Description
Describes concept of real estate mutual funds, problems associated with these funds.
REAL ESTATE
MUTUAL FUNDS Sanjay Chaturvedi
NMIMS
REAL ESTATE MUTUAL FUNDS are not permitted to hold real estate assets.
But there already are sector funds where the public invests money exclusively in companies belonging to one sector. This concept just needs to be take further to allow investments in real estate
Realty Funds
? HDFC
? IL&FS
? ICICI
? Star Infrastructure
Problems
AFFORDABILITY ? AGE OLD ACTS AND RULES ? GOVERNMENT ADMINISTRATION ? FORECLOSURE ? HIGH COST OF FUNDS ? INFORMAL SECTOR ? COMPETITION ? LEGAL HURDLES ? CONSTRUCTION FINANCE
?
AGE OLD ACTS AND RULES
? URBAN LAND CEILING
ACT ? CLEAR MORTGAGE ? MORE THAN 100 ACTS GOVERNING ? NHB GUIDELINE
GOVERNMENT ADMINISTRATION
? LACK OF COMPUTERISATION ? CORRUPTION
? DELAYS IN SEARCH AND
SURVEYS ? NON REPEALING OF ACTS ? DELAYS IN STAMPING AND REGISTRATION
FORECLOSURE
? NO SEPARATE ACT,
ONLY THROUGH NHB ACT ? STILL NOT PASSED ? NO CLEAR GUIDLINE ? DECADES FOR RESOLVING ISSUES IN THE COURT OF LAW
LEGAL HURDLES
NO CLEAR TITLE OFFERED ? NO CONVEYANCE OF BUILDERS ? NOC DENIED BY SOCIETIES FOR MORTGAGE ? AGE OF CONSTRUCTION ? LONG TIME IN COURT RULING ? STAMP DUTY & REGISTRATION
?
High Hopes
Mutual Fund Association Strongly recommended ? SEBI in favour of such funds ? Demand for housing is on high notes ? Greater Transparency in Real Estate Deals ? Land Records computerised ? Rationalization of Stamp Duty mooted
?
Real Estate Venture Funds
? Financial real estate developers
? Construction Finance ? Equity participation in business ? For acquiring FSI and Land,
future projects ? Entry level very high Rs. 5 crore and more
Real Estate Investment Trusts (REITS)
Preferred instead of Mutual Funds ? Real estate mutual funds generally invest in REITS ? REIT's, which are publicly traded companies that hold portfolios of real estate and are required to pay out most of their income each year in the form of dividends
?
Thank You
Sanjay Chaturvedi Executive Editor ACCOMMODATION TIMES
doc_649100072.ppt
Describes concept of real estate mutual funds, problems associated with these funds.
REAL ESTATE
MUTUAL FUNDS Sanjay Chaturvedi
NMIMS
REAL ESTATE MUTUAL FUNDS are not permitted to hold real estate assets.
But there already are sector funds where the public invests money exclusively in companies belonging to one sector. This concept just needs to be take further to allow investments in real estate
Realty Funds
? HDFC
? IL&FS
? ICICI
? Star Infrastructure
Problems
AFFORDABILITY ? AGE OLD ACTS AND RULES ? GOVERNMENT ADMINISTRATION ? FORECLOSURE ? HIGH COST OF FUNDS ? INFORMAL SECTOR ? COMPETITION ? LEGAL HURDLES ? CONSTRUCTION FINANCE
?
AGE OLD ACTS AND RULES
? URBAN LAND CEILING
ACT ? CLEAR MORTGAGE ? MORE THAN 100 ACTS GOVERNING ? NHB GUIDELINE
GOVERNMENT ADMINISTRATION
? LACK OF COMPUTERISATION ? CORRUPTION
? DELAYS IN SEARCH AND
SURVEYS ? NON REPEALING OF ACTS ? DELAYS IN STAMPING AND REGISTRATION
FORECLOSURE
? NO SEPARATE ACT,
ONLY THROUGH NHB ACT ? STILL NOT PASSED ? NO CLEAR GUIDLINE ? DECADES FOR RESOLVING ISSUES IN THE COURT OF LAW
LEGAL HURDLES
NO CLEAR TITLE OFFERED ? NO CONVEYANCE OF BUILDERS ? NOC DENIED BY SOCIETIES FOR MORTGAGE ? AGE OF CONSTRUCTION ? LONG TIME IN COURT RULING ? STAMP DUTY & REGISTRATION
?
High Hopes
Mutual Fund Association Strongly recommended ? SEBI in favour of such funds ? Demand for housing is on high notes ? Greater Transparency in Real Estate Deals ? Land Records computerised ? Rationalization of Stamp Duty mooted
?
Real Estate Venture Funds
? Financial real estate developers
? Construction Finance ? Equity participation in business ? For acquiring FSI and Land,
future projects ? Entry level very high Rs. 5 crore and more
Real Estate Investment Trusts (REITS)
Preferred instead of Mutual Funds ? Real estate mutual funds generally invest in REITS ? REIT's, which are publicly traded companies that hold portfolios of real estate and are required to pay out most of their income each year in the form of dividends
?
Thank You
Sanjay Chaturvedi Executive Editor ACCOMMODATION TIMES
doc_649100072.ppt