1 BHK or 2 BHK? Which one is best suited for you?

Real Estate Scenario in Nashik

As the urban lifestyle and pace evolve, our choices and approach to everyday life also keep evolving. One of the best examples of this is the concept of a nuclear family and the way they function and keep up with the changing pace of life. Many people are perplexed when it comes to deciding whether to buy a 1 BHK Flats in Thane or 2 BHK Flats in Thane. The 1 BHK vs. 2 BHK unit dispute is typical among budget-conscious homeowners, particularly first-time buyers looking for a small family home or a bachelor pad. However, deciding between the two possibilities will be difficult. You’ll have to think about things like property pricing, location, builder, and space, among other things.
Making plans for the future

A 1 BHK may appear to be the right balance of cost and coziness as a beginning house. Buying a house, on the other hand, is a long-term investment. You may believe that a 1 BHK apartment is sufficient, but if you wish to grow your family, it may become crowded as time passes. A 2 BHK flat, on the other hand, provides adequate space for a nuclear family to live comfortably.
The size of your family is one of the most important factors to consider while selecting the appropriate flat size. For a family of more than five people, a two-bedroom apartment may not be the best option.
People nowadays are opting for a three-bedroom flat if their family consists of three individuals and they have a sufficient budget for the three-bedroom flat. Even if your household is only two people, but you have frequent and recurring visitors, you will require an extra room. In this instance, the best option is a two-bedroom house.

Supply and demand

A two-bedroom apartment is great if you’re a bachelor or have a small family. Because the demand for 2 BHK homes is usually higher, builders give special attention to the design and construction of these homes.

As a result, 2-BHK homes have more facilities and design alternatives. As a result, you will typically find a larger and higher-quality 2 BHK property than its 1 BHK equivalents.
Also, due to the great demand for 2 BHK properties, it will be easier to sell if you are acquiring a home only for investment purposes.

Budget

It’s no secret that the Indian real estate market is price-sensitive. Almost every buying decision is influenced by the cost. If you have a small family or live with your parents, a two-bedroom apartment is a better alternative to satisfy your space needs.

The most crucial consideration in determining the best house for you is your budget. According to research, a 2 BHK flat is cheaper than a 1 BHK flat in terms of the space ratio and the money.
The pandemic has been one of the most significant factors in recent times.If you have not been financially affected by the pandemic, then opting for a 2-BHK would be ideal. If your budget is limited because of pandemic concerns, then 1 BHK flat is the best option.

As a result, if you take out a home loan to purchase the property, you may still afford a large apartment while still fulfilling your other monthly responsibilities.

Costs of upkeep

Maintenance is one of the most important considerations when determining the appropriate size for your dream home. In terms of absolute costs, 1 BHK flats are less expensive to maintain than 2 BHK flats. 1 BHK flat is the best option for you if you want to acquire a property that is low on maintenance. Furthermore, by paying a higher maintenance cost, you obtain a larger carpet surface, which is a sensible investment decision.

To summarise, you can choose a 1 BHK to be your new beginning or a 2 BHK to be your space saver.

1 BHK – Your new beginning

  • Ideal for a newly wed pair
  • Perfect for first time buyers with limited budget
  • Good investment option for first time buyers

2 BHK – Your space saver

  • Suitable for a growing family
  • More space enhances the elegance and allows to host family and friends
  • Offers plenty of space and a high return on investment

When purchasing a home, you can now select between the two alternatives. Ashar Group offers thoughtfully designed 1 & 2 BHK apartments to match and suffice your needs, taking into account both sides.
So, choose the right one and reserve your ideal property right now! Take a look at these fantastic homes offered by Ashar Group in Thane and MMR.

Renovating? Here’s how you can avoid the most common errors!

Real Estate Scenario in Nashik

As exciting as the prospects of renovating your space sound, it needs to be treated with equal caution. Whether it’s a DIY project for your new bedroom space or you are hiring a professional service, it is integral to move forward with utmost care and precaution. Renovations, in a nutshell, can be the most rewarding investments for life. However, before you take the first step, here are a few measures to take note of:

Budget Allocation

Pick a number that you can actually stick to. Budgeting when remodeling or renovating is highly important. Always have a cushioned budget that allows you to overspend over 15-20% because the end result will always be over the estimate you’ve received.

While in the process of renovating there will be instances when you may opt for pieces that you would want to spend more on. So always keep space to spend extra over your initial estimate.

Prioritizing Appearances

The perfect-looking furniture and paint job is important but what should take first place is ensuring structural fixes. Right from updating electrical systems to waterproofing walls, a healthy internal and external structure go a long way towards a long-lasting renovation job. Never ignore these minute details when finalizing and planning your budget.

The Right Contractor

Pinterest is great, but it is not the right place to turn to when you need expert advice. Having said that, never rush to hire a contractor. Always consult at least three-four contractors, get estimates, ask questions and understand the kind of job your space requires. A good contractor doesn’t easily come by, work towards hiring someone who will make your space beautiful and long-lasting.

Ambiguous Plans

This may sound like a repetitive broken tape, but always make a to-do list! Once the hammer hits it’s difficult to undo that. Before you start working on anything, have a blueprint of what your space truly requires. Do not move into remodeling without a plan as it may lead to spending more and the job half done. Having a well-set plan will always help move faster and cost less.

While these are only some measures that need to be taken into consideration when starting out, there is a lot that has to be considered prior to renovating your space. Bring an expert on board to help you plan. After all, renovations are an investment, one that needs to be carefully managed.

Understanding Property Tax

Real Estate Scenario in Nashik

When we get to a certain age, we tend to buy or invest in some property; if not, then at least our elders might have some. It can be a house, a car, or anything major in value. These are like assets to us as their value is high, and they are tangible. One needs to have a proper understanding of property taxes and at the same time, be updated with the necessary information/changes throughout the year. The tax is calculated depending upon the property you own, and by multiplying the tax rate to the property’s current market value. Tax assessors determine how much tax you are supposed to pay by looking at the amount of property you own. Every country has its way in which the tax is levied upon.

Let's now understand how the property tax is assessed

Diverse property types have different sorts of duties evaluated on the land and its designs. For instance, empty land will have an altogether lower evaluated esteem than an equivalent piece of property that is improved. Accordingly, it will have lower local charges, when there is no development on the land, the charges are different from when there is the development. Also, depending upon the location, the charges are out on the place, and then the tax is levied accordingly. In case there is admittance to public administrations, like sewer, water, and gas, the land appraisal may be higher. If the assessor feels that the land can be created, it could prompt a higher appraisal and more charges for the proprietor. The sum that a property is burdened comes from a level of the surveyed worth of the property.

Here is how property tax is calculated.

Property charges of any space are calculated based on multiple factors such as location, current property rates, etc. This also takes into consideration land as well as the type of property. Property tax is calculated through different methods:

  • Capital Value System – Determined by the market value of the property set by the government
  • Unit Area Value Systems – Determined by the unit price of the built-up area
  • Annual Rental Value System – Determined based on the rental value collected each year

Property tax is not unified across the country, it varies from state to state.

The property charges of any place are determined utilizing the worth of the property depending upon the location and the current real estate rates. This incorporates both the land and the type of construction. Commonly, tax assessors will analyze the property each one to five years and charge the proprietor-of-record the suitable rate keeping the guidelines set by the authority. Assessors ascertain that worth utilizing the plant demand additionally called the millage tax and the evaluated property estimation.

There are also mortgage calculators which are available online, which will help you in determining the tax you will be paying on particular amounts of property, and this is a great way to always keep an estimate about your taxes.

Here are some of the mistakes that you should avoid while paying for taxes:

  1. Always fill your taxes on time. Don’t avoid it
  2. Don’t make calculation errors while filling.
  3. Fill in the right form and enter the right details carefully.
  4. Always be updated with the new tax rules.
  5. Do not mess up the account numbers.

Understanding property taxes is important, and when you know how to do them, you become a responsible citizen and do your part for the economy.

Source: https://www.coverfox.com/personal-finance/tax/property-tax/

Let's now understand how the property tax is assessed

Technology in Real-Estate Industry

With the shift in consumer behaviour and the ever-changing market conditions, the real estate sector is undergoing a gradual upheaval. However, these changes are only enabling this sector to evolve and adapt. One of the most crucial changes in this sector is the adoption of technology. Innovative solutions in the form of software, platforms, and applications are the driving force leading towards growth.

With the initial decade being paramount as a learning curve, phase two for PropTech or Real Estate Technology began in the 2000s. This phase was keen on utilising existing tech to transform it into a new experience. This has also assisted in the disruption of the real estate model.

However, the recent phase in PropTech that is currently dominant is embracing innovative solutions such as Augmented Reality, Virtual Reality, Drones, etc. The access to productivity tools and analytics have paved the way for agents’ increasing efficiency and providing a quality sales experience. One of the major impacts Real Estate technology has had on the industry is identifying quality leads. Lead generation platforms have simplified the search and helped connect with a niche audience. What’s also helping fast-track this is the initiation of AR(Augmented Reality), Virtual Reality, AI(Artificial Intelligence), and much more.

Let’s take a look at the advancements in the industry.

  • Management Softwares – Softwares help agents manage their customers online by ensuring timely reporting, automated reminders, screenings, appointments, etc.
  • Mobile apps – While having a website for your real estate is a hygiene practice, a mobile app also makes a lot of difference. This allows buyers to view all property details easily, can help schedule visiting tours, view VR tours, and with a chatbot, the implementation makes it easier to resolve queries.
  • Virtual Reality – At a time when even high-resolution photos don’t suffice, VR is the new solution. Virtual tours are the most recent technological trend helping millennials buy property from the comfort of their homes. Making use of this technological feature, Ashar Group has successfully conducted multiple virtual tours for their customers during the lockdown.
  • Augmented Reality – AI is transforming the way the real estate industry is conducting business. From utilising chatbots on websites to leveraging automation with CRM systems, the adoption of technology is bringing a new wave of convenience. Data analytics has also significantly impacted this sector which helps harness profitable opportunities for businesses.
  • Big Data – One of the most important changes that have evolved the real estate industry is personalised recommendations. In the current scenario, agents are able to make recommendations based on the wants and needs of buyers. However, big data will emerge with more intelligent recommendations in the near future.

As the COVID pandemic made way for a digital shift, Augmented Reality and Virtual Reality have created opportunities for virtual tours. Providing a realistic reflection of the look and feel of the actual property, these tours have made property buying and selling convenient for all parties.

The real estate sector has traditionally been a largely unorganised space but the evolution of these technological advancements and the disruption has made the sector more approachable for investors, and builders.

Latest Guide to Stamp Duty in Mumbai

Real Estate Scenario in Nashik

The joy of buying a new home is priceless, especially with skyrocketing prices and the demand for real estate increasing by the day. However, as exhilarating as the purchase is, the process is equally daunting. Right from own payments, loans, registration agreements, there are several factors to consider when purchasing a property. Once all of these are swept under the rug and you finally get possession, there stands the requirement for Stamp Duty and Registration under your name.

Don’t get all flustered, we’re going to cover the basics you need to know about charges for Stamp Duty and Registration along with steps on online payment.

The Maharashtra Stamp Act & Stamp Duty in Mumbai

Stamp Duty registration is a tax levied by state governments to property holders inclusive of commercial and residential spaces. The Maharashtra Stamp Duty act passed in 1958 makes it mandatory for all property holders to register their names in local municipal records for legal possession of the property. The current stamp duty on property is charged at a rate of 5% in Mumbai and 6% in the rest of the State. However, W.E.F. March 2021, a special rebate of 1% applies to female owners. Hence, any property transferred in a woman’s name is eligible to pay only 4% stamp duty. This does not apply to joint owners of the property.

Registration charges for properties in Maharashtra are charged at 1% if the value is below Rs. 30 lakhs or it’s charged at Rs. 30,000 for properties exceeding Rs. 30 lakhs.

There are a few factors that also determine payment of Stamp Duty:

  • Commercial and residential property types have different stamp duty rates
  • Market value and area of the property are considered to calculate stamp duty
  • Urban areas are charged a higher stamp duty whereas rural properties are charged lower rates.

Payment of Stamp Duty in Mumbai

To make the process easier for homeowners, payment and registration for Stamp Duty can be done through an online process. With a few simple clicks, one can easily pay through the e-stamp facility.

To make your e-payment, follow the below steps:

  • Visit the Maharashtra Stamp and Registration Department website.
  • The website allows you to either register on the website and pays or even pay without registration. Select ‘Citizen’ under ‘Type of User’, and then click on ‘Make Payment to Register your Document’. The website allows you two options, either you pay only stamp duty or stamp duty and registration fees together.
  • Fill in the necessary details requested such as District, kind of document, property details, etc.
  • Once you have filled in all required details, choose your payment gateway to make the payment online or across any banks via cash/cheque.

Voila! It’s all done! With the simplified online procedure, the government has made the payment of Stamp Duty and Registration hassle-free. A buyer can also request a refund on Stamp Duty under special circumstances such as incomplete documents, unsigned papers, etc.

Source: https://gras.mahakosh.gov.in/igr/frmIndex.php

Your dream home is just a Home-Loan away!

A roof over one’s head is a human being’s necessity. Getting a spacious, safe, equipped and accessible home is a dream. The best way to fulfill this dream, for many, is through a home loan. However, to be eligible for a home loan, one must meet certain requirements.

The eligibility criteria for a home loan is as follows:

  • Age:
    A person availing home loan should be within the age limit from 18-70 years. However, some banks and; institutions offer home loans to salaried, self-employed professionals and businessmen above the age of 23 only.
  • Net-worth:
    You can qualify for a home loan if your monthly income is more than Rs. 25,000. Those within the income bracket of Rs. 25,000-Rs. 40,000 can avail a home loan if their fixed obligation (Rent, EMI) does not exceed 50% of their income. Those with a monthly salary of over Rs. 40,000 can avail a home loan if their fixed obligation does not exceed 65% of their income.
  • CIBIL score
    A good CIBIL score of 650 is required. If you have a CIBIL score lower than 650, you still stand a chance to avail of a home loan by paying a higher interest rate, at a higher margin.
  • Company and Employment history
    You should have a stable income history and/or job continuity of a minimum of 3-5 years. The sector in which you work should not have been blacklisted by the bank. Additionally, some professions such as lawyers, beauticians, police personnel, builders, etc. may be considered negative by some banks.
  • Co-applicants
    Having a co-applicant increase your chances to avail of a home loan, it might
    also fetch you a higher loan amount. The co-applicant should have a share in the property. The list of co-applicants allowed is spouses, parents, siblings, and children.
  • Loan-to-value (LTV) Ratio
    Lenders calculate the LTV ratio using the below formula:
    LTV Ratio (%) is equal to Amount Borrowed divided by Property Value multiplied by 100.
    For example, if you wish to buy a house worth Rs.1 Crore and the LTV ratio of your
    the bank is 70%, then the maximum amount of loan that you can avail of is Rs. 70 lakh.
    The RBI has issued the below guidelines for the LTV ratio:
    For loan amounts of Rs. 30 lakhs and below, the LTV ratio for the loan can go up to 90% of the property, and for loan amounts above Rs. 30 lakhs, the LTV ratio can go up to 80% of the property value. For loan amounts above Rs. 75 lakh, the LTV ratio can go up to 75%. If the LTV ratio is 90%, at least 10% of the property value will have to be paid from your pocket and the rest of the amount can be funded through a home loan.
  • Property Approval and Valuation
    The property against which one wishes to avail a home loan should be legally approved and constructed by a reputed builder. For home loans of higher ticket size (Rs. 1 Crore & above), housing loan lenders prefer getting valuation details from independent valuers.Once a person meets all home loan eligibility requirements, they can easily make
    their dreams come true. It also comes with a series of benefits, some of them include:
    • Investing in Real-Estate is an appreciating asset:
      Property prices in India are slated to appreciate in the longer run. This makes home buying, one of the smartest forms of investment.
    • Home loans are a tax savior:
      As mentioned in the Income Tax Act – Section 24, a maximum deduction of Rs. 2 lakhs can be claimed by homeowners on their home loan interest for a self-occupied property.
      In case the property has been rented out, the tax exemption is Rs. 2 lakhs or actual interest paid by the taxpayer; whichever is lesser.
      Section 80C also gives the provision of a deduction of Rs. 1,50,000 on the Principal amount repaid.
    • Home loans improve credit score:
      Paying off your home loan EMIs on time is a great way to improve your credit score. If you make all your repayments on time and have a good credit score, availing of other loans such as a car or student loan becomes easy.
    • Home loans are a cost-effective way of funding a long-term asset:
      Home loans have the cheapest rate of interest in India as compared to other loans. It’s easy to get a home loan since it is secured against an asset.
    • Pradhan Mantri Awas Yojana (PMAY):
      A Credit Linked Subsidy Scheme (PMAY-CLSS) enables home loan borrowers purchasing or constructing their first pucca house to get subsidies credited into their
      loan account of up to 2.67 lakh.
    • Repay with ease :
      Home Loans let you enjoy longer repayment tenures ranging from 10 years to 30 years. Although, If you can pay higher EMIs, we’d suggest you opt for a shorter tenure Summing it up, you can now easily check your home loan eligibility with the help of a home loan eligibility calculator. More so, in today’s times when everything is available online, you can now avail of a home loan from the comfort of your home,
      with just a click. Happy home buying!

Source : https://www.bajajfinserv.in/home-loan

Real Estate Scenario in Nashik

Real Estate Scenario in Nashik

The skyrocketing prices and demands of real estate in Mumbai and Pune have led investors on the lookout for affordable and higher return destinations to invest in. One of the pocket-friendly destinations worthy of investment is Nashik. The emerging Wine Capital of India is proving as a worthy opponent to many metro cities. Here’s what has led to the rapid demand for this city.

In the past decade, Nashik’s residential market has boomed. With better infrastructure, connectivity, and government projects, Nashik has transformed into an attractive real estate destination.

The expansion of the IT sector and increasing industrialization has given way to many employment opportunities in the city. Along with the newly developed airport, many other government projects are in the pipeline. Due to this rapid infrastructural growth, Nashik is recognized as one of the fastest developing cities in India.

The geo-strategic location of the city is what earns it brownie points as the real deal in investment. Located in western Maharashtra, Nashik is surrounded by Mumbai and Pune making it a triangular corridor. While enjoying the up-gradation of the Mumbai-Nashik highway, and the airport, Nashik has become the hub for many migrants. However, this has not diluted the beauty and peace that prevails in the city. Pleasant climate, green pastures, and scenic beauty pretty much add to the charm of the city and secure the status of an upmarket locality. Endowed with a good quality of life, the city is now the destination for most millennial couples looking to invest in a pandemic friendly home-office.

While having some of the best infrastructural developments made by the government, certain localities add to the charm of the city making them viable for investment. Topping this list is Gangapur Road, with its well-connected roads and popular amenities in the locality. An iconic project in this area is Ashar Grapecity offering 4 BHK luxurious apartments. The project is equipped with state-of-the-art amenities such as a temperature-controlled swimming pool, fully equipped gym, and clubhouse, senior citizen zone topped with marvelous architecture, and unobstructed hill view perfect for leisure. The podium-style layout of the project ensures an elevated lifestyle in one of the most iconic areas in Nashik.

A steady increase in demand for property and the need for a second home have elevated the real estate status of Nashik. A clean and green environment, cultural and historical significance, road connectivity, pleasant climate, and many such factors make Nashik the ideal destination for investors.

So whether it is your first home or a second home for investment, Nashik should be on top of your list. Explore 4 BHK luxurious homes in the most prominent locality of Nashik at Ashar Grapecity.

Trends in Real Estate

Modern Times = Modern Homes

How pandemic has changed the face of the real estate market

The ongoing pandemic has transformed the way real estate is viewed. The once widely-popular corporate spaces now sit empty, while the need for residential spaces have shot up. The reason is enterprises making work-from-home a new way of working. This has pushed the demand for spacious nuclear homes in urban areas with all of your essential amenities, making moving in easy for a working couple.

Embracing and adapting to this change, the real estate world is transforming in many ways:

  1. Small homes, with big hearts

Small homes that are easy to maintain have cropped up in large numbers across cities, and are affordable too. This is due to the rise in the demand for residential properties that made realtors create a new market for small, affordable spaces. The furniture industry also jumped on the bandwagon by creating compact, multi-purpose furniture pieces.

  1. Easy living with smart, equipped homes

Moving into furnished homes, equipped with essentials such as air conditioners, refrigerators & kitchenettes, etc. is essential for today’s homebuyers. This is complemented with smart homes where everything including air conditioners, dishwashers, lights, fans are voice-controlled at the push of a button even when one is away from home.

  1. Fuss-free furniture

Gone are those times where one would move into homes months after purchasing. For today’s fast-moving generation, everything is now or never. This has given rise to a new segment of ready-made, build-it-yourself furniture that is affordable and can be easily modified and installed, without assistance.

  1. Accommodating a millennial lifestyle

The technology-led millennial generation comprises the largest population. They have a heavy disposable income and are today’s homebuyers. Additionally, today’s generation is eco-conscious, hence they look for sustainable homes.

To grow & stay relevant, the realtors and the real estate market should ideally be revolving around the needs of millennials. The key for which is marrying technology, sustainability, and affordability, while being quickly adaptable.

Impact of Work From Home on Real Estate Industry

“The Only Constant in Life Is Change.”- Heraclitus. But the change that COVID-19 brought in our lives – no one saw it coming. Hygiene & safety became an utmost priority, and the pandemic-led lockdown turned our homes into everything from a restaurant & office to garden & temple, from a gym & shopping mall to a cinema & a recreational centre. This change in the meaning & purpose of a ‘home’ radically transformed the real estate market – residential, commercial and vacation homes.

Impact on Commercial Market

The Commercial Real Estate market witnessed both risks and opportunities:
  • There was a decline in demand for commercial spaces
  • There is a rise in demand for co-working spaces
  • There is a rise in demand for spacious & open commercial spaces, considering physical-distancing
  • There is a boost in subleasing powered by companies with longer-term leases

Impact on Vacation Homes

Work from home (WFH) gave rise to another concept known as ‘workation’. Many organisations introduced the workation concept which empowers professionals to mix business with leisure.

Workation turned the tables for the market for vacation homes. The growing number of the middle-class, higher middle class, NRIs and HNIs began exploring vacation homes in their country, within driving distance of metros – in smaller towns and nearby holiday destinations such as Nasik, Lonawala, Alibaug, Karjat, Goa, Panchkula, Kasauli, Shimla and Dehradun among others.

Workation was a win-win situation for employers, employees & the real-estate market. As for the employers & employees, workation facilitates living and working from vacation homes for long durations, without compromising on work or family life.

For the real-estate players, the sale of vacation homes & in turn profitability went up. Striking while the iron is hot – developers started offering competitive prices. This fuelled by low-interest rates on home loans by financial institutions, second-home & vacation home became the preferred choice of investment for travel-savvy professionals who earlier enjoyed annual holidays.

Impact on Residential Market

Work from home (WFH) has overshadowed the previous ‘gold standard of Indian housing – the walk-to-work/short drive to work. This has led to future homebuyers shifting to the peripheral areas in search of bigger homes and a better lifestyle – at more affordable prices.

Understanding that the work from home (WFH) is here to stay, the millennial generation – who are the future homebuyers have a new-found preference for buying rather than renting homes.

They are now preferring to live in more spacious and cost-effective homes in less central areas. This new demand has dictated fresh supply.

Affordability and Price Quotient

Apart from changing real estate consumer preferences due to work from home, affordability has played an important factor in the shifting & rising demand towards residential property purchase in peripheral areas such as Thane & Mulund.

The cost analysis of real estate in MMR is as follows:

In MMR (Mumbai Metropolitan Region), the average price for a standard 1,000 sq. ft. property in areas within city limits is approx. Rs 1.85 Crore, against Rs 55.35 lakh in the peripheral areas – a 70 per cent cost difference. Micro-markets within city limits included Andheri, Vile Parle, Goregaon, Malad, Kandivali, Chembur, Wadala, Ghatkopar, Vikhroli, Powai, Mulund, etc. Peripheral areas include Kalyan, Bhiwandi, Dombivli, Mira Road, Vasai, Virar, Thane beyond Kasarvadavali and Owale Panvel, Ulwe, Taloja, etc.

The average monthly rent for a standard 2 BHK home in areas within city limits is approx. Rs 45,800, against Rs 12,500 in the peripheries.

Conclusion

All in all, the work from home (WFH) culture popularised by the COVID-19 pandemic has proven to be a mixed bag for the real estate sector.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Home loan benefits for women in india

WOMEN IN THE HEART & ON THE NAME PLATE

Benefits of being a Woman Home Buyer in India

More and more women in India are becoming financially independent. They are taking their rightful place as equals in the society, participating & making important decisions such as buying their own house.

As per the latest consumer survey by ANAROCK-LIC Housing Finance, 77% of women home seekers are looking to buy property for end-use, while the rest are looking at the same as an investment.

To make house purchases more profitable for women while fulfilling its larger goal of ‘Housing for All’ the Indian government offers several monetary benefits that women home buyers in India can avail of, if the property is registered in their name.

1. Stamp duty

The stamp duty on homes registered in the name of women is about 1%-2% lower as compared to men in most Indian states. E.g., if a woman purchases a property worth Rs. 50 Lakhs, she saves around Rs. 50,000 – 1, 00,000 on stamp duty, all the credit for this goes to the lower stamp duty scheme for women.

The stamp duty that in India for when a man pays v/s when a woman pays

State The stamp duty rate for men The stamp duty rate for women
Jharkhand 7% Re 1
Delhi 6% 4%
Haryana 6% in rural, 8% in urban 4% in rural, 6% in urban
Uttar Pradesh 7% Rebate of Rs 10,000 on overall charges
Rajasthan 5% 4%
Punjab 6% 4%
Maharashtra 6% 6%
Tamil Nadu 7% 7%
West Bengal 5% in rural, 6% in urban, (Plus 1%, if the property cost is more than Rs 40 Lakhs) Same
Karnataka 5.6% 5.6%
Note: Charges are indicative and subject to change.

2. Home Loan Benefits for Women

Did you know? 

Women are the favoured applicants for a home loan. They are known for having a better track record. Lenders find them more reliable, hence a woman’s chances of being approved for a home loan are higher.

Financial lending institutions are encouraging home buying behaviour amongst women by offering specialised schemes and lower interest rates.

Even a minimum subsidy of 0.05% to 1% on home loan rates significantly impacts EMI. It adds up to a considerable amount in lowering down the EMI, thus making repayment stress free for women.

Here’s how much a women applicant can save on a home loan at a lower rate of interest as compared to others:

Particulars Women Borrower Other Borrower
Loan Amount 50 Lakh 50 Lakh
Rate 8.30% 8.35%
Rate Difference 0.05%
Tenure 20 years 20 years
Monthly instalment 42,760 42,918
Total Principal Amount 50,00,000 50,00,000
Total Interest Amount 52,62,482 53,00,234
Total Amount Payable 1,02,62,482 1,03,00,234
Amount saved 37,752

2.   A. Women can choose longer tenure

Women can easily avail a home loan maximum of up to 30 years. With no charges levied on prepayment, women can lower their EMIs and save for other financial goals that they have planned for.

2.   B. Women can benefit as co-borrowers

Women can apply as co-borrowers with their spouses. Their combined income can offer them higher loan eligibility. Furthermore, as co-borrowers, they can claim tax benefits of Rs 1.5 lakh on the principal amount under Section 80C and Rs 2 lakh on the interest repayment. By availing of a joint home loan, a couple can claim the benefit which is a combined deduction of Rs 3 lakh on the principal amount and Rs 4 lakh on the interest component.

To understand more you can refer to the illustration below:

ParticularsHome loan tax benefits for IndividualsHome loan tax benefit for Couples*
Principal under Sec 80 CRs. 1,50,000Rs. 3,00,000
Interest under Section 24Rs. 2,00,000Rs. 4,00,000
Total DeductibleRs. 3,50,000Rs. 7,00,000

However, the couple should ensure that the sale deed/conveyance deed has the names of both the applicants as the owner of the property and women to be the main applicant.

2.   C. Women can avail higher loan amounts

Many lenders are increasing their sanctions to attract women borrowers. Benefiting from this, women can avail higher loan amounts from anywhere between Rs. 30 Lakhs to 3.5 Crore. This complemented with simple eligibility criteria, it’s a big ‘YES’ to be a woman home buyer in India.

3. Tax Deduction Benefits

Women can also avail tax benefits while taking a home loan. The limit is up to 3.5 lakhs covered under section 80 C for Principal repayment and Section 24 (b) on Interest paid. As per the Income-tax Act 1961, the borrowers can claim a deduction of up to Rs 1.5 lakhs under section 80 C and can claim a deduction of up to Rs 2 lakhs under section 24 (b).

Over & above the deduction of 24 (b), women can claim an additional deduction of Rs 1.5 Lakhs under section 80 EEA. This is only applicable to the loans sanctioned from 1st April 2019 to 31st March 2021.

Section Tax deduction applicable on Limit
80C Principle Paid Up to Rs. 1.5 Lakhs
80C Stamp Duty Rs. 1.5 Lakhs
24(b) Interest Paid Up to Rs. 2 Lakhs

4. Pradhan Mantri Awas Yojana benefits for women

As a step towards equality, and to empower women of all ages, classes, and marital status to apply for housing loans without facing any discrimination, the government has introduced the Pradhan Mantri Awas Yojana (PMAY) Scheme.

Under this scheme, a woman borrowing a home loan under Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme (PMAY-CLSS) enjoy concessions on interest. Women borrowers from the economically weaker section (those earning up to Rs 3 lakhs per annum) and low-income group (LIG) category can avail of an interest subsidy of 6.5% (up to Rs 2.67 lakhs) on housing loans of up to Rs 6 lakhs. The subsidy amount is given upfront on the principal outstanding, thus lowering down the interest amount.

The benefits under PMAY-CLSS scheme are categorised on the basic income:

Income Groups Eligible Family Income
Economically Weaker Sections (EWS) Up to Rs. 3 Lakhs
Lower Income Group (LIG) Rs. 3,00,000 to Rs. 6,00,000
Middle Income Group 1 (MIG 1) Rs. 6,00,001 to Rs. 12,00,000
Middle Income Group 2 (MIG 2) Rs. 12,00,001 to Rs. 18,00,000

To avail of the benefits of the PMAY-CLSS scheme, women must meet the below guidelines:

  • At least one woman in the family must be registered as the owner of the new property, irrespective of the fact whether she is buying the property or not
  • Neither the woman, nor her immediate family should own a ‘pucca’ house anywhere in India. (You qualify, even if your parents own a home and you live with them)

Other Benefits under Pradhan Mantri Awas Yojana Scheme:

ParticularsEWSLIGMIG 1MIG 2
Annual IncomeRs 3 LakhRs 3 lakh to Rs 6 lakhRs 6 lakh to Rs 12 lakhRs 12 lakh to Rs 18 lakh
Repayment Tenor (in years)20 years20 years20 years20 years
Subsidy Interest6.5%6.5%4%3%
Loan amount for subsidy qualificationRs. 6 lakhRs. 6 lakhRs. 9 lakhRs. 12 lakh
Max. Property Carpet Area30 square meters60 square meters120 square meters160 square meters

All the above-mentioned benefits add wings to a woman’s dreams of owning a home. They go a long way to empower women both financially and economically.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The transition of real estate – from real to virtual

THE TRANSITION OF REAL ESTATE – FROM REAL TO VIRTUAL

Modern Problems Require Modern Solutions – this statement proves to be true in today’s pandemic struck world where the best of the world comes to you at your doorstep, or rather fingertips, thanks to digitalisation. It is a part of almost every sector – be it work from home, education, e-commerce, banking, retail, tourism, or real estate.

When the pandemic-induced lockdown forced businesses to shut down physically, they began to look for other avenues to reach out to their customers. It was here that digitalisation proved to be a silver lining.

While property portals have been around for more than a decade or so, buyers mostly preferred to visit the property physically, inspect the location, meet the developer/seller and sign the agreement. Property portals & real estate mobile applications were mostly used to narrow down the property search, view property pictures, and contact the developer & seller.

But, this is now a thing of the past. Pandemic introduced the ‘new normal’ – digitalisation. People have now got used to the digital way of life where they can get everything from pin to property in a click. If not completely, at least more than half of the real estate transaction process is conducted digitally. This includes virtual property visits, availing bank loans, online payments, documentation submission, the initial meeting with developers & sellers through video calls etc.

This is the buyers’ side of the story, the dipping real estate sales and the pursuit to recover sales and to remain relevant developers & sellers are placing their bets on digitalisation & modern technology.

So, how is the digital transformation of the real estate industry taking place?

Promotion, eventually leading to sales:

Social media is a powerful tool that can help developers & sellers generating leads and converting them into buyers. Developers & sellers are striking while the iron is hot by strengthening social media presence. Aggressive organic & inorganic marketing on Twitter, Facebook, Instagram & LinkedIn is just one of the ways to bridge the gap between the buyers & them, and increasing their business.

Understanding buyer behaviour:

Developers & sellers are leveraging the power of the digital marketing funnel to zero down on their target audience by understanding their needs better concerning home buying preferences. Digital marketing funnel keeps a track of customers navigating the web pages. Properties are filtered as per the requirement to convert leads into sales.

Additionally, thanks to AI and Big Data, developers & sellers can accurately analyse customer behaviour, distinguish between hot & cold leads, thus saving substantial time, customer service costs, and understand buyer behaviour.

Harnessing the power of technology:

Building Information Modelling (BIM) is transforming how real estate projects are done. A 3D model-based software – BIM facilitates planning, designing, constructing & managing buildings for construction, architecture, and engineering professionals.

Chatbots are a great way for developers & sellers to stay connected with their potential buyers 24×7. Through chatbots, developers & sellers can offer handholding to customers through their entire property-buying journey, thus developing nurturing relationships & fostering sales growth.

Virtual walkthroughs or e-Visits are a thing now. Augmented Reality (AR) and Virtual Reality (VR) are proving to be a magic wand for developers & sellers. AR & VR provide a surreal home buying experience to home buyers. They empower potential buyers to take a tour of property virtually – anytime, anywhere without physically visiting it.

Making the most of this technology, Ashar Group too conducted virtual meetings and e-visits for its potential customers during lockdown which proved to be fruitful.

Seal the deal digitally:

Shifting from conventional paper-based processes to digital documentation has resulted in nearly 10 times faster turnaround time in the overall sales deal. Digital documentation eliminates – long hours to prepare legal documentation of purchase agreement, loan processing and payments and human errors. The expense incurred for the storage of documents was massive for real estate players, digital documentation will reduce that and make it secure. Lastly, digital documentation makes it easy for consumers to purchase property in another city, state, or country.

To summarise, as the saying goes “The only constant in life is change.” Digitisation – apart from being the silver lining in a dark cloud of the COVID-19 pandemic, is here to stay. Whatever the reason be – to enhance transparency, increase sales, ease the selling process, gain an edge, attract new buyers, or stay in touch with loyal customers – developers & sellers should continue to harness the power of digital technology even in the post-pandemic world. While doing so, they should not forget that old is gold, hence interpersonal relations or human intervention cannot be ruled out.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

Covid-19 came as a humanitarian challenge that changed the way people live, work, and play, maybe forever. It took away people’s lives and source of livelihood. The global economy saw one of the biggest downturns. There was a point in time when people were more scared of the pandemic-led lockdown than the pandemic itself, due to its devastating impact on the economy.

Real-estate, retail, finance, aviation and automobiles are the 5 sectors that are worst hit by COVID-19. Speaking of realty, last year when the nation went into a complete lockdown between March and May 2020, many new constructions stopped, sales took a hit, and new launches were postponed.

The pandemic brought in a domino effect on the realty sector. At first, the lockdown brought the construction activities to halt, then the fear of health & financial crises caused a mass exodus of migrant workers, the demand for social distancing & the sudden realisation of the importance of saving overspending led to negligible homebuyer enquiries and site visits.
Beginning June 2020, just when the realty sector started taking baby steps on the road to recovery through digital business strategies; and seeing a ray of hope through increased demand of virtual site visits, the country was struck by 2nd wave of COVID-19, this time, deadly than previous.

The cities where real estate activities have most suffered are Mumbai, Delhi, and Bengaluru amongst others. For instance, the Mumbai Metropolitan Region (MMR) in Maharashtra has witnessed a drop in property registrations. Experts say the recovery of the realty market in India could now prolong until 2022, and that it will be highly dependent on the way India deals with the second wave of Coronavirus.

THE OVERALL DAMAGE DONE – What reports say?

Going by a KPMG report, the real estate sector has incurred a loss of over Rs 1 lakh Crore since COVID-19 broke out, resulting in a serious liquidity crunch for real estate developers. The credit shortage brought down the residential sales from 4 lakh units in 2019-20 to 2.8 lakh units in 2020-21 across the top seven cities of India.

The overall residential demand declined by over 40 per cent in H1 of FY21, says the India Ratings and Research Private Limited (Ind-Ra) report. The agency believes that the sales will continue to decline until the pandemic is brought under control.

According to a report by Liases Foras, the pandemic-led lockdown cascaded the volume of unsold inventory from 15+ quarters at the end of FY-20, to 19+ quarters towards the end of H1 FY21. The volume of the unsold stock increased by an extreme dip in sales in Q1 and dampened recovery in Q2 2020.

IT WAS NOT WORKING ANYMORE FOR COMMERCIAL AND RETAIL REAL ESTATE

What simply existed as a concept in an organisation’s HR policies, now become a new way of life – Work from Home (WFH). The rise of the WFH concept led to the fall of the need & demand for office spaces.
According to a report by Cushman and Wakefield, the net leasing of office spaces declined from approximately 70 lakh sq. ft. in 2020 to around 35 lakh sq. ft. in Jan-Mar 2021.

In Q4, the immunisation drive by the Government picked up the pace, so did the Coronavirus cases. Thus delaying leasing & impacting leasing rates. The net leasing rates dipped by 33 per cent in 2020, and average commercial property prices declined by 7-10 per cent.

The demand for flexible workspaces such as WeWork & Awfis which had resurged in the last few months has declined since the second COVID-19 wave emerged. If the pandemic is brought under control soon, experts anticipate leasing 38 MN sq. ft. flexible workspaces in the coming year.

Speaking of retail real estate – data compiled by Statista says that retail mobility has declined by 55-60 per cent across India owing to the partial lockdowns and curfews across cities. Another factor contributing to this downfall is that people are no longer keen on visiting retail spaces – they can get everything, from food & clothes to entertainment delivered home, in just a click. Thanks to e-commerce and OTT platforms.

Looking at the other side of the grass, with WFH becoming a norm, residential real estate underwent a dramatic architectural change. Along with the routine bedroom, living room, washroom, kitchen & balcony, providing a dedicated WFH space has become a need of the hour in the upcoming projects.

DID THE LAW OF SUPPLY AND DEMAND AFFECT REALTY PRICES?

There are many points to be considered while discussing realty prices.

  1. While on one hand, during the 1st wave, some developers went all out to woo buyers by offering major discounts. We came across news such as:

    A 559 sq. ft. property of Hiranandani has been closed for Rs 86 lakh this month. A similar unit was transacted at over a Crore in MarchIn January, ready-to-move-in residential units – one in Ashoka Towers in Parel and the other in Omkar 1973 in Worli – were both available for around Rs 8.5 Crore. Then coronavirus struck & the same units were available in May for Rs 7.5 Crore and Rs 6.5 Crore.

    On the other hand, some developers continued to withhold prices due to limited profit margins. Unlike the first wave, the second wave of the pandemic has, so far, not impacted the prices of the residential market.

  2. Meanwhile, the pandemic-induced spike in prices of essential raw materials, like steel bars, cement, plastic, man-made polymers and resins, etc., are pressurising developers to hike the prices of new projects. The supply shortage is only making matters worse. There are chances that once the lockdown is lifted, we may witness minor hikes in property prices by the end of the next quarter, whereas we may see more significant corrections in prices by the end of 2021.

  3. During the 1st wave of the pandemic, people realised the value of owning a home for themselves and lucrative deals added fuel to the fire.In areas such as Maharashtra, where the stamp duty charges were reduced from 5% to 2% until 31 December 2020 and 3% from January 1 to 31 March 2021.

    Furthermore, RBI kept the repo rate unchanged at 4%, making home buying affordable by availing home loans for as low as 6.65% annual interest, which was in contrast with the average home loan interest rate of 8% in January 2020.

    While this is one side of the coin, COIVD-19 related constraints such as stay-at-home & social distancing, and delayed delivery of other support facilities, such as processing papers for applying for home loans, having the agreement for sale or flats registered, or reaching out to sales and marketing personnel to garner more information about the project are either discouraging buyers or coaxing them to postpone their home-buying plans for later. All of which is leading to a dip in sales.

    Although the vaccination drive seems like a silver lining in the dark cloud of COVID-19, the year 2021 is expected to remain challenging for the real estate sector.

THE DOMINO EFFECT

Iron & steel, cement, machinery are amongst the many industries that are dependent on the real estate sector. The pandemic inflicted heavy losses on them all during the year 2020. Approximately 250 SMEs reported losses that were accompanied by increased costs in 2020.

This was the condition during the 1st wave of the pandemic. The developers and manufacturers were more prepared and cautious during the 2nd wave. They made preparations such as installing labour camps, putting a shift-wise duty in place, and ensured adherence to COVID-19 protocols such as regular temperature checks, once-in-a-moth COVID-19 testing of labourers and installing sanitising stations on construction sites.

The government’s move of initiating a vaccination drive for those above 18 years of age will boost the construction activities as it will help the labourers to get vaccinated at the earliest. It will also make labourers feel safe & eventually reduce migration.

THE ROAD AHEAD

Post-phase-4 of lockdown, the realty sector slowly began its operations, and there came 2021, which seemed to be the year of recovery as COVID-19 vaccines were developed. But the happiness was short-lived as the pandemic’s 2nd wave gushed in, putting the developers and financial institutions in cautious mode. The resurgence of the pandemic has compelled financial institutions to avoid risky investments, adding to the woes of the real estate sector already suffering from a liquidity crisis. But it’s not all dark and gloomy for the realty sector like it’s said, “A smooth sea never made a skilled sailor” – Franklin D. Roosevelt. The realisation of the importance of owning a home in the consumers’ mind during COVID-19 can play an important role in increased residential property sales. Once the government accomplishes its goal to vaccinate its over 1.3 billion population and the fear of COVID-19 diminishes, there are high chances for the realty sector to experience market equilibrium. Points supporting this stamen are

  1. People may return to work, thus increasing the demand for commercial spaces;
  2. Increased e-commerce may lead to increased demand for industrial units to store inventory;
  3. Pandemic has turned many employed professionals into entrepreneurs, this may lead to a rise in demand for retail spaces;
  4. Virtual site visits have lured and made it possible for NRIs to invest back home;
  5. Low-interest rates (home loan interest rates are at below 7% now) and high tax exemption (rebate against home loan interest payment is as high as Rs 3.50 lakhs per annum) can make the option of owning a home attractive over renting;
  6. Many people, especially professionals who have permanently decided to return to their hometowns, who were earlier living on rent in Tier-1 metro cities like Mumbai, Bengaluru, Delhi etc. will look to buy homes, and finding employment in their hometown. Thus, increasing the demand for commercial, residential and retail spaces in Tier-2 cities.
Having mentioned that, here we are seeing the glass half full, but if we look at the half-empty glass, the pandemic has led to job losses and pay cuts, and the entire population is yet to be vaccinated. So we will be able to see a clear picture once the pandemic is tamed and the infection rate declines. Till then, it’s all about the wait-and-watch approach.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.