The Stamps and Registration Department, Government Of Karnataka has begun a series of meetings and are deliberating the revision of property guidance rates or circle rates of the properties in the state of Karnataka to enhance the revenue through Registrations.
The property market is already under severe pressure due to demonetisation and the implementation of RERA coupled with the change of Government, with this revision, the market might be badly hit or the registrations might come down.
It is quite common that developers and builders borrow from the lenders at ABNORMAL interest rates ( minimum with security (property documents-gold-diamond) is 24% per annum and it goes up to 60% per annum and for immediate (emergency requirement) it is Rs.1,000/- per lakh PER DAY and works out at whopping Rs.3,65,000/- interest per year for the capital of Rs.1,00,000/-.
The best part of these type of transaction is the interest paid by the developers is not from his pocket, it is collected from the BUYERS OF PROPERTIES.
The lenders at such exorbitant rates of interest usually have a criminal background, international and national anti-social elements along with political influence, have the muscle power to influence the investigation and thereafter GET favourable judgements TOO.
In the BOWRING INSTITUTE incident, TWO TOP builders names appear or doing rounds and may be subject to enquiry soon. There are many builders, whose name has not appeared on the list.
There are many ( METER – INTEREST) DAILY, WEEKLY, AND MONTHLY transactions conducted regularly and is more visible in the film and real estate industries.
Majority of these lenders are from other or neighbouring states.
It is always safe and good to deal or transact of buy from a DECENT AND DIGNIFIED builder or developer, who does not have anti-social and terror links.
Many illegal or unauthorised construction is not generally financed by the Banks and therefore, such builders or developers avail loans from these NOTORIOUS sharks at exorbitant interest rates and the ultimate victim is the BUYER OF SUCH PROPERTIES.
THE KARNATAKA RERA AUTHORITY MAY IN ALL LIKELIHOOD BLACKLIST AS MANY AS 924 PROJECTS in KARNATAKA, 90% of the projects are located in and around Bangalore.
According to Urban Development and Housing Minister U.T. Khader, these projects were identified for not having registered under RERA and were issued the notice. “Since they did not respond, we will blacklist them,” he told presspersons.
RERA issued1,626 to developers/project heads for allegedly flouting RERA norms and in 604 cases the developers gave satisfactory responses and some projects have even been approved.
He said officials were checking brochures and paper advertisements to keep an eye on more projects not complying with the RERA norms. The urban local bodies have been asked to list out projects as soon as plan approvals are given and are scrutinising the projects.
Even then, it is noticed that innumerable illegal construction is progressing within the city limits and the BBMP is turning a blind eye and have not taken any legal action on such projects.
There is one simpler way to restrict such illegal constructions is by BLOCKING THE HOME LOAN from all the NBFC and financial institutions.
Secondly, initiating legal recovery of the loan lent.
Thirdly, withdrawal of Income Tax Benefits for the illegal and unauthorised buildings.
and Finally, the katha cannot be legally issued to such illegal and unauthorised buildings, which will discourage the sellers/agents/builders not to flout the norms as they may not be able to register the property in the jurisdictional Sub-Registrar office.
Some Amazing investors might have gained or made a good profit in a short-term real estate business. But, that was the PAST.
The real estate market is good and better than the stock market, as the available land for human development is being restricted or limited and it does not GROW, therefore, there is every possibility of this sector to grow.
There will be an assured moderate to good returns only on long-term investments. On an average, the return on investment will be anywhere between 2% to 15% per annum and the minimum gestation period will be 5 years to 15 years.
Better returns are available only on vacant land or plots. 2% to 10% on an average per annum.
Moderate returns are available on agricultural or industrial lands (large stretch).3% to 10% on an average.
Minimum returns are available on apartments. 1% to 6% on an average.
There is a spurt of action/activity from entrepreneurs in the real estate and service industry in the country and few have the tempting and attractive offers with best ever review about their business ( new concept ) and the subsequent high return on the investment.
Seminars are conducted in major metros and other attractive Indian dominated cities like Dubai, Singapore etc.,
The new concepts are TOTALLY NEW. There are graphs, figures, diagrams and the FINAL RETURNS on the investment, which is very attractive and tempting with special offers like free holidays and lunch/dinner. Their websites/URL is on the net.
Some of them are very good performers and the majority are ???????
These companies are short-lived and the promise of high return on the investment is just DREAMZ.
These agencies/organisations/companies are associated with some real estate developers to market their projects at fancy prices. All the marketing agencies/companies are involved in a different type of marketing and have a basic fixed price and their percentage or profit or margin always remain intact.
They have grand offices with smart assistants and the investors will be treated royally and they will be taken for a royal ride to the project location and details will be explained. The cost of this ride is included in the price. The cost of office maintenance and the sweet talk is also included in the price. The agency commission/service charge is also included in the price.
The Government and BBMP are seriously contemplating to revive the removal of the encroachment of raja kaluve and secondary channels in Bangalore during this monsoon to avoid hardship and flooding.