waiting for a home to be completed. The latest trend of buying properties in India has experienced that most of the people prefer buying ready-to-occupy flat for innumerable reasons.

• The recent research shows that most of the serious home buyers opt in for ready-to-occupy homes. This is beneficial to them in various ways like they will not have to pay ounces of money as rent and can live in a place with all the required facilities rather than waiting for months for a project to be completed. Also, according to an investor’s point of view, a ready-to-occupy flat will get him lower returns on investment when compared to the flats under construction.

• The current generation of home buyers are much smarter than the previous generation when it comes to home buying. They know the consequences and the benefits of staying in a ready-to-move flat and an under construction flat. With the invent of various methods and rules, property buyers make sure that their investments are done at the right place which is safe and productive. It is always important that a thorough check is done before opting for a property. Other aspects like the inspection of the past projects of builders, the history of the builders and the promised facilities and quality by the builder also should be considered.

• People these days opt for a ready-to-move in apartment because there are various risks involved with other forms of properties like; An under construction project can experience a delay, difference in the planned layout, price fluctuations and many other legal issues. These issues on the other hand, have an advantage of the investors having a higher probability of returns and most of the investors buying a second home look for higher returns by investing in under construction flats.

• When it comes to property buying, most of the home buyers are keen to buy ready-to-move in flats and are the locals of the city. This shows that the mind set of people has changed who have decided to stay in areas which were disliked earlier.
• Perhaps, on the other side, depending on the stage of a project’s construction, there is an increased demand for the under construction projects when compared to ready-to-occupy apartments. Apartments/flats which are ready-to-occupy are extremely priced without considering the average middle class families which form one of the important parts of the real estate sector. The maximum numbers of people present in the real estate sector are the ones which fall in the middle class category list.
• Since the ready-to-occupy properties are quite expensive the buyers would like to opt for other forms of properties as well. In such cases the buyer is offered with subvention schemes wherein the buyer can also enjoy a pre EMI holiday. This is helpful for people who stay in a rented home.
• Other advantages of opting for a ready-to-occupy home is that the investor need not fret about paying the rent once he starts staying in a ready flat. Also the flat owner gets an immediate income through the EMIs paid by the investor. Also it gives a clear idea about the structure and the complete design of the flat.

What is a Sale agreement?

 

Property sale agreement or Sale agreement is a document in writing executed, signed and delivered by the parties to the agreement i.e. Seller and Buyer and witnessed by at least two witnesses. It is prepared on non-judicial stamp paper. In a buy /sale transaction for immovable asset, till the final sale deed is registered, sale agreement is the most important, legally valid and enforceable document.

When the seller and buyer conclude negotiations and finalize a deal, the entire gamut of the terms and conditions for the particular deal are recorded in this document which becomes the basis for subsequent actions by both the parties.

What does it contain?

This document contains the complete identification of the parties and the property, area and measurement of the property, amenities and facilities available to the buyer, details pertaining to the quality of construction, agreed consideration payable by the buyer, mode of payment of the consideration, time frame for conclusion of the deal and handing over possession of the purchased property to the buyer, penalty clauses for delay in completion of the project, registration of the final sale deed and possession by the buyer and all other relevant terms and conditions agreed by and between the buyer and the seller.

Execution of sales agreement

After due execution and delivery of the sale agreement the parties are bound to act in terms of the contract and unilateral violation of any of the terms mentioned in the agreement makes the defaulter liable to compensate the aggrieved party by proper legal adjudication. Though the sale agreement is not a “document to title” but it confers right to the buyer to acquire the property after compliance with the terms of the contract. As provided under section 10 of “Specific Relief Act,1963” party to a contract has to perform in terms of the contract and failure to act makes the defaulter liable to compensate the aggrieved party for all the losses, cost and damages.
A sale agreement may or may not be registered, however if agreed by the parties it may be registered by paying ad-valorem stamp duty and appropriate registration fee pending registration of the final sale deed. In such cases at the time of registration of the final sale deed the stamp duty and registration fee already paid is deducted from the actual payable stamp duty and registration fee. Thus it is clear from the foregoing that it is a very important document and must be prepared very carefully by competent legal professionals.

Vastu location for your kitchen door and windows

Vastu Shastra is the science of architecture, which can be applied for good construction. Vastu approved design recommendations are grounded on directional placements. These directions are applicable too for the kitchen alignment. According to Vastu recommendation,the kitchen alignment must be done maintaining some specific rules, which is relevant for kitchen door and windows positioning.

In olden days, kitchen vastu guidelines were maintained in accordance to sunlight intrusion as well as availability of wind circulation within the room. However, with the changed concept of architecture, living style, modern way of living, designing of kitchen has become compact, energy efficient, so that the place remains comfortable to work and cook. Positioning of doors and windows in the kitchen matters a lot for channeling of positive energy as well as for reversal of negative energy.

There should be a single door for a kitchen and never should have two doors in opposite direction.

In case you found two doors in a kitchen keep the north or west facing door open. Keep the other door closed. There is one additional requirement in setting the best position for the kitchen door and windows.

The kitchen door should open in a clockwise manner and never in anti-clockwise direction.

Easy maneuverity for right hand direction is the architectural reason behind this rule perhaps, however, according to vastu, doors that are opening in clock-wise direction brings prosperity and good luck for the habitants of the house. On contrary doors opening in anticlockwise manner may induce slow progress in work, delayed result, and bad result out of whole input and these results are not desirable for a kitchen.

The door of the kitchen should be placed in the north-east, north, or in the east position.

According to Vastu recommendation, the entrance of a kitchen should be from west or north side. As per Vastu this is the most auspicious alignment for an ideal kitchen entrance. In case the north entrance is not available, next vastu recommended kitchen entrance is from the south eastern side.

In the kitchen the larger window should be placed at the eastern side.

Morning sun rays are always beneficial for health and UV rays are natural germicide. Kitchen is a place where healthy foods are cooked. Therefore, maintenance of healthy ambiance in kitchen is a pre-requisite. According to vastu, bigger window of the kitchen should be placed on the eastern side. In case eastern side is not available, the second best option for placing bigger window in the kitchen is eastern –southern side of the wall from where wind and sun rays may enter the room at ease.

Small window should be placed on the opposite wall for cross ventilation

As per Vastu, the small window of the kitchen should be placed on the opposite side of the bigger window. The best option for placing a small window in the kitchen is on the southern wall of the room, or on the opposite side of the bigger window of the kitchen.

Following these tips will help in making a Vastu compliant kitchen for over all well being of a house.

Tax benefits from an under construction home

 

Taking a home loan for an under construction apartment is quite beneficial as the customer can avail the deferred deduction on the interest payable during the pre-construction period. The loan seeker can avail the entire amount as deduction in equal installments starting from the financial year up to five years and till the construction is complete.

Tax exemption for an under construction property:

The pre-construction phase is the period which starts from the date of the borrowing and ending when the construction is completed. The Indian Income Tax Act states the conditions under which an employee with salary can claim the tax rebate on the interest payment for the housing loan. The Section 24 of the Income Tax Act states that if a property is still to be constructed, there will not be any deductions on the interest payment all of those years. The interest for the pre-construction period can be availed for the deduction in the 5 equal installments from the year the construction is complete.

 

How can one avail tax benefits from an under construction property?

• The Section 80C allows tax benefit for the amount paid towards the Stamp Duty and the Registration process. However, the tax rebate on principal repayment may not be allowed when the property is under construction.
• If there is a delay in the project and the possession doesn’t happen on the given date, one cannot get the tax benefit for the principal and the interest.
• One can avail the tax benefits at the time of filing the income tax returns.

Explanation of the Section 80C:

This Section states that, for the purposes of purchase or construction of a residential house/property the income from which is chargeable to tax under the head income from house property (or which would, if it had not been used for the assessees own residence, have been chargeable to tax under that head), where such payments are made towards or by way of;

•  Any installment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or
• Any installment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or
• Repayment of the amount borrowed by the assessee from

(1) The Central Government or any State Government
(2) Any bank, including a co-operative bank
(3) The Life Insurance Corporation
(4) The National Housing Bank

How to stop benami transactions of property?

Benami property ownership means ownership of a property in the name of a person who has not actually paid the consideration for purchase of the property. Benami owner(s) only lend their name(s) for purchase of a property where consideration is paid by some other person. Such lending of name is done for some gain and the property is held by the owner on behalf of some other person who has actually paid the consideration. A person lending his name for such transaction is called “Benamidar” and such transaction is called “Benami transaction”.

Ostensible ownership and Beneficial ownership Ownership

Ownership of the property standing in the name of a “Benamidar” is “ostensible ownership” but the “beneficial ownership” of the property does not vest with him, rather it vests with the person who has actually paid the consideration money.

Purpose of benami transactions

Benami transactions are a conduit to channelize black money earned through corrupt and illegal practices. This route is also used to circumvent certain socially beneficial acts such as Land ceiling act and to conceal assets disproportionate to the known source of income. Property is purchased in the names of family members, relatives, friends and sometimes in fictitious names. Such transactions are very common and rampant in real estate sector. Very recently it has been alleged in 2G scam that even some telecom companies which got 2G license, were in fact merely acting as front face hiding the actual investor behind them. The scam in Adarsh Housing, Mumbai has also revealed that a good chunk of properties therein was “Benami property”.

Benami Transaction (Prohibition) Act, 1988

To tackle the menace of black money, benami transactions and corruption, this Act was enacted in 1988. The act has provisions of imprisonment of up to 2 years and/or fine or both, but the act has never become effective because rules to make it operational could not be framed. Central Board of Direct Taxes was the implementing authority for the law and was supposed to frame the rules.

Benami Transactions (Prohibition) Bill, 2011

The Government proposes to replace the earlier act with enactment of the new law for stricter control over benami transactions by plugging off the loopholes in the existing law. This Bill has provisions for confiscation of benami property by the Adjudicating Authority after the person concerned has been given due opportunity of being heard.

Gift and relinquishment deed for transfer of immovable property

 

Of the various methods for transfer of ownership rights in a property “Gift” and “Relinquishment” are two such methods. Both the aforesaid terms serve the same purpose of transfer of property, have similar implications, but the circumstances in which these are executed are different.

Gift of immovable property

Gift is defined under section 122 of Transfer of Property Act, 1882 being voluntary transfer of ownership rights in a property, without any material consideration, where natural love and affection to a living person is the only consideration. It must be free, voluntary, absolute and unconditional except where it is given for any specific purpose such as educational, charitable and /or religious. Generally gift is irrevocable but in case of gift for specific purpose, the property reverts to the donor when the object fails due to events not depending on the will and pleasure of the “donor”. It must be made through a written document called “Gift deed”, duly accepted by the “Donee”, witnessed by two witnesses and the deed must be registered with Registrar/ Sub-registrar of assurances as mandated under section 17 of Registration Act, 1908. If the gift is made to spouse, blood relation of either of the spouse, lineal ascendant or descendant of either of the spouse, any family member then there is no tax implication except the cost of the stamp paper on which the gift deed is prepared. Though there is no restriction on gift to non-relatives but such gift is taxable.

Relinquishment of right

Relinquishment of right is referred to the surrender of one’s ownership rights and claims in a property in favor of another person. It is not defined under Transfer of Property Act. but is an established practice. Relinquishment of right is not without any consideration, the consideration may be in the form of money, exchange of property or arrangement between family members. Relinquishment of right in immovable property also needs to be done only through a written document called “Deed of Relinquishment” which must be signed by all the parties, witnessed by two witnesses and must be registered. Unlike gift relinquishment does not enjoy tax benefits and is taxed for capital gains.
In both the aforesaid cases the “Donor” and the “Relinquisher” must not be a minor, must be mentally sound and capable of taking rational decision pertaining to disposal of property and must be capable to contract.