The recent decision of the Maharashtra government to scrap ULCRA has focused much attention on this law that governs housing prices in India. Read on to know more about this law and its implication on property prices.
India has one of the highest real estate prices in the world. This has primarily been due to shortage of land available for development and booming demand. As the demand for property in India far exceeds supply, property prices here have sky-rocketed. The shortage of available land was created because of the law called ULCRA.
What is ULCRA?
ULCRA stands for Urban Land Ceiling and Regulation Act. It was a law passed in 1976 in order to create social equality with the aim of preventing profiteering and hoarding of urban land available in the market, as well as to avert urban congestion. Urban cities were divided into categories like A, B, and C. A ceiling was put on the highest permissible usage of land by the corresponding owners and this was fixed as per the provisions in the act.
How does the ULCRA affect the land prices?
ULCRA placed a limit on the land available for development which meant that land was available but at a steep premium. When the land owners sold their land to construction companies, they charged abnormally high prices. The builders in turn passed on these exorbitant prices to the buyers, leading to a sharp rise in housing prices.
With the scrapping of ULCRA by the Maharashtra government, will the property prices in Mumbai reduce?
The recent decision by the Vilasrao Deshmukh government to scrap ULCRA is believed to stabilize property prices in Maharashtra. Industry watchers don’t see an immediate drop in the prices but think that the new supply will bring uniformity in property prices. There won’t be any significant changes in housing prices in the prime areas but the move will affect the prices in other areas. Construction companies say that the scrapping of ULCRA will usher in an era of mass housing projects. They say that they would now be able to save substantially on the money spent in order to obtain permission for land development under ULCRA. These savings would then be passed on to the customers, who will be able to procure housing at affordable prices.
It used to be that new homes cost more than older homes, but that's not true across the board anymore. As land costs increase, the size of new home lots have shrunk. Especially in Mumbai. One can practically crawl a bedroom window and into the window of the home next door. Homes are that close in proximity.
Advantages to Buying an Older Home
Old world construction. Older homes have stood for decades, some centuries, and weathered many storms.
Larger Room Space, less loading. Years ago, when land was cheaper, builders built on larger lot sizes, leaving room to accommodate garages on alleys.
Longer-term neighbors. Some older homes are passed down through generations. Many neighbors know each other.
Established neighborhood. Zoning changes are unlikely to occur in older areas.
Closer to downtown entertainment and restaurants. Not only do older areas tend to be located closer to downtown areas, but often residents can walk to local coffeehouses and markets
“But my uncle said…..but my colleague said…….but now my wife says…….gosh now my childrens are saying …they want…..” – Trauma of house hunting. You are surrounded by opinions and just advices.Here's what you can expect from your home shopping experience.
Figuring Out the Benefits
You should buy a home. That's what you've been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That's a major hurdle now passed. You are focused and certain. Good.
Defining Search Parameters
Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You've probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach actual construction site, you are halfway to home ownership.
Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. Homeownership also comes with certain responsibilities.Are you ready for homeownership? Look at your current situation and determine if:
You have a steady, reliable source of income and a steady employment history for at least two years.
You have a credit history.
Your total debt is manageable and you can afford to take on the costs associated with homeownership.
You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative.
Think about your future plans that might affect your ability to manage the costs of homeownership.
Consider whether you need to make lifestyle changes that might include not taking expensive vacations or purchasing luxury cars, and dining out less.
Consider the costs of a growing family when looking at your homeownership budget.
Consider whether your future plans might include a wedding or college education for yourself or your children.
And remember, the mortgage is not the only expense you need to consider. Homeownership comes with other potential budget items such as repairs, maintenance, taxes, landscaping, etc.Once you fully understand your current situation, your future plans, and the big picture in terms of homeownership, it’s important to look at the pros and cons of homeownership to make the best decision for you and your family.
Selling a property is not the easy task to owners Right from finding a prospective buyer to finalizing the sale agreement; owners need to no all the things related to his property so that the deal is in his favorable. Following are some tips for selling property.
A buyer of immovable property has rights and liabilities. According to the Transfer of Property Act, buyers of immovable property are entitled to some rights and have some responsibilities, which they need to fulfill statutorily. A buyer is should disclose to a seller any fact as to the nature or extent of the seller’s,interest in the property of which the buyer is aware, but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest.
When selling your property it is important to budget for costs such as the estate agency's fee, marketing and preparing the property for sale.
Usually, the main cost will be the agent's fee or commission. This is negotiable and can be a flat percentage fee or a sliding scale, with the agent receiving a higher percentage the higher the sale price.
The agent will provide their estimate on the authority of sale document. The cost of marketing can vary considerably, depending on the method of sale and the marketing strategy.
The marketing schedule will typically include metropolitan and/or local newspapers, a signboard and internet listing. More expensive or unusual properties may be advertised interstate.
A private sale may spread these costs over a longer term. The third major expenditure is the most variable - the cost of preparing your home for sale.
Most vendors undertake a small amount of maintenance and cleaning to present their property in the best light, while others will upgrade kitchens and bathrooms and paint the property.
In addition to these costs there will be some legal fees for documentation such as a vendor's statement and the contract of sale.
Moving house can be an exhausting and disruptive experience. Everyone in the household is affected in some way, even the family pet. The best weapon to alleviate some of the pressure and stress is thorough planning and being well organised. If you are moving yourself, many hands certainly do make light work, so if family and friends are willing, enlist their help as well. Start assessing everything that needs to be done a couple of months in advance. Getting quotes, choosing a removalist and going through a household of goods that may not have been reviewed in some years all take time. Use this guide to moving house should get you off to a good start. Amend it to match your needs and create your own personal moving house checklist.
Judging by the headlines, you could be forgiven for thinking it's all doom and gloom for today's first-time buyers. But there are ways to make it more affordable, such as buying with a partner or friends.
You must clearly define / prepare your budget as per the needs in order to determine the oarea / space requirement. This can be done with the existing funds or by selling assets or by taking loan from housing financial institutions.
Property Tips 
Selling a property is not the easy task to owners Right from finding a prospective buyer to finalizing the sale agreement; owners need to no all the things related to his property so that the deal is in his favorable. Following are some tips for selling property.
A buyer of immovable property has rights and liabilities. According to the Transfer of Property Act, buyers of immovable property are entitled to some rights and have some responsibilities, which they need to fulfill statutorily. A buyer is should disclose to a seller any fact as to the nature or extent of the seller’s,interest in the property of which the buyer is aware, but of which he has reason to believe that the seller is not aware, and which materially increases the value of such interest. 
Selling your home is very expensive to you? 
Moving house can be an exhausting and disruptive experience. Everyone in the household is affected in some way, even the family pet. The best weapon to alleviate some of the pressure and stress is thorough planning and being well organised. If you are moving yourself, many hands certainly do make light work, so if family and friends are willing, enlist their help as well. Start assessing everything that needs to be done a couple of months in advance. Getting quotes, choosing a removalist and going through a household of goods that may not have been reviewed in some years all take time. Use this guide to moving house should get you off to a good start. Amend it to match your needs and create your own personal moving house checklist.
first-time buyers. But there are ways to make it more affordable, such as buying with a partner or friends.
Below mentioned is the checklist for buying a property with brief explanation:
oarea / space requirement. This can be done with the existing funds or by selling assets or by taking loan from housing financial institutions.
