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The Hindu : R.P. DESHPANDE

There may not be a need to press the panic button. A sub-prime crisis may not create a financial disaster in India, due to many valid reasons

Playing it safe: All banks must have the credit history of customers before advancing a housing loan.

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 three weeks we brought out an introduction of the underlining history of the financial crisis in a powerful economy and explained the rigours of sub-prime lending. Later there was a scrutiny of the policies and approaches that has landed the world where it is today. This week the author takes you through an explanation of why India may still be inside the safety net and not get into a financial disaster.

Unlike in the U.S., where the economy depends on few large factors such as mortgages, gold reserves, petroleum products, atomic energy etc., India’s economy is widespread and largely agriculture based and exposure to mortgages is much less. Further, growth of the economy is less than three per cent in the U.S., whereas fast developing India’s growth is 8-9 per cent. In the U.S., where mortgages are as high as 60 per cent of GDP (Gross Domestic Product), in India the mortgage sector is at a nascent stage and presently mortgages constitute about seven per cent of our GDP. However, the increase in mortgage lending is significant,growing from Rs. 10,000 crore of home loan disbursals in 1999-2000 to Rs. 135,000 crore in 2007-08.

The mortgages portfolio is much less compared to overall loan advances and as such, Indian banks and HFCs…More

The Hindu : K.SUKUMARAN

The Govt. and RBI hope that the latest package will revive the housing sector

The global financial market meltdown and its effect on the Indian economy has forced the Reserve Bank of India and the Government to initiate some more measures for uplifting the sagging economy. Let us examine the details of the ‘stimuli” and its possible effect on the housing sector.

The main accent of the RBI’s stimuli is on interest rates. The Government’s package is a mixed bag — additional budgetary expenditure of Rs. 20,000 crore, tax/duty cuts and increased lending by public sector banks.

The major policy announcements by the Reserve Bank made on December 6 are: Reduction in repo rate to 6.5 per cent and reverse repo to 5 per cent; housing loans up to Rs. 20 lakh to be treated as ‘priority sector’ lending; refinance of Rs. 4,000 crore (details to be announced after the meeting of RBI Board, slated for the current week) for the National Housing Bank for financing construction, purchase of dwelling houses under the priority sector to individuals/families; five per cent ceiling on housing sector priority quota within the overall priority sector lending, such loans sanctioned up to March 31, 2010; concessional treatment to commercial real estate lending and consumer loans extended up to June 30, 2009.Interest war?

Even before we read the news item in the morning papers, television channels beamed the decision of ICICI bank to reduce interest on home loans to 11.5 per cent from 13 per cent, a hefty reduction of 1.5, on housing loans up to Rs. 20 lakh.

While the general public may be carried away by this high speed action, since the ongoing interest rate movements are a by-product of the ‘stimuli’ to the sagging fortunes of the Indian economy as a result of the global meltdown, other steps are necessary as a follow-up measure.Govt.’s package

The Government came…More

The Hindu : y>Developers are looking at a range of emission reduction options, from double-glazed windows and doors to external solar shading, writes M. Dinesh Varma

As inter-governmental responses to tackle global warming gather urgency, changed perspectives on climate change are bringing in several innovative tools and technologies.

And with the correlation between “unintelligent” buildings and rising carbon emissions becoming irrefutable, engineers, architects and developers are looking at a range of emission-reduction options, from double-glazed windows and doors to external solar shading.

An India-U.K. seminar on sustainable building and design hosted by the British Deputy High Commission and featuring a high profile trade mission from the U.K. sought to propagate the state-of-art in eco-friendly engineering and design to Indian counterparts.

Setting the tone for the seminar, the British Deputy High Commissioner for South India said that carbon emissions were no longer a problem of transportation or power generation alone. “There is a need to “look at our own homes and offices.”

As Mr. Connor pointed out, generally accepted statistics indicate that an estimated 14 per cent of global emissions are from inefficient buildings.Joint ventures

The realisation about the importance of sustainable buildings was increasing among real estate developers in India, says Ramesh Nair of Jones Lang LaSalle. From their single asset and stand-alone approach, developers were now becoming more open to joint ventures, multi-city projects and a portfolio-based outlook, he said.

In scale, the Indian office space segment — estimated to aggregate 100 million sq.ft. by 2012 — was an irresistible market for the U.K., especially given its ongoing campaign for green buildings, Mr. Ramesh Nair pointed out.

As far as environment-friendly construction materials go, the double-glazed glass windows and doors offered a viable tool for energy conservation, said C. J. Kohli of Bassra Machine Tool, which has developed some of the most stringent testing and factory production standards for toughened glass. The double-glazed UPVC windows and doors had the potential to…More

The Hindu :

Particle boards are now being increasingly used in a wide range of settings. And some types of boards are tough and moisture-resistant.

Wide range: A variety of boards are available in the market

The scarcity and spiralling prices of timber have forced the building industry to look at alternatives that satisfy quality expectations within the budget. Particle boards have come to occupy a central place in the wood-substitute market with their adaptability, easy workability and economy.

Another reason why these boards have caught on in the market is their environment-friendliness. Manufactured from wood waste, they do not add to the burden on natural resources.

Particle boards are produced by combining powdered wood shavings and saw dust. These wastes in the wood industry are pressed together with special adhesives to form a uniform surface with tensile strength for use as boards and panels. They are produced as sheets in usable sizes. Though unfinished particle boards do not resemble wood, a layer of veneer gives them the right look, finding favour with interior decorators and builders. But a serious setback is that particle boards quickly absorb moisture and crumble easily when wet.Cement-bonded boards

However, cement-bonded particle boards are strong. Used as flooring material, false ceilings, partitions, half-partitions and so on, they are attractive in institutional setups where safety is a big concern. The cement-bonded boards withstand all kinds of conditions.

Since they do not absorb moisture, they can be used even in adverse weather conditions.

Generally, particle boards come in two versions — the plain and the laminated types. Prices vary according to the brands, which are several. Enquiries show that a plain particle board costs between Rs.20 and Rs.40 a sq.ft. The prices also vary according to the thickness of the boards, which ranges between 0.5 and 0.75 inches.

Cement-bonded particle boards cost much more, given their qualities. They come in various sizes and thickness. The thickness varies…More

The Hindu : y>The height of these plants remains less than 15 cm, writes HemaVijay

Tiny but elegant: Mame bonsai is the smallest among the miniature plants

See these tiny trees? The cascading jade, slanting croton with curly branches, multi-trunk Chinese bamboo, flowering mini-Christ thorn, slanting wild fig and upright pencil cactus and the mini-Christ thorn again (arranged from top left to bottom right)… these are Mame bonsai, the smallest among the miniature plants themselves.

Also known as Shohin bonsai, the height of these plants remains less than 15 cm, and sometimesmay be just 3 cm tall! Actually, these are quite easy to raise, assuming the necessary measures are taken. Boxwood, variegated hibiscus, adenium, miniature pomegranate and ixora are suitable to grow as Mame in our weather conditions, says Molly Cherian, who maintains a nice collection of Mame bonsai.

The Mame bonsai trees seen here are around five years old, while the bonsai fig is just a few months old. Trees with small leaves are selected for growing Mame bonsai.

And choose tiny ceramic pots of just 3cm depth, with drainage holes and small feet to prevent water logging.

A mixture of compost, garden soil, cow dung and sand are used for potting. The soil should be porous. Avoid very fine particles.

Protect the Mame from excess heat by spraying and frequent watering, warns Molly. Pinching the shoot tip and cutting the root tip is useful to grow them compact. Cut off the roots coming out of the drain hole. Wiring method is very rarely used, Molly says.

Take heart, all these stringent efforts will bear fruit; the Mame Bonsai are ready for display much faster than other types of Bonsai. So then, do you want to hold a tree on your palm?

<FONT …More

The Hindu :

Careful balance of paints at the workspace can inspire workers and visitors which in turn can enhance output

— Photo: K.R. DeepakVisual appeal: Let the spirit of your business reflect in the choice of colours.

Painting an office or workspace is a delicate act that demands careful balancing of colours to suit its ambience and employees’ mood. “Colours act on the psychology of a person,” says P. Uday Shankar, architect.

“They have the power to influence a person’s mood and thereby their productivity and creativity. The moment one steps into an office ambience, the kind of paint used should give the right feel,” says Mr. Shankar. “The colours used should be sober, provide a good feel and not be harsh and heavy on sight,” he suggests. However, it is a subjective issue and usually depends on the kind of workspace. When it comes to choosing colours, most employers are in two minds. They find it difficult to maintain the ‘right’ balance.Inviting

How do we ensure that our office space is inviting and pleasant for employees and visitors, while at the same time make sure it retains its professional look and feel, is the question that troubles most employers.

Overall ambience is more important, says Mr. Shankar. The kind of colours one plans to use depends on theme, design and atmosphere of a particular workspace. “Even the activity performed in a particular workspace is important,” he says. Showrooms need a different colour scheme when compared to a software firm.

Even among showrooms, the type of their clientele needs to be taken into consideration. A shop selling clothes, shoes or jewellery needs to have a different colour composition from one selling cars or high-worth items. When it comes to the traditional and conservative workplaces like legal firms, banks and software companies, the kind of colours used should be pleasing, sober, calm and quiet. “It should suit the…More

The Hindu : y>With monsoon come problems such as leakage, seepage in roofs and walls and flooding of floors. How to set it right? Some tips by A.R. Santhakumar

— Photo: K. Murali KumarDevelopment pangs: When roads are laid above plinth level.

After every bout of rain and during rain, every building reveals its limitations and defects. The defects are not normally observed during sunny days. Leakage, seepage in roofs and walls and flooding of floors are some of the typical problems. One resolves to take care of the problems right before the next rains, but the question many would ask is how to go about doing it?Roof slab and balconies

Terraces, top balcony slabs, canopies and mouth of rainwater pipes are places where water can stagnate and cause problems. In many households, the terrace is the most abused space and residents dump all kinds of waste materials here.

You must keep the terrace clean of debris to ensure smooth flow of water. Otherwise, water will stagnate and seep into the building and cause deterioration.

The level of drain pipe mouth should not be above the terrace level. The stagnated water seeps into these gaps between the slab-pipe and affects the adjoining beams and columns. Clean up the area before monsoon and provide gratings so that muck does not get into the drain.

Water tightness of areas in contact with rain splash is the prime criteria for design and construction of exposed roof, water tank or sump and foundation in contact with water. There are at present quite a few effective membrane systems for water proofing.

The desirable properties required for such membrane applications are: good bridging property, good adhesion, and ability to reseal itself, ability to withstand water pressure, durability and ease in application.

The following are a few of the systems currently used for such applications:

1. Built-up-membrane 2. Polyethelene mastic 3. Bituthene membrane 4. Liquid polymers 5. Sheet rubber…More

The Hindu : S. VISHWANATH

Huge blocks of flats in cities can provide supplementary water requirement, manage floods and reduce pollution of the environment

Simple techniques: Storing rain and rooftop water in apartments has now become easy

Apartments are mushrooming all over our cities with the boom in the housing sector. These apartments place a huge demand on the infrastructure of the city, be it water, sewerage, stormwater drains or roads. By designing systems carefully and investing in sustainable technologies, apartments can provide supplementary water requirement, manage floods and reduce pollution of the environment.

Consider this large set of apartments in Koramangala which has eight blocks. Six of them have a roof area of 1,000 square metres and two of them have a roof area of 2,000 square metres. The flats are to a large extent dependent on borewells for their water requirement. Car washing in the basement is a significant water consumer. The apartment block wanted to implement a rainwater harvesting scheme to get enough water for the car washing purpose.

Rooftops are ideal catchments for rainwater. If they are clean and allow rainwater to runoff to the down pipes, it is more than enough. In these apartments, the rooftops were ideal catchments.

Down pipes bring the rainwater to the stormwater drains. They should ideally be separated from the sewage and grey water lines. The National Building Code recommends that rainwater pipes be separate from other waste water pipes to prevent overflowing manholes and also to prevent overload of the sewage treatment plants. Many apartments, due to faulty design, tend to merge the two. Here the case was exactly this. The rainwater pipes therefore had to be de-linked from the sewage pipes.

The down pipes were now connected to large rain barrels of 10,000 litre capacity in the basement. The harvested rainwater is to be used for car washing, gardening and other non-potable use. A total of 1.75 million…More

The Hindu : y>Unfinished realty projects are increasing the risk of loan delinquencies,write C. Shivkumar and Anjana Chandramouly

To no avail: Banks are persuading borrowers to settle their dues

Banks have begun stress testing their realty assets as delinquencies in loan service payments are mounting. Bankers say that many banks are facing overdues on some of the past realty loans and some home loans.

The slippages noticed were mostly through an increase in overdue debt service payments for up to one month. In the past, overdue payments were very low.

Bankers said that in at least 10 per cent of the home loan accounts, they had experienced such slippages. Two years ago, when rates were low, the slippage was minimal, only about two per cent.

Such slips in debt service payments notwithstanding, banks see little need to classify the accounts as sub-standard assets.‘No cause for worry’

Vijaya Bank’s Chairman and Managing Director, Albert Tauro, admitted “There is an increase in debt service payment slippages. But this is not an immediate cause of worry.” This was because despite the overdue payments, they were yet to reach the threshold level of 90 days. Assets are classified as non-performing only if the debt service payments were overdue for more than 90 days. Besides, for most banks, realty and home loans comprised less than five per cent of their gross assets.

Bankers said some realty projects had been left unfinished for want of buyers, increasing the risk of loan delinquencies. As a result, most of them were limiting loans to the realty sector to contain risks and assessing potential risks through stress testing of the assets. Stress testing implied assessing the potential for asset delinquency. This was on the rise in several public sector banks.Rising NPAs

Bankers are resorting to moral persuasion, persuading borrowers to settle their overdue payments. However, despite such efforts, NPA accounts have been on the rise. In the second quarter…More

The Hindu : R. BALAJI

Invest in land on the outskirts of cities and enjoy high returns

— Photo: H. VibhuWise move: Land can serve as an excellent avenue for investment even in a depressed market.

The recent global meltdown has left many with heavy losses besides making them shy away from any immediate fresh investment. The mood prevailing is one of extreme caution, a wait and watch approach. Even those who choose to invest are unsure about the returns as well as the safety of their investments.

Given the present sentiment and bleak market conditions, it seems prudent to gauge the liquidity of a varied set of investments, taking into consideration their future potential appreciation.

Traditionally, the chief avenues of investment were precious metals in the form of gold and silver, while land absorbed most of the large investment portfolios. Over the years, this got diversified to include stocks and securities where the returns can be highly unpredictable, dictated purely by market considerations.

While precious metals like gold, silver and platinum continue to serve as safe avenues for investment, where the liquidity is high and the returns are not too unpredictable, they still fare low on the preference list for larger chunks of investment. This is chiefly due to the fact that the return from precious metals is far lower, ranging from 4-5 per cent per annum as compared to other avenues.

Bank deposits have continued to be a favourite, especially amongst the older segment of the population, yielding a safe, steady rate of nine per cent per annum. The liquidity factor too is high here when compared to land or even shares and securities which are highly speculative in nature.Wrong notion

Recently, given the level of real estate activity, fancy developments have been attracting a lot of investment, both genuine as well as speculative. Investing in an upmarket apartment seemed to be best way of ensuring not only…More