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Even urbanites will be able to get a house via the Pradhan Mantri Awas Yojana: Find out how

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Even urbanites will be able to get a house via the Pradhan Mantri Awas Yojana: Find out how

To give a boost to the mission of ‘Housing for All by 2022’ and also address the urban poor’s housing requirement, the Pradhan Mantri Awas Yojana (PMAY) is being reworked. Of the four verticals of the scheme, ‘Promotion of affordable housing for weaker section through credit linked subsidy’ is the one that would appeal to the urbanites the most. There are two important changes being made to the scheme.

First, while the existing guidelines are aimed at the economically weaker section (EWS) and the lower income group (LIG) category, earning Rs 3 lakh and Rs 6 lakh per annum respectively, two new subsidy slabs (yet to be notified) will bring in people earning up to Rs 12 lakh and Rs 18 lakh per annum into the fold.

Second, as per Budget 2017, the 30 square metre (carpet area) limit will apply only in case of municipal limits of 4 metropolitan cities, while for the rest of the country, including in the peripheral areas of metros, the limit of 60 sq. m. will apply.

A 60 sq. m. carpet area is close to 100 sq. m. of built-up area as nearly 30-50 per cent is the difference between them. In sq. ft., a 100 sq. m. is nearly 1,000 sq. ft., which could be equivalent of 2 BHK in several locations. This new move has made affordable housing scheme accessible to many people living in urban areas now.

Type of housing project
To qualify for the scheme, the house has to be within the definition of affordable housing. According to the Housing for All (Urban) Scheme Guidelines March, 2016 issued by the Ministry of Housing and Urban Poverty Alleviation, a project where at least 35 per cent of the houses are constructed for the EWS category will be called an affordable housing project. So if one wishes to buy a home in an upmarket project that hasn’t got any allocation towards affordable housing, the scheme simply won’t apply.

Who all are eligible?
The first eligibility condition is that the person (beneficiary) who applies for the scheme should not own a pucca house (an all weather dwelling unit) either in his or his family member’s name in any part of India. A beneficiary family will include husband, wife and unmarried children.

The second eligibility involves the beneficiary’s income level. EWS households are defined as households having an annual income up to Rs 3 lakh. An EWS house means a single unit or a unit in a multi-storeyed super structure having a carpet area of up to 30 sq. m., with adequate basic civic services and infrastructure services like toilet, water, electricity, etc.

Remember, carpet area is the area enclosed within the walls, the actual area to lay the carpet on. This area does not include the thickness of the inner walls. Built-up area is the gross area of the flat which comprises the carpet area as well as the thickness of the walls and the ducts, and it can be 15-25 per cent more than the carpet area and sometimes known as the plinth area.

LIG households are defined as households having an annual income between Rs 3 lakh and Rs 6 lakh. An LIG house means a single unit or a unit in a multi-storeyed super structure having carpet area of up to 60 sq. m., with adequate basic civic services and infrastructure services like toilet, water, electricity, etc. However, the states/Union Territories have been given the flexibility to redefine the annual income criteria as per local conditions, in consultation with the Centre.

The beneficiary, at his discretion, can build a house of larger area, but the interest subvention would be limited to first Rs 6 lakh only.

Subsidised interest
No matter how much loan one takes, the 6.5 per cent subsidised interest rate will apply only up to Rs 6 lakh. The credit-linked subsidy will be available only for loan amounts up to Rs 6 lakh and such loans would be eligible for a 6.5 per cent interest subsidy. Any additional loans beyond Rs 6 lakh will be at a non-subsidised rate.

Interest subsidy will be credited upfront to the loan account of the beneficiaries through lending institutions, resulting in reduced effective housing loan and equated monthly instalment (EMI). So if you take a home loan at a 9 per cent rate, you will pay only 2.5 per cent interest on Rs 6 lakh and 9 per cent on the remainder.

Illustratively, the subsidy will be credited to the borrower’s account upfront by deducting it from the principal loan amount. As a result, the borrower will pay EMI on the remainder of the principal loan amount. For instance, if the borrower avails a Rs 6 lakh loan and the subsidy thereon works out to Rs 2.20 lakh then this amount (Rs 2.20 lakh) would be reduced upfront from the loan (i.e., the loan would reduce to Rs 3.80 lakh) and the borrower would pay EMIs on the reduced amount of Rs 3.80 lakh.

In the two new slabs, people earning up to Rs 12 lakh per annum will get 4 per cent interest subsidy on a principal component of Rs 9 lakh, and the income category of Rs 18 lakh per annum will get a 3 per cent subsidy on a principal component of Rs 12 lakh.

For all the slabs, the scheme will apply to loans with tenure of up to 20 years, as against the limit of 15 years now.

From where to avail the loan
The loan can be availed from any primary lending institution (PLI) such as a bank or a housing finance company. For the purpose of identification as an EWS/LIG beneficiary under the scheme, an individual loan applicant will have to furnish self-certificate/affidavit as proof of income to the bank.

But unlike a normal loan, one has to be careful while transferring subsidised loans to another bank. If a borrower has taken a housing loan and availed of interest subvention under the scheme but switches to another PLI for balance transfer later, such beneficiary will not be eligible to claim the benefit of interest subvention again.

Conclusion
Affordable housing has been given infrastructure status in Budget 2017, which should aid developers in takings its associated benefits. But for a common man, the timely delivery of the house still remains a distant dream. For availing the benefits, the builders had to complete the affordable housing projects in 3 years. Budget 2017 proposes to extend this period to 5 years. Tread carefully and evaluate all the options before venturing out to explore the affordable housing segment, even if you are a first-time home buyer.

Source: economictimes.

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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