Getting loan against property as collateral more cost-effective

Even if you are a meticulous saver, there may be times when your finances are strained and you need a little help to tide you over. Though borrowing from family or friends is a preferred option for many, if the amount you need is large, it may not be a good idea to stress their finances as well. A better option would be to leverage an asset you own—your house.

You can use your house as collateral to take a loan from a bank. The latter will exercise due diligence as far as the property is concerned, appraise its value, and offer you up to 70% of its value as loan. Since this is a secured loan (you are offering a collateral), you can get a higher amount than the one you will get for an unsecured loan like a personal loan. Of course, you will also have to pay the administrative and processing fee, which is usually 0.5-1.5% of the value of the loan. Typically, the tenure for such a loan is 1-9 years, but some banks may be willing to extend it to 15 years if the loan is large. The interest rate, which can be floating or fixed, varies from 12-16%, which makes them cheaper than personal loans (see table).

"Taking a loan against your property is certainly cheaper than a personal loan, where the interest rate is usually between 14% and 22%. The only loan that is less expensive than the one against a property is a home loan," says Rajiv Raj, director of CreditVidya.

It's also a better option since the tenure for these loans is longer than those for personal loans, which offer a maximum term of five years. Of course, you can prepay the loan, with the banks following the same guidelines as those for regular home loans. Though they cannot charge any fee for floating rate loans, there is a 2-4% penalty for fixed rate loans.


How to get a loan against your property

If the property you are taking a loan against has more than one owner, all of them will have to be joint applicants to avail of the loan. You can get a loan against any type of freehold property, from a house to a plot of land. It also doesn't matter whether you live in that house or have given it on rent. "The most important criterion is that the title of the property should be clear and there shouldn't be any encumbrances," says Pankaaj Maalde, head, financial planning at Apnapaisa.com.

The bank will check all the documents related to the title of the property, as well as ask you for proof of residence, such as ration card, electricity bill or telephone bill. You will also have to submit a copy of the proof of identity, such as a voter ID card, passport or PAN card. If you are employed, you will have to provide bank statements for the past six months, while a self-employed person will have to provide a certified financial statement for the past two years.

The loan offered by a bank will vary from person to person since it depends on various factors, including the work profile and age of the borrower. "Typically, the income proof for three years is required to have the loan against a property sanctioned. So, the minimum age is 24 years. Similarly, lenders prefer that the loan be fully repaid while the borrower is employed, which is why the maximum age till loan maturity in case of a salaried person is 60 years, while for self-employed individuals and consultants is 65 years," says Raj.

The bank will also check your credit history through the Credit Information Bureau India Ltd (Cibil) and go through your repayment track record. Based on your credit score and the above documents, the bank will ascertain your repayment capacity. In case you have ever defaulted on any bill payment, it will reduce your chances of getting a loan. After the bank is satisfied with the paperwork, it will offer you the loan, which will typically range from 40-70% of the value of the property.

Is this the best option?
The main reason people usually don't opt to mortgage their house is that they don't want to take the risk of the bank taking over the property if they are unable to pay the dues. Another disadvantage is that there are no tax incentives while paying the EMIs, unlike in the case of home loans. However, this is only in the case of a salaried person. A businessman can claim tax deduction on the entire interest amount paid on the loan if he can prove that the loan was genuinely used to improve his business.

However, this tax advantage is also available if the businessman takes a loan against gold or shares/securities that he owns. The interest rate for a loan against shares or securities, such as the PPF and NSC, varies from 12-15%, while that for gold ranges between 14% and 25%. In the case of the former, a lender will be willing to offer a loan that is 40-60% of the value of the securities, while for a gold loan, you will be able to get 50-70% of the value of the gold you pledge.

In either case, if you default, the bank will sell the pledged shares or gold to recover its dues, which is a smaller loss than losing your home. However, if you need a large amount of money that runs into lakhs, the only viable valuable asset that you may be able to pledge is your house.

CRUDE OIL: PETROL PRICE TAX CALCULATION INDIA

Petrol price tax calculation

2014 and then 2015 has seen International Crude Prices hitting all time Low in Jan 2015. Know Computation of Petrol and Diesel Prices in Chennai India
Last Updated on 1st September 2015

Fuel Price Calculation in 2015

With Fuel Prices now getting changed Frequently, know how is fuel prices computed in India

Calculating Crude Oil Cost - Petrol & Diesel - 2015

If you reading Internationally, the price of crude Oil hovers at 48 Dollar - which is roughly equivalent to Rs. 3000 (keeping the exchange rate around Rs. 65).
On Importing Oil - Barrel Cost + Ocean Freight at 2 Dollar needs to be paid - effectively implying - 50$ per barrel as import cost.
» 1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 3185 / 159 = Rs 20 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi - September 2015

	Petrol	Diesel
International Price of Crude Oil with Ocean Freight (as in Jan 2015)	49$ or Rs 3185 per Barrel	49$ or Rs 3185 per Barrel
1 Barrel of Crude Oil	159 Litre	159 Litre
Crude Oil  - Cost per Litre	Rs 20 per Litre	Rs 20 per Litre
Basic OMC Cost Calculation
Refinery Processing & Transportation Cost	Rs 6 per Litre	Rs 4.6 per Litre
OMC Margin, Transportation, Freight, Landing to Dealers	Rs 3.9 per Litre	Rs 2.1 per Litre
Basic Cost OMC - Pricing Charged to Dealers including Processing, Transportation, Margins etc	Rs 29.9 per Lit	Rs 26.7 per Lit
Calculating Dealer Retail Price - Base Location Delhi
Excise Duty as on 1st September 2015	Rs 17.46 on Petrol	Rs 10.26 on Diesel
Commission to Petrol Pump	Rs 2.27 per Lit	Rs 1.42 per Litr
Fuel Cost Before VAT (rounded off for approximation)	Rs 49 per Lit	Rs 38 per Lit
VAT (Varies from State to State - 25% on Petrol & 16.6% on Diesel with Surcharge)	Rs 12.25 on Petrol	Rs 6.6 on Diesel
Final Retail Price as on 1st September 2015 - approx calculation	Rs 61.25 per Lit	Rs 44.6 per Litre

Had it been ideal world - we would have ended up with Fuel Cost of Rs 30 to 32 per Litre for Petrol and Rs 28 / Litre for Diesel Fuel

Now comes Taxation Scenario on Petrol and Diesel Fuel

» Excise Duty (including Education Cess - as on September 2015) - Rs. 17.46 for Petrol and Rs 10.26 per Litre on Diesel (There has been Multiple Excise Hikes in 2015) - goes to Central Government
For Info - Excise Duty was Rs 9.20 on Petrol and Rs 3.46 on Diesel on 1st November 2014 - which has increased gradually and are now almost 90% higher for Petrol and 200% higher for Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 25% on Petrol, 16.6% on Diesel) - Rs. 10 on Petrol, Rs 5 for Diesel - goes to State Government. VAT also increased in Delhi by Aam Aadmi Party
Disclaimer :- Approximate Closest Figures Used, Fuel Price Calculation done in Delhi

Why sovereign gold bonds will likely get a good response from investors

The second tranche of sovereign gold bonds, whose sale began on Monday, is likely to draw good response from investors, as they are priced below market rates for the metal and sharemarket turmoil spurs investors to diversify holdings.

India plans to sell 150 billion rupees ($2.22 billion) in gold bonds in the fiscal year ending on March 31, as it seeks to wean investors off physical gold and contain the outflow of foreign exchange spent on imports.

The price of gold has risen 4 per cent so far in 2016, while India's benchmark has fallen nearly 7 per cent.

"Given the correction in the stock market, interest is shifting in favour of gold," said Harish Galipelli, head of commodities and currencies at Inditrade Derivatives and Commodities.
"Investors are looking for safe-haven assets. This tranche will receive better response than the first tranche."

The Reserve Bank of India has fixed the issue price of the bonds, wich will be sold until Friday, at 26,000 rupees per 10 grams, below the current market rate of nearly 26,050 rupees.
The bonds, linked to the price of bullion, carry an annual interest of 2.75 per cent and allow consumers to invest in 'paper' gold rather than physical gold.

The first tranche debuted last November to lukewarm response, as it was priced nearly 5 per cent above the market. At the time, the stock market also promised better returns, with the price of gold falling in anticipation of a US rate hike.

"Given that currently risk appetite is weak and bank interest rates are also falling, demand for gold bonds in the second tranche might be better," said Siddhartha Sanyal, an India economist at Barclays.

A cut in policy rates by the Reserve Bank of India and robust growth in bank deposits, compared with credit in the last year, have prompted banks to cut deposit rates by more than 100 basis points.

"However, it is a gradual process of publicity and it will take some time for the product to become popular," Sanyal added.

The gold bonds are among measures India has adopted to damp ravenous appetite for gold imports, after a currency crisis in 2013 proved to be the country's worst since 1990.
The rupee currency hit a record low in 2013 and the current account deficit stood at an all-time high of 4.8 per cent of GDP, led by gold imports of more than $39 billion.
That compares with the 2014 figure of $31 billion and a 2015 figure of $35 billion.

Sovereign Gold Bonds in India for Investors - Chennai

The government on Monday launched the second tranche of sovereign gold bonds for sale/subscription. The issue will remain open till January 22. The bonds will be issued to the applicants on February 8, 2016.

This time the Reserve Bank of India has fixed the issue price at Rs 2,600 per gram. The issue price of these bonds is calculated by averaging the previous week's closing price of gold of 999 purity. The first issue was priced at Rs 2,684 per unit.

These bonds offer an interest of 2.75 per cent per annum on the initial value of investment. Under the scheme, one can buy a minimum 2 units (1 unit equals to 1 gram of gold) while the maximum investment can go up to 500 grams.

Gold bond schemes provide an alternative investment option to physical gold and offer an additional interest unlike other schemes such as gold exchange traded funds (ETFs).

"It is definitely one of the options to consider for part of your investment in gold, because of the additional interest it offers... There are concerns about liquidity. ETFs are highly liquid compared to these bonds. Also, if the price of gold goes up the percentage yield will go down as it is offered on the initial value of investments and not on the prevailing price of gold," says Anil Rego, CEO of Right Horizons, a wealth management firm.

These bonds have a maturity of 8 years with an exit option from fifth year. One can redeem the bond on the prevailing market price in multiples of one gram. These bonds have to be listed on the exchange therefore one can also exit before maturity by selling them in secondary market provided the liquidity is there.

Chirag Mehta, senior fund manager, alternative investments, Quantum Mutual Fund says "People invest in gold as lender of last resort, so if one is not bothered about the liquidity and is ok with the interest rate offered then one can look at investing in these bonds."

The interest earned on these bonds will be taxable as per the slab of the individual and capital gains arising (if one exits through exchange) will be taxed as per the tax slab before 3 years and at the rate of 20 per cent post indexation after 3 years.

One can apply for these sovereign gold bonds at post offices, banks and Stock Holding Corporation of India.

The first gold bond issue received 63,000 applications for 917 kg amounting to Rs 246 crore.

Startup India - Action plan - Tax Benefits for New

PM Narendra Modi concluded what was perhaps the largest startup conference for entrepreneurs in India with his action plan, which included new policies and initiatives that would make it easier for for investors and startup founders to incubate their ventures in the country. Many startup founders had expressed their wishes in the run up to the event, and would find many potential game changers in the new policies announced in the action plan. Here's what changed for India's startup ecosystem on Saturday.

1) A Rs. 10,000 crore fund for startups
The government will set up a fund with an initial corpus of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore over a period of four years, which will be be managed by a board with private professionals drawn from industry bodies, academia, and successful startups. The fund will participate in the capital of SEBI registered venture funds, and invest in sectors such as manufacturing, agriculture, health, and education.

2) A single point of registration for startups
The government will launch a mobile app and a portal on April 1, which will enable startups to register their company in a day. The portal will also serve as a single point of contact for clearances, approvals and registrations, and for companies to apply for schemes under the Startup India Action Plan.

3) A simplified regulatory regime based on self-certification
To reduce the regulatory burden for startups, the government will allow startups to self-certify compliance on nine labour and environment laws through the startup mobile app. No inspections will be conducted in case of the labour laws for a period of three years.

4) A fast-track mechanism filing patent applications
Launched on a pilot basis for a year, the Central Government shall bear the cost of patents, trademarks and designs for a startup, with an 80 percent rebate to encourage the creation and protection of its intellectual property.

5) A credit guarantee fund for startups
A credit guarantee mechanism willl help startups raise debt funding through the formal banking system through National Credit Guarantee Trust Company (NCGTC)/SIDBI, which has an annual corpus of Rs. 500 crore for the next four years.

6) Tax exemption for three years, and capital gains
Aimed at facilitating growth and help retain capital, startups will be exempted from income-tax for a period of three years. However, the exemption shall be available subject to non-distribution of dividend by the startup. To augment the funds available to various VCs and alternative investment funds, capital gains invested in SEBI registered venture funds will be exempt from tax as well.

7) A Startup India Hub for collaboration
The Startup India Hub will serve as a single point of contact for startup ecosystem players, and will function in a hub and spoke model with central and state governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions. The hub will assist startups in obtaining financing, and organise mentorship programs to encourage knowledge exchange.

8) Relaxed norms of public-procurement
The Central Government, State Government and PSUs will exempt startups in the manufacturing sector from the criteria of "prior experience/ turnover" as long as they have their own manufacturing facility in India, and have the requisite capabilities and are able to fulfill the project requirements.

9) Faster exits for startups
Startups may be wound up within a period of 90 days from making of an application for winding up on a fast track basis, as per the recently tabled Insolvency and Bankruptcy Bill 2015, which has provisions for voluntary closure of businesses. This process will respect the concept of limited liability.

10) Atal Innovation Mission to encourage entrepreneurship and innovation
The Atal Innovation Mission will establish sector specific incubators and 500 'Tinkering Labs' to promote entrepreneurship, provide pre-incubation training and a seed fund for high-growth startups. Three innovation awards will be given per state and union territory, along with three national awards, as well as a Grand Innovation Challenge Award for finding ultra-low cost solutions for India.

11) Innovation focused programs for students
An innovation core program targeted at school kids aims to source 10 lakh innovations from five lakh schools, out of which the the best 100 would be shortlisted and showcased at an Annual Festival of Innovations, to be held in Rashtrapati Bhavan. A Grand Challenge program called NIDHI (National Initiative for Developing and Harnessing Innovations) shall be instituted through Innovation and Entrepreneurship Development Centres (IEDCs) to support and award INR 10 lakhs to 20 student innovations. Uchhattar Avishkar Yojana, a joint MHRD-DST scheme has earmarked Rs. 250 crore annually to foster "very high quality" research amongst IIT students.

12) An annual incubator grand challenge
The government will identify and select ten incubators, evaluated on pre-defined Key Performance Indicators (KPIs) as having the the potential to become world class, and give them Rs.10 crore each as financial assistance to ramp up their infrastructure.

Startup India Action Plan

PM Narendra Modi concluded what was perhaps the largest startup conference for entrepreneurs in India with his action plan, which included new policies and initiatives that would make it easier for for investors and startup founders to incubate their ventures in the country. Many startup founders had expressed their wishes in the run up to the event, and would find many potential game changers in the new policies announced in the action plan. Here's what changed for India's startup ecosystem on Saturday.

1) A Rs. 10,000 crore fund for startups
The government will set up a fund with an initial corpus of Rs. 2,500 crore and a total corpus of Rs. 10,000 crore over a period of four years, which will be be managed by a board with private professionals drawn from industry bodies, academia, and successful startups. The fund will participate in the capital of SEBI registered venture funds, and invest in sectors such as manufacturing, agriculture, health, and education.

2) A single point of registration for startups
The government will launch a mobile app and a portal on April 1, which will enable startups to register their company in a day. The portal will also serve as a single point of contact for clearances, approvals and registrations, and for companies to apply for schemes under the Startup India Action Plan.

3) A simplified regulatory regime based on self-certification
To reduce the regulatory burden for startups, the government will allow startups to self-certify compliance on nine labour and environment laws through the startup mobile app. No inspections will be conducted in case of the labour laws for a period of three years.

4) A fast-track mechanism filing patent applications
Launched on a pilot basis for a year, the Central Government shall bear the cost of patents, trademarks and designs for a startup, with an 80 percent rebate to encourage the creation and protection of its intellectual property.

5) A credit guarantee fund for startups
A credit guarantee mechanism willl help startups raise debt funding through the formal banking system through National Credit Guarantee Trust Company (NCGTC)/SIDBI, which has an annual corpus of Rs. 500 crore for the next four years.

6) Tax exemption for three years, and capital gains
Aimed at facilitating growth and help retain capital, startups will be exempted from income-tax for a period of three years. However, the exemption shall be available subject to non-distribution of dividend by the startup. To augment the funds available to various VCs and alternative investment funds, capital gains invested in SEBI registered venture funds will be exempt from tax as well.

7) A Startup India Hub for collaboration
The Startup India Hub will serve as a single point of contact for startup ecosystem players, and will function in a hub and spoke model with central and state governments, Indian and foreign VCs, angel networks, banks, incubators, legal partners, consultants, universities and R&D institutions. The hub will assist startups in obtaining financing, and organise mentorship programs to encourage knowledge exchange.

8) Relaxed norms of public-procurement
The Central Government, State Government and PSUs will exempt startups in the manufacturing sector from the criteria of "prior experience/ turnover" as long as they have their own manufacturing facility in India, and have the requisite capabilities and are able to fulfill the project requirements.

9) Faster exits for startups
Startups may be wound up within a period of 90 days from making of an application for winding up on a fast track basis, as per the recently tabled Insolvency and Bankruptcy Bill 2015, which has provisions for voluntary closure of businesses. This process will respect the concept of limited liability.

10) Atal Innovation Mission to encourage entrepreneurship and innovation
The Atal Innovation Mission will establish sector specific incubators and 500 'Tinkering Labs' to promote entrepreneurship, provide pre-incubation training and a seed fund for high-growth startups. Three innovation awards will be given per state and union territory, along with three national awards, as well as a Grand Innovation Challenge Award for finding ultra-low cost solutions for India.

11) Innovation focused programs for students
An innovation core program targeted at school kids aims to source 10 lakh innovations from five lakh schools, out of which the the best 100 would be shortlisted and showcased at an Annual Festival of Innovations, to be held in Rashtrapati Bhavan. A Grand Challenge program called NIDHI (National Initiative for Developing and Harnessing Innovations) shall be instituted through Innovation and Entrepreneurship Development Centres (IEDCs) to support and award INR 10 lakhs to 20 student innovations. Uchhattar Avishkar Yojana, a joint MHRD-DST scheme has earmarked Rs. 250 crore annually to foster "very high quality" research amongst IIT students.

12) An annual incubator grand challenge
The government will identify and select ten incubators, evaluated on pre-defined Key Performance Indicators (KPIs) as having the the potential to become world class, and give them Rs.10 crore each as financial assistance to ramp up their infrastructure.

Netflix in India

Netflix, a popular video streaming service in US, is now available for a one-month trial and then you will have to pay  Rs 500 for a basic package. This article covers What is Netflix, Prices of Netflix in India, How to use Netflix, Does Netflix in India has all the US content, Is there Indian content on Netflix, about Netflix broadband and Data,How does Netflix compare to Cable and DTH like Tata Sky,Competition of Netflix in India.

What is Netflix?

Netflix is the world’s top video streaming service that allows users to watch content on screens ranging from a smartphones to a smart television. It works with a variety of other devices like PlayStation and Apple TV, letting users stream directly onto larger screen. Netflix is also the creator of a lot of original, made for the web content, much of which is now in high-resolution Ultra HD. Netflix launched its services in India and 129 other countries on 6 Jan 2016. With the launch, the popular TV and movie streaming service now covers most of the world except for China. Netflix and other video streaming services are technically called over-the-top (OTT) entity.

Prices of Netflix  in India

• Rs. 500 per month for access on 1 Single Device(SD) screen.
• For Rs. 650 per month you can watch HD content on 2 screens at a time, and
• Rs. 800 per month will get you 4K content on up to 4 screens simultaneously.

You can signup for Netflix via its website or the Netflix apps on , Android, iOS, Windows, and other platforms.

Users can pay using PayPal and credit card only at the moment,  unless you are make a purchase via iOS or Android and the store already has your card details.

The first month is free for all users. An initial fee of Rs 70 ($1) is charged during signup to authenticate the card. You have the liberty to cancel subscription anytime within one month and will also send a reminder two days before the free trial expires before it decides to debit the subscription fee.

The India pricing is virtually identical to that in the US, where Netflix’s Internet video streaming subscription rates range from $7.99 (Rs. 530 approximately) per month for 1 SD screen to $11.99 (approximately Rs. 800 per month approximately) a month for 4 HD screens, including a free one-month trial.

Why has Netflix come to India?

Slowing growth in the United States has put pressure on Netflix to grow internationally. India, with over 300 million Internet users and a potential 1.2 billion plus that could come online in the next few years , is being seen as its next big growth market. Before 6 Jan 2016 announcement, Netflix was available in North and South America, Australia, New Zealand, Japan, and parts of Europe. On Jan 6 2016, Netflix launched its services 130 other countries including India, so now it covers most of the world except for China.

How to use Netflix ?

You can signup for Netflix via its website or the Netflix apps on , Android, iOS, Windows, and other platforms

Petrol price tax calculation

2014 and then 2015 has seen International Crude Prices hitting all time Low in Jan 2015. Know Computation of Petrol and Diesel Prices in Chennai India
Last Updated on 1st September 2015

Fuel Price Calculation in 2015

With Fuel Prices now getting changed Frequently, know how is fuel prices computed in India

Calculating Crude Oil Cost - Petrol & Diesel - 2015

If you reading Internationally, the price of crude Oil hovers at 48 Dollar - which is roughly equivalent to Rs. 3000 (keeping the exchange rate around Rs. 65).
On Importing Oil - Barrel Cost + Ocean Freight at 2 Dollar needs to be paid - effectively implying - 50$ per barrel as import cost.
» 1 barrel of crude Oil is Equivalent to around 159 Litres of Crude Oil
» Raw Crude Oil in Indian Currency: Rs. 3185 / 159 = Rs 20 per Litre approx
Simplified Calculation Chart for Petrol & Diesel Prices in New Delhi - September 2015

	Petrol	Diesel
International Price of Crude Oil with Ocean Freight (as in Jan 2015)	49$ or Rs 3185 per Barrel	49$ or Rs 3185 per Barrel
1 Barrel of Crude Oil	159 Litre	159 Litre
Crude Oil  - Cost per Litre	Rs 20 per Litre	Rs 20 per Litre
Basic OMC Cost Calculation
Refinery Processing & Transportation Cost	Rs 6 per Litre	Rs 4.6 per Litre
OMC Margin, Transportation, Freight, Landing to Dealers	Rs 3.9 per Litre	Rs 2.1 per Litre
Basic Cost OMC - Pricing Charged to Dealers including Processing, Transportation, Margins etc	Rs 29.9 per Lit	Rs 26.7 per Lit
Calculating Dealer Retail Price - Base Location Delhi
Excise Duty as on 1st September 2015	Rs 17.46 on Petrol	Rs 10.26 on Diesel
Commission to Petrol Pump	Rs 2.27 per Lit	Rs 1.42 per Litr
Fuel Cost Before VAT (rounded off for approximation)	Rs 49 per Lit	Rs 38 per Lit
VAT (Varies from State to State - 25% on Petrol & 16.6% on Diesel with Surcharge)	Rs 12.25 on Petrol	Rs 6.6 on Diesel
Final Retail Price as on 1st September 2015 - approx calculation	Rs 61.25 per Lit	Rs 44.6 per Litre

Had it been ideal world - we would have ended up with Fuel Cost of Rs 30 to 32 per Litre for Petrol and Rs 28 / Litre for Diesel Fuel

Now comes Taxation Scenario on Petrol and Diesel Fuel

» Excise Duty (including Education Cess - as on September 2015) - Rs. 17.46 for Petrol and Rs 10.26 per Litre on Diesel (There has been Multiple Excise Hikes in 2015) - goes to Central Government
For Info - Excise Duty was Rs 9.20 on Petrol and Rs 3.46 on Diesel on 1st November 2014 - which has increased gradually and are now almost 90% higher for Petrol and 200% higher for Diesel
» VAT on Gross Price (on Price + Excise Duty) * (@ 25% on Petrol, 16.6% on Diesel) - Rs. 10 on Petrol, Rs 5 for Diesel - goes to State Government. VAT also increased in Delhi by Aam Aadmi Party
Disclaimer :- Approximate Closest Figures Used, Fuel Price Calculation done in Delhi

Reason for crude oil price drop

As oil prices continue to fall, analysts and producers are trying to wrap their heads around the reasons and identify a floor price. Even though crude benchmarks like Brent and WTI keep dropping, the cost of finding oil continues to rise. What are some of the key drivers that have created this paradox?
1. The U.S. Oil Boom
America’s oil boom is well documented. Shale oil production has grown by roughly 4 million barrels per day (mbpd) since 2008. Imports from OPEC have been cut in half and for the first time in 30 years, the U.S. has stopped importing crude from Nigeria.

2. Libya is Back
Because of internal strife, analysts have until recently assumed that Libya’s output would hover around 150,000-250,000 thousand barrels per day. It turns out that Libya has sorted out their disruptions much quicker than anticipated, producing 810,000 barrels per day in September. Libyan officials told the Wall Street Journal last week that they expect to produce a million barrels per day by the end of the month and 1.2 million barrels a day by early next year.

3. OPEC Infighting
There have been numerous reports about the discord between OPEC members, leading many to believe that OPEC will not be able to reign in production like it has done so in the past. The Saudis and Kuwaitis have reportedly been in an oil price war, repeatedly lowering their prices in order to maintain their market share in Asia. John Kingston, the news director at Platts, believes that the Saudis will not be willing to give up market share like they have done during previous price drops.

The current market turmoil has created a once in a generation opportunity for savvy energy investors.
Whilst the mainstream media prints scare stories of oil prices falling through the floor smart investors are setting up their next winning oil plays.

Click here for more info on successful oil investing

4. Negative European Economic Outlook
European Central Bank president Mario Draghi has left investors concerned about the continent’s slow growth. Germany’s exports were down 5.8 percent in August, stoking the fears of anxious investors that the EU’s largest economy had double dipped into recession last quarter. Across the Eurozone, the IMF again lowered its growth forecast to 0.8 percent in 2014 and 1.3 percent in 2015.

5. Tepid Asian Demand
Beyond slow economic growth and currency depreciation, a number of Asian countries have begun cutting energy subsidies, resulting in higher fuel costs despite a drop in global oil prices. In 2012, Asia’s top spenders on energy subsidies, as a percentage of GDP included: Indonesia 3 percent; Thailand 2.6 percent; Vietnam 2.5 percent, Malaysia 2.3 percent, and India 2.3 percent. India is a primary example. Between 2008-2012, India’s diesel demand grew between 6 percent and 11 percent annually. In January 2013, the country started cutting the subsidies of diesel. Since then, diesel consumption has plateaued.

Right time to buy gold

Cheers gold buyers!!!!!

December 2015 and January 2016 is right time and right month to invest in gold since US Federal has lift the interest rates. Please ready the report below

Gold futures fell under $1,070 an ounce in electronic trading Wednesday, losing ground following an earlier close higher, after the U.S. Federal Reserve announced its first interest-rate increase in more than nine years.
The Federal Open Market Committee, led by Fed Chairwoman Janet Yellen, raised its fed-funds rate to a range of 0.25% to 0.5%, ending an unprecedented seven-year run of near-zero interest rates. The decision came shortly after the price settlement for gold.
See the live blog and video of the Fed interest rate decision and Janet Yellen news conference
In anticipation of the Fed lifting rates, February gold GCG6, +0.37% jumped $15.20, or 1.4%, to settle at $1,076.80 an ounce. Prices then slipped to $1,067.30 in electronic trading shortly after the announcement.
Gold settled before the Fed ‘s decision was released Wednesday at 2 p.m. Eastern.
“This is, without any doubt, the most dovish rate hike in the history,” Naeem Aslam, chief market analyst at AvaTrade, said in emailed comments. “The word ‘gradual’ is going to be most beaten word on the street now, given that the Fed has used this word twice in their statement.”

‘This is, without any doubt, the most dovish rate hike in the history.’

Naeem Aslam, AvaTrade

“The statement and their strategy has confirmed that they are committed to keep their balance sheet at this size and they are staying very accommodative,” he said. “However, as we say it is about clearing the noise, if we get a few hawkish [U.S. nonfarm payroll readings] and inflation picks up, the picture will change very quickly.”
Traditionally, higher rates can make precious metals that don’t bear interest less attractive to own for investors. It also boosts the dollar DXY, -0.07% making dollar-linked assets more expensive to those purchasing those assets using other monetary units.
Read: When the Fed hikes interest rates, these assets do surprisingly well
Anticipation of the rate hike had battered gold amid a slump in crude-oil prices CLF6, -0.37%  that also has diminished the appeal of the metal as an inflation hedge. Some investors have expressed concern that exchange-traded funds, a big buyer of gold assets, were liquidating their holdings in the face of the rate hike, but UBS analyst Joni Teves said that those concerns may be unfounded.
“We expect gold ETFs to be more resilient this time around,” Teves wrote in a Wednesday research note, before the Fed decision.
“That holdings are more geographically diversified also suggests that ETFs outside the U.S. are likely to be more resilient amid monetary policy easing elsewhere and broader macro risks. While some more fine-tuning may still be in store, we expect this to be limited,” Teves wrote.
The SPDR Gold Trust GLD, -2.19%  was up 1% in Wednesday trading.
Meanwhile, ahead of the Fed news, March silver SIH6, +0.34%  jumped by 47.8 cents, or 3.5%, to end at $14.248 an ounce and March copper HGH6, +0.02%  tacked on 1.5 cents, or 0.7%, to $2.072 a pound. January platinum PLF6, -0.13%  added $20.20, or 2.4%, to $876 an ounce and March palladium PAH6, -0.63%  rose $5, or 0.9%, to $571.95 an ounce.

So hurry donot wait to invest in gold

Reason for gold price drop chennai

Here are 7 reasons why gold prices are falling across the world:

1. Curb on gold import

Tough measures taken by both the government and the RBI to curb gold import amid slowing investment demand against the backdrop of a strong rally in equities, which is emerging as a preferred investment asset class, are taking some sheen out of the yellow metal.

2. Higher domestic gold inventories

India was the top consumer of the metal in 2014 and the second biggest after China in the first quarter of this year.
Higher domestic gold inventories is also having an impact on price movements of the yellow metal, a bullion trader said.

3. Concerns over monsoon

Demand for gold in India is also sluggish as concerns over a weak monsoon still remain.

Farmers are key to the country's bullion demand.

Nearly two-thirds of India's gold demand comes from rural areas where jewellery is a traditional store of wealth for millions who have no access to the formal banking system.

4. Massive selling in China

China on Monday dumped a huge amount of gold on the market, causing the price of the precious metal to fall drastically.

Reports that China gold reserves were half the expected level added additional selling pressure on gold.

According to reports, some 33 tonnes were sold in the Shanghai spot market on Monday as investors sought to shift focus to other avenues. 

5. Stronger US dollar

A stronger greenback makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to dent demand and, in turn, pull prices lower.

In wider markets, the dollar hit a three-month high against a basket of currencies, making dollar-priced gold more expensive for holders of other currencies.

"The current downswing in Indian gold prices is directly related to the strengthening of the US dollar in recent times. We are hoping that the present trend may be arrested soon and the prices could stabilize within a month or so," said Mumbai Jewellers' Federation president Rakesh Shetty.

6. Worry over US Fed rate hikes

Gold has breached key support levels as the dollar gained after Federal Reserve Chair Janet Yellen told Congress last week that the Fed is on course to raise interest rates if the US economy expands as expected.

A rise in US interest rates will attract investors to the dollar for higher returns, driving up its value.

Chennai real estate crash

Following heavy floods in the low lying areas of Velachery and Tambaram, realtors expect a crash in prices in this fast growing region of the city.
Regretting their decision of investing in  land or properties in this area, residents said they wouldn’t suggest anyone to buy houses, flats or plots there.
“I had invested all that I had earned for the past 20 years and I am extremely distressed to see the flat engulfed in water,” said Ramesh who had recently brought a 2 BHK for `60 lakhs in Ram Nagar, Velachery. He is ready to dispose it off at the earliest and relocate to some safe place on the East Coast Road to avoid facing the crisis next year.
C Sadish, working in a leading IT firm in MEPZ Tambaram, was aspiring to buy a home in Tambaram. “Looking at houses getting completely submerged in water during the floods in television news channels, I dropped the idea and am planning to buy a piece of land in Thiruvanmiyur or Adyar and construct a house which can withstand rains in the coming years”, he said.
President of Chennai Real Estate Agents Association, Amit Damodar Chugh admitted the rains would certainly have an impact on the minds of buyers or tenants.
“While some were unable to open the doors, some were stranded for hours before being rescued. Many who have purchased houses by spending a fortune are searching for temporary accommodations. The mental agony that people have endured will affect the real estate prices in Velachery, Tambaram and Mudichur,” he added.
S Aarthi, of Medavakkam, said “I would not suggest any one to move in here, not even my enemies.”
On the other hand, developers feel that the prices of land and apartments in these areas would not be affected in the long run. Citing the Tsunami that struck the coast of Chennai in 2005, when real estate prices in ECR dipped drastically, they said it took little time for that to sky rocket. For, public memory is short, said Confederation of Real Estate Developers’ Associations of India Chennai president Ajith Chordia. He told Express that the demand for land is more and hence prices of real estate in these areas would not come down.
“The focus now would be to ask the Public Works Department to come out with a 100 year flood line data to fix the average mean sea level for plinth,” he added.

Chennai floods real estate

It's still too early to count the losses from the unprecedented floods and torrential rains in Chennai that have impacted people from all walks of life, but one of the worst hit businesses clearly is real estate.

Besides wastage of hundreds of tonnes of building materials such as cement and sand at construction sites and losses due to inordinate project delays, developers are also staring at the possibility of losing their recent sales momentum.

According to real estate consultancy Jones Lang LaSalle India, the Chennai property market was demonstrating renewed interest from homebuyers who were fence sitting for over a year since September, but rains have now affected it. "Home buyers are postponing their decisions until the rain and flood situation subsides," said Sanjay Chugh, national mandated sales head and Chennai business head of JLL Residential. Chennai has been pounded by relentless north-east monsoon rains in the past few weeks, which has severely damaged the city's infrastructure, including roads and electricity lines. The Tamil Nadu government has estimated losses at nearly Rs 8,481 crore. Several have died. Developers have stopped construction work for around 2-3 weeks now and many of them will also have to work on base structures and foundations because of waterlogging.

"The losses are huge but people will have to cope with it. It will lead to lot of stress and will take time to come back," said Irfan Razack, chairman of Confederation of Real Estate Developers Associations of India (CREDAI), which has around 500 registered builders in Chennai alone. Some of the large national builders that have significant presence in Chennai include Prestige Group, Tata Housing, Shriram Properties, Godrej Properties and Sare Homes. An average of 5,000 homes were being sold in Chennai every quarter in 2015 before the rains. According to realty research firm Liases Foras, residential sales in Chennai jumped 90%, highest across India, in the second quarter of the financial year at 7.4 million sqft.

Experts attributed the improved buying sentiment to reduced new launches, interest rate reduction and rational pricing, coupled with attractive offers from developers. But now, developers that had lined up offers in anticipation of a healthy sales cycle say waterlogging and inundation of many localities such as Tambaram, Urapakkam, Mudichur, Perumbakkam, Saidapet, Siruseri, Keelakatalai, Pallaikarana and Velacherry have impacted demand.

Two large under-construction projects of Sare Homes are impacted. "At the moment we can see that water has entered the lift wells in the completed parts of the projects and could have damaged the machinery. Construction material has also been impacted and so have the water and sewage treatment plants," said Vineet Relia, managing director at the Gurgaon-based firm. "Some of our engineers and staff were stuck in the city but a few of them have managed to move to Bengaluru," he added. Murali M, managing director at Shriram Properties, said projects are expected to get delayed by 6-12 months.

"There is huge losses of building materials, it will take over a year for builders to come out of financial damages," he said. Shriram is developing one million sqft of commercial projects and 5.5 million sqft of residential projects in the city.

Selecting builder for buying apartment

The idea of buying a flat can be an interesting prospect but you will soon realize that it is not all fun and that you have quite a lot of homework to do. Some look out for flats that fit within their budget while some are all set to dig deep to get a flat in their preferred locality. Where ever you start, you need to eventually end up looking for the builder’s reputation; except those who start right there. Let me admit that I did not but as it was to happen later, I finally made the right call.

Why Is Builder Selection Important?

Selecting the builder is the most basic and most important step on your road to purchasing a new flat. It is not just the quality of the construction alone that is associated with the choice of builder; it is also a major financial decision as the choice can enhance your investment or ruin it.

Selecting the right builder ensures quality of construction, good return on investment, safe and comfortable environment to live in and hence has a lasting impact on your finances and your life. The builder should possess the knowledge and expertise to deliver. Did I miss mentioning one more important factor? If you want to have a pleasant buying experience, you need to choose the builder who has a great professional approach and makes you feel comfortable dealing with him throughout.

Selecting The Right Builder

As I said, this is where you need to start and this is exactly where I did not. Our family was on a tight budget and hence my mind was all set to look for a flat that fit my budget, of course in the locality of our choice. As I browsed and made calls, just too many so that the mobile top-up agent started beaming every time I walked in to her store, I was left to deal with loads of information on area, topography, landmarks, square feet, brokerage, loans ( the word I just adore), bank interest rates for home loans and almost every term associated with real estate. And I just got what I had to know.

After a number of conversations over phone, meetings with builders and going through online advertisements, I was gradually led towards looking for builder’s reputation. That was when, I should say that I really, really started on the basics on how to buy a flat in Chennai. Here are some suggestions on how to select the builder for your flat.

Ask Around

Talk to your friends and family members to learn about the established builders in the locality of your choice. Those who reside in the area will be able to give you an idea about the builder’s reputation and you may also be able to obtain feedback from those who have purchased flats from the builder.

Do Some Research

Thanks to online platforms, you are just a few keys away from a lot of information on builders in your area. Get a list of builders who are well established in the area and do some analysis on their working style. Some builders specialize in constructing flats while some build independent homes. Some cater to the needs of middle class while some target the affluent section of the society and some blend both. Once you have the ground details, you can short list them based on your needs.

Experience Matters

It is true that every established builder was once a new builder as in every other profession but experience has to be taken into account unless you are extremely satisfied with the credentials of a builder. It is no good to cast away a new firm and it is equally bad to take for granted a builder who has been around for a while. Consider experience as a top priority but discussing with the builder, old or new, is essential before you enter into a contract.

Visit Finished Flats

Visiting flats that were constructed by the builder will give you an idea on the level of standard maintained by the firm. It will also help you to analyze how the builder has maximized the available square feet to provide more living space for you. A builder who pays attention to detail and who has the attitude to view things from buyers’ perspective will place comfort above everything.

If you are curious to know if I visited finished flats before booking mine, well, I did not. Our family was thoroughly impressed by the external appearance of the flats that we happened to see and let me also tell you that we did not just go by the external appearance. We were impressed by their choice of words in their online advertisements, which was a clear reflection of their commitment to their task and once we contacted, we were bowled over by their highly professional approach, which was a clear indication of how well they treated their clients. We did visit their finished flats but it was after we entered into a contract and our visit confirmed our judgment. And most importantly, the builder was referred to us by one of our friends. So, you see, I am not saying something I did not do – almost.

Discuss Before Deciding

Once you have identified the builder for your dream home, fix up an appointment to meet him. To make the interview session productive, it is highly recommended to speak up frankly about your budget and your expectations. It is also the right time to ask the builder if he would be open to suggestions regarding changes in designs to address the needs of your family.

Buying a flat, as you well know, is not an easy task. However, if you choose the right builder, purchasing a flat may be much easier than you ever imagined.