Your guide to buying a property

Have you evaluated your requirements? It is very important for a buyer to have a clear head in terms of his/her requirement. Ashwini Bhardwaj, a local real estate agent in Delhi says, “Many a times buyers look for king size apartment and in some cases the requirements are that of big garden, modular kitchen, calm locality, affordable budget and the list goes on. 

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It is extremely significant to ascertain their needs and then start looking for home.” You must be clear about the size, type and the kind of apartment you are looking forward to before investing.

New or resale: Another significant factor is to decide and know whether investing in new or re-sale property will be beneficial for you. Take time to analyze the worth of both new and re-sale property based on your needs and lifestyle. Resale properties are priced less in comparison to new properties. Sometimes they are same priced until and unless it is a under construction property with upcoming social infrastructure.

Amenities: Buyers should consider the liveability factor of a particular locality prior to making investment. It’s not only the nearby schools, hospitals, malls and grocery stores that helps in making decision. Rather, the amenities and facilities available within the residential housing project matters a lot. For children and senior citizens amenities such as medical centre, children play area, swimming pool, club house, among others should be within the residential complex so that they don’t have to venture out to play and socialise respectively.     

Location! Location! Location! = Right location: Selecting a right location is one of the most complicated aspects of property buying. Every buyer has their own set of preferences like distance to work space, school, malls, bus stops, metro station, etc. It is extremely essential that the area is well-connected to the other parts of city. As a buyer, you need to identify the right location that match well with your needs.

Infrastructure: The place where you are looking forward to invest should be equipped or must be in close proximity to established schools, health care facilities, parks, public transport, grocery stores and others. Whether, an end-user or investor, surrounding infrastructure matters a lot as it decides liveability factor of the locality.

Developer’s credentials: Prior to making investment, it is extremely important for you to do a proper check of the property market and the reputation of the developer. The check must include market presence of the developer, status on the past completed projects, credibility on project delivery and reviews of the past buyers. It will help you in getting an idea about the capability of the developer and also his construction capability/quality.

Explore options: Do not stick with one option rather go explore various types of housing options under different brand names. This will help you get a better understanding of the market to make the best property decision.

Check for project approvals: Before putting your hard earned money in a residential housing project, it is important that you check and enquire about the builder’s credibility. Also check for the project approvals. Being a buyer you have all the right to demand for documents associated with approvals procured from the local authorities. 

Know the hidden costs: Hidden costs are one such expenditure that may take many home buyers by surprise. These hidden costs often escalate the total cost and make it very difficult for the person to handle the expenses. It may include interior cost, maintenance deposit, parking space cost, registration cost, among others. So, it is smarter to be aware of these costs and be ready for this additional expenditure. 

Legal issues: Property transaction comes along with legalities which is sometimes very difficult to understand. Legal experts are the one that help you with the legal issue titles such as No-objection certificate, transferable title, record of right and title, stamp duty charges, tax and many more. You can check the legal advice section of Magicbricks.com to make right decision.

Source - TOI 

Home Buyers Can Now Get More Loan for Property up to Rs 30 Lakh

Mumbai: Banks can now provide home loans up to 90 per cent for properties that cost Rs 30 lakh or below, the Reserve Bank of India (RBI) said on Thursday.

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Earlier, the facility was available only in cases where the cost was up to Rs 20 lakh.

This will benefit those home seekers who plan to buy properties in the range of Rs 20-30 lakh.

The RBI's decision comes in the wake of all major banks reducing interest rate on home loans.

The Reserve Bank of India said in a circular that in case of 'individual housing loans' falling under the category of up to Rs 30 lakh, the LTV (loan to value) ratio is now up to 90 per cent.

For properties above Rs 30 lakh and up to Rs 75 lakh, the LTV is up to 80 per cent and for those above Rs 75 lakh, the ratio comes in at 75 per cent.

Source - NDTV India

Why festive season is the ideal time to buy a home

Experts believe that the real estate sector has a lot of unsold inventory in the luxury space but not in the affordable housing space where there is a major supply shortfall.

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Hence, the customer has to first segregate both these markets and adopt a suitable approach for each of them that effectively enable them to get the best deal. In the luxury space, it's clearly a buyer's market; hence, the buyer can name his price within the region. A 15-20 percent discount below the listed price is possible in projects where the developer has a high debt.

Rohan Bulchandani, co-founder and president, Real Estate Management Institute (REMI) and The Annet Group explains, "The festival period, starting around Janmashtami (August-September) through the end of the year, is the ideal time to buy a home in Mumbai. It would appear that this period creates an almost perfect convergence of the three key elements required for a property transaction to culminate: demand, supply and money."

Buyer-led demand

For most Indians, the purchase of one's home is perhaps the most significant life-investment, requiring a large capital outlay and as a culture deeply rooted in spirituality, religious sentiment and superstition, there is a significant bias towards making such an important life-purchase decision during the festival season.

Developer-led supply

Developers are acutely aware of the buyer-led demand phenomenon during the festive period. Sluggish sales of completed homes over the prior months, have led to a glut in the finished goods inventory, which developers are now keen to offload. As many developers are faced with this situation, the competitive environment drives them to differentiate themselves by offering innovative deals in order to attract customers.

Bank and Housing Finance Corporations (HFCs)-led money supply

To further facilitate property transactions during the festival season, banks HFCs also play their role, in capitalising on the opportunity to increase business for them. In addition to interest rates and EMI reductions, institutions often sweeten their offerings by eliminating the processing fees, waiving customary pre-payment penalties and by including free property and accident insurance.

Things to keep in mind for value picking

"Pick projects where the developer has a good track record of quality, on-time delivery, amenities being delivered across other projects, etc. For the affordable housing space, always go with a branded developer with a high reputation; pick a project which is an integrated township near a railway station. Look for a place where people are already residing or the pos session is only a few months away. This way, the customer can be sure of the amenities being de livered and also that utilities such as water, electricity, etc, are not a problem," suggests Rohit Poddar, managing director, Poddar Developers.

Buying a property is a one-time decision for many, so while buying a property during the festive season; buyers should focus on the budget and the connectivity of the area as they are the most important factors one should keep in mind for value picking.

Gaurav Shah, director sales and marketing, Ravi Group, feels, "The cost of the property plays an important role, whether the buyer is buying an under construction flat or a resale property. If the cost is not considered, the dream home could end up becoming more of a worry than an escape. Another prime factor is the connectivity. The area should be well-connected to schools, colleges, hospitals, markets, shopping places and bus, train stations. The location is often an afterthought when it comes to purchasing a property because nowadays, buying a property in Mumbai is an expensive affair."

According to experts, the festive season creates a win-win-win situation wherein buyers, developers and financiers, all benefit from the appropriate environment. Historically, property transactions increase by 25-35 percent during the festive season and in certain cases, upto 40 percent of sales take place during this period.

Source - Property News

Tips for buying home in the festive season

The festive season, as we can all guess, will bring with it big offers from the real estate industry. Glance upwards at any major traffic signal and one will see hoardings with unbelievable offers on homes. Buy one bedroom and get another free. Receive 12 percent per annum interest on any booking amount one pays. Book now and pay nothing until possession. Discounts on registration fees and stamp duty, free cars, parking, modular kitchens, club memberships, gold coins and cash discounts. If somebody is looking to buy a home, the upcoming festive season might bring the dream home within one's reach. 

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One must remember to double and triple check the offer before signing anything.

Here is a list of things to keep in mind.

Builder's track record: All offers will seem attractive but not all of them are worthy of one's time. It is important to understand that in this market, separating the developers by reputation and track record has never been more important. One needs to look for a builder with a track record of delivery and quality, a company that has not only managed to meet its deadlines on possession but also delivered what had been promised at launch. Do a quick search online on customer forums, news reports and look for problems that the builder might have had with previous projects. Visit previous projects and speak to residents about their experience with the builder. A reputed builder will also be a member of an industry association like Confederation of Real Estate Developers Association of India (CREDAI).

Strong location: Make sure the project is in a strong location with potential for price appreciation. Growth in prices depends on factors like job creation. Is there an IT park or an SEZ nearby? Does the location have good infrastructure in roads, fly over’s, Metro or train stations planned in the future? Is there easy access to schools, colleges, hospitals and malls and parks? A neighbourhood that can check all these boxes will offer the fastest growth in prices.

Price Point: Making a decision on fair price might seem difficult in this market. Start by finding out the prices of similar projects by similar developers in the area. Speak to several local brokers to find out the rack rates and the possible room for negotiation. Speak to a customer who has just bought a home in that project and find out the ground reality of discounts the builder is willing to offer. Find out the monetary value of the offer or the freebie; work it into your price as a discount. When negotiating with the builder one should push for cash discounts over freebies. If one has a pre-approved home loan and the ability to close a deal at the table it will boost the ability to drive a bargain on discounts.

Use the festive season to find the perfect deal for the dream home. Remember, cherry picking in this market will ensure a great value that might not always be available.

Source  TOI 

Worried about buying property? Go online

BENGALURU: Want to buy property but not sure if the information you have is credible? You will soon have details of the transaction history, measurement and land-use conversion at your fingertips. All you need to do is enter the property's survey number on the stamps and registration department website and crosscheck the details.

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Nearly 27 lakh properties get registered each year in Bengaluru alone. To make the process transparent and hassle-free, the department has decided to post the details online by the end of September. While multiple registrations and fraudulent transactions are still major concerns among buyers, the department intends to make public all records of buildings, apartments, commercial complexes, individual houses and agriculture properties.


"The department is planning to implement the Anywhere Registration facility in select districts across Karnataka. Property details which are being uploaded online will be compiled by the department from across the state," said inspector general of registration (IGR) Manoj Kumar Meena.

Faulty entry may be a spoiler 

However, there are chances of the details being erroneous, in cases where data entry may have been faulty. Documents with TOI show that in several cases, multiple registrations have occurred because their details haven't been recorded in encumbrance certificates (ECs). "While we are certain that instances of fraudulent transactions, knowingly or unknowingly, may continue to occur, we cannot say that all records are faulty," Meena said.

Privacy concerns: Asked if making the information public amounts to infringement of privacy, Meena said access will only be granted to those who enter the survey number and other details. "The software we use will not display information if someone searches for a citizen's name. The page will only open when one keys in property registration details," he added.
 

Source - TOI 

Top 10 myths about property investment busted

Property investment doesn’t just involve money but a lot many fables. We have tried to debunk the top myths related to real estate which influences buyer decision: 

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Myth 1 - Price appreciation is a never ending process

Reality: Prices reaches saturation after which they do not rise further. Prices attain saturation if the locality is already established, have big ticket infrastructure such as metro or flyover in close proximity or have all amenities in place. There can be nothing more which can attribute to price rise.

Myth 2- Infrastructure pushes property prices

Reality: Infrastructure announcement attributes to maximum increase in prices. It impacts the rental demand and cost but capital values remain uninfluenced except during the initial phase.

Myth 3- NRIs always search for luxury property

Reality: NRI investors always look for income generating assets in both commercial and residential real estate sectors. In residential real estate, capital appreciation is also an objective but the larger intent in any NRI property investment is that the asset should pay off over the medium to long term.

Myth 4- Doing interiors pushes up the prices

Reality: You might be investing for doing up the interiors to get good deal but the new buyer moving in might redo it to suit according to his needs. So, you are wasting your time, energy and money if you are investing in interiors.

Myth 5- Property prices fall!

Reality: Real estate prices never falls. Price correction implies that property cost won’t increase as compared to inflation but it does not mean that it would fall or decrease.

Myth 6- Discount/Offers brings down the total cost

Reality: If you think cash discount offered by builders brings down the total cost of your purchase, then you are wrong. The discounted amount is borne by the buyers where they are made to pay extra for some amenities or facility. But, if you are actually getting such offer where difference in cost is evident, don’t let it go!

Myth 7- There is a best time to buy property

Reality: There is no right time to buy property as prices always tend to increase. ‘Strike when the iron is hot’. If the deal is too hard to resist, make sure you don’t let it go.

Myth 8- Green homes/Eco-friendly homes are expensive

Reality: It hardly adds up to the 10% of the total cost which also gets recovered over long period of time.

Myth 9- Top floors always carry premium

Reality-: For cities like Mumbai, where living on heights is a craze, pent houses in areas like Noida, Delhi and Gurgaon are still not popular and does not command heavy premium.

Myth 10- You shouldn’t invest early in property market

Reality: There is no right age to enter real estate market. If you enter early, you can become an owner soon and can get rid of loans at considerable early age. So, investing when you are cash ready and almost equipped to pay off the EMIs, is always a right decision.

If you too have some myths related to real estate and you want to get debunked, tweet us @magicbricks and we will help you to decode it!

Source - MagicBricks News