Why Demonetization Will Attract Foreign Investors Into Indian Real Estate

Demonetization of 500 and 1000 notes are ceased to be legal tender by government thus real estate industry has faced a result of reduction in cash transactions. Investors and buyers are now very straight forward with their transactions and this will give a structural impact over a period. Due to corruption and black money transactions, investors were always secured with short term gains. Banks have so far received huge amount of cash thus liquidity will fabricate over short term gains and real estate prices will be more attractive. This way, Black money investors or buyers will have fewer opportunities for short term gains and their deceitful intent will be contract over the period.

India government has taken few challenges related to demonetization in the last few years in realty sector which will attract foreign investment into Indian real estate. Govt. has done few policy framework for real estate investment trusts, the REIT, regulations and slackened the foreign direct investment (FDI) policy. Also, there is an introduction step they have taken by the initiatives of real estate regulatory act, RERA.

Now, foreigners are more curious towards the transparency while they are investing in real estate sector. Before, foreigners had to compete with the local developers since that time level field is not played well. This move will attract foreign investors and developers into Indian real estate. There will be huge increase in institutional participation thus real estate sector will be matured enough to adopt best practices. This will be a positive message about India to the World. Experts believe that India is now at a stage of a progressive growth cycle in real estate sectors.

These acts may bring consolidation among developers and these factors will surely attract more foreign investors into Indian Real estate. Also, demonetization will attract credibility to property market and it may result in long term business with foreigners. By this move, India will be encouraged with economic growth and there will be boost in local and global businesses. Demonetization will add to the credibility of developers to the extent that there is likely to be less accounted cash transaction in realty sector. 

This way, investors will feel safer with developers. If government decision maintains that the abolition of high value currency notes will clean black money from the market. Liquidity will improve.

How Real Estate Will Benefit in the Long Run After High-Value Currency Ban

When the whole world was watching US presidential selection which could lead to an upset win for candidate Mr Donald Trump, few of us might have thought that prime minister Modi would plan something bigger to steal the thunder of Mr Trump. Prime Minister Narendra Modi’s late evening announcement on demonetization of 500 and 1000 high value notes would cease to be legal tender within few hours not only gave a stroke to every Indian, but also drowned completely and made everyone to rush into the nearest ATM.

Some people had arranged big amount of cash for buying new home and it was obvious that all were high value bank notes. Few people suffered little trouble in exchanging the money. Common Indians have always suffered when they decide to buy a new home or property for their future resistance. The only reason to this is that people who carry huge amount of black money, purchase real estate properties to hide their cash transactions. Black money hoarders put their piles of cash in real estate sector and this has been the favourite assets class for them. They always undervalue their property buying transactions by giving black money to the property seller. Lands and properties have become the great asset to spend their black money in one go. Also, there are few fraudulent builders who support black money hoarders. This way property demand goes up in the market and common man suffers from this high price. 

How were commoners suffering earlier before this move of PM?

Day by day India is getting acquainted with technology and various property building projects are running. Millions of common people in India, dream about a home of their own as a permanent and reliable asset. They always seek for a stabilised and under their budget in real estate sector so that they can buy a new home. But, real estate prices are always destabilised because black money holders buy all the lands and properties to hide their illegal cash. They know that putting their money in real estate is the easiest way to hide the black property transactions. Because of this reason, common man never gets a good option to buy a new home as per their budget. Prices go up day by day and their dreams never become true.

How is this going to help the common man?

1. Most buyers in real estate do the transactions in black money. Once black money goes out of the system, over-valued property prices will be stabilized soon.
2. Most of the Indian commoners will be able to buy their dream home by their hard-earned money.
3. Maximum people will start doing deposits in bank accounts. People will prefer cashless transaction and cheques rather than cash. Also, banks will gain huge volume of deposit from them.
4. Banks will be having a liquid flow of deposit money and they may come up with better Home Loan schemes. Using these home loans people can buy their own house to make their dream successful.
5. Real estate properties or land prices will be stabilised and people will be able to buy their dream home in affordable price.
6. With Government support, in future, so many Smart City Projects are coming to provide everyone with the standard lifestyle of living.
7. Overall, Real estate sector will gain a healthy boost in the long run.

Having an own property or dream home would be the best asset ever one must have imagined. Housing will be for everyone who earns hard money in half of their life to buy property near them. President Pranab Mukherjee has commented that real estate will benefit greatly in the long run by the demonetization decision of the government.

7 Tips on How To Reduce Indoor Air Pollution

Air pollution has always been a major issue of our environment. Indoor or outdoor where ever you go, polluted air makes us sick.  So many people don’t know how badly they are surrounded by harbor air pollutants in their homes. Even if we breathe these polluted airs we can get sick of fatal diseases like lung cancer and asthma. City airs are more polluted inside the home as well as it is outside. Home air is more dangerous than the external environment. The air inside your house may be polluted by formaldehyde or volatile chemicals produced from perfumes of fragrance bottles we use as conventional cleaners.

For centuries, burning coal produced heat in the houses and that made every lung to breath the black coated air inside their home. Children’s suffer from their childhood and come up with bigger disease inside their body and some of them turn into serious asthma patients. Homely stuff of pollution sources including cooking, heating, smoking and spraying stuff to mask various odors. Dusty furniture’s and old clothes are the bigger problems for a person to fall sick inside the room. We never know what happens to our body when we consume these polluted airs into our body.  

1. First, ensure that you have the ‘No Smoking’ policy for indoors. Cigarette smoke is one of the most common indoor air pollutants which can make your kid sick enough to be hospitalized for. If you avoid smoking indoor they It can prevent 65 % of asthma cases among kids. Do not smoke or allow others to smoke inside of your home. Remember, when you use candles at home make sure you place it near the window or you open the window up until the candle finishes. 

2. You better be careful about family household products and very attentive while cleaning them. When you clear an area, make sure that you use some stuff on your nose to cover it and you could use a fan to blow them out the window. Avoid using paints mixed with volatile organic compounds. Do mopping every day which will pick up the dust from the floor. Even putting soaps or cleaners every day is not necessary as you can go with plain water.

3. Every house has their own carpet outside of their door to avoid extra dust. Same you can do it by putting large mats at every door to dirt which comes from their shoes. 

4. You can use a vacuum cleaner which sucks dirt very strongly and keeps your walls, corners, kitchens clean and hygienic enough to avoid humidity in the house. You may need to use the vacuum every day at the place where you stand or work for a long time. 

5. Pay more attention to odors and let your home breathe better from the environment and avoid using harm products containing volatile chemicals. Avoids left over foods keeping inside the home or in the bin for more than a day because it can produce chemical odors.

6. Sometimes, dust on home furniture can cause bacteria flow hand to hand as everyone touches them. If someone living in the home has asthma, replace carpet with tile or wood flooring.

7. Lastly, keep your toilets clean every alternative day and always cover the commode after use to avoid odors and airs which will make your children sick.

I hope, above mentioned tips will be very useful for you all. Kindly share anything about air pollution with us. 

What should NRIs do about demonetization issues? A quick solution for them

500 and 1000 currency notes are banned after the government announcement on Indian Economy!This adapt of PM Modi was taken on 8th November at midnight and the news got preached rapidly across every city and every lane.

Three days have passed and people are somehow facing problems in withdrawing and depositing. Only 2000 limited amount is allowed at ATMs per day per card. Up till 24th November, old high denomination notes exchanged for cash only up to a limit of RS.4000/-. Exchange of old high denomination notes can be done at RBI or commercial banks or post offices and sub-post offices. You need to show valid identity proof at these banks before you do the exchange. This rule is applicable to all of them who are holding 500 or 1000 notes.

Not just Indian residents, NRIs are now becoming main victims of this move. But, NRIs can deposit their amount to nearest NRO account while foreigners may have face difficulties. RBI had announced that within 72 hours after this move, they can do a purchase of RS.5000/- at the airport exchange counters by showing their proof of purchasing notes. Also, purchase place for foreigners are only at airport exchange counters.

Announcements for Indians or NRIs are very clearly said by RBl but for foreigners, it seems there are lack of precision in the statement. NRIs, who are out of India can exchange their old 500 and 1000 notes at nearest India Banks. NRIs inside India can follow the rule for Indian resident and may go to any one of the bank or even where they do not have their accounts. Banks are expected a valid identity proof or bank account details.

If any one of them is not able to exchange their money before 30th December can go to their nearest RBI branch to appeal for the same along with necessary documents may asked by Reserve Bank of India.

Every mouth has an ambiguity about single announcement on this move. While I tried to keep this information as accurate as possible. Do a deep research on this before you decide on something and share this information with others who cannot reach to it.

Disclaimer: Everyone is requested to keep this information as a source of knowledge and before deciding anything kindly take advice from a financial consultant.

Impacts on Business Shield after Government Banned 500 and 1000 Notes.

A view by Mr. Deepak Gupta.

40 Minutes Speech!! Who knew it would bring a heavy storm for 2 days. There is a historical reform in the economy of India by prohibiting 500 and 1000 notes effect from Tuesday Midnight. The process of pretension seems to be a bold problem for everyone now. Every single person is in the supporting side to the decision of Modi Government. Entrepreneurs, commoners and majority of industry have shown their overwhelming support knowing that this would cause a huge problem for them to survive the attack.

Public talks are now on top picks asking and giving opinions that this could have informed two three days before. In fact, this would have beat the entire purpose and all black money could have been circulated very well. A truth fact is that this is going to impact the business man, commoners and can bring huge inflation or deflation in financial institutions.

Unfavourable impacts on following factors

Rural Economy

This reform in the economy of India can have a bad impact on the rural economy. Out of 10 lakh banks from all over India, there are 6.8 lakh villages which have no bank in their area. Some of them do not have slight knowledge of banking and about the recent classification of India economy. Time may come that rural areas will be having cashless transactions in their areas. Also, peoples who have 500 or 1000 notes without a valid identification or document will face so many problems while exchanging the money.

Black Money Holder

Government declaration on India economy by the demonetization of 500 and 1000 notes has specifically pointed to the black money holders to burst out their lies. So, once they get caught through tax verification process then they may have to pay the double or 120% or 60% of the total illegal amount stored. With this move in play, black money holders are now left with two options with them. One is that they must declare the amount as their income or they circulate it through hospitals or other places where the government has given certain time to exchange the notes. They have only the first choice to deposit the money in the bank which in further will notify the government about their undisclosed money from the previous and is higher than the income rate. Even if they show it as normal income then also they have to pay the tax as per the normal rate.

Fake Note Route

A convinced source of media report says that Modi said in his talk about how terrorist get their money. Enemies of the Nation across the border running their operations using fake currency notes for years. Recent act by militant operating against India has exchanged 500 Notes with $7.50 at current exchange rates. So, Modi's surgical strikes on these groups have a mindset to withdraw these series of high-value notes and introducing new notes.

Domestic/ House Hold Areas

Now this process has an outlook that the move will break the flow of high-value notes from the black money market. However, Broder view says that the impact points towards the super-rich, black marketers and smugglers or hawala operators as they only keep high denomination notes. Business of every single person has gone down to the earth in two days. Every one of them has 500/1000 notes which they are now standing in a long queue to deposit them.

Foreign accounts and Tax havens: Those who have their black money stored in the swiss banks, offshore accounts, gold or properties in foreign parks are not going to affect by this move of the government. Here a question arises that, how the government is going to stop this?

Political Party Funds

Politicians and their parties have lots of black money in their pockets and they use them during election time. It is going to be very difficult for them to pass trucks of money for their illegal use.

Favourable Impacts of this move

There are so many fields which have favourable impacts on them after this move. Following are some noticed fields

1.    Banks are expected a valid proof on every penny: The government has announced that every single person needs to bring an official identification to deposit the amount. Especially for them who has lots of cash to deposit in the bank. In exchange note, the bank will give only Rs.4000 as an immediate amount to the account holder and others will be credited to their account. This will increase bank's deposits on a huge scale. In fact, it will increase the lending activities

2.    Jewellery business welcomes this change of Indian economy. Gold price will rise so the trust on the importance of gold will also rise rather than high-value notes. Small variation will be there in this business but overall it is going to be beneficial for it.

3.    Despite all of this, positive impacts are there in rural sector which cannot be neglected. Rural transactions take place through currency notes and undocumented lending and borrowings which take the rich landlord to the nearest bank in the city.

4.    Deflation in the economy could be widely impacted by this and this will be witnessed in next six months.

5.    Positive Impacts on payment transactions and security will drive the card payment across the INDIA and cash transaction will be very less. ATM’s are restricted with withdrawals of 2000 amount per day and banks are limited to 10,000 per day & 20,000 a week.

There are some other practical problems are there with people like vendors, vegetable stock owners, local grocers and other consumer stock owners. But this will be temporary suffer which can bring huge changes in the future.

Sharing some tips to avoid mistakes through this period:

1.    The government has announced the time up until 30th December to deposit your cash and get exchange notes. Also, those who are not able to deposit them within this time will be able to do so up until 31st March, 2017 as per the extended announcements.

2.    Bank will keep every track of your money and the income tax department too. So, make sure you deposit them by submitting proper documents.

3.    Wait for some time and then go for deposit. Do not let your hard income money go on waste just because you were in a hurry and did mistakes.

Impacts on Business Shield after Government Banned 500 and 1000 Notes.

A view by Mr. Deepak Gupta.

40 Minutes Speech!! Who knew it would bring a heavy storm for 2 days. There is a historical reform in the economy of India by prohibiting 500 and 1000 notes effect from Tuesday Midnight. The process of pretension seems to be a bold problem for everyone now. Every single person is in the supporting side to the decision of Modi Government. Entrepreneurs, commoners and majority of industry have shown their overwhelming support knowing that this would cause a huge problem for them to survive the attack.

Public talks are now on top picks asking and giving opinions that this could have informed two three days before. In fact, this would have beat the entire purpose and all black money could have been circulated very well. A truth fact is that this is going to impact the business man, commoners and can bring huge inflation or deflation in financial institutions.

Unfavourable impacts on following factors

Rural Economy

This reform in the economy of India can have a bad impact on the rural economy. Out of 10 lakh banks from all over India, there are 6.8 lakh villages which have no bank in their area. Some of them do not have slight knowledge of banking and about the recent classification of India economy. Time may come that rural areas will be having cashless transactions in their areas. Also, peoples who have 500 or 1000 notes without a valid identification or document will face so many problems while exchanging the money.

Black Money Holder

Government declaration on India economy by the demonetization of 500 and 1000 notes has specifically pointed to the black money holders to burst out their lies. So, once they get caught through tax verification process then they may have to pay the double or 120% or 60% of the total illegal amount stored. With this move in play, black money holders are now left with two options with them. One is that they must declare the amount as their income or they circulate it through hospitals or other places where the government has given certain time to exchange the notes. They have only the first choice to deposit the money in the bank which in further will notify the government about their undisclosed money from the previous and is higher than the income rate. Even if they show it as normal income then also they have to pay the tax as per the normal rate.

Fake Note Route

A convinced source of media report says that Modi said in his talk about how terrorist get their money. Enemies of the Nation across the border running their operations using fake currency notes for years. Recent act by militant operating against India has exchanged 500 Notes with $7.50 at current exchange rates. So, Modi's surgical strikes on these groups have a mindset to withdraw these series of high-value notes and introducing new notes.

Domestic/ House Hold Areas

Now this process has an outlook that the move will break the flow of high-value notes from the black money market. However, Broder view says that the impact points towards the super-rich, black marketers and smugglers or hawala operators as they only keep high denomination notes. Business of every single person has gone down to the earth in two days. Every one of them has 500/1000 notes which they are now standing in a long queue to deposit them.

Foreign accounts and Tax havens: Those who have their black money stored in the swiss banks, offshore accounts, gold or properties in foreign parks are not going to affect by this move of the government. Here a question arises that, how the government is going to stop this?

Political Party Funds

Politicians and their parties have lots of black money in their pockets and they use them during election time. It is going to be very difficult for them to pass trucks of money for their illegal use.

Favourable Impacts of this move

There are so many fields which have favourable impacts on them after this move. Following are some noticed fields

1.    Banks are expected a valid proof on every penny: The government has announced that every single person needs to bring an official identification to deposit the amount. Especially for them who has lots of cash to deposit in the bank. In exchange note, the bank will give only Rs.4000 as an immediate amount to the account holder and others will be credited to their account. This will increase bank's deposits on a huge scale. In fact, it will increase the lending activities

2.    Jewellery business welcomes this change of Indian economy. Gold price will rise so the trust on the importance of gold will also rise rather than high-value notes. Small variation will be there in this business but overall it is going to be beneficial for it.

3.    Despite all of this, positive impacts are there in rural sector which cannot be neglected. Rural transactions take place through currency notes and undocumented lending and borrowings which take the rich landlord to the nearest bank in the city.

4.    Deflation in the economy could be widely impacted by this and this will be witnessed in next six months.

5.    Positive Impacts on payment transactions and security will drive the card payment across the INDIA and cash transaction will be very less. ATM’s are restricted with withdrawals of 2000 amount per day and banks are limited to 10,000 per day & 20,000 a week.

There are some other practical problems are there with people like vendors, vegetable stock owners, local grocers and other consumer stock owners. But this will be temporary suffer which can bring huge changes in the future.

Sharing some tips to avoid mistakes through this period:

1.    The government has announced the time up until 30th December to deposit your cash and get exchange notes. Also, those who are not able to deposit them within this time will be able to do so up until 31st March, 2017 as per the extended announcements.

2.    Bank will keep every track of your money and the income tax department too. So, make sure you deposit them by submitting proper documents.

3.    Wait for some time and then go for deposit. Do not let your hard income money go on waste just because you were in a hurry and did mistakes.