]]> Mumbai Lease Market to be Impacted

After the Inflation jumping to 7.57% Mumbai the City of future, a known Financial Hub and the Dream City for many is in for a Rude Shock. The BMC plans to impose Property Tax upto 83.5% on residential properties and 112.5% on Commercial Properties which after rebate of 40 to 60% becomes nearly 30% of your rental income. As per the current news this is payable every 6 months by the property owner.

The BMC has taken 2 decades Old Formula of Accounting for Taxation this time around and the simple logic given so far is that they are going by the book, even if the book is 20 years old. Before coming out with these harassing policies the BMC must look at the General Interest of the public and consult professionals in this regard. This is actually a trigger point which will be responsible for the collapse of the property market in Mumbai as higher taxation, inflation, crumbling infrastructure, spiralling property prices, high interest rates etc. all together will have a Lesser Yield on Investment and property transactions done purely from an Investment perspective will take a big hit due to lesser anticipated returns owing to double taxation. If you sit down to calculate the yield after paying the overall taxes you will be totally dismayed and loose interest in such investments.

Mumbai being the Financial Capital of India, and the fastest growing city in Asia has a lot of inflow of both local Indians and Expatriates who typically come to work in Mumbai for a short span of 2-3 Years and who are always looking for rented accommodation and sign up a Leave and License agreement for any period between 1 to 3 Years generally. With BMC now planning to impose a 3 month rent as tax to the owners per year, the rents will go up by nearly 30% which is totally absurd.

This is an excerpt of a recent article published in the Times of India, which says, “Rentals at many places in the city have gone up by 100% to 200%, and yet we don’t get our share of that profit. Under the BMC Act, it is mandatory on the part of the owner to disclose the rent of their premises, but we have experienced that the taxpayers are averse to declaring the rents. Therefore, this drive will appeal to honest taxpayers to disclose the rent of their premises, which will help us arrive at a fair property tax calculation,’’ said V Radha, joint municipal commissioner.

Why should the BMC be given a share of Profit Firstly, it is the Investors or Property Owners hard earned money and they have the right to make profit and they are paying Income Tax on that? These are policies which are already 3 decades old and based on the old rent system in the good old days etc. Why cannot an Intelligent System be brought in which should be based on keeping all the Taxation both the Licensor and the Licensee are already paying and keeping in mind the present day market and future? The BMC policies are already known to be notorious by taxing year on year even if the property is not rented. There is no rationalisation on the taxation and when the owners hear the word BMC & Property Tax they want to close their doors on any transaction, one of my seasoned property investor once quoted, “God also cannot know the assessment which the BMC will do on your property”. Just yesterday, i was speaking to a Consulate and they have called off a transaction for a residential property as the owners wanted to place the onus of taxation to the Consulate. The Consulate General said, that this kind of irrational taxation will be bad for Mumbai’s reputation as a city as Companies who will want to relocate their expatriates will find it difficult to pay such higher taxation. He added, nowhere in the world taking an apartment on lease is such a task and with such higher prices and taxation it is a problem, they are already thinking of shrinking the size of expatriates in the consulate.

If the BMC spends that money on the Pot Holes improvement, Proper Roads, Pavements, Gardens, Common Amenities for masses I am sure the Owners would happily want to contribute. Look at the way, the city is maintained and with crumbling infrastructure and vision less policies for such a great City the BMC is placing itself into a one - sided High Handed body to only collect money and have proportionately less accountability and contribution to the city’s welfare. Mumbai is already one of the most expensive cities in the world to live in and to place on Record the 7th most filthiest city as well which is Thanks to the BMC. How do you expect people to pay such high rental values to survive after taxing them and what do they get in return back?

Both the Licensor and the Licensee terminate the Leave and License agreements mid-term for whatever reasons, what happens to the Tax then? With higher taxes more and more people will opt out of Mumbai and find out ways and means to circumvent taxes and therefore increase corruption in the already “Cash Rich” BMC.

If BMC has its way, Mumbai Lease Market will crash and the impact will be far greater on the Economy. The BMC and the Government should find out ways and means and take more and more property owners and individuals and Companies renting out properties in confidence before announcing any such policies. It is clearly understood by all concerned here that the BMC is looking for revenue but what it does not realise is that it cannot be done at the cost of Individuals who spend their Hard Earned money to invest in properties only to Lease out for income and they are already paying all sorts of taxes to do so. The annual return on investment on residential properties has already gone to 4% owning to higher property prices in the city. Not each location gets a great rental value and with extra tax liability the government is only looking at closing the doors for the Investors who are looking to invest in real estate. If there are no returns in the property market why should investors look at buying it and in short this will impact the sale of properties from hereon. All the mutual funds, Reits and other real estate related transactions will also be impacted.

In the past 3 Years, the rental values in Mumbai have gone drastically higher ranging from 30% to 200%. Because of a higher rental values, a lot of people started buying their own apartments as the rental values will be nearly 50% of their EMI. Inventories in Mumbai are already building up, there are more and more apartments vacant and a lot of property owners are willing to give 10% to 25% discount on the quoted prices already due to a little slow down in the economy and markets. The scare of huge taxation will also impact this further as none of the Licensor / Licensee will want to be a part of any further hike or taxation. Earlier, the Tussle used to be between the Licensor and the Licensee to get a deal done now both of them will have to unite and sit and find ways to fight out with the BMC.

Highlighted below are the Taxes which both the Licensor and the Licensee pay in any case for renting out properties, besides other expenses like maintaining the properties, painting, polishing, Annual Maintenance Contracts, Furnishings, Paying Vat etc on all house hold goods, Service Taxes on labour etc.

1. Fringe Benefit Tax payable by the Employee in case of a Company Lease – 20%
2. Service Tax – Presently only on Commercial Property – 12.36%
3. Property Tax on Leasing/Licensing (more in commercial property)
4. Stamp Duty and Registration Fees
5. Income Tax
6. Society Outgoings/Non – Occupancy Charges paid by the Owners
7. Municipal Taxes on Property in General

This typically means, that the BMC wants to penalise the Investors who invest in real estate.

Sandeep Sadh
Mumbai Property Exchange

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]]> High Expectations from the Budget This Year

The booming real estate market in India coupled with strong economical growth is truly a success story. The Government should further reform and tighten norms for the real estate sector to protect the interests of the Investors and actual home buyers and NRI’s who are looking to invest in India in a big manner still and also certain reforms need to made to control to ensure low quality housing pricing to appeal to the masses. A lot of proposals by the State and Central Governments are announced every year, but only a few see the light of the day, the Government should have a vision which is long term for the sole benefits of the Housing and Commercial Sector as improper policies in this sector can only reflect negative movement.

With Union Budget round the corner, the Government this year should make its Policies firm and more centric to the Low Cost Housing for the actual consumer and Strict but yet not Stern for the Developers. The Developers and Builders in India have been having a field day with no control over built up and carpet areas, illegal property documents and constructions, possession related issues and many more illegal entanglements. In Mumbai rules and regulations for Re-Development of old buildings and the Slum Rehabilitation should be made more lucrative for Investors and Builders as this is the only way the city can be cleansed.
The Government this year should act in ways wherein the Low Cost Housing and Actual Consumers Interest is protected First and Foremost and a few expectations which one could have from the budgets are as follows:

1. Continuation of Section 80 IB of the Income Tax, this is an act which gives tax relief to the Builders for construction of units which is less than 1000 sq.ft built up in metros and the benefits under this section had come to an end a last year. A lot of builders have created houses under this scheme and consumers are benefited through the mass construction. The only problem here is that while the builder gets the tax relief there is nothing passed on to the consumer and as such it has become, “The Apple of the Eye” for the Builders. A majority of home buyers are unaware of this tax respite which the government had given to the Builders. The Government should continue giving this subsidy to the Builders as this will encourage them to make more middle class and affordable homes and it also will support the 10th Plan estimate of the Government where the shortage of housing units is expected to be in the range of 22.4 Million Sq.ft, This benefit hence, is the need of the hour but with some rider that the benefit is mandatorily passed on to the consumer.

2. Under Section 24 of the Income Tax, the exemption of the interest alone on the Home Loan should go up from the present Rs.1.50 Lacs to at least Rs.3.00 Lacs, this is suggested keeping in mind the average ticket size of the price of the apartment has grown 200% over the past few years. Also, the benefit of tax should be given from the date of booking of the property and not from the possession.

3. TDS Deduction on housing rental income for Individual Home Owners should be brought down from 16.83% to 10% and especially for NRI’s, a Flat Slab of 15% or a Tax Holiday of initial 3 years should be considered on rental income as they have invested in India and this is their only income in India against the property. This will boost in NRI Investment in the country and in the real estate sector as the NRI’s will not look at any other countries like Dubai etc for returns on their Investment. Also this will rationalise the prices of rentals in Mumbai and other Metros and more and more people will be willing to easily begin renting out properties and also the demand and supply situation will improve as more and more incentives are given and passed on to both the licensor and the licensee. A lot of NRI’s lock up their apartments for fear of higher taxation and an upfront deduction of TDS more than 30% and which effects there Rate of Return. Further, a standard deduction of 30% towards maintenance should be improved to 40% for local residents and 50% for NRI houses.

4. Stamp Duty charges should be reduced down to 2.5% from the current 5% as this will bring in more transactions and the revenue will increase for the Government. Since, the value of transactions has gone up the government is in any case being benefited.

5. The government should issue look at the interest given on bonds to be linked to Bank Interest Rates on Fixed Deposits. A lot of property owners still are conservative and prefer to invest their money in Capital Gain bonds and earn living out of the same. This specially is extremely helpful to elderly in ensuring their safety for future and it also has a social impact.

6. The buyers should be allowed to cross purchasing like one should be allowed to invest in Residential Properties from the Sale of Commercial Properties and from the Amounts Received from the Sale of Commercial Properties to Purchase of Residential Properties. Also buyers should be allowed to investment in both Commercial and Residential properties from the proceeds of one single property so that a good portfolio for the property buyers/investors can be built out.

7. Government should take more steps to curb Black Money in the Land Deals, as if a cash transaction begins from the root it will have a cascading effect till the end. A full Cheque Transaction will automatically yield in more money flowing out of Bank Accounts than from hidden lockers.

8. Presently, a lot of builders are not making 1 BHK apartments across the city in Mumbai especially, and special incentive should be given to builders to make 1 BHK apartments less than 400 sq.ft Carpet Area. These smaller and affordable apartments are the life lines for a lot of middle class people who have to be by default in a particular location and because of the non availability they have to go to other locations creating an imbalance.

9. Fringe Benefit Tax for Corporate Employees for renting out properties should be reduced from the Current 20% to 5% as the Corporate Employees and Executives in any case have an option to get into an Individual lease without paying FBT. If the taxes are not heavy people will happily pay them and especially corporate incomes are transparent and hence they should be given incentive which is well deserved.

10. Individuals, Companies, Employees of Multi National Companies should be given 100% tax exemption for the rent paid towards taking the House on Leave and License/Lease basis. This will help people take a decision to lease the properties and avail tax benefits if they cannot afford to buy the properties. This will encourage people to opt for leasing more and more which in turn will help curb migration.

11. Owners renting out their properties for a minimum lock period from both sides for 3 years with no right of termination to either parties and built in fixed escalations should be given Tax incentive, as with this people will start getting into the habit of at least changing their houses once in 3 years.

12. FSI should be increased within city limits with immediate effect to bring down real estate prices and builders should be strictly made to create the required infrastructure to meet the demand for water, electricity, parking and sewage system by using innovative and latest methods available.

13. CRZ should be further rationalized as a lot of prime properties are stuck because of this and because of the basic character available on the Sea Front, these properties become premium and because of the shortage it is becoming more expensive.

14. Incentive in the form of Higher FSI should be given to Builders looking who are looking to Re-Develop Housing Societies, As by merely paying higher prices for re-development the prices of real estate are only sky rocketing and unaffordable.

15. Buyers who buy real estate should be allowed to Exit/Sell after a span of 2 years with a lesser tax slab so that it becomes easier for them to exit and this way the black money can also be curbed. Artificial shortage of property is created and prices are hiked because of the Sellers inability to sell within a short span and pay higher tax.

16. Real Estate Brokers/Agents should be given proper Licensing to practice real estate business and by doing so that there will be a decline of unscrupulous transactions and there will be a sense of transparent transactions.

17. Benefits to be given to developers who adopt Area Management Schemes in and around their complexes for beautification and development of the area and keeping the location neat and clean.

18. Ratings to Property Developers to be made mandatory by Government and a Regulatory body should in Real Estate to keep a vigil on the activities of builders who create smaller dwellings of less than 100 units a year.

19. Code of Ethics for the real estate developers and agents to be formed for a better future and professional services.

20. Property Taxes to be rationalized all across for leasing both residential and commercial properties.

21. IT and ITes benefits with regards to STPI to continue but with lesser red tape.

22. Commercial and Retail Premises given to Banks/ATM’s should be exempted from Property Tax as they are given for longer periods of time and lesser escalations in the license fees.

Construction activity is a Big Economy Driver and any positive step towards the interest and welfare of the small consumer shall have a Macro impact overall on the Economy. We require Policy Changes which will further strengthen and fortify the Growth of the Economy in the coming year and with the able leadership of our Prime Minister Dr. Manmohan Singh, we shall hopefully see a “New Awakening in the Government” and it’s Far and Deep Sight in understanding and implementing policies this budget.

Sandeep Sadh
CEO – Mumbai Property Exchange.com

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]]> Has the increase in profits in the Stock Markets has lead to the prices what they are today? As people who have made easy money in the stock markets over the past few years, are easily able to buy properties offered to them at what ever prices prevalent without contesting and thus the markets have reached this level.

Please send your reviews in this regard.

Thanks
Sandeep Sadh

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]]> We invite reviews from our clients, members and visitors to our website as to what they feel about the proeprty market in 2008. Please feel free to voice your concerns in regards to infrastructure, and if the markets will be flat in 2008 or if the pace of rate increases will be the same as what it was in 2006-7.

Look forward to receiving your views so that others can also benefit.

Regards,

Sandeep Sadh
CEO,
Mumbai Property Exchange.com
ssadh@mumbaipropertyexchange.com

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]]> The Maharashtra Government finally has decided to scrap the ULC and after a few years we have seen demonstration of Political Will despite the opposition from the Shiv Sena which has been voicing frail concerns and not being practical about the matter.

Out of the 52 Clearances required by a Builder Finally the auspicious figure of 51 Remain and i guess, to bring them down further is a battle of sorts as our Government still does not have a vision and what they can do to make this City better then what it is today.

Many are thinking with ULC gone, there will be supply in abundance of at least the land and with Newspaper Headlines of 17000 Acres etc. to be freed, it will be intersting to see how much really comes out in the open market for sale and how soon.

The markets may be gripped for the next few weeks with this Hot News but there is more than this will be happening in Real Life. People if they go to buy homes in builder offices today will not get any reduction, re-sale prices will not come down, besides speculation and heavy head lines and enough footage on the small screens of NDTV, CNBC etc. will be eaten up by Builders and Industry Experts.

One must understand Ground Realties before taking into consideration the impact of this decision which will be more felt in further suburbs, outside Mumbai and 2 tier and 3 tier cities. Also, a lot of land is still under forced or framed litigation which needs to come out and it will be interesting once again to see a sudden eruption of a new plot of land from the centre of the city which was long hidden.

Buyers looking to buy property today should not worry much as if you need a home today, you need it now, you cannot wait endlessly to see what transpires hereinafter.

The markets may temporarily stabilise as it was already due to post the Diwali Frenzy and the Builders have already escalated rates all across Mumbai, Thane and Navi Mumbai.

I guess, the only respite here is that the flat buyers may not have to do multiple agreements for projects which required the mandatory ULC rules applicable.

Sandeep Sadh
CEO
Mumbai Property Exchange.com

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]]> I saw this interesting piece on line, we are definitely going the US way and very soon we will be all in the clutches of Electronic Debts...

I invite comments on this from our viewers....Rgds Sandeep Sadh

NEW DELHI: Indians seem to be living way beyond their means. An extensive survey has found that more and more households seem to be borrowing not for creating assets like building a house or buying a car, but to meet consumption needs ranging from food, transport and medical bills to even repaying loans.

Consumers using credit facilities, probably credit cards, for purchasing fuel and renovating their houses constitute the biggest chunk of the borrowings, a soon-to-be released survey by National Council for Applied Economic Research and Max New York Life Insurance said.

The findings confirm the trend towards urban India's transformation into a consumerist society with diminished stigma associated with debt. Thus, while housing loan business may be big in terms of value but in terms of number of loans, it is still the odd renovation expenditure or a loan to buy jewellery at the time of a weddings that dominates.

Also, while banks may be pestering you with calls offering a variety of loans, many urban households don't mind tapping the much-maligned moneylender or friends and relatives to borrow for meeting routine expenses.

Though only 7.2% of urban households borrow from moneylenders, compared to nearly 21% in rural areas, the figure is significant because of the widening institutionalised credit bouquet. Then again, one-third of city borrowers who approach moneylenders do so for meeting routine expenses, the Indian Financial Protection Survey which visited 63,000 households said. In villages the number is a little lower at 25%.
For Indian households, food makes up over half the household budget, followed by transport (10%) and education (7%). Urban households spend 45% of their income on food while the figure for rural households is 55%.
Surprisingly, spending patterns in urban and rural India are more or less similar, with education being the only major point of difference.

Even the spend on durables in rural areas, in what marks good news for white goods companies, has caught up with the pattern in cities. Though 7% of the household spending is on education, only 1.5% of the families have borrowed to finance education. For this purpose, banks, with a share of 19%, are the most important source.

In rural areas, 36% of the households borrowed from friends and relatives to meet education-related expenses.

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]]> I am inviting all our Members to write their Comments and Views on the increasing prices in Mumbai and how they feel about investments and Mumbai as a city on the whole for their future from the perspective of growth, quality of life, living with traffic, pollution etc.

Sandeep Sadh

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]]> Against the backdrop of rising property prices & interest rates, borrowers need to be aware of the tax breaks offered by home loans. Tax breaks can be availed on both components of the loan installment — principal and interest.

Tax benefits, in respect of repayment of the principal amount and interest payments, are provided under Sections 80C and 24 of the Income tax Act, 1961, respectively. For claiming a deduction of the principal amount, the loan can be taken for purchase or construction of the house property and from specified lenders, such as central or state government or any bank (including a cooperative bank).

Further, deduction for interest can be claimed not only for loans taken for purchase or construction of house property, but also for repair, renewal or reconstruction of the existing house property.

Let us illustrate. Sanjay Bhatt takes a bank loan of Rs 20lakh for construction of residential house property (to be used for self-occupation) on September 1, 2006. For the sake of simplicity, let us assume that he is required to repay this loan in monthly installments of Rs 25,000 (comprising Rs 15,000 of principal amount and Rs 10,000 of interest) over a period of 10 years. The construction of the property is to be completed on September 30, 2009.

PRINCIPAL
The borrower can claim a deduction of the principal sum and stamp duty, registration fee and other specified expenses incurred for the purpose of transfer of the house property to him. The deduction can be availed starting from the financial year in which the house property is purchased or the construction thereof is completed up to a maximum limit of Rs 1,00,000 per year.

Therefore, from financial year 2009-10 onwards, Mr Sen can claim deduction for the actual principal payment or Rs 1,00,000 per year, whichever is lower.

INTEREST
The borrower can also claim a deduction for the interest due on the housing loan, starting from the financial year in which the purchase or construction or the repair, renovation etc take place.
In case of self-occupied property, the borrower can claim interest up to Rs 1,50,000 per year on loan taken on or after April 1, 1999, for acquisition or construction of the property, provided the acquisition or construction is completed within three years from the end of the financial year in which the loan was taken. For loans taken before April 1, 1999, the deduction is Rs 30,000 per year.

In case of let out property, the borrower can claim interest on actual basis, as no maximum limit is prescribed. Further, interest incurred for the pre-acquisition or pre-construction period, can be claimed equally over a period of five financial years, starting from the year in which the property is acquired or construction is completed. However, the total interest deduction cannot exceed Rs 1,50,000 a year.

In Mr Bhat's case, deduction for the interest of Rs 1,20,000 a year can be claimed from FY10 onwards. The interest for the pre-construction period (November 1, 2006 to March 31, 2009) being Rs 2,90,000 (ie, Rs 10,000 per month x 29 months) can be claimed as a deduction in five equal instalments of Rs 58,000 per year from financial year 2009-10 onwards, subject to aggregate limit of Rs 1,50,000 a year.

HOW TO CLAIM
The above deductions can be claimed by the borrower on the basis of a certificate issued by the lending institution stating the principal amount paid and the interest amount due for that particular financial year.

OTHER ASPECTS
A few other points which a borrower should keep in mind in the context of tax benefits are as follows:

Sale of property: If the house property is sold before five years from the end of the financial year, in which possession of such property is obtained, the deduction allowable for principal amount will no longer be available and deduction allowed in earlier years for the principal sums will be considered as the borrower’s income of the financial year in which the property is sold.
Pre-payment of loan: In case of complete or partial pre-payment of loan, the above provisions would continue to apply up to the year the loan is alive. Once the loan is entirely paid, no tax benefits can be claimed in subsequent years.

Property under construction: Principal amount repaid before construction is not eligible for deduction. However, pre-construction interest can be claimed in the period after completion of construction.

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]]> While there are still a few days left for the auspicious season and festivities to begin, it might be a good idea to begin doing your Home Work now and be prepared for buying your Home or an Investment as the Capital Values have escalated and you cannot afford to take a risk with your hard earned money. While the prices have become expensive, the laws, legal compliances and clearances for making a building have also become a bit stringent and real estate being lucrative, it has brought in a lot of new single or multiple building developers who are constructing and developing. While they are all there to make a mark in the market, it is essential that you should know some basics as well. Before you set out, here are a few simple recommendations which may be helpful while you are planning to buy the proposed investment or home.


Ø Choosing a Location – Each individual usually understands which location is most suitable for him and he has to further decide based on his family needs and of course “Budgets”, seeing today’s market conditions. It is important that you look at a location in regards to connectivity from Main roads, Highways, Railways Stations, Schools, Hospitals, Markets, Your Office and last but not the least, malls and entertainment hubs which have also carved a niche in our lives in recent years. Any property in a location which is far and wide may be a bit cheaper but with a potential of future development in the area, it can become a good investment but for present, if the property is ready possession you may have to go through some inconvenience which is worth the wait at times. Do not compromise on safety and security elements while buying a home for the family. “Connectivity” is the Buzz word in property and fortunes change with the same and understand the impact of Infrastructure Development happening in your neighbourhood.

Ø Price Analysis – In the past 2-3 years, prices in most of the locations have become double or in certain locations the prices have jumped beyond that, hence you need to understand the prevailing prices of projects in these locations and usually each location has multiple projects rating from a Top of the Line Developer to an average developer and the price difference can be as much as 30% or above. So before you set sail, please check on the internet or local papers about the prices and the proposed developments in the area. Visit the offices of these developers with your trusted and experienced real estate agents or if you are visiting directly, don’t be hesitant to ask straight questions on prices and negotiations. Most of the Builders negotiate today marginally and it is only when you are serious about the property and your cheque book is on the table things start looking a bit different. A lot of Builders today give you cost sheets which tells you the Down Payment, Total Value, Incidental Expenses, Car Parking Charges, Stamp Duty and Registration values, time frame to pay the balance amounts and details on slab payments etc. All these are pretty important for you to consider at the time of booking the property as you are committing here.

Ø Bank Loan – Bank Loans have become expensive these days but they still remain the integral portion of your funds to buy the dream home. It is essential for you to be pre-qualified and have a personal eligibility sanction letter with you., This letter will highlight that you are entitled to a loan of X amount and your monthly EMI will be Rs. X for X no. of Years. If you are equipped with this letter, you will have no problems in buying any property as you will know both the Disbursement Values and the Monthly EMI you need to pay and based on both these figures you can take a calculated decision. Getting a Sanction letter is a process of nearly more than a week, so if you are not pre-approved, I would recommend that you should contact your Bankers or Housing Finance Companies. This letter can be used as a negotiation tool with a few builders as well, as they will be happy to have a client whose half home work is done and ready.

Ø Property Papers – Usually, with renowned builders you do not face legal problems, but you need to watch out here, you cannot be swayed by a fancy looking property with a defective title or certain clearances which are of importance are missing at the time of purchase. You would require to look at a document called a “CC – Commencement Certificate”. This permission is given by the BMC to the Builders to construct the proposed building. There are many more documents like Title Deeds, Conveyance of the land in favour of the Builders, Title Certificate from a Lawyer, but a lot of Builders may not be open to show you these papers directly at the time of enquiry, however, they will show you these papers if you require, if you are buying the property. But then if you cannot understand them, you will have to hire a professional lawyer to review them for you, which means both time and money. The easiest way out is to go for a home loan and a lot of Banks and there DSA (Direct Selling Agents) have tie ups with the Builder Offices to give Home Loans and hence it is in your interest to take up a Home Loan. If you do not want to take 80% of the property value, you can just take a lower amount and be more secure and thus have a third party interest created here. This way at least that you will be doubly sure that your property papers are in order even though your builder did not give you many documents or you do not understand this much the Bank would by default have done the homework.

Ø Construction and Planning – It may be of help that at the time of buying a home and especially if it is an under construction property, see and feel the quality of the walls, brickwork, finishing, tiling, plumbing and light fittings. This might give you an idea of shape of things to come. Study the plan and the layout of the property well and see the carpet area. In Mumbai, the wind usually comes from South West and West and any westerly flat will give you more light and breeze. However, ignore this if you are getting a better view in another direction and if you are not fussy about Vastu and the entry and exit directions. Watch out for the buildings around, ideally go to Google Earth and pinpoint the location and see an aerial view of the property which will give you a sense of surroundings more and envisage the view from your short listed property. See the Sample Flat and ask questions as to what comes with the apartment and what does not.



I am sure, keeping in mind these few parameters; you will successfully be able to locate your dream home. Best of Luck!!!



Sandeep Sadh
Mumbai Property Exchange.com


ssadh@mumbaipropertyexchange.com

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]]> With the Stock Market Raging and bringing this festive season with Cheer, the property market will not be left behind. There is immense liquidity in the market and for property buyers who have exposure to the stock market there is no dearth of money and they are willing to buy quality homes. Of course, there will be a wait and watch strategic move to see how much money can be still made in the stock market, which may effect the real estate sales so to say, but the builders on other hand are likely to increase the prices keeping in mind the proposed investment in real estate.

Sandeep Sadh

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