HOME buyers have reasons to cheer. The new direct taxes code (DTC) is expected to bolster the demand for homes for both residential and investment purposes as it has proposed to retain the existing tax exemption norms. Unlike the original discussion paper on DTC, the revised paper has proposed to continue with the existing system of deducting interest payment up to Rs 1.5 lakh against home loan from the total taxable income.
Besides the discussion paper has also proposed to go ahead with tax deduction calculated on the presumptive rent which is currently calculated at 6% of the total value of the property.
DTC, which is likely to be introduced next fiscal had originally proposed to withdraw these exemptions.
Had the government withdrawn the proposal, there would have been an adverse impact on the industry, said Anil Kumar, CEO & Deputy MD at Ansal API, a Delhi-based real estate firm. “One of the main resons why end-users buy houses is to save tax,” he said.
Most end-users, especially those in the middle income group, avail loans to buy houses on which they get a tax benefit. As per the existing norm, home buyers are allowed to deduct interest payment of up to Rs 1.5 lakh from total taxable income.
Since home loan is a long-term contract, any such change adversely impacts the decision of borrowers, said an official of a home finance company.
“The move is especially good for people falling in the middle income group as they often buy houses for investment purposes,” said Allen Pereira, CMD at Bank of Maharashtra.
The government’s move has come as relief to home buyers at a time when the sector started showing early the sector started showing early signs of recovery. Real estate was one of the biggest casualties of the global slowdown when buyers turned away from the market. The situation has now improved with buyers gradually returning to the market.
The government in 2009 had argued the taxpayers would not be affected if benefit on interest payment against home loan was withdrawn as tax slab was also proposed to be changed comprehensively and net of tax income would increase would increase significantly. However, the withdrawal attracted a lot of criticism following which the government decided to go ahead with the existing norms.
Courtesy by BS dtd: June 17, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Deal Wont Include Delhi Property; Will Help DLF Shed Part Of Rs 14,000 – Cr Debt Pile
MALAYSIAN sovereign wealth fund Khazanah Nasional Berhad is close to buying a controlling stake in Aman Resorts from debt – laden DLF for $300-350 million, people familiar with the matter said.
A person privy to the details of the negotiations said the deal may not include Aman’s New Delhi property. If conducted, the deal will help India’s largest real estate company cut its Rs 14,000-crore debt pile.
DLF is being advised by Goldman Sachs while JPMorgan is advising Khazanah.
“As per company policy, we do not comment on market speculation,” a spokesperson for DLF said in response to queries form ET NOW. Khazanah could not be reached for comment.
DLF bought its 97% stake in Aman in 2007 for $400 million. Aman’s founder Adrian Zecha owns the remaining 3% stake.
Founded in 1988, Aman has, over the years, built up a loyal base of wealthy patrons, commonly known as ‘Amanjunkies’. Aman properties are characterized by a small number of rooms, minimalist architecture and a high staff-to-guest ratio. The group’s hotels are typically devoid of reception desks or lobbies and are aimed at conveying a feeling of a private residence to guest.
Aman operaters 23 luxury hotels across Thailand, Bhutan, Combodia, Loas, Montenegro, Morocco, Phillipines, Sri Lanka, the Turks and Caicos Islands, and the US.
Khazanah, which is currently locked in a battle with India’s Fortis Healthcare for control of Singapore-based Parkway Holdings, manages a portfolio of companies worth over $20 billion, according to details available on its website. They include Telekom Malaysia, Axiata and CIMB Group, Malyasia’s second-largest financial services company. Khazanah also owns a stake in India’s Apollo Hospitals.
A banker close to Khazanah said the fund has a mandate to make investments in new sectors and diversify its investment portfolio to include companies outside Malaysia.
It is learnt that DLF will use the proceeds from the sale of Aman Resorts to reduce the debt currently stands at Rs 14,821 crore following the consolidation of liabilities of DLF Assets Limited.
DLF confirmed May that it is looking to sell Aman Resorts and cut its debt by Rs 5,000 crore through the sale of non-core assets and refunds from various government authorities. The company’s management had also told analysts in a conference fall that it aims to become a zero-debt company by 2014.
Courtesy by: The Economic Times Dtd: June 17, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Deal Wont Include Delhi Property; Will Help DLF Shed Part Of Rs 14,000 – Cr Debt Pile
MALAYSIAN sovereign wealth fund Khazanah Nasional Berhad is close to buying a controlling stake in Aman Resorts from debt – laden DLF for $300-350 million, people familiar with the matter said.
A person privy to the details of the negotiations said the deal may not include Aman’s New Delhi property. If conducted, the deal will help India’s largest real estate company cut its Rs 14,000-crore debt pile.
DLF is being advised by Goldman Sachs while JPMorgan is advising Khazanah.
“As per company policy, we do not comment on market speculation,” a spokesperson for DLF said in response to queries form ET NOW. Khazanah could not be reached for comment.
DLF bought its 97% stake in Aman in 2007 for $400 million. Aman’s founder Adrian Zecha owns the remaining 3% stake.
Founded in 1988, Aman has, over the years, built up a loyal base of wealthy patrons, commonly known as ‘Amanjunkies’. Aman properties are characterized by a small number of rooms, minimalist architecture and a high staff-to-guest ratio. The group’s hotels are typically devoid of reception desks or lobbies and are aimed at conveying a feeling of a private residence to guest.
Aman operaters 23 luxury hotels across Thailand, Bhutan, Combodia, Loas, Montenegro, Morocco, Phillipines, Sri Lanka, the Turks and Caicos Islands, and the US.
Khazanah, which is currently locked in a battle with India’s Fortis Healthcare for control of Singapore-based Parkway Holdings, manages a portfolio of companies worth over $20 billion, according to details available on its website. They include Telekom Malaysia, Axiata and CIMB Group, Malyasia’s second-largest financial services company. Khazanah also owns a stake in India’s Apollo Hospitals.
A banker close to Khazanah said the fund has a mandate to make investments in new sectors and diversify its investment portfolio to include companies outside Malaysia.
It is learnt that DLF will use the proceeds from the sale of Aman Resorts to reduce the debt currently stands at Rs 14,821 crore following the consolidation of liabilities of DLF Assets Limited.
DLF confirmed May that it is looking to sell Aman Resorts and cut its debt by Rs 5,000 crore through the sale of non-core assets and refunds from various government authorities. The company’s management had also told analysts in a conference fall that it aims to become a zero-debt company by 2014.
Courtesy by: The Economic Times Dtd: June 17, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
HOME buyers have reasons to cheer. The new direct taxes code (DTC) is expected to bolster the demand for homes for both residential and investment purposes as it has proposed to retain the existing tax exemption norms. Unlike the original discussion paper on DTC, the revised paper has proposed to continue with the existing system of deducting interest payment up to Rs 1.5 lakh against home loan from the total taxable income.
Besides the discussion paper has also proposed to go ahead with tax deduction calculated on the presumptive rent which is currently calculated at 6% of the total value of the property.
DTC, which is likely to be introduced next fiscal had originally proposed to withdraw these exemptions.
Had the government withdrawn the proposal, there would have been an adverse impact on the industry, said Anil Kumar, CEO & Deputy MD at Ansal API, a Delhi-based real estate firm. “One of the main resons why end-users buy houses is to save tax,” he said.
Most end-users, especially those in the middle income group, avail loans to buy houses on which they get a tax benefit. As per the existing norm, home buyers are allowed to deduct interest payment of up to Rs 1.5 lakh from total taxable income.
Since home loan is a long-term contract, any such change adversely impacts the decision of borrowers, said an official of a home finance company.
“The move is especially good for people falling in the middle income group as they often buy houses for investment purposes,” said Allen Pereira, CMD at Bank of Maharashtra.
The government’s move has come as relief to home buyers at a time when the sector started showing early the sector started showing early signs of recovery. Real estate was one of the biggest casualties of the global slowdown when buyers turned away from the market. The situation has now improved with buyers gradually returning to the market.
The government in 2009 had argued the taxpayers would not be affected if benefit on interest payment against home loan was withdrawn as tax slab was also proposed to be changed comprehensively and net of tax income would increase would increase significantly. However, the withdrawal attracted a lot of criticism following which the government decided to go ahead with the existing norms.
Courtesy by BS dtd: June 17, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
In this case, you can bank on a fund manager to do the needful for you. A lot of real estate funds have been launched in India by reputed names likes HDFC, Birla, IL&FS, Milestone, Kotak and others. Based on the theme that you are comfortable with, like residential or commercial or two or three tier, you can invest accordingly. The important thing is such funds are transparent in nature and you can expect a quarterly statement on the status of your investment in the fund. Also, the entire sum is not taken at one go; the fund manager raises money over a time frame of three years.
Courtesy ET Dtd: 16/06/2010
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Unlike buying land or residential property, which are more long term in nature, realty stocks are fairly more liquid. Many a time, real estate stocks will not necessarily move with realty prices. Other factors like interest rates and overall market sentiment also impact the these stock prices. “In the short term, realty stocks cannot be the best representatives of realty sector, but in the long term, there may be a correlation between the two,” said Apurva Shah, head (research), Prabhudas Liladhar. Before buying realty stocks, one should look at factors like management quality, growth plans, the region in which the real estate company operates and the valuations.
One should go ahead only when one is comfortable with all the factors.
Courtesy ET Dtd: 16/06/2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
The markets took a breather for a couple of years, though the corporate growth was on track. BRIC report by Goldman Sachs broke the silence in Indian equity markets. From 2003 onwards, Indian stock markets primarily moved around infrastructure theme. Global investors on the back of low interest rates got into the carry trades. Borrowing in a weak currency such as the yen with very low interest rates and investing in a country such as India with a strong currency with potential to earn superior return turned out to be the most important strategy for foreign money.
Within the theme, capital goods were one of the most preferred destinations for many. The companies saw phenomenal growth in both business performance and stock prices. Rally till 2007, along with bull market in equities, encompassed many other sectors such as financials and real estate. Real estate stocks could fetch dizzy valuations on Indian bourses. Analysts found solace in businesses with land bank stories. There are instances where stocks of companies with almost no operating businesses saw multifold price rise on the back of land banks.
Along with real estate, energy played a key role. As crude neared $150 mark per barrel, the power starving economy searched for all power generation stories. Power turned out to be one of the sought-after sectors. Reliance Power hit new records in terms of valuations.
Courtesy ET Dtd: 14/06/2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
The Sikka Group recently announced its upcoming residential project “Sikka Karmic Greens“ at Sector- 78, Noida.
The project offers a choice of one, two and three bedroom apartments, ranging from 560 sq ft to 1440 sq ft area in size.
Prices start at Rs 15 lakh.
Courtesy Ht estate Dtd: 12/06/2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
The Sikka Group recently announced its upcoming residential project “Sikka Karmic Greens“ at Sector- 78, Noida.
The project offers a choice of one, two and three bedroom apartments, ranging from 560 sq ft to 1440 sq ft area in size.
Prices start at Rs 15 lakh.
Courtesy Ht estate Dtd: 12/06/2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
The markets took a breather for a couple of years, though the corporate growth was on track. BRIC report by Goldman Sachs broke the silence in Indian equity markets. From 2003 onwards, Indian stock markets primarily moved around infrastructure theme. Global investors on the back of low interest rates got into the carry trades. Borrowing in a weak currency such as the yen with very low interest rates and investing in a country such as India with a strong currency with potential to earn superior return turned out to be the most important strategy for foreign money.
Within the theme, capital goods were one of the most preferred destinations for many. The companies saw phenomenal growth in both business performance and stock prices. Rally till 2007, along with bull market in equities, encompassed many other sectors such as financials and real estate. Real estate stocks could fetch dizzy valuations on Indian bourses. Analysts found solace in businesses with land bank stories. There are instances where stocks of companies with almost no operating businesses saw multifold price rise on the back of land banks.
Along with real estate, energy played a key role. As crude neared $150 mark per barrel, the power starving economy searched for all power generation stories. Power turned out to be one of the sought-after sectors. Reliance Power hit new records in terms of valuations.
Courtesy ET Dtd: 14/06/2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
