The managing committee of MCHI-CREDAI, a property organization, has decided to postpone all property exhibitions scheduled for April in Mumbai. This is due to new government policies. Kamlesh Pandya looks at how this will affect home seekers. The article also discusses how existing home loan borrowers can reduce their monthly loan payments by shifting loans to lenders offering lower interest rates, using an example of a man who shifted his loan and was able to reduce his interest rate from 11% to 10.5% while keeping the same monthly EMI payment. It reminds readers to check for better rates regularly to save on interest costs.

1. INSIDE 2 FLORAL FEEL TIPS FOR FLOWER ARRANGMENTS AT HOME
3 HOME IMPROVEMENT BE STAIN FREE LOAN SMART 4
PROPERTY PLUS
A Presentation
COMPLIMENTARY TO THE READERS OF THE TIMES OF INDIA FROM GHATKOPAR TO BADLAPUR AND CHEMBUR TO PANVEL
CENTRAL F R I D AY, M A R C H 3 0 , 2 0 1 2 V O L U M E 6 I S S U E N O 1 7
POSTPONEMENT OF PROPERTY How existing home
loan borrowers can
EXPOS; A REPERCUSSION OF reduce their EMI?
NEW POLICIES
Harsh Roongta
The managing committee of
I
have recently advised my friend Rajan to shift his
the MCHI-CREDAI and all five home loan of Rs 66 lakhs from one lender to another.
His existing lender is charging him an interest rate of
of its units, have decided to 11 per cent per annum. He is paying an EMI of Rs 72,000
postpone their property and the loan still has 17 more years to run. The new
lender has offered him an additional loan of Rs two
exhibitions scheduled to take lakhs at 10.5 per cent but has kept his total EMI at Rs
72,000 for the same 17 years. His existing lender has
place in the month of April, all recently announced that it would not charge him any
pre-payment charges even if he shifts his loan to
over Mumbai. Kamlesh another lender. So, all in all Rajan is gaining a good Rs
Pandya finds out how this two lakhs without incurring any additional costs at all.
Rajan is able to get this benefit only because he has
move will affect the home
GRAPHIC: UJJAY
maintained a perfect re-payment track record. In fact,
the new lender is more than happy to assist him in
seeker shifting his loan to them. He does not have to go
anywhere and has been given a door step service. Rajan
is ecstatic about the development. However, I keep
reminding him that had he been doing this at least four
months ago, he would have saved on a few thousand
rupees of excess payment.
There are people like Rajan who are well-aware that
they are paying higher interest rates than what the bank
would charge them if they borrowed from the same bank
now. Further, they are also aware of the fact that other
banks are more than willing to give them the benefit of
FIRSTLEAD prevailing market rates. The non-action is even more
inexplicable, given the fact that the cost of shifting has
dropped to zero. Housing finance companies like HDFC
and LIC Housing Finance cannot charge any pre-payment
fees on floating rate loans because of regulation and
most leading banks such as SBI, ICICI and Axis have
voluntarily agreed not to charge a pre-payment rate on
existing floating rate loans. The new lender, in most
cases, agrees to provide the loan at nil processing fees.
new projects in the preferred the MCHI- "The MCHI-CREDAI Additionally, they can apply from the comforts of their
pipeline. There is no final CREDAI's exhibitions property expos are platforms homes on online price and feature comparison sites and
commitment that can be where reliable developers where they get to see all get doorstep services from the service partners of the
given for the delivery of would have showcased properties at a centralised venue. websites. Despite all this, I am constantly amazed at the
T
he managing brokers but these won't be homes, due to uncertain their properties and given This helps home seekers take the number of people like Rajan that continue to exist in
committee of the able to replace the expos, policies. Therefore, the best deals to new 'buying' decisions faster. India.
MCHI-CREDAI and all opines Naik. postponing the expos is home seekers. This is a
the five MCHI-CREDAI units Developer Tejas Vyas the only option," he loss to home seekers in >> Continued on page 2 >> Continued on page 2
have indefinitely postponed says, "In a scenario where justifies. terms of not being able to
the exhibitions to be held at the industry is forced to Dinesh Doshi, director, choose their dream homes
BKC, Thane and Raigad in resort to 'high pricing' - Tulsi Group, is one among from the MCHI-CRDEAI
the month of April. So, how because of various the MCHI-CREDAI Raigad platform," he feels.
does one decode the instances of high taxation, unit members who would Similarly, Shailesh
'postponement' and what increase in raw material have participated at the Puranik, MD, Puranik
does it translate into for prices like steel and postponed property expo Builders Pvt Ltd, who
home seekers? Paras cement and unsure in Panvel this April. He would have participated at
Gundecha, president of the policies and ever- says, "Home seekers, who the Thane MCHI-CREDAI
MCHI-CREDAI, is increasing land prices, at this juncture are unit's property show in
circumspect: with the realty 'affordable housing' is waiting for the purchase the end of April, says the
industry coming to a seemingly further and of new homes and are postponement means that
standstill due to the further away. Developers considering this the best home seekers have
prevailing policy paralysis, are left with no choice, time to buy their dream missed out on the 'annual
the MCHI-CREDAI is given that there are no homes, would have carnival' of properties.
postponing all its
exhibitions. "This is done in
spite of a complete sell-out
of the exhibition stalls," he
reveals. The reason - the
data received from the
MCHI-CREDAI member
developers has shown that
no clearances or
permissions have been
received for new projects
over the last 18 months.
"Moreover, several new
rules and procedures,
including new taxes and
circulars, are being
implemented with
retrospective effect and our
members are being
subjected to financial and
reputational losses,"
explains Gundecha. He
points out that the industry
has been assailed by sky-
high prices of land; at times
it constitutes up to 60 per
cent of the project's cost
and a plethora of
overlapping procedural
rules and regulations that
not only inhibit but actually
retard whatever progress is
achieved in a project. "Real
estate projects, undertaken
with a great deal of effort
and secure countless
permissions, NOCs and so
on, are yet brought to a
standstill because of a
sudden change in rules," he
says. "This situation is
appalling," he condemns.
"Property expos are a
good medium to reach end-
users who benefit from the
'good offers' at these
expos," says Santosh Naik,
CMD, Disha Direct. "I don’t
think postponement of the
expos will solve the issues
raised by the MCHI-
CREDAI," he adds. "The
issues raised by the
industry body are valid.
Supply is getting affected
due to these problems. The
state government and the
municipal corporations
should look into these
problems and resolve the
same," he suggests. The
only options left for the
home seekers are
alternatives like real estate
marketing set-ups and
CMYK

2. FRIDAY, MAR 30, 2012
INSURANCE COVER FOR A LOAN TRIM YOUR HERBS
2 If the loan borrower has not chosen the
cover facility, then there is no insurance
cover for the loan. Buying of such
compulsory. However, if the bank insists on
your insurance, then you can always buy
the same from any other insurance
If you have grown herbs in your kitchen
garden, you must know that it is
important to snip the herbs once they are
that the plant can rejuvenate and your
herb garden can thrive. Home owners
should keep in mind, the larger your herb
insurance from the insurance company company and assign the insurance to the about six inches tall. Snip down to a new plant grows, the less intense its flavour
which has a tie-up with the lender is not lender. set of leaves, leaving enough foliage, so will be to taste.
PIC: SHANTANU DAS
POSTPONEMENT OF
PROPERTY EXPOS;
A REPERCUSSION OF
NEW POLICIES
>> Continued from page 1
They will also miss out on the offers which are
given by the developers at these exhibitions.
However, the developer community has not done
this postponement to trouble home seekers. In fact,
developers are fighting for the home seekers’ cause
along with their own. It is a protest against the
government’s apathy and the move to introduce
newer levies and increase taxes which will affect
home seekers," he adds.
"The exhibitions have, over a period of time,
become the most reliable barometer of not only the
entire range of projects coming up in the city but
also, of the rates of such projects across the city,"
says Ajai Kapoor, from 360 Degrees, a real estate
service. "It is the only way in which a common
man, wanting to buy a property is able to get a
snapshot and a consolidated summary of all the
existing and new projects in the city and in its
extended suburbs," he adds. Postponing of the
exhibition will create a gap in the real estate
market with buyers being unable to get a clear
Tips for flower
vision of new options coming up. "They will now
have to focus on the resale options in the locations
of their choices or on older projects which may
have some unsold stocks," adds Kapoor.
At the MCHI-CREDAI exhibitions, home seekers
get a lot of inputs on trends, new launches,
indicative pricing and a general sense of the market
condition when they are amidst the euphoria which
lasts for over four days, says Sandeep Sadh, CEO,
arrangements at home
Mumbai Property Exchange.com. With this
postponement, Sadh sees home seekers now
looking for advice and guidance from professional
realtors and he feels, this will enhance the role of
realtors and therefore, realtors will have to become
more responsible, especially given the new DCR
rules and the recent budget provisions of deduction
of TDS and an increase in service tax, etc. "A lot of
websites offer extensive options on properties.
Thus, buyers will now look more towards the
Purnima Goswami Sharma proportion of powder versus water rotting leaves give rise to certain table. If you have plants at home, a large
internet for information and details on the ongoing
according to the instructions on the bacteria and cause the flower stems to dieffenbachia or a red dracaena are projects," feels Sadh.
F
resh flowers can instantly beautify sachet. Reserve the other two parts of get blocked. They then get no water striking on their own. A great idea for Most home seekers take the exhibitions as an
a room. They make it look the powder for change of water, twice supply and die. the dining table is to use fresh leaves opportunity to analyse and understand the current
colourful, inviting and cheerful. through the week. Alternately, you can “Change the water every alternate day with some fresh roses. Place ‘mogras’ in real estate market scenario and shortlist options,
Fresh flowers kept in the corners, dining also mix the enitre sachet in one go and and cut half an inch from the flower the centre of a flat dish and float ‘paan’ explains Farhan Khan, director and CEO, Studio
tables or even in the powder rooms, are reserve it and use it as and when stems as well. For flowers such as leaves around it,” she opines. If you HIGH Group. "The postponement of the exhibitions
not only eye catching but also, required. This gives nourishment to the amaryllis, alstoermeria, liliums, always want to use a flat dish, cut a piece of an will definitely affect some buying decisions but
immediately uplift the mood. Here are flowers and keeps them fresh,”she adds. cut their stamens (in the centre, small oasis foam to the desired size, wrap it in given that sales in the realty market is still a wait
tips to arrange flowers at home and “Fill the vase with one portion of this pods) when they open as they shed a chicken floral net and use a wire or a and watch option, the postponing of the expos is a
ensure that they remain fresh for long. prepared water, preferably upto three powdery pollen which can stain the ribbon to tie this on the plate and then good decision, only until, the builders have enough
“After you come home with a bunch of inches. In another shallow dish, keep flowers and your clothes,” suggests arrange the flowers. In a glass bowl projects to showcase and home seekers believe that
flowers, cut their stems a little and some plain tap water and cut the Gupta. Never place your flower filled with water, keep tiny pebbles, the market has stabilised,” believes Khan.
condition them by keeping them in a flower’s stem to the desired length. This arrangement directly under drafts of stones or marbles and place flowers or Home seekers will have two options: one, wait
bucket of water in a cool dark place like way, the water droplets on the stem- fans, air conditioners, heaters or sea flower petals along with floating and second, get in touch with consultants to get
a bathroom, for an hour,” suggests Vibha ends prevent air bubbles from getting in breeze. Use short vases for short flowers candles. Keep a mirror underneath for a updates on projects and rates, says Kalpesh Shah,
Gupta, proprietor, Flower craft Inc, who and blocking the passage for them to and tall vases for long ones. A long better effect. Tall, lucky bamboo plants president-elect, National Association of Realtors -
is also an Ikebana artist and a teacher dry,” she elaborates. Leave only a few flower in a short vase will result in loss with flowers look good in tall India. "The property expos are ideal venues for
at the Sogetsu School of flower leaves on your flower stems (they of balance and the flower will fall. Anita containers; add a long cut stem of a aggrieved home buyers to meet developers and sort
arrangement, Japan. “Ideally, buy a unnecessarily consume the flower food) Chopra, florist of Crimson Fern flower money plant and allow it to flow down. things out. After the postponement, this will be
flower food sachet and divide its and remove all the leaves that are outlet suggests, “Choose a tall One large bird of paradise flower sorely missed and I worry about the increasing
contents into three parts. Mix one part attached to the bottom end of it. Clear arrangement in the corner and a shorter combined with a few leaves, makes for communication gap," rues Shah.
with water in batches, adjusting the the area that goes under water, as one in the centre and on the dining a striking display. Consumer activist, Arun Saxena says, the MCHI-
CREDAI property exhibitions are a one-stop-shop
where consumers can get information on various
projects at one place before deciding upon their
purchase. “However, lately such exhibitions have
been receiving poor responses as the prices of
Decor for a first home
properties are very high. So, a section of consumers
may look at visiting such exhibitions as a waste of
time when the products are unaffordable," he
comments. "Unless housing is truly made within
the reach of the middle and the lower middle class,
the industry body should not hold any exhibitions
and waste their time and money," asserts Saxena.
In Navi Mumbai, Ashok Chhajer, chairman, ASL,
points out that, since there are not many new
Leena Mudbidri has a few handy tips to furnish your first home if you haven't had launches or new projects, he does not see home
seekers being deprived of information, given the
time to buy some stylish essentials yet exhibition’s postponement.
We might soon witness the slow death of
property standalone expos, as the marketing of
PIC: VIVEK SARAMBALKAR
be dishing out. A fluorescent lamp is most projects is done over the internet by
perfect for the bathroom and also consultants and builders, says Mohanjeet Singh, MD
conserves energy even if you would want of New Mumbai Realty. "The reach of the internet is
to leave it on the entire night. thousand-fold and the cost is fractional. Many
clients ask for walk-through videos of projects
FAN rather than visiting the projects physically in the
Q It is the most essential fixture, initial selection process," he adds.
especially if you are moving in during the Obviously, he sees no loss to the home seekers
summer season. A table or a pedestal fan because of the postponement. He further adds that
should do just fine. The fan can switch there is no discounting the genuine ire of the
rooms till you go in for a decorative piece industry over the step-motherly treatment meted to
later. it. "The government has to wake up and
standardise procedures and declare it as a
POTS AND PANS recognised industry," Singh concludes.
Q Have some basic cookware to keep
away those hunger pangs when it's too
late to eat out. Buy a set of cups, plates
How existing home loan
and spoons. Having less cookware can
cut down on the washing time too if you
borrowers can reduce
don't have a maid. You can add on the
delicate chinaware as you settle down.
CURTAINS their EMI?
Q Simple, functional curtains that keep
away the cold and bright sunlight should >> Continued from page 1
be your first priority for the living area.
The curtains in the bedroom can be thick The no pre-payment charge regime unfortunately,
and dark coloured to keep the area leaves out a large number of people who have taken dual
secluded and private. Readymade drapes rate loans (low fixed rate loans for the first two to three
and drapery rods are easily available off years that will revert to floating rate loans after the
the shelf. initial period of two to three years). Most of these loans
were given when the non-transparent prime lending rate
BINS AND BUCKETS system was in vogue and it is likely that, if the borrowers
Q A couple of buckets in the bathroom don’t take any action, the floating rate will be set at 11.5
should come in handy just in case the to 12 per cent which is way above the 10.5 to 10.75 per
shower is on the blink. Garbage and cent, prevalent now. A lot of these loans were given in
waste paper bins in the bathroom and the April-September period and are due for a reset in the
kitchen are must haves, especially when next two quarters. If the consumers shift their loans
you don't have the inclination or the when the fixed rate period is still on, the lenders could
drive to clean them out on your first charge a significant pre-payment rate. However, once the
Y
ou have zeroed in on your first SEATING lampshades made of rice paper. You night's stay. dual rate loan shifts to a regular floating rate loan, the
home before actually planning Q If you haven't bought furniture as of yet, could keep them lit on the floor instead pre-payment charges should not be chargeable. So,
consumers whose dual rate loans are likely to shift to a
the furniture and accessories. just have some throw pillows or quilts of suspending them. It casts a welcome CLOTHES HANGERS AND PEGS
floating rate, higher than 10.5 to 10.75 per cent, should
You probably did not have the time to against the walls. Spread some colourful glow all around the floor and walls. If you Q You will need hangers and pegs for the
talk to the new lenders at least 15 to 30 days before their
plan on what to buy for your home ‘dhurries’ or straw mats. The mats with have not been able to arrange for fancy closet as well as for the washed and wet
loan turns into a floating rate loan. They should keep the
since you were busy working out the 'zari' work on the sides look trendy and fixtures and lamp holders, then a simple clothes. If you have forgotten to buy that
credit and property sanctions ready from the new lender
finances to acquire it. If you are keen make your living room cheerful. and functional table lamp with an easy clothes rack, hangers should come in and should apply to their existing lender for transferring
on designing the interiors gradually, switch mode should do the trick for the handy to dry out the wet shirts and tops their loans as soon as it turns into a floating rate loan
here are a few tips on the bare LAMPS time being. A hanging lamp in the on your first morning. Stick on some pegs and get the benefit of the prevailing market rates.
essentials for a first- time-home to Q For the living room, you could try kitchen, especially above the cooking behind the bathroom door if you haven't
make it look warm and inviting. something different by hanging colourful area, should throw light on what you will had the time to put up the clothes rod. (The writer is CEO, Apnapaisa.com)
CMYK