BUY PROPERTY & CREATE A CONCRETE ASSET

Apart from a roof over one’s head, Property is also one of the safest investment options, with steady returns and ‘tangible’ gains . . .  

The average Indian opts for equity, gold or real estate when it comes to asset classes for investment purposes. While a roof over your head is the obvious plus point, other than self-use, investing in real estate is by far one of the most prudent decisions an individual investor could take. This is simply because unlike the stock market or mutual funds, real estate is much simpler to understand and track. Moreover, there is ample information available on the various aspects that drive the decision, from price movements to infrastructure development and rental rates to new projects coming up. In today’s networked world, there are many sources from which one can glean sufficient details to take an informed decision. Often, perspectives of real estate industry experts can also help deepen knowledge about real estate and how consider it as an asset class. These are a few aspects to keep in mind while investing in property:

• Rules and regulations with respect to real estate differ from state to state. If your property buying is in a different state than where you live, ideally, get the rules and regulations clear by interacting with a legal expert/ lawyer. 

• The demand for properties will always pick up in emerging or developing areas. Ensure you study the trends and scope for further growth in a location before taking a decision. 

• Do their homework and ensure the credibility of the developer, his track record, delivery pattern for past projects, features of the buildings and infrastructure, etc. Following a few simple dos and don’t like this can be extremely beneficial to the individual investor; after all it is your hard earned money that is being invested! 

• Study growth patterns in surrounding areas and try to figure out if the location you are considering would benefit directly or indirectly in any way. From Special Economic Zones to IT hubs, a cluster of management or engineering colleges and other key educational options, any or all these can influence demand at your chosen location if it is well positioned to take advantage of those developments.  

• Malls are a key growth driver. With shopping, entertainment and leisure facilities available at a single venue, they ensure the location will gain a higher profile and command higher prices. Upcoming malls are a great indicator for investors. 

• Property selection is another key aspect. If you are expecting your investment to appreciate in value, ensure that the project is of minimum quality standards. Otherwise, a shabby building may not appreciate in value even at a prime location. 

• Leasing capability is equally important. Most people prefer to lease a two-bedroom apartment or one with a larger configuration. One-bedroom flats and studio apartments are mostly for self-use.  

• Seeking prospective tenants is much easier if the project is located in the vicinity of a business hub or entertainment industry facilities like studios. Proximity to companies from the BPO or ITES sectors is also a good option. 

• Budgeting is quite important. Ensure you provide sufficient funds for furniture and furnishings in addition to your basic purchase. Again, it’s much easier to lease out an investment property if it is well furnished and has a subtle but classy interior décor scheme.   

• Real Estate can be quite a lucrative investment option. The smart thing is to keep rolling over your investment at periodic intervals. When an investment has appreciated sufficiently in value and the property prices in that location have almost peaked, there is limited scope for further capital appreciation. In such cases, consider booking your profits and exiting that project. 

• If you are looking at substantial capital appreciation, real estate provides precisely that opportunity. By the time you book your profits and exit one particular project, your capital will have grown to the point that you can reinvest it in a larger apartment. 

• If you have limited capital but still want to invest in real estate, don’t despair. Book an under construction property with a home loan. The tax benefits will help through the initial period and once you get possession and lease out the premises, most of your repayment will be taken care of by the lease rent and tax benefits together. Your own contribution would be quite limited in percentage terms. 

• Management and maintenance are two key aspects to keep in mind. If you want your investment to retain its attractiveness and appreciate in value, ensure you keep the interiors in good shape. The ambience of your investment should be of a level that makes it easy to lease out. 

• Also, in townships, ensure that the project itself is well maintained and managed. 

• And finally: spending a little on professionals will ensure long-term returns. 

Proactive Developers – Educating Buyers

Most of the projects coming up these days provide the residents a lot of facilities and amenities that the buyer are not probably used to living with, especially when it’s the case of slum rehabilitation projects.

The developers spend a lot of money on developing these amenities. Once the apartments are sold and handed over to residents, one finds that the residents make changes to their individual flats like making some structural modifications internally; fixing safety grills of different colour, size and design etc. Residents are also ignorant about the usage of general and emergency services like lifts, fire-fighting equipment’s, emergency PA system, Generator back-up etc. Hence they do not pay attention or maintain these services well which decreases the life of the equipment’s and at large the project / Building.

The biggest damage actually happens to is the developer/builder as it affects his brand value. Whoever looks at the building 4-5 years down the line just comments on the builder; if building looks good he is appreciated and if not he is blamed of using sub-standard material. Bad looking buildings ruin the chances of a developer for getting future projects.

This problem has now led the developer to take the initiative to educate the buyer about the various aspects of living in a modern set up. Once the deal is done, the developer organizes a demonstration with the help of various agencies to train and guide the residents on the proper maintenance and judicious use of the various facilities provided like lift, video door phone, swimming pool etc. 

Training is provided on the proper disposal of garbage, rain water collection, use of fire hydrants in case of electrical fire, maintenance of common areas etc. Demonstration and information is imparted about the use of personal and general equipment’s such as video door phone, gym equipment, swimming pool maintenance, club house, intercom and high end security systems etc.

The developer does this exercise at his own expense as it helps him to enhance his brand value.

The residents are also advised on maintaining the appearance of the building by avoiding the hanging of clothes for drying in the balconies or keeping flower pots on the window sills, using their balcony or window grills as storage place etc.

The structural changes by breaking or modifying walls are completely discouraged. This destroys the beauty of the building and also leads to problems of seepage which in turn makes the structure weak. In some cases the developer also gives information on the formation and running of society. This helps the residents in properly maintaining the society for a longer time which in turn creates a good reputation for the developer.

Both the residents and the developer get to reap the benefit of this exercise 

INTEGRATED TOWNSHIPS – Living a peaceful life

Today Indian real estate scenario is witnessing a shift in the way projects nowadays are being designed and developed or to simply say developers desire to construct townships simply because they wish to provide their buyers - affordability with luxury and with all necessary amenities.

Land shortage in developed regions permits only construction of small projects or at the most a mid-sized housing complex comprising a few multi-storied buildings with limited amenities added to. This turns out to be an expensive proposition for a developer as land & construction cost is high, government approvals are difficult to get, hence he prefers not to get involved. For large integrated townships although large parcel of lands are required, which today are only available on the outskirts of a city, still makes sense for developers to develop because the land cost there is less. Again because of the scale of construction; cost is less, government is in favour of developing such townships and hence permissions also come fast.

Advantages of living in an integrated township.

An Integrated Township can be described as a place which has most of the essential facilities within its boundaries such as schools, hospitals, parks, gyms, shopping centres etc. The most important and best aspect of Integrated Township is its self-sustaining infrastructure; water and waste management, sanitation, business centres, healthcare, good connectivity, basic education facilities and recreation. To understand these points a little further lets elaborate them;

Connectivity: a well-developed road network within the township as well as its connecting to the highway and the nearest railway station is a boon for working class and businessmen equally.

Water management: adequate supply of treated water to meet the everyday requirements of the residents and proper disposal of waste water with recycling assures less dependability on municipal supplies.

Garbage management: collection, disposal, treatment of garbage is a must to maintain hygiene and proper ecological balance in nature, with a dedicated collection of garbage area and disposal systems in place this adds value in townships.

Schools: basic education should be available to the children residing in the township this is one of the norms laid by government, adds further to convenience of residents as they feel their kids are just next to them when still in school.

Playground: open play areas have to be provided in townships as norms these should be provided for the all-round and healthy development of children.

Power supply: though the township will have to depend on public or private power supplier, it generally has a good back-up system for all its common areas, households and essential services like hospitals during power breakdown.

Infrastructure maintenance: not just providing but maintaining good infrastructure for long term is a must and within townships its generally seen that this is well taken care of as cost of maintenance gets divided and is almost negligible for residents.

Healthcare: with a large population of varied age groups residing, it is very important to have healthcare facilities that will cater to all types of medical requirements. This is also one of the norms for integrated township.

Security: another important aspect which is taken care of is providing good and round the clock security within the township.

Entertainment and recreation:  A spacious, well-decorated community centre with a club house and a function hall quality cinema or multiplex, popular games and kid entertainment facilities are generally established within the township.

Shopping centres: well stocked stores of groceries, fruits and vegetables, garment stores, electronic goods stores etc. are also a part of the township, this is to meet the everyday requirements of the residents.

There are many more such benefits of being a part of township, these developments are beneficial for developer as it justifies his scale of economy and for customer it’s a place for peaceful life.

Log on to www.indipropmart.com if you are looking at buying or investing in Mumbai, Navi Mumbai, Thane, Kalyan-Dombivali, Raigad or Mira-Virar City Region.

MUMBAI PROPERTY MARKET; STILL HOLDING ON…..OR IS IT OTHERWISE

A survey report released recently in a newspaper states that there has been a dip in property sales in the real estate market across the country except in Bangalore. Though the dip across is said to be at 20% Mumbai has been shown at a dip of only 2% which indicates that the real estate market in Mumbai is still buoyant for developers!

The buyers who are hesitant to invest in property today thinking the prices are still high and they should wait for the prices to come down as it has happened across country, please understand the prices won’t be coming down, instead, are chances are more of their going up gradually if not drastically.

There are various reasons for this to quote some - the cost of land parcels have gone up and are still rising; it takes a long time to get various government approvals and clearances before a developer can actually start the project leading to increase in cost; with time the cost of labour and raw materials also keeps rising which affects the project and so on…

The prices may not be coming down, but the developers have been offering a lot of freebies and schemes to the interested buyer like waiving off stamp duty and registration charges, value added tax, service tax etc. This is the time to take advantage and buy. Post festive season say by end of February the market will be back to its stubborn way and customers will have not much option but to buy at those escalated rates. 

The positive sign for niche segment of customers today is that a lot of construction activity is going on in the affordable as well as ultra-luxury segment (two extremes catering totally to two different segments) which indicates that there is a demand for these products. There has been a slight upward shift in the rates of these properties but the demand for them still exists. The demand for 1BHK and 2BHK is rising in certain regions of Mumbai and MMR as a lot of working young couples now want to have a place of their own and also there is demand for 4 BHK and above.

The average buyer is now very much aware of the changing and growing trends in the property segment thanks to the many online property portals featuring realty news which keeps the buyer informed and updated. The portals also give you advices on price trends across few years which is fair enough to judge what lies in future. Use these parameters if you are eager to have a home of your own and if you find not much has changed don’t waste any time further  take this crucial decisions fast………..

Log on to www.indipropmart.com if you are looking at buying or investing in Mumbai, Navi Mumbai, Thane, Kalyan-Dombivali, Raigad or Mira-Virar City Region.

FESTIVITY FOR REAL ESTATE BUYERS

Good news for all those people who have been on the lookout for a good deal on their dream house. After a stagnant period in the property market, there is now a significant supply of ready-to- move- in apartments. 

Quite a lot of people now prefer to buy such flats as it saves on dual expense of rent and EMI. As such the festival season has started and we Indians consider this as an auspicious occasion to buy anything, especially a house, which is one of the most important of our investments.

The developers also offer discounts and run special schemes during this time to attract buyers. Buying a ready flat has its own advantages:

• You can move in immediately or as per you convenience.
• You save on rent money.
•  Though you may have to take a loan and pay EMI it is still worth it as you are only making an investment and securing the property as your own.
•  The waiting period that one encounters in an under construction project can be avoided, along with it any delays or other similar problems, that may prevent you from moving into your own house.

So, quickly log onto www.indipropmart.com and zero in on properties of interest. Take advantage of this festival season and be the proud and happy owner of your own house.

Happy House Hunting!

WHAT ALL TO CONSIDER WHILE LOOKING FOR A NEW HOME !!!

After a lot of searching around for that dream house (physically & on-line) you finally find one! What do you do? Just buy and move into it or you evaluate the other basic social factors too. Of course! There are a lot of factors that need to be taken into account when short-listing a particular property such as Infrastructure, schools, market, hospital etc. What are these basic but the most important factors that should influence your decision when you are looking for a place to settle down or invest in a property. Listed below are a few of these factors:

• Good connectivity:  Well maintained roads, bridges and railways. Commuting to work and back home is a daily routine for most of us and takes a lot of our time. If the ride is smooth, life appears good! A good availability of public transit services is a boon for all
• Strong Tele-communication systems and connectivity:  this is the age of computers, mobiles, satellites and what-not’s.  Everyone has a mobile including the maid, the cleaner etc. so it is very important to have good telecom services and internet connectivity in an area.
• Reliable and affordable energy: all our daily household chores are now being done with the aid of electronic gadgets- washing machines, fridge, microwave, geyser, mixer-grinder, etc. Hence to have regular and uninterrupted power supply is now a necessity.
• Educational institutes: Having good schools and other educational institutes in the neighbourhood is an advantage for both parents and children.
• Good passenger connections to other cities: we all keep moving from one place to another in search of a good job, education, health facilities and more. So good and quick connectivity between different cities is a bonus.
•  High quality water and waste water systems: regular availability of pure and safe drinking water is a must. Also, it is necessary to have a good waste water management system in place to treat water for recycling and also conserving it for the future.
• Sufficient parking: with almost every household having at least one car, and many of us having two cars, a two-wheeler or more, sufficient parking space is a huge concern for the present generation.
•  Quality healthcare facilities: pollution, stress, diseases, allergies are a part of everyday life. Having good healthcare facilities in your locality is very essential for everyone.

These are some of the factors we have suggested but there can be many more and it would also vary from person to person and family to family. Always create that check-list of factors which can make your life smoother and pleasant to live when short-listing place – “a home”. 

INDIAN REAL ESTATE – IS ONLINE THE WAY TO GO……

Just went through some articles on this topic (in newspapers and on-line), thought of sharing few facts from what I could understand:

On-line medium is slowly sinking into Indians mindset; they have started purchasing high value items on-line.This medium seems to be a boon for today's consumers who are so tied up in their professional and personal commitments that it’s almost impossible for them to check things by visiting stores or showrooms, hence they prefer to study, compare and even purchase things on-line, be it a book, grocery or high end jewellery and now of course now its extend to real estate.

Let’s compare benefits and drawbacks for on-line purchase of Real estate. Before we do that let’s understand the real estate sector as a commodity in on-line market;

It involves a built product which is not standardized and varies from developer to developer, area to area ….etc. then there are other factors which influence this decision such as the location of property, the neighbourhood profile, the availability of social infrastructure, accessibility via road rail etc. making this further difficult is to evaluate the developer (his market standing and reputation i.e. brand image) also the cost involved here is much more than as compared to simple on-line transactions of an electronic goods purchases and so on.

What felicitates on-line involvement of customer is of course:

•  It does reduce the hassle of visiting the site office of developer physically and the property can be viewed on-line.
• With major property portals giving real time statistical data in terms of demand of the area, the prevalent rates there and availability; it gives consumer an opportunity to evaluate the purchase.
• A developer’s brand image can also be evaluated based on the testimonials available on-line (in other than his website J).

What restricts these decisions not materializing completely on-line is that:

• We Indians still prefer  the old formats of buying a home which involves visiting a broker, going to the site and experiencing everything first hand and that to in all the projects in short its lack of trust especially when your life savings are involved.
• There have been incidences especially with NRI customers wherein the company projection on-line was fantastic with no bad publicity at all and later it was realized the developer had changed its name for on-line presence.
• On-line gateway is what we Indians are not very comfortable. We need an immediate receipt for the payment made with an individual hand sign on their company seal.

 In short if I have to summarize this debate then it seems that the best for the customer is; do on-line research, short-list property but visit these short-listed property before making any transaction.