When and how to buy your dream home

http://economictimes.indiatimes.com/markets/real-estate/realty-trends/when-and-how-to-buy-your-dream-home/articleshow/27011697.cms

When and how to buy your dream home
By ET Bureau | 9 Dec, 2013, 08.00AM IST

Buying a property involves a lot of subjectivity and is not just a factor of the property’s price or the interest rate on the home loan. Buyers are faced with several dilemmas when they purchase a house. Here are the answers to some of the key doubts:

Real estate, though a mainstream investment and probably a part of every financial portfolio, is also unique. It is the single largest financial commitment that most people make in their lifetimes. Buying a property also involves a lot of subjectivity and is not just a factor of the property's price or the interest rate on the home loan. Here are some questions you are likely to face in your quest for a good property:

Rent Or Buy?

Becoming a house owner means not having to deal with pushy landlords, poor maintenance and annual rental hikes. Plus, there's the feeling of having fulfilled one of life's most important financial goals. But owning a house comes with its own worries: you get tied to a location and moving becomes difficult; you get tied to an EMI; and selling the house is not easy in case you need cash at short notice. While paying rent may look like throwing money down a sink hole, it does offer you freedom from some of these worries.

Should You Invest?

If you are looking at a property purely as an investment, the current real estate market also becomes a factor in your decision. That will determine when you recover your investment, and when you begin to earn profits on it. Rental income is an important lure. Most people think it will help them pay the EMI. While that may be partly true in some cases, the equation changes if you have availed of a home loan to invest in a property.

New Or Resale?

The biggest benefit of buying in the resale market is that the construction is almost complete. This can be a big relief at a time when most projects are getting delayed. Also, not all resale properties in the market are old ones; most have probably never been lived in.
In some cases, such as properties that were lapped up by investors at the pre-launch stage, the price may be lower than the builder's tag. However, in the resale market, the down payment may be higher. The seller may also ask for a portion of the price to be paid in cash, which means that you will be able to take a smaller home loan. The home work and paperwork required in case of a resale project may also be more.

Hire A Broker?

If you do decide to buy a house, you will have to negotiate for discounts, choose between payment plans and also between locations. Will you need the help of a broker or a lawyer? In most cases, with a bit of research and running around, you can take the decisions on your own. But if you do not have the time, hiring these specialists may not be a bad idea.

Renovate Or Relocate?

After living in their houses for some time, homeowners often discover that they need more space. Migrating to a new location may not always be a costeffective option. In most cases, you may have to sacrifice moving from a centrally located area to the suburbs. Remodelling can sometimes help expand your current house. The decision to move or modify is a critical one, because a misstep could cost you a significant sum of money and a lot of time.

State Government Comes Up With a New Cluster Redevelopment Policy in Mumbai

http://www.bharatestates.com/blog/27380-state-government-comes-up-with-a-new-cluster-redevelopment-policy-in-mumbai/

State Government Comes Up With a New Cluster Redevelopment Policy in Mumbai

The government which failed to cut back the unauthorized constructions has decided to come up with new cluster redevelopment policy for the residents of the unauthorized flats and occupants of the illegal shops in Mumbai. These set of people will now be legally rehabilitated as a part of this new policy.

According to the sources, the state government will be offering rehabilitation space of around 250 sq ft to 700 sq ft area to all these unauthorized occupants. However, the cost of construction has to be borne by the dwellers and no incentives will be given to the developer for rehabilitating them.

The government had launched a similar redevelopment policy in 2009 but there were not much takers at that time hence the government has decided to come up with a fresh policy now which would replace the earlier. The sources further added that the urban development department has sent the new policy plan to the Chief Minister for the approval. The Chief Minister would very soon be sending the approval.

If the cluster rehabilitation is restricted to one acre then the incentives among the residents is rehab flat of around 323 sq ft or 30 sq m. The incentives may go up by 10 to 15% or even by 25% depending upon the plot size, if it is a mega cluster. The government is also planning to relax condition of the property tenure of the redevelopment to 70% from 100%. 70% of the occupants may have to give the consent.

As BMC is the planning authority, it will draw the limitations of each cluster to ensure that the city gets its infrastructure and public amenities. After the approval of the Mumbai plan, the government will be coming up with a similar policy in Thane to curb the illegal cluster growth.

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The harsh realty of regulation - The Hindu Business Line

http://m.thehindubusinessline.com/opinion/the-harsh-realty-of-regulation/article5405517.ece/

approval process

Granting infrastructure status to the real estate sector will help it get off the ground.

In recent times, the clamour to grant infrastructure status to the real estate sector has been on the rise. Once the government accords industry or infrastructure status to the sector, it will lead to a simplification of procedures and speedier approvals for projects.

, A developer of a project is required to comply with a long list of regulations. These include getting approval of development plans and building plans, and ensuring compliance with fire, pollution control, electricity, environment, water and so on.

As per World Bank’s statistics on Dealing with Construction Permits, a developer in India has to procure 34 different approvals before a residential project can get off the ground. This is a massive procedural burden when compared with developed economies, where not more than 15-16 approvals are needed. In fact, it is high even by emerging markets standards — in Brazil it only takes 17 permits, in South Africa 13 and in China 28. There is a need to define at what stage of approval the developer can start marketing his project to consumers.

As per CREDAI-Jones Lang Lasalle Real Estate Transparency Survey 2011, getting regulatory approval for the construction process takes two to two-and-a-half years in India. The financing cost increases as well — and is passed on to the buyer.

Fast approval of all such clearances would become a distinct possibility if the sector is granted industry status. It would ensure that projects can get a single-window clearance for regulatory requirements instead of getting them independently from various agencies, wasting time. Industry status would also lead to relaxation of lending norms to the sector.

Access to capital is the biggest need for many developers today as banks are reluctant to offer a credit line to many projects currently under development. Such constraints force developers to borrow from non-banking institutions at exorbitant rates of interest. It is not uncommon for builders to borrow at 18-24 per cent.

This aggravates their cash flow and makes it onerous for them to service those debts. Industry status will facilitate real estate loans at a lower rate, boosting the confidence of the sector.

Beneficial effects

Given the contribution of the real estate sector to the health of the overall economy, the demand for grant of industry status is justified. The industry is known to contribute approximately 6 per cent to our GDP and is known to be the next biggest employer after agriculture. A host of ancillary industries such as steel, cement, paint, brick, building materials, consumer durables and so on are known to be dependent on it.

A study by credit rating agency ICRA shows that the construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the Indian economy.

A unit increase in expenditure in the real estate sector can generate a fivefold increase in income.

In view of the contribution of the real estate sector, the sooner it is granted industry status the better it will be for the health of our economy.

The author is Vice-Chairman, Lotus Greens Developers.

Will Metro Rail bring property prices down in Pune?

http://content.magicbricks.com/industry-news/pune-real-estate-news-industry-news/will-metro-rail-get-more-fsi-to-pune/60306.html?fromSite=toi&utm_source=toi&utm_medium=referral&utm_campaign=toi-mb-whitelabel

Will Metro Rail bring property prices down in Pune?

Pune

If you are looking to buy an under-construction property in Kalyani Nagar, Pimpri, Chichwad, Vanaz or Swargate, you may not get many options in the near future as the number of new projects is likely to come down and the current projects may be delayed. Why? Real estate developers in Pune are waiting for the new Floor Space Index (FSI) norms under the new Pune Municipal Corporation (PMC) Development Plan, which is under the pipeline.

The provisions for additional FSI may brings property prices a bit down as developers will be able to construct more on the land available to them.

Why Pimpri, Chinchwad, Vanaz and Swargate? These are the areas proposed to be covered under the first phase of Metro Rail. “The areas in localities which fall around the Metro Rail line are likely to get more FSI,” says Abhijit Pardeshi of Samriddhi Estates.

This expectation is backed by reason and logic. Cities such as Noida and Gurgaon, which have the Metro Rail up and running, already have provisions for extra FSI around the localities around the line.

View Larger Map

For that matter, the phase I of the Metro Project would cover Ramwadi, Kalyani Nagar, Yerwada, Bund Garden, Ruby Hall, Pune Station, Poolgate, Mangalwar, Peth, Civil Court, Deccan Gymkhana, Nal Stop, Ideal Colony, Anand Nagar and Vanaz.

In its recent report to the Maharashtra government, the Delhi Metro Rail Corporation (DMRC) stated that an additional FSI of 4 shall be provided for about 10.4 hectare of land around the proposed Metro Rail Stations in Pune. The draft Development Plan of the PMC also looks for additional FSI around every metro station.

However, the proposal is under consideration as the fractions of the government believe that it would result in population overload in select areas and will thus increase pressure on infrastructure and other civic amenities.

According to a report from Jones Lang LaSalle, the State government has instructed the PMC to draw up a plan for extending the Pune Metro link to Rajiv Gandhi Infotech Park (RGIP) at Hinjewadi.

Vikram Jethwani, Magicbricks.com Bureau

Vikram is an integrated communications professional with diverse experience in journalism, research and analysis. His focus areas include real estate, infrastructure and urban management.

http://maharashtratimes.indiatimes.com/lifestyle/property/home-at-pune/articleshow/26597868.cms

पुण्यात घरांचे अनेक पर्याय-प्रॉपर्टी-लाइफस्टाइल-Maharashtra Times

गेल्या काही वर्षांत पुण्याचा विस्तार मोठ्या प्रमाणात झाला असून, वाघोली, तळेगाव, कामशेत, खेड-शिवापूर, किरकटवाडी, उरळीकांचन, पिरंगुट आदी ठिकाणी नवे प्रोजेक्ट सुरू आहेत. या ठिकाणी घरांचे भाव तुलनेने कमी आहेत. त्यामुळे बजेट हाउसिंगसाठी या ठिकाणचा विचार करता येऊ शकतो.

दसरा-दिवाळी होऊन गेली असली, तरी नव्या वर्षाचे स्वागत करण्यासाठी सर्वजण सज्ज होत आहे. पुढील वर्षी नवे काय करायचे, अशा चर्चा सुरू होऊ लागल्या आहेत. काही जणे नवा संकल्प करतात, तर काही जण खेदीच्या माध्यमातून आनंद लुटतात. ही खरेदी मग, एखादे गॅजेट्, कारची असू शकते किंवा घराची. गेल्या दोन वर्षांत स्थावर मालमत्ता क्षेत्रात परिस्थिती बदलली आहे. पूर्वी स्थावर मालमत्ता ही केवळ निवाऱ्याची गरज भागविणारी गोष्ट म्हणून त्याकडे पाहिले जात होते. अजूनही अनेकजण पहिले घर घेण्यासाठी आपल्या आयुष्याची कमाई घालवितात.

पूर्वी घरासाठी कर्ज घेणे ही अवघड बाब होती. आता नसली, तरी अनेक कागदपत्रे, त्यासाठी आकारले जाणारे शुल्क यामुळे घर खरेदी करणाऱ्या व्यक्तीचा जीव मेटाकुटीला येतो. मात्र, कर्ज मिळल्यामुळे स्वप्नातील महल प्रत्यक्षात साकार होणार असल्याने तो हे सर्व सहन करतो. ग्राहकांना आकर्षित करण्यासाठी बिल्डरांनी अनेक गृहप्रकल्प योजना सादर केल्या आहेत. रास्त दरातील घरे, मिड हाउसिंग, अल्ट्रा प्रीमियम, प्रीमियम, लक्झरी प्रोजेक्ट, एनए प्लॉट, फार्म हाउस प्लॉट आदी योजनांचा समावेश आहे.

नवे उद्योग येत असल्याने पुण्याच्या कक्षा रूंदावत आहेत; तसेच मुंबई-बेगळुरू औद्योगिक क्षेत्रामुळे सातारा, शिरवळ, खेड-शिवापूर, नसरापूर आदी ठिकाणी विकास होण्यास सुरुवात झाली आहे. सिंहगड रस्त्यावरील काही भाग पालिका हद्दीतील नाही; तसेच आंबेगावचा काहीच भाव पालिकेत आहे. त्यामुळे पालिका हद्दीत घरांचे भाव काहीसे चढे आहेत. आज ना उद्या हे भाग पालिका हद्दीत येण्याची शक्यता आहे. त्यामुळे भविष्यातील विचार करता या ठिकाणी सुरू असलेल्या आणि लाँच होत असलेल्या रेसिडेंशिअल प्रोजेक्टमध्ये फ्लॅट बुक करण्याच्या संधीचा विचार करायला हरकत नाही. विस्तार असलेल्या पुण्याचा विचार केल्यास दक्षिण बाजूस आंबेगाव, नऱ्हे, धायरी, किरकटवाडी आदी ठिकाणी मोठ्या प्रमाणात बांधकाम सुरू आहे. ही ठिकाणे रस्त्यांनी सर्व ठिकाणी जोडलेली आहे. शाळा, कॉलेज, मॉल, मल्टिप्लेक्स, हॉस्पिटल आदी सुविधा या भागात गेल्या दहा वर्षांत उभ्या राहिल्या आहे. घर खरेदीसाठी एखाद्या भागाची निवड करताना तेथील दर, सुविधा याच गोष्टी प्रामुख्याने विचारात घेण्यासारख्या असतात. या ठिकाणचे दरही अन्य भागाच्या तुलेनत रास्त आहेत. ३५ -३८ लाख रुपयांपर्यंत या ठिकाणी एक बीएचके, ४५-७० लाख रुपयांदरम्यान (काही अपवाद) टू बीएचके उपलब्ध आहे. रो-हाउस, बंगला घेण्याचे स्वप्न या भागाचा विचार केल्यास पूर्ण होऊ शकते. अनेक बिल्डरकडून या ठिकाणी रो-हाउस, बंगल्याच्या स्कीमही बांधल्या जात आहेत. साधे घर ते आधुनिक अॅमेनिटीज असणारा प्रोजेक्ट, एक बिल्डिंगची सोसायटी ते मोठा प्रोजेक्ट, तर टाउनशिप या ठिकाणी आहेत. त्यामुळे प्रत्येक व्यक्ती आपल्या क्षमतेनुसार घराचा प्रकार आणि कोणत्या प्रोजेक्ट प्रकारात घर घ्यायचे याचा निर्णय घेऊ शकते.

कोथरूडचे अॅनेक्स म्हणून उदयास येत असलेल्या उत्तमनगरचे कोथरूड असेच मार्केटिंग सुरू आहे. कोथरूड बजेट बाहेर असणाऱ्यांना या अॅनेक्स कोथरूडचा विचार करून कोथरूड भागात घर घेण्याचे स्वप्न साकार करता येऊ शकते.

हिंजवडीच्या दिशने विचार केल्यास बाणेर, बालेवाडी, औंध, बावधन, सूस या ठिकाणी प्रोजेक्ट सुरू आहेत. आयटी हब या ठिकाणजवळ असल्याने या ठिकाणी घर घेण्यास प्रीमिअम मोजण्याची तयारी असणाऱ्यांनी या भागाचा विचार करावा. कोंढवा, उंड्री हा पुण्याच्या पूर्वेकडील भागही गेल्या दहा वर्षांपासून वाढण्यास सुरूवात झाली आहे. सिंहगड रोडच्या तुलनेक विकास कमी असला, तरी लो-बजेट असणाऱ्यांसाठी हा भाग एक चांगला पर्याय ठरू शकतो. या भागात काही ठिकाणी हायएंड, तर काही ठिकाणी मिड हाउसिंग प्रकारातील प्रोजेक्ट सुरू आहेत.

सिंहगड रोडपेक्षा दर थोडे कमी आहेत. त्यामुळे थोडीशी अडचण सहन करण्याची तयारी असल्यास मोठ्या घराचे म्हणजे टू बीएचकेचे स्वप्न पूर्ण होऊ शकते.

नगर रस्त्यावर वाघोलीपर्यंत बांधकाम सुरू आहेत. काही भागात हायएंड प्रोजेक्ट सुरू आहेत; तसेच मिड हाउसिंग आणि रास्त दरातील घरांचे प्रोजेक्टही या भागात सुरू आहेत. त्यामुळे प्रत्येकाला बजेटनुसार उपलब्ध आहेत.

रिअल इस्टेटमध्ये गुंतवणुकीचा विचार करीत असलेल्यांसाठी पिरंगुट, तळेगाव दाभाडे, कामशेत, चाकण, भोसरी, रहाटणी आदी भागांचा विचार करायला हरकत नाही. विशेषतः तळेगाव आणि कामशेत ही ठिकाणे रस्ते आणि लोहमार्ग यांनी जोडलेली आहेत. या ठिकाणी राहणारी अनेक मंडळी कामानिमित्त लोकलद्वारे पुण्यात ये-जा करतात. या ठिकामी दरही सध्या तुलनेने कमी आहेत. त्यामुळे आयुष्यातील स्वतःचे पहिले घर घेण्याचे स्वप्न कमी बजेट असणाऱ्यांचे पूर्ण होऊ शकते. तळेगावमध्ये मोठ्या प्रमाण इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकणचा विकास होत आहे. भविष्याचा विचार करता सध्या घेऊन ठेवलेल्या घरावर चांगले रिटर्न मिळू शकतात. त्यामुळे रिअल इस्टेटमधील गुंतवणुकीचे हे एक डेस्टिनेश म्हणायला हरकत नाही. चाकण या ठिकाणीही इंडस्ट्रीअल डेव्हलपमेंट सुरू आहे. त्यामुळे या ठिकाणीही घर घेऊन रिअल इस्टेटमधील गुंतवणुकीचे स्वप्न साकार होऊ शकते. प्रत्येकाल आपल्या बजेटनुसार राहण्यासाठी किंवा गुंतवणूक करण्यासाठी घराचे पर्याय उपलब्ध आहेत.

Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India

http://thepointdaily.com/morgan-stanley-nysems-real-estate-investment-may-put-money-in-india/126372/

 Morgan Stanley (NYSE:MS) Real Estate Investment may put money in India
Posted on February 12th

Morgan Stanley (NYSE:MS) Real Estate Investing, is thinking on the lines of investing in a project aimed at building 1.6 million square feet of office space in Bandra Kurla Complex, which is a locality in Mumbai, two unidentified sources familiar with the situation briefed.

The Mumbai based company, Wadhwa Group, initiated work on the project. The project is going to build two towers that will be devoted to offices and it is expected to be completed by the end of 2014.

The deal is believed to be in the early stages right now. It will be the first investment by MSREI in an office development project in India, according to an anonymous source. Previously, the company put $850 million in Indian real estate that mostly included housing projects. The amount of $100 million to $125 million was diverted to Mumbai-based Sheth Developers. This information is obtained from a report from Reuters, which was publicized during December 2011.

Currently, MSREI and the Wadhwa Group are not willing to offer any comment on the topic, while in the light of information gathered by research firm Venture Intelligence, a majority of private investors are not willing to put their money in the Real Estate industry of India. The investment level in the industry remained at $1.95 billion in 2012, declining from 2007’s $9.8 billion.

In the last trading session, Morgan Stanley (NYSE:MS) stock traded at the beginning with a price of $23.21 and throughout the trading session climbed to a high of $23.47 and later, when day-trade ended, the stock finally slipped -0.17% to $23.28.

MS current year earnings per share experienced a decline of -103.32%, while its current quarter performance remained +41.26%. MS has 1.98 billion outstanding shares, among them 1.55 billion shares have been floated in the market exchange. MS stock institutional ownership remained 60.23% while insider ownership was 0.20%.

The stock is ahead of its 52week low +91.59% and is lagging behind its 52 week high price -1.94%. The Company’s beta coefficient was 1.60. Beta factor measures the amount of market risk associated with market trade.

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Real estate sector seeks lower finance costs, faster clearances

http://m.timesofindia.com/city/pune/Real-estate-sector-seeks-lower-finance-costs-faster-clearances/articleshow/18425646.cms

Real estate sector seeks lower finance costs, faster clearances - The Times of India on Mobile

PUNE: The country's real estate players are hoping that the finance minister's budget provisions, to be announced on February 28, will bring down the costs of finance for the construction sector, which they insist will play a major role in offering lower rates for their product.

Also on the real estate developers' wishlist is a sustained structure of governance for the sector and introduction of methods to reduce the time taken to obtain the permissions and clearances for a project. A delay in the completion of a project, mainly due to delayed clearances, always leads to cost escalation and higher prices for consumers, they argue.

Lalit Kumar Jain, national president of the Confederation of Real Estate Developers' Associations of India (Credai), said the finance minister should allow tax exemption for inputs used in construction of small houses, of under 60 sq m carpet area. Special housing zones on the lines of Special Economic Zones could also be created, with tax exemptions for constructing 45 sq m houses for low income groups and 30 sq m houses for the economically weaker sections, Jain said.

He said, "Widespread tax incentives can be leveraged to make the real estate sector the new growth engine of the economy...It is high time that the government took a pragmatic and practical look at the real estate sector and took steps that help the industry in particular and the economy in general." Interest rates for housing loans should be cut to 7.5%, he added.

Credai suggested that a Real Estate Investment Trust be formed and called for special rental housing projects under the affordable segment, treating the expenditure as capital investment for long-term capital gains, exemption from income tax, service tax, value added tax and stamp duty for rental housing. Even the rental income from these projects must be exempt from income tax as there are substantial indirect benefits, the apex body has said.

Anuj Puri, chairman and country head for real estate advisory company Jones Lang LaSalle India, said considering that the budget is expected to be a populist one ahead of the 2014 polls, addressing the compromised GDP and skyrocketing inflation must be given the highest priority.

Puri said the budget needs to increase infrastructure spending in urban areas with a view to unlock the value of neglected and hidden land assets in suburban and peripheral districts. This will enable a more holistic growth for the real estate markets in our over-burdened metros and allow the demand for housing to spread over a larger canvas. The increased demand in peripheral locations where infrastructure has made the real estate markets more viable will also help bring down prices in the central areas, he said.

"The country's real estate industry contributes approximately 5% to the GDP. Moreover, the real estate sector has grown significantly over the past decade, with tangible transformation in quality and business standards. However, due to lack of regulations and effective policies, the sector is experiencing many challenges. The budget must consider the fact that the Indian real estate sector generates countless jobs across its various verticals. By granting it industry status, the government would enable the sector to access debt-lending at better interest rates and reduced collateral values," Puri said.

The government should come up with simple and effective polices that will ease real estate development approval procedures. Obtaining the 57-odd permissions to begin construction of a project can take up to two years. During this time, the cost of acquisition or even just holding the land for projects goes up. Lack of single-window clearance mechanisms causes project delays, which prove to be expensive to both developers and end users, Puri added.

The firm's managing director (Pune) Sanjay Bajaj said the budget should provide the real estate sector with elaborate provisions for external commercial borrowings for low-cost housing, tangible tax relief for individuals and greater investment in infrastructure. "An amplification of concessions for low-cost housing loans would have a significant bearing on the Pune real estate market. Unlike Mumbai, budget housing is still a very real concept in this city. Incentivising the development and purchase of affordable housing can make a big difference here," Bajaj said.