Sunday, September 27, 2020

Man, Vision & the City!

 










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-When I got call from my media friend, Mahesh Devraj about their daily’s special edition at National level for Pune’s real estate, it was for discussing topics & what we should focus on. One good thing rather positive from the print news media is they have understood their  vital role in boosting moral of the masses  which is very important aspect for all businesses & not just the real estate. As people need to come out of the fear spread by not the pandemic & health issues but because of entire uncertainty it has created in all segments of the society. And when you are uncertain about the future then you don’t spend or you spend for only the essentials & many a times you get confused between what’s essential & what’s not; & in the process you tend to mark many really essential items also as non-essential & a home is not exception to this basic law!  So when a major news-paper is taking lead to make people know about importance of buying a home or to make common man aware about the scenario in real estate, then it’s definitely heartening as this is how we prosper as a society in totality!

 In the flow of discussion one name prominently came forward i.e. Mr Satish Magar, as a developer from Pune who is presently heading Credai National, is definitely matter of pride for the city &  to have his vision for this edition would be icing on the cake is what we agreed. And then Mahesh said why not you only conduct his interview as you know the city & development & you can explore best out of Mr Satish Magar which I agreed to though reluctantly as it was a tight rope walk actually because, Satishda (fondly we call him) is National Head of Developer’s Organization & to ask him about one city even though its where his business operates from, is like asking Hon Prime Minister about his constituency & that too as a PM & not as an MP!  And another issue is I have to be balanced while penning down things & not to try & get in to the shoes of Satishda (very unlikely & impossible job though) yet I accepted as its such interactions with personalities like Satish Magar ji (his National level name) which makes you not just a better builder, businessman but better human being too & here is outcome...

 

Pune, the Future of Real Estate; Vision of 

Mr.Satish Magar, President, CREDAI National!

...Sharing with Sanjay Deshpande.

 

“It doesn’t matter how many times you get knocked down. All that matters is you get up one more time than you were knocked down”... Roy T. Bennett

 

Roy T. Bennett is the author of The Light in the Heart. He loves sharing positive thoughts and creative insight that has helped countless people to live a successful and fulfilling life. He hopes that his writing will help you become what you are capable of becoming. And how we need this philosophy right now & by which our today’s guest lives literally, yes he is the man from farmer’s family in rural of Pune & today is President of Credai National an apex body of all the developers in the country, none other than our very own Satish Magar, known as Satish dada affectionately by his friend & enemies well, he has none, that’s his true success!

 

I am fortunate to learn a little about life which eventually has helped me to know some more little about business by being in company of Satish dada & maybe that’s why it’s an honour Express Group asked me to interview (well I prefer the term sharing) of Satish Dada regarding scene in real estate & views about Pune as emerging or say future of careers for many & a city of opportunity!  Well, here we go as neither myself nor Staish dada, are known for formality but when its print media that too for public then one needs to choose the words carefully, isn’t it?

 

1.    What is scene in the Metro cities on national level, infra as well jobs.., which cities you identify has  potential for real estate hubs?.. was my first question as Satish dada is National Head of  developer’s body, so he travels a lot & meet many segments of the society in entire country, so who better than him can comment on this! His reply was crisp & strait; sanjay, there are actually seven regions in the country where real estate has been always has strong foot hold, NCR i.e. National Capitol Region which includes Delhi & many Districts of Rajasthan , Haryana & Uttar Pradesh. Then Bangalore Metropolitian Regions, MMRDA i.e. Mumbai, Thane, New Mumbai region, Hyderabad, Chennai & Pune. Our Pune probably ranks 3rd or 4th & all these cities or regions have flourished as  people from entire country feel (a fact too) they have good infrastructure as well jobs & education, which are two basic things for any human being to migrate & settle down eventually. Most important thing about all these regions is only Pune is a city or regions which don’t have a tag of State or Central Capitol & yet compete with other regions. It has some plus points some disadvantages!

 

 

2. How do you look at Pune as a career place in comparison to other competitor cities?... As I said Pune doesn’t has status of either State or Central Capitol obviously the issues or say policies related to city or region don’t get the attention which a Capitol City gets but the Pune maintains charm of a town at heart yet being a Metro by size which many people feel good about as they easily gets connected with this city & it’s a major factor while you choose some region or city as your home town! Maharashtra being a progressive State where population has strong aspiration to do something better in life, that’s the key clientele flowing towards Pune & this city is unlike Mumbai, has its own face & charm too!

 

3. Which are the factors you think are very positive for selecting Pune as a base for the aspiring youngsters?... Pune has knowledge base industry & population. There are nearly seventeen Universities including the Govt’s own in Pune region providing working capital for all sorts of industries in the form of man-power! It’s this man power which is educated & cultured makes Pune as one of best cultured city & with man-power available for IT or Service or Production Industry & this is big strength of Pune. Then including INS Shivaji i.e. Navy’ base at Lonawala i.e. PMRDA, Pune has huge defence establishments & is the only city with three Cantonments in the country. The defence population here accounts for many developments as well gain popularity for the city across the country & is a potential clientele for many industries in the city.

 

4. What are the strong points & weak points of Pune as a city?... May it be a job or education, both career options are the best in Pune region & that’s very strong point of the city! As a youth come to this city for gaining knowledge may it be engineering, Management, Profession, Arts or any & then gets to make carer in the field in which he or she has taken knowledge, here only; what better thing can happen to you more than this! All you have to do then is select a good home & be settled here for life! On weak points we are unable to provide public infrastructure necessary for the population matching with the pace of developments the industries are doing & in future that may cost us dearly!

 

 

5. What do you suggest to overcome our weakness as City?... Infrastructure, I don’t call it as a weakness as compare to many other cities & regions Pune has much better infra , look at the water supply which is main thing for human settlement all over the world & Pune has ample sources of it. Problem is water distribution of this source evenly all around the region & it’s such issues of infra which needs to be dealt real fast. Then needless to say commuting, so ring road around the city which can be a big boost to the developments has to be made at fast pace. Pune has industrial growth nearly on three fourth of its periphery i.e. Mumbai-Pune, Bangalore High-Way & even Nagar Road i.e. heading towards Nagpur. The entire communication from Mumbai to Southern part of the country goes through Pune & with ring road in place it will save lots of time as for goods traffic & domestic also. Same way domestic airport is a must as not just Pune region but entire western Maharashtra population can use it! Then completing the Metro net work in Pune region as well use of river for river side roads also is a must as Pune has got river banks of nearly 50 plus kilometres length & can be of great use for commuting without hassle from one end to another end of the region. Main issue is will of making & implementing the policies both political & bureaucratic also, to do something good for not just some industry but for comfort of entire population of the region! As well we need public cry for demanding better infra from the taxes they pay to the system! 

 6. What is your view about buying a home at this time in Pune region?

 

Well, as a builder by myself, I will always say go ahead & buy a home & this is the best time but instead going by what I say, first ask this question to your own-self is what I will advise to the home buyers. Even the government has reduced stamp duty to mere 3 % from 7% which is a big saving & most developers are charging just 6% GST i.e. out of 12% the developers are sharing 50% of GST, all these factors are in the benefit of the home buyers only! At the same time many service sector companies & IT companies are offering people to work from home so there will be saving in time as well money which or else used to waste in commuting to the workplace! And when you buy a home then it’s your best asset also as well your own home is a place which always welcomes you & nobody can ask you to vacate it, which is the most comforting feeling in every adverse time & not just present one! Even you can book for nearing possession projects also as if you are thinking of saving on GST then do mind you will lose it on Stamp Duty savings which are for a limited period as well when you go for completed project then many a times you have to compromise on the choice of floor as well direction. And then as I mentioned earlier everything right from water to weather to education to job is here for settling down in life, all you need is a home of your own! All I want to share is, decide & act fast though not hastily, when it's home buying!

 

 

 

7. What is your message to real estate developers as well other businesses in Pune region to brace for post Covid thing?... Sanjay, I am not some political party’s leader or Spiritual Guru to give a message but all I want to share is Covid or say post Covid is a phase & it will go. Man is a social animal & will never be comfortable in isolation is a fact & that needs homes, work places, entertainment, socializing places & many such & wherever human settlements are there all these are part of the life! Unlike all other animals we the humans evolve on our own while other species mostly survive on reaction. For e.g. a tiger or a leopard hunts only when its hungry but humans build homes & store foods for the hunger which if future even however near i.e. in next few hours or days! So, the need of a home is a basic need to secure our future which always will be there, only thing is life style will take some corrective steps & same will reflect in the owning a home also which will remain safest & best place too! As well spending will be bit careful for a while on any front but why a man earns for if there is not some enjoyment in life with your family & friends, isn’t it? All we have to do is look at our products, understanding the changed format of human needs & things will be on track again!

 

On the personal note at Credai we have been always working to make homes affordable for both segments i.e. developers & home buyers; as any deal must be  a win-win situation. Government also needs to understand this aspect of the business & look at real estate like other blue eyes industries, as a home is the primary need of every citizen & a builder is facilitating it actually! Also speaking about my own work, we have planted some 25,000 plus trees in & around Magarpatta City Development & made them grow & I appeal to each of us for joining hands for conservation of nature by every possible way! 

 

Thanks a lot & all good wishes!

 

Satish Magar, President Credai National.

 Frds,

My take away from this sharing is, we may have been discussed about Pune but the logic is applicable to any city & that’s why this sharing is for every real estate person, not just the builders but home buyers as well allied industries & traders related to real estate! As well such study about the society you are living is helpful for all the trades & industries & it does enrich me a lot! Real estate that way is very local business yet considering the stakes involved & changing clientele the challenges are immense & so are opportunities. Pune indeed has loads of prospects to grow & any city or a region when it grows in healthy manner then every segment associated or part of the region also prospers, only if we understand the proper way to prosper & that’s what growth is!

 

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Sanjay Deshpande 

Sanjeevani Dev.


Please view my sharing about real estate in Pune at U-Tube link below..

 

https://www.youtube.com/watch?v=g4xX7eopH5o&t=5s

 

Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

https://visonoflife.blogspot.com/2020/06/a-good-home-is-good-deal.html

http://jivnachadrushtikon.blogspot.com/


Creating Togetherness; team Sanjeevani Way(Click link below) 

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org

Take your issues to Hon PM at link below..

https://secure.mygov.in/

Think Green, Think Life

www.sanjeevanideve.com-

Tuesday, September 15, 2020

Ready Reckoner Rates & Dream of Owning a Home!






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“I can retain neither respect nor affection for government which has been moving from wrong to wrong in order to defend its immorality”... Mahatma Gandhi


“The government cannot give to anybody anything that the government does not first take from somebody else”... Adrian Rogers


No need to introduce author of the earlier quote i.e. “Bapu” & Adrian Rogers was an American Southern Baptist pastor and conservative author. He served three terms as president of the Southern Baptist Convention. Though his words may sound like politician but let me tell you if we think we are a country ruled by religious issues, well even the western & so called developed countries are also not free from religion & Christen Churches has big role in deciding fate of many candidates in the elections, there also. And that’s why a Pastor’s above words for the working of the govt does, has its weight! And after all what is religion but a flag to bring people under one cause & then what is a political party but some another flag & of both purposes keeps changing depending up on the flag holder, is what we have witnessed enough times, isn’t it!


Oh k, frustration is usually father (or mother) of philosophy & I (along with most of real estate) am no exception to it & the reason is news about increase in ready reckoner rates of properties mainly in & around Pune! Our govt does wonderful job especially when issues are related to real estate & more with Pune (read as PCMC/PMRDA in totality), may be the Smart City Tag makes us dearer to the gvot. And when its taxing or collecting money or any stringent policy implementation may it be lock-down or helmet compulsory (I am firmly with helmet personally), it’s always Pune which is trial ground. Unfortunately when its doing something positive or taking right decisions (means logical decisions) or infrastructure development like public transport (read as PMT) or MSEDCL net work & maintenance (MSEB) then we are most unpopular child (Dodka Mul in Marathi) for our Mai Baap Govt! And this fact repeatedly we have witnessed, so when last week the govt announced stamp duty reduction then also Pune has got minimum discount while Mumbai & other cities got maximum. At least Pune real estate got something positive but as usual the govt with its all indecisive confusions over polices, declared the news just a day before Pitru Pandharwada i.e. non-auspicious fifteen days which are followed in Hindu Mythology, so the effect of stamp duty reduction has been yet witnessed in sales or say account books of the builders! And in the mean time the govt fired salvo which took away the celebrations before the hangover even started, by increasing ready reckoner rates for Pune, mainly!


Well, for innocent (and ignorant) souls stamp duty is a service fee or processing fee charged in form of some percentage on every property (immovable) is by now most of us know. Ready Reckoner rates are minimum rate defined by the govt of every piece of land, build up properties of all uses such as residential, commercial etc in every city & town of the State. You can’t sale your property below this rate which is decided by the govt (even if you are in great distress) & is called as ready reckoner rate. Joke is you can sell your property as many times you feel (or can get) above this RR rate, thus making real estate as only commodity with Maximum Retail Price is MRP tag for having lower bar than having an upper selling bar like every other commodity!  No wonder, govt always looks at real estate as Golden Eggs laying hen & takes a cut at it every time to get more & result is neither there are golden eggs nor the hen seems to survive anymore is the scene! In nutshell if the flat holder was going to save by reduction in stamp duty over the deal amount, the govt increased the deal amount itself voiding the stamp duty reduction effect over cost saving! In simple words if you buy a flat in Baner (suburb in Pune) at say Rs 80 lakhs then you will have to pay stamp duty on this amount but what if you have been asked to pay stamp duty on Rs 85 lakhs, even if you are buying the flat at Rs 80 lakhs, just because govt says value of this flat is Rs 85 lakhs! That’s what has happened by increasing ready reckoner rates!


Indeed many people (read as common man) will say this is as usual crocodile’s tear (Marathi phrase) as have not the builders already has enough golden eggs, that’s why they are crying now just because they don’t get to make more money now days with such erratic policies of the govt which actually are in favour of common man to fulfil his or her dream of owning a home in this Smart City i.e. Pune! Keeping full respect to common man’s emotions & feeling about real-estate (builders), let me tell you the fact, the govt cares a hang for common man when it’s about his or her dream of owning a decent home in a decent location in a decent budget in a decent city! And increasing ready reckoner rates in this hardest phase of business is one clear example of govt’s turning blind eye towards real estate & the common man’s dream of owning a home! Just ask one single question to yourself (each of us) when every media & individual is screaming on top of voice that rates of homes are falling, there is no appreciation (well, I am always against speculative appreciation in real estate) then how can the ready reckoner rate govt increases as these rates are supposedly indication of market rates or scenario about real estate or say property deals. And joke is the very same govt has reduced the ready reckoner rates in Mumbai so who has decided that rates in Mumbai have decreased but in Pune are still increasing, at least I dint heard to any Aakashwani about it! Though one silver line in this read reckoner rate hike thing is, if the govt itself thinks property rates in Pune are increasing then it’s really a great news for the entire real estate as when all around the country every commodity’s (including real estate) prices are falling, its only Pune real estate which is shining bright with rates increasing, isn’t it great!


I do understand (read as assume) that there is a system by which govt works out or say verifies the rates of the properties & it’s the process going all around the year. Best way is check the deals getting registered & more better way is govt can actually send its people (staff) to speak with the builders or landlords & check what they quote & to what they negotiate & then only you can really freeze the rates. As real estate unlike any other product has many parameters for the actual dealings which includes surrounding locality, infrastructure & one very important aspect (when its land) i.e. need of the seller or say greed of the seller of the property! As for a builder bleeding with interest burden, salaries, over-heads & so many factors, he won’t hold ready reckoner rate as the bar but will negotiate as  much he can to break free from the cash crunch & which is the scene for a while now everywhere! At the same time when its land sale then it’s totally up to the landlord how much he can wait & he (or she) also need not have to hold ready reckoner rates as bar & can ask any ransom above it!


Agreed we can't change or fix the ready reckoner rates project to project but high time to make a logical & transparent system to fix the ready reckoner rates of the properties & then apply changes to the same instead going by strait hike or decrease on average level. As apart from need of the deal, projects in same locality can have different selling rates, depending upon the view or neighbourhood of the project. At the same time TDR loading norms & potential which also differs on plot size as well approach road width parameters makes impact of sale prices which might be different from project to project.
Another good news (for now) is Pune Municipal Corporation has allowed for paying premiums for plan passing of new proposals in instalments for the developers. This single step can tell the story about situation of cash crunch in real estate industry & cash is not I mean what our Hon PM is against about, its money available at our disposal, such is the grave scene around! Considering all these factors if the ready reckoner rates of properties are worked out & applied then I think life of many people will be more comfortable, off course if the govt wants that as outcome! 


But at present the way govt is behaving with real estate I remember a folk tale from Akbar Birbal Stories where; Badsha Akabr who was famous to test nerves of his ministers, once called them & gave them a goat & told them that it’s his favourite goat & as the Badsha is going out of town for one month they should take good care of him & when he will be back he wants the weight of the goat must not differ a single ounce from what it is today & Akbar left for his travel! Hearing the weird condition regarding the goat’s weight, the ministers were panic as how the hell weight can be same that too of a goat! As usual they all surrendered to Birbal who smiled after listening to their problem & told them Gurumantra i.e. solution! After one month Akbar was back in Delhi & summoned for the goat & when its weight was measured it was exactly the same what it was one month back. Akabar was stunned & he asked ministers what they did with the goat, to make its weight remain constant. On this the minister’s told they used to feed the goat normal but in the night used to tie him outside of a tiger’s cage! Akbar looked at Birbal who avoided his gaze & Akbar smiled, as he knew whose brain was this!  

Well, unfortunately when it’s the real estate named goat, the ministers seems to have not read the story keenly & seems to have tied the goat in the tiger’s cage instead tying it near the cage! Do I need to say anything more about govt & its attitude towards the real estate as whole as please do mind real estate doesn’t mean just builders, it’s something which is related to every segment of the society & owning a home is a right for everyone in the nature! Unfortunately we are heading towards a world where we have already denied this right to thousands of the species already by destructing their habitats & sad part is we are denying the right of owning homes to most of the humans also by our wrong policies, god bless the goat & the ministers!
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Sanjay Deshpande 
Sanjeevani Dev.

Please view my sharing about real estate in Pune at U-Tube link below..


Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

Creating Togetherness; team Sanjeevani Way(Click link below)

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org
Take your issues to Hon PM at link below..
Think Green, Think Life

Sunday, September 6, 2020

Aarey; Battlefield of Nature Vs Development!






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“People of cities cannot know the importance of forests; to know this, one must first have sweet memories spent in the forests!”...  Mehmet Murat ildan.

Contemporary Turkish playwright, novelist and thinker Mehmet Murat ildan was born in Elazig on May 16, 1965 in the Eastern part of Turkey. And he amaze me with his philosophy always especially the way he relates humans & nature which usually on opposite side of coin of the battlefield. May be he is from Turkestan which is a dessert i.e. part of middle east & that’s why he understands or knows the importance of nature adhering the phrase about a Pyasa Musafir (Thirsty traveller) & the Oasis in deserts! As its in desert only one will know how important nature in the form of water & tress is to survive for a human. And no wonder elsewhere in the world (read as our country) which has (or had) ample of fresh water & tress in the form of rivers, springs, lakes & forests, grass lands but we never bothered about their existence leave apart the importance. And the outcome is today our monsoons are erratic, all over our progressive State, even little rains cause flooding in the so called Smart Cities, the trees fall down with mild winds which used to stood to the storms also, our streams/springs have become nallhas or nagzaris. Our lakes stinks, our once green clad hills are now slum centres, putting the slum resident’s as well neighbouring locality’s lives in danger not just for epidemic spread but for landslides & fire type disaster threats. Our rivers, well lesser we say about their condition is better & we are losing our forests in all forms, trees, creepers, grass lands or even shrubs or undergrowth (haa, what I am saying, undergrowth, anyways) are reducing faster than the hair from a balding man’s head. It’s not joke but the scene or say result of our career which we call success race is not just men & women are losing their hair cover from the head but entire city is losing the green cover from every available patch it had. And just the way no doctor or hair therapist can grow you hair again once lost, nobody can’t create a jungle or forest cover once lost is a fact! You can transplant the hair on you head & it’s a costly affair same way to transplant one single tree itself is a painful & costly & not assured job & here we are talking about transplanting forests! And then surface area of your head is limited but when its green cover, while we are referring to thousands of square kilometres of areas for replanting the forests!

And it’s not just green cover what about thousands of species which has made these green patches as their home for millions of years , how we are going to get them back again; high time guys to ask ourselves about development & the way we define it! The reason for this anguish or frustration is news which is twitted (retwitted) about making Aarey Land in Mumbai as reserved forest by the Mai Bapp Govt! Some solace, just the way a balding man will feel looking at few hair patches in the mirror in morning when he wakes up! Well for those who are innocent (or ignorant) Aarey is a milk product industry in the western suburbs of Aamchi Mumbai (govt owned industry I presume) & is spread on some hundreds of acres of land which is adjoining to Sanjay Gandhi National Park, the only National Park right in the heart of Metro like Mumbai & is habitat of some sixty plus leopards as well many other species. And needless to say Aarey land is also thickly wooded & is natural habitat with flora & fauna which has been preserved in its natural form for many years, fortunately, till now! Now the smart ones must have understand where my sharing is going & you need not have to be smart for that as nature & human conflict is the next sci-fi movies theme but unfortunately nature doesn’t have any James Bond or Superman or Avengers to protect it from the enemy named human & which are growing in crores with every year!

Yet all is not lost for the nature & joke of this war is we the humans are dumb to such extent that winning this war with the nature will be our biggest ever defeat is we haven’t yet understood! There may not be a James Bond or Superman fighting the war from nature’s side but sure there are many (though very less in compare to opponent’s army) Avengers who are fighting with nail & tooth (read as pen & camera) this war for the nature. One such name is Bittu Sehegal, founder of Sanctuary magazine, which for years has been voice of forests & nature. The magazine as well its FB group which has nearly one hundred thousand above members, continuously keeps taking up issues which are threat to nature (wild life) in any form & needless to say it’s mostly some development front only under the name of need or comfort of us the humans. Sometimes its widening of a railway track passing through Melghat forest or sometimes it’s a national highway at Pench forest or sometimes its CRZ (sea shore restrictions) violation making coastal biodiversity in danger or any activity which will demolish some green patch in our State or country, Sanctuary always raise its voice about such issues & makes common man aware about it. This is main problem, as most common men thinks what they has to do with this war of humans & nature & keeps themselves conveniently away from it thus in a away becoming alley against nature only!

Well, there are other groups also along with Sanctuary but about them sometime later, right now it’s a welcome step by State Govt (if it’s true) that Aarey land has been declared as reserved forest so the green patch has hopes for some time for now. And some time back the very same land of Aarey which belongs to govt was proposed to use for some development work of Metro of Mumbai, as that was convenient & would have saved cost of the project by millions of rupees is what experts said! Indeed it would have saved millions of rupees & of the people but what about we will be destructing forest & habitat which was there from million years, is something we need to ask, along with savings! I repeat I am not or never was & will, stand against any development as I myself an engineer that too civil! But it’s high time to rewrite our definition of development which mostly ends up neither giving comfort to the humans nor is able to protect nature, rather ends up in adding more discomfort to humans by destructing nature in the process of development, we call it! 

If you don’t believe me, well here are few examples, Bandra (again a Mumbai suburb) reclaimanation or any sea reclamation, hasn’t it worsened the flood situations in entire Mumbai? Then our so called Development Plans of the cities, they never are able to accommodate the ever increasing population flowing towards Mumbai (or any city) & result is ever vacant piece of land which was mostly in the form of some reservation or greenery i.e. hills, grass lands, water bodies even mangroves near costal areas are surrendered to the slums or illegal human settlements which are centre for epidemic spread & are actually hell to live for any human being & we destroyed the nature also which was exiting in those places! Ok, not satisfied, then take a look at Smart City Pune, if you have guts then try walking along banks of Mula-Mutha (these are names of the rivers in Pune) for just a stretch of 1 km & tell me how you feel! Take a look at Paravti Hills & tell me what you see from Singhagad road side ! We couldn’t protect our rivers, our lakes, our hills, our forests & we call it as development, you still think I am an extremist! No sir, all the developments would have possible & are possible without destroying nature but one needs will & wish for it then only vision follows & ideas flow in the right direction, is what I am trying to put forward!

Today a small step could save a small patch named Aarey forest or land (I still hope) & in end it will be a biggest ever steps in nature conservation. As every day some green patch is getting destroyed forever, along with its original residents which are leopards, hare, butterflies, ants, sparrows, mongoose & many such & once they are gone we don’t ever try to get them back or relocate them as they cant demand their rights nor file a law suit against us. But do mind if you believe in nature then there is something like god also, in the form of an unseen power & he or she whatever we call it, has his own way of listening & serving the justice; just don’t forget it, is all I will like to tell to entire human army which is in war with nature & is happy with their present victories in it!
--
Sanjay Deshpande 
Sanjeevani Dev.

Please view my sharing about real estate in Pune at U-Tube link below..


Please do visit my blogs to know about our philosophy at Sanjeevani ! (Click the links below)

Creating Togetherness; team Sanjeevani Way(Click link below)

https://www.flickr.com/photos/65629150@N06/albums/72157627904681345

For any of your complaints about city, log in at link below

www.punecorporation.org
Take your issues to Hon PM at link below..
Think Green, Think Life

Monday, August 31, 2020

"Stamp Duty Reduction" named Maha Sale Offer!







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Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it... Ronald Reagan.

No need to introduce this name yet for few ignorant to the world, Ronald Wilson Reagan was an American politician who served as the 40th president of the United States from 1981 to 1989 and became a highly influential voice of modern conservatism. Prior to his presidency, he was a Hollywood actor and union leader before serving as the 33rd governor of California. And I am happy rather most of real estate related people will also be happy that finally our country’s rulers started singing the same tune as Mr.Reagan. Yes, I am referring to probably biggest & positive news (read as step) regarding stamp duty of land/flats/shops or any such immovable property which we call real estate. And more important is not just about the biggest news; more is about later part i.e. positive step or news which has been rare with the real estate for some time now!
And no wonder it’s like a breeze in hot summer for many real estate people (read as builder) & as usual media hailed it as boon to real estate & step taken for them i.e. builders. Indeed 2% stamp duty is a big thing but all those who are rejoicing keeping due respect this is just for three months & post that it will be 3% that too till March 21 end, so in all nearly six months to make hay day for home or land or any property buying! I am not a citric yet let me share this is just one of the incentive govt has given & it’s not for builders but for the flat holders though in a way it will make more home buyer to go for the kill (read as the deal) & finalize it when its home or commercial premise buying is true but saving will be of the home buyer & not the builder, mind it! 

Again many (even my fellow builders) will say why I am crying, well I am not, I am just sharing about the facts of trade, as this will definitely increase the turn-over which also was one aspect of the slowdown (read as lockdown). Agreed the step is welcomed by the State govt as it’s a big dent on their pocket but it’s a calculated step just the way when some big brand announces “Three Day Sale”, only here, the brand is Mai Baap Govt itself. As we all know by now the stamp duty which is a surcharge (its not a tax, mind it) or fee or service fee whatever you call it charged by the State Govt on any immovable property deal which happens between two parties, they can be builder-builder, builder-land lord, builder-flat buyer or even flat buyer-flat buyer i.e. resale flat deals. This was nearly 7% of the transaction cost or ready reckoner rate whichever is higher. Means you buy a land or flat or shop worth Rs 1 Cr then if you will have to pay nearly Rs 7 lakh rupees to the State govt as stamp duty on the deal. And now with this “Maha Sale Offer”, it will be just Rs 2 lakh till Dec 20 & Rs 3 lakh post that till March 21!  (* Well, till I started writing this as ususal new GR came ie Govt Rules or regulation whatever & for PMC/PCMC means Pune & Pimpri-Chinchwad, PMRDA the stamp duty “Maha Sale Offer” has been again increased to 3% from the anounced 2%; and post Dec 20 it will be 3.5%, well thats how the govt works!)

And it is a big saving especially for the genuine flat or office buyers in these times where every single rupee counts! But then the home buyer must understand (read as property buyer) that this is bonus to him or her directly by the govt & the builder is not going to get a single rupee out of this “Stamp Duty Discount Sale” by the govt! As many aspiring clients including media are portraying like "Achhe Din" to real estate thinking it’s only the builders which will be benefitted by govt’s this decision of reduction in the stamp duty; no sir, it’s not & even the builders also must understand it it! This stamp duty reduction will help in making people to conclude on their decision to buy the home or office or shop & save on buying cost of the property & this will generate or say create momentum in the real estate market & the money will roll-in, which will be of the use of the builders, is the logic! I am deliberately warning this to the builders who usually end up considering sales as their profit! And the customers are no more ignorant fools the way they were earlier, they sense the blood just like the sharks now & nothing wrong as for years it was reverse so the game has changed. So now the customer will negotiate to get most out of the deal saying if govt can take on the losses to their income why the builder can’t further reduce their rates! So it’s a test of nerves of the builders as well the clients because one needs desperately to sale his product while others knows that desperation & till now wasn’t in hurry but if he (read as the buyer) wants to earn from the savings via govt then there is time limit, this is warning to the clients.

I think this is good move by the govt for the one of its first in many years considering real estate as their revenue earning source also as from the stamp duty registration the State govt gets yearly approx Rs 30,000 crore (estimated for 20-21) & sure its "Baniya” (i.e. Marwari thinking, no offense guys in good spirit) that more turnover is better way to earn by reducing sale price than no turn over with higher sale price for the govt on the stamp duty front! Best part about reduction in stamp duty decison is first time the Mai Bapp govt has thought wisely or say logically & accepted that real estate industry ( read as builders) are their partner in actually in earning revenue because if the real estate makes losses so will the govt!

Now the real estate (both flat buyers & builders) should expect more such bold & logical moves on other fronts also of the industry & one of the most important is infrastructure development. Time & again we have put forward for the consistent & balanced physical development like roads, water, drainage, power & public transport (basics) like infrastructure, in all the suburbs of the cities & not just few locations or areas. As then the home buyer gets choice as well it helps in boosting confidence  of him or her for having a own home with all above things in place, which builder alone can’t ever develop around the project. The infrastructure helps making more land available for the development & thus keeping rates of the finished product i.e. a home in control for both i.e. builder & the home buyer. Agreed just like any private organization the govt also has limitations on funding & a dent in stamp duty income was the first sign it recognized the threat of entire real estate going in loss. But as I said other steps are also equally important & with infrastructure another thing is curbing illegal homes or slums as they damage two ways; one they add zero revenue to govt’s kitty but adds only burden on infrastructure & second they are direct threat to genuine revenue generating real estate. So, keeping all this in mind, hope for the good the line of thinking which govt has chosen will continue.

Same way reconsidering policies like No GST on completed home is a big hurdle as home buyer delays his decision to buy a home in making as rates are not increasing anyway, so there has to be GST in same format on any type of home, ready or in making. At the same time the home buyer now must understand if they wait for ready possession home to save GST they will end up losing on Stamp Duty as this offer of reduction in the stamp duty is for limited period! I will never say hurry, stock limited types thing when its real estate, rather take your time & chose wisely is the way when its real estate! But don’t forget “Pahale aap, pahale aap, karate karate, Lucknow ke do Nawaboki train, unhe platform pe chodkar nikal gayi thi”; it’s a famous phrase in Hindi to explain importance of deciding things in right time, sorry can’t translate it in English!

Lastly along with thanking to the Govt for stamp duty reduction decision lets accept that real estate is a three legged race of the builder, the home buyer & the govt; and if we want to cross the finish line in good time then all the three entities should run together & in one direction by supporting each other & not by pulling individually in their individual direction, mind it & all the best!
--
Sanjay Deshpande 
Sanjeevani Dev.

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