Tag: Investment Opportunities

Developers in Chennai - Chennai’s Urban Housing Sector

Jul 26

Chennai’s Urban Housing Sector – An Overview

Almost everybody today wants to live in cities because of all the opportunities provided in there. Chennai, currently with over 8.5 Million people is one of them. India’s fourth largest city after Delhi, Mumbai and Kolkata, Chennai has been phenomenally growing as a hub of sectors such as manufacturing, retail, healthcare and IT sectors in the main, in the last 2 decades. Chennai remains a city with great potential for industrial growth, economic feasibilities, quality infrastructure and Governments committed to promoting trade and commerce. It continues to attract people from different parts of the State, country and the world. As an increasing number of businesses, including Multinational majors make Chennai home, the city lures more people to it. Need for homes rise directly proportionate to the rise in the working population in Chennai. Hence, the housing sector has developed very fast in these years to match these demands.

Rising Population And Rising Demand For Housing Sector

Clearly, with rising population the need for houses rise too. Demand for both, houses for rent and ownership continue soaring as Chennai keeps expanding. It is good news for you if you are an investor that seeks returns from rentals. Rest assured of returns on investment in quality residential properties in prime locations. Find below for some great options available for you.
As per a Cushman & Wakefield Report, Chennai’s demand for housing stands at around 444000 units in the period of 2016-2020 and supply stands at a mere 97,000 units. That said, it is equally important to note that market do not absorb properties that fail to demonstrate value for buyers. People refuse to buy properties that are priced higher than their expectations. Similarly, people do not buy houses built in locations that do not serve their purposes. Developers find it financially unfeasible to build affordable housing because funds, land and development come at a high cost. So they find it difficult to build small units at locations close to city centres without hurting their returns.

Developers That Meet Expectations

With the introduction of some measures such as demonetization and GST, a section of people expect to see a shift from the Middle Income Group (MIG) and the High Income Group (MIG) housing to the Low Income Group (LIG) housing currently and in the future. Find below for value-for-money houses.

Socially committed Developers in Chennai stay at the forefront of the movement toward improving the quality of housing for all sections of people. The developers are investing a lot to make a safe and decent place and which is affordable to the people too. The one who have succeeded in building a quality structure at a low and moderate-income housing are more in demand today in the urban housing sector. Market receives the developers who uses their energy and efficiency Market receives the developers which use their efficiencies and energies to create an affordable house rather than those that lack professional expertise in managing their resources effectively to create quality, affordable, urban housing sector communities.

 

villa in OMR - Few Things To Check Before Moving to New Villa

Jul 12

Villas, Apartments Or Plots In Chennai? What Would You Go For?

If you are like Ratheesh, a self-employed, young IT professional, you would opt for a Villa on OMR, in Chennai’s IT corridor. However, if you are like Vidhya, a young Microbiologist with an MNC in Chennai, you would want to own a luxury Apartment in Chennai in a prime location like Pallavaram or Padi, near Anna Nagar. So, what is the difference?

Ratheesh has been an independent-minded person from his childhood. He has always been ahead of the pack. Entrepreneurship was in his blood. Just as financial independence, he wanted to have more space for himself, be it at home or workplace or public place. He does not like anything mediocre. He works for excellence and seeks excellence in everything he does, everything he delivers and everything he buys. He wouldn’t compromise for anything short of excellence. That is why luxury Villas in Chennai such as Alliance Humming Gardens in OMR works for Ratheesh and his likes.

On the other hand, Vidhya too is a successful young professional at the prime of her career and life. Mother of a 3-year old, she wants to live close to her workplace and loves to live in a large gated community of luxury apartments in Chennai. She too loves her privacy, a lot of fresh air, light, open space, greenways, indoor and outdoor amenities as Ratheesh does. So she wants an apartment that would look like and work like a Villa. Besides, she is looking for Apartments in Pallavaram. Alliance Galleria Residences, is right there for her. There are luxury apartments for sale in Pallavaram, Chennai.

Ratheesh is looking to invest in property too. Preferably in DTCP approved plots in Chennai that promise him assured returns. Alliance Villa Belvedere in Oragadam makes a prudent pick for him. The reasons are obvious. (Click here  for more).

The question is what should you go for?

If you want to live in a premium gated community of Villas in OMR, Alliance Humming Gardens in the best option you have currently on sale. Primarily because these are Villas located in OMR rather than in some interiors away from OMR proper. Secondly, these Villas come at a lesser price than regular apartments in OMR. Thirdly, a Villa gives you more privacy and Undivided Land Share than an apartment. You are the sole owner of the whole villa and the plot on which it sits.

That said, apartments, such as Alliance Galleria Residences and Alliance Orchid Springss combine the benefits of living in a large gated community with privacy and luxury. These luxury apartments for sale in Chennai today stand distinct from regular apartments. They are better than regular apartments in terms of quality of construction, the credibility of the builder, compliance standards, quality and range of amenities plus the price at which you can buy them.

What’s more, this is a good time to buy property. Be it flats in Chennai or Villas or plots in Chennai. Do not miss out on the best bargains available in the market today. But make your moves cautiously and with sufficient information. Base your purchase on studied information. Happy purchase!

For further information, please go through the Alliance projects .

 

great homes you can buy for cool price points. - Gst Impact On New Homes In Chennai

Jul 6

GST Impact On New Homes In Chennai

GST subsumes over 16 major central and state taxes, including excise duty, value-added tax (VAT) and service tax into one consolidated tax. Has the property price come down now? Who gets the benefit of GST? Is it you, the buyer, or the seller that gains from GST?

The Government has included an anti-profiteering clause in GST law. The law makes it mandatory to pass on the tax reduction benefit to the customer.

GST HIGHLIGHTS:

• Government has included an anti-profiteering Clause in GST law
• Passing on the benefits of tax reduction to customers is made mandatory
• As per some experts, there will not be much of an impact in the short term

Developers have short-term challenges in this new tax transition period. Some experts do not see much of an impact on prices in the short term. However, the simplified tax structure is expected to equally benefit all the real estate stakeholders in the long term. Property prices are expected to soften by 1-3 per cent. The impact would vary depending on the extent of input credit transferred, cost structure and property completion status.

In the current taxation system development and sale of property attracts a multitude of state and central taxes. For the buyer, taxes applicable and their percentage vary depending on the construction status of the property (under-construction versus complete) and the state in which the property is located.

In case of purchase of an under-construction property, the buyer has to pay VAT, service tax, stamp duty and registration charges. Whereas in a purchase of a completed project, you are only to pay stamp duty and registration charges. VAT and service tax are exempt. It is the State that levies VAT, Stamp duty and registration charges. And so, they differ from State to State. It is the Centre that levies Service tax. It is charged on construction cost. Effective service tax paid by customer comes to around 3.8 – 4.5 % of sale agreement value (ex-taxes). In the previous tax regime, it was difficult for buyers to ascertain the components included in calculation of VAT and service tax. GST takes away that confusion.

BUYER BENEFITS

• Under-construction properties will be charged at 12 per cent on property value (excluding stamp duty and registration charges).

It will not apply to completed and ready-to-move-in projects as there are no indirect taxes applicable on the sale of such properties. Stamp duty and registration charges on the buyer will continue on under-construction properties.

The transparency in the GST will help buyers. Developers can avail of input tax credit on the sale of under-construction property against taxes paid by the property buyer. This won’t be possible on a completed property.

VAT (different from State to State) and Service tax together account for 7-9 percent of the ticket price on residential property. This is in fact 3-4 per cent lower than GST rates. However, the builder will have to pass on the price reduction benefit to the buyer due to the input tax credit the developer enjoys.

Under the previous tax regime, property developer had to pay Central Excise Duty, VAT and ENTRY TAXES (levied by States) on construction material. A developer paid 15 per cent service tax on services he used such as labour charges, architect fees, approval charges and legal fees. The developer used to pay multiple-taxes under the previous tax regime. The cumulative burden of those multiple taxes eventually used to get passed on to the buyer.

However, in GST there are no much tax levied on major construction materials and as transportation and logistics costs are now reduced, the overall cost of development has come down. Both developers and buyers stand to benefit from this. As developers can claim input tax credit, they stand to make more profits than they did before.

RENTAL INCOME AND GST

Rental income from residential property is exempt from GST. However, any earnings over Rs.20 Lakh per annum from renting or leasing for commercial purposes attracts levy. Rental income from residential house si exempt from GST. But if it is rented out or leased to a commercial enterprise at an income above Rs.20 Lakhs per annum, it will attract GST.

A taxpayer earning more than the exempted threshold will have to register with GST Network and pay applicable taxes.

IN SUM

The actual GST on under-construction properties stands at 18 per cent. However, GST on such properties in effect would be 12 % because developers will be able to claim input tax credits.

Homebuyer used to pay several indirect taxes amounting to about 11 per cent excluding stamp duty.

However, a developer of ready-to-move-in apartments/villas cannot claim full input credit, prices of ready-to-move-in will be higher than under-construction ones. Developers will still get some benefits on projects under construction, while they will have to pay more taxes on ready-to-move-in projects as they are kept out of GST ambit.

As the Government has asked developers to pass on the benefits of lower taxes under the GST to property buyers by bringing down prices and installments. Builders and developers cannot charge customers higher tax on installments hereon.

Go ahead, make your home purchases now with more transparency and assurance of value you get in return for your investment. Click here for great homes you can buy for cool price points.

 

best apartments in chennai -

Jun 27

Choosing The Best Apartments In Chennai

All you need is a willingness to do a bit of comparative study between the choices available to you and legally cross verification with government offices charged with property matters and with experts in matters of property laws.

Comparing Between Apartments In Chennai

With Chennai took a new tangent of industrial and commercial progress, the real estate sector began flourishing at a speed and scale never seen before. Real Estate Developers in Chennai began offering a range of Apartments for those that choose Chennai to live and work in. Apartments remain the first choice for a large number of people that make Chennai their home. Thanks to tens and hundreds of responsible real estate developers in Chennai, you today have a rich array of apartments to choose from. Comparitively, of course, remains the universally accepted method for taking a decision.

What do you compare and how?

1. Credibility and credentials of the Developer.

2. Short term and long term advantages of the location where the apartment is built.

3. Legal validity and authenticity of titles, clearances and compliance.

4. The care that goes into the architecture of the apartment that is reflected in the way the apartment is designed, space created for you within the shell and ventilation that allows you to enjoy natural light and air.

5. Utilities and quality of amenities that make your life comfortable, convenient and enjoyable.

6. Environment planning and design standards that have gone into the project to avert human hazards caused by natural calamities such as flood, earthquake and drought.

7. Lung space that allows you to enjoy clean air and common area made available to you.

8. The percentage of Undivided Land Share that you are entitled to.

9. How sensitive and affordable is the apartment price compared to others offering the same quality and quantity?

10. Do you have ample parking space for your vehicles?

That’s a checklist for comparison between apartments in Chennai before you decide on one. If you are satisfied with the above, it would mean that you can expect it to appreciate well too. There are many apartments for sale in Chennai as we speak.

Alliance, one of the leading developers in Chennai, currently offers luxury apartments or sale in Pallavaram and also in Padi, near Anna Nagar. Alliance has been concentrating on offering luxury apartments in Chennai all along in a successful span of over a decade.

It is a given that as a prudent investor or end user, you want to make an investment that earns you the best returns possible. If that describes you, it is advisable to check out Alliance before you take a purchase decision. Alliance stands tall when it comes to luxury apartments in Chennai.

Good luck with your home hunt!