Rs 500 and Rs 1000 notes stand demonetized from midnight: PM Narendra Modi A big Impact on Real Estate

Rs 500 and Rs 1000 notes stand demonetized from midnight: PM Narendra Modi

A big Impact on Real Estate

In a recent incidence PM Narendra Modi announced that higher currency notes of Rs500 and Rs 1000 respectively would be demonetized .he said since his government has come in power it has been trying to fight black money in India. He mentioned corruption, black money and terrorism has been weakening the country since a long time.

On the other hand RBI came up with answers as to why was the decision made? (Source TOI)

The decision to demonetize the higher currency notes of Rs 500 and Rs 1000 which cannot be used for transacting business and or store of value for future usage.RBI said there has been increase in fake notes which were used for anti national and illegal activities. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

Impact on Real Estate

Till date most of the transactions done were approximately 35%-65%, which means 35% was black and rest is done in white to avoid income tax. But after the announcement by PM Narendra Modi this will change the face of real estate, and the secondary market will come down in future. As an impact there will be no black money transactions for possibly next 6 months for sure.  As the RBI would be monitoring every transaction as one has to use mode of payment through cheque or electronic transfer and has to use Pan Card or certain valid identity proof while making a transaction. Cash transaction will reduce and this would lead to a brighter India and people will have to give proof for their income hence forth.

The scheme
The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn+ . The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

One can get up to Rs 4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.

Duration to exchange the currency

The scheme closes on 30th December 2016. The OHD banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.

Proof of identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, and Public Sector Unit to its Staff.

Source: Times Of India

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Buyers to get refund if builders miss deadline

From May 1, 2017, all new house purchases will come with three commitments -a date of possession in writing, full refund of the amount paid with 10.9% interest in case of delay beyond the committed date of possession and interest for the delayed period, in case the buyer doesn't want the refund.

The Centre on Wednesday notified a standard house purchase agreement that builders all over India will have to sign with homebuyers.

The notification under the recently enacted Real Estate Regulation Act will result in automatic termination of the sale agreement in case of a delay beyond the committed date of possession. The builder will have to make the refund within 45 days of the termination. Buyers who do not want to withdraw will be entitled to interest payment for the period of delay.

Guidelines notified by the Centre have provided for compensation in case of delayed delivery even for ongoing projects but the new sale agreements will apply only to projects launched from May 2017, when the law comes into force.

The new rules, however, exempt any interest liability on the developer for delay caused by force majeure conditions such as war, floods, cyclone, and drought, which are be yond the control of the promoter.

At the same time, if a buyer defaults in payments, the developer can terminate the contract. The number of delayed payments is something that builders and buyers can mutually decide. The builder will have flexibility in deducting the booking amount and interest liability from the repayment made to the buyer.

The sale agreement also stipulates that the total price of apartment or the plot shall be escalation free except when development charges are increased by the competent authorities.

Besides receiving timely payment from buyers, the agreement also provides for certain rights of promoters such as interest in case of delay in payments by buyer and additional payments for increase in carpet area up to 3% of area originally offered. The agreement also makes it mandatory for a developer to disclose the total number of apartments, carpet area, the number and area of garage or covered parking, and the date of grant of commencement certificate by the local authority , among others things.

In addition, the agreement has to provide the break-up of cost of construction, including the cost of the apartment, the proportionate cost of common area, preferential location charges and taxes and maintenance charges, among others.

While the law was enacted earlier this year, the urban development ministry notified the rules on Monday with states such as Uttar Pradesh and Gujarat following the Centre's path. While the Centre's notifications are in the nature of “model guidelines“, states can modify the rules. So far, sources said, Gujarat and UP have adopted the Centre's rules without modifying them. The UP government is planning to appoint a regulator by December 15 with the agency fully in place by April 30, a senior official said. Other pollbound states such as Punjab, Goa and Uttarakhand too are expected to put in place regulatory bodies by December.

Monday's notification by the Centre goes beyond delayed delivery to also allow buyers to seek rectification of structural defects within five years from the issue of occupancy certificate by local authorities.

SOURCE: TOI

Upgrading to your Dream HOME

Upgrading to your Dream HOME

 Why move to new place:

Moving into new home does not always mean changing city; it is for the convenience and better reach. People need to change home for many reasons may be the size of the existing home if the family grows, if there is a change in location of work place or it could be the surrounding which is not peaceful.

So before switching home one must plan the whole procedure before leaving the existing home. With the existing pune market which contributes to the list of merits of its nearing possession project. With the new airport approval there is going to be a big spur in pune market. There are many locations in pune which has proved its worth in terms of infrastructure and connectivity to nearest highways connecting to nearby cities. FourrWalls (www.fourrwalls.com) provide ample of options with such available properties, with best price available.

When we say ‘good property’, it means projects with the latest technology, unique amenities and world class specifications. These features are the biggest stimulant in making a decision for the switch. Once decided to switch one must look for a property which would come in to possession within 11-12 months from the day for decision, this will help in resale of the existing property and one can make arrangements for the remaining requirements . While switching one must only look for properties with reputed developers because they specialize in quality construction, timely possession and superior amenities.

As per an article in Times Of India recently Amit Sethi expressed a few things to check before switching homes.

Switching checklist

Do not compromise on location, and ensure that you are getting full value for your money. Look for projects, which come with a 180 degree facilities management and a sufficient saturation of life style oriented features. Experts believe that while buying a home, a buyer should keep in mind to not fall for the 'saleable' area offered by the developer. This is because the saleable area is generally arrived at by adding the loading on the carpet area. This would mean that there is no standard code of conduct. Instead, the customer should carefully evaluate the 'actual livable area' inside the apartment one is planning to buy the actual size of a bedroom or a living room that would be used.

Benefits Vs drawbacks of switching the home

“You lose a familiar neighborhood and neighbors, and children may have to change schools. Moving out of a home and moving into a new one also entails a lot of effort, time and usually expense.

Likewise, setting up a new home can be quite cost intensive. It makes sense to look for fully furnished homes, which also have round-the-clock housekeeping, since a new home should always amount to an upgraded lifestyle.

The down points associated with owning a house is if one needs to urgently sell the property because of a job transfer or change in financial circumstances, he may not be able to sell as quickly as he would like or for as much as he wants.

“At the time of purchasing, a minimum 10 per cent down payment as your own contribution is the norm before a bank will provide you mortgage funding for the remaining amount. In short, you need to use up your savings for a down payment which in turn won't be available for other investments or a fixed deposit to earn interest on it.

While choosing a home to live in, a buyer must select a project which has a carefully planned area for kids to play. These play areas will automatically help in developing overall personality of the child by giving him more exposure to various activities.

Before buying a new property one must be sure to have enough funds to care of emergency situations. One should pick up the right property in terms of location as neighborhood matters the most. And new opportunities coming up in nearby areas as that would give appreciation to the value of your new property. If all these factors are there in the property you are looking at one must go for it!