Navi Mumbai International Airport Project-hit to pick relief scheme

MUMBAI: The Bombay high court on Wednesday said that local residents cannot halt the Navi Mumbai international airport project and must decide their compensation scheme option by October 6.

The HC order, significantly, paves the way for smooth and swift acquisition of over 670 hectares of land for the much-delayed project. The land would be used for the core airport area. If there are no further impediments, the first phase of the airport can be expected to be completed by 2018. The entire project will be on 2,268 hectares. The majority of the land is already in possession of the City & Industrial Development Corporation (Cidco), the implementing agency. The project will affect 3,500 families, for whom the state has set aside over 350 hectares for relocation and rehabilitation.

Disposing of a petition filed by locals seeking better compensation, an HC bench headed by Justice Anoop Mohta said, "There is no question of halting the project as it is in the interest of the public at large." V Radha, joint managing director, Cidco, was present in court during the hearing.

The HC order is crucial also because on October 14 the land acquisition scheme would begin to lapse, giving the project yet another jolt.

The petition, filed by 13 locals, sought improvements and transparency in the compensation package the state government offered in March. Their counsel, Sachin Shetye, said the challenge was not to land acquisition but to the "lack of fair opportunity for a fair compensation option" under the land acquisition law enacted last year. It was a representative petition on behalf of nearly 500 families whose lands would go for the project, he said. It sought more time to decide options.

Maharashtra's advocate general, Darius Khambata, said that not only was the state's option "fair", it was "amazing". This is the first time such a compensation option is being offered for a public project in the country and is expected to serve as a model, said the authorities. As per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, the state may give project-affected persons options apart from what the law lays down. Thus, for the airport project, the state has given affected locals the option to accept a compensation package thrice the value of what the Act provides.

"Our scheme is crystal clear. The residents can reject the state's scheme and opt for the process provided under the 2013 law, but this (the attempt to delay the project by filing the petition) can't go on. No one is forcing them to accept the scheme," said Khambata.

http://www.jaghey.com

Real Estate Investing.

When you invest in real estate, your goal is to put money to work today and make it grow so you have
more money in the future. You have to make enough profit, or "return", to cover the risk you take, taxes you pay, and the costs of owning the real estate investment such as utilities and insurance.

In other words, once you understand the basics of the game, real estate investing really can be as conceptually simple as playing monopoly. Your goal is to buy properties, avoid bankruptcy, and generate rent so that you can buy even more properties. But "simple" doesn't mean "easy". If you make a mistake, you could find yourself broke or worse.

The 4 Ways Real Estate Investors Make Money

When you invest in real estate, there are several ways you can make money:

    Real Estate Appreciation: This is when the property becomes more valuable due to a change in the real estate market, the land around your property becoming scarcer or busier such as a major shopping center going in next door, or upgrades you put into your real estate investment to make it more attractive to potential buyers or renters. Real estate appreciation is a tricky game and is riskier than investing for cash flow income.
    Cash Flow Income: This type of real estate investment focuses on buying a real estate property, such as an apartment building, and operating it so you collect a stream of cash from rent, which is the money a tenant pays you to use your property for a specific amount of time. Cash flow income can be generated from well-run storage units, car washes, apartment buildings, office buildings, rental houses, and more.
    Real Estate Related Income: This is income generated by "specialists" in the real estate industry such as real estate brokers, who make money through commissions from buying and selling property, or real estate management companies who get to keep a percentage of rents in exchange for running the day-to-day operations of a property. For example, a hotel management company gets to keep 5% of a hotel's sales for taking care of the day-to-day operations such as hiring maids, running the front desk, mowing the lawn, and washing the towels.
    Ancillary Real Estate Investment Income: For some real estate investments, this can be a huge source of profit. Ancillary real estate investment income includes things like vending machines in office buildings or laundry facilities in low-rent apartments. In effect, they serve as mini-businesses within a bigger real estate investment, letting you make money from a semi-captive collection of customers.


How You Might Consider Purchasing Your Real Estate Investment Properties

There are several ways to buy your first real estate investment. If you are purchasing a property, you can use debt by taking a mortgage out against a property. The use of leverage is what attracts many real estate investors because it lets you acquire properties you otherwise could not afford, but it can be dangerous because in a falling market, the interest expense and regular payments can drive you into bankruptcy if you aren't careful.


http://www.jaghey.com

Circle rates- Circumventing market logic

Festive season is in the air and that's often good news for the real estate sector. Unless, of course, local governments decide to raise circle rates (also called guidance values or ready reckoner rates or whatever) to shore up revenues. These rates represent the government's estimates of market values upon which all taxes and duties are computed. Recently the government of Delhi increased their estimates across the board by 20 percent with more governments such as the government of Karnataka.


The concept of government having to estimate market values is itself unique only to a few emerging economies where people are loath to reporting true market values. The culture of under-reporting stems from either a desire to avoid stamp duties or to avoid having to disclose the source of income. In the absence of honesty, the governments have no choice other than to estimate themselves and force people to pay taxes or duties on these estimates irrespective of the reported transaction values

So how then do governments estimate market values? Do they use a scientific approach to determining market values? Does it make sense that all areas (like in the case of Delhi) are subject to a uniform increase even though it is apparent to any casual observer that some areas appreciate more than others? Do governments have people on the ground, who gather intelligence on where the action is and what premiums are being exchanged between parties? Do governments lower their estimates if the prices falls.

The IIM-Bangalore's real estate research initiative along with MagicBricks.com decided to examine whether the recent increase in Delhi's circle rates made sense given the current market conditions. We used Magicbricks' PropIndex for our current market values and made some assumptions for the purpose of illustration (Note: PropIndex is based on what sellers list their properties for and could be higher than what they would actually get). We focus on multi-storeyed apartments (> 4 floors) that  are developed by private developers in 54 areas of Delhi with large number of property listings to warrant comparison between market values and circle rates. The following chart shows the difference between market values and the new circle rates for all 54 areas.

It is obvious from this chart that the new circle rates are higher than market values in almost 60 percent of areas in our sample! These areas matter most for revenue generation as they have the greatest activity. Also keep in mind that the market values we use represent the upper bound for what sellers would receive as they are based on listing data.

If we consider only listings of plots where this should not be an issue, we still find that the new circle rates in 2 out of 9 areas (or a little more than 20%) would have exceeded listing values. Clearly these numbers indicate that a simple rate increase without accounting for regional variations can cause more harm than good.


Buyers face a double whammy when market values are indeed lower than government's estimates. While they need to pay a higher stamp duty to the government for no reason, they also may need to keep a CA handy if the IT department comes knocking on their doors for registering at lower than "market values." Why then just bother? In their eagerness to set things right and increase government revenues, the authorities may have dampened motives for buying which could only hurt them back

It is not difficult to use scientific models to estimate market values that can better capture variations across regions. The IIMB's research initiative has developed one such model (it is quite common in several major economies to use such pricing models) that uses a host of property and location attributes to determine prices.

http://www.jaghey.com

Magic Of Real Estate- Market Risk

Wanted to Know the Deep sense of Real Estate Sector in India?

Wanted to Invest in Real Estate in India?

Wanted to Invest in Residential Or Commercial?


Just Wait!!!

Real Estate is to be stagnate in Urban and will take at least 10 Years to be in Rural Area.

This is highly unrecomendable to invest bliendly in Real estate Sactor. Wanted more details call on Mangal 8560043414.

Navi Mumbai airport will be Operational in December 2018.

City and Industrial Development Corporation (Cidco) plans to start the pre-development work, including relocation of power transmission lines and reclamation of land site, for the Navi Mumbai airport from January.

The work, expected to cost Rs 2,000 crore and take a year to complete, will commence after the completion of land acquisition later this month. According to Cidco’s planning, the first phase of the Rs 14,500-crore Navi Mumbai airport will be ready by December 2018.

“Our officials are fine tuning the details with the Indian Institute of Technology,” said V Radha, CIDCO’s joint managing director. Sources said bids for the pre-development work will be issued next week.

The work includes reclamation of marsh land, increasing the level of land from 0-2 m to 5 m above mean sea level, flattening of hillocks, diversion of the Ulwe river and relocation of power lines. The pre-development work will be funded by Cidco, and the cost will be included in the total project cost.

Cidco is likely to opt for underground cable network in the airport area, instead of merely relocating overhead transmission lines through an alternate patch of land. This is because underground cabling will not require much land. A final decision is yet to be taken.

“Tata Power has got four lines of 220 KV/110 KV passing through the area. We have given two options to Cidco — either divert the lines away from the zone of the airport or convert them into underground cable system, bypassing the airport zone. Tata Power would prefer the option of diversion since in that case, the lines can later be upgraded, whenever required. However, in public interest, we will accept the option of underground cable system,” said a Tata Power spokesperson.

Mumbai’s second airport project has been delayed owing to environment clearance issues and land acquisition problems. However, in a positive development, the Bombay High Court last week directed project-affected persons to accept the compensation plan offered by the government by October 6. Cidco expects the land acquisition process to be complete by October-end. Bidders, too, have to submit the request for qualification documents by October 30.

About 671 hectares of private land is still to be acquired, and officials are hopeful of completing the process by the end of this month. The project's total land requirement is 2,268 hectares. About 1,160 hectares will be used for aeronautical purposes (construction of terminals, runway, taxiway, etc).

http://www.jaghey.com