Home Loans in Covid Times

Tough times need innovative ideas along with informed and well thought of decisions. The Pandemic apart from causing massive loss of lives has also put many households in financially difficult state- unsustainable for some. Indian job loss figure is close to 13-14 crore. For those who have lost their jobs or earnings, it is important to take stock and realign their strategy.

It is normally advisable to take a Home loan for buying properties for various reasons. As a resultant, most buyers use this option as can be seen from the data; about Rs 13 lakh crore of housing loans was outstanding as on January 31, 2020. Of this, majority are salaried people. Sadly, many have lost their jobs since the scourge of Covid commenced. Its extremely important to save one’s Life and Livelihood -Jaan & Jahan. So, what are the Options? In such trying times, it is not the best option to liquidate the loaned properties, as it would generally result in 10-12% loss on your investments. Hence, this should be the last option. So what are the other options available?

• If it is somehow possible to keep paying the EMI by enforcing cuts in other expenses, it is the best way out.
• It is a normal guideline in Job as also Business, that one should have a year worth of reasonably liquid asset for unforeseen circumstances, ie Emergency Fund. However, it is not possible for some. Hence, the first step should be to go in for Home Loan EMI moratorium.
• In most cases when one leaves a Job is issued a Pink Slip, a Severance amount is paid, which must be used to reduce the EMI burden by reducing the loan, or use it for the EMIs once moratorium is over and your situation improves and stabilizes.
• Most of us have some type of savings- Debt Funds, RD, FD, ETF Gold, PPF, EPF, Equity etc. Except for equity – which would have been drubbed down due to the Pandemic; all other asset should be utilised. This is a “Rainy Day”, and these savings are meant for such times. There has been a notification wrt permission to do 75% withdrawal from EPFO.One can also consider selling some asstes like car etc, which could be spared. Its a No Brainer to say that the interest you get on FD, RD etc, are mostly lesser than the Interest on EMIs.
• For equity investors, and investors in Insurance, one can borrow against one’s shares / Insurance.
• Friends and family are tested during bad times. Try it out. It doesn’t need your financial scrutiny and mostly are interest free. Even if you don’t get help, at least you will get to know them.
• Many of us have family Gold. With the bullion trading at all times high, this can be utilized for both ie selling / loan against security.

Like all Good times move on, so do bad times. It is extremely important to maintain one’s sanity and take decisions as suitable for you. For a particular individual, there may be some other ways also, so try and analyse your fund state and take a decision you feel is good for you.

www.colonelz.com

BAR for Pubs / Hotels- Tipsy Times

Wish you were Beer. Bars are the ultimate evening destination. Ambience of the Bar is a “Make or Break” for success of a Bar. Want it Vibrant, Smoggy, Drooling, Spanky or what? As with most commercial space, some of the 7 Ps of Marketing matter here too. Depending on the Place, ie, whether it is a High end Hotel or a Country side Bar, it needs to be designed. For that clientele, it should exude luxury, style, and comfort and be inviting, spacious, and serviceable, with desired seating space etc.

• Plan a concept and develop the design on it. Key areas for planing are:

• Broad Design and Spacing.
• Bar Counter Design.
• Dance floor design.
• Main entrance.
• Wall design.
• Ceiling Design.
• Flooring Pattern.
• Furniture styling.
• Different seating formats.
• Private party area.

• Planning the components required and the cost of designing the bar would cut down on any unnecessary wastage. Have a theme in mind and decide how much one is willing to spend to achieve the layout.
• Measurements of a bar are crucial to functionality.
• If bartenders don’t have enough space, this would restrict their movements and decrease efficiency.
• At least 3 feet between liquor shelves and the bar top.
• Utilize the space to its maximum potential.
• Every detail should come up with the best design best suited.
• Come up with unusual theme for bar that can help one stand out amongst the competition.
• Place the liquor in front as drinks are the showstopper.
• Displaying the liquor bottle is a good way of ramping up the interiors.
• Innovation is the key to success for a bar.
• Separate billing point would ensure quicker billing and the guests wouldn’t have to wait to clear the bills.
• Every bartender should have his or her serving station including an ice bin, soda gun, juice containers, speed rail, back-bar, and condiment tray.

• Choosing the Right Equipment: Another major step of building the space is to get the equipment to be used at the bar. Having the right equipment makes the place look tied together.
• Bars should have refrigerators.
• Coolers, wine racks, ice beans, should also be added.
• Flooring at the bar area should not be slippery.
• Rubber mat flooring for the safety of the staff/bartender.
• Invest in chairs and tables in complementing the interiors of the bar.
• Investing in used equipment is also a good option initially as this would help save some money.

• Choosing the Bar Top Wisely: A creative bar top can be beautiful and pulls more attention towards the bar. It is a centrepiece that makes the bar unique but, it is essential to select the right material for the bar top to avoid any disasters.
• Stones and marbles look attractive but, are magnets for disaster because they have no flexibility or grip.
• Go for traditional wood bar tops.
• Choose from Oaks, Maples, Mahogany’s, or Ashes as they have a firm grip and are very sturdy.
• Wrong choice in materials will result in broken glasses.
• Round edges should be prevented as it can allow the glasses to slide off onto the floor.
• Copper and brass are also beautiful but require costly routine maintenance.
• Learn about the maintenance of the material tips before purchasing.

• Lighting to set the mood right: The bar area should have adequate lighting for customers to read the menu but, it should not be very bright.
• The bar area shouldn’t be very dark.
• Opt for dim ambient lighting to set the mood.
• Subtle light is the key to setting the mood right.
• Recessed lighting or tracking lighting can be used which have a switch to help adjust the intensity of the lights.
• Commercial kind of lights can be used over the bar counter as they illuminate the surface of the bar.
• Can also opt for complimentary lighting.
• Light up the liquor rack and the area around it.
• Add lamps to highlight particular areas.
• In high ceiling bars, hang pendant lighting or chandeliers to bring the light source closer to the client.

• Consider fixture details: It is important to differentiate the bar with specially design elements but don’t overwhelm every wall with decoration.
• Choose a few stand-out pieces that reflect the theme.
• Rely on small details to carry the rest of the design.
• Focal point might be unique back lighting, a green wall, a water wall, fish tanks, funky seats or impressive table dividers.
• Use lighting to set the tone.

If you are also planning to revamp your Bar, do let us know, we will give you an experience unparalleled. Lets do it together.

www.colonelz.com

Flooring Options- Find What Suits You Part II

We discussed and analysed the most common / popular flooring options in Part I. It may not be necessary that the decision of the majority is the right one. So why not explore other options and see what suits our needs better.  Most of these are neither run of the mill option, nor advised as a general option for all purposes. These are better used at specific place and space.

• Vinyl Flooring. Vinyl floors are a popular option among homeowners, particularly in kitchen and bathroom applications. A synthetic cousin of linoleum, vinyl flooring is water-and stain-resistant, versatile, and provides good durability for the cost. These are 100% Moisture Resistant, have long life as they have a wear layer. However, they are difficult to remove if glued down, can get punctured if any sharp object is rubbed and can get dents by heavy objects. Environmentally not recommended as they are not biodegradable.

• Carpet flooring. Carpet Flooring uses soft floor covering made of fibre either bounded or stapled. Generally has a beautiful upper layer attached to a harder, stronger backing. Apart from reducing the sound of boots, they are a good insulator, which save energy specially in cold climates. It also gives a psychological warm feeling.  They are comfortable to walk on being soft and easier on the feet. One can even lie down on these if in the bedroom or living.

• Glass flooring. Glass floorsare used only at specific spaces and could be Transparent or Translucent, depending on the usage. Mostly, these are transparent glass when the need is to view something from above or below the floor. The translucent types are used when there is no such need. In both the cases, toughened glass is used to prevent breakage and long life. Glass floors make the space optically more spacious. The high quality ones have good shelf life and are reliable. It can be well mixed with aesthetic lighting for great effects. They are costly in terms of manufacture, as also installation. They are often slippery and prone to accidents. Most are not scratch resistant and lose their shine over a period of time.

• Brick flooring. One of the original flooring option, this still finds place with Quality Designers, in lieu of natural stone. Mainly made of clay, these come in various shapes and sizes. These come cheap and are durable and easy to clean. They are environment friendly, having insulating properties and are skid resistant. As they are baked in fire, the surface is hard and often rough, catches stains of paint, oil etc. Inter brick space needs good sealing to prevent mites etc making the space their home.

• Cement flooring. These are basically cement based, and could be of various types, like Interior Stained Concrete, Metallic Epoxy, Overlays, Garage Floors, Quartz Flooring, Epoxy Chip Flooring and Standard Epoxy.It is a common type of flooring used in all types of spaces, as its non-absorbent nature is very useful for water stores, durability, smooth and decent looks. It has good wearing properties, are easy on maintenance and economical.

• Terrazzo flooring. These are composite material, poured in place or precast, which is used for floor and wall treatments. They consist of chips of marble, quartz, granite, glass, or other suitable material, poured with a cement type binder (for chemical binding), polymeric (for physical binding), or a combination of both. They are very durable, with endless design options. Are environment friendly and can be used for internal / external spaces and are recommended for spaces where one prefers cold floor .

There are still more options, about which your designer may be able to guide you. We endeavored to cover the relevant and reasonable amount of information so that we are able to take Informed Decision while deciding on the the Floor which will Floor you for times to come.

www.colonelz.com

Floors to Floor You – What Suits You

Making or renovating a house or a commercial space is a long drawn process, involving somewhat infinitude decisions. One of the multitudes of questions that perplex most to be homeowners / commercial space buyers, happens to be about the kind of flooring they need to settle for. The market is flooded with an overwhelming variety of options, which makes it even more difficult to choose the right flooring option for your space. In this Part, we shall be discussing the four most sought after flooring materials and their pros and cons so you can take a well-informed decision.

• Tiles. Tiles are usually made with a mixture of clay, which is shaped, cured in a scorching kiln, and finally glazed to impart shine and a protective layer. They are usually of two common types, namely, ceramic and porcelain. Porcelain happens to be the more durable one as it is made out of more refined clay and baked at a higher temperature. But, ceramic, on the other hand, is more budget-friendly and lighter in weight, making it suitable option for walls. Which one suits you more? Lets deal with it.

Points to ponder:

• As one would have experienced in day to day life, maintenance is effortless when it comes to tiles, and there is no fear of staining the floor, all because of the liquid glass glaze on the tiles. All one needs is a damp mop to clean up any accidental spills or the regular mess.
• They can withstand harsh weather conditions and fluctuations. Mostly they don’t lose color easily.
• They are available in a wide range of colors, textures, designs, styles, and sizes.
• They are one of the most affordable option in this list.
• Owing to their supreme hardness, tiles can turn out to be quite brittle and develop cracks if a very heavy object is dropped on it from a height.

• Marble. Marble is a natural metamorphic rock formed naturally by subjecting limestone to immense heat and pressure of the earth. The natural beauty is now used extensively in the construction business for flooring.

An analysis:

• Marble instantly imparts a sense of opulence and elegant style when used for flooring.
• It can be polished to achieve an unrivalled gleam and sheen on the natural stone, which can light up the entire space. Moreover, whenever one feels the beauty of their flooring has dampened over time, they can revive its former beauty with rubbing and
• They are very good conductors of heat and are conducive to the installation of the heating system underneath them in chilly climates.
• They are very environment-friendly.
• Good quality marble is costly.
• They are fragile and may develop cracks over a period of usage & dark lines could be seen in the crevices.
• Marble is porous in nature, thus, making it susceptible to stains.

• Hardwood. Hardwood flooring gives a very cosy yet modern vibe to the home and is appreciated for its beauty all over the world.

Why & why not:

• They are highly durable and can last beautifully over decades, with proper maintenance.
• Abundant variety of natural textures and colorsare available to fit your preference. They can even be stained to achieve a different hue in the future.
• They can be refurbished and polished easily to pretty them up after continuous use.
• Wood is biodegradable.
• They do not go well with moisture and in the areas with high humidity.
• They are the most expensive option on this list.
• They need some Tender Loving Care regularly, ie, high on

The climatic and weather conditions, are instrumental in deciding our flooring options to a great deal. In Scandinavian or Siberian region any floor which gives a psychological warm feeling may be more suitable; wooden / carpet flooring could be a preferred option. In Sub Saharan deserts or Middle East, marble  or stone may be preferred. There are many other options, which your designer may guide you to use.  We shall be covering other options in Part II.

• Vinyl Flooring. Vinyl floors are a popular option among homeowners, particularly in kitchen and bathroom applications. A synthetic cousin of linoleum, vinyl flooring is water-and stain-resistant, versatile, and provides good durability for the cost. These are 100% Moisture Resistant, have long life as has a wear layer. However, they are difficult to remove if glued down, can get punctured if any sharp object is rubbed and can get dents by heavy objects. Environmentally not recommended as they are not biodegradable.

• Carpet flooring. Carpet Flooring uses soft floor covering made of fibre either bounded or stapled. Generally has a beautiful upper layer attached to a harder, stronger backing. Apart from reducing the sound of boots, they are a good insulator, which save energy specially in cold climates. It also gives a psychological warm feeling.  They are comfortable to walk on being soft and easier on the feet. One can even lie down on these if in the bedroom or living.

• Glass flooring. Glass floorsare used only at specific spaces and could be Transparent or Translucent, depending on the usage. Mostly, these are transparent glass when the need is o view something from above or below the floor. The translucent types are used when there is no such need. In both the cases, toughened glass is used to prevent breakage and long life. Glass floors make the space room optically more spacious. The high quality ones have good shelf life and are reliable. It can be well mixed with aesthetic lighting for great effects.  They are costly in terms of manufacture, as also installation. They are often slippery and prone to accidents. Most are not scratch resistant and lose their shine over a period of time.

• Brick flooring. One of the original flooring option, this still finds place with quality Designers, in lieu of natural stone. Mainly made of clay, these come in various shapes and sizes. These come cheap and are durable and easy to clean, environment friendly, having insulating properties and skid resistant. As they are baked in fire, the surface is hard and often rough, catches stains of paint, oil etc.  Inter brick space needs good sealing to prevent mites etc making the space their home.

• Cement flooring. These are basically cement based, and could be of various types, like Interior Stained Concrete, Metallic Epoxy, Overlays, Garage Floors, Quartz Flooring, Epoxy Chip Flooring and Standard Epoxy.It is a very common type of flooring used in all types of spaces, as its non-absorbent nature is very useful for water stores, durability, smooth and decent looks, good wearing properties, easy maintenance and is economical

• Terrazzo flooring. These are composite material, poured in place or precast, which is used for floor and wall treatments. They consist of chips of marble, quartz, granite, glass, or other suitable material, poured with a cement type binder (for chemical binding), polymeric (for physical binding), or a combination of both. They are very durable with endless design options, Environment friendly. Can be used for internal / external spaces and recommended where one prefers cold floor .

There are other not that popular options too, which your designer my guide you to use. So, if you were wondering which is better tiles or marble flooring or wooden for your residential building services, then make a decision based on these factors above and your daily lifestyle.

www.colonelz.com

Flooring Options- Find What Suits You

Making or renovating a house or a commercial space is a long drawn process, involving somewhat infinitude decisions. One of the multitudes of questions that perplex most to be homeowners / commercial space buyers, happens to be about the kind of flooring they need to settle for. The market is flooded with an overwhelming variety of options, which makes it even more difficult to choose the right flooring option for your space. So, here is a breakdown of the popular options, with details of four most sought after flooring materials and their pros and cons so you can take a well-informed decision.

• Tiles. Tiles are usually made with a mixture of clay, which is shaped, cured in a scorching kiln, and finally glazed to impart shine and a protective layer. They are usually of two common types, namely, ceramic and porcelain. Porcelain happens to be the more durable one as it is made out of more refined clay and baked at a higher temperature. But, ceramic, on the other hand, is more budget-friendly and lighter in weight, making it suitable option for walls. Which one suits you more? Lets deal with it.

Points to ponder:

• As one would have experienced in day to day life, maintenance is effortless when it comes to tiles, and there is no fear of staining the floor, all because of the liquid glass glaze on the tiles. All one needs is a damp mop to clean up any accidental spills or the regular mess.
• They can withstand harsh weather conditions and fluctuations. Mostly they don’t lose color easily.
• They are available in a wide range of colors, textures, designs, styles, and sizes.
• They are one of the most affordable option in this list.
• Owing to their supreme hardness, tiles can turn out to be quite brittle and develop cracks if a very heavy object is dropped on it from a height.

• Marble. Marble is a natural metamorphic rock formed naturally by subjecting limestone to immense heat and pressure of the earth. The natural beauty is now used extensively in the construction business for flooring.

An analysis:

• Marble instantly imparts a sense of opulence and elegant style when used for flooring.
• It can be polished to achieve an unrivalled gleam and sheen on the natural stone, which can light up the entire space. Moreover, whenever one feels the beauty of their flooring has dampened over time, they can revive its former beauty with rubbing and
• They are very good conductors of heat and are conducive to the installation of the heating system underneath them in chilly climates.
• They are very environment-friendly.
• Good quality marble is costly.
• They are fragile and may develop cracks over a period of usage & dark lines could be seen in the crevices.
• Marble is porous in nature, thus, making it susceptible to stains.

• Hardwood. Hardwood flooring gives a very cosy yet modern vibe to the home and is appreciated for its beauty all over the world.

Why & why not:

• They are highly durable and can last beautifully over decades, with proper maintenance.
• Abundant variety of natural textures and colorsare available to fit your preference. They can even be stained to achieve a different hue in the future.
• They can be refurbished and polished easily to pretty them up after continuous use.
• Wood is biodegradable.
• They do not go well with moisture and in the areas with high humidity.
• They are the most expensive option on this list.
• They need some Tender Loving Care regularly, ie, high on
• Synthetic Wooden flooring. Also called Laminate flooring this is a multi-layer synthetic flooring product fused together with a lamination process. Laminate flooring simulates wood, or at times stone, with a photographic applique layer under a clear protective layer.
• Should you?
• They are cheaper than Hard wood and marble; generally in the range of Rs. 150 to 250.
• They need care and are susceptible to getting spoilt by stagnant water. Some of the other negatives are, Fading, Scratches & dents, May have thin veneer, Off-gassing, Not moisture-proof & High-maintenance.
• Being laminated, are comparatively delicate and not suitable for rough use as also, high footfalls.

• Vinyl Flooring. Vinyl floors are a popular option among homeowners, particularly in kitchen and bathroom applications. A synthetic cousin of linoleum, vinyl flooring is water-and stain-resistant, versatile, and provides good durability for the cost. These are 100% Moisture Resistant, have long life as has a wear layer. However, they are difficult to remove if glued down, can get punctured if any sharp object is rubbed and can get dents by heavy objects. Environmentally not recommended as they are not biodegradable.

• Carpet flooring. Carpet Flooring uses soft floor covering made of fibre either bounded or stapled. Generally has a beautiful upper layer attached to a harder, stronger backing. Apart from reducing the sound of boots, they are a good insulator, which save energy specially in cold climates. It also gives a psychological warm feeling.  They are comfortable to walk on being soft and easier on the feet. One can even lie down on these if in the bedroom or living.

• Glass flooring. Glass floorsare used only at specific spaces and could be Transparent or Translucent, depending on the usage. Mostly, these are transparent glass when the need is o view something from above or below the floor. The translucent types are used when there is no such need. In both the cases, toughened glass is used to prevent breakage and long life. Glass floors make the space room optically more spacious. The high quality ones have good shelf life and are reliable. It can be well mixed with aesthetic lighting for great effects.  They are costly in terms of manufacture, as also installation. They are often slippery and prone to accidents. Most are not scratch resistant and lose their shine over a period of time.

• Brick flooring. One of the original flooring option, this still finds place with quality Designers, in lieu of natural stone. Mainly made of clay, these come in various shapes and sizes. These come cheap and are durable and easy to clean, environment friendly, having insulating properties and skid resistant. As they are baked in fire, the surface is hard and often rough, catches stains of paint, oil etc.  Inter brick space needs good sealing to prevent mites etc making the space their home.

• Cement flooring. These are basically cement based, and could be of various types, like Interior Stained Concrete, Metallic Epoxy, Overlays, Garage Floors, Quartz Flooring, Epoxy Chip Flooring and Standard Epoxy.It is a very common type of flooring used in all types of spaces, as its non-absorbent nature is very useful for water stores, durability, smooth and decent looks, good wearing properties, easy maintenance and is economical

• Terrazzo flooring. These are composite material, poured in place or precast, which is used for floor and wall treatments. They consist of chips of marble, quartz, granite, glass, or other suitable material, poured with a cement type binder (for chemical binding), polymeric (for physical binding), or a combination of both. They are very durable with endless design options, Environment friendly. Can be used for internal / external spaces and recommended where one prefers cold floor .

There are other not that popular options too, which your designer my guide you to use. So, if you were wondering which is better tiles or marble flooring or wooden for your residential building services, then make a decision based on these factors above and your daily lifestyle.

www.colonelz.com

Interiors for Bedroom

In the good old days, one did not have the luxuries available due to modernisation, ie, automation and availability of numerous devices to make our lives more comfortable and enjoyable, specially after a day’s hard work. It was so easy to decide the plan for your interiors for bedroom. With the availability of mind boggling options, many at exorbitant costs, it makes wise sense to take the help of specialists to design your bedroom, ensuring every penny is well utilised. Planning to do it all on your own reminds me of the old adage -’Penny wise pound foolish’.

Let us consider what all ingredients are there in a bedroom of today, which are required to be planned for. The first and foremost is the Bed & the side table, their size, location & what fits to the size of the bedroom. Thereafter come numerous items listed one by one.

Bedside lights, Electrical & power points, for routine and heavy appliances; No and amount of lights, Cove lights, Night lights, their luminosity, location and more.

All lights and electrical equipment today can be automated. Does it suit you- the idea & the cost?

How to handle the curtain rods, ie with false ceiling, or rods, type of drapes suitable for you, blinds, sheers etc.

Handling of walls by texture paint, wall moulding, panelling, wall papers etc.

Furniture like chaise, lounge chair with foot stool etc.

TV Unit, whether wall mount, free standing like a console table or a mix or something with a storage.

AC & Room heater location, their power supply arrangements; what if for some reason water drips from the AC- how to handle it?

Do you want a Nook with a mini bar or a coffee maker? Space for your laptop/ Ipad and associated seating?

Handling the Windows, doors & head side of the bed.

Wardrobe- gents & ladies as also overhead storage, shoe storage etc

Painting / decoratives /furnishings.

As is evident from the above, if not Herculean, it surely is a Good designer’s task to handle all aspects and reach at an optimal solution;- economically, aesthetically, functionally & in terms of maintenance. Some consider Designing cost as a drain. However, you actually save on costs by using the services of a Good Interior Designer in interiors for bedroom. As experts, apart from ensuring a beautiful end state of the space, Designers economically optimise the material usage and guide you, along with suitable advise on reducing costs. So, if you want to get best value for money and a dream space, go ahead and get your bedroom designed to your taste & as per your cost.

My Dream Drawing Room

Drawing room are generally the Show window of a house.  We want it to be aesthetically designed, while giving a comfortable homely feel. A Drawing room needs numerous aspects to be cohesively considered and located in the right place and size so as to give it an elegant look. There are numerous elements which need to be cohesively aestheticised to bring out your dream.

• Size of the Drawing Room. Depending on the size of the drawing room, we need to make a choice as to what items, their size and numbers, which could find a place. A fine balance is to be made to include the essentials while avoiding clutter or including too many elements. As a common man, it is not easy to visualise the End State by the use of layouts, or for that matter even with a 3D or PPT. The room itself will have many civil works related elements which have to be kept in mind while designing. These could be:
  • The Main entry door and other doors and their interse distance, size, curtain / drapes plan / option. The area outside, beyond the main door and the space available there. The two spaces are interrelated and need to be treated in sync.
  • Window(s) size(s), location and direction, ie, the path of the sun. This will also dictate the type of curtains / blinds suitable and whether and how the window could be incorporated in the overall design plan.
  • If the space is less, add mirrors to make the room look bigger.  One could put a mirror on the wall opposite to the one with window.
  • Size will dictate the amount of furniture one could place in it so that it neither looks empty, nor crowded.
  • One may be surprised that the size dictates the choice of colour. A Small Drawing Room is preferable with light colour and smaller furniture.
  • Smaller space can be better served with Sliding doors. A huge Living Drawing area could be separated using a sliding partition. One could have a large/mid sized fixed/sliding door for the balcony, depending on the overall sizes. Very Large drawing room can be divided into multiple seating spaces. One could also use coffee tables, sofas or console table for divisions.

• Furniture. The Bible of Architects and Interior Designers, written by Ernst & Peter Neufert is a major help in deciding the type and amount of furniture apt for the space. There will be numerous furniture types and placing options from which one can chose. Some points to consider are:
  • There are various themes of furniture, like Modern, Minimalistic, Contemporary, Eclectic, Traditional, Vintage, Retro, Rustic, and so on. 
  • The theme for a space should preferably be one. For a small space, only one theme is better. For a huge space, one could have one theme, or seatings for different spaces could be of separate themes. One theme generally looks more cohesive.
  • Normally the largest piece of furniture becomes the focal point. Centre table design is quite important as it attracts attention. Sofas and centre table should have a separation of about 36”.  Some Wicker furniture could also be meshed in. Floating chairs maybe suitable for smaller areas (easily movable). One could throw in an odd arm chair to optimise the space.
  • Side tables are ideally placed on the sides of sofas of all sizes. Considering the current requirements, Side table area should have a switch board for  easy access  to charging points.
  • Entryways should be clear of any furniture. Never put furniture in front of doors.
  • Experiment with colours, textures and patterns in sofa and cushions.; textures of different materials like wood, metal, wool, silk and glass could be considered.

• Electrical. For any space, where its greater utility is in the twilight hours or beyond, lighting becomes a major contributor. When the guests arrive, you may want a brighter ambience, which could be subdued as the evening progresses. In the previous millennium, it was almost an unwritten rule that drawing rooms had yellow lights. Gen X and Gennext have since changed the Rules. Availability of varieties in lighting and changed mindset, gives a designer umpteen options for quality lighting. From vibrant to focused to soothing to gyrating and what not, are all in. Some of us may be surprised that there are lighting specialists who can change the complete look and feel of a space, just by changing the lights.  Some specific points for lights:
  • Combination of lights could be used on the ceiling. One should not rely on a single source of light. A combination of ceiling lights could be used.
  • The Statement wall could have a Picture light if there is a dominating painting on it.
  • Sconces may be suitable on the main wall, where as Floor lamps along the side tables look great.
  • The corners need special attention. Lamps in corners look nice. Some mix and balance is needed. Chandeliers still find their place for an elegant effect. Dimmers are handy to change the feel of the room.
  • Numerous inputs like location of AC, heating appliances for winters, switch board and other electrical fittings need to be incorporated.

• Automation. Apart from lights, there are numerous gadgets which one should know about, eg,  SPIN Remote to control different devices; DIY Thirsty Plant Kit, a solar-powered device which lets you know when your plants need H2O; Prizm to play the right tunes to play at the right time. Organic LED Lights- the thin, flexible lights use half the energy that a standard fluorescent light fixture does; Relay- brings all your smart home gadgets together in a single hub where you can control everything; and many more. There’s a race for automation.

• Furnishings. One of the most difficult part is furnishing. It has unending options. Let us see a few:
  • One could create one main wall or a focused wall. This could be the Statement Wall, which could be specifically designed to highlight the space. A Piece of art could be used here, which could dictate the Statement to be made.
  • Paintings and art / craft works add to the ambience if in restricted numbers. Too many pieces clutter the space and give a confused feeling.
  • Normally the Drawing room should have a TV only if there is no Living room. Wherever you place the TV, ensure that Lights,- natural / electrical should not reflect off the TV.
  • Carpets do add to taste, but need maintenance as they are a house for mites & pests. The size, colour and type normally depends on the seating and should be off the circulation area. (In office spaces, we recommend the opposite, to reduce foot sounds).
  • A gallery with Family photographs gives a homely touch and could be thought of.  One could try some black and white photographs; they have their own charm.
  • Greenery is an ever green option. Add some indoor plants, preferably those with lower maintenance requirement,- potted \ hanging.
  • Space permitting, a Fire place can be added. They bring the Old world charm.
  • Wood panelling and moulding could be used for the Statement wall. False ceiling should be such that they do not overwhelm the roof.
  • For a large space and for connoisseurs, a Designer Bar may come in handy, along with a mix of modern and antique decorative pieces.
  • The curtains / drapes family has various options to chose from; sheers to blinds to rollers to rods in false ceiling etc, to should one use blinds for windows.
  • Treatment of beams is important. You don’t want your drawing room roof to look like that of a garage. Flooring type is a lengthy topic and needs to be dealt with separately, as it contributes handsomely in the overall finesse. Wooden, marble, tiling, hardwood, are some options.

Going through the above text we can visualise that it would be a very sound decision to utilize the Services of Specialists to do up our Drawing room. Lets join hands to fructify your Dream Drawing room.

Home Loans for NRIs

A huge diaspora of Indians settled abroad, for various reasons ranging from house for parents, to investment option; invest in Residential properties in India. The procedures, taxation etc for a NRI are different from those applicable to a Resident Indian.

Compared to most foreign markets, Indian real estate offers better investment opportunity for Non Resident Indians (NRIs). NRIs who do not have enough funds, could buy properties in India, by taking home loans. Obviously, the home loan rules are different for NRIs and resident Indians. So it is better to know the rules before delving into it. Hence, it is important to know the crucial differences. Normally, the rates are a bit higher and the eligibility a bit lower, when compared to that for a Resident Indian. It is always advisable to get the loan approval first and then decide on the property you want to buy.

The IT Act & FEMA has laid down criteria to be categorized as a NRIs. NRI is legally defined under the Income Tax Act, 1961 and the Foreign Exchange Management Act, 1999 (FEMA) for applicability of respective laws. NRI is defined under FEMA as a person resident outside India who is either a citizen of India or is a Person of Indian Origin (PIO). The income generated in India is taxable in India & those earned abroad, are not taxed in India.

Qualifying Criteria for Home Loan.Coming to Home loans- a NRI can apply for it, provided he meets the eligibility criteria. Age should be above 18 years; banks decide the upper limit. 60 yrs is the upper limit in most cases. The loan tenure could be even 5 years, to max up to 30 years. Normally, one should have had a work experience of at least 2 years abroad. The loan amount depends on the repayment capabilities. Most of these vary from Bank to Bank, including the Interest rates and the processing fees.

Documentation. Some of the documents which you need to furnish are, Full passport along with work visa copy; Employer ID Card; Passport photos; Work Permit; Employment Contract; Residence proof abroad; Salary slips; PAN Card; loan application form duly filled and so on. Again, it depends on the Bank.

Repayment of Loan. Options for repayment could be transfer money through bank; have an ECS Mandate; issue PD(Post Dated) cheques etc. Ideally, the cheque / transfer should be from the Loanee’s account.

Power of Attorney (PoA). For document signature and processing etc, the NRI can execute a PoA, which is generally valid for 30 days. It ceases in case of the Principal’s demise. The POA needs to be duly stamped as per applicable stamp duty in India and duly notarized within 3 months of NRIs arrival in India.

Finances & Applicability of Taxes. As the NRI earns in Forex, there will be variation in his earnings in Rupee terms, which should be kept in mind for repaying loan. His earnings abroad would continue t be taxed as per that country’s law and his investment in property, as also loan repayment would be subject to Indian Taxation laws. NRIs are eligible to tax deduction on interest paid and loan repayment on home loan if he is NRI as per the income tax definition and files income tax returns in India. Eligibility of deduction etc under various sections hold good. So owning a property needs considering all the above, to come to the real cost of ownership for the property.

Home Loan from Foreign Banks.  Being a NRI in countries which have banks in India, could be used to advantage. Most Western countries have much lower Interest rates for loans. It could therefore be extremely valuable to exploit this option too.

Being a NRI gives you the added advantage of choosing the option of buying a property in India, or the country of residence. In case one has friends and relatives who could look after your property in India, investing in Real Estate is always a good option in India. Suffice to say that the Indian population density is high and everyone wishes to own a house. Hence, for quite some time to come, investment in property in India will be a viable fruitful option. Why miss it if you are a NRI?

Coronavirus – Effect on Property Prices

Predicting resolution from Corona virus and effects of it on any sector, is as hazardous a guess as any. Many experts of Real Estate Sector are advocating that the rates are likely to go up as Loans would become cheaper etc. There is another set of analyst who expect that the rates may inch upwards.

If we analyse it, many aspects emerge. Lets deal with them one by one.

• Financial State of Property Holders. In the era of 2000-2008, there was a deluge of investment in the Real Estate sector. Due to the slide down in last 8-10 years, weaker players moved out and only those with large pockets continued. Hence, selling under financial pressure has got reduced. One would understand that the HNIs or Investors, spread their investment asset class into their Own Businesses, Real Estate, Gold, Equity etc. It would therefore be a reasonable guess that desperate buying or selling is less likely.

• Business Establishments with good property holdings. It is without doubt that the entire economy would take a big hit due to Covid19. How big? It is largely dependent on sectors and speculations. If the Company had enough liquidity, it would wade through and may not be forced financially to liquidate its assets. In case this stage comes, there could be a Free fall. However, this condition is less likely to emerge.

• Cost of input materials. Quite debatable, as in some fields there would be time lag in startingproduction, whereas in others, the stockists would be eager to offload to earn much needed revenue & reduce holding costs. Overall, it would have limited effect.

• Most buyers today are end users, very few are into investment mode in Real Estate. Hence, probably, the demand would more or less be constant. The buyers however, may pend their decisions for some time in view of low revenue flow due to lock down, likely to normalize in 2-3 Qrs.

• The Builders have been paying salaries & fixed costs, which would result in reduced cash levels and hence eagerness to offload inventory at a competitive prices can not be ruled out.

• Available data indicate that Property prices in India’s major / important residential markets have not been giving great returns even when the economy had started looking up. So, when there is an added problem its likelihood of giving high returns is arguable. Annualized property growth value (CAGR), as of December 2019 in cities like Mumbai, Noida, Delhi, Gurgaon, Pune, Ahmedabad, Bangaluru, Kolkotta Hyderabad, Indore, Chennai etc had been between -1.4 to 2.8%. Expecting any windfall gains is well nigh impossible.

• Data indicates that in the major markets, unsold Inventory levels are tremendously high, to the tune of 6 to 7 lakh units, if not more. Developers have to sell these to avoid insolvency and NCLT etc.

• Government action. Real Estate is one of the major job generators, a very large part being in the unorganized sector. It can not be ruled out that there may be some incentives for the sector to increase jobs. This can not be predicted, as there are too many imponderables for the Govt to handle. It is less likely to attract too much attention from the Financial Planners.

• As a result of Lockdown, new launches are expected to further slow down. Hence, the existing inventory would get back some demand.  Government had set up Rs 25,000 crore Real Estate fund. The Contagion has led to huge revenue losses for the government and any more infusion here should not be expected in near future.

• Good news is that Interest rates have come down and likely to further move down, so has been the interest earnings in Small savings & PPF etc, which means some increase in liquidity, as also availability of larger home loans. However, this may be offset by Job losses and resultant lesser number of people having home buying in their priority list.

To sum up, even though the government has extended the benefits offered under Section 80EEA till March 2021 and may be further extended to support the Real Estate Sector, there may not be any quantum shift in the current scenario. There would be some fluctuations, but any drastic chane may not be coming.

Bedroom Vastu – What to Do & What Not

We have always professed, Vastu Shastra is a Science, which helps you in deciding the layout and placing of various spaces and items in it. It should be treated as an aide & not a hindrance. In case of Bedrooms too, we should take informed decisions to orient, locate and place the various furniture & furnishings in a manner that it enables healthy and comfortable living.

Bedroom being one of the most private spaces, positive ambiance, which gives good vibes is of utmost importance. Right from the entrance to the Bed, the furniture, paintings, furnishings, clutter, circulation space, all play a role in deciding your state of mind, which in turn affects your mental well being, resultant behaviour and performance.

Master Bedroom & Other Bedrooms. As per Vastu, best direction of entrance to the house is from the North East. Hence, if you see logically, the South West Corner becomes the farthest place in the house, which ideally should be the location of the Master Bedroom. However, if your entrance is from South South East, the Master bedroom could be in the North West.

South East or North East should be avoided. India is in the Northern hemisphere, where Sun always moves from the Southern Side- Dakshinayan. Hence, a bedroom in the Southern side gives ample sunlight throughout the year. It is therefor good to have the daughter’s room too in the Southeast. Northeast is also suitable for children.

Wall Color- a light colour like off white, baby pink or light cream are ideal. There should not be a beam running over the bed. Bedroom should preferably not have your Temple, except due to space constraints. The attached Toilet should be kept clean and without any foul smell. Its door should be kept shut to avoid negative energy entering the bedroom.

Anything that disturbs the calm of the bedroom has no place here. Hence, no television. If you must have one, make sure it is placed at a reasonable distance from your bed. “The TV screen should not work as a mirror opposite the bed.

Entrance & Bed. Although most people living in flats do not have much option, it is better not to have the entrance to the bedroom from the Head end side of the bed. Nor should the bed be so placed that it is visible from the main entrance of the flat. The head side of the bed should not have a window behind it. Most of us understand the Gravitational field of earth. Direction of your head while sleeping, should therefore be South, West or East, in that Priority. Metal Beds are heavy and not very conducive. Unnecessary weight adds to the negativity. Couples’ beds should have a single mattress (double bed size), as the partition in the mattress hinders your comfort as also, zones them into two beds.

Circulation Space & Clutter. Ideally, 3 ft of space all around the bed is good, however, some compromise could be made, specially on the sides where there is less movement. To achieve a better and open feeling, reduce clutter. The bulky huge teak almirah gifted to your mom by her dad, is best avoided in the bedroom. Too many small furniture spread around, which affect free movement in the bedroom adds to your stress and should be done away with; however beautiful / treasured they may be. Find some other suitable place for them. Some aroma candle etc which emanate good smell is also advisable.

Paintings, Photos, Mirrors, TV, PCs, Mobile. Paintings / picture depicting happiness is recommended. It is always nice to have your beautiful moments in frames in your bedrooms. Wedding pics for younger couples is very suitable. Those depicting fights, war, blood etc are a strict No no. Mirrors in the bedroom should be so placed that they do not reflect your image while lying / sleeping in the bed. TV is best avoided in the bedroom; remember its the Idiot Box – causes addiction. PCs & laptops need to be avoided. Mobiles & PCs cause high electronic stress. The radiations are inimical. Photos of deceased ancestors are also a No.

Lights. The bedroom should have options for having bright light, eg for dressing up; subdued light for relaxing and some minor source of night light, like foot lights, when one is sleeping. However, light exactly above the Bed is best avoided.

Storage. It is normal for bedrooms to have storage for clothes, shoes etc. Ease of use should decide their placing. We need to get over our traditional mindset of keeping anything and everything for ever. Storing old broken Cassettes / CDs, watches, batteries, clocks or dresses and shoes one has not used for ages, add to the negative energy and are a definite discard. Discard all chipped and semi broken items. Reduce the clutter in your cupboards. It adds to your anxiety and feeling of being disorganized. As a Thumb rule, if you do not use a dress / shoe for 2 to 3 years, give it to someone who would use it and bless you.

What Vastu aims is, at your mind. Anything and everything which adds to the peace of mind is generally good Vastu. If the home atmosphere is harmonious, the inhabitants will be happy and resultantly, successful.

www.colonelz.com

Interiors by Team COLONELZ

With the Internet becoming a predominant part of our lives, most of us having access to Pinterest, websites, and Do-It-Yourself TV shows, feel we are best suited to do the Interiors for our Spaces. Ideas are easy to get, however, the Information Overload and alignment of these inputs in a usable manner is pretty tough call. Many also assume that creating luxury interior design will be at a huge extra cost. In fact, the opposite is true. We as your interior designers, save you money.

Hows & Whys 

We Save Your Money

We ensure that our interior designing costs are paid back many times over, with savings made on your project. Our economic optimization of products, coupled with our relationship with the suppliers and by using our in-house team, we get you more than Value for Money. We work out a detailed Schedule of Works at the beginning of the project, which gives you a very fair Estimate of timelines and prevents costly mistakes in execution, as also, continuous increase in cost by putting across items which are sounded as important / mandatory. Our planning is meticulous.

We make budget estimate & compile Schedule of Works with a breakdown of prices for each element of the project; an essential and complex calculation that can be done only by professionals. 

For Us No space is Too Small, No Budget Too Little

We work on all sizes and budgets of spaces. We give you a mood board, floor plan, furniture layout, electrical & plumbing layout if needed, work schedule, budget estimate and if you want, a 3D visualization of the space. After this presentation and upon approval, we plan and execute the project together.

Exclusivity

To crystallize a project, we carry out detailed interactions with you to understand the inhabitants, their habits, behaviors & needs etc, E.g.

• Does your work involve Night Shifts? Or do you wake up late (this may call for blackout shades)?
• Do you prefer eating in the dining room or the kitchen (maybe a breakfast nook is in order)?
• Will you live in your condo, or rent it out (spruce it up as a rental instead)?

Based on it, we suggest Economically Optimal Options/ Solutions. If your taste clashes with your family’s (or your spouse’s) tastes, we propose compromises and give a solution that satisfies both parties. Our designer will then work on your space based on your requirements and lifestyle. We are your saviors.

Product & Service Range

We are an exception that apart from having our own in-house Team of Architect, Interior Designer and skilled manpower, we also have our own Modular & Designer Furniture & Furnishing Manufacturing Unit, which gives you quality, economy & guaranty.

We Make it Stress Free for You

We handle the project from start to finish. You do not have to search for any type of Contractor or Service Provider. We are a ONE STOP SHOP. We have our in house team of architects, top interior designers and specialist workmen like electricians, plumbers, masons, carpenters and other skilled manpower. We also have tie ups with Best Firms in Intruder Alarm Systems, uPVC, ceramics, construction materials and other input materials. For items we don’t make, we help you shop, with assured discounts.

Planning Applications

We pay particular attention to lighting plans to ensure they work with furniture layouts and room designs. On a complex renovation, the untrained eye can overlook a simple decision such as where to put a plug socket. It’s too late at the end of a project to realize you can’t place your INR 50000/ Porta Romana table lamp where you want it, because the lead does not reach the power supply. We work backward from the envisaged interior finish, and plan everything meticulously, starting from the furniture plans and go back to basics.

Experienced, Trained, Artistic Eyes

Our Team comprises Extremely Professional & Educated Architects & Interior Designers, suitably supported by highly Skilled and vastly experienced manpower. They are trained to handle interior projects and their challenges and problems, thus eliminating the danger of trial and error—and expensive mistakes you have to redo. Creativity, imagination and artistic flair are their traits. It is because of this training and experience that the team can have a ‘magic touch’ on a project that pulls everything together. They work on hundreds of little details such as choosing what type of lighting switch plates, positioning of electrical outlets, specifying the trim detail of a headboard, and many more.

Above all, we believe in “Building Relationships. Business Happens”. 

We Stay Friends Even if You Don’t Hire Us

www.colonelz.com

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Blog- Guns and Mortar to Brick and Mortar!

Rail Freight Corridor or Passenger Corridor

Should Railways have Freight Corridor OR Passenger Corridor – Food for Thought.

There has been a lot of positive development on Upgrading the Railways. The current Passenger Train tracks are severely & adversely affected by Speed Limits due to their Quality & vintage. Repairs / up gradation may cost as much as laying new tracks.

The existing Railway Stations are also constrained for space, accessibility, parking space and are quite unorganized.

Is there a requirement of having a complete new set up of Train lines, maybe spread over a period of 10-15 years, wherein the existing Routes & Stations gradually get replaced by freshly laid next generation tracks, with State of the art Stations coming up. PPP is good option. If DLF can lay Mono Rail, what is wrong in Pvt players in Railways?

The existing lines could be used for Freight, with Freight Stations being developed close to the Bigger / existing Towns / Cities. Imagine the Infrastructure & Job Creation, as also effect on GDP by efficiently speeding up transportation.

If we can have completely new airports at fresh locations, in major cities like Hyderabad & Bangalore, why can’t we have new Railway Stations? It is neither too difficult nor impossible.

A small country like Nigeria shifted its Capital, we can surely take this on.

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/11/rail-freight-corridor-or-passenger.html

Real Estate Purchase, Sale, Taxation, Capital Gains, Reinvestment

Purchase of Property

Once you book a property with a Developer / Builder, it is deemed as acquisition. When you sell your real estate for a profit, you have to pay capital gains tax on the profit earned. The capital gains tax could be Sort Term Capital Gain (held for less than 3 years) OR Long Term Capital Gain (held for 3 years or more). In case of ancestral property, date of initial acquisition is taken.

Short Term Capital Gains (STCG)

In case the property is held for less than 3 years, you pay tax on the profit as per your Tax slab. It is deemed as normal income like salary.

Long Term Capital Gain (LTCG)

 In case you sell after 3 years, it is Long Term Capital Gain, taxed at 20%.

Indexation

To cater for inflation, Indexation is done. So, if a property was bought in 2000, for Rs 10 lac & sold in 2013 for Rs 30 lac, the taxation will be as below:

Date for Taxation / Tax Exemption

A capital asset means property of any kind. A right to obtain conveyance of immovable property is “property”. Hence, if the booking agreement and allotment terms and conditions of the builder gave a right to obtain conveyance on the said property, the property after fulfilling certain conditions, that itself becomes “an asset” under the Income-tax Act. The issue which arises w.r.t. transfer of rights in the property under construction as well as in case of transfer of property (after taking the possession) is – whether the gain on transfer is short-term or long-term? The date which decides the nature of capital gain is “The date of acquisition” In this regard, there can be various views. To qualify the investment in case of builder flats, the date is the date of allotment of the residential flat and the payment of installment is a follow up action. However, you will need to pay Service Tax on 25% of the Cost of flat. In case of ready to move in Flats, the Registration date is taken into account.

Cost of Property

The cost of property includes Brokerage paid, cost of improvement etc, which is also Indexed. So if you paid 1% as brokerage, say 20000/ & spent 3 lac on house improvement over 3 years, these could be included in COST & reduced from profits (duly indexed).

Saving Tax

If you reinvest the accrued amount in ONE Residential property of equal or greater value, or in Govt Specified Bonds, the tax could be saved.

Guidance

You could go to my blog https://colonelzbricklogic.blogspot.com/ Or contact Biraj@colonelzinfracon.com; 9818744711,  for specific advice. We don’t charge for routine advice. Costs, if any, depend on the case.

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/11/real-estate-purchase-sale-taxation.html

Making Honest Business Possible

• Being an Ex Army Officer, it becomes 2nd nature to be honest. I started my Business a few years back & found that there are purposeful loopholes which suit all, to make a pie of corruption. I intend covering the PF & ESI schemes below.
• PF & ESI Applicability

The current applicability is excellent in the interest of the weaker section. However, its implementation is pathetic. A Co is expected to pay PF & ESI even for a casual lab employed for a day. Is it practically possible? So who is benefited? Both, the Employer, who circumvents this utilizing the Financial Brains of his CAs etc, (apart from bribing a small percentage of due amt) & the PF/ESI Regulators from Labor Commissioners to the Inspectors & below.

• Currently, the applicability is for Cos with more than 20 employees. Practically it is difficult to implement for those having less No of employees. So who takes care of the other workers? Statistically, more than 80% work force is employed by such employers.
• Currently, a Co having less than 20 employees can NOT obtain PF & ESI Certification even if he wants. It should have been permissible to all.

Government’s Responsibility

Government is expected to provide Pension, welfare, medical support etc. How does the Govt. do this without Generating the Revenue? So the Subsidy comes in, burdening the Government, whereas the Employers & Enforcement Staff enjoys.

My Recommendation

It is a very simple recommendation, which can be implemented as easily as Income Tax.

• Historical records of last Five or Ten years could be taken. Data can be collated as to what percentage of the Revenue / Turn Over, the Co spends on PF & ESI.
• There will be representations from certain industries which are NOT work force intensive. Either we insist on standardization, irrespective of the Industry (better to prevent corruption), or 2-3 categories could be made. Making too many categories will increase Subjectivity & bribing.
• This could become a Standard Tax for all businesses & Professionals, including Cos /Sole Proprietors /Professionals etc.
• The employer would just need to send the details of the employee to the PF / ESI Enforcers, like name, salary, joining dates, ID etc.
• The PF & ESI Authorities should issue PF & ESI Cards & start their PF & ESI Accts.
• These accounts could be transferable as is now.

Advantages

• Majority work force can be covered.
• Manipulating the No of employees would not be needed.
• All businesses will be covered, resulting in better revenue & its expenditure for the welfare of the deserving.
• Ease of doing Business, as each Registration take a couple of months & greasing of palms.

The Finance Minister will get a much Bigger Kitty from the above than what he is getting as of now.

Col Biraj Sahay (Retd)

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/10/making-honest-business-possible.html

Your Money Tree

We have started with Financial Planning to macro manage your ASSETS & diversification into-

• Equity,
• Debt,
• Real estate,
• Insurance etc.

We take an hour or so of discussion with you and give you a revert on the Detailed Suitable Financial State for you. We do the follow ups also.
We guarantee minimum 10% growth advantage from your current exposure.
Our consultancy costs Rs 2500/ + tax.

We also help in IT returns, cost of which is separate.

Remember, Jayalalitha did not file in 1992-93 & went to jail in 2014. Dont take it casually.

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/10/your-money-tree.html

Worrylessly Upgrade Your House in NCR

We have been getting inquiring about minor / low cost works with respect to house improvement like civil / wood / sanitary / flooring work etc. We do undertake such works, with min budget of around a lac, in NCR.
Anyone needing help could contact me
@
biraj@colonelzinfracon.com; 9818744711

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/10/worriylessly-upgrade-your-house-in-ncr.html

Luxury Living With Added Safety & Security

Being in Construction Business, one often got enquiries for High End Living Homes, with STRONG STRUCTURE. We embarked upon a Project using best stuff like Lafarge Cement, Jindal Steel, etc. It has all facilities like 100% Power Back up, water 24×7, covered parking, high end lifts, gated community, great exterior & Interior.

This Central Gurgaon area has 3000+ sft carpet area floors only. Our Floors comprise 3/4 large BR, 3 large toilets + 1 Pdr room, 3 big Dressers, Big Dining + family lounge, Large Drawing room, Huge Kitchen, Study room, Pooja room & 3 huge balconies + Sr Qr.

These will be ready by Jun 2015. The prices are:

• 3.75 Cr for Ground Floor (3600sft) with Basement (3000) + Sr Qr;
• 2.75 Cr for First Floor (3400sft) + Sr Qr;
• 2.25 Cr for Second Floor (3200sft) + Sr Qr.

My contact – Col Biraj Sahay -9818744711; Biraj@colonelzinfracon.com / biraj153@hotmail.com

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/10/luxury-living-with-added-safety-security.html

Expectations Post Elections from Real Estate Industries

Introduction

1. The Indian perception that Real Estate is amongst the Better and Safer Investments continued to stay even in the downturn. It is likely to gain faith post Election 2014. Although most Real estate companies are bogged down on all fronts, right from Curbs on Lending, Mounting debts, Increasing Interest Rates, Liquidity crunch, Employee dissatisfaction and more, the Indian Perception of “Hamara Ghar”, may bail out this Sector.
2. The point to ponder is that Post Election 2014, will it look up, survive or sink? Will it be another Bubble like the IT Bubble?

Analysis

3. The Real Estate Sector has been in turmoil for some time. Factors affecting are listed below:
   1. The first half of the last decade saw a crazy rush for Real Estate, both, at the Builder / Co level & the Buyer level. Numerous Real Estate Companies mushroomed. Rich & famous found it wise to be either invested in these Companies or their products; Residential, Retail, Commercial or other options.
   2. In spite of a shortage of over 16-18 million houses in India, the End Users have not been the Major Buyers. Close to 55% of home buyers have been buying as 2nd / 3rd Property, meaning that the Real Consumers are still available aplenty.
   3. Rush to own properties, led to unrealistic growth in Prices, which was boosted by the Broker Community. However, the Broker motivated artificial fillip was not going to last forever.
   4. The growth of 20-25% during the beginning of the last decade, stagnated between 2007-10, leading to a large No of Investors getting stuck with their Investments. The first  to be hit was the Commercial space; more than 35% of Commercial Properties in NCR are vacant / unoccupied. The Residential Sector soon followed, with under construction Flats being sold even at sub-prime costs.
   5. The relief which came in 2010 lasted for 18-24 months. It once again got stalled due to Over Priced Inventory, coupled with Policy Paralysis of the Govt.
   6. The slowdown in demand resulted in a sharp spike in inventory of late. The global recession and impending tapering of the easy money policy by the US central bank have not been auguring well for fund flows to the sector.
   7. Projects have continued to be delayed, without much recourse for the Buyers.
   8. The Indian Real Estate is heavily funded by unaccounted / surplus money, ie. there is a large difference between the Price of property on papers & actual cost. This had helped Indian Real Estate survive the Sub Prime Crisis & may once again be able to.
   9. After the never ending delays, the Govt came out with the Land Acquisition Bill, the content of which are highly debatable. However, some clarity has finally come.
   10. Regulatory Body. In the absence of any worthwhile Regulatory Body, the Builder Sharks had a field day. There are more than a lac Legal cases pending in courts against the Builders. Norms were violated & Common Man was left to fend for himself. Some Positive Judgments & Laws for the Buyers have led to cooling off of some Corrupt Practices.
   11. For investors in Real Estate Co stocks, there were huge losses, as most real estate stocks are quoting at a fraction of their book values. However, the belief that real estate is amongst the best investment stays. What the new Govt does, will decide the revival of the investment cycle.

Expectations from Real Estate

4. The expectations from the Real Estate could be put in two parts; one w.r.t. the Property Buyers & second for the Share Market or the Real Estate Index.
5. Property Buyer’s Expectations. The Property Buyers expect the following from the Real Estate Industries:
   1. It is largely expected that the Policy Paralysis would be over & the new Govt. would bring in Fair & Well Defined Guidelines post Elections.
   2. Buyers should not expect continued growth rate of 20-25%. One should be fine with 15-20% growth at the max. To achieve this, the Sale price to be fixed by the Industry, should be Pragmatic, leaving space for growth for the Buyers.
   3. Common man expects that now he will not be cheated through misleading advertisements and selling on Super area. There will be more clarity from the Builders on the aspects of Super/Carpet Areas; Car Parking Cost; Maintenance Deposits (IBMS, IFMS etc), PLC and so on.
   4. Newspapers & Magazines like HOME FOR EVERYONE, would be of great help to Consumers in comparing Builders, thus enabling Buyers to take informed decisions.
   5. Carpet Area is an important concern for all buyers. The Real Estate Regulatory bill, has come as a great relief for the home buyers. Buyers expect the Builders to comply with the Govt Direction on this.
   6. However, there are many grey areas unaddressed. To address these, there is an urgently requirement of a “Dispute Redressal Mechanism” to safeguard their interest.Majority of homebuyers (more than 75%) believe that it will safeguard their interest.
   7. The new Govt is expected to set up this mechanism. People expect Special Courts like Consumer Courts would play a major role in resolving Housing related disputes.
   8. The masses also expect that some Sops like lower Interest Rates, specially for End users should come in.
   9. The government must remove the service tax on under-construction properties, as this tax adds significantly to the cost of the property.
   10. The Govt may give some concessions in affordable housing projects. We have more than 16 million housing shortage, which needs to be jointly addressed by the government, builders & other agencies. Some incentives w.r.t. taxes and excise benefits are much needed for this segment.
   11. It is time Govt. gives Industry status to the Realty Sector. On getting industry status it would be able to raise funds at lower cost resulting in reduced sale price to the buyers.
   12. The current income tax exemption limit (introduced a decade back), for the interest payment towards the home loan is 1.5 lakh per annum. The limit is no more adequate. It needs to be doubled, if not more.
   13. Home buyers also want that Govt should enforce heavy penalty on developers if a project is not delivered on time.

6. Investors in Property Companies’ Expectations.
   1. It is not expected that the fundamentals of the sector will change any time before 3rd Qr FY 14-15. We are probably a quarter away from when the sector bottoming out.
   2. Interest on home loans is likely to peter off, resulting in these stocks improving.
   3. Getting “industry status” will give it a boost mainly because of cheaper fund availability.
   4. Most real estate stocks are available at a fraction of their book values, making them attractive with a long-term perspective. The Indian belief that real estate is the best investment remains intact, which makes one bullish on the sector.
   5. The percentage of home owners who do not have a home loan is very low. Subsidy / support to this segment would push up demand.
   6. It may be possible for the Govt to give subsidy on low cost / first time home buyers, which will boost sale.

Conclusion

7. The elections are round the corner. The Country has high hopes from who ever forms the next Govt. housing is one of the Three Primary needs- Roti, Kapda aur Makan. It needs to be seen if the Industry and the Govt delivers on the expectations from them. If they do, the sector will revive & it would be a Win – Win situation for all.

Written by Col Biraj Sahay

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/04/expectations-post-elections-from-real.html

Buying a House?

One is often pained to meet unsuspecting Friends (specially Faujis), taken for a ride by some Builder or the other including some very high ranking people.

Some of the basic principles you must  follow are:

• In money matters, no friends. Its business and not charity. No faith, just go by black and white.
• Not all that shown in the Brochures are true, as they are in 2 dimension & virtual, whereas the promise is in 3 dimension & Real.
• Seeing is believing, so see the Proposed Sight, Property papers, Land registration, government clearances etc.
• MUST visit at least two properties made by the Builder, interact with the Resident users & you will come to know of the Truth.
• Read Complain Forums of the Builder before buying. Check No of cases pending against the builder. I know of a Builder Promising Moon, but having more than 200 litigations- none from the moon.

Anyone needing help in my friend Circle, pl feel free to contact. Its Your money, don’t donate to a Cheater Builder.

Reference Link:- https://colonelzbricklogic.blogspot.com/2014/10/buying-house.html

Check it before you Cheque it!

“Home is a place you grow up wanting to leave, and grow old wanting to get back to.”

John Ed Pearce

Purchasing a home, while being very exciting, is also an extremely tedious experience. There are truck loads of options in the market, but not much information about them. To help you tide over your delusions & worries, we have created a 10 point checklist to rate the properties you are interested in, so as to help you take an informed decision.

Check It Before You Cheque It!

Before you decide to invest all your Green (or should I say Pink) Bucks, take a step back and get informed. Check the following before taking your Call.

• Builder Related

Credentials of the builder– Make sure you do some research on the builder. Find out about a previous/old project done by the builder and pay a visit. You are likely to get similar Property & Services. Talk to the residents, get a feedback on the following:

1. Condition of the Building, to include Sanitary & Plumbing fittings, Furnishing, Plaster work.
2. Paint, Polish & state of walls & furnishings quality
3. Sewage issues & Seepage problems

Amenities– State of maintenance & upkeep of Club, Sports facilities, Banquet halls, lawns, pathways, etc.

Maintenance & Security- While visiting the old project judge the security and over all cleanliness of the society. Find out how efficient is their waste disposal system.

Air & Lighting- Better ventilated property is more naturally lit & reduces electricity bills.

Price– Its Basic Price (BSP) & allied costs like Maintenance etc. Compare it with Similar Quality societies nearby.

• Location. Extremely Important. General location (like next to NH, means high noise level) & specific location (park facing –so good view).
• Connectivity– See it to believe it. Proximity to schools, bus stations, your work place, etc., as travelling relates to your fuel / travel costs.

Dwarka Expressway property buyers are stuck as road construction is stuck due to litigation. Avoid options where a road is to come up in the next 6 months, because it may not come up in the next 10 years.

• • Resale Potential-

• • Higher Occupancy of new flats means better Resale chances & value.

• Enquire from Local brokers for resale price. Remember, they will praise the property on which they are likely to earn more –take it with a pinch of salt. Compare with prices of properties in the vicinity; would help you judge the market reputation of the property you are interested in.
• Right Price– If you are selling, ask Brokers for Purchase Price & vice versa. Average the Sale & Purchase costs offered by Brokers. This is probably the Market price of the property.
• Road Conditions Around Property –Must check the road condition & lighting, at least up to 500 meters from the project;  the condition of the roads as well as the lighting on the road.
• Rental Potential- Often one buys a house for self use, but later changes his mind. Before investing in a house, find out the rental value. Annual rent of a house should be 2-4% of the total cost of the property.
• Young Investor.  If you have a transferable job, or are planning to use the house a decade or later, most important aspect is – Is it likely to give Good returns on sale? 70% people change their mind in a decade or so, as to where to settle. So your Investment should be able to get you a property at the Place You Finally Decide to Settle.

In case of any further queries, we would love to hear from you. Leave us a message on –Facebook; Blog; email– biraj@colonelz.com

Reference Link:- https://colonelzbricklogic.blogspot.com/2015/01/check-it-before-you-cheque-it.html

Know Your Lender For Your Shelter!

“A house is not a home unless it contains food and fire for the mind as well as the body.”

Benjamin Franklin

We have all dreamy of a perfect home where we’d like to experience life with our loved ones. Big or small we all have our own ideas of a dream home. But sadly, not always can we afford the home we dream of and that’s where the banks come in; helping us finance the home we want. But, do they actually help us? Let me help you find the best loan for YOU!

Costs related to a Home loan:

1. Processing Fees– This is the first prominent fee one needs to pay with the loan application. The fees varies from 0.25% to 1% of the loan amount and is non-refundable i.e. you have to pay it irrespective of whether your loan gets sanctioned or not.
2. Legal Advisory Fees- The fees you bear to get the property’s papers verified and scrutinized by a legal advisory or a lawyer and prepare a report on the basis of which bank will decide whether the property can be financed or not. This fee is also non-refundable and needs to be paid with the loan application.
3. Stamp Paper Cost-This is a nominal expense of about INR 300 which is required to buy legal stamp papers once the loan has been approved and write down legal home loan agreement between you and the bank.
4. Cost of Home Insurance Premium- Insuring your home is a recommended option, which some banks have as a mandatory requirement. This insures your home against any natural calamity and other threats which can potentially destroy your property.
5. Cost of Home LOAN Insurance Premium– Home loan insurance is different from home insurance. The first insures you against the home loan liability; the second i.e. home insurance, insures your property. Home loan insurance can also act as your guarantor,in case your credit report is NOT good and the bank wants you to provide a guarantee to support your home loan. This is a big expense if you opt-in for it. However, it is recommended to cover the Buyer’s dependents, in case of his demise.
6. Service Tax on Bank Fees– Service tax is another amount that is charged by banks on the amount that you pay them as fees.

Right Loan Provider  – Factors to Consider:- Six factors for selecting right home loan provider:

6. Processing speed– It should take not more than 10-15 days for a loan to be processed and additional 3-5 days for the loan amount to be disbursed.
7. Lending criterion– Different banks have different lending criterion for the estimation of the loan amount and in general the approval of a loan. For eg- age, job profile, credit history, etc of the borrower.
8. Repayment of loan–  Banks have terms and conditions for the repayment of the loan and also for an early part payment / repayment of loan. You must refer to the terms related to the settlement/ foreclosing the outstanding amount in detail before finalizing a lender. As per RBI Directions, a bank can NOT charge Foreclosure Charges.
9. Cost of loan– Banks have certain other charges related to loans, irrespective of the loan being sanctioned. Refer to the beginning of the article for a detailed explanation.
10. Fixed vs. floating rates– In Floating Rates, Rate of Interest keeps changing, where as in Fixed, it is Constant. In Hybrid, the rate is Fixed / Floating for a period & changes thereafter. As a thumb rule, if the loan period ranges between 2 to 5 years, going with a fixed interest rate is better, and Floating rates are more suited for long term loans. You can even go for a hybrid loan, which enables the borrower to enjoy the best of both fixed and floating interest rates.
11. Hidden charges– Hidden charges is something that tends to prick the pocket of borrowers the most. Thus, while narrowing down the options, it is advisable to compare the processing fee, down payment, valuation fees, prepayment costs and other charges levied by different lenders.

     In case of any further queries, we would love to hear from you.

     Leave us a message on –Facebook; Blog; email– biraj@colonelz.com

Reference Link:- https://colonelzbricklogic.blogspot.com/2015/02/houseis-not-home-unless-it-contains.html

Guaranteed Returns Schemes on Real Estate

Most of us would have come across lucrative advertisements talking of 11-12% Guaranteed returns on your investments in Real Estate – mostly in Commercial Property like Offices / Shops etc. When Banks etc are giving you just 6-8% returns, why is The Builder ready to give so much more. Its simple Finance. read more

Green Buildings – Indian Perspective

Deteriorating Environmental conditions pan India entails we MUST focus more on Environment Friendly Buildings & Infra development. We are a country of 1.5 billion people and counting , in which 32% of population lives in urban areas.India’s  increase in commercial energy consumption in the last four decades has been 700% and is growing. Energy consumption in India will grow upto 3 times of current consumption by 2030. There is a shortage of about 250 million liters of water per day, if we only consider the major Indian cities. The crisis is approaching, lest we stem it. Green building construction presents a solution for sustainable growth.

What is Green Building? Green building, or sustainable design, is the practice of increasing the efficiency with which buildings and their sites use energy, water, and materials, while reducing the negative impacts of the building on human health and the environment over the entire life cycle of the building. Green building concepts extend beyond the walls of buildings and should  include siting, design, construction, operation, maintenance, renovation, and demolition; as also, community and land use planning as well.

There are numerous ways to make your buildings more Eco friendly. We list a few below

Sustainable Site Selection:

Easy availability of public transport/ Mass Transit system and conveniences helps cut down energy consumption for transportation. Rehabilitation of sites damaged by environmental contamination is a better option than any new piece of land where large amount of energy and resource is needed to make the land worthy of building on, thus saving large amount of energy.

It is very important to protect the existing Flora & Fauna, the soil and natural features. Avoid hard paving on the site to preserve top soil and ease rain water harvesting. There should be minimum storm water runoff.

Sustainable Building Components / Material

Material which can be recycled, have low toxicity, nil / low harmful air emissions, as also, have a long shelf life are better. Planning the Building’s structure and dimension can reduce the construction costs. Construction and demolition material can be reused and recycled for landfills. Proper planning for managing materials through deconstruction, demolition and construction is done.

Using renewable materials like bamboo flooring, wool carpets, straw board, cotton ball insulation (made from denim scrap) is good. Locally available materials must be given priority; Saves transportation costs. Alternative materials that can be generated from waste with lesser energy is used over conventional building materials, e.g. alternative materials for timber, like MDF board, Mica Laminates and Veneers on composite boards should be used instead of natural timber.

Industrial waste based bricks and blocks, aerated lightweight BPC concrete blocks, can be used for masonry structures and Fly ash, for bricks, outdoor paving and in concrete.

Solar Energy

Indian Govt is giving numerous subsidies, including sharing of Solar energy generated in the Grid so that excess energy generated during day can be bartered for energy at night, thus being economically efficient, as also environment friendly.

Water Efficiency

Installation of water efficient or low flow equipment in kitchens and bathrooms to reduce water consumption is very important. Newly designed Vapor generating taps save 80% water while being as efficient.

• Incorporating waste water management technologies like dual plumbing for using recycled water in toilet flushing or using water conserving fixtures such as low flow shower heads, self closing nozzles on hoses, water closets with dual flush options.
• Use of Micro irrigation techniques at sites instead of high pressure sprayers.
• Re circulation system for centralized hot water distribution.
• For landscaping purpose, local plants and trees are used as they consume less water.
• Provisions for reusing and recycling water are made to ensure efficient water management.
• Using treated waste water, non potable water for site irrigation. Raw sewage can be recycled using aquatic plants like duckweed and water hyacinth to produce clean water suitable for re-use in irrigation and industry.
• Integrating Rain water harvesting system in building design to ensure maximum possible utilization of rain water.

1billion square foot building area has been certified as green by leading green building rating system LEED-INDIA.

There are two established Green Building rating system in India.

• LEED-INDIA
• GRIHA

Some Green Building Projects in India

• Suzlon Energy Limited – Pune
• Biodiversity Conservation India – Bangalore
• Olympia Technology Park – Chennai
• ITC Green Centre – Gurgaon
• The Druk White Lotus Schoo l- Ladakh
• Doon School –  Dehradun
• Raintree Hotels – Chennai
• Nokia – Gurgaon
• Rajiv Gandhi International Airport – Hyderabad
• Palais Royale at Worli – Mumbai

Reference Link: https://colonelzbricklogic.blogspot.com/2017/02/green-buildings-indian-perspective.html

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Having Problems with Storages in Toilets?

Invariably, our storages in toilets & wet areas get spoilt over a period of a couple of years. This is the problems with storage in toilets. So what is the remedy? For some time, a solution in the form of WPC is being used successfully. The material is ideal to be used in areas where some water splash on your storages / cabinets are likely. These are a good substitute. Please don’t use it as a water proof material, but as a water resistant material. While fabricating, one must understand that the hinges etc are of metals & would need extra care to prevent them from rust & resultant decay.

read more

Planning to Make a House? Guidelines – Part II

You would be aware of the saying, “Time spent on Reconnaissance is never wasted”. To arrive at the final design for your house / any other building, one MUST go through guidelines to make a house or do a detailed research on the type of Home or Space you are planning. Whether it is Residence, office or commercial space, the most important Factor is : read more

Taking / Giving Property on Rent? Our Advise—– Be Wise

Hiring a place may seem very simple for the Landlord, as also the Tenant. Sometimes these become very unnerving if you miss out on some important aspects that need to be considered before moving into the house / letting out your house. Taking the paperwork lightly may have serious implications for both the parties. Apart from checking out the exteriors and interiors, the legal check on various aspects is equally essential.

Tenants Points to be considered:

• Check property ownership documents. Conveyance Deed is the best proof, however, Electricity / Water / Gas Bills are also acceptable.
• If a Broker is involved, his registration should be checked.
• Brokerage to be paid to the broker varies from 15 days rental to 1 month in North India. It could be more at places. Must negotiate it.
• Brokerage paid is part of expenses & you can use it for tax purposes. So preferably, pay in cheque.
• You must inspect the house and see the house in detail before finalizing. Bring out the repairs required, like; toilet flushes, electricity points, modification required for ACs, Doors & windows, etc.
• Photograph broken or dilapidated fixtures / fittings & exchange it on mail with owner to avoid problems while handing back.
• Major & Minor Repairs. Major repairs due to fair wear-and-tear are done by the owner. In case of negligence, cost is borne by the tenants. All minor repairs are the responsibility of the tenants.
• You must read through the RWA by-laws of the society to avoid inconvenience / regrets later.
• Get a clear idea about the amenities near / around the property, to include public transport, neighborhood gentry, proximity to essential markets, schools, hospitals, etc.
• Check the safety aspects, especially for working / single women. You could get the crime rate in the area on the.
• Find out the age of the property. If possible, speak to the previous tenants or the neighbors.
• For Fully furnished apartments, normally a Lock-in period is required, as expenses are incurred on furnishing the house. Must check the deed in detail, including the rent increase percentage after expiry of contract. It must be mentioned in the Rental Agreement.
• Lease Deed/ Rental Agreement – A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by her to the property owner. This agreement is ideally drafted before the tenant occupies that place. Necessary inclusions of the rental agreement or the Lease Deed would be;
• Include start and end date of the tenancy.
• Monthly Rent amount payable and the date of payment- should generally be 10^th of the month, especially for salaried persons, to avoid cheque bounce.
• Security deposit amount to be paid. This is refundable & should be mentioned in the Deed.
• Service/maintenance charges. Is it included in the Rent or over & above the Rent.
• Responsibility of payment for repair and maintenance.
• Conditions of termination of Agreement.
• Notice period for vacating the house.
• Provisions of electricity, water and power facility & their payment procedure.

Property Owner / Landlord. Rented Property generates additional income by way of lease or rent. But if leased to a wrong person, could cause numerous problems. It requires substantial care and a lot of aspects have to be kept in mind while selecting the right paying guests (PG) or purchasers on rent (rent party):

• Must check financial capability and background of the prospective tenant (Second party). (Too good offers are dangerous. If the going rental is Rs X and you get offer of Rs 2X, reject it).
• Avoid renting out to small businesses as they may not be able to service the monthly payouts.
• Police verification of the prospective tenant is a must. This process helps in background check of the tenant. Not doing this is a punishable offence under Section 188 of the Indian Penal Code.
• Take the permanent address proof of the prospective tenant.
• Take the bank statement of the bank from which the payment cheques are made.
• Take her PAN No and check her CIBIL score to ascertain whether the prospect respects her commitments.
• Meet the tenants one on one, interact with them and get to know them. Don’t leave it on the broker – his sole interest is Brokerage.
• Services of Registered Brokers only must be used. If he charges GST (currently 18%), he should deposit the GST & give details of it to you.
• It is imperative for the landowner to ask the appointed broker to provide the agency’s registration number, valid signature and agency seal/ stamp on every page of the ‘Lease and License’ accord so that the broker can be held accountable for any legal disputes in future.
• If possible, rent your property to Tenants with families. If renting to Bachelors, obtain “Comfort Letter” from the Employer of the prospective tenant & do a call check with the Company’s HR / Admin.
• Lease Deed/ Rental Agreement. A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by him to the property owner. This agreement must be drafted before the tenant occupies the place. Necessary inclusions of the rental agreement or the Lease Deed would be;
• If the period of time is 12 months or less, registration is not compulsory. If more than 12 months, you are legally bound to register which costs a minuscule amount (nearly 1% of the total rent value, depending on the local laws), making it a very authentic legal document.
• Clear mention of Dates; to and from.
• Notice period required from both sides; owner and tenant.
• Rental value and the security deposit made by the tenant and any advance payments done.
• The annual rent is generally 2-3% of the capital value and differs according to the location and amenities provided.
• Date of monthly rent payment (usually around 10^th of each month, especially for salaried tenants).
• Annual increase in Rent Clause.
• Mode of payment; ECS mandate or Post dated cheques. AVOID CASH TRANSACTIONS.
• Clear mention of the size of the property and the number of rooms, bathrooms, kitchen, etc.

Wishing you a Happy Letting out / in. You may make lifelong friends with your Tenants / Landlord. Happy Safe homes is what is important.

Reference Link: https://colonelzbricklogic.blogspot.com/2015/10/taking-giving-property-on-rent-our.html

Planning to Make a House? Guidelines- Part I

In the era of Flat / Apartment living, not many go for own house construction. However, some of us still prefer Independent houses, if affordable. It is also a suitable option when friends / family want to have a common building as home.Go through this blog section if you are planning to make a house. read more

Rera As An Exclusive Legal Forum for Real Estate Complaints- Is it Viable?

It has become a recurring phenomenon of Builders & Infrastructure Companies defaulting for various reasons.

Subvention Scheme – What it is & Why Has It Been Banned?

With the Real Estate market hotting up in around 2003-4, unscrupulous builders in connivance with corrupt bankers came up with various lucrative schemes to entice the unsuspecting Common Man – The Home Buyers, into various loan schemes, wherein the Builder was given money from Financial Institutions on behalf of the buyers, with little Liability of the Builder.

What is Subvention Scheme?

A very good meaning scheme, this became one of the worst Financing means. Under the subvention scheme, a Tripartite Agreement is signed between The Home Buyer, Developer / Builder & the Financial Institution / Bank. The buyer books  the property by paying a fixed % of the cost, which varies from 5 to 20 percent, upfront. The rest amount is paid by the bank as loan to the buyer, and disbursed to the developer, generally, as a construction progress linked plan. . The Builder  is required to pay the EMIs till the Possession is given to the Buyer.

The problem was that the Builders often Bought out The Bank Staff & got much more funds released than what was justified as per the State of Construction.

How It Works / Worked?

The Buyer feels good that he doesn’t have to pay EMIs till possession. However, the Cunning Developers already priced it in & charged much higher rates for Flats sold on Subvention Scheme, thus, the Buyer indirectly paid for his EMIs.

Real Estate Developers need funds for development. In open Market, a Builder doesn’t get money easily and when he gets it, the Rate of Interest goes even as high as 24% per annum, whereas, the Bank loans to Home Buyers is at a cost of about 8-10% varying with Banks & periods. Hence, they started such schemes by often Buying Over the Banking community. It was still a Win-Win situation, BUT,  instead of utilizing the funds on the same project, they started expanding on to new projects in the hope of greater returns.

The Karma caught on and the Real Estate Market witnessed a Major Slump. Most projects got stalled. The Builders stopped paying EMIs. The Banks started hounding the Home Buyers.

The Ban 

The stockpile of Bad Loans and Failed Projects, finally forced The National Housing Bank (NHB) in July 2019 to convey to The Housing Finances companies to stop offering The Subvention Schemes. However, as expected, CREDAI, (Confederation of Real Estate Developers’ Associations of India Est – 1999 for policy advocacy in favour of housing and real estate. through developers) wants it to be withdrawn, as the mendacious, fraudulent acts of Developers was being hit.

We support the ban and expect that RERAs come up with better and more thought over means & methods to protect the Interest of the Common Man- the Home Buyers.

Cersai & Home Buyers

With the growth in Real Estate as an Industry, the number of Fly by night operators became unmanageable. The main sufferers became the Ignorant & Innocent common man- The Home Buyers. To prevent loaning with the same Asset Class as the Collateral, the Govt came up with one of the Internationally common practice of CERSAI.

 What Is CERSAI, and why is it Relevant to a Home Buyer?

Central Registry of Secularization Asset Reconstruction and Security Interest (CERSAI) is the Central Online Registry on the security interest. As brought out above, it aims at preventing frauds in lending against Equitable Mortgages, so that people don’t take multiple loans on the same asset from different banks.

Legal problems are bound to happen when the same property gets linked to two loans from two different banks at the same time. It was quite common earlier, as there was no way to check whether a property has been mortgaged. To obviate these these issues, CERSAI was introduced to the real estate industry.

What is the Purpose of CERSAI?

CESAI was introduced in March 2011 to make mortgage transactions more transparent. CERSAI, is a licensed company, wherein,51% of the equity is owned by the government, and the rest is owned equally by National Housing Bank and 10 other public sector banks.

CERSAI’s mandate was to maintain a Central Registry of  Equitable Mortgages. It contains data on the equitable mortgage taken on a property and the details of the Financial Institutions that extended the loan and the Details of the Borrower. CERSAI also allowed lenders to register transactions of secularization and asset reconstruction.The ledger of CERSAI  therefore, contains the details of the borrower and lender.

It is Mandatory for All Financial Institutes to register all Loaning Information in CERSAI. The registration should be completed in 30 days in order to attend to the security interests. In January 2016, the mandate was extended further to start registration of security interests created on movable and intangible assets such as accounts receivables, book debt, and hypothetical as well as to start registration of all other types of mortgages used in India.

Register in CERSAI

Residential Construction Services also are under CERSAI, where the mortgage is involved. One can register using their website. There is an “entity registration” form available on the site. A digital signature is the access to the CERSAI portal. Once the form is filled, it has to be downloaded and signed by the authorized personnel and sent to the prescribed CERSAI address along with the necessary documents. Once the process is completed, a tab on the progress online can be kept.

CERSAI Charges

“What is the CERSAI charges for home loan?”The registration fee keeps changing from time to time. If you want to take a loan from a bank, you will have to pay a charge that would include the upfront or processing charges. The CERSAI registration charge and processing fee was clubbed from 1st January 2014. The cost is the same across all lenders in the country. The loan amount will ultimately determine the registration fee.

Loans that are above 5.00 Lacks will have to pay Rs. 500 + GST. Loans that are below 5 Lacks will have to pay Rs. 250 + service tax. If there is a delay in making updates regarding the transactions with CERSAI, it could result in a penalty.

Concluding Thoughts 

CERSAI and Credit Information Bureau India Limited (CIBIL) have joined hands to make the borrowing and lending process more streamlined. Lenders will be able to make lending decisions better because of this tie-up. It benefits both parties, ie the Borrower & Lender.