Ashiana Housing plans to expand its retirement housing segment

Ashiana Housing plans to expand its retirement housing segment

The New Delhi-based firm Ashiana Housing which already has three senior citizen living projects in its portfolio in three cities including Jaipur, Bhiwadi (Delhi NCR) and Lavasa in Pune, under the brand Ashiana Utsav, now plans to set up one more in Bhiwadi and one each in Kolkata and Chennai

The concept of retirement homes is evolving in India, but not at a similar pace as it is in other countries.


Company will be launching the Chennai and Kolkata projects next year and later in Bhiwadi.

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South India Property Show Doha 2013 at HDFC Bank, Intertek WLL, Al Amir Street, Opposite QNB, Doha, Qatar on 15th & 16th December 2013

South India Property Show Doha 2013 at HDFC Bank, Intertek WLL, Al Amir Street, Opposite QNB, Doha, Qatar on 15th & 16th December 2013

South India Property Show Doha 2013

Venue:

HDFC Bank, Intertek WLL, Al Amir Street, Opposite QNB, Doha, Qatar

Date:

15th & 16th December 2013

Time:

10:00 a.m to 7:00 p.m

More on Bangalore Real Estate News & Updates

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South India Property Show Doha 2013 at Emerald Mall, Holiday Villa Hotel, Munthaza Area, Doha, Qatar on 13th & 14th December 2013

South India Property Show Doha 2013 at Emerald Mall, Holiday Villa Hotel, Munthaza Area, Doha, Qatar on 13th & 14th December 2013

South India Property Show Doha 2013

Venue:

Emerald Mall, Holiday Villa Hotel, Munthaza Area, Doha, Qatar

Date:

13th & 14th December 2013

Time:


10:00 a.m to 8:00 p.m

More on Indian Real Estate News & Updates

Canara Bank launches two new housing loan schemes for NRIs, HNIs

Canara Bank launches two new housing loan schemes for NRIs, HNIs

Canara Bank launched two new housing schemes for Non-Resident Indians (NRIs) and High Networth Individuals (HNIs), in a bid to cash in on the festive fervour.

The demand from NRIs for houses has increased considerably and enquiries with regard to housing loans from NRIs with builders have grown by 20 per cent at present.

Home loan of up to Rs 30 lakh would be available to an NRI at the base rate of 9.95 per cent, while loans in the bracket of Rs 30-75 lakh will be available at a rate of 10 per cent. Loans of above Rs 75 lakh would attract Rs 10.20 per cent.

Further, the demand from HNIs for housing loans of above Rs 1 crore has also increased. The premium housing loan scheme is exclusively for HNIs having gross annual income of Rs 25 lakh and above.

The minimum loan amount under the scheme is Rs 1 crore and the rate of interest charged would be 10.05 per cent.


Processing charges for both the schemes have been waived till October 31. More details here.

Reserve Bank of India debars banks from giving upfront 80:20 loans for under-construction projects

Reserve Bank of India debars banks from giving upfront 80:20 loans for under-construction projects


The RBI has barred banks from giving upfront loans for under-construction projects through schemes like 80:20. Providing such loans help a bank as they are classified as mortgage and not construction finance which is considered a risky business by the RBI and requires higher provisioning. The builder too gains as home loans are far cheaper than construction loans.

Nearly 25% of loan disbursements for new flats in Mumbai are under such schemes. While builders said the RBI's move would hit economic growth, construction finance entails higher risks and, therefore, such risks have to be built into the pricing. Construction finance should not, through any innovative structuring, be available to developers at the rate of interest being offered on individual home loans. Further, to pay upfront construction finance to developers even before the ground is broken is dangerous.


Some feel the RBI's decision will bring down prices. It is a good decision as the government has sought to warn buyers who are tempted by the attractive 80:20 scheme, thinking they are getting a good discount. In reality, this scheme is quite complicated and does not clarify how much discount the developer is giving the buyer. The RBI's decision will force developers and banks to be more transparent in explaining the benefits of the scheme to buyers. It will force developers to give a prospective buyer a discount upfront instead of spreading it across 2 to 3 years as in the 80:20 scheme. But builders are greatly upset by the move. More details here.

What are the norms regarding the 20: 80 scheme?

The 20-80 scheme means that the buyer of the flat has to pay 20% of the price of the flat upfront and the remaining 80% on possession. This could work in two different ways.

1. The buyer takes a loan for 80% of the price of the flat. The terms of the loan are such that he pays nothing till possession, and the installments start once he gets the possession.

2. The payment terms between the buyer and seller are structured in a way that remaining 80% of the price of that flat are paid on possession. There is no loan involved in the transaction.

How does loan under 20: 80 scheme differ from a normal home loan? 


For a normal home loan, the borrower needs to pay a monthly installment, which could be only the interest in the loan availed (pre-EMI), or an interest with some principal repayment (EMI). In a 20:80 scheme there is no installment payable.

HDFC's INDIA HOMES FAIR 2013 - Hilton Metropole Hotel, 225 Edgware Road, London W2 1JU on 13th & 14th July 2013 from 10 AM to 7 PM

HDFC's INDIA HOMES FAIR 2013 - Hilton Metropole Hotel, 225 Edgware Road, London W2 1JU on 13th & 14th July 2013 from 10 AM to 7 PM

HDFC's INDIA HOMES FAIR 2013

Address:

Hilton Metropole Hotel, 225 Edgware Road, London W2 1JU

Date & Time:


13th & 14th July 2013 from 10 AM to 7 PM

Pay more service tax on house costing over Rs 1 crore

Pay more service tax on house costing over Rs 1 crore



The finance ministry has tightened norms for application of lower rate of service tax on construction, dealing a blow to buyers purchasing houses above a certain size or value.

The Central Board of Excise and Customs, the apex indirect taxes body, has issued new norms that restrict lower service tax to only those houses that cost below Rs 1 crore and have carpet area less than 2000 square feet.

Service tax at the rate of 12% will be applicable on 25% of the total value of the residential unit (effectively 3%) on properties that meet these conditions.

If a housing unit is either more than 2000 square feet carpet area or costs over Rs 1 crore then the tax will be levied on 30% of the total value, says the CBEC notification, raising the effective tax to 3.6%.

Commercial properties will continue to attract higher incidence of tax, irrespective of size and value. The move comes at a time when the construction and the realty sector is already confronting lower off take and piled up inventory. The CBEC had earlier allowed application of the lower rate if any of the conditions was met.

Experts say absence of a definition of what constituted carpet area complicated the matters further. 

All under construction residential houses will face the new norm. As many as 4.5-5 lakh homes are expected to be delivered in 2013. More details here

One per cent tax deducted at source (TDS) proposed by Finance Minister on proposed on properties sold over Rs 50 lakhs after 1st June 2013

One per cent tax deducted at source (TDS) proposed by Finance Minister on proposed on properties sold over Rs 50 lakhs after 1st June 2013


Finance minister P Chidambaram has proposed to levy 1 per cent tax deducted at source, or TDS, on properties sold for over Rs 50 lakh. Anybody selling a home for Rs 50 lakh will have to pay Rs 50,000 to the government as TDS.

This will increase the price of residential properties. Shares of India's largest real estate company DLF plunged 6.25 per cent to close at Rs 259 and the benchmark index for real estate sector, BSE Realty Index, plummeted 3.93 per cent to close at 1931.

Analysts fear property transactions in national capital region, Delhi (NCR), and Mumbai may see a further fall, hitting the already struggling sales. The levy of 1 per cent TDS on property value exceeding Rs 50 lakh will curb movement of black money within the real estate sector.

To avoid TDS, property transactions may see a spurt till May 31, 2013 as the new tax law is only effective from June 1, 2013. The service tax abatement on flats with carpet area of 2,000 square feet or more, or value of Rs 1 crore or more, has been reduced to 70 per cent from 75 per cent. This means real estate developers who were paying 12.5 per cent service tax on 25 per cent of the value will now have to pay for 30 per cent of the value.

The effective service tax rate for real estate companies will increase by 62 basis points to 3.7 per cent of the property value. The real estate companies may choose to pass on this extra tax burden to customers.

Analysts say demand for super-premium properties may also get impacted after the government proposed a 10 per cent surcharge on individuals who earn yearly income of more than Rs 1 crore.

A proposal to double surcharge to 10 per cent for companies whose taxable income exceeds Rs 10 crore will hit real estate developers. The tax surcharge is seen as negative for real estate companies, the effective corporate tax rate will increase by 154 basis points to 33.99 per cent from 32.44 per cent. More details here

India Invest 2013 - India Pavilion at Property Investor Show - ExcelLondon 11-13 October 2012

India Invest 2013 - India Pavilion at Property Investor Show - ExcelLondon 11-13 October 2012

India Invest 2013 - India Pavilion at Property Investor Show - Excel London 11-13 October 2012, a photo by jungle_concrete on Flickr.

Via Flickr:
India Invest 2013 - India Pavilion at Property Investor Show - Excel London 11-13 October 2012. For more Real Estate updates, visit indianconcretejungle.blogspot.in

Also check out http://www.youtube.com/watch?v=Su2X-hPP6mg

In conjunction with zone partner - Myriad wpi (Mumbai) - the show is delighted to present a selection of the best property deals available in India today.

`India Invest 2013` represents the only chance for NRI/PIO buyers to meet most of the participating companies face-to-face in the UK this year. So if you are considering buying in India don`t miss this unique opportunity.

Venue

ExCel, Royal Victoria Dock, London E16 1XL

ExCeL is located in the heart of London's Docklands, the infrastructure and leading edge support services have been created to provide a one-stop shop of exhibition needs.
Set within a stunning waterfront environment in the dynamic and thriving Docklands, just a stone's throw away from Canary Wharf, ExCeL is the ideal venue for The Property Investor Show & OPP Live.
Located less than 5 minutes drive from London City Airport, ExCeL is accessible by air, rail, road and sea, with an impressive building and growing on-site services it's no surprise more and more large exhibition shows are moving their shows to ExCeL.

Timings

Thursday 11th Oct.
10am-6pm
Friday 12th Oct.
10am-6pm
Saturday 13th Oct.
10.30am-5.00pm