How To Select The Right Real Estate Developer?

Most would agree with me that the best way to have a secure property investment is to select a property, developed by an established construction company. A thorough research on operating developers in the current market is the first and foremost step that a future buyer should do while considering a home purchase. For instance- there are many real estate houses in Kolkata at present with alluring offerings. Running after those tempting promises is the most common mistake that the potential homebuyers often do. Here are few tips to choose the right realty developers in Kolkata-

1. Check the background and past construction report– You should keep all the required information about the developer of your chosen real estate unit. Check out the market reputation of the builder along with a genuine market report regarding the past 5 completed projects of the company. It’s always best to have the knowledge about the structure of the project. Choose a developer company that has years of market experience. Visit the company website and mark the public reviews about it.

2. Ask for the necessary project approvals– Surely, nobody would want to have future litigations against their property investments. Check the necessary approvals by the local civic authority and financial institutions to avoid future legal hassles.

3. Financial stability of the developer– A delay in project deliverance and using inferior construction materials could be a consequence of lack of fund availability to the developer. It is advised to have a close look at the financial stability of the builder. For that, you might go over business reports of the company or you can ask the bankers or the stockbrokers regarding the financial data of the real estate company. Also, the information of past project success and sale statistics will give you a rough idea of the financial condition of the real estate house. Check out the portfolio of the developer and run a quality check of the construction before investing in it.

“Buying home brings an absolute sense of pride and ownership. Choosing the right real estate developer brings a significant difference in your success. Buying home is a major decision of lifetime, choosing a genuine builder with years of realty experience can save them from a series of unpleasant consequences in future. It’s really important that potential buyers should check the due diligence and market reputation of the builder, before the investment,”- said, Mr. Mahesh Somani, Chairman- National RERA Committee, Head- East Zone, National Association of Realtors India (NAR – INDIA).

All these tips are to be followed to confirm the best real estate company for your project development. If you need any realty help put your requirements under post your property requirement in Kolkata category and avail free expert solution regarding property buying/selling/renting.

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Inclusion Of Real Estate in GST Will Take More Time

Explaining it as a complex process GST Council member and Bihar Deputy Chief minister Sushil Modi said the inclusion of real estate in Goods and Services Tax (GST) would take “much longer time” than anticipated. The GST Council is likely to have another meeting subject to real estate inclusion in GST ambit.
Answering to a query about the tentative timeline of real estate inclusion under GST purview Susil Modi said, “It is up to GST Council to decide. But I think it will take much longer time and it is not that easy. Let other things stabilise in the GST, then petroleum products and real estate.”

Modi, who is also the Finance Minister of Bihar, said the inclusion of real estate in GST ambit will be discussed in the next meeting of the GST Council. State lived taxes such as- stamp duty, registration charges and property tax which is a municipal levy are kept out of GST range.

Every state finance minister is concerned to secure state revenue and the centre assured protection up to 14 per cent of the revenue, stated the minister. GST stabilized rates on 178 products from the top tax slab 28% after the meeting of Guwahati of GST Council.

The minister said, “In the earlier regime, the small businesses with below Rs 1.5 crore (annual turnover) were exempted from excise duty. Most of the small businesses were below less than Rs 1.5 crore cap. Now, all of them came to net of GST.”

In contradiction with the statement that the decision of rate cut on number of items from higher bracket of GST and racking them those up in the lower slab was taken in view of Gujrat assembly elections, Modi said, “88 per cent of small business in Bihar fall below Rs 1.5 crore (annual turnover). It is not the case for Gujarat.”
The market is finding it tough to comply with the unified tax regime. On which the minister thinks that it will some more time for complete adaptation of this revised indirect tax format. “Earlier in the VAT (Value Added Tax) system, 40 per cent was online based and the rest was done manually. The GST is end-to-end automation,”-said Modi.

The minister assured that the existing system would be simplified in the coming two-three months in terms of compliance as the compliance system will be less complex and more business-friendly. As of now for than 80 per cent issues have been resolved and some are yet to be worked on regarding the existing tax rates, confirmed that minister.

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Don’t Forget To Ask These Questions to Your Future Tenant

Selling/Renting properties online is easy-that we all know, but classifying genuine tenant from hundred random visitors is not as easy as it seems to be. When a prospective tenant visits your property chalk out a set of valid questions that you should ask to the person to find whether that person is a good fit or not for your property.

When you are ready to rent out your property to an unknown person, it’s really crucial to ensure that the future usage of your property is in the safe hands. Following questions can help save you the time and stress involved.

What is the reason you want change your present rented apartment?
Before anything else ask the reason behind shifting to a new property. Get more information about the valid reasons for moving. During interaction try to find out if there is any incidence of eviction from the current possession. Not always you will get honest answers from your prospective tenants, still you shouldn’t refrain from asking queries.

Ask about tentative moving-in date
Always check whether the tenant is in hurry to move in which may not be a good sign. Most landlords require prior notice of 30 days to do away with a lease. In case the tenant wants to move-in within a week, he may be contravening the contract with the existing landlord. A responsible tenant will start his search precendently of the shifting date.

The total number of occupants in the property (including pets)
Take information on the total number of occupants moving to the property. Your lease agreement should contain all the names of the occupants in it.
Monthly earning of your tenant
Though it’s not an easy question to ask, but it is also very important to have an idea about the earning of the tenant, so that you get your rents on time or really the person can afford the apartment or not. Ideally you should never rent your apartment to a person whose monthly income is less than 2.5 times of the monthly rent.
• To know about the financial position of your tenant ask-
• How long have you been into this profession? (Whatever his/her current profession is)
• What is your job role?
• Are you under any contractual job?
• What are your daily working hours? / Is there any rotational shifting?

What is the length of lease you are looking for?

Mostly lease duration is of 6 to 11 months for residential apartments. Ask your tenant about his/her preference. Ask him to pay one month’s advance rent and security deposit for your better security purpose while signing on the lease. In case the person looks hesitant while paying this advance amount, then you are likely to have a tough time having your monthly rents.

Things to remember

Avoid asking personal questions. Discrimination on the basis of age/sex/caste should be avoided.
Let the tenant also clarify his/her doubts regarding the lease contract.
Always ask for government id proof, bank acc details, office identification before heading towards any agreement.

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Centre Expands Carpet Area Under PMAY- Urban

Now Middle Income Group (MIG) apartments are going to have additional carpet area under the Pradhan Mantri Awas Yojana (PMAY) – Urban. Cabinet has approved the enhancement of carpet area under the MIG-I category. The carpet area has been enhanced from 90 sq mtr-120 sq mtr, while under MIG-II segment; it has been increased from 110 mtr to 150 mtr.

Carpet area is the area enclosed within the walls. This keeps out the width of the inside walls. Earlier builders used to charge for the super built-up area, which includes area of outer walls, balcony and lobbies, stairs and even lifts. Now that RERA is against the practice of super built up area and will set the measurement on the basis of the carpet area. Nevertheless, under PMAY, the area of the house is different for all the available categories and it’s the carpet area and not the super area on which the buyers will be charged for.

Union minister Ravi Shankar Prasad declared this revised measurements on a press conference. Briefing about the cabinet decision the union minister confirmed that under the MIG-I category, a 4% interest subsidy has been allotted for the beneficiaries with an annual income ranging in Rs. 6-12lacs, on a borrowed loan amount of 9 lac. Government’s decision to increase home size under Credit Linked Subsidy (CLSS) scheme will clear up unsold inventories, following by boosting up fresh market demand. Similarly, under the MIG-II category, the beneficiaries with annual income of Rs. 12 lac to 18 lac, get interest subsidy of 3% on a loan up to 12 lac.

Realtors’ bodies like CREDAI and NAREDCO are happy with this initiative taken by the government as they find the move quite favourable for the middle income group to emerge as an important investor class. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR) said, “Good news for property buyers who want to buy apartments with PMAY benefits. This is an incredible move by the government not only to push the affordable housing sector, but also to get the market a steady liquidity pool. Now, more developers will plunge into the market which would definitely usher new project launches in the current market.”

“Launch of new projects will definitely render the shortage of development under prime minister’s ambitious project –Housing for All by 2022,”- He added.

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The Future Of Logistics Real Estate in India

India logistics real estate is soon to be addressed as an asset class worth investing in. Accompanied by fresh investment and supply the logistics real estate market is set to score a fortune in the coming days. Several foreign investors and realty players are ready to pour it on Indian logistics industry. The implementation of GST will additionally draw the attention of global investors towards it which help the sector to have headway in future. Currently, India has a requirement for major business hubs in out-skirt locations with necessary connectivity. However, urban logistics are reasonably smaller in general.
When it comes to logistics, space is considered a huge component. The average space required for logistics asset is 10,000 sq.m. Again, it depends on the business requirement. Since, logistics property is a huge investment; it should fulfil the requirement of its tenants. Supply chain, transportability, and networking determine the turnover of the sector. Another decisive factor in logistics real estate investment is usability. Logistics spaces are widely used for storage, manufacture, and cross-docking. Though it’s still at a conceptual stage, but ‘Multi-storey’ distribution centre could be a vital solution to accelerate the potential growth faster. So much futuristic approaches in logistics real estate render a great alternative investment sector for the potential investors.

Logistics and warehousing demand has been increasingly fuelled by growth in buying sentiment and super success of e-commerce. Surprisingly, Asia Pacific logistics business earns better revenue in comparison to other international counterparts. So far, major players such as- Ascendas-Singbridge, Assetz Property Group, Logos, Canada Pension Plan Investment Board (CPPIB) and Everstone Group have invested in this sector for their further business development. Logos and Assetz Property Group jointly set up a logistics and warehousing platform which will invest about $400 million, as equity, to build and direct dedicated logistics and industrial parks. Starting with key logistics hubs of Mumbai, Pune, Chennai, Bengaluru, Hyderabad, Ahmedabad, and the National Capital Region (NCR) Logos India will cover investment, development and asset management of modern logistics assets.

“Whether it’s a rented property or an owner-used logistics real estate has its steady pace of business expansion. E-commerce and start-up sectors are turning the demand of small logistics space up. Thus, an increasing requirement has been observed for sustainable construction solution. In collaboration logistics, real estate will have substantial revenue contribution in country’s economy, followed by a stable employment extension,”- said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).
The market is on an exploration spree for building logistics centres close to the Central Business Districts (CBD). Here the market looks forward to the intensification of the constructional activities and the realty development works. Amazon and DHL have already secured their investment in Indian industrial warehousing sector. GST roll-out is having a positive impact on Indian logistics industry. Several logistics companies have been built around the highways and around 7.3million sq ft of warehousing space were leased in the first half of 2017 across major cities in India.

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