2018 Real Estate Market Trends – Brighter Prospects for Investments

How was the previous year been

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The year 2017 has been fantastic for a plethora of real estate investors out there. The year 2018 also promises to be one such year where investing in real estate would not be a disappointing prospect. Quite interestingly, demonetization in the year 2016 has cast a huge impact on the real estate sector. It has made the industry more transparent thus eliminating corruption. The year 2018 would be no different as it would continue to lure real estate investors in investing on quality projects.

On the other side, the Centre has introduced Real Estate Regulation Act (RERA) along with GST to make investing in the sector more fruitful. Moreover, the introduction of Real Estate Investment Trusts REITs would also help an investor to finance with confidence in the real estate sector. If you want to invest in real estate and want good returns, then opt to spend on Shriram code superstar. Here is the list of real estate market trends for 2018 which would genuinely allure investors.  

Millennial buyers would be a significant share of the real estate market

It is interesting to note that in the year 2018, the real estate market would witness a surge in the number of millennial buyers. These millennial buyers would form a majority of the real estate investors because they would experience growing incomes and would go all out in buying their first home. Interestingly, the real estate trends of this type would not only benefit the buyer but would also help in the development of the nation. It is so because the lifestyle of a majority of individuals would improve.

Quality of life would be the deciding factors

The quality of life is a deciding factor in the way a builder goes about planning a residential complex. Moreover, the nature of the property is dependent on the type of lifestyle a buyer wants. No matter what the price of a particular property is, as a buyer one would never compromise on factors that affect the quality of living. Gone are those days when real estate complexes had only swimming pools and basement garages. Nowadays, keeping in mind the preferences of the buyers, the real estate builders include a lot of amenities inside a residential complex. Facilities like stadiums, schools, hospitals, etc. are a common sight these days. This trend would continue in this year too which implies that builders would give importance to the view of the buyers.

Affordable housing costs

Affordable housing costs are another trend which is ruling the roost in the real estate sector. Home sales have declined all across India, and this is the reason that the builders are pushing in with lucrative property deals. On the other hand, the government is launching various types of housing schemes time and again to make sure that there is quality home for everyone. For instance, the Pradhan Mantri Awas Yojana scheme is a brilliant step undertaken by the government to attract more buyers towards affordable homes.

At present, the real estate sector of India is developing at a tremendous pace. Moreover, with the introduction of government schemes, this sector is set to register more growth. Keep in mind the trends as mentioned above if you are on the lookout to invest in real estate market.  

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WHAT IS JOINT DEVELOPMENT AGREEMENT – 5 IMPORTANT POINTS TO REMEMBER

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What is This joint Development agreement

A Joint Development Agreement is an understanding between a land proprietor or proprietors and the manufacturer/promoter with respect to any land joint venture. A joint venture is one where a land proprietor with an empty land or land with building enters a concurrence with the manufacturer to develop new ventures. Along these lines, the capital, development and lawful work will be done by the manufacturer through the land will be given by the developer. Typically the land proprietor and the developer shares the benefit in the proportion of 60:40 which may differ in light of area, development cost, improvement cost and so on.

5 Important Points to remember

REGISTRATION

 

         The joint development agreement amongst developer and the landowner ought to be enlisted in sub-registrar office. A standout amongst the most widely recognized practice is to get Joint Development Agreement (JDA) authenticated or sign it on the stamp paper of INR 200. A similar agreement is exhibited as registered Joint Development Agreement to the potential purchaser. It isn’t right.

         At the large scale level, neither manufacturer nor landowner can question the terms and states of the registered JDA. Also, it gives authenticity to the agreement. On the hand, if the Joint Development Agreement is enlisted then the purchaser can specifically apply for an ensured duplicate from the sub-registrar office.

SUPPLEMENTARY DOCUMENTS

 

       Not only the JDA, the supplementary development agreement should be enrolled as well. This agreement could be somewhat unique in relation to what the JDA mentions and this is in no way wrong. In any case, it holds no lawfulness in the event that it isn’t enlisted.

TRANSFER OF RIGHTS

 

          The landowner might need to exchange his ownership rights to a relative. This more often than not occurs through a General Power of Attorney (GPA) and in such a case a landowner can ask for the homebuyer to exchange the cash to the concerned relative with the GPA.

         Purchasers ought to likewise take note of that they are managing the landowner whose name is mentioned in the JDA. Likewise, take note of that it is a purchaser’s obligation to experience the GPA to comprehend the legacy and how the land has passed on starting with one then onto the next.

HOME LOAN

       A home loan by a bank would not be authorized if the JDA isn’t registered. The developer may guide you to other non-banking finance companies which could possibly be the correct way out. Do take note of that issues, for example, deformity in JDA, misrepresentation via landowners, unsanctioned credits may vacillate your home purchasing design by and large.

NOT A TITLE DEED

          JDA regardless of whether it is enlisted in Sub-Registrar office ought not to be mixed up as Conveyance or Sale Deed of a level for the landowner. Often, the purchaser was given an understanding that JDA is movement deed for the landowner, which is not authenticated.

Godrej Reflections is an extreme impression of the urban chic way of life situated in Harlur, Bangalore. The undertaking has in its lap only planned Residential Apartments, each being an embodiment of style and straightforwardness. Godrej Reflections is designed by universally prestigious architects of Godrej Properties Limited. The Group has been engaged in delivering different private and business ventures with perfectly created insides and in addition outsides.

It is essential to have all the correct enrolled documents from the proposed dealer that pronounces his proprietorship. These reports are critical for you to accumulate an advance from the bank.

ARE YOU IN A FINANCIAL CRISIS ? LOOK HOW DEBT COUNSELING IN WILL HELP

In the event that you are falling into a budgetary emergency due to the rising property loan, there are sure advances you can take to enable you to recapture control of your money related circumstance. One essential advance to take that opens a pathway to different choices is talking individuals who comprehend their funds and can enable you to better comprehend yours. Here is a rundown of a portion of the best individuals you can contact on the off chance that you are falling into a money-related emergency.

Debt counselors will adopt an all-encompassing strategy to your money related circumstance and take a gander at all of your advantages and liabilities and think about your credit, salary, and obligations when helping you choose how you can continue in your budgetary circumstance. An affirmed monetary guide will enable you to see the greater part of your choices and pick which will be the most proficient for you to discover your approach to budgetary flexibility. You will likewise have the capacity to converse with a money-related advocate various circumstances to inspect your advance after some time. You can converse with a budgetary guide at one of our part offices.

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Below is a list of 10 debt counselors in Bangalore:

 

  • CIBILL CONSULTANT

 

Location: Indira Nagar

Established: 2005

Modes of Payment: Cash & Cheques

 

  • DEBT UNCHAINED

 

Location: Kalyan Nagar

Established: 2016

Modes of Payment: Cash

 

  • CLEARMYDUES.COM

 

Location: Kalyan Nagar

Established: 2016

Modes of Payment: Cash

 

  • CIBIL CLEARANCES AND DEBT NEGOTIATION SETTLEMENT

 

Location: M.G.ROAD

Established: 2010

Modes of Payment: Cash, Cheques, Master Card, Visa Card, Credit card & Debit Card

 

  • CREDIT CLEAR MANAGEMENT CONSULTING SERVICES

 

Location: Koramangala

Established: 2013

Modes of Payment: Cheques

 

 

  • CIBIL PROBLEMS & SOLUTIONS

 

Location: Kadugodi

Established: 2012

Modes of Payment: Cash

 

  • TRIPLE-A SERVICE

 

Location: Hbr Layout

Established: 2007

Modes of Payment: Cash & Cheques

 

  • EDVIN INDIA CONSULTANCY SERVICES PVT LTD

 

           Location: Ejipura

           Modes of Payment : Cash & Cheques

 

 

  • CITY FINCORP SERVICE

 

Location: Civil Lines

Modes of Payment: Cash, Cheques, Credit card & Debit Card

 

  • CREDIT CONSULTANTS

 

Location: Dickenson Road

Established: 2013

Mode of Payment: Cash, Cheques, Master Card, Visa Card, American Express Card, Credit card & Debit Card

A legitimate credit-counseling service, such as Debt Counselor, can be a practical answer for long-haul budgetary issues. Notwithstanding giving profitable budgetary training, they likewise offer workable obligation administration designs. This isn’t a convenient solution. Be that as it may, it is a standout amongst the most sensible approaches to escape obligation and remain out of obligation.

Taking care of monetary issues requires that you comprehend the fundamental reason for the emergency. Inspect the reasons equitably. In the event that you have medical problems, loss of work, or have maintained harms from a cataclysmic event, there are offices that can help you. Do some examination and don’t be anxious or humiliated to request help. On the off chance that your cash issues are an aftereffect of poor administration or overspending, don’t criticize yourself. Keeping up your confidence and an uplifting mentality will empower you to settle on great balanced choices so you can work out of obligation.

THE GROWTH GRAPH OF AHMEDABAD REAL ESTATE IS IN EXPONENTIAL TREND KNOW HOW

What’s the scenario?

Ahmedabad, being the biggest city in Gujarat and one of the greatest hubs of commercial as well as residential areas, it has commercialized itself to be an area of real estate investment. The availability of several residential projects is attracting a lot of potential home buyers. Its advantages include location nearer to the banks, schools, top rated educational institutions (like IIM, CPET, NID) as well as being a hub of textile, pharmaceutical and chemical industries.

Whats the reality Trend in Ahmedabad

The real estate market is growing and reaching heights because of great commercialization and its meeting the demands of the homebuyers If compared the past with the present scenario, in the past residential development in Ahmedabad, there were individual bungalows. Now new projects like Godrej Atmospheremoney-coins-stack-wealth-50545.jpeg have come up with new cropping of flats, apartments, serviced apartments, bungalows, penthouses, and township properties. The major advantage lies in the factor that across all the sectors, there will be consistent 10-15% growth in the property rates. The slump in the house sale with over 42,000 new housing units that are lying unsold.30% of the unsold lies in Vastrapur, Bhopal, Thaltej, and Satellite.

What Are the Major Areas

The major residential areas are in Shahibaug in the north, Bodakdev, Prahlad Nagar in the west, and the areas in Kankaria and Chandola lakes in the south-east such. Ranip, Maninagar, Nimaynagar, the Sadder Patel King road. Sanand is an automobile hub whose flats are pricing around Rs 3000-3500 sq. ft. In Jagatpur located in north Ahmedabad, the prices range from Rs 4300-5000 sq. ft); while that of Thaltej the prices falls between Rd 4700-Rs 5200. The most popular locality is Sarkhaj-Gandhinagar Highway which connects Ahmedabad with Gandhinagar. Many potential buyers make their home here in SJ highway, and the prices fall anywhere between Rs 2900-3200 sq. ft. Therefore all these factors lead to making Ahmedabad as one of the preferred cities to invest in real estate. This property has come up with the best deals for which a buyer would have been waiting, and this deal is a quite once in a lifetime’s deal. Even areas like Kuber Nagar, Gandhi Nagar, Ashram road, Nicol, Nava Naroda and now Ranipare has become the recent major openings.

The property market has grown since the years showing a good peak, and the conditions for targeting a real estate in this place are so favorable that these areas have become hubs of investment.

The Occupancy Certificate –Things You Should Know

What is occupation certificate

An Occupancy Certificate (OC) is a document issued by the local Governing body (like BDA or BBMP) for every commercial or residential project (above 5 units) like Godrej Verve which signifies that the project is fit to be occupied. Once the construction is complete and the project is ready, it is the duty of the builder to approach the local body and apply for the same. Once it’s applied, the local authorities will check for the following –

  • If the project has any deviation or events not (up to 5% deviation is allowed)
  • If the fire department clearance certificate is available
  • If the Airport authority have an object (if it’s in a fly zone)
  • If the project has Electrical Inspectorate Certificate
  • Misc documentsOnce all of these are shown, the OC will be issued within 30 days.

    Whats the problem to be faced

    The problem is that most builders (yes, even the reputed ones) end up deviating on from the original plan of construction example some construct 12 floors when only 11 were sanctioned while others turn an 1800 sq. ft apartment into a 2000 sq. ft apartment. Due to this, the builders know that the local body won’t issue the OC and don’t obtain the same. If a property is without an OC, it is illegal to occupy the same (rental or possession) and the Govt. can as residents to vacate anytime! Also, selling an apartment without an OC (when you finally want to sell it) is very difficult.

What’s the solution?

The only solution is awareness. Even before paying the 1st installment of money to the builder, the buyer has to get it in written from the builder that the OC will be provided prior to possession of the property (This can be done with the help of a good real estate agent or lawyer by modifying the Sale Agreement which is drafted). Buyers should not make the final payment to the builder without getting the OC from him first. Another way the buyers can protect themselves is by asking the builder to produce the OC he’s procured for some of his previous projects. This will make it very clear if the builder has a habit of getting OC or not.

Generally called U&O (Use and Occupancy) or CO (Certificate of Occupancy), depending on the municipality, they have different meanings and requirements. PA has a new law requiring the municipality to issue a temporary U&O if the property does not meet their requirements and compliance would delay settlement. The purpose is to certify that the property meets minimal habitable/safety standards and/or code compliance simply does not have any violations recorded against the property. Most lenders require a “clear” U&O as a condition of the loan, 

downloadso this could be an issue in a sale or refinance.

Thus, the occupancy certificate is given after a survey which ensures certain civil laws and safeties have been following that is why it is important and tall buildings should have provisions for firefighting and access for a fire engine to enter the premises. Other facilities like sewage, water supply, electricity and rainwater harvesting should be in place.

What is Non-Compliance in RERA?

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The Real-Estate Regulation and Development Act (RERA), 2016 is the breakthrough achievement for the Modi Government. This act aims to bring transparency, accountability, and financial discipline in the Real-Estate sector. If this act implements correctly, then the demand for fixed assets will rise.

Why is RERA Necessary?

The number of complaints against builders who are not credible is increasing. RERA acts to protects the interests of consumers. The complaints are related to delay in possession of residential apartment buyers, problems in society, abnormal behavior of promoter after signing the agreement.

The Act makes it compulsory for the promoters to disclose the information such as details of the promoter, layout plan, details of the real estate agent, architect, contractor etc. to the consumer.

Non-Compliance in RERA

In case of Non-Compliance, the stakeholders (developers, promoters, agents, buyers) will face penalties like

  1. The penalty of 10% of the estimated cost of the project against the builders and the promoters, if they fail to register as per RERA. A continued violation may result in three-year imprisonment along with the fine.
  2. RERA can dismiss the registration of developer, property, agents, and promoter if they fail to keep up with the Act, violate the terms and conditions given by the competent authority, or involved in unfair trade practices. The body will revoke the registration after giving a notice one month before the due date.
  3. A five percent penalty of the estimated project cost on the agents and the promoters if they provide any false information to the consumer. If they fail to comply with the orders of the Appellate Tribunal, then the penalty will be increased to 10% of the estimated project cost. They may face imprisonment of up to one year.
  4. The consumers will face a fine of 5% of the cost of apartment/property if they fail to comply with the rules of the Act or violate them. If they fail to respect the orders of the Appellate Tribunal, then the penalty may increase to 10% of the apartment/property cost. The consumer may also face up to one-year

Types of Non-Compliance certificates:

Types of Non complience

In Case of Project Delays

  • If the consumer wishes to withdraw, then the builder must return all the amount collected. He must pay the interest and compensation as directed by an adjudicating officer.
  • If the consumer wishes to continue, then the builder should pay the interest every month as compensation.

In case of Structural Defects

The promoter will have to rectify the defects pointed out within five years of possession of your residential property. He should rectify the defects within 30 days of the complaint. The consumer should not pay any additional charges. The allottee is entitled to seek compensation in case of failure.

In case of Delayed Payments

The consumer is liable to pay monthly interests to the promoter if he fails to pay the installments. The defaulter will receive a notice. If the violation continues, then the promoter can terminate the allotment and refund the amount collected after deducing booking amount and interest.

RERA is an important step in the development of Real-Estate. The Act may bring up the pace, which the Real-Estate Sector lost due to demonetization.

It’s Better to buy a RERA Approved property like Prestige Elysian to avoid such discrepancies

 

Ways to fund your real estate investment

Real estate financing

Real estate financing

Whats the Bank’s take on funding

As the popular adage goes that the bank will lend you the money only if you prove it to them that you do not need it. Unfortunately, banks function in reverse, the more you need it and the more you express the need for it, the bank will tend to avoid your request and will keep you on hold. There are so many loopholes to finance investment in real estate, that one alone cannot master the task of it. For expert advice, one has to turn to certain measures. Some of the points are listed below though, for reference purposes.

Investing in real estate property is not a fiddle, it requires great expertise. It is much like watching grass grow, and there is actually no scene of excitement. Since the expenditure of buying houses and investing in them is huge, there is a high chance that if wrong steps are taken, a lot of money is lost. In this case, it is advisable that people consult a proper attorney, submit original documents, in case of a loan, and try to follow guidance for investment purposes.

A lot of people hold a misconception about free real estates, and they are bound to think that way, especially because they have recently viewed some commercial or read a flyer. But here is the revelation: there is no real estate property which can come for free. The real estate is a hardcore commodity that must be bought with money, be that one’s own money or borrowed money, which eventually needs to be paid off. If you are a real estate investor, you have to learn how to invest your money, how to compare the deals and move ahead with the investment procedure.

Why real estate financing:        

Different investment vehicles are present, namely commercial real estate, real estate homes, apartments etc. one needs to know where he has to invest. One doesn’t need a lot of money to buy property in real estate. One simply has to learn some strategies and channelize the money. With a fixed amount of money, instead of buying the entire home, that money can be channelized to buy 5 homes, and the return will automatically be more than the first case.

Types of fundings you can raise include

Conventional Mortgaging:

Channelizing the cash can definitely improve the returns on real estate, as illustrated above. Conventional mortgaging is one way that most people are dependent on their transactions. It might not be a bad idea altogether, but one needs to be careful on down payment.

Portfolio lenders:

Loans can come from various sources like that of the bank, mortgage brokers and credit unions. These sources aren’t also using their own money, but the people’s money. As a result, there are many strict rules that come into play when one is thus applying for a loan. Personal portfolio submission with original documents is one of them.

There is an exception to this rule, and some banks are lending money from their own funds, which make them portfolio funds. The rules for these funds is less hectic, and naturally more on the lenient side.

Owner financing:

Occasionally the owner of the property also might volunteer to fund for the property, and one makes the monthly payment to the owner and not the bank. As simple as the arrangement is, it is flexible and does not involve risks of deadlines, as in the case of banks.

Hard money:

It is the cash that comes from a private business or individual for the sole purpose of investing it in the real estate markets, and it is for short-term periods only. One can avail any of these and invest in real estate property and must take decisions wisely.

For avoiding funding problems Opt for a pre-approved property from a reputed builder like Godrej Verve, which is easy to get all the fund sanctions.