Saturday 30 January 2016

Walk-to-work culture gaining immense momentum in Thane




Everybody wants their home to be close to their work place; however, is it feasible to have one, especially in a metropolitan city like Mumbai? Thane, today, is very strongly promoting the walk-to-work culture. Residents here tend to allocate high importance to the location of homes that are within a reasonable commuting distance from their workplaces. In such a scenario, a home close to the Central Business District (CBD) or Secondary Business District (SBD) is a premium offering in the residential real estate segment.

Siddharth Bhatia, marketing head, The Wadhwa Group, says, "The potential growth of Thane as one of the new CBDs of the city, has witnessed a major rise in the preferred residential location by people. In the last two decades, Thane has transformed rapidly as a developing location. The demographic aspect of the metropolitan is such that commuting from one part of the city to another is a task and hence, people prefer settling for a property that is closer to their area of work."

Experts believe that the increased connectivity of Thane with Mumbai's suburbs and the national highways has paved the way for many corporates and factories to have their foothold in this area. Emerging micro-markets in Thane like Majiwada, Ghodbunder Road, Pokhran Road and Kolshet Road along with the presence of prominent developers and their quality offerings, have led Thane to house both, residential and commercial spaces. "Accessibility to international schools, hospitals, entertainment facilities and green living, has contributed to the rise of the population in the nearby areas and the expansion of Thane city. Integrated townships and high-rise buildings, along with public service facilities, have promoted the government to establish a business centre around Thane, thereby enabling people to have an adequate work-life balance," explains Anupam Verma, vice-president operations, Rustomjee Urbania.

Thane and its walk-to-work culture
Thane has seen a gigantic increase in residential real estate because of its close proximity to prime locations and commercial hubs. "With the infamous traffic grimaces, walk-to-work is the much-needed change that will make a significant transformation for the betterment of Thane by facilitating people to dedicate more quality hours at work rather than spending time on travelling," opines Rushank Shah, director, sales, Hubtown Ltd. According to experts, there exist certain key aspects that lead to an appropriate work-life balance in Thane, such as:

Connectivity: Connectivity of Thane with Mumbai's suburbs and its out skirts is fetching a great amount of at traction for the residential and commercial realty space;

Accessibility: Accessibility to international schools, corporate entities, hospitals and transportation, has enabled the consumers to avail a better lifestyle

Entertainment: Availability of the malls, amusement parks and other entertainment zones in Thane has added a great quotient to the walk-to work culture.

Healthy living in thane
Niranjan Hiranandani CMDHiranandani Group points out, "Healthy living is something that Thane promotes with its real estate offerings. There are two aspects we need to consider here. First, the city itself is clean and green; it is blessed with verdant greenery and water bodies. The Sanjay Gandhi National Park's eastern side overlooks the city and this adds to the green perspective. Gardens within the city adds to the 'green' quotient; as do the lakes surrounded by lush, tree lined avenues. Secondly, the integrated townships, which are coming up in Thane have added to the 'clean and green' aspect in a major way. In fact, these townships promote the 'walk culture', with options which encourage residents to walk to the green spaces, the club house or sports facilities. The townships have been created in a manner that encourages residents to think 'green'."

Experts claim that Thane is one such locality that fulfils the most lucrative need by providing a classy living without compromising on the breathing zones of the city. Widened roads and a number of green patches dotting the locality all around add to the spacious charm.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Friday 29 January 2016

NOCs, time for permissions for building projects slashed




The BMC's building proposals manual has gone online, the number of no-objection certificates required for construction has been halved to 58 from 119, and builders can now expect to get all construction-related permissions at one go, within 60 days of submitting their proposals against a year and a half earlier.

These are some of the major revisions mentioned in the BMC's new building proposals manual, which was released by chief minister Devendra Fadnavis on January 2. This revision exercise is primarily aimed at reducing corruption in the civic department, besides easing the process of getting clearances for construction projects.

The initiative will also reduce citizen’s struggle to get details of their buildings through the Right to Information Act (RTI) as well as doing the rounds of BMC offices. Now, documents of most buildings, some of which are half a century old, can be found online.

The revised manual, prepared by BMC's building proposals department, has been the pet project of civic chief Ajoy Mehta whose team worked on it for the past three months. Mehta had taken a keen interest in making the entire building proposals process transparent.

One can visit http://www.mcgm.gov.in/ and click on the link 'Chief Engineer DP'. This will take one to another page, ask for a log-in; now, and search for details of relevant buildings. The site also contains details of the revised manual, regulations as well as building proposal department circulars. It will have an option to submit a proposal online, too, but it can be accessed only by registered architects and consultants.

The building proposals department, which grants construction permissions, is considered among the most corrupt in the BMC. There were instances of officials deliberately delaying clearance of files to get money from builders; architects were summoned to the department office late at night to process their files.

While town planners have welcomed the revised manual, they remain sceptical about its implementation.

"There is no accountability of the official if he or she fails to clear the file within the days specified. They should face action. The municipal commissioner has reduced the number of NOCs, which is a welcome step as it will reduce corruption," said Shirish Sukhatme of PEATA (Practicing Engineers, Architects and Town Planners' Association).

Meanwhile, Mehta has initiated a program to appreciate his officials every month. On January 2, he felicitated chief engineer (BP) Vinod Chithore, who headed the team that prepared the manual, as 'officer of the month'.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Wednesday 27 January 2016

"Thane continues to give value for money"




Why Thane? It is the city of the future, say experts
Jitendra Mehta, Chairman, Exhibition Committee, MCHI-CREDAI Thane

What Are Your Views On
Q: Thane As An Attractive Realty Hotspot?
Thane is an attractive realty
A: hotspot because of the multifaceted features we have the IT hub, the mall mania, some superb multiplexes, the immense opportunities for employment and affordable housing with respect to value for money.

Do You Think It Is Right To
Q: Say That Thane Is No Longer An Affordable Region?
No, It is not right to say that
A: Thane is no longer an affordable destination because it still gives value for money. If you see from Andheri to Borivali on the Western Express Highway, the prices are in the range of Rs 12000-16000 per sq ft, whereas, on Ghodbunder Road, it is Rs 8000-10000 per sq ft and you get better infrastructure, amenities and a healthy life.

As A Realty Body, How Do
Q: You Plan To Make The Dream Of `Housing For All By 2022', An Initiative By Our Pm, A Reality?
We expect the government
A: departments to make a clear-cut policy without any ambiguity, so that any developer can complete his project.

What Do You Think Are
Q: The Key Challenges That Thane Faces Today?
Thane faces a hurdle of the ULC
A: Act, which has been scrapped as per the law but is still in existence in Thane. Due to this, much of the industrial land is stuck. This is one of biggest challenges we are facing.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Home-Buyers Sealed The Deal!




The curtains came down on MCHI-CREDAI Thane EXPO 2016 last weekend and it packed quite a punch. Here's a report...

The MCHI-CREDAI Thane's EXPO ­ 2016 con cluded successfully over the last weekend where renowned builders across Thane city, suburbs and the peripheral areas in the Mumbai Metropolitan Region (MMR), showcased their properties.

MCHI-CREDAI Thane's Expo ­ 2016 showcased more than 300+ properties from 50+ developers and got an overwhelming response from visitors across the four days.

Sanjeev Jaiswal (I.A.S.), commissioner ­ Thane Municipal Corporation said, “Thane is a city with a great future and the Thane Municipal Corporation is playing its role in ensuring that the city remains among the best in the Mumbai Metropolitan Region (MMR).“

“The event logged sales of 270 flats, while business transacted during the expo amounted to Rs 1,500 crores,“ said Jitendra Mehta, chairman ­ exhibition, MCHI-CREDAI Thane.

The property expo's final tally of visitors was 62,002, which led to the expo being positioned as the largest property expo in Thane.

Eknath Shinde, cabinet minister ­ PWD, Maharashtra who is also the guardian minister of Thane, during the inauguration, had stressed on the need to increase affordable homes in the new construction coming up in Thane. He had also said that enhanced connectivity would ensure Thane truly becomes a `Smart City'.

Sachin Mirani, honourary secretary, MCHI-CREDAI Thane concluded by saying, “MCHI-CREDAI Thane's EXPO ­ 2016 was planned and organised so as to enhance the comfort and convenience of the home-buyers. Various new initiatives were undertaken to ensure that every visitor thoroughly en joyed the experience of buying a home. The families also got to learn about the largest properties and developments, under one single roof.“

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Thursday 21 January 2016

Bhiwandi Emerges As Preferred Property Destination




The exhibition which received an overwhelming response from visitors was exciting for the developers for two reasons.

The 15th Maharashtra Chamber of Housing Industry (MCHI) property exhibition which concluded on Monday saw a sale of 200 flats and a footfall of more than 50,000.

The exhibition which received an overwhelming response from visitors was exciting for the developers for two reasons. Bhiwandi emerged as a new property choice for potential buyers and Ghodbunder Road led the pack with 200 flats being sold from GB road.

Jitendra Mehta, chairman exhibition, MCHI-CREDAI, Thane shares "Exhibition has started on a very positive note and this time a lot of serious buyers have turned up. With 300 plus projects, buyers had a range of choice."

"While GB road remains a choice for elite property seekers, Kalyan Phata near Bhiwandi is getting a good response and the conversion rate is also good," adds Mehta.

With Thane being tagged as a Smart City, the entire face of the city has changed and various development projects have only added to the advantages of the city. The three days of exhibition saw maximum rush outside stalls exhibiting properties in Bhiwandi.

Talking about the increased inquiries, the developer said, "Kalyan Phata is developing faster and other than affordable rates, the place has a very good connectivity. People having their own vehicle can easily commute from Thane within half an hour as it very well connected through road other than the train."

Abhijeet Ragji, a local who is planning to book a 2 BHK flat said " Ghodbunder Road flats are now out of reach as they are touching a crore and more but while I inquired about Bhiwandi they are really affordable and are available at a cost ranging between Rs. 2700 to 4100 per square feet and flats could be purchased at a cost of Rs. 40-45 lakhs."

"Kalyan Phata is a good option as flats are available at affordable rates and there is not much difference between Thane and new Bhiwandi," said Vishal Gajare, a potential buyer.

Ghodbunder road has become an elite choice with the kind of property rates available while Bhiwandi has emerged as a new affordable property destination in the city.

With the kind of response at the property exhibition, it seems that good days for real estate developers are back and exhibitors feel that they would get more conversions in coming months.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Wednesday 20 January 2016

...towards a clean and green Thane




Thane scores high on the clean and green quotient, thereby making it a desired residential destination for many

The theme for this year's MCHITCREDAI Property 2016 Thane is `Act Before It Is Too Late' but it seems the said theme has actually been a reality and in fact, the guiding philosophy of the region since its inception. The greenery in Thane has been abundant and clean and green has been like a calling card of the sub-market.This also raises a fundamental question as to whether Thane has been blessed by the scenic natural beauty or the developers in this region have consciously worked to keep it clean and green. Analysts active in this market believe that it is a combination of both the factors.Thane is definitely blessed with scenic natural beauty. The Yeoor Hills in Thane are nature's gift. They make living in Thane more beautiful and serene. The view of the hills and Sanjay Gandhi National Park (SGNP) makes Thane a picnic spot and a tourist attraction.There are many other nature's treats to the city, like its natural lakes and water bodies.The city has around 30 lakes. The most beautiful of them is the Masunda Talao. Efforts have been made to beautify these lakes by cleaning up the water bodies and lacing these lakes with walk areas, manicured gardens and lawns, boating attractions, constructing sitting areas for people, etc. On their part, the real estate developers have undertaken tree plantation programmes at frequent intervals in order to strengthen the beauty of the city, which has been naturally blessed with greenery. Dharmesh Jain, chairman and managing director, Nirmal Lifestyle, adds that Thane is well-planned, clean and the essential fabric of the green cover that it has, naturally makes it a much preferred destination. The Thane Municipal Corporation (TMC) has been tak ing pro-active steps to sustain the greenery in Thane.

Other pro grammes un dertaken by the TMC to maintain the greenery in clude planting saplings to de velop mangroves. velop mangroves.“The forest and green zone now occupy approximately 52 per cent of the total land use within administrative boundaries. Most of the parts in Thane are covered with natural beauty, especially the Ghodbunder Road stretch, due to its connectivity with the Sanjay Gandhi National Park. Also, the real estate developers are opting for a green building project, which makes this region a green city.Indeed, the awareness of green buildings in Thane, is now showing a perceptible leap,“ says Jain. Brotin Banerjee, MD and CEO of Tata Housing, points out, “People who are looking for a healthy and better quality of life, prefer Thane as the city that offers a plethora of green spaces along with social infrastructure required to lead a healthy lifestyle. The presence of the green zone area and the forest area, adds to the greenery of the district. Developers have also played an important role in maintaining the green quotient of the area.“ Shailesh Puranik, MD, Puranik Builders agrees that spaces designated for parks, open spaces and green areas, give the city a spread-out and a planned look. “Thane has been rated well among the clean and green cities in this part of the continent by national and international agencies. On our part, we are working towards keeping the reputation consistent and enhancing the cities' ratings continuously through our efforts. As far as cleanliness is concerned, Thane is comparatively a clean city. The local municipal corporation has initiated various programmes to maintain the cleanliness of the city, including a regular awareness drive for the people of Thane,“ says Puranik. Since nature's beauty is being supplemented by all the stakeholders here, there are chances of the region preserving its 'clean and green' tag in the foreseeable future.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Expo Focus - Get The Advantage





There are more reasons than one for the prospective home-buyer to make a beeline to Property 2016-Thane. Hence, fret no further and book your dream abode this New Year

Many prospective home-buyers are looking for their dream home in Thane, this new year, after the announcement of the Smart City notification by the government.The four-day annual property exhibition by MCHI-CREDAI Thane Unit is going to be held from January 15 to 18, 2016, at Highlands Gardens, Dhokali, Thane west. The four-day property expo will showcase a range of luxury and affordable projects.

Over 40 developers with over 300 projects and over 20 banks and home finance institutions would partici pate in the event. There is an entry fee of Rs 30, which is redeemable against a bottle of water at the expo

Thane offers the lifestyle a homet seeker would want for himself and his family and that is exactly what this expo is aimed at to provide real estate seekers with multiple oppor tunities, hosted on a single platform.

Ajay Ashar, president, MCHI CREDAI, agrees, “The developers of Thane are taking all the necessary steps towards making the city an IT hub. Hence, it's high time we start taking it seriously. Tata Consultancy Services (TCS) has acquired 2 million square ft of land in the city. This would set the trend to be followed by others.“ In sync with the tagline, `Act before it's too late', the expo would highlight many positives of Thane when viewed as a real estate hotspot.This includes the growing global office culture, the mall-mania that has taken Thane by a storm and lastly, Thane's clean and green outdoors.The expo will also focus on affordable housing this year. There will be a separate pavilion for projects in the low-cost range. “The event would offer the citizens an opportunity to choose the right kind of house from various options. We have a separate section for affordable housing projects. The exhibition features 1-BHK homes with an average price tag of Rs 35 lakhs approximately. Since the size of these projects is large; I would say at least half the units on sale would be in the affordable housing segment with a price of less than a crore,“ adds Ashar. Rohit Poddar, managing director, Poddar Developers agrees, “Affordable housing is where the action is, with this sector seeing the highest appreciation in prices. Areas beyond Thane such as Kalyan, Atgaon, Badlapur and Bhivpuri, are the most promising locations for delivery and price appre ciation in the future.“

Also, the expo will focus on the de velopment of Thane. It has come a long way in promoting Thane as a d city with the best-in-class infra structure and connectivity. Conve nient accessibility is becoming a re ality and with the metro rail arriving in Thane, life for the commuters will get easier. Shailesh Puranik, manag ing director, Puranik Builders Pvt Ltd, says, “In the last few years, Thane has witnessed tremendous development in terms of infrastruc ture. Good roads, new flyovers, im proved railway network, have made the city accessible from different corners of the region. The city has a good supply of water and power that are basic necessities for an urban dweller. Improved internal and external connectivity and availability of land parcels, have given a rise to residential and commercial realty in the city, especially along the Ghodbunder Road.“

Also, the property expo would showcase properties for buyers looking for luxury properties due to the series of amenities that are being offered in the residential real estate space.

Amenities such as swimming pools, club houses, landscaped gar dens, gymnasium, modular kitchen, CCTV cameras, are some of the common amenities that can be found in every luxury project in the city. Jitendra Mehta, vice-president, MCHI and exhibition committee chairman, points out, “Our aim is to attract people from south Mumbai and the western suburbs to come and visit this expo and purchase a home in Thane, which today has many advantages associated with it. It is a melting pot of cultures with people from various religions staying here; it has great connectivity to various parts of Mumbai and lastly, there are some major infrastructure plans that are in the pipeline for Thane, which will be implemented soon.“

The tickets for the show would be available on bookmyshow.com and the art gallery would showcase the work of the artists from across the city. Also, the aim of the organisers is to promote Thane on an international level, by putting the demand across for hospitals, schools and other utilities, which is the need of the hour. A conclave is planned at the property expo, where international property consultants would be invited for the promotion of the city at the global level. “Such exhibitions are a great opportunity for people like us who are short on time but serious about buying,“ says Aparna Aggarwal, a prospective home-buyer who would be visiting the expo.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Tuesday 12 January 2016

Tips to keep in mind while investing in 2016





Space constraints have restricted the growth prospects of the realty market in Mumbai but the emerging pockets have now reignited the development expectations. The government is putting the impetus on infrastructure, thus strengthening the emerging locations and therefore, realty markets in these destinations are well set for a robust growth.

"With the added impetus, home-buyers in Mumbai are back. The fall in interest rates and the New Year have helped improve home sales in the MMR. Developers are now increasingly getting focused on the affordability factor to increase sales and improve their cash-flows. The other factor that will help in maintaining the momentum is the rapidly improving infrastructure of the MMR. The government is taking the initiative to improve infrastructure in the region and this will be a major game-changer for most of the emerging pockets," says Ramesh Nair, COO operations and international director, JLL India.

Experts believe that the emerging areas around Mumbai and the MMR like Mulund, Thane, Kanjurmarg, Mira Road, Bhayandar, Vasai, have seen a phenomenal growth in the recent past. The residential market growth in these regions also helped to gather momentum in Mumbai's realty as a whole since the last four-five years.

Experts point out that the Banking, Financial Services and Insurance (BFSI) sector and professional services are the major sectors of growth in the city, whereas, the manufacturing, pharmaceuticals, shipping as well as the media and entertainment sectors, are also noticeable drivers. Simultaneously, the rapidly improving infrastructure has helped the city expand its boundaries, with new peripheral areas emerging and becoming contenders in the real estate market. The government is laying great emphasis on connecting the city with other growth nodes by improving infrastructure, and the proposed Mumbai-Nagpur Expressway, Navi Mumbai International Airport and the Delhi-Mumbai Industrial Corridor (DMIC), will definitely help fuel the local economy and give an impetus to the property market as well.

"A growth in infrastructure has played a key role in keeping the real estate market balanced in Mumbai. Other than these factors, price appreciation and social infrastructure also play a major part in keeping the sector floating. The recent major projects such as Santacruz Chembur Link Road (SCLR), the proposed Mumbai Trans-Harbour Link (MTHL), Navi Mumbai International Airport, various phases of the various phases of the proposed Metro links, etc, are the major game-changers that have allowed the momentum of the city's real estate market since the last couple of years.

Other than this, the high investor activity also played a big role in driving real estate prices, and Non-Resident Indian (NRI) investors cover a significant portion of the residential real estate market in Mumbai. Another critical factor that has contributed to the acceptability of a balanced real estate market in Mumbai is the development of new office projects towards the north of the city, mainly in the central suburbs. Hence, the above mentioned dominant factors have determined the fate of the city's realty market," informs Dharmesh Jain, chairman and managing director, Nirmal Lifestyle.

According to the realty experts, with Mumbai becoming increasingly saturated and unaffordable, the peripheral areas are the new micro-markets in focus. Ulwe is one micro-market, which is already garnering a lot of interest from investors and end-users. Apart from the two Special Economic Zones (SEZs) that have been planned here, its proximity to the upcoming Navi Mumbai International Airport has caused many developers to flock there with a wide spectrum of realty projects.

The relatively affordable property prices and good returns on investment over the mid-to long-term, have strengthened the demand for homes in Ulwe.

Some of the other fast-growing places include Mulund, Thane, Vasai, Mira-Bhayandar, Panvel, etc. One of the most well-developed areas in this region is Mulund. The area at present is a part of a real estate observable fact that features better living and caters to those who want to lead their life in a grand manner. These places have attracted attention as an emerging commercial and residential hub, which could become bigger in size in the coming years and play a major role in transforming the real estate landscape of the city. DS Kulkarni, CMD, DSK Group is hopeful about the real estate sector in 2016. "We hope with a stable government in power under a strong leader like Narendra Modi, the year ahead should augur well for the real estate sector. I think every builder should follow the diktat of the Modi sarkar he/she should not only build smart cities, but aspire to develop the smartest ones," concludes Kulkarni. 

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Saturday 9 January 2016

Create a real asset




Investment in a second home is an effective way to build wealth in the loan term especially for salaried individuals

Most people with investable surpluses tend to stay focused on the financial markets, whether it is debt or equity. Very few venture into real assets such as Gold or real estate. An investment in a second home is an effective way to build wealth in the loan term. Let’s examine the various reasons why this could even be the best form of investing for a salaried individual.

Real estate outlook
Real estate prices in India have grown at between 15% and 20% annually, over the past 50 years, across cities and across various reasonably long (10 year) time frames. Over a long term this growth is projected to continue, given the combination of various enabling factors. These enabling factors include a favourable demographic distribution in the country, increasing urbanization and an increasing preference for nuclear families.

Such returns have been comparable to those in the Equity Capital Markets. In fact, there is the additional advantage that one is spared the variability and volatility associated with investing in equities. For example while the BSE Sensex has multiplied 160 times since 1979, the components of the Sensex have been changing constantly.

Tax efficiency available
There are several tax advantages that can be availed by investing in a second home. These include:

1. The rent received from the second home (less 30% for repairs and maintenance) can be set off against the interest paid on the home loan taken for the flat. If the rent received is less than the interest paid, then the resultant ‘Loss from House Property’ can be set off against your regular income. Thus, there is a tax hedge provided be the property till it begins to pay for itself.

2. When the flat is sold, the acquisition cost (adjusted for indexation) is deducted from the sale proceeds and only the balance is taxable.

Leverage scope
The purchase of a second home is the only form of investment for which leverage is available for salaried individuals. All other investments, whether stocks, mutual funds or Gold need to be made out of one’s own savings. It is possible to invest in a second home by putting only 20% of the cost of the home as one’s equity, and take a loan for the rest.

Financial logic
So then, the financial logic for investing in a second home is simple. Assume the following. You own the asset by paying only 20% of the cost. Your average cost of financing the remaining is 10%. The rental yield is 3% and property appreciates by 12% every year. Your financial situation every year is as follows (see boxes below).

As is evident, the return on the investment is quite healthy.
The municipal taxes to be paid and the costs of maintaining the property have not been shown. However, the overall picture does not change significantly even with their inclusion. Other charges to consider are transaction cost like stamp duty, registration and brokerage charges.

Psychological factors
A house is a stable asset and is not bought and sold frequently. Consequently, it allows a longer time frame for any appreciation to play out. There is no greed or desire to cash in when the prices are high and there is no panic when prices do not rise.

An important psychological factor is that real estate prices do not fluctuate on a daily basis and there is no mark to market that is available on a daily basis. This makes the house a comfortable asset to hold.

In case of a rented out property, the home loan EMI is partly funded by the monthly rental income and reduces the debt burden.

The flip side
There are some factors that one needs to be aware of, before buying a second home. You should be comfortable with the monthly installment to be paid over the long term. Also, a property takes some maintenance and monitoring.

Those with transferable jobs will find this especially challenging. Additionally purchase of property entails a thorough evaluation of the developer, his track record and other legal aspects of the property.

In summary, a second property could be a worthwhile investment, especially for the salaried class if planned and executed well. It could be an efficient way to build wealth over long term.

Anil Kothuri, Head, Retail Finance, Edelweiss Financial Services Limited and CEO, Edelweiss Housing Finance Limited.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Buy a flat to avail fiscal advantages




The income tax deductions on home loan repayment make it a win-win situation and facilitate ownership at an earlier stage

Home owners can avail multiple tax benefits that can not only reduce their tax outgo but also help in managing their cash flows better. Following are some income tax benefits deductions that home owners can claim:

1. Deduction on interest component in the EMI: If the home owner is paying EMIs for a home loan that he took to buy a house, the interest component in the EMI can be claimed as deduction. This is, however, subject to fulfilling the criteria of both an owner and a co-borrower (in the loan). This deduction can be claimed starting the year in which the construction of the house is completed and there is a cap of Rs 2 lakh every year for a house that he uses for his residence. If the house is rented, the entire interest for the year can be claimed as deduction.

As the interest payments for the year result in a loss under the head 'income from house property', this loss can be adjusted (in the same year) against other heads of income in the owner’s income tax return including salary. This greatly reduces owner’s total taxable income and the tax he is liable to pay.

2. Deduction on principal repayment: Home owner can claim deduction under Section 80C of the Income Tax Act on the component of EMI which goes towards principal. A maximum of Rs 1.5 lakh can be claimed as deduction under this provision.

3. Deduction on stamp duty and registration charges: Home owners are also eligible to claim deduction for payment made towards stamp duty and registration charges. This can be claimed under Section 80C once in the year in which these were paid.

4. Other benefits: A joint loan is also beneficial for home loan customers as it mean each customer can claim deduction up to Rs 1 lakh for repayment of home loan principal under the overall limit of Section 80C of the Income Tax Act. This is besides an additional deduction of up to Rs 1.5 lakh under Section 24B for interest payment once customers get possession and occupy the house.

5. Municipal taxes: A customer can show municipal taxes paid during the year as deductions from total income. A flat 30% of the annual value can also be claimed as deduction for maintenance expenses such as repairs, insurance, etc.

Prepayment considerations
Indian customers are averse to debt and often prefer to prepay their home loans. This decision, however, should be taken after considering various options as prepaying home loans may not always be the most economical option.

Lower interest rate on offer is the key factor for customers to prepay their home. However, one should not base their decision on this factor alone and should take into account the amount and tenure left for repayment, and prepayment charges.

It is always advisable to prepay home loan if the customer has spare cash as it will help in reducing the interest cost substantially by reducing the principal outstanding amount on the loan.

Prepayment of home loans however, is not the right decision if a fixed-interest loan has been taken at a rate lower than the interest rates offered on savings instruments, such as fixed deposits. One should also not prepay if there is substantial tax benefits in terms of repayment on the principal amount, under Section 80C.

Given that the interest on home loans is calculated using the reducing balance method, which is based on the outstanding amount, the decision to prepay should be based on the prevailing interest rates instead of loan tenure.

Banks charge borrowers for closing the loan account before the stipulated time. This also makes it imperative to consider the charges for prepayment of the loan as it may be advisable to complete the loan tenure if the saving on the interest is less than the prepayment penalties.

Second home
One can avail tax benefit on the second house by claiming it as self-occupied. As one can claim only one house as self-occupied the other property in this will be considered as let-out property. The notional rent on the second house will be added to owner’s income and will be taxed as per the applicable tax slab. However, the owner is allowed to deduct the interest on the home loan from the notional rent.

One also has an option to save tax by investing in spouse's name if she owns no other residential property. Home owners are also required to pay wealth tax on the second house as only one residential property is exempt from it. It is therefore advisable to give it on lease and earn income.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com


Calling all Home Buyers



MCHI-CREDAI Thane unit, in its endeavour to make Thane the next hotspot for real estate investments, inaugurated the 15th real estate, housing and finance expo, `Property 2016 Thane', on January 4, 2016. The exhibition will be held from January 15 to 18, 2016, at Highlands Gardens, Dhokali, Thane West. More than 40 developers, 300+ projects and close to 20 banks will have their presence in this expo. With the theme of `Evolving Thane', the aim of this expo is to garner as many footfalls as possible and try and convert the fence-sitters who have been sitting on the edge for so long to finally take the plunge and purchase their dream abode.

Commenting on this, Ajay Ashar, president, MCHI-CREDAI Thane says, “Thane has today evolved into a residential real estate destination of choice. Thane offers the lifestyle a home-seeker would want for himself and his family and that is exactly what this expo is aimed at to provide real estate seekers with multiple opportunities, hosted on a single platform.“

Seconding his view, Jitendra Mehta, vice-president, MCHI and exhibition committee chairman, adds, “We aim to attract people from south Mumbai and the western suburbs to come and visit this expo and purchase a home in Thane, which today has many advantages associated with it. It is a melting pot of cultures with people from various religions staying here; it has great connectivity to various parts of Mumbai and lastly, there are some major infrastructure plans that are in the pipeline for Thane, which will be implemented soon. In sync with the tagline, `Act before it's too late', the media campaign for MCHICREDAI's Thane Expo focuses on four primary positives of Thane when viewed as a real estate hotspot. They are the amazing growth story of Thane; its growing global office culture; the mall-mania that has taken Thane by storm and lastly, Thane's clean and green outdoors.

To read more Mumbai and Thane Real Estate Resources, visit www.mchithane.org


Contact
501, 5th Floor, Plot No - A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane (W) - 400 604, Maharashtra, India

Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com