News

The Hindu : R.P. DESHPANDE

Franchisee network, doorstep service, rush for huge portfolios… many novel concepts failed to work for banks

Unwise: Some banks funded beyond the repayment capacity of housing loan applicants.

The financial crisis of the U.S. has had an effect on the economy of the whole world. The property sector has been impacted in a telling manner and this is the reason PropertyPlus thought it appropriate to bring to you a detailed explanation of the U.S. debacle so that it is understood in the right perspective.

In the last two weeks, we gave an introduction of the underlining history of the financial crisis in a powerful economy and explained the rigours of sub-prime lending. This week, we take you through a scrutiny of the policies and approaches that has landed the world where it is today…

In any system, there will be both positive and negative factors. Instead of taking a cue from positive factors from ‘traditional approach’ policies, many new generation banks and housing finance companies (HFCs) thought of writing a new credit manual, which might have helped them to grow overnight, but in the longer run, it has created irreparable losses.

Since MNC banks and a few private sector banks, who preached a ‘new generation approach,’ started unfair competition leading to unhealthy and unethical practices in the banking circles, the transparency hitherto prevalent started getting murkier each day. The fundamental approach of banks being ‘custodians of public money’ was put in the backseat and ‘improving the bottomline of the bank, at any cost’ became the order of the day.Grave mistake

It was a novel idea to employ highly educated MBAs from prestigious institutes so as bring in expertise, professionalism and create a new business model, but not properly training them and not giving them sufficient exposure was a grave mistake. Creating young business heads at local or regional level, and giving them power to…More

The Hindu : y>When a local body makes a private road public without informing the plot owners, what can be done? A look by C.H. Gopinatha Rao

Imagine you had bought a plot in a private plot layout thinking it would be exclusive and the access road would remain private.

But after a while, the local body decides to make the access road public without informing you or the association of plot owners. What happens then? How do you go about reviewing the local body’s decision?

The judgement delivered by the division bench of the Madras High Court in the case of Kanagam and others vs Commissioner, Coimbatore Corporation and others, in February 2008, would serve as a guide.

The propertyon Race Course Road, Coimbatore, was subdivided into various plots with a 20 ft. wide private passage belonging to the petitioners who purchased different plots sold by the earlier owner.

They had the rights to use it as a private passage to approach their respective plots from the main road. The subdivision was approved in 1975.Reclassified

The plot owners were aggrieved by a resolution passed by the Coimbatore Corporation in 1986. The Corporation declared that the private passage would be reclassified as a common pathway on the grounds that one of the owners in the layout remitted an amount of Rs.31,813 for laying roads, drainage culverts etc. The resolution was not publicised in compliance with the provisions of the Coimbatore City Municipal Corporation Act.

As per the provisions of theAct, if any street has been levelled, paved, metalled and has drainage and lighting, such street shall on the requisition of majority of the owners be declared as a public street. The Commissioner will publish the declaration in the District Gazette.Rule not noticed

The owners of the plot filed a petition against the resolution passed by the Corporation. The single Judge dismissed the petitions. On an appeal, the division bench of…More

The Hindu :

PHOTO: MOHAN SRENIVASANGET COLOUR-CONSCIOUS: It’s not rare to see dark glowing shades that speak of both fashion and beliefs.—

Gleaming orange, lemon yellow, electric blue, soothing shades of green…all colours wonderful for a painting, but how do you like them painted on the walls of your house? Hold your breath, for, they are the ‘colours in vogue’!

Consider the interesting reasons. Says Amaresh H. of Malleswaram, “Dark colours are ‘in’ and the world of fashion also said the whole year saw shades of orange making the rounds. Didn’t you notice Rohit Bal’s summer collection in Mumbai where the oranges made a mark?” But Amaresh prefers the fashion shade on his home wall? “Why not?” comes his pat reply.

“The hues are to be used, the medium doesn’t matter. Be it a fabric painting or your wall shade, the latest is to be adhered for being ‘in’,” says Amaresh, who has the front elevation textured in a mix of orange, cream and green.

If that’s a response of glamour and fashion, there’s something more to chew on as Vaasthu believers have something more to say. Says M. Ratnamala of Ulsoor, “I have my house painted with orange at the entrance, light yellow in the drawing and a dark carroty shade for the elevation. The serenity of the God’s quarter took a crystal white with eye-catching green for the central roof, while the entrance wall cladding has earthy terra cotta on it. Apart from visual appeal, Vaasthu also recommends the ‘shubha graha colour package’ of green, yellow and white shades but advises on avoiding the use of violets, blacks and flaming reds.

RANJANI GOVIND

<FONT …More

The Hindu : y>

Drapery

Hunter Douglas Window Fashions has introduced Ballette™ Drapery Sheers, which cover windows and doors up to 4800mm wide, to its line of high quality window fashions for the Indian market. Ballette™ Drapery Sheers provide privacy without traditional vertical vanes. Generous translucent folds create a dimensional layer and with a pull of the cord, the sheers rotate and draw open to reveal the outside view. The edges will not fray, so there are no visible hems anywhere on the shading.Foray

KARVY Realty (India) Limited (KRIL), promoted by the Karvy Group, has entered the Chennai market after setting up offices in Bangalore, Hyderabad and Lucknow. Its services include real estate portfolio advisory services.

<FONT …More

The Hindu : K. SUKUMARAN

Will the recent terrorist attacks mar real estate investments in India?

Most of us consider the interest rate as the key factor affecting real estate prices. While a combination of factors can affect the demand and consequently prices, terrorism can be the most lethal market buster.

Commenting on the terrorist attack on Hotel Taj, Trident-Oberoi and Nariman House, the Singapore Prime Minister expressed the view that investment in India can be adversely affected by the developments. The then Finance Minister, P.Chidambaram, admitted that the Mumbai siege may mar the mood of the investors and could have negative impact on investor sentiments at least in the short run, but the Indian economy has the strength to overcome it fast.

The rating agency, Standard and Poor, however, does not expect any negative impact on India’s macro economy. The terror strikes, they say, are isolated incidents.

Percy Mistry, economist and head of an expert committee on making Mumbai an international financial centre, which recently submitted a road map for the same, is reported to have stated that the terrorist attack can erode investor confidence. What is the factual position relating to property prices?

Investment in real estate mainly depends on the risk perception. Risks are from many angles. First and foremost is the safety of one’s investments and the return for it. Next, the class of investor/s who contribute a good percentage of the investments in property. In the case of Indian real estate, individuals form only 10-15 per cent of the transactions, especially from the volume point of view.Few alternatives

Surveys have shown that the institutional investors form around 40-45 per cent of the value of deals done in the last 3-5 years. Banks, finance companies and software firms own office premises in major cities as they plan for medium to long-term benefits.

If this is true, risk perception will be high in the short term. Yet,…More

The Hindu : D. MURALI

Your priority should be to get a home you can afford

A sinking feeling is inevitable even when there is no flooding around, if your EMIs are gobbling up the bulk of what you earn. To those who are keen on staying away from such an eventuality, Gregory Karp prescribes a simple thumb rule: your mortgage payment and associated costs should not exceed 29 per cent of your gross monthly income.

“This includes mortgage principal and interest, real estate taxes, and home owner’s insurance,” he explains in ‘Living Rich by Spending Smart’ ( www.landmarkonthenet.com). “An even simpler rule is the mortgage should not be more than 2.5 times your gross income.”

Mortgage affordability calculators abound on the Internet, the author guides. “Run your numbers through a dozen of them to get a feel for what price range you should be looking at.”Make comparisons

Buying a home is most likely the single biggest purchase you’ll make, so it’s worth doing research, advises Karp. “Know the housing market, read about and compare mortgage financing options, always do the math on whatever home-buying topic comes up.” If you’re not willing to do the learning and work, you’re not ready to be a responsible homeowner, he declares.

Built-up real estate, as presented on brochures and promotional literature, can be enticing. But don’t think ‘dream home,’ the author cautions. “You may one day live in your dream home, with the luxurious back porch, the granite countertops, or the whirlpool bath, but it’s unlikely to be your first home or even your third.” He insists, therefore, that your priority should be to get something you can afford, and then work on trading up or improving the house you have. “While home shopping, avoid the temptation to visit homes for sale outside your price range.”

After much research, you may yet decide to continue renting. The reasons behind such a decision…More

The Hindu : y>

The sentiment for real estate remains low in cities such as Bangalore, Hyderabad and Pune and a property price correction to the tune of 15 per cent is expected, according to a report by ‘99acres Insite’ released by the property portal 99acres.com

The prices have fluctuated over the past year and most localities across the cities had seen a dip in the prices. The report compiled the asking rate and the price demanded by the buyer/broker.

Delhi NCR, Gurgaon and Noida remained bearish with marginal increase or decline in prices while Mumbai and Kolkata have been stable with asking prices seeing a fluctuation within 10 per cent. Mumbai suburbs have seen a greater fluctuation. Chennai remained the only market bullish on realty with prices appreciating in all localities in the last quarter.

The Delhi market included hot spots in the southern and eastern part of the city as well as other popular investment and housing localities like Noida, Greater Noida and Gurgaon. South Delhi, Vasant Kunj and Lajpat Nagar have seen an appreciation over the year. In Noida, prices have shown some volatility in popular sectors such as 50 and 61 with a variation to the tune of 10 per cent.

Mumbai has been a relatively stable market in the last one year with rates exhibiting marginal increase/decrease in most localities. Kolkata has seen a price decline in popular localities in the southern region of the city.

Bangalore witnessed volatility in some localities in the first quarter of this year.

<FONT …More

The Hindu : y>The housing scene in Mysore is witnessing a perceptible shift in the way citizens live and invest in property, says R. KRISHNA KUMAR

— PHOTO: M.A. SRIRAMthe trend: Luxury apartments and gated community enclaves are proliferating in Mysore.

While the thumb rule among investors is to opt for sites for independent bungalows and houses which continue to command a premium, the landscape of Mysore has slowly but surely begun to alter with the proliferation of high-rise apartments. These apartments are coming up in localities renowned for spacious roads and lung space with greenery, including Jayalakshmipuram, Gokulam, Kalidasa Road, V.V.Mohalla, Saraswathipuram and Lalitha Mahal Palace Road.

A concept that was unthinkable just a few years ago, apartment culture is gradually gaining acceptance but still has a long way to go till it reaches a point where housing is equated with apartments.

But the developers perceive a demand for apartments and have already invested heavily and among them are the Brigade Group which has eight properties in Mysore which the company claims are fully booked. The other players in the field include Sobha Developers, Purvankara and Saijayani.

But the biggest project that is set to alter the perception of housing in Mysore may be the Sankalp Central Park where at least 900 residential apartments in a cluster of numerous high-rise buildings are coming up on what was earlier the Ideal Jawa motorcycle factory plant in Yadavgiri. Spread over 27 acres, the project, to be completed in three phases, is an integrated residential-cum- commercial development. It will have luxury apartments with a spread of amenities and a nine-acre mall with multiplex, sport and gaming facilities.

While the citizens are still grappling with the changes, a few players in the market are already promoting what has been described as the “next big thing” in Mysore: Gated community living.

Notwithstanding the criticism against gated community as being socially exclusive and perceived to…More

The Hindu : y>Rocks can be used to great visual effect to produce the feeling of wilderness, says Hema Vijay

A touch of novelty: The tree sports sandpaper-like leaves.

Try breaking through into a rock. We can, of course, blast it into bits with dynamite or drill through it electrically, but channeling a slender needle space into it is a tough job. Imagine doing it with your finger or toe tips.

On the other hand, plants manage this with élan; root tips do it routinely, their fragile appearances notwithstanding.

The curious fact about this is, roots often bore into the tiny cracks and crevices on rocks without breaking the rocks apart. Wilderness does have a lot of lessons on display for ‘civilised’ society.Focused action

Metaphors apart, how do those slender roots manage it? Root tips secrete certain acids which dissolve the rock at the point of contact. Talk about focused action! And since rocks are so reminiscent of untamed nature, rockery can be used to great effect to bring in the feel of the wilderness.

Choose a porous rock or one with a coarse surface, with interesting, but untouched looks. This 22-inch tall, 3-year-old creek sand paper tree raised by Bhagwan Sarathy is in the rock-clinging style (ishe-zuke) of bonsai.

To get started, first visualise the looks of trees growing in the mountains and hills.

Select a plant with long roots and drape a portion of the exposed roots of the plant over a sturdy rock kept protruding from the soil in a shallow clay tray.Be patient

Cover it with peat muck, or a thick paste of moss and soil. If required, use a metal gauze (that allows the peat muck to breathe) to hold the peat muck firmly around the roots draped over the rock. Then what? Patience.

In a few months, the roots will begin to cling on to the rock, and in some yearswill penetrate through the rock and…More

The Hindu : y>With a little effort, one can spread a banquet for butterflies in the garden, no matter how small it is, says Swathi V.

Lively and vibrant: Butterfly watching is fast catching up. Pink, purple, and yellow flowers attract them.

Ever thought of a concert of colours in the courtyard or terrace or even balcony? No, here the reference is not to seasonal flowering plants; not in the least to flowers. If one cares enough, the performance could be from winged guests flitting from plant to plant and flower to flower in graceful circles, splattering the green with every imaginable hue and pattern. Yes, with a little effort, one can spread a banquet for butterflies in the garden, no matter how small it is.It also could initiate one to a new hobby of butterfly watching that is fast catching up among youth.

“Spiralling construction activity and pollution in the city has resulted in drastic reduction of butterfly population. However, with a little effort and careful planning, one can still have them visiting your home garden,” says S.Tej Kumar, President of the Butterfly Conservation Society.Common species

He lists Jezebel, Common Crow, six species of Pansy, Red Pierrot, Grass Yellow, Lemon Emigrant, Mottled Emigrant, Baronet, Common Mormon, Crimson Rose, Crimson Tip and Common Rose as the commonly found butterfly species. However, attracting butterflies to your garden could be a tricky business, considering that they do not appreciate any and every plant, even if it has a plethora of flowers. For example, roses, gladioli, dahlias, chrysanthemums, begonias, hydrangeas and lilies do not attract butterflies though they have resplendent flowering.

Nectar-producing plants are a major draw for them while host plants that will support a full cycle of butterfly life including eggs, caterpillar and pupa stages are most welcome. Most of the plants capable of attracting butterflies are natives and do not require much attention.

“Plants such as Lantana, curry leaf,…More