Showing posts with label emerging trend in real estate. Show all posts
Showing posts with label emerging trend in real estate. Show all posts

Everything about Benami Transactions in Real Estate

The Government of India (GoI) has tightened the belts to fight against the issue of Black Money. Several reforms have been introduced lately to nab those who have been channelizing their unaccounted resources through different means. One of the most vital reforms in this series is – The Benami Transactions (Prohibition) Amendment Bill, 2015. This bill is the amendment to the original Benami Transactions Law, 1988.


Any property transaction in which the property is registered in the name of one person & its consideration/payment is provided by another person. The ‘property’ can be any movable/immovable asset including even gold & financial securities.

The person in whose name the property is registered is termed as ‘Benamidar’. To add to it, a Benamidar may or may not be a real person. It may simply be a fictitious person or a real person unaware of the ownership of the property.  Have a look at the snapshot below for better understanding.

In such cases, directly or indirectly, the real beneficiary is the person making the payment.


GoI has been a bit generous in exempting few cases from the purview of Benami Transaction. These include cases where a property is held by:

  1. A person in the name of his/her immediate family including children & spouse. But the consideration should have been paid by know sources of income of family.
  2. A member of Hindu Undivided Family. Here also the source of income should be known.
  3. A person in the fiduciary capacity for a trust.


In the amended bill, a 3-tier structure of authorities has been established to take strict actions against Benami Transactions. These include:

  1. Initiating Officer: Initiates the notice against a person, he believes is a benamidar. He may hold the property for up to 90 days & collect all the related necessary documents/evidence from the benamidar & other sources.
  2. Adjudicating Authority: Based on the documents & evidences collected by the Initiating Officer, the Adjudicating Authority will pass an order whether to confiscate the property or release it.
  3. Appellate Tribunal: Any appeals against the orders of Adjudicating Authority can be made to the Appellate Tribunal. Any appeals against the Appellate Tribunal can be made to the High Court.


  1. Rigorous imprisonment from 1 year to 7 years
  2. Confiscation of the Benami Property
  3. Monitory fine up to 25% of Fair Market Value of the property


  • I believe that the introduction of Benami Transactions Amendment Law will have a strong effect on the GoI’s campaign against Black Money
  • But simultaneously, the real estate market will be impacted adversely & the market will be left with fewer buyers
  • There will be reduction in real estate frauds & the sector will become more organized
  • It will be beneficial for Loaning Agencies, as the available properties will be more authentic

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GST - Catalyst or Dampener for Real Estate?


GST is a ‘Single Indirect Tax’ on the supply of Goods & Services, right from Manufacturer to Consumer, which will encapsulate all the existing individual indirect taxes like VAT, Excise, Service Tax, etc. It is one of the most awaited tax reforms which recently got unanimous approval from both the Parliament Houses in this monsoon session. GST tries to simplify the complex tax structures & related issues by merging various taxes into one.


Currently, the taxes applicable to Residential Real Estate transactions are - Service Tax, VAT & Stamp Duty. After the implementation of GST, Service Tax & VAT will be replaced by Central GST & State GST, whereas the Stamp Duty will remain unchanged as it is out of the orbit of GST. This will ensure more transparency to Indian Real Estate Sector. Let’s see how!


GST will be applicable only on under-construction & rental properties, leaving aside the ready-to-move-in & other immovable properties. Major impact can be seen on construction costs & input credits. Impacts of GST on various transactions are listed below:

Transfer by way of sell of immovable property is outside the ambit of GST. Immovable property will include lands/plots. There is no impact on the same.
  • Under the current tax structure, Service Tax & VAT are levied on construction materials & works. Whereas under GST, only one tax will be levied. This will have direct impact on lowering the cost of construction.
  • Currently, input taxes are not creditable to the builders, developers & end users. Hence, this non-credit cost is the main reason behind the higher final prices of the properties.
  • Now under GST regime, there will be free flow of credits GST will strengthen the credit chain. Developers will get free input credits on GST paid by them, which in turn will lead to lower overall costs.

Residential Leasing/Renting is not covered under the Service Tax currently. It continues to be same under GST too. No impact.
  • Commercial Leasing/Renting is currently taxable under Service Tax at the rate of 15.00%. It continues to be covered under GST too.
  • GST will provide the commercial lessee/tenant negotiation power to negotiate on the lease/rents paid, as the builder will now enjoy input tax set off on the GST paid on the lease/rents.
  • However, the actual magnitude of effect will be known only after GST rates are decided finally.

“It will be important to see what the final rate of GST would be because if the rate is higher than the existing cumulative taxes, it will certainly be a dampener as it will increase the final cost for buying an under-construction flat and defeat the purpose of the bill,” said Neha Hiranandani, director, House of Hiranandani, a property developer based in Mumbai.
I totally agree with Ms. Neha & believe that the final tax rate of GST will stabilize the speculations of GST. However, with improved economic environment, I am hoping for positive response in realty sector. In any case, there will be a sturdy blow to this industry which is stagnant these days.

Author: Kopal Mittal

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Have you ever wondered what numerology is? I am sure you have!
Numerology is the mystical relationship between numbers and events; it is the study & interpretation of numbers.

These days Numerology is playing a vital role in Real Estate. Whenever a man plans to purchase his home or make any other investment, he makes all the possible efforts to make his home happy & investment fruitful.

While purchasing a property many factors are considered like neighborhood, budget, connectivity and other modern amenities. Now-a-days Numerology is also one of them!


House number is an important key if you talk about Numerology. People are always in search of an address having their lucky number. It is so because they put all their positive vibes, mental power and confidence in it, which leads to their psychological satisfaction.

But the question is - how to apply numerology in your house number?
To know your house number add all the numbers in your address until you arrive at single digit i.e. 1 to 9. For instance if your address is ‘68, Park Avenue’; then your house number will be 6 + 8 = 14 => 1 + 4 = “5”. Every number has its own pros and cons.


Different countries have their different perceptions of numbers. A number can be deemed as lucky in one country while the same number can be believed to bring bad luck in another country.

In China number ‘4’ is considered as unlucky because in Chinese language it sounds like death.

Generally, numbers ‘8’ & ‘13’ are deemed to bring bad luck. Many builders while construction skip floor number ‘13’. Thirteenth floor have rates lower as compared to others. Prices may vary about 10% to 15% as compared to others. Almost 85% of the buildings do not have floor number ‘13’. This superstition is not limited only to floor, but also to apartments, room numbers and in some cases street addresses too. But in Italy, number ‘13’ is held as lucky because it is associated with the “Great Goddess”, who is responsible for fertility and lunar cycles. It is believed that number ‘13’ brings prosperity and life.

Number ‘8’, on the other hand is believed to bring evil effects like poverty, accidents and deaths in non-Asian countries as it is believed to be associated with the Saturn. Number ‘8’ is shaped like infinity symbol showing - “What goes around comes around”. In contrast, in Asian countries number ‘8’ has a special significance as it sounds like ‘wealth’ or ‘fortune’. It is associated with good returns over the long term. Statistics show that in Asian countries about 20% of home listings ends with number ‘8’ while in non-Asian nations, this figure is limited to only 4%.

In India there is a saying that amount of transaction money should end in number ‘1’ & should not be an even number, as the extra penny is said to bring good luck. For instance, instead of Rs. 1,000.00, Indians prefer to receive Rs. 1001.00


Different numbers have different vibrations; some vibrations may suit you while others may not. At the end your address sets the tone of your residential space. Hence, while purchasing your house, it is wiser to make sure that your house number is compatible to you or not.

DISCLAIMER: The above facts & thoughts are author’s individual beliefs. This post doesn’t intend to influence any buying decision. It’s wise to take decision based on one’s individual cognizance.

Author: Kopal Mittal

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What kind of precautions you should take while staying in Rented Home?

Renting an apartment or a paying guest accommodation can be a pleasant as well as a bad experience depending on the type of the landlord you are bestowed with. Renting in itself is such a daunting and challenging task and when you have a troublesome landlord or property manager your life will surely become very problematic and stressful. But in case you want to make sure that you are stressful and desiring to lead a hassle free life you make undertake certain precautionary measures and steps.

Security & Safety Concerns

In respect to the point as a renter your security and safety concerns are highly important and must be given importance as well. You must make sure to live in close vicinity to other tenants or a place where there are shops, ATMs, hospitals, pharmacy, restaurants situated nearby. The safety of the locality must be evaluated and you should ensure to get protected from burglary and intrusion from unknown people and strangers before signing the lease and depositing the advance payment.

Cooperate with the Landlord

Renting an apartment or staying in a paying guest in Bangalore doesn’t only involve the relationship of paying the rent every month. You can become friendly with the landlord and even provide help or any kind of assistance whenever the situation arrives. This gives you an edge over other tenants and the landlord will also be polite and friendly with you in return. In terms of price hike or any other issues you can request him and put forward clauses that are convenient for you. Furthermore, you must avoid situations of arguments and try to cooperate with the landlord. This is beneficial for you as a tenant.

Know your Tenancy Rights

There is a tenancy agreement that is signed between you and the landlord and it provides with certain amount of rights for both of you. You need to know your rights well. For instance, as a renter you have the full right to stay in the rental house within the given lease period. Similarly the landlord has the right to ask for the monthly rental in the specific date mentioned. You must ensure to abide by the tenancy laws and regulations that have been set by the landlord and mentioned in the lease paper. 

Getting a Renter's Insurance

If you get a renter’s insurance, you have the option of protecting the value of your possessions in case they are destroyed or stolen. Your landlord might provide you with one but usually covers the building that you live in and not for your personal belongings. If you explore the market, you will come across so many insurance companies that will offer the policies particularly for the renter and covers all your property belongings at full replacement costs. In case of a liability lawsuit where you are held responsible for damaging other tenant’s property, the renter’s insurance can protect you as well. In the situations like theft, fire or any adverse weather conditions the renter’s insurance is a very good option to consider as you get the boost to recover from the losses and start all over again.

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How to Find the Right New York City Apartment To Rent?

Finding the right rental apartment, especially in a busy place like NYC, is not an easy task. Just collecting all the information you need to have is a huge burden. On top of that, dealing with rental brokers can make your apartment rental search a dreadful process. That’s why it makes sense to get help from experienced apartment rental professionals who can make your search easier, quicker, and less expensive?

Here’s how to search for New York City apartments.

Start your search with a licensed Apartment Information Vendor (AIV). You will set the budget and the neighbourhoods that you are interested in. Here’s why you want to start with a New York City based AIV.

·     An apartment rental service provides a large list of NYC apartments that lets you make a choice based on YOUR needs, convenience and budget.

·     If you are new to renting an apartment in NYC, look for a rental service that provides a comprehensive rental guide.

·   Apartment rental services believe you would prefer to save the hugely expensive broker’s fee. When you are introduced to a property by a broker, you are obligated to pay the broker's fee if you want to rent the apartment, which adds a large cost to you – from one month’s rent all the way up to just less than two months of rent (15% of the first year’s rent!). With the right apartment rental service, you will NEVER pay a broker’s fee.

A good rental service will help you stay organised during your search and be properly prepared for the application process. Timing and advanced preparation are the keys to a successful apartment search.

Choosing the Right Apartment Rental Service – What should you consider?

Apartment Information Vendors serve as marketplaces where renters can find the best no fee apartments in NYC with ease and convenience. Using a broker to help you in your search for a rental apartment means that you will, almost definitely, being paying a broker’s commission – or broker’s fee as most people call it.

So when you select a NYC Apartment Information Vendor to help you in your apartment search, look for these additional benefits:

Experienced Service: Does the AIV have the expertise and inventory to help you find an apartment within your budget and neighbourhood needs? Whether you are looking for a rent-stabilised studio or a two bedroom in a luxury apartment building, an apartment information vendor must provide you with a wide selection of apartments to look at.

Reputation: There's probably nothing that speaks louder for the reliability of a service provider than the reviews and testimonials from previous customers. Make sure you look for company testimonials and longevity. If a company has been around for a year or so, watch out. If the company’s roots go back 20 years, then you know they must be doing it right.

Live Customer Service: Getting into the New York City apartment of your choice can be a bit tricky at times. You want an experienced coach to help guide you on the ins and outs of getting a landlord’s approval. When the time comes, you want to be able to pick up the phone and speak with an expert. Make sure you work with a rental service that has a staff of apartment rental experts happy to help you.

Author Bio: The author of this article, Huge Grant is an experienced content writer who has been writing for a number of years on various topics related to the real estate industry. In this article, he focuses on the benefits of searching for a New York City apartment through a reputed apartment information vendor.

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Go Green & Buy Green to Save Some Green

Are you planning to buy a home? Why don’t you consider buying it green? Cost of a green home doesn’t differ hugely from that of a non-green home. But the energy-efficient features of a green home will start providing savings almost instantly. With the cost of electricity, water & gas fluctuating, finding out ways to safeguard our environment while saving money every month is undoubtedly a win-win situation. Even the top realtors recommend their clients to go green.

If you wish to go green, here are some tips for you:

1. Water Heating System – Water heater consumes more or less 20% of residential energy use in the United States. Conventional electric water heaters are simply guzzlers & most of them are outdated. A solar water heating system can be a great alternative to conventional heaters & radiators. By using solar water heating system, you can significantly save on energy bill & also ease environmental effect.

2. Solar Panels – These are the most powerful energy savers. They should be installed either on the ground or on the roof so that they can collect sunrays. DC electricity produced by solar panels passes through special type of converter that converts the electricity into usable voltage that can be used for running household appliances. The price of such panels has dropped recently. In spite of reduced rate most folks avoid them as they are difficult to install. But if you already have installed the panels in your home, then you can surely sop up the sun & save cash each month. Similarly, if you’re planning to buy a home & if your real estate agent informs you about a home that already have solar panels installed, you can surely go for it provided other criteria match your requirements.

3. Green (House) WindowsEven the windows of your home can let you save energy! Heat gets away through windows during winter & vice versa during summer. If the windows of your house are properly sealed with double or triple panes, you can efficiently regulate the temperature inside your home & that in turn reduces energy consumption.

4. Right Insulation – This is a very important aspect of going green. Properly insulated walls & roof can keep the heat inside during winter season & outside during summer season. Green insulation is usually made of recycled textile, wool or anti-allergen materials. So if you’ve not yet insulated your house properly, you must do it immediately.

Apart from the above mentioned ways, there are other items too that can also help you go green & save money. & those are:

- Timely upgrading heating system & air conditioning system can help a lot in energy savings. Old units of such appliances consume huge amounts of energy.

- Usually more amount of water is used in older toilets. So renovation of the older unit can let you save on water consumption.

- Old lead paint is not good for health; you must avoid using such paints in your home. Less volatile organic compounds or VOCs are environment friendly. You can use such paints to paint your home.

According to the real estate agents, buying a green home is undoubtedly a good investment both money-wise & healthy-wise.

Author Bio:

The author Alex Scott has been in real estate industry for more than 10 years, & worked with some renounced real estate agencies in USA.

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5 Tips to Market your Property through Real Estate Postcards

Marketing your Real Estate has always been a cumbersome job. Many often Realty Agents/individuals keep looking for ways & channels to aid their marketing strategy. Today we bring to you another means to market your property – Real Estate Postcards.

Real Estate Postcards have proved to be an effective marketing tool. The great feature of postcards is that they are distributed easily & do not cost a lot. Another benefit is that they give your future clients a visual to view & hold onto until they need your business & you also do not have to hire a marketing professional.

Postcard marketing does not take a long time to start generating leads for you. Make sure your marketing is effective; your postcard is direct & gives information that will capture the attention of the viewer. It will work immediately & create a steady flow of business over time. 

An example of Real Estate Postcard


How exactly can you create effective marketing through postcards?

Follow these 5 tips for the best outcome:

1. Analyse the Results - Measure & analyse the immediate results that you receive after your postcards are distributed & make sure to keep track of the business it generates over time. Make sure to put your email, phone number, website, etc. on the postcard so people can get a hold of you easily with their real estate needs or what they are interested in. Postcards are an easy way to open the doors of communication between you & future clients. 

Keep track of you appointments & note down where the source was generated from & what outcome it brought you. Measure the return of the investment & if it was able to provide you a positive lead.

2. Design the Postcards Creatively to Fetch Results - Add these five elements in your postcard to make it effective: 
  1. The picture of practitioner on both sides
  2. Pictures of Homes for Sale
  3. Beautiful logo & text with striking font, color, layout, & design
  4. A message specifically to target market
  5. Call to action

3. Follow Consistency in Branding & Frequency - An effective real estate postcard marketing demands the frequency between 9 & 12 postings annually for the highest value market & 4-12 postings annually for other markets. The idea is to make a name yourself. Meaning that when people think of real estate your name will come to mind in a positive way. 

4. Focus on High Value Markets – High-value markets get you the highest returns on your efforts & investment. So obviously you need to send your postcards for real estate to groups that will be potential leads, & that will generate leads.
           High-value markets:

  • Your area of influence which includes clients in the past
  • Your work & resident neighbourhood
  • Other markets that you are recognized by face or name

5. Do not forget the WIIFT rule – Make sure you always consider the mind-set of your audience before you put your foot forward for real estate postcards marketing campaign. Your primary objective should be to answer “What’s in it for them (WIIFT)”? What is going in their minds? Are they eager to know what the scenario of current real estate market is? Do they trust that you can serve their needs in the best way?

Closing Remarks

Initially, Real Estate pros did not believe that they could really do well in creating an effective message in their real estate postcards; however the messages can turn out to be real effective if these simple yet wonderful tips are followed.

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International Residential Real Estate Trends

Many shifts in the Real Estate Market have been observed over the last few years. Inventory has gradually been coming back, and according to the Urban Land Institute, this should be the last year that low inventory aids property prices. There has been a migration back to the urban areas, or suburban developments focused around more urban-minded projects. And there has been a swing from a buyer’s market to a seller’s market, as sellers know they can leverage buyers hungry to buy before interest rates and home prices go even higher.

Each of these has had a substantial impact on the market, but one of the more interesting trends I’ve observed is with regard to the international buyers; according to Cory Older, Director of a leading property analysis company, one in every fourteen homes sold in the US is purchased by a foreign buyer. While there has always been an international market here in the States, that market has been growing exponentially in the past few years. For the period of April 2013 through March 2014, international sales were estimated at $92.2 billion, an increase from the previous period’s level of $68.2 billion. Although still considered a niche market, it’s a sizeable one. 20% of realtors report the amount of foreign buyers increasing over the last five years; however, only 28% of realtors reported having international clients, and only 4% reported having 11 or more.
Canada, China, Mexico, India, and the U.K. accounted for approximately 54% of all reported international transactions, and while buyers and recent immigrants purchased throughout the country, Florida, California, Arizona, and Texas accounted for 55% of the total reported purchases. Many factors have led to the increase in international home purchases and real estate investments – affordable home prices, favourable exchange rates, and growing affluence abroad.

Through the first quarter of this year, almost 60% of reported international transactions were all cash, compared to only one-third of domestic purchases. This in part speaks to the affluence of the international buyer, but could also be due to the lack of a U.S. based credit history and difficulties in mortgage documentation and financial profile requirements. Roughly 65% of these acquisitions are single-family homes, and 42% of all purchases are used as a primary residence.

It’s undeniable that foreign buyers are becoming an increasingly important group in real estate markets globally. While there are always exceptions, most fall into two categories of buyers with different motivations for buying overseas properties: buyers from emerging markets who are generally wealthier and often purchase for real asset capital appreciation value, and developed market buyers who might be interested in a lower median price and are often more focused on investment yield.

International buyer’s habits are often quite different than domestic purchasers. According to Nicole Morris, a Palm Beach real estate agent whose primary focus is on international buyers, “Foreign buyers don’t necessarily look for the best residential real estate deal first. They look for the best location. After they’ve found the best location, then they want the best deal. And they usually aren’t in a hurry. Honestly, American culture wants everything to move so fast. This scares international buyers and sellers who don’t want to be pushed or pressured. They want to feel comfortable with the process.”

Realtors who are focused on increasing their production would be well served to develop a plan to cater to this growing segment in the market. Understanding the buyers, their unique needs, and the purpose of their purchase could expand an agent’s pool of prospects, and in turn, grow their business.
Jonathan Ensey is a Senior Partner at GoThink!, a retail marketing and business consulting company, and the Managing Director of eSpend.

Rental Management Service – A Convenient & Hassle-free Service!

Do you have a house or an apartment or any other property that you have rented to someone? Do you face tough times managing tenants, collecting rents & maintaining those properties? Do you want to get rid of the tension of your property located in a different city? If your answer is yes then the following post might help you out in a big way. Check it out:

Issues associated with renting a property

While we do advocate renting a property, we do not deny the stressful issues that come along with it. Your tenants are most likely to give you following tensions:
  • Irregular or non-payments of rent
  • Untimely vacating the property
  • Unexplained excessive maintenance costs
  • Damaging the property
  • Sometimes not vacating the property
  • Non-payments of public bills

Other than these, other issues may include – finding a new tenant, conducting legal formalities before handover, settlement of dues & several others.

I know after reading all the above problems some of you may have started doubting the institution of renting & it’s very obvious too! So what to do? Relax mate; you don’t have to do anything. Everything will be done by the guys running Rental Management Services.

Rental Management Services

These are new emerging services which take care of all your rental problems. You just have to register with them & pay them a commission from the monthly rent that you receive. These guys will:

  • Collect timely rents for you
  • Find you genuine tenants
  • Maintain your property
  • Complete all the paper works
  • If you desire, sell your property
  • Renew agreements & rental deeds

When we first came across these agencies, we were skeptical about their functioning. But after seeing them work in Hyderabad, we were mesmerized. These guys will definitely take all your tensions & stresses over their mind at just a small cost.

Is it worth paying them?

Just one word – TOTALLY!
You can totally trust them & enjoy your sleep back at home.

Disclaimer: The above post is just a piece of information & is not intended to advertise any agency. Although we trust their functioning, we do not take any responsibility for any of such agencies.

------ Thanks for reading RealT Horizon J ------

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