Important Tips For Investing In A Plot

Property always appreciates in value under any prevailing market condition. However, the appreciation of value depends primarily on the location of the apartment or plot of land, and the availability of good infrastructure and basic facilities in the vicinity.

Choice of Location

While investing in a plot of land in the city, the choice of location will depend on the buyer’s various personal requirements. The choice of whether it will be a long-term investment or for a short tenure where the buyer wants to construct a house within say two years of purchase of the land, depends again on the buyer’s preference.

Most of the time, the choice of location of the site depends on the rate of appreciation prevailing in the area at the time of purchase or what it could be worth as an investment with future appreciation. The choice of location while buying a plot of land for a house rests on the buyer’s area of employment and the commuting required, good infrastructure connectivity, education and healthcare facilities for the family, and other social infrastructure.

“Growth drivers for residential property are proximity to metro rail, malls, infrastructure corridor, townships, IT belts, improved connectivity, large land parcels, townships, international airport, and schools and colleges,” says Nitin R Jajoo, principal, L J Hooker reality firm. “As long as there are good transportation facilities and basic amenities, people are willing to invest,” he adds.

For resale of the plot of land, these factors and facilities will add up to fetch a higher value. The coming up of various large infrastructure projects in and around the city will result in the availability of large tracts of land. This, in turn, will lead to a spurt in more people opting for plots of land here as a favourable investment choice. This will further result in appreciation of the value of land, better connectivity and improved infrastructure.

Potential Returns

Real estate experts advise buying land on the outskirts for appreciation rather than in prime residential areas. Buying land on the outskirts gives room for more price appreciation as the buyer gets the property at a relatively lesser price. In the case of properties in prime residential areas, the values are very high and the returns on the investment might not be in the same growth proportion as in the case of outskirts.

 “Between 2004 and 2007, the cost of a regular site, approved and with clear titles, purchased in the city of Bangalore, saw an appreciation between 75 percent and 150 percent in a matter of 12 months. Today, any investor wanting to buy legally approved land will have to go to the outskirts, about 45 km away from the location of the first purchase, if he wants the same appreciation.” He advises caution while buying land beyond a 45 km radius on the outskirts.

Finance and Legal Aspects

Balaji also cautions purchasers of plots to cross-check for clear titles and legal approvals on land deals. All plots of land which are planned and demarcated as layouts should be checked for statutory approvals from the authorised civic agencies concerned with layout approvals. Very often, one plot of land could have more than one owner. When it comes to acquiring finance for the purchase of plots, it is not as easy as getting 90 percent loan amount on a residential apartment. While banks have tie-ups with developers for finance schemes, they are not very bullish on releasing more than 60 percent of cost.

“Banks are not ready to fund purchase of land and may only release 60 percent on the guidance value and not on the market value”. “The investor needs to have enough cash liquidity to seal the deal,” he adds.

Source: The Times of India, Chennai

Demographics Playing A Key Role In Boosting Real Estate Demand in Pune

Pune was once considered a pensioner’s paradise. However, this tagline no longer exists. Various factors such as growing Information Technology sector, spread of organized retail and city’s shifting demographics are now defining the real estate market in Pune.

History of Pune’s demographics

Out of all the factors, the changing demographics of Pune has had a significant impact on the real estate market in the city, both in terms of types as well as sizes of homes. Till the late 1980s, Pune was filled with people working in laid-back service industries and the demand for housing was majorly driven by these. People usually saved up a sizeable financial corpus and purchased a home available in their budget, preferably with no or little leverage.

The pay scales were usually low to moderate in comparison with higher pay scales in Mumbai. There were also few international employment opportunities which reduced the chances for the city’s qualified youth to explore overseas opportunities. As such, the residential real estate market in Pune catered to the basic level of requirements. Not many developers were adventurous in specifications, locations and unit sizes. Property investment potential and property rates were also low.

Changing demographics in Pune

Post 1980s, the city started emerging as a destination for IT industry. The BPOs first capitalized Pune’s considerable English-speaking human resource and lower property rates. The economic scenario of the city immediately started changing. With the influx of more BPOs and IT companies, pay scales went up. Coupled with the desire for purchasing homes and ready availability of home loans, the demand for homes in Pune went up.

This also had an impact on location preferences. Firms prefer to set up shop in less expensive areas while employees prefer to stay close to their work place. With Yerwada springing up, surrounding areas also started attracting attention while shifting focus from more central locations.

Increase in demand

Builders today are catering to entirely different demographics. Demand has changed from traditional houses with basic amenities to apartments with ultra-modern facilities and locations that offer quick access to the IT hubs. MIDC in Pimpri-Chinchwad is also boosting demand for residential units within its vicinity.

Pune currently witnesses an average annual demand of 46,000 housing units. Unlike Mumbai, which has high unsold inventory, Pune sees good supply as well as absorption of homes. Despite high demand, Pune property rates are relatively balanced, which makes property buying economically viable here.

Feng Shui for your living room

If you’ve been wondering how to Feng Shui your living room, here are some ways.

The living room of any house is where all the occupants of the home gather, thus the atmosphere of the living room should be peaceful and calm.

Follow these points to maximise the positive influences in your home.

Paintings for your living room

Landscapes depicting sunrise, water or mountains signify hope.

Portraits of people with serene and smiling faces encourage positive feelings.

Cascading water symbolises good luck.

Paintings based on geometric shapes increases destructive feelings. Keep them at bay.

Paintings depicting wild and vicious animals induce poor health. Do not put up such paintings.

Refrain from painting your living room with the colour red. It invokes irritability.

Lambs are symbolic of luck.

Images of swimming fish signify longevity

Plants for your living room

Most plants are said to have a positive influence as long as they are not wilting. Cacti and plants with sharp and spiky leaves are best kept out of your house. Plastic or artificial plants are neutral and do not affect Feng Shui.

Carpets for your living room

Choose carpets and rugs in colours that correspond to the direction you place them in. Carpets that cover your whole room should suit the direction of the room itself.

Pets for your house

Cats are said to be the element wood, so the colours for their bedding should be black, blue or green. Red is a bad choice for a cat’s bedding. If you have front doors opening to the northeast, south or northwest will make your cat strong and healthy. While the southwest and north are bad considered to be bad openings for cats.

Dogs are said to belong to the element earth. Choose a brown or a yellow basket for them. White baskets are said to make them fall ill. Main doors which face the southwest, northeast or south makes a dog healthy and stronger while those facing east or southeast can make them fall ill.

Source: The Times of India

Pune One Of Most Sought Investment Destination For Real Estate

The IT and software industry has significantly impacted the economy of Pune. Employment opportunities and pay scales have increased substantially and there are more people with high disposable income than before. . As a result, there is a growth in demand for luxury housing in the city.

Growth in demand

Pune sees maximum launches in the luxury segment with more and more premium homes being launched regularly. Larger apartments with more amenities in prime locations and city-centric locations sell at higher prices. Interestingly, prices for larger homes have increased at a greater rate than that of smaller homes. This signifies demand for premium homes. Pune is also witnessing a gradual shift of demand from 2 BHK to 3 and 4 BHK housing units.

Factors supporting the luxury segment

The demand for luxury housing in Pune is sustainable. An increasing number of firms are recognizing the advantages of the city which include cheaper real estate, trained manpower and low logistical problems. This has resulted in more high-paying jobs being created every year, leading to a growth in demand for high-end homes.

The kind of people who show interest in these homes is another factor. Luxury sector in Pune is largely driven by the end-users. These homes do not witness much demand from investors as they look at acquiring mid-range flats which they can dispose faster. There are several end-users who have the traditional belief of owning a house. Moreover, the depreciating rupee value in recent past has also favoured the luxury segment. It was during this time that more NRIs invested in India. These factors have supported developers to continue launching luxury projects.

Property trends in Pune

When one compares property prices in Pune with those of Mumbai, the former beats the latter in affordability. Average market rates across all micro markets in Pune, put together for luxury purchasing, start at Rs. 4,450 per sq.ft. Areas such as Karve Road, Bakori and Vishrantwadi have been witnessing the highest price appreciation. Wagholi, with about 3,700 units and Chakan, with about 3,240 units are the top two areas with maximum new supply of luxury housing.

Areas Where to look for best rental returns in Pune?

Pune

An investment of Rs 60-80 lakhs in buying residential properties in localities, such as Yerwada, Kalyani Nagar and Baner Road, could bring you a rental income of Rs 15,000-18,000 per month, on an average. These are the top localities to garner maximum rental returns in Pune, as per  research. Due to the proximity to the airport and railway station, the localities in the eastern parts are evolving as a potential option, from an investment point of view. Rental values in these localities have been rising constantly. In the July-September 2013 quarter, rental values in Baner Road rose by 8 per cent while Kalyani Nagar witnessed an increase of 7.5 per cent. Viman Nagar registered a hike of 3 per cent during this period. Here is a snapshot of the localities and the myriad factors which make them top gainers in terms of rental incomes.

Yerwada

Located in the eastern corridor of Pune, Yerwada boasts of smooth connectivity by virtue of the well-developed road network. Proximity to the airport and the railway station is another factor acting as a catalyst. It has recorded the highest gross yield in the July-September 2013, as per our research. If you have made an investment of Rs 60 lakhs, you can easily expect a rent of up to Rs 15,000-18,000 per month. According to a research“The area has developed on the backdrop of various IT parks, office buildings, shopping malls and other retail outlets.”

Kalyani Nagar

The capital values in this locality hover around Rs 7,600-9,800 per sq ft, while the rent is between Rs 22,000-27,000 per month. It offers a plethora of options, in various configurations, ranging from 2-4 BHK apartments.

Baner Road

Located on the east of the Dehu-Katraj Bypass on NH-4, Baner Road recorded a gross yield of 2.56 per cent, during the July-Sepember 2013 quarter. If you have invested Rs 60 lakhs, then you can expect monthly rentals of Rs 13,000-15,000. It is strategically located near the Hinjewadi IT Park, Mumbai-Pune Highway and Pune Expressway. Arsh Khan, a city-based realtor's, says, “Property values are expected to rise in the coming years as many newly launched projects will be ready-for-possession.”

The Secret Key To Attract Health And Wealth At Home

Pune: Vastu is a set of principles that most of the home owners believe in, which helps them to lead a blissful life. Vastu guidelines provide scientific explanations on how to design your home to bring positive energy. Besides, tension, depression and stress, which have become a part of our daily life, can be reduced with financial stability. Make your home vastu compliant to lead a prosperous and healthy life. Below is the list of vastu tips to follow which will allow you to maintain health and wealth at your home-

To start with:

Money, arguably, is an integral part of our life. Financial instability can bring unwanted tensions at your home, sometimes such tension also work in creating trouble within personal relationships. It is not that following only vastu guidelines would make you rich or reduce all your trouble and tensions but it is one among the ways which can at least help you to keep your home free from negative energies.  

Using stone tiles at home has great appeal Check this out

The use of stones in its various forms has always been appreciated. This material not only takes you closer to nature but also makes your home look elegant.

Abhishek Somany, JMD Somany Ceramics Limited says, “Stone has been timeless for home improvements and commercial designs alike. The look of the space maybe traditional or contemporary, stone can give your space a natural yet refined and classy look. The earthiness that stones provide to the look of any space is unmatched by other such elements.”

He adds, “Natural materials are a global trend for floor cover and stone is being particularly chosen by discerning customers.”

There are varieties of stones available like marble, granite, and sandstone among others for interiors. Marble is ideal for flooring, bathroom countertops, stair cases and fireplaces among others. Avoid marble in the kitchen as it catches stains easily.

Granite is a hard stone comparatively and can be used for kitchen counters and flooring among others. As Granite is harder and scratch resistant, it can be used for more prominently used areas. Sandstone is a low maintenance stone. It is a durable stone used for flooring, patios, terraces and garden paths among others.

There are also others like Veneer stone, Limestone, Slate and Travertine. These stones also have various other options depending upon the types and colours.

The prominent use of stone is more in flooring, kitchen surfaces or a wall. However, it can be used in more innovative ways to highlight your decor.

Somany says, “Conventionally thought of as an element for exterior design, stone has been increasingly used to give interior spaces a bold and edgy look. Used to add character, stone is being used for in various interior design elements such as floor cover, wall highlighting, area separators, fire places etc. Adding eclectic warmth to interiors, stone is used in kitchens, living areas, lobbies, bedrooms and bathrooms.” He adds, “The versatility of the material makes it an instant favourite.”

Flooring is the most common area of stones. However, you can try other interesting stones apart from the usual marble and granite. Kitchen counter tops mostly have granite. Instead of usual black, you can go for different colours to match the theme. There is no need that backsplash especially in the kitchen needs to be in tiles. You can go for stone backsplash in accordance with your wall and cabinets.

Countertops, shower enclosures and walls made of stone will make your bath look more aesthetic. The shelves for keeping plants in the patios can be made of stone to lend it an outdoor effect. The artifacts and the show pieces in the house can be of stone to give a good visual appeal. The pathways in the garden are also an option where stone can be used. Even doors or door knobs can be of stone.

Stones are so popular that even tiles with stone effect are gaining popularity in the market. Somany says, “We have designed the Somany stone look tiles keeping this in mind.”

R Kurup, Chief Marketing Officer, H&R Johnson (India) says, “Stone or rock design tiles are most ideal for interiors as well as exterior walls; be it cladding of balconies, facades of houses or compound walls. Earthy colour variations of these tiles can be stunning when paired with the right interior setting and decor items. If you are planning to use these tiles for walls, try lighter coloured designs with the occasional splash of darker design combination to get an overall random natural effect.”

Though not used frequently like stone, rock is also one of the materials used for interiors. It is specially used in large spaces that gives an overall effect. It gives a natural yet royal feel to the décor. Pebbles are also used in homes as an artifact or a décor element in the garden or patio. Stones create a comforting ambience with organic living.

Cost-effective ways for making your home a vastu compliant house

Vastu Shastra is an ancient Vedic science that allows for a perfect energy balance in one’s home or work place leading to a healthy and peaceful life. Many think that making their home a vastu compliant home would mean a lot of redoing and construction. Reconstructing a room or a house as per vastu shastra guidelines is the best way to have a harmonious house and a cost effective way to bring in positive vibes to the house.

Just like Feng Shui, Vastu Shastra is all about positioning of various objects and furniture offering greater positive ambiance for the residents of the house or commercial establishment. Prevention is always better than cure goes the famous cliché. The same is true for getting a vastu compliant home.

Vastu Guidelines for a vastu compliant home

Rather than correcting the wrongly built portions, proper emphasis to Vastu compliance must be given while purchasing the land or plot itself. It is because a corrective work or renovation in the middle can cause you an additional cost.

Vastu Shastra has guidelines for each directional zone in synchronization with the earth’s magnetic fields and vibrations. If the plot is purchased with the directional advantage in mind, it is much easier and a cost effective way to implement other vastu fundamentals. A wrongly selected direction on the other hand would mean more work on the interiors to compensate for the negative energy forces owing to wrong directional location which results in shedding more money.

One of the best ways to ensure perfect Vastu compliance for the entrance is to keep windows not in line with the main door of the house. Any good positive energy that enters the house from the main door can go out from the windows in case they are lined up along the door.

Too many windows represent a loss of money, fame and fortune. The maximum number of walls having windows in any room should never exceed two.

The main door must be the largest door in the house and must never open into the kitchen area as per vastu guidelines.

For the kitchen southeast and northwest are the two most preferred directions. The water body like sink must be located near the northeastern quadrant while the fire element like stove and microwave must be located in the southeast or northwest quadrant. One of the most intrinsic principles of Vastu Shastra is that the toilets must never be located in lose vicinity to the kitchen area. Toilets must be aligned with the north-south axis with northwest and western directions as the most ideal locations.

As far as living room is concerned, Vastu places great emphasis on having a central open portion known as the bramhasthana. West and northern direction are two of the most preferred directions for the living room. Heavy furniture like sofas and tables must be placed in such a way that they block the negative southern and western directions of the living room. Furniture elements must never be placed in the north eastern sector of the living room.

Goa Real Estate: A Coveted Realty Destination with Amazing Returns & Appreciation

Goa is the smallest state of Indian Territory. Its capital is Panaji and is encompassed by the peripheries of Maharashtra, Karnataka, and Arabian Sea. Goa is darted by gobs of real estate investors throughout the year. There are guest houses, penthouses, rest houses, flats, hotels, residential houses, and other properties in Goa, and assimilations have been made that there would be burgeoning demand for commercial properties in coming years. Some of the recent property developments in Goa are as following:

• Myriad of shopping troves featuring famous brands are also popping up in Goa.

• DLF has future plans to open a shopping mall in Pattoi, Panaji.

• Parsvnath Builders and other real estate developers have been engaged in constructing slew of schools, health clubs, hospitals, shopping malls, tennis courts in Goa.

• Developers have plans to refurbish the beach city with sundry and novel up to snuff apartments and bungalows that would be contrived to have the most mesmerizing river views.

Why investors want to invest in Goa real estate?

Tourist destination: With tantalizing jungles and palpable coconut trees, the place attracts thousands of tourists every year. The state is characterized by its age old resplendent beaches and marvellous heritage architectures. There are numerous churches and temples slumping and the climate in the place is also very pleasant. During their stay visitors take accommodations in various hotels and resorts. This is the reason why many investors like to invest in such properties in Goa.

Relaxed and tranquil life: Goa promises a relaxed and tranquil life to the people who choose to reside here. The state hosts a nice hybrid of conservative and modern lifestyle. So, investing in residential property in Goa is not a bad idea.

International tourists: Goa is also known for its international lifestyle and is visited by tourists from all over the world. Goa hosts many international festivals every year such as carnivals, Latin Festival, Asian film festival etc.

The properties in Goa are very beautifully contrived. It’s never like putting your toe in high water when it comes to investing in properties in Goa.

Senior Citizen & Living Alone Then Please Read This

Man is essentially a social animal and living alone is not an ideal case scenario. Sadly in today’s world there are not many ideal case scenarios and elderly people seldom need to live all alone. Here are top ten safety tips and recommendations that can be useful for the elderly and senior citizens living all alone in their house.

Avoid Cluttered Furniture: One of the best ways to enhance the personal safety of a senior citizen is to have a de cluttered house. All pieces of extra and unwanted furniture must be placed in the store room away from the living room and bedroom areas. Cluttered furniture can easily cause the elderly to trip and take a fall which may lead to a serious medical condition.

Don’t Use Rugs: Rugs are another trouble area when it comes to elderly walking with a support stick. The support stick can easily entangle in the rugs and can cause a serious fall. All rugs socially throw rugs must be stacked away to help the elderly walk without any failure of judgement that may lead to an eventual fall which might hurt them physically.

Brighten Up: One of the most important security mechanisms is to upgrade the lighting of the house. Any low wattage bulbs must be replaced with higher intensity bulbs and lamps to provide clear vision for the elderly. Also make sure that the home receives ample sunlight. Elderly people may not have the strength to walk outside the house to soak in the winter sunlight which is helpful for their bones and other ailments. If the house can be remodelled allowing then easier access to sunlight, it can have a positive effect on their mental, emotional and physical health.

Install Grab Bars: Install safety bars which the elderly can hold on to in case of any accidental fall. Short-list the areas with a potential falling likelihood for the elderly like corners and bathrooms. Installing such garb bars can make a huge difference in case of any accidental fall.

Use Non Skid Bath Mats: Bathroom is one of the most significant places where special attention needs to be given. Using of anti skid bath mats is one of the best ways to avoid an accidental fall in the bathroom.

Install Security Systems: Upgrading or installation of a new internal security system with close circuit TV cameras for the visitors is a must have for every senior citizen house. It is essential to install the system that is easily operated by the elderly in case of an emergency and can report the matter to their neighbours, friends, family or the police.

Don’t Forget the Smoke Alarm: Install a smoke alarm not only in the kitchen but all other rooms of the household to avoid any untoward fire related incident. Elderly specially the ones on certain medication may not realize the extent of fire because of oversleeping. The installation of such smoke alarm systems cuts out the worst case scenario in case of a fire.

Get a Wheelchair Ramp Installed: Get a wheelchair ramp installed outside the home for an emergency situation is one of the best ways to prepare for any eventuality. Health is such an important aspect that one must be prepared for any eventuality all the time. Making the interiors of the house wheelchair friendly is also advised just in case any elderly gets too weak to walk on his or her own and require the assistance of a wheelchair.

Stay Connected: Ask the elderly to stay connected with the friends and family members socially or over the phone each day. If you are living in a different house, make sure you call them each day to keep an update on their health and security. Also make sure you have access to the neighbours and other people living closely in case of any emergencies.

Keep a Portable Mobile Phone: Senior citizens and elderly must be given a set of mobile phone that they can keep with them at all point of time. Make sure that the mobile has speed dialling function enabled and the same is explained to the elderly for quick calling in case of any medical or other emergency.

Renting A Home Please Read This

There are many reasons for taking a rented house. Recently married couples moving out from parents, job seekers, newly employed or transferred to a new city, migrated to a new city for higher education, reasons can be different for looking out for a rented house, but there are several do’s and don’ts in making your decision and while signing the rental / lease agreement. Here’s a check-list for a first-time renter searching for a rental property.

Things to note while searching

Location: Of course, the first before finalizing the property is its proximity or easy access to your work place and every day destinations like school, railway station, hospital and shops. If your office has a pick up and drop in service, staying a little far away from the office is not bad, but proximity to kid’s school is very important as kids should have a hassle free transportation.

Condition of the house: It is always ideal to go for a newly built or no very old house / apartment. Because frequent maintenance can happen for old houses and tenants will have to bear it which will be an unwanted expense for you as it is not your own house.

Community: Ensure that the apartment / house belongs to a good residential community with round the clock security and power back up, because, safety is very important while living in a new and unfamiliar city.

Facilities: Do ensure that you have facilities like specific parking slots and essential common lifestyle amenities belonging to the community as a whole. For example, if your landlord has not taken membership in the club house, you cannot access any of the facilities like swimming pool, indoor games or gymnasium.

Things to note before signing

Rent and Lease: Rent and lease are almost the same. It stands for renting any kind of property and is ruled by a Transfer of Property Act and upon the terms agreed by both parties by means of a lease / rent agreement. The most important thing is to create a lease / rent agreement with the landlord.

Lease Agreements: Every deal should be entered through a lease agreement which contains the following: a full description of the property including the premises, time period, termination clause, rent payable with due date, mode of payment and penalty if not paid, conditions regarding the use of property, maintenance charges, special clauses if any and security deposit . Agreements should also have a list of inventory like electrical appliances, furniture if any, and fixtures like geysers, fans etc. One should check carefully if these clauses are explicitly mentioned in the agreement and there are no clauses which are difficult for you to comply with.

Security deposit: Usually, all tenants will have to deposit some money with the landlord as a security against defaults in rent payment and damages of the property. This is usually not more than six month’s rent, but may slightly vary from case to case. Tenants should keep a receipt of the security deposit from then owner.

Reforms proposed in century-old Registration Act, 1908

A bill to amend the century-old Registration Act, 1908 has been recently introduced by the Government in the Rajya Sabha. The bill seeks to introduce various reforms to make land registration process more transparent, to protect people against document forgery and to assist in evaluation of fair compensation in case of land acquisition, making it compliant with Land Acquisition, Resettlement and Rehabilitation Act 2012.

Transparency

The bill mandates that “Book 4″, i.e. the ‘Miscellaneous Register’ which has details about all registered documents (except Wills), will be made open to public scrutiny. The bill also takes note of rapid digitization of land records in several states. Thus, it seeks to facilitate electronic registration of documents and have provisions for enclosing scanned copies of documents in certain cases. To make land registration process convenient, it proposes that immovable property can be registered anywhere in the State. At the same time, it proposes deletion of the section 28 of the 1908 law which allows a person with immovable property in more than one state to register documents relating to transfer in any of the states to prevent abuse of this provision by unscrupulous elements to save registration fee and stamp duty resulting in loss to the State where the property is situated. This provision also makes hard to track the property transfers.

Now all documents related to development or sale of immovable property such as power of attorney, developers/promoters agreements and any other agreements will need to be registered mandatory to prevent document forgery. It also makes mandatory requirement of passport photograph, digital photograph and thumb impression for registration of documents.

Preventing false registration of property

At present, Sub-Registrar’s office has no power to refuse the registration of documents which are often abused by unscrupulous elements to get false registration. The proposed bill introduced section 18A to provide prohibition of registration of certain types of properties (such as belonging to charitable institutions and the Government etc).

Gender Equity

As per the old law only documents related to adoption of a son are required to be registered. To ensure gender equity, the bill proposes to add provisions to register documents related to adoption of daughters thus giving them right to inherit immovable property.

Compliance with Land Acquisition and Rehabilitation Act 2012

One of the key features of the new ‘Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation Act 2012′ is the high enhanced amount of compensation guaranteed to displaced families. However, to calculate this amount the formula relies on the registered value which are, at present, notoriously opaque and often outdated.

Amendments proposed in the old law are being brought to ensure greater accuracy in calculating the ‘market value’ by mandating registration of all property-related documents related to development or sale, enabling frequent registration and bringing transparency by allowing public scrutiny of land records.

Issues

While the bill seeks to introduce many reforms, the power of refusal to register immovable property might be misused by corrupt officials to extract favors from real estate developers. It should be implemented along with digitization of land records of property under section 18A which should be notified publicly and their records be available online. Also the bill should have included the enabling provisions to use UID number in future in place of thumb impression etc. for electronic registration which would be very effective against ‘benami property’ transactions
.

Real estate is one of the most sought-after investment options for most people in India. Property buying can be a very exciting affair yet sometimes the experience can be nerve wrecking. Unlike other alternate investment portfolios, there is high capital value involved in purchasing it so one has to be very cautious before taking the plunge in real estate.
In our efforts to help the customers make an informed decision,Team Pushpganga identifies the six most important points to consider before buying a property in 2014.

Impact of the New Land Bill 

The much-touted Land Bill has finally come into force this New Year. Many ongoing projects including housing and industries will brace for an escalation in costs with this new law. The cost of land acquisition will increase by 3-3.5 times. For developers, the cost of land is going to increase significantly, impacting their project costs and therefore margins. However, in order to preserve their profits, we will see more joint development projects happening wherein the profits as well as the resources and the risks will be shared. Already in many Tier-1 cities joint development route is followed by developers. Going forward, this practice will spread all over.
Moreover, it is advisable to keep a close watch on the title of the property on which construction is taking place or has taken place (to ensure that it is free from any encumbrances and litigations), whether all statutory permissions have been obtained, in case of a ready property – i.e. newly constructed or a resale property, has a society being formed, is the builder listed or recognised by the housing finance company (in case one wants to avail a home loan facility) etc.
Therefore, in 2014, customers need to very watchful of the legal aspects of properties besides taking note about their affordability while buying any property.

Affordability

It goes without saying that budget is the key point to consider while buying any property. Every buyer has his/her budget fixed for investment which may vary at times. Grim economic scenario, rising inflation coupled with depreciating rupee in 2013 has in some-way affected several buyers affordability quotient in property investment.
Hence, it would be advisable in 2014 to go in for properties that offer affordability be it in terms of location or price. Our research points out that builders are today cashing on this hype of ‘affordability’ and are significantly launching projects in more affordable locations with lower ticket price. Local government authorities are also, in a way, trying to promote development on the outskirts or the peripheries of cities where property is still cheaper and, above all, affordable for many. Pushpganga advises people this year to be careful while buying property in few far-flung areas as these may seem attractive due to low prices but may not be liveable because of lack of basic infrastructure.

Choose the right Location for Higher Gains

Selecting the right property at the right location is one of the most crucial and difficult aspect of property investments. Unlike earlier, today’s customer is spoilt for choices. There is ample supply in the market along with a wide spectrum of choices making the conditions extremely favourable for buyers. But, too many options at times leads to confusion. Team Pushpganga points out factors that one must consider before zeroing in on a property.

Infrastructure Development: Location of the property is of prime importance in property buying. But to select the right location one must consider the physical and social infrastructure present in any given area as it will play a significant role in determining the property prices. One must carefully look for various infrastructure development projects in any given area as it will accelerate the property prices. A location with good infrastructure projects in close vicinity will yield better and higher returns. Presence of physical infrastructure like fly-overs, industries, roads, railways, airport, defence investments, water, electricity, sewage etc. will give better returns. Social infrastructure like education, healthcare or entertainment also accelerates prices. For instance in Pune, localities close to metro stations will yield better returns. Various Phases of Metro project are nearing completion.
To conclude, it is advisable that in 2014 customers opt for locations where they can at least see some physical infrastructure activity happening. People must shy away from areas where infrastructure development is simply proposed and no activity has yet started.

Good Builder: After selecting the right location, based on ones budget, one must choose the right builder for property investments. One must analyse the builders previous track record, whether he completed his past projects as per schedule, construction quality etc. One may also visit other sites developed by the same builder in order to check whether he has fulfilled all promises made. Above all, completion of the property at the right time is of prime importance and one must keep a check on it. Hence, in 2014, property buyers must go in with good builders who can complete the project on time.

Marketing Gimmicks: Another point to consider is that one must be careful of the several marketing gimmicks adopted by builders today. Audi's and Mercedes are being offered with apartments. Buyers must analyse and study the property in detail.

Where to park your money – Land or apartments?

Residential real estate today comprises of more than just plots and apartments. There are villas, villaments, row houses etc. But if we look on a broader spectrum then one is often confused between a piece of land or an apartment. For investment in 2014, Team Pushpganga advises people to opt for apartments within the city limits over land on the outskirts. In the present scenario, land within the city limits is very expensive and unaffordable for many. In a specific budget one can get a decent apartment within the city limit while if he opts for land then he will have to move towards the outskirts. Moreover, apartments will fetch a decent rental income provided it is in a good location. Needless to say, there will be no rental income in case of a plot. Additionally, apartments give dividends as well as capital gains while plots only give capital gains. If someone wants to offset some of the EMI burden then too apartments should be the choice. However, appreciation in plots is much more than apartments over a long term. Today, there are even newer developments like studio apartments, villa apartments etc. that address various needs and budgets as well.

Property Finance

Financing is the most critical aspect of buying a property. While some opt for self-finance, a majority of buyers today opt for home loans. The hike in repo rate by the RBI in 2013 had its direct impact on the home loan rates. High home loan interest rates were a deterrent to many buyers and in a way weakened their sentiments. However in 2014, it will be interesting to watch the policies of RBI and its impact on the sector.
Team Pushpganga advises property seekers in 2014 to keep away from improper practices followed by builders. Unlike most Grade A builders, smaller ones may ask buyers to pay a part of their total purchase in cash but one must refrain from it. This will not only help one to register property purchase at the value they actually paid but will also let one optimize tax benefits offered. This apart, the source of finance also matters for availing tax benefits. For example, repayment of principal would be allowed as a deduction from taxable income only if the loan is taken from notified institutions and banks. Further, whenever possible applying for loan and buying property in joint name may allow you to optimize tax benefits.

Right Time to Buy Property

Year 2013 was one of mixed emotions wherein some people went ahead with their decisions and invested in property. While, on the other hand, many thought to wait and watch. In some sense, India’s real estate market will continue to be slightly muted during early 2014 as home buyers and office occupiers will stay cautious due to the economic uncertainties. But there will be a gradual revival in demand in the second half of 2014 following the general elections due by May.
Moreover, Team Pushpganga advises home buyers, who are buying a house for end-use, to go ahead with their decision without waiting any further because all through 2014 time will be good to invest (assuming that one has assessed his affordability). However, it is known that real estate is a mid to long term investment. For those who are buying with the hope to get back good returns in a short span (of about 1-2 years) it doesn't really matter investing in real estate in the present scenario. For those who are looking at returns over mid to longer time period must go ahead with their decision to invest this year.
For long-term investors there is high risk in pre-launch properties. But if one wants to opt for it in order to get higher profit margins then he must look for good builders with a good track record. For end-users ready-to-move-in properties or soon-to-be-ready properties should be the preferred choice in 2014.

Pune Real Estate Attracting Pensioners With Retirement Homes

Pune, due to various factors, is popular both amongst youngsters and retires. For the youngsters, the city offers a trendy lifestyle while for the old; it offers a lifestyle of serenity. Even in terms of real estate, the city offers a wide range of housing options. For the youngsters, it offers trendy studio apartments and for the retired, it offers retirement homes and townships.

In the wake of growing retire population, there is an increasing demand for retirement homes and townships, to which Pune caters in a good way. There is a good reason why Pune is becoming a hot spot for retirement homes. There are various features a retirement home offers.

Features of retirement homes

Multiple services are provided in retirement homes. On the basic level, these homes take care of the day-to-day needs such as food, laundry and house-keeping. On the higher level, these homes provide recreational activities such as hobby classes, birthday and anniversary celebrations, to ensure that the retirees are not bored and at the same time, enjoy their retired life. Then, there are concierge services which include paying bills and arranging outings. Other services include round-the-clock medical facilities and security measures such as emergency alarm buttons, which can be used to call for help in case of emergencies.

There are certain architectural guidelines kept in mind when developing a retirement home or layout. For example, retirement homes have anti-skid tiles, bigger balconies for sunlight and low-height shelves.

Pune, a favourite among retires

There are several reasons why Pune is becoming a favourite location for the growing trend of retirement homes .Pune has a pleasant climate and is naturally air-conditioned due to its geographical location, compared to the humid and over-heated conditions in cities such as Mumbai. Pune is also a smaller city compared to Mumbai and hence, travelling between different locations is easier. Certain localities, while offering good connectivity, also provide scenic natural splendour. In terms of pricing, Pune has competitive real estate prices compared to Mumbai.

When to buy a retirement house

The best time to buy a retirement house is when one has an active professional life of at least 10-12 years to complete. One of the reasons is that, after the age of 45-50, eligibility for obtaining home loans and borrowing costs become more challenging. While providing loans, banks follow the usual guidelines of eligibility such as age, monthly income, a history or stable career and overall credit score. There are however other options, where the children can take a home loan for purchasing a retirement home for their parents.

Retirement homes price trends

Pune currently has three retirement home projects. The size of units vary between 500 sq.ft 1 BHK units/studio apartments to 2,500 sq.ft villas. The projects are priced keeping the limited resources of retirees in mind. Most properties start at Rs. 25 lakhs. Depending on the amenities and services, prices may go up to Rs. 1 crore.

Luxury homes: What ultra HNIs in India look for ?

For professionals, under the ultra High Net-worth Individual (HNI) strata, a readymade villa or an apartment is the most desirable form of luxury home, as per the CRISIL-Kotak Bank report. Inheriting ultra HNIs, at the other end, prefer to build customised villas on their own piece of land.

However, when it comes to the most sought-after factors for buying or developing a luxury home, it is “location” which is common for both the types of ultra HNIs. After location, interiors, size, exclusivity, architecture and automation come into picture. Among these seven factors, price is the last consideration for these high-flying individuals.

What is the definition of ultra HNIs?

But is it really a big market in India? How many households are there in this category? The CRISIL-Kotak report expects the number of ultra high net-worth households (HNH) in India to triple to over 3.29 lakh households, in the next five years. It has been estimated that the collective net-worth of these HNHs will touch the levels of Rs 380 trillion (Rs 1 trillion is equal to Rs 1 lakh crore) in 2017-18 from Rs 86 trillion registered in 2012-13.

But what is the definition of an ultra HNH? It is the households which have a minimum average net-worth of Rs 25 crore accumulated over the past 10 years. This amount of wealth is further mapped to a minimum income of Rs 3.5-4 crore.

According to Ammul Goel , director, Pushpganga Ventures ,Pune  “The luxury homes segment in India is growing at an annual rate of over 35 per cent, on an average.” If experts are to be believed, the segment remains relatively less-worried about the economic environment and their buying decisions are more of personal preferences than financial fitment.

What do they look for within a home?

Personal plunge pool and mini theatre are the top priorities for ultra-HNHs in India. Homes, equipped with personal gyms and sauna, add to the appeal. Within a home, exclusivity remains at the top of the mind.

“To meet the taste and requirement of HNIs, the trend of introducing ‘branded homes’ is fast gaining prominence,” says RK Arora, chairman and managing director, Supertech. These branded homes are constructed by leading real estate developers in close collaboration with architects and companies who have specialisation in the luxury homes segment.

Are they considering foreign locations also? Ultra-HNIs, who regularly travel to specific foreign locations, like to buy second homes there. Industry reports indicate that Dubai, Singapore and Malaysia are among the preferred Asian countries Indian HNIs like to buy residential real estate. In the United States, New York is the preferred destination while in the United Kingdom, real estate transactions from Indians are mainly concentrated in and around London.

For key property investors, the real estate scenario in East Pune has something to cheer about. Localities in East Pune (especially Kharadi, Wagholi and Hadapsar) have witnessed a lot of industrial activity and caught the attention of the IT/ITes companies and professionals, resulting in a spurt in demand for residential properties in Viman Nagarand Kalyani Nagar.

An in-depth analysis of the market reports suggests that property prices in East Pune have shot up by a considerable degree, thanks to proximity of the localities (like Kharadi) to the IT/ITes hubs and residential destinations, promoting the ‘walk to work’ culture. For instance, a 1000 sq ft 2 BHK apartment that was priced at Rs 49-Rs 50 lakh in areas such as Kalyani Nagar and Hadapsar (till June 2013), now sell at a whopping range of Rs 52-54 lakh. Such prime localities in East Pune have encountered a steep rise in property prices by 5-8% in Q3 2013.

What sustains growth in such localities?

According to market experts, there are numerous reasons why the localities in East Pune have been able to keep up the pace and support growth, even when the real estate sector of the nation is witnessing a challenging situation.

On account of proximity to Kalyani Nagar and Koregaon Park, Mundhwa has witnessed huge development in the last few years. With an expected conversion of land parcels into non-agricultural plots, experts are of the notion that the area will experience major developments in real estate.

Capital values have also made a significant contribution in keeping the localities high on growth track. In Kalyani Nagar it is slightly above the edge and hover around Rs 12000- Rs 1400 per sq ft. while in Koregaon Park, the average capital values for 3Q 2013 range between Rs 14000-Rs 17000 per sq ft.

Connectivity holds the key

Connectivity is one of the traditional reasons for the growth of any area and East Pune localities tags along with it. The Mumbai Pune highway helps commuters reach the localities in east Pune with ease. Reaching the airport or railway station from the localities in east Pune is a matter of few minutes.

Proximity to the airport and improved connectivity have helped Viman Nagar to become one of the preferred locations for investors and end-users. in addition to it, Camp with close proximity to good infrastructure, public bus stand and commercial offices have proved to be one of the most sought after locations in the Eastern Corridor.

Widening of the Nagar Road played a key role in improving connectivity and resulted in higher office space demand in East Pune. In addition to it, the proposed metro rail station in Hadapsar will further shoot up the connectivity in east Pune and carve it as the region with long-term prospects for property investors.