A Design Cafe, which is a Bengaluru-based interior designing firm, has been doing for many years. Co-founded in the year 2015 by the couple identified as Shezaan Bhojani and Gita Ramanan

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align”justify”The firm has a strength of over 800 workers, designed 5000 homes across India and featured in over 30 design publications across the world. The company has won several awards for their products that are manufactured in elegant designs. The couple is looking to make Design Cafe the most trusted home interiors brand in the country.

Let’s learn about their journey. Shezaan and Gita both graduated from the same BMS School of Architecture, Bangalore, and this was the place where they first stumbled upon each other. They started developing a good understanding for each other and they became life partners. But little did they know they would also become work partners. They share a great deal of relationship as they have known each other for almost two decades and have been working together ever since passing out of college.

Their professional life kick-started when they bagged the interior design project of an 800-apartment complex in a contest. Despite the fact that they were not into entrepreneurship, the greatest achievement of the 800-apartment complex project literally changed their minds. It was then they started the firm DesignInc. and went on to design over 500 projects across India in several sectors including residential, commercial hospitality, and institutional design and continued for the next ten years which helped them learn the tricks and trade of the business.

Today, Design Cafe is a successful brand and has a staggering turnover of approximately Rs 120 crore each year. The company has as many as four stores in three major cities – two in Bengaluru, one each in Mumbai and Hyderabad and has a workforce of 800.

Real Estate during Lockdown in Hyderabad is Home buying affordable?

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Real Estate during Lockdown, Home buying to be affordable

In order to push demand, amid the economy staring at a 2.5% growth in 2020, the government has launched several measures to make property buying affordable for consumers. Low interest rates and likely corrections in guidance values, could make purchases more affordable for the middle class. As it is, the tax deduction limit for first-time home buyers has been increased to 3.50 lakhs per annum, under Section 80EEA.

Interest rates to fall

The RBI has already brought the repo rate, at which it lends to banks and the rate which ultimately decides how much interest borrowers pay on home loan, to a record low of 4.4%. This was done by the banking regulator, to cushion the possible blow caused by the spread of the virus on demand in general and the economy in particular. This reduction in repo rate would make home loans more affordable for buyers. No hike in interest rate is likely, at least in the short to medium term.

Real Estate during Lockdown, Project delays may increase

Home buyers may have to wait for longer for the delivery of housing projects that were scheduled to be completed in the coming months. While construction activity has come to a halt for now, it is also not likely to pick up much speed even after the country is able to afford some normalcy. This situation might also force builders to ask for the Force Majeure clause on delays.

Construction to slow down

Amid a nation-wide lock down to slow down the Corona virus spread, thousands of migrant workers, mostly daily-wage workers, resorted to mass exodus. Since the construction industry in India largely depends on this unorganised labour force, activity is going to be slow, even when things gradually come back to normal.

COVID-19 Real Estate market has impacted due to Lock down. We look at what home buyers and sellers can expect from Hyderabad’s real estate sector, in a post-Corona virus world

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The Corona virus pandemic, which is likely to erode trillions of dollars of wealth. As a result, it exacts huge human loss upon the world. Likely, to reshape property markets as we know them. Here’s a look at what we can expect from India’s real estate sector, in a post-Lockdown world.

COVID-19 Real Estate Lockdown -Site visits to fall

Prospective buyers would carry out a large part of their searches and research online. However, Once they shortlist a few properties, they may undertake a physical visit of the sites. As a result, they can take the final call. If anything, sellers and developers have a reason to be happy about this likely change. Meanwhile, as those visiting the property are likely to be genuine buyers. Subsequently, who are in the last leg of making a decision. In addition, This also saves a lot of time and energy for all parties concerned.

Will property prices rise?

In case, you expect housing prices to crash in the backdrop of the Corona virus scare. On the other hand, you may be disappointed. Therefore, as a result, Building and development may become costlier for builders. Above all, amid likely delays in supplies and government approvals. Consequently, This would reflect in pricing, as well.

For a variety of others reasons — primarily springing from the fact that even the top-rated developers in the country are already under tremendous monetary pressure, because of an ongoing slowdown in the housing market — chances of property prices dropping will be slim.

Home buyers may have to wait for longer for the delivery of housing projects. Meanwhile, that were scheduled to be completed in the coming months. While, construction activity has come to a halt for now. Further, it is also not likely to pick up much speed even after the country is able to afford some normalcy. This situation might also force builders to ask for the Force Majeure clause on delays.

In COVID-19 pandemic should one consider a property investment?. While the obvious answer seems to be ‘no’, there are many upsides to investing in a real estate asset right now.

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Countries across the world are busy fighting the Corona virus pandemic. While, businesses are struggling to keep their workforce afloat. Uncertainty is widespread, in terms of jobs, career, finances, dividends, stocks or bonuses. However, this has also affected home buyers. Including, investors who were considering real estate investment before the disease started spreading. In addition, the lock down has brought economic activity to a standstill. Therefore, affecting consumption and income. Amidst all this, should one consider a property investment? While, the obvious answer seems to be ‘no’, there are many upsides to investing in a tangible asset right now.

Benefits of investing in real estate during the COVID-19 pandemic

Newly-built housing complexes in the absence of a society, some residents continue to lead life. However, like always within the society, with children playing in the park, people walking in the complex, etc., which should not be the case

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In a bid to control the Corona virus outbreak, the Indian prime minister ordered a 21-day lock down that started on March 25, 2020, which has now been extended till May 3, 2020. Social distancing, which is crucial to avoid the spread of the virus, is being followed meticulously by housing societies across India barring a few. These exceptions are mainly people who belong to complexes that do not have a society in place that can enforce and take disciplinary action. Moreover, some residents continue to lead life like always within the society, with children playing in the park, people walking in the complex, etc., which should not be the case.

Who should maintain the society before OC is given for newly-built housing complexes?

Under Section 11 of the RERA, it is the developer’s responsibility to handle the maintenance, till the project is handed over to the society.

By when should a developer hand over the society?

Under Section 17 of the RERA, the developer must hand over the control to the residents’ welfare association, within three months of obtaining the occupancy certificate.

Who should implement COVID-19 rules in a housing complex?

Newly-built housing complexes that do not have a society in place. Consequently, may have trouble implementing rules pertaining to the entry of visitors. But, house helps and drivers, among others. In such cases, the onus falls on the developer of the complex. “Assuming it to be a newly-constructed building in a Real Estate Regulatory Authority (RERA)-registered housing project, compliance with Section 11 of the RERA Act will be mandatory. Under Section 11, till the time the maintenance of the project is handed over to the society, it is the developer’s responsibility to handle all the affairs. This transfer of control, under Section 17, must take place within three months of obtaining the occupancy certificate (OC).

Cold calling is must business continuity, brokers should maintain steady communication with prospective clients

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What is cold calling in real estate?

Cold Calling are pre-planned telephonic conversations in the hope of establishing a possible communication between a prospective home buyer and the broker/seller. It helps as a reference point, where you can settle a buyer’s curiosity by answering his/her queries on pricing, availability, USP, details and more so, know his intent in the first place.

Best practices in COVID-19 times

Understand the intent, gently

It may not be the right time to weigh heavily on people. You can never know if a particular family has been impacted by the Coronavirus pandemic. Hence, try to understand the buying intent gently and do not go overboard. Restrict calls if you hear ‘call later’, ‘I will call you back’ or ‘not interested’. Do not be in a rush to call them back. It may be better to pause, before you go at it again.

Don’t beat about the bush

Relationship building is one aspect and maintaining professionalism is another. At the cold calling stage, get to the point quickly. Given that most people are working from home, while they may have time, you never know about their work and rest schedule. Approach people politely and understand their preferences first.

Call etiquette

Do not call very early in the morning or late at night. Lunch hours are also not good. Call at a time when you think that a prospective client may be done with his/her morning chores and is in a good mindset to entertain the call. Ensure that your network is stable and reliable, so that you wouldn’t need to call repeatedly.

Keep your script ready

Keep your notes handy, if you feel you may miss out on a couple of good points. Create an agenda and structure on how you would pitch a property. There may be many reasons why you are cold calling. It may be to test the intent, following up on leads from online advertising, referrals, reviews, etc. In all these, your script may have to be different for each situation. Do not fumble, as you may end up wasting someone’s time.

The Coronavirus has brought a lot of uncertainty for Resale Property. At this point, sellers who are stuck with their money in the resale market, can follow these tips to find buyers for their properties

Resale Property in the context of real estate. If the Novel Coronavirus spread has taught us anything, it is the worth of technology. While technology is making it easier to get over boredom and isolation, it is also helping the property market to connect investors and home buyers with the sellers.

Developers are preparing for digital project launches and property portals are gearing up for full-stack digital platforms, to facilitate transactions and video tours. Sellers of secondary homes should also get ready to face this new market.

Use online real estate portals

You can register your property, mention the details and upload photos, to garner more interest from prospective buyers. Since the individual listing is for free, your contact details will be shared with the potential client, as soon as they show interest in your property. This is one of the easiest ways of generating leads for free. However, keep your expectations realistic. The market is slow and getting an interested lead could take days.

Create a video of Resale Property

A picture speaks a thousand words but a video speaks a million. A video walk-through can easily be created using your smartphone camera. Make sure the property is clean and nicely lit, as you shoot. You can start from the outside of the house and then proceed inside, so that there is a clear sequence of rooms and different areas. You can upload this video on your property listing, as well as social media handles.

Reach out to local brokers and use their network

You can also contact property brokers in your locality and use their network, to market your property. While you have to pay the commission to the property agent, you will be able to exit the investment soon with the help of professionals. You can ask them to get a professional photo shoot done to, provide a better virtual look to your property. While the commission could be higher, you have to be clear about what your priority is.

Use social media for Resale property

This is the time to use your social media network for your benefit. Create interesting graphics or use property photographs to tell your friends that you are looking for a buyer. While this might be a tough way of finding a potential lead, you might get references from your friends who can help you.

In these difficult times, you can rely on your friends and network for help. While there is no certainty on when this will end, you can only hope for better days ahead and enough liquidity in the market, so that you can exit the market soon enough.

RERA : The Real Estate (Regulation and Development) Act, 2016 has been enacted by Government of India. Some sections of the Act were enforced from 1st May, 2016 and all the sections of the act came into force from 1st May, 2017. As per the act, all states must appoint a Real Estate Regulatory Authority to ensure that the purposes of the act are carried out.

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The Real Estate (Regulation and Development) Act (RERA) has brought to the fore a growing incidence of consumer dissatisfaction, in dealing with real estate developers and service providers. Telangana State Real Estate Regulatory Authority deals in delays in project deliveries, cost escalations during construction, lopsided builder-buyer agreements and the absence of an effective enforcement mechanism, have all led to growing consumer frustration and resulted in an increased number of complaints being brought before the Regulator.

This has put tremendous pressure, on not just the Real Estate Regulatory Authorities but also the judicial system, as cases continue to be filed with civil and consumer courts. Therefore, there is a pressing need to resolve disputes, using alternative dispute resolution (ADR) mechanisms – which as a phenomenon, is not new to India. In fact, the conciliation forums under the RERA provide parties an option to settle disputes outside of the courtroom.

The scope for alternative dispute resolution mechanisms in real estate: by RERA

The most commonly propagated and used forms of ADR, continues to be arbitration, negotiation and mediation. The decision, to opt for one of these, in turn, will depend upon the peculiarity or type of dispute that arises and the need of the parties involved to control costs, maintain confidentiality and have a definite judgment announced with respect to that dispute, among other considerations.

Advantages of alternative dispute resolution

The use and advantages of ADR are directly linked to contract enforcement and management. Contracts are agreements between different stakeholders and where contracts are enforced or enacted, there is a very high probability that conflicts will arise. In almost all cases where ADR has been used, it has formed a part of the contract, where the parties involved have previously consented to use this mechanism, to reach agreements on possible problems that may arise in the future.

The need for specialists, in dispute resolution processes

Whether parties are approaching a specialist dispute resolution services organisation, resolution boards, mediation councils, regulators or the like, they should be assured that the professionals overseeing the dispute/challenge have the requisite skill set to understand the nuances of the same. These professionals typically should specialise in areas related to engineering, construction and commercial law, technology, intellectual property, infrastructure and construction financing, among various other facets of construction and infrastructure development.

Home Buying is a long-term accommodation, we look at what makes better sense – living in a rented house or buying a property – and the factors that one should consider before opting for each

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When it comes to living on rent versus living in one’s own home, people who advocate the former often argue that a rental home costs less, as compared to owning a home. Those who favour owning a house, cite the freedom that it offers. While owning a home is typically the dream of every Indian, sky-rocketing property prices in the recent past have led people to opt for renting, rather than buying.

However, if one is certain about the city in which one is going to stay in the future and has the necessary funds for the down payment and stable future cash flows, it is highly recommended to own a home. Owning a home forces savings, in the form of home loan EMI payments, which most people would otherwise spend, if they rent a property. Rentals may seem cheaper compared to the EMI in the short run but in the long run, it is far higher than the cost of the house and the rental cost cannot be recovered. Owning a House is a better option.

Advantages of Home Buying over rental accommodations

The main benefits of living in one’s own home, rather than a rented home are:

• A sense of security and pride in home ownership.
• You will not have to face increasing rentals.
• When you buy a house with a loan, you are already aware of the EMI required to be paid over the long term. Hence, the future costs are predictable and more stable.
• There is less likelihood of interference in your life, when you live in your own home.

‘capital gain’ when it comes to real estate and what are the tax implications of long-term capital gains for a property owner?

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Capital gain refers to the profit that one earns through the sale of a capital asset, such as real estate, or even stocks or bonds. It is the difference between the selling price of the property and its purchase price. Depending on the period for which the property was held, the capital gain can be either a long-term capital gain or a short-term capital gain.

The gains arising from the sale of a property that has been held by the assessee for more than a specified period of time, is termed as long-term capital gains (LTCG). In the Union Budget 2017-18, the finance minister proposed to reduce the tenure for LTCG from three years to two years. With this, any immovable property that is transferred after April 1, 2017, will be treated as long-term, if it has been held for more than 24 months. This move is expected to be especially beneficial to property investors, who are looking for a quick exit option to switch their investments or to book profits.

Tax on Long-Term Capital Gains

Any immovable property held for more than two years, is treated as long-term and the profit on such sale is taxed at 20 per cent, plus cess and surcharge. However, a taxpayer can claim exemption from long-term capital gains tax, under certain conditions:

• Section 54 exempts LTCG tax, arising on the sale of a residential house, if the indexed capital gains are invested in the purchase or construction of another residential house, within the specified period.
• Section 54F exempts LTCG tax, arising on the sale of any asset other than a residential house, if the net sale consideration is invested for the purchase/construction of a house, within a specified time period and subject to fulfilment of certain other conditions.
• Section 54EC allows an exemption of up to Rs 50 lakhs from LTCG tax, if the indexed capital gains are invested in government-notified bonds, within six months.

With respect to investing capital gains in the purchase of a new house, if, till the date of filing one’s income tax return, the gains are not utilized to purchase or construct another house, then, one must deposit the unutilised amount in a Capital Gains Deposit Account in any public sector bank. The new house can be purchased or constructed, by withdrawing the amount from this account, within the specified time limit.