Monthly Archives: Jun 2019

blog Real Estate Real Estate News Smart Residential Living uncategorized

ICRA: NBFC crisis to lower home loan growth for the first time in 3 years

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ICRA: NBFC crisis to lower home loan growth

The current liquidity crisis suffered by the Non-banking Financial Companies (NBFC) is expected to lower home loan growth to 13-15% this fiscal, according to a recent report released by rating agency ICRA that is lower than the average of the previous 3 years.

As per the Investment Information and Credit Rating Agency (ICRA), the NBFC liquidity crunch can also have an unfavourable result on outstanding home loans, which reached Rs.19.1 lakh crore as of March 2019.

The overall industry loan growth for Housing Finance Companies (HFC) had backed off to 15% for 2018 financial. It said that the issue with the non-banking lenders since last September that has seen a huge number of companies like DHFL and Reliance Capital suffering has lowered down credit growth of committed housing finance companies to 10% in 2019 fiscal.

Banks developed faster at 19% as against 13%, taking their overall market share to 64% from 62% last fiscal, it stated that the adding banks will lead the growth curve in 2020 fiscal. In any case, given the under-penetration of home loans, the agency expects that development should recover soon. The gross Non-performing Assets (NPA) ratio from the overall housing finance exposures increased to 1.5 in March 2019, from 1.1 last year.

The agency suggested that there could be some pressure on the nature of the assets due to the difficult working conditions and the rising risk factor. The overall NPAs of HFCs will grow to up to 1.8 % due to concerned faced by some developers.

Growth in affordable new housing segment dipped to 4.6 % as of March 2019 from 5% as of December 2018 criticising the same to devalue and sale of NPAs by some players.

 

HFCs would require Rs.4 to 4.5 trillion in Financial Year 2020 to meet the growing necessity of 10 to 14%, adding that companies will have to resort to securitization.

 

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blog Buying property gst Real Estate Real Estate News Smart Residential Living

Maharashtra: Property is Expected to Get Expensive as Buyers to Pay Input Tax Credit

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Property Cost in Maharashtra is Expected to Get Costlier as Buyers Have to Pay Input Tax Credit

The Confederation of Real Estate Developers Association of India (CREDAI) in its annual general meeting which was held in Kolhapur on 8th June 2019 has decided to pass the responsibility of Input Tax Credit to buyers. This move by CREDAI is expected to increase property prices in Maharashtra by Rs.200 per sq ft.

Rajiv Parikh, President of CREDAI has informed that a discussion was made which influenced the industry body to take the decision. However, the effective date of the same is yet to be determined. The industry body will follow up with the State government regarding the same.

Shantilal Katariya, Vice-President, CREDAI, has added that builders are paying 13% tax on all construction materials to the government but they are not recovering the same from the buyers. Input Tax Credit is a part of the Goods and Services Tax (GST), which is applicable in case any goods or services are furnished to a taxable person. Builders were not passing this tax to the buyer.

He also added that CREDAI will follow up the government in this concern.

Earlier a resolution was passed in this regard, asking the government to possess equal provision for RERA as all states have different terms under RERA, which was giving difficulty for business.

As per vice-president of CREDAI, builders in Maharashtra are the most affected as the state alone has a share of almost 50% of real estate business due to rapid urbanization. If there will be an equal RERA in all states, it would ensure a smooth business environment.

In another initiative, CREDAI complimented the government’s decision to amend the Land Title Act. However, to avoid litigation in future, search report for land will be prepared by the state government and not a private lawyer. As a result, it will bring down the number of litigation.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. CommonFloor does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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blog maintenance Real Estate Right Step Smart Residential Living Tips

How To Keep Your House Cool In Summer Without AC

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How To Keep Your House Cool In Summer Without AC

Summertime delivers many pleasant things but the utmost hot is not one of them. For many, using air conditioning is not affordable nor available. You don’t have to undergo the hot weather or spend too much on your electric bill to keep your house adequately cool, particularly during the summer.

Reduce your monthly bills with these effective ways to keep your house cool this summer.

Insulate Your Attic:

To make your house more energy effective, you should have good attic insulation. Having good insulation fitted will limit the transfer of heat between the attic and your living area in the summer and prevent your hot air from spreading into the attic during the winter. Believe me, it is very cost-effective.

Keep All Windows and Doors Properly Closed:

Properly closed windows and doors keep your house cooler in the summer. Make sure that all the windows and doors of the house closed properly and prevent warm air entering the house.

Unplug All Your Electric Appliances:

Everything you plug into a socket generates heat. It is better, unplug all nonessential appliances or electronics when not in use. Keep all unwanted switch and socket off.

Use Natural Light and High-Efficiency Lighting:

Take advantage of daylighting or use energy effective light bulbs, such as LEDs, in your high use areas. A regular 100 Watt light bulb can increase the heat by 11 degrees per hour in a small room and at the same time, increase in electricity bill. A LED light generates less heat than other lights and reduces your electricity bill.

Don’t Cook Inside:

The kitchen can generate and retain a lot of heat when you are cooking. The best way to reduce heat is to cook during the coolest time of the day.

Use White Cotton Fabric Covers on Your Furniture:

A white cotton fabric covers will help maintain less heat in your furniture. These covers will also reflect the light.

Fix Stand Fans Out the Window:

By doing this, you allow hot air out. Sometimes, it is better to use stand fans for exhaust rather than creating an artificial breeze.

Cool Down Room with Ice:

Take some ice in a bowl, place in front of a fan, and you will get an instant air conditioner. It may not be as cool as the real air conditioner, but it is still pretty effective and keeps your home cool.

Hang Wet Clothes on a Clothesline Instead of Dryer:

A dryer is no different from an oven in the summer season. They are known as heat multipliers, so try not to use them if you don’t need dry clothes right away. Wet clothes observe heat and keep the room cool.

Use Exhaust Fan in your Kitchen and bathroom:

Using an exhaust fan in the kitchen and bathroom pull out the heat from other rooms nearby.

Use Damp Curtains:

People are using this technique before the birth of air-conditioning systems. This method is pretty related to putting ice in front of the fan.

Plant Trees:

This may be a long-term plan, but the benefits are also long-term. After a few years, you will be proud of the natural shade you have created. It will keep your surrounding as well as your home cool.

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blog Life at home Real Estate Real Estate News Right Step Smart Residential Living Tips

Gated communities and security systems

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Gated communities and security systems

Gated communities have been a popular choice among Indians for reasons more than one. From facilities provided to the sense of security that these societies give the residents, such complexes have it all. More Indians today than ever choose to become nuclear families and move into gated communities to ensure the safety of their children.
However, since the shocking incident of rape of a minor girl in a Chennai apartment complex last year, the safety of such communities is being questioned by everyone, including the residents themselves. The safety concerns arise from the fact that most residents are unaware of who is entering and leaving the society premises. Moreover, the staff (security guards, plumbers, etc.) in these complexes are contract-based and change from year to year. Together these factors give rise to the question:

Are children and adults, alike, safe in gated communities?

Housing societies across India have decided to answer the question above themselves through the installation of various security technologies. While some have pooled in money to install CCTV cameras in and around their complex, some others have invested in biometrics to ensure the safety of the residents. One such housing society is Savita Enclave at Mira Road, Mumbai.

Savita Enclave can be considered as a pioneer among the housing societies in Mumbai as far as security measures are concerned. The complex implemented CCTVS, biometric system, and grill front doors in all of its apartments in as early as 2011. With an all-inclusive expenditure of over INR 2 Lakhs, the housing society has ensured that no one other than the residents enters the premises. Their support staff and outsiders will need to use the intercom system.

Read more about Savita Enclave’s initiatives here.

At CommonFloor, we continue from where Savita Enclave other such communities stopped. Our application ‘SmartGuard’ by CommonFloor Groups allows the members of the housing societies to form a close-knit community all interconnected in a single app. With features like event calendars, polls, online notices, and many more, residents can collaborate efficiently and effectively. Moreover, online visitor management becomes hassle free and a fool-proof practice with the SmartGuard mobile app. The application enables tracking all visitors (guests, staffs, and vendors) entering the premises through instant online reports.

Summary

Safety and security is a priority irrespective of the type of household or residential area. Gated communities give out the illusion of protection through the presence of guard and a visitor’s logbook. However, with the rising crime rates in the nation, security technology is the best bet we have to ensure the safety of the residents.

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blog Right Step Smart Residential Living Tips

Auto Reconciliation of PayU Money Payment Gateway Transactions

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Auto Reconciliation of PayU Money Payment Gateway Transactions

Commonfloor Groups team has released the new feature on the Accounting Module “Money Manager” Auto Reconciliation of PayU money Payment Gateway payments. This feature saves a lot of time of the Treasurer and or the Admin of the Apartment Association or Society Management Committee considerably.

The Challenge of Reconciliation:

Whenever a Resident is making payment online using the PayU Money payment gateway the Receipt is generated automatically and is mailed to the Resident, simultaneously the Receipt and the Amount gets reflected on the House Statement and the Default Bank Account of the Association or Society. Earlier such payment(s) reflecting on the default bank account of the Association was to be reconciled by the Treasurer or the Admin of the Apartment Association or Society manually as the PayU Money payment gateway make settlement or credit the Amounts into the Bank account of the Association or Society in bulk. The admins had to reconcile the bulk payments along with the Transaction report of PayU Money manually and were facing difficulty in finding the breakup of the Amount as well as the Flats or Houses which made such payments for a particular credit of bulk settlement of transaction amount. The manual reconciliation was time-consuming and was difficult to reconcile each of the PayU Money transactions on a daily or weekly or monthly basis.

How does it work?

As PayU Money payment gateway is integrated with the Commonfloor Groups Software the Product team of Commonfloor has enhanced the integration to fetch the Settlement data from PayU Money by an advanced automation process. Now the Commonfloor Portal can provide the Receipt No, Settlement date correctly along with the Amount for each of the Transactions and with the UTR No. for easy reconciliation and to get the breakup of the Amount plus the Flat or House No.

Secondly, such Transactions for which settlements are made are automatically get reconciled on the Bank Statement of the Association or Society’s portal of Commonfloor groups and a Green Colour Tick mark appears against such auto reconciled Transactions. Thus saving a lot of Time and Effort of the Treasurer and or the Management Committee member who voluntarily work for the common cause of the community.

 

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