Buying a house? Some tips for you!

A real estate agent can ease the harrowing task of buying house. However, it comes at a price. You need to pay him a commission for his services. However, you must also verify the credentials of the agent. You should ask the agent to get copies of all title deeds from the seller. You must get a lawyer to verify these documents. You must get the agent to register the property with the correct valuation.

Be ready to make an offer:

Do an extensive search. Make a list of homes you have seen and the price list, what to like and do not like. Try to take photographs of the houses. It will be easier for you to recollect when you are short listing the options. Go on removing the names that you would not like to take a second look.
Don?t keep more than five options at a time. After visiting all the places, make sure you visit the 5 best places you liked again before taking the final decision. Be ready to offer a deposit for the house you liked the best.

Go for a home insurance:

Some banks offer insurance along with the home loan at discounted rates. The value of your home is assessed as per the area of your home multiplied by the rate of construction per. sq. feet, on the date of taking the policy. For example, if your home is 1,000 sq ft and the rate per sq ft is Rs 900, then the sum insured for your home?s building is Rs 900,000. Home Insurance covers natural and man-made calamities like fire, earthquake, lightning, floods, explosion of gas cylinder, spread of fire due to short-circuit, riot, strike, cyclone landslide burglary and terrorism.

Plan to buy a house? Head for Bangalore

It seems the Bangalore real estate bubble has burst.
The city, which saw some unrealistic rise in property prices in the past few years, has witnessed a sharp drop this year. A survey conducted by a real estate firm corroborates this.
Real estate company Asipac states that property prices in the city have dropped by at least 10 to 20 per cent in the past one year. In areas like Sarjapur, where the concentration of IT firms is heavy, prices have come down by 20 per cent, while in posh localities like Jayanagar and JP Nagar, there has been a 15 per cent fall. Such a drop seems strange, especially when prices in Mumbai, New Delhi and indeed many other Tier1 and Tier-2 cities are wintessing a phenomenal increase.
So what has led to a dent in property prices in the IT capital of India?
Experts hold that property in Bangalore always had a 'fake' -- or inflated -- price. It soared because of the hype around the IT boom in the city. Prestige Group chairman and managing director Irfan Razack feels that property prices in Bangalore were at an unrealistic high so far. That led to a demand-supply mismatch as a result of which at least 5,000 apartments lie vacant today. Dealers, who used to sell at least 60 flats in a quarter, can now sell just six.
One can compare the Bangalore scenario to that of Mangalore as it was a couple of years back when the Mangalore Refineries and Petrochemicals was set up. Big money was being paid to the the refinery employees then and taking cue from this, realtors hiked property prices. As a result, a house which would be available for Rs 500 on rent at the time was available for no less than Rs 1,500. However that situation did not last for long and prices came crashing down in a few years.
The case of Bangalore is no different. The advent of IT industry to the city led to a huge rise in realty prices. Sky high prices started getting quoted just because IT personnel could afford it. Result: non-IT people too had to cough up these higher rates. Inflated prices in turn generated a false realty market in the city, wherein people not even remotely connected with the construction industry started building apartments.
Thus, a city, which had just 40 apartment buildings till 15 years ago, has over a 1,000 today. And a majority of them are lying vacant.

East Bangalore: Drop from Rs 3,100/sq foot to Rs 2,100/sq foot
South Bangalore:Drop from Rs 6,400/sq foot to Rs 4,000/sq foot
North Bangalore:Prices unchanged
South East Bangalore:Drop from Rs 5,300/sq foot to Rs 3500/sq foot
Builders in Bangalore find it difficult to dispose of the apartments these days and hence are incurring huge losses. They are, therefore, reducing the prices to draw customers.
Take the case of Sarjapur. Prior to the IT invasion, this area was hardly visible on the Bangalore map. Today, there are nearly 40 different apartment blocks, but very few takers.
The prices that used to be quoted earlier for houses in this area were very similar to those quoted for apartments in the heart of the city. An investor, however, thought twice before investing in a property in this area because of its remoteness. (Although Sarjapur and White Field have very good apartments, commuting from these places isn't too convenient). Hence apartments worth Rs 50 lakh (Rs 5 million) and above in the area mostly lie unoccupied at present.
High property prices in the best planned areas of the city -- like Jayanagar and J P Nagar -- forced prospective buyers to opt for less expensive areas, like R T Nagar, Sultanpalya and Kamanhalli. It is said that the demand for land or a house in Jayanagar and J P Nagar went down by at least 40 per cent. Realtors in the area, were in turn compelled to reduce prices.
According to the builders of Bangalore, realtors are to blame for the price debacle. After a building is constructed, the builder sells it to the realtor, who in turn disposes of the property at a price of his choice. The realtors, who have their own network (a very strong one), are the ones who decide the price.
To sum up, there cannot be a better time to invest in Bangalore.

take a hoam loan,must insure it

With Finance Minister P Chidambaram announcing recently that rates are going to stabilise in the near term there is lot of expectation that housing loan rates will fall further.
A few months back, banks and housing finance companies, cut rates on loans under Rs 20 lakh (Rs 2 million).
Some experts also feel that real estate prices in most cities would come down as supply far exceeds demand.
So, is it the right time to go hunting for that dream house? With loan rates likely to come down or at least stabilise, should you go for a second house? In an hour-long chat on rediff.com on Friday, personal finance expert Harsh Vardhan Roongta answered to many such readers' queries. Roongta is the CEO of apnaloan.com , a site that help people get the most competitive loans. After a successful entreprenuerial stint and an equally impressive career at ICICI later, he co-founded apnaloan.com in 2000. A chartered accountant by qualification, Harsh Roongta has over 23 years of experience in financial services and consultancy.

FM wants low rate for hoam loans

Making a strong case for a cut in interest rates on home loans of up to Rs 20 lakh (Rs 2 million), Finance Minister P Chidambaram on Thursday said he would continue to talk to bankers as these accounts, which form a lion's share of total borrowing for housing, carry less risk weightage.
The finance minister, however, in the same breath added that the ball is in the court of banks and the Reserve Bank of India.
"I made a number of efforts to impress upon bankers in this regard. It is a constant effort that I will have to make. Bankers will have to take a call, the RBI will have to take a call," Chidambaram said in his post-budget interaction with industry chamber Assocham in New Delhi.
Following the Reserve Bank's tight monetary policy initiatives, interest rates on housing loans have shot up to the range 10-12 per cent, bringing the demand sharply down.
If the rate of inflation is high, RBI tightens monetary policy, leading to higher interest rates. But at its last Monetary Policy review in January, RBI kept all key rates intact.
But even then many banks, including market leader SBI (State Bank of India), cut interest rates after RBI said their net interest margin is still high.
The finance minister said he agreed that housing loan borrowers of less than Rs 20 lakh should be incentivised by lowering interest rates.
As much as 80 per cent of all housing loans fall in the category of below Rs 20 lakh, he said, adding that these loans have less risk weight than those above Rs 20 lakh. Therefore, bankers have incentives to lend to these borrowers at lower interest rates.
"I shall certainly bear in mind that there is public demand that interest rates for borrowers, who borrow (housing loans) up to Rs 20 lakh, must be lowered," Chidambaram said.
At the same time he also defended the RBI stance. The RBI governor's position to strike a balance between low inflation and high growth is unenviable, he said.
"He (RBI governor) can never please everyone. It is his judgement call what should be the interest rates in order to contain inflation and promote growth," the finance minister said.
Chidambaram said he recognised that from the government's point of view it is important to promote growth without stoking inflation.

home retail loan rates to rise

Interest rates on home and retail loans are expected to rise, as a fallout of Reserve Bank announcing a 0.5 % hike in Cash Reserve Ratio (CRR) to squeeze money supply to rid the economy of inflation.
The interest rates on home loans could increase by 0.25-0.50 per cent in the short-term, a senior banker said on Thursday. If the Reserve Bank hikes the cash reserve ratio (CRR) to rein in inflation, home loan rates could go up, Anil Dighe, Axis Bank's vice-president and head, zonal retail assets (West) told PTI.
The CRR, the amount of funds banks are required to park with the apex bank, has been raised to 8 per cent to suck out Rs 18,500-crore liquidity from the system.
Since banks would be left with less cash to lend and have to source funds at a higher cost, including by raising deposit rates, they may increase lending rates that will in turn temper demand and cool inflation that is at a three-year high of 7.14 per cent.
The CRR would be hiked by 0.25 per cent from April 26 and by an identical percentage from May 10.
Year-on-year inflation, which was 3.83 per cent during the last credit policy in January, had gone up to 7.41 per cent on March 29 before marginally falling to 7.14 per cent on April 5. In the light of the current macroeconomic monetary and anticipated liquidity conditions and with a view to containing inflationary expectations, it is essential to take appropriate action on an urgent basis, an RBI release said.
Bankers said the move was expected but would wait and watch the credit policy to be unveiled on April 29 before taking a call on interest rates. However, some of them felt they were left with very little option but to hike their rates with the cost of funds going up following the CRR increase.
The CRR hike comes within a day of Finance Minister P Chidambaram assuring the Lok Sabha that RBI will assess the monetary situation and take appropriate action. On Wednesday, China's central bank had hiked its CRR by 0.5 per cent to a record 16 per cent to cool the economy.

dealing with real estate contacts

The real estate agents have a valuable source of potential deals for the real estate investor - the Multiple Listing Service. Unfortunately, real estate agents have a monopoly on this information, so they may be a necessary part of an investor’s game plan.

Dealing with real estate agents can be difficult as an investor. Agents prefer home buyers with cash to put down, good credit and conventional buying power. Their interest is getting a commission with as little hassle as possible. Most agents have never done a creative real estate transaction with an investor, so they are not often receptive to unusual offers. Most agents equate a “nothing down” offer with a buyer who is not serious.

Offer a Reasonable Earnest Money:. You cannot present an offer with a 2000 rs earnest money and expect an agent to take you seriously. You can expect to pay at least 20000 rs as earnest money to get their attention. If you are presenting a solid cash offer, you should put up more money. If you are concerned with losing your earnest money, consider using a promissory note.

Offer a Short Closing Date:. Another way to get an agent to take you seriously is to offer a fast closing. Nothing makes an agent salivate more than the thought of a commission check in ten days. If the agent has another offer presented to him, he will usually advise his client to take the offer with a larger earnest money and faster close than an offer which is higher in price.

Insist on Presenting Creative Offers in Person:. If you present a creative offer to an agent, it will not be represented to the owner in the same enthusiastic fashion. As stated above, agents do not like creative offers - they like conventional offers from solid buyers. If you want the owner to hear all of the great benefits of your offer, insist on presenting the offer in person.

Appeal to the Agent’s Greed Factor:. Let’s face it . . . real estate agents are in the game to make money, just like anyone else in any other business. If you can offer the agent an incentive to make money out of the transaction, you will get his cooperation. If you present an offer which does not permit enough cash to come out of the deal to pay the agent, why would he cooperate with you? If you present a lease/option offer on a listed property, how will the agent receive a commission? You need to find a way for the agent to get paid, even if you pay him out of your own pocket.

Do Your Own Comps:. Sometimes you will get the opposite of an uncooperative agent - an overzealous agent. Be suspicious of an agent who tells you what a deal you are getting on a property. If it is such a good deal, why didn’t he buy it? Don’t take his word as to the value. Ask for a printout of comparable sales (not listed properties). Be aware that information contained in the MLS computer was entered by the listing broker and may be exaggerated. If a comparable sale shows the same square footage as the house you are looking at, take a drive by and see if it is accurate. Do your own assessment of value.

Fax Preliminary Offers First:. Don’t waste your time filling out a contract offer until you have preliminary approval. Most agents are not this formal and will take any offer in writing to the seller. Simply summarize your offer in writing and fax it to the listing agent. Once you have an oral approval, then take the time to fill out a contract and an earnest money check. NEVER put up earnest money until the offer is accepted!

Don't be Bullied by Uncooperative Agents:. If you cannot finesse an agent, don’t be afraid to stand up to him. Some agents are unethical and will refuse to present your offer. Many times the agent will lie and tell you that your offer was rejected when, in fact, it was never presented. If this is the case, do not be afraid to go over his head to the listing broker. If the listing broker is uncooperative, deal directly with the seller (unless, of course, you are also an agent).

commercial real estate

As businesses grow and new opportunities arise, the commercial real estate market continues to grow. More and more companies are looking to secure commercial real estate and that competition means that you need to employ the very best real estate agents and ensure that you only look at the commercial properties which can fully accommodate your corporate and business needs.
The number of available commercial properties continues to grow, as does the style, size and amenities that the different pieces of commercial real estate provide. Our extensive website offers you direct, smooth and reliable links to some of the best commercial real estate currently on the market. Whatever your needs, however big your premises need to be and wherever they are located, our commercial properties can satisfy your property buying needs.
Buying commercial real estate is always a challenging task. The right search coupled with the very best real estate agent to assist, advice and guide you, however, can make the experience far more smooth than most people imagine. From browsing to buying, your commercial real estate needs are important. All of our commercial properties and every one of the real estate agents that represent them see you as their number one priority. This is the place to look, the place to find and the place to secure the very best commercial real estate, tailor made to meet your business needs.

HDFC arm plans $750-m real estate fund

MUMBAI: The venture fund arm of housing finance major HDFC, targeted exclusively at the real estate sector, is all set to launch the largest international real estate fund, meant for investors outside India.

The fund size would be $750 million and would predominantly invest in the hospitality sector.

HDFC Real Estate Venture Fund, the private equity arm of HDFC, has already filed the relevant documents with the market regulator Securities and Exchange Board of India (Sebi), market sources said. Permission for launching the fund is awaited.

The fund, second from the company, follows the success of its first one that was meant for domestic investors and got commitments aggregating $500 million.

This fund was closed in August last year. While the money was being raised, a number of foreign investors had evinced interest to invest into country’s realty sector through HDFC.

The first fund has already invested about 50% of its corpus in various projects. Sources said that HDFC Real Estate’s second fund could start investing only after the first one is fully invested. This is to ensure that there is no clash of interest between the two funds, sources said.

Interestingly, this would join the list of several international real estate venture funds in India waiting regulatory approval from RBI.

So far, the banking regulator has obliged none, a number of these registered in countries like Mauritius and Cyprus.

Market players believe the RBI is currently weighing the pros and cons of allowing foreign money through this route. There are apprehensions that allowing foreign realty funds could create a bubble in the sector.

In case the central bank allows all the international real estate venture funds, the estimated money-flow through these funds alone could be $4 billion (Rs 18,000 crore).

The Real Benefits of Internet

As per most seasoned real estate marketers and advertisers, gone are the days of print media ad campaigns. For property buyers, printed media presents a flat, uni-dimensional experience - one ad with abbreviated terms and maybe one property picture. For sellers, the newspaper is a one-shot deal. You pay once and get a one-time exposure.

Internet provides a far richer experience for home buyers. They receive virtually unlimited property information, many photos, and maybe even a virtual tour — which is like an open house right from their desktop. Internet provides a blank canvas on which to market the property for the life of the listing at a very affordable price. Internet listings are viewed globally. It is all about exposure, depth of information, and value.

But you need proper media planning - 2letservice.com? 99acres.com? indiaproperty.com? magicbricks.com? Choose Web addresses? Then, pick a plan that fits your budget. Not all property portals provide the same results. Do your research to find the best fit for your type of property. In addition, social media marketing platforms like IndiaCityPages.com and Real Estate Times are boons to sellers who know how to leverage them.

roads ahead for real estate

With the economy surging ahead, the demand for all segments of the real estate sector is likely to continue to grow. The Indian real estate industry is likely to grow from US$ 12 billion in 2005 to US$ 90 billion in by 2015.
Given the boom in residential housing, IT, ITeS, organised retail and hospitality industries, this industry is likely to see increased investment activity. Foreign direct investment alone might see a close to six-fold jump to US$ 30 billion over the next 10 years.

Government Initiatives in real estate

The Government has introduced many progressive reform measures to unlock the potential of the sector and also meet increasing demand levels.

• 100 per cent FDI allowed in realty projects through the automatic route.
• In case of integrated townships, the minimum area to be developed has been brought down to 25 acres from 100 acres.
• Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) repealed by increasingly larger number of states.
• Enactment of Special Economic Zones Act.
• Minimum capital investment for wholly-owned subsidiaries and joint ventures stands at US$ 10 million and US$ 5 million, respectively.
• Full repatriation of original investment after three years.
• 51 per cent FDI allowed in single brand retail outlets and 100 per cent in cash and carry through the automatic route.

indian realtors goes global

Simultaneously, many Indian realtors are making a name for themselves in the international market through significant investments in foreign markets.

• Prudential Real Estate Investors has acquired Round Hill Capital Partners Kabushiki Kaisha, a Japanese asset management firm.
• Embassy Group has inked a deal with the Serbian government to construct a US$ 600 million IT park in Serbia.
• Parsvnath Developers has tied up with the Al-Hasan Group in Oman.
• Puravankara Group is doing a project in Sri Lanka - a high-end residential complex, comprising 100 villas.
• The Hiranandanis are constructing 5000 5-star hotel rooms, which will come up between Abu Dhabi and Dubai.
• Ansals API tied up with Malaysia's UEM Group to form a joint venture company, Ansal API-UEM Contracts Pvt Ltd, which plans to bid for government projects in Malaysia.
• Kolkata's South City Projects is working on two projects in Dubai.

Realty Funds

The boom in the real estate industry has attracted a large number of realty funds to tap into this market. According to Cushman & Wakefield, foreign investors have raised nearly US$ 30 billion since March 2005 for investing in Indian real estate.
Prominent global players like Carlyle, Blackstone, Morgan Stanley, Trikona, Warbus Pincus, HSBC Financial Services, Americorp Ventures, Barclays and Citigroup among others have all already checked into the Indian realty market.
In fact, real estate has been instrumental in India emerging as the top destination in Asia (excluding Japan) in attracting private equity investments during the first ten months of this year. Real estate accounted for 26 per cent of total value of private equity investments, with 32 deals valued at US$ 2.6 billion. And according to industry estimates, another US$ 10-20 billion would pour into the sector in the next three years.

global majors in real estate

With the significant investment opportunities emerging in this industry, a large number of international real estate players have entered the country. Currently, foreign direct investment (FDI) inflows into the sector are estimated to be between US$ 5 billion and US$ 5.50 billion.

• Jones Lang LaSalle (JLL), the world's leading integrated global real estate services and money management firm, plans to invest around US$ 1 billion in the country's burgeoning property market.
• Dubai-based DAMAC Properties would invest up to US$ 4.5 billion to develop properties in India.
• Merrill Lynch & Co bought 49 per cent equity in seven mid-income housing projects of India's largest real estate developer DLF in Chennai, Bangalore, Kochi and Indore for US$ 375.98 million.
• UAE-based real estate company Rakeen and Chennai-based mineral firm Trimex Group have formed joint venture company - Rakindo Developers - which would invest over US$ 5 billion over the next five years.
• Dubai-based Nakheel and Hines of the US have tied up with DLF to develop properties in India. DLF has also formed a joint venture with Limitless Holding, a part of Dubai World, to develop a US$ 15.23 billion township project in Karnataka.
• Gulf Finance House (GFH) has decided to invest over US$ 2 billion in a greenfield site close to Navi Mumbai.

Global real estate majors such as Dubai World, Trump Organisation of US, Smart City of Dubai, Kishimoto Gordon Dalaya, Khuyool Investments, Bonyan Holding, Plus Properties, ABG Group and Al Fara's Properties among others have all firmed up their plans for the Indian real estate market with an investment of around US$ 20-25 billion in the next 12-18 months.

real estate in india

The Indian real estate sector has witnessed a revolution, driven by the booming economy, favourable demographics and liberalised foreign direct investment (FDI) regime. Growing at a scorching 30 per cent, it has emerged as one of the most appealing investment areas for domestic as well as foreign investors.
The second largest employing sector in India (including construction and facilities management), real estate is linked to about 250 ancillary industries like cement, brick and steel through backward and forward linkages. Consequently, a unit increase in expenditure in this sector has a multiplier effect and the capacity to generate income as high as five times.

All-round Development:
Rising income levels of a growing middle class along with increase in nuclear families, low interest rates, modern attitudes to home ownership (the average age of a new homeowner in 2006 was 32 years compared with 45 years a decade ago) and a change of attitude amongst the young working population from that of 'save and buy' to 'buy and repay' have all combined to boost housing demand.
According to 'Housing Skyline of India 2007-08', a study by research firm, Indicus Analytics, there will be demand for over 24.3 million new dwellings for self-living in urban India alone by 2015. Consequently, this segment is likely to throw huge investment opportunities. In fact, an estimated US$ 25 billion investment will be required over the next five years in urban housing, says a report by Merrill Lynch.
Simultaneously, the rapid growth of the Indian economy has had a cascading effect on demand for commercial property to help meet the needs of business, such as modern offices, warehouses, hotels and retail shopping centres.
Growth in commercial office space requirement is led by the burgeoning outsourcing and information technology (IT) industry and organised retail. For example, IT and ITES alone is estimated to require 150 million sqft across urban India by 2010. Similarly, the organised retail industry is likely to require an additional 220 million sqft by 2010.