Tips To Make Earthquake Resistant Buildings

Sources: Google India Images

Earthquakes can be devastating for any infrastructure when they measure high on the Richter scale. Especially, in India where the earthquakes occur mostly above the Richter scale of 5, infrastructure needs to be strong enough to withstand them. From Latur earthquake in 1993 to the one in Bhuj in 2001, numerous Indian regions witnessed the mighty power of earthquake. After these events, the Govt. of India took strict measures in implementing construction standards for building earthquake resistant buildings especially in earthquake prone areas of the country.

Here are some of the tips that you might find useful in order to meet the constructions standards for building earthquake resistant buildings in India:

Analyze Soil Stability

The ground quality is a major factor in determining the earthquake resistance of a building and it is measured with the stability of the soil in that location. There should be no risks of mudslides or rockslides in the area. One of the most stable soils is found in areas like hillsides, marsh areas or river beds.

It is recommended to consult a soil engineer or soil specialist to accurately measure the soil quality and take the steps accordingly. The most common steps to improve soil stability are building slopes, designing customized foundations or calculating piles according to surface area of construction.

Building’s Geometry

There is a very important reason behind the perpendicular structures being so common all over the world. Structurally, these designs are best in terms of holding the ground of the upper layers of construction, absorbing vibrations and swaying due to heavy winds. The walls should be spliced perpendicular and proportioned symmetrically. In areas prone to earthquakes these designs work the best and provide utmost safety. But it does not necessarily mean that the building must stay only in this format of design. The architects can design and explore possibilities of creating structures that are not load bearing on one side and the weight of the structure is divided equally throughout the beams.

Continuity

One of the most common mistakes that occur in Indian construction sites is the lack of continuity of the structure. To build attractive designs, many builders prefer looks over quality. But the government has taken strict steps against this behavior. It is odd to think that a light building can withstand earthquakes only on 4 foundation pillars. Once you start building the second layer over the first, the load bearing falls on the pillars making them weak. It is important to analyze the structure and at least create a 5 pillar structure for further possibility of higher layers of construction without making the building earthquake prone.

Material Resistance

The construction material used plays one of the most important parts in determining the earthquake resistance of a building. That is why, builders search for only the best quality TMT bars in India to provide the best frame of the building’s skeleton. The best TMT bars manufacturers focus on providing impeccable quality that features flexibility, rust resistance and shock absorbing quality in order to make the building highly earthquake resistant.

Read More »

Investing in a Tier II City in India

Not sure if investing in a home in a tier-II city is correct for you?

Moving on from metros and Tier-I cities, real estate investors and finding value in putting their money in Tier-II cities such as Lucknow as well. Buying property in these cities is a great way to invest at affordable rates while enjoying a relatively high rental yield in comparison to bigger cities. 

Here are a few other reasons you must consider investing in a tier II city.

• Fast Infrastructural Growth

  One of the key drivers of many states in India is infrastructural development. The Metro Rail project that is being implemented in cities such as Ahmedabad, Lucknow, Jaipur and Kochi is slated to significantly improve connectivity within the city as well as with the rest of the nation. With enhanced connectivity to close by metro cities, there is definitely a peeked interest among investors looking to buy property. 

• Improvement in Employment Options

  With infrastructural development, comes the growth of commercial activities. This makes the residential as well as commercial property market quite exciting in these cities. With more businesses setting up shop in such cities, there is an expected growth in financial strength of the locals. As more talent chooses to move in or stay back in tier-II cities, more people are looking for residential flats today than ever.
  From a business perspective, setting up an office in tier-II cities tends to be cheaper with regards to operational costs, rent, utility, etc. making it a win-win for everyone involved. Investors too find this scenario to be ideal since earning rental returns on their investment becomes a viable option.  

• Extremely Affordable Market

  When compared to metro cities, living in a quintessential 2BHK residential flat in Lucknow is a lot cheaper than living in an equivalent apartment in a bigger city. Today, cities such as Lucknow, Pune, Jaipur, Mysore and Coimbatore are considered to be the most value-for-money markets to purchase a home in. 

• Affordable Cost of Living

  This brings us to our next point. Over and above earning a rental income or finding an apartment that has the potential to appreciate in value the most, for home buyers who intend to use the real estate they purchase, smaller cities tend to be a lot less expensive to live in. Apart from affordable rent and utilities, one is also benefit from cheaper healthcare facilities, schooling and everything else one would expect from an urban city. Furthermore, there is a benefit of living in a cleaner, safer environment that is especially valued by families with the elderly and children. 

• A Lifestyle that Lives up to Larger Metro Cities

  Today moving to a city like Lucknow or Jaipur doesn’t hold you back from enjoying the ways of life followed by those in bigger metros. Today’s tier-II cities are home to large malls that house premium and luxury retail brands from all over the world. In addition to this, they are also home to the best restaurants and night life allowing you to enjoy everything that one would in a bigger city anywhere in India. 

With low property costs, the government’s focus on building smart cities and the lower cost of living, considering investing in a property in a city like Lucknow can truly pay off in a few years.

Read More »

Everything You Need to Know About Real Estate Development

We, the humans have been instrumental with countless masterpieces throughout the world. The rise of placid skyscrapers throughout the world is one of the common examples of this beautification. The beautiful buildings that appear as if kissing the sky and make us stretch our neck; the pleasing house near a seaside we longed to own, etc., are all duet to the exemplary efforts of real estate developers. Some of the beautiful examples in this regard include the tallest building Burj Khalifa in Dubai, iconic bungalow of Mukesh Ambani's named Antilla and many more such beautiful buildings.

What is the business all about? 

Real estate development also known as property development or land development, involving business activities that include purchasing land, developing land, constructing the property, renovating the property, selling and trading the property developed or bare land. All these activities are properly managed by the companies through their employees and thus giving the idea a physical existence. The difference between a real estate development and construction is that construction is just a small part of the real estate development whereas real estate development includes many activities apart from the construction.

How does a Real Estate Developer work?

The working of a real estate developer is divided into small project which is finally integrated into a large property. The typical flow of activity is as follows:

• Purchasing of land 
• Obtaining regulatory approvals 
• Finance for the project 
• Developing the property as per the desired plan 
• Marketing the property to the target customer group using a variety of marketing strategies 
• Managing the property and other allied activities 
• Selling or renting the property in small tranches to outright purchaser.

These developers are thus burdened with maximum risk and have the opportunity to enjoy maximum profits. To reduce the risk, some developers indulge in only a part of the whole process and thus develop a niche working and excelling in the same.

What are the recent trends in of Tier-2 cities? 

In recent times, apart from Tier-1 cities, real estate developers are stretching out to city outskirts or Tier-2 cities such as Kanpur, Noida, Varanasi, Ghaziabad and many more. These locations are low on investment requirement and with the rising rural disposable income, these locations provides higher demand as compared to the city properties. A large number of reputed developers are focusing more on projects like township in Kanpur Road rather than the expensive real estate properties of the main cities. 

The developers involved in such projects need to work with high quality of construction technology and make decisions, extensively focused towards the customers, such that the trust of the customers is kept intact and value is created for customers. Many a times the customers are so impressed with a particular real estate developer work that they become repeated purchaser for a long time. A strategic plan is required to carry out all these activities. These developers are formed with the guidance of their founders who are renowned persons in the locality and thus the developer firm enjoys firm leadership and rich experience which helps the firm in completing the projects.

How does a Tier-2 city real estate development project function? 

The township in Kanpur Road though being on outskirts of the city but provides good connectivity to stations, airports, schools, markets and many such important places such as access to the main city of Kanpur and Lucknow itself . Development of such properties from reputable developers give rise to the local economy and thus providing employment and business to a large number of local workers and suppliers. Also such properties are developed by highly qualified and experienced team of professionals with vast industry exposure by using the latest innovation in their field. 

With the advent of rising disposable income of small city population, there has been a surge in real estate development in city outskirts and Tier-2 cities, such as the township in Kanpur Road. This has given rise to reputable developers working towards providing quality work and value for the customers using their expertise.

Read More »

How to Save Tax on your Home Loan?

Owning a home is a matter of pride for most Indians. For majority of the people, it is a long cherished dream. However, considering the constant increase in real estate property prices, it is not easy for everyone to purchase a house exhausting all the savings. Thus, most people go for home loans to turn the process of home buying easier on the pocket. Getting a home loan is no more difficult with banks and several financial entities offering such loans on easy clauses. Moreover, one of the remarkable plus points of getting a home loan is that it helps you save tax. By getting a home loan, you become eligible for tax rebates under Section 24 (b) and Section 80 (c) of the Income tax regulations. Whether you are planning to 2 BHK flats in Lucknow or something larger, it would be wise if you assess your capability to repay and sustain the payments for a long period of time.

Tax Benefits Estimation 

Under Section 80 (c), on principal repayment, you will become eligible for a tax deduction up to Rs. 1.5 Lakh. Moreover, under Section 24, deductions are allowed on the interest of the loan you have acquired. For a self-occupied property, this is restricted to Rs.2 lakhs. On the other hand, for a property that you have offered for rent, you can claim unlimited amount of interest as deduction under Section 24.

What Should be Done for a Self-occupied Property? 

According to the I-T Act, the total limit under Section 80 (C) permits a total deduction of Rs.1.5 Lakh, no matter how much interest is paid. But, you should be careful while requesting for a loan as it will save considerably on your tax outgo.

Opting for a Joint Home Loan May Be Beneficial 

Whether you are planning to purchase 2 BHK flats in Lucknow or apartments bigger than that, you will be able to enjoy huge benefits by opting for a joint home loan. You will not only be able to share your debt-burden with your co-borrower but at the same time, will be able to request for a higher amount of loan since the income of your co-borrower will be taken into account. From taxation perspective, a joint home loan is better as under Section24 of the Income Tax Act, the co-borrowers are eligible to claim tax deductions against the repaid interest and under Section 80 (C) against the repaid principal amount. Each co-borrower will be able to enjoy tax benefits proportionately with respect to the interest and principal paid in a financial year. 

Remember, the above mentioned tax benefits can be enjoyed only after you get the possession of your property. This will not be applicable in any way for a property which is still under construction. Again, if you are already bearing EMIs for a property that is under construction, you will not be liable to claim any deduction for the principle repayment until the completion of the construction work. The advantages of tax deduction can be availed for the interest component but just from the year of construction completion. In spite of this, you will be able to claim for all the interest paid during the years of construction.

Why Don’t You Offer Your Property on rent? 

In specific instances, people choose to stay in a rented property even after buying a property with a home loan. Specifically when your workplace or your kid’s school is a bit far from your newly-bought apartment, you may choose to stay in your rented house. In this case, it would not be wise to keep your property vacant but offer it for rent. In this instance, according to the I-T Act, irrespective of whether you have rented a house or not, the annual rent will be entitled to a standard deduction of 30% which is much more than the interest paid on a loan. For such a property, you need to pay tax on the deemed income you extract from the property. Know that no limit is there on the amount of interest that can be claimed as a deduction. Looking from this perspective, it is better to offer your property on rent rather than keeping it vacant. 

Browse through the blog to know how to save tax on your home loan. This blog will be useful for those planning to get loans for home purchase.

Read More »