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Making an investment can be a tricky affair. After all, how do we decide whether we should go for a long term investment or a short-term that will give us easy liquidity? 
 
A long term generally means investment in the <a href="http://www.businessinsider.in/Feeling-suffocated-in-your-new-home-We-tell-you-why/articleshow/48682353.cms">real estate</a> while a short term could mean pumping in money in the <keyword id="6357440" type="ENTERTAINMENT" weightage="20" keywordseo="stock-market">stock market</keyword>. But if you are contemplating between the two, here’s a little help! 
 
<a href="http://www.businessinsider.in/life/articleshow/48345509.cms">Stocks</a> are any day a better option, if you want liquidity and ease in operating your investments. Stocks also offer great growth rates and are flexible over <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> investment. However, if you intend to make a long term investment, fixed assets work best. 
 “A crucial point to note here is that while stock prices can rise and fall, real estate investment almost always brings in more profits. In fact, the allocation towards real estate in most investors’ portfolios has steadily risen since the global financial crisis. This is because investors seek to take advantage of the low correlation between the asset class and equity market,” said <keyword id="2603811" type="UNKNOWN" weightage="20" keywordseo="Kishore-Pate">Kishore Pate</keyword>, chairman and managing director of Amit Enterprises Housing Ltd. 
 
He added that real estate investment offer more stability when compared to stock market, which is volatile to the happenings of across the globe. On the other hand, real estate <a href="http://www.businessinsider.in/Heres-why-investing-in-new-under-construction-homes-is-a-better-idea/articleshow/48371771.cms">investments</a> are also a stable income stream, which is one of its USPs. “The slow but steady correlation between the stock markets and real estate markets provides the important advantage of diversification in an investor’s portfolio,” said Pate. 
 
Besides, increased inflation while adversely hampers the <a href="http://www.businessinsider.in/Planning-to-study-abroad-but-no-financial-planning-We-are-happyto-help-you/articleshow/48785521.cms">rupee</a> value and often puts the stock market on a downslide. While property prices often go up, thus resulting in asset appreciation, unlike in stock market wherein an investor is confused whether to buy or sell a stock. 
 
“Both assets offer long-term appreciation of value. However, if one is looking to create a strong portfolio and has the right kind of funds to invest, real estate will always be a safer and less stressful platform. After all, the demand for homes will never cease as long as we continue populating the planet – what can be a better source of assurance for an investor?” notes Pate. 
 
Image Credit: www.mfxcenter.net

Stock market or real estate? Here’s what we think is a better choice!

Pune is the budding hot property in India! And luxury home buyers are flocking the city to grab a chunk of it. According to industry players, the luxury property in Pune has drawn massive interest from the superrich both in and outside the city. 
	 “Price points for <keyword id="2788423" type="UNKNOWN" weightage="20" keywordseo="Pune-luxury-homes">Pune luxury homes</keyword> are lower than for comparable options in over-heated cities like Mumbai. Luxury homes in Pune are more spacious and have superior individual specifications as well as common-use luxury amenities,” said <keyword id="2603811" type="UNKNOWN" weightage="20" keywordseo="Kishore-Pate">Kishore Pate</keyword>, chairman and managing director of <keyword id="1503086" type="COMPANY" weightage="20" keywordseo="Amit-Enterprises-Housing-Ltd">Amit Enterprises Housing Ltd</keyword>. 
	 
	Additionally, he said that since the city climate is pleasant, it provides for an ideal setting for luxury homes. “Unlike in Mumbai, there is no need for wasteful year-round air conditioning. The investment value of luxury homes is very high, as there is constant demand for them,” he explained. 
	 
	Besides, one of the primary requisites for luxury home is ample space, which is not available in the big cities such as Mumbai. 
	 
	“The Pune luxury homes market is not restricted to ugly, polluted, over-developed and overcrowded ‘prime’ locations’. Since it is a relatively compact city, commuting from various parts of the city is easier. As in Mumbai, the demand for luxury residential units in Pune is highest in areas that provide ready access to the central business district and employment nodes,” he noted. 
	 
	While the traditional expensive areas of Pune such as Sahakarnagar, Boat Club Road and Kalyaninagar have witnessed continuous demand from home seekers, suburbs such as Baner, Aundh and Ambegaon too are witnessing demand for luxury homes in these locations. 
	 
	“These locations provide scenic natural splendour as well as excellent connectivity to the city’s economic nerve centres. This aspect has proved to be a major draw for Pune’s Generation Z luxury home seekers,” said Pate. 
	 
	Interestingly, the demand for luxury housing in Pune has been steadily growing evenwhen the market for luxury homes in Mumbai has been heading south. Pune property market is expected to grow tremendously, driven by the demand for luxury homes in the city.

If you’re rich and looking to buy a luxurious house, head to
Pune!

A decade ago, an Indian woman independent and capable enough to buy her own home was a rare case. However, things have changed today. Latter-day Indian women are very well educated, have good jobs with excellent career growth prospects, and even hold important government or corporate leadership posts. 
	 
	In any case, they certainly have the ability and confidence to craft their own lives, and are very much able to fulfill their dream of owning a home regardless of whether they are married or not. In fact, buying a home is fast beginning to figure as a bigger priority for many Indian women than marriage. This is not surprising, since a self-owned home is correctly seen as the #1 security anchor in India – and the best foundation from which to make long-term life decisions. 
	 
	For women who are investigating the market for suitable properties, here are some points that must consider: 
	 
	1 Prepare for the initial costs 
	 First-time home buyers tend to save a considerable while to get a sizable down payment together. However, keep in mind that property purchase involves several other initial investments like government duties, utilities connection charges, transfer fees in the case of resale flats, insurance and <keyword id="6368033" type="UNKNOWN" weightage="20" keywordseo="Taxes">taxes</keyword>. Apart from your down payment on a home (or your contribution towards a home loan) you need to have an additional fund of 5-6% over the base cost of the property available. 
	 
	2 Be confident about monthly outgoings 
	 
	Anyone eyeing a property purchase should first figure out the monthly mortgage and whether they will be able to afford it. Online mortgage calculators can be helpful, but they will only tell you the value of the principal and associated interests. There are other monthly expenses involved in home ownership, and these include insurances, taxes, maintenance charges, utilities charges, etc. 
	 
	For working women, it is important that all these amounts put together do not exceed 35-40% of their net income. Do not neglect to figure out your overall cost of living before deciding on how big a home loan you can safely service, and keep in mind that property is not the only investment you should make towards your ongoing financial security. You should also put at least 10% of your monthly income into a retirement plan. 
	 
	3 Be realistic and maintain forward focus 
	 
	Home ownership is a great step ahead in a woman's life and towards independence in your retirement age. But your first home is not necessarily the only home you will ever buy. Remember that you can always upgrade in the future if required or desired, so there is absolutely no need to buy the biggest-possible flat now. Never compromise your current financial viability by buying a needlessly expensive home. 
	 
	4 Shop around extensively for <keyword id="35519" type="UNKNOWN" weightage="20" keywordseo="home-loans">home loans</keyword> 
	 
	When it comes to choosing the right lender, do not go by the recommendations of friends or relatives alone. Do extensive research on the several different lending institutions available to you. Ideally, you should get pre-approved for a home loan the interest rate should be the most competitive. Remember that as an Indian woman, you are entitled to ask for a lower rate of interest on a home loan – be sure to insist on this benefit. 
	 
	5 Be sure of the developer's credibility 
	 
	Every day brings new stories about buyers who have been hoodwinked by unreliable developers. Either the project has been unreasonably delayed, has never even taken off or the delivered property (or amenities and facilities) are grossly different from what was initially promised. 
	 
	Do not fall into such a trap - no woman looking for the security of home ownership should have to deal with such a setback. Make sure the developer has a strong reputation on the market by doing multiple checks with reliable agents, the home loan company and also on the Internet. 
	 
	About the author: The article has been written by <keyword id="2603811" type="UNKNOWN" weightage="20" keywordseo="Kishore-Pate">Kishore Pate</keyword>, chairman and managing director of Amit Enterprises Housing Ltd 
	 
	Image: Indiatimes.com

Wise Words for women! Here are 5 tips that female home buyers
should consider

The Reserve Bank of India governor <keyword id="6358908" type="PERSON" weightage="20" keywordseo="Raghuram-Rajan">Raghuram Rajan</keyword> brought cheer to the home buyers when he slashed the repo rate by 25 basis points- from 7.75% to 7.5%. However, does a slash in key policy rates aka lower interest rates make it any easier for a home buyer to decide what kind of investment should he make? 
	 
	Should you buy a new flat or a resale? 
	 “There appears to be no easy answer to this question. People prefer resale flats instead of new ones for various reasons. Sometimes, a certain location just does not offer suitable options on the primary market,” said <keyword id="2603811" type="UNKNOWN" weightage="20" keywordseo="Kishore-Pate">Kishore Pate</keyword>, chairman and managing director of Amit Enterprises Housing Ltd. 
	 
	He further added that property buyers who want to invest in flats do not do enough research and often lose out on good projects. “Or they succumb to the pressure tactics of a persistent real estate broker and buy a resale flat when a new one was available in an excellent location, and within their financial reach. Or they believe that a serviceable flat available at a slightly lower price is always a good bargain.” 
	 
	However, home buyers share a different view on the issue. They often prefer to buy resale flats as they guarantee possession of the property. “I have been planning to buy a flat in Delhi NCR but I am not sure if I should invest in an under construction flat as there have been too many cases of prolonged delay in deliveries or have been completely stalled. On the other hand, I have also checked out the flats on re-sale and they seem safer than the new ones,” said Abhishek Mehra, a senior official with the private sector bank. 
	 
	Not in the same value chain? 
	 
	According to the experts, while resale flats that up on sale are totally in perfect condition, however, that does not mean that they fall in the same value chain as that of new flats. 
	 
	Industry players believed that every second hand flat in the market has some feel of its previous owner left in it. “It is very difficult, if not impossible, to paint a unique masterpiece on a used canvas. Previous owners of a resale flat always leave a certain indelible part of their personality or culture imprinted on the property. While it is possible to fill in and paint over nail holes in unwanted parts of the wall, undoing serious structural modifications is a challenge,” Pate noted. 
	 
	Price factor 
	 
	While it may come across as a surprise for many, builders highlighted that flats in new projects or ready-to-move-in flats often are cheaper than the resale flats up in the market. 
	 
	“In the case of under-construction projects, the sale value of individual units rises only in tandem with the stages of completion. But resale flats often cost as much as (if not more than) new apartments because the relative cost of original acquisition was higher. This is often a function of obsolete construction methods, which are costlier and more wasteful than more evolved construction technologies,” elaborated Pate. 
	 
	Also, a new flat can yield a higher value on being resold in the market as the shelf life of the building is relatively more than many other second hand flats that are up on sale. 
	 
	Upgraded technology 
	 
	Industry players also believed that a new flat has an edge over old flats, which are being resold, in terms of the technology. While old flats are in good condition, however, builders are using new concepts and technology to build new flats in their latest projects. 
	 
	“Flats in new projects by good developers tend to be more energy efficient, environmentally compliant, user-friendly and space-optimized. Reputable developers are like : they are constantly upgrading their knowledge, techniques and equipment. They do this to remain relevant and competitive in a market which they know to be replete with other options for buyers. The benefits of this mind-set are directly passed on to the buyers,” he explained. 
	 
	He elaborated that new flats come with new fixtures and fittings that ensure minimum problems after usage. On the other hand, key fittings in a resale flat generally tend to be old and used and hence can give problems to the new owner within few months of the possession, thus, levying additional costs on the new owners. 
	 
	Hence, it is advised that while investments in a resale flat can guarantee a sure shot possession, it would be wiser to weigh both the pros and cons of a flat in a new project.

Buyers’ Alert: It’s
resale versus new flats in the property market

Indian <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> players have asked the BJP government to enable single window clearances for residential projects across the country. The realty players complained that the current process of obtaining a licence for a residential project is counter-productive. 
	 
	“The process of project approval must be revised so that developers can launch more projects and increase supply, which will help in keeping prices down,” said Kishor Pate, chairman and managing director of Amit Enterprises Housing Ltd, a residential real estate player. 
	 
	He further added that just because approvals for projects have not yet been streamlined in the country testifies the bureaucratic stronghold, and has resulted in unnecessary losses to the stakeholders involved. “The ill-effects are most visibly seen in Maharashtra, where the various constraints on real estate development have in fact played a big role reducing the pace of State-level growth,” explained Pate. 
	 The real estate sector contributes majorly to the country’s <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword>. Interestingly, a real estate player is required to get over 50 approvals from different agencies to launch a project. “This sector cannot perform optimally in a scenario where a bewildering multitude of agencies are involved in processing approvals for real estate projects,” stated Pate. 
	 
	Industry experts point out that the woes of realty players doesn’t end with obtaining the approvals from multiple agencies. The procedural complications further increase once a project is cleared for development. A project can get road-blocked at any stage between construction commencement and completion because one or the other clearance or approval is being delayed by some government department or the other. 
	 
	The delay in obtaining various permits even at the time of development results in unaccounted expenses which is finally bore by the innocent consumers, who have invested in the property. 
	 
	“Any delay in licenses further postpones the project delivery to the end consumers. This is why investing in real estate sector is considered to be a murky business as no one knows how much time will a project take to commence and finally be completed for delivery. If the approvals are streamlined, real estate players will be able to win the confidence of the end consumers,” said another distressed real estate players. 
	 
	Industry players have estimated that the prices of residential projects will come down by nearly 35% if a single window clearance mechanism is implemented. 
	 “The government can also introduce additional incentives in the form of waiver of registration costs and stamp duties among others for land purchase for developers undertaking such projects. Other additional pay-outs for residential projects to the government, such as conversion and internal development charges, could also be waived. The policy could fix the maximum price for such projects, thus enabling them to remain truly affordable. Also, for such affordable housing projects, density and FAR norms can be increased to enable mass housing at lower costs,” said Anuj Puri, chairman and country head of <keyword id="484198" type="COMPANY" weightage="20" keywordseo="JLL-India">JLL India</keyword> sometime back.

Real Estate Demands Single Window Clearances From The BJP Govt

For Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword>’s dream of Housing for All to come true by 2022, there are several challenges that the government has to overcome. One of the major challenges being the unresolved issue of <keyword id="6354861" type="UNKNOWN" weightage="80" keywordseo="illegal-construction">illegal construction</keyword>. 
 
“This has been a global phenomenon, crippling cities and compromising their logical growth. Urban development is not just about high rise constructions but a painstaking planning. Open spaces and revised construction are a part of this planning and thus countries like India have been investing in demolitions as a planning tool,” said Kishore Pate, chairman and managing director of Amit Enterprises Housing Ltd. 
 He added that illegal construction in the country continues to adversely impact the sustainable model of cities that the government aims to have. “Illegal constructions continue to cripple roads, public spaces and other amenities. Successful urban planning in India will only have a future when it is complemented by efforts to educate the masses about its importance. <keyword id="6354553" type="COMPANY" weightage="80" keywordseo="real-estate">Real estate</keyword> buyers need to know how illegal constructions impact regional planning and development – and them personally,” noted Pate. 
 
Time and again, industry experts have addressed the issue and suggested a greater emphasis on creating awareness among the residents of the city about the dangers of illegal construction. “More awareness would lead to greater due diligence at a consumer level. We have nation-wide campaigns about the evils of tobacco use – can such efforts not be put into creating greater awareness about this social evil?” questioned Pate. 
 
Arvind Jain of Pride Group also noted that education around urban planning is also extremely important for developers. “However, if we look at the problem of illegal construction in India, it is evident that the root cause is developers who just couldn’t care less,” he asserted. 
 
Industry players attribute the rising cases of illegal constructions to the fact that unscrupulous developers stand to benefit from such unauthroised projects. “Where illegal constructions grow alongside legal constructions, urban areas soon become wastelands of mismanagement and pollution,” stated Jain. 
 
Some of the major problems arising out of illegal construction includes absence of housing-related public services such as water and sanitation, which is also key to PM Modi’s Smart City project. 
 
“The haphazard distribution of such illegal structures makes it extremely costly for municipalities to provide water, sewage facilities and roads even if they are ‘regularized’. The residents of such areas and buildings are not eligible for loans improve their homes or to expand business that they run from them, since banks will not accept illegal structures as collateral. In the case of multi-level residential buildings, buyers can lose their entire investments – often their life savings -if the building is found to be illegal and demolished,” noted Pate. 
 
Image credit: Indiatimes

Smart cities: Here's how illegal construction is a dampener for PM Modi's pet project

Have you ever wondered why is your <a href="http://www.businessinsider.in/Feeling-suffocated-in-your-new-home-We-tell-you-why/articleshow/48682353.cms">apartment</a> called what it is called? Or who thought of the name? Or why does an apartment right in the middle of city have a fancy European name? 
	 
	We tell you why! With competition soaring in the market, the realty market is no exception to marketing guru Philip Kotler’s mantras! 
	 
	 “The idea is to create a certain impression and aspiration in the minds of the target clientele, and when this is done with enough research and sound marketing advice, this objective can definitely be fulfilled,” says Kishore Pate, chairman and managing director of Amit Housing Enterprises Ltd. 
	 
	However, this is a trend that is predominantly seen in premium and <a href="http://www.businessinsider.in/Want-a-luxury-home-You-might-want-tocheck-this-out/articleshow/48812740.cms">luxury homes</a> segment. So what are the factors that influence these names? 
	 
	The ethos 
	 
	Like any company in the world that would associate its product to a certain cultural ethos, <a href="http://www.businessinsider.in/Know-why-NRI-home-buyers-are-back-on-propertydevelopers-radar/articleshow/48096968.cms">real estate</a> developers take certain ethos into consideration before naming their residential projects. 
	 
	“With yet another category of project names such as those that evoke a certain cultural ethos, the intention will be to attract buyers from a certain community within a city. Such names may seek to speak to buyers from the traditional ‘core’ sector of the city, which would like the thought of being able to include such a name in their address,” explains Pate. 
	 
	For instance, if a developer is coming up with a European-themed residential project, he will naturally choose a name that gives a European feel and ethos to the apartment. 
	 
	“This ethos would include a lot of things, including a sense of chilled-out global ambiance, exclusiveness and social ‘arrival’. Such names are usually given to themed gated projects and townships wherein the developer has gone to considerable pains to recreate the identified cultural ethos in the project with its specifications, amenities and design, including the interior decor of individual units,” he says. 
	 
	Social configuration 
	 
	Social configuration, in pure marketing terms primarily means positioning of the project. Every developer wants to position its project in a unique way in the market. Sometimes, a particular name is given in order to create a certain image in the <a href="http://www.businessinsider.in/Heres-why-investing-in-new-under-construction-homes-is-a-better-idea/articleshow/48371771.cms">home</a> buyers. 
	 
	“The naming of residential projects can play a significant role in how much attention they garner on the market. While the name-selection process may sometimes seem random, there is more often than not a great deal of psychology and marketing thought behind it,” notes Pate. 
	 
	Often builders use ‘regal’, ‘grand’, ‘ace’ among others while naming their project if they are launching a project in premium or luxury segment. Similarly, developers would use names that mean ‘mass’, ‘community’ or unity if their apartments are in the mass housing segment. 
	 
	Mind set 
	 Often <keyword id="6371902" type="UNKNOWN" weightage="20" keywordseo="home-buyers">home buyers</keyword> in India associate superstition while buying their dream homes. For instance, a name that does not sound too good or may mean something negative in some language may deter several home buyers from buying home there. 
	 
	“The developer will seek to find a name that ‘speaks’ the local language and also conveys the image or impression that he is trying to create,” says Pate. 
	 
	Target clientele 
	 
	Ultimately, the developer wants to sell its apartments to the potential home buyers. Hence, he will name the apartment keeping in mind his target customers. Also sometimes, the developer wants to build a certain image for himself in the market and an appropriate name for his projects will certainly be a booster. 
	 
	“Previously, a number of good names were up for grabs – today, there is high competition among developers to find the best possible names. Developers will seek to keep the names of their projects a secret until they are ready to unleash the complete marketing campaign, to reduce the chances of competitors plagiarizing these names for their own projects,” notes Jain. 
	 
	At the moment, there is no well-defined ‘copyrighting’ mechanism to protect their choice of names in the realty market. 
	 
	Image Credit: www.top10zen.com

Here’s how your apartment
got its name!

The Modi government that presented its first full-fledged <keyword id="2609226" type="UNKNOWN" weightage="20" keywordseo="Union-Budget-2015">Union Budget 2015</keyword> on Saturday has disappointed aspiring home buyers in the country. The <keyword id="45093" type="UNKNOWN" weightage="20" keywordseo="Aam-Aadmi">aam aadmi</keyword> was hoping for some big bang reforms in the Budget 2015 that would bring down the sky-high real-estate prices and make it more affordable for his pockets, but it didn’t. 
	 “It still is the same. <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">Home loan</keyword> will continue to remain expensive so nothing changes for us,” said Swapnesh Pattnaik, a HR professional who had deferred his plan to buy a residential property in Gurgaon in hopes of getting some relief in the budget. 
	 
	According to real estate players, the budget has fallen short of expectation and did not deliver on many fronts. “It has not provided any direct relief for the common man. It has not increased personal income tax deduction limits, nor has it provided any relief for home loan borrowers,” said Kishor Pate, chairman and managing director of Amit Enterprises Housing Ltd. 
	 
	He added, “However, the previous budget had already given relief on those fronts, so it was not really likely that this budget would go further”. 
	 
	Seeing the government’s resolve to provide affordable housing for all, home buyers were hoping the Centre to make rate of interest on home loans more reasonable. “Paying so much interest has serious implications on the family budgets of most middle-class wage earners. It is not surprising that many of them currently shy away from home loans. The budget should bring the interest rate on home loans down to between 7.5%-8.0%,” noted Pate. 
	 
	Besides, the government also deferred the implementation of Goods &amp; Service Tax for next year, thus delaying its positive impact by a year. “At least this year, the buyers will not be spared from the excessive taxes,” noted industry player. 
	 
	However, realty developers have hailed the government’s decision to abolish wealth tax and levy a 2% surcharge on the super-rich individuals in the country. Puri explained that the fact that the minimum cap for the tax has been raised to Rs 1 crore from the previous cap from Rs 30 lakh, is a good news for the common man. 
	 
	“In India, a major share of personal assets is in the form of real estate, particularly in the urban areas, where real estate prices are very high. Effectively, this new measure implies that a lot of urban housing stock is out of the purview of the new Super Rich tax, and this is a relief for the common man. Only houses priced above Rs 1 crore will now be taxable,” Anuj Puri, country head for JLL India. 
	 
	The budget has neither revised the cost of property registration that every home buyer ends up paying. “The recent hike in ready reckoner rates in Maharashtra has been a sentiment setback for the real estate sector. Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few base points to aid consumers”, stated Pate. 
	 
	Overall, neither have the home buyers nor the real estate players have found the budget to be a real game changer as far as property-buying is concerned.

Union Budget 2015: Is it a thumbs down for home buyers?

<keyword id="637909" type="UNKNOWN" weightage="20" keywordseo="Akshay-Tritya">Akshay Tritya</keyword> is around the corner and <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> developers betting big on this days to clock-in a good sale this time around. However, keeping in mind the current scenario, is it wise to invest in property across the country? 
	 
	“Akshaya Tritiya is one of those days in the year where one stands to benefit significantly from every new acquisition. And this day has been associated with the buying of gold and property since ancient times. Akshaya literally means ‘endless’,” said Kishore Pate, chairman and managing director of Amit Enterprises Housing Ltd. 
	 
	He added, “Akshaya Tritiya is a divine day for the start of any activities, most especially investments and business ventures. Property brought on this day brings with it the assurance of non-diminishing (‘akshaya’) good fortune.” 
	 According to the industry players, the beliefs of the people play an important role in the decision making process of the <keyword id="6371902" type="UNKNOWN" weightage="20" keywordseo="home-buyers">home buyers</keyword>, hence, developers offer their projects around this time. 
	 
	Besides, the consumer sentiment in the market has been low and hence builders are offering great discounts to woo more consumers. “Needless to say, the property market is kept quite busy during Akshaya Tritiya. This year, Akshaya Tritiya falls on 21st of April, both and Indian tradition and the many good deals available in this period indicate that there cannot be a better time to buy a home," he noted. 
	 
	Interestingly, the four day property expo by Maharashtra Chamber of Housing Industry (MCHI-Credai) that began on April 11, saw massive turnouts as developers offered great discounts and schemes on their projects for Akshay Tritya.

Buyers
Alert: Buy your home this Akshay Tritya?

Should you buy a <a href="http://www.businessinsider.in/Still-sitting-on-a-fence-to-buy-your-dream-house-2016-may-be-a-good-year-to-do-that/articleshow/50380104.cms">new flat</a> or a pre-owned? While developers want you to buy new flats, for obvious reasons, there are many who feel that buying a pre-owned one is a better idea. 
	 
	“There appears to be no easy answer to this question. People buy resale flats instead of new ones for various reasons. Sometimes, a certain location just does not offer suitable options on the primary market,” said Kishore Pate, chairman and managing director of Amit Enterprises Housing Ltd. 
	 
	He further added that <a href="http://www.businessinsider.in/Heres-why-investing-in-new-under-construction-homes-is-a-better-idea/articleshow/48371771.cms">property buyers</a> who want to invest in flats do not do enough research and often lose out on good projects. “Or they succumb to the pressure tactics of a persistent real estate broker and buy a resale flat when a new one was available in an excellent location, and within their financial reach. Or they believe that a serviceable flat available at a slightly lower price is always a good bargain.” 
	 
	However, home buyers share a different view on the issue. They often prefer to buy resale flats as they guarantee possession of the property. 
	“I have been planning to buy a flat in <a href="http://www.businessinsider.in/Can-Gurgaons-property-market-really-pick-up/articleshow/50483172.cms">Delhi NCR</a> but I am not sure if I should invest in an under construction flat as there have been too many cases of prolonged delay in deliveries or have been completely stalled. On the other hand, I have also checked out the flats on re-sale and they seem safer than the new ones,” said Abhishek Mehra, a senior official with the private sector bank. 
	 
	According to the experts, while resale flats that up on sale are totally in perfect condition, however, that does not mean that they fall in the same value chain as that of new flats. 
	 
	“It is very difficult, if not impossible, to paint a unique masterpiece on a used canvas. Previous owners of a resale flat always leave a certain indelible part of their personality or culture imprinted on the property. While it is possible to fill in and paint over nail holes in unwanted parts of the wall, undoing serious structural modifications is a challenge,” he noted. 
	 
	While it may come across as a surprise to many, builders highlighted that flats in new projects or ready-to-move-in flats often are cheaper than the resale flats up in the market. 
	 
	“In the case of under-construction projects, the sale value of individual units rises only in tandem with the stages of completion. But resale flats often cost as much as (if not more than) new apartments because the relative cost of original acquisition was higher. This is often a function of obsolete construction methods, which are costlier and more wasteful than more evolved construction technologies,” elaborated Pate. 
	 
	Also, a new flat can yield a higher value on being resold in the market as the shelf life of the building is relatively more than many other second hand flats that are up on sale. 
	 
	Industry players also believed that a new flat has an edge over old flats, which are being resold, in terms of the technology. While old flats are in good condition, however, builders are using new concepts and technology to build new flats in their latest projects. 
	 
	“Flats in new projects by good developers tend to be more energy efficient, environmentally compliant, user-friendly and space optimized. Reputable developers are like doctors - they are constantly upgrading their knowledge, techniques and equipment. They do this to remain relevant and competitive in a market which they know to be replete with other options for buyers. The benefits of this mind-set are directly passed on to the buyers,” he explained. 
	 
	He elaborated that new flats come with new fixtures and fittings that ensure minimum problems after usage. On the other hand, key fittings in a resale flat generally tend to be old and used and hence can give problems to the new owner within few months of the possession, thus, levying additional costs on the new owners. 
	 
	Hence, it is advised that while investments in a resale flat can guarentee a sure shot possession, it would be wiser to weigh both the pros and cons of a flat in a new project.

Should you buy a new or pre-owned
flat?

<keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">Real estate</keyword> stakeholders in every Indian city are looking forward to the upcoming <keyword id="570446" type="UNKNOWN" weightage="20" keywordseo="financial-budget">financial Budget</keyword> 2015 to see whether it will provide any relief to the sector. Developers have their own expectations, because positive announcements for real estate buyers made during the budget will help increase the market sentiment, and therefore sales. The general hope is that the <keyword id="6360189" type="COMPANY" weightage="20" keywordseo="Union-Budget">Union Budget</keyword> this year will provide cheer to intending home buyers who have been deterred for various reasons. 
 
Make home loans affordable 
 The Union Budget 2015-16 should make the rate of interest specific to home loans more reasonable. Currently, banks are offering <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> ranging between 10.15-10.40%, and this is far too high. Paying so much interest has serious implications on the family budgets of most middle-class wage earners. It is not surprising that many of them currently shy away from home loans. The budget should bring the <keyword id="37018" type="UNKNOWN" weightage="20" keywordseo="interest-rate">interest rate</keyword> on home loans down to between 7.5%-8.0%. The new government has clearly stated that it wants to make Housing For All Indians a reality by 2022. It is impossible to achieving this goal if home loans do not become affordable to all, as well. 
 Additionally, the <keyword id="6354730" type="UNKNOWN" weightage="20" keywordseo="Home-loan">home loan</keyword> interest amount exemption under <keyword id="6354751" type="COMPANY" weightage="20" keywordseo="Income-Tax">Income Tax</keyword> benefit should be increased from the existing limit of Rs 1.5 lakh to Rs 3 lakh. Further, this exemption should be made applicable for more than single property purchases. This is not an unreasonable expectation. In the current times and in many cases, a single home is not enough to accommodate all family members. The <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword> ministry should take due note of this fact and accordingly provide relief for both first home and second home buyers. 
 
Eliminate multiple <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> on property purchase 
 The budget should also do away with the multiple taxes involved in the purchase of residential property. As of now, home purchasers are required to pay <keyword id="6355686" type="COMPANY" weightage="20" keywordseo="Service-tax">service tax</keyword> and value-added tax (VAT) on top of stamp duty and registration charges. Goods and Service Tax (<keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword>) should be introduced in the place of these taxes. Also, the real estate industry expects the Budget to finally make the Real Estate Regulatory bill a reality this year, so that the industry has the benefit of an apex body via which all concerns can be addressed transparently and efficiently. 
 
Reduce cost of property registration 
 
Another expectation from the Union Budget is a reduction in the cost of property registration. The recent hike in ready reckoner rates in Maharashtra has been a sentiment setback for the real estate sector. Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few base points to aid consumers. Alternatively, a slab-based approach should be introduced. Stamp duty falls under state government purview, but the Center can nevertheless issue a directive to reduce stamp duty costs. 
(About the author: Kishor Pate is the <keyword id="147380" type="POSITION" weightage="20" keywordseo="chairman-and-managing-director">chairman and managing director</keyword> of residential real estate firm Amit Enterprises Housing Ltd.)

What real estate buyers should expect from Budget 2015?

With the <keyword id="2549811" type="UNKNOWN" weightage="20" keywordseo="Budget-2015">Budget 2015</keyword> around the corner now, real estate developers are keeping their fingers crossed for Modi’s government to announce policy reforms that will change the dynamics of the industry. 
 
Industry players have commonly voiced that the government must announced reforms to cut down on the bureaucratic red tape involved in project development. “Expedited clearances for a larger segment of residential projects will be a key for reducing project delays. An announcement that streamlines the process of obtaining clearances will go a very long way in boosting the real estate industry,” said Anil Pharande, chairman and managing director of Pharande Spaces. 
 
The current scenario 
 According to Rohit Gera, managing director of <keyword id="639898" type="PERSON" weightage="20" keywordseo="Gera-Developments">Gera Developments</keyword>, the realty sector has been under stress as the sector is a highly capital intensive business, with a major portion of the residential segment being financed through customer sales proceeds. “Developers therefore do their budgeting with this assumption and therefore, for the most part, finance costs on construction of the project are not factored in the proforma profit calculations. As a result, when sales are slow as they have been, developers (who have access to construction finance) are forced to borrow and the interest costs eat into profitability,” said Gera. 
 
He further added that in the past few years, the construction costs have surged “This gets further compounded when construction costs rise more than the increases in the sale prices of the apartments. In 2009, in spite of the continuing negative sentiment based on the global meltdown, the UPA re-election led to an instant impact to the stock and real estate markets. This time however, even though the mandate has been far more decisive, the real estate segment has not seen the turn in customer sentiment and purchase. I believe this is because people are waiting to actually see the benefits to their pockets of the ache din promise by the government,” noted Gera. 
 
Pre-budget expectations 
 Industry experts have suggested that the government will have to take several measures to improve the sentiment in the <keyword id="6543013" type="UNKNOWN" weightage="20" keywordseo="real-estate-sector">real estate sector</keyword>. Apart from reducing the red tapism that mars the industry, realty developers expect the government to take steps to regulate the construction material costs. 
 
Reiterating Gera’s concerns, industry players have emphasized that the government has to regulate the rising prices of raw materials such as cement and steel as they have adversely impacted the input cost of a project. “The costs of raw materials such as cement and steel need to be brought down or an upper ceiling imposed on their prices,” stated Pharande. 
 
Apart from regulating the input cost of a project, industry players have also suggested that Union Budget 2015-16 should address the tax issues in the sector. In what could be a relief for the home buyers, the developers have recommended the government to remove multiple taxes such as VAT and service tax along with stamp duty and registration charges while purchasing a house. “Stamp duty and registration costs are as high as 6% in most cases, and this needs to be reduced by a few base points to aid consumers. Alternatively, a slab-based approach should be introduced. Stamp duty falls under state government purview, but the Center can nevertheless issue a directive to reduce stamp duty costs. Also, Goods and Service Tax (GST) should be introduced in the place of these taxes,” said Kishore Pate, chairman and managing director of Amit Enterprises Housing Ltd. 
 
Raising the issue of ambiguity in the functioning of the real estate sector, builders have recommended the government should implement the Real Estate Regulatory bill, which will bring in an apex body in the sector, which is expected to address concerns with transparency. 
 
The credit challenge 
 
Real estate players have time and again asserted that realty sector is a capital intensive sector and raising finance for newer projects has been a challenge. With the budget 2015 soon to be announced, industry players are hoping that the government will be more pro-active in facilitating credit availability for the industry. 
 
“The budget needs to do something to bring down the cost of borrowing for developers, because raising capital for development of new projects remains a huge challenge. Lending rates for real estate development currently range between 12% to 14%, and raising funds through other sources is even more expensive. The interest rates on lending to real estate developers should be brought down so as to help rationalize the cost of construction. This would also help in bringing down property prices,” said Arvind Jain, managing director of Pride Group. 
 
Talking about higher interest rates that have dampened the consumer sentiment in the past few years, Jain noted, “We real estate sector was cheered by the recent cut in interest rates, but it was by itself not sufficient to amount to any real advantage to home buyers. The Union budget should bring a significant decrease in interest rates on home loans. The Ministry for Urban Development and Housing had made it clear that it would maintain a sharp focus on reducing home loan interest rates, and the budget will hopefully bring firm evidence of this focus. Developers, home buyers and banks are all keenly awaiting such an announcement, which would bring with it a significant revival in sentiment”.

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