What is a completion certificate and how to apply for it?

Author: Sachin Gupta | Find me on Twitter

In our last post, we discussed about various approvals that are needed to construct a house. We also discussed that no matter if you are constructing your own house or buying it from the real estate developer; you still need to get approvals from relevant authorities within your city.

An important approval (or document) among all the approvals is completion certificate (CC). As the name suggests, this certificate is granted after the completion of construction of your house or a group housing society. The certificate is issued when the property is ready to be moved in. Completion certificate is issued by the local development authority/Municipal Corporation certifying that:

  1. All necessary works have been completed according to the design plan and other directions, and
  2. The property is fit for moving in.

Therefore, it is your duty to apply for completion certificate when the house you are constructing is ready to be moved in. Or you should ask your developer to get the completion certificate in case you are buying the property in a group housing society such as high rise or low rise apartment complex.

Find below the procedure for obtaining the completion certificate:

Have any Questions?

The problem with the capital gains tax

Tax policy can be frustrating.  A major reason that Mitt Romney pays a lower effective tax rate than many working stiffs is that most of his income comes in the form of capital gains, which is taxed at a preferential rate (the top marginal ordinary income tax rate is 35 percent, while the long term capital gains rate is 15 percent).  It may therefore seem that the easy way to implement a “Buffet rule” would be to match the capital gains rate to the ordinary income tax rate.

There are three policy dilemmas here, along with a practical problem.

The first policy dilemma is that some capital gains are nominal–they don’t reflect changes in purchasing power.  We recognize this problem in other places in the tax code–for example, we adjust tax brackets for inflation every year.  The problem could be solved using indexing–we could tax real capital gains at the ordinary income tax rate.

The second dilemma is perhaps more controversial.  In a Solow-Swan world of economic growth, more savings produce a larger and newer capital stock, both of which are key to growth (Barro and Sala-i-Martin have a lucid description).  If they are correct (and the consensus is that they are), then policies that encourage both savings and flexibility are good policies.  To some extent we do this with our retirement tax policies: so long as savings remain in a retirement fund, their returns go untaxed, even when securities within the fund are bought and sold.  With respect to capital gains policy, this implies that we should discourage the consumption of realizations of gains, but should encourage investment flexibility.  In other words, if someone sells her winners in order to buy a Jaguar, she should be taxed, but if she sells winners in order to reinvest somewhere else, she should not.

The second dilemma creates a third dilemma–the investor who makes smart decisions accumulates considerable wealth, which could lead to disproportionate political power.  Capital gains preferences accelerate this phenomenon.  This is particularly vexing.

Now for the practical problem–the statutory capital gains rate can be considerably different from the effective rate (my approach here follows the argument in Dave Geltner and Norm Miller’s Textbook, Chapter 11).  Consider an investment that pays no dividends that grows in value at 10 percent per year in a world with a statutory capital gains rate of 20 percent.  Suppose the investor holds that investment for ten years, and then sells it.  To put some numbers on it, a $100 investment will grow to $259.37 in value.  The capital gains taxes will be $159.37*.2=$31.87, so the net to the investor after capital gains taxes with be $227.50.  The internal rate of return on the investment drops from 10 percent before tax to 8.6 percent after tax.  Consequently, the effective tax rate is not 20 percent, but 14 percent.

If we stretch out the investment horizon to 20 years, the effective rate drops to 10.3 percent; if we reduce it to 1 year, the effective rate matches the statutory rate of 20 percent.  The point is that regardless of the capital gains rate, investors have considerable discretion at determining their effective rate.  So it is almost certain that a behavioral response to a higher capital gains rate would be longer periods of time between realizations, hence lowering the effective rate.  When it comes to figuring out tax policy, nothing is easy.


Confidence? What Confidence?

the Bear Stearns bail-out by claiming a crisis in confidence. So exactly how confident are investors in the good ‘ol US of A supposed to be now that the Fed has to bail out 80-something year-old investment firms?

Hey Ben, you want to restore confidence? Let the free markets work.

And does Bernanke even care about Americans or does he just care about those Americans who happen to work for Wall Street? Here’s one reader’s answer:

How do the Master Planners feel about the American household, about the little guy? Here’s some of Bernanke’s testimony today on the hill:

Mr. Kennedy (loud): “What’s your recommendation? We have monetary and fiscal policy. You have responsibility in monetary, Congress does in fiscal policy. But you have to have some position in terms of the economic crisis that we’re facing.”

Mr. Bernanke (calm): “No sir.”

Mr. Kennedy (louder): “You’re not prepared to tell us, to try and provide help and assistance to the states . to try and help and assist families, working families?”

Mr. Bernanke: “I’m all in favor of assisting people, sir, but it’s Congress’ position.”

Mr. Kennedy (at his loudest): “You don’t have a recommendation?”

Mr. Bernanke: “No sir.”

What they really meant:

Kennedy: “What are you going to do to bail out the American household, Ben?”

Bernanke: Nothing Ted. What are you going to do about it?

Kennedy: “I asked you first.”

Bernanke: “Well, Ted, you ignorant sot, we bailed out Wall Street. That’s good enough.”

Kennedy: “That is not good enough, Ben, you pretentious pedagogue. You need to bail out the American household too.”

Bernanke: “No, Ted, you do that.”

Bernanke: “No Ben, you do that.” “No, you do it.” “No, you do it.”

Or is any despicable act justifiable if it means that there is even the very slightest chance of saving some of your precious housing loot?

Sikapku Untuk Bangsaku (Part 2)

Sikapku Untuk Bangsaku (Part 2) Cerita Motivasi dan Inspirasi Nomor 1
Kini setelah mendapat pesetujuan dari keluarga. Ryan sekarang tercatat sebagai salah satu mahasiswa di universitas negeri terbaik di Jakarta Fakultas Hukum. Sejak dulu Ryan memang sudah memimpikan untuk bisa menyandang gelar sarjana hukum, sama seperti sahabatnya Arif yang sekarang juga mengambil jurusan hukum. Bedanya adalah Arif berada di bawah naungan salah satu Universitas terbaik di Inggris. Meskipun sekarang mereka terpisah oleh jarak yang cukup jauh, namun intensitas komunikasi mereka tetap berjalan terus. Maklumlah, kedua orang ini memang sudah begitu dekat sejak kecil. Namun kali ini mereka harus terpisah sejenak untuk mimpi mereka masing-masing.

Setiap hari, Ryan menjalani rutinitas perkuliahan yang begitu padat. Panas Ibukota yang selalu sama dan tak bisa diajak kompromi itu, serta macetnya jalan tak membuat Ryan untuk mengeluh mengendarai sepeda motornya menuju kampus. Kali ini dia berangkat berboncengan dengan salah satu kerabat kelasnya Adit. Anak muda seperti Ryan dan Adit memang …..

… baca selengkapnya di Sikapku Untuk Bangsaku (Part 2) Cerita Motivasi dan Inspirasi Nomor 1

New Listing – 137 Mike Gartrell Circle, Sacramento, CA 95835

Spacious single story 3 bedroom, 2 bathroom, 1,733sf home in Regency Park Natomas! You will love the custom interior paint, vaulted ceilings, lots of natural light and open feel, formal dining area, kitchen with stainless appliances, 5-burner gas stove and convection oven. Large master suite with walk-in closet, ensuite bathroom with double sinks, large sliding door leading to the backyard. Close to recreational bike trails, parks, restaurants, retail, freeways, and Sacramento International Airport. Don’t wait! Offered at $375,000 subject to lender approval of short sale. For more photos and a virtual tour visit 137 Mike Gartrell Circle, Sacramento, CA 95835.

Orwell’s six rules on writing.

From Politics and the English Language:

(1) Never use a metaphor, simile or other figure of speech which you are used to seeing in print. 

(2) Never use a long word where a short one will do. 

(3) If it is possible to cut a word out, always cut it out. 

(4) Never use the passive where you can use the active. 

(5) Never use a foreign phrase, a scientific word, or a jargon word if you can think of an everyday English equivalent. 

(6) Break any of these rules sooner than say anything outright barbarous.

Apakah Memaafkan Sama Dengan Melupakan?

Apakah Memaafkan Sama Dengan Melupakan? Cerita Motivasi dan Inspirasi Nomor 1
Di milis Money Magnet baru-baru ini ramai dibahas mengenai memaafkan dan melupakan. Ada yang mengalami suatu pengalaman yang menyakitkan dan merasa sulit untuk memaafkan. Ada yang merasa sudah memaafkan namun kok nggak bisa melupakan. Apakah memaafkan sama dengan melupakan?

Saya menjelaskan mengenai efek dan khasiat memaafkan di artikel Forgiveness is The True Healer. Ini adalah artikel yang saya posting di web saya beberapa waktu lalu.

Bagaimana sih kok kita ini sampai bisa punya masalah, khususnya yang berhubungan dengan emosi negatif?

Sebenarnya semua emosi itu positif. Namun untuk memudahkan penjelasan maka saya “mengkategorikan” emosi seperti marah, kecewa, dendam, benci, terluka, sakit hati, perasaan bersalah, takut, cemas, khawatir, dan kawan-kawannya sebagai emosi negatif. Emosi negatif adalah emosi yang bila kita rasakan atau alami akan sangat mengganggu kita.

Pertanyaannya sekarang adalah, “Dari manakah sebenarnya emosi ini?”

Emosi muncul sebagai hasil dari suatu pemaknaan. Setiap kejadian adalah netral. Tidak ada kejadian yang baik atau jelek. Semua bergantung
… baca selengkapnya di Apakah Memaafkan Sama Dengan Melupakan? Cerita Motivasi dan Inspirasi Nomor 1

As a prospective borrower, what are the terms you should be generally aware about in the housing finance field in India?

Author: Sachin Gupta | Find me on Twitter

Continuing in our series of home finance, in previous article, we noticed the shortage of housing in India and the role that Home finance companies can play to plug this housing shortage gap. In this article, we will explore the various terminologies used in home finance such as types of home loans, pre-payment charges, processing fee, secured/unsecured loan, rate of interest, insurance, pre-approved loans, etc. The idea is to equip you with basic yet important terms used in home loan process. Therefore, whenever, you decide to go for the home loan to purchase property, it is advisable to quickly go through the following document.

Not only will this hold you in good position to bargain for lower interest rates with the bank but it will also help you to understand various charges that are incurred while procuring home loans. Home loans as described in the document below can be availed for purposes such as buying a property, construction, land purchase, etc. Irrespective of the type of home loan one is going for, it make sense to compare the various loan options from different banks.

Having understood the various terminologies used in the home loan process, we hope that you will make an informed decision.


Have any Questions?

A California Renaissance?

rocky mountain

Nice blog…Thanks for sharing information..
Rocky Mountain Wealth Concepts


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Manish Kumar

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NaLiMa KaPooR

Nice blog and quality content.
also would recommend to choose residential property in
aranya homes
for best deals,also recommends to invest in
2/3/4 BHK apartments sec.119 Noida
for best return on investment.this is my personnel opinion and experience.