City To Have More Malls

City to have more malls
 

Malls are coming up at a rapid pace in newly developed areas of Hyderabad. In the next two years, new residential areas will also have facilities on par with the main city. people in smaller neighbourhoods will no longer have to visit general stores for their everyday shopping. With the advent of malls in every part of the city, shopping was never as convenient.ῠ In a bid to cater to the changing needs of people, real estate and infra companies are now focussing on malls and multiplexes. real estate and infra companies say, residents of their townships and people in the nearby neighbourhoods can get the best of everything under one roof.

Some companies also expect that the commercial activity in the surrounding areas, will enhance the value of the residential projects, ensuring returns on the investments of property buyers. Many companies, including Lanco, GVK, Manjeera, DSL Infrastructure Private Limited, have already taken up projects in city. The Lanco group is coming up with 16 theatres in its multiplex as part of the Lanco Hills project at Manikonda. “We are investing Rs 650 crore for developing the multiplex with 2 million sft by the end of 2011. It will be the biggest multiplex in South-East Asia,” said S.Pochender, CEO of Lanco Hills project.

GVKOne, which is being constructed with an investment of Rs 100 crore in Banjara Hills will house fashion labels, hypermarket, food courts and a 5-screen multiplex. “Our project will provide a wonderful experience to people,” says Isaac George, CFO, GVK. DSL Infrastructure and Space Developers Private Limited, has already begun the construction of a 4-screen multiplex in 5 acres of land in Uppal, anticipating a huge response from residents of surrounding areas, including LB Nagar, Dilsukh-nagar and Ramanatapur.

The construction work is likely to be completed in 18 months. “Multiplexes will rule the entertainment industry as the spending power has increased. More over, viewers are giving top priority to quality experience,” said Manoj Agarwal, managing director of DSL Infrastructure. Manjeera Projects has acquired six-and-a-half acres of land for the construction of a 5 screen-multiplex along with a shopping mall and residential project. “people who live on the outskirts of the city need not go too far for their entertainment needs once this multiplex project is completed,” said G.Yogananad, managing director of Manjeera Projects. these companies are also giving top priority to parking, since it has become a major problem in the existing shopping malls and multiplexes. “GVKOne provides parking space for more than a 1000 cars,” said P. Surya Prakash, MD of Satyavani Projects, consultancy firm of GVKOne.

Pre-EMI interest waiver lures buyers
 

Several builders in the city are coming forward with ‘pre-EMI interest waiver’ schemes to attract buyers and to beat the glut in housing sector.ῠ Usually, once the bank disburses the loan, the pre-EMI interest has to be borne by the customer. This adds to the financial burden of the customer who may already be paying a high rent for the place where he is staying. Builders are now volunteering to pay the pre-EMI interest on behalf of the customer till he or she possesses the flat. The EMI payment of the customer starts after possession.ῠ With sales of flats decreasing and prices showing little signs of cooling down, many builders such as Manjeera Constructions, Indu Projects, Aliens Groups and Parsvnath are offering such schemes to boost sales.

They have tied-up with banks such as ICICI, HDFC, IDBI, Axis Bank and Birla Home Finance for this.ῠ “Of the three categories–Rs 40 lakh and below, Rs 40 lakh to Rs 1crore and Rs 1 crore and above–the middle category is the hardest hit,” says Mr Yoganand, chairman and managing director of Manjeera Constructions Ltd. “We are concentrating on this sector.”ῠ He adds that the firm was giving customers of this category a two-year pre-EMI interest holiday. “With this, they can book the flat just by paying 15 per cent of the amount and take a bank loan for the remaining 85 per cent,” he adds. “And for the first two years they need not pay pre-EMI interest. After two years, when they get the property, they can start paying their EMI straightaway.”

Builders say such schemes have pushed their sales up by 10 per cent to 25 per cent and are also enabling them to finish projects at a faster pace.ῠ Buyers are also finding it attractive since interest rates of housing loans have risen to 12 percent from the earlier seven percent.ῠ “This will help reduce the burden on customers,” says Mr D. Kiran Kumar, marketing manager of Parsvnath Developers.

Plotting your development
 
By Rai Umraopati Ray

ῠ
In the past few years, the residential segment of the real estate sector has witnessed numerous trends and innovative concepts as far as the offering of products are concerned. Today, the classification of residential accommodation available ranges from simple, budget-friendly, two-bedroom apartments to web-enabled, hi-tech lofts, spacious builder floors, state-of-the-art penthouses and condominiums to luxurious villas for the affluent. Most residential projects are equipped with luxurious amenities and facilities like a club-house, swimming pool, gym, spa etc.
However, the good old way of buying a plot is still a popular and preferred choice in the realty arena, especially in the upcoming Tier II and III cities. The demand for a good residential plot is even higher in the metros, though only a limited section of people has access to it due to skyrocketing prices.ῠ

For instance, in the upcoming city of Guntur in Andhra Pradesh, which has undergone a makeover in the last four to five years, plotted development is always looked forward to both by investors as well as end-users. Even, miles away in Faridabad in the northern part of the country, the market response towards plotted development is much better than any other residential options.

Says Amit Jain, Vice-President, BPTP, the realty major in Faridabad whose plots were all sold in the city within months of the launch, “It is a typical phenomena everywhere when the realty market of any city starts growing plots are preferred options in comparison to any other classification as they are affordable, give good/maximum returns and the availability of land is not an issue. For example, Faridabad is currently a haven for investors as rates are almost half of those prevalent in Gurgaon, Noida or Delhi. However, once the prices of plots get to a certain level, they are soon followed by flats and other developments.”

Avers R.G. Shashidhar, a local property consultant in Guntur, “Since landed property is a sign of prosperity and luxury, people go for such deals in the initial phase of the development of any upcoming city. The decision is dominated not only by funds available and cheap rates, but also by the demand and supply ratio and the availability of land. It is said that as a city or town develops and the realty market is exposed, plots are not only favoured over built-up accommodation, but are also viewed as good investment options.”

Adds Jain, “It takes time for new markets to accept new trends. People in these cities are also alien to the concept of penthouses and condominiums. In Farida-bad, though quite a few group housing projects have been launched, constructed flats or apartments have not been handed over. I am sure that once the trend for buying flats starts it will catch on just like it is happening in the more mature markets of Delhi and Gurgaon.” It is intriguing but true that as the realty market grows, people buy plots because of the cheap rates and when the market attains maturity and growth, people buy plots for exclusivity!

Home loans and Gen X
 

Taking a cue from the current financial problem in the US - with special focus on the sub-prime crisis - and combined with their own bad experiences, Indian banks are restraining themselves in doling out loans to young borrowers or the so called Gen X because of their inconsistent repayment patterns.

As per industry reports, borrowers below the age of 30 have become main defaulters, especially in the housing loan segment. The percentage of young borrowers below the age of 30, who have defaulted, is quite high in comparison to other age groups. On the other, non-performing assets (NPAs), are on an average five to seven per cent for the housing loan industry and in some cases, almost 10 per cent. Banks are facing the highest increase in defaults in the home loan segment and are beginning to feel the pinch after growing their portfolio at rocket speed in the last few years. Thus to maintain their accounts, banks are observing all due diligence practices before giving out new loans and are especially careful while entertaining young customers.

Says a senior official of a reputed private bank who did not wish to be named, “Several banks and housing finance companies already have thousands of notices telling them to recover the few thousand crore rupees from the market. The total NPAs have grown to risky levels and seeing the current financial mayhem and inflation figures, it makes sense to identify the price risk on the border cases, which are mostly the younger lot who have an almost negligible credit history. In fact, with the new trend of switching jobs (in the private sector) every couple of years, it is quite expensive and difficult to keep track of loan borrowers if they don’t wish to fulfill their debt commitments.”

Though, as per data available, loan defaulters are from almost every age-groups the younger lot seem to play truant with their lenders much more often. When there was a housing boom in the country and there was easy availability of finances, many youngsters plunged into the market without keeping a long term view of their investments. Now, with rising interest rates and inflation, those without any planning are defaulting or are on the verge of doing so because many have found themselves on sticky ground. On the other hand, banks are finding it tough to trace young defaulters because of changes in residence, companies and in many cases even cities. Combined with all this, the long procedure in debt recovery is what is restraining banks to go for a young, inconsistent customer base.

However, that said, in the current situation borrowers are not the only ones to be blamed as banks especially private ones are equally responsible. The onus is on banks to give credit and to observe all due diligence practices. To expand their business, it was the banks that were luring young borrowers, by resorting to all sorts of practices ignoring the thumb rule that home loan repayments should be restricted to 30 per cent of a borrower’s monthly income. In fact, not long ago, O.P. Bhatt, Chairman, State Bank of India, commented that the capacity of Indian banks to identify the price risk is not adequate and in many cases, absent.

As of now, commercial banks and housing finance companies have started issuing notices to defaulters under the Securitisation and Reconstruction of Financial Assets and the Enforcement of Securities Interest Act. According to the Act, borrowers do have a recourse. They can, within 60 days,ῠ appeal to the Debt Recovery Tribunals (DRTs). However, a borrower would have to shell out 50 per cent of the outstanding loan amount to be eligible to file an appeal.

Linen love
 

Cosy and pleasant, warm and luxurious, cool and cheerful, or calm and peaceful - themes for your bedroom are aplenty. But the first thing that will help you create a specific atmosphere in your bed linen. Bed linen primarily consists of blankets, bedspread, pillows and pillow covers. It’s the right mix of styles and layering of these items that can give you a bedroom of your liking. Bed linen today come in a mixture of styles from bohemian to contemporary, made from deluxe fabrics, rich textures and decorative trims combined with attention to the finest details.ῠ Fashion designer Wendell Rodricks recently designed a collection for Bombay Dyeing. Living up to his trademark use of the colour white, Wendell wielded his magic needle on bed linen. Talking about his collection, he says, “There are two lines - one in cotton with fine satin weave and the other in cotton silk. I have used rich white jacquards for a textured look. It’s a statement on its own.”

An all-white collection generally calls for high-maintenance. Will it work in a tropical country like India? “Treat these white linens like any other garment. Coloured bed-linen has become the order of the day. But when a five-star hotel can have all-white linen, why not a home!” observes Wendell, adding that one could go for winning combinations like white-and-gold or white with pearl finish.ῠ To which Deepi Singh of Muslin India, Delhi, says, “White bed linen is not tooῠ popular as the slightest of patch ruin’s the show. But materials like silk, Striata, organdies are easier to handle. Once a week wash is enough to maintain them.”

White is not only a summer cooler, but it has the secret to a cosy effect too. For winters, white bed linen can be warmed up with pale blues, earthy browns, dusty pinks and plenty of layering. It adds that extra glam along with subtleness to the d
cor. Nature’s influence in the bedroom is also strong. Choose leaf prints in olive-green, earthy-toned cushions and rustic furniture. Like Wendell’s range which incorporates a line of ferns in beautiful greens with white as the base.

While cotton is practically the most comfortable, romance spells luxury. For glamour in the bedroom, use bed linen in metallic colours such as copper and gold. Go for ostentatious velvet. Deepi says, “Velvet is extremely strong for bed linen. We have velvet upholstery, soft furnishings and drapes in vibrant colours in stripes and jacquard textures. Popular colours are chocolate with fuchsia, chocolate with lime green and with aqua.” If contemporary minimalism is your preference, here’s how to. You can start with a neutral base and introduce interest with accessories like a fine cashmere throw and a few textured cushions for warmth.

Alongside colours and fabrics, the draping style also calls for attention. “There are two styles - the single clean style where the bed cover sheet neatly covers the entire bed and the pillows. All households follow this style since exposing pillows is not appealing. The second style has the bed sheet folded just below the pillows. These are famous in hotels. If it’s your home, go for single clean style which gives a minimalist look,” suggests Deepi.ῠ Adding on maintenance tips for bed linen, she says, “Bed linen should be changed every week. All households must have at least two to three pairs of bed linen in prime colours like shades of brown, shade of white and pink and something in blue or pale yellow as these are basic wall colours.”

Can a tenant improve upon rented land?
 
By Madabhushi Sridhar

Ram took a house with open land on a lease for 10 years. He was in need of erecting a structure for his household activity. He asked the landlord if he could do so. The landlord refused. Ram’s question is, “Can I improve upon my leased property?”

An improvement is an addition or alteration to the leasedῠ property, other than a trade fixture that can be removed withoutῠ substantialῠ injury to the leased property. The landlord is under no obligation to make improvements or alterations in the absence of an agreement to do so.
In the absence of an agreement to the contrary, a tenant has no right to make material or permanent alterations to the leased premises. Such an alteration without the landlord’s consent constitutes waste. How-ever, when a tenant has been allowed to make improvements, they may beῠ removed at the termination of the lease, so long as the removal does not cause damage to the realty.
ῠ
Right to removal
The right of removal, however, must be exercised within a reasonable time, or the right will be forfeited. The reasonableness of the time a tenant takes to exercise the right of removal depends on the particular facts and circumstances of the case.ῠ

If improvements have been made without the landlord’s approval, there is no right of removal, nor may the landlord be required to pay for the improvement at the termination of the lease.ῠ
A fixture is something personal in nature, but so attached to realty as to become a permanent part of it. Determining whether an object has become a fixture becomes important when a lease is terminated and aῠ tenant seeks to remove property that he or she has erected or installed onῠ the leased premises. In the absence of an agreement to the contrary, a tenant has no right to remove improvements of a permanent character, such as fixtures.

The lease contract may govern installation and removal of fixtures. However, whether an object is a fixture depends on several factors, including (1) the manner in which the object is attached to the property; (2) whether the object has been specifically adapted for the purposes of the lease; and (3) whether the tenant intended that the object become a permanent part of the property. When a tenant installs fixtures under a contractual agreement with the landlord, the tenant’s intent to make the fixture become a permanent part of the property is determined from the provisions of the contract.ῠ

The term “fixture” must be distinguished from the term “trade fixture.” A trade fixture is an article annexed to the leasehold by the tenant to enable him or her to carry on the trade, profession, or business contemplated by the lease agreement or that the tenant is engaged in while occupying the premises, and that can be removed without causing material or permanent injury to the leasehold.

As a general rule, in the absence of a contract between the landlord and tenant to the contrary, a tenant may remove and take away trade fixtures at the end of the lease term. The tenant will be liable to the landlord only for physical injury to the freehold caused by the removal.

Compensation
Depending on the terms of contract, there have been occasions where the tenant was entitled to recover compensation from the owner of the land while handing over the premises after expiry of the lease period. For that the tenant would have to have raised the structure with the permission of the landlord. Or the improvement should have been necessary for the life of the structure and the landlord was given due notice of it. There is another side to the story as well. If the structure is destructive and harmful, the landlord would also be entitled to seek compensation from the tenant depending on various conditions.

The writer is a professor at NALSAR University of Law, Hyderabad

Why am I still facing so many financial problems?
 
By T.R. Bhandari

QI have rented out the north east portion of my house and retained the remaining part for my own use on the advice of our Vaastu pandit. Why am I still facing financial problems, domestic quarrels and the like, even after my house is perfect as per Vaastu rules? Please point out the Vaastu dosh of this house, so that I can rectify it to live happily.

K.L. Avasthi

It is only your thinking that this house is perfect as per Vaastu, because of your insufficient knowledge about the subject. You are living a problematic life instead of being happy, because the portion of the east eshan is given on rent. By leaving the kitchen in the east agney, the north east corner has cutoff a portion of the area under your own use. Given below is the Vaastu dosh in this house:

*ῠThe septic tank in the east agney of the open area also comes in the east eshan of the kitchen.
*ῠThe toilet in second part of the eastern direction comes in the north eshan of the kitchen.
*ῠThe staircase in the north vayavya of the house comes in the north direction of the drawing room as well as both the bedrooms.
*ῠThe south west portion of the master bedroom is getting lighter because of the toilet/bathroom constructed in the agney.
*ῠThe doors are fixed in the inauspicious places of the north vayavya and west neirut of the eshan and eastern room. The north vayavya of the toilet or bathroom in the second part of the east ofῠ the house, the west neirut of the drawing room and the east agney of the western room of the house.

The following changes are required in order to get rid of your problems effectively and immediately:
*ῠῠVacate the portion of the east eshan from the tenant and keep it for your personal use.
*ῠFill the septic tank in the east agney with mud and construct a new one in the north vayavya or west vayavya, by leaving a vayavya corner.
*ῠDemolish the toilet/bathroom in the second part of the eastern direction of the house and club this portion with the kitchen or eastern room, otherwise remove the toilet from this bathroom and utilise the space for bathing purposes only.
*ῠConstruct a new underground water tank in the north eshan in the open area of eshan by leaving a diagonal line.

After making the above changes you will get relief from your problems and your financial problems will also be over. Youῠῠῠcan live a happy and prosperous life in this house after the following things take place:

Demolishing the staircase in the north vayavya and constructing a new one in the west neirut, demolishing the toilet/bathroom in the agney and constructing a new one in the south west portion of the house by increasing the floor level of the master bedroom - otherwise increase the floor level of the master bedroom and shift the doors from inauspicious places to auspicious ones.

Send your queries toῠ vaastu@deccanmail.com

Am I liable to pay tax?
 
By S.C. Vasudeva

 

QI had entered into a written agreement to purchase a house for Rs. 50 lakh. I have now taken possession of the house. The sale deed is yet to be registered in my favour. I have rented the house. Am I liable to pay tax?

Nandeva, Bangalore

In case a person has purchased a property by satisfying the following conditions, then he is considered to be the deemed owner of such property: there is an agreement in writing between the buyer and the seller, the purchaser has paid the consideration, the purchaser has taken possession of the property. Since you satisfy the above conditions, you have become a deemed owner. You are therefore liable to pay tax on the rent received from letting out the property.

 
The author is a reputed Chartered Accountant.   Readers can send their queries to  vasu@scvasudeva.com

 
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