DDA Housing Scheme 2010 Application Money Loan: Banks War on Interest Rates

The recently announced DDA Housing Scheme has initiated a full-fledged war among banks to woo the buyers for taking the application money loan. The Banks have slashed down their interest rates as compared to last year and also offering waiver on the processing fee. As the banks reveal low interest rates when compared to their rival banks this will benefit the end users. i.e. the purchasers to avail the best Loan.

 

SBI announced a reduction in its total interest package on December 01, 2010 from Rs.5100 to Rs.4600 for availing Rs.1, 50,000 Application money while people wishing to borrow an amount of Rs.50,000 for Application money will have to pay an interest of Rs.1600 only. Many other banks are preparing to reduce their interest rates up to base rate. Banks like Axis, HDFC and ICICI have not yet let their cat out of the bag. Axis Bank is the prime player as it pioneered the Application Money loan in the residential sector.

It is certain that all the banks interested in providing 100% finance for DDA Housing Scheme 2010 will disclose their interest rates and applicable charges by 5th December, 2010. Though the Public Sector Banks have taken a lead in announcing their schemes of lower interest rates but getting a hassle free loan is equally important for the purchasers. Many prospective borrowers are of the view that government banks usually fail to fulfill their promise of a hassle-free loan when compared to private banks. Banks are expecting the sale of application forms to cross the last year’s mark of 5.67 Lakh applicants. As the flats offered are 50% cheaper than the existing market rates, there is a strong probability of higher number of people turning up for the application money loans.

The banks are charging lumpsum interest & processing charges for the application money loan. Some of the banks are also demanding blank cheques for additional interest considering the delay in the draw. Generally, banks reap an interest spread of 2-2.5% over their deposit interest rate, but if they finance the DDA Housing Scheme they get an interest spread of 6%. Application money loan is the safest loan for the bank as the whole amount is deposited as application money. DDA is reaping rich profit from earnest money by investing the sum in fixed or flexy deposits. Central Bank of India and Bank of India have announced an interest rate of 8.5% on Rs.1 Lac 50 thousand earnest money finance amounting to total interest of Rs.4521 and Rs.4782 respectively. Similarly, for Rs.50, 000 earnest money finance Central Bank of India and Bank of India have announced the total interest as Rs.4521 and Rs.4782 respectively.

Before choosing any bank to apply for the DDA Housing Scheme 2010, the applicants must do a thorough survey and then take a wise decision that will prove useful in the long run.
 

Read More

DDA Housing Scheme 2010 - Details of Flats Announced

Details of Flats announced in DDA Housing Scheme 2010 as displayed in the online brochure issued by DDA:

Locality	Locality Code	No. of Flats	Approx. Area Sq.Mts.	Tentative Cost (Lacs)
Vasant Kunj, D-6 (newly constructed furnished flats with Lifts)
1 Bedroom	11	1285	54-58	34-37
2 Bedroom	12	548	81-152	51-96
3 Bedroom	13	876	173-176	110-112
Multi-storied 3 Bedroom Flats
Mukherjee Nagar (Newly constructed housing pocket)	21	336	127-178	58-81
Motia Khan (Newly constructed housing pocket)	22	144	130-131	84-85
Jasola Sec-9A (Newly constructed housing pocket)	23	320	131-132	74-75
Dwarka Sec.18-B (Newly constructed housing pocket)	24	947	150-176	71-83
Rohini Sec-29 (Newly constructed housing pocket)	25	560	160-175	61-67
Pitampura	26	4	127-150	54-63
2 Bedroom Flats
Kalyan Vihar (Newly constructed housing pocket)	31	24	80-95	30-36
Vasant Kunj (HIG)	32	5	71-87	32-39
Rohini, Jahangirpuri, Pitampura	33	18	60-105	21-37
Sarai Khalil	34	2	78	36-36
Narela	35	2	70-110	26-41
1 Bedroom Flats
Vasant Kunj, Dwarka, Loknayak Puram	41	323	42-61	13-19
Zafrabad	42	2	42-61	13-18
Rohini	43	57	42-61	13-18
Narela	44	213	42-61	10-14
Dwarka Sec-14 (advanced stage of completion)	45	760	41-42	14-14
Rohini Sec.18 Blk F (Newly constructed housing pocket)	46	300	46-49	15-16
Rohini Sec.28, Sec.29 (Newly constructed housing pocket)	47	4260	42-49	11-13
Jasola, 10-B, Pkt.12, Molar Band (Newly constructed housing pocket)	48	1160	39-58	13-19
Dwarka Sec.3, Pkt. B&C; Sec.26, Pkt.B (Newly constructed housing pocket)	49	1220	28-29	9-10
Kondli Gharoli (Newly constructed housing pocket)	50	1830	31-32	10-10
Expandable Type-A
Narela	51	207	20-37	6-11
Dwarka, Bindapur	52	17	20-37	10-19
Expandable Type-B
Narela	61	98	50-80	18-28
Dwarka, Bindapur	62	56	50-80	30-48
Janta/ 1 Room Tenements Flats
Jasola, Nasirpur, Dwarka	71	533	20-25	5-6
Kondli Gharoli, Chilla, Trilokpuri, Shivaji Enclave	72	94	20-25	4-5
Narela	73	36	20-25	3-4

Note: Additional Provisional Freehold Charges Apply

Read More

Commercial activities in Residential Areas: Mixed Use of Land (Draft Master Plan Delhi-2021)

As per the draft of Master Plan Delhi-2021 (Draft MPD 2021) available on the government portal of Delhi Development Authority, the below is proposed for the mixed use of land in Delhi:  Mixed Use of Land Mixed use of land refers to the non-residential activities in the residential regions. The commercial or non-residential activities carried out in the residential areas of Delhi have a significant impact on the socio-economic societal needs as well as environment. The presence of such commercial activities in the residential areas benefits a large section of residents and also reduces the traffic which can increase in the absence of such facilities with residents having to travel far to meet their basic daily needs. However, unless the commercial activities are regulated they could adversely affect the residential area by adding to the pollution, congestion and public nuisance. Thus the Master Plan of Delhi 2021 has ensured to include sufficient measures regarding mixed use of land in Delhi. As per the draft of Master Plan of Delhi, 2021 the following have been recommended for mixed use of land: Only selective commercial/ non-residential activity should be allowed in the residential premises of Delhi considering the needs of the residents, environmental concerns, secure and painless traffic movement and ample of parking space. For new residential developments being planned, both the residential and non-residential activities should be considered right from the beginning while preparing the lay out. The location of commercial centers with sufficient parking space, traffic movement and services offered should be taken into account. Specific norms should be drawn up for parking as well as running any commercial activity floor wise. Any notified provision made in the last Master Plan shall continue to be in force under the newly approved plan if it falls under the overall framework of the new plan. The mixed use of land may be allowed on road/ street-facing residential plots. The minimum width of the road/ street should not be less than 18 metres ROW. Awareness should be spread about such streets giving them far-and-wide publicity. Lutyen’s Delhi and Civil Lines; the posh areas of Delhi having Bungalows, institutional housing or staff housing, government housing and heritage areas of national importance would not fall under the ambit of Mixed use policy. Any commercial or non-residential activity involving any type of inflammable, obnoxious, hazardous, non-compatible substance or pollutant or any such harmful process shall not be allowed and termed as non-permissible use. Permissible use of land includes the retail shops, convenience stores, household industries in accordance to the industrial section and any other specific use or professional activity not considered harmful for the society. Mixed use of land in residential areas does not allow the following activities: I. In Retail shops:  Building/ Construction materials like timber, marble, iron, steel, sand and timber products. Inflammable materials like coal, fire wood or any other bulky material causing fire hazards. II. In Repair Shops: Repair of Cycle-rickshaws Repairs of Automobiles or automobile workshops  Tyre resorting and retreating Charging batteries  III. Godowns, warehouses and storage  IV. Liquor Shop  V.  Junk Shop  VI. Printing/ Varnishing/ Dying VIII.Any activity notified from time-to-time                  Permissible retail shops in notified streets under mixed use of land except the ones mentioned above are subject to the below: Mixed-use retail shops are permitted only on the ground floor not extending beyond the ground-floor area. The shopkeeper should unconditionally surrender the front setback and should not enclose it in a boundary. It should be used only for parking purpose. There should be a parking space of 2 ECS (Equivalent Car Space) per 100 square metres within the premises. The cost involved in developing parking space or common parking in commercial areas @ 2 ECS/ 100 sq.mt. shall be paid by the recipient. The activity areas or the premises should be entered from a service lane and direct entry from the main road should not be encouraged. Permission for mixed use of land has to be taken from the concerned local authority and subject to the payment for conversion charges. The planned nature of the residential area should not be disintegrated and no encroachments on the roads or streets shall be allowed.

Read More

Chennai Residential Apartments and Flats

Chennai has been witnessing a real estate boom just like its counterpart metro cities. Reasons are clear, the ever-increasing population count and the improving infrastructure and economy. It also houses several automobile and software companies, which make it more populated. The apartment culture has gripped the entire nation and Chennai is no exception! The apartment and flats have become a vogue in Chennai as when it comes to a home, everything seeks nothing but the best.

There were days when a bungalow was an epitome of wealth and luxury. People longed to own a bungalow and if they failed to build one, they settled for a smaller independent house. Today, the scenario has changed altogether. Even the rich and affluent classes prefer living in an apartment or flat. The apartment culture is catching on because it has several advantages over an independent house or a bungalow. Many a people now think of apartments as an ideal option. Apart from an array of facilities in apartments—for example, parking, 24-hour security, water and power back-up, playgrounds, trendy interiors, LPG connections, health club, intercoms—they offer an easy option for vacations wherein you can simply lock them up and enjoy a long vacation without any fear of theft. Whether you face a problem with your bathroom tap or some electricity problem, you just need to inform your security guard to send the plumber or the electrician to fix it up. Can it get better than this? Had it been your bungalow or an independent house, you would have to run around and get things fixed. So we can clearly see the difference! Many such small-small things give you big enough benefits of living in an apartment. The apartments or flats are pretty cost-effective as well in comparison to the independent houses or bungalows. Last, but not the least the main reason for the apartment or flat culture to flourish so rapidly is because land is a limited natural resource and to utilize each and every inch of land in the best possible manner there can be nothing better than living in an apartment. Thus, scarcity of land can be only compensated with building more and more apartments to meet the rising demand for residential plots. The demand for residential properties has also soared high due to the increasing rents. Not just the government authorities, but private builders have stepped ahead to provide comfortable and affordable housing in the form of apartments and flats.

The prices of the apartments and flats equipped with superfluous amenities depend on their location and the extent of facilities provided. You get an easy access to the ultra-modern amenities the day you own your apartment. Depending on the requirement you can purchase a 1, 2 or 3 bedroom apartment. For larger families there are more options available. With the prices of land going out of reach of the common man apartments and flats seems the only way out. The government of Chennai has also had a role to play in initiating the township culture which eventually led to the so called apartment culture of today.

Chennai Metropolitan Development Authority was founded in the year 1971 for a structured planning of the city of Chennai. CMDA works with an objective of developing Chennai for a better future. This government entity took the initiative to launch the development activities of metropolitan regions (28 town panchayats, 306 villages & eight municipalities) of Chennai on a large scale. CMDA works in collaboration with various property consultants to frame well-organized development policies. The residential project from Vandalur to Minjur on the outside of the ring road is one such project undertaken by CMDA. The First Master Plan drawn by CMDA included building housing projects on a mass scale by obtaining around 12,000 hectares of land in the urban nodes (Avadi, Alandur, Minjur, Tambaram, Ambattur and Manali) and in satellite towns (Thiruvallur, Maramalai Nagar and Gummidipoondi). The second Master plan has made it a mandate for the private builders to set aside some land for constructing houses for the weaker sections as well as lower income groups of the society. CMDA also developed land maps and their current usage patterns to formulate new development projects for the city. The government has thus joined hands with several private builders to come up with an affordable housing option and encourage building apartments and flats in Chennai.

The desires of the middle class to dab their life with a little luxury and comfort were met with the classy apartments and flats. The easy availability of finance as an option from several banks has made it even simpler to upgrade the lifestyles. The influential classes, however, got another opportunity to entertain themselves with the new concept and add a little more luxury to their already luxurious lives. Whatever is the case, apartments and flats ease the pressure on land by accommodating many lives under one combined roof, so do you want to aide the cause of relieving Mother Earth from the undue pressure (when you can actually afford to) or be happy building another independent house?

Read More

Chennai Commercial Properties: Rental Boom

The inclusion of shopping malls, commercial complexes and vacant lands in Chennai under the category of service tax according to the Union Budget will result in a hike in the rentals of commercial properties in Chennai to an extent of 10%. Even though it would not be too significant an increase, yet developers and real estate experts in Chennai are of the opinion that in the near future the rentals will still go higher in most parts of Chennai.

However, at present the rentals for offices have not yet seen a rise. Retail show room rentals on the other hand have started showing an upward trend. Market experts predict that in the next 6 months the rentals for commercial or office properties will see a marked increase. Commercial properties located in areas like Radhakrishnan Salai, Anna Salai, Guindy, Nungambakkam High Road and Greams Road are likely to have higher rentals very soon. The Central Business District or CBD area including RK Salai and Anna Nagar will have the highest impact. The increasing rentals point towards the increasing demand and limited supply of commercial properties particularly in the CBD region. Contrary to the dynamic rental market of the CBD region, the suburban as well as peripheral areas have not witnessed any kind of change in the rental values when compared to the year gone by. Moreover, the properties in these areas have a higher vacancy ratio. Thus, even if CBD is not left with much to offer in terms of commercial rental space, other areas can be of some hope. Once the vacancy ratio falls down the construction activities for fresh supply can be step up at a faster pace.

The commercial space demand in Chennai is climbing the graph quite swiftly. This will invite an additional growth for the Chennai Real Estate Market. Realizing the upcoming demand of commercial properties, several projects have already been started or at a completion stage in CBD.  The real estate developers have been sharp enough to construct modern-looking commercial properties well equipped with all facilities in CBD in order to charge a higher rental than the existing one.

The rental boom in the commercial properties of Chennai will definitely help in providing high-quality commercial/ office space. It should be remembered that land prices are the prominent base for deciding the rental value. In the last few years the land prices have seen a drastic increase, but the rental values are not in sync with the sky-high land prices. The low rental values in comparison to the high land prices eventually accounts for low quality commercial space. Interestingly, the rental values in Chennai have always been rated as the lowest in the country contrary to the higher rentals in other metros. The corresponding increase in the rentals as per the land prices has been missing since long. Now, the 10% hike in the rental values is just the right beginning in the right direction.

The consequence of higher rentals for commercial properties in Chennai will either discourage the new retailers planning to establish themselves in Chennai or open new commercial avenues for them. The city of Chennai has enormous potential for retail sector, a well-planned and organized rental strategy will ensure a healthy growth in retail sector.

Read More

Chennai Area wise Residential Property Rates for this Week

The Chennai property rates are increasing like any other city; we bring to you an area wise price chart for Chennai to keep you updated about the ongoing Chennai property prices: S.NO. AREA NAME RATE/ SQ.FT. 1 Anna Nagar Rs.8000 to 10000 2 Adayar Rs.10000 to 12000 3 Alwarpet Rs.11500 to 12700 4 Nungambakkam Rs.10000 to 11900 5 Ashok Nagar Rs.6000 to 7230 6 OMR Rs.3600 to 4500 7 Velachery Rs.4050 to 6000 8 Thiruvanmiyur Rs.7500 to 10000 9 Madhavaram Rs.1300 to 1500 10 Vadapalani Rs.5000 to 5500 11 Porur Rs.3000 to 3600 12 Tambaram Rs.3200 to 3900 13 Tondiarpet Rs.3200 to 3600 14 Purasaiwakkam Rs.8500 to 10000 15 Perambur Rs.3500 to 3800 16 Kilpauk Rs.9000 to 11950 17 Kolathur Rs.3250 to 3500 18 Medavakkam Rs.3500 to 4480 19 Madipakkam Rs.3200 to 3700 20 Nanaganallur Rs.2900 to 3200 21 Pallavaram Rs.3500 22 Sriperumbudur Rs.2250 to 3000 23 Virugambakkam Rs.4000 to 4250 24 Urapakkam Rs.3000 to 3450 25 Maraimalai Nagar Rs.3000 to 4000 26 Kodambakkam Rs.5580 to 8000 27 Adambakkam Rs.3600 to 4000 28 Besant Nagar Rs.7300 to 7700 29 Pallikaranai Rs.3000 to 4500 30 West Mambalam Rs.5800 to 6000 31 Chrompet Rs.2900 to 3200 32 Kilkattalai Rs.3100 to 3250 33 KK.Nagar Rs.4200 to 4550 34 Mogapair Rs.3395 to 5000 35 Mylapore Rs.7000 to 8995 36 Poonamallee Rs.2000 to 3200 37 R.A.Puram Rs.9000 to 10980 38 Ramapuram Rs.3500 39 Oragadam Rs.1700 to 2720 40 Teynampet Rs.6100 to 6300 41 Valasaravakkam Rs.3400 to 3750 42 Villivakkam Rs.3200 to 3600 42 Alandur Rs.3000 to 3500

Read More

Can a Tenant Deduct the Cost of Maintenance from the Rent?

Property maintenance is the second most important task after owning a property. In case of rented properties there is usually a discord among the landlords and the tenants over the maintenance of the property let out on rent. Many a times, the dispute can be nipped in the bud by stating the mutual terms and conditions in the lease agreement that stands as a proof of agreement between both the parties involved. However, it is indeed the landlord’s responsibility to provide the tenant with safe and habitable premises. The landlord must also undertake necessary property repairs as and when required.

If the landlord refuses to initiate the repairs or is unable to take the required action, the tenant can get the repairs done. However, the tenant should serve a proper notice to the landlord, mentioning in particular the type of problem faced, the inconvenience arising from it, the safety hazards and the required action to be taken to fix the problem. It should be noted that if the landlord refuses/ fails to get the repairs fixed within a particular time frame, the tenant can get the repairs done. In such a case the tenant is entitled to recover the amount he has spent on the repairs from the landlord. The tenant can also deduct the money from the rent or otherwise.

It should be noted that here the repairs stand for those repairs which are extremely urgent and necessary. Such repairs would not include those alterations/ additions required by the tenant for mere convenience. Necessary repairs would include those repairs that account for safe premises that are habitable and can be used appropriately.

The Rent Control Acts for different States also throw sufficient light on this aspect. According to these Acts, the landlord is supposed to keep the rented premises in a state of good repairs. When a landlord fails to get the repairs (the ones binding on him) done even after being served a written notice by the tenant within a reasonable time frame, the tenant has the right to get the repairs done at his own expense and deduct the amount spent from the rent paid to the landlord. However, this is subject to the condition that the amount deducted/ recovered in a particular year should not exceed one-twelfth of the rent paid by the tenant for that particular year.

If the property is not fit for human habitation and needs urgent repairs with the landlord not responding to the repair notice then the tenant can also apply to the rent controller (as per the Rent Act) seeking permission to get the repairs done at his/ her own expense. In such a case, the tenant should submit a cost estimate to the Rent controller for such repairs. The Rent controller may allow the landlord to explain his stand. The controller conducts the necessary inquiries and considers the cost estimate and once convinced may allow the tenant to go ahead with the repairs by giving an order in writing for the same. If this route is taken, the tenant can get the repairs done himself in a lawful manner and deduct the cost involved from the rent. The money can also be recovered from the property landlord. The thing to be remembered is that the repair cost should by no means exceed the sum mentioned by the controller.

Read More