GIDC bans resale of vacant plots

GIDC bans resale of vacant plots

TNN, Jul 21, 2010, 03.50am IST

GANDHINAGAR: In an important policy decision to curb widespread real estate speculation in 181 Gujarat Industrial Development Corporation (GIDC) estates, Gujarat government has decided to bar resale of vacant plots. "The decision is expected to force those who have bought plots in GIDC estates just for investment purpose to either set up factory on the vacant plots, or to return them to GIDC," a senior official said.

GIDC, which has moved to implement the decision, has identified 1,811 plots on 800 hectares (ha) lying unutilised. It has served notice to 553 of them with the ultimatum. "Now onwards, anyone wanting to resale the vacant plot will have to hand it over to the GIDC for resale purpose instead of directly transferring it to someone," the official said. In yet another decision, the plot owner will be obliged to set up factory within three years of allocation of plots. In exceptional cases', the period will be extended by another three years, after which GIDC will have the right to confiscate the vacant plot. All those who own plots in GIDC estates for more than six years will either have to start construction immediately to avoid confiscation. GIDC's 181 estates operate on 26,000 hectares (ha), of which 17,000 ha has been allocated.

The decision reverses the earlier norm under which the vacant plot owner was allowed to continue owning the unutilised land for an indefinite period on payment of a certain annual fee. The norm would ensure that vacant plot is not confiscated. "The new decision will discourage those who own land only for speculative gain," a senior official said, adding, "With this, the days when one found nearly 50 per cent of certain GIDC estates' space vacant would become a thing of the past."

In a third decision, the state government has banned change of purpose for which the plot has been bought. "Any plot bought for setting up an industrial unit will not be allowed to be used for commercial purpose, including setting up shops or offices," the official said, adding, "Action will taken against those found changing the use of the plot. The decision will encourage genuine industrialists to set up enterprise."

Role of Women in Real Estate

There are very few occasions when you will see women involved in the matters of property. Why? This is because women have always been treated as an ignorant section of the society having no role or say in any matter. In India, the condition of women is really miserable especially in the rural sectors. But now, as the country is developing at a rapid rate, all its sectors are witnessing considerable growth. Real estate sector is one of the most flourishing one and is continuously progressing having equal participation of men and women in it.

Women have gradually risen from their low status and are empowered by various government policies and relaxations. More and more women are now actively participating in buying properties and the different laws of the government regarding home loans and other property issues facilitate them in this task. If you want to know how it is beneficial for women to buy property then simply go through the following facts:

* If a women invest in ELSS (equity-linked savings scheme), deductions upto 1Lac can be claimed by her thereby saving a lot of money.

* Girls living in their parents’ house can help them to save and earn a lot of money. How? If you want to lease the house then deductions on the re-payment of home loan principal upto 1 Lac can be availed and also the total amount of interest paid as deduction as against the rental income can be claimed.

* If a girl and her parents jointly buy a house then deductions on the home loan that is shared can be easily claimed by her.

* Girls planning to get married can help their future husbands avail maximum tax benefits if the house is jointly owned. Also, she can reduce the repayment burden.

* Women in India are empowered by Income Tax Deptt. to adjust their loss against interest on home loans deduction limit. They are privileged to set off such loss amount to their salary incomes.

The women in today’s scenario stand at a same pedestal as men. She is independent, self-earning and intelligent enough to make decisions for herself as well as her family. A woman who owns a house automatically becomes more confident and secure. Also, investing in a home or any other property serves as a lucrative investment.

So, by reading this write-up you must have acquired a fair idea of the benefits a woman can avail if she buys a property in India. So, why wait then….grab the opportunity at the earliest possible.

Courtesy:realestateindia.com

Advantages of Joint Ownership of Property

Property may be owned either singly or jointly. Joint ownership connotes equal rights to use the property along with equal title.

When two or more persons are joint owners of a property, it is understood that there is unity in title, possession, interest and commencement of title.

Common ownership, in contrast with joint ownership, has unity of possession and commencement of title, but the other two features, unity of interest and title, are missing.

Another feature that distinguishes joint ownership from common ownership is that in the former succession is by If an absolute owner converts his absolute interest into a joint interest, it would involve making his absolute claim to the property subservient to the claim of the other joint owner.

Joint ownership of property has its advantages. In case one co-owns the property with his spouse, there are many benefits. Both husband and wife can get tax benefits.

Moreover, the couple are eligible for a higher loan amount. This is because their incomes can be clubbed to determine the loan eligibility.

As an individual, one's income may not be enough to raise the full amount required to purchase a property. In case the wife has a separate source of income, one can club his wife's income to enhance the loan eligibility and possibly oint ownership means tax benefits are available for both husband and wife. Thus, if a husband and wife have a property with equal shares, both are entitled to claim these deductions.

A house should be bought in joint names and proof of co-ownership should be maintained. Secondly, the housing loan should also be taken in joint names.

The repayment of the loan should preferably be made individually by the co-owners directly, if feasible, or from a joint bank account in which funds for repayment of the loan should be contributed by the co-owners in proportion to their ownership or share of loan availed.

All the co-owners should have their independent income sources from which the loan is repaid. The tax benefits are available in proportion to the joint ownership shares and the loan taken by the coowners.In case of a joint ownership, the husband as well as wife individually will be able to claim deductions under Section 24 of the Income Tax Act, for up to Rs 1.5 lakhs towards the interest component.

A precondition is that the proportion of shares must be specified in the agreement, or else the coowner will not be able to claim any deductions.

Joint ownership also enables easier pledging of property. Future borrowing for any other purpose becomes easier. Any of the joint owners can easily pledge the property.

Joint ownership enables easy transfer. If it's a joint ownership, it's easier for both to nominate their children as the future owners of the property.

But if your spouse is the sole owner of your house, he/she would have to nominate his/her partner as the future owner and subsequently the latter would have to nominate the children.In case of a joint ownership, the husband and wife have equal rights in the property and their interests are secured. In case of joint owners of property, the property devolves upon the surviving joint owners. There would not be any requirement of legal heir certificate.

After the demise of the owners, the transfer of property to the children is easier. If a property is jointly owned and one of the individuals is no more, the property can be easily transferred to the coowner with minimum legal hassles. But if it is not, there can be various issues.

Focal point

The tax benefits are available in proportion to the joint ownership shares and the loan taken by the co-owners. In case of a joint ownership, the husband as well as wife individually will be able to claim deductions under Section 24 of the Income Tax Act, for up to Rs 1.5 lakhs towards the interest component.
Courtesy: Economic Times

Buying Commercial or Residential Property? Read this....

You can buy a residential or commercial property which is under construction or ready for occupancy. However, there is a lot of due diligence that you need to do before taking it up. The first thing you need to understand is the demand-supply situation in the area.


You need to ask questions like what other projects are coming up in and around the area in the near term. Secondly, you must do some homework and find out details about the builder and check his ability to deliver in the past. Take a look at the quality of construction of his previous properties.


Last, but not the least, floor choice and view from the flat is very important. Many a time, builders try to sell you flats that are least saleable — maybe the last floor or the first floor.One must remember that while there are penalties on individuals if they do not make payments on time, there are no penalties on builders who do not deliver on time. Besides that, one has to also keep in mind costs, such as stamp duty and registration, which could dent your returns.


The developer may ask for the car parking money in cash. If you want to sell your property, the developer may levy a clause that you need an NOC from him for which he may charge you. This is especially true if you are selling the flat before builder completes the entire project.


So, you must keep that margin in mind while making your calculations. The other option could be to buy a commercial property and rent it out to earn rental income. Here one must calculate the kind of returns which one can get before getting into this.
Courtesy: Economic Times

Want Assured Returns, invest in Real Estate..

Mark Twain’s investment advice — ‘Buy land, they are not making it any more’ — appears to be holding good a hundred years after the American author’s death. Whether it is Mumbai, Delhi, or even some of the smaller tier II cities, like Coimbatore or Jaipur, real estate prices have multiplied manifold over the past few years.

In real estate, there is no dearth of multibaggers. There are many cases wherein properties bought for a mere Rs 1 lakh around 1985 are today valued at Rs 1 crore or more.This essentially means money is multiplying a whopping 100 times in 25 years at an annualised return of 20% per annum. For instance, retired professional N Mehta, who bought a one BHK house in Andheri, Mumbai, for Rs 70,000 in 1977, is now receiving offers worth Rs 70 lakh.

 

courtesy: Economic Times

Realty to build on revival, growth seen back on track

Realty sales volume seems to have been affected on a quarter-on-quarter (QoQ) basis due to a significant hike in prices, especially in affordable housing projects, which are no longer within the buyers’ budget. Builders have again started to focus on premium housing projects, with prices rising by 20-40% from the lows a year ago. Construction activities on a number of projects are on full swing. A strong year-on-year (YoY) revenue and profit growth across the sector is most likely, more so because of alow-base effect. However, the QoQ performance may not look great, especially in terms of profitability.


Most developers have managed to stay afloat with asset sales and funds raised from qualified institutional placements. These will help complete projects under construction and also launch new projects. The forthcoming March ‘10 quarter results are expected to show this in the financial performance of companies. Pre-sales of new projects have continued, bringing a topline visibility for the next 2-3 years. There has been a traction in the commercial segment as well. However, the retail segment continues to be a laggard. Recovery in IT, hotel and manufacturing will continue to boost commercial demand. “The overall demand is believed to be lower than what was in Q2 and Q3 FY10. Prices were robust across NCR (appox. 15% below peak levels) and Mumbai (nearing peak levels). Prices in Bengaluru continued to be soft,” said an Edelweiss report.


The average of estimates by ET Intelligence Group and six broking houses shows that the overall industry sales are expected to double on a year-on-year (YoY) basis. On a QoQ basis, industry sales would grow at an average 12-15%. Out of all listed companies, Delhi-based Anant Raj industries will be an outperformer with the highest YoY gain. Rental income from its IT park will add significantly to its topline. However, since most of its asset sales and project launches have happened in the past six months, it can’t be a benchmark for the sector.


Unitech, Orbit Corporation, Sobha, and DLF are likely to maintain their growth. “DLF has completed the merger of DAL with DLF Cyber City and listing now appears to be the next right step,” said an IDFC-SSKI report.


Companies have consciously been trying to clean their balance sheets of high leverage. Unitech, for instance, has achieved sales of over 13-million sq ft in nine months ended December ‘09 and is now focusing on execution of new launches and has scaled back its earlier target of 20-million sq ft of sales for FY10.


EBIDTA continues to grow on a YoY basis, but not on a sequential basis. With increasing share of premium housing compared to the low margin-affordable category, EBIDTA margins have improved significantly from 22% in same quarter year ago to about 38% in the current quarter. However, even as operating margins improve, they could not be translated drastically to the net profit. The overall PAT margins for the March quarter will be 200-250 basis points above December ’09 PAT of 24%. For example, for Mumbai-based HDIL, there hasn’t been any noteworthy movement in TDR prices, thus margins remain subdued.

Welcome to Comfort Realty

I wish to introduce Comfort Realty, one of the experts in Real Estate Consultancy, founded in 1998 having Corporate setup in Vadodara, spread across western India having offices in major cities of Gujarat, Maharashtra and Madhyapradesh. Today with over 50 professionals, Comfort Realty is a leading Real Estate Consultants providing customized solutions in the core areas of :

1. Industrial Land Acquisitions & Liasoning
Providing comprehensive services to Corporates, Industries, MNCs etc for land acquisitions, negotiations, liasoning, documentation and hassle free transactions.
2. Commercial Properties
Buy, Sell & leasing of commercial spaces for all Retail, Corporates etc
3. Residential & Relocation Services for Corporate Employees
Our Owner/Tenant Representation serves the increasingly complex marketing & asset management needs of corporate, institutional and entrepreneurial property owners.
4. Real Estate Investments & Advisory
Our investment philosophy is based on recognizing the importance of the occupier in driving returns from real estate.
5. Research & Feasibility Reports
Our research division is dedicated to providing our clients with cutting-edge market information and analysis.
6. Project/ Facility Management
We are a full service property management company which offers 2nd home management, rental property management services.

We have extensive experience in advising a wide range of clients spread across country. Today we are recognised as setting the standards principally in the sale, purchase, leasing of broad range of properties.

Some of our satisfied clientele includes Adidas, Levis, Hotel Royal Orchids, General Motors, Bombardier, McDonalds, Kotak Bank, FAG, Star TV, HDFC Bank, Blue Dart, In-orbit Mall, Shoppers Stop, City Max Hotels, Birla Sunlife, Dmart and many more....

If we can take this opportunity forward for more fruitful business association with your company, we will be glad to hear from you.