1.

CHARACTERISTICS OF REAL ESTATE INVESTMENT:

Real estate properties have its own some important features. Some of the characteristics that make real estate unique as compared to other investment alternatives are as follows:

(1). Tangible:
Real estate is, well, real! You can visit your investment, speak with your tenants, and show it off to your family and friends. You can see it and touch it. A result of this attribute is that you have a certain degree of physical control over the investment - if something is wrong with it, you can try fixing it. You can't do that with a stock or bond.

(2). Requires Management:

Because real estate is tangible, it needs to be managed in a hands-on manner. Tenant complaints must be addressed. Landscaping must be handled. And, when the building starts to age, it needs to be renovated.

(3). Inefficient Markets:

An inefficient market is not necessarily a bad thing. It just means that information irregularity exists among participants in the market, allowing greater profits to be made by those with special information, expertise or resources. In contrast, public stock markets are much more efficient - information is efficiently dispersed among market participants, and those with material non-public information are not permitted to trade upon the information. In the real estate markets, information is king, and can allow an investor to see profit opportunities that might otherwise not have presented themselves.

(4). High Transaction costs:

Private market real estate has high purchase costs and sale costs. On purchases, there are real-estate-agent related commissions, lawyers' fees, engineers' fees and many other costs that can raise the effective purchase price well beyond the price the seller will actually receive. On sales, a substantial brokerage fee is usually required for the property to be properly exposed to the market. Because of the high costs of trading real estate, longer holding periods are common and speculative trading is rarer than for stocks.

(5). Lower Liquidity:

With the exception of real estate securities, no public exchange exists for the trading of real estate. This makes real estate more difficult to sell because deals must be privately brokered. There can be a substantial lag between the time you decide to sell a property and when it actually is sold - usually a couple months at least.

(6). Underlying resident Quality:

When assessing an income-producing property, an important consideration is the quality of the underlying residence. This is important because when you purchase the property, you're buying two things: the physical real estate, and the income stream from the tenants. If the tenants are likely to default on their monthly obligation, the risk of the investment is greater.

(7). Variability among Regions:

While it sounds clich, location is one of the important aspects of real estate investments; a piece of real estate can perform very differently among countries, regions, cities and even within the same city. These regional differences need to be considered when making an investment, because your selection of which market to invest in has as large an impact on your eventual returns as your choice of property within the market.

2. ADVANTAGES AND DISADVANTAGES OF REAL ESTATE INVESTMENTS: ADVANTAGES:

Investing in real estate is as advantageous and as attractive as investing in stock market. Here are the main benefits of investing in property market.

Real Estate Investments are Less Risky:

As compared to other investments, less of misadventure is involved in a real estate property.. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rates stability; good history of land appreciation, less of inflation and many more.

No Need for Huge Starting Capital.

A real estate property can be procured for an initial amount as low as 1,00,00 to 2,00,000 and the remaining amount can be taken on holding the property as

security. This is what you call High Ratio Financing. If you don't have the idea as to how it works, then let explain with the help of an example.

Honing Investment Skills

A real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when you went ahead with your first real estate property.

Not a time taking Adventure

Real estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.

Leverage is the Right Way

The concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people's money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.

Real Estate Appreciation

An appreciation is an average increase in the property value over original capital investment, taking place over a period. There are some neglected real estate properties that have an appreciation below the average mark, whereas, some of the

properties located in maintained geographical areas, showing high demand, have an above average appreciation. In such centrally located and high demand areas, the average appreciation can reach up to 25% in a year.

Low Inflation
Inflation is the rise in the prices of the products, commodities and services, or putting it another way, it is the decrease in your capacity to buy or hire the services. Supposing, a commodity was worth $10 a decade back, will now cost $ 100 as the result of inflation. Comparatively, real estate sector has minimum rate of inflation.

Tax Exemptions

You get various tax exemptions on your principal and investment income property. The tax exemptions available in real estate property investment are more than available in any other investment. In other investments, you lose terribly on the investments in your bank in the form of inflation and high taxes therein, but in real estate; you don't actually have such hindrances. There are several beneficial provisions in the Income-tax Act, 1961 which promote investment in residential properties, having regard to the need for housing millions of citizens. Of course, only those who pay taxes can take advantage of the appropriate incentives given under the law. Interest payable on loans taken for purchase or construction of house is deductible to the extent of Rs 1.5 lakh every year, though the annual value of one selfoccupied residential property is exempt from income-tax. In addition, repayment of

the installment of housing loan is deductible to the extent of Rs 1 lakh per annum under section 18-C.

High Return on Investments

Real estate investment gives you potentially high Rate of investment before and after the taxes levied on your income. In fact, investing in real estate gives you high ROIs after the taxes

Net Positive and High Income is Generated.

Increased demand for properties.

DISADVANTAGES
Beside the large potential of return on Investments, there are certain levels of Disadvantages. These disadvantages can be easily taken off, if you have an insight about the limitations of real estate investment and what can be its short term as well as long-term repercussions.

Taking Wrong Decisions

People going for the real estate investment property take decisions in haste. Make a firm decision when you go for purchasing your first real estate property, is just not easy man. If you are swayed by emotions, you will be ruined.

No readily available Liquidity:

With your real estate investment, you need to know one thing straight, and that is you simply cannot aspire hard cash immediately. You have to wait and watch the market movements and other socio-economic and political, economic factors before selling your real estate property, like a mall or your home.

Eats away your time and energy:

Real estate investment can get you real fatigue. It is a lethargic time consuming process that makes you feel almost laid back. You need to plan and have those instincts to get going with your property. You will learn more on about making you real estate investments more time efficient in later part of the chapters.

A Risk full decision can harm:

Investing in a real estate property can be a risky and costly even, if you are not prepared before, you will make losses. Not just losses but, but you will become a pauper. Remember, as I said in my earlier statements, Real estate market is speculative.

No Stringent Comparison Methodologies

Real estate market is variable. The price of two real estate properties can vary a great deal, provided you keep other factors such as time and location, constant. No two real estate properties can have exact. There always exists kind of variation and this need to be taken into account. Though, you do have the existing rule of thumbs and set strategies, but all these are workable, if tried in combination.

Guided and Drawn on Government Policies:

Government policies and regulations play an indispensable role in deciding on the real estate investment. These policies and regulations include control the zone based bylaws, construction activities; property prices; rent control procedures; license dispensations and property transfers; taxes etc.

3. The Factors that affects the Real Estate market:

Supplier, Cost, Competitor

Social, Legal, Political

Micro
Marketing Intermediary

Real Estate

Macro

Global and Demographic

Micro factors;
There are certain Micro factor that influences the property market and its aspects. Suppliers, Cost of materials, firms competitors and also marketing intermediary are the major elements that have effect on property business.

Macro Factors:
Factors like political, legal, social, global and demographic are the Macro environment with generally influences real estate industry in large scale.

4. Government regulations in Real Estate sector:

Much of the over 100 laws governing various aspects of real estate in India dates back to the 19th century and major amendments to existing laws are required to make them relevant to modern day requirements. The Central laws governing real estate include: Registration Act, 1908 The purpose of this Act is the conservation of evidence, assurances, title, and publication of documents and prevention of fraud. It details the formalities for registering an instrument. Instruments which it is mandatory to register include: (a) Instruments of gift of immovable property; (b) other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, to or in immovable property; (c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of instruments in (2) above. (d) Leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent. Urban Land (Ceiling and Regulation) Act (ULCRA), 1976 This legislation fixed a ceiling on the vacant urban land that a 'person' in urban agglomerations can acquire and hold. A person is defined to include an individual, a family, a firm, a company, or an association or body of individuals, whether incorporated or not. This ceiling limit ranges from 500-2,000 square meters (sq. m). Excess vacant land is either to be surrendered to the Competent Authority appointed under the Act for a small compensation, or to be developed by its holder only for specified purposes. The Act provides for appropriate documents to show that the provisions of this Act are not attracted or should be produced to the Registering officer before registering instruments compulsorily registrable under the Registration Act.

The objective of acquiring the excess vacant land could not be achieved because of intrinsic deficiencies in the legislation itself. Stamp Duty: There is a direct link between Registration Act and Stamp Act. Stamp duty needs to be paid on all documents which are registered and the rate varies from state to state. Rent Control Act: Rent legislation in India has been in existence for a very long time. Rent control by the government initially came as a temporary measure to protect the exploitation of tenants by landlords after the Second World War. However these rent control acts became almost a permanent feature. Rent legislation provides payment of fair rent to landlords and protection of tenants against eviction. Besides, it effectively allows the tenant to alienate rented property. Property Tax: Property tax is a levy charged by the municipal authorities for the upkeep of basic civic services in the city. In India it is the owners of property who are liable for the payment of municipal taxes whereas in countries like the United Kingdom, the occupier is liable. Generally, the property tax is levied on the basis of reasonable rent at which the property might be let from year to year. The reasonable rent can be actual rent if it is found to be fair and reasonable. In the case of un-let proper-ties, the rental value is to be estimated on the basis of letting rates in the locality.

You need to admit it. Buying property is not all that supremely easy. You need to think about the appreciation value, the investment benefits, the legal hassles, the builder repute , home loan approvals and all that jazz. So here is a check list for you that will come in handy while you buy thatdream property. 5.Basic things to be checked while buying property: 1. Name & title of Land should be very clear in the name of seller

2. Check whether the seller obtained Loan for that property, accordingly a paragraph in sale deed to be added saying that the seller is responsible to clear all the dues 3. Ask for Moola pathram/Parental Documents 4. All major children ie., major children of Sons & Daughters should sign in the bond/agreement 5. Municipal tax dues/Water tax dues/Land Revenue dues & any other dues to be paid fully before the transaction 6. Villangam & Viharam nothing has to assured. In case, of above and any hindrance to property the seller will clear the issue and dues on his own accordingly a paragraph to be included in sale deed 7. Obtain No Encumbrance certificate from concerned authorities. 8. Mention the Flat No & Plot No in South/East/West/North/Complete Land area Length/Breadth and Diagonals also in the Sale deed. 9. Check on TNEB charges and dues 10. Check whether the property is in seller name or is it with Joint venture development 11. Sellers any of the blood relation should not claim in future & if any claim arises then it will be sole responsibility of the seller to get involved and clear all such disputes. 12. Get the identity and address proof of the seller 13. Obtain all payment receipts, Patta , Chitta ,Adangal extracts ,Up to date tax payments receipts of Water/TNEB/Property/Corporation/Municipality/Revenue & other taxes etc. 14. Confirm the originality of stamp papers and only purchase stamp papers from Govt services ie., Registration of Assurance offices only 15. Date of purchase of stamp papers must match with the date of the documents Most important 16. Obtain Genealogical tables (family tree) of the seller, will, certificate of husband/wife and other inter connected all documents although the above many not be required for registration 17. Crystal clearly shows door no/flat no/plot no and other descriptions of the property 18. Check if any third party interests, suppression of previous transaction, prior agreements if any, litigation and other pending matters, which are brought to light during various stages of purchase /negotiation

6. Classification

of Properties:

Real estate has been broadly categories into 3 classes as follows:

Types of Property

(A). Residential Property

(B). Commercial property

(C). Vacant land

(A). Residential Property:

The residential type of property is by far the most popular with both new and experienced agents. Residential property offers a good investment avenue. People buy residential property for two important reasons:

For staying As an investment

Advantages of Investing in Residential Property

Expenses, including depreciation on the property and interest on your borrowings, are tax deductible.

You make money as the value of the property increases. You can leverage your investment. You get rental income.

Risks of Investing in Residential Property

Interest rates could rise.

 The property could be untenanted for a period of time. You could get "bad" tenants. It could take up a lot of your personal time. House prices could remain static, or even fall.

The following are the type of Residential Property:

Single Family Residence Row Houses/ Townships Flats Bungalows

(B). Commercial Property: 1. Multi-Family Commercial Real Estate:

Commercial real estate property types include duplex homes, and other construction for habitation by multiple family groups. Condominiums are frequently called multi-family because of their construction as a group, but are normally listed and sold as single family residential units. Duplex homes are also frequently listed and sold as residential units to a buyer that lives in one side and rents out the other.

2. Retail Space Real Estate Properties:

This category would include single buildings used as stores for clothing, electronics and other consumer products, as well as malls, strip centers and the like. Restaurant spaces are a specialty subset of the retail category, with some

listings shown as restaurant/retail. Valuations can be based on size and land value, retail sales per square foot or other investment return calculations.

3. Office Buildings and Office Complexes

A single building designed for office use, or a group of offices in a single building or cluster of buildings would fall into this category. When offices are grouped in structures with single ownership, they are listed as commercial office rental property. The owner derives income from the rental payments of the office tenants. These can be valued based on the rental income return on investment, rather than methods using square footage and land value. Medical & Dental offices are a subset.

(C). Vacant Land

Land Investment has historically been the forte of large development companies, rich farmers or wealthy individuals. It can be a profitable business if proper development of land is undertaken. Land Investment is referred to as a long term investment and with land prices on the rise in many parts of the world, it is said to be the safest and smartest way of investing ones money.

Capital gains can easily be realized from land when land price increases. The most striking feature of land investment is that investment takes place in a tangible asset which the investors can readily put into use. It is a branch of real estate investment which is gaining ground as major part of capital budgeting analysis. Real estate is basically defined as immovable property such as land and everything permanently attached to it like buildings. It is essentially at this juncture that land as an asset differs from real estate as it does not necessarily includes

buildings

and

the

attachments

to

the

land.

Land is perhaps the most basic asset that we want to invest in and may include vast open tracts with no significant estate on it. The job of developing the land lies with the developer, and with proper care to include modern houses and the associated amenities, it will significantly appreciate its value. Land situated close to developed areas will cost more as opposed to those in less developed areas. Land developed for commercial purposes and those developed for building residential complexes will have different prices and tax implications, if any.

Investing in land can be profitable as there is limited supply of land and the purchaser can really sell dear if he wants to.
7.SWOT ANALYSIS OF REAL ESTATE SECTOR:

The strengths, weaknesses, opportunities and threats for the Real Estate industry have been tabulated below.

Strengths 1. Availability of construction raw material. 2. Low labour wage rates. 3. Abundance of quality manpower. 4. Availability of land bank. 5. Huge population of the country. 6. Increasing demands from the market.

Weaknesses 1. Unscientific construction. 2. Low quality work. 3. Non adherence to international standards. 4. Low R&D investments. 5. High cost of debt. 6. Inadequate Govt support. 7. Least effort towards low cost housing for low income and rural areas. Threats 1. High land value in big cities. 2. Less assistance from Govt. 3. Recessionary world market.

Opportunities 1. Very vast market. 2. Growing demand. 3. Un-restricted business

opportunities. 4. Favourable market condition 5. Increasing income level of families.

4. Outsourcing jobs moving to smaller countries like Phillipines, Malaysia etc. 5. Increasing terrorist activities which dampens tourism. 6. Entry of international retailers into India

8.Key Players Name Service Profile Presence Akruti Nirman Residential, Commercial, Retail and Hospitality Specialises in implementing the Slum Rehabilitation Scheme (SRS) in Mumbai Access to

prime land in Mumbai at a very low cost with higher FSI permission A majority of its projects are in Mumbai due to the SRS Scheme. Other cities include Baroda and Pune.

Ansal Properties & Infrastructure Limited.

Residential and Commercial

Developing integrated townships alongwith malls and hotels IT parks and SEZs Pan-India footprint with major presence in 16 North-Indian cities across 4 northern states. DLF Integrated presence across all the asset class including Residential, Commercial and Retail. Further, has plans to venture into Hotels, Infrastructure and SEZs Accredited to be largest real estate developer in India. DLF City is a township spread over 3,000 acres in Gurgaon, Haryana, Asias largest private township 574 million sq. ft. of BUA under planned projects. Pan-India footprint Operating in 29 cities, across 16 states Majority of the projects in Hyderabad, Gurgaon, Kolkata, and Chandigarh are also major cities of activity .

K Raheja Corp. Commercial, IT office, SEZ, Hospitality, Retail and Residential Developing 15 self-contained townships and 10 hotels Major presence in

Mumbai Hyderabad.

Other locations are Bengaluru,

Ahmedabad, Goa,

Pune and

Parsvnath Developers Residential, Retail, IT Parks and Commercial Plans to develop 12 SEZs across the country Pan-India footprint with a focus on National Capital Region Active in over 46 cities across 17 states Plan to increase to 20 states and 250 cities by 2010.

Sobha Developers Residential, Commercial, development of plots and contractual projects Mostly concentrated in and around Bengaluru with some presence in Cochin, Chennai and Pune.

Unitech Residential, Commercial, SEZ development, Retail and Hospitality Integrated townships at a number of cities such as Hyderabad, Agra, Varanasi and Lucknow Pan-India footprint with major presence in National Capital

Region, Kolkata, Chennai and Hyderabad.

9. CONSIDERATIONS WHILE MAKING INVESTMENT IN REAL ESTATE

When it comes to making money, Real estate is considered to be one of the surest investments. Lots of opportunities abound, whether it be in the stock market or in business. But these areas also offer a significant amount of risk. As a result, most people do not engage in these speculative activities. But real estate is something which more people can be involved in, simply because everyone needs a home to live in. However, no investment is entirely risk free, and so even here a certain amount of due diligence is required. Some important point you need to think about:

1. Identify the developer 2. Is the project a self development / partnership / joint venture 3. Past business / trading history 4. The location of the proposed project 5. Basic amenities 6. The growth prospects of the neighborhood development 7. Industrial and business development in the locality 8. Price comparison analysis 9. Future property price valuation 10. returns on your investment

Affordability is a key consideration when making any purchase. One should factor additional expenses such as electricity and property taxes to get a complete idea of how much can be afforded.

An integrated service model offering end-to-end - 360 Realty Services to cater to the diverse needs of corporate & developers in project management & execution. Managing realty projects right from identification to marketing is a lengthy process replete with many challenges. You may be keen to execute realty projects for commercial / residential purposes but may not be equipped with the right skill-sets / know-how for the undertaking. Professional agency offers you with a integrated service model meeting the entire realty business needs to help you successfully undertake your realty projects. Professional agency offers you with a unified value-chain of core realty services with critical forward & backward integration of other value-added services. The services are effectively streamlined enabling steady progression of the projects, right from idea conceptualization to profit generation / hand-over, encompassing all functional & operational tasks.

10.360* Degree Firms significant Functions pertaining to Construction Project.

Market Study

Feasibility Study

Property Identification

Title Check/Legal Work

Regulatory Approvals

Budgeting

Planning & Designing

Property acquisition

Project Mgt. / Construction

Marketing Plans

Selling, Leasing & Hand over

1. Market study:
Market study refers to detailed analysis of market and locations in different regions within the specific area. One has to look the trend and path of the property market in the area where he want to set up the project. A
marketability study tries to create a market area demand model based on available demographic information and the application of common sense to develop a picture of the current and future market area trends that may effect demand. 2.

Feasibility Study:

Feasibility Study typically involves testing geographic locations for a real estate development project, and usually involves packages of real estate land. Developers often conduct feasibility studies to determine the best location within a jurisdiction, and to test alternative land uses for given packages. Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use project. Market Feasibility takes into account the importance of the business in the selected area. Could the
project be built?, Can the site support a building structure that is planned?, etc. should be check out.

3. Property Identification:
Property identification refers to the type of project which the builder has to plan. It mean whether put residential or row house or to put specific commercial project looking at the locations and demand for the market. Property identification generally is driven by demand of type of property in the market.

4. Title clear/Legal work: Title clear is the phrase used to state that the owner of real property owns it free and clear of encumbrances. In a more limited sense, it is used to state that, although the owner does not own clear title, it is nevertheless within the power of the owner to convey clear title. For example, a property may be encumbered by a mortgage. This encumbrance means that no one has clear title to the property. However, standard terms in a mortgage require the mortgage holder to release the mortgage if a certain amount of money is paid. Therefore, a buyer with enough money to satisfy both the mortgage and the current owner can get clear title. 5. Property Acquisition: Generally, property acquisition refers to a person or other entity acquiring title to real property by a deed. A deed is the legal instrument used to transfer ownership in real estate. Real property can also be acquired by inheritance and by a court order.

6. Planning & Designing of Project:

Planning and designing is carried out only after finishing the above legal works. It is concerned with the proper plans and the design of the project that the developer is going to construct. Here, builder can approach architects to develop plan and design as per the requirements of builder. 7. Budgeting: This point is also important to be considered by a builder. The budget of the real estate project should be optimal as per the plan and designs of the structure. Budgeting needs to analyze the size of the projects. 8. Regulatory Approval: After the plans and design of the projects, it needs to be submitted the same at the concerned govt. authority (Municipal Corp./Municipality) for further verifications and approval for the project. If authority finds no

objections, then after they can arrive at decision for approval and sanction of project. 9. Project Mgt./Construction: If government regulatory approvals and project get sanctioned by authority, then after builder can take step further to start initial work of construction. A project management team also has to form for various aspects of the project of residential or commercial. At regular interval of time, govt. executives checks the work whether is going as per the criteria. 10.Marketing Plan: While developer put the marketing plan for the project he has put. On the bases of demand for the housing and location. As a promotional efforts and marketing for the project Hoardings, newspaper ads. attractive schemes, agent/ broker approach has to be followed. 11.Selling, Leasing and Handover: Builder may sell the entire project to other party, or he may sell the project on leasing bases. Another option he may adopt is he can hand over to the party who want to handle this project.

Below are some of the main points that were made along the way:

Real estate investments fall into one of the four following categories: private equity, public equity, private debt and public debt. Your choice of which one to invest in depends on the type of exposure you are seeking for your portfolio. You can invest in either income-producing properties or non-income-producing properties. Any leased property is income producing, and vacant properties are non-income producing. You can still earn a capital return on a non-income producing property, just as you would on an investment in a home. . Real estate can produce income (like a bond) and appreciate. Real estate is tangible, so it requires ongoing management. On the other hand, you also have an increased ability to influence the performance of a single investment as compared to other asset classes. Some of the benefits of adding real estate to a portfolio include: diversification, yield enhancement, risk reduction and inflation-hedging capabilities. However, real estate also has high transaction costs, can be difficult to acquire and it is challenging to measure its relative performance. Buying real estate requires substantial due diligence to ensure that you're getting what you expect after you close. The way to determine the value of your property (other than actually selling it) is to have it appraised by an accredited appraiser.
11.Buying your first home? Some Specifics That You Should Know
Paying rent month after month can be very exhausting business. So one fine day, you wake up with the desire to own your home to get relieved from the whole rent house business. Despite the strong need, umpteen thoughts run in your mind before you take the big leap. After all, the thousands of questions that pop up in your mind are only too natural if is your first time in home investment. You might fear not to mess up and for everything to proceed the right

way. We assure you, it is completely normal to feel that way! You are probably making the most important financial investment of your life and spending too much from your pocket to make a hurry burry decision. When you feel informed about the whole home buying process, your confidence and sense of what you want and whom you should approach to get it all done, will obviously shoot up. Lucky for you, you are in right hands. Lets get started to help you buy your first home! Are You Cut For Buying Your Own Home? Generally, before making a home investment, people go through a phase as there are lots of important decisions to be made. Anxiety and fear might tow you for quite some time. That is why it is important to analyze and rationalize the whole act before taking any quick decision. Owning a home, can be easy for one, a struggle for some and a totally impossible feat for others. It is sensible to think it all out and see where you stand before you have already made the big leap and find yourself in a fix. Renting vs. Buying: Sometimes, you might feel that renting is a better option compared to buying a house, as it has its setbacks. Prospects Of Buying: While there may be a few drawbacks in making a home investment, it is not without its benefits. It is important that you realize and acknowledge its good side when you make the decision to move forward with the plan and keep in mind the same when you come cross gray areas in the process of buying a home. Fine Tune Your Financial Planning Sit and work out the budget and the resources in hand. Set aside a down payment and view all the loan programs that are available for the purpose. When you have all the figures in hand, you will get a clear picture on how much you can afford and what it will cost to make the investment. Get A Free Credit Report: It is important that your credit is free of any debts. If you do have unpaid loan balances, try to get it all cleared before going for home buying. Find A Lender: Begin with your own financial institution and then later check on mortgage brokers who are willing to lend you loan at reasonable interests. Compare the prices and opt for the plan that not only best suits your requirements but one you understand well as well. Fix Your down Payment: The higher your down payment, the lower your mortgage will be. To avoid being taxed with heavy interests, maximize your down payment as much as possible. Consider FHA Loans: Its worth considering this option, as it has reasonable down payment requirements and lets the sellers to pay either part or even all of your costs. Acquire A Pre-approval Letter: When you approach the seller with a pre-approval letter for loan purposes, you have better chances during negotiation. Choose A Real Estate Agent To Assist You Home Buying You might think why you even need a real estate agent when everything is accessible online itself. One local market varies from the other in more ways than one and a good agent will be able to guide you in making the right decision with his knowledge and expertise. Why Hire an Agent? An agent who has been in the field for quite some time would have gathered vast knowledge about real estate. He or she will be in a better position to help

you avoid making mistakes such as choosing the wrong property or paying more than its worth. Find a Real Estate Agent: Take the help of your friends and relatives in this process. A referral is always a good choice, as they are being recommended by someone who is satisfied with their work. But, before starting to work with that person, make sure that you are comfortable with the suggested person too. Play By The Rules With Your Agent: It doesnt mean that you should follow the commands of your agent. After all, he is there to cater to your requirements. But there are certain protocols that you should follow and make sure that you do not say the wrong things in your desperation to get a good home soon. Prevent Committing Home Buying Mistakes As always, the best way to learn this is by getting an insight from the mistakes made by others. The best defense that you can charm to be on the safer side is by buying a home in the most desirable location. Tips For First-Time Home Buyers : Begin with online property hunt and do not go for print because, most of the reputed ones wont be advertised in newspaper Take A Look At The Homes For Sale: You should take a good look at the houses that are put for sale in person and ask your real estate agent to do the same before showing the propertyto you. Also, make a tour only when the parameters suit your requirements. Draft A Safe Contract: If you want to protect and safeguard your hard earned money, then you should never make the blunder of writing contingencies into your crucial contract. Negotiate Like A Pro Who said you cannot negotiate when it comes to home buying? Home buying may not be like car buying, but it is never wrong to try your luck by negotiating to strike a deal with a good price. Negotiating Tips: There are many factors to consider in home buying. Price is always not the major criterion. So, when you see a good property that suits your every requirement but is slightly more than your planned budget, then quote your offer. If the sellers are unwilling to budge to your offer, then think in terms of the value that is attached to the property. If you think that you can manage their quotation and feel that the property is worth the take, then go for it. Facing Multiple Offers: It is a common scenario to be faced with multiple offers. But take a cautious step and analyze every offer before finalizing one. Make sure that they satisfy you completely and add good value to your investment. Never Fail To Do a Home Inspection And Read Disclosures Home inspection is a very vital procedure you need to follow before making a purchase. The disclosures that you receive should be governed by the law, which differs from state to state. What is Home Inspection? It is a legal procedure carried out by authorities to make sure that the house is in good condition from foundation to roof. A word of go from authorized personals will add a sense a security and value to your investment. Material Facts: Sellers often do not notify buyers on the defects in the property. It is in your hands to make sure that you are not kept in the dark.

Conduct A Final Walk-Through: Before closing the property, do a final walk-through to check whether it is in the same state as it was when you agreed to buy it. Final Step In Closing Your Home Usually, 30 to 60 days after accepting your offer, transactions will be closed. Do not forget to book the transportation to move your things earlier, as many people tend to make a move at the end of the month.

Home Insurance: Look for the insurance policies that offer you the best rates and choose wisely. Usually, the firm insuring your automobiles will close the best deal for your home as well. Title Insurance Policy: Individuals often overlook taking a title policy. On the other hand, this mode of policy is the cheapest form of policy available and you also get to make a premium payment only once.

12.Inching Trend Towards Luxury Living

The changing real estate trends is again witnessing a phenomenal change with luxury homesmaking a comeback into the market. India is one of the fastest growing countries with high net worth individuals and their investment portfolio totals upto 40% in the realty market. Luxury housing projects has become the in-trend of the market with increasing number of people opting for luxury home, ranging between Rs. 1 crore and going upto Rs. 15 crore. To name a few of the top notch premium projects, Raheja Ravanata, Oberoi Exquisite, Lodha Aurum Grade, Orris Aster Court, Lodha Fiornerza are some of the most sought after luxury homes, some ready to occupy and others under construction. Gurgaon and Noida are the hub for such projects and NCR is already lined up with dozens of luxury and ultra luxury projects. So, the question that is tossed now is what has happened to the affordable homes? Industrial experts explain the scenario saying Whileluxury homes have caught the attention of people from different sectors, this may not be the trend forever. Affordable projects may have slowed down for now, but the situation may reverse anytime. Also, they attribute the rise in luxury housing projects to the over supply in the premium market during the 2008 economic drop down. Samir Jasuja, Managing Director at Pr PropEquity, a real estate analytical firm, has quoted that, Luxury housing projects are enjoying a new look trying out different product offerings from Singapore and American styled apartments to exotic luxury residencies. This has brought the crowd of investors into the luxury market who were looking outside the country for such good options. Even with inflated interest rates, this explains why the luxury properties are increasing in the NCRregion. Even with the dip in economy, the end users in these regions were least affected with the pricing of luxury housing year on year. However, individuals opting for affordable home projects in these regions were facing a stiff situation as the housing supply fell over by 50% and the price- sensitive end users were also impacted by the hiked interest rates, increased pricing of such projects withdevelopers unwilling to lower the rates. However, the prospect for luxury housing is on the increasing end. India, with a fast growth rate by over 20% and encompassing large and increasing number of high end users, have their investment portfolio comprising over 40% in the real estate market. NRIs are also heeding the market in large numbers with the depreciated rupee value.

Prabhatam Group has branched into the real estate market and is focused to provide luxury homes and studio apartments to NRIs and HNIs across northern part of India such as Indore, Bhopal, Amritsar etc., Dinesh Gupta, acting chairman of Prabhatam Group attributes the increase in luxury homes to the rapid urbanization. He says People today who form the ring of urban families have an increasing need to indulge and live a comfortable and luxurious life with complete global amenities enjoyed by citizens worldwide He also adds saying, Even Tier I & II cities comprising of middle class segments are fast moving towards luxury housing, expanding and living out of their dream by approaching the HNI segment with disposable incomes. It is not surprising to see real estate developers not only show extra interest in the luxury segment, but also take the next step forward to satisfy new set of clientele by establishing ultraluxury homes. Ultra-luxury homes are structured in the villa format and are positioned in leisure destinations such as Shimla, Goa, Kerala, Lonavala and others. The prices may range from Rs 5-10 crore and also extend upto Rs 15 crore with some property, says Patel of E&Y . Patel continues saying, The housing projects are now witnessing a shift from golf-based to destination-based, wellness-based, spa-based and other themes to let the residents enjoy endless amenities within their vicinity. The upper crust clients increasingly opt for the two villa formats with their water-based and hill-based location. The water-based projects usually has access to an USP with yacht services or even a private jetty for the entertainment of the residents in the enclave. The current and the most upcoming trend is to focus on exclusivity, where the developers are now concentrating to expand and go beyond an independent villa to an enclave format that brings in the exclusivity quotient to perfection. Here the residents are not only equipped with all the global amenities but are also gifted with the the very much demanded privacy. In such a project that resembles housing in Bali, Kood etc, the key is to limit the enclave with 25 to 50 units and bestow the inhabitants with good physical and visual space Real estate developers are keen to bring in the element of global luxury into their projects to the point that even those who were essentially catering to the Tier I and II cities are drawing out tieups with property developers and architects on a global level. Indian developers who are on par with world class building and architectural trends such as Oberoi Realty, Rohan Lifescapes and others are associating with global brands to line up the best of the products and services in apartment andcondominium space itself. Delhi-based Prabhatam Group is one very apt example to illustrate the changing real estate trends. Their projects are modeled to create a finesse in luxury living by constructing group housing and residential condominium clubbing with international architects and establish the true meaning of world class meaning. Gupta says, All our projects are designed with world class features that are unparalleled in both price and style. For instance, Prabhatm Heights, one of our projects at Amritsar promises a new trend in luxury real estate with all high tech, ultra modern facilities such as sixth sense electronic fixtures and a complete oxygen rich environment to help the residents live a complete and healthy life . Property buyers today make investments with not just the specifications in mind. Lot of thought is given to the fine details such as location, ambiance before an investment is made. AMumbai-based DB realty group director, N Shridhar, developing premium projects likes Orchid Woods, Orchid Heights, states that, Countrys changing demographics and rising aspirations has shot up the demand for luxury housing. According to analytical reports, the annual sales will go over 30% for the semi-luxury and luxury homes.

Similar view is quoted by Arjun Puri, Managing Director of Puri Constructions, after launching theirluxury housing project, Diplomatic Greens. We always move towards the best and the same applies to our lifestyle as well. People today want the better and the best in everything. What was indulged as luxury in the past years has now become a necessity. To sum my opinion, this trend will last and the growth prospect for such luxury housing projects will only be on the increasing graph To grab a quick glance on the changing real estate trends

13.Tips To Make The Right Property Investment For NRIs

Investment always kindles considerable thought to all the investors as a huge amount is involved in the process. Nevertheless, todays Indian real estate market proves to show good signs to the property investors, favoring them in their big endeavor by all means. However constructing a house is no easy feat. To bring the vision of a dream home into a living reality is one of the most toughest creative jobs ever. However, here we are going to discuss the hurdles faced by the NRI Investors. Here it goes.. Worry Lines For the NRIs Imagine: An NRI in overseas is planning to make a real estate venture. When the hardships are umpteen for a localite, imagine the crisis faced by an NRI who does not have any physical proximity with the property in question. The distance and the absence during the entire tenure of construction leaves the person in dark without being able to conduct physical inspection on a regular basis. But Every problem has a solution and all you have to do is look in the right direction and work out things the right way. Here is to how Do not make a hurry burry decision and take time! Otherwise it might prove to be costly to you at the end. You should check 100 properties, shortlist 20 from the lot after deep scrutiny, negotiate 10 properties with the sellers and pick out the one that proves to be the best deal. Make sure that you are affiliating with a professional builder. It is important that you make a thorough research and conduct a lot of background check to affirm that the builder is reliable and a reputable name in the industry. It is advisable that you make a personal visit to the site before making an investment. It is not just for the huge amount in place but revising the option might prove costly as well. If you are unable to make a personal visit, request a trusted friend or relative to do the favor in your place. Acquiring a housing loan means that your money is in safe hands. The money will be released only in stages and also the bank will have short-listed builders for whom loans are pre-approved. Banks with their security policy and other legal norms are quite stringent to approve loans for builders with no track record. With a home loan, your money will be safe and you will have a reputed builder to bring your dream home to life. Make sure that there is good water and electricity supply, sewage, garbage disposals and all the other required amenities are met as well at the end of the building process.

If you have some query, never hesitate to ask. You are not going to be looked down for poring out your doubts and concerns. In fact an intelligent person, will make sure that he/ she enquire it all out right away. So go on. Fire your question to the builder right away! Ensure that all the legal papers are in hand and your home is approved and covered legally from all ends. Now if constructing with a good crew is one problem, managing the asset is altogether a different issue to handle for the NRIs. Your job is not over with the house warming ceremony, in fact there is more. You will have to find a way to keep it in good order for years to come. There are a few professional real estate management firms that might come in handy for the purpose. Some good willed relatives, friends and even neighbors might do the good dead for you. Check out the options available and ensure that your home is tended well and gets the attention it deserves. Kudos For Building A Great Home To All Our Dear NRIs! CURRENT SCENARIO:

WHAT BMC LEARNT FROM MALARIA SURVEY

326 realty projects in city put on hold
Poor demand and new building norms have forced developers to freeze construction at upcoming projects
More than 320 real estate projects in the city, both commercial and residential, have been put on hold, a recent survey by the civic authority has revealed yet another sign that the industry is in a funk. Majority of these projects, around 202, are in the western suburbs, with Goregaon (48), Bandra (36) and Andheri (36) topping the list. Realty experts and industry members Mirror spoke to said that work at the sites had been halted because of mostly two factors: dwindling property demand and recent changes in construction norms, especially FSI guidelines. Developers, they said, were unlikely to lift the construction freeze anytime soon unless property sales pick up, infusing capital into the market. The list of 326 stalled projects was compiled by the BMC during a recent survey of mosquitobreeding sites in the city. It comes weeks after real estate rating firm and research Liases Foras estimated that there are more than 88,000 unsold flats in the Mumbai Metropolitan Region. The citys realty industry is known for defying market trends and soundest of economic logic. The latest figures, however, may be the clearest sign of the industry being under the weather. Apart from the economic slowdown and the resulting sluggish demand, there are other factors that have forced developers to halt work, Sunil Mantri, the vice-president of National Real Estate Development Council (NAREDCO). Some of the plots are in dispute. In case of redevelopment schemes, there are disagreements between builders and tenants. Some developers have fallen out with their business partners, leading to suspension of underconstruction projects. Changes made to Development Control Rules (DCR) in October last year is also a major

reason. Projects that were approved and launched before October have become unviable because of new norms, Mantri said. The old DCR allowed builders to exclude constructions such balconies and ducts from FSI (floor space index). The new norms, however, require them to pay a premium for availing higher FSI, which is the ratio of the built-up area of a building to the size of its plot. While identifying mosquitobreeding sites, the BMC listed 2,662 approved construction sites. Of these, work is underway at 2,336 locations. An officer from the civic bodys building proposal department said that maintaining accurate data on stalled projects was a difficult task. This is because developers never inform the BMC when they halt a project, he said. Meanwhile, the poor demand for housing units extends to even highend homes. According to a recent estimate, more than half of Mumbais luxury apartments, ready and under construction, have no takers. The gloom in the market is in sync with the downturn across the country.

The list of 326 stalled projects was compiled by the civic authority during a recent survey of mosquito-breeding sites in the city