residential_property

With appropriate budget and clarity on location, you can easily select the best residential property for yourself. At some point of time in our life, we all dream to have perfect home, but it’s not an easy task to find the perfect residential properties which synergize your all requirements and needs. If you are planning to buy residential property, so it may take to plugging into lifetime savings with countless and long iteration of property search as well as discussions and negotiations after identifying the correct property. But there are few factors which can simplify your over all property search as well as it can help the end users to identify the best residential property.

While selecting any property, budget plays an important role as it is social and economic identity of humans in society. However; basic and most fundamental step towards property selection exercise is budget and location and no one can underestimate the importance of them. Its helps in the management of one’s financial resources and effective utilization of them. However; it also helps in the filtration of right kind of property from wide range of property options to selected properties. While deciding the budget you should be careful, because if you are running with lower budget, so you might end with the selection of poor property which can cause inconvenience and dissatisfaction in future. Since each and every property needs high amount of investment, so sometimes you find it difficult to revise the decision after compromising with quality, location and budget of the property. In the same way fixing an overall budget which falls off the threshold limit of one’s financial capacity will result into the waste of time with unwanted property search exercises. International quality, beautiful landscaping, wide range of state of the art facilities with correct combination of amenities can dazzle the buyer, but high property prices will not take these things anywhere. Whereas; if you are looking for lavish homes and you already have certain expectation which is very high, so in later stages of property selection it will be tough for you to pull down the expectations.

Location of property:

Location is the vital element in any kind of property search and selection. It serves many objectives, as we all have to fix the set of  needs and requirements like; distance from office, schools, market and availability of malls and other social amenities such as; hospitals, banks, and more in the nearby vicinity. So it’s recommended for the end users to do a proper calculation with these parameters before making the final decision about property selection at key locations. In the same way you should keep in mind that significance of residential property purchase in respect to the property investment objectives should matters a lot because it help to decide the ROI. It is advisable to select the appropriate location to robust social infrastructure in the form of colleges, schools, hospitals and restaurant. Locations connectivity is key in commercial markets that are crucial to get the high ROI through higher demand.

Facilities and amenities:

As per the need and requirements, the configuration of facilities and amenities can alter, based on the personal and family needs, you can select the right number of bedrooms and home size. However; its recommended to analyze the exact size of the home in respect to that family size. While choosing the size of home make sure that you are analyzing the property size with carpet area because it defines the exact area within the walls of a house however; other specifications such as; most of the time floor area and built up area can give the misleading results. However; the buyers should understand that available range of amenities and significance f property matters a lot. These days apartments are coming up with large range of amenities such as; swimming pools, gymnasium, 24*7 electronic surveillance, Health zones, Yoga center, food joint and more.

Credibility of real estate developers:

Before buying property its your responsibility to confirm the credibility of real estate developers in the form of past construction work, experience, financial strength and ability to manage the multiple projects as well as track record of past projects. Because of economic uncertainties in past, as smart buyer you should emphasis on purchasing a property from top quality real estate builders. It will ensure you that you will get better ROI in future.

Time for final decision:

If you are doe with property selection at right location and within your budget range, so the next step is to estimate the desired time to move in the property. Every time you will find different property at different levels such as; pre launch, under construction, ready to move and more. So its recommended for you to know the correct status of project and consult with the real estate developers to know the desired time to move in property.

Property selection and financial angle:

In present, more than 80 per cent of the property price can be found by home loans, and its great alternative to finance someone’s dream home. But you should choose the home loan option carefully as it comes with certain limitations so you should try to minimize the cost and the risk of home loan. Before applying for home loan, as buyer you should check your credit score if you are loan defaulter and according to that you should apply for home loan. Most of the time banks and financial institutions provide hassle free borrowing and for that all you need to showcase your stable employment track record to make sure that you are able to pay the monthly installments.

As a buyer it’s your responsibility to select the type of interest such as; fixed or floating interest. The rate of interest plays an important role in the calculation of EMI and it also important for the financial planning of the buyer. In 90 per cent cases, latter is preferred as it is perceived to be cheaper.

Under-construction _ property

Whenever any end user buy property from under construction project directly from investor, so its means that indirectly he is willing to enter into the multi-party transaction. And sometimes it can be complicated, so it’s recommended to know some facts before entering into it. If you are buying property from investors, so deal will not the same as you do while buying property from real estate builders. If any property investor want sell his own under-construction property to any buyer or end users to earn profit, so he have to transfer all the property rights to new buyer in exchange of money. However; whole transaction needs builder to be the part of deal as in starting buyer will neither get the possession of the property nor all rights about the property. This tripartite deal known as the “Assignment Deal” (Assigner, assignee and builder).

Most of the people are unaware about these kinds of deal because its bit complicated as it involves multiple transactions. Sometimes it become stressful and so people need to get alert before entering into any deal with investors. Most of the buyers (assignee) don’t know that they have to deal with other parties too, if assigner or seller has taken loan for same property, so it could be bit more complicated because formalities will also includes closure of the assigner’s loan. Before entering in these kinds of deal you should ask these questions;

1. How much money for property are still dues?

You can ask to builder to show up the statements of account, where you will be able to see the made payments with dates and you should also get the instrument numbers to get the lending. If there is any unaccounted payment, so never consider it until builder is showing you receipt.

2. At the time of inception of the project, what was deal cost between builder and investors?

For fresh buyers it is important to know that actual price of deal at the inception of the projects and he or she should also get the documents such as; copy of deal sale agreement or sale agreement between seller and the builder. If you are planning to take loan, so you need to submit these documents. However; some seller never disclose these facts, but you need to understand that it’s mandatory.

3. There are any pending dues or not?

Ask the seller that there are any pending dues or not because it can attract the large amount of penalties during possession if you will do delay in paying those dues. And in that case builder will charge on new buyer with interest rate.

4. If assigner is struggling with home loan problem, so clear that he will pay or new buyer will pay that home loan.

If seller has taken the home loan while buying same property from builder, so you need to close the loan the issue. You can do it in three ways;

• Seller pays his all funds.
• Seller asks buyer to pay the whole loan as a part of agreement.
• Buyers bank pay to the seller banks. This process is not so easy because product is not available with banks at this point of time.

5.  There are any other loans or conditions with property?

If property is attached with any other condition or loan, so better to clear the loan issues and conditions because if seller will not disclosure these things so you will not know about it. In India, we can search for loan and property of individual, but still there is no facility to search for the collateral created in a property.

6. What should be the penal clause, if assignee backs out from dues?

•    No fund arrangement from self-source
•    No loan eligibility 
•   Any other personal reason

It doesn’t seems to important at time when everything is going good, but its better and recommended to include it as a clause in Memorandum of Understanding to get clarity and basic understanding.

7. Who will be responsible to transfer the fee to builder and at what stage?

In normal conditions, sellers are used to pay the transfer charges, but still there is no rule back so better to clear this because sometimes buyer & seller both avoid paying the changes or they start bargain. The most important thing which matters in transaction is speed through which all parties pay their fees or amount because there will be following parties;

• Assigner
• Builder
• Assigner’s lender
• Assignee’s lender
• Assignee

Top three cities to invest

In past three years it has been noticed that property prices increased sharply in most of the major cities in country and Bengaluru, Chennai and Ahmedabad are among top three cities from where one can draw the maximum ROI. While analyzing the property price figures for the duration of Jan to Mar 2015 quarter it is clear that the areas such as; Nungambakkam in Chennai, Silk Board in Bengaluru and Ghatlodiain Ahmedabad witnessed the highest price appreciation, which is the main reason of joy for those who have invested in above mentioned areas. However the analysis is following;

1. Area: Nungambakkam

City: Chennai

Due to latest infrastructure development work and other large projects in favor of Nungambakkam, its only re-development of old projects which led the property price to rise by the value of 8.18 per cent in Nugambakkam in last three months. Retail outlets, Government quarters, hotels and restaurants, are the main attraction of the area however the Nungambakkam is oldest habituated locality in Chennai. Most of the real estate builders have launched their new projects in the region however for some real estate projects construction work is underway, as per the statement of Velmurugan V, a real estate agent from a broker firm.

As Nungambakkam is close to city centre so it is easily connected with rest of the city however; Nungambakkam is mostly housed by the elites of the Chennai, NRIs and HNIs. Here property values in the range of Rs 14, 000 to 18, 600 per sq ft and it makes the Nungambakkam one of the premium areas of city.

2. Area: Silk Board

City : Bengaluru

In past three months the property prices for Silk Board have increased by 10.45 per cent. The main question is that what is working in the favor of this locality? So perfect answer is it’s all about strategic location and connectivity with Outer Ring Road as well as IT areas like; Electronic City, ITPL, and Marathahalli.

Due to being the premium and most busy region in the city Silk Board is famous for arguably being worst traffic spot, but in near future the place is going to witness the several infrastructure up gradation. Everyday millions of people pass through the CBS (Central Silk Board) junction including both public and private transport which is the main reason for long traffic jams.

However the construction work for Elevated Expressway is underway and it is expected that this Expressway will reduce the travel time between Electronic City and Silk Board Junction and it will also help the nearby areas. Current property rates in the area are around Rs 2, 600 to 3, 500 per sq ft.

3. Area: Ghatlodia 

City: Ahmedabad

Ahmedabad is not the metro city, but still the localities of Ahmedabad are able to provide good return on property investment as here few localities are giving strong competition to the premium areas of metro cities and for that the best example is Ghatlodia, as this locality has witnessed more than 8.11 per cent price appreciation in last three months duration.

Here most of the potential customers are the professionals, which are moving in city due to its relaxed lifestyle and affordability, as per the statement of Pragnesh Korat, who is real estate expert in Aakar Estate. The main advantage of Ghatlodia area is that this area is situated near by SG Highway, which directly connects the SP Ring Road through Science City Road. Ghatlodia area shares neighborhoods with some of the most develop areas as well as expensive localities such as; Naranpura and Memnagar. Current property rates in Ghatlodia area are approx. Rs 3, 300 to 4, 100 per sq ft.

New Real Estate Regulatory Bill have reasons to enjoy end users and investors

Now with new Real Estate Regulatory Bill, which is supposed to approve in current meetings by the Union Cabinet, end users and investors have several reasons to enjoy and feel confident about property investment matters, when it comes to concern on change in project layout and delay in delivery layout among others. Real estate developers are also expected to cash the benefit with this well improved accountability and transparency as it will help them to flow the institutional funds into real estate sector.

It is expected that the number of issues between real estate developers and home buyers because of delay in project will come down as this Real Estate Regulatory Bill making it mandatory for all the real estate builders to maintain more than 50 per cent of customer advances in an account which will be known as escrow account within the 15 days of time, once they will receive the money from home buyers. However some of the real estate experts are viewing the minimum balance to maintain the proper balance in an escrow account to reduce by 50 per cent.

As per the statement Chairman & Country Head of JLL India ; Anuj Puri, “The 50 per cent mandate will be able to put the enough restriction on real estate developers to divert different funds to ensure the better completion records, whereas; the funds diversion is not only reason for delay in any real estate project completion and apart from that Real Estate Regulatory Bill need to cover the civic authorities and government bodies too. Puri more added that, this new amended Bill will have very positive affect for introducing the better governance, timely management and transparency, but non-inclusion of government authorities are the major contributors to slow down the approval processes, however they remain issue need to be addressed.
All consumers need to remember that the entire regulator will take at-least one year to turn it into reality. On Wednesday, the Union Cabinet had clear the bill, and it will become an Act once it will get tabled and approved in the current season of Parliament. For more transparency and better governance, state need to set-up the regulatory bodies with new bill while setting up a web-based online registration facility for the period of one year to set-up the governing bodies. Real estate developers are agree with current bill as it is introduced to help the transparency and better governance in real estate sector.

After that regulator will provide a log-in ID for every project, without which builder will not be able to sale the flats of apartments in the project. However the regulator should have to scrutinize all the legal documents for project, so that it can cancel the registration if they will find that project documents are not in the proper order.

Better transparency, government policy and accountability will provide the fair opportunity to home buyers and developers both and it will also help the real estate developers to gain the access to collect the funds however it will also help to lower down the property prices till certain extent. As per the statement of Shishir Baijal who is CMD of Knight Frank India, it is expected that it will enhance the credibility in real estate sector and developers as most of the developers will be in situation to borrow funds at better interest rate, which will help them to rationalize property prices in coming months.

The penal of provisions has proposed law, which will add the payment of 10 per cent of project cost for non-registration as well as payment of additional 10 per cent of project cost which will be complied for the duration of three to four years. If the disclosure of information will be wrong or it will not in the complying with the disclosures and other essential requirements and payment of 5 per cent of project cost will be imposed. The Real Estate Regulatory Bill provides the regulatory authorities to come in power so that they can cancel the project registration in certain cases of persistent violations and they will also have a power to decide on further course of action in reference to the completion of all real estate projects.

Infrastructure development Mumbai

In past few years, Mumbai and other metro cities have emerged as the most preferred destination for property investment. After the budget of 2014 the ball of real estate sector is spinning in positive direction because new FDI norms, implementation of REITs and allocation of new funds for infrastructure development. Recently, Indian government has made it clear that there solo objective is to provide the affordable housing units and due to that they are implementing the new policies, which will be helpful to boost the economic growth. Property in Thane and Property in Mumbai is the one of the most preferred destination of investors and high end users because Thane and Mumbai is the most commercial areas and we all know here investment means more than 40 per cent ROI. It’s not easy for common man to own a Property in Thane and Property in Mumbai due to high budget, but now real estate developers are planning and constructing the new affordable housing units for middle class and all this is possible due to reduced size of apartments.

According to real estate experts, there are some areas in Mumbai, which will see a positive momentum and can play a vital role in the real estate market of Mumbai. Most of the Property in Thane and Property in Mumbai are comes in high budget, so just clear the pending inventories, developers are now ready to negotiate on the price and providing some great offers, so that they can attract the pool of investors and end users and after getting the money they will be able to invest in the new real estate projects. Property in Thane and Property in Mumbai are consequently growing and expanding with new commercial and industrial opportunities. In Thane and central Mumbai buyers have a option to purchase the 1BHK, 2BHK, 3BHK, 4BHK and luxury apartments in the price range of 25 lakhs to 2 crores, here apartments size vary from 1,000 sq ft to 3,500 sq ft. Mumbai is famous in all over the world for their super-luxury projects and due to that this city is attracting the Indians as well as NRI’s for investment.

Property in Thane and Property in Mumbai why are the hot-spot? Because of high returns and luxury apartments? The answer is both, realty market in Mumbai is attracting the investors and end-users of premium segment as well. But due to high cost it’s not a cup of tea for everyone to won a Property in Thane and Property in Mumbai. Thane and Mumbai fetch the high rates of appreciation due to metro connectivity, well developed road network, fast-paced development in infrastructure and availability of other basic amenities such as; colleges, schools, super market, shopping malls, banks, ATMs, hospitals and other places. In present even some people are ready to take the loan just for making the investment in these reasons because they know that this investment will bring the good returns in future.