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The Hindu : y>Read the IT Act carefully, whip out your calculator and work out some smart calculations

The benefits available for home loan repayment under the Income Tax Act, 1961, if appropriated towards the interest paid on loans, will bring down the effective interest to 6.5-7 per cent. Here is an effort to substantiate the same.

The income tax benefits available for home loan borrowers are:

Under Section 24 of the IT Act 1961, interest paid up to Rs. 1,50,000 is set off as loss from salary/business income, for self-occupied property (if property is acquired earlier to April 1, 1999, interest up to Rs. 30,000 per annum is allowed).

For rented out property, entire interest paid is deductible from taxable income after computing the rental income. If loan is availed for house renovation, interest up to Rs. 30,000 p.a. is allowed as deduction.

Under Section 80C, home loan borrowers can claim deduction up to Rs. 1,00,000 from taxable income on the loan repaid during the year (along with specified saving instruments).

The entire PEMI interest amount (the interest amount paid during construction period), is allowed as a deduction under Sec. 24, equally over five years (20 per cent of total interest paid), starting from the year in which the construction is completed.Registration cost

Under Section 80C, along with other specified savings and home loan repaid, the amount spent for stamp paper and registration cost on registering house property up to Rs. 100,000 is deductible from total income.

Let us analyse the benefits for Ashok, who is working in a MNC with a taxable income of Rs. 900,000 p.a. He needs to pay income tax of Rs. 180,250 as per the slabs applicable for the assessment year 2009-10, as per Table A.

Plus, there is education cess of 3 per cent on the income tax payable.

10 per cent surcharge, if the taxable income is Rs. 10 lakh and above.

For female assessee, the…More

The Hindu :

What goes up has to come down. On a high since 2005, Indian property market descendedin 2008 with prices falling by 15-20 per cent.High interest rates regime and economic slowdown, coupled with the ripple effect of the U.S. sub-prime crisis, cooled off the overheated realty sector to some extent, forcing developers to adopt cost-cutting measures, such as deferment of projects, salary cuts and layoffs.

Developers, big or small, faced huge liquidity crunch as both end-users and investors shied away from the market. The sector’s woes got further accentuated from the kind of battering it received at the stock market, with its share price falling like ninepins.

The fall in sales volume was so sharp that turnover and profit of almost all the companies started to decline from the first quarter of 2008, which became more pronounced as the year progressed.

“In 2008, the Indian realty sector took an unprecedented body blow. There has already been an overall drop of demand to the tune of 45-50 per cent,” real estate consultant Jones Lang LaSalle Meghraj Chairman and Country Head Anuj Puri said. The prices of residential units fell by an average of 15-20 per cent across the country and a similar trend was witnessed in rentals for retail spaces.Discounts

The slump in demand forced developers to offer discounts and freebies to boost sales. But that did not helpthe industry, and it sought government’s help to come out oftrouble.

The Centre did not disappoint the industry and announced lower interest rates for home loans up to Rs. 20 lakh, which prompted the developers to focus on affordable housing.

It was all well till the end of the last year and realty majors including DLF, Unitech and Emaar MGF were all set to raise huge capital from domestic and overseas markets in 2008 to fund their massive expansion plans. But the mood changed within a…More

The Hindu : y>MUDA and MCC have announced a slew of measures that will prevent Mysore from going the Bangalore way, says R. KRISHNA KUMAR

The year just gone by was notable for the downturn in the real estate scene and the virtual collapse in transaction in properties in Mysore. But what will be the New Year like?

Though analysts say the downturn will continue through greater part of 2009 before stabilising, there are at least a few new developments in the offing that should prop up Mysore’s image as an investment destination in the years ahead.

This confidence stems from many factors including the initiative of the city planners. Taking note of the chaotic growth of Bangalore, the Mysore Urban Development Authority (MUDA) and the Mysore City Corporation (MCC) have announced a slew of measures that will prevent Mysore from “going the Bangalore way.”For smooth traffic flow

The immediate objective of the local authorities is to shore up infrastructure to prevent the traffic congestion on roads. So, on the anvil is a Comprehensive Traffic and Transportation Plan (CTTP) for Mysore. To be unveiled by June 2009, it will have short-term, medium and long-term transportation policies based on technical, economic and financial evaluation.

The CTTP is being prepared by ICRA Management Consulting Services Ltd. (IMaCS) and it will have a comprehensive mobility plan for all sections of society, including pedestrians. It will provide for convenient and cost-effective accessibility at speed and better comfort, a factor which is evaluated by investors and genuine home buyers scouting for property in any place.

With a 30-year timeframe, the CTTP will help rationalise the existing system and optimise the resources but will not alter the heritage profile of Mysore. The onus will be on better public transport system with improvement to the existing fleet, improved services, good connectivity and higher frequency which is expected to reduce the dependence on private mode of transportation.Wooing…More

The Hindu :

Matching your door design with the overall theme of the interior is one more of the latest trends in decor

Fix huge embellished doors as in temples, grab attention from customers for an art that is completely hand made, create ‘space’ illusions by fitting glazed/glass doors, preserve a heritage as in traditional homes in Kerala, or simply hint at the status of the owner with exquisite Chettinad handcraft… doors mean different things to different people. But given the present-day lifestyle, it brings us to the topic of matching your door design with the overall theme of the interior.

Consider the dizzy choices: Wood, plastic and steel doors with swinging, sliding, side-hinged, revolving, and folding types; louver doors; flush door; French doors; Dutch doors; and the Kerala speciality ones. This is where Arya Bhangy on Residency Road in Bangalore comes in. The door company from Kochi, with nearly five decades behind it, specialises in custom-made embellished wooden doors for entrance and pooja rooms.

Says George Thomas, MD, “We cater to all sections of customers who can spot ‘traditional beauty,’ which is what “Arya Bhangy” means in Malayalam. It is a myth that only the rich go in for flamboyant, grandiose entrances. If your purse is not heavy, we will provide you with a quality substitute with minimum designs that has the same elegance.”Steel doors

Radha International, the Indian dealer for Mexin Steel Doors of China, has a novel eco-friendly concept, for, it could help spare the green cover and see the metal being put to re-use. This recyclable feature, if not biodegradable, is what gives the whole affair an edge over natural timber, as far as the environmental depletion concerns go.

Says K. Balaji of Radha International, “Our doors are fire and burglar proof. The Sino-U.S. joint venture Mexin Group thought of the 18-gauge galvanised steel for doors which has received a good response in…More

The Hindu : y>It isn’t easy for any Indian to forget the year 2008. A recollection by K. SUKUMARAN

Harsh realty: Signs such as these were common the whole of last year

From the terror that recently struck Mumbai to the economic crisis plaguing every sector, including real estate, the country hasn’t been spared of anxious moments in 2008.

The global economic crisis following the U.S financial meltdown, which had its germination in the real estate sector, was the single most unforgettable event of the year 2008. The Americans called it a simple ‘sub-prime crisis’ whereas itturned out to be much more than that. The “over-ambition” of bankers was considered the cause for the housing debacle, though the builders and developers who went on large scale unhealthy expansion should be equally held responsible. The central banking system which failed to supervise and control the unbridled growth should be held equally liable.

The most dangerous happening in India was the “quick money” making trend. Everyone wanted to make a fast buck from whatever field was open to them. The anxiety to corner property in order to gain the advantage of rising prices could be seen in every conceivable act — buying of land, building houses and flats/ apartments, developing housing colonies etc.Goldmine

While the cost of houses went up due to high price of construction materials, landowners including farmers quoted very high prices for their land when builders and developers sought to buy them. The Government too raised the taxes and levies, including service charges on construction, thus milking the ‘kamadhenu’ non-stop. The slump in the equity market propelled investment in property. Even speculative investment among the ‘land sharks’ grew by leaps and bounds.

The reverse mortgage facility provided by banks to senior citizens to pledge their house and obtain loans without making any repayment, to support old age needs, was a landmark in the Indian property market during the…More

The Hindu : y>These heat-tolerant succulent plants are ideal for our tropical conditions, writes Hema Vijay

Grove effect: Adeniums make a good choice as bonsai

A grove on a tray? That’s right, this trio of adeniums standing together makes for a great ‘group’ or ’grove’ effect. Adeniums, the succulent plants popular with landscapists, make for a good choice as bonsai too. These heat-tolerant succulent plants are ideal for our tropical conditions, and their swollen, succulent base add an element of interest as well. Besides, adeniums produce very attractive flowers too. Standing tilted at a slight angle, these plants with their long trunks summon feelings of relaxed informality, simultaneously hooking up images of a soothing shoreline, with the trees swaying to the breeze.

To accentuate the shoreline effect, Indira Mehta, who has raised these plants, has placed a few corals by the side of the adeniums. The plants have been raised on a mound to create a mini hill befitting the bonsai. Make sure that the container is flat so that the height of the hilly mound shows up. You can also allow a few tiny plants to spring up on the soil around it to complete the grove effect.

Planted on ground, the adenium plants in the picture would have grown to 6 to 12 feet, but raised in a tray here, their height measure just over a foot. Many people have found keeping the plant alive hard; the reason could be that the plants have not been given adequate sun exposure. The plant can be itchy or even poisonous to people and pets, so keep them out of reach.

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The Hindu : y>Transactions where property is purchased in the name of wife or unmarried daughter will not be considered as benami, writes C.H.Gopinatha Rao

A residential property can be purchased in the name of wife or in the joint names of husband and wife . If the property is bought with the funds provided by the husband, but registered in the name of his wife for IT purposes, legally, the wife will not be treated as the owner of the property.Any income earned from the house will be clubbed with the husband’s income for the purpose of income tax to be paid by the husband. Transactions where property is purchased inthe name of wife or unmarried daughter will not be considered as benami.

Benami transaction is oneby which property is transferred or registered in the name of a person but the consideration is paid by another. It occurs when people want to park their unaccounted money or avoid payment of taxes. By Benami Transactions (prohibitions) Act, such transactions are punishable and all properties held by benami are subjected to Government acquisition without payment of any damage or compensation.

In addition,wife should not buy property by investing the amount she has received as gift from her husband or from her in- laws. However, she can avail loan to make up for the shortage of funds even from the spouse or her in-laws, provided she pays reasonable rate of interest to the loan availed. If the property is sold, the wife has to sign as the vendor. Any taxes arising out of the sale has to be paid by the husband only. If the property is sold within a period of 36 months from the date of acquisition, the profit earned out of sale will fall under short-term capital gains and will be added with the husband’s income.

If the property is sold after 36 months, the gain made…More

The Hindu : y>Meet Vasumathi Raghunath who has bagged awards for her tiny garden 12 times in a row, says RANJANI GOVIND

— PHOTOS: BHAGYA PRAKASH K.The big, green collection: You name it, Vasumathi Raghunath has it in her garden.

Decades ago, I brought several plant-cuttings from Nasik and denied myself drinking water as I had to feed my green babies in the scorching train journey, says the passionate garden lover Vasumathi Raghunath, who proudly takes you across her green collection that even sports a rare variety of Carolina Jasmine from the U.S.

“Every other kind of Indian Jasmine too — Sooji mallige, Rama Bana, Mulle, Iruvantige, Gundu mallige and Nitya mallige — spreads a distinct aroma when I sit in the shade here,” she says. It is 12 times in a row now that she has bagged the Best Prize for ‘Small Ornamental Garden’ given by the Lalbagh Horticulture Society in the Home Garden Category. “The experts at Lalbagh say it is for my collection maintained healthily in a small home plot,” explains Vasumathi.Creepers, shrubs

Her 70 x 60 plot on Police Station Road in Basavanagudi, covered more than half by her variety green garden, is in a sense dense and closely packed with trees, creepers, shrubs, flowering plants, cacti, succulents and ornamental plants. That she has managed to bring in a small pathway, a rocky and pebbled water cascade, some hangings, creepers and variety palms and a tiny carpet of lawn area to lend aesthetics to the space is a wonder that speaks of her taste for an assortment fare. A miscellany of plants and shrubs, a medley of the flowering range and a mixture of trees and stunning range of ornamentals are what makes up her nearly five decades of effort. “My garden has 500 varieties with 350 being ornamentals. Roses from 70 pots on my terrace add to the visual delight,” she says….More

The Hindu :

Real Estate Bank India (REBI), India’s largest network of property outlets with a global as well as a pan-Indian presence, launched Property Guru on Wednesday in city.

REBI claims that it is India’s only comprehensive magazine for all realty requirements. It promises to be the only monthly magazine to offer a comprehensive approach to residential and commercial property and real estate in India and cover issues concerning residential/corporate real estate, facility management, architecture and design.

Lakshmi Narayan, President and CEO, REBI, said, “We are currently witnessing an interesting state of affairs in the Indian real estate industry. We have the expertise to offer all property-related services on a single platter. We believe this is the most opportune time to launch Property Guru as there is an inherent, fundamental necessity for a credible, comprehensive source of real estate information.”

The online version of the magazine iswww.mypropertyguru.in and it includes information for end-user occupiers, developers, building owners, asset managers, real estate investors, architects, designers, facility and property managers, service providers and product suppliers.

Along with the magazine and portal, REBI and UV Animation have joined hands to provide a “state-of-the-art” set of marketing solutions for the real estate industry. Geo Reference Modelling (GRM) is an innovative way to showcase real estate projects to a global audience.

Call 99004 45543 or emailkv.yadunandan@rediffusionyr.com for further details.

LASHIKA MEHTA

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The Hindu :

Granite and marble flooring are passé; vitrified tiles rule the roost now

Granite, which once sold like hot cakes, has taken a beating, thanks to the cheaper option that customers found in vitrified tiles. Costing almost half the price of granite, they have become a favourite flooring option among builders as well as customers. Vitrified tiles are ‘man-made tiles’ unlike granite and marble, which are completely left to the mercy of the nature. Marble too, which was once a favourite option thanks to its milky white look and ‘cooling abilities,’ is being given a step-motherly treatment now.

Whether they like it or not, granite dealers like Praful Mody of Super Granites Limited accept that vitrified tiles have a larger market share now. “Though the demand for granite has increased manifold with new real estate projects, it cannot be denied that vitrified tiles have made their mark,” he says.

What has made the tiles appealing to customers is their ability to imitate marble, granite or even carpets! Another reason is that, unlike marble, which ‘yellows’ over time, vitrified tiles are much better in handling any kind of abuse or low maintenance.Steady fall

According to Shyam Sunder of Shanti Marbles, the demand for granite has seen a steady decline especially in the last two months. Attributing the decrease in demand to the financial tsunami that has affected almost all sectors, he added that vitrified tiles are a preferred choice. This is mainly because of two reasons: affordable pricing and also because the work gets done faster.

While a square feet of vitrified tile costs anything between Rs.40 to Rs.100, a square feet of granite begins for no less than Rs. 80 and goes up to Rs.200 depending upon the finish.

Though the attributes of granite and marble may be many, the fact remains that granite suppliers and manufacturers such as Shyam Sunder have certainly felt the pinch.

“In…More