For Property Byers: Prefer Paying EMI's Than Rentals

The National Capital Region or NCR, is India’s largest urban agglomeration and the 2nd largest in the world, had been one of the fastest growing realty hot spots in the country since a decade. It supports an ever increasing population and is responsible for development of many regions in the nearby states of Haryana, Rajasthan and Uttar Pradesh. Two essential factors that determine the lucrative prospects for any property in Real Estate sector are Infrastructure and connectivity and NCR has been a tough market to interpret with a number of different regions projecting various trends from time to time. A recent in depth survey conducted by IndiaProperty.com throws light on the many aspects of the real estate market in the National Capital Region. According to the survey almost 82% of respondents purchased property in the region for end use. The other 18% have purchased as an investment option. In year 2015, increase in number of new home buyers in NCR was noticed. One of the major drivers of the recent shift from paying rentals to paying EMIs is Affordable homes in many parts of NCR. Same trend will continue with the new government and its policy of promoting the growth of affordable housing sector in the country. However the number of first time home buyers may go a bit down in 2016 and the purchase solely inclined towards investment will rise, indicates the survey. Another interesting observation was that almost 55% of the respondents have purchased their second home in NCR. This is an indicator of the fast paced development of the region. It also indicates that home buyers have been extremely receptive to property purchase, although 2015 saw a slow patch for the real estate industry. This number is expected to go up by 5% in 2016. Almost all the major metro cities like Mumbai, Hyderabad and Bengaluru have witnessed a similar trajectory. Though apartments were a top choice for Delhi NCR people to invest in, 2015 brought an increase in demand for individual homes by 8%. Mostly, the Residents of Delhi NCR invest in property based on the infrastructure development in the region followed by the future prospects. Both 2014 and 2015, seen a lot of infrastructure development in top markets like Noida, Gurgaon, Ghaziabad and Greater Noida. The track record of the builders and their reputation is of vital importance to home buyers when it comes to property purchase. NCR is the worst hit when it comes to delays in projects and this has resonated in the choice of home buyers, indicates the survey. Similarly property frauds are one of the biggest concerns amongst home buyers in Delhi NCR. Buying decision has been strayed in all the metros of the country and Delhi is no exception. More than 40% of home buyers in Delhi NCR have taken more than 1 year to come to a decision considering many of their concerns. One of the reforms that encouraged the home buying decision in the region is the tax exemption on home loans. Mid segment and affordable housing has greatly benefited by this reform. As we start the year 2016, the buyers have only shown confidence in the policy and reforms charted out by the NDA government and this is said to benefit the real estate market across the National Capital Region.

Real Estate Bill – A Boost for Investors & Buyers

Ever wondered why stocks, mutual funds and insurance investments are all regulated to death, but not property purchases? Well, that’s what the Real Estate (Regulation and Development) Bill, seeks to do. Last week, the central government with the help of opposition support able to pass Real Estate bill in Rajya Sabha.

So what actually Real Estate Bill is?

The Bill seeks to set up a regulatory framework that will govern contracts between real estate buyers and sellers. So far, home buyers were forced to take what they got from builders — one-sided contract terms, delays running into years, cost escalations, arbitrary changes to the plan — you name it.

The Real Estate Bill, which aims at protecting home buyers' interest, moved closer to becoming law after it was cleared in the Rajya Sabha on 10th March’16. The bill, designed to bring transparency and accountability to the realty sector, is expected to revive investor and buyer ­­confidence.

: Highlights of the Bill :

1) All residential and commercial projects that include eight flats or cover an area of 500 square meters or more, will now have to be registered with the Real Estate Regulator. This pretty much covers most real estate being built in the cities of India. No project will be allowed to be sold to the buyer, unless it has all necessary permissions from local authorities to start construction.

2) Buyer-seller or builder-buyer agreements are extremely lopsided, offering almost no rights or protection to the home buyer today. Once the bill becomes an Act, one-sided agreements will become a thing of the past. Any delay in payment by the builder will attract the same penalty as what the buyer needs to cough up, if his payment is delayed. Builders who are notorious for changing project plans, midway, including the number of floors in a building or the layout of a flat, will now be barred from doing so, without the approval of 2/3rd of the buyers.

3) Realty projects often get delayed because developers divert funds meant for one project to another. But once the bill becomes law, real estate developers will have to deposit at least 70 per cent of money collected from buyers in an escrow account to meet construction costs. This will ensure that developers who run out of cash don't stall projects.          

4) Developers cannot sell property on the basis of super area (flat area plus common area). They will have to clearly define the carpet area which includes spaces like kitchen and toilets. So a buyer will know exactly what is he getting as living area and the price he's paying for it.

5) What's more, developers are also banned from making claims in advertisements or publishing pictures of site/project which are untrue. Misleading advertising has been made punishable. For flouting any of rules laid out in the Regulator Act, the developer can be fined 10 per cent of the total project cost. And for repeated offense, the builder can also be jailed.

6) 70% of the amount collected from buyers for a project must be maintained in a separate bank account and must only be used for construction of that project.  The state government can alter this amount to less than 70%.

Gurgaon Rental Property : A Boost for Small Investors

Finding a one room set on rent in Gurgaon is not an easy task because of ever increasing demand. Well equipped with robust infrastructure, active connectivity to Delhi and other nearby places, Gurgaon has this special advantage over other places. Gurgaon has always been a booming realty market, particularly in recent times and this has also impacted rentals immensely. There are several factors that you need to keep in mind while looking for a one room set on rent in Gurgaon. According to several studies and reports that primarily based their findings on yields, availability of rentals and other parameters, a majority of rentals were found in both south eastern and southern parts of Gurgaon.

Availability is thus deemed to be immensely high in the south and south east, something you should bear in mind while seeking out a one room set on rent in Gurgaon. Additionally, this has mainly been attributed to the skyrocketing values of properties in central parts of Gurgaon on account of infrastructural growth and a steady maturation of the market. However, the south and south east will take some time to reach the stage at which central Gurgaon finds itself currently and hence the higher availability of rentals in these two zones. Rental values and popularity indexes are usually calculated on the basis of strategic locations, proximity to several parts of Delhi and infrastructural facilities. On the basis of these parameters, Sohna and Sohna Road have topped the list of most desirable rental localities in Gurgaon.

Finding a 1 BHK for rent in Gurgaon can be tough if you are focusing on Sohna Road alone as this locality gets the maximum demand each year on account of all the advantages and connectivity benefits it offers to residents. Capital values have steadily increased in areas like Sectors 37 and 38 and this has shifted the attention of customers to sectors 92 and 81 among other similar areas.

The New Gurgaon region is also a hot spot for rentals as far as the young, professional population is concerned. Proximity to the National Highway 8 is a key bone of contention when it comes to choosing properties in Gurgaon as well. This parameter alone has influenced a whole lot of choices over the last few months. All these factors has impressed investors over the years to invest in real estate properties in Gurgaon.

Rental yields have also been the highest in the Sohna and Sohna Road localities which are quite natural as mentioned earlier. This has led to an increase in investors seeking rental incomes in the locality and supply is never an issue here at present. Additionally, some pockets of Gurgaon are steadily falling prey to the perils of over population and congestion, thereby leading to a spill-over effect into Sohna which is one of the fastest growing localities of recent times. Rental yields are also quite high in places like Sectors 69 and 57 which are both well linked to several IT Parks and social infrastructural projects.

Sectors 48 and 57 are also witnessing huge demand on account of metro railway connectivity and rental yields are decent here as well.

Due to the nearly perfect blend of these parameters, the owners are getting high and satisfactory returns. The owners should be careful while renting their property to great extent. I would like to share few important points that every owner should keep in their mind while renting their property.

Decide on the rent: Do a thorough check of the area’s current rental rates and price your rent competitively. You can charge a premium if you have a well maintained and fully furnished property.

Insure the property: Ensure you have the maximum insurance cover for your property as the tenants are in control of your property.

Draft the rental agreement: The rental agreement should provide details about the term of lease, monthly rental amount and security deposit. It should also specify all the terms and conditions such as who will pay for utilities like water, electricity and maintenance charges. The purpose of tenancy should be clearly mentioned, such as whether the property is being used for commercial or residential purpose. If the rental agreement is set to expire and you and the tenant agree to extend the term of lease for a specific period, then the extension should be done in writing. Register the agreement: It is necessary to register the rental agreement because only then it can be used as evidence in the court in case of any legal action. The amount to be paid for registration and the stamp duty may be borne by you or it can be split between both the parties depending on the situation.

Police verification: Not running a background check is a punishable offence under Section 188 of the Indian Penal Code. You have to fill the verification form which can be obtained from the state police department’s website. It must then be submitted to the local police station along with the identification proof of the tenant. The local police can then conduct a background check and give approval for the rental agreement.

Always take a deposit: A deposit is a vital means through which landlords can protect their property. It gives you an assurance that your property will be left in good order and that you can pay for repairs if it is not.

Best Time to Buy Your Dream Home in Gurgaon

If you our looking out to buy a new projects in Delhi-NCR? Then this time is the most desirable time, that you might have been waiting for.  As the Government along with other higher authorities in the country such as RBI has set their eyes on the real estate sector to improve its present condition. And this is quite visible with several recent developments, that includes the clearance of Real Estate bills and twice rate cuts by RBI. Further to the RBI rate cut, well-known banks like HDFC, ICICI, Axis and SBI have also reduced their home loan rates. Reduce home loan rate is a great news for any buyer, as it refers to less interest that furthers points out to reducing burden from the buyer's shoulder and in return the buyer will be more enthusiastic to buy new properties. In line with the present rate cut, developers are also hoping high for a further rate cut. With so many options on the table for buyer, this time is perfect for buying property.

However, looking at the current developments, real estate developers are launching new projects in Delhi-NCR with a view to boosting the status of decreasing sales of residential projects in the capital. In spite of the fact there are lots of inventory still under construction in Delhi/NCR region, the builders are still looking at developing more new projects in Delhi/NCR region, especially  in the affordable housing segment  to attract a higher number of buyers. Builders are now mainly focusing on the mid segment class, who has the spending power and constitute the majority of the prospective buyers.

The upcoming affordable housing projects range between Rs. 20 to Rs. 50 lakhs, strategically situated and are equipped with all sorts modern amenities. The time seems to be the best time for middle class families. The added amenities are one of the selling gimmicks of the developers to attract the buyers and increase the sales. Also with the reduced home loan rates by the banks, builders are hoping high with the new launches, as buyers now will not be hesitant in investing money in new projects in Delhi.

In addition, the new job opportunities such as the rise of the e-commerce sector, returns from the stock markets has comparatively increased in the earnings and thus the spending power in major cities. This rise in spending power of the buyers combined with lesser home loan rates is expected to further push up the home sales sentiments.

Also, the clearance of the real estate bill is another major step towards the improvement of the real estate market. With a proper regulatory body in place, the buyer can now invest in any property without getting worried about being cheated or harassed by the developer. The bill has brought in a positive vibe among the home buyers as now they can feel protected against the wrong practices of the real estate sector. Henceforth, the buyer can now become hopeful about an organized property market that encourage transparent and smooth dealings.

Delhi – NCR : Epicenter of Indian Real Estate

With the fast-paced development in and around Delhi NCR, real estate market has scaled new heights. The Property in Delhi NCR has been in huge demand in the recent years. This part of India has witnessed tremendous infrastructural development in all sections of real estate sector. Not just the infrastructural development with the metro facility the region can boast of excellent transportation amenities. Some of the major factors that have contributed to the property boom in Delhi NCR have been described below. Let’s take a look:

VARIOUS PRICE OPTIONS
The amazing infrastructural developments and improved connectivity due to the metro rail expansion, which connects regions like Noida, Faridabad and Gurgaon, new employment opportunities have been created. This factor has played a very crucial role in the Delhi Real Estate growth. The demand for Property in Delhi NCR is rising tremendously but the supply is falling short of the demand. Thus demand-supply function has also fueled the property prices in the region.

RAPID URBANIZATION
Delhi NCR has become one of the most sought after locations in the real estate landscape of the country. Rampant urbanization has played a major role in the tremendous growth of the Delhi Real Estate. The urbanization has resulted in great job opportunities, world class infrastructure, and excellent transportation facilities. All these factors have contributed immensely in the growth of the Delhi Real Estate. With more and more people migrating to the region in search of employment the demand for residential plots is also going up.

INVESTOR DRIVEN MARKET
Capitalizing on the growing demand for residential complexes, builders have come with numerous real estate projects offering world-class amenities.  The high-end lifestyle and facilities offered by these projects pull investors from different parts of the country. This has made Delhi NCR a booming destination for investments that has added to property prices in Delhi NCR.

All these factors have contributed to flourishing costs of Property in Delhi NCR. Investing in Delhi Real Estate is a smart idea with the guaranteed ROI (return on investment).The sky-rocketing prices of property is an obstacle for the common man. Builders are coming with numerous budgetary real estate projects to cater to the demands of the middle class segment.