A checklist to consider before investing in a property in Bangalore

One of the core reasons why many of the Indians think about leaving the country and work in an international location is to earn money and invest in properties. This part of the Indian population, also referred to as the Non-resident Indians (NRIs), choose to invest in properties and plan to either come back and stay in the same house or sell it over to invest in a bigger property. Right from selection to finalising the deal, the process can be difficult since they are not present here in person. Following is a list of points that should be taken into consideration while the selection of the property is being done.

One of the very first things that you, as an investor, should take into consideration is to conduct a thorough check about your real estate builder, understand and evaluate whether he and the organisation is a correct choice to go ahead with. As an international investor, it might be difficult for you to come and check the other projects, feedback received from the previous customers and track record he holds as a developer. It is always preferable to invest in a property that has been verified by the concerned government authorities. Ask the builder whether they have the approval from the concerned authorities for the investments to be made for the project. There might be situations where the project might be stalled for not having enough finances.

Second point on your checklist should be about the kind of property you want to invest in. Since, the investors or the potential buyers are settled abroad, the real estate property agents mostly show the luxurious apartments. Real estate developers have now started taking special note of building plush apartments that are more suited for the NRIs. These are spacious apartments with all kinds of modern amenities available and with other special facilities such as roof top garden, availability of parking for multiple cars, etc. However, it is always better to check the neighbourhood, locality and the valuation of the house if you consider to sell it later.

The third point on the list is making a considerable check on the locality of the property. If you are new in the city or dealing through agents, it is better to consult your family or friends regarding the deal. This will help you in understanding whether the locality where you like the property to be bought is good, is in close proximity with the school, workplace, hospitals, airport, etc., the social infrastructure is good and has good spots for recreation such as outdoor sports areas, social hangout places, etc. Many of the plots or the properties are marketed by the builders that are yet to develop properly and are considerably far from the main city. While the prices of the properties will be comparatively less, it will take time to develop.


A Guide to Investing in Real Estate

Are you one of those denizens who have oft wondered whether or not they should invest in the real estate? This article will then appeal to you immensely! All those young professionals considering investing in the real estate and wondering what time is the right time; the moment is here and now.

The most opportune time for investing, and especially in real estate can begin as early as one joining their first job. Although it sounds tough, it is not an out- of- the- box idea! For, although resources are limited you also have to take into consideration that the share of responsibilities are also on the sly. At the on-set of one’s career, there are limited liabilities, risks, financial obligations, responsibilities etc. -all these make it one of the best of the time in your life span to begin on investing in your chosen real estate plans. Consider this, you are still young to think of paying off child loans, school fees, medical bills etc  and etc.

It will also make it possible to get access to your dream house all the more faster. For, you get to pay the loan amount for longer tenure. Also, any hardships that may arise, youth is a great time to tackle such challenges head on; with age and maturity, our perception of problems seem to magnify!

Also, you will not have the opportunity to get too spend thrifty even if you want to, as a large sum of your money will be spent in the form of investment- on your future home! What more can be better than this?

Why should owing your own property beat out options such as renting or leased property? Because it is always a better form of investment- owing your own home! Also, you can see your income turn into tangible assets in which you can live and breathe. Rent/ lease is also not a good long term option and may lead to disproportion of your funds; on the other hands- owing your home is certainly a keepsake when it comes to planning for the future and making it all the more secure.

What you need to do for starters?

Begin with setting your ownership goals- for your own property. It is one of the most important steps in the process leading to owning a home- the first and foremost step of making up your mind.Once you have taken your maiden step as a property buyer, you can very well now proceed to contacting an agent licensed to help you in your property scouting. Next, starting property hunting and simultaneously, checking out various options for payments. One of the better ways would involve testing the market- do a research as well as feasibility study to compare market trends and the property types that you are checking out. Once they converge, you are good to go. It will also help you zero in on the best loan and EMI rates so that you do not have to undergo any difficulty in paying the amount in the long run. Voila, you are now the owner of your own real estate!

The dos and don’ts for raising funds from investors

What is the single most dominant fear every entrepreneur of start-ups dread? Not the day-to-day management of operations, but the funding and investors related hassle. Funding is one of the most integral aspect to the sustenance and advancement of a nation. It is also where the biggest crunch lies, faced by every single organization in their initial days. If you are a real estate entrepreneur looking for funding, read on for insight.

Whether be it tapping into the potential of traditional funding sources or securing investment through crowd funding rounds online, start-up founders are generally left in the lurch. It is one of the biggest challenges for any company.

Given most investors are inundated with various investment options that they can choose from, they scrutinize options rather vehemently, necessitating the need for entrepreneurs to highlight their capital raises poignantly, to ultimately convert prospective investors into actual shareholders.

How best to do that? Well, charting out a growth capital raise in a commercial real-estate financing model. No one can deny that raising funds for commercial real estate (CRE) is vastly different from early stage fundraising as it requires debt and/ or equity capital for projects upfront even prior to the commencement. Therefore, large sums of money is required simultaneously for CRE from multiple investors.

Here a few take aways from CRE that could help the hapless plight of entrepreneurs seeking funding:-

Maintaining Transparency- transparency is one of the vital aspect to dealings with investors in CRE, failing compliance of which could very well lead CRE sponsors to land in lengthy, convoluted legal tussles. It is therefore wise to stock the real estate offering documents with intel on feasibility and risk involved in the deal. Divulging honest details will help investors access how the investment would fit into their profile.

Focus on ROI- In case of most investors, the lure of CRE lies in the consistent cash flow which is a reason why the offering material should showcase projected income, estimated timelines and ROI. It will only help give the investor a clear idea of what to expect and what not to. Define the exit strategy to help investors comprehend the process through which they will earn money.

Defined plans- it is always wise to lay out a definite roadmap for the future course of your project. And in most cases, it is also the well-defined project plans that manage to woo the investors. It is therefore, wise to chart out project timelines as well as the long-term plans for the property.

Share intels- sharing of local knowledge is an important aspect to real estate, therefore make sure that share intels about the neighborhood with prospective investors. The inside dough such as market trends and competition etc, should help one snitch the deal.

Focus on end result- it is well known that investors trust those with reputation which is reflected by the track records. It is thus, a wise move to highlight team expertise, projects completion and more than average returns among others.

Realty bill set to usher benefits for buyers!

The real estate scene is on the boom in the country and to provide it further direction the need of the hour is a well constituted and all- encompassing bill. However, as is the case with most unorganized sectors, the real estate sector- behind all its glamour, is in dire need of stricter guidelines to improve and increase the communication and symbiotic relationship between buyers and builders. The bill is set to just do that! The Real Estate (Regulation and Development) Bill is expected to be cleared in the winter session of the parliament. It is expected that once the bill is passed, it will help instill a much stronger buyer’s market.

The bill is already in talks to be more vigilant and strict about fly by night operators,bringing more relief to buyers. There will also be provisions for meting out penalty to defaulters who hold back on their promise of delivering a builder project timely. Not only that, repeat offenders also stand to be put behind the bars for a term of three years on non-compliance as per the proposal in the draft version of the bill.

Thus, these safeguarding measures are going to enable to cast the sector in grow in a definite direction and avoid loopholes that might create a bad air and cast the overall sector in bad light.

Also included in the bill would be additional safe guarding measures to be able to regulate various kinds of transactions between buyers and builders, commencing from registrations of projects to possession!

The other features of the bill include preventing realtors from diverting more than 50 percent of the money invested by a buyer, to other projects. To implement stricter ground rules, the various state governments could enforce measure to increase the threshold figure to more than fifty percent, but lower it, which will ultimately help put liquidity starved builders on the back burner.

Individually, each state would be required to set up a Regulatory Authority and as quasi-judicial Appellate Tribunal as the two tier-dispute resolution mechanism.

No doubt then that it will only benefit a sector that is on the roll and is expected to excel its past results and projections in the days to come. Housing projects that are over 500 sqmt would be required to register with a proposed real estate regulator.

The bill hopes to ensure consumer protection and thus, increase upon the credibility of the sector that is touted to achieve bigger things in the future and chart out a clearer and more defined roadmap.

The bill once passed, will be covering both residential as well as commercial properties. With so much focus being shined on the sector, it is easy to gauge its importance. And can only mean, that the sector is set to be on a winning roll in the near future. Therefore, if you are planning on investment on property, go ahead and do it! It is just about the time as favors will be in your way.

Strategies to Find the Perfect Property Deal

As an investor in the real estate industry, one thing that you must be fully aware of is the changing prices and also of the mortgage rates. The rates are, on most of the occasions, on the rising side and increase depending on the varying prices of the materials, labour cost, etc.

As a potential buyer for an apartment, for instance, a three or two bedroom one with all other basic facilities, try to make a comparative study between the current prices and the prices in the past few quarters or years. If your idea is to find and invest in a property which will be given out on rent, the pricing strategy will be different. The rent for the apartment will include pricing items such as basic rental, maintenance costs, taxes and other factors like insurance and mortgages, if any.

To find the perfect deal for a real estate investment, ideally, you should go and venture out in the market actively along with an agent or an experienced person to help you find the best of the properties. Many times, it has been noticed, that some of the affordable houses are kept reserved for buyers who are known to the property owners or similar other contacts. You may also find such properties through the contacts that you maintain already.

Since the pricing of the real estate properties vary owing to its location, space, etc. you will need to chart out your investments accordingly. It is always better to decide on an affordable price range and the search should be focussed on finding properties within the estimated budget. Similar to the planning of the finances, plan out areas or locations where you want to buy properties. It will help you in further refining your search for the perfect real estate property for investment.

To avoid making mistakes, meet up with at least three to four real estate agents, preferably someone you know from your contacts or may have interacted with earlier. Look for experienced agents with a good contact base of real estate property owners and discuss your requirements clearly. Only after you are convinced, hire your agent and search for the best deals.

If you find a property fulfilling your requirements and also within your price range, engage your lawyer and agent in a quick discussion to sort out the other details. Stay clear in terms of the legalities, taxes to be paid and other similar issues. This will help you enjoy your investment rather than face problems later.