Big ticket realty deals

Source : ET :28 May 2010, 0217 hrs IST,



Mumbai
A high-end apartment located in Mahalaxmi was sold for a total cost of Rs 12,60,00,000. The apartment, admeasuring 4,000 sqft, commanded a capital value of approximately Rs 31,500 per sqft. It is situated in an under-construction project and has therefore commanded only marginally lower value than the capital values prevalent in this region.

The current average rental value for the location ranges between Rs 34,000 and Rs 55,000 per sqft. With many new residential projects coming up here, the location has been witnessing a steady growth in demand since the past few months. Backed by positive demand, the capital values have remained stable in the last quarter and are expected to strengthen in short-to-medium term.

Central Mumbai has the advantage of being conveniently located — almost equidistant from central business district (CBD) and the other major business centres in Bandra–Kurla Complex, Andheri and Lower Parel — and thus is a preferred location for expatriates and senior executives. The location also boasts of proximity to social infrastructural facilities like retail and entertainment centres, healthcare and education centres.

Pune
An apartment covering an area of 2,800 sqft was taken on lease by a multinational corporation for use by its senior management. Located in Shivaji Nagar, the apartment was leased at a monthly rental value of Rs 1,40,000 per month.

The rental value commanded by the apartment is well within the range for high-end properties in this area, which ranges between Rs 120,000 and 2,00,000 per month. The rate commanded by the apartment, located in a high-end residential building, is in line with the existing values in the location. North-eastern Pune, including Karadi, Kalyani Nagar and Bund Garden Road, has traditionally seen high demand from expatriate and senior corporate executives in the city.

Rental values in this location have remained stable over the past few months as demand has seen some steady increase. With economic stability and resurgence of senior executives’ presence in the city, demand for lease of high-end property is on the rise.

Bangalore
A high-end residential standalone bungalow, spread across 2,400 sqft, was sold at a total price of Rs 2,60,00,000. A part of a gated community, the bungalow is situated in the peripheral location of Whitefield and commanded an average price of Rs 10,800 per sqft.

This residential unit has, however, commanded a much higher capital value due to the fact that this is an exclusive housing project being developed by a national developer and provides all the essential amenities. Whitefield, as a location, has been witnessing interests from senior managements of large Indian and multinational corporates, along with many expatriates, due to the area’s rapid growth as a corporate office location.

In addition, the location also enjoys good connectivity through excellent road network. The location is also developing into a self-sustaining micro-market with many education centres, retail and entertainment options as well as healthcare.

Contributed by Cushman & Wakefield, a real estate consultancy firm

Stalin launches e-stamping project

State government's attempt to root out fake stamp papers

M.K.Stalin
 Source : The Hindu, May 28,2010

CHENNAI: For complete eradication of fake stamp papers in circulation, the State government on Thursday launched an e-stamping project for registration of of documents.

As a pilot project, it is being implemented in nine sub-registrar offices in Chennai and will subsequently be extended to other registration offices in the State.

e-stamping can be used for execution and registration of any type of documents such as sale, mortgage etc. A single e-stamp suffices for any denomination. According to the Stock Holding Corporation of India, which has been authorised to implement the project, e-stamping of certificates is just like stamp papers, which are generated online. Registration of documents is done after verifying the payment of stamp duty online.
e-stamping has its own security features such as unique identity number , 2 D barcode, microprint and locking system.

Collection centres are being set up in all sub-registrar offices in the city. The registrants have to submit a duly filled-in application form. Stamp duty can be paid in these centres by cash/DD electronic money transfer system. Facility has also been provided to registrants for verifying the details given by them through a model certificate. Documents prepared through e-stamping, which has enriched security features, can be executed and registered in the office concerned without any difficulty. Online facility is available for verifying the genuineness of the certificate and registration will be completed by the registering official then and there.

On Thursday, Mr. Stalin issued e-stamps to 44 registrants. The facility is now available in sub-registrar offices in Chennai South, T. Nagar, Chennai Central, Triplicane, Mylapore, Chennai North and Royapuram.
Tourism and Registration Minister N. Suresh Rajan; Nasimuddin, Secretary, Commercial Taxes and Registration Department; and R. Sivakumar, Inspector General of Registration, were present.

Lodha picks up MMRDA’s Wadala plot for Rs5,723 crore

 Source : Pallabika Ganguly :ML : May 25,2010

MMRDA had set a reserve price of Rs50,000 per sq metre (for a minimum price of Rs1,980 crore) for the property. The plot, situated at Wadala in central Mumbai, has a permissible built-up area of 4,95,000 sq ft and 14 top property developers were in the fray

The MMRDA (Mumbai Metropolitan Region Development Authority) today auctioned a 25,000 sq metre commercial plot at the Wadala Truck Terminal (WTT). The Lodha Group won the bid at Rs5,723 crore. The developer will pay 10% of this amount upfront and the balance will be paid over five years at an interest rate of 10%. The plot has a permissible built-up area of 4,95,000 sq metre and the developer is allowed 19.8 FSI on the plot of land. It will be given out on a 65-year lease.

“Lodha Developers won the deal at Rs5,723 crore with interest. We are also granting 19.8 FSI to the developer,” said SVR Srinivas, additional metropolitan commissioner, MMRDA.

MMRDA had set a reserve price of Rs50,000 per sq metre and was seeking a minimum price of Rs1,980 crore for the property. It was finally sold at Rs81,818 per sq metre. There were 14 bidders in the fray: Sheth Infrastructure Ltd, Shriram Urban Infra Ltd, DB Realty, Reliance Infra, Bhakti Realty, Indiabulls, Parinee Developers, Godrej Pvt Ltd, Ackruti Ltd, Sunteck Realty, Gaurhati Estate, Lodha Crown, Raheja Universal and Acne Housing.

Out of these bidders, apparently only four turned up for the auction. Sources told Moneylife that Sunteck had bid Rs70,002 per sq metre and Indiabulls had bid Rs67,222 per sq metre.

“It is too high a price that the developer has paid for this land. However, the winner has got more built-up area to construct and the location of the land is not in a crowded place and hence construction with high FSI can easily come up,” said Pankaj Kapoor, founder, Liases Foras.

Moneylife had earlier reported on how MMRDA had failed to attract bidders for a prime commercial real-estate property deal in the Bandra-Kurla Complex (BKC) due to the high price quoted by it. There were around eight prospective bidders—including developers and banks—in the fray.

Currently, residential prices of properties in Wadala are around Rs8,000 per sq ft-Rs12,000 per sq ft.

Vasthu based layout for residense

Eco-friendly floors

Sleek: Bamboo floor at an office in Hyderabad.

Looking out for options to make the flooring of a residence look natural? If yes, eco-friendly flooring can be the answer.

According to Sudeep Srinivas, an architect in Bangalore, in an eco-friendly flooring, the materials used for the flooring are environment-friendly. 

These are usually natural materials that are not processed in industries. These include bamboo, cork, stone and even reclaimed and sustainable wood. Materials such as glass and metal tiles are also considered eco-friendly if they are recycled.

Bamboo floors, where the raw material comes from the bamboo plant, are hard and durable. 

These are easy to clean, sustainable and attractive. However, the choice of colours is limited. Bamboo flooring is rarely done in India due to lack of adequate number of skilled workers. It is mostly done in beach houses and farm houses. The flooring is best in places where the climate is moderate, says Ganesh Kumar of Metaskapes, Chennai.

In India, it is a premium product for those who care for aesthetics and ethnic look. The bamboo is available in the North-East region of the country and also imported. According to Mr. Ganesh, the cost of bamboo flooring is comparable to the other floorings.

In the case of cork flooring, it is made out of the bark of cork oak tree. It is durable, gives a natural look to the house and is also scratch-resistant. However, cork floors require high maintenance and they are not water- resistant.

Floors made out of recycled materials such as glass are economical and eco-friendly. “Glass is used both in the exteriors and interiors but it is better used in the interiors. Toughened glass is a premium product in the market.

The glass goes through several processes like edging, frosting and staining. The glass has to be laid by skilled workers. Use of glass is gaining popularity in India. This is because of the transparency, depth and the superior glossiness. People go in for the plain and stained glass in India. The laying of glass requires skilled workers”, says Senthil K C Kumar of How Solutions, Chennai.

Granite, marble, slate, sandstone and limestones are the types of stones used for stone flooring. According to T.R.V Sundar of Architectural Granite and Marble, “People in India go in more by budget and uniformity.

Most of them are not aware of the various colours available. There are almost 155 colours of granite available in India.” Stone floorings are natural and durable. “They also provide livelihood to many, from the quarrying of these stones to laying.” Covered with “celesta” the flooring has a life of 10 years even if they are not maintained.

Rammed earth flooring, which is a mix of mud and clay, is another type that is eco-friendly.

“It is a traditional type of flooring, which if done properly gives the floor a beautiful finish, design and pattern. 

It is done mostly in places where people walk a lot like hotels. Rammed earth flooring is also cost - effective in the case of residential houses” says Mr. Ganesh.

Speaking on the advantages and disadvantages of eco friendly flooring Mr. Srinivas says that the major advantage of using eco-friendly materials for flooring is that these keep the place cool and also give a natural look. Price of the eco-friendly materials is also low.

“The use of eco-friendly materials is the sensible and sensitive thing to do at a time when global warming and green house effects are the burning topics.”

Source  :NIKHITA JOSE  ,The Hindu,Coimbatore,May 22,2010

Builders line up innovative schemes for potential customers

Deal time: Free modular kitchen scheme, interior designing and more schemes await buyers.  

Necessity is the mother of invention, it is said. And perhaps driven by this maxim, many real estate developers and builders in city are coming up with innovative schemes and marketing strategies to catch the attention of potential customers in these post-boom days.

So much so, customers now have wide variety of choice to pick the best scheme and venture that suits their budget. T

o name a few such schemes, SMR Vinay Constructions offers free registration and interior designing for those buying a flat at their latest projects in Kukatpally, Miyapur and Gachibowli.

Aparna Constructions has slashed its price for its projects Kanopy in Medchal and Sarovar in Gachibowli. 

As an introductory offer it had even offered monthly rent of about Rs.15,000 for buyers till possession of the flat. And then there is Cybercity's free modular kitchen scheme for the first 100 bookings at its venture Rainbow Vistas near Hitec City MMTS station.

These days customer is the king and builders have to convince them about the price quoted for the projects. Initiatives in the form of schemes act as a catalyst in attracting their attention and influence their decision making, observes D.S. Prasad, Director of Aparna Constructions. 

“These schemes do help in increasing enquiries and generating sales. For our Sarovar project, the rent free scheme fetched us 70 bookings in one month and about 130 flats were sold. Similarly, for Kanopy project there were 690 visitors and over 3,200 calls. Its boosts our morale as well,” says Mr. Prasad.

Also, they benefit both the parties. While, builders hope for good business, buyers are provided with extra benefits. The price quoted for Rainbow Vistas project is Rs. 2,750 per sq. ft, of which, Rs.150 per sq. ft is spent on modular kitchen and wardrobes. Such offers increase curiosity among customers, adds Uttam Korupulu, Chief Executive Officer of Cybercity Builders and Developers.

    

Price difference

“Every customer would like to have attractive furniture in his new home and we bargain with manufacturers and procure the kitchen furniture and wardrobes in huge volumes at much lesser price. The price difference is offered to the customers through the scheme,” explains Mr. Uttam.

It's all about presenting the projects in a new way and attracting customers. Most customers still expect the prices to come down and adopt wait-and-watch methods.

But the real story is - schemes are announced to declare that the prices have already hit rock bottom and it is good time to purchase, informs S. Rami Reddy, Managing Director of SMR Vinay Constructions. 

It is offering free registrations and interior designing. A 2 BHK flat is priced about Rs. 35 lakh and 3 BHK range varies from Rs. 40 to 70 lakh. The free registrations and interior design schemes works out in saving about Rs. 4 lakh for a customer.

This apart, if the customer is not happy with the scheme, there is the option of availing the scheme amount as discount in the original price. There has been 25 per cent conversion from enquiries to sales, he adds. 

Due to financial constraints, many projects are being developed at 15 per cent below the break-even and this is done just to ensure regular cash flows.

For potential buyers this the perfect time to purchase, advises Mr. Reddy.

Source :S. SANDEEP KUMAR ,The Hindu,Chennai,May 22,2010

Portal for real estate agents

To its real estate online platform, IndiaProperty.com, a division of Consim Info, has added what it describes as the first and largest exclusive online portal for real estate agents. 

The new portal ‘IndiaPropertyAgents.com' provides one stop solution to easily find agents and offers vast database of agent's properties, both for selling and buying, across the country, according to a statement issued here.

Speaking on the occasion of the launch, Murugavel Janakiraman, Founder and CEO of Consim, said “ this portal will surely give them their due recognition and bring more value to the agents.”

A new range of high-end apartments redefines the word luxury

Last word in luxuryLandscaped exteriors, elegant interiors, designer gyms   

A new breed of high-end apartments in the city is redefining the word ‘luxury'. Having a pool and a gym in an apartment complex used to be something to write about. Not anymore.  

Now, builders in the city are talking about beauty parlours and bowling alleys, private cinema halls and personal swimming pools, ‘smart homes' that you can control with your cellphone, and apartment designs inspired by Picasso's Cubist art. 

 

And that doesn't even cover the basic amenities that these buildings assure you — from 100 per cent power back up and piped gas to wi-fi across the entire complex and special water supplies. 

“Our focus in terms of design is to be a lifestyle product, based on the attitudes and aspirations of people living in Chennai,” says Sudarshan K.S., COO of the Ozone Group about Metrozone, the 42-acre property they are developing in Anna Nagar.                 

So, for instance, given the perception of Chennai as being more traditional, the Metrozone complex will have two pools just for women, “so they will feel comfortable”, as well as an exclusive section for ladies in the gym. 

                     

As for the newer lifestyle amenities that these builders are introducing in their properties, the list is ‘limitless' as T. Chitty Babu, Chairman and CEO of Akshaya Homes puts it. Common swimming pools, steam rooms and saunas, Jacuzzis and massage rooms, squash courts and tennis courts… that's all passé. 

 

Now, for instance, True Value Home's Lumbini Square offers a rock climbing surface and simulated golf (virtual golf in which you tee off before a large screen), Vijayashanthi's ultra-exclusive ‘The Art' coming up on Kothari Road will offer a beauty parlour and a discotheque, and all three — Akshaya, True Value Homes and Vijayashanthi's newest projects will have private cinema halls, varying in size between 20 to 75-seaters. 

 

“We're talking to cinema hall operators to put in two shows daily during the week, and three during the weekend at our 75-seater hall at Ouranya Bay,” says Nakshatra Roy, director (corporate operations), TVH.

And then, there's the next big thing in luxury — having such amenities all to yourself. “We're working on a property where every apartment will have its own pool: 36 units and 36 pools,” says Babu.

Similarly, Roy says an upcoming property of TVH in Kotturpuram will have a pool and — wait for it — a spa in each apartment, while Vijayashanthi's ‘The Art', inspired by Picasso's Cubist paintings, will feature an art gallery in the glass-floored, centrally-lit atrium of each apartment.

“You will have statues and artwork studded with real pearls, diamonds and rubies, placed in the atrium,” Suresh Jain, MD of Vijayashanthi.

It isn't all just about spas and high-art. These new complexes also address practical issues such as housing for guests and space for servants. For instance, every tower of the Metrozone complex has a guest apartment, and the clubhouse at Lumbini Square has 15-20 rooms just to house guests of residents. And ‘The Art' has innovative arrangements for servants. 

“There will be servants' quarters for each flat, but it will have a separate entrance, staircase and lift while remaining connected to the kitchen for ease of use,” says Jain. “Similarly, there will be a separate, fully-loaded room downstairs for drivers with a TV, a cafeteria, and beds provided in case of overnight stays.”

Nothing gets as much attention as security. Akshaya Homes' Aikya in Gandhinagar has a security system like something out of a Bond movie. A chip on your car sets off sensors on the main gate from a distance of seven metres to for it to open for your arrival. The lift functions on biometrics, using your palm or fingertips print.

“And you can access the surveillance cameras placed throughout the property, from the gate to the main lobby directly from your PC,” says Babu.          

If that's not hi-fi enough for you, there's the Integrated Building Management System at TVH's upcoming project that will have a computer hub in the house sync-ed to your cellphone. “So you can switch on the A/C at home when you're leaving the office, for example,” says Roy. The building will also ‘think' for you — turn on your kettle at 5 a.m. or turn off a light in a vacant room. 

         

Naturally, all these hi-end buildings offer you almost unlimited back-up in case of blackouts, most provide you wi-fi in your apartment and throughout the grounds, and piped gas is a common feature.

 

Even putting in your AC has become like ‘plug-n-play' at Metrozone.

“We do all the pre-conduiting and embedding of the pipes so your AC can be fitted and running in 30 minutes,” he says. 

                        

It's all, as he puts it, about making things as easy, and of course, as absolutely luxurious as possible.

Source :DIVYA KUMAR,The Hindu,May 22,2010

Watch out for capital gains tax

The recovering realty sector has given a spurt to property transactions in recent times. However, many investors are ignorant that some of these transactions attract capital gains tax.

Tax consultants say that “house property” defined under the Income Tax Act consists of any building, flat or shop and the land attached. Thus, the sale of property attracts either short- or long-term capital gains tax.

Short-term capital gains are calculated if immovable property is sold or transferred within three years of its purchase. Suppose if a person buys a house for Rs.10 lakh and sells the house for Rs.15 lakh in the same financial year, the capital gains will be Rs.5 lakh.

The earnings will be included in heads “other incomes.”
The tax will be calculated on the basis of the tax slab for each individual. For the year 2010-11, the tax on income will be 10 per cent for incomes up to Rs.5 lakh; 20 per cent for incomes between Rs.5 lakh and Rs.8 lakh; and 30 per cent for incomes above Rs.8 lakh.

The tax is basically assessed at normal rates applicable to the total income. Brokerage charges are deduced from the amount.

However, there will be no tax on the capital gains if the house is on a notified agriculture land outside the municipal area and 8 km from the city or town. Long-term capital gains are income from selling or transferring property after holding them for more than three years.

This is different in the case of shares, debentures and mutual funds units, where the period of holding is only one year. The long-term capital gains tax has been fixed at 20 per cent plus 3 per cent education cess. If the house is sold for Rs.10 lakh now, the long-term capital gains tax will be charged on Rs.3.68 lakh (Rs.10 lakh – Rs.6.32 lakh), the difference between the amount calculated for 1981 and 2009-10, Mr. Menon says.

There are several exemptions as well. A deduction of Rs.1.6 lakh is given if the person has no other income.

The tax deduction is Rs.2.4 lakh in the case of senior citizens having no other income. No tax has to be paid if the land falls under a notified agricultural area, Mr. Menon says.

Source: BIJU GOVIND :The Hindu, chennai, May22, 2010

Tap the Sun for sustained power

Innovative saving: Street lights that work on solar power in Odanthurai. The Panchayat in Karamadai block of Coimbatore district has gone for innovative methods to save on the cost of power. It operates a 6HP centrifugal pump for its water supply scheme using the power from the biomass gasifier plant.   

The Sun has been an object of fascination since time immemorial and continues to be so.

The process of transforming naturally-received sunlight into mechanical, chemical and electrical power is known as solar energy. The radiant heat and light of the sun has been harnessed by mankind since ancient times using ever evolving technologies. Experts consider solar energy the best natural and renewable source of energy.

So how do we run a house using solar energy? Yes, a whole house with its multifarious needs. The answers to this question are already known but it always boils down to how well we act on that knowledge.

Fossil fuels are depleting fast and there is a need to develop measures that will enable us to tap solar energy on a larger scale. We have invented numerous devices, some complex and others simple, in the principle of tapping sunlight to make our lives easier. In these is the solution to our question.

The solar water heater is one such gadget that is getting popular. Cooking appliances and others that run on solar energy are indeed helpful. “To my knowledge, solar energy is not being used completely to run a house though solar water heaters are being used extensively. Some also generate electricity using sunlight,” says R. Umapathy, an architect in Bangalore. Mr. Umapathy, however, adds: “In the coming years we may see more using solar energy.”

Major deterrent

Solar water heaters, though popular, have certain inherent problems. A solar water heater costs between Rs.10, 000 and Rs.20,000. A solar device to generate 1 KV of electricity will cost Rs. 2 lakh to Rs. 3 lakh. These hefty tags that come with the devices are the major deterrent for the volume growth.

This is a worldwide trend and not a phenomenon restricted to India, according to S. Srinivas, Principal Counsellor at the CII-Sohrabji Godrej Green Business Centre.

However, what has now caught the imagination of builders around the globe is the concept of ‘Green buildings'. Structures that can tap solar energy for various needs are designed to suit the locality. One such shining example is the CII Godrej building in Hyderabad. The building requires 500 units of electricity a day. About 25 per cent of this is met from solar energy. A 30,000 sq.ft. building in Chennai has an air-conditioning system that runs on solar energy. “Well, the secret to this building is an integrated photovoltaic cell which helps generate electricity,” says Mr. Srinivas.

On the advantages and disadvantages of using solar power, Megha Shenoy who works on a research project with Resource Optimization Initiative, a non- profit entity, says: “After the initial cost the energy from the sun is practically free. Solar energy does not require fuel. It is clean, renewable and sustainable. As it can operate independently it can be installed in the remotest places. They operate silently, have no moving parts, do not release offensive smells. ”.

The initial cost is the main disadvantage of installing a solar energy system, largely because of the high cost of materials used. As energy shortages are becoming common, solar energy is also becoming more price-competitive.

Source :NIKHITA JOSE,Photo: K. Ananthan ,The Hindu, Chennai,May 22,2010

calculating property tax -Kozhikode Corporation

Doing the math:The plinth area of the house, the construction material used and the location are among the factors taken into the account for calculating property tax.   Source : BIJU GOVIND,The Hindu, May 22,2010, Malabar 

Property tax is a tax based on the value of real estate and personal property. 

It is one of the major revenue earners for the Kozhikode Corporation. However, many house owners are unaware how this tax is calculated.

The procedures for getting the property tax approved from the civic body runs into several stages. Initially, a revenue inspector conducts a site inspection soon after the house owner submits an application to the Corporation that his or her house has been completed.

Based on the Reasonable Letting Value (RLV), the revenue inspector assesses the value of the property. The value is determined on the basis of the Annual Rental Value (ARV) — the rental fee the building will get in a year. Several factors, such as the plinth area of the house, the construction material used and the location, are considered for ascertaining the ARV. The revenue inspector then prepares the ARV and submits it to the authorities.

The ARV is calculated both on the land and the building. But the rent on the land will be for a month and on the building for the remaining 11 months. Suppose if the rent determined is Rs.1,500 a month, the value of the rent on the land will be Rs.1,500 and value on the building, Rs.16,500 (Rs.1,500 x 11 months). Now, the total ARV will be Rs.18,000. The ARV will be higher for a commercial building. 

However, the tax will be calculated in a different format.

The civic body will give a 20 per cent rebate on the ARV if the house owner occupies the house. The property tax is calculated based on the location of the house specifically on the revenue ward system. There are 39 revenue wards for the 55 electoral wards of the Kozhikode Corporation. Revenue wards from 1 to 25 are located in the town area and the remaining in the extended areas of the civic body.

To simplify, there are 27 wards in the old municipal area and the remaining 28 are those merged with the Corporation later. The property tax will be 21.25 per cent of the total value for houses located in the town area and 15 per cent of the total value on the extended areas.

If the house owner is unsatisfied with the property tax determined, he or she can take up the issue within 15 days with the Corporation secretary, who is authorised to reduce the amount by up to 10 per cent. 

If the house owner is still unhappy, he or she can appeal within 30 days to the Standing Committee on Tax Appeal, which has been empowered to reduce the amount to 20 per cent of the tax earlier fixed.

One has to pay the property tax twice a year, in March and in September. Five per cent of the amount the Corporation earns from property tax will have to be given as library cess to the State Library Council.

The Corporation earns over Rs.15 crore each year from property tax. It anticipates an income of Rs.18.5 crore this fiscal. This is high compared to the other taxes the Corporation receives, such as income from rent of buildings and land, Rs.8 crore; advertisement, Rs.9.5 crore; construction activities, Rs.4.75 crore; and shop licences, Rs.1 crore.

New system

Corporation officials say the ARV is an old system adopted since 1984 to calculate the property tax, which many believe is unscientific. Last year, the State government came up with a proposal to revise the property tax structure allowing the local bodies to collect tax based on the carpet area of the building.

Currently, the new tax structure has been frozen after the Opposition raised the issue stating that the government order on the new system was unconstitutional. One of the complaints was that the government had not framed rules and notified them. Besides, builders had opposed the new tax regime.

Nearly 1,64,000 assessments, including commercial establishments, will have to be made in Kozhikode with the adoption of the new system, officials say.

The new system has been designed dividing each civic body into primary, secondary and tertiary zones, depending on the location of places such as those having government buildings, educational institutions, commercial complexes, markets, bus and railway stations and hospitals. 

The Corporation has already classified these zones after undertaking a study based on the development activities in all the wards.

Thus, a single ward will have further divisions based on the urban nature and infrastructure in an area.

The proposal for an area in the primary zone is between Rs.8-20 a square metre (1 sq.m = 10.76 sq.ft) for residential buildings; Rs.16-40 for industries and Rs.32-160 for commercial buildings. 

Concession rates have been proposed for secondary and tertiary zones.

Turn your home into paradise

source :DIVYA KUMAR,The Hindu, May 22,2010, Bangaluru

The modern landscaped house garden is a multi-tasker. No more plain vanilla patch of lawn with a handful of flowering shrubs on the side. These gardens are being designed with multiple facets — play areas for children, sit-outs for the adults and party lawns for guests — to meet the needs of the entire household, and built in a variety of ways, from ‘vertical gardens' to delicately-lit rooftop gardens, to cope with the rapidly shrinking urban spaces.

“Nowadays, homeowners are much more aware of what can be achieved with landscaping,” says landscape architect K. Raghuraman. “It's all about creating quality living spaces.”

One of the foremost requirements, quite naturally, is using landscaping to provide a sense of privacy in the midst of the hustle and bustle of our metro.

“There may be a slum behind the backyard or a school nearby and there's too much noise,” says Sekar James of Master Plan Landscape Architects. “You've got to take these demands of an urban space into consideration while planning the garden.”

So, some people opt for netting or mesh (covered tastefully with pretty creepers) above their walls (“some up to 30 ft. high,” says Raghuraman). Others, such as Chandra Sankar, opt for a more natural solution — tall trees all around. “I love trees in general, and planted as many as possible to cut out the heat and dust,” she says of her graceful home.

A screen

“The Ashoka trees have been there a long time, I wanted a screen all around the periphery of the garden and they do the job perfectly.”

The other big one is using landscape architecture to ‘create' space for greenery, even when there isn't much to start with. “People go in for a ‘ vertical garden', where you build pergolas and let flowering creepers grow on them, or go for wall-hanging plants,” says Raghuraman.

The chronic lack of space in cities — combined with the need for privacy — means that one of the most popular trends in landscaping of homes is the terrace or roof garden. “People are doing landscaping on all levels — not just on the roof, but also on terraces,” says K. Senthil Kumar, landscape architect.

No limits: Separation of garden areas with different utilities is the cornerstone of modern home landscaping  

There's pretty much no limit to what you can do, as long as you make the terrace or roof structurally sound, he says: 

“You have to ensure that the construction is water-proof and that drainage is good, and then you can put in lawns or wooden decks, flowering shrubs or tall trees, water pools or cascades.”

Dr. Abysam, for instance, has opted for one in his newly constructed home. “I believe that only greenery gives life to a building, so I've used whatever little space I could to create gardens,” he says. 

In addition to his small showpiece front garden, all water and bamboo, he's opted for a landscaped terrace on the first floor. “It's a completely private area for the family, with grass surrounded by flowering shrubs and creepers,” he says.

Many uses

This separation of garden areas with different utilities is the cornerstone of modern home landscaping. 

“It caters to the living style of the owners — you might have a barbeque area for the man of the house, a quiet area for the lady of the house to sit and read, a corner for the children to play and even an area for the dogs,” says James.

As Ms. Sankar puts it, “Just a lawn would be boring, wouldn't it? You need to cut and break the monotony.” 

So her garden consists of a quiet sit-out in the front with cane furniture next to the colourful play area for children, and completely screened off from the main entrance, a private lawn for garden parties.

And then there's that little indefinable something extra, that touch of magic that these homeowners look for. That's the reason why Dr. Abysam has, for instance, put in a bubbling water cascade at the entrance of his home.

“That sound of water makes you think of sitting by a stream with the smell of wild flowers in the air… it makes you feel better even as you get out of the car,” he says.

Or why Ms. Sankar loves sitting in her beautiful roof-top garden — all water pools, trees, and flowers — in the late evenings.

“There's a terrific ambience, with the floor-level lighting coming on, the lovely breeze setting in, and the temperature dropping quite a bit.”

Justice for old borrowers?

Better deal: Home loan should not be a burden for the purchaser any more. 

                Source :R.P. DESHPANDE,The Hindu,May 22,2010

The RBI has made it clear that any change in the base rate will apply to new as well as old housing loan customers

  One of the major grouses of existing home loan borrowers is that they continue to pay higher interest, while banks and Home Finance Companies (HFCs) are offering much lower interest rates to new customers.

In the past one decade, under the ‘BPLR (Benchmark Prime Lending Rate) regime', banks and HFCs have manipulated the provisions to suit to their needs at the cost of existing customers. But the existing borrowers can cheer now, as under the ‘base rate' regime, to be effective from July 1, 2010, things are expected to change for the better.

It is reported that the Reserve Bank of India, in its guidelines on the ‘base rate' (the new benchmark that banks will use to price loans), has made it clear that any change in the base rate will apply to new as well as old customers.

The ‘base rate' system would be applicable to all banks and as such the housing finance regulator (National Housing Bank) may issue separate guidelines for home finance companies (HFCs) to ensure transparency in fixing interest rates on home loans.

What is base rate?

Due to the anomalies found in pricing of various loans under BPLR method and due to public outcry against non-transparent factors used in pricing of loans, the Reserve Bank has come out with a new method of fixing interest rates on various loans, called the ‘base rate' method.

In this, banks will have to consider average cost of funds and add the profit margin to it. However, credit risk, tenure (loan repayment period) and other influential factors will be loaded to the base rate. The RBI has made it clear that there has to be a transparent method of fixing interest rates to be charged on each loan product.

The RBI will further have periodical supervisory review or scrutiny to ensure proper pricing on loans and transparent factors used to calculate pricing.

Under the ‘base rate' regime, the best part is banks will not be allowed to offer loans at interest less than the base rate fixed, which will have to be reviewed at least once in a quarter. Under floating rate loans, banks may not be allowed to offer teaser loans (luring new customers with lesser interest rate initially but charge them higher interest later on) and banks will not be allowed to charge different rates for old and new customers.

As per RBI guidelines, ‘base rate' method will have to be applied for not only new loans and loans coming up for renewal from July 1, 2010, but for existing loans also.

For existing borrowers, banks will have to provide an option to switch over to the new system before the expiry of the existing contracts, on mutually agreed terms. However the RBI has made it clear that the bank cannot charge any switch-over fee for converting an existing loan from BPLR to the ‘base rate' system.

The ‘base rate' may vary from one bank to another as RBI has allowed banks to choose any benchmark to arrive at the base rate for different loans, but the factors considered to arrive at the rate will have to be transparent and should be disclosed to the public.

No more balance transfer

In the recent past, many home loan borrowers have opted for balance transfer of their home loan account from one bank to another, as they found, their bank has been charging 2-3 per cent more interest than the prevailing rates offered by other banks.

Such borrowers have not only paid 2-3 per cent as pre-closure charges on the outstanding loan amount but also spent considerable amount on processing fee and insurance premium etc.

Since teaser loans are being continued to be offered by major banks and HFCs (Home Finance Companies), you may be thinking of shifting your home loan account to another bank/HFC. Hold on till July 2010, when the ‘base rate' regime starts and you may get an opportunity to shift to the ‘base rate' without spending any amount.

Let us consider the case of Mr. Rao who is paying an interest of 11.5 per cent on his home loan and is getting lured by some banks offering him 8-8.25 per cent interest for one year and later on 9-9.5 per cent, under floating rate schemes. 

It is advisable for him to wait up to July 2010, when the ‘base rate' scheme would begin and the rate may be fixed at 8-8.5 per cent. It is likely that home loans for all customers (new and old) would be offered at base rate plus one per cent. 

Hence Mr. Rao may get an opportunity of shifting to the base rate scheme having 9-9.5 per cent interest on his home loan, at no extra cost.

It is hoped that the ‘base rate' system will enhance transparency in lending rates and usher a new beginning in the financial system of the country.

(The author is a Director of Institute of Home Finance and can be contacted at deshpanderp2007@gmail.com)