No Gold, No Mutual Fund, Invest In Property In This Festive Season

This Diwali real estate market of Kolkata brings excellent opportunities of investment for the property buyers. Like the other prime investment sectors real estate items are also equally vital and favorable possessions. Basically real estate investment is done for cropping higher resale value or better rental return. Nevertheless every year during this auspicious occasion real estate market has decked-up with attractive offerings and heavy concessions to attract modern day property buyers. The entire property market waits for this festive season for market upsurge. Here are few reasons why you should invest in real estate sector in this Diwali-

1. Offers! Offers and Offers– India is a country of rituals and customs. Most people consider this festive season as a propitious period for any prior and heavy-weighted investments. Diwali is the festival of brightness and prosperity. Developers promote their existing and inventory properties with eye-popping offers and well-packaged discounts. This year also market is flooded with such discounts such as – lucky draws, gold coins, TV, AC, Fridge, kitchen appliances and even abroad holiday packages. For example- a Noida based construction company is offering Rs 50,000 to 1.25 lakhs cash coupons, lucky draws to win microwave, microwave washing machine, refrigerator etc. Apart from these material offers builders also provide heavy concession on registration fee and stamp duties.

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2.Company offerings– Indian companies generally give away bonus to their employees and mid-year appraisal during October. Most people use this excess amount to mount up their down payment or even clear up their ongoing EMI of house loans. With the declaration of yearly fiscal budget, the tax release statement for the general category for individual tax payers was raised from 2-2.5 lakhs. Accordingly bank and financial organizations raised the exemption limits of home loan interest from 1.5 to 2 lakhs.

3.Lower interest rate– Banks and financial organizations offer low interest on home loans to boost up real estate sale. To support home buying this year RBI has reduced interest rates to a four-year low to motivate the property buyers. This initiative is likely to have impact on the existing EMI rates of home loans. Market experts suggest that this move of RBI will deduct the EMI of a home loan borrower by 8-10%

4.New property launch– Festive season feels incomplete without exhibition of new launched properties. Builders move up with new constructions to capitalize the increased market demand. This is the hopeful season for the property market to recover from the earlier selling sloths. This year with the announcement of affordable housing 2022 scheme by the central government builders are targeting lower and mid-income group home buyers to stretch their footsteps into real estate investment. Besides fat discounts on registration charge and stamp duties might act like trump cards for the builders to bring in more inflow to make progress in market slowdown.

There are plenty type of properties around every corner of Kolkata’s real estate market to satisfy every class of buyer. If you have fascination for north Kolkata, choose an ideal Flats in North Kolkata as per your requisite.

Agenda Of This Year’s NAR-India Convention

For people who are searching properties or even for the real estate investors Indian real estate market has always been a rising sector. Country’s economy is largely dependent on the real estate sale, conceivably after agriculture. Approx 5-6% GDP comes from real estate sector. The demand for commercial/residential real estate properties has been well regulated, accompanied and served by thousands of eminent real estate companies/ realtors/brokers of India.

Over the years real estate industry has improved with its quality of raw materials, supply process, funding and refined the business practices and tenures. The only prospect has been constantly in reverse is the transactional process. Consumers directly deal with brokers and realtors for their property investment; they provide the best counsel, truthful paperwork and perform the negotiation task on the behalf of the buyer. Thus NAR-India (National association of Realtors) suggests Indian real estate market needs to have a well-organized infrastructure to compete with the global standard of real estate market.

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Every year NAR-India arranges their annual conventions in order to bring an elevated and global practice standard with more clarity, moral code, liability in the real estate business of India. NAR-India is an independent organization which balances the interests of the realtors/brokers and domestic consumers on the other hand. NAR-India is a rational voice of realtors in India. This year also they have come up with another convention for betterment of Indian real estate industry in which the organization is expecting 1200 (approx) realtors form across the country and about 100 international realtors to be present. According to the chairman of NAR-India Mr. Ravi Varma this year’s convention will be of different objectives emphasizing on-

1. Offering multi-city solution through the members
2. Empowering them through upgraded education and technology and best practices across the world
3. Proper usage of technology to create more customers for themselves and create better services for the customers as well
4. Improving team management and communication skills
5. To have more international property professionals

Enter to the leading property portal in Kolkata, to have the best professional guidance on your property buying/selling.

By LNN (Liyans News Network)


Should We Invest In Real Estate During This Festive Season?

Mostly homebuyers in Kolkata wait for the festive season to start for availing the residential property sale in Kolkata where they could get the attractive discounts like- heavy concessions, free maintenance for certain period of time, free parking lot allocation, weighty discounts on registration and stamp duties. Same as your daily using components property market has also some specific sale seasons where to attract homebuyers and to push the property market real estate construction companies offer alluring discounts on property items. There are mostly three basic cycles in real estate sale –

1. Price upsurge

2. Price fall

3. Neutral market

4. Then rise again.

Therefore before buying property one should always consider the ongoing state of property market more than anything else.

Right timing has a very important role in property venture – Price of the real estate items has been an eternal reason to worry for the property investors. People have a common inclination of buying property when the prices are eventually slashed. Nevertheless the right property market has an essential role in the real estate investment. Being tech savvy these days people are finalizing their property investments online. Using inventory features like post your property requirement in Kolkata people are getting free online guidance related to the real estate market and their property investments. Experts suggest the earlier you invest in residential items you would enjoy lower financial burden for the long run.

Many commercial real estate investors spend a reasonable amount for monitoring the property market in order to perform the correct real estate investment to gain the maximum resale benefits. A good market analyzer always consider the future prospect of the property market of their probable invest zone. For instance if today if you put your money on properties of suburban areas of Kolkata , after few years the same property will be priced around 4 times than that of the time of investment because of the gradually improving infrastructure of that specific area.

Speaking about the special seasons developers sell both the on hand and existing inventory properties among which investment in the new-launched is the better profitable investment option. As an individual owner property selling has mostly come out of some financial crisis. For property selling one should always consider the open market valuation before confirming the concluding selling price.

Key facts establish the market augmentation – These factors regulate the demand and supply chain in the real estate market. Infrastructural development like transport, retail, environment, educational and medical habitation has crucial role in locality oriented real estate business boom. Therefore in the current scenario homebuyers should have to be enough knowledgeable about this existing factors that straight way impact on the real estate market. It’s always advisable before the property purchase one should consider the property graph of at least past 2 years or so. On the same note builders should have to be transparent enough with all their offerings, discounts and communication with the buyers and hand over the property in the scheduled date promised earlier during the time of registration. Thus it’s necessary for all the homebuyers to know about the property cycle minutely before entering to an active investment zone.

By LNN (Liyans News Network)


RBI Reduces REPO Rate. How Much Will You Stock Against Home Loan?

On 4th of October RBI cuts the REPO rate by 0.25%, but the bank has chosen to keep the CRR rate same as the previous years. Previously the REPO rate was 6.50% now it has been changed to 6.25%. This entire modification is done keeping in mind the inflation data and the slow growth rate.  How the banks act in response when they will have to cut off their lending rates is yet to be seen.

Starting from month of January of the previous year RBI has slashed the REPO rate by 1.50%, accordingly banks reduced their lending rates by 0.5% approximately. Speaking about the definition REPO rate is a rate of interest at which banks borrow capital from RBI, whereas CRR is   basic amount of capital or gold asset which Banks have to park mandatorily with RBI. With both these tools RBI controls entire Indian money market. On the basis of the economical situation of the capital market RBI utilizes its ultimate power of injecting and squeezing to control the liquidity in Indian economical market.

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After-effects on home loan borrowers

The current reduction of 0.25% in REPO rate may be at the no harm no foul state going by the current money market, but if it goes on falling over a period then banks will have to no other choice rather than passing on the benefits, the end shock could be vast. Each bank stores large amount of savings in the interest for long-term value.

With the reducing lending rate borrowers will gain on their existing home loans. On a home loan of 40 lacs for 15 years at 9.5% interest the entire interest load can be lessen by close to 1 lac in the year, if the lending rate again falls by 0.25% then also the profitable amount will be around the aforementioned. Here’s the chart on how much you can save on some home loan amounts-

Impact of rate cut: How much one can save in interest (for a 15-year loan tenure)

Loan Amount EMI @ 9.5% EMI @ 9.25% EMI Saved(RS) Interest Saved(RS)
Rs 25 lacs 26,105 25,730 -375 67,645
Rs 50 lacs 52,211 51,460 -751 1,35,291
Rs 75 lacs 78317 77189 -1128 2,03,000

Monitoring from bank’s perspective

Every single loan with elastic interest rate counting home loans, borrowed after 1st April 2016 will be connected with the banks’ marginal cost of funds based lending rate (MCLR), before this period those were part of banks’ base rate. People who borrowed the loan before April will get only one chance to switch to the MCLR rates.  Presently one year MCLR is about 9-9.5% for most of the banks.

ICICI Bank’s 1-Year MCLR is currently (of use October 1, 2016) at 9.05 per cent, while home loans are offered at 9.35 per cent (9.3 per cent for women borrowers). State Bank of India’s MCLR is at 9.05 per cent, while home loan rate is 9.3 per cent (9.25 per cent for women borrowers). Interestingly, 1-Year MCLR for ICICI and SBI on 1st April was 9.20 percent.  After that, it has come down by 0.15 percent. MCLR linked home loans are either set every 6 months or a year after.

New home loan takers it’s the ideal time to bargain with the construction company any invest in newly built flats in Kolkata 

                              EMI per lac at different interest rate

          Tenure              9.5              9.4              9.3             9.25
180 months            1044            1038             1032             1029
240 months             932             926              919               916
360 months             841             834              826               823

In the table above: a home loan amount of Rs 36 lac at 9.25 per cent for 15 years, the EMI will be (1029 * 36 lac) / 100000 = 37,044 calculated.

A borrower can choose among these options before borrowing home loan

  1. Reduce EMI
  2. Reduce tenure
  3. Transfer loan to another lender


But in each of the cases he will have to keep a track on the total interest saved. If the ongoing loan is about to end the impact of rate change may affect much.

By LNN (Liyans News Network)

Finally A Green Signal For Kolkata’s Monorail Project

The major idea has come into the news once again after almost a decade of its commencement. Burn Standard had submitted this proposal of monorail implementation almost 12 years ago. Central Govt. has finally made the plans performing to inaugurate city’s first ever monorail. With the progress of the project it’s being said that within 2020 passengers will be able to utilize this transportation services fully. Initially mono rail will run from Budge Budge in South 24 Parganas to Ruby on E M Bypass. Yesterday it has been officially approved by the state industry promotion and development board.
State Govt. organized a press met on Wednesday at Nabanna regarding this issue where the honorable chief minister Smt. Mamata Banerjee told the reporters,- ‘’The state transport department will sign a MoU with Burn Standard company very soon. The firm will bear the project cost – around 4216 crore- while the state government will provide the land and give all infrastructural support’’.

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The Board for Industrial and Financial Reconstruction (BIFR) referred Burn Standard company in November 1994. The company nullified this project as they considered it to be sick project in the year 1995, but now the company is all set to restore the project. ‘’ Burn Standard was under the ministry of heavy industries. But I brought it under the railways ministry when I was the railway minister,’’ Mamata stated. On the other hand Burn Standard CMD Md. Asad Alam said, “We are preparing a detailed project report. We will submit the report two weeks after the MoU is signed with the transport department.’’ Regarding the cost of the project he said, ‘’ Fund will never be a problem. Most of it will come in the form of FDI and we are negotiating with various companies and agencies. I cannot comment on the details but we are getting positive response. We hope to start the project by March of next year. It will take another three years to complete the project’.
Transport department officials are expecting monorail services along with the Batanagar- Jinjira flyover will decrease traffic jam on one of the main busy streets in the city. This is about the Budge Budge trunk road which remains always crammed by unruly bulk traffic. Since decade people have been facing this issue as a daily dose of torment. Particularly this route effectively needs an alternative transport way. Transport officials are really optimistic with this project; they are expectant with this implementation will bring positive changes to regular transport. Real estate market of Kolkata is anticipating too some excess sale in flats in Kolkata with this latest infrastructural connectivity.
The Left Govt. had planned for the same in the year 2004 but unfortunately the fruit never got ripen over the years. The project finally was brought into the right track during Mamata Banerjee’s Singapore tour in 2014.

By LNN (Liyans News Network)