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Hiranandani Upscale House of Hiranandani OMR Chennai

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Hiranandani Upscale House of Hiranandani OMR Chennai

Last updated: October 10 2017
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  • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

    @Srivat,

    my understanding is Tax free bond - Coupon yield at the time issue is lower than the yield of standard bond, Debt or FI instruments.

    However if in due course market interest rate went down than that Bond one hold at higer coupon rate/Yield is attractive.

    If you want that attractive yielding bond, Then you pay a capital premium to buy that bond.

    The seller would still incur a capital gain (usualy not huge)

    If the market interest is higher - The situation reverses.

    Nobody wants the lower yielding bond as they can get better rate at SBI FD.
    If one is offloding the bond in the market, then he sells at a capital loss to compensate for current high market interest.

    So bond has capital growth/loss component on top of the yield/income coupon component.

    Tax free bond is offered tax free for a reason - The bond issuer (HUDCO/NAHAI/REC etc) want to borrow at lower than prevailing market interest rate, So they seel help for funding from GoI who inturn issues tax free status thru department of finance.

    Ignoring tax status if you purchased a normal bond your returns would have been better.

    if the interest rate market is hot, lower yielding bond performance will be poor - So Market condition is the key.

    Tax free status - There is nothing called a free lunch.You accept below market coupon yield to get tax free status.
    You loose one to get one - It may suit your tax position - thats about it.

    Same goes with CGT bond issues - yield is poor. Also they have restiriction on how much you can invest to offset tax. One cannot invest 1C to minimise tax.
    Last edited July 3 2013, 05:03 PM.

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    • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

      Eco:

      Was your #874 addressed to me? I see my post quoted but could not get the relevance.

      Originally posted by Economist
      @Srivat,

      my understanding is Tax free bond - Coupon yield at the time issue is lower than the yield of standard bond, Debt or FI instruments.
      Even without considering the example of what srivat quoted, getting 8% tax-free yield adjusted for CGT paid in a debt fund over the next 5 years is not difficult and it could be more.
      Last edited July 3 2013, 05:14 PM.

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      • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

        Originally posted by Economist View Post
        @Srivat,

        my understanding is Tax free bond - Coupon yield at the time issue is lower than the yield of standard bond, Debt or FI instruments.

        However if in due course market interest rate went down than that Bond one hold at higer coupon rate/Yield is attractive.

        If you want that attractive yielding bond, Then you pay a capital premium to buy that bond.

        The seller would still incur a capital gain (usualy not huge)

        If the market interest is higher - The situation reverses.

        Nobody wants the lower yielding bond as they can get better rate at SBI FD.
        If one is offloding the bond in the market, then he sells at a capital loss to compensate for current high market interest.

        So bond has capital growth/loss component on top of the yield/income coupon component.

        Tax free bond is offered tax free for a reason - The bond issuer (HUDCO/NAHAI/REC etc) want to borrow at lower than prevailing market interest rate, So they seel help for funding from GoI who inturn issues tax free status thru department of finance.

        Ignoring tax status if you purchased a normal bond your returns would have been better.

        if the interest rate market is hot, lower yielding bond performance will be poor - So Market condition is the key.

        Tax free status - There is nothing called a free lunch.You accept below market coupon yield to get tax free status.
        You loose one to get one - It may suit your tax position - thats about it.


        Same goes with CGT bond issues - yield is poor. Also they have restiriction on how much you can invest to offset tax. One cannot invest 1C to minimise tax.
        You are right. Lock today 96 lakhs in REC bond and the interest will be carried forward your tenure.

        Banks offer me 9% but on higher tax bracket post tax it is around 6.75% if I am not wrong.

        That is the reason if you read my returns earlier I have mentioned 8% and not current market rate of 9%, I have adjusted for lower yield.

        I have taken that into consideration already. I am learning form you Eco

        Comment


        • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

          Originally posted by maverick007 View Post
          Eco:

          Was your #874 addressed to me? I see my post quoted but could not get the relevance.



          Even without considering the example of what srivat quoted, getting 8% tax-free yield adjusted for CGT paid in a debt fund over the next 5 years is not difficult and it could be more.
          I was agreeing with you there and then taking about those:

          Who whinge about 27% UDS etc and then support people in Singapore paying top dollars to old flat that is on remaining lease of 40 years (without Development potential)

          If those people are so much conscious about high UDS then they should be buying plot that will give 100% UDS not 37% that cannot be liquidated easily.

          Comment


          • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

            Originally posted by srivat View Post
            You are right. Lock today 96 lakhs in REC bond and the interest will be carried forward your tenure.

            Banks offer me 9% but on higher tax bracket post tax it is around 6.75% if I am not wrong.

            That is the reason if you read my returns earlier I have mentioned 8% and not current market rate of 9%, I have adjusted for lower yield.

            I have taken that into consideration already. I am learning form you Eco
            Is the difference that low? only1%?

            Last time (3-4 years ago) when I was considering CGT bond from NAHAI, the difference was huge. The limit per investor from memory was only 25L. The lock in period was long as well, In the end it was all too hard for too little.

            IT Bond is something irrelevant for me in India, So I have never looked seriously in to it. But I am surprised the diff is only 1% to market rate.

            I am sure they would have some investment cap. They will not let you wipe of all your tax position?

            How often in a year does the IT bond the distribute income?

            How long is the term?

            Who is CGT treated for tax purpose on trading bonds?

            I am not up to date with Indian rates as I do not follow it closely.

            I have exposure mainly in Debt/Cash Plus funds and some equity funds in India and I don't even look at it closely. I leave it to the local planner.
            Last edited July 3 2013, 07:13 PM.

            Comment


            • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

              Originally posted by Economist View Post
              Is the difference that low? only1%?

              Last time (3-4 years ago) when I was considering CGT bond from NAHAI, the difference was huge. The limit per investor from memory was only 25L. The lock in period was long as well, In the end it was all too hard for too little.

              IT Bond is something irrelevant for me in India. But I am surprised the diff is only 1% to market rate.

              I am sure they would have some investment cap. They will not let you wipe of all your tax position?

              I am not up to date with Indian rates as I do not follow it closely.

              I have exposure mainly in Debt/Cash Plus funds and some equity funds in India and I don't even look at it closely. I leave it to the local planner.
              Yups what i shared is the latest yield. As far as I know there is no cap and also traded in market. If cap exists distribute the investment among close family members. .

              The point to drive is GW rates are overblown and cannot beat yield return for atleast next 6 to 7 years. My take. If you go for little riskier investment like CD's the yield can be around 9 to 10% post taxes.

              Comment


              • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

                Hi Everybody!
                I'm contemplating a purchase of 3bhk in Hiranandani Phase 1 - 1749 sqft.
                Possibily a sea/garden facing one.
                Any idea what would be a fair price for a resale flat?

                Comment


                • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

                  Better try your luck in common floor with distress and economical resale route

                  2BHK 1295 sft is quited around 88-90 lacs.Not sure about 1749 .

                  Considering base rate of 5200 for yet to be constructed Amalfi and other charges of 20% may work out with or end up with 1.18 cr . If anything is lower , you are lucky .

                  Negotiation and Understanding the cost basically make one feel strong and confident.

                  " Many things are lost for want of Asking "

                  " Cost of the Product is nothing but Toil and Trouble of Acquirng It "


                  My Request

                  Why don't you try other alternatives at attractive price and what makes you to choose Hira need to be explained for the wider audience and interests of the forum members

                  Originally posted by Speculator View Post
                  Hi Everybody!
                  I'm contemplating a purchase of 3bhk in Hiranandani Phase 1 - 1749 sqft.
                  Possibily a sea/garden facing one.
                  Any idea what would be a fair price for a resale flat?

                  Comment


                  • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

                    Thanks Ravi.

                    I'm not sure what flats you mean.
                    I was getting 2bhk quotes in 75 to 85 range basis view floor rise et al.
                    3bhk..I am currently getting quotes in 1 to 1.1 cr range for lower floors.
                    Which I though was a bit pricey...hence wanted an expert opinion.

                    I am only talking of resale of course.

                    I would like to pick up Hira, as the homes are very classy (entirely subjective).
                    I have a 3 yr old son, and i think hira school is a rather convenient option.


                    Originally posted by RaviCbe View Post
                    Better try your luck in common floor with distress and economical resale route

                    2BHK 1295 sft is quited around 88-90 lacs.Not sure about 1749 .

                    Considering base rate of 5200 for yet to be constructed Amalfi and other charges of 20% may work out with or end up with 1.18 cr . If anything is lower , you are lucky .

                    Negotiation and Understanding the cost basically make one feel strong and confident.

                    " Many things are lost for want of Asking "

                    " Cost of the Product is nothing but Toil and Trouble of Acquirng It "


                    My Request

                    Why don't you try other alternatives at attractive price and what makes you to choose Hira need to be explained for the wider audience and interests of the forum members
                    Last edited July 4 2013, 11:45 PM.

                    Comment


                    • Re : Hiranandani Upscale House of Hiranandani OMR Chennai

                      If you are getting at around 1.1 crore,its a good buy for sure.But try to get something on higher floors.

                      Comment

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