VOL - 2 ISSUE : 3 March 2014
RealEstate
A WOMAN CAN BUILD A MAN’S
WORLD IN MORE WAYS THAN ONE!
Cover Story Page : 10
M a x...
4 March 14 • Real Estate Maximum
Real Estate Maximum
March is known for two main
events – Holi and financial
year ending.
...
5March 14• Real Estate Maximum
Real Estate Maximum
GUJARAT: LAND OF OPPORTUNITIES
Gujarat has always been fulcrum of Trade...
6 March 14 • Real Estate Maximum
CLASSIFIEDS: BUY - SELL - RENT
Apartment
Kasturi 3,
4 BHK
Sindhubhuvan road
Jigar Pandya
...
8 March 14 • Real Estate Maximum
Being a lady in the world o f developers is not easy is a hackneyed thought. According to...
9March 14• Real Estate Maximum
1.	 Today you are a builder of repute in
Ahmedabad. We would like you to tell
us what promp...
10 March 14 • Real Estate Maximum
daycare. The teacher used to come from 9:00 to
11:30 in the morning. from 11:30 to 5:00 ...
11March 14• Real Estate Maximum
Real Estate Maximum
people are making. I am very clear that
whatever I write in my specifi...
14 March 14 • Real Estate Maximum
ADVT
ARVIND INFRASTRUCTURE A BUDDING REAL ESTATE DEVELOPERS IN AHMEDABAD AND BANGLAORE
I...
15March 14• Real Estate Maximum
ADVT
REGIONAL OWNERS AT RE/MAX
INDIA DURING 5TH ANNIVERSARY
CELEBRATION AND REGIONAL
OWNER...
Seminar on Business Opportunities in Real Estate Brokerage
Topics to be covered
•
•
•
Changing Trends in Real Estate
Busin...
17March 14• Real Estate Maximum
Real Estate Maximum
A home insurance policy is vital in the age we
are living in with sudd...
18 March 14 • Real Estate Maximum
Real Estate Maximum
Even if the insurance has been taken through
an association, each fl...
19March 14• Real Estate Maximum
Real Estate Maximum
reconstruction cost and not for its market value.
The reinstatement va...
Needs of property are more than one
But trustable name is only one.
Block A, G-5 Safal Proftaire,
Corporate Road, Prahladn...
21March 14• Real Estate Maximum
The financial year is coming to an end and
so must determine where to invest so as to
get ...
22 March 14 • Real Estate Maximum
5 year or 10 year and you can invest in
either of the two.
Return on investment: 8.5% p....
FRANCHISE INQUIRIES SOLICITED
Ground Floor A/5, Safal Profitaire, Opp Prahladnagar Garden, Corporate Road, Prahladnagar,
A...
Real Estate Magazine Vol 2 Issue 3
Real Estate Magazine Vol 2 Issue 3
Real Estate Magazine Vol 2 Issue 3
Real Estate Magazine Vol 2 Issue 3
Real Estate Magazine Vol 2 Issue 3
Real Estate Magazine Vol 2 Issue 3
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Real Estate Magazine Vol 2 Issue 3

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Ahmedabad Real Estate is changing everyday. Whether you are a buyer, a seller or a broker, you can benefit from knowing the nitty gritty brick by brick.
Real Estate Maximum is a unique magazine that brings you Offers from builders, News of the real estate market from experts, Tips on generating income from prudent investments, Valuable information about buying, selling or investing anytime in future.

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Real Estate Magazine Vol 2 Issue 3

  1. 1. VOL - 2 ISSUE : 3 March 2014 RealEstate A WOMAN CAN BUILD A MAN’S WORLD IN MORE WAYS THAN ONE! Cover Story Page : 10 M a x i m u m
  2. 2. 4 March 14 • Real Estate Maximum Real Estate Maximum March is known for two main events – Holi and financial year ending. Most people who are above tax slab have to finish certain tasks like investments and insurance else they lose the tax benefits. Remember you cannot build your wealth without planning for your taxes. So take some time out and plan for your future while you save your tax today. India has been developing at a steady pace. Here I am not talking about economic growth, but development in the true sense. A sign of development is bringing women in the mainstream work. March 8th is Woman’s Day and to commemorate the event, our cover story is on a lady builder who has a debut scheme in Prahladnagar. This shows that India is not only building wealth, but is also fast becoming a developed country. There is a month left for National elections to start. All eyes are on Gujarat as the most probable PM candidate is from this state. The hotel rooms have already started showing increase in occupancy. I am sure that in case the predictions come true, then Gujarat real estate is going to be really busy. Happy maximising wealth! Wish you a Happy Holi! Manan Choksi email : mgc@mgchoksi.com website : www.mgchoksi.com Honorary Editor : Manan Choksi Published by : Madhuvan Space Management Pvt. Ltd. Circulation Incharge : Tanmay Mehta +91 79 71727100 Volume : 2 Issue : 2 Regd. Off. : G5, Block A, Safal Profitaire, Corporate Road, Prahladnagar, Ahmedabad -15 www.realestatemaximum.com info@realestatemaximum.com Disclaimer: This magazine is for private circulation only. The data published in this magazine is based on the inputs provided by various sources. The publisher, printer and the Editor do not guarantee the authenticity of correctness of the data published herein. Printed and Published by MSMPL at Ahmedabad. Designed By : Creative Grapes - +91 9913539147 GUJARAT: LAND OF OPPORTUNITIES......... 05 CLASSIFIEDS: BUY - SELL - RENT................... 06 A WOMAN CAN BUILD A MAN’S WORLD IN MORE WAYS THAN ONE!................................... 08 RE/MAX UPDATES................................... 14 INSURE YOUR HOUSE AGAINST CALAMITIES: TIPS & CAUTIONS................................................ 17 ANALYSIS OF VARIOUS TAX SAVING INVESTMENTS...................................................... 21 Editor’s Note I N D E X
  3. 3. 5March 14• Real Estate Maximum Real Estate Maximum GUJARAT: LAND OF OPPORTUNITIES Gujarat has always been fulcrum of Trade and Activity. From being a favoured port for seafarers, the nucleus of Business and Industry, a cradle for Culture and Religion, home of Mahatma and abode of the Asiatic Lion, Gujarat has had it all. Gujarat is the fastest growing state of the country. It had a Growth rate of around 11% vis-à-vis country growth of 7% in 2012. United Nations awarded Gujarat the 2nd best state in Asia pacific category for ‘Improving transparency, accountability and responsiveness in public service’in the year 2010. ujarat is known as Water Mouth of India because of its strategic location. Gujarat due to its connectivity with ports and skilled labour has attracted many multi-national companies to setup their manufacturing plants. Indian Industrial houses like TATA, Adani and Godrej- have entered Gujarat many years back. An increase in the investments in sectors such as Textiles, Chemicals and Agro & Food processing over the last 20 years has made Gujarat emerge as a thriving industrial centre in the Country. Gujarat is also known for Entrepreneur Skills in the Country. Latest Technology and Infrastructure has motivated Family run businesses to turn into modernized corporate businesses. Moreover, diverse labour force and skill set have attracted Automobile players likeTATA Nano project, Ford, Maruti and Peugeot in the western part of Gujarat. Gujarat is considered to be upcoming Small Car manufacturing Hub in theWorld. Government Initiatives • The government has started vibrant Gujarat program to attract more foreign investment. • The state government has executed Bus Rapid Transport System (BRTS) project successfully for the convenience of the local people. • Large no. of SEZ’s are being set up with Investor friendly Policies. • No. of private ports are being set up which will further boost business sentiment • Sabarmati Riverfront Development to create quality space for Commercial, Cultural and recreational activities. • World Class Educational Institutes • High Quality Healthcare Infrastructure • Use of CNG as vehicular fuel for pollution mitigation • Development of New Townships and Twin cities around existing ones. • Gujarat International Finance Tech-city (GIFT) – One stop destination for Global Financial Services and IT Industry Ecological Balance in State • In-spite of rapid industrialization the govt. thrust to ecological balance remains high on the priority list • Underground Water table in the state has gone up over the years • More land has been covered under cultivation • The green cover in the state has increased • Norms for emitting harmful gases have become stiffer • Stringent laws put in place by govt. against pollution • Solar energy- a big alternate source of energy in Gujarat Gujarat has proved emphatically that whatever it welcomes with open arms, it nurtures, promotes and develops beyond expectations. Anupam Tandon HN Safal anupam.tandon@hnsafal.com
  4. 4. 6 March 14 • Real Estate Maximum CLASSIFIEDS: BUY - SELL - RENT Apartment Kasturi 3, 4 BHK Sindhubhuvan road Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in on rent Residential Appartments Dev Aurum Newly Constructed, 1934 sqft, 3 BHK Prahlad nagar Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in Forsale Flat for sale Opp. Super Plaza, ground floor 185 sq.yrd, 3 BHK Sandesh press road Rs. 85 Lakhs Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in Forsale Residential Appartments Godrej Garden City Newly Constructed, 1064 - 1729 sq ft Off SG Road, B/h Nirma Uni Sandeep Sabnani 9099031221 Remax Advantage ssabnani@remax.in Forsale Luxurious Appartments 612, Appartments Newly Constructed, 2150 builtup sqft, 4 BHK Prahlad nagar Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in Forsale Plot For sell 129 Weekend villa Swimming Pool, Club House Rancharda Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in Forsale Plot For Sale Showroom on rent 3300 sqft, Rs. 120 per sqft Shopper plaza C.G. Road Navarangpura Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in on rent Shop on rent 507 sq ft Super plaza ground floor Sandesh press road Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in on rent Showroom on rent 2285 sqft, C G Road Navarangpura Ankit J Patel 9825333907 RE/MAX Metro apatel1@remax.in On rent Office on Rent 2618 sqft, Fully Furnished C G Road Navarangpura Chintan J Parikh 7600010530 RE/MAX Metro cjparikh@remax.in On rent Bunglow on rent Safal Vihaan 5 BHK Prahlad nagar Jigar Pandya 9099115000 Corporate Services jpandya@remax.in On rent Flat on rent Kasturi niwas 3 BHK Science city Jigar Pandya 9099115000 Corporate Services jpandya@remax.in On rent Bunglow on rent Satyen crystal B/h Rajpath club Rent: 27000/- Jigar Pandya 9099115000 Corporate Services jpandya@remax.in On rent Flat on rent Sun embark 4 BHK Sola road Jigar Pandya 9099115000 Corporate Services jpandya@remax.in On rent Office on rent/lease 7th floor 25000 sqft, Corporate road Prahladnagar Jigar Pandya 9099115000 RE/MAX Corporate Services jpandya@remax.in on rent
  5. 5. 8 March 14 • Real Estate Maximum Being a lady in the world o f developers is not easy is a hackneyed thought. According to Ms. Deval Soparkar, an enthusiastic mother, wife and a meticulous real estate developer, who fulfils all three roles with amazing grace, there are many advantages to it. Read on about this lady who believes that honesty and transparency about the product is the key to success. Interesting paradoxes are revealed in this talk between Ms. Deval Soparkar of Green Blossom fame of Meghmani Group and Real Estate Maximum correspondent Real Estate Maximum A WOMAN CAN BUILD A MAN’S WORLD IN MORE WAYS THAN ONE!
  6. 6. 9March 14• Real Estate Maximum 1. Today you are a builder of repute in Ahmedabad. We would like you to tell us what prompted you to take up real estate as a career? Taking up real estate as a career was an impromptu decision. We had a plot at Prahlad Nagar at a very strategic location and we wanted to construct Meghmani corporate house there. When I looked at the calculation I thought that if we don’t construct another building we will be losing on the FSI which we will be getting on that plot. After internal discussion, we decided to put up a high end residential apartment building. The decision was taken when real estate in Ahmedabad was booming all time high, and we thought that it would be a good line to diversify into. Obviously, I was more interested in doing Meghmani’s corporate house because that was the need of an our at that time but when I started looking at Panchratna corporation as a whole project thought that it’s a very good line and this is what really prompted me to take this as a serious career option. I believe that a woman can always do houses better. So, I started getting myself involved seriously and so far it has been a very enriching experience. 2. Who has been your guiding force or role model? When we started, we had no guiding force or role model as it was not a planned decision but there are a couple of people or groups whom I really respect in Ahmedabad. I like what Goyal does in terms of taking the scalability and introducing new concepts in residential buildings. I like Synthesis and Bakeri Group for its transparency and the design aspect. I like Shaan zaveri’s Schemes for its maintainance and elevation. 3. What is your educational background? I did Bachelors from KS School of Business Management, Ahmedabad, and MBA from Long Island University, New York, USA. I believe that actual experience is the real education for me. 4. In what ways do you think education helped you in becoming a successful builder? Education does bring a lot of character in you. You can understand and analyse the thing, giving good product at the right place and maximization of profit be it chemicals, be it even your real estate development. I personally believe that had I been a civil engineer or architect it would have been an advantage but nevertheless I believe that my understanding about delivering the product at the right price is the biggest help that education has given me. 5. Please share with us excerpts of your success story. How many homes or sq.ft. constructions have you built? Panchratna Corporation has done two projects. One is a corporate house for Meghnani Group and the second is Green Blossom which is a high end 4 BHK luxurious apartment. Total square feet construction area is 185,000 square feet. 6. How do you make a house into a home when you construct a building? I pay special attention to the details, such as what kind of railing gathers more dust, disuse of a particular stone for buildings as women in high heels cannot walk comfortably on such floors or what colour of kitchen platform or bathroom sink would make cleaning easier or the particular stone which would be good for the parking area, and so on. Men look at the finances and women at the practical details. Being a woman is an advantage as you can visualize certain things better. For example, I prefer a square kitchen so that when you have somebody else helping you out, then you have some space. Regarding privacy we have observed that having all bedrooms on one side is preferred by most as one additional door makes all the bedrooms secure. Service elevator has been introduced so that drivers, plumbers and other helps can use them and the residents and their visitors can use diffrent elevators. 7. In life attitude is of utmost importance. What is your view on this? I completely agree, I feel attitude is beyond gender too. If being a woman restricts my thoughts then I wouldn’t be able to deal with workers, government officials and contractors. I believe a woman can construct and market houses better than anyone else. So, we need more women to bring grace in this industry. Also attitude determines your altitude. You have to be very determined otherwise people will start taking you lightly. 8. Can you tell us about the challenges you faced when you took up real estate as a business? Initially people around me were surprised and more conscious. Incidents like labourers drinking and coming to the site gets minimised when a lady is there. We tied up with an NGO and started a school for the laboure’s kids when the construction work was going on. So, kids from three to twelve years were coming and learning there. We also would get them items like toothbrush, toothpaste, comb, undergarments and so on. The school was almost our play area; like a Real Estate Maximum
  7. 7. 10 March 14 • Real Estate Maximum daycare. The teacher used to come from 9:00 to 11:30 in the morning. from 11:30 to 5:00 there wasfreeplaywithbooks,toysandgames.Wetied up with Savera who run schools at construction sites. We started off with about 11 kids and then went to 45 and then on average we got 30 kids from all sites; it was a good experience.The children were very happy. I don’t have challenges probably as I have selected a good team to work with. 9. There are few women in the world of real estate. Please share with us the challenges that you face owing to your being a woman. I have seen women in the marketing side, architects and interior designers but I have not seen a woman developer. A developer has a much larger role to play from getting architects and all the contractors on the board, managing labourers, finances and also the market. Being the first woman builder or being among the very few you get lot of special treatment wherever you go. You get special attention. I am very happy that Industry has accepted me and my company and in case of problems, although we are competitors, others have come forward and helped. I have got help from Synthesis, Deep builders, Ganesh housing and Vivan group. All these people have come forward, stood by me at the opening time when I was apprehensive to show my work. I think being a woman is actually a good thing. You can convert a house into a home. So I don’t think it’s a challenge. 10. Tell us something about your group. Our Panchratna corporation is a real estate venture in which I am also a partner. And this is altogether a new line of business for us. And as I said in the first project we need two things one is a commercial space and one is the residential that we created. Going forward we have land banks available in strategic locations in and around Ahmedabad. I don’t want to rush in for my second project right after the first one for the simple reason that for eighteen months, I have the maintenance of Green Blossom on my shoulder. I don’t want to rush into the other scheme, pay attention there and ignore the scheme that is already here. Since it’s the first scheme you have no experience about how the maintenance will go and that maintenance cycle will go on for about 18 months. So I don’t want to divert my attention and resources. But we will be doing two more projects and we’ve already identified the projects, which will be announced in the next eight or nine months. 11. Real estate is going through turmoil now with plenty of ups and downs. How do you as a real estate builder deal with the changing situations? I always believe that if you have a right product at the right price then you can sell. The location of the project is very important. Second is that we have never compromised on the quality aspect of it. I always visualize that if I have to stay myself what will I do for this? So which kind of a marble I’ll put, which kind of amenities I’ll use what kind of air conditioning I will use, what kind of kitchen design and the modular kitchen type I want? We always want the best for ourselves and this helps us to put ourselves in our customer’s shoes and think like them.I think the market also appreciates a good product at good price. 12. What are your hobbies and interests? I like to travel, read, music and workout. I tell all fitness freaks to buy here because the gym will always be the best at Green Blossom as I will be using it myself. 13. Holidays and vacations have become very important to get away from the daily stress. What kind of holidays do you like to take? Also share with us about your last holiday homes. When you work seven days a week you need more vacations or holidays. However small a vacation, you need it because they are very important. And that gives me a chance to be a full time wife and mom. So, we try to fit in a small trip to somewhere like Goa to refresh ourselves. As I take such 8-9 short breaks I prefer to go to places where there is a direct flight like Dubai. 14. What is your advice to new beginners in the field of real estate? I am a beginner myself so I cannot give advice to anyone but I believe that one should be honest and transparent. Ialwaysbelievewhenyouaresellingsomeone a house it’s a huge emotional investment Real Estate Maximum Ms. Deval Soparkar at Green Blossom Site
  8. 8. 11March 14• Real Estate Maximum Real Estate Maximum people are making. I am very clear that whatever I write in my specification I will deliver. Whenever people say why you’re not giving swimming pool or raise such issues, I respond that I want to give you the amenities that members can maintain for a long time. If space is there then I would rather give extra parking to the members, because that is what the need of the hour is. 15. Please share your views for owning property for vacation home out of India or different part of India. I would never own anything in a vacation place only for staying there during holidays. For Goa if I am looking at a property which is accessible or closer to beach and is a 2 bedroom unit, I would be paying about 60 - 70 lakhs for that. And if I invest that 60 - 70 lakhs @ interest at 10%, would be 7 lakhs. For 7 lakhs I could probably go and stay for a month in Goa in the best of properties. Why should I take the headache of maintaining a property? I don’t want a vacation home anywhere in India. If it is my house I have to take care of it even during a holiday. Plus why stick to one place for a vacation? If I want to go to Sri Lanka and not to Goa, I can take the flight and reach in three to four hours or so. Dubai just takes two and a half hours so I can go there easily. So, why should I limit myself to going to one place only? A farmhouse in Ahmedabad for a weekend getaway is alright with me as I can simply go there when I need a change. 16. What do you feel is the future of real estate in India? Real estate has a fantastic future in India! People would like to upgrade to a better thing because the disposable income is going up. Another shift that I have seen in real estate is that people are now thinking that either your office or your kid’s school should be near to your house. So I have seen maximum people shifting to Prahlad Nagar. In our scheme I have 60% of the people who are from Prahlad Nagar area. So either they all set their offices nearby or their kid’s school. That’s why I believe location is very important. In the last five, six years developers have really done a good job in constructing good buildings, good amenities, and good maintenance; the foyer where you enter is also well designed. People are also conscious about it because now they are staying in communities in four BHK luxurious apartments whereas earlier they were in bungalows. So they want open space, they want garden, they want kids area, they want sit out area, they want plantation area. It is a B2C industry so if three customers come and tell me that this is what I am missing at Green Blossom probably in the next scheme, we would like to incorporate that. A direct feedback from customer is very helpful for us. Fantastic buildings have come up in Prahlad Nagar in the last few years; builders have used the best of materials and provide good maintenance even afterwards. So I think real estate has a good future. We have a long way to go and we should see and learn from buildings in Hong Kong, Singapore and Gurgaon as they are much better than Ahmedabad. So if as long as there is land, money in the bank and population booming, real estate has a good future.
  9. 9. 14 March 14 • Real Estate Maximum ADVT ARVIND INFRASTRUCTURE A BUDDING REAL ESTATE DEVELOPERS IN AHMEDABAD AND BANGLAORE INVITES BROKER OWNERS OF RE/MAX MGM TO DISCUSS ITS VARIOUS UPCOMING PROJECTS AND TIE- UP WITH RE/MAX MGM. MR. AASHIL PATEL REGIONAL OWNER AND MR. PRANAV PANDYA , FRANCHISE DEVELOPMENT MANGER WITH ALL BROKER OWNERS OF AHMEDABAD ATTENDED THE SAME AND GOT THE DETAILS OF PROJECTS BEING DEVELOPED BY ARVIND INFRASTRUCTURE. RE/MAX GUJARAT LISTING HIT STATISTICS THE BELOW STATISTIC OF GUJARAT REGION SPEAKS A VOLUME. THE MORE LISTING, THE MORE HITS RESULTING IN MORE DEALS. SO LIST MORE PROPERTIES ON ICONNECT AND REACH TO MORE CUSTOMERS. GLOBAL.REMAX.COM NOW IN GUJARATI, HINDI AND OTHER LOCAL LANGUAGES RE/MAX UPDATES
  10. 10. 15March 14• Real Estate Maximum ADVT REGIONAL OWNERS AT RE/MAX INDIA DURING 5TH ANNIVERSARY CELEBRATION AND REGIONAL OWNERS’REVIEW MEET WITH NEW RE/MAX BRANDED WINTER JACKET. TEAM RE/MAX MGM ENJOYING 5TH YEAR CELEBRATION OF RE/MAX INDIA WITH PARUL CHAUDHARY ACCOMPANYING! Do we need to pay service tax on under construction property? YES How many current projects are there of HN safal group? 15 Iscon platinum project is located in which area? BOPAL Green blossom apartment is having how many bedrooms? 4 Toyota Liva . Built on…. QDR Name the company who have launched project 31IVY ? ORIENTAL Nobody in the world sell more _______ then RE/MAX REALESTATE ANSWERS OF LAST MONTH’S QUIZ COMPETITION CONGRATULATIONS TO MR. VIVEK PARIKH LUCKY WINNER WHO WON I-POD SHUFFLE -
  11. 11. Seminar on Business Opportunities in Real Estate Brokerage Topics to be covered • • • Changing Trends in Real Estate Business Opportunity with RE/MAX How to do Business Nationally & Globally with RE/MAX Date: Venue: th 12 April Hotel Courtyard Marriot, Ramdev Nagar Cross Road, Ahmedabad. For registration call: 8238097782 / 8238150244 Log on: www.whatisremax.com
  12. 12. 17March 14• Real Estate Maximum Real Estate Maximum A home insurance policy is vital in the age we are living in with sudden calamities happening all around. Every day we hear reports of floods, snowstorms, fire, earthquakes and cloud bursts. Insurance will definitely help to protect the structure of your house against these acts of God. But how does it help you? In the case of a house owner: In case of loss due to risks listed in the document, the insurer will pay on the basis of the house’s reconstruction cost. The re- establishment value is calculated on the basis of the built-up area and the construction cost, generally fixed by the company. The terms are therefore straight if the house is on your own land.You just have to estimate the cost of rebuilding ‘which should be the sum insured’ and the insurance company will pay accordingly in case of loss. In the case of an apartment owner: Ifyouownanapartment,thefollowingquestions will arise in your mind. As the policy covers the reconstruction cost, how is the sum insured calculated for a single apartment in a building? Can I buy insurance for such a property at an individual level or do I have to approach the insurer along with other apartment owners? How will the insurer compensate, since there will be more than one claimant in case of damage to the building? Generally, housing societies get the structure of the building insured. This means you have to insure only the contents of the house such as jewellery, electronics and furniture. If the society hasn’t insured the building, you have to buy a cover individually. The insurance plan for an apartment has the same underwriting principles and sets of inclusions and exclusions as a policy for an independent house, irrespective of the floor of the apartment. The insurance is done considering the built- up area and the cost of reconstruction. If the society’s insurance is inadequate, buy an individual policy as a top-up cover. The society not having any insurance or having inadequate cover will in no way prejudice the claims of an individual flat owner. You cannot buy a cover for an individual apartment in the course of its construction since it is part of the entire building structure. While a building is under construction, it should ideally be covered under a project insurance policy taken by the builder. This would be in place until the construction is completed as per the approved plan. After the completion of the project, either individual flat owners or all of them together, as a society, can buy the insurance cover. In case it is a private bungalow or an independent house which the customer himself or a builder is constructing, then the owner can take a cover for the same and change it to a regular home insurance cover after the completion of construction. An insurer can reject your claim if any commercial activity is being carried out from your house. But if the flat is covered under a common policy taken by the society as a whole and if the neighbor violates the policy terms it does not lead to the rejection of your claim. INSURE YOUR HOUSE AGAINST CALAMITIES: TIPS & CAUTIONS- Pranav Pandya
  13. 13. 18 March 14 • Real Estate Maximum Real Estate Maximum Even if the insurance has been taken through an association, each flat owner gets a separate cover. An insurance contract is concluded based on declaration by a proposer wherein occupancy is also declared. So, if your declared occupancy has not changed, for example from residence to a shop, the policy will continue and the claim will not be affected even if your neighbour has breached the contract. The only difference between buying a cover for an independent house and an apartment relates to common areas such as compound walls, staircase, etc. The whole apartment, including the common area, can be insured only by the residents’association on behalf of allflatowners.Insuchacase,acopyof the policy is given to each flat owner with details of the sum insured for individual flats. If an owner feels the sum is insufficient, it can be increased through the association only, If a single apartment in a building has been insured the cost of reconstruction of the apartment is payable to the apartment owner up to the sum insured. However, if the association takes up reconstruction, the amount will be paid to the association only. By and large, the covers and premium rates with various insurers are the same. Therefore, buying home insurance is not very difficult. Few things you should keep in mind while buying a Home insurance Policy: 1. Since sum insured is the basis of compensation, it is important that it reflects the correct property value. Most people make the mistake of choosing the sum insured equal to the market value of the house. However, the company pays on a reinstatement basis, which keeps fluctuating with construction costs. On an average, one can take a 10-15% increase in the cost of construction (this differs from city to city) every year. One can check construction rates from the municipal corporation or real estate websites. However, arriving at an exact figure is difficult. A customer can also opt for an escalation clause for increasing the sum insured every year. “The escalation can be up to 25% of the sum insured. 2. You can either go for an annual cover or choose a multi-year policy. While the annual policy will give you the option to revisit the sum insured’s adequacy every year, a long- term policy offers discounts which can be as high as 50%, depending on the tenure. 3. Though most products look alike, the quality of service may differ. So, it will be wise to check the claim settlement record of the insurer. A customer-friendly approach to reporting and handling of claims will be of immense help in the event of a loss. 4. While most people choose the best of appliances for their home, there is a perceptible apathy towards home insurance, with very few understanding the need to buy it. You have installed sophisticated locks, electronic alarms, fire extinguishers, carried out a thorough police verification of the domestic help and done your best to protect your dwelling. However, we all know that despite the best security and fire protection measures, the risk of thefts and damagesduetofirecanneverbecompletely eliminated. Also, the recurrent earthquakes and tsunami in Japan are good reminders of how vulnerable and exposed our houses are to natural calamities. 5. Compared with the measures taken by you to protect your haven, a home insurance policy would prove to be a much more concrete step in covering such risks. Sadly, apart from a steady demand from the high networth individuals living in expensive homes where the risks are bigger, the factor that is driving the sales of home insurance products is it being bundled along with home loans. The cost of securing your home and its contents is as low as Rs20 per day for a sum assured of Rs35 lakh. But this policy will play a vital role to make good your financial losses in case a disaster strikes. Yet, unfortunately, home insurance policies are the least priority for most and is hardly ever a part of one’s financial planning. The sum assured for a standard home insurance policy which covers your house against perils such as thefts, floods, fire, earthquakes, malicious damage, etc., has two basic parts. The first part covers the structure while the second part is to insure its content. Keep in mind that insurance policies cover your home for its
  14. 14. 19March 14• Real Estate Maximum Real Estate Maximum reconstruction cost and not for its market value. The reinstatement value is calculated on the basis of the built-up area and the construction rate decided by your insurer. For example, if the built-up area of your home is 1,500 sq. ft and the construction rate determined by the insurer is Rs 1,500 per sq. ft, the sum insured for your home structure will be Rs22,50,000. The idea is to get a cover which will be sufficient to rebuild your house in case any harm comes to the structure. Another important factor on which the re- establishment value depends is where the property is located. Premium rates are standard. However, the actual sum assured may differ from location to location due to difference in the cost of construction. Those who do not own the property need not protect the structure, but must consider the content’s cover. Therefore, if you live in a seismic or flood prone zone you might have to pay a higher premium to get the property insured. Moreover, if you have a basement floor, it might be difficult for you to get an insurer to cover it. Sometimes insurers are not willing to include basements in the purview of the policy as the degree of risk in insuring a basement is much higher. Also, the maximum cover amount will differ from one company to the other. However, ‘depreciation’ is the word to look out for in this section.“The cost of replacing the lost item will be settled after deducting appropriate depreciation on the basis of the age of the item. There are sub-limits to the claim one can make in various sections of the home contents cover segment, though they differ from one insurer to the other. Jewellery is one item which generally has a sub-limit of approximately 10% of the total asset cover.” So, if your total content cover is for Rs 1,00,000, in all you can claim is Rs 10,000 for loss of jewellery. To ensure that you have enough for paying rent in case of total loss, opt for an alternate accommodation cover. The exclusion list for this segment is pretty extensive as well. Important items like cash, stocks or bonds, antique items, collections and other property documents are never insured by any insurance company. Also, do not expect to get the claim payment in case the damage or loss is caused by your domestic help. None of the companies cover losses where the insured’s domestic staff is involved, directly or indirectly. Moreover, if you are working out of your home, the policy won’t cover the section being used for commercial purposes and you would need a merchant’s policy to insure it. Buying a basic home insurance policy ensures that the building and its contents are protected. However, if you read the policy wordings carefully, you might feel a need to extend the scope of coverage beyond the standard protection it gives and fill up the gaps. The insurance company has fixed the construction rates according to the location of your property. However, do not forget to revise this value appropriately in case expensive materials like marble or flooring, wooden work, etc., have been used in your home. This will also apply when you do some renovation after you have bought the policy. “Most of the insurers provide an optional cover for an alternate accommodation cover for a limited period, which is usually restricted to 30 days.” Some policies also offer riders like the architect’s fee, cost of removing debris, public liability, personal accident, terrorism attacks, etc., by paying some additional premium. Select these covers only if you need them. The best way to compare and shop for a home insurance cover is to ascertain the types and amounts of coverage you want and then see what different insurers have to offer. This will help you do an apple-to-apple c o m p a r i s o n of the price quotes. Opting for a long-term policy of, say, 10 years not only saves you from the hassle of renewing the policy again and again but can get you a discount on the premium, sometimes as high as 50%. “Ideally, one can go for a long-tenure cover and avail of discounts. Do ensure that you get your sum insured increased if the valuation of your property, based on construction rate, increases. Else, it will become highly inappropriate to be at a lower cover,” “Also, home insurance policies cease to exist when the premises are left unoccupied for more than a specified time period (usually 30 to 60 days). One should choose a plan which offers maximum protection,”he adds. WHAT’S COVERED Fire, burglary and theft Riot, strike and malicious damage Explosion and implosion Earthquake, flood, lightning, landslides, etc. Missile testing operation and aircraft damage Bursting or overflowing water tanks, apparatus and pipes, leakage from sprinklers WHAT’S NOT COVERED Loss or damage by the insured or his employee Cash, cards, stock or other documents Painting, works of art and antiques Loss or damage to any illegally acquired property Loss or damage occurring when the home remains unoccupied, for a long period (usually 30 days) Section of the house used for commercial purposes
  15. 15. Needs of property are more than one But trustable name is only one. Block A, G-5 Safal Proftaire, Corporate Road, Prahladnagar, Ahmedabad - 380 015 Call : 1800 121 7100 www.remax.in/guj_rcs E : guj_rcs@remax.in
  16. 16. 21March 14• Real Estate Maximum The financial year is coming to an end and so must determine where to invest so as to get optimum return and tax benefits. Even though the primary objective is to save taxes you also want that your investments earn good returns. This article is an attempt to analyze the various tax saving investments available and the annual returns that it earns. 1. EPF Employee provident fund (EPF) is the most common tax saving investment. Most of the employeescontribute to EPF. EPF investment is eligible for deduction up to Rs.1 lakh. Return on investment: 8.75% p.a. Point to remember: You should note down the yearly contribution to your EPF account so that you know how much more is to be invested for claiming the Rs.1 lakh exemption under section 80C. 2. PPF You can invest up to Rs.1 lakh in Public provident fund (PPF) and the entire amount can be claimed as deduction under section 80C. Even the interest received and the maturity amount are totally exempt from tax. Tenure of PPF investment is 15 years. Return on investment: 8.7% p.a. Point to remember: PPF interest is calculated by 5th of every month. So, if you want to receive interest for the entire month, invest before that date. 3. NSC Investment in National Savings Certificate (NSC) is also tax deductible under section 80C subject to the maximum limit of Rs.1 lakh. The tenure of NSC is - CA Rahil Mehta, Choksi Tax Services Real Estate Maximum ANALYSIS OF VARIOUS TAX SAVING INVESTMENTS
  17. 17. 22 March 14 • Real Estate Maximum 5 year or 10 year and you can invest in either of the two. Return on investment: 8.5% p.a. for 5 year investment & 8.8% p.a. for 10 years investment. Point to remember: The entire interest on NSC is received on maturity, but the yearly interest has to be declared every year in your income tax returns and tax has to be paid on it. Carefully evaluate the lock-in period and the taxabilitybefore opting for investment in NSC 4. RGESS RGESS (Rajiv Gandhi Equity Savings Scheme) is the latest tax saving option. It offers tax saving over and above 80C limit. This investment is available only to first time equity investors having income up to Rs.12 lakh p.a. The maximum that can be investedis Rs.50,000 and the tax deduction is up to Rs.25,000. Return on investment: 10-12% p.a. Point to remember: RGESS is not so easy to understand as the fixed deposit. For first time investors, it is advisable to invest in simpleschemes rather than investing in theequity market. 5. NPS New pension system is considered one of the cheapest retirement products. The tax benefits on NPS are – 1) Own contribution under 80CCD (1) up to Rs.1 lakh p.a. and 2) Employer contribution under 80CCD (2) with no upper limit. Return on investment: 8-12% p.a. Point to remember: Those who are already investing in EPF should not consider investing in NPS if it is just for tax saving. Also note that it has an equity investment limit of 50%. 6. Fixed deposits Fixed deposits (FD’s) with investment tenure of 5 years of more are eligible for tax deduction under section 80C. It is preferred my many as it is simple to understand and is hassle free for investment. Return on investment: 8.5-9.5% p.a. Point to remember: To avail tax benefit on FD investmentthere is a lock-in period of 5 years. So you must evaluate your decision carefully before investing as your interest rate remains fixed for the entire tenure and you cannot take the benefit of if interest rates increase later on. 7. ELSS Equity Linked Savings Scheme are also deductible under the 80C limit. There is a lock-in period of 3 years and you cannot withdraw your money earlier. These are diversified equity mutual funds which also offer tax benefits. Return on investment: 8-10% p.a. Point to remember: It is better to avoid investing in ELSS if you don’t have knowledge about investment in mutual funds. Investing in ELSS without proper research can even erode your capital. 8. SCSS Senior citizens savings scheme is also a part of section 80C. It is available to senior citizens i.e. citizens above 60 years. This post office product has a maturity period of 5 years which can be further extended by 3 years after maturity. Return on investment: 9% p.a. Point to remember: You cannot withdraw from SCSS before 5 years and the only option is premature closure of the account after 3 years. 9. Insurance Life insurance and health insurance offer tax benefits under section 80C and section 80D respectively. The premium amount of all life insurance policies can be claimed under 80C while premium paid for health insurance is to be claimed under 80D.The maximum deduction for Health Insurance premiumis Rs.15,000 p.a. for citizen below 60 years and Rs.20,000 for senior citizen. Premium for health insurance of your parents can be claimed over and above this limit. Return on investment: 5-6% p.a. Point to remember:For claiming tax benefit under insurance there is a condition that the premium amount should not exceed 10% of the sum assured to be eligible for this deduction. Avoid investing in life insurance policies which mix insurance and investment as the higher charges and other restrictions will result in lower returns on investment. Conclusion These various tax saving instruments are available.But before choosing amongst them, remember that these are also long term investments and so should optimize your tax saving and return on investment. Real Estate Maximum
  18. 18. FRANCHISE INQUIRIES SOLICITED Ground Floor A/5, Safal Profitaire, Opp Prahladnagar Garden, Corporate Road, Prahladnagar, Ahmedabad - 380 015, Gujarat, India | info@choksitax.com Our Toll Free No. : 1800 – 123 – 2100 www.choksitax.com www.facebook.com/choksitax Our Proficiency Book Keeping Services Income Tax Returns TDS Returns Service Tax Legal & Compliance Gujarat VAT Tax Counseling Business Startup Services Taxation Services Dynamic Accountants for Competitive World

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