Saturday, June 13, 2009

Now, if you cancel the agreement, Maharashtra Government will refund your stamp duties

Maharashtra government to amend Section 48 (pertaining to property sales) of the Mumbai Stamp Act 1958:

The measure is expected to ensure that flat buyers, who want to cancel the agreement made with their builders, can get their stamp duties refunded.

Accordingly, if a builder has suppressed certain facts about the land or if the construction is illegal or the size of the flat is less than what was promised, the buyer can choose to cancel the purchase agreement.

Earlier, the stamp duty could be refunded only if the builder refused to hand over the flat to the buyer.

Stamp duty is a tax collected by the state government on different documents executed in the state.

Currently, the maximum slab for stamp duty is five per cent for all properties valued over Rs 500,000.
To read more, please, visit - Rediff

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Friday, June 5, 2009

Home loans will get cheaper as ICICI, HDFC reduce rates

ICICI Bank cuts lending rates by 50 bps

State Bank of India says room to cut rates by 25 bps

PSU banks may cut rates by 50 bps by mid-June 2009

ICICI Bank, once a price warrior in the retail loan market, may be getting back in the game. The country’s second-largest bank has lowered interest rates on loans by 50 basis points, making it the second rate cut in six weeks. The move will reduce rates on home and auto loans for new and existing borrowers of ICICI.

Other big lenders are also pruning rates in the absence of a quick loan offtake. On May 7, India’s largest home finance company HDFC lowered its prime lending rate (PLR) — the benchmark rate to which all floating rate loans are linked — by 25 basis points. In a less-publicised move, HDFC also made an additional 50 basis points reduction in interest rates for new borrowers availing loans in the range of Rs 30 lakh to Rs 1 crore. This was done by revising the spread between PLR and the loan rate.

A 25-basis points cut reduces the loan EMI by around Rs 15 for every Rs 1 lakh loan, and a 50 basis points lowers the EMI by Rs 30.

The reduction could have been in anticipation of more rate cuts by State Bank of India, the biggest local lender. Indeed, SBI chairman OP Bhatt on Thursday said there was room to cut rate by another 25 basis points on loans as well as deposits.

Speaking to ET, ICICI Bank CEO Chanda Kochhar said: “In the retail segment, we are seeing a change in sentiments. Customers seem to be in a mood to purchase homes. More customers are closing deals. Though we are not yet back to last year’s levels, we are seeing an improvement.” With this rate cut, ICICI’s rates for home loans up to Rs 30 lakh will be 9.25%, the same as HDFC’s while for higher amounts, HDFC loans would still be cheaper. Under the new offering, the rate cut would be greater for new borrowers of ICICI.

Previously, ICICI Bank had different loan slabs: up to Rs 20 lakh, Rs 20-30 lakh and Rs 30 lakh and above; the interest rates on these loans were 9.75%, 10% and 11.5%, respectively. The bank has now merged the first two slabs and interest rates up to Rs 30 lakh would be at 9.25%. Interest rates for loans above Rs 30 lakh would now be between 10% and 11%, depending on the customer profile.

Effective June 5, the revised floating reference rate of the bank would be 12.75%. All the existing retail loan customers, especially home loan customers, will benefit from this reduction. It has also reduced its benchmark advance rate by a similar amount to 15.75%.

Meanwhile, Bank of India chairman and managing director SA Bhat said: “If RBI allows separate PLR for fresh loans, then we will reduce rates immediately.” He indicated that the banking system has already reduced deposits rates by an average of 175 basis points since its peak last year while lending rates have been reduced by an average of 150 basis points. With the result, banks are already taking a hit of 25 basis points in their margins.
To read more, please, visit - The Economic Times

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Thursday, June 4, 2009

Indian HNIs in high demand, overseas

Global property investments are making a comeback, searching for Indian HNIs, who would be willing to buy property abroad, says Sandeep Joshi, CEO of EventPro International.

With slick presentations and smart brochures, backed up by an even better sales pitch, projects in Mauritius, Australia, Thailand , UK and even the USA, are being offered to the Indian HNI willing to buy property abroad, says Joshi.

"With media reports talking of sales picking up in the residential segment, in the past five months, the global property market feels that the Indian HNI has money to invest and their aim is to get a piece of this. The only question is whether the sales pitch would be interesting enough," says Joshi.

To read more, please, visit _ The Economic Times

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Tuesday, June 2, 2009

With Talegaon not picking up in the anticipated manner, Pune’s "new growth corridor" now encompasses Kharadi and Nagar Road(?)

This can be safely regarded as the "most lucrative real estate investment zone" for 2009-2010. (!)

The key demand driver is the Eon IT Park, which offers 4 million sq ft of prime IT space. It is currently in the final stage of completion.

Other IT SEZs and commercial developments are also on the anvil.

Proximity to revamped airport is another point in its favour. Due to the opening of VIP Road that connects Viman Nagar to the airport, connectivity has improved.

The opening of five-star hotels such as JW Marriott, Grand Hyatt and Leela in the near future will add further gloss to the area.

Moreover, at Rs 2,700-3,500 per sq ft, the area appears reasonably priced...(?)

To read more, please, visit - WHERE SHOULD YOU INVEST

What is your take on "Kharadi and Nagar Road"?

Do you consider it as the "most lucrative real estate investment zone"? Are Rs. 2,700 - 3,500 reasonable property rates? Do you expect any appreciation here in the coming 2 - 3 years? Please, share your views in the comments. Comments Policy

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