Property tax to be levied on vacant plots now Assetventures

LUDHIANA: The local bodies department has started its exercise to levy property tax on city residents, for which officers of the local bodies department held a meeting with their counterparts in municipal corporation (MC) on Monday.

In the meeting that was presided over by additional commissioner Kanwalpreet Kaur Brar and attended by officers of the house tax branch and department representative BR Gupta, a proposal regarding a transparent system under which residents could assess the tax on their property themselves was mulled over.

Talking to TOI, Gupta said the purpose of the meeting was to evolve a strategy for implementation of the tax in a transparent way. The department proposed that the tax would be levied on self-assessment basis under which the person who has to pay the tax would assess his property and himself turn up to the civic authorities on a monthly or annual basis to pay the tax. If he fails to do so, he could be charged 11 times more than the tax.

Sources revealed that the department is considering the idea to levy tax in the state on the lines of that in Ahmedabad, Delhi and Jaipur. According to this pattern, the state would levy tax on plots and constructed houses in the cities on the basis of cost of its construction and that of the land.

Meanwhile, Gupta also asked the civic body officers to give the figure regarding tax collected in the last and present financial years from rented commercial properties. This move was taken to understand feasibility of any new taxes to be levied.

At present, though the state has levied 15% of annual rental value (AVR) on the buildings used for commercial purposes, it is not charging any tax on vacant plots.

Festive season, low loan rates... real estate sector scales north in tricity assetventures

Chandigarh As global economy shows signs of recovery, reasonable investment has been registered in the sector
With the festive season approaching and signs of global economic recovery visible, real estate business has picked up in the tricity.

Though it will take a few months to revive the sentiment, experts say, reasonable investment has recently been registered in the sector.

While the developers are offering festive discounts and schemes to clear the inventory, banks are also offering discounts on home loans.

“I was keeping a tab on projects in the tricity for over a year. Considering this the opportune time to invest in property, I have invested around Rs 50 lakh for a three-bedroom flat in Mohali,”Ankit Saini, a resident of Chandigarh, who works in Merchant Navy.

“I could also negotiate a discount of Rs 4 lakh on the apartment,” he added.

While banks are attracting the customers with lowered interest rates and no procession fee for a limited period on home loans, buyers are eager to cash in as rates are expected to increase by January-March.

To make the most of changing sentiments of buyers, developers are offering extra amenities in flats, lucky draw prizes and discounts to the early birds.

“Free parking and cupboards that amount to Rs 50,000 are offered to buyers who make purchase during navrataras. A lucky draw will also be conducted to offer full furnishing for flats,” said R S Bhullar, Vice president ATS Infrastructure Limited.

He claimed that the residential project in Dera Bassi had marked a sale of 30 units in three months. Real estate consultants said once the buyer started making the transactions, the investors responded.

“The real estate sector is recovering in the region. With the festive season starting from Saturday, the trend is expected to go up,” said Rajesh Kalra, a property consultant.

DLF revives commercial plans

DLF revives commercial plans


DLF, India's biggest real estate company, seems to have forgotten its recent troubles. With some funding available to it, it has now decided to stay in some of the business that it had considered peripheral -- hospitality included.
DLF is gearing up for a second innings in the commercial space, thanks to an eased liquidity situation that has pumped some confidence in the real estate sector.
The company has now revived its commercial projects, which were on hold for the last one year or so.

NDTV learnt from sources that DLF's commercial expansion will be mainly centered around hospitality and retail, with an investment
of Rs 4,000 crore to be funded through long term debt. Stake sale, if any, would be at project specific only.
The company will initially focus on Delhi and plans to launch about 3 hotels and 7 malls in Delhi over the next couple of quarters.
An office project is in the offing in West Delhi, adjacent to its proposed housing complex at Swatantra Bharat Mills.

Anshuman Magazine, chairman of CBRE India, said, “The rental market has shown some recovery in the last few months. Things have somewhat started to look up. The country's largest realtor earmarking expansion plans in the commercial space will further help boost sentiment.”
Experts opine that DLF's approach seems to be much more subdued this time on. So, instead of the mega plans of 25,000 keys by 2010, it is now talking about a mere 350 keys across 3 properties in Delhi.

D K Agarwal, MD of SMC Global, said, “We will still be more cautious on our outlook for commercial and hospitality. The past experience has not been very positive.”

Although DLF has decided to revisit commercial projects, the company insiders say that residential projects, mainly affordable housing will continue to be the key growth driver, at least for the next few quarters.

Investors may have lost one-third investment in real estate

Investors may have lost one-third investment in real estate

"We are seeing some variations of teaser type housing loans being offered. The lure of low interest rate at the start of taking a housing loan is enticing. But are customers being made aware of future implications," he asked.

Parekh noted that the genesis of the US housing crisis lay in loans that offered artificially low interest rates in the initial years but once the rate normalised, many found themselves unable to service the loan. These are the lessons one should learn from, he said.

However, the HDFC Chairman pointed out the same disturbing trend being seen in India where some variation of teaser type housing loans are being offered in the market. "Are these lending institutions providing "what if" scenarios to their customers, he asked.

Court asks neighbour to pay for property damage

If you are aggrieved at the damage to your property by your neighbour’s reckless constructions, then a recent court ruling holds out hope.

“It pays to be a good neighbour,” Additional District Judge (ADJ) Kamini Lau ruled some days ago, before awarding a compensation of Rs 2 lakh to complainant H N Kukreja. Kukreja had hauled to court his neighbour at Lajpat Nagar’s B-block, Uma Dhawan, and her builder Vishal Chopra, arguing that the renovation carried out at Dhawan’s home had spoilt the walls and woodwork in his basement.

The order stated: “It pays to be a good neighbour and conversely a person oblivious and unconcerned about the life and property of his immediate neighbour can be made to compensate.”

The judgment also sounded a note of caution on the irresponsible and break-neck manner in which constructions march on these days, and said a neighbour cannot escape duty towards adjoining houses.

Kukreja claimed the slipshod work next door had severely damaged his basement floor. The walls were damp, the plaster was peeling at places, the floor had developed cracks, and the doors and windows were damaged, Kukreja said in his petition.

Challenging it, Dhawan and Chopra denied the remodelling had harmed the neighbour’s property.

In their defence, they also argued that Kukreja had illegally constructed certain structures in the basement. However, a report by an executive engineer on Kukreja’s property disproved Dhawan’s claims, prompting the court to dismiss the argument.

ADJ Lau said: “In civilised society, every person owes a duty of exercising due care and caution towards the life and property of his neighbour. He is under an obligation to ensure that his individual right to enjoy his own property does not come into conflict with a similar right of his neighbour to enjoy his property as well.”

The court then asked Dhawan and Chopra to equally share the monetary penalty of Rs 2 lakh and pay it as damages to Kukreja so that he could repair his house.

Punjab Govt announces slew of incentives for Real Estate sector

CHANDIGARH: Keeping in view the slowdown and recession in economy, the Punjab government has come out with an economic stimulus package to give boost to affordable housing and real estate sector.
Disclosing this here Thursday a spokesman of the Punjab government said that the Confederations of Real Estate Developers Association of India (CREDAI) and National Real Estate Development Council (NARDECO) had recently submitted a memorandum to the Punjab Chief Minister Parkash Singh Badal and Deputy Chief Minister Sukhbir Singh Badal separately urging them to immediately announce some incentives/concessions to real estate developers in order to put the real sectoral growth back on the track on one hand and to encourage group housing for weaker sections on the other.
The spokesman further said that the stimulus package included waiver of Change in Land Use (CLU) charges for industrial land use in entire Punjab, moratorium on payment of External Development Charges till December 31, 2009 and promoters who make prepayment of EDC installments would be entitled for discount of 5%. Reduction in penal interest on over due charges from 18% per annum to 3% per annum over and above the normal interest @10% compound per annum w.e.f. September 19, 2007. Wherever Zonal/Sector Plan have been notified, the minimum area for developing a colony would be 25 acres. In low potential zone, the minimum area for residential colony would be reduced from 25 acres to 10 acres. However, no minimum area norm would apply in case of the left over pocket, i.e. where on all the sides construction had already been taken place.
The spokesman further mentioned that to promote affordable housing, it was also decided that in the earmarked industrial land use zones in the master plans across Punjab, the affordable housing as envisaged under JNNURM mission of Government of India shall be permissible and it was decided to waive CLU charges, External Development Charges and license fee/permission fee for financially weaker section houses. Stamp duty / Registration fee / Social Security cess on purchase of land for such houses would also be exempted.
The stimulus package further stipulated if any promoter creates any infrastructure with prior permission of concerned Urban Development Authority outside his project that falls within the definition of external development and then he would be given credit at PWD rates. Phasing in the super mega projects has also been allowed as already permitted in other projects.
In case of Group Housing Projects outside GMADA (Greater Mohali Area Development Authority) area, the minimum area for projects would now have been reduced from 10 acres to 5 acres. In case of housing for financial weaker sections, as notified in the policy of Local Government in November, 2008, this minimum area would be 2.5 acres.
It was also decided that in case of commercial pockets within municipal committee/ Corporation limits (excluding GMADA), the norms for minimum area would be the same as notified by the Department of Local Government. However outside municipal committee/ Corporation limit (excluding GMADA region), the minimum area norms would be reduced from 2 acres to 1000 sq. meters. Such plots must have a front of at least 20 meters.
The state government also decided that in case of parking for commercial projects, having no multiplexes, the minimum parking norms would be 2 ECS/100 sq. meters area. In case of commercial projects having multiplexes/ cinemas/ theatres, the minimum parking required would be 3 ECS/100 sq meters of covered area in respect of multiplexes/ cinemas/theatres component + 30% of total covered area of that component and 2 ECS/100 sq meters of covered area in respect of the balance commercial component + circulation area. Parking norms within Municipal Committee limits shall be the same as notified by the Department of Local Government. Similarly parking norms in case of group housing shall be reduced to 1.5 ECS/ 100 Sq meters from existing 2.0 ECS / 100 Sq meters.
In case of any excess payment paid by any promoter to any Urban Development Authority, the authority would pay interest to the developer at the rate fixed by State Bank of India for Fixed Deposit of 180 days, as on 1st April of that financial year, the spokesman added.