What is an Occupancy Certificate?

This is given by the engineering department of the BBMP.
The builder has to first obtain  commencement certificate and later once the construction is completed obtain Occupancy Certificate.


Commencement certificate:
Once the building licence is obtained and the building is ready for the construction, the builder needs to apply for commencement certificate. Thus at the plinth level itself the builder has to apply for the commencement certificate. . 




Occupancy Certificate
The occupancy certificate is obtained at the end of the construction. Once the builder applies for the certificate an inspection is done to confirm whether the construction has happened according to the sanctioned plan.

This certificate is mandatory for any builder before he allows people to take possession of the property. This certificate was made compulsory by the BBMP to ensure proper construction in the city.

The Joint director of Town Planning is in-charge of this certificates and the engineering department takes charge of issuing, inspecting and acts as a regulatory body to ensure that each builder obtains it.

What is an Encumbrance Certificate?

This certificate can be obtained from the sub registrar's office. This office is directly under control of the Inspector of Registration of Properties, operated by the state government. The certificate shows that in a given period of time from when the property was bought/sold has there been any transaction or mortgaging. Buyers/sellers ask for this certificate for when a new transfer (sale) is taking place, so that the buyer knows transactions that have taken place ever since.

The certificate is given in two different forms. Form 15, will have details of transactions during the period of registration in the name of the owner. A person will get a 'nil encumbrance certificate when no transaction has taken place. this certificate would appear on Form 16.

The encumbrance certificate is to confirm that the property is still in the name of the person who is selling it. This certificate can be obtained in maximum 10 days time.

Market Rallies after Rate cut By RBI

NEW DELHI: The Reserve Bank of India in its quarterly review meet on Tuesday cut the cash reserve ratio (CRR) by 50 bps to ease tight liquidity pressure in the banking system.

The bank hiked rates 13 times since March 2010, the most aggressive pace of monetary tightening among its global peers, to deal with the persistently high inflation, including rising prices of food items. The RBI left interest rates unchanged in December. 


BSE has rallied by 250+ till 2 pm. Market has received the news with a lot of cheer. With this we finally have peaked on interest rates. 

Documents to see before buying an apartment in Bangalore ?

Documents to check before purchasing an apartment in Bangalore ?

Majority of prospective apartment buyers in Bangalore are not aware of important documents to procure while buying an apartment. Many have been fooled and many other suffered due to lack of proper documentary proof. A buyer needs to know about all the papers and information related to the title and its authenticity should be examined by a legal expert.
Most apartments built in Bangalore are on joint venture. Mostly two separate individuals, land owner and promoter jointly agrees to develop the property. Accordingly they distribute the number of apartments among each other. But there are many other big players in the market who are working individually. A buyer need to obtain separate set of papers for separate seller.

Before you buy an apartment, ask for following documents to ascertain the title and other legal issues:

·        Ask for original copy of the mother deed and other succession papers.

·        All the receipts of property tax paid regularly.

·        Ask for original Katha in the name developer. If built jointly katha should be in   landowners name.

·        Get updated No-encumbrance certificate from sub-registrar.

·        In case of joint venture, ask for joint-development agreement between the two.   

·        Don’t forget to look into the actual ratio in which built-up area is shared.           

·        Get the sanction plan of the apartment, its validity and commencement

Apart from what is mentioned above, an apartment buyer in Bangalore needs to look for other issues like:

• Electrical power sanctioned for each apartment. A 3 kilo watt supply will not help in running a few AC’s and geysers.
• The actual carpet area is not the super built-up area. Be clear that carpet area will be 20-25% less than the super built-up area and the selling price is fixed on super built-up area.
• Get information about all the common amenities provided by the developer.
• Make sure developer has not used the green belt area for construction of apartments.
• On completion, the developer is issued an occupancy certificate by the Corporation/BDA/City Municipal Corporation CMC. Insist on getting a copy of it

Friends take this very seriously. In my experience, I have come across numerous cases of violations.

 

KARNATAKA PROPERTY PAPERS : Khata

What is a Khata?

There is no specific mention of the term Khata in the Act it is only the Assessment register. An assessment register has a compilation of all the details of any property in the city. The term Khata came up with use. It literally means an account. And this Khata is an account of a person who has property in the city.

There are two things in a Khata: Khata Certificate and Khata Extract.

A BBMP Khata certificate is required for two major purposes: For registration of a new property and for transfer of any property. It can be obtained from the Assistant Revenue officer (of the respective area) of the BBMP. There is a nominal fee of Rs.25 for the form.Under Section 114 of the Karnataka Municipality Council Act this certificate is necessary for any property owner to have.

Khata Certificate is obtained for any new registration after paying the tax. The certificate is issued saying that a particular property No 'N" stands in the name of person X. This certificate is required to apply for water connection, electricity connection, trade license and building license. The Khata certificate is given only to the owner of the property or to his family members. No one else can take it on his behalf. It takes maximum of One week to get the certificate. One can also get it instantly in some citizen service centres (details: http://www.bmponline.org/citizen-svc-centersl.shtml)

(When a transaction takes place both the seller and the buyer have to inform the BBMP within three months of the transaction. In case of death of either party, within one year.)

 
Khata Extract is getting details from the assessment register. The extract is required to get trade license, or to buy a particular property. It is an extract from the assessment register about any particular property. It has the details of the property in a particular format with the name, size of the property, use of the property (commercial purpose, residential),annual value, when assessed last.

An extract is the only way to get these details of any property.

Insurance Plan : Endowment vs Term Plan

Endowment Policy : An endowment policy is a combination of insurance and investment: The life of the individual taking the policy is insured for a certain amount. This life cover is referred to as the sum assured.

Premium paid is high.

Term Insurance Policy: A term insurance policy is a pure insurance policy.Should the insured person pass away, the family is protected by a certain amount.

Let's say you bought a term insurance policy for Rs 20 lakh . The term of the policy is for 20 years.

If you pass away during this period, your family will be richer by Rs 20 lakh.

But, if you outlive your policy, all your premiums (money that you pay to the insurance company to maintain your policy) would not be returned.

Here the Premium paid is very low.

Equity Market Guidance [ From ET Now education program in Ahmedabad]

I watched a wonderful program on ET Now last saturday 21/Jan/2012. Just felt that I need to share me observations with you all. The Experts which included the statistical wizard Dr CR Narayanan felt that for the year Nifty would remain range bound. At the down side touching 4500 and up side 5400. As per the panelist late july 2012 and august 2012 would expose the underbelly 4500 and later this year late Nov 2012 and Dec 2012 would see the Nifty touching 5400.

It was a fantastic program where the experts spoke predominantly in Hindi with some english and gujarati word thrown in. The focus was to lead non financial people to get an insight in to market and nuances of safe trading. I really enjoyed listening to the conversations. Let me list what I learnt in the program
i) long term investment hardly fails to give decent returns. You need to hold on to 8 to 10 years to get 10% compound interest .
ii) Do not buy any equity based on a tip. Look in to eps, p/e ratio, historical data and sector guidance.
iii) One of the tip was DCB Bank. I am going to look in to it and analyse right away.
iv) Bullish on Banking stocks. The reason is almost all transactions involve banking services. Banking industry books of account can be trusted. RBI regulations are very stringent for the banks.

How Can I Earn Much More Money Via Survey?

How Can I Earn Much More Money Via Survey without any Investment?


I am giving below list of  Top 10 Online paid survey websites :
01) Opinion Outpost
02) EDU Survey Panel
03) Consumer Village
04) Light speed Panel
05) American Consumer Opinion (ACOP)
06) Greenfieldonline
07) Pinecone Research
08) Valued Opinions
09) GiveUsYour2Cents
10) Zoom Panel

You can register with anyone or more of the above websites and start making some money via surveys.
Many Companies are really needing the paid surveys for their various products and services. They are willing to give you $ 5-500 per survey to the people.

Financial Statement Basics - Overview

The Only difference between Rich and everyone else is that, Rich know how to read Financial Statements and how to analyze them. Remember, Rich always think in Financial Statements.
If you want to be Rich and Super rich than you MUST learn, “How to Read Financial Statements”
This Short course will cover all the basic aspects of Financial Statements. After reading this whole the short course, You will learn What is Financial Statement, What is the importance of it and How to read and think in Financial Statements like Rich.
Reading, Analyzing & Thinking in Financial Statement is Fun and Excitement………..!!!!!!! You will N’joy it a Lot…..!!!!!
Overview of Financial Statement -
See the Figure above. It is an Oversimplified Line Diagram of a Financial Statement.
I will teach you all the basics of Financial Statement in very Simplified Language and oversimplified Diagrams so that you will be able to understand it in more deep and more details.
Each Financial Statement has 2  major Parts. (See the Figure)
1) Income Statement &
2) Balance Sheet
Again both of these 2 major parts are subdivided into 2 more parts. Income statement has 2 subparts, Income & Expense while Balance Sheet has 2 subparts, Asset Column & Liability Column.
So In Short, Financial Statement has 4 basic Parts, Income, Expense, Asset Column & Liability Column. If you want to be Rich than you have to understand each part of Financial Statement in very detail and not only this but you have to understand the correlation between each of the four parts.
Each part of the Financial Statement has its own characteristics and each part is correlated with different other parts of the Financial statement in different way. And this connection between various parts of the Financial Statement generate various types of Cash flow patterns in Rich, Middle Class, Poor & Ultra-Rich.
Virtually all the Personal Finance advises (Frugality, budgeting, Investments, Reducing expenses, Debt reduction, Credit card debt elimination, Spend less than you earn and every other Financial advise……..) are originated from the Financial Statement only. So Learning the Basics of Financial Statement will cover all of these Personal Finance advises in Simple and easy to understand languages.
Who has Financial Statement?
Any Separate Financial Entity has its own Personal Financial Statement. In other words, anything on this world, that is related to Money has its own Personal Financial Statement.
Individuals, Corporates, Publically Listed Companies, Businesses, Rental Properties, Investments, Government….. all of them have their own Financial Statement. When a doctor see and analyze your Blood & Urine Reports, ECG, X-ray, Sonography and other Investigations, they can judge your Health.
The same is true about your Financial Statement. Financial Statement is the report of your Financial Health. By reading and analyzing Financial Statements, you can judge the Financial Health of that Individual, Business, Company, Government or Rental Property……!!!!!!!!
Remember -
- Most of the time people judge anyone’s Financial Health and well beingness by watching their Expensive Cars, Clothes and Expensive Life style. But you should remember that, you can not and you should not judge anyone’s Financial Health without watching and analyzing their Financial Statements.
If someone tells you that, Some so and so fellow is rich than you should tell your self that, May be he/she is Rich but I can’t judge it without reading his/her Financial Statement.
- Another Common mistake people do in India is that they judge any Business or Company’s Financial Health by rumor only. They fill IPOs and invest in the stocks of the companies by blindly following rumors and Hot Tips. But you should check and analyze the Financial Statement of any Company before applying for its IPO (Initial Public Offering) or buying a stock of that Company from the stock market. Most of the people of India and this world don’t know how to read financial statements and this is the reason they always lose their money in the stock market. If you have learned to read Financial statement than you should have invested in fundamentally strong companies and thus in the down market also you won’t feel any discomfort.
People earn a lot of money from their Professional career. But when it comes to making and investing Money they simply follow the advise of Brokers or divert their money to someone else to manage it. The reason is because they don’t know how to read and analyze the Financial statements so they can’t make Informed Investment Decision.

What is Stock?

What is Stock: Definition & Examples of Stocks
Well, here are few definitions of the stock.
- Stock is ownership in a company. The most popular types are common stock and preferred stock.
- the capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity); "he owns a controlling share of the company's stock"
Now, let us discuss in the layman’s language that what is stock? Just imagine for a while that you are the owner of a Business and you cut down your business in to small pieces of equal size and you say each piece a Share(Stock). Now, you retain 51% of pieces of the business with you (Yes, The Smart Business owner will do this so he can fire CEO also) and than sell rest of the 49% pieces to the Investors and public. In this way, by selling the partial ownership of your Business, you will raise capital for your business expansion and growth as well as retain control over the Business.
Thus, the stock is not just a piece of paper or a ticker symbol only but it’s a piece of some Business. A Stock represents the ownership interest in the company.
Say for Example, if you own few shares of Reliance than it means that, you are the owner of that much part of the Business. If you own shares of Google or Microsoft than it means that, you are the part of the owner of those Giant Businesses.
Unfortunately, most of the people in this world treat the stock as a piece of paper only and that’s why most if them can’t make fortunes out of it. But great investors like Warren Buffet, treat buying stocks as they are buying the ownership in the Business.
Do you know that, the ownership of world’s greatest Businesses are selling daily on the stock market but how many of you really buy the ownership of those Businesses? Not Many…. Am I Right?
All of us have a chance to become a part of the owner of world’s greatest Businesses (By buying Stocks of these Businesses) But very few from us save money to buy stocks and that’s why most of the people remain middle class and live paycheck to paycheck and those who own a piece of great Businesses, make fortunes out of it…!!!!

Difference Between Equity & Debt

Difference Between Equity Shares & Debt -
What is the Basic difference between Equity & Debt? This is the question of basics of Financial Literacy. Many people invest (I am sorry, In reality they are Speculate) in the stock market and buy the shares but they don’t know that, What is Equity and What is Debt?
This article will teach you in Layman’s language that, what it means by equity and debt and what is the difference between them?
Well, Equity means Shares or the piece of the ownership of a Company. Say for Example, for a while imagine that, you own a business. Now you divide this business into several pieces of equal size and retain 51% pieces (Shares) with you and sell rest of the pieces to the others. These pieces are known as Equity or Shares or Common Stocks. They represent the ownership interest in the company.
Suppose if you own 100 Shares of Google than it means that, you are the owner of that much part of the Business. This is Equity. It is the ownership of the underlying Business/Company.
Now, Debt means when a Company/Business borrows money from the Bank, Financial Institutes or public, it issues a certificate to the lender (Bank, Public or Financial Institution). This certificate is a Debt Paper. And Investors invest in Debt Papers. Sometimes Investors invest in company (By Buying stocks of the Company) while sometimes investors lend money to the Company (By buying its Debt Paper).
So whenever you buy Equity of some Business, it means that you invest your money in that Business and whenever you buy a Debt Paper of any Business it means that you are lending your money to that Business. In other words, that Business is borrowing money from you to expand and will pay you interest on your money.
Now, Whenever government goes into Debt and borrow money from the Investors and people, this Debt Paper is known as Bond. Say for Example, US Treasury Bonds, GOI (Government of India) Bonds…etc…

Gold Loan Vs Personal Loan

Gold Loan Vs Personal Loan: Which is Better?
Many readers ask me that which loan is better – A Gold loan or a personal loan? Well, it really depends. Most of the personal finance advisors say that gold loan is better than personal loans. Well, I do agree with them but for particular circumstances only.
Let me explain you How?
Most of the finance gurus say that gold loan is better than personal loans for two reasons.

01) Gold loans don’t require any Income proof or huge salary. Anyone who has gold can apply for the gold loan. While for taking a personal loan, you will need to submit lots of income proof and other required documents.
02) The second advantage of gold loan is – Low Interest rates. Gold Loan Interest rates are just 12-14% per annum. While personal loan interest rates can be higher than this.
Thus, because of the above two reasons, gurus advise to take a gold loan rather than personal loan.
But well, my opinion is little bit different. What my opinion is that, if you are going to finance the assets (Education, Business, Real Estate or any other Investment) out of your borrowed money than and only go for the gold loan, otherwise go for the personal loans if you are going to finance the liabilities (Tours & Travels, Car, Status items..etc..).
This is because in case of personal loans, if you will default than you will only damage your credit value with the lenders. But if you will default on gold loan than you will lose the control over this precious asset class.
So only go for gold loan if you are going to finance the assets. But if you are going to finance liabilities than go for the personal loans.
Remember, the smart people are those who use debt to finance the assets while the dumb people are those who use debt to finance the liabilities.