Why Should you Invest in Affordable Housing?

Affordable Housing

As per the definition of affordable housing, it is a housing unit that is for below-median income group, who is looking to buy homes in a medium to the high-density housing areas. Affordable Housing is present government’s key agenda whether at the state or center level and is a big way in giving a real-estate push to the economy and provide a standard of living to the nation. Being key issue  in a developing country like India where a majority of the population can’t afford a place to call their own home. Affordable housing primarily depends on affordability which is determined by the disposable income of the people. It is the need of the hour because according to the Technical Group Report, two low-income categories – economically weaker sections (EWS) and low-income group (LIG) accounted for 96 per cent of the total shortage in India. Due to the need for houses increasing and also the need and intent of urbanization on the rising housing in the urban area has to be increased drastically. Affordable housing is the way to go, as per the rate of urbanization 40% of the country is expected to live in an urban area by 2030. In the context of the estimation of affordable housing needs, housing shortages are calculated (Planning Commission methodology) by adding: (a) Excess of households over housing stock, (b) The number of households residing in unacceptable dwelling units (c) Those residing in unacceptable physical and social conditions due to overcrowding and congestion factor and (d) The houseless households Hence, it means that there is obsolescence (of houses), congestion factor and homeless factor in estimating new housing demand.

What makes a Housing scheme comes under affordable housing scheme?

There are two types of affordable houses –MIG I and MIG II MIG – I are household for the income between 6-12 lakhs and MIG -2 are household between the income 12-18 lakhs. MIG I are allowed loan up to 9 lakhs at 4% interest. MIG-II up to 12 lakhs at 3% interest which is a huge subsidy from present rates and the tenure up to 20 years. Developers in the affordable housing sector will also get a year’s time to pay tax on notional rental income on completed but unsold units. The tenure for long-term capital gains for affordable has come down from three to two.

Investment opportunities

Affordable housing is a great investment opportunity for people in all sector as this concept has taken of in all the countries after 2009 crash in the world. Real estate sector people basically were forced into the affordable housing sector because of the liquidity crunch which has been again faced by people in India. The problems are not the same with the affordable housing sectors as listed above the 40% people are moving to cities affordable homes are built for them hence the demand is high. Affordable homes make it easy to cash in at a higher rate after holding at a certain point. Affordable homes are also good if you are from a low or medium group as the buyers are RERA protected and fully utilized for their space. Overall Affordable Home is a good place to start with for your first home If you are looking for Affordable housing in Haryana do check Springwoods City. It has best in class facilities and amenities.

Source- Haryana Goverment Circular

Manesar

Manesar is a small town in the state of Haryana.  It is situated 15 minutes away from Gurgaon and 30 min away from the Airport and has emerged as a most preferred location for industries and manufacturing units in the past few decades.

Located on NH8, it has also become the most preferred choice for Real Estate developers (for their real estate residential projects) and Industrialists (for setting up their industries). With growing industrialization and hence employment in this area, there has been an increase in the population in this area. To cater to this growing population, several Real Estate Projects have been launched in this area offering 2BHK flats and 3BHK flats. People working here; prefer to stay nearby, as this area is comparatively cheaper than the adjoining residential area (Gurgaon). 2BHK and 3BHK flats in Manesar cost much less than what is offered in Gurgaon.

Ready to move in flats in Manesar have higher demand than under construction residential projects.

Ready to move flats in Manesar have huge demand, as there is also a huge demand for Flats for rent on Manesar, as not many people working in Manesar are able to afford a flat in Manesar. So many investors buy 2BHK and 3BHK flats & Property in Manesar and rent them out to people working in that area.

Why people are preferring DDJAY plots over Apartments in Haryana

Demand and Price for real estate have gone down tremendously in the last decade. Not only the price but also the sentiments and trust of the buyers in the high rise apartment projects have gone down. This is because some developers have defaulted in the completion of the project within the stipulated time, which has shaken the faith of all the homebuyers in the real estate developer.

In such a scenario people are seeing residential plots as a safer real estate investment option. One of the most preferred options for residential plotting in Haryana is affordable plotting under Haryana Government’s Deen Dayal Jan Awas Yojana. Deen Dayal Jan Awas Yojana (DDJAY) is a policy launched by Haryana Government in 2016 which aims at developing low and medium potential towns of Haryana by offering affordable plots in high-density colonies.

Plots offered under this policy are of a maximum size of 150sqm (~180 square yards) bringing them in the reach of the masses in the lower and middle-income group. Affordable residential plotting under Haryana government’s Deen Dayal Jan Awas Yojana (DDJAY) also offers several other benefits to its homebuyers which includes independent floor registry, higher FAR (floor area ratio) of 2.0 and construction of stilt

Affordable plotting under Haryana government’s Deen Dayal Jan Awas yojana not only offers numerous benefits to the homebuyers but also to the developer so that the developer can sell these residential plots at an affordable price. CLU and IDC charges have been waived off. Other fees charged to the developer has also been substantially reduced. The developer is however bound to complete and deliver the project within 7 years of the grant of the license.

One of the best affordable residential project under Haryana government’s Deen Dayal Jan Awas Yojana is Springwoods City located at a prime location near Bhiwadi close to RPS school. With direct entry from 75m wide expressway, it can also boast of a posh neighbourhood of luxury apartments of Casa Romana.

Why Should you Invest in Affordable Housing?

As per the definition of affordable housing, it is a housing unit that is for below-median income group, who is looking to buy homes in a medium to the high-density housing areas. Affordable Housing is present government’s key agenda whether at the state or center level and is a big way in giving a real-estate push to the economy and provide a standard of living to the nation. Being key issue  in a developing country like India where a majority of the population can’t afford a place to call their own home. Affordable housing primarily depends on affordability which is determined by the disposable income of the people. It is the need of the hour because according to the Technical Group Report, two low-income categories – economically weaker sections (EWS) and low-income group (LIG) accounted for 96 per cent of the total shortage in India. Due to the need for houses increasing and also the need and intent of urbanization on the rising housing in the urban area has to be increased drastically. Affordable housing is the way to go, as per the rate of urbanization 40% of the country is expected to live in an urban area by 2030. In the context of the estimation of affordable housing needs, housing shortages are calculated (Planning Commission methodology) by adding: (a) Excess of households over housing stock, (b) The number of households residing in unacceptable dwelling units (c) Those residing in unacceptable physical and social conditions due to overcrowding and congestion factor and (d) The houseless households Hence, it means that there is obsolescence (of houses), congestion factor and homeless factor in estimating new housing demand.

What makes a Housing scheme comes under affordable housing scheme?

There are two types of affordable houses –MIG I and MIG II MIG – I are household for the income between 6-12 lakhs and MIG -2 are household between the income 12-18 lakhs. MIG I are allowed loan up to 9 lakhs at 4% interest. MIG-II up to 12 lakhs at 3% interest which is a huge subsidy from present rates and the tenure up to 20 years. Developers in the affordable housing sector will also get a year’s time to pay tax on notional rental income on completed but unsold units. The tenure for long-term capital gains for affordable has come down from three to two.

Investment opportunities

Affordable housing is a great investment opportunity for people in all sector as this concept has taken of in all the countries after 2009 crash in the world. Real estate sector people basically were forced into the affordable housing sector because of the liquidity crunch which has been again faced by people in India. The problems are not the same with the affordable housing sectors as listed above the 40% people are moving to cities affordable homes are built for them hence the demand is high. Affordable homes make it easy to cash in at a higher rate after holding at a certain point. Affordable homes are also good if you are from a low or medium group as the buyers are RERA protected and fully utilized for their space. Overall Affordable Home is a good place to start with for your first home If you are looking for Affordable housing in Haryana do check Springwoods City. It has best in class facilities and amenities.

Source- Haryana Goverment Circular

What is Deen Dayal Jan Awas Yojana ?

Deen Dayal Jan Awas Yojana(DDJAY)- Affordable Plotted Housing Policy 2016 for Low & Medium Potential Towns of Haryana.

•  Policy will be applicable in Residential Zone of Low & Medium Potential Towns of Haryana.

• Only 30% of the Net Planned area of Residential Sector can be allowed for project under this deen dayal jan awas yojana (DDJAY) policy. While calculating limit of 30 %, existing limit of 20% allowed for Group Housing either affordable or Normal to be included. However DGTCP may increase limit up to 40%.*

• Minimum area of the Project under Deen Dayal Jan Awas Yojana is 5 Acres & Maximum is 15 Acres.

• Affordable Residential Plotting project under DDJAY should be completed within 7 years from the date of License.

• Last date of application for license under DDJAY policy was 8th May, 2016.

• No cap on allotment rate of the plots under deen dayal jan awas yojana (DDJAY) policy.

• Area Parameters:

o Area of affordable residential plots under DDJAY policy to be permitted: 150 sqm.

o Max. density permitted under DDJAY policy: 240 to 400 persons per acre (PPA)

o area allowed under Residential & Commercial Plots: 65% of Licensed area

o Area under Commercial Use: 4% of Licensed area

o FAR on affordable Residential Plots under DDJAY policy of up to 150 sq.m : 2.00

o Minimum width of internal roads in the colony: 9 meter

o Minimum Area under organized Open Space: 5% of the licensed area

o 10% area of licensed colony under DDJAY policy will be given to Govt. for community facility

• Stilt parking is also allowed. Independent floors registry is also allowed for plots under the deen dayal jan awas yojana (DDJAY) policy.

• Applicable Fees & Charges: o  Medium potential Towns: 1 lakh per acre o  Low potential towns: 10 thousand per acre o The scrutiny fees at prescribed rates shall be levied. o The conversion charges and IDC shall stand waived off.

• EDC: o  Medium Potential Zone: 10 Lakh per acre o Low-1 Potential Zone: 5 Lakh per Acre o Low-2 potential Zone: 5 Lakh Per Acre

Affordable Plotted Housing Policy or DDJAY

DDJAY policy by Haryana Government is an initiative to promote the development of plotted colonies featuring high density. It has emerged as a gleam of hope for those who could merely dream to own a roof above them, so far. Maximum plots area to meet with the permission is 150 sqm. The maximum density and the minimum density permitted is 240 to 400 (People per Acres). Those who have been toying with an idea to seize the opportunity to secure budget-friendly home requires acknowledging that ‘Affordable Plotted Housing Policy for Low and Medium Potential Towns’ and ‘Deen Dayal Jan Awas Yojana’ are used interchangeably.

Source- Goverment of Haryana Circular

Best Affordable Residential homes project on Delhi-Jaipur Highway (NH8)

Even though the cost of real estate has been stagnant for the past 10 years buying a home is still an expensive process for many. It takes a person’s lifelong savings, huge loans or sometimes both. Real-estate is still a huge deal for many and is a big investment opportunity for long term and also a priority investment where the major chunk of saving will go. In such a scenario, options of affordable homes and budget homes comes to the rescue. We will be sharing some of the best places to buy affordable homes near Gurgaon on Delhi-Jaipur highway on NH 8 as it seems to be a huge hit in terms of both commercial as well as private real-estate property. So we will be discussing the affordable residential projects towards Jaipur in Dharuhera. Dharuhera is an upcoming area which has gained tremendous popularity among st industrialist, investors and real estate developers in recent years

Not wasting more of your time let’s start from cost effective and affordable residential housing options.

1) Springwoods City- Deen Dayal Jan Awas Yojana

Springwoods under Haryana Government’s Deen Dayal Jan Awas Yojana (DDJAY) policy of 2016 is an affordable residential homes with cost starting from 28 lakhs and plots range from the size of 118.94 sq. yards to 165.sq yards. It is a gated society located about 40 km from center of Gurgaon. It has all the basic facilities like underground water, sewer and street light cable. Gated society with excellent location and commercial complex nearby. On top of that it is RERA registered so it has all the government approvals in place. The Price of land is Rs23000/sq yards. It is strategically located at just few minutes from NH8 with direct entry from 75m wide Expressway Link to website- www.springwoodscity.co.in

2) Anandam Estate

Anandam Estate affordable residential homes on NH8 is again an amazing property with features like Landscape Park, CCTV footage, Rain Water Harvesting and 24X7 Security. It is situated around 38 Km from Gurgaon. The size range from 1350 sq.ft to 3933 sq.ft with prices from 36L to 1.05 Cr. The price per sq.ft is 2670. You can check there website at  https://www.mghousing.com/anandam-estate-dharuhera

3) M2K County

M2k County is an affordable residential homes is priced from 24 to 32 lakhs . The plots size ranging from 1684 sq. ft. to 2246 sq.ft It has the facilities such as shopping center, landscape garden, club house and children’s park. The price per sq.ft ranges from 1425 sq.ft to 1725 sq.ft . The distance from Gurgaon is 41Km . Good location from NH8 You Can Check more on the website http://www.m2kindia.com/listing/m2k-county-heights/

4) Bestech City

Bestech city is situated 38 km from Gurgaon and has facilities such as paved compound, gated society, 24X7 Security, Grocery Shop and School. The Prices range from 18 lakhs to 1.6 Cr it is what you call on higher end of affordable homes in the area. The size of plot ranging from 540 sq.ft to 4914 sq.ft. The Price per sq.ft is around 3000 INR. Another site with good location from NH8

Check There Website Here–> http://bestechgroup.com/bestech-city-dharuhera.php