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Housing Finance Companies Should Come Up With Niche Products For Women

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Housing Finance Industry should come up with niche products

Sandhya Suku, who has been selected as one of the most influential women in the housing industry, speaks to Housing News on how technology is transforming the housing finance industry in India and how it will benefit home buyers

Sandhya Suku, of Tavant Technologies (a Silicon Valley-based mortgage technology company), has been selected as one of the most influential women in the housing industry. Bangalore-based Suku is one of the 43 women recognised by Housing Wire, for demonstrating leadership that inspires people in her company and the industry at large. Housing Wire is a source of news and information on the US mortgage market.

“When it comes to mortgage, thanks to technology, the process of getting loans has become faster, paperwork has reduced and there is automation and collaboration between all the parties involved. Today, advanced technologies have made the concept of ‘digital mortgage’ possible – where the entire process, right from loan application to closing and funding, can be done online,” says Suku, who has contributed to the development of solution accelerators, with her expertise in mortgage and technology.

Suku joined Tavant Technologies in 2003 as a technical lead. Today, she is the global delivery director for the consumer lending practice. Over the years, she led many innovations and devised an innovative mortgage software development methodology, as well as a number of reusable mortgage software components.

Women power

Suku also led the first all-woman team at Tavant Technologies, to develop an enterprise mortgage insurance servicing platform. “It was quite natural, given the number women leaders at Tavant. I believe that the all-women leadership was one of the biggest factors for the success of the project. Building a cordial relationship and collaboration, comes naturally to women,” maintains Suku.

She also played a key role in developing ‘Tavant FinConnect’. “FinConnect is a modern mortgage data and services hub that connects the internal and external systems of the mortgage ecosystem, to enable a digital mortgage experience. We have built a mortgage origination and servicing portal solution that enables faster turnaround time, automated regulatory compliance and increased customer retention,” elaborates Suku, who holds a BTech from Thrissur, Calicut University and an Executive General Management Program (EGMP) from the Indian Institute of Management, Bengaluru.

 

Opportunities ahead for India’s home loan industry

“According to Economy Watch, the mortgage financing industry, known as the housing finance industry in India, was estimated at approximately US $18 billion. The industry has witnessed a significant change in the recent years, with banks gaining market share in the direct housing finance segment. Nevertheless, financing through the organised sector, accounts for barely 25% of the total housing investment in India,” explains Suku, who feels that financing companies should come up with niche products to address women’s needs.

“The number of women professionals and entrepreneurs, is increasing. Banks will benefit from the low delinquency rates and high repayment rates, of this segment of customers. So, there’s a mutually beneficial opportunity here,” she believes.

On being a working mother, she says, “Women are inherently good at multi-tasking. However, balancing work and home is the biggest challenge for a working mother. The key is to have an excellent support system, at home and at work. There will be times when the family needs more attention and there will be times when work will demand more time. Passion, perseverance and a determination to make it work, have to be a constant endeavour,” she sums up.

Source: Housing

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Ahmedabad Real Estate News

Under Construction Flat Booking Finds Tax Deduction Under Time Constraints

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Tax Deduction

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.

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India Real Estate News

HDFC and Quikr Make A Deal

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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.”

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India Real Estate News

Retaining The Sustainability: GRIHA Launches Star Rating For Urban Homes

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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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