Free office space for Indian company who is looking forward to setting up business

Nottingham is counted as the one of the lesser known or popular cities in the United Kingdom. The city has now come forward and announced that they will be offering free office space for Indian company who is looking forward to setting up business in that region. This office space will be completely free of cost for a period of two years. The main reason behind this announcement is solely to encourage all the Indian companies to look at London not just as any business location and more forward with that. As far as the city is concerned, the City Council of Nottingham comes under the East Midlands region of the United Kingdom.

The Nottingham city:

According to Nat Puri who is a Punjab-born businessperson as well as ambassador of Nottingham, the city is not limited to be only considered as the ultimate destination for setting up business but being cost effective, makes the city a much more fun place to stay in contrary to what other Indians feel, I came to the city just like that but ended up falling in love with the space. Representing the Nottingham City Council, Mr. Puri stated that the announcement is not a rumor but it is to encourage people to come to the city and own a 250 square meter office space, available in the heart of the Nottingham city. The business owner does not have a pay for atleast a year or two for that acquired office space. This move is towards breaking out the inertia and encourages Indian companies to explore the business options in the city. It is all about exploring out the business opportunities in the city.

According to Nottingham City Council’s Director of Economic Development, Chris Henning, this move is about providing soft balance for Indian companies. He further added that the city offers attractive investment platform for companies especially from India. This all can be attributed to the innovative businesses, which are developing faster than before apart from academic interest, making the city ultimate gateway for Traders in Europe. This is a long-term strategy targeted towards Indian businesses led by the council and comprises of companies like University of Nottingham and Nottingham Means Business. The main strategy is about building trust through Investment Bridge, which has proven to attract Indian businesses.

Chris also made another announcement to the University of Nottingham that requires them to work along with the Indian Consul General’s office located in Birmingham. According to Shuchita Sonalika, who is the Director and Head of CII’s UK operation; there has been a sudden increase in the interest shown by the Indian companies towards exploring business opportunities in some of the less popular area of the United Kingdom. Reports suggest that even Air India is looking forward to expanding their business around some of less known placed in the UK and might look into East Midlands airport as their hub for starting new flights. Nottingham city is known for having the highest employment rate in terms of knowledge-based services. The city council is focusing on the Nottingham city to make their regional business engagement strong.

These days, Boisar in Thane is growing as one of the favorite destination for established real estate developers to launch affordable projects. Here buyer can own a home in very reasonable price, which starts from Rs 15-25 lakh. Some big names are such as; Mahindra Lifespaces and few mores are undertaking the residential projects in Boisar and later these projects will cater the demand of homes in affordable price. Soon this locality will tout to be the hub of premium affordable homes in Mumbai.

What attracts the real estate developer in Boisar?

Now big names of industry have started the real estate projects and because of that this location is known as the hub for affordable homes due to availability of easy parcels of land. Real estate experts are saying it’s just a simple demand supply statistics, and said that it is expected that Boisar will receive the proper local demand for home in affordable price from those people, who are working in the Boisar Industrial area. These peoples are looking or homes in the range of Rs 10-15 lakh budget. This current demand always existed in the locality for real estate investment. Boisar locality is also witnessing the high demand from nearby locations such as; Virar, and more because these locations have gradually become expensive.

Buyers are not comfortable to buy property in Virar region due to increased property prices.  Boisar is one of the perfect locations where one can buy the property in affordable price with quality and basic amnesties. Boisar location is the preference of buyers to find the home within the Mumbai municipal limits beyond their means. Developer are realizing that people are targeting the Boisar region for owning the property, and the locality also offers the large land parcels, which are comparatively cheaper for developers to acquire land.

Boisar is also one of the best regions for investment as projects that were launched before three years with Rs 1,500 per sq ft are now stands in the range of Rs 3,000-4,000 per sq ft. Locations in affordable price is the primary venues for commercial establishments like; SEZs, IT parks and many more corporate houses because they are moving in these areas for better space availability in low price and also to access the suburban manpower. So, if you are looking for affordability near Mumbai than buy the property in Boisar because here you will not have to compromise on amenities and luxury.

Acquiring a house which later one becomes your home is not an easy decision and required lot of investment, time and knowledge and planning all the amenities that you are looking in your dream home. So if you want a home which not only should provide a sense of satisfaction but also  and have limited finance then probably it’s time to consider  or Mortgage Loan or Housing Loan.

Purchasing and reconstruction of house in easy for people having finance backing them up and if you don’t have that back up then probably time to resort to Home loan or housing loan. Home loan is loan which is funded by the banks against putting another home or property as security. But in this case if the borrower fails to return the loaned amount then bank has the right to sell the property to retrieve their money back. Housing loan is taken by a borrower and issued in form of loan from bank against security or property.

It is important to do a complete research when looking for options for either home loan or housing loan. Different banks have different rates and policies for each of the type’s loans. When a loan is taken against property or by any real estate, it is known as mortgage loan. In this the buyer received certain funds by entering into a contract they will be returning a certain amount of amount along with certain interest amount. The mortgage loan is mostly taken by real estate developers to buy new property or develop a new project.

Interest rates for Home Loan or Mortgage Loan or Housing Loan:

If you are looking for Home Loan or Mortgage Loan or Housing Loan more than Rs 20 Lakhs then the interest rate may vary from 10.10% 11.75 % depending on the banks as well as depending on the state in which you want the property. With the increase in the number of available properties there has been a dip seen in the interest rates of maximum 6%.

But if you are a developer and want a Mortgage Loan, then again you have different interest rates. A property between Rs 30- 75 Lakhs will have the interest rate of minimum 11.25% to maximum upto 15% (depending on the bank you will be approaching).

US NRIs have been always keen on investment in their home country. The demand for Indian real estate is estimated to be 25-30 lakh. However, it is not the same case in all the Indian cities. There are end users who want to invest in some specific cities for their families preferences as well as investors looking for time to time returns on investment.

Apartments are the most preferred choice by a majority of NRIs but the demand mainly revolved around units in the price range of Rs 60 lakh to Rs 1.25 crore. Incidentally, NRIs from California region are less interested in villas for cities like Bangalore and Chennai. Other cities that drive demand include Hyderabad, Mumbai, Pune and Delhi. However, the demand for Hyderabad has raised especially after the bifurcation of the state into two.

Among the secondary cities that drew demand were Coimbatore, Mysore, Mangalore, etc. There has been a constant demand for medium-term investment in selected options like developed plots in the price range of US$10,000-30,000. NRIs prefer to leverage the appreciation to invest in larger units at a later stage as they are very well aware that land appreciates at a much faster rate in India than any other asset.

Time to time returns on investment through rental income and availability of property management services are among the major criterias for investors to get interested in investment in integrated township projects.

NRIs from cities like Houston show high level of interest towards Indian real estate as their local market does not provide the flexibility of deploying funds locally in order to earn more rental income. Thus, as per the realtors there is a shortage of housing in the local market.

The demand for villas priced over Rs 3 crore did not evince much response as high-end units require specific marketing and not typical property shows targeted to attract all types of investors. Instead exclusive road shows and HNI meet are more better options which would prove to be beneficial for real estate developers while marketing niche products among target audiences. But this has to be well packaged as investors are more interested in the after-sales services offered by the developers through property management companies in today’s scenario.

The real estate sector is considered as one of the most important sectors for the economic growth of the country. With very promising plan of providing housing to everybody maximum by 2020, the new government headed by Prime Minister Narendra Modi has taken a very important decision in making few amendments in the law related to the real estate sector.

Finance Minister, Arun Jaitley is encouraged to take pragmatic approach towards the current Income Tax Act scenario. Mainly real estate sector should be given some relief with some positive amendments in the Income Tax Act which will in-turn act as a booster for the growth of real estate sector.

Here are some key pointers for the Finance Minister:

• Loan amount with Higher deduction

In the previous years In 2001, Finance Minister has raised the interest deduction limit on housing loan from Rs 30,000 to Rs 1,50,000 for individuals and Hindu Undivided Families (HUF).

In the record history of last 14 years, the house prices have raised only. On the other hand, with high paying jobs people have better financial conditions which is further adding to investment costs. So, it is very evident that new real estate development and the investment, both, are going up.

But we should not forget that along-with increasing number of millionaires and multi-millionaires coming up, demand of housing is also rising constantly. Currently, the amount of deduction allowed for the housing loan is just Rs 1,50,000 per annum, which implies that on an average, just for Rs. 15 lakhs  a house can be purchased and the deduction for interest on loan being allowed up to Rs 1,50,000 only.

The government’s take on this for improving the real estate sector should be an increased deduction for interest on housing loan to minimum Rs 2,50,000 especially considering the rising prices.

• Developers with small housing projects should be given tax exemption

Currently, all the developers have too pay taxes on their income irrespective of the size of projects they are building, thus, even if a builder is developing a residential house of 1,000 sq ft he has to pay the taxes. So, if the government wants all the developers of India to construct affordable houses for the common man, it should grant exemption in the income tax to the developer and also developers should also be asked to reduce the selling cost. Such dynamic approach can help in resolving the housing problem in the country.

In fact, this type of provision was there before in the past, in which tax deduction was allowed through Section 80IB (10). According to which if a housing project was taken on minimum 1 acre of land and the houses were built up to 1,000 sq ft in metropolitan cities or 1,500 sq ft in other cities of India, the developer was provided with complete exemption.

• Reduce the Stamp duty rates

There is a different stamp duty rates in different states of India for all real estate transactions. If the government is really keen on a big growth in the real estate sector and would want to see a fast turnaround of property buying and selling transactions, then this is the time to implement the concept of stamp duty in India, which is widely applicable overseas where half per cent or one per cent stamp duty is payable.

• Investment restriction on commercial property

Currently, if a person is selling his residential/agricultural property, he can save tax on capital gains taxes through investment in another residential/agricultural property of his choice. But, in case of a commercial property, he can’t reinvest in any other commercial property or a commercial space in a mall or a shop. Hence, the current Income Tax Law should be amended for allowing investment in commercial property out of the sale of another commercial property in order to save tax or Long Term Capital Gains.

• Bring in the concept of Real Estate Investment Trust (REIT)

In the last few years, government did try to implement the concept of Real Estate Investment Trust (REIT) in the past which is already a well-developed business concept in many developed countries of the world. The government should make realistic rules and regulations for framing guidelines to set up REIT especially for the small investors there should be a provision to form REIT.