Friday 17 July 2015

Concept of Rent-To-Own Property

Many property owners these days are more than ever ready to offer their properties with Rent-To-Own option. The primary reason being there are more properties in comparison to potential buyers. Before moving into the house the potential buyer has to sign a document. According to the document, the property buyer usually has to pay an increased/specific amount of rent to the property owner till the time he/she finally buys the property. There are many Advantages of Rent-To-Own Property which are the following:

Advantages to the Property Buyer
Experience the Home & Neighborhood: The Rent-To-Own option gives opportunity to the buyer to stay in the property for a considerable time on rent. This way the buyer can judge whether his/her stay in the particular property would be pleasant or bad. The buyer can also experience the neighborhood overwhelmingly before finally deciding to purchase the property.

Enough Time to Arrange Finance: Buying property means making a life time investment! Getting the loans sanctioned from the banks is also at times very time-consuming. By signing the Rent-To-Own option contract, the property buyer gets enough time to arrange the money. The property buyer can also meanwhile sell the old house at the desired price and buy the new property when the full amount for buying the new property (in which he/she is living on rent) has been arranged.

Advantages to the Property Seller
Savings on Maintenance Cost: When a property owner gives a property to a buyer on Rent-To Own option, it becomes the sole responsibility of the buyer to take care of the property. The buyer also feels conscientious to maintain the property properly as it would be his/her future property.

Fixed Selling Price: The selling price is mentioned in the contract signed between the buyer and seller. In case in future, the property price falls; the property buyer would be bound to give the decided price as written on the contract.

The tenant wishing to purchase the property is usually allowed to stay in the property for a period of 2-3 years and rent has to be paid every month. The tenant may also be required, as per the contract, to make a non-refundable deposit to the property owner. If, due to any reason the tenant is unable to buy the property; the property owner has the liberty to sell the property to any other buyer.

Reference:
https://en.wikipedia.org/wiki/Rent-to-own
http://www.investopedia.com/articles/personal-finance/100714/renttoown-homes-how-process-works.asp
http://home.howstuffworks.com/real-estate/buying-home/rent-to-own-homes.htm
http://www.wikihow.com/Understand-Rent-to-Own-Homes-by-Example
http://homeguides.sfgate.com/rent-to-own-mean-8462.html

Tuesday 14 July 2015

Indian Real Estate

The Real Estate Sector has witnessed a significant growth rate in the past few years. The obvious effects of liberalization can be seen as rise in business opportunities and labor migration that further resulted in high demand for commercial and residential properties, majorly in the urbanized parts of the country. No wonder, just like the agricultural sector, the Real Estate Sector has a significant role to play in the overall growth of India and its habitants.

Majorly, the growth of Real Estate in India is directly associated with the evident improvement in sectors such as hospitality, entertainment and retail that include hotels, cinema theatres, resorts, etc. Besides, economic services including hospitals and educational institutions and Information Technology enabled services basically including BPOs, KPOs, Call Centers, etc. also play a significant part in contributing to the growth of the Real Estate Sector in India.

All in all, the Indian Real Estate Industry is going through a positive transformation. People who are directly or indirectly associated with the Indian Real Estate Sector are sure to get high returns in the near future since there are several favorable factors to capitalize on.

Some of the major factors that have greatly influenced the Residential Real Estate Industry in India are:
  • Easy accessibility of funding
  • Constant growth in population
  • Abundant employment opportunities in service sectors
  • Influx in the number of people migrating to urban areas
  • Increase in nuclear families
  • Increasing income levels and purchasing power
  • Feasible policies for the Non Residential Indians (NRIs) to invest in properties in India

Also, some of the major reasons for the increased demand for Commercial Real Estate can be stated as:
  • Liberalized legislative framework regarding investment in Real Estate Sector
  • Increase in the number of Multi National Companies
  • Foreign Direct Investment
  • Requirement of huge office spaces
  • Well-developed infrastructural facilities resulting in the initiation of significant construction projects
Considering that the Real Estate Sector of India has emerged as one of the most flourishing segments, it is judiciously the best time for industrialists as well as common man to look out for investing opportunities.

References:
http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=1073556
http://www.ibef.org/industry/real-estate-india.aspx
https://in.finance.yahoo.com/news/indian-real-estate-market-likely-fair-2015-101814123.html

Sunday 12 July 2015

Real Estate as an Investment Option

The investment we make in building or buying an apartment or any other building, etc. is called Real Estate Investment. Real Estate is one of the most lucrative Investment Options available. However, it is quite different from the other Investment Options in terms of the way the cash flow moves. Once a property has been acquired, it can be leased out to a tenant or sold at a higher price in order to generate returns.

Sources To Know About Real Estate Properties
  • Real Estate Agencies: Real Estate Agencies are the most readily available sources to know about Real Estate Properties. The advantage of using a Real Estate Agency is that they can also provide legal help during the course of the transfer of ownership.
  • Market Listings: Market Listings include a Multiple Listing Service or Commercial Information Exchange.
  • Wholesalers: Wholesalers include public agencies and bank departments.
  • Private Sales: The owner of a property may choose to sell it in a private sale.
  • Public Auctions: Foreclosure sales and estate sales are popular ways of obtaining property at low prices.
Advantages
The advantages of Investing in Real Estate far outweigh the disadvantages. This is why most people choose to invest in Real Estate. Even if the property has been bought by paying for it in installments, lending it out or leasing it would allow the invested amount to be recovered within a short duration. The property can also be sold at a higher price. The beauty of a Real Estate Investment is that even if the property lies unused, its value increases with time. Thus, reselling the property after a period of time is a practice which is also followed. The returns are also considerably high.

Disadvantages
The legal procedures and the extensive documentation are the first hurdles in the purchase of Real Estate Property. The amount that has to be invested is also very high. Thus, it is not always possible for all the sections of people to Invest in Real Estate. The maintenance of the property is an additional cost that has to be borne.


However, if the sum for the initial investment is available, Real Estate is a profitable Investment. A Real Estate Investment guarantees a high growth margin within a short period of time.

References
http://moneyfor20s.about.com/od/yourretirement/f/realestateinves.htm
http://archive.indianexpress.com/news/real-estate-as-an-investment-option/824542/
https://en.wikipedia.org/wiki/Real_estate_investing
http://forbesindia.com/article/investment-guide-2015/return-is-king-in-real-estate/39453/1

Friday 10 July 2015

Factors that Affect Trends of Real Estate Market

The developments in various fields have paved the way for the progress of Realty Market. The demand for land has increased drastically in the last few decades due to the expansion of urban settlements all across the world. This has led to rise of land rates of places which are experiencing rapid industrialization and urbanization. Though the land rates of most places across the globe hardly fall, but the changing trends of real estate market do have a significant impact on the cost of properties. Here we are listing a few major factors that affect the trends of Real Estate Market.

Location
Location is a major factor that affects the trends of the real estate market of any place. For instance, if a property is located at the heart of an urban settlement, it will naturally be more expensive than one in the rural suburbs. Therefore when you are investing in the Real Estate Market, location of the property is the prime factor that you need to consider. To earn more profits, invest in property which is located in an urban settlement and is near prominent centers like hospitals, schools, offices and government offices.


Human Settlement
Trends of a real estate market greatly depend on the human settlement in that place. For instance, if the population residing in an urban, sub-urban or rural settlement increases, naturally the land rates also experience a considerable hike. Human settlement is an important factor that you must keep in mind while purchasing a property.

Infrastructural Development
The infrastructural development in the vicinity of a property is also an important factor that affects its rate in Realty Market. A property located at the center of a town or city which has developed infrastructures like roads, flyovers and buildings will be more expensive than the one located in a less developed suburban or rural area. Therefore infrastructural development is one of the major factors that affect the trends of real estate market.


The above factors are quite enough to establish the changes in the realty market trend of any place. These factors could prove to be quite valuable for those who are willing to invest in the real estate market.

References:
http://www.investopedia.com/articles/mortages-real-estate/11/factors-affecting-real-estate-market.asp
http://uli.org/wp-content/uploads/ULI-Documents/Emerging-Trends-in-Real-Estate-2015.pdf
https://en.wikipedia.org/wiki/Real_estate_trends

Wednesday 8 July 2015

Why Prefer New Homes over Older Homes?

If you are in the search of a perfect house, you may be struggling with the new-old conundrum. While resale houses have various benefits, newly-built houses are high on demand. More and more buyers are beginning to prefer new houses over old to avail the excellent benefits they offer. Everything in the new house is well furnished and built according to the preferences and priorities of the buyer. These advantages give the newly-built structures an edge over old constructions. Here’s a quick overview of some benefits of new houses.

Design Your New Home Your Way

New homes give the residents freedom of selecting the cabinets, carpets, flooring and countertops according to their style and requirements. You can go for modern fixtures, fancy lighting and other options that you love. The decor of your new house will reflect your own style, not someone else’s taste.

New Products under Warranty
A used home is likely to have tried products that may need replacement. Whereas your new home comprises brand new products that are under guarantee period. These latest products offer you years of reliability.

Energy & Cost Savings
Compared to the houses built five years ago, today’s houses are far more energy efficient. The newly-built homes come with energy efficient walls, windows, roof, doors and even electrical appliances. The special coated windows and doors save energy and money by preventing conditioned air- cool air in summer and warm air in winters- from escaping.

Resale Value
You may plan to live in your house for many years but at some point, most people sell property due to variety of reasons- moving across town or moving to a bigger house to accommodate the members. Your home will no longer be new when you plan to sell it.  In this case, a 5 year old house is more desirable than a 20 year old house.

Advanced Technology & Design
It’s possible to replace single-pane windows with insulated ones. It is also possible to replace appliances and cabinets. Though, it is very expensive. But getting high ceilings in old house is next to impossible. These reasons prove that installing advanced technology and design is easier and cheaper in newly-built homes as compared to old constructions.

New Home Feel
A used home will give someone else’s vibe, not yours. You may be willing to scrub the stained countertops or learn to love strawberry pink cupboards, but more and more people prefer the new feel of the house.

Safety Features
Unlike old houses, newly-built homes come with fire retardants such as carpeting and insulation. Builders also install smoke or carbon monoxide detectors to ensure the safety of the new construction.

References:
http://www.talktalk.co.uk/money/features/home-pros-and-cons-of-new-build.html
http://www.duvancohomes.com/Advantages-of-Buying-New-over-an-Older-Home
http://www.zillow.com/home-buying-guide/buying-a-new-home
http://freshome.com/2014/06/17/10-things-nobody-tells-buying-older-home

Sunday 5 July 2015

A Feng Shui Guide to the Color Scheme of your Home

Feng shui of color is a fascinating topic to explore, as well as a very easy way to bring great energy into your home. Color is light, and light is what we absolutely need for our well being. So according to feng shui, the more colors you have in your space, the more vibrant energy you are creating.

The Premise of Feng Shui: The foundation of Feng Shui is based on the principle of people getting affected by their surroundings in positive and negative ways. It is an ancient Chinese art where you manipulate and organize your surroundings in such a way that it attracts positive life energy, or chi, allowing it to flow unobstructed through your body and environment.

When you decorate with Feng Shui, you work on the movement of energy unblocking areas so that energy is able to move in a balanced manner around your entire home. There are a number of Feng Shui décor pieces that can be used for this such as decorative mirrors, water bodies, plants, colors, sounds, smells and more.

When you are taking Feng Shui principles into consideration, make sure that they correspond to the Bagua, which is a set of 8-diagrams related to Taoist cosmology and is a color scheme that you will need to work with. For example, when it comes to wealth and family, you will need to include elements of wood in your décor such as plants with broad healthy leaves.

Using blue wallpaper and carpeting or soft furnishings is a good idea as they are representatives of water and water nourishes wood. Using fish in Feng Shui, as a decorative element, is symbolic of wealth.

Fame and reputation are represented by fire, which of course doesn't mean that you set the place on fire. Rather, including a touch of red would be nice. Using red and fire elements will bring you luck and recognition.

You could use a warm peach or maroon shade on your wall and have decorative furniture with shades of red. Tone the colors down as per your requirement as they don’t really need to be all that bright. Use multiple light fixtures such as floor lamps and decorative candles.

Consider including natural crystals, terracotta and tiles in your decor to encourage better relationships and enhance your knowledge areas. These are representative of the earth element in Feng Shui. Hues of orange, yellow, and brown will work ideally. Mixing fire elements with earth will give your decor an added punch.

Including metal chimes is good for children and for enhancement of creativity. Wrought iron is a great choice. In Feng Shui, it is believed that gold and silver bring good fortune as well. For rooms related to this, use white or metallic colors and include a few earthy tones. Always have music of some sort playing in the background.

The area in your home where you work, may be characterized by a small water body. Too much water is representative of flooding. Have a small water fountain or an aquarium near you. Add in a painting of a water scene as well.

Color is like music, nourishing and uplifting, and the more colors you harmoniously absorb throughout the day, the higher is your sense of well-being. Decorating through Feng Shui principles is all about feeling the space and following a few basic Feng Shui ideas.

References:
http://feng-shui.lovetoknow.com/Feng_Shui_Colors_for_Rooms
http://www.hgtv.com/design/decorating/design-101/a-feng-shui-guide-to-color
http://fengshui.about.com/od/fengshuicures/qt/fengshuicolor.htm