Is Pune still the Oxford of the East?

http://www.sakaaltimes.com/sakaaltimesbeta/20111205/4704413316152401302.html

Sakaal Times - Is Pune still the Oxford of the East?

Two factors have contributed to Pune’s emergence and predominance as a centre of excellence in education. The first was the presence, over the years, of stalwart figures like Phule, Gokhale, Tilak, Karve, Agharkar and others; and later, the establishment of some of the finest institutes of learning and research in the city. By the mid-90s, Pune had been called the Oxford of the East. But are we still so ? Sakàl Times finds out.

WE HAVE LONG WAY TO GO, MORE NEEDS TO BE DONE

Yes, I do believe Pune is entitled to be called the Oxford of the East, but we still have a long way to go, and much more needs to be done to come up to internationally acceptable standards as far academic excellence is concerned.

It is not as if we do not know what needs to be done. The Union HR ministry, the AICTE, the universities, all have viable plans, but our systems are slow.

My institute has just signed an MoU with the Statfordshire University in UK. We will be exchanging students and faculty. There must be more such tie-ups to bring Pune on the world academic map.

The initiative lies with both private sector as well as the government. If Pune is to retain its position as Oxford of the East, we will have to attract students not only from all over the country, but from all over the world.

Capt. Shivaji Mahadkar, honorary secretary, All India Shri Shivaji Memorial Society

PUNE PROVIDES AFFORDABLE AND QUALITY EDUCATION

Pune is still the most sought-after city for Indian and overseas students aspiring to pursue higher education. Hence, even today we can boast of being the Oxford of East. The education imparted in institutes here is the best in terms of quality, yet it is affordable to all. This is an unique feature of our educational system, and the reason why the city shines on the global map.

Dr Gajanan Ekbote, president, Progressive Education Society & former pro-vice chancellor, Maharashtra University of Health Sciences
LET US NOT COMPARE OUR EDUCATIONAL STANDARDS WITH FOREIGN UNIVERSITIES

As it was in the past, Pune remains the educational capital of India even today. But I believe we should not draw any comparison between education offered here and that in any eminent foreign universities.

If we refer to history, Nalanda and Takshasheela vidyapeeths in India were the global hubs of education in the olden times. Taking inspiration from that, we should try and carve our own distinct identity by offering high quality education in all streams of knowledge.
Dr Vishwajeet Kadam, secretary, Bharati Vidyapeeth Deemed University, Pune

STUDENTS FROM INDIA AND ABROAD THRONG TO PUNE

Yes, Pune is still recognised as the Oxford of the East because a number of quality educational institutes are being established here even today. Students across the country and around the world are attracted to the city due to the wide range of professional courses, quality education and academic environment here.

Dr R G Pardeshi, principal, Fergusson College

PUNE LEADS IN IT AND BIO-TECHNOLOGY TOO

The city is indeed the Oxford of the East! Earlier, it pioneered in imparting education in

streams like Arts, Commerce and Science, and now Pune leads in professional education as well as newer streams like IT and biotechnology. In my opinion, the city scores over many renowned foreign universities, in terms of the number of educational institutes as well as the quality of education offered by them.

P A Inamdar, president, Maharashtra Cosmopolitan Education Society

FACILITIES AND ACADEMIC ENVIRONMENT HELP INTELLECTUAL GROWTH

Pune is still the Oxford of the East. The literacy rate in the city is on the rise. The infrastructural facilities and academic environment are also conducive to intellectual growth. Pune has a good number of colleges and universities, which offer various kinds of opportunities, especially in research and development. There are facilities that help students acquire super-specialisation skills required over and above the professional skills that are already available, like knowledge of a foreign language, additional computational tools, access to industry for practical projects and so on. Students also get exposure to the global scenario in their respective fields, as they share space with foreign students who come to study here.

Sanjay Chordia, founder-president & chairman, Suryadatta Group of Institutes

WE HAVE BEST RESOURCES FOR MEDICINE AS WELL

Pune was and still is the pioneer in the field of education and can be aptly identified even today with the sobriquet, the Oxford of the East. As far as medical education is concerned, Pune has the best resources too. The city is producing doctors whose expertise are acclaimed all over the world. Also, medical colleges in Pune have been producing the best faculty that have a thorough understanding of the field. All this makes Pune a global leader in education.

Dr Mrudula Phadake, former vice-chancellor, Maharashtra University of Health Sciences

THE NUMBER OF OUTSTATION STUDENTS IS RISING RAPIDLY

Among other cities in India, Pune is still the most preferred destination for education. Over a period of time, we have witnessed a marked rise in the number of educational institutions in the city. The number of outstation students, who come to Pune to pursue their studies, has also been growing rapidly. Therefore, we can proudly say that Pune today is the Oxford of East, like it was in the past.

Dr Anil Sahasrabudhe, director, College of Engineering Pune

MODERN AND ANCIENT STUDIES GET PRIORITY HERE

Yes, it definitely is the Oxford of the East. No other city in the country holds the status of being the Oxford of the East. It’s not only due to the large number of educational institutes, but also because of the quality of education imparted here. Along with modern branches like engineering, medical, computers and so on, it’s a prime centre for archaeological studies as well. Historical institutions like Bhandarkar Oriental Research Institute, Bharat Itihas Samshodhak Mandal, Tilak Maharashtra Vidyapeeth, University of Pune and Deccan College Deemed University have retained the quality of research and education. Pune has the right combination of research centres of modern studies and ancient art and culture. Mushrooming of educational institutes and colleges in the city has not affected the degree of excellence in education; in fact, Pune has maintained its standard of education.

Dr G B Deglurkar, president, Deccan College Deemed University

WE SHOULD BECOME A MODEL FOR OTHERS

Pune is known as the hub of education, not only at the national level but also on the global map. However, we have to strive hard to keep this status intact. The quality of education offered by our institutions here should be of the international level or say even a step ahead, so as to become a model for others to emulate. This would only ensure that Pune remains a preferred hub of education.

Dr AV Patwardhan, chairman, Deccan Education Society

NO OTHER INDIAN CITY CAN DO JUSTICE TO THIS TITLE

As of today, Pune has retained its identity as a centre of education and culture. When we compare it with other cities in India, none of them is on a par to hold this title. I have visited Oxford and Cambridge universities and I can say that in spite of various problems like environmental pollution, vehicular traffic, increasing population and so on, Pune is competent. There will come a day when Western countries will look at India, Pune in particular, for a value-based universal education system. I believe in the prophecy Swami Vivekanand made in 1893 that India will emerge as a knowledge corner of the world in the 21st century, and I think Pune will be its knowledge centre.

Dr Vishwanath Karad, founder, MIT group of institutions

(Inputs by Prasad Joshi, Supriya Shelar, Prachee Kulkarni & Shashwat Gupta Ray)

NOT OXFORD, PUNE IS THE BOSTON OF THE EAST !

Dr S B Mujumdar, Chancellor, Symbiosis International University, recalls, “It was in the late 50s that the then prime minister of India Pandit Jawaharlal Nehru play casino happened to visit Pune and saw several constituent colleges affiliated to the Pune University, and he commented that Pune appears to be the Oxford of the East. That was the genesis of the sobriquet.”

“But I think we need to re-think on how accurate that label is in the present context. The vice chancellor of Oxford University, Prof. Andrew Hamilton was in India this year, and he informed that Oxford has 31 colleges which are all autonomous, frame their own syllabi, and are either self-financing or funded with endowments; only their degrees are given by Oxford. This is quite unlike the situation that now prevails in Pune. We now have one university and seven deemed universities, and therefore it is not quite accurate to call Pune the Oxford of the East,” explains Dr Mujumdar.

“I would much rather call Pune the Boston of the East. You see, Boston in US is an academic center with more than 100 colleges and universities including renowned ones like Harvard, Cambridge and Massachusetts. Pune is more like Boston than Oxford,” he points out.

On a lighter note, he adds, “There is another curious similarity between Boston and Pune. Just as the well known educational institutions of Pune were largely set up by Puneri Brahmins, the wealthy and influential British origin families of New England in US who developed academia in Boston and Harvard are known as the ‘Boston Brahmins’.”

WE NEED A REALITY CHECK TO MATCH GLOBAL QUALITY

Prataprao Pawar, chairman of the Sakal Media Group, an engineer by qualification, who studied in Pune, feels that the city earned the title of the Oxford of the East at a point of time when Pune was the preferred destination for students seeking professional and technical courses which were offered by institutions which had earned a reputation for academic excellence. But that was more than three or four decades back.

“We need to take a reality check. We still do not match global standards, and several institutions in the city do not offer the quality of education that can match industry expectations. We need to be able to match the standards of the IITs and the IIMs,” he points out.

“I am told that 25 % seats were left vacant in Pune. This means the city is no longer the sought after academic destination that it once was. There is a strong need for involving industry to create courses that fulfil existing requirements. Examples like the participative content created with Bharat Forge in a Baramati college, need to be replicated,” he says.

“I am not against commercialisation of education provided there is upgradation of standards of teaching and research. Eventually we will have to contend with market forces,” he adds.

“But honestly, Pune has a long way to go if it has to truly justify the title of Oxford of the East,” he adds.

AMITABH DASGUPTA

editor@sakaltimes.com

EDUCATION HAS BECOME A PROFIT-MAKING BUSINESS
Actor Dr Mohan Agashe feels there is a vast difference between the past and present situation in Pune. He believes that with privatisation, education has become a business with profit as its aim. And that we shouldn’t even talk of Pune being the Oxford of the East.

“The current American pattern of education in the city is way too expensive and lacks professionalism. Degrees can be bought by paying money. Honestly, education in the city has neither quality nor reliability. At present, there are very few institutes that really impart education to students.” He also thinks this is affecting the lot of dedicated teaching professionals. “Moreover, the education today is also widening the gap between the rich and poor,” he says.

THE QUALITY OF EDUCATION LEAVES A LOT TO BE DESIRED

Dr Deepak Shikarpur, an IT entrepreneur and writer, says that Pune has a vast base of educational institutes of global standards and has created an impact as far as the number of institutes is concerned. “However, the quality of education offered here leaves a lot to be desired. Whatever worked in the 20th century need not work in the 21st. We should keep in mind that in today’s technology-driven higher education scenario, history will not repeat itself on its own.” He adds that Pune is a preferred destination for many, including foreign students, but if it has to continue to lead the race, then the focus must be on quality and value-based education.

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Bringing Ravet closer to everything

2 BRT, one coming from Aundh and one from Nigdi, two subways connecting Akurdi , New railway line to connect Pune and Lonavala : what more do you need to become the next centre of the promising PCMC !!!

read the news extracts and happenings around for the concerned news !

Railway under bridge at Akurdi station inaugurated PUNE:

Travel from Nigdi to Ravet will become easier for thousands of people as the second railway under bridge (RUB) near Akurdi railway station has been inaugurated. 

Anil Suryavanshi, executive engineer, PCNTDA said, "The length of subways is 47 meter. The width is 8.58 meter and the height is 4.78 meter. The first new subway was inaugurated in February 2014 which reduced the vehicular congestion on approach roads of the old subway. The second subway was inaugurated by district guardian minister Girish Bapat last week."

 Earlier, residents of newly developing areas of Ravet, Walhekarwadi, Kiwale and parts of Akurdi crossed the railway tracks through a water logged subway to go to Nigdi-Pradhikaran, Pune-Mumbai highway and other areas.  There was a demand from residents of Akurdi, Ravet and Nigdi that a modern wide subway be constructed. The Pimpri Chinchwad New Township Development Authority (PCNTDA) invited bids for the construction of new subway in March 2010 at cost of Rs 8.1 crore.

PCNTDA had planned to construct two separate subways using push box technology for light vehicles and two-wheelers, namely one for going from Nigdi to Ravet and other for coming from Ravet to Nigdi.  http://timesofindia.indiatimes.com/city/pune/Railway-under-bridge-at-Akurdi-station-inaugurated/articleshow/48759306.cms http://m.timesofindia.com/city/pune/PCMC-changes-design-of-Ravet-ROB/articleshow/48460805.cms

PCMC changes design of Ravet ROB PUNE:

The Pimpri Chinchwad Municipal Corporation has changed the design of its railway overbridge (ROB) at Ravet due to expansion of tracks on the Pune-Lonavla section. A third track is being planned on Pune-Lonavla stretch. On July 8, the railway authorities sent a letter to the civic body asking it to shell out Rs 26.51 lakh extra before change in overbridge design is approved.

 As per the resolution, the civic body plans to develop a 45-metre wide bus rapid transit system (BRTS) route from Bhakti Shakti Chowk in Nigdi to Mukai Chowk in Kiwale with Pune-Lonavla railway track crossing it at Nisarga Darshan Society.  The PCMC sought to construct a railway overbridge at this spot for providing easy passage of vehicles. We have just the right project for you Arun BLU

Real Estate slowdown: 5 factors that can revive the sector

http://www.financialexpress.com/article/economy/real-estate-slowdown-5-factors-that-can-revive-the-sector/125918/ Real Estate slowdown: 5 factors that can revive the sector

The real estate slowdown in India appears to be taking much longer to get stable. The sector has been going through a rough phase with inventories piling up and sales down. Declining consumer trust in the sector can be revived if developers exhibit appropriate construction progress in order to avoid fear of delays in completion. To counter sales developers have shown caution with controlled launches. However, if market trends were anticipated beforehand such moves should have happened earlier. Sales of residential units declined significantly over the last two years, particularly in the initial periods.

The number of units that are sold from both new and old projects every quarter form the sales rate, and from 14% in 1Q13 this has steadily declined to below 9% as of mid-2015, thereafter remaining stable at low levels, according to global property consultant JLL India. The report further added that the slowdown trend has been observed in seven leading metros with the situation particularly grim in markets such as Delhi-NCR, where the sales rate has declined by 10%. Despite a big fall in Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12-13%.

Mumbai’s fall was moderate, owing to low sales rate throughout the said period. Suvishesh Valsan, AVP – research & real estate intelligence service, JLL India lists out five broad factors that influence real estate markets, including country’s GDP and employment scene, credit availability, interest rates, housing supply dynamics and consumer confidence. These factors indicate the formula for revival could lie within the reach of builders and policymakers.

1. GDP and employment scene: In contrast to the housing sales rate, India’s GDP has been rising consistently over the last two years from 6.9% y-o-y growth in fiscal year 2013-14 to 7.3% in 2014-15, and is expected to be over 7.5% in 2015-16. Also, the monthly reports of leading recruitment firms in India suggest that hiring activity has picked up pace, particularly in the last year.
2. Credit availability: RBI data on the growth in home loans as well as the growth in credit to the construction sector (including loans to public housing agencies) reveals healthy credit offtake. Home loans have grown at a 17% y-o-y average over the last two years (until May 2015) whereas bank credit given to the construction sector grew at 22% y-o-y – one of the highest levels of all sectors.
3. Interest rates: CPI inflation has declined sharply by around 3% in the last two years and it now stands at 5% (as of May 2015), which is well within the comfort zone defined by the Reserve Bank. Consequently, the RBI has responded with three rate cuts (totalling 75 basis points) since the start of 2015, with a possibility of more rate cuts in the near-term.
4. Housing supply: Developers have consistently launched close to 60,000 units every quarter since 1Q13 despite the slowing demand. As a result, developers’ unsold stock has mounted, particularly in NCR-Delhi, Mumbai and Chennai.
5. Consumer confidence: With above factors portraying a positive picture for the economy, the influence on consumer confidence is positive. This is also borne out by various market reports. However, the rising consumer confidence has not translated into higher demand for apartments.

Real estate slowdown: Key points – Delhi-NCR, where the sales rate has declined by 10% – Pune, Hyderabad and Kolkata, the sales rates of these cities still remain in double-digits at 12-13% – Mumbai fall was moderate, owing to low sales rate throughout the said period. First Published on August 26, 2015 3:02 pm© The Indian Express Online Media Pvt Ltd

Real estate is second largest employer: Siddaramiah

http://www.siasat.com/news/real-estate-second-largest-employer-siddaramiah-819929/Real estate is second largest employer: Siddaramiah   

 Bengaluru: Real estate sector is the second-largest employer in India after agriculture and is slated to grow by more than 20 percent in the next decade, said Karnataka Chief Minister Siddaramiah on Saturday. “Real estate is the second most active sector attracting private equity investors in the last ten months,” he said at the seventh convention of the National Association of Realtors (NAR), touted as India’s biggest real estate convention.

 Zeroing in on the state, Siddaramiah said Bengaluru is the fastest growing city and top real estate market in India beating other big cities like Mumbai, Hydeabad, and National Capital Region (NCR). Leading real estate player Prestige Group’s chairman Irfan Razack said that the real estate industry played a pivotal role in bringing hundred of large global MNCs like Amazon, JP Morgan and many others to come and set up shop in Bengaluru.

Siddaramiah also said that while Bengaluru is known as the IT capital of India, this industry would not have grown without the important role played by the real estate industry. “Bengaluru consumes eight million square feet of real estate space every year and produces 80,000 jobs,” said Razack, adding that the government is the biggest beneficiary of the real estate growth in India as it earns a huge amount of revenue through stamp paper, registration, taxes and others. As many as 1,200 delegates from various nationalities attended the NAR – India to deliberate on the crucial issues pertaining to real estate.

 Realtors, developers, architects, lawyers, investors, venture capital firms, equity funds, chartered accountants, financial institutions, property valuers and others from across India participated in the event. “It (NAR – India) also helped create a platform for over 26,000 companies and 1.2 million members across the globe to network seamlessly and do business,” said its chairman Farook Mahmood.

Why real estate may not crash

http://wap.business-standard.com/article/opinion/bhupesh-bhandari-why-real-estate-may-not-crash-115073001745_1.html

Bhupesh Bhandari: Why real estate may not crash

 Of late, there has been much talk of an imminent crash in residential real estate. The sector is expected to crumble under the weight of high inventories. After the clampdown on black money, fresh sales have come to a halt. Thanks to low sales and the banks tightening the screws, builders are in a financial bind, which is expected to precipitate distress sales. One research house has predicted that this will shave sizeable percentage points off India's growth in the coming quarters. Actually, the sector has been stuck with high inventories and faced a liquidity crunch for at least two years now - and yet, prices haven't tumbled.

There has been some correction, but there is no evidence of a crash. That is because a sizeable number of builders are not highly leveraged, and can therefore afford to sit on unsold stock for some more time. This is how residential real estate works in India. The builder pays for the land and then sells the project. With the money paid by buyers, he carries out the construction. The only cost he has to pay out of his own pocket is the land. And if he is a serial builder, he will buy the land from the money he raised for earlier projects - there is no monitoring of these funds. In Noida, one of the real estate hotspots in the country, he needs to pay only 10 per cent upfront and the rest in installments over several years.

 Many builders who have not been able to sell apartments have simply halted construction, rather than take debt to complete their projects. A majority of projects are therefore behind schedule. Buyers are helpless. Some builders had offered to pay penalties in case of a delay, but the promise comes laden with so many riders that buyers seldom get paid. Those builders who are highly leveraged do indeed have a problem in their hands. While banks had turned their back on them long time ago, NBFCs and private lenders have also started to say no to them. Most of the builders in this category are those who are into commercial real estate as well, where pre-sale does not happen. Such projects are financed out of debt. With the debt tap turned off, and the equity market having tuned cold to real estate years ago, these builders are now desperate. Some large builders I know admit that they are inundated with requests from those in distress to buy their projects.

A Godrej Properties executive recently told Business Standard that his company has been approached by builders who are unable to complete their projects. But not all stuck projects will sell - those in the boondocks don't stand a chance. It is, after all, a buyer's market. Those who have the money will cherry-pick their projects. This might lead to a sea change in the country's real estate landscape. So far, large business houses have stayed away from it. The reasons are obvious: the cash transactions involved in the business, the headache of negotiating a plethora of rules in every market (every state has its own set of rules) and the never-ending speed money. But now they see an opportunity in the large number of projects that have got all clearances but are stuck because of the lack of funds. Trust in builders is really low amongst home buyers.

They are looking for projects that are backed by sound corporations. And that is where business houses like Tata, Godrej, Bharti and Mahindra have the opportunity. In spite of the crisis, the love affair of Indians with real estate is far from over. Projects at the right price (The euphoria over premium homes has died down: not a single premium project has been launched in Mumbai so far in 2015, says a report by Knight Frank!), and backed by respectable names, will still find buyers.

This trend was in evidence earlier this week when Eros, a fairly large builder, tied up with Bharti Realty for a large-sized project on the outskirts of Delhi. It is worth noting that Eros has already executed projects in that area but chose to partner with Bharti Realty for this one. This is a clear indication of things to come - expect more such announcements in the future. Will it mean lower prices for home buyers?

 That may not happen. This is because builders have sharply cut down new launches, and there is a slight uptake in demand. According to Knight Frank, in the second half of 2015, launches will be down 52 per cent (from 37,643 in the second half of 2014) to 18,000, while absorption will improve 24 per cent (from 12,075) to 15,000, which will cause the weighted average price to climb three per cent. The crash in home prices may not happen, after all.

Facility management market to cross $19 billion by 2020: Report

http://realty.economictimes.indiatimes.com/news/industry/facility-management-market-to-cross-19-billion-by-2020-report/48173841
Facility management market to cross $19 billion by 2020: Report

 GUWAHATI: The Indian facilities management market is estimated to grow 17 per cent to cross $19 billion mark over the next five years, says a report. "The swiftly growing services sector is creating huge potential for FM services, which is anticipated to grow at a CAGR of around 17 per cent during 2015-2020 and reach to approximately $19.4 billion by 2020," the report by Global Infrastructure Facilities and Project Managers Association (GIFPMA) said.

The report pointed out that various factors such as boom in real estate, increasing awareness levels, growth in retail and hospitality sectors are the major drivers of this sector. "In light of the immense growth potential that the sector promises, many players, including foreign players, have dotted the Indian market... India's service sector is the fastest growing part of its economy," the study said. As per the report, the overall services sector held 33.3 per cent of GDP (at current prices) in 1950-51 and it grew to 64.8 per cent in 2012-13. Commenting on the findings, GIFPMA President Amit Raual said: "Companies are increasingly concerned about the skills of the manpower provided by them with changing needs of the customer...

 It was also found that the qualification and the minimum salary of the manpower vary with the type of service to be offered." As per the report, with administrative and HR departments of around 300 companies across India, 87 per cent of the respondents expect knowledge of basic English, 87 per cent of them expect dress code and 73 per cent expect tidiness and basic etiquettes. "Almost 93 per cent of corporates are concerned about the police verification of the people deployed at sites," he added. Talking about the salary structure, Raual said it varies with the type of service to be offered, which is lower in soft services.

GIFPMA analysis highlights that soft services is dominating the market with the share of about 65 per cent, in which housekeeping and security occupy large shares of 45 per cent and 34 per cent respectively. "HVAC/Electro-mechanical is clearly dominating the hard services sector and is expected to occupy 90 per cent of the market in 2015," it added. As per the report's finding, more than 60 per cent of these services are performed in-house, but this trend is changing rapidly.

 "The corporate sector, especially IT/ITES, BPO/KPO and banking and finance sectors are rapidly inclining towards outsourcing the services," the study said. Research also found out that, currently 80 per cent of the services offered are on a sub-contractual basis, but it is expected that the trend will shift towards integrated facility management as organised players are entering the market.

Should You Buy A House Before Turning 30?

https://scripbox.com/blog/should-you-buy-a-house-before-turning-30/?utm_source=outbrain&utm_medium=contentmarketing&utm_campaign=outbrain_content_distribution_all_feed

Should You Buy A House Before Turning 30?

Many of you may have big dreams before you reach the age of 30, like clearing your debts, getting a promotion, getting married, owning a house, or start saving for an early retirement.
Take one step at a time to avoid getting flustered by the financial decisions you need to make before you turn 30.

A step forward in securing your future is to have a house of your own. To encourage people to invest in residential property, availing home loans is now easier, and the government also provides tax exemptions.

Here are 5 pointers that will help you make the decision of buying a house before you turn 30.
#1: Have clarity as to why you are buying a house
There could be many reasons why you want to buy a house, as a personal choice, as an investment, or out of social pressure.
Buying a house to live in – Most investors believe that you should, “own the house you stay in”. By the age of 30, if you are sure about the city you want to live in, your career path, your family plans, and your disposable income, buying a house is a possible option.
Here’s what you basically need to know to own the house you live in without getting into trouble:

• Affordability to pay at least 30% to 40% of the cost of the house as downpayment
• Clarity on the requirements based on your plans – where you want to live, how many years you wish to stay there and your future family plans
• Stable income to make repayments on the home loan

Buying a house as an investment – If you want to buy a house as an investment option, due diligence is required. You need to:

• Track the rate of price appreciation, and the worth of the property in the current market
• Consider additional costs of buying, owning and selling a house like interest, insurance and maintenance
• Your EMI should typically be not more than 40% of your take-home salary or income

Buying a house because of social pressure – Buying a house because of social pressure, because your parents, family or friends say so, is not a good idea. You need to be 100% certain on your intention to buy, and you should be clear on whether you can afford it. Without this conviction, you may have to compromise on your standard of living, lifestyle and be financially dependent.

#2: Buy a house based on your needs first, and then your budget
You are earning well and invest in a 1 BHK space that fits your budget. In the next 3 years, drastic changes happen; you get a promotion, get married and have a baby. You upgrade to a 2 BHK to accommodate changes. A few years later, your parents decide to live with you and you need to move closer to your child’s school. Moving to a 3 BHK is inevitable.

You realize that every time you moved, although you found a space at a good price, there were additional costs of 2% brokerage and 8% tax. This additional cost of 10% had created financial pressure and it could have been avoided had you planned ahead before closing on that 1 BHK.
When investing in a house, it is natural to check out the price first. While this is necessary, what is more important is to consider if the house meets your requirements. 

The house you choose should cater to your needs not only of today, but also of what you may require after 5 to 7 years. In this way you can avoid unnecessary costs, and benefit from eventually owning the house you live in.

#3: Take advantage of tax deductible options, on the interest of home loans
Under Section 80C of the Income Tax, here’s how you can save tax by claiming benefits on interest and principal repayment of your housing loan:

•  You can claim the entire amount up to Rs. 1,50,000 on interest paid on home loans
• Once you have paid your installments, you can claim deductions on principal repayments up to Rs. 1,00,000
• If you are married, take a joint home loan. This way, you and your spouse can claim deductions separately on interest paid and principal repayment. Which means, together both of you can claim Rs.3,00,000 in interest paid and Rs. 2,00,000 on principal repaid.

#4: Plan repayment with disciplined budgeting
It typically takes around 7 years for a person to repay a home loan in India. Assuming that your salary increases at around 12% per annum, and the EMI on your home loan is constant, only the first few years will be stretch. With disciplined budgeting it is possible to create a successful repayment plan.

• Best time to prepay home loan – In the first 2 to 3 years not only have you drawn on your savings to pay upfront for your home loan, your salary would not have increased and you have very little surplus for emergency needs. Prepayment is advised only after the 2nd or 3rd year when your cash flow pressures have reduced. You could open an Interest Saver’ account, where surplus can be kept while still being available during emergencies.
• Not so good time to prepay – Once your EMI / annual total interest is less than the tax benefit (INR 2 lakhs per year of interest and INR 1.5 lakhs per year for principal prepayment), then one can continue to maintain the loan for tax benefit. The surplus can be invested in financial assets if the expected return is greater than 10%.

For example, if you have a loan of INR 20 lakh, instead of pre-paying in the 1st year, it is better to pre-pay INR 1.5 lakhs each year (principal repayment, adjusted for principal portion of EMI) and take the tax benefit over a 3-4 year period. By pre-paying more than the principal repayment linked tax benefit you lose out on tax benefit.

#5: Be realistic about the returns you expect
Don’t get giddy when your friends say,” There is great wealth that can be made in property investment with the rate of appreciation.”

You need to understand that price appreciation depends on various factors such as location, quality of the construction, connectivity and upcoming infrastructure projects in the area.
The typical expected return on an apartment is about 10-12%, that’s around 8-10% on appreciation and 2-3% on rental. Keep in mind that, on a 12% rate of annual appreciation, if you change your house after the 3rd year, the impact cost will trim down nearly 1/3rd of your gain.

Remember, that you may not be able to have it all, but you need to start early, invest smart and work towards securing your future with proper financial planning.
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These 21 Images Of India Are Never Shown By Foreign Media

http://www.rajnikantvscidjokes.in/these-21-images-of-india-are-never-shown-by-foreign-media/

These 21 Images Of India Are Never Shown By Foreign Media

It’s no wonder that foreign media always puts allegations on India for being a poor country which has less signs of progress or improves very slowly due to corruption, poverty, violence and other issues. And this is what they show in their views about India. However, they must take a look at below 21 images which would surely give them a perfect counterblast in addition to displaying the India which is real but far above and beyond their imagination. What’s more, it’s so beautiful and elegant that they just can’t imagine even in dreams. Besides, once visited, these places will leave foreigners awestruck and mesmerized with their grace.
Let’s take a virtual tour around the marvelous sites:

1. Mumbai’s Chatrapati Shivaji International Airport

2. Ahmadabad’s Sabarmati Riverfront

3. Mumbai Skyline

4. Kerala – God’s Own Country

5. Bangalore – IT Capital of India

6. City of Dreams – Mumbai

7. Hyderabad’s Char Minar

8. Paradise on Earth – Kashmir 

9. City of Lakes – Udaipur

10. Lotus Temple – House Of Worship in New Delhi

11. Chennai’s Highways 

12. Pink City – Jaipur

13. Bandra-Worli Sea Link

14. Yamuna Express Way

15. Marina Beach in Chennai

16. Kolkata

17. Shimla – Summer Capital of British India

18. Republic Day Parade in New Delhi

19. Queen’s Necklace – Mumbai

20. Gangtok

21. Aizawl – Capital of Mizoram

Which of these places did you find most attractive? Don’t you think these images should be used to describe India in place of the one that demonstrate our country as the dwelling place of hungry and poor people? Aren’t these enough to shut the bloody mouth of foreign media which always puts a question mark on India with some issue or the other? Share your answers in your comments!
Source

Developing rental housing as a viable option in urban centers

http://realty.economictimes.indiatimes.com/realty-check/Developing-rental-housing-as-a-viable-option-in-urban-centers/599

Developing rental housing as a viable option in urban centers

Although India’s housing segment accounts for almost 80% of the real estate and construction sector in terms of volume, we continue to have a housing shortage of approximately 19 million units. According to the Ministry of Housing & Urban Poverty Alleviation (MoHUPA), Government of India, the 10 states of Uttar Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Tamil Nadu, Bihar, Rajasthan, Madhya Pradesh, Karnataka and Gujarat constitute about 76% of this urban housing shortage. Around 56% of this shortage is among households from the Economically Weaker Section (EWS) with an average annual household income of upto Rs. 1 lakh, while approximately 40% is among households in the Lower Income Group (LIG) with an average annual household income of Rs. 1–2 lakh. Nearly 96% of this housing shortage, therefore, lies among the EWS and LIG categories of urban India.

A primary reason for this supply–demand mismatch is the paucity of formal housing options for India’s large low income population with low affordability levels. The lack of access to formal credit along with high priced home loans and debt, leave the bottom of the housing market pyramid with little more than squatter colonies, urban slums and unauthorized settlements by way of affordable accommodation options.

Rental housing
To tackle this enormous shortage that is expected to accelerate with rising migrant population movements to urban areas, MoHUPA has been focusing on an affordable housing policy that includes a rental housing interventions program. Despite a housing shortage of approximately 19 million units, around 10.2 million completed houses are also lying vacant across urban India, which may be absorbed within a formal rental housing program to address issues of urban accommodation. Although the larger focus has traditionally been on ownership of housing, the significance of rental housing cannot be emphasized enough. 

Vulnerable population groups either residing in or migrating to urban centers, in need of rental housing for employment or education, include:
• Single students
• Young, single executives
• Newly married couples
• Migrant families, and
• The elderly
Rental housing offers a convenient and cost effective option for all such migrant populations, who may not want to make long-term financial commitment in a city. While the higher and middle income members of these groups have the option of hiring apartments and bungalows in upmarket and middle class residential areas, the LIG and EWS groups are left with hiring rooms and/or jhuggi/jhopdis in unauthorized colonies and urban villages.

Legislative support
According to the Census 2011, around 69% of households in urban areas live in owned dwellings, while about 28% live in informal rented accommodation, and just about 3% in formal hired dwelling units. Taking cognizance of this scenario, a Task Force on Rental Housing was constituted by MoHUPA, whose objectives were to:

• Develop a strategic policy intervention to promote Rental Housing as a viable option;
• Create a legal and regulatory framework to enable Private Sector participation in rental housing; and to
• Improve the financial attractiveness of Rental Housing.

Based on the recommendations of the task force, a “National Rental Housing Policy” is currently under formulation. By way of legislative initiatives, this national policy also includes:
• The Draft National Urban Rental Housing Policy 2015,
• The Draft Model Tenancy Act 2015, and
• Rent Control Act 1992
The vision of the Draft National Urban Rental Housing Policy 2015 is to enable the growth of rental housing in a holistic manner. Its key objective is the promotion of:
• Basic shelter facilities (destitute, homeless and disabled)
• Social Rental Housing for the Urban Poor
• Affordable Rental Housing for specific target groups (migrant labors, students, women hostels, etc.)
• Rental Housing as a stop gap towards aspirant home buyers
• Institutional rental housing for the working class (Government, PSUs, corporate firms, industrial groups, NGOs, etc.)
• Formalization/regularization of Rental Housing on pan India basis
• Facilitate fund flows/incentives to Rental Housing
• Institution/organizations to construct, manage, maintain and operate Rental Housing (RMCs/housing companies, cooperative societies, RWAs, REITs, etc.)
The Draft Model Tenancy Act 2015, meanwhile, attempts to create a framework for the regulation of tenancy for commercial and residential properties. It tries to balance the rights and responsibilities of landlords and tenants alike through rental contracts; and aims for registration of rental contracts with Rent Authorities. The main objectives of the Act, however, will be to:
• Have rent fixed and revised by mutual agreement between landlord and tenant
• Unlock existing properties for renting out
• Address repossession issues in rental housing markets

The Rent Control Act 1992 is slightly skewed towards tenant protection, and is aimed at controlling rent. It tries to protect tenants from eviction and from having to pay more than a fair/standard rent amount. The Act may need to be revisited to make rental housing attractive enough for landlords as well.

The Government is currently working towards the promotion of rental housing stocks through such legislative support. A recommended strategy will lie in addressing issues related to institutional implementation to encourage adoption of the policy at central, state and municipal levels in a time bound manner.


DISCLAIMER: The views expressed are solely of the author and ETRealty.com do not necessarily subscribe to it. ETRealty.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.

Indians are shining

We Indians are eating more, buying more, and consuming more than ever.



http://m.timesofindia.com/budget-2014/union-budget-2014/Budget-2015-Union-Budget-2015/articleshow/46419746.cms

Union Budget 2015: The nuts and bolts of property tax

Do the daily advertisements of fancy residential projects tempt you to buy a house of your own? Home loans are available with suitable EMIs from various banks but do your research and opt for a loan package that suits you best.

TAKING A HOUSING LOAN:

Typically, the longer the loan tenure, the lower is the monthly EMI but higher is the interest outgo. The Reserve Bank of India (RBI) has prohibited banks from levying any foreclosure charges if you pay off the loan prior to its tenure. Once you have the loan in hand, you will be paying a periodical interest and also repaying the principal — in tranches. The I-T law provides for benefits in both instances.

Tax Benefits on interest paid:

Interest payable on 'self-occupied' property is subject to a maximum deduction of Rs 2 lakh under the head 'Income from house property'. Even a loan taken from an employer, friend or private lender is eligible for such a deduction. Booking an apartment which is under construction is sometimes cheaper. The I-T law permits you to claim the total interest paid during the pre-delivery period as a deduction in five equal instalments starting from the financial year in which the construction was completed or you acquired your apartment (generally this denotes the date of possession). Of course, the maximum you can claim as deduction per year continues to be Rs 2 lakh.

Caution point: A certifi cate from the lender is required to claim deduction on interest even if the lender is an employer or a friend. To claim deduction of Rs 2 lakh, it is essential that the acquisition or construction is completed within 3 years from the end of the fi nancial year in which the loan was taken; else the deduction allowed will be limited to Rs 30,000.

Union Budget 2015

Set off your interest payment:

As income from a 'self-occupied property' is nil, deduction of interest, in technical parlance, will mean a loss under the head 'Income from house property'. This "loss" can be set off against other income, which includes salary income, in the same year. This reduces your total tax liability. Any loss not set off within the same year can be carried forward and set off in the next 8 years. However, in the subsequent years, such set-off is possible only against 'Income from house property'. So even if you let out your property next year, this carry-forward of loss can bring a marginal relaxation in your tax liability.

Find all Budget-related stories here



Definition Of 'self-occupied' property: 

Here is some guidance on what exactly constitutes 'self-occupied' property. If you are suddenly transferred to another city (where you live in a rented apartment) your own property will be considered as 'self-occupied'. Also, if you have opted to purchase a new apartment in a tier-2 town where property is cheaper and continue to stay in a rented house, this new apartment would be regarded as 'self-occupied' entitling you to deduction of housing loan interest.

Hot tip: If you have bought the new apartment jointly — say with your spouse — then each of you is entitled to a deduction of Rs 2 lakh, as explained above. In case you have a working son or daughter and the bank is willing to split the loan three ways, all three can avail deduction up to Rs 2 lakh each. Repayment Of Your Housing Loan: The principal repayment of the housing loan made by you is allowed as a deduction from your gross total income (subject to an overall cap with other eligible investments of Rs 1.5 lakh). Please refer to the section on savings.

Caution point: Unlike deduction of interest, deduction of principal repayment will be allowed only if the loan is taken from specifi ed institutions like banks or LIC.

READ ALSO: Black money abroad? Be ready for jail, huge fines

Buying an apartment and your TDS obligations: 

As per the I-T law, the buyer of an immovable property worth Rs 50 lakh or more is required to deduct (and deposit) withholding tax at the rate of 1% from the consideration payable to the seller. In case of failure to comply with the provisions, interest and penalty are imposed on the buyer.

Thus, if the purchase price of your fl at is Rs 50 lakh or more, then you have to comply with the tax deduction at source (TDS) obligations. You will be required to furnish information about the tax deducted and deposited online on the Tax Information Network (TIN) website in Form 26QB (URL is https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp). Further, you will also have to download Form 16B, which is the TDS certificate from the website (URL is https://www.tdscpc.gov.in/app/login.xhtml) and issue it to the seller.

Caution point: If you have booked a fl at and are paying the builder in instalments, but the value of the fl at as per the sale agreement is more than Rs 50 lakh, then tax has to be deducted against each instalment payment. You also need to comply with the timelines for deduction and deposit of TDS and fi ling of the information online and submission of the TDS certifi cate to the builder.

READ ALSO: What goes up, what down Budget 2015

Letting out your second house:

Investing in real estate has become attractive, but make sure not to keep your second house (which is not a self-occupied property — as explained above) unoccupied: it makes better sense from the I-T law perspective to rent it out. Your second house, if locked and empty (with no income accruing from it in the form of rent), will still attract tax on its 'deemed value'. In other words, tax is calculated at expected market rent.



Interestingly, if you let out the second house, you can deduct the entire amount of interest you are paying on it without any cap from the rent received. If there is a loss, you can deduct it from your taxable income. For example, if your interest outgo is Rs 10 lakh and the rent is Rs 6 lakh, you can get a tax benefi t on Rs 5.8 lakh (Rent Rs 6 lakh less: (a) Standard deduction of 30% of rent which is Rs 1.8 lakh and (b) Interest Rs 10 lakh). This is applicable for any number of houses and there is no cap on the amount of deduction you can claim.

SELLING YOUR APARTMENT:

If you sell your house, whether it is self-occupied or your second apartment, you will incur capital gains tax (given that there has been appreciation in property prices, it is unlikely that you will be making a loss).

Capital gains is the difference between the sale proceeds and the cost of acquisition of the apartment you are selling. Further, capital gains can be either short-term or longterm depending on the tenure for which the house was held. A short term capital gains will have a different tax impact than a long-term capital gains (LTCG).

If the house is held for not more than 36 months, on sale, you will incur a short-term capital gain, which is subject to income tax based on your applicable slab rate. If you fall in the lower tax bracket with a tax rate of 10.3%, short-term capital gains will not pinch you. Else you could end up with a 33.99% tax rate.

If the property is held for a longer period, LTCG arise. The cost of acquisition used for computing LTCG is the indexed cost of acquisition (in other words an adjustment is made for infl ation). Tax is levied on LTCGs at 20% (plus surcharge and cess).

Reinvesting in residential property or securities: 

To be able to save tax on capital gains, you must invest the entire LTCG from the sale of residential property in another (only one) residential property in India. Such investment can either be within one year before or two years after the date of sale. You could also construct another residential property in India within three years of the date of sale.

Also, you may deposit the amount of capital gains under capital gains account scheme with a bank in case investment in new property is not made before fi ling of I-T return (not later than the due date for fi ling your I-T return). If the entire amount is not reinvested or not deposited in capital gains account scheme, the remaining portion of the gain will be taxable.

Caution point: Exemption from LTCG will not be available in case the reinvestment is made in more than one fl at, even if the same are adjoining fl ats, or in a commercial property. Further, while the RBI permits you to invest in property overseas (a remittance of $250,000 or Rs 1.5 crore approx per year is permitted which can even be used for property acquisition), if LTCGs are reinvested in property overseas you will not get the tax exemption.

Exemption is also available on investments made in certain bonds within six months of sale. They include Rural Electrifi cation Corporation and NHAI. The maximum amount that can be so invested is Rs 50 lakh.

Hot tip: Such exemption is also available on sale of any other long term capital asset.