Ready to buy a new home?
After securing the amount and finalizing the apartment, there are a number of steps that are still left to be followed.
Usually, we don’t talk about the aspects of buying real estate, that isn’t directly in our sight. Most real estate buyers, when they step out to buy an apartment, are unaware of things like Occupancy Certificate or Property Transfer Forms, because these are the builder’s responsibility.
But as a smart buyer, you must know about the legalities associated with buying a house to protect your interest as the house owner in the best way possible. We hear about real estate scams and developer-resident disputes every day, and by all means, you would want to avoid such a case.
Therefore, we have laid down some of the basic things that every new or first-time house owner must know before-hand. These are not ground rules but checking these things in advance would help you make the best property decision, and enjoy your stay for a long time.
It’s hard to forget the huge property scam of Bangalore where 1500 crore rupees were falsely solicited with the help of a fake real estate project.
Buyers were shown a lucrative residential location where construction had begun and the price on offer was too cheap to miss out on. This resulted in 5000 sign ups from various parts of Bangalore, and people ended up losing lakhs of rupees because of this treachery.
In order to avoid such a thing, following are a few legal documents you can verify before handing over the booking amount to any real estate developer.
The property title is a legal document that lays down the ownership of the land on which the project resides and the name of the property owner. It is one single important document that you must check before initiating any conversation regarding the property.
The title comes with a few clauses that must also be checked, such as marketability, any encumbrance (if applicable) and the tenure of over 12 years.
Keeping these things in check will allow you to make a safe deal. The marketer, broker, and the builder are obliged to present these documents at any time you ask.
Title Documents consist of;
Other aspects related to the title
In case the builder is entitled to development rights, the power of attorney and property agreement, are to be rested with the seller of the property.
If you’re buying a resale flat in India, there is a separate set of documents that you need to take care of. We have briefly mentioned those as well.
The document connects the owner of the property to the seller of the property and tracks the true ownership of the property before it is handed over to you.
If the flat resides in a cooperative society, the share certificate proves the share of property in the society and acts as the title of ownership in this case.
The Title report is a report that signifies the authenticity of the title against any defaults in the sales deeds and bank loans, that may affect the transaction.
When you search for properties on sale, there is always one person of contact that gets you through to the property. Then there is a person who gives you brokerage advice and then there is the seller of the property himself.
All of these people may not be significant except the seller. It is as important to check the identity of the seller as it is to verify the ownership. In the Bangalore scam we mentioned earlier, the owner of the property was living with a fake identity and didn’t originally belong to the city either.
Here are some measures that can be taken in this regard.
Later on, it becomes very difficult to press charges against the person and the person faces a deep setback due to the scam.
There are several government checks performed on the property before it is given approval for construction or even sale of apartments. These permissions come in the form of certificates issued by the government as the development of the project advances.
There are umpteen real estate projects that have been constructed without prior permission from government authorities and have been sold to the residents without a worry.
Before RERA came into existence, these laws that overlooked the sale of such properties were not strongly implemented, but now there is a clear process of passing properties. Heavy penalties are imposed on projects who fail to produce such certificates.
Here are a few you should always take care of;
Wondering what is IOD? It is called the intimation of disapproval but here disapproval refers to an authorization or permit. Matter of fact, it is also called a building permit or IOD in construction.
The IOD provides a clearance to the builder to start the construction process after several checks from local authorities are done. These checks are carried out during the site inspection process, where it is determined if the land parcel is fit for construction or not. Engineers at the Building Proposal Office determines the eligibility of the project before issuing the IOD.
The IOD certificate usually takes about a month to month and a half to complete as there are 40 different checks made before issuing. Several local authorities sanction permissions such as Fire Clearance, Permission from Traffic and Coordination Department, Environmental Department, Sewerage Department etc.
An IOD is an initial permission given to the builder for the developer and the actual architectural plan is separately checked.
CC full form in construction is Commencement Certificate, which is given by the local authorities to a real estate builder as a sign of commencement of the construction.
In comparison to IOD CC is an official permission for the commencement of construction. The IOD is an approval for the buildable land, where CC is recognized as the letter of approval for the building.
It is handed out after the builder has submitted the architectural plan for the building and various checks have been made for the same.
From the perspective of the buyer, it’s important that you check the commencement certificate before investing in a building project. If the builder doesn’t have this certificate, chances are that the project is being developed illegally.
Building layout approval is used to determine the layout plan of the construction project which is checked for compliances to the existing layout laws. The terms that we used earlier such as FSI and FAR values are checked for the project, in order to approve it.
Usually, the Municipal Corporation is responsible for providing approval to the building layout of the project. The layout approval is the part of building approval procedure where the building plan is checked for compliances.
The building layout approval is mandatory before building anything on the given land. Even if you have IOD, you can’t start construction until you have building layout approval first with you as these both look at different aspects of the same thing.
Building layout approval affects the projects in the later stages as well. For instance, at the time of redevelopment, the Mumbai authorities have certain rules that work in this sector.
Recently, re-development in some parts of Mumbai has taken off as a business and the factors that control the redevelopment directly affect how this is compensated to the owner of the property.
Stamp duty is a sum of money deposited with the government for registering your real estate transaction. Once your document is stamped by government officials and local registrar, only then you become the lawful owner of the apartment.
It is often said that even after possession of the property, it is crucial that you obtain the ownership documents by paying the stamp duty.
Stamp duty is one of the most important aspects of the whole real estate transaction that will take place between you and the seller. Each state imposes its own stamp duty and it is considered as a tax for registration of the property.
You can check the same on the various documents presented before you by the selling party. There should be proper mention of the stamp duty and the amount paid to obtain it.
Stamp duty varies from state to state but the general percentage that is followed in most states in about 5% of the total value of the property.
The completion of property tax and timely settlement is another point of concern that often misses the eye of the buyer.
Most real estate developers hide their property tax status from the buyers because the development costs often bootstrap them from paying taxes on time. This leads to penalties later on that are bore by everyone involved in the transaction.
Hence it is very important to check the tax status of the real estate developer and make sure that it is being paid on time. Even if it’s not paid, you should have enough confidence in the real estate developer that they will pay the taxes without further ado.
This can be verified from the office of municipal authorities of the locality and the developer will be highlighted as a defaulter in case taxes aren’t paid before you make the purchase.
A lot of properties in Mumbai are being redeveloped in order to make them functional again and make heavy gains on properties that are considered dead.
Over the years, redeveloping properties in suburbs of Mumbai has taken off as a major real estate trend and the implementable laws have seen the light of the day very recently.
For these properties, similar tax laws exist. If you’re buying an apartment or an office flour that has been reconstructed, the tax has to be paid for the new construction.
In many cases, the builder is obliged to pay rent to the original property owner till the reconstruction completes. Therefore, these clauses can also be checked in case you’re interested in investing or buying a reconstructed property in Mumbai.
Real Estate Regulatory Authority of India that came into existence in 2016 is an important step forward in clamping down project delays and unfair project deliverability.
Before RERA came into existence, these laws that overlooked the sale of such properties were not strongly implemented, but now there is a clear process of passing properties. Heavy penalties are imposed on projects who fail to produce such certificates.
In addition to strengthening the developer-buyer relationship, RERA has done a lot of work in making sure that the buyers don’t have to face consequences due to delays in projects.
A number of recent reforms have been made to the marketing of the project and how the possession of an apartment takes place.
Therefore, after the inception of RERA, each project is expected to carry a RERA registration number, which can only be obtained once the project complies to various RERA prerequisites before starting off with sales.
You can check the project’s registration status at official RERA portals of various states. A few of them are given below.
In conclusion, there is a lot of things that home buyers usually ignore before making the purchase. We have listed a number of such things in this article which will help you make a safe real estate transaction in the future.
Usually, we don’t talk about the aspects of buying real estate, that aren’t directly in our sight. Most real estate buyers, when they step out to buy an apartment, are unaware of things like Occupancy Certificate or Property Transfer Forms, because these are the builder’s responsibility.
If you’re buying a flat or an apartment in a new building project, you’ll need more than a just good reputation for the project. Doing a background check on various things like government permission, identities of the builders and the tax status of the project will help you avoid unnecessary consequences later on.
India is a dynamic country and all it takes to learn the dynamics properly in order to get rich.
The same philosophy applies to real estate in India.
If you’re aiming at the investment market of India, you need to understand how it is done, what all things work here and a few basic concepts about real estate investment in general.
Before, beginning, let’s answer the fundamental question that is popping right now in your mind.
Why Real Estate in India?
Real Estate in India continues to be a lucrative asset considering the multifarious growth that is constantly taking place in India. The population is rising, the jobs are rising, and everyone needs a house to live or stay in.
As this growth keeps pumping more demand in the market, there is a lot of money to be made in the process.
Apart from this fundamental reason, there are other benefits as well, that are listed below.
Real estate is a safer investment as compared to other assets such as stock market, capital ventures, and your own run business, as the chances of loss are lower.
For instance, If you invest 50 lakhs in the stock market, chances are that you can convert the sum into 50 crores but at the same time, you can also end up losing everything in one go.
Whereas when you buy a house worth 50 lakhs, you can use it until you sell it off, and with each passing year, the value of the house will only rise. Even if you sell it for 50 lakhs after living in it for 5 years, you’ve saved 5 years of rent. So, the scope for loss is pretty thin.
For the people who have the capacity to invest in large numbers, have the avenue to convert lakhs into crores. Real estate investments when done right, can fetch heavy returns with the passage of time and can be utilized in multiple ways to generate income.
Most Probable Appreciation
One great aspect of real estate is that unlike most of the things, it’s value doesn’t go down. The value appreciation may slow down or may not take place at all, but it doesn’t go down.
The market keeps up with its uncertain nature and there will always be opportunities to make some money.
Moving ahead, let’s look at some basic real estate concepts
Must Know Real Estate Concepts
Before you step into shoes of a real estate investor in India, it is advisable to know some basic steps that would help you get a better grasp of the industry.
Most real estate markets move through a definite process that determines how value will be made in it. There are four broad steps to it.
The recovery phase predominantly outlines the market condition when it is slowly improving from a recent disaster. Things are getting better and buyer interest is slowly rising again.
Expansion an Hyper Supply dictate the phase when the market goes from booming to ready-to-explode. Everyone is investing in this phase and little thought is given to the potents of sale.
Finally, the bubble breaks and everyone realizes that the demand just doesn’t exist. The property is ready but the buyer is not, hence it is sold at reduced prices and the overall profit nosedives.
Lesson – So, when you go out to buy, the market you’re interested in, will be going through one of these phases. You can take the decision to invest, the amount of investment or search for a new market accordingly.
It is hard to tell the future with certainty and real estate is all about playing with the uncertainties. Hence, don’t lull yourself in believing that you’d triple your money in five years.
But what can be done is that you can analyze the property trends and make a plan that will work for you. It will can include a plan B and full-fledged profit-making opportunity.
While most people say that, “choose a profitable location”, you must consider your goal first. Are you going to hold the property for 3 years or 10 years? Are you investing 10 lakh or 1 crore? Do you expect to make 10 lakh in 2 years or 50 lakhs in 5 years?
All of these considerations will make a certain location good or bad with you. The growth potential of a location must be aligned with your spending capacity and intended goal, then only you’ll make a smart decision.
Like everything else, there are a number of ways in which real estate investment in India works.
For instance, you can simply buy a house, or buy a plot and build a house, or buy a pre-leased house, or buy an office and give it on rent, strike a partnership and so on.
Certain investment types favor certain markets and the prerequisite about this can immensely help you in making a profitable decision.
Where to invsest?
There are umpteen markets and micro-markets where you can invest wisely, but our focus in this article would be to consider upcoming smart cities in India.
The reason behind this is the high growth potential, upcoming builder projects, and an overall rise in buyer interest, making them a considerable option.
The commercial hub of Andhra Pradesh and the largest city in the state, the city is amidst a complete industrial overhaul.
Chennai is the capital of Tamil Nadu and yet another industrial hub in south India. It is currently poised at becoming one of the best places to invest in India.
The soon-to-be IT hub of India which is currently expecting serious developments in the airport business and has been on the hot list for NRI real estate investment in India.
Pune enjoys a number of substantial reasons for the real estate market to boom in this city. Some of these being fast-paced IT developments, climatic conditions, and well performing real estate market.
Presence of an IIT and an IIM in the same city brings a lot of interest from rest of the parts of the country to Indore, besides its proliferating pharmaceutical industry.
After having learned the various dynamics and options, you can take your decision with a much better state of mind. There are still a number of calculative aspects such as
how to tell the market trend?
How much investment will suit what market?
What are average ROI rates in the mentioned locations?
All of these questions can either be answered by getting on the roads and doing a close survey or by consulting a real estate advisor. Hence, if you’re not an expert in yourself, it’ll be wise to consult someone as these trends are hard to read off an internet article.
After the 71 years of independence we still find ourselves chained in various government policies. In spite the right to property being a legal right under Article 300A has not the total independence from authorities of law.
Let’s analyse in this article, that how independent is the Indian Real Estate market.
The government has made various changes in its policies to liberalize the Indian real estate policies, a few of them has been mentioned below. The changes which could be seen are not only due to change in policies but are also due to the change in technology.
The Inception of Real Estate Regulatory Authority
After independence, there has been various government connotations for housing policies. But with the emergence of RERA two years back, has provided teeth to rights of the consumer.
With the inception of this Act, the unscrupulous practises of market are cleaning up. The market size has grown larger and the government is coming out with new policies to make the houses more affordable.
End of Cascading Taxes (GST)
Goods and service tax has emerged as a game changer of policies. With this taxation policies, the taxation process has gotten simpler, transparent and accountable.
This amendment has brought clarity to the minds of the home buyers about the final price of home and this policy will also help the India in emerging as a developed nation.
Role of Rising Technology
The development in science and technology has given the home buyers are wide range of choice to choose their desired housing destination.
With the help of the internet, size of the market has grown globally. There are nearly 500 million internet users who open a wide range for revenue generation.
By 2022, one house for all!
The promise of the current government that there will be ‘housing for all by 2022’ seems overly ambitious. As, according to the recent reports there has been shortfall of 19mn in the urban housing.
The achievement of this dream mostly depends upon the following factors.
For now, we can still appreciate the milestone which has been covered by the government.
After the 71 years of independence, there is a positive development. India has emerged as powerful state and standing heads and shoulders above the other emerging countries.
The real estate world has been on a rollercoaster due to the recent political and economic reforms taking place in the country. Last year we say the demonetisation fiasco, the establishment of RERA and implementation of GST. We can easily say that the market is headed towards a new direction altogether, based on the widespread changes that took place due to these activities.
We have shortlisted five such trends that will change the real estate sector in India and will influence any property decision you make.
A Clearer Exchange of Information
The first noticeable change that took place was how the information regarding the sale and purchase of properties was exchanged. Before the establishment of RERA, there was no standardised way by which builders would appeal to the masses and interested buyers would actually buy an apartment without having to go through a mountain of troubles.
The whole architecture that governs the flow of information from the buyer to the broker and beyond has been eased with the help of better policies at place. The government is taking important measures to make it easy for all the participants of the real estate business to carry out commercial activities.
The capital requirements for Indian real estate market have been met sources like pension funds and private equity funds, when RBI refused to save the flimsy market by offering its supremen help. RBI has been wary of spending in Real Estate due to the high percentage of uncertainty that the market brings along. Hence, the developer and buyer communities found alternative ways to source capital, in the form of non-institutional funds.
A Rescue-based Business Model
The number of bankruptcies that came forward due to poor real estate performance were too high to deal with and warranted an inevitable demise of the market. This was the time when bigger players landed in the competition and acted as godfathers for these smaller land owners and builders. The resultant was the formation of joint ventures, agreements and business set ups that facilitated the consolidation of poorly performing sector.
The same trend is expected to continue and keep adding more significant rescues to the list.
FDI in Indian Real Estate
India has received ton loads of foreign investment in real estate for a number of good reasons. The overall GDP has grown, the government is playing lenient and there have been policy changes prompting the large investments being made by foreign investor houses to gain a profitable corner in India’s market.
This and private equity are two things that are helping Indian developers to realize their potential, especially when the banking support has been missing.
Green Space Leader
It would come as a surprise to many but India is currently leading the global green building competition and has acquired the 3rd spot worldwide. No one would have expected such a huge turn around when India’s green building cover was infinitesimal as compared to today’s 4.5 billion square feet.
The same trend is expected to catch more fire with fueling being constantly done by Indian organizations promoting the set up of green office spaces.
Whenever it comes to investments, it’s always good to have a healthy amount of doubt before handing out your precious money to a commodity.
The same reason that almost everyone who wishes to make it big, gets stuck in the two best options that the Indian market provides; stocks and real estate.
Which one is better? It’s a tough question to answer. Investing in property is worth a lot of value for a long time whereas stocks are convenient for just anyone who wants to make a short lived investment. The return on investment is not fixed in any of the two, you have to make your stars shine yourself, so what would you prefer.
Let’s see the individual benefits offered by both the options
Real Estate Investments
Investing Real Estate such as buying an apartment, a house or a piece of land gives you a tangible asset that can be used in a multiple ways. You can rent it out for passive income or you can use it for your own residential activities.
It is also the kind of investment that will help you generate more value than you have invested, because even if the property rates rise slowly, they are sure to rise. You can be free of doubt of loss.
If you plan to make the investment for a long period of time, the gains multiply themselves to twice and thrice the value you initially invested, offering you an unmatchable source of ROI.
A real estate asset such as a home is not only an investment, it’s a security for the future, a way to sustain life and even carry out business from the comfort of home.
Stocks provide investors of all classes and levels to try their luck with a commodity that has great potential. Stock investment can be as low as 100 rupees and as high as 10,000,000,000 rupees, the flexibility in investment is a great feature.
Stocks require minimum to no maintenance, you needn’t worry about taking care of your stocks, once you have bought them. You only have to predict the best time to sell them. This gives you enough time to engage in other activities.
As an investor, stocks are the only option that allow youngsters to try their hand in the game and build a career in it. Infact starting early is considered the best practice in the stock market.
We believe investing in property is still the better option as it offers way more benefits than stock investment. The only problem is that of scope; you need large amounts of money in order to make worthwhile investments in real estate, whereas, there’s no such bar in stocks.
But with the help of smart financing, valuable real estate investment advice, and a vision to become big, you can make a fortune in real estate. Stocks in that regard are too volatile for sustaining long term investments and leave you in the risk of failure virtually always.
The real estate market is on a low. There’s no denying that even the city of dreams doesn’t have those lucrate property deals that it once had. The growth rates have slowed down and it takes about twice the time to get a high valuation from a property you invested in.
Having said that, there are still a lot of places that are showing bright signs of investment. This is the affordable housing segment that is proliferating at the fastest pace right now, leaving behind the premium property segment.
Investing in these properties is really beneficial and they don’t need you to empty yours and your family’s bank account. These small to medium investments have the capacity to reap in healthy future benefits, in terms of active and passive incomes.
Here Are Some Micro-markets To Invest In
The Developing Parts Navi Mumbai
The Navi Mumbai is witnessing a lot of development that is acting as the epicentre of buyer interest in the properties. The new Navi Mumbai Airport has already increased property valuation in the 10 km radius and the improved connectivity to the main city of Mumbai already acts as one of the significant factor for buyers.
Going with the flow, Navi Mumbai is also gaining more interest from the affordable housing segment and the property rates of the costlier areas such as Palm Beach Road have fallen. More IT companies are choosing Navi Mumbai due to the lower rates and Vashi is on a comeback spree for new development.
The affordable Housing of Mumbai
The markets of Chembur, Goregaon East, and Andheri West are observing a property price hike because of their affordable housing options. The more popular localities are on a downhill ride as investment ventures due to the shared loss in popularity.
Versova and Ghatkopar metro line is also due to bring in more investment in adjoining areas.
The Upcoming Projects in Thane
Thane has observed a high infra growth in past few years and in fact it stood out as the 18% shareholder of all the major housing projects carried out in or around the Mumbai region. These projects are selling out fast and are proving to be profitable investments.
The conversion of Thane into a metropolis is also backed by the fact that the residential properties are on a rise in Thane and people are readily looking for homes.
Opportunities in Pune
Pune could be dubbed as the land of missed opportunities due to its large amount of unsold properties. The voluminous growth in the infra in Pune triggered heavy construction activities that didn’t meet due absorption. Now these properties are being capitalized upon and a decent number was sold out in the last quarter of 2017.
Also, the projects that didn’t sell out considerably well have shrunk their prices, making Pune a great place to look out for, if you’re eyeing on some low-end investments in residential properties.
Circles mentioned in this article are great for property investment in Mumbai right now and with time, they are hoped to pick up as real estate hotspots. For more accurate investment information and personal guidance on them, contact Spacio Realtors.
The only way to have luck by your side while investing is to “smart invest”. It’s okay if you have an instinctive scheme of things while picking properties to go for but if you have a checklist of to differentiate good from the better, your job just becomes easier.
So, what does smart investment mean? It simply means applying a number of smart measures before finalizing the worth of a project from various builders and then placing your bid on it. These measures are standard for each kind of real estate investment you’re going to make.
Let’s count these smart measures.
The first thing to check while crossing off any option from your list is to see if it is registered under RERA. All the modern projects that started or were under completion after May 2017 need to be registered with RERA. If a project fails to do so, there’s a high risk in putting your money in such a project. Also, if a project already has been completed before May 2017, you can leave that RERA thing alone.
The concept of investment revolves around the profit you are going to make on your returns. The return is directly proportional to appreciation. Therefore, you need to make a wide analysis of various appreciation circles in the region of interest and shortlist properties that offer the highest appreciation. If you’re not going to use the property for your own needs, the appreciation factor is primary.
Reputation of the Builder
In the uncertain world of real estate business, if there’s something to hold on to, its reputation. Rather than playing your bet on a newbie who is yet to make its mark in the real world, it’s always wise to look out for a builder who has a track record of successful projects and who also has a good reputation when it comes to delivering projects.
Amenities are the tiebreakers for any kind of real estate establishment. For whosoever is going to buy an apartment from a certain builder, will consider how comfortable it is to live there. The lack of one good thing such as all-day electricity backup or reserved parking for each flat makes hell lot of difference. Therefore, projects with good practical amenities should be given a higher rank in the list.
Project Banking Partners
After you’ve selected your top five, it’s time to filter out the financially viable ones. One good metric for this is to check what all banking partners have signed up with the builder. The presence of PSU banks such as the State Bank is a great factor in this choice. The reason being that these banks have a stringent passing
The last thing to check with the builder of your choice is the cancellation policy. In case, you do pay the booking capital for a property and decide to cancel your investment for arbitrary reasons, what will happen with your money? Is there a provision for a refund? If yes then how early will that be credited back to you and with what all deductions? All these things can increase your confidence for a project at last, if all others factors have proved it a smart investment.
Follow Spacio Realtors for real estate and property guides tailor made for the smart investors and property seekers. This blog may have left out on some critical points that missed our eyes. Don’t worry you can discuss them with us personally. Contact us.
For investors, we have a good news! An investment where you have low risk but high returns.If it wasn’t this why do you think,investors from across the globe are investing in Mumbai Properties?For investors, we have a good news! An investment where you have low risk but high returns. If it wasn’t this why do you think, investors from across the globe are investing in Mumbai Properties? However, going forward with this, your requirements and budget constraints should fall in coordination with what the city has to present. Many people have gotten some major boons from Property investment in Mumbai.
There are two catches in this, either hit the residential front or the commercial one.
If your business idea has successfully matured to be shifted to a commercial space, we have just the option for you.
You can rent it and start your business there!
Now, coming to the next one of this story, investing in residential properties. In this article, I will be talking about the same.
Here we have shared the property rates on carpet area in the city of Mumbai!
For obvious reasons Mumbai has been the most preferred location for property growth, seeing the overwhelming infra-growth.
Amidst all this the hard part is that buyers find it hard to find their constraints on location, budget, and loaning coming together favorably.
Take a look at BKC– Mumbai’s hottest commercial and luxury residential location, where Spacio Realtors can avail you the best deal.
After the substantial decline of 18% in the nation, it was only Mumbai that came through with flying colors. There was a minor decline in the property prices, which attracted countless buyers to make purchases below the 25 lakh bracket. With the developments taking place in Navi Mumbai, to manage the growing population in the older one, prices will go several notches higher.
Even if we ignore the developments in the current city, places in Mumbai have much more to offer now than ever.
In the light of the current scenario, you are aware of how demonetization affected the prices. As the demand decreased, they stabilized. And, it is the lowest in the past 18 years. Such significant drop, yet again, attracted more people to try their hand in real estate investment. In the recent report by the Economic Times, real estate is growing out of the shadows of Demonetization and it is only about time that they grow again.
Recommended Read: Is Mumbai Real Estate still worthy of your investment
Feel free to knock our doors, if you are willing to see what investment options are available for you
The question is haunting a lot of investors right now who are aiming at the attractive opportunities in Mumbai but are unsure of the results. Well, Mumbai is for sure a great place to invest right now but there are ways in which the investments must be made in order to assure their success.
If we look at the market, there is a bright chance of ending up big in Mumbai right now. But how? The following reasons will explain.
Navi Mumbai, which was planned to help Mumbai tackle it’s growing corporate congestion has some practical benefits for commercial real estate seekers. We are talking about the Office spaces available in Navi Mumbai. There are a number of reasons why setting up an office or simply renting one can be a whole lot easier and cost effective in Navi Mumbai. For now, the growth pattern of this ambitious project suggests some good news for commercial properties.
If you see your office space in the light of property investment scenario, there is a lot that you can capitalize on. The upcoming trans-harbor link will render Navi Mumbai with a whole new real estate value, making it stand out as a selling prospect alongside business operation benefits. MD at Cushman and Wakefield quotes “Navi Mumbai has been seeing steady activity in the commercial office space, with the Information Technology and Business Process Management sectors driving that growth story. Tax incentives have attracted investments from developers too, further driving interest from MNCs and domestic occupiers.”
World’s biggest investor, Blackstone, after staying away from India’s property scenario has now finally showed some interest in it and has made promising investments weighing as much as $600 million. Future plans of Blackstone signify setting up of a local REIT listing, as this report by Times of India states.
Next comes Brookfield Asset Management, who have allegedly invested a hefty amount of $1 billion in Mumbai’s real estate. Both of these headlines point to the fact that Mumbai is receiving serious consideration from all over the world and the growth of property rates will be inevitable, telling us that NRI investment in real estate would be worthwhile in the coming few years.
The implementation of GST in most parts of the country has resulted in huge outcry due to its complicated system of operation but in Maharashtra, it is supposed to bring an air of freshness for investors. GST will enable easy and profitable sale of properties in Mumbai that fall under the status of “completed projects”. For the projects that are still under development will benefit from the tax relaxations on the raw materials levied by GST. This is good news for NRIs as well as domestic investors.
The financial capital of the country is one of the prime spots for investment right now. Especially, the developing areas that promise relatively easy acquisition than other parts of Mumbai. Furthermore, the establishment of technology parks and rising corporate sector has boosted real estate business for NRIs seeking to invest here.
Make sure that…
Most real estate gurus suggest that the property must be held for at least 3 years before letting out in order to gain the maximum profit out of it. This has some reasons behind it. First of all, selling the property after 3 years doesn’t levy income tax on the profit and you can keep the sum without caring about the legal procedures. This will also hold true if you belong to the lowest tax bracket which lies around less than 2.5 lakh per annum.
Two Thousand Seventeen has been a flurry of turnarounds for the property market of India. The implementation of new currency denomination and the implication of Goods and Services Tax had sent the economy for a ride but the same things are going to play important roles in constituting some major changes in 2018.
We noticed some ongoing trends in 2017 that are being sought to continue all year long into 2018 and these trends can be of great value if you are going to make a property decision anytime soon. So, make note of these things to get shot off a great new year for yourself!
Amidst the descent of property sales in all major cities in India that brought the substantial decline of 18 percent in the country, a hidden trend made its way to the front – affordable houses. There was a significant rise in the number of houses sold in the below 25 lakh bracket that allowed sales to improve in cities like Gurugram and Mumbai. This trend is backed by strong buyers that will look to purchase new houses in these cities and we can assume that new properties will come up that will offer affordable housing. In Mumbai however, prices sailed over the 1 Crore margin.
Hence, you can be on the lookout for such properties.
A general trend as seen throughout in 2016 in all major residential projects was the shrinkage in apartment size without greatly altering the overall configuration of the apartment.
Therefore, buyers were able to choose a home that was a bit less costly without giving up on 2BHK design but with 20 to 30 percent smaller covered space. This trend is expected to continue into 2k18 and we will see more projects that will have little apartments offered at a compromised price.
The trend will help keep the property prices stable for the developers, allowing more investments into their big commercial projects. This is some useful news for the general public as well.
In the cut-throat competition of real estate markets, it may sound obvious that new projects won’t offer so many amenities as we are used to getting in everyday life for the sake of lower prices. But the same is not true in reality.
Developers are focusing on providing as many facilities as possible in their new projects and the same trend is only expected to rise. New acquisitions will come with all the luxuries necessary for subsistence such as gas connection, round the clock water supply and many added things such as dedicated parking lots.
On a whole, it can be said that after the recent bashes of government policies and new development projects, the real estate scenario is expected to improve a lot in the coming year. It is also expected that India will see its first REIT setup in the second quarter of 2018 which will change things around for a lot of major cities. Right now, Mumbai, Pune, Bangalore are the primary hubs of redevelopment with some great promises for investors and buyers alike.
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