UB Towers, Raj Bhavan Road flats are costliest in Bangalore - A Review By Dreamz Infra

BANGALORE: Your dream flat in Bangalore’s tony areas is set to leave a bigger hole in your bank account.

The new market-based guidance value for property registration came into effect on Monday, pushing up the land cost by 30%-50 % in 90% of Bangalore city areas to 100% in the rest.

UB Towers on Vittal Mallya Road is the most expensive property in Bangalore, followed by Raj Bhavan Road, Commercial Street and Sankey Road.

The value of the property at UB Towers has been pegged between Rs 20,150 and Rs 20,350 per sqft. And properties on the outskirts of Bangalore North taluk cost about 1% of that – Rs 250 per sqft, making them the cheapest in the current revision.
The revision is expected to increase the government’s revenue by Rs 1,500 crore, taking it closer to the Rs 6,700-crore mark in the 2013-14 financial year.

For the first time, the registration of houses and villas in the gated neighbourhoods has been included with the guidance value that ranges between Rs 500 and Rs 1,000 per sqft.

Guidance value

Revision likely to curb black money

The final values have been published with minor changes, based on feedback from citizens, said Adoni Syed Saleem , inspector-general of registration and commissioner of stamps.

An officer in registration department said: “The revision will help augment our revenue collection, and curb black money in property deals.”

N Manjunath, a realty dealer in Yelahanka, said: “The revision is expected to have a negative fallout in the initial 3-4 months and property registrations may slow down.” The revised guidance values of properties in BangaloreRural and Ramanagara districts have also been published.

What’s new?

The revision will apply to villas, apartments and gated communities. Geographical Information System was used for the first time to determine areas that have witnessed a growth in the number of apartments. Revision has been based on locations / type of construction /amenities provided etc. The lowest value per square foot is Rs. 250 and the highest Rs. 20,350 per sqft

Effect of the rise

Property values will go up by around 30-50 per cent. Low and middle income groups will be discouraged from buying property. Developers will, naturally, load the increase on the buyers.

http://timesofindia.indiatimes.com/city/bangalore/UB-Towers-Raj-Bhavan-Road-flats-are-costliest-in-Bangalore/articleshow/21793314.cms

Reviews on Home Loan and Interest rates - A guide by Dreamz Infra

The floating interest rate for home loan

Country's economy depends on the Finance System of the common people. The rise actually affects the on the whole and mainly on vegetables, groceries and affect the price of the goods, that we use on a daily basis. The amount of increase in the purchasing power of the people leads to lifts in the loans. However, the current account deposit of rupees indirectly lifts the internal market and the amount of the loan becomes very fragile. RBI announced its first quarter credit policy in such a critical situation. The pressure on the rupee to stabilize the banks and to fill the current account deficit is expected to be limited. Nevertheless, the internal market has focused on the amount of debt that RBI lifts, all kinds of prices, as well as the options.

RBI had already taken action for the increase in the Urbanization of the banking sector, and to promote economic activity and lending activities. Despite the improved monetary policy, RBI had given its consent for the trademark. RBI has gone a step further this time and the interest on the loan is continued as earlier. This action has been taken to prevent the current lack of prevention and control inflation.

RBI had the responsibility to focus on the decrease in the value of the rupee, against the dollar that had an impact of inflation which is inevitable. RBI has promised that it would reduce the inflation rate at the end of the current year by 5%.

Repo rate (banks that obtain a loan from RBI) has been retained at 7.25%. Similarly, the reverse repo rate (RBI raising loans from banks) is also retained 6.25%. In addition to the cash reserve ratio (banks to deposit the sum in RBI) also increased. Through all of these factors, the need for banks to increase the interest rate on a loan is in front of the general consumer.

At the same time, 5.50% of GDP rate of progression of claims, is estimated to be slightly lower compared to the the last time (5.70 percent). Oscillatory state of the global economic situation will continue in the same situation and the possibility of monetary policy.

The floating rate is the best

Repo, reverse repo rate and the cash reserve have not seen a major increase in rates. So, the floating interest rate on the loan is a better choice for whoever wishing to purchase a home loan, because there is no rise in interest rates found in the current situation.RBI order to simplify the loan policy is already in step, so that the positive aspects of economic activity is likely to be found. In order to undertake further action and to improve the situation, RBI policy is likely to be further refined in the next one month.

Inflation is under control and the decline in the rupee value of a rise in interest rates play an important role with continuation of the actions taken. At the same time developers and builders as well as financial institutions are approaching the home construction and home loans are likely to field a number of new offers. Overall, the rate of interest on the bank loan is a boon for the home loan buyers and floating-rate scheme in the current situation is the best choice.

What is floating rate?

The floating interest rate is the interest rate on a loan which is not constant till the end of the loan and that may vary according to the season. The interest rate is calculated calculate on basis of index or base rate and specified for each period. The floating interest rate is more used in the loan given to the banking and large corporate sector. For example, one person has a loan of 5 lakh worth of Home loans and the interest rate will be 10% in the first six months of the period. In the next six months there could be a possibility of interest rate rising to 10.5%. Later there is a possibility of improvement in economy and the interest rate may descend by 9.2%.

Reviews on Falling Private Equity investments in Indian Real Estate

Private equity (PE) investments in Indian real estate fell 46% to about $276 million (Rs.1,638 crore) in the first half of 2013 from a year earlier, but funds worth $2 billion are still available to be deployed in the sector, property consultant Cushman and Wakefield said in a report.

The decline in investments was due to a drop in the number of deals struck during the six months—13 against 19 in the first half of last year—as the average ticket size has remained at $40-50 million, said the report. It blamed the decline in transactions on the slowing economy and the steep depreciation in the rupee, among other factors.

“Despite a slowdown in the construction market and reduced number of investible projects in India, real estate features as the fourth-most invested sector by private equity funds in the latest report,” said Sanjay Dutt, executive managing director South Asia, Cushman and Wakefield. “It has traditionally been one of the most preferred investment categories on account of buoyant demand for real estate.”

He estimated that about $2 billion is ready to be deployed in the Indian real estate sector.
“Investors are willing to invest in real estate; however they are exploring the market for right real estate projects,” Dutt said. “We anticipate that in the next few quarters, after some regulatory and politico-economic environment are regularized, the momentum in real estate will pick up throwing open more investable options for the investors.”

The total value of investments in the residential segment fell 48% to $156 million in the first half of 2013, and by 37% to $118.1 million in the office segment, the report said.
So far in 2013, the highest value PE investment was $131.6 million in Pune, followed by $67.5 million in Mumbai, $38.8 million in the National Capital Region, and $16.9 million in Bangalore.

Source: http://www.livemint.com/Companies/58gr6oLDdAj2GeqoXE2UbJ/Private-equity-investments-in-Indian-real-estate-fall-46-in.html

BDA Retrieves Civic Amenity Sites By Clearing Apartment Parking Lots

A demolition drive witnessed BDA (Bangalore Development Authority) recovering eight Civic Amenity sites spread of 3.5 acres, which was allegedly occupied by the builders of Platinum City apartment complex in Yeshwanthpur. The project, supported by Indian Builders’ Corporation (IBC) reportedly has collected an estimated amount of rupees 6 crore from 300 residents, Rs. 1.5 to 2 lakh from each, by illegally allotting them parking space.

The Karnataka Apartments Ownership Act (1972) terms the sale of an encroached property as parking space to the residents as ‘Violation’. The builders are never authenticated to sell any undivided common area as their own property, since the state government assigns the space for civic activities like basements, cellars, yards, gardens, common parking areas and storage spaces. BDA observation reveals that several notices of Survey number 47 and 48 have been slammed on builders in the area Peenya, HMT and Yeshwanthpur for occupying the civic amenity spaces. 

Demolition of the apartment parking space along with a temporarily raised workers’ shed was the last resort of fetching back the spaces, as the stubborn builders casually ignored repeated reminders sent by the BDA. Even the court dismissed the builders’ plea, compelling them to repatriate the land taken into illegal possession.

Dreamz Infra Social Media Reviews - A trend towards Revolution

Social Media has emerged as an trusted and cost-effective medium to sell properties thanks to the recent slowdown in demand, real estate developers have accepted this new medium with open hands.

Big names like godrej properties, puravankara group, that housing are the names who have switched towards social media over the traditional medium to market their projects, which has also led to a overall reduction of the mass-media marketing cost by over one-tenth of the total cost. Social networks like Facebook, twitter and youtube are the most prominent medium. This new medium has seen success due to the increase in smartphones users and more NRI investment on properties due to the rupee depreciation against dollar in recent times.

Tata Housing has been an major example, one of there projects in Pune named La Montana generated one-fourth of the sales was affirmed by the leads generated by a Facebook Campaign, the make it more funstional they even offered buyers a chance to experience the La Tomatina festival in Spain this August. A spokesperson of Tata Housing development Company said " We have fosused on Social Media with a broder prospect, aggresively imroving there social presence with over 25% of annual budget allocated to social media".

Bangalore-based Purvankara Group, which has hired specialist agency Yrals to manage its online activities, too plans to significantly increase social media share in its marketing spends from the current 10%, its CEO Jackbastian K Nazareth said.

The company recently had run a social media campaign, named Breakfree, where they offered waiver on Booking amount, pre-EMI, floor-rise prices and loan processing fees - adding up to Rs 62 lakh - special attractions for the users booked through their social media platforms.

Big names such as Mahindra Lifespaces, Lodha group and Shobha developers have already adopted the social media trends for brand building, employee engagement and to address enquiries from potential buyers.

Dreamz infra has also followed the suite of social media propagation in the recent times  and have active interactions and quality information posted on major social media platforms such as Facebook, Twitter, Linkedin, Youtube, Slideshare, blogs, etc...

Prefer residential greenery to soothe your senses ? Dreamz Reviewed Tips

A vegetable garden can definitely contribute to your inner peace. Once the environmental growth parameters (sunlight, water & soil) are adjusted to their optimum, you can choose between a germinated sapling and a seed based upon your gardening expertise. Nevertheless, on your first attempt, the crops that can leave you satisfied to the core are “the fast growing” radish, “the foliage exhibition” of lettuce and spinach, “the versatile” onion & “the spice king” garlic…… These easy-to-grow frequent harvests can add to your heart content by crediting nutritional values to your salad recipes.

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A Vegetable Garden at home infographic

What is "A" KHATHA and "B" KHATHA - find the differences

For thousands of Bangaloreans residing in the new BBMP areas, a legitimate document that proves they own their property is a matter of utmost importance.

Interactions by Deccan Herald with a cross section of people from these areas brought this out forcefully.

Srinivasan has a property near Hosur Road which was a gift from his father. “I am nearly 40 years now and waiting for the government on its stand on khatas. How many more years should one wait?” he wonders.
The area, where his property is located, was originally under the jurisdiction of the grama panchayat, before it came under the jurisdiction of Bruhat Bangalore Mahanagara Palike (BBMP) limits. But after four years, Srinivasan still has the documents of the panchayat days.

He has heard about the ‘B’ khatha, but does not want to apply for it because of its ambiguous nature. “It would be better that I directly get the A-khata and be sure and secure about my property” he says.

There is a great deal of confusion on the Khata itself, because the “B” Khata is actually an entry in a property identification register. The “Khata” is also a misnomer, as stated by the BBMP Commissioner, Siddaiah himself. No wonder, the property owners are a worried and anxious lot.

Compounding the confusion has been the eagerness of many BBMP personnel and middlemen to cash in on the “B-Khata” craze. There are several cases of bribery by people wanting to get properties registered through these khatas. Many have fallen into this trap. The cost of a document as proof of an entry in the B-Register (which is actually not a khata) has been fixed as Rs 110, but there are many residents who have paid much more.
Take for instance Lakshmanappa, a 65-year-old who owns a property in Kengeri. He had to go through a plethora of hardships to finally get that promised document, which he still thinks is an alternative for a khatha. “I had to shell out Rs 12,000 at the BBMP office and then again Rs 4,000  at the Sub-Registrar’s office. Even after paying so much, my registration was done only after four months,” he recalls.

Lakshmanappa knows that his ‘B-khata’ does not entitle him to his property and that it is just an acknowledgement for the property tax he/she has paid to the BBMP. “Well, something is better than having nothing”, he says.

Although the BBMP officials wouldn’t admit it, the bribery is an open secret. Salim (name changed) who stays near the Old HAL Airport, having heard about the “‘B’ khatha,” wanted one for his property and tried to get a middleman to do the job. “The agent said he could do it for me for Rs 2000. He also openly admitted that most of the money was for BBMP officials,” says Salim.

In another part of the city, Bommanahalli, also a new BBMP area, a resident, Kamal owns a three-storey building. He claims that his property is registered under the City Municipal Council. But he apparently was not even aware that since the inception of the BBMP, the CMC registrations wouldn’t hold much water unless he did the necessary documentations. 

“Most of them are clueless about B-register which is generally perceived as the B-khatha,” notes Mahesh Babu, an advocate. The BBMP offices, he says, take advantage of the ignorance of people to engage in mismanagement.  “People don’t even know that they cannot avail loans from nationalised banks with this so called B-khatha nor do they know that this doesn’t certify them as legal owners of their property.”

Most people want valid documents not just to feel secure about their property but also to convince banks to sanction housing loans. Many nationalised banks now insist on the “A-khatha” issued by BBMP. “I want to desperately get a loan but want to get one only from a nationalised bank.  A genuine document would benefit not only me but also a government bank” says Srinivasan.

A-Khata, B-register or ‘B’ khatha, almost everyone prefers the BBMP to hold an interactive forum for people to clarify all their doubts. As Srinivasan puts it. “That is the least the government can do at the moment.”
Siddaiah, Commissioner, BBMP.

There is nothing called a ‘B’ khatha in the KMC Act 1976. There is only one khatha. What has come to be known as ‘B’ khatha is the ‘B’ Register

Raju , property owner and realtor 

I paid Rs 4,000 and applied for the registration of my property a long time ago. However I got my ‘B’ khatha only 15 days ago

Sudheesh, property owner, Shastri Nagar

Although I have paid the necessary charges and got my khatha registered, there are a lot of property owners in the new BBMP areas who are confused about the issue. The BBMP could hold interactive meetings for better clarity

Khatha for dummies

* A Khatha is an identification paper issued by the local civic body to recognise the ownership of a property and that makes the owner eligible to receive the civic amenities extended to him or her.
* Each City or Town municipal council and corporation issues a Khatha identifying the property owner, after verifying the title deed, the sale deed and other documents apart from measuring the extent of the site.
* Over the years, indiscriminate issual of Khathas were recorded in the City Municipal Councils and Town Municipal Councils without verifying the documents for the land.

* In 2007, those under the seven City Municipal Councils (CMC) of Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Mahadevapura, Byatarayanapura, Yelahanka, one Town Municipal Council (TMC) of Kengeri and 110 villages, were brought under the fold of the Bangalore Mahanagara Palike (BMP).
* Following this expansion and creation of the Bruhat Bangalore Mahanagara Palike (BBMP), those who did not have appropriate approval from the concerned land development authority and yet to come under the ambit of the Palike were issued an acknowledgment which was in common parlance known as ‘B’ Khatha. 
* However, in reality, ‘B’ Khatha does not exist. Property identification numbers are entered into a register called as  ‘B’ register stating that the civic agency has been paid its dues by the property owners.
* For citizens in need of an approval from the appropriate land development authority but have a Deputy Commissioner (DC) conversion, the BBMP re-introduced Betterment Charges which will entail people to take a Khatha on their property.
* Recently, the Legislative Assembly approved the extension of the DC conversion for another year.
* However, owners of properties with building bye-law violations will have to wait for Akrama-Sakrama.  

It is advisable to go for properties having A Khatha as in case of B Khatha you are not entailed to have building license, trade licence or loan from banks or any other financial transactions. B Khata is a temporary measure which will allow you to buy or sell a site, but you will face problems when you go for construction.

Khatha conversion

 B Khatha can be converted in to A Khatha. Keep the below mentioned details and documents ready for converting a B Khatha to an A Khatha:

1. You should have DC converted property

2. Property tax must be paid till date

3. Betterment charges for the conversion property to be paid to BBMP

Refferences -Deccan Herald and BBMP

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