Want to Buy Real Estate? Must Read!

Whether you are willing to buy a residential or commercial property, you need to be very cautious because it’s probably one of the biggest investments you do in your lifetime. Investing in real estate means you’ll be putting a huge portion of your hard earned money into it, so you need to consider some factors before finalizing the property you want to buy.

You should buy properties that enhance your quality of living along with fulfilling your home-ownership dreams. To make sure that you invest your money in the right property, here are some factors that you need to consider:

1. Find a Registered Real Estate Developer

This is the most important factor while choosing a real estate property. There are many instances where buyers have invested in real estate properties that have never materialized. Many people who invested in properties almost five years back still did not get possession of their properties.

So if you want to invest safely, you should always look for registered real estate developers who work according to a certain code of conduct.

2. Work with Reputed Builders

This is another important aspect when looking for top real estate companies. Always carry out background checks of the real estate developer you are willing to work with. Refrain from working with developers who have been involved in various legal issues.

3. Location

Location of a property, whether commercial or residential, is very important. Make sure that the property is located close to hospitals, schools, work area and such other conveniences. If you are willing to buy commercial property, make sure it is located close to the main transportation points.

4. Check the Exact Carpet Area, Amenities and Facilities Offered

Most of the real estate developers would quote prices based on the total area of an apartment, but you should insist on paying the price depending upon the exact carpet area. Apart from the carpet area, you should consider the amenities and facilities offered. Check whether there are 24 hour water and electric supply, ample parking space, generator backup, etc.

5. Registration Fees

Apart from the actual price of the property, you will also have to pay registration fees, which depends on the value of the property. So, the amount of the registration fees and related expenses should also be considered.

A Final Thought

Buying property is one of the biggest investments in one’s life, so you should be extra cautious so that you don’t get conned. Always work with top real estate companies who are registered with some real estate organization or the government. The right decision will bring back a lot of benefits while a small mistake can make you repent for the entire lifetime.

References:

http://realestateinyourtwenties.com/blog/seven-must-read-books-for-real-estate-investors/
http://www.jagoinvestor.com/2010/08/tips-while-buying-house-real-life-experiences.html
http://www.businesstoday.in/cover-story/tips-to-buy-a-shop-retail-space-property/story/197994.html
http://www.globalpropertyguide.com/Asia/India/Buying-Guide

Investing in Commercial Property – A Profitable Deal

When it comes to a secure form of investment, Real estate tops the list. And the best thing about this form of investment is that it avails the long term benefits for investors. When we specifically talk about the different kinds of property options available in the market for investment purposes, Commercial Real Estate yields great benefits.

Benefits Of Investing In Commercial Real Estate
For people, who have spare cash & do not have any immediate need for it, investing in commercial property would be a great idea for them. Investing in commercial real estate provides a steady source of income & also has a great scope in future as far as rent potential & property value is concerned.

• Excellent ROI:-
  As per the results revealed by the recent studies conducted, the rate of returns associated with real estate investment is much higher than that of share & bond market investments. There are several types of commercial property available in the market to choose from. Investing in such properties is a smart way of protecting oneself from long term inflation.

• Steady Source of Income:-
  By leasing out their commercial property to tenants, the property owner can ensure that they have a reliable source of income. A property owner is liable to be paid the lease amount, specified in the agreement by the tenants. This income is not affected even if property prices fall during the lease period. The income may increase after a specific time period, if so mentioned in the contract, or if the lease period expires.

• Higher Rates of Income:-
  When compared, investing in commercial real estate yields a higher rate of return than the investment in other kinds of property. Also, yet another appealing factor that works in the favor of commercial property investment is that, at the same level of risk investors can expect to earn higher rates of returns.

The equity of the property can be enhanced with proper maintenance & by selecting suitable tenants to lease out the property. By investing in good commercial property, an investor can ensure that he has a tangible asset that will serve as a shield against inflation & yield great profits at the same time.

References:

http://toirel.blogspot.in/2012/09/things-to-consider-before-buying.html

https://goo.gl/8uTTWZ

http://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html

http://www.investopedia.com/articles/investing/052215/top-tips-investing-commercial-real-estate.asp

Points to Note while Buying Property

Buying real estate is a popular kind of investment as it provides high future returns. The motto behind buying a property could be different but it is a major financial move. Whether you are planning to buy the property as part of your investment plan or moving in, there are numerous things to consider before you make the leap. You might come across plenty of alluring property projects that are going to boom in the coming years but be very careful before you invest as a bad investment could mean a significant loss in terms of money. In order to avoid such a situation, it is always better to prepare a checklist about the kind of property you would like to invest in & choose a property option that meets the most number of criteria on the checklist.

• Location – The location of property is an important thing to consider before buying. Is it located close to schools, markets, hospitals, etc? Consider the average time taken to reach all these places from the property?

• Accessibility/Connectivity – Is the property accessible? Is it well connected to other important locations across the city? This is important because you or your spouse would need to travel to your office/shop on a daily basis; the kids would have to go to school/college, etc. – for all this proper connectivity is a must.

• Neighborhood – Is the property you are considering to buy located in a safe neighborhood? This is important to ensure your personal safety and that of your family.

• Legal Regulations – Does the property adhere to the legal regulations outlined by the concerned authorities? Was it built as per the building code? Have all the previous dues e.g. property tax, etc. been paid?

• Budget – Is the price being quoted for the property within your budget? Outlining the budget is an important step that should be undertaken before you actually start looking for viable properties. This narrows down the possibilities and makes your search more effective and less time consuming.

These are some of the essential considerations that should be kept in mind while buying new real estate. By preparing this checklist, you can ensure that you do not end up investing in property which does not meet your requirements efficiently.

References:

http://www.selfgrowth.com/articles/points-to-consider-when-buying-property-in-mumbai

http://timesofindia.indiatimes.com/business/personal-finance/Nine-things-to-keep-in-mind-while-buying-your-first-house/articleshow/24456559.cms

http://www.moneysavingexpert.com/mortgages/house-buying-guide

Why Real Estate Investment?

Real estate investing involves purchase, ownership, management, rental and/or sale of real estate for profit. Stocks, bonds, mutual funds, investments, and real estate - though the list seems to be endless, making a choice is still considered to be a tough task. Given below are some of the reasons as to why real estate industry is believed to be the king of investment.

• Inflation Hedging: When the economies grow and expand, the demand for the real estate industry consequently increases along with the increase in rentals and that translates into higher capital land prices. India, being a developing country, requires less amount of investment but much greater returns.
• The Positive Cash Flow: It is the real estate industry that generally gives you huge investment options wherein you could receive a guaranteed and tangible income throughout the year. This is what exactly a positive cash flow is.
• Scope of appreciation: Capital appreciation is the increase in market value of the asset over time, realized as a cash flow when the property is sold. The real estate industry is generally considered to be one of the safest options in a long term perspective. Industry Experts in the realm of real estate industry agree that in a period of ten years the real estate industry has seen the highest scale of appreciation in comparison to any other class of investment. As communities grow, so does the value of your property. History has shown that real estate prices have continued to steadily increase over the years. The longer you hold onto your investment property, the more potential you have to get a high return.
• The Tax Benefits: Real estate sector is one of the major contributors to the country’s GDP. And since the government wants to promote affordable housing and housing for all, the investments in real estate are bound to give you tangible tax benefits of as much as INR 1,00,000 in the upcoming year.
• Leverage: Leverage here in simple terms or in terms of the real estate industry would mean the ability to use the borrowed capital in order to ensure a potential return on investment. Real estate industry is the only possibility among various investment classes that allows for leverage. For example by paying a minimum of 20% cost of the property, you as the owner could control the income from the property. The remaining 80% can be availed from banks in the form of home loans.
• Diversification in the investment portfolios: Having a diverse investment portfolio would only help you in diminishing the risks and increasing the returns on investment. Assets which are not co – related to each other in the same portfolio would decrease risks.

Real estate is a distinct asset class that is simple to understand and can enhance the risk and return profile of an investor's portfolio. On its own, real estate offers competitive risk-adjusted returns, with less principal-agent conflict and attractive income streams.

Real Estate Trend in India

It is said that land turns into gold if left for some time. Investment in land and housing never disappoints you. With the mounting economy of India, there has been an immense boon in the real estate sector. The trends in real estate vary in accordance with modification in the government policies as they are directly related to each other.

Here we have figured out the Latest Trends in the Indian Real Estate Market.

LATEST TRENDS IN REAL ESTATE

The trends that have brought changes in the Indian real estate market and have made it more profitable are:

FDI Policy:

Government of India has adopted a significant stand regarding FDI (Foreign Direct Investment), which has drawn a number of countries towards investment in the Indian Real Estate. India has been able to hold the position of second-most favored FDI destination by successfully displacing U.S.

Easy Banking:

Due to relaxation in the rates of bank loans, more people have started to invest in real estate. Also, formalities in the banking procedures have been reduced considerably resulting in ease for the buyers & investors.

Recovery and Profit

The construction of various residential properties, commercial premises, educational institutions, recreational facilities etc. has generated competition among real estate companies, resulting in cheap rates of properties. In India, buying a property for cheap and selling it at a higher rate always recovers your investment and provides you with a decent profit.

Live Property Valuation Index:

It is Property Valuation Index, which is being developed by NAR (National Association of Realtors). It is an index created on similar lines as the Stock Exchange Index, which will reflect the assessment of properties in various parts of the country. This index will serve as a guide to the real estate investors.

Global Interest:

With the rise in economy, more and more global investors are setting foot in Indian Real Estate. A London based company is making plans to host an event that will showcase various residential projects of India to the British investors. This will be a boon to the realty market.

The growth of real estate is directly proportional to the rise in the economy. Factors that lead to rise in Indian Economy are:

• The entirely positive attitude of the Indian government has played an integral role in bringing about a sudden increase in the Real Estate Sector.
• The interest of people in cities other than metro has also lead to rise in the real estate sector.
• The booming mall culture has also added immensely to the rise of the economy and hence the real estate sector.
• Rise in Income of the middle class.
• Boom in IT and ITES sectors.

Because of these reasons, Indian real estate sector is experiencing golden and prosperous days, making it a favorite destination for real estate development and investment around the world. The coming years will see more expansion in this sector, providing maximum profits to the investors.

References:

http://economictimes.indiatimes.com/markets/real-estate/realty-trends

https://in.finance.yahoo.com/news/indian-real-estate-market-likely-fair-2015-101814123.html

http://forbesindia.com/blog/moneyball/mumbai-real-estate-prices-are-down-not/

http://www.moneycontrol.com/news/real-estate/is-mumbais-real-estate-market-picking-up-yes-say-experts_1070946.html

http://www.makeinindia.com/policy/foreign-direct-investment/

VARDHMAN GROUP

Vardhman means growth and we have consistently scaled new heights over the last 4 decades of our existence. At Vardhman Group, we know that we are a cluster of self-motivated individuals with interests in various industries including real estate, infrastructure, finance, food, entertainment and hospitality. And today, we continue to scale-up new heights under the dynamic and visionary leadership of Shri. B. M. Vardhan. The Company has traversed a path of steady growth & expansion and has posted increasing turnover and profits year after year. The systems have been strengthened and new processes have been added.

Shri. Ramesh B. Vardhan and Shri. Rajesh B. Vardhan are the pillars Of Vardhman Group. Vardhman Developers Ltd. is the flagship company of Vardhman group. Vardhman constructions have always given value for money to its customers. Vardhman buildings are built with quality construction. Vardhman Builders & Developers have given Mumbai many prestigious projects and buildings.

Vardhman Group is a revered name in the real estate industry and has become synonymous with luxury living and engineering sophistication. It is developing projects across major cities in India. And this development covers almost all asset classes – Multi – User, Self Sufficient Township, Residential buildings and Towers, Commercial Premises, Malls, Retail Outlets; amongst others. ‘Vardhman Builders and Developers’ has always adopted new technologies for its construction in Mumbai and Maharashtra to create landmark buildings and projects. All our constructions are done with quality material. ‘Vardhman builders and developers’ has always thought ahead of time to bring changes in the business to provide its valued customers with better living. It is currently developing a number of properties in Mumbai city. Vardhman fantasy – the world’s most affordable and entertaining theme cum amusement park, the dream project of the Vardhman group was designed to give India and the world a place full of entertainment.

True to its name which means Growth, the Group has grown exponentially over the last 4 decades of its existence. The company is one of the fastest growing entities in the realty sector with a difference that offers luxury for reasonable costs, excellent customer care levels with highest customer satisfaction index and the highest imaginable standards for the welfare of its staff, society as well as for the environment. Customer satisfaction and value for money is the motto that drives the Vardhman Group.

Apart from real estate, Vardhman has also penetrated into the infrastructure industry in the form of Vardhman Concrete Ltd. (Formally known as Stresscrete India Ltd), an infrastructure company. The company specializes in precast, prestressed technology and is involved in the construction of bridges, FOB, ROB, Warehousing housing for government and Semi – government bodies and institution.

The Group also has a registered NBFC – Vardhan Capital & Finance Ltd. Plans are already in line with the vision to make it a financial power house with interests across the consumer, corporate and wealth market spectrum. They also have a company which is an active member of the commodity market registered with the MCX.

Vardhman has recently ventured into the entertainment segment by bringing to Mumbai the World’s Most Affordable Theme– Amusement Park called ‘The World of Vardhman Fantasy’. The park is a visionary landmark converted into a dreamland with 7 fantastic zones based on international themes. It holds a beautiful fountain at the heart of the land, a boating lake, a food court, amusement rides and replicas of the 7 wonders of the world. The park caters to every age group and is a complete family zone.

Vardhman group have also forayed into the food, entertainment and hospitality sector with the launch of 5 food brands– Proudly Thambi, Chini-Mini, Farmaeesh, Causeway, Elistano, and a café Brownville. Vardhman group is also planning to enter the retail format of food industry by making its presence felt across various cities.

Vardhman fantasy has bagged the Award for the Best Amusement cum Theme Park by Accommodation Times. Vardhman group has also bagged various awards for the it’s prefectural work.

Our corporate Philosophy and guiding Principles are that the blueprints of buildings should not be made in isolation but in harmony with the needs, dreams and aspirations of those who will inhabit them. We believe that professionally managed technology, driven with right ideas, innovations and actions always bring in the desired growth. Accordingly, we are roaring to capture diverse frontiers and imprint achievements into our success saga. 

Our commitment to quality and ethical business practices are second to none. An important off shoot of this thinking extends into numerous social causes that we support. We believe we can contribute to a better tomorrow.

INDIAN REAL ESTATE MARKET

The term real estate refers to land and any physical property or improvements affixed to the land, which includes houses, buildings, landscaping, fencing, wells, etc. 

The real estate sector in India has come a long way by becoming one of the fastest growing markets in the world. It comprises four sub sectors- housing, retail, hospitality, and commercial. While housing contributes to five-six percent of the country’s gross domestic product (GDP), the remaining three sub-sectors are also growing at a rapid pace, meeting the increasing infrastructural needs. The real estate industry’s growth is linked to developments in the retail, hospitality and entertainment (hotels, resorts, cinema theaters) industries, economic services (hospitals, schools) and information technology (IT)- enabled services (like call centres) etc. and vice versa. 

The real estate industry in India is in a promising stage. The sector happens to be the second largest employer after agriculture and is expected to grow at the rate of 30 per cent over the next decade. A growing migrant population due to increasing job opportunities, together with healthy infrastructure development, is underpinning demand in the region’s residential real estate market.

Real estate contributed about 6.3 per cent to India’s gross domestic product (GDP) in 2013. The market size of the sector is expected to increase at a compound annual growth rate (CAGR) of 11.2 per cent during FY 2008-2020 to touch US$ 180 billion by 2020. 

The Government of India has allocated US$ 1.3 billion for Rural Housing Fund in the Union Budget 2014-15. It also allocated US$ 0.7 billion for National Housing Bank (NHB) to increase the flow of cheaper credit for affordable housing for urban poor.

The residential segment of real estate has seen tremendous growth in recent years owing to the continuous growth in population, migration towards urban areas, ample job opportunities in service sectors, growing income levels, rise in nuclear families and easy availability of finance. 

Recent years have seen the Indian real estate sector grow, especially the commercial real estate segment. According to a study by Knight Frank, Mumbai is the best city in India for commercial real estate investment, with returns of 12-19 per cent likely in the next five years. Bangalore and Delhi-National Capital Region (NCR) come second and third on the list, with returns of 12 per cent and 8-11 per cent respectively. Delhi-NCR was the biggest office market in India with 110 million sq ft, out of which 88 million sq ft were occupied.

With the government allowing 100 percent foreign direct investment (FDI) in this sector, the number of foreign firms owning real estate projects in India has also increased. 

The Indian real estate sector continues to be a favored sector for investments from international as well as private investors. In the upcoming years, the residential as well as commercial segments of the real estate industry is set for major growth, aided in no small part by the government’s plans and initiatives to boost this sector. 

Excise duty reduction on cement and steel will lower project costs and expansion of the interest subsidy on loans will boost developers’ interest in this segment. Moreover, tax measures such as increasing the limit of interest deduction on home loans will provide necessary motivation to consumers to increase buying activity and revive demand in the value and affordable segment. Further, demand for space from sectors such as education and healthcare has opened up ample opportunities in the real estate sector.

Emergence of nuclear families and growing urbanization has given rise to several townships that are developed to take care of the elderly. A number of senior citizen housing projects have been planned, and the segment is expected to grow significantly in future. 

Growth in the number of tourists has resulted in demand for service apartments. This demand is likely to be on the uptrend and presents opportunities for the unorganized sector.