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Team iPropUnited

Team iPropUnited
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How To Avoid Heat Inside The House This Summer Season

    Avoid Heat Inside The HouseAs soon as the summer season comes, the air-cooling industry becomes the busiest. Coolers and air conditioners being repaired or repairmen carrying them on bikes and scooters to the workstations are very common sights visible. Coming of summers is the coming of these units into action.

    Summers become unbearable and to overcome them, lot of money is spent on these beating-heat units. But that is just one solution to beat the heat. You can adapt various other natural solutions which need to followed, at the time of construction and sometimes after that too.

    One of these methods is thermal bridging (also called thermal breaks) which keeps cool naturally. It is a method where a material with a low thermal conductivity is used on the windows and walls as it will prevent heat from entering inside. This is an organic way to create insulation.

    As the sun starts showing ruthlessness, the best option one has is insulation. It is only the insulation that helps in protecting the house from the excruciating heat outside. But the benefits of insulation don’t end there. They even help in winters by keeping the house warm.

    Considering some parts of India receive immense amount of heat, solar radiation is the main culprit behind the heating up of exterior walls to very high temperatures. And these high temperatures will automatically find their way to interiors too, causing the heat to become unbearable, if and only if the insulating thermal breaks in home are not properly used.

    Another example is of the balcony. The floor of a room is the same that will extend to the balcony too. The part of the floor which is in the balcony will heat up immensely during the day-time. As a result, this heat will seep into the interiors also. But this can be prevented by the insulating thermal breaks in home. If you interfere with this heat by using a material which is used as thermal breaker like wood fibre, perlite or earth soil on the jointing in the middle, you can get rid of the unwanted heat in the interiors.

    In Delhi, which has an extreme kind of weather, what people want most is to interrupt the heat from reaching inside the house to keep it cool and comfortable for summers. And only thermal breaks can be useful in this. The bizarre thing to be looked upon is that the modern designed houses use materials like metals and glass, which are extremely attractive and classy to look at but at the same time are terrible insulators.

    Thanks to the modern and unnatural designing of the houses nowadays, the thermal breaks which are natural are also hindered at various areas. The areas include the ones which are broken for different purposes like electricity ducts, plumbing etc.

    Now that we have known the amazing benefits of insulation, we should also know what the criteria to choose it. When you are choosing the insulation, its R-value should be analyzed. Now what is R-value? As the letter ‘R’ suggests, it stands for Resistance and R-value is the resistance shown towards the flow of heat. The R-value is directly proportional to the amount of insulation. Therefore, more the R-value, better the insulator and ultimately better the thermal break. These materials should be used at places from where the heat enters the house or at the joints.

    Moreover, you can also increase the efficiency of these thermal breaks in home by locating the transfer points on areas which receive less sunlight.

    But now the most important question arises is how to fir thermal breaks in an already constructed home? Here is what all you can do –

    • The roof attracts the maximum amount of heat so paint it in a light colour. After that layer it with perlite which will act as a thermal breaker.
    • Walls also bring a great amount of heat, so for that paint them with heat-reflective paints which are good in quality.
    • When you are using air conditioners in homes, you should seal the room by applying a layer of high-density rock wool on the outer side of the wall. This will act as a thermal break and will prevent the heat. Also, mandatorily keep the air conditioners or coolers away from the direct heat from the sun.
    • If you have windows with aluminium frames, use insulating shades for them.

    With all these techniques of thermal breaks in home, you definitely avoid the high electricity bills in the summer season, which has always been a problem. Stay cool and comfortable!

    Effect Of RBI Monetary Policy Review On Real Estate!

      ribi + home + rupessRBI better known as Reserve Bank of India has many reforms and monetary policies which impact the industry and other sectors in good and bad ways. With the current GDP, India is set to be at the lowest in the last few decades which is a cause of concern. The monetary policy has been revised by RBI keeping in mind the slow GDP. Also, the REPO rate has been decided to reduce by 25 points and is currently at 7.5%. This will make a great impact in the real estate industry as the banks will now able to provide home loans at an attractive rate. This impact will make the current customers get better rates on home loan interests and retain them from being attrition.

      The real estate developers will get a relief from such an impact as this will help move the stock faster and give a relief to the builders. RBI has seen a huge inflow of money with the demonetization. A total of 5.12 lakh Crore has been deposited into the banks and only 1.3 lakh Crore which is one-fifth of the total deposits have been withdrawn. With this, the RBI has asked banks to park around 4 lakh Crore in the reverse repo facility. This is a temporary mechanism that has been an action by the RBI and it will impact an outflow from savings bank account return rates. Therefore the rate cut will balance the actions taken by RBI.

      RBI has been directly impacting the real estate industry with its monetary policy and has passed on the benefits to the buyers of the real estate sector. The demand for housing is on an ever increasing trend and this is also being met by the developers. However, with the REPO rate unchanged it has put on hold the new investors to invest in the housing sector. The spending power of the consumer depends on the home loan rate cuts which make the EMIs lesser and gives a relief to the investor to invest more. But since the rates have not been reduced as expected the EMIs have not changed much making the buyers stay where they are.

      This has impacted the low and mid income range consumers to wait for the rates to go down and only then invest in the real estate sector. Despite the requirement, the consumers are waiting for a rate revision either from the RBI or the developers. But the developers may not be able to do so as the action is not supported by the RBI and is not monetising with the current situation. All these money matter impacts the end consumer in different ways. The money saved from real estate will end up in the stock market as this sector is the most lucrative after the real estate industry. The profits from the stock market are then moved into the real estate and the cycle goes on. The impact from the REPO rate has caused a lot of grief in the real estate sector and the developers bear the brunt of their stocks not moving as expected.

      Every monetary policy has something to offer and impacts some or the other sector each time. Banks are now able to give away the benefits to the customers and hep them to invest in better options. The savings interest rates have also become better as the industry cashes in on the changes in the RBI monetary policies and reforms. This change has also impacted the foreign markets from their investment in real estate.

      The monetary policy made a lot of changes in the investment decisions and the stock market lost its indices by 1%. This was because the money invested in the stock market was now turning their heads to the real estate sector and making way for the developers. It has also led to the liquidity rate being on an all time high with investors now spending on the other sectors.

      RBI has been the talk of the town with the monetary policy changes and has made many investors rethink on their strategies and develop new ones. It has caused a lot of ups and downs in the market. However, this is good for some while bad for the others.

      How Will GST Improve Real Estate Existing Condition?

        GSTGST is a tax indirect in nature and is known as the Goods and Services Tax. It has been passed as a bill in the year 2016 in Parliament ad has been said to have many benefits and effects on the daily functioning of the business. It is said that GST will be a great game changer in the real estate sector. If the current rates in comparison with GST are higher, it will be even more helpful for the investors. There are various taxes in India which are applicable when you purchase any goods or commodity or even a service. However, with the implementation of GST, the various taxes will be cancelled and make the life easier for the consumers. Let us look at the GST impact on the real estate industry.

        Tax Credit
        All the builders are concerned about the clause of input tax credit not being added to the current GST bill. This is a credit received by the builders and consultants who would get a return on the tax paid. The main reason that it is a cause of concern it that builders will not get the profits which are paid by the consumers as a tax that is as high as 20% – 22% as compared to 14% – 16% currently. The next step is to implement the GST in all states and get an approval from the Central and State Governments to make it work all over the country.

        Other Taxes
        There are many taxes that come under this category which is charged separately currently and will need to be taken care of. VAT and Service Tax being the major stakeholders in this category will need to be dealt with and may lead to a reduction in compliance to bring the efficiency which was missing since so long. However, it is early to comment if the impact of GST will bring in the real estate conditions to better up or not. It is also said that globally there is a gap of one year in the introduction and implementation stage of GST and that the government should consider this and provide a breather time to the sectors to get accustomed to it.

        Profitable Sectors with Implementation of GST
        The most profitable sector with the implementation of GST will be logistics and warehousing industry. They will be free from all the central, state and local taxes and make the transfer of goods easier between states. This will also reduce the tax burden on the manufacturing industry thereby making the real estate rates to dip. Every state has a different tax levied on the real estate industry making it difficult and expensive for the small investors. However, with the GST in place it will become a unified tax system and make everything a price shop.

        Deal with Multiple Uthorities
        With the many taxes and reforms, the real estate has to deal with separate authorities each time which makes it difficult in exercising the transactions. However, with the unified taxes, all these multiple dealings will come to a stop and one path will be followed. This will bring down the real estate rates as the taxes will be already aligned and the state and central governments will need to work accordingly.

        With the current impact of GST, it is forecasted that the GDP growth of India will increase by at least 1% which is a great boost. This can reduce the prices of the real estate industry only if the prices do not increase with the implementation of GST.

        The main impact GST will have on the rates is the free input credit which will be passed on to by the developers to the investors. This can be around 6% of the current zero value. Since the value of the transaction is huge, 6% is a great start for the rates to dip in the sector of the real estate. In the commercial property sector, GST will help to reduce the construction cost by benefiting from the input credit. However, with the implementation of GST, the rates for under construction real estate will be higher than the current rates. This can be a major cause of debate with the GST coming in the real estate industry.

        2017: The Perfect Year To Buy An Affordable House

        Credit Linked Subsidy SchemeProving the success of Credit Linked Subsidy Scheme (CLSS), the number of applications which have been received for it by the government by different channels is more than 1.66 crore. We had always faced the issue of being digitalized because our overall internet involvement is just 32%, but that also seems to vanish now, in case of applying for CLSS. Although, going complete digital will need proper assistance. But that will prove to be advantageous as it will provide employment opportunities.

        The CLSS was launched by the Housing Ministry with the motive of making finance available to our Prime Minister’s noble vision of providing Housing for All by 2022. The most amazing thing lies in the fact that while, earlier, the topic of computation was the housing shortage, now the number of sanctions for CLSS are being praised.

        But the question is that what is the procedure of getting the sanctions availed? Under the Pradhan Mantri Awas Yojana (PMAY), the CLSS was offering an interest subsidy of 6.5%. For an initial amount for Rs.6 lakh availed, the amount of credit subsidy will be credited in the account of borrower. The annual income of the borrower was supposed to under Rs.6 Lakh. This lets the subsidy to go reach 21%. This was the first time that the government had made efforts for even the Lower Income Group of the society, apart from Economically Weaker Sections, which were always focused upon.

        Later, two new credit subsidy schemes were announced by the Prime Minister which included benefits for MIG groups. After this the benefits increased for people with an annual income of Rs.12 lakh and Rs.18 lakh to avail the subsidy of up to 4% and 3% respectively.

        Therefore, according to the CLSS, if somebody who was earning an annual income of Rs.18 lakh went for a loan to a bank he would be able to get a home loan of around Rs.65 lakh. 3% subsidy would be available to him for the initial Rs.18 lakh, if he applied for the loan after 1st January, 2017. Because of this, the interest rate reduces from the current 8.5%. This becomes the perfect time for investing in affordable housing.

        Contrary to the assumption by people of digital problems, more than 30 lakh people have come forward for the application on HUPA website, that too without any support. Some states were not at all encouraging and supporting the applications for CLSS, and therefore Common Service Centers had to launch which was managed by IT professionals. Despite them charging a fee of Rs.25 per application, people have willingly applied. As a next step, NHB (National Housing Bank) is working on analyzing the eligibility of the applications and has estimated that the number of loans given out will be 80 to 90 lakhs.

        The Middle Income Group (MIG) has been included in the segment of affordable housing. However, since subsidies for MIG is only valid for one year, the industry should be encouraged to enjoy the benefits of the scheme by transferring to MIG.

        One more matter to be seriously taken into account is ensuring the interest of the developer in the upper end of the LIG segment. This is because the developers will easily make money out the MIG segment, which will be difficult to achieve in the upper end of the LIG segment. Therefore, to keep their interest, a portion of priority lending funds received by banks should be kept aside for the development of LIG housing.

        Because of the digital cash movements like Digidhan, workers from informal sectors have the access to a digital tracker to give them their CIBIL score. Lenders like SEWA bank are already using this to lend money ranging from Rs.1 lakh to Rs.3 lakh. The ministry is also looking into the matter of lending made to the unorganized segment and sorting it out IBA (Indian Banks Association).

        A simple process of application and documentation has to be followed by the informal sector, as per the circulation by IBA. However, banks will have to be a little lenient during the process, as the informal sector will probably not be able to show all the required documents to complement their application.

        If you are in a situation where the person who is selling the house to you had got it under the scheme of subsidy but is now selling it because the lock-in period is finished then you will be entitled to receive the funding under the subsidy. However, on the other hand, the seller will not be eligible to get more subsidies.

        Initially, as per the Census, PMAY was launched in a total of 4011 statutory towns but now to avail the advantages of the PMAY, more statutory towns are being added by the states. Now the total comes up to be 4300.

        The main motive behind PMAY not let anybody be deprived of having a house, which is a very basic necessity of livelihood. The schemes are made in such a way that the purchasing the first house becomes easy and affordable.

        Now that the government has finally included MIG and LIG in the sector of affordable housing, it is clearly taking initiatives to fulfill people’s dreams by providing resources.

        As of now, the schemes are available only in year of 2017-18. Apart from this, the interest on home loans has also been reduced. If we keep them subsidies and look at the interest rates in the last 20 years, these are the lowest. And hence, 2017 is actually the best time to buy an affordable house.

        RBI Warns Banks To Deliver Rate Cuts To Borrowers, Or Face Harsh Action

        RBIThe banks have been given a warning by the RBI saying that if they are not correctly abiding the base rate reductions, they will face a problem in the forthcoming supervisory cycle by RBI, which will be held soon. They will also have to prepare the internal ombudsman scheme.

        The banks have not shown any transparency in the process of delivering rate cuts to borrowers and neither have they shifted the loans to MCLR (Marginal Cost of Lending Rate).

        One of the banks had decreased its MCLR by basis points of 105; while on the other hand, its base rate cuts for borrowers was decreased by only 10 basis points.  All this while, 70% of customers were maintained in the base rate regime. If one bank is doing so, other banks are not likely to be left behind.

        Even after one year of the internal ombudsman scheme being proposed, numerous banks (categorically the public sector banks) have still not executed the scheme.

        As a result, this default will be taken seriously in the forthcoming supervisory cycle by RBI and proper action will be taken against it.

        The biggest matter of concern is that the banks are not providing any aid to the MSMEs (micro, small and medium enterprises) when they are facing difficult times.

        Many MSMEs are facing issues because of this behavior by banks.

        Effect of Rate Cut for Homebuyers
        Housing sector alone contributes to 5-6% of Indian Economy. As per current scenario, post notebandi, quite a less investment is observed in real estate firms. Hence, housing projects and other realty projects are being delayed.

        Rate cut in home loan will be a relief to the realty sector for it will pull interest of homebuyers to invest more in housing firms through loans at low rate.

        Speedy Recovery Of Real Estate Post-Demonetization

        house + repessThe biggest threat that the realty sector was facing after demonetization (notebandi) was the fear of time which will be taken for recovery. But real estate after notebandi is apparently recovering speedily. If we look at the estimates by sources, it is believed that the different segments of realty post demonetization are witnessing an increase in demand. These segments include commercial, residential and affordable homes.

        Real estate recovering post demonetization can be seen clearly with the increase in demand in specifically the residential segment. Even the increase in the commercial properties is also a clear signal of realty recovering after notebandi. As per the real estate developers, they have been able to sell many units in comparison to the downfall which they were facing earlier.

        Realty developers have informed that homebuyers are coming back in action showing the realty recovering after notebandi.

        Keeping in mind the post demonetization real estate status, it was assumed that the downfall will go on for a very long time. But the real estate had buyers showing interest in even the month of March, which usually doesn’t as it is the last month of the fiscal year.

        Realty estate revering post demonetization is most prominently being seen in the affordable housing segment.

        Keeping in mind the perspective of buyers, they had expected the prices to come down in post demonetization realty and therefore, they were waiting for the correct time to make the investment. But that didn’t happen to the real estate after notebandi and so the buyers have started investing in various segments.

        Various measures taken by the government in order to achieve the vision of Housing for All by 2022 has also helped a lot in the recovery of real estate post demonetization. These measures include subsidies provided by the government along with the numerous affordable housing projects that are launched and most importantly granting the infrastructure status to affordable housing sector. Political stability has also played a major role in post demonetization realty.

        High Rate Of Delay In Housing Projects Across India

        Delay In Housing ProjectsAs per the housing projects report, there are various housing project delays across the country which come to around 826 in number. These projects are lagging behind with up to 4 years.

        According to the housing projects report, the total number of housing projects that were under construction, till December 2016, was 3511. 2301 projects out of these 3511 were at the execution stage. But, out of these, 826 faced housing project delays and 60 faced commercial project delays.

        Punjab was the highest defaulter in real estate and construction projects with a total delay of 48 months, as registered by the housing projects report. Punjab was closely followed by the states of Telangana and West Bengal with delays of 45 months and 44 months respectively.

        Andhra Pradesh, Madhya Pradesh and Uttar Pradesh, all these three states registered a delay of 42-months. On the other hand, s delay of 39 months was registered by Maharashtra.

        The higher officials are convincing the government to imply the system of single-window for the real estate projects to get clearance. This is because the entire procedure of obtaining various certificates and approvals from concerned authorities is the main cause of the burden of cost and time. This overburdening results in the housing project delays ultimately leading to corruption.

        The government should encourage the development of real estate projects instead of just putting regulations.

        State governments must also adopt computerized system of maintaining records online otherwise even Housing for All projects getting delayed in India will become common.

        Experience Gondola Rides In Grand Venezia In NCR

        Grand Venezia MallFor the people who love boating, they have always missed this facility in the Delhi NCR region except for the boat ride at the famous Akshardham Temple. Thanks to Grand Venezia Mall in Greater Noida, to be opened soon to give the same enthralling boating option in NCR.

        And it is not just simple boating. The mall has chosen the theme of world-famous and loved Gondola rides of Venice, Italy. The romance of Venice has been revived with the gondolas sailing in the center of the mall through the canal. You will always find gondolas peacefully sailing through the water that is crystal clear. It perfectly complements the interior of the mall that is also Venetian. The best part is that the Gondoliers also sing an opera while they ride it, which makes the whole experience very authentic and pleasing.

        The whole idea behind the Grand Venezia Mall in Greater Noida is to give people an innovative feel of destination mall which will be the first for the Delhi NCR Region. The makers of the mall have tried to bring the speciality of Venice- the city of romance, which is also known for its architecture.

        The mall is a designed and planned as a one-stop solution for all your luxuries of life, be it shopping, lifestyle and entertainment or fine dining.

        Grand Venezia has a mall of 1.5 million square feet, a commercial tower of 2lakh square feet and also a 5 star hotel which consists of 200 rooms.

        The mall covers an area of 5 lakh square feet with the following facilities –
        • Coffee shops
        • Huge multiplex consisting of 1000 seats
        • Restaurants and fine dining restaurants
        • Entertainment zone

        The commercial tower also provides a high class working area for professionals with Wi-Fi, power backup and adequate parking spaces.

        The 5 star Hotel gives a luxurious stay to its guests with spa, gym and other comfortable facilities made available to them.

        This perfect one-stop destination, Grand Venezia is situated in Greater Noida, next to the Jaypee Golf Club.

        10 Important Financial Tips For Property Investors For Safe Investing In Real Estate

          InvestorsThese days people are more intersted in investing in properties. The investment may range from long term (for retirement) to short term (capital growth while a housing boom is going on). But, what it is suggested is to keep the long-term view in mind when you wish to buy the property and hold it.

          We always emphasize on buying the right property, but financing should also be equally emphasized on. This is because determining the amount of finance your property requires is very important. You have to get your financing done right otherwise you will not be able to diversify your borrowing options, which in turn creates a large property portfolio for you!

          Here are 10 important financial tips for property investment which should be positively kept in mind-

          Different lenders to be consulted  
          Generally keeping in mind the loyalty factor, people stick to just ne lender. But what actually happens is one lender reduces the amount that you can borrow. Moreover, it can also increase the factor of risk as a single lender gets a chance to evaluate all the properties in a combined way rather than e

          valuating them individually. If you have a look at different lenders, you will get the best deal possible to increasing the ability of borrowing.

          Plan is the key to success
          Staying true to its essence, planning or strategies are very important financial tips for property investment. An investor should plan a detailed strategy in order to let their property portfolio grow. Plans for financing and a cash flow analysis should also be prepared.

          Ignore the credit a little
          It may sound insignificant but if you reduce the limit of your credit card, it actually affects the amount you can borrow for your property. Also, don’t to forget to cancel the credit cards that are no longer in use by you. This is because they can become an important part of consideration by the lenders when they decide how much amount you are capable of borrowing.

          Try to provide security on just one property
          When you give your lender security on more than one property, various problems are caused. Sometimes, when the value of property increases you won’t be able to release your equity. If you think some other lender is providing a better deal, you will face problems as the present lender will not release their mortgage to give you a chance to get your property refinanced.

          Loan should be structured properly

          If your loan is not structured in a proper manner, numerous problems will come your way. They may include a reduction in flexibility and increase in risk. Through multi-securitisation, an improperly structured loan will work against the flexibility. If the lending on investment and home is not segregated, the risk factor will reach its peak. And most importantly, you can also miss the deductions available with you.

          Keep the security in touch

          When you provide more than enough security to the lender, it can actually back-fire you as they will restrain investment potential. Lenders are never satisfied, no matter how much security you provide them. And therefore you should regularly inspect the value of your property and also get them checked again with the banks. By doing this, there are chances that you will be able to get rid of the security from your investment properties.

          Personal debt should be combined
          If you get an opportunity to combine the personal loans that have a high interest rate then you should immediately go for it. This is because they not just cost you an increased rate but affect your borrowing potential too.

          Experienced mortgage broker
          The most basic financial tip for properties investment to be kept in mind is to consult a mortgage breaker who is immensely experienced in investment properties. An amateur can increase your risk factor.

          Keep a line of credit
          When you are getting involved in something risky as investment in properties, you should be prepared for the worst. You can do this by preparing a cash reserve from the start in the form of line of credit. So, when the times get tough, you will still have a buffer.

          Principle and interest
          If you organize your loans for investment with the interests, it will be beneficial as your borrowing potential will be improved. Moreover, you can also pay back the amount of principle when you want.

          Following the properties investment tips is highly preferred as the loss in this case is major and sometimes, unrepairable.

          Base Rates Reduced By SBI While Keeping MCLR Untouched

          SBI Base rate cut
          In order to provide a great advantage to its old and reliable customers, state bank of India, India’s largest lender, has reduced its base rate. SBI base rate has been cut sharply to 9.1 percent from the 15 basis points.

          As SBI cuts base rate, the new base rate is active from the 1st of April, 2017.

          As per the estimates, of the total number floating rate loans, 30-40% of them are associated to MCLR (Marginal Cost of Lending Rate) system. The remaining are still associated with the SBI base rate. If we look till the September quarter, 15% of home loan of SBI was connected to the SBI MCLR. On the other hand, 40% of the overall book of loan is connected to the new SBI MCLR system.

          The marginal cost of lending rate had already been reduced sharply by SBI in January which remained stagnant while SBI cut base rate. The marginal rate remains untouched at 8% and the two-year rate is 8.1%.

          SBI’s overall growth was as follows-
          • Rate of Growth of retail book was at 18% when the December quarter ended.
          • Rate of Growth of home loan book was at 18.32%.
          • Rate of Growth of auto loan book was at 19.9%.

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