Housing Social responsibility of the Government

Business lawyers, senior advocates, property lawyers in Bangalore, property advocates in Bangalore

Housing is one of the essential basic needs for a peaceful living which is still remaining a distant dream for the people of Bangalore. On one side the population of the city is growing fast which has already crossed one crore mark. As such this problem has to be addressed on a war footing by the Government Agencies to provide affordable housing and thus prevent haphazard growth of the city.

But the main government agencies dealing with housing problems i.e., the Bangalore Development Authority (BDA) and the Karnataka Housing Board (KHB) are not taking any positive steps to solve this problem since a long time. This has provided ample opportunities to some of the unscrupulous developers who are forming illegal layouts and cheating the public of their hard earned money. This has further lead to the the haphazard, unplanned growth of the city without proper basic amenities like proper roads, parks, schools, etc., The government must take stringent steps to curb this menace immediately before the situation goes out of control.

The BDA must take immediate steps to form new layouts with provision for basic amenities to meet the growing needs of housing. The present practice of simply forming the layouts without providing civic amenities and making the allottees to wait for several years for facilities may be discontinued. Further, it is suggested that proper rules / guidelines must be framed for development of private layouts in conformity with the BDA layouts. Special attention is needed in providing necessary infrastructure while forming the layouts itself keeping in view the development of the areas in the next 20 years. Apart from this the BDA may also take initiative in developing full fledged townships on the outskirts with civic amenities and better road and rail connectivity. This will ease the congestion / pressure on the infrastructure in the central business areas. Further, the KHB must take up projects to construct houses with good planning and quality. At present most of the flats constructed by them are remaining unsold because of high price. On the other hand it is suggested they must construct affordable flats / houses to cater to the needs of the middleclass, lower income group and economically weaker sections of society.

The housing needs of the people cannot be fully met by the government agencies like BDA/KHB alone. Hence, the role of the private property developers cannot be overlooked. It would be fair and also necessary in the present situation if the Government encourage private property developers to form layouts. But, it would be better if the government introduces the single window clearance system for approval of layouts formed by them to avoid unnecessary delay in granting approval avoiding bureaucratic bottlenecks which leads to corruption. At the same stringent punishment may be inflicted on the property developers who violate building bye laws, other statutory regulations and cheat the public.

Factors to be considered while searching for a house

Advocates, property advocates in Bangalore, property lawyers in Bangalore

The region or the area you are contemplating for your next house should be considered as to how that environment can affect your real estate purchase. Be conscious of streams or run-offs that could classify the region as a flood plain and note any obvious indications of bug infestation or mold. Pay attention to adjacent transport hubs that could affect noise levels, like airports, ambulance stations or railway stations. Stop by at night to see if the noise level increases and if the streets are well-lit. It all comes down to real estate education with respect to local impacts. An additional important factor to be  considered is as to how easy your community has the access by using different transportation modes. Check for bicycle lanes and pedestrian crosswalks with nice wide sidewalks. Observe how cars navigate through the streets and if there are areas where possible bottlenecks could impede motorists during rush hour. Also find out if the buses or subways that service the community would get you to work and back easily.

Picking up just the right neighbourhood is another important factor in any house purchase, and buyers are showing increased allure in communities that encourage healthy, sustainable lifestyles. Neighborhoods consist of the people who live there, so make certain that you are compatible with the kinds of people currently living in that locale. If you are looking for a quiet life, moving onto a street near a college or school may mean more commotion from a younger population. On the other hand, if  you are  interested in having an active home with lots of guests and events, think about a location that attracts individuals who will welcome your energetic attitude. Everyone has different lifestyles that they feel most accustomed to, so take a little time to study the overall flavour of a neighbourhood to determine how well it matches your temperament. Look into the location of security and police stations by contacting any homeowners' associations that have formed in the area. Learn about the regional traditions and how they normally celebrate holidays, seasonal events and various activities that involve the whole neighborhood.

A lot of sustainable neighborhoods are designed to keep expansion at bay by developing green corridors and instituting rules that apply to population density and property size. Review civic developments that can have long term effects on the region, such as new roads, subways, major shopping malls or continuing road improvement plans. Also determine the ability of an area to expand with your needs, and see if the overall community structure will allow you to remain in the same school system if you find that you require a bigger home down the road.

Neighbourhood planning is beginning to display this natural approach by adopting design traits that focus on green spaces, reduced residential traffic and recycling services. Having a good notion of exactly what type of feeling and surroundings you require in a neighbourhood can save you a lot of time in your house hunting journey.

Advocates, business lawyers, senior advocates, property lawyers in Bangalore, property advocates in Bangalore, Property transfer advisor

An article about " Mixed use of land in cities-A welcome concept "

Advocates, business lawyers, senior advocates, property lawyers in Bangalore, property advocates in Bangalore 

Normally, the planning of the City is done in such a way, that the areas specifically earmarked for specific purposes like residential, commercial or industrial. In small towns, such zoning ways go well. But in bigger Cities, with no proper communication system in place, it is a hardship for Citizens. Once moderately populated with a limited area, Bangalore was a good city without much of zoning. However, as in the case of major Cities, Bangalore has been facing migration from the rural and urban areas of the State and other States because of the hunt for jobs and livelihood. The City once with an area of about 200 sq.kms and a population of less than a million is now a metro with an area of about 800 sq.kms and a population of nearly 10 millions, with a comparatively rapid growth, providing jobs and opportunities for investments.

The City has become a destination for investment in view of its climate and easily available Man-Power. The State has been inviting industrial Entrepreneurs and providing all possible incentives. Various industries have been established resulting in rapid and uncontrolled growth and resulting in great demand for land and developed properties. In view of the vast area, the time has now come to rethink about the earlier zoning of land use. It has become more necessary because of the problem of communication. The concept of mixed land development has been taken up in the City. With the new concept the Authorities have been trying to relax the land use in well developed parts of the City. The areas once residential are now being converted into semi-commercial and this change has certainly benefitted the Residents of such locations.

The Owners of residential buildings are engaged in converting their residential buildings into non-residential thereby making available space for commercial purposes. If such changes in land use are brought in the important places, now the pressure is on the centralised areas for commercial purposes which would be eased. The Citizens may not have to communicate from their residential areas to the centralised business areas. This would also help to reduce the movement of vehicles and consequently help to reduce the pollution.

The people from the areas where the land use has been changed to mixed use seem to be happy since with the conversion of their buildings to suit garment shops etc. and get more rentals. The sale of properties in such areas also fetches good value and Owners are able to sell such buildings. The concept of mixed land use is welcome for it. It will create greater opportunities to allow people to establish business in the areas they live and ease the pressure off the Central Business District and the City Transport System. The concept has helped the Owners of the properties all along the metro lines are going on and the business activities would start functioning.

The concept, if extended to all the potential areas the prices of land, particularly vacant lands in the City limits would go up. Perhaps, nothing could be done to check the trend. The property Developers would try to take the maximum advantage of the probable change in the time to take looking to the demand for dwelling space in the City. It is necessary for property Developers to take up development of spaces for residential as well as commercial, keeping in view the demand for residential accommodation for people in the middle-class.

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An article about " Planning for Pedestrian safety "

Planning for Pedestrian safety

A failure to plan results in ultimate failure in other aspects also, even though we never intended it to be like that. The lack of planning has caused confusing growth in our city as well as in overcoming strategies. We could have a strategy to plan traffic efficiently with proposals for dedicated lanes for different kinds of vehicles (i.e 2 & 3 wheelers separate from 4 wheelers), continuous one way traffic planning thus creating north-south and east -west corridors through the city. There could be systems of synchronized traffic lights on the chief arterial routes.

One main drawback of the current faulty traffic planning in Bangalore is the vanishing sidewalks 

on the roads of our city. Traffic planning must include planning for pedestrian traffic, not only for automobile traffic. It seems that the latter is the only criterion for planning in this city: as though pedestrian traffic was not significant and did not need planning. Pedestrians have been sidelined. As roads are always being widened pedestrians receive the left- overs so that many are compelled to walk on the road next to the automobiles. This is a typical example of short sighted city planning. Why are pedestrians treated as second class citizens while they risk their lives by walking along the vehicular traffic that causes inconvenience to both the sides? For healthy living for human beings, walking is an important part.

Why then do our cities not make a way for and encourage pedestrian movement? Why has it become such a dangerous affair in urban areas?

Sometimes roads are widened to such an extent that sidewalks have become non-existent.

Bangalore used to be known as the Garden City before becoming the Silicon Valley of India. It was friendly to citizens with its sufficiently broad sidewalks. Nowadays as roads are being continuously expanded sidewalks have begun to diminish and may become extinct.

The failure in planning to provide basic sidewalks in the city is not acceptable as it leads to great problems that include traffic rage and accidents to pedestrians and motorists. A city's standard is gauged by the quality of life it provides and accessibility to pedestrians and flow of basic needs. The minimum infrastructure needed for any well planned metropolitan city is to give sufficient sidewalks on all main roads. This would encourage people to walk to nearby destinations instead of using vehicles. This would help them to remain healthy and bring down pollution and vehicular congestion.

According to a survey too many pedestrians are injured and many of them fatally in accidents in Bangalore traffic.

How can a person walk easily when the sidewalks are not evenly laid out or are too narrow to allow two or three people to walk side by side? What kind of message does this give to the physically challenged and elderly people? Who is responsible for so many pedestrian casualties that happen on account of a wrong planning or lack of implementation of sidewalks? 

There should be accountability through the court system when the city authorities are held responsible for accidents or deaths taking place because of official negligence ( as surely as private businesses are punished when accidents or deaths happen because of negligence in their premises).

For making Bangalore a pedestrian friendly city, traffic planning should also have planning for pedestrian traffic flows in the city giving priority to providing connections to parks, water bodies and open spaces. There should be good linkages for pedestrians with its parks, water bodies and open spaces via tree lined pedestrian sidewalks with complementary bicycle lanes along with them or on the road. There should be efficient, functional city planning to enable pedestrians to move freely from one residential area to its community park on a neighbor- hood scale and from one park to another or to water bodies throughout the city. 

A bicycle and pedestrian path lined with trees from Lalbagh Horticulture Park to Cubbon Park and Ulsoor lake would help to make these great city assets more open to the whole city's residents rather than only to their immediate neighborhoods. Pedestrians and bicyclists (the health conscious public and the elderly) could commute between the city and the cantonment sections via this axis. It would help bring pedestrians from the city section to the centre of the cantonment and vice-versa thus making their journey leisurely. It has to be planned for. Such pedestrian connections through wider and better tree lined sidewalks and functional links throughout the busy streets should be planned. Tn this way Bangalore would become a pedestrian friendly city and improve its quality of life.

BUILDING BLOCKS FOR YOUR HOME

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

India may be a vast country, having a population of quite a thousand million. Several are while not owned shelter. When independence, the serial governments addressed this drawback with varied government-sponsored programmes. They’re targeted at poorest of poor, and homes with barest facilities were provided.

The problem was too giant to be met with government alone. The govt. of India established National Housing Bank, below the supervising of reserve bank of India. Regular business banks, co-operative banks, were additionally directed to lend for purchase/construction of homes. Within the starting one.5% of progressive deposits of business banks throughout 1988 was earmarked for housing finance sector, that was increased to three throughout the year 1999 and future years. The banks got freedom to exceed this stipulation relying upon their resources. The abate of economy, slump within the demand for loans from company sector involuntary banks to sharply market housing loans. Within the course of the time, banks have overtaken the housing finance firms in market share. The straightforward accessibility of finance, the tax advantages extended by the union government and exaggerated earning/spending capability of bourgeoisie; principally wage earners have fuelled the expansion of this vital sector.

Change of mental attitude

Owning a house, antecedently was the last priority, principally at the time of retirement from out of terminal advantages savings collectively may seldom realize the suggests that of finance the purchase/construction. This mental attitude has modified. The children in early twenties are earning substantial salaries, with exaggerated outlay capability. They like to have homes out of borrowed funds, that is repaid over a amount of your time. This helps them to avail of lower interest rates and additionally tax advantages for extended amount.

Legal Scrutiny Report and Valuation

It is vital to possess de jure established possession of the property to avail of the Housing Finance. The applier ought to have all the documents to ascertain his title to the property. He ought to verify the documents accessible with him/or with the vendor and ideal the title to the property. Finance establishments can believe the legal scrutiny report of their advocates on panel. Visible of the severe competition within the field, several establishments are ignoring the importance of the legal scrutiny, and title to the property, and ar giving a lot of importance to the compensation capability

Apart from good title to the property, the valuation of the property is additionally vital, supported that the loan part are going to be determined. The banks have approved valuers on their panel, who can price the property and hit the market price.

Loan quantity

Many establishments have a most ceiling of 1 crore-per party. The loan depends upon the value of construction, land, purchase price, stamp duty, registration charges, legal charges and additionally alternative extra expenses. The borrowers might ought to bring is ten to fifteen of the value as margin cash. There ar establishments, that finance full price while not demand on margin cash. additionally to those parameters, the financial gain of the applier, repaying, capability of all the borrowers ar being thought-about most quantity that a personal might need is 10-15 lakhs, for an honest house, that is among the reach of average earner.

Repayment Schedule

The loan is to be repaid in monthly instalments comprising interest and principle known as equated monthly instalments (EMI). the number of compensation remains a similar throughout the complete tenor of the loan.

In case of construction, the loan quantity is disbursed in instalments relying upon the progress of construction. The regular compensation commences when the completion of construction or when the termination of sure stipulated time. Interest for intervening amount, from the date of loan to the commencement of equated monthly instalment is named pre-EMI. This should be paid quarterly or monthly.

Realestate matters

Though the repayments offered vary upto a most of twenty years, it's preferred to avail of the amount of 10-15 years, considering the interest rates, tax advantages and compensation capability. The compensation amounts of five years attract significant monthly instalments, that sway be burden; in compensation on the far side fifteen years, one should pay significant interest. There are establishments, which provide compensation amount on the far side twenty years additionally.

Certain banks have special schemes, below that any surplus quantity accessible could also be paid although in way over equated monthly instalment with facility to with draw such quantity just in case inevitably. The account operates sort of a current/over draft account. this could be helpful for business folks. Such schemes ar known as home equity loan Saving Schemes, wherever by paying off the loan earlier substantial quantity of interest is saved.

Interest

At present interest rates are terribly low the loans are accessible at 7.25% however there are signs of interest rates hardening. There ar 2 differing kinds of interest rates floating and stuck.

Floating Rate

Here the rates aren't constant, however keep dynamical. There are joined to promote condition. They’ll increase or decrease. This floating rates has reached all-time low and there might not be additional reduction. The loaning establishment’s ar terribly reluctant to depart this world the advantages of reduced interest rates to borrowers. They adopt completely different strategy to stay the borrowers paying higher rates. In most of the case the recent receivers pay higher rate than a brand new borrower for an identical loan.

Fixed rate

This is speculated to stay mounted through the tenor of the loan. Mounted rates are on top of floating rates however several banks/housing finance firms have “Force Majeure” clause in their agreement, which provides absolute powers to vary the mounted rates.

In general, the mounted rates for loans of long tenor, floating rates for loans of short tenor could also be most well-liked.Many provide a mixture of each mounted and floating, wherever some proportion is charged as mounted or balance as floating.

 

Reducing Balances

Reducing balance suggests that the amount at that the instalments collected from borrowers are attributable to the loan account. In annual reducing balances the monthly instalments collected are attributable to the loan account once in an exceedingly year. In monthly reducing balance they're attributable on a specific day of month; and in daily reducing banks, it's attributable on a similar day. Annual reducing balance is generally pricey, wherever as daily reducing is that the best? Several have monthly reducing balance, and few have daily reducing balance.

Hidden prices

There is no transparency in Housing Finance sector. Except interest the receiver should pay process charges fee, however several alternative sorts of fees, like administration fee, review fee, etc. additional the rates at that these are charged are not clear. In such cases, although the interest rates are low, the hidden prices increase the burden. As explicit earlier, interaction with borrowers would facilitate.

Switch over

The borrowers have an choice of switching from floating/fixed to alternative mode on payment of sure penalty. Typically it's 125th on the outstanding loan quantity. However recently, the finance establishments have exaggerated fee for switch over. Whereas switch over, contemplate the penalty owed, the loan balance, the speed of interest accessible and therefore the balance compensation amount. If the balance compensation amount if short it's not wise to change over.

Transfer of Loans

The borrowers can also transfer the loan to alternative establishments that take over the loans. several borrowers transfer the loans to avail the reduced interest rates accessible. The interest rates throughout 1990-2000 were terribly high. just in case of transfer of loan, the receiver should pay some prescribed fee calculated on the outstanding loan. except such fees, the establishment, that takes over the loan, charges process fee, legal charges etc. they'll provide some extra loan additionally. However avail of such extra loan solely just in case of absolute want. whereas transferring the loan exceptrate of interest, calculate the transfer fee, processing/legal fee, and mode of reducing balance adopted by the establishment, that takes over the loan and hidden prices. If the balance compensation amount is tiny, transfer isn't suggested.

Tax advantages

Home loan borrowers have 2 sorts of taxation benefits:

1.Rebate on compensation of principal and stamp tax and registration charges.

2.Deduction of Interest

The stamp tax and registration charges paid and compensation of principal is eligible of rebate on a most quantity of Rs. 20,000/- among a over all limit of Rs. 70,000 below section eighty eight of taxation act 1961.

The interest paid in an exceedingly financial year on housing loan is allowed as deduction below section 24 of the taxation act 1961. the most interest allowed at deduction nowadays is 1.5 lakhs just in case of self-occupied house. this is often per individual. If there are quite one receiver, with definite shares in property, every might avail of this deduction, subject to his share, with a most ceiling of one.50 lakhs. There’s no such ceiling just in case of properties, that ar let loose. Any quantity of interest paid on the loan is allowed as deduction, and therefore the financial gain from the property by means of rent is assessable.

Insurance

Apart from insurance of property, against fireplace, riot, civil commotion, several insurance firms provide term policies on payment of single premium. These term policies cowl risk surely amount and repays the loan just in case of any lose of lifetime of receiver.

Selection of Financier

Housing finance is most simply accessible credit product. All the business schedule banks, co-operative banks, extend finance for purchase/construction of homes. additionally there are housing finance firms specialised during this line. Several of those establishments are focused in railway and concrete centers. There’s severe competition. Normally the rates of interest in housing finance firm’s are slightly on top of banks. Although there's intense competition, there's no transparency in Housing Finance trade. It’s higher to act with borrowers of various loaning establishments and choose the most effective. If one may be a regular client of any bank, it'd be higher to borrow from such bank. 

Civil lawyers

While choosing the finance establishments, examine the speed of interest, charges for shifting, hidden charges, transparency, and accessibility to the finance establishments. Several establishments operate through direct commerce agents, and therefore the borrowers can seldom have an opportunity to act with the officers of the establishments. Additional there's little of choose between any 2 establishments.

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SELECT A FINANCIER TO FINANCE THE PURCHASE OF YOUR PROPERTY

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

You need up-to-date in mind bound parameters whereas choosing a financier and so take a call consequently. It’s actually troublesome to induce the most effective in every of the subsequent parameters and so some type of compromise must be done on the premise of your priorities.

The parameters are mentioned below:

Type and Tenor: whether or not the financier is providing a loan product to fit your necessities. Whether or not the financier is providing the tenure of loan that you just are searching for. 

Rate of Interest: this could depend upon the kind of Rate of interest that you just are searching for i.e. mounted or variable rates of interest. you want to continually compare the effective rate when taking under consideration all direct fees etc. and also the manner of interest calculation. i.e. monthly reducing, annual reducing etc. 

Advocates

Minimum and most Loan Amount: The minimum loan quantity offered by a financier is vital to seek out if the financier will finance the quantity you're searching for. Most HFIs have a higher limit on the quantity that they'd finance. If you're searching for a really huge amount, this might be an element that must be thought of. 

Minimum and most Age of Customer: you'll have to be compelled to take into account this issue to ascertain if you match into the age norms arranged down by the HFI. This could additionally kind a parameter in your call on deciding a HFI to finance the acquisition of your house. 

Maximum Permissible LTV Ratio: the utmost loan that you just would get as regards the worth of your house must be checked out. THE parts of the worth would even be vital. 

Minimum Income: The financial gain norms of the HFI are a relevant parameter that will have an effect on your call. 

Realestate matters

Requirement of private warrantors: Some HFIs implement a private Guarantor. You would like to examine this out if you have got any reservations regarding providing a warrantor. 

Requirement of Co-owners: If you plan to shop for your housealongside a co-owner, you'll have to be compelled to check whether or not the HFI accepts the connection between you and also the co- owner. 

Requirement of Co-applicant: As mentioned for co-owners, the HFI can also implement solely bound relationships as connection your application as a co-applicant. This must be verified whereas electing a financier. 

Pre-Payment Charges: Some HFIs charge bound defrayment charges once you arrange to pay your loan either partly or fully. 

Processing Fees: HFIs charge bound fees as process fees that you just can have to be compelled to pay at the time of submission ofapplication. 

Administrative Fees: As mentioned on top of, HFIs additionally charge body fees on the loan quantity that has been approved by the HFI. This could vary from one HFI to a different.

Credit Documents: the kind of credit documents that HFIs implement before approving your loan would dissent from one HFI to a different.

Maximum age of property at the time of application: If you're shopping for a property on resale, this parameter would be a very important one as HFIs might have a limit on the age of the property at the time of disbursing the loan. 

Pre-approved property list: Most HFls have a pre-approved list of properties accessible that the documentation would be easier.

Pre-approved list of employers: HFIs might have special rate if you're a worker of 1 of its most well-liked list of employers. 

Pre-approved builders and comes list: HFIs can also have completely different norms of documentation if you're shopping for a property in any of their pre-approved list of builders. HFIs, as mentioned on top of for builders, can also have separate schemes certainly comes. 

Pre-approved Professionals list: HFIs might have bound schemes to suit customers of bound professions. 

Civil matters

The above mentioned are a number of the parameters that you just can have to be compelled to consider before electing your financier. Obtaining a financier who would give you the most effective all told of the above parameters is nearly not possible. You would, therefore, have to be compelled to determine your priorities and check up on that financier would provide you with the most effective possibility.

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