Puneproperties blog

Impact of Demonetization on Real Estate Business

Starting from the beginning of demonetization every business activities got delayed and the major impact was created on the businesses that dealt in liquid cash. Real estate is one of them as it involves daily labors, materials and many other areas where liquid cash transactions are much need and bank transactions are avoided. As we all know that real estate is such a market where black money was a permanent resident, now that the situation has seized the existence and that has resulted in sales drop. Most of the giant real estate developers are now in fix with the luxurious sector housing than the general ones.

The impact of demonetization on real estate:

Real estate sector has always been on profit retention as the depreciation was never a concern but demonetization has seized the cash liquidity and that has shaken the every sector hence depreciation on property value can be expected only for time being. Asset building is always one of the major investments priorities for most of the people and that it won’t die any time sooner but due to demonetization, the process has taken a back seat that may take some time to cope up.

Loans and rates:

Since this market is dependent on heavy cash transaction previously the banks offered high-interest rates and now that banks are full of cash deposits; thousands of crores are ready to be distributed at a low interest. But this sector is of high investment concerns, the low-interest rate may be limited to certain time bound. As this market has hit a low because of the demonetization the prices and rate are affected but in the long run, the situation may revive and price may start rising. If the demonetization effects continue for another few months you can expect a lower loan rate but since reports have stated that the cash liquidity is restored and from 1st February 2017 onwards withdrawal limit is eliminated chances seems quite narrow.

From a real estate developer’s point of the view:

White money was always a part of the real estate and black money was accepted for leveraging the daily liquid cash transaction in terms of labors or materials. Most of the young buyers are dependent on loans to purchasing a property and that for salaried people cash transactions were always avoided because of tax filing protocols. Now that the property prices are affordable many people can get their desired property within their budget that makes it highly affordable and this real estate business to revive sooner.

From a buyer’s perspective:

Demonetization is actually a win-win situation for the buyers who are not dependent on liquid cash because the whole sector is on sale and the property price dropped around ten to eleven percent moreover, the loan rates are also quite affordable. As a fact, the location price never drops as this is already set-up figure and that only the property price are dropping that too for a limited time. From an investment perspective, this is an ideal time to invest on real estates.

Is property price dropping?

Currently, the market seems volatile because of the demonetization effects as the liquid cash is limited and this business is constrained by daily wages schemes. But then again, a certain section of people who previously found the property rates were over-rated is now investing. Property price does have a significant impact but only for the stipulated time, when the effects of demonetization soothe the prices are expected to rise. Then again the luxurious housing may take the time to revive and that most of the buyers would avoid as they even have financial strains.

The real estate market was home for the black money investors and demonetization has surely curbed the investment scenario for them. Due to limited cash transaction buyers and sellers are in a fix, as taxation and charges come in the process. Demonetization has already set the property prices on the discount rate and most of the estate rulers are now offering distress sale. For people who could afford the over rated property rate can now easily make their move.

Though the effects of demonetization have hit the real estate sector badly and in last few months the sales dropped to fifty percent but it won’t take the time to revive. Because in this phase people who have money is not able to withdraw in a large amount or make any payment, but once the effects reduce the banks can provide cash fluidity then the situation will start changing.

As most of us don’t really know the changing scenario of demonetization and that we are just following a wait and watch policy, the property rates have dropped because of demonetization panic, and people want to collect their investment and not wait for things to settle. This is undoubtedly the best period for buyers as they get to purchase at best rates and not the market hyped rates.


Investment Impact On Real Estate Post Demonetization

For a novice Indian the term demonetization is very confusing. The confusion spurs from the likely impact of currency ban and the economic impacts of it. While this currency ban has been testing the patience of businessmen and working professional alike, it still remains to be seen the effects of this government policy on key business indicators.

One of that sector is real estate, and the impact on this sector post-demonetization is the question everyone asking. Will it help or will become the curse for real estate investment and what are the likely options for investment based on future trends of the economy? The article will look for the likely possibilities.


ROI on Real Estate Investment

The general theory that is making rounds is that a major amount of black money is invested in real estate sector. Now, when there is a stop of black money pouring in, the real estate market will slash prices current and future, bringing down the overall return on investment (ROI). So, while one can expect the property cost and real estate loan rate to go down a little, for now, will that also mean the future prices in a real state will remain low? Experts may not agree.

The cost of a property is directly proportional to the investment. Due to demonetization opportunity to invest black money is virtually over. The transactions are supposed to be clean and through identified gateways. The primary investment in real estate for land and material through white money will go up, eventually resulting in the high prices of property. This phenomenon is the most likely outcome out of demonetization.


The Supply Demand in Real Estate

The property prices will also go up based on the ‘supply’ factor. The genuine working class (the great middle class of India) is not greatly impacted by demonetization. Their demand for housing and real estate remains more or less static. However, with curbs on black money transactions, the small scale developers are likely to hesitate from pumping in money in new projects.

As there will be lesser housing projects, the supply is likely to fall as compared to demand. This shift in the demand and supply balance is likely to trigger the real investment prices. And this is likely to remain for the next two fiscal periods. Therefore, any investment in the real estate will possibly give a handsome ROI. In other words, the focus of real estate developers will loom towards working class community with white collar jobs, who are the most active property seeker.


Interest Rates and Impact on Home Loan

The RBI clause regarding the interest rate on loans for real estate is also expected to go in favor of the general public. The interest rates should fall, thereby luring investors and bring a general sense of wellbeing for this particular sector. This small step encourages the new potential investors to see property as one of the best possible ways to expect a fair return for their hard earned money.

The Inflation Worry

 Demonetization will also fan the fire of inflation. Some economists project this trend as negative growth for long-term investors. With the progressive increase in prices of good and commodities, there is lesser to save and invest. Demonetization policy was enough to bring down the rate of development to snail pace.

Markets were empty and spending almost negligible. The short term deflation was a big dent to traders, but then this revert in trend with inflation almost suddenly can leave buyers in bewilderment and confusion. Inflation is never good for masses and can slow pace the growth of most economic sectors, including real estate.


Alternate Investment Options

So what are the best possible option to divert your investment? If you are hesitant towards real estate investment then there some other good opportunities to expect assured the return of your hard earned money.

  • One of the best areas of investment in putting money in Gold Assets. The prices of gold came down rapidly because of the supply over exceeded demand. But for a smart investor, this is real time to buy gold assets. Gold being the international monetary standard will definitely see the increase in prices. And since donning gold is a fashion statement in India it appears to be a very wise investment.
  • Insurance is another sector that guarantees a fair return on your investment. Insurance of yourself, family and even your employees is a good way to divert the funds for long-term future benefits. You can ponder over life insurance as well as health insurance as the most likely policies for investments.
  • Mutual funds are the next best option of improved return on investment. The liquid mutual funds are in vogue and allow you to divert all your petty cash. They are extremely convenient to access, modify and gives you control of how much and when to disinvest.

This was our analysis on how demonetization has influenced real estate investment. I hope this blog will help you to take a wise decision about real estate investment.  Further, if you have any query, please comment below!


Will Property Rate In India Ever Come Down?

The inflation of the economy has a stable and sturdy growth unlike our income. Property is an asset with no depreciation of value; in fact the rate rises with years. Here, an old or new building doesn’t have much difference in value while selling. Country’s population is rapidly growing and people need a place to put up, hence property is a asset that can never go out of market. Moreover, most of the NRI invests in hometown property as their retirement plan, the investment are relatively high in property rather than any other assets.

I wonder what increase the rate of these lands, as everything was previously available only structure was not. The material of the property doesn’t change only the location gains the value. You will find there are many place in India that earlier had no value, but certain development in that area had boomed the market value of the location, the areas where no one can think of any building are now worth crores. What is it with the rates soaring high?

Previously in India the relationship value was pricier than privacy and comfort zone, hence the joint family concept was viral, but time definitely managed to influence the mind set of people’s living, now most of us look for comfort and privacy over relationship values. In this way, either you or your children are buying home. The builders understood that the population can’t be controlled hence they started to build new homes for every kind of budget as per the demand.

Reason Of Inflated Property Rate In India. The population is rising and so is the demands of lifestyle, all you need is the place to stay in order to address the demanding life.

  • Loans: All you need to buy home is a promising business or a job, rest the banks are ready to pay. The banks offer housing finance with schemes and fund where you can continue to repay for agreed years of time. In short you are not blocking any major capital yet you can buy a new home with your current salary structure. Now a day’s in most of the families there is more than one earning members. So the financial pressure is not high on a single person and yet the desires are full filled through installments.
  • Transport: Transport in India has developed in a quick span of time. Location of our house doesn’t matter because of public transport availability. You can buy your house in any in locality and find transports. Ever since the pre book cabs are available transportation is not a problem. If you are putting up a little far from the city if get local train and bus facility, leave apart the metro cities where you can avail metro the fastest road commuter.
  • Luxury apartment:  are fascinating for the current generation, they are ready shed few more lakhs of rupees to avail all amenities within the apartment. The builders are competitive in developing the building to suit the luxury taste for their clients. There are certain properties that offer one complete floor with swimming pool and garden inside the house, this means bungalow style apartments. The location of these properties might be on an off-beat location but still people buy them. This is because the owners already have cars for transportation and all that matters to them is luxury. Though the land value may not be high but the property have soared the price of that land.
  • A land price:  also gets affected with complex type properties. These complexes have more than three towers with many apartments. They also feature small shops, kid playground, and rooms for other activities. If the complex is properly placed then it doesn’t take time to trigger the land price.
  • Ownership: Most of us start to save some money when we start working, the reason is simple we save for our future. We first start investing in transportation to reach to reach any location easily but then again it depreciates with time, the next best option is to make an asset which is owning a house which remain for lifetime.

As per reports property investment is best asset building option this is because your property can be sold to generate huge sum of money anytime. Moreover, you will find many properties are set on rent or lease, which brings additional income in the house. Basically, it’s a win-win situation for the owner in regards to their investment.

The properties depreciation value is less unless sold in an untimely manner. In fact the land price keeps rising. Here the owner doesn’t face any investment set back. Buy a property and wait to three to four years and you get at least 30 % return of your investment.
Sometime it is hard to accept the inflation of the property rates, the land value which at one point of time had no value suddenly soared up. But the location, amenities, and others are not the only issues for the rise. There are certain fees the developers have to pay while building the property. The payments are usually heavy and indirectly get added to our pocket while purchasing the property.
Now you know the reason for the inflated property rates in India and why it will never come down.

vastu tips for home

10 Must Follow Basic Vastu Tips For Home

Vastu is an ancient science which is highly practiced for better living. Every corner of the house reflects their energies on you and your family. Though in modern building and apartments proper Vastu is not possible, but there are correctional remedies to suit the house. You can live a blissful life by living in a Vastu designed home, problems are bound to take place, but these following remedies can help you to escape the worst scenarios.

Basic Vastu tips to attract positive energies in your house:

  1. Starting with entrance, place your name plate outside your door. The logic as per Vastu Shastra is, everything enters from the doorway; the nameplate bears the owners name that will help the positive energies to find the owner. If you have an empty wall at the entrance cover it up with a Ganesha statue or picture, Ganesha symbolizes prosperity, it stimulates the energy inside the house.
  2. Did you know that fire has cosmic power? This is because it is one of the five elements of earth. Lighting diyas or essence stick in the morning or evening helps to clear the negative energies present in the house. Removal of negative energy helps to spread the positive energies properly inside the home, thus the negative energies won’t have any direct effect on you or your family.
  3. Most of us decorate our living room with pictures and posters; make sure you do not put up any poster which is related to any war scene or uninhibitedness. The negative energies get traced by this kind of images, thus breaking the peace of the house and within the family members. Every family has some issues but when you see the small issues turning into a problem, it means the presence of negative energy.
  4. Place tinkling metal bells at the entrance or windows, the sweet sound of tinkling is said to shatter the negative energy structure. So incoming negative energies will get shattered and the inflow of positive energy can easily prevail inside the house. This method of shooing negative energies is also mentioned in Chinese Feng Shui where they use plastic wind chimes.
  5. The kitchen is the only place from where negative energies affect your health. Try to set up your kitchen in the southeast corner of your house. Your kitchen should have a good distance from your bathroom or bedroom. Ensure you do not store your medicine inside the kitchen, as medicines are directly health related that may have an adverse effect.
  6. The bedroom should be placed on southwest direction. Do paint your bedroom with bright colors as it has a huge impact on energy manipulation and your mood. If you are married use a single mattress for your bed and wife should sleep left side of the husband. Ideally, you should never place a mirror inside your bedroom, but that’s not possible so keep it away so that your bed won’t reflect.
  7. Bathroom: Did you know bathroom also plays a key role in your home? Any kind of water leakage from the tap reflects on your wallet, unnecessary expenditure rises up. Apart from financial problems, health issues also knock the door, although nothing major is bound to happen but your stress level surely gets affected. Placing your bathroom in north or northwest is the best option.
  8. You should place your study room or working desk at the west, this zone keeps you calm and composed, and your focus level is undisturbed. Else, you can use extreme northeast zone for this purpose. After all, your education and work will effect on your financial status. Do not use bright color paint, use light and soothing colors especially blue or green based, and the room should be well lit. Try to avoid bathroom inside your study. Place the clock on the north wall for better results.
  9. Puja or yagna are performed to keep your house Vastu dosh free. Place your puja room in the north-east corner of your house and never place it in the south even the idols should not be placed in the south direction. Basically, pujas remove all negative energies from your home and also purifies your home atmosphere. Apply white or yellow color on your walls.
  10. If you have a garden, try to place it towards the north and make sure you place a tulsi pot in the north direction for good garden Vastu. Do not grow any small shrub plants like cactus or any thorny plants. You can keep a small water fountain this will help to bring in wealth. Place your sitting area towards north without shade. Keep your parking slot towards the south-east of the plot.

Vastu Shastra is a science of attracting positive and negative energies. Our day starts in our home and night’s ends there too, thus keeping the positive energies around us is very crucial for a healthy life. Most of us have heard many stories from owners of many houses that after moving to their new house they are facing problems and they call their beloved pad unlucky. Let me tell you everything around us has meaning things don’t take places just like that it occurs by our moves only.

best places to invest in india

Upcoming Smart Cities-Best Places To Invest In Property In India 2016-17

The current year budget and government’s initiative to push the concept of ‘Smart City’ have together offered great news for the property investors especially the first time buyers, who intend to buy home for less than 50 lakhs. It is certainly difficult to find a home in metros within this budget but  the Tier 2 towns offer opportunities and hence this short write up has picked eight such places. These destinations are not only benefiting the buyers but also can be considered as great investments, recognizing the potential price appreciation over the years. Here is the list of Small Cities where one could make investment bets in the year 2016-2017 in order to get good returns in the next few years.

1. Bhubaneswar and Cuttack: Fast Growing Twin Cities

Undoubtedly,these twin cities are emerging as IT educational hubs in the east. Since the places have more lands owned by the government, the real estate market is well staged and properly regulated. With the presence of Infocity-1 and KIIT deemed university the areas in north and southwest of Bhubaneswar are growing very fast.

  • Growth Drivers: Great commercial projects in DLF Cybercity, six-lane in the NH5,Industrial project at Kalinga Nagar and  Paradip SEZ projects will surely  influence the real estate prices.

2. Visakhapatnam: A Largest City in Andhra Pradesh

Visakhapatnam also called as Vizag, is developing as a big commercial hub of AP besides being proud of having one of the largest harbors in India. The city is considered to be the largest in the city considering its area and population. The bifurcation of AP has given a new thrust to this commercial city, as the city has already been attracting several real estate investors in the past. Residential places like Seethamadhara, Madhurawada, MVP Colony, Packer Layout, Lawson Colony and Rishikonda are poised to have better capital appreciation in near future

  • Growth Propellers:  The proposed Visakhapatnam-Chennai Industrial Corridor, Metro rail at Vizag, growth of IT companies around the city will surely create employment opportunities which are bound to increase the demand for residential properties.

3. Chennai (South West): Known for its largest nodal centers

Being a gateway to South India, Chennai is known for its customer-driven market and is less prone to speculation. Nodal areas like Sholinganallur, Siruseri along with the famous GST road have formed as a fulcrum for many multinational IT companies as well as other automobile firms. Outer ring road has already emerged as the best-growing investment market.

  • Growth Simulators: Outer Ring Road II, Chennai Metro, proposed monorail, MRTS are the right factors for the investors to consider in these ever growing Chennai’s outskirts.

4. Coimbatore: The ‘Manchester of South India’

Being the second largest city in Tamil Nadu, the Coimbatore city has diversified its activities besides textile and spinning industries. Sectors related to automobile parts, general engineering and IT have grown phenomenally in this great city. Places like Saravanmpatti, Race Course Avinashi Road, Trichy Road,  and Vadavalli are poised  to emerge with a goo  capital appreciation in the next few  years.

  • Growth Potentials: Fly over the project at Gandhipuram, growing residential projects at Ring Road, Developing Western and Eastern Bypass, proposed Bus Rapid Transit System are the real eye-catchers for the property investors.

5. Kochi: Best Commercial Hub in Kerala

Being  the largest commercial hub of Kerala, the city of Kochi  takes pride in the privatization of the International airport as well as for its up gradation of the sea port, which have enhanced the prospects of the real estate market in the recent times. Though the city is known for its NRI driven market, the housing demands have reached a new level  in the recent times due  to the emergence of IT park an Electronic Park in Amballur village. Investing in low-valued properties in places like Kakkanad, and Aluva,seems to be worthwhile for the first time buyers.

  • Growth Accelerators: Projects such as Vallapaam Transhipment Terminal,Kochi Metro,Industrial corridors between Kochi and Coimbatore are sure to double the job opportunities and exports in the coming years.

6. Pune: City with natural beauty

Being located near the India’s financial capital Mumbai, Pune city has always been busy in areas like education, engineering, automobile and IT which have propelled the real estate activity and the place has become the most sought-after location for all types of investors. The real estate market has steadily grown in this quite city. Areas in the western Pune such as Dhanori, Kharvadi and few more seem to be the best bet for the investors.

  • Growth Engines: Metro rail and Bus rapid Transit system, International airport  and the ever busy Pune –Mumbai express highway are the main factors that can make this city in the higher pedestal for investing on properties.

7. Ahmedabad: Gujarat’s largest commercial hub

When it comes to employment landscape, Ahmadabad stands tall than many other cities especially in the areas such as textile, engineering, chemical and automobile industries. Being a city with end-user driven real estate market, experts predict there will be a significant price appreciation in the outskirts of this wonderful city. One can see good opportunities in east and north sides of the city.

  • Growth activators: Proposed GIFT city, Sardar Patel Outer Ring road, Metro rail project are some the key factors that make perfect enlightenment for  the investors.

8.Indore: Proud city to have both IIM an IIT

Being an educational hub in  the center of India, Indore has a very strong pharma industry along with the auto industry. These two factors influence the city in the real estate market. Prices in the developing areas will be driven by the investors due to oversupply. Lands are abundantly available in Super Corridor due to the emergence of near IT parks.

  • Growth Movers: The BRTS project, upcoming super corridors where IT giants are setting up their offices a few more industrial projects are sure to witness a huge scale residential developments.

In an Indian scenario, the real estate business is quite complex in nature but considered to be very dynamic. Though the industry has undergone some sluggish period, there is no evidence that proves the property prices have fallen drastically in the metro cities. Though some of the ‘Smart Cities’ are not among the familiar residential markets today, they are poised to grow significantly over a short period of time. Investing in the above mentioned  ‘Smart Cities’ looks to be wise any further delay can be proved as a loss of opportunity.


Be smart! Buy Homes without paying the Bank Interest

Buying a home is nothing less than a challenge. It seems to be so daunting that people just drop the idea of getting their home and instead prefer staying on rent for years together. The foremost thing one must plan is to set the assets acquisition objectives one may have and then see how buying the home property fits into the work plan set to achieve those objectives.

While for a certain set of people, a home is an investment to convert all the money that they pay for a rented house, which they can channelize into the mortgage payments to get their own house. On the other hand, certain another set of people believes that owning a home gives them independence and they take delight in being their own proprietors.

Best options for the First-time Homebuyers

The First-time homebuyers have a wide spectrum of possibilities that they can opt for to acquire their own home property. The FHA (Federal Housing Authority) backed mortgages are customized especially for the beginners. In addition, there are several home buyer programs for the first-time buyers that offer the minimum down payments, which are as less as 3% to 5% in comparison to the standard 20%. It is even more surprising that few payment options require no down payment to be made at the beginning.

The Guardian Corporation ventured into the Real estate sector business and has started dealing with the commercial and residential projects since the last three decades. Adding more and more satisfied customers onto their list, they design and build houses that are styled and carved with utmost attention to the location and lifestyle of the people, especially the today’s generation. With the plans of building over 3 million square fits in the next few years, Guardian developers have come up with the innovative idea of fully or 100% interest-free homes. This is one of the most innovative and thoughtful concepts launched by Guardian developers that is worth appreciation. Below is a presentation of the points stating how the whole process functions and how the pathway to your new home becomes much easier than ever before.

The process flows for 100% interest-free homes

  • Any customer who is interested in buying a residential property will visit the Guardian Developer office. The branch information can be taken from the website. The interested client can explore several options once they walk into the office where they receive the complete assistance and guidance from the concerned staff. It is always important to talk clearly and discuss options when one is thinking to buy a long term asset.
  • When the customer expresses their preference for booking a home under this offer, after learning and collecting the inputs from the real estate advisor, they can make a payment of one lakh in addition to the service tax (Enrollment charges). This particular amount is charged as the Enrollment amount. However, the flat allocation is not done at this stage.
  • The customers are required to submit the KYC and other documents for the further processing. KYC is extremely important to identify the clients and is a protocol that should be followed definitely.
  • Following this, the customers are called for the selection of the flats under the 100% interest-free homes offer. They are set by the firm based on their respective enrollment number. The clarity and integrity are maintained throughout the process. A predefined allotment process is followed, and the project based allotments of the flats are done within four months.
  • During the allocation of the flats, the clients have to pay 20% of the total amount value of the flat in addition to the service tax. The enrollment amount shall be adjusted by this amount. The customer is then supposed to make the payment for the completion of the stamp duty, registration and VAT processes within a period of 30 days, and with the payment, the final agreement is registered. This process smoothen the ownership transfer for the client, who can gain confidence after the completion of the registration.
  • Three payment slots with duration of 12 months, 24 months and 36 months from the date of allotment of the flat are facilitated. This payment is 5% of the value of the flat. The major advantage of the client is that the remaining amount will be paid in Interest-free installments. In fact, the customer gets the possession of the flat on the 3rd year from the date of the agreement.

This complete offer is the win-win circumstance for both the buyer and seller. The buyer does not have to pay the interest cost and this innovative financial option is very beneficial for the home buyers. Overall, the customer is only supposed to pay the cost of the flat and the same installment amount. This scheme is clearly very appealing as the same house loan under a regular plan would have been for the duration of over 20 years with the customers paying almost the doubled value of the property. The customer needs to be aware and diligently investigate before investing in such offers. Since this is a long-term investment, it is always wise and healthy to deal with companies like Guardian developers, who are reputed and committed to meet their objectives of excellent client satisfaction.


Be Aware Of The Real Challenges Faced By A Property Owner While Selling The Property

Due to many complexities are involved in the process of selling a property in India, many property owners find it hard in the whole transaction. Since every transaction is unique, there are various challenges a seller has to encounter while selling his or her property, whether it is a small home or a piece of land. For the purpose of simplicity the term ‘property’ is used to indicate both home as well as land. Wherever needed specifically, these two terms are used separately.

Below are the top 8 challenges that a property owner needs to encounter while selling his or her property.

  1. Local market trends: Since the real estate industry in India is highly dynamic with fluctuating prices a property owner needs to be aware of the current trends that are prevailing, before making a decision to sell a property. Since every local real estate market is unique, the month of sale can make a great impact. Hence one has to balance the market trend as well as the period of sale which is really challenging especially while selling a large land area in rural areas.
  2. Effective negotiation of price:  This is one of the challenges most sellers overlook. The art of negotiation is an important part of the selling process. Here a seller should never allow the prospective buyer to bargain the price and a seller should always stick with the price gently and firmly. In the case of showing any flexibility, one has to clearly define the limits of price discounts or freebies. A smart negotiation will always end up with the mutually beneficial agreement.
  3. Tackling emotions: Most of the property sellers in India are succumbed to emotions just before or after the transaction. Aspects like excitement, the long attachment will always be coupled with stress and bit nervousness will always pose a big challenge to the sellers while disposing a home or even a land in any area. One should always keep it mind that selling is a kind of business decision and hence there should not be any place for such emotions.
  4. Choosing a right agent: Majority of the property sales in India are still done through professional property agents. This is absolutely true when the seller is in a remote place while selling his or her property in another place. More importantly, these professional agents have great understanding of the real estate trends and also have some negotiation skills. They need to be chosen depending on their expertise they have in dealing home sales, land sales, and commercial sales. Though this selection can be challenging but can be rewarding for the sellers.
  5. Legal Issues: A seller needs to be aware of the legal issues involved in selling a property. One cannot be a layman when knowing some of the legal intricacies that may rise up while making the sale. This is more so while selling a plain land in urban and rural areas. One has to ensure all the relevant title deeds are perfect without any glitches, as this seen by the buyer’s advocate.
  6. Showing the property at its best: This factor is not only challenging but also mandatory.
    • Home: First impression is the best impression. Every owner has to the responsibility to keep the home attractive in order to sell easily. Show the buyer a neat and well maintained home by solving few minor issues. A good appearance will surely convenience a buyer and works better for the seller. All other things are only details.
    • Land: A clean and sound looking land  will surely make a quick sale. Keep the pathway neat during the inspection period. Prospects would not like to travel on a place with potholes to reach the property. Make clear boundaries so that they easily visible for the buyers.
  7. Getting appraisal by the bankers: Not every buyer buy property with full cash. The majority of the people buy through banks that offer finance. In such cases, the property should be appraised by the banks through their own appraisers. Getting the right appraisal is one of the challenges faced by both the sellers as well as the buyers. Such value appraisals should be in tune with the seller’s expectations which are really challenging for the sellers.
  8. Closing a perfect deal: Not every selling  transaction ends with a perfect finish. While some end with arguments or dissatisfaction from both the sides. Here a seller has to carefully handle the matter with great care in order to clinch the deal in a professional manner so that both parties should feel the win-win factor. Professional lawyers have to be hired for the deal in order make the legal process with great accuracy before making the sale document ready for signature with witnesses. All types money transactions should happen at this stage. Being a crucial part of the transaction, this challenging job seems to be vital for both the sellers as well as the buyers.

In conclusion, the sellers need to know the fact that it is really a daunting task to listen to various opinions while selling a real estate in India, whether the property is home or a land. The challenging factors mentioned in this short write-up have been largely proven time and time again. These inputs will surely help the sellers either in clearing up what they are unsure about or give them some new information. More importantly, recognizing these challenges and acting on them will surely award the seller with a great amount of satisfaction.


Ready To Move In Property: The Next Generation Home Solution

Property buyers always look for the best deal they can find with the resources and time available to them. Property prices are now subdued more than ever and there are a lot of buyers in the market. Buying a property is the most tiring task. While the excitement of owning one’s own property pushes one harder to get involved the process, still the task of going through a lot of details may be frustrating. Going through the process is a must as any negligence can cost very big in future.

A question that bothers almost all property buyers is whether they should go for a ready to move in or an under construction property. Well, it totally depends on one’s current need, whether you are looking to buy a property for investment or for residential purpose, keeping in mind financial.

There are pros and cons for both the cases. Let’s go for each of them in detail:

Buying an under-construction property

Buying an under construction property is the most popular nowadays. Advertisements of the new housing complex are done through newspapers, TV and other media. Publicity is also done by various agents at different places such as malls, markets etc. Here the goal is to sell as many properties as possible before the complex is actually built.

Now let us look at the pros and  cons of buying an under construction property.


  • Cheaper – Buying an under-construction property is cheaper as compared to a ready to move in property In Delhi a ready to move in flat costs about Rs. 30-40 lakhs, while an under construction flat of the same type can be bought in the range of Rs. 20 – 30 lakhs. So the cost difference plays a very significant role here.
  • Low EMI’s- Initial EMIs are low in case of an under-construction property as they are paid as the work progresses.
  • Profit for both seller and buyer –A buyer gets the cost benefit while the seller gets a number of customers even before actually building the complex. So it’s a win-win situation for both of them.
  • High returns – This is the most important factor compelling buyers to invest in an under construction property. Such advantage is not possible in case of ready to move in property.


  • High risk – A lot of buyers lose their money because of  the builders not being able to complete the housing projects owing to the reasons like increased raw material cost, higher interest rates etc. such cases have been registered in Delhi/NCR.
  • Outlook of the market – Because of the crisis sometimes it is not possible to complete the project. The financial crisis of 2008 did not allow builders to build a chip factory, a few engineering and medical colleges, banks and so on which were supposed to be built at Hyderabad.
  • Sometimes practicality and paperwork don’t match – There have been many cases where buyers don’t get what they are promised.  The document work and actual property differ a lot, eventually ending in a conflict between the buyer and the seller.

Buying a ready to move in property

Buying a ready to move in the house has become the newest trend in real estate business Nowadays people are showing more interest in buying ready to move in property rather than under construction property because of the longer possession time of the latter. According to a recent report, even more than around 24,447 ready to move in flats available for rent in Bangalore.
Now let us look at the pros and  cons of buying a ready to move in property.


  • Immediate availability – All a buyer needs to do is to pay, sign necessary documents, and transport their baggage to the new place. Here buyers do not have to wait to move into their new house which holds a great advantage over the previous case.
  • What you see is what you get – In a ready to move property, you get what you see. Since the housing complex is ready, getting feedback about the nearby locality centers become easy. Many online firms are selling ready to move in flats in Gurgaon both 2BHK and 3BHK.
  • Immediate Relief from Rent – Once the buyer moves into the new house, he will not have to pay any rent. All the buyer has to pay is the EMI. However, in an under-construction property, the buyer will have to overcome the EMI and Rent costs. Hyderabad, a hub of software engineering jobs, the majority of job holders prefer buying the flats.
  • Low Risk – There is less risk of delays and developers in case of a ready to move property. In Chennai, several ready to move in apartment builders are spurring up due to rising demand.
  • Tax Benefits – In a ready to move in property, the buyer can claim tax exemptions on home loans on both principal and interest repayment immediately.
  • Only one of the worries with such flats that the buyer has no idea whether the property he is buying is properly constructed or not in terms of materials used the strength of the foundation. So if not maintained properly the house might be damaged soon.

However, opting between an under construction and ready to move  property is a matter of personal need and financial condition.
Under Construction Property is better, if:

  • One is buying property from an investment point of view.
  • One  wants  to buy a slightly bigger house in the budget and  can wait for it.
  • One wants better choice in terms of location.

Ready to Move in Property is better, if:

  • One is looking for immediate possession and wants to shift in. Such is the case of Pune where many buy a property every year.
  • One doesn’t want to take high risk and get into any disputes.
  • One wants to get rid of house rent .

Although the cost of a ready-to-move-in flat is much higher  than an under-construction property, this difference in cost seems unimportant and  is readily compensated owing to the large number pf benefits one gets in case of a ready-to-move-in flat. Undoubtedly, it is a known fact that the projects that are ready to be bought by the buyers or projects that are almost nearing completion are expensive than the under-construction projects.

Nonetheless, many buyers are willing to acquire such property instantaneously once they are all set to make the one-time purchase of their lives that is their homes. They would not prefer waiting once they have set their minds and have finances ready for the purpose. Several sound reasons as mentioned above that put the ready-to-move-in flat, a much-preferred choice than under-construction property.

how gst will affect real estate

How GST bill will affect to buyers and builders?

GST (GOODS AND SERVICE TAX) is going to be the massive boon for all Indians, especially for builders and buyers. GST (GOODS AND SERVICE TAX) bill was passed by both government houses, Rajya Sabha and Lok Sabha will soon be imposed from 2017 onwards. The bill proposed and passed by the houses will unify the tax structure all over the country thus, waiving off the financial pressure on distribution and production of goods and services.

In the current scenario, we are liable for paying taxes levied by the central and state government; this includes taxes like Service Tax, Central Tax, Income Tax, Excise Duty, Vat, Sales Tax, Property Tax and so on. All these taxes will get eliminated by implementation of GST (GOODS AND SERVICE TAX). The tax is always on a higher note for real estate buyers and builders because, apart from selling and buying of the property many other aspects gets involved such as land value, material & manufacturing cost and many more. All these costs get added before the purchasing or selling.

Effect of GST (Goods And Service Tax) on buyers and builders:

1.    Stamp duty :
The state government charges the stamp duty for registering sales agreement for the plot although this tax varies from state to state. Now if you buy a furnished property (ready to occupy) from the builder, by law enforcement he is already issued with a completion certificate from the concerned department. Therefore, you do not have to pay the Value Added Tax (VAT) or Service Tax, in short, you are saving your property cost by 4% to 9%, then again this solely depends on the state where your will buy the property. GST will eliminate the procedure.

2.    S.T. (Service tax) :
From July 2010, if you are buying an under construction property, you are charged with service tax by builders and this service tax get deposited with the central government. The reason behind the scene was the disputed purchase contract of work in between the buyer and builder which includes the value of land too. Therefore the regulations regarding the tax on work contract were not imposed in residential property construction. The government in 2010 Finance act, has simplified the situation by the ¾ cost of the unit as S.T. (service tax) which is ¼ of 15%. Of the recent the taxation on under construction property act was probed but Delhi High Court ruled against it and it is at hold at sub-judiciary in Supreme Court of India. Since service tax is imposed by central government every state follows the thumb rule but it is different when it comes to VAT (value added tax).

3.    VAT (value added tax) :
VAT (value added tax) is imposed by states government and the amount gets deposited in their account. Every state has their own set of laws applicable to different matters, in property matter the VAT ((value added tax) is eliminated from few states whereas imposed by many. For states like Maharashtra, Haryana, Karnataka etc they pay an additional VAT (value added tax) while buying any under construction building, whereas states like UP (Uttar Pradesh) doesn’t impose any VAT(value added tax) for the buyer. VAT is the most debated tax issue as this is imposed by the state government and not central so everybody doesn’t fall under the same norms. The state government of Maharashtra charges 1% VAT (value added tax) of total value agreement whereas Karnataka imposes 5% VAT (value added tax) on the agreement, with the implementation of GST every state will have the same tax structure.

Benefits of GST:

  • Cost reduction
  • Less paperwork’s
  • Low manufacturing cost
  • Extra tax revenues
  • Higher GDP rate
  • Growth in export

How will buyers and builder save money with GST (Goods And Service Tax) implementation?

In real estate, the constructions of buildings or infrastructure incur a lot of taxes levied by the central government as well as state government, on many incidents it is seen that the builder ends up paying double or triple taxes for the same purpose. When GST (Goods And Service Tax) will be imposed, it will unify the taxation scale and eliminate dual tax payment, this will help the builder to reduce their on-site cost and save operational cost. The builder would enjoy a high marginal benefit along with improvement in liquidity and credit.

Under GST (Goods And Service Tax), the buyers previously implemented tax like VAT (Value Added Tax) and S.T. (Service Tax) will get waived off. Apart from this many building bare the luxury tax because of the amenities like a gymnasium or swimming pool or tennis court, all this can be eliminated with GST (Goods And Service Tax) implementation. Moreover, with the unified taxation, everybody will pay the same tax irrespective of their state. Here, the buyers get a transparent tax trail.

Home Loan Tenure

What Option Would Be Ideal For Home Loan Tenure: 15 Years Or 30 Years?

When it comes to a home loan, the aspect of tenure is considered to be the most critical decision-making factor in the home loan process. Undoubtedly, this factor has a great impact on the cost of the borrowing which in turn increases the overall cost of the property as well. A typical psychological human perception is that lower EMI simply means lower cost of the home loan amount or fewer burdens on the monthly budget. From a cost angle, it is not at all true. What is the best option? Well, the real answer varies with the different investment plans and other financial goals of the individual buyers. Read on to find the right guidelines that may act as a sign-post for the home loan takers.

Factors that influence the tenure of home loan:

  • Home loan amount: In general banks offer longer home loan tenure in order to get the home loan eligibility of the buyers. Accordingly, the banks always try to push a home loan of 30 years tenure in order to get more interest. If the eligibility seems to be the key factor a buyer can always avail the loan from the banks that offer maximum loan in order to keep the home loan tenure short to 15 years or 20 years.
  • Home loan interest rate: Though the interest rate varies from one bank to another, such variance is very marginal in most of the banks in India. Assuming all other offerings are constant, the lower interest rates are preferred for the shorter home loan tenure.
  • Equated Monthly Installments (EMI): If a home buyer keeps lower EMI it naturally increases the home loan tenure. Most buyers prefer low EMI in order to maintain their existing lifestyle, though such a step would be wrong in a financial sense. Hence one has to make a perfect balance between the two.
  • Age of the buyer: The general thumb rule followed in banks is : Maximum home loan tenure of 60 years minus the current age of the borrower. However, this factor is ignored if the home loan eligibility is not a big concern for the issuing bank. This is very true for people business communities who can always show more income than the salaried individuals.

Taking  clues from the above write up let us understand  some benefits of both 15 years home loan tenure as well as the 30 years home loan tenure. Keep on reading.

Benefits of home loan tenures:

   1. 15 years tenure option:

  • A borrower can save money by taking this option. By reducing the loan tenure a borrower can eventually save goo amount of interest savings.
  • A borrower can pay off his debt earlier and get a relief from the financial burden. In order to have a better credit score, one should not miss a single EMI. If a borrower has more money to spend , this option seems to be better rather than paying less EMI of the 30 years home loan tenure.
  • A sudden surge in higher interest rate can have a great impact when the payment tenure is too long. Hence the lower the tenure is always a better option over the longer ones.

   2. 30 years tenure option:

  •  A borrower can go to this option if he or she cannot afford higher EMI with higher interest rates. This option is found to be suitable for the individuals who otherwise pay 60-70% of their monthly income for EMI payments.
  • By opting longer tenure a borrower has the option of diverting the extra funds on other saving schemes that offer better ROI. Hence one can pay less EMI and make money through other investments.
  • This option allows the borrowers to stay prepared for meeting all sorts of contingencies and other financial crunches such as medical emergency, accident, the demise of the other bread winners etc. More importantly, this option will not allow the borrower to repent of choosing a longer home loan tenure, which offers relatively lesser EMI payment.

Choosing the right option is a daunting task for the borrowers as there are innumerable factors that decide the modalities of a home loan. One should not go by the words of the loan providers or friends since it is ultimately the borrower knows his or her situation well. A discussion with family members will be very handy in making them understand the situation of the borrower.

The ultimate bottom line is quite simple as most of the home buyers would be well served if they are opting for a 15-years home-loan tenure  instead of 30-years tenure. A lower interest and short term clearly mean that a buyer will pay considerably less for the home loan. The real glitch lies in higher monthly payment it is always wise to weigh the value of a less costly home-loan against the other types of saving priorities  such as college for children, retirement rainy-day funds.