SEZ - Success story, interrupted
Special Economic Zones or its more popular acronym SEZ was conceived off the foreign policy initiatives of 1999, aimed at providing impetus to the export industry. This started gaining ground due to its various fiscal and non-fiscal exemptions covering sectors like real estate, manufacturing units and servicing facilities.
A SEZ is considered as a country within a country as domestic supplies to SEZ are considered as "exports" and the reverse movement of supply is termed as "imports" to the country.
A state of limbo
Many real estate agents have invested heavily in the SEZs to avail of tax discounts in the non-processing areas. SEZs are an answer to the growing demand for cheap commercial property in India. Its concessions had made it a tax haven for the builders and investors boosting the sector of real estate India , improving the infrastructure and garnering huge investments from big players.
Entrepreneurs are given 100 percent income tax exemption and no MAT (Minimum Alternat Tax) was to be given. Even the Dividend distribution clause is not applicable in SEZs.
But all that is now going to change after the state governments have expressed their desire to levy stamp duty on all non-processing areas in SEZs. A concrete decision is yet to come on that but heated debates are doing the rounds all over the country.
The new rule if implemented would mean that the real estate agents would have to shell out 8% to 12% stamp duty on each office space. This is going to seriously hamper the intention of introducing SEZ according to the pro-SEZ group. They debate that exemptions were the only magnet that brought builders to these zones and if they are not provided this, the builders would refrain from investing in commercial properties in India. The non-processing areas contain the social infrastructure such as residential properties, hospitals, educational institutes, shopping malls and public parks.
The government on the other hand is keen to implement the new rule as they are worried about the loss incurred on the exchequer and the additional burden on the already tight state resources due to exemptions to SEZs. They opine that since the non-processing areas do not contribute to the activity for which the zone was set up, they should not be given any tax exemption.
Such a dilemma and uncertainty is affecting major investment plans in India as these projects (Mega real estate projects by Reliance Industries in Navi Mumbai, Jam Nagar, and Ghaziabad) are getting held-up till such a time.
To solve this potential deadlock certain amendments are required to be made. If acceptable, instead of 100 percent income tax exemption to developers, one can impose tax after a certain period of time. Further, instead of totally exempting SEZs from paying service tax, they could either be reduced or imposed after a period of time. The now exempted dividend distribution tax could be given similar treatment.
As the whole political and social fraternities of the Center and individual States are engulfed in debate over this now burning issue, a speedy resolution is much eagerly awaited by the entire real estate community along with the end user.
Michaelle Sui is an associated editor to the website http://www.indianground.com. Indianground is dedicated to explain all your related queries for real estate India and India properties, with the latest news updates. Your feedback and comments will be highly appreciated at “michaellesui@gmail.com”.
Business in China #3 - Finding Accommodation In Beijing
For whatever reason you have decided to set up home in China – your own personal choice or being posted by your host organization for business – here are a few guidelines that may be helpful to make the transition as smooth as possible. The suggestions below are relevant to those who are looking at renting an apartment rather than purchasing.
Finding an agent
If you don’t have any personal referrals from friends or colleagues, the best bet is to take some of the free magazine publications available at bars and hotels. These are English magazines with all sorts of handy details on housing and social life (restaurants, bars, events etc.).
Some of the most popular editions are: Time Out Beijing (monthly), That’s Beijing (monthly), City Weekend (bi-weekly) – all of them are also available online.
Agencies usually charge a fee, which is settled with the landlord. Do not pay anything to the agency in advance since most likely you will never be able to find the person again. Domestic agencies will accept your request only if you are looking at apartments of $120 (per month) and more, foreign agencies cater for rentals of $500 and above.
Good agencies will be able to provide you with information on the benefits and drawbacks of the area and building complex. They will also show a lot of patience understanding your needs and eventually provide you with a substantial choice of apartments suitable for you.
Rental is usually paid 3 months ahead to the landlord and contracts signed for up to 1 year. Landlords may be reluctant to sign a short-term contract. After you have found accommodation that suits you, make sure that you are registered at the local office of the Public Security Bureau (PSB – pai chu suo). The process of registration is quick and free. If you fail to do so you will be fined up to RMB 500/day ($65) and you will not be able to renew your visa.
Working to a budget
These suggestions are just for your reference. There are many more options than those listed below, this is only to give you an idea of what kind of housing you may be looking at according to your budget.
$120 - $250 per month
You will be looking at areas that are outside of central Beijing, Chinese housing, dirty buildings and elevator service that stops at midnight (to name but a few). Some other inconveniences that may follow are: not being accepted by the neighborhood (there is an assumption that all foreigners have lots of money and that they shouldn’t be in cheap housing), inconvenient traffic, poor access to foreign food – market etc.). However, you will be immediately immersed in the Chinese lifestyle, and so will quickly gain insight into the local community and Chinese culture.
$250 - $400 per month
Some suggestions on areas you may be looking at
Maizidian
Situated behind the Great Wall Sheraton Hotel – quite a central location, this apartment complex has long been the first choice with foreigners for accessible and convenient low budget accommodation. There are many different apartments you can find, even some duplex at as low as $250/month.
Wang Jing Xin Cheng
Closer to the airport, you can find 3 bedroom apartments with great facilities. Traffic to the city center can be a nightmare though.
Dongzhemen Wai
Old apartments, very central but may be a bit dirty for those interested in better living conditions.
$500 - $1000 per month
Apartments for this price give you the greatest flexibility in choosing the location. Be specific in your demands and agents will be happy to show you around. Traffic in Beijing is a real nightmare so find something close to your work, or if you plan to work at home, look at conveniences such as night life, markets, shops with foreign food (such as dairy produce, fresh meat, good wines etc.)
$1200 - $2000 per month
With this budget you will be able to look for an apartment in one of the Foreign Compounds. There are 5 of them situated in Chaoyang District and near embassies – Tayuan Compund, San Li Tun Compound (2 of them), Qijia Yuan Compound and Jianguomen Wai Compound. There are a lot of embassies as well as business offices and press agencies located there. Until 1997 foreigners were allowed to live only in these five areas surrounded with big walls and strong security. If you are interested in mingling with Chinese people, they will not be allowed to enter the gates without you, which may be inconvenient.
There are other areas with similar settings that you will be able to find housing at. The only difference is that gates are open to everybody as long as you give details of the host (building and apartment number). Some apartment blocks available within this price range: Sunshine 100, Suncity, Lianbao, East Lake Villas etc, all located in the central area.
$3000 per month - and above (Top end housing)
Enjoy the luxury of living in Beijing! Housing at the top end of the market can reach as high as $10-20 000 per month. Villas, courtyards the choice is yours.
Villas are situated closer to the airport, with somewhat fresher air and a better chance to see clear skies (Beijing is very polluted and that may be the biggest problem of all to get accustomed to for those who want to live here – besides the traffic). It is quite remote, requires a car and does not give much feeling that you live in Beijing (quite an American style of architecture)
Courtyard houses are the latest fashion. They are converted typical old-style Beijing housing, where 10 or so families used to live together sharing the same yard, public tap and toilet. In recent years the fast paced Beijing real estate development demolished the majority of courtyard houses, and the few remaining ones have now been newly renovated and are something of a status symbol. What used to be cramped housing with poor facilities is now the ultimate in luxury for one family, who can step outside and enjoy the peace of the yard in the middle of the city centre. Pollution is still a problem but since most courtyard houses are situated in local Chinese communities, it combines the advantages of mingling with the locals and enjoying the benefits of good feng shui.
Copyright 2006 Dalida Turkovic
Sources for Dayton Ohio Homebuyers with Poor Credit
If you live in Dayton Ohio and have trouble finding a lender because of your credit history, you may need to consider some less conventional methods of securing an Ohio mortgage. They may not be as common as a "standard" Dayton Ohio home loan from a bank, but these resources may be less stringent about qualifications. You have several options:
• Dayton Ohio Mortgage brokers. A mortgage broker in Dayton Ohio will know a variety of lending institutions across the country and will be able to find a lender willing to work with buyers with less-than-perfect credit histories.
• Dayton Ohio seller's mortgage. This is offered by the seller of the home for a term of three years or so, after which you secure a mortgage in Dayton.
• Dayton Ohio assumable loans. You can take over someone else's Ohio mortgage, such as one offered by the FHA or VA, often with no need to qualify on your own. Adjustable-rate loans can be assumed, but, in general, fixed-rate loans in Dayton Ohio cannot be assumed.
• Dayton Ohio lease/purchase.
• Dayton Ohio Cosigner. Parents or another family member might cosign your mortgage, thereby increasing the likelihood that your application will be approved (but also making them responsible for the mortgage if you cannot make the payments).
Dayton Ohio Mortgage Insurance
There are two kinds of mortgage insurance for those living in Dayton Ohio that you may hear about during your house hunt: mortgage payment insurance, and mortgage life insurance. (Don't confuse these with private mortgage insurance in Dayton Ohio, or PMI, which insures lenders in cases where a buyer puts down only a small percentage of the mortgage cost.)
Mortgage payment insurance in Dayton Ohio covers monthly mortgage payments if the homeowner is forced out of his or her house because of a disaster, such as a fire. There is really no need for this type of insurance. Your Ohio homeowner's policy should cover the cost of any rebuilding necessary, and often, if you must live elsewhere during that time, that expense is covered, too. So you are unlikely to have significant additional expenses that aren't already covered. And you were already expecting to make those mortgage payments, so insurance that covers these is an unnecessary expense.
Mortgage life insurance in Dayton Ohio provides funds to pay off an Ohio mortgage if the principal wage-earner dies before the loan is repaid. However, if you are at all concerned about such a possibility, look into purchasing term life insurance instead. Mortgage insurance in Dayton Ohio is more costly, and the money from that insurance must be used to pay off your loan, whereas the proceeds from term life insurance can be used for any purpose you choose.
For more information about home mortgages or home refinancing in Dayton Ohio visit http://www.ohio-mortgage-services.com