Why Do Redevelopment Projects Get Stuck

 Why Do Redevelopment Projects Get Stuck?

Let’s understand the challenges that often impede the progress of redevelopment projects and uncover effective solutions to ensure the continuous growth and prosperity of the city

Redevelopment projects have the potential to breathe life into neighbourhoods, offering economic growth, and improving the urban landscape. However, despite their potential for transformation, many of these projects find themselves entangled in delays, setbacks, and obstacles that often leave them stuck for an indefinite period. Let’s explore the complexities that lead to project stagnation, and the possible solutions to keep your redevelopment project and city thriving.

What causes the delay?

Redevelopment of an old building is a complicated process, and it requires several formalities and important steps that cannot be overlooked. Sadhav Mishra, partner at SNG & Partner Advocate and Solicitors, highlights a few crucial reasons that could hinder the progress of a redevelopment project:

“Financial constraints: 

Typically, in a redevelopment project, the developer has to spend money upfront on things such as monthly rent, hardship compensation,and settlement fees. Sometimes, even a small hiccup in meeting construction milestones can affect the management of project funds, leading to project delays. The main finance-related issues that cause these delays are late payments, poor cash flow management, not having enough financial resources, and instability in the financial market.

Delay in approvals:

Redevelopment projects are also affected due to delays in getting approvals from the concerned planning authority. 

Wavering market condition:

In case the market conditions turn unfavourable due to a global economic crisis, pandemic, or any other reason that leads to a slowdown in real estate sales, it could have a significant impact on the project’s viability. This is especially true for redevelopment projects where the developers are constantly obliged to pay rent to the society members. 

Unexpected changes:

In addition to the above, sometimes the cause of delay is linked to changes in the planning and scope of the project.

Litigation:

It’s commonly noticed that in a redevelopment project, there’s an ongoing tussle between the society and the developer. This at times, hinders the construction process and disputes arise. These disputes often lead to legal battles that stall the project and contribute to delays."

“At times, the opposition begins even before the construction work starts. Tenants can have concerns about relocation or alterations to the neighbourhood’s character. It’s important to note that disgruntled residents exist in all residential buildings, and they may create obstacles during the redevelopment process. Unfortunately, these roadblocks can cause costs to escalate due to delays, putting additional financial strain on the entire project.

A lack of a defined vision and scope can also lead to stakeholder uncertainty, making it difficult to go forward cohesively. Unexpected technical obstacles, such as environmental issues or infrastructural issues, can arise during the project causing further delays.”

How to avoid or tackle such issues?

Careful developer selection:

Choose developers with a strong track record and financial capabilities;

Detailed agreements:

Create comprehensive redevelopment agreements covering timelines, budgets, and member compensation;

Open communication:

Maintain clear communication between developers and housing society members throughout the process.

சொத்து வாங்குவோர் பழைய வில்லங்க சான்றுகளை நம்புவது நல்லதல்ல

 சொத்து வாங்குவோர் பழைய வில்லங்க சான்றுகளை நம்புவது நல்லதல்ல

ஒரு குறிப்பிட்ட சொத்தை வாங்குவது என்று முடிவெடுக்கும் முன் முதல்கட்டமாக அதன் வில்லங்க சான்று வாங்கி பார்க்க வேண்டும். அந்த சொத்தின் முந்தைய பரிமாற்றங்கள் அதில் தெளிவாக இருக்கும்.

இதில் ஆரம்ப நிலையில் அறியாமை காரணமாக பலரும் ஏமாற்றப்படுவதாக கூறப்படுகிறது. குறிப்பாக, ஒரு வீடு அல்லது மனை பிடித்து இருந்தால் அது குறித்து விசாரிக்கும் போது, விற்பனையாளரே சில வாரங்களுக்கு முன் எடுத்தது என்று கூறி வில்லங்க சான்றிதழை காட்டுவார்.

நாமும், புதிதாக விண்ணப்பித்து வாங்குவதால் ஏற்படும் செலவை நினைத்து, விற்பவர் காட்டும் வில்லங்க சான்றிதழை ஏற்கும் நிலை ஏற்படும். இதில், கூடுதல் விழிப்புடன் மக்கள் செயல்பட வேண்டும்.

இன்றைய சூழலில், சார் - பதிவாளர் அலுவலகங்கள், வட்டாட்சியர் அலுவலகங்களில் சில நபர்கள் போலி ஆவணங்கள் தயாரிக்க உதவுகின்றனர்.

இத்தகைய நபர்கள் வாயிலாக போலி வில்லங்க சான்றுகள் வருகின்றன. உண்மையாக வில்லங்கம் இருக்கும் சொத்துக்களை விற்க நினைப்போர், அது தொடர்பான ஒரு போலி வில்லங்க சான்றிதழை தயாரிக்கின்றனர். உரிமை ஆவணம் மட்டும் போலியாக வந்த நிலையில் வில்லங்க சான்றிதழும் போலியாக வரத்துவங்கிவிட்டது.

இதில், பிரச்னை உள்ள குறிப்பிட்ட சில பரிமாற்ற விபரங்களை மறைத்து, போலி வில்லங்க சான்று தயாரிக்கப்படுகிறது. இதை காண்பித்து, விற்பனை நடவடிக்கைகள் மேற்கொள்ளப்படுகின்றன.

இத்தகைய போலி வில்லங்க சான்றுகளை நம்பி முன்பணம் கொடுத்தவர்கள், அது போலி என்று தெரியவரும் நிலையில் விற்பனையை நிறுத்த முடியாமல் தவிக்கின்றனர்.

முன்பணம் கொடுத்துவிட்டோமே, இப்போது மீண்டும் வேறு சொத்துக்களை தேட வேண்டுமா என்று நினைக்கின்றனர்.குறிப்பாக, அதில் வில்லங்கம் என்று மறைக்கப்பட்ட விபரங்களை தானும் மறைக்க முயல்கிறார். இது பிற்காலத்தில் எத்தகைய பிரச்னையை ஏற்படுத்தும் என்பது தெரியாமல் சொத்து வாங்குவோர் இப்படி நடந்துக்கொள்கின்றனர்.

உங்களது தேடலின் போது, ஒரு சொத்து பிடித்திருந்தால், அது குறித்த சர்வே எண் உள்ளிட்ட தகவல்களை கேட்டு பெறுங்கள். அதை வைத்து பதிவுத்துறை அலுவலகம், இணையதளம் வாயிலாக சரியான வில்லங்க சான்றிதழை வாங்க நடவடிக்கை எடுங்கள்.

உண்மையான வில்லங்க சான்று இருந்தால் தான், சொத்து குறித்த உண்மையான முன் தகவல்களை அறிய முடியும். இது விஷயத்தில் எவ்வித சமரசமும் செய்துக்கொள்ளாதீர்கள் என்கின்றனர் சார்-பதிவாளர்கள்.

Make Every Inch Of Your Home Count With Multi-Purpose Homes

 Make Every Inch Of Your Home Count With Multi-Purpose Homes

Transform your living environment to live comfortably and efficiently with multifunctional spaces

If you’re dealing with a lack of space at home, multi-purpose homes are the way to go. They provide practical solutions to make the most of limited space while adding your personal touch. With these functional solutions, you can easily create a more spacious and unique style for your home. “Having a multi-purpose space is super important because it means you can use the same area or piece of furniture for multiple things. These kinds of spaces in your house are like chameleons, they can be easily adjusted to fit your everyday life and activities. We believe a room must be both, functional and flexible to meet your needs,” explains Prashant Thakur, regional director, and head of research, Anarock Group.

The pandemic has truly highlighted the importance of multi-purpose spaces and their ability to meet the evolving needs of homeowners. “The demand for multi-purpose spaces in modern homes has seen a significant increase after the pandemic. Many factors have contributed to this trend, particularly the rise of remote work and hybrid work setups. As more people work remotely, there is a growing need for versatile living areas that can easily transition between work and leisure activities. Homeowners are now seeking practical solutions to enhance their property’s functionality and adaptability to create more value-added homes,” affirms Amit Vakharia, VP of projects at a real estate group

How can you create a multi-purpose home?

Akash Pharande, managing director of a real estate firm, shares, “You can use a variety of clever furniture and storage solutions to transform living spaces and adapt them to your changing needs. For instance, you can opt for murphy beds, fold-out wall beds, sleeper sofas, folding tables, and chairs as they can easily convert your living room into a bedroom and vice versa. To customise a room further, you can rely on modular storage units such as cubbies, cabinets, and lofts. These can be arranged in different configurations, giving you the flexibility to fit your specific requirements. Want even more functionality? Consider dual-purpose furniture like tables that double up as desks, ottomans with hidden storage, and benches with seat lids. And to make it even easier to change things up, wheeled cabinets, movable room dividers, and rolling carts are the way to go. With these ideas in mind, you can easily customise your space to fit your ever-evolving lifestyle.”

Designing versatile living areas can be a bit tricky for homeowners, as they often encounter various obstacles along the way. The key here is finding the right balance between different functions. You want the space to not only look great but also be functional and organised. “One important aspect to consider is storage. You need smart storage solutions that can meet your diverse storage needs. Figuring out clever ways to hide easily accessible items can be a challenge, but it’s doable. Additionally, choosing furniture and household items that can serve multiple purposes without compromising on comfort or style can also be a hassle. Lastly, practicality is key. You want to make sure the room is convenient for various purposes. This means carefully planning and thinking about innovative solutions to fully utilise the space,” says Nidhi Aggarwal, founder, of a construction and interior-based company. 

Moreover, it is important to find the perfect balance between style and practicality. Aggarwal mentions, “You can opt for a trendy and cosy sofa bed that seamlessly fits into your living room’s decor. This way, it can easily transform into a comfortable bed to accommodate guests. Additionally, clever storage solutions like built-in cabinets and hidden drawers are great for keeping your space clutter-free while creating a warm and inviting atmosphere. Ultimately, the key to designing a versatile room or space lies in the skilful combination of form and function, ensuring that visual appeal doesn’t compromise usability.”

Creating a welcoming and functional space is all about finding the right colour scheme, lighting, and furniture, and experimenting with creative solutions. Hence, one must enjoy the process.

Aggarwal elaborates, “First, start by creating a cohesive colour scheme that brings the place together. A consistent palette will not only reinforce the desired mood but also visually unify the entire space. Next, think about lighting strategically. Position lights in a way that allows for different atmospheres based on the specific functions of each area. For example, adjustable wall fixtures and ceiling pendants can brighten up work areas, while ambient lighting can bring warmth to resting regions. When selecting furniture, opt for pieces with a simple line and versatile design that match the style of the room. Comfort and utility should be prioritised. Look for furniture that also offers storage options, such as internal shelves or secret compartments, to help keep the place organised and free from clutter. Lastly, don’t hesitate to experiment with adjustable furniture like folding screens and sliding partitions. These additions can easily modify the space as needed, while still maintaining a sense of harmony throughout."

Watch out for these hidden costs when applying for a home loan

Watch out for these hidden costs when applying for a home loan

Did you know that whether your home loan is sanctioned or not, you must pay certain charges to the lending bank? Here are some of the lesser-known yet important facts you must know about them 

Many homebuyers apply for a loan to finance their dream home.  However, in the eagerness to get the loan sanctioned, one tends to overlook the fine print.  Here’s a closer look at some pertinent information and expenses that buyers must become aware of.

Loan Processing fee

As soon as you apply for a loan with the required documents, the bank will have to execute a few tasks before sanctioning the amount.  These include verifying your documents and the authenticity of the residential project. You’ve chosen.  They charge a processing fee which is usually non-refundable.  This fee varies from lender to lender.  While some charges a fixed amount, others may charge a certain percentage of the loan amount.  What’s more, paying the processing fee is not a guarantee that the loan will be sanctioned.  So, if your loan application is rejected, the processing fee will not be refunded.

Legal and technical property assessment fee 

When you apply for the loan by furnishing all documents including copies of the sale deed and sale agreement of the property and have paid the processing fee, the bank gets their legal and technical teams on the job to verify the documents and assess the property.  These could be employed by the bank or the services could be outsourced to a third party.
The legal team is tasked with assessing whether the property you are buying with the loan is free from encumbrance and if there are any legal disputes on the property ownership.  The technical team reviews the property to gauge its worth and decide whether the loan application is indeed for the property mentioned.

Loan administration fee 

Once the bank has completed the legal and technical verification, becomes convinced that you deserve the loan, and sanctions your loan, you will have to pay the administration fee.  This amount, too, depends on each lending institution.  While it's a fixed fee in some places, a few others might charge a higher amount if you are aiming for a high-end home.  Others might waive off the administration fee if you request them since you’re on a good wicket with the loan sanction.

Loan documentation fee 

Although most documentation of your home loan is done online today and you may not need to visit the bank to physically sign the documents, banks still charge a fee to keep them in safe custody.  If you are repaying the EMIs from your bank account through the electronic clearing system (ECS) , your lending bank will charge a fee to activate the ECS.  Moreover, during your homeloan application, you are required to submit the original property documents to the bank after the documents are registered with the local sub registrar.  The bank transports these documents to their assigned, usually centralised, branch to keep them secure in their custody.  Professional third-party security and logistics services are hired to do this job for which they are paid.  This is then charged to you, the borrower.

GST charges on home loan 

The bank’s services rendered to you at the time of processing the home loan come under the Goods and Services Tax (GST) bracket.  While the loan amount sanctioned is not liable for GST, you will have to pay the charge on other services such as the processing fee, administration fee, legal and technical assessment charges, documentation fee, etc.
Paying attention to these small details and expenses can save you a world of trouble as you navigate property buying.

பதிவு சிக்கலில் இருக்கும் அறக்கட்டளை சொத்துக்களை வாங்கலாமா

 பதிவு சிக்கலில் இருக்கும் அறக்கட்டளை சொத்துக்களை வாங்கலாமா

சொத்துக்களை வாங்கும் போது அதை விற்பவர் யார் என்பதில் மிகவும் தெளிவாக இருக்க வேண்டும். உரிமை கோரி வேறு யாரும் பிரச்சனை செய்யாத நிலையில் உள்ள சொத்தை மட்டுமே வாங்குவது நல்லது.

இதில் தனி நபர்கள் பெயரில் உள்ள சொத்துக்களை வாங்குவதைவிட, அறக்கட்டளை, தொழில் நிறுவனங்கள் பெயரில் உள்ள சொத்துக்களை வாங்குவதில் கூடுதல் விழிப்புணர்வு தேவை. குறிப்பாக, அறக்கட்டளை பெயரில் பதிவு செய்யப்பட்ட சொத்துக்களை வாங்குவதில் அதிக ஆய்வு அவசியம்.

நம் நாட்டில், அசையா சொத்துக்களை குடும்ப வாரிசுகளுக்கு நேரடியாக கொடுக்காமல், அதை ஒரு அறக்கட்டளை ஏற்படுத்தி நிர்வகிக்கும் பழக்கம் உள்ளது. இதன் வாயிலாக, பல்வேறு சமூக பணிகளும் நடந்து வருகின்றன.

அடிப்படையில் அறக்கட்டளை ஏற்படுத்தி சொத்து நிர்வாகம் செய்வது நல்ல வழிமுறை தான். ஆனால், அடுத்தடுத்த தலைமுறைகள் அதில் முழு ஈடுபாட்டுடன் செயல்படுவதும் அவசியம்.

முந்தைய தலைமுறை ஏற்படுத்திய அறக்கட்டளையை அடுத்த தலைமுறையினர் சிறப்பாக செயல்படுத்தி இருப்பார்கள். இதில் சில கூடுதல் சொத்துக்களும் அறக்கட்டளை பெயரில் வாங்கப்பட்டு இருக்கும்.

ஆனால், அதற்கு அடுத்து வரும் தலைமுறையினரும் இதே வேகத்தில் செயல்படுவர் என்று எதிர்பார்க்க முடியாது. அவர்கள் அதிக அக்கறை காட்டாததால் அறக்கட்டளை வாயிலான சொத்து நிர்வாகம் சிதையலாம்.

ஒரு கட்டத்தில் அறக்கட்டளை தொய்வு நிலைக்கு சென்றுவிடலாம். இத்தகைய சூழலில் அதன் சொத்துக்களை விற்க வாரிசுகள் முற்படலாம்.

இது போன்ற சூழலில், சொத்து வாங்குவோர், பாரம்பரியமான அறக்கட்டளை ஆயிற்றே என்று ஆவண சரி பார்த்தலில் அலட்சியம் காட்டக் கூடாது. பல்வேறு நலத்திட்டங்களை சிறப்பாக செயல் படுத்திய அறக் கட்டளையானாலும், சட்டத்தின் பார்வையில் நற்பெயர்கள் எடுபடாது.

அந்த அறக்கட்டளையின் பதிவு முறையாக புதுப்பிக்கப்பட்டுள்ளதா, நிர்வாகிகள் தரப்பில் சொத்து விற்பனையில் எடுக்கப்பட்ட முடிவு சட்டப்படி செல்லுமா என்று பார்க்க வேண்டும். நிர்வாகிகளுக்குள் யாருக்காவது ஆட்சேபம் இருந்தால் அந்த சூழலில், சொத்து வாங்குவோர் அலெர்ட் ஆவது நல்லது.

மேலும், தற்போது வரை அறக்கட்டளை முறையாக பதிவு செய்து, சட்டத்துக்கு உட்பட்டு செயல்படுகிறதா என்று பார்க்க வேண்டும். மேலும், விற்கப்படும் சொத்து வழங்கப்பட்ட போது, ஏதாவது நிபந்தனைகள் விதிக்கப்பட்டதா, அது விற்பனையை தடை செய்யுமா என பார்க்க வேண்டும் என்கின்றனர் சார்---பதிவாளர்கள்.

Six Ways To Improve Your Financial Health In 2024

 Six Ways To Improve Your Financial Health In 2024

When your finances are in good shape, you are better equipped to handle unexpected financial challenges, and successfully achieve your aspirations

A financially secure individual would make adequate contributions to meet his financial goals, maintain adequate liquidity to achieve short-term goals or unexpected exigencies and have adequate income replacement instruments for ensuring his family's well-being in case of his absence. Here are some of the key financial decisions that one should take to maintain a healthy financial life

Maintain an adequate emergency fund

An emergency fund would allow you to meet unforeseen financial exigencies or deal with periods of loss of income due to illness, job loss or disabilities.Without an adequate emergency fund in place, any unforeseen emergencies might force you to redeem your investments made for your crucial financial goals, default on your existing repayment obligations, and/or avail of loans at much higher interest rates.Thus, create an emergency fund which is big enough to meet your unavoidable expenses such as your insurance premiums, existing EMIs, monthly contributions to your financial goals, utility bills, children's tuition fees, etc. for at least six months. As financial emergencies can strike at any time, ensure to park your emergency fund in highly liquid instruments including high-yield savings accounts or high-yield fixed deposits offered by scheduled banks.

Prepare a financial plan

Start the process by estimating the amount required to attain each of your financial goals after factoring in an inflation rate, the time horizon left to attain your financial goals and assuming the rate of returns. Then, take the help of online SIP calculators to calculate the monthly contributions required to achieve those financial goals. Apart from providing a clear direction to your investments, financial planning would also help in creating an appropriate asset allocation strategy based on your risk appetite, investment horizon and liquidity requirements.A proper asset allocation strategy would help you strike a balance between risk and rewards by diversifying your investments across various asset classes such as equity, fixed-income instruments, debt, gold, etc.

Purchase adequate insurance cover 

Many people confuse insurance with investments and thereby, end up investing in money-back plans, ULIPs, endowment policies, etc. from insurance companies. These policies provide inadequate life cover while generating sub-optimal returns. Ideally, one's life insurance cover(s) should be at least 10-15 times of one's annual income. The most cost-effective way of purchasing such large life insurance covers is to buy term insurance plans. Also, ensure to buy adequate health insurance policies to protect yourself from rising healthcare costs. Purchase at least Rs one crore with the base health cover of Rs five lakh and super top-up cover of Rs 95 lakh. If you already have group health coverage through your employer, purchase super top-ups to avail bigger health coverage at very low premiums.

Invest through the SIP mode

Systematic Investment Plans (SIP) allow investors to invest a predetermined amount in mutual funds at predetermined intervals, say, monthly, quarterly, etc. As the SIP amount is automatically debited from one's bank account, it ensures regular investment and financial discipline. Moreover, the minimum SIP ticket size of Rs 1,000 (even lower in some mutual funds) allows investors with limited investible surpluses to avail diversification while simultaneously benefiting from the power of compounding. Automated and regular investments through SIPs also help investors to benefit from rupee cost averaging during market corrections by purchasing more units at lower NAVs. This eliminates the requirements of monitoring markets and timing investments.

Start investing early for your retirement corpus

Starting retirement investments in the early stages of one's life increases the chances of creating a bigger retirement corpus with much smaller contributions. On the contrary, starting late would reduce the chances of creating an adequate retirement corpus and/or may also adversely impact the achievement of other financial goals in the later stages of work life. For example, a 30-year-old individual would require a monthly SIP of just Rs 2,700 in equity mutual funds to build a post-retirement corpus of Rs one crore within the next 30 years, assuming an annualized return of 12 per cent. For a 45-year-old, building the same corpus would require a monthly SIP of Rs 20,000, assuming the same rate of return over the next 15 years. Since equity as an asset class outperforms both fixed-income instruments and inflation by a wide margin over the long run, equity is the most suitable asset class for achieving such long-term financial goals.

Build a strong credit score

Lenders and credit card issuers consider credit scores as one of the first filters while evaluating your credit card and loan applications. Those having higher credit scores have higher chances of availing of loans and credit cards. Many lenders also offer lower interest rates to loan applicants having higher credit scores. As there can be no credit score without a credit history, those who have never availed of any loan or credit card can build their credit score by availing credit cards. Credit card transactions are considered as equivalent to availing loans and hence, these transactions are reported to the credit bureaus. The bureaus then use these transactions to calculate credit scores. Those who cannot avail of regular credit cards due to inadequate income, unserviceable locations, etc can avail of secured credit cards to build their credit history.

Buying a home for the first time? Don’t forget to claim these benefits

 Buying a home for the first time? Don’t forget to claim these benefits

As a first-time homebuyer, you may qualify for some sweet perks like tax savings, reduced interest rates, and even special discounts from developers. So, keep an eye out  as you might have a chance to save a handsome amount

Purchasing your first home can be pretty overwhelming. But don’t worry, there are a bunch of perks that can make this experience a bit smoother - not to mention easier on your wallet!

Benefits galore:

Under Section 80C, first-time buyers can claim tax benefits of up to Rs 1.5 lakh on the principal repayment of a house loan, but this is applicable only for homes that are completed and owned for at least five years from the date of acquisition; 

Additionally, Sections 80EE and 80EEA provide a tax credit of Rs 50,000 on interest repayment for first-time homebuyers;

You can also get interest deductions of up to Rs two lakh per year under Section 24, provided the home is owned and not rented;

Section 80EEA of the Income Tax Act, 1961, provides an additional deduction on home loan interest for first-time homebuyers of affordable housing. The deduction is limited to a maximum amount of Rs 1.5 lakh per financial year, provided the property value is up to Rs 45 lakh and the loan is sanctioned between specific timeframes. 

“The Real Estate Regulation Act (RERA) ensures transparency and accountability in the real estate sector, thus protecting the interests of buyers by curbing malpractices. The Pradhan Mantri Awas Yojana (PMAY) is aimed at providing “housing for everyone” and benefits first-time home purchasers from lower and middle-income families. The subsidy rates on the principal amount vary based on the buyer’s income, with additional income brackets recently introduced to extend the benefits to a wider segment of the population. Moreover, the housing subsidy GST has been reduced from 12 per cent to eight per cent for residences acquired under PMAY, allowing eligible first-time homeowners to avail of a higher subsidy of up to Rs 2.7 lakh,” informs Pritam Chivukula, vice president, CREDAI-MCHI.

Money matters :

First-time homebuyers can avail of competitive home loan interest rates from top banks and lenders. These rates are generally tailored based on various eligibility criteria. Besides, if you’re a salaried employee, your interest rates could be lowered by 15-20 basis points as compared to those who are self-employed. Akash Pharande, managing director of a real estate firm adds, “Banks occasionally roll out special offers for first-time homebuyers. You might see slight reductions in interest rates or other benefits such as a waiver on processing fees and prepayment charges, among others. However, these offers are usually available during the festive season. So, keep an eye out for these sweet deals.” The interest rates you might end up paying on your home loan depend on several factors which include the size of your loan, the term of the loan, and your credit score. So, keep these factors in mind while planning your finances.

“Bigger loans, longer payback periods, or a weak CIBIL score may attract slightly higher interest rates. Remember, not all banks and financial institutions offer the same rates and terms for their loans. It’s essential to compare offerings from multiple lenders to get the best deal,” says Vickash Choudhary, founder of a real estate firm.

The one mistake that first-time homebuyers often make is that they focus mainly on securing lower interest rates, but they should also consider other terms such as prepayment charges and processing fees while comparing loan offers.

Developers play their part :

Developers often extend special reductions and benefits to attract first-time homebuyers and promote their projects. These benefits can vary depending on the developer’s marketing strategy and the property being offered. Common offers include discounts on the base price of the property, thus making it more affordable for first-time buyers. Some developers may also provide additional incentives such as free furniture or appliances, or free membership to gyms or clubhouses. Additionally, to ease the financial burden on first-time buyers, developers might offer flexible payment plans with staggered payments or lower initial down payment requirements. Developers may offer discounted prices to first-time homebuyers, especially in affordable housing projects. Some developers may waive off additional charges such as floor rise charges, preferred location charges, or clubhouse membership fees to attract first-time buyers. Developers may have tie-ups with specific banks or financial institutions, thus providing special home loan interest rates or processing fee waivers for buyers of their properties. Chivukula cautions, “Prospective homebuyers should thoroughly review all the terms and conditions of such offers before making any decisions to ensure they fully understand the benefits and implications.”

Make the right choice : Standalone home vs. flat

 Make the right choice : Standalone home vs. flat

In the bustling real estate landscape of Chennai, here is a guide to help you choose between an independent house and apartment

With its diverse real estate landscape offering everything from luxurious villas to modern apartments, prospective homebuyers in Chennai are often confused with a pivotal decision: whether to invest in a standalone home or an apartment. Each option presents its own unique set of advantages and considerations.

Current market scenario

As per Anarock Research, as many as 28,300 units are available for sale in Chennai as of H2 2023. These include all property types such as apartments, villas, plotted developments, etc. Though apartments are the first choice of property seekers, it’s interesting to know that villas as a property type gained much traction during the pandemic. This was also revealed in Anarock’s Consumer Sentiment survey wherein demand for villas went up across cities. Interestingly, villas were popular among buyers in Tier II and III cities. As per the survey, almost 27 per cent of respondents who are looking to buy in Tier-II and III cities chose villas as their first preference. As for the top seven cities, notably the southern cities have a higher demand for villas. For instance, in Hyderabad, almost 19 per cent of respondents preferred to buy villas, in Bengaluru 14 per cent preferred it, while in Chennai, nine per cent of respondents preferred villas.

Apartment or an independent house: What is the ideal choice in Chennai?

Both apartments and villas depreciate over time in terms of value and strength, as compared to the newer buildings. Buying a home in a new building would always be a tad bit more expensive than the resale market. What one thus needs to consider is the purpose of their purchase. Apartments generally come with lesser work in renovations and repair (water connection, electricity, gas line, etc). On the other hand, if buying a villa, along with the utilities, you may also have to take care of either building the structure or renovating the existing one including the desired type of fencing as everyone’s security needs vary. The stress of ensuring there are no trespassers also lies with the owner in the case of a villa. However, your preferences and needs should be the priority before deciding between the two.

Where to buy a house in Chennai?

“In the past, central regions of Chennai like Nungambakkam, Alwarpet, and Mylapore have typically featured standalone homes. As the city expanded, some of these homes were transformed into apartments due to an increase in the number of buyers and evolving consumer preference for gated communities catering to urban lifestyles. This shift has also been supported by the growth of the office sector, with increasing IT/ITeS firms in OMR in South Chennai and buoyant industrial activity in Oragadam-Sriperumbudur and surrounding locations in West Chennai. Thus, over the recent years, South and West Chennai have garnered a dominant share in launches and sales of housing units. Notably, South Chennai now holds around 60 per cent of the city’s housing stock, with prominent zones such as OMR, GST Road, ECR, and neighborhoods such as Velachery and Adyar. This growth has also been fuelled by urban expansion and increased property values in central areas,” informs Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE.

What is the best bet for you?

Advantages of apartments:

 Apartments offer convenience and shared amenities. They often come with security features and have maintenance handled by society management. Their central locations provide easy access to various facilities and can be more affordable than houses.

Disadvantages of apartments:

 There are often rules set in place by the building management that can limit how much you can personalize the space. Plus, the resale value of an apartment might not increase quite as quickly as you’re hoping.

Advantages of independent houses:

 Independent houses offer ample space and privacy. They often come with private outdoor areas, giving residents more freedom for gardening and outdoor activities. The resale value can be pretty good, and no shared amenities or restrictive rules usually exist.

Disadvantages of independent houses: 

Apartments come with minimum hassles of maintenance. On the other hand, in an independent home, the owner must go through the hassles of finding plumbers or carpenters, and even take it upon himself to manicure the lawns. Although most of the amenities (pool, and garden) can be built into an individual house, the financial implications are huge. Also, owners have to install CCTV cameras or burglar alarms to monitor the property, which is an additional expense.

– Manju Yagnik, senior vice-president, NAREDCO