Investment opportunities are immense in Indian real Estate

There have been and there will be immense Investment opportunities in Indian real estate industry. India  is one of the fastest growing economies and emergerd as no doubt, a strong economy with its own domestic potential to grow. Naturally the strong economy boosts the real estate sector further. Further real estate companies voluntarily begins to adhere to international standards because of growing professionalism and improvement in delivering services.

The housing and real estate sector in india attracted foreign direct investment of US $ 10.6 billion since a decade and the value of investment in the sector under construction crossed  US $ 100 billoin and 82% of the total capital inflows in the first half of 2011 was for the acquisition of the  land showing the optimisim in the long term growth story of the sector. Comparatively commercial real estate sector is showing recovery whereas the residential housing segment is displaying a rather mixed bag. One positive note in the residential housing segment is stable in terms of prices. For instance, about 46% of the residential units launched across the country in the 2^nd quarter of the calander year 2011 were in the Rs 2000- Rs 3000 per square range.

Tier-2 and Tier-3 cities witnessing strong demand, coming to metros it is estimated that since  September and December 2010 there is a fall in residential launches to 31% in top eight cities. Chennai shows improve in residential activity in the last quarters, whereas NCR Delhi witnessed  48% of new launches in the 2^nd quarter of calander year 2011. Home buyers are waiting for moderate correction in prices so that they are back in full sway. There is a huge demand in the middle income segment for homes in the  Rs 5 to 15 lacs range. There is a enarmous business oppertunites in this segment. If approval process is fast tracked in this segment by the concerned government departments it would result in considerable cost saving for the developers.

Fiscal incentives under the income tax act is a great advantage for investors in the sector. Interest paid on home loan is eligible for deduction upto Rs 1,50,000 and the principal repayment of a loan is eligible for deduction upto Rs 100,000 presently.

The growing interest rate, lack of timely execution of projects by developers made home buyers to slowdown the process to great extent. Moreover   lack of Real estate regulator, lack of urban planning  etc .,are the areas where Government has to address as real estate sector forms 6.7% of india’s GDP. Considering the long term growth story of the Indian economy it can be concluded that, Investment opportunities are immense in Indian real Estate

Disclaimer: The information given above are the result of personal readings of related geniuine magazines and personal understanding of the subject matter. This  is written to make the readres understand, how importance in investing in real estate sector at present scenario in india. However,this blog is not responsible for any error or inaccuracy in the same.

Budget 2012-13

The current budget made tax payers flow mixed responses. Even though the ultimate goal of this budget is to attain balanced and progressive, the rise in service tax from current 10 to 12 per cent offset the gain & eat into whatever savings taxpayers make.The overview of some proposals are as follows.

• Change in tax slabs: This budget witnessed change in tax slabs once again that is in line with the DTC proposal. The table below gives clear picture of the same for the individual aged below 60.

           Taxable income                   Tax Rate(%)
        
           2-5 lakh                                10
           5-10lakh                               20
           Above 10 lakh                      30                          
 Upto Rs 2.5 lakh is exempt from tax for those above 60 years of age and those who are 80 are exempt till Rs 5 lakh.

• No tax benefit for infrastructure bonds: Tax benefits on infrastructure bonds for upto Rs 20000 u/s 80CCF will not be available deapite companies being allowed to issue 60000 crore worth of bonds.
• Life insurance polices : This budget focussed on protection.The polices issued on or after april 1, 2012 will be eligable for tax exemption u/s 80C  and 10(10D) only if the yearly premium in all the years is below 10 per cent of the sum assured.The lock-in period also likely to go up from current 5 to years. Premiums of life & helath insurance will go go up because of service tax on it. There is service tax of 3 per cent on first year premium and 1.5 per cent on the subsequent year's premium.
• TDS on Real estate sale above 50 lakh : The real estate sale  above 50 lakh attracts TDS of 1% which is mandatory. Property registration will not be permitted without proof of deduction & payment of this TDS.
• Reduction is STT: Security transaction tax is reduced to 0.1 per cent from existing 0.125 per cent.
• DTC postpaned : The direct tax code will not be implemented in 2012-13.The finance minister has not commited any particular date but assured that the same will be adopted at the earlist.
• Savings bank interest upto 10000 tax exempt : Apart from banks this benefit is extended to the interst of post office savings account as well as co-operative bank accounts.How ever this exemption is not applicable to interest earned in fixed deposits.

The rise in service tax from current 10 to 12 per cent, rising inflation resulted in offseting the gainand eat into whatever savings taxpayers make. Further, the increase in excise duty to 12 per cent rseults prices of goods will certainly go up.

The Business adventerous story of Legend "Soychiro HONDA"

Soychiro honda was a slim & short guy.He himself presumed that he is like a Napolean, and thought if Napolean can do such an adventure why can't he ?.He was away from his parents & home and was working in a car garage named Art shookay.He was interested of becoming expert in manufacturing Piston rings of Cars.

when things are moving like this, once he thought he got interest,hard working attitude but lack of skill. He enrolled for engineering collage at the age of 35 .He used to go for collage in the morning and returning back to the garage in the evening to applay practically whatever he learnt in the collage.Aftersome time he was thrown out of the collage as he was attending only laboratory classes of car engines & skips remaining classes of other topics.He himself thought that he didn't deserve a degree  and he only deserves skill & knowledge, so that he came out of the collage without any regret.

When it was assumed that his piston manufacturing company was running well, the 2nd world war was started. In 1994 one of his manufacturing unit was destroyed in a bomb attack of america. In 1945 his another factory was destroyed due to a severe earthquake in Mikaava. Later japan faced severe defeat in the war. Due to bomb attack, earthquake & bad consequences of war,  japan's economy was completely fallen. Even Soychiro honda was left with no money to float a new company. But his courage and passion to come up in life was still alive with him. His mind turned towards new innovations.He observed that there was no public transport system, petrol prices shooted up & people used to have only cycles for transport.Then Honda manufactured a small motor & fixed the same to the cycles, later it was popularised like anything and honda named the same as "Motor cycle".

Later honda came up with manufacturing new cycles, those was running faster than each other.The same was attracted by youths all over the world. But still honda never gave up his dream of manufacturing cars and started manufacturing cars once again  in the year 1962. He manufactured the car in the same way,  the wheels were being pulled by chains in the motor cycles.  Then he changed the designs of cars. He arrranged the things to sale his cars in the american market when it was the time that there was no hope  that japan's car could be sold in the american market. Initially there was no proper response but later his cars became the highest sold one in the market as americans were so convienced with the designs & high milage capacity with japan's cars. At last Soychiro honda was passed away in the year 1991 but his popularity still alive all over the world.

This is a wonderful adventerous story of a legend. This is the result of everlasting passion,strong hope in self power,hardworking, strong will and more importantly the attitude of not comprimising with quality under any circumstances. "Hats off to Soychiro HONDA"

Consumer forums are customer centric in India

The Gujarat state consumer commission gave judgement, while hearing the case of a housewife aged 59 years from ahmedabad held that if a diabetic person is diagnosied with heart problems subsequent to taking a policy , the insurance company cannot reject the claim on the ground of suppression of material fact about preexisting disease. A diabetic cannot be refused claim for heart ailments if the policy was taken prior to diagnosis The commission denied the insurance company's claim that because of diabetes the customer suffered from heart problems. Moreover the commission held that a diabetic patient can lead a normal life as usual if the same  is kept under control through proper care and medification.

The insurance company failed to prove relation between diabetes and the blockage in her(customer) artery. The commission asked the company to pay  the medical expenses of Rs 39.90 lakh  at an interest of 9%. the company was directed to pay rs 7000 for the mental agony caused to the patient and Rs 3000 towards the complain procedure.

Beautiful story related to Savings & investments

There was a kingdom wherein a king is chosen for the term of just 10 years only. Once the term of 10 years completed, he will be exiled to a deep forest situated after crossing a sea where there is no connection to man kind. The kings who used to enjoy a lot during their term of kingship at the same time they used sufffer a lot during the time they get exiled foraway. No kings who were exiled earlier came back.even subjects who got lot of advantages from the king during his term never used to show some mercy for the exiling king. instead they were busy in welcoming the new king, who is going to take oath.

As usual, a term of ten years was compleated for a king. He was prepared to exile from the kingdom. A poor boatman who appointed to leave the kings beyond the sea  after making the them crossed the same observed with this particular king surprisingly as he saw no signs of worring in his face.He never saw any exiling kings being happy in his experirnce. While passing on the sea, the poor boatman asked the exiled king, as how come he is more happy eventhough, the king was thrown away. The king onceagain laugheed and said, when he was king for ten years, he got all the powers . With that power he built another kingdom in the deep forest beyond the sea. Now there are lot of people waiting for him to welcome their king. The king said he did this ,because he knew nothing is permanent in this world, even power what he got as king.
Even savings  investment is also like this. When we are capable to earn, one should start saving & investments so that we can lead royal life, once we retire from work as every one of us loose strength one day to work. Let us do the things like this bold & clever king.

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