The young Investor
Buying one’s home is every individual’s ultimate dream. However there are several factors that determine the time to go for the big buy. One of them is the age-factor. While it is an important criterion for the bank/financial institution, to determine your home loan duration it is also very important to calculate your savings for the initial down payment amongst other things. What youngsters need to consider: 1) For a first home purchase, set aside a budget that is affordable and in-line with your career growth and pay scale. 2) Ensure that you have savings of up to 20-25% of the value of the house, prior to purchase, while the rest could be from a home loan. 3) Maintain sufficient balance in your savings, for emergencies and other investments like marriage, family, vacations, further education, vehicle etc. While most banks provide loans of up to 85% of the property value, youngsters need to first check the EMI that they would be comfortable paying each month.
Source: Mid-Day, Friday 20 December 2019
Fewer projects launched but more home units sold
Annual sales of residential units have exceeded launches for the first time since 2016, according to a report by real estate consultancy JLL. This came despite sales growth moderating from 42% in 2018 to a mere 6% in 2019. Yet, overall sales overtook launches as builders brought fewer projects in the market. The report revealed while sales increased by 6% to 1.44 lakh, launches declined by 14% to 1.37 lakh in 2019 in seven top cities in the country compared to 2018. In office markets, despite slowdown in economy, absorption as well as completions have shown strong growth in 2019, increasing by 40% to 46.5 million sqft and 45% to 51.6 million sq ft respectively. The seven cities covered in the survey are NCR-Delhi, Mumbai, Bengaluru, Pune, Hyderabad, Chennai and Kolkata. The report said while first half of 2019 witnessed a 22% jump in sales (year-onyear), second half recorded a 9% dip in offtake of units. A prolonged economic slowdown and weak consumer demand have led to sluggish sales, with buyers postponing purchase decisions. Mumbai remained the only city to witness a hike in launches. All other cities saw a drop in launches in 2019 as against 2018.
Source: The Times of India, Tuesday 24 December 2019
Living it up in Luxury
In recent times, there has been a demand for luxurious amenities and architecture that would truly define the term ‘living it up in style’. Here’s looking into closely…….. Though the Indian real estate market may not be growing at a steady pace, the luxury homes segment has a different story to tell. It was observed in the past that luxury home buyers vied to get their residential abode in the ‘most-sought-after’ vicinity. For instance South Mumbai or SoBo was the address to be in, if you were the rich and famous. However, in the present times, most Indians who travel abroad frequently and hence are exposed to a higher standard of living have expectations that extend beyond just a fancy address. As for the builders, they seem happy to comply.
Parameters of Luxury Housing in India: Research in the luxury homes sector in India reveals that pin codes and addresses is one of the most important parameters for buyers. Except for a few exceptions to the rule in some key cities, it is still the most relevant parameter even in our current times. Despite the multiple innovations, design upgradation and enhanced specifications and amenities visible in the latest crop of luxury offerings, the premium placed on signature locations still stands high. Most of the times, the luxury home buyer expects to live people of similar or better professional accomplishment and social standing. He wants to be part of a select group and social environment where he would socialize with the influential kind and whose children he would like his own children to mingle with. In short, luxury living for most denotes a social environment that suits a social bracket where wellknown personalities like to mingle with their same kind.
Source: Mid-Day, Friday 27 December 2019
2020: Year of the Millennial Home buyer
According to a recent report, a whopping 49 percent of Indian millennials aspire to buy a home. Here’s a report… #MillennialRetirementPlans – this hashtag took over the internet in September this year. It humorously focused on the millennial way of life. While one of the tongue-in-cheek tweets was “gonna have oceanfront property once the water rises”; the rest depicted a more serious connotation in the form of “fix problems started by the baby boomers”. Many may perceive that millennials (those believed to be born between 1981 and 1996) lack financial foresight, and instead be leading slightly frivolous lives driven solely by materialistic indulgences. But the truth perhaps is a tad different. According to Deloitte Millennial Survey report 2019, 49 percent of the millennials aspire to own a home. The interesting part is, three-quarters of this 49% are confident that they will be able to fulfill their home-buying dream. More than half of the people surveyed want to earn high salaries and be wealthy, and contrary to popular perception, not utilise their wealth to buy a high-end smartphone, but instead gain financial independence in the form of real estate.
“When they do look at purchasing a home, they do their research online in a thorough manner and take into account reviews of a particular builder/locality. They also seem to prefer ready homes or near-to-ready properties, thus making it essential for builders to have an online presence,” says Mudassir Zaidi, executive director – North, Knight Frank India. Millennials have also been the catalyst to a rise in affordable housing. According to ANAROCK research, by the end of 2020, Delhi/ NCR will have the highest number (46 per cent) of affordable housing in the country, followed by Pune, which shall have 60 per cent of the total real estate in the affordable sector. Mumbai Metropolitan Region (MMR) shall stand third with nearly 25,540 affordable units to offer by 2020. Even in the face of the slowdown, experts believe, it is millennials who are contributing to keeping the sector afloat. Millennials who are willing to move cities for better work opportunities are constantly looking for homes to rent. “This renting behaviour can also be attributed as the outcome of high property prices,” says Ramesh Nair, CEO and country head – India, JLL. This, in a way, encourages those who can afford to make a property investment to rent it out and earn a side-income.
Source: Times Property, Saturday 28 December 2019
Is your Home Tenant-ready?
A well-maintained house appeals more to tenants; it will rent faster and for a higher price. Home-owner Aniket N, who has been renting out his apartment for years shares this sentiment and believes that the sooner your house is rent-ready, the lesser money you will lose due to vacancy. “If your house is clean and in good shape, your chances of finding a tenant are quicker. Also, most tenants usually keep the house in good condition – after all, they would want their security deposit back,” he explains.
First Impression: The rental market is an increasingly competitive one and unless you’re on top of your game, it can get difficult to attract good tenants. Vignesh Shanbhag, a Pune-based landlord, is a strong believer of presentation of the house, especially online. “On online rental platforms, it is quite common for tenants to look for properties by using the filter option to exclude properties that don’t include pictures. Hence, ensure that you upload the latest pictures on the portal. You don’t need to spend money on a fancy camera to get good photos as even your mobile phone will work,” he explains adding that a tripod and the ‘wide angle’ factor help you maximise space in photos, showing off the room at its best angle, even in lowlight situations. “Highlight aspects that are unique or special to your house,” he adds. Safe and Sound: Security is a key aspect that tenants look for in a house as they would feel more at ease if they have a safe place to live in. It not only protects your investment, but also makes the building more attractive to tenants.
Source: The Indian Express, Saturday 28 December 2019
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