Tips to Get a Good Deal from Resale Property

An apartment that you can move into within days, with all the logistics taken care of and no new apartment hiccups – is this what you are looking for? Then buying a re-sale property is your best option.

Magicbricks takes a look at some of the things that you need to look at to make an informed decision.

“Re-sale properties broadly fall into two categories: completed homes, ready for sale and those that will be completed in a short period of time,” says Karthik Madhukar, proprietor, Akshitha Estate Consultants, a broker who primarily focuses on re-sale property in Central Bangalore. “There are only two reasons for buyers opting for this segment: non-availability of new projects in the area they want to settle in or new projects being sold out in the area they prefer. And they cannot wait till the completion of pre-launch properties.”

Location selection

“The area is generally non-negotiable here. But what buyers do not realise is that often a few areas around the locality have better options in terms of price and built-up space,” says Anandana Chariyar, of Durga Real Estate Agency, a third generation real estate agent in the city.
Chariyar gives the example of a client of his who bought an independent home in JP Nagar 7thPhase, when Brigade Millennium was under construction, a little distance away from the site.

A good price

“A re-sale property is not necessarily cheaper or more expensive than a new one,” says Madhukar. “However, you stand to get a better bargain if you buy a `to be soon ready construction’ project from a person who booked it at the pre-launch stage. In Bangalore, such properties are often sold at about 5-10 per cent below what the developer is offering.”

Another time to buy, real estate agents suggest, is when the market faces an oversupply.
In Central Bangalore for instance, 3BHK units are in over supply according to the latest Magicbricks PropIndex (Apr-Jun 2014). “When the market witnesses a marked oversupply, the re-sale buyer stands a better chance of getting a good deal, as the original owner has to keep his price below the price of the developer’s latest quote,” says Chariyar.

Due Diligence checklist

A few musts on the checklist include:

• Verifying the title records and ensuring the property specifications conform to the claims
• Builder-buyer agreement and original payment receipts against the installments paid
• Pending amount with the builder
• Reasons the owner is selling the property. “In case the property is being sold by someone who had originally planned to live in it, there may be negative reasons. These may include developer not having met the timelines or even the quality of promised amenities,” says Chariyar
• Housing society rules and controls with regards to sale

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Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

GlaxoSmithKline Pharmaceuticals to sell Thane land for Rs 555 crore

MUMBAI: GlaxoSmithKline Pharmaceuticals on Friday said its board has approved the sale of around 60 acres land of the company at Thane to Oberoi Realty for Rs 555 crore.

“The Board of directors of the company at its meeting held today approved the sale of the company's land admeasuring approximately 60 acres located at Thane, Maharashtra to Oberoi Realty Ltd for a consideration of Rs 555 crore”, GlaxoSmithKline (GSK) Pharmaceuticals said in a regulatory filing on the Bombay Stock Exchange.

Source : pixabay.com

The proposed sale is subject to receipt of all statutory and regulatory approvals from the concerned authorities and signing of the definitive documents in this regard between the company and Oberoi Realty Ltd, the notice said.

In August 2014, ET had first reported that Oberoi Realty was in talks with GlaxoSmithKline Pharmaceuticals to buy the said land parcel.

TO REAL ESTATE PROJECTS IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

K Raheja Corp-GIC buys 3-acre Land Parcel in Worli for Rs 610 Crore

MUMBAI: GlMUMBAI: Realty developer K Raheja Corp and Singapore’s sovereign wealth fund GIC have acquired a prime three-acre land parcel in Worli in Mumbai from Siemens for Rs 610 crore.

Siemens on Monday transferred and assigned its leasehold interest in this property to Whispering Heights Real Estate, a joint venture entity of Reco Solis an affiliate of GIC, Singapore and the K. Raheja Corp Group for a total consideration of Rs. 610 Crore, the company said in a regulatory filing on the Bombay Stock Exchange.

Source : freepik.com

ET was first to report the proposed transaction on December 12.

Last year, the company had signed a Memorandum of Understanding (MoU) with K Raheja Corp Group and GIC to transfer its leasehold interest in the property.

TO REAL ESTATE PROJECTS IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

How to Finance Investment Property

If you want to be one of the thousands of people who own commercial or residential commercial real estate, you will need know how to Finance Investment Property expenses including your property loan and sometimes renovation expenses. You can easily do this by having good credit, knowing where to find financing and being prepared with the proper paperwork.

1. Run your credit history to make sure you are in a position to secure financing.

- Follow up with correcting any mistakes on your credit report.

2. Fund your investment property with your own monetary resources.

- While it is a high-cost venture, financing with your own capital leaves you with fewer people or entities to answer to and less red tape to go through. 
- Funding the property by yourself, though, means that you also assume all of the risk as well.

Credit : freepik.com

3. Consider taking on a partner or partners.

- Splitting the cost with an investment partner or partners will again allow you to avoid red tape, as well as not sink all of your money into one project. 
- While you may have a positive working relationship with your partners, make sure that you have an iron-clad contract in place.
- Agree on what percentage each partner is going to put in as well as what percentage each partner will be paid out.

4. Secure a line of credit through a traditional lending institution.

- Be prepared to fill out a large number of paperwork. Bring past pay stubs, old W-2s, and any available information on the property itself. 
- Use your line of credit to purchase of the property as well as pay for improvements to the property. 
- Use the money generated from the income off the property to pay down or pay off the line of credit. 
- Resell (otherwise known as "flip") the property and pay off the financing. By doing this, you will make sure that your line of credit is in tact and you have a nice down payment for your next property.

5. Discuss with your realtor alternate financing options.

- Some property owners may offer financing or builders of new construction properties sometimes offer financing as well.

6. Find a private investor or private investment group.

- Investors pool their money together to finance properties, and they would earn a profit similar to that of how a bank earns interest.
- Ask your realtor or perform an online search to find private property investors in your vicinity.

TO BUY LUXURY PROPERTY IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

6 Reasons Your Home Loan Could Be Rejected

Lenders consider many factors before granting any loan. The criteria to determine the eligibility and quantum of a loan differs from one lender to another. Improving your credit score, ensuring timely payment of credit card dues, closing all earlier loans and increasing one’s income levels are more common. However, there are certain other indirect reasons which could be causal for the rejection of the loan. Here are few reasons for loan rejection which normally people may not be aware about:

Frequently switching jobs

Banks stress a lot on job stability and certain banks have even made it mandatory that the applicant needs to be employed with a particular company for three or more years to be eligible to get a loan. The banks may also take into consideration the stability of the company one is working for while processing a loan application. So, it is highly advisable that the applicant stick to a particular job for a minimum period of a year to get the loan sanctioned.

Residential address on the defaulter list

If the applicant bears the same address as someone who has been a defaulter for either loan repayment or credit card dues and which has been reported to CIBIL, chances of loan rejection increases. Banks often have negative PIN codes based upon historical delinquency experience, where they may not lend. This is because the residential address will match with a disproportionate number who are on the defaulter’s list.

Profile doesn’t fit into the bank’s internal policy

Internal policies for some banks may dictate that some geographic area or credit profiles are negative for lending and the bank won’t be able to sanction loans. In such case, one need to discuss it with the bank and provide other security in the form of a guarantor or in the form of insurance policies, collateral securities, fixed deposits, etc. in order to assure the banker about their repayment ability.

Banks do not fund for old building

A bank will not fund old buildings especially if the building is more than 20 year old. The criteria of the age of the building vary from one bank to another. But, the land value will always be considered by the bank. One can negotiate for a lesser loan amount by adding in some form of security and one can also increase the down payment to get the loan sanctioned.

Loan application has been rejected before

Every bank has records of the entire rejected loan applications in their database or can obtain a history of loan application enquiries from CIBIL. When the applicant applies to a bank, the rejection will show up in the credit profile check and this would probably affect the credit worthiness of the applicant. It is highly advisable that one should not keep on applying for loans without any reason.

Poor Credit Score or Credit History

The credit score ranges from 300 to 900. The closer you are to 900, the more confidence the credit institution will have in your ability to repay the loan and hence, the better the chances of your application getting approved. Anything above 750 is considered a good score. All banks usually look at the credit score as one of the many checks they do before advancing a loan.

A good score alone does not mean a person can get the loan he wants. Bankers additionally look at the status of previous loans and the payment history on such loans. A previously settled or a written off loan is likely to impair the ability to avail more loans. Credit history, outstanding loan value, loan types, recent credit events, etc. affect ones credit score.

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Most ongoing projects in Maharashtra registered: MahaRERA Chairman

Most of the ongoing real estate projects in Maharashtra have registered with the Maharashtra Real Estate Regulatory Authority (MahaRERA), said Gautam Chatterjee, Chairman, MahaRERA.

"So far, we have received total 13,400 applications for registration and of these, we have already registered 13,300 projects," Chatterjee said while addressing NAREDCO-APREA summit here. "Of these 13,400 projects, over 400 are new projects and rest are ongoing projects."

Source : freepik.com

The regulator has so far received 232 complaints against ongoing project developers.

Maharashtra was one of the first states to notify rules and establish the MahaRERA after all sections of the Real Estate (Regulation & Development) Act, 2016, came into force on May 1.

TO REAL ESTATE PROJECTS IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Mall Culture, Craze for Online Shopping Sting Retail Outlets

Records available with the labour department of Thane show there has been almost 50% dip in the number of shops in the district between 2009 and 2013.(See chart) Experts said the emergence of mall culture and rising popularity of e-commerce could be responsible for pushing back the retail industry from the district.

Statistics reveal the number of shops in Thane district has shrunk from 4.61 lakh in 2009 to just 2.53 lakh in 2013. The dip was the highest in 2012 when the numbers dipped to 2.33 lakh. This drop in shops is likely because of the rising preference of residents to make purchases online or visit nearby malls. In Thane city alone, there were 1.59 lakh shops in 2010 while the numbers shrunk to 1.39 lakh in 2013.

Moolchand Gala, of the Thane Retail Traders Association, said the situation is indeed grim for their ilk. “In the last three years we have seen many retail outlets shut shop in Thane city only . The business for electronic items, grocery and apparels has greatly been snatched away by malls and online markets,“ he said. Traders added that many more are likely to shut shop in the future as they cannot run their establishments with high operating costs.

Experts from the industry foresee the e-commerce market to grow fast with its market size doubling every 2-2.5 years. “The internet has given consumers access to a wide spectrum of products and services. The availability of wider range of products compared to physical retail stores and relatively lower prices is driving the demand for online retail,“ said Anuj Puri, chairman and country head of consultant firm Jones Lang Lasalle, India. Puri, however, added that e-commerce is still unlikely to completely replace or even seriously dent the physical retail in India.

Real estate agents in Thane said the markets for shop units are still hot property . “The demand for shop units is still high and there are several areas where the units were sold out even before the construction is ready .However, the rental business has been affected of late, thanks to the high expectations of owners. Resale galas also are in demand,“ said a real estate agent.

TO BUY LUXURY PROPERTY IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

Govt Announces New PPP Policy for Private Investments in Affordable Housing

Taking its efforts to achieve 'Housing for All by 2022' further, the central government has announced a new public-private partnership (PPP) policy for affordable housing that allows extending central assistance of up to Rs 2.50 lakh per each house to be built by private builders even on private lands.

Under this policy announced by Minister of Housing & Urban Affairs Shri Hardeep Singh Puri, eight PPP (Public Private Partnership) models have been provided for private sector to invest in affordable housing segment.

It has also opened potential for private investments in affordable housing projects on government lands in urban areas.

While addressing real estate body NAREDCO’s summit, Puri explained that this policy seeks to assign risks among the government, developers and financial institutions, to those who can manage them the best besides leveraging under-utilized and un-utilized private and public lands towards meeting the target of Housing for All.

Source : freepik.com

“We are not being prescriptive or restrictive with these models. Land being a state subject, the the governments can come up with more models that would help in pushing affordable housing efforts further,” Puri said.

The two PPP models for private investments in affordable housing on private lands include extending central assistance of about Rs 2.50 lakh per each house as interest subsidy on bank loans as upfront payment under the Credit Linked Subsidy Component (CLSS) component of Pradhan Mantri Awas yojana (Urban). Under the second option, central assistance of Rs 1.50 lakh per each house to be built on private lands would be provided, in case the beneficiaries do not intend to take bank loans.

Puri stated that eight PPP options, including six for promoting affordable housing with private investments using government lands have been evolved after extensive consultations with States, promoter bodies and other stakeholders.

THE SIX MODELS USING GOVERNMENT LANDS ARE:

• DBT Model: Under this option, private builders can design, build and transfer houses built on government lands to public authorities. Government land is to be allocated based on the least cost of construction. Payments to builders will be made by the public authority based on progress of project as per agreed upon milestones and buyers will pay to the Government.
• Mixed : Development Cross –subsidized Housing: Government land to be allotted based on number of affordable houses to be built on the plot offered to private builders, cross subsidizing this segment from revenues from high end house building or commercial development.
• Annuity-Based Subsidized Housing : Builders will invest against deferred annuity payments by the Government. Land allocation to builders is based on unit cost of construction.
• Annuity-cum-Capital Grant Based Affordable Housing : Besides annuity payments, builders could be paid a share of project cost as upfront payment.
• Direct Relationship Ownership Housing : As against government mediated payments to builders and transfer of houses to beneficiaries in the above four models, under this option, promoters will directly deal with buyers and recover costs. Allocation of public land is based on unit cost of construction.
• Direct Relationship Rental Housing : Recovery of the costs by builders is through rental incomes from the houses built on government lands.

Under these six government-land-based PPP models, beneficiaries can avail central assistance of Rs.1.00 to Rs.2.50 lakh per house as provisioned under different components of PMAY (Urban). Beneficiaries will be identified as per the norms of PMAY (Urban).

Puri expressed concern over the private sector so far not entering affordable housing segment despite huge scope for the same under Pradhan Mantri Awas Yojana (Urban) and an enabling eco-system put in place through several concessions and incentives offered including the grant of infrastructure status for this segment.

The minister also added that last week he has announced a time bound review of FSI/FAR norms in 53 cities with a population of million and above each and State capitals to enable better utilization of scarce urban land parcels.

He informed that a view would soon be taken on allowing urban housing projects in peripheral villages and talks are going on this regard with the Ministry of Rural Development. Online mechanism for time bound approvals for building plans and construction permits has already been introduced in Mumbai and Delhi and the same would happen soon in additional 53 cities with population of above one million each, he said. He also added that the government is ready with Model Tenancy Act and National Rental Housing Policy and this would be announced soon.

The government has so far sanctioned Rs1.40 lakh crore to support Rs 2.6 million affordable housing units across 2,700 cities and towns across the country.

While urging private developers to seize the investment opportunities in affordable housing in the prevailing enabling environment, Puri said, "It is time to stop debate and swing into action".

TO PROPERTY IN THANE OR KNOW MORE ABOUT BUILDERS AND DEVELOPERS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com