RBI policy desolates realtors want rate cut to boost sector

· real estate news · No Comments

Real estate industry on Tuesday expressed disappointment over ‘s decision to keep the key interest rates unchanged, saying rate cuts were required to boost manufacturing and property sectors.

, the apex body of real estate developers, said the industry is struggling due to low demand, rise in input cost and high interest rates. It hoped that the RBI would cut key interest rates in near future to help increase housing demand.

“Very disappointing. We were hoping that there would be some relief. Rate cuts were required to spur investment in manufacturing and real estate sectors,” said when asked about his views on RBI policy.

RBI Governor Raghuram Rajan on Tuesday kept interest rates unchanged, citing a spike in food prices and banks passing on to consumers only less than half of its previous rate cuts.

“We hope that RBI will now look for a consistent decrease in repo rate in the near future. This will have a positive impact on the growth of realty sector,” he said in a statement.

Realtors’ body NAREDCO Chairman Navin Raheja felt that the current depressed sentiments in the real estate market would continue till any reduction in interest rate happens.

Property consultant Cushman & Wakefield South Asia Executive Managing Director Sanjay Dutt said: “Although the Central Bank has cut interest rates by 75 basis points so far this year, banks have passed on only a part of the benefits to consumers not bringing much cheer to the realty sector.” Parsvnath Developers Chairman Pradeep Jain said in order to revive sentiments of the real estate sector and to prop up growth in the economy, the RBI should slash rates in its monetary policy going forward as the consumer price inflation eases.

The Royal Institute of Chartered Surveyors (RICS) Global MD Emerging Business Sachin Sandhir said a rate cut at this point of time would have further encouraged market sentiments and helped in growth of the sector.

SARE Homes MD David Walker said RBI’s status quo gives no support to the interest rate sensitive housing market where demand remains weak.

Commenting on the policy, Prateek Group Chairman Prashant Tiwari said: “It was a setback for the real estate sector as we require larg

 

 

 

Chennai property tax made easy – Starproperties

· Chennai News · No Comments

 

tax is levied by the state government and is delegated to the local bodies such as the city corporations or municipalities to specify the valuation method, the levy band and the procedure for collection. This tax has to be paid annually by the owner of the property. The tax base is calculated on the annual rental value (ARV) or on a rating based on the locality.

 

The Chennai Corporation uses the concept of reasonable letting value (RLV) to calculate the ARV and the half yearly property tax, under Section 100 of the Chennai City Municipal Corporation Act 1919. This is relevant to all properties in Chennai. The RLV is also known as the monthly rental value. There are different rates for commercial and residential properties.

 

The Chennai Corporation in 1993-94 divided the city into 172 residential locations and 274 non residential locations. So residential locations and non residential locations have different rates. The basic rate ranges from a minimum of INR 0.60 per sq ft to INR 2.40 per sq ft for residential and INR 4 per sq ft to INR 12 per sq ft for non residential locations.

 

While calculating property tax, the first thing to do is to arrive at the annual value of the property. This can be done by calculating the monthly rental value. This is the formula according to the Chennai Corporation website: – Plinth Area x Basic Rate per sq ft = Monthly rental value. The second step is to obtain the annual rental value. This can be obtained thus: – Monthly rental value x12 minus 10%.

Curated from Chennai property tax made easy – Moneycontrol.com