Archive for February 2010
A real estate agent is one who can negotiate and conduct sale of real estate on behalf of his client. His task is to collect data of saleable property and of prospective buyers. Once the deal is complete, the agent gets the commission of what he has done. For instance if he had obtained the listing or sold the property he will be paid according to his input. Thus if he can solely handle a listing and sale he can increase his commission.
Entering the realty market is not a difficult task. But to keep up with the competition of already existing agents and brokers is tough. As they already have a handsome portfolio of listing and clientele.
As local realtors, brokers and agents know best about the real estate in the vicinity. They know what befits their client the best according to his budget. They are abreast with the local tax laws, zonal laws and other minor fine lines that can make a big difference.
Although most real estate agents are involved in residential property, a few from specialized organizations put their hands into commercial, industrial and even agricultural estate. But to sell these type of properties, the agent must have a through knowledge of the available utilities, transportation, labour supply and other legal issues that go into such estate buying and selling. They have to understand the entire area so that they are sure it will best fit their client’s needs.
With technological advancements agents can even show their clients the prospective area on the computer. One can zoom in on the floor space and the surrounding. Thus giving the client a virtual tour instead of actually moving to the required location. However the agent has to be ready according to the client convenience to take him to the actual site.
Once the deal is settled the agent must make sure that whatever the seller had agreed to complete, is done. For example if there are any repairs, leakages etc. that were to be fixed, have been completed. The real estate agents responsibility is not only to complete the deal but also to make sure the client is completely satisfied. That every minuscule aspect has been checked and completed.
To have roof over the head, one does not have to own a property in India; or rather one does not have to buy it outright. There is a midway that a major share of people, today, are adopting. Renting is the easier and cheaper way of living with dignity and security. When renting a property one will not be given the rights of ownership and cannot actively participate is society decisions, unless the landlord legally hands over such rights.
The tenant occupies the property legally for a given period of time.
Renting a property is a two way benefit. The one who owns the premises gets a payment for someone residing in his property, while the one who pays the rent gets a place to occupy and live in. Some landlords, actually allow the tenant certain additional ownership rights such as placing the name board on the main door and removing the actual owner’s name.
Earlier renting of property was based on mutual understanding. There were no legal formalities or paperwork involved. But with the increase in this trend, and a lot of owners being cheated off their own investment, there have been some laws and rules established by the Government.
There is a legal agreement made between the owner of the property and the person to whom it is being leased. All the terms and conditions like the amount to be paid by the leaser, the handling of the property, maintenance of the property, liabilities, security deposit etc are pre decided and mentioned in the agreement. Both the parties need to sign it in front of witnesses and a copy of it has to be given to the local police station.
In cities where societies are formed, the tenant is approved of by the society management and the secretary of the society. A copy of the agreement may also reside with the secretary or president of the society. The person who would occupy the property has to abide by the rules and regulations of the society and maintain healthy living conditions around.
For commercial renting of property like land for some industry or shop or showroom, the procedure is the same. All the terms and conditions are mentioned on a stamp paper signed by both the parties in presence of two or more witnesses. The terms of payment of the rent is also decided and is not variable unless mentioned in the contract.
You brought your home 20 years or so ago. Now it looks a little tarnished. You want to redo or restructure it. But you wonder how to finance the project.
Home Improvement Loans, is the new funda to finance a home makeover. You can redo the basic amenities in your home like waterproofing, buying plywood, roofing or fixing grills and aluminium window. Moreover these loans are also offered for any amendment you make to your home to better your lifestyle and comfort.
In the modern generation, when a house is purchased many alterations are done besides the basics of painting and furniture making. Today individuals want to make their home distinct form their neighbour next door. And enjoy the best in comfort. With this new trend emerging banks are geared up to provide home improvement loans.
To make it even more attractive these home improvement loans come with free credit card and other baking benefits. Some even take a step further to provide a deduction in interest rates. Schemes with a cess on interest are provided if taken along with the home loan. How lucrative is the bank offer depends on the fine prints that are not emphasised and the actual amount that is required.
A hotel, but a home. Absolutely, that is the new concept that is sold by hotels, today. It is called the service apartment. The room has a homely look and is propped with everything a home would need. From home appliance to kitchen needs, bathroom and toilet accessories. It’s like your home, although you are miles away from it.
This is a new concept in India but the western countries have already welcomed it. Five Star Hotels brought this style to clients who would stay for a long period. They realised in the beginning clients loved the luxurious service but after a month they longed for their home. Thus a serviced apartment would offer most of the aspects of your home. Making you feel at ease, as though you were at home.
Many corporates who travel to other states or countries find it difficult to adjust to the new culture and setting. For sometime the hotel service is welcome but later you long to dwell your own style.
Reason why service apartments were brought into being. You cook and eat and live the style you want. You are even provided with a maid/manservant who will get you groceries or any other requirement. Making it just the way it would be at home.
Nowadays Indian immigrants coming to India to settle opt for this type of apartments. As they hunt for a new house they accommodate themselves in comfort in a service apartment. So they do not have to compromise on their lifestyle or go through the hassles of shifting in a rented home with zilch amenities then shifting out.
It is an acceptable alternative even for foreign nationals who travel to other countries. Once a Chinese citizen reported that he was tired of eating the food of another culture that didn’t suit his body. Ultimately the service apartment came to his rescue. He was happy that he could cook and live the way he wanted.
The service apartment is made to look and feel exactly like a home. Every room is furnished with a television & music set, microwave and other electronic goods. Moreover some hotels also provide you with magazine and shoe racks. Cleaning is done everyday. However a senior hotel manager mostly accompanies the cleaning staff so that they are never alone in the room.
The cost of a service apartment too is as attractive as the concept. It can vary from Rs. 7000 a month to over Rs. 11 lakhs a month for a well equipped 3 bedroom apartment with all the amenities including a swimming pool, gymkhana, a garden or even more.
The tariff charge depends on how long is the stay. It is less expensive if the person has a prolonged stay. It can be bargained if the stay is for a month or even more for a year. A service apartment generally provides you with an AC furnished flat, equipped kitchen, TV, fridge, washing machine, landline, internet, power back-up, fire safety & security and some even provide you with a locker. However before booking the apartment always make sure what is inclusive and what is exclusive. For instance who will pay the electricity, maintenance. Hence make sure what are you paying for.
Selling of properties in India
If too much buying of property is being observed then it naturally implies that too much selling is also going on. The whole idea of investment in property revolves around the fact of selling the property. After all, one can get the benefit of a property only by selling it.
For selling property in India, the job is easy. The very fact that so many people have now realized the potential of this industry has given a major boost to the buying of property. Since there are whole lot of buyers around, one would not realize when a property got sold.
For selling property, study of the market trends and a close look at the prevailing rates is necessary to get the best out of the property. Haste in selling may result in depreciating the value of the property sold and a good amount of profit to the buyer. The background of the buyer is to be known to make sure that the property is going in the right hands and safety of future.
Transactions of property involve a lot of legal formalities and paperwork and therefore utmost care is required during all the steps of selling.
Complete and legal paperwork ensures hassle free passage of the property from the seller to the buyer. Since the paperwork is kept in records by the government, authentic information is to be given in the paperwork. Consulting a good lawyer before selling the property to a person or organization is a very good and sensible idea.
A very important aspect of property related transactions is involvement of grey money or cash money. Not every bit of money needs to be shown on papers. The registrar who does the registry of the property might ask for some amount. A lot of care is to be taken in handling cash transactions in order to avoid legal issues or other personal inconveniences.
At some point in life you plan to buy a home. For safety, security, independence or any other factor. Purchasing a home is a major decision. You have to keep in mind tax factors, end beneficiary and may other minor and major details.
Before you choose a house consider the size of your family, their age and the various clauses of the income tax or wealth tax that can be imposed on your family members. Once you have all the final details you are in a position to decide in whose name and in which property to invest.
There can be more than one owner to the property. Husband and wife can be the first name holders while the children even minors can be added as joint holders. Having only one residential property in your name is advisable as it is totally exempted from wealth tax. Hence if you are planning to purchase more than one residential property make sure they are in the names of those members who have no property in their name.
On the other hand commercial property has no bearing of wealth tax on it. Hence you can own several commercial properties without any intrusion of wealth tax. Gifting relatives’ estate is exempt from gift tax. Hence you can gift property without any upper-limit. But registering it is mandatory.
Who will be paying the stamp duty? What if there is a delay in possession? What are the documents required to purchase a house? Can the society hike the charges before purchase? These are only a few of the many questions you have to find answers to. There is much legality involved in purchasing a house. Sit down with you estate agent or lawyer, classify and comprehend each one of them. Make sure you have understood every fine print before you sign on any document.
Professionals recommend that you should purchase a home only after you have thoroughly planned for it. You could take six months to a year. Do not be in haste. Collect information about agents and property through friends and neighbours. Find out about loans from various banks and list them down so you can get a comparative statement. Subscribe to property magazines, buyer guide journals and pick such books wherever you find them.
Check out property exhibitions, modern interiors, architecture, and home appliances. They will guide you to understand how your future home can look. Settle on a budget and stick to it whatever the circumstance. Else before you know it you might burn a deep hole in your pocket.
Buying property in India
India is a vast country with diversity in culture, people and attitude towards almost everything. Every part of the nation has a specific trend towards property. Some places consider property as religious and God gifted, while many others look at it with an investment point of view.
The main idea being ‘buy property in India’ is not at all a bad one. In fact, due to this boom in the property market in the country, new people and new cultures are establishing in various areas. When more and more people are investing in property, a large amount of money is constantly rotating in the name of property. And this is a positive trend.
To buy property in India, one needs know the trend of the market of the place being considered. One also needs to be sure on the purpose of the purchase…
- Residential property or commercial?
- Purpose of the property?
- Plot of house or flat?
- Which area of the city?
- What size?
- From the government or builder or on resale?
All these questions should be well considered and contemplated; because money invested here is not like going to a mall and picking up a shirt. The rates of property in the country, are fluctuating rampantly. In fact, in Pune, the upward swing seems to be happening on a monthly basis, with some construction appreciating by Rs. 10 to Rs. 50, per square foot, almost every fortnight.
The market is so volatile that the recorded rates need to be re-written ever so often. Most publications in fact find it difficult tracking the dates, especially the monthly magazines. And this positive trend is something that is expected to continue for approximately the next two decades.
All said and done, for investment purposes, property can be safely regarded as the wisest form of investment. But for people with limited resources, it is a property only to cover the head. If one is looking for a place to live or open a shop or showroom, getting it financed is a smart option. It is helpful, easy as well as saves a lot from the income tax department.
Property that falls between industrial and residential is known as commercial property. Commercial property is much hyped about in metropolitan cities. The government sometimes even provides incentives to promote these areas. Subsidies, tax exemptions and more are provided to welcome commercial property buyers.
As India has opened its doors to globalisation, the property market is getting aligned to the international market. Hence the trend that emerges on the global front seeps down into India.
In the 60s Central Business Development areas were heavily in demand as commercial property. As there were too many takers and a few sellers, exorbitant rates were charged. Including heavy advance and one sided terms and conditions. Today the rent has fallen 30-40 percent below the actual charges.
Besides CBDs in the central area builders have begun to present commercial developed property in the suburbs too. This has evoked a resounding success. Hence today Nariman Point and Fort are no doubt the CBDs but focus has shifted to Parel, Dadar and recently to Andheri-Kurla Complex. Commercial plazas are outselling on a regular basis and huge conglomerates have set themselves here. However with many projects nearing completion at the Andheri-Kurla Complex, the supply is going to surpass demand bringing down the leasing fare in this area.
Today, commercial property with an international look is more in demand. Hence old property with a dilapidated look is not on the wanted list. Realizing this, builders are giving their constructions a grand look. Commercial property with a high-tech Grade A look is in demand in Gurgaon. Facilities like 100 percent power back up, fire fighting and security systems are inclusive have to be inclusive to make the property get ‘in demand’.
Commercial property has grown in importance with substantial increase in benefits. Even foreign citizens have entered the commercial property business. However they are subject to a few conditions before they involve themselves. Besides payment legalities, letting out of property and repatriation have to be adhered to as per the RBI guidelines by any NRI.
