How Technology will Transform The Real Estate Sector INTRODUCTION: In today's rapidly evolving world, technology has become a driving force in transforming various industries. The real estate sector is no exception. With advancements in technology, the way we buy, sell, and manage properties has undergone a significant transformation. In this article, we will explore the impact of technology on the real estate sector and how it is revolutionizing the industry. THE CHANGING LANDSCAPE OF REAL ESTATE The real estate sector has traditionally relied on conventional methods for property transactions. However, with the advent of technology, the landscape of the industry is rapidly changing. From online property listings to virtual property tours, technology has provided innovative solutions that have made the process more efficient and convenient for both buyers and sellers. ONLINE PROPERTY LISTINGS: A GAME CHANGER Gone are the days when potential buyers had to rely solely on newspaper ads or physical property visits. With the rise of online property listings, buyers now have a vast database of properties at their fingertips. Websites and platforms dedicated to real estate have made it easier for buyers to search for properties based on their preferences, such as location, price range, and amenities. VIRTUAL PROPERTY TOURS: BRINGING PROPERTIES TO LIFE One of the most significant advancements in the real estate sector is the introduction of virtual property tours. With the help of 3D technology, potential buyers can now explore properties from the comfort of their homes. These virtual tours provide an immersive experience, allowing buyers to visualize the property layout and get a realistic sense of the space. Virtual tours have not only made the property viewing process more convenient but have also expanded the reach of real estate agents and sellers to a global audience. SMART HOME TECHNOLOGY: REVOLUTIONIZING LIVING SPACES The integration of technology with real estate goes beyond property transactions. Smart home technology has emerged as a game-changer in transforming living spaces. From automated lighting and temperature control to security systems and voice-activated assistants, smart homes offer a seamless and connected living experience. With the increasing demand for convenience and sustainability, smart home technology is reshaping the way we interact with our living spaces. HOW TECHNOLOGY IS STREAMLINING REAL ESTATE PROCESSES Apart from changing the way properties are bought and sold, technology is also streamlining various processes within the real estate sector. Let's explore some of these advancements: ADV (CS) LOKESH SHAH CA HARSH MEHTA 48 49 I. T. MIRROR (2023-24) Real Estate Management Software: Enhancing Efficiency Managing properties efficiently is crucial for real estate agents and property owners. Real estate management software has simplified the process by providing a centralized platform to handle tasks such as property maintenance, rent collection, and tenant communication. These software solutions automate repetitive tasks, allowing real estate professionals to focus on more strategic aspects of their business. Blockchain: Secure and Transparent Transactions Blockchain technology has gained significant attention in recent years due to its potential to revolutionize transactions across various industries. In real estate, blockchain offers a secure and transparent way to handle property transactions. By recording property ownership and transaction history on a decentralized ledger, blockchain reduces the risk of fraud and ensures transparency in the process. Big Data and Predictive Analytics: Informed Decision-Making The availability of vast amounts of data in the real estate sector has opened up new opportunities for informed decision-making. Big data and predictive analytics enable real estate professionals to analyze market trends, assess property values, and identify investment opportunities. By harnessing the power of data, industry players can make data-driven decisions that yield better outcomes. Augmented Reality (AR): Enhancing Property Visualization Augmented Reality (AR) is another technology that is transforming the real estate sector. AR applications allow potential buyers to visualize properties in a real-world context. By overlaying virtual elements on physical spaces, AR enables buyers to see how a property could look after renovations or modifications. This technology provides a unique and interactive way for buyers to envision the potential of a property. FAQS ABOUT HOW TECHNOLOGY WILL TRANSFORM THE REAL ESTATE SECTOR Q: How can technology benefit real estate agents? A: Technology offers several benefits to real estate agents. It simplifies property search and listing processes, expands their reach to a wider audience, and automates time-consuming tasks, allowing agents to focus on building relationships with clients. Q: Will technology replace real estate agents? A: While technology has automated certain aspects of the real estate process, the role of real estate agents remains essential. Agents provide personalized guidance, negotiate deals, and offer expertise that technology cannot replicate. Q: Is virtual reality the same as augmented reality? A: No, virtual reality (VR) and augmented reality (AR) are different technologies. VR creates a completely immersive virtual environment, while AR overlays virtual elements onto the real world. In real estate, AR is commonly used for property visualization. Q: How can blockchain improve property transactions? A: Blockchain technology enhances property transactions by providing a secure and transparent system. It reduces the risk of fraud, simplifies the verification of property ownership, and ensures the integrity of transaction records.
I. T. MIRROR (2023-24) Q: What are the benefits of smart home technology? A: Smart home technology offers convenience, energy efficiency, and enhanced security. It allows homeowners to control various aspects of their living spaces remotely and provides automated solutions for lighting, temperature control, and home security. Q: How can big data help in real estate decision-making? A: Big data enables real estate professionals to analyze market trends, assess property values, and identify investment opportunities. By leveraging data-driven insights, industry players can make more informed decisions and mitigate risks. CONCLUSION Technology is revolutionizing the real estate sector, transforming the way properties are bought, sold, and managed. From online property listings and virtual tours to smart home technology and blockchain-based transactions, the industry is embracing innovative solutions to enhance efficiency, convenience, and transparency. As technology continues to advance, we can expect further transformation and exciting possibilities in the real estate sector. 50 51 EPF v/s NPS v/s PPF - DHRUVIN MEHTA All three are long term investment cum retirement schemes and offer certain tax benefits. But there are other aspects for consideration as under: Employee Provident Fund Scheme (EPF including VPF) National Pension System (NPS) Public Provident Fund (PPF) BASICS It is a social security scheme for salaried individuals (other than g o v e r n m e n t e m p l o y e e s) requiring both employer and employee to make a monthly contribution of 12% of salary (basic wages, DA & retaining allowance). An employee can also make a contribution in excess of 12% into a Voluntary Provident Fund (VPF) Voluntary retirement savings scheme available for both salaried and non-salaried individuals. Mandatory for Govt. employees It is a voluntary tax savings plan available for both salaried and non-salaried individuals where lump sum payout is available after a specified lock-in period. INVESTMENT Mandatory if monthly salary is less than Rs.15,000. Other employees can opt for the same. Minimum annual contribution is Rs.1000 for Tier-I account and Rs.250 for Tier-II account. No upper limit for contributions. Tier I is a long-term investment account, where the sum cannot be withdrawn until retirement. Tax benefits are a lso diff e r ent. NPS off e rs subscribers various investment options (equity funds, debt funds, gilt funds, alternative investment funds). They have freedom to switch options / pension fund managers. A minimum of Rs. 500 per annum with a maximum cap of Rs. 1.5 lakh is permitted. Investments can be in lump sum or in instalments.
I. T. MIRROR (2023-24) Q: What are the benefits of smart home technology? A: Smart home technology offers convenience, energy efficiency, and enhanced security. It allows homeowners to control various aspects of their living spaces remotely and provides automated solutions for lighting, temperature control, and home security. Q: How can big data help in real estate decision-making? A: Big data enables real estate professionals to analyze market trends, assess property values, and identify investment opportunities. By leveraging data-driven insights, industry players can make more informed decisions and mitigate risks. CONCLUSION Technology is revolutionizing the real estate sector, transforming the way properties are bought, sold, and managed. From online property listings and virtual tours to smart home technology and blockchain-based transactions, the industry is embracing innovative solutions to enhance efficiency, convenience, and transparency. As technology continues to advance, we can expect further transformation and exciting possibilities in the real estate sector. 50 51 EPF v/s NPS v/s PPF - DHRUVIN MEHTA All three are long term investment cum retirement schemes and offer certain tax benefits. But there are other aspects for consideration as under: Employee Provident Fund Scheme (EPF including VPF) National Pension System (NPS) Public Provident Fund (PPF) BASICS It is a social security scheme for salaried individuals (other than g o v e r n m e n t e m p l o y e e s) requiring both employer and employee to make a monthly contribution of 12% of salary (basic wages, DA & retaining allowance). An employee can also make a contribution in excess of 12% into a Voluntary Provident Fund (VPF) Voluntary retirement savings scheme available for both salaried and non-salaried individuals. Mandatory for Govt. employees It is a voluntary tax savings plan available for both salaried and non-salaried individuals where lump sum payout is available after a specified lock-in period. INVESTMENT Mandatory if monthly salary is less than Rs.15,000. Other employees can opt for the same. Minimum annual contribution is Rs.1000 for Tier-I account and Rs.250 for Tier-II account. No upper limit for contributions. Tier I is a long-term investment account, where the sum cannot be withdrawn until retirement. Tax benefits are a lso diff e r ent. NPS off e rs subscribers various investment options (equity funds, debt funds, gilt funds, alternative investment funds). They have freedom to switch options / pension fund managers. A minimum of Rs. 500 per annum with a maximum cap of Rs. 1.5 lakh is permitted. Investments can be in lump sum or in instalments.
I. T. MIRROR (2023-24) Glimpses of ITBA Box Cricket League – Night Series on 24th June 2023 Risk free. For FY 2021-22, EPFO has declared interest rate at 8.1 %. Returns might be higher but are not guaranteed and are subject to market risks. These are risk free. The current interest rate for Q4 (January to March) of the financial year 2022- 23 has been set at 7.1% Allowed as deduction within the overall limit of Rs. 1.5 lakh u/s 80C. Employer's contribution up to 12% of salary is not taxable in the employee's hands. However, employer's contributions to EPF (in excess of Rs. 7.5 lakh in a financial year) and income accruing on the same is taxable. If interest accrued on employee's contribution exceeds Rs. 2.5 Lakh per annum, it is also taxable. This has made investing additional sums in VPF a less attractive option. Subscriber to a Tier 1 account can claim tax benefits within the overall ceiling of Rs.1.5 lakh u/s 80C. (However, government employees can claim this benefit even if they have invested in a Tier II account). An additional deduction for investment up to Rs.50000 in NPS (Tier I account) is available u/s 8 0 C C D ( l B ) . I f e m p l o y e r contributes up to 10% of salary (Ba si c + D A ), t h is s u m is available as a deduction u/s 80CCD(2). For government employees this cap is 14%. However, employer's contributions in excess of Rs.7.5 lakh in a financial year and income accruing on the same are taxable. Contribution to PPF is allowed as deduction within overall limit of Rs.1.5 Lakh under Section 80C Taxable only if the amount is withdrawn before completing five years of continuous service Lumpsum withdr awa l (on superannuation) of 60% of accumulated balance is exempt from tax. Monthly annuity is subject to tax. Withdrawals from PPF, either partly or in whole are exempt from tax. Employee Provident Fund Scheme (EPF including VPF) National Pension System (NPS) Public Provident Fund (PPF) Accumulated sum can be withdrawn on retirement or resignation (after remaining unemployed for two months). Partial withdrawal is allowed under certain circumstances like medical exigency, marriage, etc. Locked till super annuation or 60 years of age. However, partial withdrawal for specified reasons possible after three years and subject to a maximum of 25% of contributions made. Withdrawal permitted three times. Balance can be fully withdrawn only upon maturity i.e. after 15 years. Partial withdrawal, based on a prescribed formula, is permitted after six years. Further withdrawal can be made only once in a financial year. LIQUIDITY RETURNS TAX BENEFITS TAX ON WITHDRAWALS 52
I. T. MIRROR (2023-24) Glimpses of ITBA Box Cricket League – Night Series on 24th June 2023 Risk free. For FY 2021-22, EPFO has declared interest rate at 8.1 %. Returns might be higher but are not guaranteed and are subject to market risks. These are risk free. The current interest rate for Q4 (January to March) of the financial year 2022- 23 has been set at 7.1% Allowed as deduction within the overall limit of Rs. 1.5 lakh u/s 80C. Employer's contribution up to 12% of salary is not taxable in the employee's hands. However, employer's contributions to EPF (in excess of Rs. 7.5 lakh in a financial year) and income accruing on the same is taxable. If interest accrued on employee's contribution exceeds Rs. 2.5 Lakh per annum, it is also taxable. This has made investing additional sums in VPF a less attractive option. Subscriber to a Tier 1 account can claim tax benefits within the overall ceiling of Rs.1.5 lakh u/s 80C. (However, government employees can claim this benefit even if they have invested in a Tier II account). An additional deduction for investment up to Rs.50000 in NPS (Tier I account) is available u/s 8 0 C C D ( l B ) . I f e m p l o y e r contributes up to 10% of salary (Ba si c + D A ), t h is s u m is available as a deduction u/s 80CCD(2). For government employees this cap is 14%. However, employer's contributions in excess of Rs.7.5 lakh in a financial year and income accruing on the same are taxable. Contribution to PPF is allowed as deduction within overall limit of Rs.1.5 Lakh under Section 80C Taxable only if the amount is withdrawn before completing five years of continuous service Lumpsum withdr awa l (on superannuation) of 60% of accumulated balance is exempt from tax. Monthly annuity is subject to tax. Withdrawals from PPF, either partly or in whole are exempt from tax. Employee Provident Fund Scheme (EPF including VPF) National Pension System (NPS) Public Provident Fund (PPF) Accumulated sum can be withdrawn on retirement or resignation (after remaining unemployed for two months). Partial withdrawal is allowed under certain circumstances like medical exigency, marriage, etc. Locked till super annuation or 60 years of age. However, partial withdrawal for specified reasons possible after three years and subject to a maximum of 25% of contributions made. Withdrawal permitted three times. Balance can be fully withdrawn only upon maturity i.e. after 15 years. Partial withdrawal, based on a prescribed formula, is permitted after six years. Further withdrawal can be made only once in a financial year. LIQUIDITY RETURNS TAX BENEFITS TAX ON WITHDRAWALS 52
Glimpses of FIRST STUDY CIRCLE MEETING on 17th JUNE, 2023