Home Loan Versus Loan Against Property: Crucial Differences

August 2018

When it comes to raising money, should a borrower opt for a loan against property or a home loan? We examine...

Purpose

A home loan is taken for the purpose of either buying a ready-to-move-in house or for the purpose of booking an under-construction property. Home loans are available for residential, as well as commercial properties. On the other hand, a loan against property is generally taken, for the purpose of raising additional funds for business. The loan against property may be obtained in two forms. It can be a pure loan, under which, a lump sum is paid to the borrower, against the security of an immovable property. Alternatively, a line of credit may be set up in the form of an overdraft facility with a set limit, based on the value of the property and repayment capacity of the borrower.

Loans against property may also be obtained for personal purposes like education or marriage in the family. A loan against property can also be availed, to finance the purchase of another property, in case it is not possible to get a home loan against the property, due to any technical reasons like defect in the title of the property being purchased. The security pledged, for taking a loan against property, may be a residential or commercial property. In case of a home loan, the property to be purchased is pledged with the lender, whereas in case of a loan against property, another property is pledged and not the house that is being purchased.

Tax benefits of home loans and loan against property

For home loans taken to buy a residential house property, the borrower can claim twin tax benefits under the income tax laws. The first benefits is for the repayment of the principal component of the home loan, which is available under Section 80 C, upto Rs 1.50 lakhs for all the residential properties taken together. This deduction of Rs 1.50 lakhs is available along with other eligible items like public provident fund, contribution towards employee provident fund, life insurance premium, school fee for children, national savings certificates, ULIP, ELSS, etc. The other benefit is available under Section 24(b), for the interest paid on such loans. This benefit can be availed even for commercial properties and also on amounts borrowed from friends and relatives.

For a loan against property, the availability of tax benefits will depend on the ultimate use of the money borrowed. If the money is used for the purpose of your business, the interest paid and the incidental costs, like processing fee and documentation charges, can be claimed as business expenditure under Section 37(1) of the Income Tax Act. If the loan is used for personal purposes like marriage or education of your child, the interest on the same cannot be claimed under the present tax laws. If the money is used for the purpose of financing another house property, then, the same can be claimed under Section 24(b) of the Income Tax Act. The interest claim would be allowed, only if you are conclusively able to establish the link between the money borrowed and its ultimate use.

However, you cannot claim any benefit for the principal repayment on a loan against property that is taken to finance another house, as the money borrowed cannot be treated as a home loan.

Margin requirements and rate of interest for home loans and loan against property

To safeguard themselves against a decline in the market value of the asset, lenders do not lend the full value of the security/underlying asset. This difference that the lender retains while lending, is called the margin. The margin money in the case of a home loan, is the money that the borrower is supposed to finance on his own. The margin requirement for home loans is generally regulated by the Reserve Bank of India, in the case of banks and by the National Housing Bank, in the case of housing finance companies. The margin money also depends on the amount of home loan availed. The maximum loan that a lender gives, is only upto 90 per cent of the value of the property. So, the buyer has to put in 10 per cent. For high-ticket home loans, the margin requirement can increase to 25 per cent. For loan against property, which is not covered under priority sector lending, the lenders have to keep a higher margin, which can range from 24-40 per cent of the property.

The rate of interest on home loans is generally in the range of 9-12 per cent, depending on the type of lender and the profile of the borrower. The rate of interest on loan against property, is generally higher than home loans but lower than personal loans. The rates may vary from 11-14 per cent, again depending on the type of lender and profile of the borrower.

Hence, a home loan is the best option, for persons who want to buy a readymade house or book an under-construction property. However, in case you have any title defect in the property to be purchased, you can finance the same by way of a loan against your existing property.

Also read: How to improve your credit score before applying for a home loan

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TO KNOW MORE ABOUT HOME LOAN ON PROPERTY IN THANE WEST, VISIT CREDAI MCHI THANE UNIT

Source: housing.com

Navi Mumbai : Work on airport likely to begin in October

On August 24, the GVK-led NMIAL had sought expressions of interest for construction and engineering work at the airport. The last date for responses is September 10. 

CONSTRUCTION WORK on the terminal building and the southern runway of the Navi Mumbai International Airport (NMIA) is expected to start from October.

Officials of the Navi Mumbai International Airport Private Limited (NMIAL), which will execute the work, said they plan to award the first tender for the airport’s construction in the middle of October.

On August 24, the GVK-led NMIAL had sought expressions of interest for construction and engineering work at the airport. The last date for responses is September 10. After the two-stage tender process, applicants whose bids are selected, would participate in the financial bids.

“The tender is worth Rs 6,400 crore. The scope of work includes cut-and-fill works, construction of terminal building, airfield works such as runway, apron and other airside infrastructure and facilities, landslide infrastructure like roadway network, ancillary buildings, multi-level car park and utilities among others. They will be in charge of designing and planning the airport,” a senior NMIAL official said.

According to the conditions laid down by GVK, the applicant should have recorded an average annual revenue of more than Rs 40 billion in the last three financial years and constructed, in the last 10 years, a terminal building with a capacity of 15 million passengers per annum and other airfield infrastructure works of an airport.

“We are confident of awarding the tender within a month after bids are finalised. It also depends upon how many participate in the bidding,” said Lokesh Chandra, Vice-Chairman and Managing Director of City and Industrial Development Corporation (CIDCO). London-based Zaha Hadid Architects (ZHA) is designing the airport’s Terminal 1 and Air Traffic Control (ATC) tower. On July 7, CIDCO and NMIAL had signed off on achievement of the “appointed date”, marking the concessionaire’s official commitment to the project and the start of the construction period. GVK had said YES Bank would be the lead bank for the initial two phases of the airport, estimated to cost Rs 9,500 crore. The CIDCO is hopeful to start flight operations on a single runway by December 2019.

Senior officials said that more than 50 per cent of ground-levelling work of the airport is yet to be completed. Only 1,300 families from among the 3,000 families affected by the construction of the airport have shifted from the site. “More than 75 per cent of the required land for constructing the southern runway has been acquired. Remaining project-affected locals will shift after the monsoon,” said Chandra.

The airport with two parallel runways will have three terminal buildings, each having a maximum capacity of up to 30 million passengers per annum.

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Source:indianexpress.com

Conversion of closed industries to residential plots may shrink Thane-Belapur industrial belt

NAVI MUMBAI : The latest state government policy of converting closed industrial units to residential plots in Navi Mumbai is likely to affect the shape of the 2,500 hectares of the Trans Thane Creek (TTC)-MIDC industrial zone, popularly known as the Thane-Belapur industrial belt.

The state policy, which was declared two days ago following the meticulously charted draft notification of 2016 by the urban development department (UDD), is already drawing varied reactions from factory owners, developers and citizens.

“This state government notification of easy conversion of industrial units for residential purposes will throw open a lot of land area in the industrial zone to make buildings and towers. So, this is a good opportunity for developers in general, as nearly 40 per cent of the industrial units are either shutdown or running into losses. It makes business sense to give it for real estate development,” said Manohar Shroff, former secretary of the Maharashtra Chamber of Housing Industry (MCHI-Navi Mumbai).

However, vice president of TTC-MIDC Industries Association (TMIA), Prakash Padikkal, said, “We have to study this state notification and seek legal opinion, since we feel that the industry as a whole will suffer if there are residential complexes and towers coming up here.”

As per the government resolution on August 20, 2018, any open land or closed industrial unit on such a land, or any existing built-up area in the industrial zone, can be converted for residential and commercial use with permissible floor space index (FSI) with prior approval of the civic commissioner.

The notification also states that for industrial units that have shut down, No Objection Certificates (NOC) of the labour commissioner is required to ensure that the dues of the previously employed workers are paid off.

Padikkal added that TMIA, which comprises 4,000 small and medium scale industrial units employing over 5.5 lakh people, is already in legal dispute with the Navi Mumbai Municipal Corporation (NMMC) over land ownership.

“There has not been any significant infrastructure development in the Thane-Belapur industrial zone, and now the state wants to give away land to builders. Who will run the industry then and what about ‘Make In Maharashtra?’ We will consult all our 4,000 members before taking a tough stand on this issue,” he said.

As per the policy, a premium 20 per cent of the amount will have to be paid to the state government for a speedy facilitation of change of land use, as per the ready reckoner land rates. Also, of the total FSI in the redevelopment process, 25 per cent has to be kept for commercial use.

Right to Information (RTI) activist Anarjit Chauhan remarked, “The government is only looking at lucrative short term gains by pleasing builders and throwing open industrial space. Such a policy can be legally challenged if one goes into the history of the original land ownership and change of use. As per the information that I have gathered, permission of Ministry of Environment (MoEF) will also be required for change of use as this was forest land given to the revenue department six decades ago.”

NMMC commissioner , Ramaswami N, said, “I will have to study this new government notification and then act on it. However, for now I can say that it looks like a win-win situation as residential units are required in industrial areas, and so it can be planned out well.”

Dinkar Samant, former chief architect and Cidco planner, is also of the opinion that such a move (from industrial to residential) is not good for the city.

“It is also not good for the economy. A city exists on three factors — residential, job ppportunities (industrial), and civic amenities. So, if the industrial manufacturing base is further shrunk, it is not good for the city.”

Samant added that earlier, several chemical factories at TTC MIDC were gradually replaced by infotech parks, which are also employing more people.

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Source:realty.economictimes.indiatimes.com

Real estate shows signs of revival after demonetisation

The confidence of homebuyers has started coming back and those sitting on the fence can be seen returning to the market, which is good news for the real estate sector.

The nation’s real estate sector has witnessed many ups and downs ever since the onset of global financial crisis in 2007. However, just as it started doing well during the middle of this decade, the demonetization of high-value currency notes in November 2016 again hit it badly. The crisis was further aggravated due to the implementation of various policy reforms like RERA and GST. Although these reforms were aimed at protecting consumer interest, improving transparency in the sector and making builders more accountable, among others, however it took some time to gain the confidence of homebuyers.

Although more than a year after it was formally implemented, RERA is yet to be implemented in some states, however, its impact is now being felt on the landscape of real estate. No wonder, the confidence of homebuyers has also started coming back and those sitting on the fence can be seen returning to the market, which is good news for the sector.

Another factor which has worked in favour of real estate is the Modi government’s continued focus on affordable housing, backed by its ambitious scheme ‘Housing for all by 2022’. No wonder, as a result of macro-level regulatory developments, the residential sector has witnessed significant structural changes over the past two years, and demand for affordable housing has continued to drive residential sales, which is expected to stabilise going forward.

According to a recent research report by ANAROCK Property Consultants, a whopping 50 per cent jump has been witnessed in new housing launches in the Q2 of the current calender year, ie, 2018, over the preceding quarter, with the maximum supply in the affordable housing segment of below Rs 40 lakh. On the other hand, housing sales across the top 7 cities of the country went up by 24 per cent during the same period compared to Q1 of this year, giving enough indications that hombuyers are coming back to the market and the sector has started showing signs of revival.

The top seven cities – which include MMR, NCR, Bengaluru, Chennai, Pune, Kolkata and Hyderabad — witnessed new launches of close to 50,100 units in the Q2 of 2018 compared to 33,400 units in the Q1 of this year. The major cities contributing to Q2 2018 new unit additions include Mumbai Metropolitan Region, NCR), Bengaluru and Pune, altogether accounting for 75% of the new supply.

Out of the seven cities, the National Capital Region alone contributed close to 17 per cent of the new supply with 8,500 units, showing a 89 per cent rise over that of the last quarter. Of this, 54 per cent consisted of units in the affordable housing segment.

Thus, while the affordable housing segment has been the driving force in the residential sector, even commercial real estate absorption has remained strong, showing signs of a robust business environment. A positive leasing market with strong global occupier demand has sustained investors’ interest in the commercial segment. Also, warehousing and industrial segments are expected to pick up following the granting of infrastructure status to the logistics sector, which is good news for real estate.

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Source:www.financialexpress.com

Industrial plots in Mumbai region opened for commercial and residential development

The decision will permit unused industrial areas or closed industries in satellite townships to be used for malls, residential areas and commercial houses with the approval of the civic commissioner

The state urban development department has opened large tracts of industrial land in the Mumbai Metropolitan Region (except Mumbai) for residential and commercial development.

The decision will permit unused industrial areas or closed industries in satellite townships to be used for malls, residential areas and commercial houses with the approval of the civic commissioner.

The developer will be charged a premium equivalent to the ready reckoner rate of the plot.

A notification was issued by state’s urban development department (UDD) for corporations of Thane, Kalyan-Dombivali, Ulhasnagar, Bhiwandi and Mira-Bhayandar as they have common Development Control Regulation rules – norms for construction and urban planning in an area. A separate notification was issued for Navi Mumbai.

According to the UDD directive, out of the total Floor Space Index (FSI) utilised for the development, a minimum of 25 per cent will have to be reserved for commercial development.

The notification also made it clear that in cases where the land had been originally acquired under the Land Acquisition Act, permission of the state government will be required.

This is being seen as a windfall for real estate developers ahead of the 2019 polls, as it will open up several plots for development.

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Source:realty.economictimes.indiatimes.com

Industrial plots in Mumbai Metropolitan Region opened for development

The state’s urban development department issued a final notification to its ‘Industrial to Residential’ policy for the civic bodies of Thane, Kalyan-Dombivli, Mira-Bhayander, Ulhasnagar and Bhiwandi-Nizampur. These civic bodies share common development control rules for construction and urban planning in an area. 

A year ahead of Assembly polls, the Maharashtra government opened up large tracts of industrial-use land in the Mumbai Metropolitan Region (MMR) for residential and commercial development. The move allows unused industrial plots in MMR to be used for building houses, malls and offices with approval of the civic commissioner and a payment of a premium — 20% of the ready reckoner rate of the plot — to the government.

The state’s urban development department (UDD) issued a final notification to its ‘Industrial to Residential’ policy for civic bodies of Thane, Kalyan-Dombivli, Mira-Bhayander, Ulhasnagar and Bhiwandi-Nizampur. These civic bodies share common development control rules (DCR) — norms for construction and urban planning in an area. A separate notification was issued for the Navi Mumbai civic body.

The notification said that out of the total Floor Space Index (FSI) utilised for the development, a minimum of 25% is to be reserved for commercial development. Floor Space Index (FSI) typically indicates how high a developer can build on a plot. It is the ratio of total built-up area to the size of the plot.

The notification, however, made it clear that in cases where the land had been originally acquired under the Land Acquisition Act, permission of the state government will be required.

The decision is being seen as a windfall for developers since it will open up several unused industrial plots across the seven cities for development, and also increase housing stock in MMR.

However, this may not translate into affordable homes for citizens. The notification states that “provision of inclusive housing shall not be applicable while allowing such conversion”. So while the state has made it mandatory that 20 per cent of the basic FSI utilised should be for building residential tenements with built-up area of 30 sq metres and 50 sq metres (322 sq feet to 538 sq feet), the developer can sell these in the open market. That effectively means developers can join small flats and sell them.

A senior UDD official admitted that while a condition has been put in to ensure smaller tenements, it may not lead to affordable homes.

Urban planning experts said the government’s premise for creating public housing itself was flawed. “There is a complete lack of transparency while formulating such policies. Does the government know how much of industrial land will be opened up for residential development through this move. Is the housing being planned in tandem with transportation systems?” said Pankaj Joshi, director, Urban Design and Research Institute (UDRI), adding that affordable homes can be built only by public agencies. “The state could have made it mandatory to reserve a portion of this development for low-cost homes. These houses could have been handed over to Mhada, which could have auctioned them,” said Joshi.

Builders, too, are sceptical about the move bringing them gains. “It is a welcome move, but I don’t see this necessarily as a windfall for developers. It will also not lead to price correction as developers will have to pay a premium for conversion and there will be other levies,” said Nayan Shah, president of CREDAI-MCHI, apex body of developers

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Source:www.hindustantimes.com

Add greenery to a small space, with vertical gardens

August 2018

Owing to the dearth of green spaces in urban areas, the concept of vertical gardens is slowly gaining popularity among plant lovers. We look at how smartly designed and compact wall gardens, can accentuate one’s décor 

There are many ways, in which one can beautify a residential or commercial space. One way, is through the use of plants, which not only add beauty to the décor but also bring freshness to the atmosphere. “Greenery helps in de-stressing and relaxation. Plants enhance one’s mood and are natural healers. Green walls can be incorporated in one’s interiors, whether it is an office or a home, to create a blissful atmosphere,”

A vertical garden is a method to grow plants on walls. It is also known as a green façade or ‘living green wall’. “Vertical gardens not only look beautiful and add green cover to a barren looking wall but also helps in efficient utilisation of space,”

There are many ways to create vertical gardens. The simplest options, is to attach plant containers to a wall. Alternatively, one can have a frame made, with horizontal rows where the plants can be placed. It all depends on the space available and whether the wall is in the balcony, terrace, outside or even in one’s living room. The wall or the framework must be strong enough to hold the weight of the vertical garden, especially the bigger ones.

Credits : pexels.com

Outdoor vertical gardens

If you plan to grow edibles or outdoor plants, ensure that the vertical wall is outdoors. The produce will always be proportionate to the pot’s size.

Hence, to grow edibles in a vertical format, the size of the pot should be at least five inches, to get sufficient produce. Pot of different sizes and geo bags (made of permeable fabrics) are available, to cater to the growing demand for edible vertical gardens. Micro greens, which are 40 times more nutritious than your leafy vegetables, can be grown in small vertical pots, as well. “Always choose plants as per the pot’s size. Sometimes, people choose to grow huge plants in smaller pots and wonder why they aren’t growing,” cautions Shah. 

Indoor vertical gardens

If you are planting indoor plants or air purifying plants, the vertical wall can be in indoors, where there is less sunlight.

“Nowadays ready frameworks for vertical walls are available, which are easy to install. All you need to do is put the plants. Herbs like basil, peppermint, etc., are easier to grow than vegetables. Air purifying plants like peace lily, pothos, ferns and syngoniums are other easy options. Choose the plants, as per the sunlight available in the specific area. If the vertical walls is high, it would require an irrigation system for efficient usage of water,” states Shah.

To create a vertical garden in or around one’s house, one must be a bit creative or take the help of a professional gardener or horticulturist. “If you wish to be adventurous, then, instead of using regular clay pots, you can opt for plastic bottles, fused bulbs, photo frames, shoes, etc., to make such gardens. Ropes, belts, t-shirts and elastic bands, can be used to hang the planters,” suggests Kayal.

Maintenance of vertical gardens

Vertical gardens require regular maintenance, such as trimming and pruning, to maintain the look of the wall. Hence, it is better to opt for low maintenance plants.

“Alternatively, one can grow plants vertically using hydroponics – i.e., growing plants in water. Such vertical walls are lighter and have less chances of infestation by pests, since most of the pests come from the soil. Furthermore, the water can be recycled. The disadvantage of hydroponic system, however, is that it is expensive as water nutrients need to be added at regular intervals,”

Tips for setting up a vertical garden

The vertical wall garden should ideally be under a skylight or near a window, to ensure adequate sunlight. Fruits and flowering plants need more sunlight. Lack of adequate sunlight will prevent the plants from bearing fruits and can stunt the growth of the plants.

• Arrange the containers symmetrically or in some pattern, so that they look lush and vibrant. One can also arrange the plants as per colours.


• Regularly water, trim and nourish the plants. Removal of drying, wilting leaves and flowers will encourage faster new growth. Add fertilisers in recommended dosages, to keep the plants healthy.


• One must be observant about the pest attacks. It is easy to control it in the early stages.

Also read: The home buyers’ guide to choosing the right amenities

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Source: housing.com

BMC says 90% potholes in Mumbai fixed

August 21, 2018

According to BMC data, 2,089 complaints of potholes have been filed since June, of which 1,897 have been filled. Of the 192 pending complaints, the highest (34) are from Andheri (East), followed by Malad (21). 

In the wake of the row over filling of potholes, the Brihanmumbai Municipal Corporation (BMC) on Monday claimed they have resolved 90% of the complaints received.

According to BMC data, 2,089 complaints of potholes have been filed since June, of which 1,897 have been filled. Of the 192 pending complaints, the highest (34) are from Andheri (East), followed by Malad (21).

Civic body claims there is no pothole in Malabar Hill and Girgaum, while one each in Bhendi Bazaar, Mohammad Ali Road and Chembur. Only two potholes are to be filled in Deonar and Govandi. Civic officials claimed the month-long dry spell reduced the number of potholes.

BMC receives complaints from its website, www.mcgm.gov.in, WhatsApp numbers of 24 ward officers and its toll-free number, 1916. The civic body has to fix the potholes within 48 hours of receiving the complaints. In addition, the Urban Development Department (UDD) on Saturday issued a directive asking all municipal bodies to make public within three weeks the report on the action taken to improve roads.

Under fire for its shoddy road maintenance, BMC last month released an eight-point circular for its staff on how to fill potholes. The directives include a method to fill potholes with the cold mix (material used to fill potholes) and record the amount of material used. According to the circular, the cold mix is to be put in a pothole in a packed gunny bag. It should be used to fill potholes, but not rough patches. According to a senior civic official, the performance has improved following the circular.

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                                                                                                                 Source:www.hindustantimes.com

Follow these startups for finding rented accommodations

August 18, 2018

Searching a house that happily turns into your home has always been a tough task demanding huge time and money investments. However, all thanks to the advent of technology, with every sector booming online, real estate sector is not far.

With the growing number of real estate start-ups, you can now rent a house online. However, like every coin has two sides, the question is how many of them are really genuine or hassle-free.

It is very challenging to get exactly what is shown on the websites or apps. Witnessing the void, here is a list of 5 start-ups which make renting hassle free:

FastFox

FastFox offers the easiest and fastest way to rent a home. How? Through its unique and one-of-a-kind open house framework, wherein FastFox identifies and 'opens' the best, most rentable properties in Gurgaon for the customers to visit during specific hours. Home-seekers can check all property related information online including 100% authentic property pictures and can then visit the properties at the designated open house time.

CommonFloor

India's premium real estate portal, CommonFloor helps the property seeker to find resale properties, residential projects and owner properties in Bangalore, Gurgaon, Noida, Chennai, Hyderabad, Mumbai, Ahmedabad, Kolkata and other cities. It offers complete details of project launches, under construction projects and ready-to-move projects with detailed description of locality, builder, price trends and features.

Makaan.com

Makaan comes with a chat interface - you can also tap buttons in the chat-bubble to use it like a GUI, and it has a great looking interface once you have carried out a search. One can add more filters, and everything is very easy to understand, making it easy for the users to search the perfect house for themselves.

Flatchat

This app provides a platform where home owners and potential tenants can share their location, find contacts in their vicinity and chat with them. It also allows you to sign up to find suitable flat mates to share a rental with. This can make the otherwise difficult process hassle free, since you can find people with the same budget and location preference as you, as well similar hobbies and habits.

Housing.com

The best part about this app is it smooth functioning map. Though the listing is not very high as compared to the other companies, it is doing pretty well in ensuring authentic and good quality property to the users. It also provides the users with the provision to see the property well, before making any decision of renting it.

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Source:www.business-standard.com

TMC plans transparent glass walkway from MH School to Jambli to beautify Masunda

Thane : The Masunda lake precincts is set for a complete revamp with a transparent glass walkway to replace the age-old paver block path that circles around this 'Jewel of Thane'. The civic administration and the public space designers are believed to be working on a plan which will not give a 'modern look' to the city's landmark but will also widen the road and decongest the bustling street. 

The initial discussion on the renovation plans was aimed to upgrade the waterfront by demolishing a part of the existing 4.5m-wide walkway by 1.5m adjoining the lake for over 300 mts. 

"The new walkway will be 1.5 m wide over the Masunda lake bank and will have a 1m steel barricade alongside. The entire 300m stretch of the walkway from Ajramarji junction to Jambli naka will have a transparent floor made of toughened glass for pedestrians to get a feel of walking over water, informed officials," a senior civic bureaucrat told TOI. 

He added that the Masunda lake is one of the most vibrant public space here and in spite of the traffic chaos and the vehicular pollution, the citizens of all ages prefer to spend quality time with their friends and dear ones. 

"It will be a totally modern pathway with a glass flooring and strategically placed LED lights to give it a very classy look," he said, adding that the adjoining motorway will be widened to create more space for easy movement of vehicles. 

The walkway would be illuminated with LED lights at night. The civic official said the project was approved by the general body of the municipal corporation in 2017 as part of lake beautification and the process of floating tenders will take off soon. 

He said the initial estimate is that the beautification project would cost around Rs 7 crores and the turnaround time will be around eight months. 

Meanwhile, environment experts have reacted sharply on this plans and claimed that this infringement could disturb the marine life. 

"Why is the administration bent on disturbing the sanctity of the lake premises in the city? The presence of pedestrians above the water surface will disturb the marine life inside the lake and illuminating it at night will further hamper their existence. The corporation should think of some other options than just adding on to the concrete jungle," said an environment activist. 

The civic officials, however, dismissed any damage to the ecosystem in the lake as the structure would be cantilever and no physical infringement with the lake will be allowed. "We are ensuring the lake premises will not be touched or the marine life inside will not be affected. We have floated tenders for the same. Trees on this stretch will not be affected," assured a civic official.

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Source:timesofindia.indiatimes.com

MHADA to bring down flat prices

In view of piling inventory, Maharashtra Housing and Area Development Authority (MHADA) has decided to rationalise prices of its tenements that will be more realistic and affordable for the homebuyer. 

According to the state housing department, inventory worth Rs 869 crore has remained unsold for the past several years. "There are hardly any takers for the MHADA tenements. People feel prices of MHADA houses are quite high so they prefer to invest with private developers where they can get better facilities. Therefore, we have decided to rationalise the prices," said source in MHADA. 

Sanjeev Kumar, Housing secretary, said, "The new policy will be more realistic. It will be linked to the prevailing market scenario. Currently, irrespective of the market scene, MHADA keeps increasing its property rates. That is unrealistic. Therefore, we need to have a positive change that will benefit both homebuyers and MHADA." 

He said that they have to recover Rs 869 crore blocked in the stagnant inventory. "MHADA is neither a profit-making agency nor any charitable trust. We have to work on no-profit no-loss," Kumar added. 

An official said that MHADA tenement prices are fixed on the basis of its 2015 sale price policy. "While fixing MHADA tenement price, various factors are considered. These factors include contingency fund, unforeseen losses, establishment cost, development charges paid to BMC, actual expenditure and interest over-invested money. This is compound interest; therefore, the tenements cost of MHADA keep increasing despite a glut in the market. Why would people then buy MHADA houses," asked an official. 

Kumar said that they have a long-term plan to provide a roof to every resident. "We are introducing various housing policies that will also help generate more houses. By 2022, in Maharashtra alone, we plan to construct 19 lakh houses," he said.

HOMES FOR ALL

The state housing department has a long-term plan to provide a roof to every resident. By 2022, in Maharashtra, it plans to construct 19 lakh houses

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Source: www.dnaindia.com

Mumbaikars take up self-redevelopment of old apartments

MUMBAI: In a new initiative, a number of cooperative housing societies in Mumbai have taken it upon themselves the task of redeveloping their apartments. 

The Mumbai District Central Cooperative Bank (MDCCB) is also encouraging the initiative by extending loans for the task. 

Around half-a-dozen societies in the city have got the go-ahead for self-redevelopment from the Maharashtra Housing and Area Development Authority (MHADA), an official said. 

The MDCCB has also sanctioned loans to eight societies, a MHADA official said, adding that around 500 housing societies have shown the interest in re-developing their old flats. 

Over 30,000 residential buildings in the megacity are 30 to 80 years' old and in need of re-development. 

Saidham society (building No. 149) at Pantnagar in suburban Ghatkopar has secured 80 percent approval of works from MHADA and the Brihanmumbai Municipal Corporation(BMC). 

The society's Secretary, Shripad Mordekar, said, "Our building is 52 years' old and has 32 members. We have got an offer letter from the MHADA for re-development and will submit it to the BMC soon. After re-development, each house owner would get a 1,000 sqft flat against the present 220 sqft." 

Some builders were offering 484 sqft flats to the society members, "but after self-redevelopment each one of us would get a bigger flat," he said. 

The society's plan is to build an 18-storey building with Rs 58 crore loan from a cooperative bank, he added. 

In the self-redevelopment of an old building, the society's members reap the construction bonanza which was earlier enjoyed by the builder. 

The housing societies appoint their own project management consultants, architects and contractors to execute the project. 

The state government had last year hiked the floor space index (FSI) for redevelopment of MHADA societies from 2.5 to 3, paving the way for more built-up area in flats. 

FSI is the ratio of the total built-up area to the total area of a plot. It is basically a tool that defines the extent of construction permissible on a plot. 

The Chembur-based Chitra Co-operative Housing Society has also decided to go for self-redevelopment after securing permission for it from the agencies concerned. 

The society's Secretary, K B Kadam, said they will start the construction work in the next four months. 

"Our 12-member society was offered 550 sqft flats each by a builder against the present flat area of 400 sqft. But now we are going to redevelop the apartments on our own and each member would get a flat of 1,300 sqft and Rs 38 lakh corpus fund," he said. 

Ajit Kumar, the Secretary of a Goregaon-based housing society, lauded the MDCCB for supporting the residential complexes in their efforts for self-redevelopment of flats. 

"Our construction work is about 80 per cent done, thanks to the MDCCB which offered us a loan of Rs 8 crore for redevelopment," he said. 

This would not have been possible without the bank's help, as builders had refused to redevelop the building citing the small size of the plot, Kumar said. 

When contacted, state housing minister Prakash Mehta said the government wants societies to come forward and take the initiative of self-redevelopment. 

"We are there to lend all support within the framework," the minister said. 

Housing activist Chandrashekhar Prabhu, who had launched a campaign for self-redevelopment some years back, said several builders have stalled re-development projects across Mumbai, leaving house owners in a lurch. 

He claimed that some builders have lost credibility, prompting the societies to take up the re-development work. 

"I am confident that more and more societies will come forward to reap the benefits of self-redevelopment," the former MHADA president and town planner said.

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