Ashish Gupta explains how this concept helps property owners get a regular income without having to surrender possession
Reverse mortgage is a financial product that enables senior citizens (60 years plus) to mortgage their real estate assets with a lender and convert part of the equity into tax-free regular income. This saves them from selling assets in their lifetime.
The Life Insurance Corporation (LIC) is planning to enter the reverse mortgage business. LIC's entry in this segment is significant as the life insurer has a huge base. According to the Insurance Regulatory Development Authority's (IRDA) annual report, LIC has a 29 percent share in the total new life insurance policies sold in 2008-09.
The National Housing Bank's (NHB) reverse mortgage loan-enabled annuity scheme has sanctioned 40 loans estimated at Rs 100 crores. The scheme, without the life-long payment benefit, was launched in 2007. According to the NHB, around 7,000 loans amounting to around Rs 1,400 crores have been sanctioned till March 31, 2010. It is expected that the modified scheme that provides life-long annuity to the buyer and his spouse will catch on with the entry of LIC in the segment.
With the existing scheme, LIC will provide payments in the form of annuity to policyholders. Once the assessed value of the house and the loan amount to be disbursed is decided on, LIC will start making payments till the policyholder survives. The bank will make full payment of the total loan amount to the LIC once the policy starts which the insurer can invest as per the company's investment guidelines.
In case of a reverse mortgage, the property owner surrenders the title of the property to a financial institution. The financial institution doesn't pay the entire amount to the owner upfront. On the contrary, it pays out a regular sum each month for the agreed time. The owner gets to stay in the property along with his spouse for their lifetime. Thus, the owner can ensure a regular cash flow in times of need and enjoy the benefit of staying in the property. After the owner's death, the property is transferred to the institution, and not to the heirs.
Reverse mortgage is a relatively new concept in India. The concept is quite popular in developed countries to generate cash flows.
The aim is to make immovable property more liquid and generate returns out of the asset while it is used by the owner. The amount paid out each month is for a specific period of time. The monthly payout depends on the value of the property, the term of the agreement and the rate of payment. The valuation of the property is to be done by professionals. The entire payout mechanism - calculation and computation - depends on the law of probability.
The financing institution has to bear the risk of the individual outliving the agreement. At the expiry of the agreement period, the monthly payments to the owner stops.
Reverse mortgage is of immense use in unlocking the otherwise illiquid asset. Till now, immovable property has been treated as one of the most illiquid assets. Reverse mortgage unlocks the liquidity potential of this asset. It helps the owner get good returns from his immovable property, without having to part with it. The owner can continue with the possession of the property during his lifetime.
A NOVEL CONCEPT
Reverse mortgage is a relatively new concept in India
It is a financial product that enables senior citizens to get tax-free regular income
The concept is meant to unlock the income potential of a property
A significant aspect of this concept is the owner retains possession through his lifetime
It makes property as an investment option work better, especially for risk-averse senior citizens
It is a popular income-generating product in the West
The monthly payout depends on the value of property
The financing institution bears the risk of the individual outliving the agreement
Courtesy by: Times Property Dtd: July 3, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Wednesday, July 28, 2010
Thursday, July 22, 2010
Here are some tips to keep your home vibrant during the monsoon
Gear up to welcome the monsoon this year. There are many things one needs to do to spruce up the home.
Bright colours
Decorate your home in bright colours to liven up your mood. Put away the blues and greens for the summer heat, as they don't go well with monsoons. The monsoon calls for lively bright and warm colours such as yellows, oranges and red to brighten up your rooms. Ideally dark colours should be avoided as the skies are generally overcast and you want whatever light that enters your house to be maximised by light colours and other reflective surfaces. At the same time, avoid very light colours such as white and cream. These colours are very difficult to keep clean during a muddy monsoon.
Keep plants outdoors
With the onslaught of the monsoon, it is the ideal time to keep your plants out in the rain to get watered naturally, It is time for your quilts and heavy blankets to come out from the innermost storage rack of your bed or your cupboard. Store your linen in plastic packets. Use scented sachets while you store them.
Moisture usually attracts cotton, silk and woollen; so it is advisable to use polyester and nylon bed linen. Kids generally tend to run around bare feet at home; it is advisable to place small rugs/mats next to the bed side; it will help to keep the bed clean and dry. Keep selective wall-hangings on walls that would not be affected by moisture. Also observe wall seepage; you can surely hide them with those wall-hangings. Wrought iron materials at home can be treated with anti-rust polish.
Drapes and furnishings
Invest in lace curtains or curtains without lining to ensure that the daylight passing through will bathe the room in a suffused glow. These curtains will allow sufficient amount of light to enter the room simultaneously providing the privacy that you seek. Roll away the carpet. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open.
Invest in bright, multicoloured washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft to the feel as other synthetic fibres but they are very durable, water/static resistant, and offer extremely good value. Nowadays there are a lot of options in the market; a cheaper option to this would be a decorative bamboo or coir mat.
Lights and mirrors
Mirrors hung on the wall can also help brighten up a dreary dark space. Large mirrors in pretty frames hung on the wall can add an elegant focal point to a room while helping to move light around and creating the illusion of a larger space. Bright coloured paint can also help to bounce light around a room. nbour home which aren't bright enough in the fall daylight.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Bright colours
Decorate your home in bright colours to liven up your mood. Put away the blues and greens for the summer heat, as they don't go well with monsoons. The monsoon calls for lively bright and warm colours such as yellows, oranges and red to brighten up your rooms. Ideally dark colours should be avoided as the skies are generally overcast and you want whatever light that enters your house to be maximised by light colours and other reflective surfaces. At the same time, avoid very light colours such as white and cream. These colours are very difficult to keep clean during a muddy monsoon.
Keep plants outdoors
With the onslaught of the monsoon, it is the ideal time to keep your plants out in the rain to get watered naturally, It is time for your quilts and heavy blankets to come out from the innermost storage rack of your bed or your cupboard. Store your linen in plastic packets. Use scented sachets while you store them.
Moisture usually attracts cotton, silk and woollen; so it is advisable to use polyester and nylon bed linen. Kids generally tend to run around bare feet at home; it is advisable to place small rugs/mats next to the bed side; it will help to keep the bed clean and dry. Keep selective wall-hangings on walls that would not be affected by moisture. Also observe wall seepage; you can surely hide them with those wall-hangings. Wrought iron materials at home can be treated with anti-rust polish.
Drapes and furnishings
Invest in lace curtains or curtains without lining to ensure that the daylight passing through will bathe the room in a suffused glow. These curtains will allow sufficient amount of light to enter the room simultaneously providing the privacy that you seek. Roll away the carpet. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open.
Invest in bright, multicoloured washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft to the feel as other synthetic fibres but they are very durable, water/static resistant, and offer extremely good value. Nowadays there are a lot of options in the market; a cheaper option to this would be a decorative bamboo or coir mat.
Lights and mirrors
Mirrors hung on the wall can also help brighten up a dreary dark space. Large mirrors in pretty frames hung on the wall can add an elegant focal point to a room while helping to move light around and creating the illusion of a larger space. Bright coloured paint can also help to bounce light around a room. nbour home which aren't bright enough in the fall daylight.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Here are some tips to keep your home vibrant during the monsoon
Gear up to welcome the monsoon this year. There are many things one needs to do to spruce up the home.
Bright colours
Decorate your home in bright colours to liven up your mood. Put away the blues and greens for the summer heat, as they don't go well with monsoons. The monsoon calls for lively bright and warm colours such as yellows, oranges and red to brighten up your rooms. Ideally dark colours should be avoided as the skies are generally overcast and you want whatever light that enters your house to be maximised by light colours and other reflective surfaces. At the same time, avoid very light colours such as white and cream. These colours are very difficult to keep clean during a muddy monsoon.
Keep plants outdoors
With the onslaught of the monsoon, it is the ideal time to keep your plants out in the rain to get watered naturally, It is time for your quilts and heavy blankets to come out from the innermost storage rack of your bed or your cupboard. Store your linen in plastic packets. Use scented sachets while you store them.
Moisture usually attracts cotton, silk and woollen; so it is advisable to use polyester and nylon bed linen. Kids generally tend to run around bare feet at home; it is advisable to place small rugs/mats next to the bed side; it will help to keep the bed clean and dry. Keep selective wall-hangings on walls that would not be affected by moisture. Also observe wall seepage; you can surely hide them with those wall-hangings. Wrought iron materials at home can be treated with anti-rust polish.
Drapes and furnishings
Invest in lace curtains or curtains without lining to ensure that the daylight passing through will bathe the room in a suffused glow. These curtains will allow sufficient amount of light to enter the room simultaneously providing the privacy that you seek. Roll away the carpet. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open.
Invest in bright, multicoloured washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft to the feel as other synthetic fibres but they are very durable, water/static resistant, and offer extremely good value. Nowadays there are a lot of options in the market; a cheaper option to this would be a decorative bamboo or coir mat.
Lights and mirrors
Mirrors hung on the wall can also help brighten up a dreary dark space. Large mirrors in pretty frames hung on the wall can add an elegant focal point to a room while helping to move light around and creating the illusion of a larger space. Bright coloured paint can also help to bounce light around a room. nbour home which aren't bright enough in the fall daylight.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Bright colours
Decorate your home in bright colours to liven up your mood. Put away the blues and greens for the summer heat, as they don't go well with monsoons. The monsoon calls for lively bright and warm colours such as yellows, oranges and red to brighten up your rooms. Ideally dark colours should be avoided as the skies are generally overcast and you want whatever light that enters your house to be maximised by light colours and other reflective surfaces. At the same time, avoid very light colours such as white and cream. These colours are very difficult to keep clean during a muddy monsoon.
Keep plants outdoors
With the onslaught of the monsoon, it is the ideal time to keep your plants out in the rain to get watered naturally, It is time for your quilts and heavy blankets to come out from the innermost storage rack of your bed or your cupboard. Store your linen in plastic packets. Use scented sachets while you store them.
Moisture usually attracts cotton, silk and woollen; so it is advisable to use polyester and nylon bed linen. Kids generally tend to run around bare feet at home; it is advisable to place small rugs/mats next to the bed side; it will help to keep the bed clean and dry. Keep selective wall-hangings on walls that would not be affected by moisture. Also observe wall seepage; you can surely hide them with those wall-hangings. Wrought iron materials at home can be treated with anti-rust polish.
Drapes and furnishings
Invest in lace curtains or curtains without lining to ensure that the daylight passing through will bathe the room in a suffused glow. These curtains will allow sufficient amount of light to enter the room simultaneously providing the privacy that you seek. Roll away the carpet. Ensure that once rolled, the carpet is covered in a plastic sheet. This will reduce the chances of moisture or accidental leakages damaging the carpet. They often catch fungus if kept open.
Invest in bright, multicoloured washable plastic carpet mats. These are light carpets and will dry faster than a normal fur carpet if it gets wet. These carpets may not be as lavish or soft to the feel as other synthetic fibres but they are very durable, water/static resistant, and offer extremely good value. Nowadays there are a lot of options in the market; a cheaper option to this would be a decorative bamboo or coir mat.
Lights and mirrors
Mirrors hung on the wall can also help brighten up a dreary dark space. Large mirrors in pretty frames hung on the wall can add an elegant focal point to a room while helping to move light around and creating the illusion of a larger space. Bright coloured paint can also help to bounce light around a room. nbour home which aren't bright enough in the fall daylight.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Wood as part of your interior decor adds charm
Recent trends in interior décor showcase an upswing in the use of wooden art effects in modern homes. While from times immemorial, wood has been extensively used in architecture and to some extent in flooring, today's home maker prefers to experiment with wooden show pieces and home accessories that suit individual tastes. "Wood ushers in warmth and has you feel more connected with nature," feels Nihar Mehta, who has fashioned his home away from the humdrum of the city. True to its being among the most versatile of materials, wood can be fashioned into design elements that can accentuate both traditional and contemporary styles.
WOOD IN DECOR
Traditional hangings at the entrance to one's home are fast taking a back seat to more elaborate wooden arrangements. Intricate carvings can frame the doorway and lend a unique individuality to one's home. A couple of large wooden vases with dry arrangements, or a shallow urn filled with water and colourful floating petals can accentuate the warm reception you intend to give to your guests.
Many Indian homes prefer having a well-lit statuette of a widely loved deity as one enters the home. Woodcarvings of gods and goddesses come in a variety of styles and expressions. Should you prefer to keep your religious inclinations more understated, you can opt for figurines of traditional dancers to showcase your love for art, or choose to hang up some interesting looking wooden masks you may have brought back from a recent trip overseas. Choose these artefacts carefully to reflect your personality.
WALL MURALS
Once inside the living room, wood can be employed to extend your current décor scheme. Contemporary arrangements can be accentuated by the deliberate introduction of interesting geometric shapes in corners or on the wall. Glass mounted wooden figurines can double up as side tables, and an interesting wood framed mural on the wall may be a potent conversation-starter. Extend the colour scheme of the room into these focal points. Given the spectrum of colours you can choose from, wooden artefacts can create points of contrast against neutral backdrops, highlighting the look and feel of these spaces.
Experiment with interesting designs in wooden beams and ceiling covers. These can create visual punctuation between living spaces, particularly those that are functionally disjoint. An open kitchen for example, can be framed by a wooden counter with a few oversized wooden spoons on the wall for eye candy, and separated from the dining area by an overhead beam with elaborate carvings of fruits or vegetables. A traditional wooden swing hanging in the living room can separate the sitting area from the dining, and a glass cabinet with tiny wooden show pieces can create a visual partition without cramping up space. Consider experimenting with hand-painted designs on wooden bowls or flower vases to lend a dash of colour and spike up drab arrangements.
Be it a fetish for feng-shui wooden figurines, an indulgence in the opulent retro feel of teak wood on your walls, or the simple desire to go with the tried and tested, wood fuels expression well and you can never go wrong by dabbling in it.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
WOOD IN DECOR
Traditional hangings at the entrance to one's home are fast taking a back seat to more elaborate wooden arrangements. Intricate carvings can frame the doorway and lend a unique individuality to one's home. A couple of large wooden vases with dry arrangements, or a shallow urn filled with water and colourful floating petals can accentuate the warm reception you intend to give to your guests.
Many Indian homes prefer having a well-lit statuette of a widely loved deity as one enters the home. Woodcarvings of gods and goddesses come in a variety of styles and expressions. Should you prefer to keep your religious inclinations more understated, you can opt for figurines of traditional dancers to showcase your love for art, or choose to hang up some interesting looking wooden masks you may have brought back from a recent trip overseas. Choose these artefacts carefully to reflect your personality.
WALL MURALS
Once inside the living room, wood can be employed to extend your current décor scheme. Contemporary arrangements can be accentuated by the deliberate introduction of interesting geometric shapes in corners or on the wall. Glass mounted wooden figurines can double up as side tables, and an interesting wood framed mural on the wall may be a potent conversation-starter. Extend the colour scheme of the room into these focal points. Given the spectrum of colours you can choose from, wooden artefacts can create points of contrast against neutral backdrops, highlighting the look and feel of these spaces.
Experiment with interesting designs in wooden beams and ceiling covers. These can create visual punctuation between living spaces, particularly those that are functionally disjoint. An open kitchen for example, can be framed by a wooden counter with a few oversized wooden spoons on the wall for eye candy, and separated from the dining area by an overhead beam with elaborate carvings of fruits or vegetables. A traditional wooden swing hanging in the living room can separate the sitting area from the dining, and a glass cabinet with tiny wooden show pieces can create a visual partition without cramping up space. Consider experimenting with hand-painted designs on wooden bowls or flower vases to lend a dash of colour and spike up drab arrangements.
Be it a fetish for feng-shui wooden figurines, an indulgence in the opulent retro feel of teak wood on your walls, or the simple desire to go with the tried and tested, wood fuels expression well and you can never go wrong by dabbling in it.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Saturday, July 17, 2010
Greenery and wood as part of the decor theme makes this house unique
When architect Raghunandan Gururaj started designing the home of industrialist S Yogamurthy on Tumkur Road, the challenge was to put in neat geometry within a skew. The plot was of an irregular shape, so the design had to be symmetric and neat. The needs of his client were simple - to make the home spacious and comfortable. "The idea was to keep the lines intact keeping the dynamics of the home in mind," says Raghunandan.
The homeowner wanted to have a lot of wood detailing inside his home. "All the doors and windows are made from teakwood. But I didn't want the staircase railing to be of wood, and hence got it fabricated in my industry," says Yogamurthy, who lives here along with his wife Mamatha and son Siddaiah.
What is unique about this home is the presence of an oasis of greenery in the living room. "I hail from an agricultural backg ro u n d a n d
wanted to have plants indoors, so this portion has no flooring and the plants grow directly from the soil and get direct sunlight from the skylight that has been designed right above," explains Yogamurthy.
According to his architect Raghunandan the idea was to break the monotony of the colour of wood and white hues that were used extensively for the indoors. "The yellow paneling that we have given in the background breaks the regularity of white and brown," says Raghunandan.
The Murthys get quite a few raised eyebrows and comments from visitors to their home when they spot the green oasis in the living room. "We wash the leaves regularly to give the plants the freshness and colour. This part of the home is definitely my favourite," he says.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
The homeowner wanted to have a lot of wood detailing inside his home. "All the doors and windows are made from teakwood. But I didn't want the staircase railing to be of wood, and hence got it fabricated in my industry," says Yogamurthy, who lives here along with his wife Mamatha and son Siddaiah.
What is unique about this home is the presence of an oasis of greenery in the living room. "I hail from an agricultural backg ro u n d a n d
wanted to have plants indoors, so this portion has no flooring and the plants grow directly from the soil and get direct sunlight from the skylight that has been designed right above," explains Yogamurthy.
According to his architect Raghunandan the idea was to break the monotony of the colour of wood and white hues that were used extensively for the indoors. "The yellow paneling that we have given in the background breaks the regularity of white and brown," says Raghunandan.
The Murthys get quite a few raised eyebrows and comments from visitors to their home when they spot the green oasis in the living room. "We wash the leaves regularly to give the plants the freshness and colour. This part of the home is definitely my favourite," he says.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Base rate: Boon for home loan borrowers
From July 1, the banking sector moved into this new interest rate regime. Prabhakar Sinha explains how it can benefit borrowers
Anew interest rate regime kicked off when the country moved to the Reserve Bank of India (RBI) mandated system of base rate, which is likely to be a more objective interest rate benchmark than the one currently followed - benchmark prime lending rate (BPLR) system. It is also believed that compared to the BPLR system, the base rate regime will bring in more transparency in fixing a rate in the banking system.
In the new regime, interest rates will be benchmarked to base rates with all the lending rates linked to the respective base rates of each bank. This is with effect from July 1. The interest rates on your loan have been fixed against the benchmark rate. Assuming that your present interest rate is nine percent and the bank has fixed the base rate at 7.5 percent, your interest rate will be termed as 1.5 percentage points higher than the base rate. Banks did not hike the mortgage rates, instead, they just pegged them as against their respective base rates. In fact, the new system is likely to help home loan borrowers in a big way.
In the earlier regime, the mechanism of fixing the BPLR was not very transparent. Banks used to fix them on the basis of their capacity and willingness to lower the lending rates to the existing customers. For the new customers, they used to bring down the offer rate by increasing the discount to the BPLR.
For example, if a bank has fixed the BPLR at 12 percent and had given loan to a borrower at three percentage points discount to the BPLR, it means it has given a loan at nine percent to the borrower. Unless the BPLR is changed, the borrower will continue to pay nine percent interest rate. Now, when the interest rate in the market goes up, banks increase the BPLR to pass on the rise in the cost of the funds to the existing borrowers.
Suppose the BPLR increases from 12 to 12.5 percent, the interest rates of the existing borrower will increase to 9.5 percent from nine percent. But when the interest rates in the market fall, banks should reduce the BPLR to pass on the benefit of lower interest rates to existing customers also. But it has been seen in the past that banks do not cut the BPLR. So, existing customers continue to pay the higher interest rates.
But, for new customers, they increase the discount to BPLR. So, to pass on the benefit to new customers, banks used to increase the discount. In this example, if the earlier discount was three percent, they used to increase it to 3.5 or four percent. So, the new effective rates used to become 8.5 percent with 3.5 percent discount and eight percent in the case of four percent discount to the BPLR. But, the system used to put existing borrowers at a disadvantage.
In the new system, however, banks will have to fix the base rate on the basis of the cost of funds, which is known to the regulators. The base rate is arrived at by taking into consideration a bank's cost of deposits, its profitability in the previous fiscal year, its administrative costs etc, with the cost of deposits having the highest weight. They will have to visit their base rate every quarter.
In fact, when the rates are rising, they cannot change it immediately but will have to wait for the new quarter to start. This system has already benefited existing customers. Most banks have announced the base rates on July 1 and 2. Just after their announcements, the RBI increased the policy rates to make the funds costly. But, now banks cannot change the base rate for the next three months. So, the existing customers will continue to pay the present rate.
Suppose your home loan is at nine percent and the base rate of your bank is 7.5 percent. This means the bank has fixed your rate 1.5 percent higher than the base rate. Now, as the banks can't change the base rate, you will continue to pay nine percent. But as the cost of fund has gone up, banks might decide to charge higher rates at 9.5 percent from new borrowers by raising the premium over the base rate from the existing level of 1.5 to two percent.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Anew interest rate regime kicked off when the country moved to the Reserve Bank of India (RBI) mandated system of base rate, which is likely to be a more objective interest rate benchmark than the one currently followed - benchmark prime lending rate (BPLR) system. It is also believed that compared to the BPLR system, the base rate regime will bring in more transparency in fixing a rate in the banking system.
In the new regime, interest rates will be benchmarked to base rates with all the lending rates linked to the respective base rates of each bank. This is with effect from July 1. The interest rates on your loan have been fixed against the benchmark rate. Assuming that your present interest rate is nine percent and the bank has fixed the base rate at 7.5 percent, your interest rate will be termed as 1.5 percentage points higher than the base rate. Banks did not hike the mortgage rates, instead, they just pegged them as against their respective base rates. In fact, the new system is likely to help home loan borrowers in a big way.
In the earlier regime, the mechanism of fixing the BPLR was not very transparent. Banks used to fix them on the basis of their capacity and willingness to lower the lending rates to the existing customers. For the new customers, they used to bring down the offer rate by increasing the discount to the BPLR.
For example, if a bank has fixed the BPLR at 12 percent and had given loan to a borrower at three percentage points discount to the BPLR, it means it has given a loan at nine percent to the borrower. Unless the BPLR is changed, the borrower will continue to pay nine percent interest rate. Now, when the interest rate in the market goes up, banks increase the BPLR to pass on the rise in the cost of the funds to the existing borrowers.
Suppose the BPLR increases from 12 to 12.5 percent, the interest rates of the existing borrower will increase to 9.5 percent from nine percent. But when the interest rates in the market fall, banks should reduce the BPLR to pass on the benefit of lower interest rates to existing customers also. But it has been seen in the past that banks do not cut the BPLR. So, existing customers continue to pay the higher interest rates.
But, for new customers, they increase the discount to BPLR. So, to pass on the benefit to new customers, banks used to increase the discount. In this example, if the earlier discount was three percent, they used to increase it to 3.5 or four percent. So, the new effective rates used to become 8.5 percent with 3.5 percent discount and eight percent in the case of four percent discount to the BPLR. But, the system used to put existing borrowers at a disadvantage.
In the new system, however, banks will have to fix the base rate on the basis of the cost of funds, which is known to the regulators. The base rate is arrived at by taking into consideration a bank's cost of deposits, its profitability in the previous fiscal year, its administrative costs etc, with the cost of deposits having the highest weight. They will have to visit their base rate every quarter.
In fact, when the rates are rising, they cannot change it immediately but will have to wait for the new quarter to start. This system has already benefited existing customers. Most banks have announced the base rates on July 1 and 2. Just after their announcements, the RBI increased the policy rates to make the funds costly. But, now banks cannot change the base rate for the next three months. So, the existing customers will continue to pay the present rate.
Suppose your home loan is at nine percent and the base rate of your bank is 7.5 percent. This means the bank has fixed your rate 1.5 percent higher than the base rate. Now, as the banks can't change the base rate, you will continue to pay nine percent. But as the cost of fund has gone up, banks might decide to charge higher rates at 9.5 percent from new borrowers by raising the premium over the base rate from the existing level of 1.5 to two percent.
Courtesy Times Property Dtd. July 16, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Wednesday, July 14, 2010
A high-rise address
Multistoried buildings with about 1500 units or 3.41 million sq ft of supply are expected to come up in delhi by end – 2011, impacting their respective localities favorably.
Sangeeta Kumar’s extended family lives in a three-floor house in the Patel Nagar area, which of late seemed to be having trouble accommodating all the 14 members. That’s why, when Capital Greens was launched in the Shiva Ji Marg area last year, her husband, decided to invest in a 2BHK apartment there. He wanted a separate set-up, but needed to stay close to the family home.
That’s how it’s going to be for Delhi in the next five years. Instead of the bungalows we see now, several prime areas in Delhi such as Hauz Khas, Greater Kailash and Model Town will have a number of high-rise apartments standing tall next to ‘plotted’ homes. In recent times, apartments by private developers have also been launched in the Commonwealth Games Village located near Mayur Vihar, and at Khyber Pass, Shivaji Marg and Greater Kailash.
These high-rise condominiums built by private developers will not only offers discerning buyers the most prestigious addresses in town but will be a class apart from plotted or DDA developments existing in the neighborhood because of their gated character, superior architecture and modern amenities.
“Private Developments in Delhi will have a positive impact on their respective localities in terms of setting the benchmark for premium living, architecture etc. There developments will also have a positive impact on the land prices in these localities,” points out Vineet K Singh of 99acres.com, a realty portal.
According to a report by Knight Frank, approximately 1500 units equating to 3.41 million sq ft of supply are expected to come up in Delhi by the end of 2011. Two-thirds of this supply will come under the 3-BHK category, indicating that developers in the region are optimistic about the premium segment demand.
Projects galore
These new private developments include projects such as Victoria Gardens by the M2K group in the Model Town area, Le Tropicana by the Parsvnath Group in the Khyber Pass area and Queen’s Court and King’s Court premium apartments in Greater Kailash – II by DLF. Anant Raj Industries, famous for its commercial complexes and SEZs, has launched a premium project called DEL37 in Vasant Vihar Extension “that will have 26 plots of four floors each,” says Amar Sarin, executive director of the group.
In October, the group will launch 38 designer apartments in the Hauz Khas area on a two-and-a-half acre plot. These will be 5000 sq ft size apartments and cost in the range of Rs 15 crore. The group also plans for `By invitation only' bungalows on a three-acre plot in Central Delhi. They expect these to be priced over Rs 125 crore each.
As per the Master Plan 2021 norms, there is a provision for constructing townships in Delhi, details of which will be out by the next fortnight. The new guidelines will look at the emergence of new formats in Delhi such as townships spread over 50 to 52 acres, mix of plotted and group housing in plots of 25 odd acres, group housing of 10-17 acres etc. These will all have gated communities, similar to what one sees in Noida and Gurgaon. A lot of mixeduse development -hitherto a rarity in Delhi -is expected to come up in the next five years.
“The MPD 2021 visualises a paradigm shift in not just creation of supply, but also in improving the quality of life through better products and physical and social infrastructure,” says Ruchika Bhardwaj, an analyst with the portal Delhi-masterplan.com.
However, the supply created by these projects will not be excessive, nor will it have a significant impact on the demand-supply situation.
“What may seem valuable supply may not even make a dent in the latent demand that exists in Delhi. These constructions might hardly bring in about 10-15 per cent supply,” points out Anckur Srivastava, chairman, GenReal Property Advisers Private Limited.
The buyers Demand for these premium units is going to come from corporates as money is not a constraint for them. Significant absorption may happen from joint families splitting up to go nuclear. There is an existing local captive demand on account of expansion of families and urbanisation. So, these properties will always find takers.
“The proposed pricing and delivery timelines of these new products would be extremely critical in determining their offtake, since these are end user-driven sales, not investment products. Else, they would continue facing the challenge from emerging inventory of products from the redeveloped plots,” points out Bhardwaj.
Besides, these will be `value for money' residential apartments as one will end up paying for a good location and amenities that one may not have access to if one is living in plotted housing.
People would be willing to pay for these facilities as units offering them are currently limited in number.
According to Srivasttava, these are not “me too” products. Just as in Noida and Gurgaon, there is an attempt to create unique residential offerings, these apartments in Delhi offer a great location payoff and give the consumer “the best of both worlds.“ Also, compared to a plot in Delhi that has been redeveloped, these new housing products move “fast“ and are easy to liquidate. Though buyers are spending more than Rs 4 crore to purchase redeveloped units, they are still facing problems relating to parking and security. The new developments are designed as organised units offering a neighbourhood environment and a lifestyle, points out Anoj Tewatia of Design Forum International architects.
Also, it may be difficult to get a completion certificate for a traditional floor but for a new development of this nature by a builder of repute, property is cent per cent legal.
The price benefit There is also the additional benefit of price. These properties will certainly see a premium compared to plots that have been redeveloped as floors, the buyers of which have to apply for separate club membership, provide for their own security and power.
They also don't have access to common areas.
Such housing products will go a long way in changing the character of a particular area where they come up. Once offered in public domain, these offerings will find ready takers because these are done up aesthetically and provide for modern amenities. However, once more supply is available in Delhi following implementation of the new Master Plan guidelines, the novelty factor may wear off.
Going forward, Delhi as an investment destination is a very exciting city. But a word of caution though ¬ appreciation will only be 5-10 per cent for better quality products in new areas released under the Master Plan.
“While some private developments in Delhi, which are central and where land supply is scarce will continue to see appreciation over the mid-term, private developments in the existing urban areas of Delhi will face serious competition from areas which have been brought under the urban fold as per the Master Plan. Thus, for people creating products close to the fringes of the capital, pricing will be a big challenge,” adds Srivastava.
Courtesy by: htestates Dtd: July 10, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Sangeeta Kumar’s extended family lives in a three-floor house in the Patel Nagar area, which of late seemed to be having trouble accommodating all the 14 members. That’s why, when Capital Greens was launched in the Shiva Ji Marg area last year, her husband, decided to invest in a 2BHK apartment there. He wanted a separate set-up, but needed to stay close to the family home.
That’s how it’s going to be for Delhi in the next five years. Instead of the bungalows we see now, several prime areas in Delhi such as Hauz Khas, Greater Kailash and Model Town will have a number of high-rise apartments standing tall next to ‘plotted’ homes. In recent times, apartments by private developers have also been launched in the Commonwealth Games Village located near Mayur Vihar, and at Khyber Pass, Shivaji Marg and Greater Kailash.
These high-rise condominiums built by private developers will not only offers discerning buyers the most prestigious addresses in town but will be a class apart from plotted or DDA developments existing in the neighborhood because of their gated character, superior architecture and modern amenities.
“Private Developments in Delhi will have a positive impact on their respective localities in terms of setting the benchmark for premium living, architecture etc. There developments will also have a positive impact on the land prices in these localities,” points out Vineet K Singh of 99acres.com, a realty portal.
According to a report by Knight Frank, approximately 1500 units equating to 3.41 million sq ft of supply are expected to come up in Delhi by the end of 2011. Two-thirds of this supply will come under the 3-BHK category, indicating that developers in the region are optimistic about the premium segment demand.
Projects galore
These new private developments include projects such as Victoria Gardens by the M2K group in the Model Town area, Le Tropicana by the Parsvnath Group in the Khyber Pass area and Queen’s Court and King’s Court premium apartments in Greater Kailash – II by DLF. Anant Raj Industries, famous for its commercial complexes and SEZs, has launched a premium project called DEL37 in Vasant Vihar Extension “that will have 26 plots of four floors each,” says Amar Sarin, executive director of the group.
In October, the group will launch 38 designer apartments in the Hauz Khas area on a two-and-a-half acre plot. These will be 5000 sq ft size apartments and cost in the range of Rs 15 crore. The group also plans for `By invitation only' bungalows on a three-acre plot in Central Delhi. They expect these to be priced over Rs 125 crore each.
As per the Master Plan 2021 norms, there is a provision for constructing townships in Delhi, details of which will be out by the next fortnight. The new guidelines will look at the emergence of new formats in Delhi such as townships spread over 50 to 52 acres, mix of plotted and group housing in plots of 25 odd acres, group housing of 10-17 acres etc. These will all have gated communities, similar to what one sees in Noida and Gurgaon. A lot of mixeduse development -hitherto a rarity in Delhi -is expected to come up in the next five years.
“The MPD 2021 visualises a paradigm shift in not just creation of supply, but also in improving the quality of life through better products and physical and social infrastructure,” says Ruchika Bhardwaj, an analyst with the portal Delhi-masterplan.com.
However, the supply created by these projects will not be excessive, nor will it have a significant impact on the demand-supply situation.
“What may seem valuable supply may not even make a dent in the latent demand that exists in Delhi. These constructions might hardly bring in about 10-15 per cent supply,” points out Anckur Srivastava, chairman, GenReal Property Advisers Private Limited.
The buyers Demand for these premium units is going to come from corporates as money is not a constraint for them. Significant absorption may happen from joint families splitting up to go nuclear. There is an existing local captive demand on account of expansion of families and urbanisation. So, these properties will always find takers.
“The proposed pricing and delivery timelines of these new products would be extremely critical in determining their offtake, since these are end user-driven sales, not investment products. Else, they would continue facing the challenge from emerging inventory of products from the redeveloped plots,” points out Bhardwaj.
Besides, these will be `value for money' residential apartments as one will end up paying for a good location and amenities that one may not have access to if one is living in plotted housing.
People would be willing to pay for these facilities as units offering them are currently limited in number.
According to Srivasttava, these are not “me too” products. Just as in Noida and Gurgaon, there is an attempt to create unique residential offerings, these apartments in Delhi offer a great location payoff and give the consumer “the best of both worlds.“ Also, compared to a plot in Delhi that has been redeveloped, these new housing products move “fast“ and are easy to liquidate. Though buyers are spending more than Rs 4 crore to purchase redeveloped units, they are still facing problems relating to parking and security. The new developments are designed as organised units offering a neighbourhood environment and a lifestyle, points out Anoj Tewatia of Design Forum International architects.
Also, it may be difficult to get a completion certificate for a traditional floor but for a new development of this nature by a builder of repute, property is cent per cent legal.
The price benefit There is also the additional benefit of price. These properties will certainly see a premium compared to plots that have been redeveloped as floors, the buyers of which have to apply for separate club membership, provide for their own security and power.
They also don't have access to common areas.
Such housing products will go a long way in changing the character of a particular area where they come up. Once offered in public domain, these offerings will find ready takers because these are done up aesthetically and provide for modern amenities. However, once more supply is available in Delhi following implementation of the new Master Plan guidelines, the novelty factor may wear off.
Going forward, Delhi as an investment destination is a very exciting city. But a word of caution though ¬ appreciation will only be 5-10 per cent for better quality products in new areas released under the Master Plan.
“While some private developments in Delhi, which are central and where land supply is scarce will continue to see appreciation over the mid-term, private developments in the existing urban areas of Delhi will face serious competition from areas which have been brought under the urban fold as per the Master Plan. Thus, for people creating products close to the fringes of the capital, pricing will be a big challenge,” adds Srivastava.
Courtesy by: htestates Dtd: July 10, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
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