While we write this there must be a few thousand numbers of people at this point who must be looking for their rental solutions and there is a very high probability that they must be doing the same, while being engaged with a broker or broker firm.
We interacted with a series of such home seekers over the last week to understand how their rental home search were either nightmares or were turned in to one with the Broker’s fraternity of India. We have heard stories that how the same fraternity used to be a user friendly one a decade back but with advent of online space and online players how the same community has made life venerable. Here are few stories of the havoc this community has been causing.
- Mahesh Shah residing in Andheri
Started of my search for new home to graduate from a 1BHK to 2BHK. Found a property listed by brokers. It seemed he had multiple options varying in budget and thus inquired. What followed was a ruckus. After reaching the desired site on time, the broker met me. But, it was only after waiting for 10 mins I realized he was himself waiting for another friend of his to turn up on site with the keys. The listings were simply made up one’s. There was no inventory he owned on his own. And at the very start there I was already entangled in a two-broker deal. The bad news didn’t stop there. Next I was made to wait for an hour when another friend of his turned up when I realized this broker himself has sourced the key from another broker and thus before even witnessing the first sample here I was surrounded with a deal which had 3 brokers involved in it. The options they listed never existed it was a standard deal which was available on net via one broker and rest just banked upon it, quoting lower prices to gain eyeballs.
- Naina Rawat
Because I couldn’t find any option in Goregaon listed via owners I had to finally opt for a broker deal. To my surprise after talking to the owner, I was able to crack a deal with him at 4K discount on his quote. The broker started his talk. It was my mistake that I conclude on the brokerage since at the time when I asked the broker about the same, he had mentioned that his aspirations were only about getting me a home by end of the day. But, when the time came and he got to know the owner is going for a two year contract. The broker didn’t buzz below one and half month brokerage fee. While I tried negotiating his respond surprised me. He quoted that because of me he now has finally understood the rock bottom price and requirement of the owner and at that price he certainly will be able to get that home rented the very next day. Which irked me a little and the deal had to be called off after talking to owner; just because the broker’s brokerage wasn’t enough as he had a key monopoly situation with the owner since he lived abroad.
- Abhijit Dhingra
Because of an emergency situation I had to shift my home within 4 days period. After wasting my first day searching for right properties and some in efficient brokers, I thought I finally had this man whom I could trust on the second day. Out of three options shown via him in Oshiwara in the same complex I was residing in on rent. I finally agreed upon one. With two days more to go. I was more than sorted over my plans of shifting when the broker told me that owner is ready to write a mail to authorities if in case registration process gets delayed. In the worst-case scenario as well I will get to shift my luggage on the 4th day in all certainty. Right after I got back home feeling elated I received the call from brokers that the society manager for that particular tower is rigid and the deal might be only done on the 4th or 5th day, since the owner was travelling and this manager will not allow any movement without NOC and stamping. I took my chances and mentioned him that since I was already staying in same premise it shouldn’t be a big deal and at least he should have a conversation about the same with the manager. To which the broker got back with a revert that the manager is rigid and isn’t buzzing. I didn’t have a back up and it was night already. Next day I chose to meet the manager and to my surprise he was more than accommodating. I started calling my broker at the same movement. He didn’t pick call for 3 hours and when he did, he forth rightly mentioned that owner is travelling and can’t take calls or meet, thus this deal may happen only on the 5th day. I requested him to help me and bail me out to which he said he will try. By evening when he called back he recited the same sad story. I requested him to get me on a call with owner. To which he denied saying she is travelling. I then offered him to give me her number so that I could drop a message. To my surprise he denied that as well. I asked him in this scenario what should I be doing. He asked me to take other option knowing my desperate situation. I denied the request and it was later I got to know that the first house I liked was with some other broker and the one he wanted me to stay in was with him. To ensure he gets the whole pie of brokerage and knowing that I was in desperate need to shift the next day, he wanted to block me. Fortunately, I got hold of the owner myself since I was staying in the same premise and started my shifting. Of course he got a hint of it from his sources and ended up visiting me demanding his brokerage. I denied but then he was now a changed man with threats and nothing else. Soon I had 4 goons (they too called themselves brokers) standing only to ensure that I part ways with brokerage. Being a family man I had to settle down for part brokerage. A piece of my hard earned money snatched from me, given to a person who just made my day hell, added to my worries, kept lying. But, such is Mumbai for you.
Let us know if you have experienced anything similar. Let’s see if any one could come up with solution for it. Because it’s high time we clean the dirt.
Under Construction Flat Booking Finds Tax Deduction Under Time Constraints
If a buyer makes a transaction to book an under-construction flat and if he acquires it within the three-year period of the sale of his old house, then he is entitled to a tax deduction, says a ruling from the Mumbai bench of the Income-tax Appellate Tribunal (ITAT). If an apartment is booked in an under construction project than it must be viewed as a method of constructing residential tenements, says the December 18 judgment.
That means if the buyer uses the entire gain from the transaction to buy another house within two years or construct another house within three years. The two- and three-year period applies even if the buyer bought another house a year before selling the first one. But the property should have been bought in the name of the seller.
It is mandatory that within a period of two years after or one year before the date of transfer of old house, the taxpayer should construct a residential house or acquire another residential house within a period of three years from the date of transfer of the old house. The date of receipt of compensation will determine the period of acquisition or construction in a case of compulsory acquisition.
This exemption is effective and can only be claimed in respect of one residential house property purchased/constructed in India. In the case of multiple house purchases or constructions, the exemption under section 54 will be available in respect of one house only. Any purchases made outside the country does not fall under any kind of exemption. Section 54 gives relaxation in such cases by providing relief to the taxpayer who sells his residential house and acquires another residential house from the gained capital.
After the sale of an asset, the difference between the buying price and the selling price is a capital gain or a capital loss. These are further classified as long-term or short-term. If a property is held for 24 months or less, with effective from 2017-18, then that asset is treated as Short Term Capital Asset. Then an investor can make
treated as Long Term Capital Asset. Then only a Long Term Capital Gain (LTCG) or Long Term Capital Loss (LTCL) can be made on that investment.
ITAT agreed that booking of a new flat in an under-construction apartment should be considered as a case of “construction” and not “purchase”, hence following the earlier decisions of the Bombay high court and the tribunal itself. Further ITAT allowed the fact that the construction can began prior to the date of sale of the old asset. Same was stated in the earlier judicial decisions of the Karnataka high court and Ahmedabad ITAT, that the date of commencement is not relevant but it is the completion of construction that comes in relevance to section 54.
HDFC and Quikr Make A Deal
According to a deal between HDFC and Quikr, a stake of more than 3 percent will be given to the mortgage giant in return to its transfer of offline and online real estate brokerage business to the classified ads platform.
After acquiring Commonfloor in 2016 Quikr already has a major presence in online real estate broking.
“Most of the searches for real estate are moving online. Quikr has a much bigger presence online. Through this deal, we are partnering Quikr in the broking business,” said HDFC MD Renu Sud Karnad. According to her, this deal will strengthen Quirks position with offline support.
The deal suggests that HDFC will transfer to Quikr its entire shareholding in HDFC Realty, a real estate brokerage platform, and HDFC Developers, which runs the HDFC RED online platform.
Karnad added that the deal expects Quikr to generate home loan leads for HDFC. The transaction consists of a co-branded alliance between both parties and the HDFC brand will continue to be used online for a year.
The e-real estate classifieds platform HDFC RED has around 7,000 project listings and generates traffic of over 80,000 unique visitors per month. HDFC Realty has a 300-member, in-house sales team, and 7,000-strong nationwide broker network. Avendus Capital was the exclusive financial adviser to Quikr while Kotak Investment Banking acted as the exclusive financial adviser to HDFC on this.
30 million monthly users make Quikr India’s largest classifieds platform. It runs multiple vertical businesses across real estate, automobiles, jobs, services, and goods. The Quikr Home, its real estate vertical generates 3.5 million monthly unique visitors.
Both companies intend to work closely and conduct analytics and identify potential homebuyers, and therefore home loan customers, early in their home-buying journey. Quikr founder and CEO Pranay Chulet said, “We see great synergies between Quikr and HDFC as we start working together to bring a seamless online-to-offline platform to developers and consumers.”
Retaining The Sustainability: GRIHA Launches Star Rating For Urban Homes
Green Rating for Integrated Habitat Assessment (GRIHA), is the National Rating System of India, a Sanskrit word meaning – ‘Abode’. Human architecture has always consumed resources in the form of energy, water and material from the environment. From their construction to operation, these habitats absorb the resources throughout their life cycles, emitting wastes in the end. This emission could be direct in the form of municipal wastes or indirect emission into the atmosphere, such as from electricity generation. Hence GRIHA was formed to reduce an architecture’s resource consumption, waste production and overall environment impact up to certain national acceptable limits.
In attempt to quantify all these aspects, like energy consumption, waste generation etc. GRIHA tries to manage, control and bring down the respective to the best possible limit. Being a rating tool, it helps people to assess the performance of their respective projects against the national benchmarks.
Hence it becomes an evaluation of the environmental performance of an architecture on a holistic level. Covering its entire life cycle, this evaluation provides a specific standard for a ‘green building’. This rating system aims to strike a balance between established institutions and emerging concepts, on a national as well as the international level.
The process starts with an online submission of documents according to the criteria. Then a team of professionals and experts from GRIHA Secretariat takes a site visit for the evaluation of the building. There are four different sections categorized by 34 criteria in GRIHA rating system. Some of them are site selection and site planning, conservation and efficient utilization of resources, building operation and maintenance, and innovation.
Sanjay Seth, CEO, Green Rating for Integrated Habitat Assessment (GRIHA) Council says, “A rating between one and five stars is being provided, helping the costumers to know about the sustainability of the houses”.
According to the Union Minister, Hardeep Singh Puri, the climate resilient and sustainable buildings are the need of the hour. As the government is aiming to construct around 1.2 crore houses for the urban poor under the affordable housing scheme.
In one of his keynote addresses, Andreas Baum, Ambassador of Switzerland to India and Bhutan said that the Indo Swiss collaboration is operating with the Indian Bureau of Energy Efficiency in the development of guidelines for energy efficient housing.
“At present India is witnessing a rapid urbanisation, if each building becomes greener than the last one, then we have a huge opportunity and hope for our country. We need to look beyond the conventional methods of building, in order to provide our citizens with a good quality of life. Hence, GRIHA gains important in meeting our national goals with respect to a sustainable society”, says Dr Ajay Mathur, director general, TERI & president, GRIHA Council.
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