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With RERA since 70% of the home loan receivables have to be deposited, the 20:80 scheme may become unviable

Saturday 27th May 2017

Under the 20: 80 scheme, the promoters used to take up the obligation to pay interest in relation to the entire disbursement under the home loan up to the home possession date or any other specified date. Also, the home loan lenders used to make the entire disbursement of the loan on day one by paying the money to the builders. The builders further utilised the same to reduce the existing debt in the project. Now, since the builder is obligated to deposit the 70% of such receivables, the entire calculation has to be revisited, hence this may not be a lucrative proposition for promoters in all projects. ...

Loan approvals not to be given if the builder is out of sync with RERA

Saturday 27th May 2017

State Bank of India has given a checklist to loan processing officers to ensure that loan approvals are given only to projects that comply with the Act. The checklist includes points like ensuring the project is registered with RERA, whether the promoter has legal title to the land on which development is proposed, if the project land is free from all encumbrances, layout plans and specifications as approved by appropriate authorities, etc. The State Bank of India has issued a circular to this effect and other banks are expected to follow suit. ...

Office properties constitute 59% of the total investments made across the country in the first quarter.

Tuesday 23rd May 2017

The office space is expected to see more interest from investors in the coming years. By the end of the year, the sector expects to see at least 2 -3 large portfolio level deals that would be further pushing the total private equity real estate funding into office market. These can be seen as signs of maturity of the market and a commitment of the funds for a long term partnership with developers. ...

In FY18, the government aims to construct 12 lakh houses under PMAY scheme.

Tuesday 23rd May 2017

As per officials, so far the proposal for construction of 18.76 lakhs houses have been sanctioned, and funding for construction of 13.06 lakh houses has been issued. The delay in land acquisition is the prime reason behind the slow implementation of the government's flagship scheme PMAY (Urban). In fact, due to delay in land acquisition, only 1.49 lakh houses have been completed under PMAY (Urban) in 2016-17. ...

Once GST kicks in, prices of flats may drop by up to 5%.

Tuesday 23rd May 2017

Industry experts say that for normal houses (up to Rs 6,000 per sq ft), 12% GST on a finished house or an apartment will be effectively reduced to near zero as the developer will take the credit for taxes he paid on inputs. At the same time, the buyer will not have to pay the service tax 4.5% of the price of the house. This will reduce the cost of acquisition of the house. ...

Is registration of projects a double-edged sword under RERA?

Monday 22nd May 2017

The second chapter of the RERA that focuses on the registration of a project and agents can greatly determine its future or backfire. If the provisions regarding registrations of projects are not implemented properly it can backfire. A lot would depend on the speed with which state governments set up the infrastructure as then only the people chosen to run RERA would have a significant say in its success. ...

DLF Homes to pay Rs 22.3 lakh to 13 Panchkula flat buyers as per consumer forum orders

Monday 22nd May 2017

The State Consumer Disputes Redressal Forum has said that since the realtor failed to complete construction and deliver possession within the stipulated period and extended one-year period, it is responsible for delays and deficiency in service and their appeal for allowing them escalation cost of construction as well as land holding amounts to seeking an amendment of the terms and conditions of the agreement stands rejected. ...

RERA should also help with a roadmap mechanism for completion of stuck projects.

Monday 22nd May 2017

RERA provides for penal action against the developer for non-compliance and compensation to home buyers in case of delay in delivery. However, the mechanism for completion of stuck projects needs to be spelled out. The roadmap for buyers stuck in delayed projects where developers are ready to face the strictest punishment of imprisonment is not clear. Experts say that the government should identify such projects quickly and start an investigation. ...

On RERA fear, Independent Directors are resigning

Sunday 21st May 2017

There is fear among the independent directors of real estate firms because under RERA independent directors can be held accountable in case a company fails to comply with the new regulations of RERA. The Indian real estate sector has a long history of delayed projects, poor quality and illegal construction. And India has a history that 30% of the projects get delayed. RERA with its new regulations is going to be very tough and developers will have to be equally tough and disciplined. ...

With RERA since 70% of the home loan receivables have to be deposited, the 20:80 scheme may become unviable

Loan approvals not to be given if the builder is out of sync with RERA

Office properties constitute 59% of the total investments made across the country in the first quarter.

In FY18, the government aims to construct 12 lakh houses under PMAY scheme.

Once GST kicks in, prices of flats may drop by up to 5%.

Is registration of projects a double-edged sword under RERA?

DLF Homes to pay Rs 22.3 lakh to 13 Panchkula flat buyers as per consumer forum orders

RERA should also help with a roadmap mechanism for completion of stuck projects.

On RERA fear, Independent Directors are resigning

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