Real Estate market in India has seen many ups & downs. Even though it was considered as the hottest option for investors.
And today we are going to discuss about the two residential real estate destinations in South Chennai that has seen historical rose in price. According to the report by Knight Frank these 2 areas are listed in the top 13 residential destination in the country, from an investment point of view.
Before get into detail lest see the list of top 13 real estate destinations in the country and which cities they are into.
Mumbai - Ulwe, Wadala & Chembur
Delhi NCR - Noida Extension & Dwarka Expressway
Chennai - Medavakkam & Pallikaranai
Pune - Hinjewadi, Tathawade, Ravet & Wakad
Bangalore - Hebbal & KR Puram
I am speaking about Medavakkam and Pallikaranai, the two hot residential destinations that has seen historical changes in price. Due to which they both holds 6th & 11th position of largest real estate destinations for residential real estate investments in India.
What makes them so special.
One of the reason for the price increase is due to the larger availability and increase in number of IT/ITES companies in nearby areas like OMR and GST. So the people
in this area is well connected to the employment hubs of the city.
As per the report the prices in pallikarani are expected to increase by 93% over the period of 2012 to 2017.
Medavakkam which is in close proximity to areas like Chennai Airport, Sholinganallur, velachery and Tambaram makes them so special. The significant areas like Chrompet,
Pallavaram and St. Thomas Mount can be easily accessible from Medavakkam. And as per the report the property prices are expected to increase 103% over the period of 2012 to 2017.
And finally if you are a real estate investor in Chennai then Pallikaranai and Medavakkam will be an aspiring choice.
The much anticipated real estate regulation bill is proposed to be tabled in the winter session of the parliament for approval. Before that, it has been sent to law ministry for vetting and then to the cabinet for the final nod before sending it to the parliament to become a law.
This bill has come as a welcome relief for the buyer but the real estate industry is in doldrums. The real estate industry is all furious as this bill imposes harsh punishment for any irregularities.
The bill proposes to set up regulatory machinery named Real Estate Regulatory Authority for implementation of the provisions of the bill. The main objective of the bill is to create transparency and accountability in the real estate sector which has been lacking for such a long time.
Main provision asks the builder to register all the projects with the prescribed authority. If not, then it is going to attract penalty and imprisonment up to three years.
Another provision that makes things hard for the real estate sector is that they have to commit time frame for the completion of the project. Further they have to deposit 70% of the money taken from the buyer in a separate account and it has to be used only for that purpose.
Sellers cannot advertise or start booking of the flats without registering with the nodal agency. The developer has to share all the details like land status, approval, contract structure before the nodal agency.
These provisions are really tightening the screws on the developers and are going to provide some relief to the customers.
The issue of the unorganized agency services has also been addressed. Now all the property brokers have to obtain license to do business. The main aim of this clause is to eliminate malpractice and cheating which is carried on regular basis.
The bill has been modified 8-9 times and is doing rounds for 3 years now. It has seen about 3000 comments from developers and buyer before it was given final shape.
Never thought of a house as an investment; then it is a good time to know about its pros and cons so that one can choose the path one feels comfortable.
When one buys a house with a sole aim of reselling them within a year; it is a good option. Let us go into the details. Buying a house when the projects starts and selling it, when it is completed will fetch good returns. But these are point to be considered,
If one funds the buying with his savings, then it is an attractive investment. But, when going for a loan, one has to pay the interest, not the EMI until you sell the house. This is a burden one has consider and there is no tax exemption.
Then there is the issue of capital gain tax which creeps in when one sells his house within the period of 3 years There is no possibility of tax saving in capital gains ,when one sells the house during this period.
There is another option. One can go for an outright purchase of a finished property. Paying the EMI and getting the rentals from the property and availing the tax deductions under 80C for the loan sounds good. One can enjoy the benefits of rent for 3 years, then sell the property. But there is a catch, rentals from the property is taxable.
All these scenarios have to be considered before taking a decision.
Today, man has the technology to convert dust into a product. One example is the fly ash bricks.
Fly ash is a waste product generated from the combustion of coal. This acts as a raw material for fly ash bricks which is used in construction industries. In the real estate sectors where the cost of construction is ever rising and buyers feel the heat; fly ash brick acts as an alternative solutions for clay bricks which are in heavy demand.
The best part is that they have so much to offer compared to clay bricks. They are needed, less in number than clay brick for construction.
Some of the good properties are
They absorb less water than clay brick. It reduces dampness in wall.
They absorb less mortar and plastering is not needed.
Fly ash brick is fire and vermin resistance and their thermal property is favourable.
They are durable, strong with neat edges which reduce wastage.
Many real estate companies have started using fly ash bricks as a substitute and it is a welcome sign. Tiles can also be made using it. It comes in various forms and sizes. It is used in pathways and courtyards.
For those who are planning to build individual houses, fly ash brick can significantly reduce the total cost of constructions and save a good amount of money. The clay brick are taken from the top soil which affect the fertility whereas fly ash brick does not require clay. They are made by mixing fly ash, stone grit, cement, crushed sand.