RERA implementation by the state governments will renovate real estate transactions. The state government’s RERA rules will profit the real estate sector as never before. But speculations doing round are this will cause an upsurge in the cost of to consumers and the developers should have to be punctual and timely notify the consumers regarding the same.
Just a day after the state government released the final Real Estate (Regulation and Development) Rules, 2017, market experts unanimously have come up with the analysis of these new regulations.
It shows that there is a march in registration charges roughly by 10 times as of now. Along with it are costs by way of a range of clearances. Maharashtra Credai Chapter considers that with the rules implemented May 1 onwards, developers might increase the project cost to meet the expenses.
As a trending property portal in Kolkata we too think that project costs such as – title and environment clearances, land title and land sanctions will add up builders’ investment budget and they will definitely levy these on none other than the consumers. Buying home involves a whole lot of money. Now with RERA implementation the risk involvement will incline towards the builders’ side and to beat this they will pressure up the consumers by pricing up the constructions in order to make up the cost of expenses.
From the developers’ end it’s informed that buyers are interested rather to pay an increased amount than dealing with delay in delivery or inferior form of constructions. The consumers are looking more firm while booking any real estate unit, despite the fact that they are paying more. The sole concern of the consumers is whether the rules will be property executed or not.
As per the industry predictions, there will be limited numbers of new launches to give a pink slip to the unsold inventories. Statistics show that there is a reduction in the number of inventories amongst the major cities across the country. It’s expected to go downhill further. The only exception comes from the Mumbai-Pune belt where new launches are taking place, instead of trimming the inventories.
_ LNN (Liyans News Network)
Category: Uncategorized
HUPA Notifies Remaining Sections of RERA
RERA implementation date May 01, 2017 is neighboring. Yet the govt. has already notified the outstanding sections of the Real Estate Regulatory Act (RERA) as gazettes, much before than the due time. These notified measures incorporate retribution for non-registration of projects and resurgence of interest or fine or compensation and enforcement of order, etc.
RERA will be rolling out since May 01. Builders are rushing out on hand project completion before the RERA implementation. RERA will ensure buyers rights, for those who will buy property in Kolkata or anywhere in the country starting with the date of its implementation. Builders are hammering on their project completion before RERA execution, because these projects won’t be invigilated under RERA regime.
These particular notified sections of RERA by the Ministry of Housing and Urban Poverty Alleviation take in chief measures like registration of real estate units and real estate agents. Business purpose and duty of realty promoters bearing recompense, coverage, title of the project, rights and duties of the consumers.
Meanwhile, the notified section of 79-80 attending to jurisdiction of the act has also been notified. According to the notified section 80, “No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.”
RERA authority is expecting all state governments to fulfill their part of compulsion and requirement and at once notify them under appointed authorities, so that there won’t be any conjecture about further pulling out the deadline May 01. It’s indeed a positive move of the central government for protecting buyers’ interest and maintaining clarity in the business of realty. Many shady realty businesses are going to falling short of goals after the complete application of this regulation. RERA authority also hopes that the central government will henceforth focus n infusion of RERA rules by the state governments supporting the builders too and accordingly come up with positive moves to introduce fresh notified rules.
The Real Estate (Regulation & Development) Act, 2016 (RERA) was enacted on March 10, 2016 and will be notified on May 1, 2016. All the states are required to notify realty rules and set up the realty regulatory authorities and the appellate tribunals maximum by April 30.
_ LNN(Liyans News Network)
5 Simple Things, Other Than Legal Formalities, To Remember Before Buying A Property
Owning a house property is always a top priority task of an Indian household. Before buying a property one never forgets to accomplish legal formalities and arranging papers for loan requirements as well. While talking to property brokers, promoters or re-sellers everybody just looks at the house and validity of its non-encumbrance nature but they should keep in mind some other simple things but very important. Here we will not discuss legality,loan eligibility, capacity to pay EMI, quality of property, reputation of builder, promoters etc. rather we will discuss some basic essential things
1. Train stations and Airports should not be too far even though you have a car. It should be within the periphery of 45 minutes to 1 hour distance. It is seen that due to long distance of residence from Airport, people sometimes miss important task and cannot catch its train and flight. For example : People living in Mira Road , Thane can reach to Airport from Auto or Radio Taxi within 45 minutes to 1 hour in day time and 30 minutes in early morning. Inhabitants of Mira Road may reach CST within one and half hour to catch the train in early morning but during day time it’s a gigantic task to catch the train but still its manageable, however people living in Sanpara ,Airolietc feels hardship to catch train from Bombay Central. People living in suburbs of Kolkata have to come to Kolkata a night before and stay in a hotel or at a relative’s residence before catching a flight in the early morning say 7 AM or before.
2. Nearness to work place is also an important thing. Every day journey for one hour to 2 hours make life miserable and most of the time of the life goes in performing daily train or traffic journey. It forfeits the zeal of life, increase frustration and affects your attention towards wife, children and parents. A person never gets time to do other important tasks for family say excursion with children, visiting school of a child etc.
3. The locality is very vital to consider before buying a property. Visit the prospective locality of your future residence during different times of day , spend sometimes in a coffee shop or tea stall and see what happens there. Which type of people dwell there and what are the routine activities going on. Needless to say , one can imagine the effects of locality on the family. It is important to check if the grocery shops, daily need articles are available there or not
4. Ask property broker or shopkeepers near to property about condition during rainy day. Whether floody situation arises there or not. Whether drainage and sewerage systems are effective there or not and whether garbage are removed at frequent intervals.
5. Nearness to hospitals, schools , doctor clinics , 24 hour medicines shopts, community halls etc. are other important basic things to watch prior to finalise any property
Thanks
Bhaskar Choumal
Chartered Accountant
Realty feels slowdown pinch
The economic slowdown, inflation and steep interest rates have been dampeners for the real estate sector. But if these conditions persist, they can work to the advantage of home buyers — especially in the National Capital Region and Mumbai where property prices have soared unreasonably high. A price correction is highly probable.
“Developers with large unsold inventories of high-end and luxury units will have to lower prices as the current run of sales through innovative marketing and offers such as the 20:80 schemes are coming to an end,” Shweta Jain, executive director of real estate consultancy Cushman and Wakefield, says. Despite lobbying with the government for incentives, developers say there isn’t much hope of these coming, at least not until the elections due next year.
As the worsening economic conditions dampened sentiments, sales of residential and commercial assets hit a slowdown resulting in unsold inventories, choking builders’ cash flows. Premium segment sales crawled. In 2012-13 things worsened. Launches and absorption of residential properties in the top seven cities plunged by 37% and 23% during FY11-FY13, aggravating the sector’s structural problems, a Knight Frank report says. “Developers were caught in a trap — of ambitious expansion, decelerating sale, hardening interest rates, and weakening cash flows,” it says. Their capacity to service debts further worsened. Fund inflow through FDI too dried up.
All this piled pressure on developers to cut prices. “There’s an undercurrent to cut prices to push sales. Developers are short of cash. But this isn’t yet visible on the ground,” CB Richard Ellis MD Anshuman Magazine explains. There’s a demand for residential property. But, other than the poor sentiments, sky-high prices are slowing sales.
A developer explains: The problem lies with the fact that only parts of projects launched in the last three to six months are sold. The remaining inventory in the same project is unsold. The developer can’t slash rates for the unsold units. If he does so, earlier buyers who purchased when the project was launched, too will ask for reduced rates.
Jain says despite poor sales, many developers are still holding on to their quoted rates and the declines over the past quarters are marginal, But “there are expectations that prices would be lowered given the mounting cash-flow problem resulting from low off-takes, mounting input costs and debt servicing.”
She says the scenario is especially true in the NCR and Mumbai where developers have launched major high-end and luxury projects. End-user driven markets in cities such as Bangalore, Chennai and Kolkata are still recording reasonably healthy transactions as projects are priced more reasonably.
The market rates are likely to be first cut by investors who buy projects for the short term. Most of them bought around one to two years ago. Since then rates have appreciated by around 20% to 30% in the NCR and Mumbai. Now, with interest rates rising and prices stagnating for at least three months, many are tempted to sell and exit.
An investor says there’s little hope of prices going up in the next one year. At the same time, he has to pay 11% interest on investment, that’s if he borrowed money or lose a like amount in opportunity cost. Prices have appreciated since he bought the property and buyers are a lot fewer. So, the only way out is in cutting price and pulling out. Even then, Magazine says, this will take a while to happen because investors are still hoping that prices will appreciate.
Builders are putting up a brave face and saying there’s no scope of a major price slash yet. “Input costs have skyrocketed in the last year and we work on low margins,” Vineet Gupta, ED, Ajanara group, says. If prices have to be shaved, there’ll be no new launches, which will affect supply and in the long term, because demand is perennial, rates will rise. Ultimately, realtors won’t be able to build by cutting losses.
Source: The Time of India
DLF’s Gurgaon project hits court roadblock
Realty major DLF’s new premium high-rise residential project The Crest, off Golf Course Road in Gurgaon, is in a legal tussle.
The Punjab and Haryana high court on Wednesday stayed the project’s construction, sale and marketing on a petition filed by the resident welfare association (RWA) of DLF Park Place – a group-housing society.
The RWA alleged that The Crest has encroached on its condominium property.
The ex-parte order was passed by the division bench of justices SK Mittal and NK Sanghi.
“The Crest is coming up in the area falling within the FAR (floor area ratio) norms of the group housing – Park Place – and further any construction whatsoever except for buildings, common area and facilities for Park Place has been stayed by the court,” said Rakesh Khanna, counsel for the RWA.
A DLF spokesperson said, “We are yet to see the order. We can comment in detail only after studying it.”
According to the petitioner, The Crest, which is coming up on 8.822 acres, is on contiguous land falling within the FAR of Park Place.
RWA president Harsh Sehgal said in connivance with the planning department, DLF revised construction plans to increase the height of towers at Park Place in violation of FAR laws.
Source: Hindustan Times