All posts by yeshplots

Mysore – Bangalore – Chennai Bullet Train

Bangalore, Buyers Guide, Mysore,

Quick Facts –

  • Distance : 435 KM High Speed Rail Corridor
  • Route : Mysore – Bangalore – Chennai
  • Land Acquisition : National Highway Authority Of India (NHAI) will initiate land acquisition in consultation with Indian Railways
  • Travel time : Mysore to Chennai in 2 Hours 25 minutes as against the 7 – 10 Hours currently. Bangalore – Mysore in 45 Minutes
  • Maximum Speed – 300 to 320 KMPH
  • Sanction / Decision taken by : Group of Infrastructure Ministers led by Union Minister for Road Transport & Highways Sri. Nitin Gadkari.
  • The project is one among the 7 new high speed bullet train routes finalised
  • The seven high-speed rail corridors are :
  1. Delhi to Varanasi via Noida, Agra and Lucknow
  2. Varanasi to Howrah via Patna
  3. Delhi to Ahmedabad via Jaipur and Udaipur
  4. Delhi to Amritsar via Chandigarh, Ludhiana and Jalandhar
  5. Mumbai to Nagpur via Nasik
  6. Mumbai to Hyderabad via Pune
  7. Chennai to Mysore via Bengaluru.
  • The rail corridor will align with Green Field Expressway (Road) projects to integrate the Rail network in the country

It is pertinent to note that The National High Speed Rail Corporation of India (NHSRCL) had called bids for executing stage-1 preliminary route development (alignment and aerial design) for The Mysore-Chennai High-Speed Rail corridor in February 2020

The project, once implemented, along with a fully functional Airport, will make Mysore easily accessible from different parts of India & will fillip the overall growth of Mysore City into an Industrial, Economic & Tourist Hub.

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Landmark Change to The Karnataka Land Reforms Act

Bangalore, Buyers Guide, Dharwad, Hubli, Karnataka Land Reforms Act, Mysore, , , , , ,

In a significant change to the Karnataka Land Reforms Act, 1961, Governor Vajubhai R. Vala on 13/07/2020 signed the Karnataka Land Reforms (Amendment) Act, 2020, a month after the Karnataka Cabinet passed an ordinance making amendments to the Karnataka Land Reforms Act, 1961. Following the Governor’s consent, the State Government has notified the Amended Act in the Gazette notification.

Accordingly, the amendments –

  • Allow Non-agriculturist to purchase agricultural Land (Farm land) in Karnataka. However, restrictions on purchase of irrigated land by non-agriculturist remain
  • Removed the ceiling on income from non agricultural sources to buy agricultural land
  • Also increased the ceiling on number of units of land a person/family can hold

Accordingly, Sections 63(A), 79(A), 79(B), 79(C) in the existing Karnataka Land Reforms Act, 1961, were repealed to enable these changes.

With these changes –

  • Farmers are expected to get better prices for their land
  • Organised farming will get a fillip
  • Technology adoption & modernisation of agricultural practises is expected to increase

Reduce corruption & promote industries alike

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Mysore Madikeri Economic Corridor Expressway Project

Bangalore, Buyers Guide, Mysore

Quick Facts

  • Length of the Expressway – 115 Km – 4 lane, 150 ft road with median
  • Estimated Cost of the Project – Rs. 6000 Crore
  • Project implemented by – National Highway Authority of India (NHAI)
  • Expressway will connect – The cultural capital of Karnataka (Mysuru) & Capital of Kodagu (Madikeri)
  • Road Alignment – Paschimavahini in Srirangapatna to Kushalnagar with bypassing Mysuru, Bilikere & Hunsur
  • Project status – Land required for the expressway has been notified and land acquisition is ongoing (as of February 2020)
  • Project timeline – The project is expected to the complete by 2024
  • Will the existing NH 275 (Mysore – Yelwala – Bilikere – Hunsur – Madikeri) also remain in use – Yes. The new expressway will run parallel to the existing NH 275
  • The project is expected to reduce the travel time between Bangalore to Madikeri to 3 Hours

For updates on this project visit – https://bit.ly/3i2MY1Z

Mysore Madikeri Economic Corridor Expressway Alignment

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What is REAL ESTATE?

Bangalore, Dharwad, Hubli, Mysore

Real estate is –

  • Is India’s 5000 year old first choice of  investment
  • Parents & Forefathers blessings
  • It is Senior citizen’s only source of income & wealth 
  • A Widows support
  • A Father’s pride
  • A Husband’s promise to his wife for life long shelter & happiness
  • A Brothers protection to his Sister
  • It’s a Child’s nest & dream
  • A Soldiers support system back home
  • its a roof for covid patients
  • its education
  • It’s the only ASSET from which banks can recover money from bankrupt companies
  • it’s prestige upon which a father gives his daughter’s hand to a stranger

 

Real Estate is REAL ASSET, and invested wisely, yields highest ROI compared to any other asset class.

Cheers!

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Industry can now buy land directly from farmers in Karnataka

Bangalore, Buyers Guide, Karnataka Land Reforms Act

Karnataka Land Reforms Act 1961 Amended: Industry can now buy land directly from Karnataka farmers.

  • Karnataka Implements changes to Section 109 of land Reforms Act 1961, to allow industries to buy land directly from Farmers
  • The amendments come into force from 20.11.2019
  • Units will still need nod from States Revenue department
  • Applications to be cleared within 30 days by the concerned Deputy Commissioner, failing which it will be deemed approval

This was been one of our long standing demands. Read here

A major reform to increase competitiveness and to boost industrial development in the state of Karnataka has been enacted paving the way for easy access of land to Industries. Neighbouring states of Tamil Nadu, Telangana & Andhra Pradesh have been allowing this for a while. A 3 year process earlier, would now take only about 30 days – there by removing many impediments and position Karnataka as an alternative sourcing hub to companies who are looking to move out of China post COVID 19

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Initiatives to be taken by Karnataka State Government to revive Real Estate Industry

Bangalore, Dharwad, Hubli, Mysore

7th May 2020, Bangalore

As we move from Lockdown 2.0 to INDIA 2.0, we all look forward to the State government to dole out incentives & freebies to kick-start the Economy. But post COVID-19 we all know that the government’s coffers are all empty and any recommendation that will help increase the revenue of the government and at the same time, revive the industry will be more than welcome!

Real estate is driven by sentiment and there is much that needs to be done to push the demand side of it. We have been hearing news about countries like Japan, USA & South Korea wanting to move their manufacturing units from China to countries like India, Philippinnes etc. Land twice as much as Luxembourg is made available by some of the Indian states but Karnataka does not figure much in this list. In contrast neighbouring states like Andhra Pradesh, Telangana & Tamil Nadu have constituted expert committees with representatives from Korea & Japan to attract these industries

For any industry, the primary requirement is LAND.

A case in point is that of POSCO. POSCO, a South Korean conglomerate, after signing an MOU with the state government, was to set up an integrated steel plant in North Karnataka and scouted for land in Tier 2 cities of Bellary, koppal & Bijapur. For over many years the required land could not be acquired and eventually the project was stalled. Similar was the fate of AccelorMittal who were looking for land in Bellary for setting up a steel plant. Its been over 10 years & even today the projects have not taken off as the land was not made available by the state government.

If Land can be allotted by the state government, say in 30 days or 60 days and a single window clearance mechanism is established, including environmental clearances, a lot of industries will come to Karnataka. Karnataka has the required manpower, skilled labour, raw materials etc. Once these industries are setup, it will help develop the Tier 2 & Tier 3 cities & inturn increase employment, incomes & the entire vicinity of these factories will improve.

This is a major opportunity that the state of Karnataka should capitalise on.

We get a sense that our government is listening –

  • On returning from World Economic Forums our CM has proposed changes to the age old Karnataka Land reforms Act in sections 79A, 79B, 80 & 109 thereby making land easily accessible for industries.
  • Land conversions & Building plan approvals have gone online
  • Online registrations is also in the making for the first time in Karnataka

Some of the other changes that we recommend which will increase revenues for the government & also kick-start the Real Estate Industry are –

  • Not just tweaking it, but abolition of Section 79A & 79B and amending Section 80 & Section 109 of Karnataka Land reforms Act, thereby paving the way for investments in agricultural lands by individual & industries alike.
  • Extension of validity of all approvals already obtained by a period of 9 – 12 months to accommodate the delay caused by CORONA
  • Reduce stamp duty to 3% for a limited period of 6 months to induce the fence sitters to invest in Real Estate. A case in point if the state of Maharashtra which has already announced reduction in stamp duty by 1%
  • Revise guidance value of properties as they are at present exorbitant
  • Definition of affordable housing to be raised from 20 Lakhs to 45 Lakhs for reduced Stamp duty benefits as announced in the state budget
  • Property tax waiver for 1 year
  • On the approval side –
    • Issue of Commencement Certificate (CC) & Completion Report (CR) to be made online
    • Ease of doing business initiatives
    • Single window approval system without much of manual interface
    • Payment of statutory fee / Dues / license fee to be linked to stage of construction of Real estate project
    • Release orders – while the intent of the provision is well received, it puts enormous pressure on the developer to complete all civil works and obtain all NOC’s from a plethora of departments & only then be able to register plots. This eventually increases the selling price of the end product. Instead, relaxation from 100% release on complete development to the hitherto system of 40:30:30 rule or equivalent is recommended.

These measures, along with the steps taken by the Reserve Bank of India (RBI) to put of money in the hands of the consumers & also paving the way for reduction in interest rates on housing loans will have a multiplier effect, boost demand and revive the Real Estate industry.

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REAL ESTATE Scenario post COVID

Buyers Guide

Post COVID 19 is a new normal & the surge of migrant workers & all citizens in general, wanting to return HOME during this lockdown is a testimonial of the fact that a HOME is close to everyones heart and those in Housing business will always remain in business, provided they are in sync with the realities of the times. Today the buzz word is AFFORDABILITY and developers offering a HOME in the affordable segment will always find takers.

This brings us to the next question – Will prices correct post COVID 19?

Every other year in our country, we have a new regulation being passed which has a direct impact on REAL ESTATE Industry. A popular study shows that builders & land developers have already absorved an additional cost of upto 20% on account of GST, RERA, compliances under various other statutes, etc where as the selling price has remained stagnant. This effectively means that developers are already subsuming the 20% cost surge, without being able to pass it on to the consumers! Prices have bottomed out completely and this is the best time for anyone looking to buy a home or a plot.

Will Real estate in India survive as an investment option?

The following points convince us beyond doubt that the Indian real estate story is alive & kicking.

  • The whole world has looked upon India with appreciation for the manner in which it has tackled COVID 19 and most of the NRIs want to invest back in this safe country which values people’s lives more that anyother thing.
  • With the USD – INR exchange rate at an all time high and with reverse migration happening, homes in India have become much cheaper for NRIs to own
  • Mutual Funds & Stock markets have fared adversely during these times with investors loosing over 50-70% of their investments. Historically, Real Estate held for 5 – 10 years has led to tremendous appreciation in value.
  • COVID 19 has made people realise the value of owning a HOME. It is the best place to stay at during an extended lockdown. For those who do not own a home, they aspire to buy one and those who already have one, are looking to upgrade or have a second home with health & other amenities as a safe bet
  • Millennial’s who hitherto were going ‘asset lite’ and preferred ‘Co-Living, Co-Working’ spaces will see a gradual shift to owning a Home, be it small or big. It gives a great sense of security during trying times.
  • With Work From Home catching in, a HOME is of prime importance
  • With the recent measures announced by the RBI, interest rates on housing loans will come down drastically. This will an added incentive for homebuyers

In summary Home is the only asset class which one can occupy, it provides a great Sense of security, a feel Good Factor and Long term capital appreciation!

So, once you have zeroed in on a project with a credible builder who complies with RERA and other local regulations, don’t have a second thought, just make your purchases as prices are bound to tick upwards.

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Role of Channel partners post RERA

Buyers Guide, Hubli, Mysore, Real Estate Channel partners

Channel partners & Real estate agents have always been an integral part of the realty sector. With the unparallel growth of Indian Real Estate, developers have been rapidly engaging with Channel Partners. Earlier, Kirana shop owners, small-time brokers and the likes had an unobstructed participation in the real estate marketplace, and many of them grew on unprofessional practises & under-informing their customers.

With introduction of Real Estate Regulation & Management Act (RERA), prospective buyers now have more faith in buying the property through channel partners as they have to get themselves registered with the respective state RERA authorities under the RERA Agent category. Organised Channel partners as advisors, act as a bridge between Real Estate companies and property buyers rather than mere brokers. In Tier-2 cities like Mysore & Hubli, Channel partners, are witnessing immense growth opportunities as they have better understanding of the local requirements & trends.

Interestingly, under the RERA Act, upto 5% of the total project cost can be levied to a registered Agent (channel partners) if wrong information is shared with prospective home buyers. This has brought about transparency in the sector and has improved buyer confidence. This will inturn boost the sector and strengthen the economy further.

Channel partners are looked up as professionals who are adept with current trends & have indepth knowledge of the local markets, customer demands and the builder profiles, there by offering quality service and consultations. There role is way beyond just referring clients, to arranging for property purchase loans, property registration & finally post sales documentation.

In the current scenario, the Role of Channel partners is more that it was ever before!

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Property Purchase Checklist

Buyers Guide

Buying a piece of land or plot is a dream for everyone as land is considered to be a safe and most appreciating asset class. The purpose could be for occupation, to secure a family’s future, children’s education, marriage or just an investment. Unlike countries like Australia or USA, where buying a property is as easy as buying any other product or commodity, it is quite cumbersome and a time consuming process in India. As India does not have a UNIFIED CIVIL CODE, land laws are governed by different statutes. There are no standard checklists to verify the property documents as land in India is a state subject and local laws are also to be studied in addition to the centrally governed acts.

Due Diligence checklist before buying a plot in the state of Karnataka :

▪ Mother Deeds
▪ Chain of title flow
▪ RTC and revenue documents
▪ Is the property an ancestral property or self acquired?
▪ Family tree of the sellers issued by the local Village Accountant to be verified
▪ Absolute sale deed & Khata in the present sellers name
▪ Latest tax paid receipt
▪ If there are any encumbrances / loan on the property and how the same will be cleared?
▪ If it is an ancestral property, has a partition deed, release deed etc been executed between the family members?
▪ As per Supreme Court judgement, all children, be it a son or a daughter, have an equal share in any ancestral property. Hence, are all coparceners a party to the sale deed?
▪ Verification of original documents
▪ Conversion order for change of land use from agricultural to residential
▪ Approved layout plan
▪ Unique Property ID / E-Khata in the name of the seller. In the state of Karnataka, sale of revenue sites (B Khata / a piece of land that does not have all requisite approvals) are banned. Hence ensure that the proposed site is not a “B” Khata plot.
▪ It is advisable to check if loans are available for the land / plot purchase. That way risk can be mitigated.
▪ If the plot is part of a plotted development project, check for registration with the Real Estate Regulation & Development Act and respective state rules and the compliance there of

 

It is also advised to go with a reputed land developer with a good track record to entrust your hard earned money. A second opinion with an expert will also help.

Be Diligent, invest safe & build wealth!

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HINDU DAUGHTERS PROPERTY RIGHTS

Uncategorized

All  hindu daughters have equal right in the property  of her father now according to the amendment in Hindu Succession Act 1956, passed in September 2005.  It states that a daughter can be the Karta of an HUF (Hindu Undivided Family).  The Hindu Succession Act is applicable to Hindus, Jains, Sikhs and Buddhists.  It applies even to those girls who are born prior to this date.

With this amendment,

  • The daughter gets all the rights attached with coparcenary, including the right to ask for partition of the property and to become a Karta of the HUF.
  • Only the daughters who are born in the family, will get the coparcenary rights. Other female members, who come into the family by virtue of marriage, are still treated as members only. Thus, they are not entitled to ask for the partition but are entitled for maintenance and shares as and when partition takes place.
  • After marriage, a daughter will cease to be a member of her parental HUF, but will continue to be a coparcener. Thus, she is entitled to ask for partition of the HUF property, as well as to become the Karta of the HUF, in case she happens to be eldest coparcener of her father’s HUF.
  • Even in case of a married daughter who has died, her children shall be entitled to the shares that she would have received, if she was alive on the date of the partition. In case none of her children are alive on the day of partition, the grandchildren will be entitled to the shares that the daughter would have received on partition.
  • The daughter cannot gift her share in the HUF property while she is alive but she is fully capable of giving away her share in the HUF property by way of a will. If a will is not prepared, on her death, her share in the joint property shall not devolve on other members of the HUF but will pass on to her legal heirs.

 

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