Buying home? Read this first!


Sunil had seen a lovely apartment and he was in a hurry to buy it. As he did not have sufficient money to purchase it, he settled for the lucrative loan offer from a bank. Unfortunately, after some time, he found out that he was paying more towards the loan than his other friends. When Sunil attempted to change his lender, he realized that he would have go through verification processes for the property in question all over again and he felt that was an awful lot of bother to be put through all over again, the only good thing was that there was no prepayment involved due to the recent RBI ruling, which was encouraging!

 

Sadly there are many people like Sunil who take the first available loan offer and then are stuck paying heavy EMIs. They forget the fact that purchasing a home is a major financial commitment. It is a long-term commitment, which if not met can lead to forfeiture of home and poor credit rating. Hence you must be very careful while choosing a home loan.

 

Now the next question is what should one look for when selecting a home loan. Here is a checklist of what you should consider when opting for a loan.

 

Interest rate: Do you like the idea of paying the constant EMI every month or are you comfortable if your EMI changes periodically? If the thought of variation in EMI disturbs you then opt for fixed interest rate loan. However if you are confident of handling the fluctuations in EMIs opt for floating rate loans. Also there will be a difference in the rates charged for home loans by different banks. Hence it is advisable to shop around for the best possible rate at the friendliest terms. You can visit certain websites that let you compare loan offers from various banks and financial institutions.

 

Lender reputation: What do the former customers of the lender have to say about the quality of service offered by the lender? Was the lender responsive to the customer requirements? Check the feedback given by the users on the customer review websites. It will give you an idea of what to expect from the lender, so that you won’t be taken in by nasty surprises.

 

Prepayment penalty: What is the percentage of loan that the bank charges towards prepayment? Try to select the bank that charges the lowest possible penalty, as you will end up losing any possible savings that you’ll get by changing the lender.

 

Processing fees and other charges: Besides the above, buying a home involves other costs like insurance, processing fees, legal fees, inspection fees etc. Try to go for the lenders that charge the lowest charges, as these fees add up to the cost of buying a home.

 

These are some of the important factors that you should consider when deciding on the lender for your new home. Had Sunil been aware of these factors, he could have avoided the pain of being stuck in an expensive loan.

Source:MAKKAN

7 factors that propel home buyers to invest in Tier 2 and Tier 3 cities


These days Tier 2 and 3 cities are viewed as excellent investment option as the property prices in metros are soaring. Within Tier 2 and 3, most Metro city dwellers feel it is a good option to buy a property in nearby vicinity to the city rather than in a completely new city and with high property prices. Here are 7 factors that propel home buyers to invest in Tier 2 and 3 cities.

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Marg Swarnabhoomi project is a 1000 acre new township with 612 acres of Special Economic Zone (including the Engineering SEZ & IT)

1. Cost effective alternative to metros: Tier 2 and 3 cities are a better alternative as house rent, transportation, education, and many necessities are more cost effective compared to the expensive metros.

2. Second homes: Many buyers are buying homes in tier 2 and tier 3 cities as second homes to support their parents. Old generation often find it hard to catch up with the pace of metros. They often feel insecure and secluded. Tier 2 and 3 provide a comparatively hassle free life.

3. Retirement planning: With increasing awareness about personal finance and planning, people have started thinking of planning early for their retirement. Many prefer to spend their retirement in a place they grew up in their native place.

4. Appreciation in land rates: Land available in these cities is affordable now and expected to rise in the near future with rapid urbanization.

5. Better Connectivity: Most Tier II and Tier III cities are better connected today making them much more accessible. City like Amritsar has an international airport thus assuring a steady flow of tourists and pilgrims.

6. Better Standard of Living: With all the world class facilities now available in well developed townships and distances within the city much smaller than metros, Tier 2 and Tier 3 cities offer stress free life.

7. NRI Investing: Integrated township construction with a bungalow spread across acres of land is the most popular choice of investors in these cities. It is also a way for them to connect with their roots.

Source:makkan

What do NRI investors prefer in real estate?


An estimated 30 million non-resident Indians (NRIs) spreadover 140 countries have an estimated combined wealth of USD 1.2 trillion. Expatriates constituted the highest remitters of foreign exchange consecutively for the years 2010 and 2011. Over 6-8 lakh resident Indians leave the country in search of greener pastures and an estimated one lakh NRIs return home every year.

Among the various investment options contemplated back home, real estate plays a key role as the rate of appreciation and periodical returns on investment are more in India . Moreover, a number of NRIs, particularly in West Asia, who cannot continue to stay there due to domicile restrictions will have to return home one day or the other. This is one major reason why they always look at various investment options including real estate back home for permanent settlement.

There are three kinds of investors in real estate – low, middle and high income groups. Within these categories there are end-users as well as investors. In the Association of Gulf Cooperation Council countries (comprising UAE, Saudi Arabia, Qatar, Oman, Bahrain and Kuwait), an estimated 55-60 lakh NRIs are working today including semiskilled and unskilled labourers.

Similarly, out of 1.6 million NRIs in Malaysia the preference is more towards southern cities here from where a majority of them come. In Canada, there are NRIs predominantly hailing from Delhi , Chandigarh and other regions . In the US, out of 2.5 million NRIs, southern cities of Bangalore, Chennai and Hyderabad dominate in terms of real estate requirements. The specific real estate needs of NRIs vary depending on the region, savings potential and a combination of other factors. The largest market for affordable housing in the price range of Rs 15-25 lakhs is the Gulf region where there are a large number of expatriates who are either semi-skilled or unskilled, and the salary levels are not too high. There are high net worth individuals and technically-qualified professionals who constitute 10 percent of the NRI population. Many of this segment are looking for apartments in the price range of Rs 50 lakhs to Rs 1 crore and villas in the price range of Rs 1.5 crores plus. There are also others keen on investing in commercial property .

According to banks in the Gulf, the average home loan size is Rs 30-70 lakhs and the predominant demand revolves around apartments. The overall home loan business in Dubai alone ranges from Rs 720-800 crores.

Among the cities that drive real estate demand overseas are Bangalore, Chennai, Jaipur, Kochi, Mumbai, NCR, Pune and some other smaller cities. Even some Tier II cities are in demand. A majority of the NRI buyers are end-users . There are buyers looking for a second home for use by their family members, to earn periodical returns on the investment , or even to retain as a buffer to meet contingencies.

Investing in land is quite popular among NRIs too as those who cannot buy an apartment immediately are keen to invest in a lesser value asset. Land value appreciates fast.
With the relocation of more skilled professionals to developed countries such as UK, USA, Japan, and Australia, there is a growing requirement of apartments in the price range of Rs 70 lakhs plus in metros. Villa developments are sought-after especially in the price range of Rs 1.50-Rs 2.50 crores.

A significant factor is that these days many high net worth individuals prefer income-yielding assets such as leased commercial property or opt for pre-launch offers which yield 18-25 percent during the project implementation stage. A section of NRIs are also keen on investing in project level entities on non-repatriation basis by forming a partnership firm or incorporating private limited companies.

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Homes at Marg swarnabhoomi

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Source:The Economic Times

Why to invest in Swarnabhoomi Cityscapes?


Swarnabhoomi Cityscapes is an ambitious venture of MARG Swarnabhoomi to fulfill the dreams of people to own a plot. Swarnabhoomi Cityscapes proudly launches a wide range of highly appreciable villa plots on scenic ECR. There are number of reasons why you should choose Swarnabhoomi Cityscapes

  • From the house of MARG, one of the fastest growing Infrastructure Company in India with over 3000 crores worth of projects in progress
  • All the villa plots are flavored by MARG’s trust and transparency
  • These villa plots are located around MARG Swarnabhoomi, a 1000 acre aspiration city – Huge scope for high appreciations
  • Part of MARG Swarnabhoomi’s vision of 10,000 acre regional development
  • The region attracted other investments like proposed NTCP power plant, BGR Energy plant, TTDC sports complex and theme park
  • Access to shared facilities at MARG Swarnabhoomi
  • Strategically located to address work-life balance

Bay View villa plot which is located at just 1 km from the beach on ECR and close to Cheyyur Lake start from Rs.9.99 lakhs* onwards per ground. Bay View comes with a 571 premium sea view plots which is located on the entertainment corridor, just 2kms from TTDC Boat House (Mudaliarkuppam) and proposed water sports & Theme Park.

Surrounded by nature’s freshness and lush greenery, Lake View Garden  plots are premium pieces of land which comes with a price range starting from Rs. 7.57 Lakhs* onwards per ground. Lake View Garden offers 517 garden plots which are located on ECR in close proximity to Koovathur hospital and near proposed BGR Energy Plant.

Royal Orchard  villa plot inspires by the serene power of nature and its beauty is located next to Tapovan Ultra Luxury Villas by MARG ProperTies in tranquil environment comes with a price range starting from Rs 4.99 Lakhs* per ground. Royal Orchard offers 397 garden plots off ECR which are located just 18km from Maduranthagm Railway station.

Visit:http://www.swarnabhoomicityscapes.com

How To Buy Properties in India


There is no need to turn abroad if you wish to own luxurious mansion with those lush green lawns. Indian real estate industry has taken long strides to be in a position where it offers you a wide range of properties at most affordable prices. With rapid pace urbanization, new colonies and societies are springing up with lavish apartments and flats to accommodate all your requirements.

Lucrative Investment
Buying properties in India is one of the best ways to invest your hard earned money. The Indian real estate industry is thriving and experts predict that there are great chances of huge returns for the investors in the real estate sector. Massive migration from rural areas has generated huge demands for quick accommodation in the cities. This has certainly encouraged the property dealers and builders to come up with numerous development projects. The spiraling competition in the real estate sector thus offers you with some of the finest properties and that too at reasonable prices.

Plan Your Budget
First of all you should figure out your specific requirements. What type of property, what size, what amenities you wish, etc should be clear in your mind. Depending upon the requirements, you should set a budget for buying the property. These steps will facilitate you to select a property once you start searching one.

Scouting Out The Property
If you are looking for a property in India, it is advisable to explore all the possible options available. One of the best methods to collect information about properties in India is the online websites and portals. Conduct a thorough research on the internet about the different properties available. This will provide you a fair idea of the prices and the various amenities that you can avail at different localities.

 Once you have zeroed in the property, you should take expert opinion regarding its merits and demerits before entering into a final deal. Buying properties in India is a long term investment that guarantees profitable returns.

Source:http://blogs.realestateindia.com/2012/05/07/how-to-buy-properties-in-india/

What do NRI investors prefer in real estate?


An estimated 30 million non-resident Indians (NRIs) spreadover 140 countries have an estimated combined wealth of USD 1.2 trillion. Expatriates constituted the highest remitters of foreign exchange consecutively for the years 2010 and 2011. Over 6-8 lakh resident Indians leave the country in search of greener pastures and an estimated one lakh NRIs return home every year.

Among the various investment options contemplated back home, real estate plays a key role as the rate of appreciation and periodical returns on investment are more in India . Moreover, a number of NRIs, particularly in West Asia, who cannot continue to stay there due to domicile restrictions will have to return home one day or the other. This is one major reason why they always look at various investment options including real estate back home for permanent settlement.

There are three kinds of investors in real estate – low, middle and high income groups. Within these categories there are end-users as well as investors. In the Association of Gulf Cooperation Council countries (comprising UAE, Saudi Arabia, Qatar, Oman, Bahrain and Kuwait), an estimated 55-60 lakh NRIs are working today including semiskilled and unskilled labourers.

Similarly, out of 1.6 million NRIs in Malaysia the preference is more towards southern cities here from where a majority of them come. In Canada, there are NRIs predominantly hailing from Delhi , Chandigarh and other regions . In the US, out of 2.5 million NRIs, southern cities of Bangalore, Chennai and Hyderabad dominate in terms of real estate requirements. The specific real estate needs of NRIs vary depending on the region, savings potential and a combination of other factors. The largest market for affordable housing in the price range of Rs 15-25 lakhs is the Gulf region where there are a large number of expatriates who are either semi-skilled or unskilled, and the salary levels are not too high. There are high net worth individuals and technically-qualified professionals who constitute 10 percent of the NRI population. Many of this segment are looking for apartments in the price range of Rs 50 lakhs to Rs 1 crore and villas in the price range of Rs 1.5 crores plus. There are also others keen on investing in commercial property .

According to banks in the Gulf, the average home loan size is Rs 30-70 lakhs and the predominant demand revolves around apartments. The overall home loan business in Dubai alone ranges from Rs 720-800 crores.

Among the cities that drive real estate demand overseas are Bangalore, Chennai, Jaipur, Kochi, Mumbai, NCR, Pune and some other smaller cities. Even some Tier II cities are in demand. A majority of the NRI buyers are end-users . There are buyers looking for a second home for use by their family members, to earn periodical returns on the investment , or even to retain as a buffer to meet contingencies.

Investing in land is quite popular among NRIs too as those who cannot buy an apartment immediately are keen to invest in a lesser value asset. Land value appreciates fast.
With the relocation of more skilled professionals to developed countries such as UK, USA, Japan, and Australia, there is a growing requirement of apartments in the price range of Rs 70 lakhs plus in metros. Villa developments are sought-after especially in the price range of Rs 1.50-Rs 2.50 crores.

A significant factor is that these days many high net worth individuals prefer income-yielding assets such as leased commercial property or opt for pre-launch offers which yield 18-25 percent during the project implementation stage. A section of NRIs are also keen on investing in project level entities on non-repatriation basis by forming a partnership firm or incorporating private limited companies.

source:http://articles.economictimes.indiatimes.com/2012-05-26/news/31860951_1_nris-real-estate-price-range

Buying a property? How to arrive at an offer price


You may have zeroed in on the house you want to buy, but how much should you pay for it? You can’t kowtow to the seller and give him exactly what he wants.

Everyone knows that an asking price can always be negotiated. However, your bargaining may backfire if you quote a figure that is much lower than that demanded by the seller, which may prompt him to consider other buyers. Arriving at an offer price is always tricky.

On the one hand, there are reports that suggest property prices are rising, but at the same time, there are studies that point to a drop in demand for housing projects and the large number of unsold houses in every city. So, how do you arrive at a good number that will please you and the seller?

Do your homework

Try and get a realistic picture of the asking price before making a counter offer. Sellers usually hike the price by 15-20% compared to that of similar properties in the neighbourhood. “Don’t take the broker or seller at face value. Make enquiries in the neighbourhood about the condition of the property and the prices of similar properties sold recently.

This will help you compare the prices and assist you in arriving at the offer price,” says Ganesh Vasudevan, vice-president of Indiaproperty.com, a Chennai-based real estate portal. Some property agents deliberately hike the cost of a house since they know that buyers will negotiate. As they charge a commission, which is a percentage of the sale value, the higher the sale price, the more their gains.

/photo.cms?msid=13300794This is also the reason that the owners who sell their houses privately can offer a lower price since they don’t have to pay the broker’s fee. If you want to save money, you could search for the houses put up for sale directly by the seller either on the Internet or in newspapers.

You also need to check out the duration for which the property has been in the market. If it has been on sale for more than six months, you could easily haggle for a bigger discount.

If the house is mortgaged, knowing the outstanding principal could be helpful. “It’s possible that the seller may have defaulted in some of the payments or is finding it difficult to pay the EMIs. This will give you more bargaining power while negotiating the price,” explains Vasudevan.

If you are buying the property as an investment, you should also consider the potential rental yield. “The house should be able to yield an annual rental income of at least 6% of the property’s value. If the yield is lower than this, it won’t make sense to buy the house,” says Pankaj Kapoor, CEO of Liases Foras, a real estate research firm.

If you are still keen on the house, you can use the lower yield as a tool to further reduce the price. You can easily find out the rental value of the property by asking tenants in the area or checking the rent being asked for by owners on various property portals.

Let the broker know your budget

Kapoor advises that sometimes it is better to inform your broker about the budget you have earmarked for a house. “By doing so, you mentally prepare him and the seller for the discounts that you will ask for. The broker, too, is aware that the seller keeps some buffer to negotiate the price downwards,” he adds.

However, you need to be firm on the budget as the broker may pressurise you to increase it. “The agent will try his best to close the deal fast as it means quick money for him. So he will concentrate on the positive elements of the house and try to keep the rates high,” says Kapoor.

It’s always a good idea to keep a margin of 10% for contingencies. This may help you raise your price during negotiations. However, to ensure that you don’t lose out completely, your initial offer price should be marginally lower than the final price/budget you have allocated.

If you manage to get the house within your budget, the contingency fund will come in handy to carry out renovations in the house. It may need some touch-up, such as a fresh coat of paint, or you may like to make a few alterations to suit your taste and comfort. If the house is in excellent condition, you could use the extra money to pay the stamp duty and registration charges, which is usually 6-10% of the value of the property.

Don’t be hasty

“Though there is some risk involved, a potential buyer who is keen on negotiating the rates in a sluggish market should avoid showing urgency while buying a house,” says Kapoor. Obviously, if you seem desperate about the house, the seller will be unwilling to lower the price. You could use the time to collect more cash to buy the house. Om Ahuja, chief executive officer, residential services, Jones Lang LaSalle India, says that a buyer with ready cash always has an edge over the other buyers when it comes to negotiating the price. “The seller may be more willing to lower the price if he is guaranteed an immediate cash flow rather than having to settle for a deferred payment plan,” he adds.

Be specific about the deal

Ask the owner to specify the fixtures that he will be leaving behind. What you see installed in the house is not what you may finally get. For instance, will the ceiling fans or curtain rods still be there? Are the cupboards installed permanently or will the owner remove them? Such questions are important or you may end up spending extra for such essentials. It is possible that the seller may be moving to another city and is not keen on taking all his furniture and fittings along. If you like any item in a good condition, you could try to include it in the deal. This will be beneficial for bigger items, such as air conditioners, refrigerators and furniture.

Source:http://articles.economictimes.indiatimes.com