The Delhi High Court is set to put an end to unauthorized construction, They have issued a warning on Wednesday stating that they are contemplating on issuing “black marks” on the classified reports of government officials and police to make sure that stringent action like being demoted or not being promoted for failing to counter such criminal activity.

Badar Durrez Ahmed and Ashutosh Kumar from the bench of justice’s are eagerly waiting to see the day which puts an end to illegalconstruction. They believe this will only take effect if the court takes stringent action against these officials.

The bench of justice’s has suggested to put “black marks” in the Annual Confidential reports of the officials who fail to prevent unauthorized constructions despite being ordered from the court. This would mean that these officials would be downgraded and will never face promotion as they will be deemed unfit for the job. The court stressed that it makes no sense to register more and more complaints against unauthorized constructions as they should focus more on preventing this from happening in the first place.

Buying a house is always big step in anyone’s life. It requires a lot of home work to be done to make a well informed decision. Having said that there are also a few factors that help in influencing the buyers mind. Like many buyers consider it a good sign to buy on auspicious days like festivals etc. But there are other basic factors buyers must take into such as good quality of materials used for construction, equipped with the best amenities to suit you and your family’s needs, developed infrastructure at your surroundings and constant supply of electricity and water are few of the key factors you should look into.

According to the data of India’s online domain for housing needs be it renting, lease or selling, listed localities in Bangalore along with the prices of the flats for prospective buyers trying to find their dream home.

This festive season has seen many channels of engagement mediums like televisions, radio and newspapers flooding the buyers with major discounts and freebies and other deals on purchase of a residential property. Even if you’re not considering purchasing a house during this festive season it is at least good to look for properties.

According to One of the real estate portal the office space in Bengaluru is performing well. New office set-ups could result in an increase in demand for residentialproperties. But how is that possible?

It’s simple with many Indians and expats coming from all across India and all over the world will result in a demand for residential properties. To avoid the incorrigible traffic of Bangalore they are in the lookout for residential properties that are close by to their workspaces, which could result in a demand from both rental and capital markets.

Last month saw a rise in property prices by 0.51 percent while the demand for consumers rose by 4 percent. With many discounts and deals available this festive season. It is an opportune time to invest in property. The process of finding the right house of your dreams is a lengthy one and therefore it is advisable to at-least start shortlisting your investment decisions.

According to Real Estate Portals  these are the top ten places to live in Bangalore City:

Horamavu, Jayanagar, Bellandur ,KR Puram, Hennur Main Road, Malleshwaram, Nagarbhavi, Rajarajeshwari Nagar, Ramamurthy Nagar, Vidyaranyapura and Vijayanagar.

Since, the past decade, a trend of non-delivery of properties has plagued the real estate industry. This is to be continued in all likelihood in the present year spelling malady in the real estate industry in India.

Out of the total industry in the top 7 cities, a menial count of 180,716 flats was completed by the month of July. Housing Units that are to be completed in the year 2016 are 6,74,834 of which statewide spread are Thane 1,04788, Bengaluru 1,02115, Pune 88,627, Greater Noida 67,763, Chennai 51,993, Noida 47,562, Grugaon 41,466 and Mumbai 41,263. Homes which are likely to be completed by end of the year are only 50% with an average delay of one to three years. The rest of the half apartments are likely to be completed in the coming year. 

Sixty percent of these projects were launched within the year 2010 and 2013 with an average delay of 1 to three years at present which is going to increase and comes as a bad news for the homebuyers. As per plan, the real estate industry is going to complete 621,297 apartments by the year 2017 but the number will inflate further due to the spillover from the current year. 

This situation reflects the market crunch for liquidity and also a slowdown in demands. Out of the 674,834 apartments that are to be completed in 2016, Thane has registered a maximum number of homes which are finished at 104,788 homes, following which is Bangalore at 102,115 and Pune is at 88,627. It is expected that Greater Noida is to witness a maximum number of completions in the year 2017 which is 90,779 units and Bengaluru at 85,716 units. Previously in the year 2015 approx. 380,808 apartments were completed while in 2014 figures were 268,376 and in 2013 it was 214811 further in 2012 it was 202,741. 

Unfulfilled demands and dissatisfied customers and increasing prices and lack of funds in real estate are causing this situation, according to an industry expert. 

However, those who are looking to sell their apartments, this comes in as a blessing in disguise. Because if all of these apartments were to have completed in the current year collectively, prices could have fallen even further according to another industry expert.

Facing a tight liquidity crunch from the slowdown builders are pushed to seek funds from nonbanking financial institutions to finance their previous loan and complete their incomplete projects. With all the uncertainty home buyers have become increasingly apprehensive about buying any property which is not complete. 

Summary

Homebuyers are increasingly frustrated with delays in possession of their apartments. Experts are seeking resolution to its roots and a trend has been identified in the last decade.

When we come across a desire to buy a house or own an apartment something that people really look as is the offers that are provided, and one of the offers is that of EMI wherein a person books a flat with a small down payment amount and then the remaining money at various intervals with the final payment at possession.

There are lot of people who jump to this option. The payment scheme of 15:75:10. Initially the borrower pays only 15% of the total cost, 75% is paid by the lender at various different intervals and at the possession of the property the remaining 10% is cleared off by the borrower.

If we just analyse a bit deeply it’s the booking amount and the pay-out at the time of possession that’s paid by the borrower. A substantial percentage in the middle is being paid by the lender as a loan which needs to be reimbursed later. There is a tri-partite agreement that needs to be signed by the borrower with the lender and the builder. He gets time to accumulate funds that the bank has being paying for the borrower till the time of possession of the flat and the EMI starts only after possession. All this sounds good and interesting.

However, there is something to be looked into deeply which is not understood. 'No EMI for 24 months' does not mean there is no EMI at all. It merely means that the EMIs get paid by the builder on behalf of the buyer. As a buyer, one would be held liable and his credit score would be adversely impacted if the builder were to default on the EMIs.

There is something that adds on, in case of a delay in getting the possession, then the expenses will even double further which will make the buyer need to stretch his finances. Hence one should try seeking for a 'No EMI until possession', so that development risk is completely transferred to the builder. They need to be a cross-check done on the cost of the property under all the payment plans to ensure that variations are not high.

We are in an era where project delays and loan defaults by developers and builders have become the norm, it is therefore important to tread cautiously on such schemes. Therefore, while the offer may appear lucrative, it is important to be mindful of the risks involved. Get to the credible sellers and make your investment on apartments and flats at safe hands and in trustworthy manner.