GaryRoy22
07-04-2008, 12:03 AM
Economists analyzing the Kerala Real Estate scene caution both the real estate developers and the customers on several aspects.Coming clean on the rules and regulations governing real estate development is one thing and the existence of loopholes in the law and the frequent violations are another factor that can act as a dampener on the aspirations of both the customers and the real estate developers.
Lawmakers without a sound understanding of the ground realities have been responsible for formulating laws that never served its purpose and for confining its relevance to paper than in ensuring justice for all. Flawed clauses in housing laws always lead to economic inefficiency. Consider the case of the ordinance granting housing subsidies to people with low incomes. The right enjoyed by the targeted population was not clearly specified.
A major clause in this ordinance deals with the status of certain landed properties. Most landlords rent out their flats and apartments to tenants. Some landlords even subsidize the rent to help low income tenants. This ordinance places certain strictures on the landlords and also the tenants that are likely to affect the cordial relationships existing between them.
Owning real estate offers much safety and also the provision for further investments. Owners of property have exclusive rights to it as long as they wish to retain their exclusive rights to it. Investment in property is actually an asset much similar to an investment in mutual funds or in fixed deposits. All investments appreciate and investments in landed properties appreciate faster than that of others.
Lawmakers without a sound understanding of the ground realities have been responsible for formulating laws that never served its purpose and for confining its relevance to paper than in ensuring justice for all. Flawed clauses in housing laws always lead to economic inefficiency. Consider the case of the ordinance granting housing subsidies to people with low incomes. The right enjoyed by the targeted population was not clearly specified.
A major clause in this ordinance deals with the status of certain landed properties. Most landlords rent out their flats and apartments to tenants. Some landlords even subsidize the rent to help low income tenants. This ordinance places certain strictures on the landlords and also the tenants that are likely to affect the cordial relationships existing between them.
Owning real estate offers much safety and also the provision for further investments. Owners of property have exclusive rights to it as long as they wish to retain their exclusive rights to it. Investment in property is actually an asset much similar to an investment in mutual funds or in fixed deposits. All investments appreciate and investments in landed properties appreciate faster than that of others.