Gated communities and security systems

Jun 7,2019 / By sunil deo / No Comment

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.

Buyers can now ask a full refund for canceling delayed flats: NCDRC

Jun 4,2019 / By Prahalad Singh / No Comment

NCDRC asks Supertech to refund over Rs.1 Crore to buyer

The National Consumer Disputes Redressal Commission (NCDRC) in its recent order make it valid that the homebuyers can challenge builders for a full refund if the possession of the flats is delayed by a year from the agreed date of final delivery. At the same time, a homebuyer can’t be forced to forfeit any amount deposited with a builder in case he attempts cancellation of allotment of flat for the delay in possession.

Builders always set the harsh clauses in the agreement in order to discourage homebuyers from canceling the allotment on forfeiture of a large amount deposited by buyers. But the NCDRC regarded that real estate companies can’t petition such rigid clauses in cases where the buyers are forced to the cancelation of his/her unit due to excessive delay in completion of any project.

In a recent judgment, a bench of Justice V K Jain restricted Supertech Limited from forfeiting 15% of the flat cost as cancelation charges after a buyer asked a refund of money as the company unable to deliver the house in its Noida housing project by December 2016 as per the agreement including the grace period of 6 months.

This case is about Chandan Gupta who had booked a residential flat with Supertech’s project “ORB Towers” in Sector-74, Noida for payment of Rs.2.36 crore. The commission gave the order in favor of him.

The commission also directed Supertech Ltd to repay the entire principal amount of Rs 1.08 crore along with compensation in the form of simple interest at 10% per annum from the date of each payment till the date of refund to the buyer within 3-months.

The Commission has passed this order in the wake of continuous delays the homebuyers have to face to take the possession of their flats. Earlier, the Supreme Court and several consumer courts in the past judged that the end buyers can’t be forced to wait unlimitedly to take the possession of their flats.

Amaravati Smart City

Apr 25,2019 / By Supriya Mogarala / No Comment

Amaravati Smart City:

Since smart city mission is one of the biggest targets of the digital age in India led by Prime Minister Narendra Modi has launched the smart city mission on June 15, 2015, which can be described as the strength to blend various technological solutions in the safest way possible to control the city services and wealth. Smart city ambition will raise the standards of infrastructural development around India. The consolidation of technology mated with physical infrastructure and services can simplify the lives of residents and that’s how smart city missions are expected to create a drastic change in the Real Estate sector around India. Due to the smart city mission, the demand for the surrounding areas has also been increased. For example, if we consider Amaravati, cities like Vijayawada, Hyderabad will increase its demand In Real Estate Sector.

Smart city mission is expected to in turn the infrastructure of India by attracting the establishment of several MNC’s that will generate the employment opportunities that result in high residential demand. The smart city mission will also provide multiple affordable housing opportunities for low-income groups and economically weaker sections. Such factors will increase the opportunity to the developers to establish new projects in the upcoming smart cities because the mission will allow an attractive investment opportunity with a range for price appreciation and high return on investment.

Amaravati is one of the latest India’s smart cities which is the capital of the Indian state, Andhra Pradesh. It covers an area of 217.23 sq. km., within Andhra Pradesh capital area and placed on the southern banks of the river Krishna in Guntur, Krishna districts. Its smart city framework will include tissue optic connectivity and smart architecture. Amaravati smart city consists of many new ideas that are significant for a large city including modern waste collections and managing the ecological balance within the green spaces. This capital city could be the test model for India’s infrastructural development.

Some of the conspicuous features that are exacted to be in Amaravati smart city are:

1. Endorsing mixed land use in area-based developments and ensuring sustainability all over the city

2. Expanding housing possibilities for all

3. promoting walkable localities by conserving and beautifying open spaces and growing a vibrant economy

4. Giving an identification to the city based on its basic economic activities such as health, culture, education, etc.

5. Practicing smart solutions to infrastructure

Till date, Amaravati had completed its interim secretariat building in a 49-acre area that signifies the temporary assembly. According to the timeline of this smart city project, Andhra Pradesh’s capital will be functional only by 2024 that will be the end of its second phase, where most of the industrial establishments will display operational and the third and final phase is expected to complete by 2029.

Realtors appeal to the housing ministry to cut GST rate

Apr 17,2019 / By Prahalad Singh / No Comment

Realtors’ appeal for GST rate cutting

In a letter to the GST Council, brokers have requested that real estate agents be released from GST on services provided for affordable housing.

The Association of Certified Realtors of India (ACRI) has appealed to the housing ministry to reduce the 18% goods and services tax (GST) levied on brokers on the brokerage they earn from builders on each transaction and make it 5%.

Reduced GST on brokerage will help them overcome trouble and give better job opportunities to their community in coordination with the GST Council.

Brokers said they were fighting with a slowdown in sales and getting it difficult to sustain as builders refused to pay GST levied on sales.

“No builder is ready to pay GST on the brokerage. The channel partners are already squeezed; this is just an additional burden,” said Irshad Ahmed, president, National Association of Realtors.

The ACRI and the National Association of Realtors had also appealed to the central committee to withdraw the 5% fine on brokers. “The finishing and delivery of projects are not in our hand. We are only a marketing member and reliant on the information was given by the developers and authorities,” said Aggarwal.

The service tax levied on real estate agents’ services was raised to 14% from 12% in June 2015, just before GST was levied on realtors. The GST rate applicable for all services provided under the heading ‘real estate services’ on a fee or commission basis or contract basis and for services by way of renting of a residential home for use as residence is excluded from GST. Other rental aids attract GST at 18%.

GST Update: New GST Rates For Real Estate

Feb 26,2019 / By Prahalad Singh / No Comment

The Goods and Service Tax (GST) Council in its 33rd meeting has been conducted on Wednesday, 24th February 2019. The discussion on real estate related issues have been discussed and The lower tax burden on home buyers is expected to push demand in the segment which will, in turn, will keep developers committed to building more affordable homes. The decision will provide relief to the middle-class homebuyers in metros as well as non-metro cities. At the same time, the decision is expected to help the govt’s move towards achieving its target of “Housing for All by 2022”.

Demand for residential properties is expected to receive a major boost following GST the government’s decision to reduce the Goods & Service Tax (GST) rates for under-construction projects to 5% from the effective rate of 12%. Keeping in mind the objectives of “Housing for All by 2022”, the government has reduced the GST to marginal 1% for affordable housing. Apart from that, completed projects which have received Occupancy Certificate (OC) will not attract GST.

Rationalization of GST Rate:

Residential Segment Type	Existing Effective GST Rate	New Effective GST Rate	ITC Availability
Residential properties outside affordable segment	12%	5%	Without ITC
Affordable housing properties	8%	1%	Without ITC

3. New Definition of Affordable housing – A residential house/flat of carpet area up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having a value up to Rs 45 lacks.

Both conditions will have to be met – house having a carpet area of 50 sq mtr valued at 50 lacs will be taxable at 5% and not 1%.

As per GST Council, Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata, and Mumbai (the whole of MMR).

4. Builders for the above types of residential projects will not be eligible to claim the input credits. As a result, the elimination of Input Credit Tax benefit may hit profitability for the supply side.

5. Transferable Development Rights /Joint Development Agreements / Long term lease premium and FSI(Floor space index) transfers shall be exempted only in case if it pertains to a taxable residential project, in other words, TDR(Transfer of Development Agreements) for commercial projects will be taxable @ 18%

6. Above changes will be effective from 1st April 2019 after notifications are issued

How will the new GST Rate Benefit the Homebuyers?

Now the homebuyers will get a fair price deal. Earlier, the GST Tax rate was 8% for affordable housing properties and 12% for regular housing projects. But in the GST Council Meet that happened on Feb 24, 2019, the GST rate was cut down to 1% for affordable housing projects and 5% for regular housing projects, with no input tax credit.
Affordable Housing plans will get attracted to GST at 1%.
The interest of the homebuyers/consumers towards buying a property has been increased.
Input Tax Credit not being passed on home buyers/consumers will not be an issue.
Un-utilized ITC(Input Tax Credit), which has been used as the cost of the project should be removed and should lead to a better price.
Tax structure and tax compliance should become simpler for builders.

Note:
TDR – Transfer of Development Rights
JDA – Joint Development Agreements
FSI – Floor Space Index
ITC – Input Tax Credit

Tag Archives: real estate

Gated communities and security systems

Gated communities and security systems

Buyers can now ask a full refund for canceling delayed flats: NCDRC

NCDRC asks Supertech to refund over Rs.1 Crore to buyer

Amaravati Smart City

Amaravati Smart City:

Realtors appeal to the housing ministry to cut GST rate

Realtors’ appeal for GST rate cutting

GST Update: New GST Rates For Real Estate