Property News Ahmedabad

Real Estate Companies in Ahmedabad

2014-11-14T12:20:00.000+05:30

The major players in Ahmedabad’s real estate sector

Ahmedabad is going through a state of transition with the skyline changing every day. Let us look at some of the major real estate players of Ahmedabad.

Parshwanath Construction established in 1967, has been associated with 123 projects, including commercial projects like Parshwanath Business Park and residential projects like Parshwanath Metrocity. Pacifica Companies established in 1978 has regional offices in major Indian cities as well as operations in the US – it is known for projects like Green Acres and The Meadows. Goyal and Co. Established in 1971, has completed more than 165 projects, including Titanium and Royal Orchid.

Amrapali Infra-Con is known for projects like Amrapali Lakeview Tower and Amrapali Axiom. Shreem Group of Companies has projects like Anant Dreamz and Anant Swasthi to its credit. HN Safal has built commercial projects like Orchid Centre and residential projects like Safal Parisar. Projects like Shivalik Abaise and Shivalik Satyamev belong to Shivalik Projects. The Sandesh Group and Savvy Infrastructure are other major players in Ahmedabad’s real estate scene

A leading company in Ahmedabad’s real estate development is Adani Realty – with the iconic township of Shantigram, Adani Realty has really left a mark. Shantigram is spread over 600 acres, offering both apartments and villas in a pristine environment with 80% open area and 50,000 trees. Adani Realty has gone beyond opulence by combining social responsibility with environmental consciousness to create a township with modern retirement homes focused on inclusiveness, eco-friendly measures like solar streetlights, rainwater harvesting, etc. – all this goes to prove that Adani Realty is a mature developer, looking at the future. Adani Realty’s operations extend beyond Ahmedabad - Western Heights in Mumbai is 29 storeys of luxury apartments, with the most modern design.

With such quality developers, Ahmedabad is set to transform into one of the best cities of India, if not the best!

GIFT, Ahmedabad – A detailed analysis!

2012-11-03T17:46:00.000+05:30

The international award winning Gujarat International Finance Tec-City (GIFT) has been creating a buzz for quite some time now.

With various theories about its plans of development and/or getting shelved floating around, it is hard to say if Ahmedabad is going to be bestowed with this “GIFT” or not!

As evident, the GIFT project is highly ambitious… and will certainly take Gujarat to the level it is trying to reach at the global front.

But, this project showcased as a global finance centre has to overcome several hurdles to realize its ambition…

For those who are venturing into an unfamiliar territory, here is a quick brief --

GIFT;

ü Has been showcased in various national and international events as Gujarat’s response to other global finance centers…

ü Boasts of its tallest building, over 400m high, the so-called Diamond tower, overlooks a quiet flowing Sabarmati, and dwarfs the 125 other buildings planned around it.

ü Looks like what it is supposed to—a city for the future; a new business hub in India; and a worthy rival to Mumbai.[Courtesy livemint.com]

With Ahmedabad already having a lot of new upcoming real estate projects in its kitty, it is feared that GIFT Ahmedabad will end up as just another incomplete real estate project too.

A couple of years ago, Maharashtra pompously announced a similar project only to shelve it later on.

The project, which is currently witnessing the construction of two towers, is anxiously awaiting approval for its ambitious plans by the Airports Authority of India because of the high-rise’s proximity to Ahmedabad’s Sardar Vallabhbhai Patel International Airport.

If you are wondering how such similar projects have been successfully completed in fancy cities like New York or London, according to the Economics professor at IIM, Ahmedabad, the reason simply is the problem of land availability.

Of course, rampant corruption amongst our government offices where it is really really difficult to get approvals and passing(s) done is another factor one must consider.

Gujarat International Finance Tec-City (GIFT) Co. Ltd was formed in 2007 as an equal joint venture between Infrastructure Leasing and Financial Services Ltd (IL&FS) and state-owned Gujarat Urban Development Co. Ltd (GUDC).

The project was conceived to build a finance city near the state capital of Gujarat, Gandhinagar. The estimated cost was more than Rs.70, 000 crore.

Although the project sounded ambitious, and very impressive; a township spread over 25,000 acres; office buildings in 880 acres; projected revenue of $1 billion (around Rs.5, 500 crore today) by 2011; 500,000 jobs; all agreements were scrapped following the expiry of their validity six months later.

Of course, the blame game between officers and the company for the delay and financial irregularities has been going on like musical chairs with no result being derived…

Today, after all this confusion, GIFT is getting ready to stand up once again. The uncertainty is long gone and resources, apparently, are being allocated in a more organized and systematic manner….

Like, according to some internet reports, of the Rs.70, 000 crore cost, Rs.3, 710 crore has been allocated to core infrastructure including water bodies, river tunnels, roads and bridges; Rs.25, 000 crore to real estate; and Rs.30, 000 crore for utilities such as power generation, cooling systems and data centers.

...Now, it is awaiting funds from investors. The Gujarat government rejected its demand for Rs.2, 000 crore as the former is not authorized to make budgetary allocations for a real estate projects.

It is said, that GIFT city will also house a financial services-based multi-services special economic zone in 250 acres. The Board of Approval (BoA) for SEZs has approved an International Financial Services Centre (IFSC) at GIFT, the first of its kind in India.

Being located in an SEZ, this will be deemed on foreign territory for export and import transactions.

This move, happening in our own Gujarat, will for the first time, enable Indian companies to raise funds for overseas acquisitions from banks and financial institutions set up in the GIFT city project.

…As for now, let’s just hope things go well for GIFT. Now this is what we call ‘development’!

7 BIGGEST REAL ESTATE MISTAKES

2012-11-02T12:44:00.000+05:30

Property News Ahmedabad has always gone beyond conventional real estate topics and has believed in writing on a wider variety of subjects than usual.

This time, we have compiled a list of common mistakes we tend to make while buying and selling homes… Hopefully, reading this list carefully will help you avoid inconvenience during any sale or purchase you make!

1. Buying a House for Its Decor

The first thing you need to do when you walk in to a home is ask yourself… “Are you going to buy the house or the furniture?!” The more practical thing would be to focus on the floor plan or square footage rather than get carried away by fancy curtains or designer tapestry (which can be changed unlike floor space!)

2. Waiting Until Diwali to Buy / Sell a House

As we all know, Diwali means much more than the festival of lights in India…! Diwali means best prices, best discounts and best demand… it is easily the busiest real estate activity period… but that does not mean you shouldn’t buy or sell a house for the remaining 364 days!

3.Trusting Advertisements Blindly

An ad is not gospel truth! We all know that! And we really must learn to read between the lines... for example cozy signifies “small” and not “warm” when it comes to real estate. Like it is said, if it sounds too good to be true, it probably is!

4.Buying/Selling solely based on the “Price”

Just because the value of a home increases with time, it is not wise to buy the most expensive house on sale! The same goes for buying the least expensive house too! Price does not guarantee quality and vice versa!

5. Seeing the House Only Once

Generally, it is assumed that touring the house once is enough to get a real feel. However, it is important to view it at different hours of the day... during different days of the week. This will give you a good idea about its lighting, the neighborhood and so on…

6. Rushing Major Renovations Before Selling

Repairs and minor upgrades are understandable... but renovating and reconstructing the whole property before a sale – or even worse – simply for a sale, is something which we would not really recommend! Let the buyer fix the house the way he wants… its best place to spend money on the outside. Research shows that increasing the curb appeal often returns the most value on your money.

7. Buying What You Want, Not What You Need

One of the biggest mistakes we make while buying a home is buying something you ‘want’ rather than something you ‘need’! Why not add and subtract what you need on a piece of paper to get a good idea about how much you can stretch yourself.

WHO HAS BEEN BUILDING AHMEDABAD?

2012-10-31T18:26:00.000+05:30

The Forbes Magazine has tagged Ahmedabad as one of the fastest growing cities in the world with a vision of global stemming powerhouses. For the city which has been synonymous to the term ‘development’, there have been a few builders who have played a vital role in our ever expanding high class infrastructure.

There are many many more who deserve to be on this list, but here are a few of the one’s in the limelight for the right reasons!

1.Swagat Group:-

Swagat Group has been focusing on constructing luxurious bungalows, villas, condominiums and residential complexes from high end to affordable housing and commercial cum office establishment.

In the journey so far, the group has successfully completed with a total constructions area of around 60 lakh sq ft and boasts of having more than 6000 valued customers.

The projects stand today as hallmark of quality, carving a special position for the group in the hearts of their customers.

2.Bakeri Group:-

The Bakeri group is a firm that believes in optimum utilization of resources and conserving energy. It has always focused on building affordable edifices that promise to redefine the way the buyer lives. Bakeri has been designing its projects keeping in mind the average population rise. The group has landmark projects like Sakar series, Shilip, Suramya plotted development and Shrinandnagar in its kitty.

3.Shree Balaji Group:-

Under the dynamic leadership of Ashish Shah, Shree Balaji Group is scaling a new horizon of excellence. Amongst its innumerable projects are Shree Balaji Agora Mall, Shree Balaji Green Valley, Shree Balaji Villa Patan, Shree Balaji Heights and so on..

4.bSafal:-

Founded in 1995, bSafal has always been centered around on simple mantra – “know your customer as well as you know yourself”. From simple product features to entire residential complexes designed around a basic need, b Safal has stood true to its mantra and delivered magic every single time. Some of the ongoing projects of the group include Parishkaar I and II, Paarijat Residences, Samprat Residences and so on.

5.Adani Group:-

Since its inception as a trading house in 1988, the Adani Group has diversified into dynamic business groups such as infrastructural development and FMCGs.

A pioneer in international trading and infrastructure development, the Adani Group is continuously engaged in maximising potentialities by synergising its multiple businesses.

After proving their mettle in high growth sectors like infrastructure, global trading, logistics and energy, it is their constant endeavour to deliver high returns to their stakeholders. And in the arena of Real Estate, leading the way in Ahmedabad is the Adani Group, with over 600 acres of luxury called Shantigram.

Shantigram is being developed as an integrated township, by Adani Township & Real Estate Company in association with Saumya Construction Pvt. Ltd.

6.Pacifica Companies:-

Pacifica, the real estate conglomerate is an inspiration powered by fresh ideas to reposition real estate, shape new boundaries of reality and innovate continually. Founded in 1978, Pacifica has always been a signature statement of global life spaces. It is due to this unequaled expertise in developing great ideas that has gained global recognition.

7.Sun Builders:-

During the three decades of glorious track record, Sun Builders Pvt Ltd has set numerous landmarks etching a concrete name for itself in the progress of Ahmedabad. With avant garde approach and cutting edge expertise in designing bricks into impressive residential spaces, splendid commercial properties and plotted communities the group has successfully completed nearly 40 prestigious projects in Gurukul, Drive-in area..

8.Deep Group of Companies:-

Deep Group of Companies, a front runner company mainly engaged in construction as well as development of real estate business in Ahmedabad and surrounding areas since 1980 has adopted “Indraprasth” as a brand name! Their upcoming projects include Indraprasth 8, Indraprasth 9, Indraprasth Corporate, Heliconia and Al-Burooj.

SAFETY TIPS FOR REAL ESTATE AGENTS!

2012-10-30T18:12:00.000+05:30

Our blog has always and mostly talked about property related news, properties in Ahmedabad, latest trends in real estate and so on…

But, there is one very important topic – related to real estate – which we tend to overlook; and that is Real Estate Agent Safety.

In our country, there are many who choose to become real estate agents… the commissions are high and people are always going to look for a place to live; so the workflow is good too.

But, we cannot forget, that these agents; men and women alike have certain risks attached to their work.

Firstly, being a real estate agent is not a ‘desk job’. It involves a lot of ‘house showing’.

These houses can be located anywhere.. and might need showcasing at any odd hour too!

However, with a number of agents being raped, robbed and murdered while showing homes and other properties, it is necessary to be up to date with security tips. Better armed than sorry….

A lot of real estate agencies have implemented safety measures for their agents, however, at an individual level – there are many things you can do to minimize the risks of an attack on yourself.

1. Verify the identity of your client:

You should always ask for a cell phone number and id proof before entertaining a client. To verify, call the cell number at a random time! If it is going to be your first meeting, ask for a scanned copy of his or her id proof to be mailed to you in advance.

2. Do not meet unknown customers at a property:

Never meet a potential customer directly at the property. Follow the first step to avoid unnecessary hassles later on.

3. Leave a soft copy of your schedule for the day…specifying which property you will be viewing with whom:

Give someone in your office an itinerary of properties you plan to show and tell them to check in as often as possible by calling you. You can also use certain pre-decided ‘code phrases’ to alert your office about uncomfortable situations or emergencies without your customer knowing what you have communicated.

For example – “help!” can be communicated by using the code word “please check the red file on my desk…” This will alert your office which will then head out to help you.

4. Insist on using your own car for viewing properties:

Never get into a car with someone you don't know. Use your vehicle for showings or ask your customer to follow you in another car. If by any chance you encounter a threatening situation while driving, either hit the brakes hard suddenly of purposely ‘create’ a minor accident… this will create public attention giving you time to report the attack or escape. Remember to be as noisy as you can.

Finally, pay attention to little things like keeping your cell phone on vibrate mode to avoid detection; keeping the local police station’s number on speed dial, carrying pepper spray of a small pocket weapon for self defense, letting your customers enter a room while you stay by the door and paying good attention to exits.

In such matters, there is only little knowledge can do.

One needs a strong presence of mind and an even stronger instinct. Be sure to trust your instincts… if you feel uncomfortable about a person you have to work with, alert your office immediately!

Never compromise with your safety! Hope you stay alert and vigilant at all times…

COMMERCIAL INVESTMENTS...

2012-10-29T18:15:00.004+05:30

There's an old joke in commercial real estate: If you think nobody cares you're alive, just miss a few mortgage payments!!!

Investing in commercial property is not something we think of doing easily. When we hear the word investment, normally the first thing which comes to our mind is a home. After all, shelter is one of the primary needs of man.

It is quite natural to start out investing in a home, as we are more accustomed to the same – but with the demand for land increasing with each day, commercial property too would be a sensible option for a secure future.

Firstly, a commercial property is always valued differently… and more than a residential property because the income that it produces is directly related to its usable square footage.

Secondly, the cash flow is much more in commercial investments and their leases are generally much longer.

Thus, if you ask a real estate professional about the benefits of investing in a commercial property, chances are that you will trigger a monologue on how such properties are a better deal than residential properties!

To start with, there are three ways to invest in commercial real estate:

1.Buy office space from a developer

2.Buy shares of a commercial developer from the stock market

3.Invest in a real estate fund focused on commercial real estate.

Before plunging headlong into a deal, one needs to weigh one’s options well.

You as an investor must first verify and establish the location and its demand-supply and other market dynamics. This is very essential to ensure a smooth and profitable investment.

It is also a must to verify the credentials of the developer, quality of construction and management, access to public areas, connectivity and potential for future growth.

Whether you intend to use the property or simply purchase it as an investment, these factors will only ensure higher returns in the future…

If you are just investing with the motive of ‘extra income’, you must be careful about --

1.The break-up of cash flows

2.The vacancy factor

3. Miscellaneous expenses like maintenance, property tax and building insurance

4.Lease term, lock-in period and expiry dates

5.Long term capital appreciation potential

6.Refurbishment, refinancing and re-positioning potential

[source : DailyBhaskar]

The biggest reason why you should be looking at commercial investments is that the rental yield it gains is usually 9-12% compared to 3-4% for residential properties.

According to news reports, in 2010, the demand for office space across India was 30 million square feet – 50% higher than it was in 2009. Today, the demand is much higher!

…After all, the pride of ownership, benefits of longer leases, and the cash flows… isn't it good enough to invest?!

After all, investing in commercial property is a high-adrenaline and high-returns game that residential real estate investment does not always guarantee!

FACEBOOK MARKETING TIPS FOR REAL ESTATE PROFESSIONALS

2012-10-26T14:55:00.001+05:30

Before we being with the ‘real’ marketing tips for real estate professionals, here are a few amazing facts about the social networking giant – Facebook – which prove why it is still one of the most sought after marketing strategies!

1. Monthly active users now total 901 million (up from 680 million a year ago)

2. One in 7.7 people in the world have a Facebook account.

3. Daily active users are up to 526 million (up from 372 million last year)

4. Monthly mobile users now total 488 million

5. Eighty-three million monthly active users accessed Facebook solely from mobile in the month ending March 31, 2012

6. 300 million photos are uploaded to the site each day

7. 3.2 billion Likes and Comments are posted daily

8. Hosts 125 billion friendships

9. Facebook hosts 42 million “Pages” with 10 or more likes.

It is a known fact that many businesses have thrived thanks to this giant social network, including Real Estate professionals. However, in order to win a game, you must not only learn the rules but stick to them as well!

This article is for those Real Estate professionals who wish to take their Facebook pages to the next level.

1. Your Facebook page should be easy to remember and must have your brand name in it. For example, our page is called ‘Property News Ahmedabad’.

2. It is always wise to add real user testimonials, acclamation achievements and awards to your page. This is more appealing to your page visitors; and it immediately interests them!

3. Videos work wonders! If you have a good video showcasing your skills and work, you need not put it into words! Make a good video and upload it to your profile.

4. Start with a bang! Play quizzes, photo caption contests or offer discounts on popular products to those who follow and participate actively!

5. Hyperlink parts of your page to your website. This will increase traffic on the page. You can also add excerpts of your website and share with members.

6. Your profile picture should contain the main logo or identifiable symbol of your business.

7. You can use the “YouTube for Pages” app to share your YouTube videos on your Facebook page.

8. Always post useful, authentic and up-to-date information. People like to read ‘quality’ rather than ‘quantity’.

9. It is always a great idea to sometimes share non – work related leisure material like fun events or bizarre news! It makes a good change!

10. Blog. Regularly. And connect your blog with your Facebook page.

11.To engage your fans with your posts, share questions and encourage them to comment.

12.Once you get a good response from your fans, make sure you manage to hold it by replying regularly and promptly to their comments / queries / suggestions and the likes.

Facebook is a very rich marketing medium that is loaded with great features. It would be unwise to not use it to its potential! What say you?!

TENANTS – INVESTMENT OR HASSLE?

2012-10-25T18:15:00.001+05:30

With MNCs, Corporate Houses and Institutions luring us away from our homes to larger, more progressive cities, PGs and rentals have gone up significantly in the last few years. In earlier times, when cave men existed, people went looking for food… today; people have to go looking for work!

At the same time, he needs a place to stay … a place which is light on his pocket, fulfills his basic requirements and also ensures he does not miss his family!

Thus the concept of ‘PGs’ and ‘tenants’ clicks really well.

However, not many know that in order to keep tenants in one’s house legally, it is necessary to follow certain steps. For example, once a home is rented out to tenants, it will be treated as ‘commercial’…meaning electricity bills, water bills, municipal taxes and the likes will all have to be paid at commercial rates.

Although there are thousands of homes today in various cities of India which fail to register legally and pass themselves off as ‘residential properties’. They do not have the required permissions or licenses. They might get away with these tricks but when it comes to requesting legal intervention due to tenant problems, they fall in their own trap!

Everyone is looking for an easy way to earn money – and what better way than renting out our property? It gives you monthly returns… and if you’re lucky, your property is taken care off too!

But like everything in this world, renting out your property also comes with its list of pros and cons. Let us try to examine some of them…

First and foremost, the extra income generated is the primary pro to renting out a home. You can ask around, do your homework and determine the best rent you can ask for your property. The rent also depends heavily on the facilities you provide.

The next benefit to renting out a home is the advantage of having someone look after it! It is always better to have someone maintain the property than let it lay unused and gathering dust.

Sometimes, if you’re lucky, for a small rent concession, your tenant might also be willing to do your odd jobs… like cutting the grass, shoveling snow, weeding, painting, cleaning and many other routine maintenance items. This is not a written clause and depends solely on your personal ‘people’s skills’!

On the down side, renting out part of your own house might cause you loss of your private life.

And the biggest con of renting out your house is something every land lord dreads – bad tenants! Imagine, if your tenant turns out to be a nightmare with loud music, bad smells or even simple sloppiness… you might face complaints from the society concerned.

Remember to always check the local ordinances and laws prior to renting out a room in your home or a home in general.

Some jurisdictions may frown upon this practice... especially in a country like ours… and the last thing you need is a possible fine or getting in trouble with your authorities.

PROPERTY DISCOUNTS - FOR REAL?

2012-10-20T17:44:00.001+05:30

With the most festive part of the year around the corner, the first word which comes to our minds is ‘discounts’! From groceries to cars … from clothes to homes… no matter what the commodity, it is smartly discounted to lure buyers!

“Pay 50% now and nothing up to completion of property”; “Pay full payment now for the plasma TV and get 10% off on total price!”

From buy one get one free trousers to buy home get office free at “Ummat” – the first ever property show exclusively for Muslims at Ahmedabad, no one is wasting time in offering the heaviest discounts and weirdest schemes to hit sales.

Even real estate companies and brokers have started raising their sales pitch. But are these deals for real or a ploy that developers use to raise money and to prop up sales? Read on to find out …

The real estate market in general has been struggling to keep up with falling demands since the last couple of years…and now with the festive season round the corner, everyone who had held back their grand plans of purchase during the slowdown are now looking to grab the lowest rates offered.

While banks are less likely to provide funding to developers, left with no other option, developers have to raise funds by offering existing or prospective customers discounts and interest subsidies.

According to Business Today, “burdened by debt, between 2007-08 and 2011-12, the net profit of 12 listed realty firms has declined 67 per cent, mainly due to rising interest costs.”

On one hand, developers are on a roll if they get 10 – 12% of the payment for a project… but, buyers benefit only if the project gets completed!

Read more about his here – RISKY REFUNDS.

Moreover, as the interest earned is shown as a “discount” against the property price, there is no tax liability on the buyer's part. If the money is invested in a bank fixed deposit, the interest earned is taxable.

Whether you are giving 6 installments at one shot or a ‘token booking amount’ of 10%, the more money you give to your builder, the more you are taking a risk.

There is also a phenomenon called the ‘one payment – no installment scheme’ where you are required to pay an x amount at one shot as a ‘pre-launch’ discounted offer!

Newspapers and hoardings shout out these ‘unbelievable prices’ and ‘limited discounts’ to make you run and book your home even before the project takes off!

Read more about this on - BUYING A HOME? DON'T LET SAMPLES FOOL YOU!

What we fail to see is the huge risk in investing at this stage as several approvals are yet to be taken, the project may be delayed or even scrapped.

So what does one do? Well, stay vigilant of course! Discounts do not generally indicate traps, but the real estate industry itself is full of ‘un-licensed’, ‘un- authorized’ developers who are there just to take people for a ride!

Keep your eyes open, try to find out details about the developer and his past projects… and you might find, discounts are really not so bad after all!

MAKE YOUR HOME A MAGNET!

2012-10-19T18:20:00.000+05:30

When a buyer walks into your house, the first few seconds are enough for him to decide whether he really wants to buy it or not.

…because the first impression is the last impression!

Like it is fondly and widely said for ‘food’…people eat with their eyes first; the same stands true in the case of a house too! If it doesn't appeal to the eye, you might as well forget about it.

While it can be understood that no house can be perfect, it is not impossible to try and achieve near perfection…or at least, to make a house look appealing and alluring.

Have you every toured another home? What was your very first thought … negative or positive? Mostly negative…because people tend to notice the glass half empty first.

In the same way, people tend to note the downside of your property first…does the house smell good? Is it lit up well? Are there any pet remains?

I’m sure most you must not have given this a thought.

When we purchase a home for ourselves, we put in all our time and energy in decorating it. Then why are we so careless when it comes to maintenance?

Here are a couple of things which are guaranteed to turn off not only visitors and relatives but also potential buyers or renters… These are simple things… if taken care of regularly; your house will remain good as new for a longer time.

Remember, after shopping around for the lowest mortgage rates, people tend to walk away from a house they like because it needs a few minor repairs… why give them that chance?! Keeping clean is one thing and keeping ‘in good shape’ is another…

1.Paint – There is nothing more disgusting than watching peeling, cracking, and ‘moisturized’ paint on the wall of the house you want to buy! It’s really not that expensive today…you can use your artistic side and give your house a makeover using brand new paint. Not only will it look great, it will also make your house look ‘younger’!

2.Wallpaper – Just because your great great grandmother had hand-picked the wallpaper in your drawing room, it does not need to be there for centuries…that’s not classic, that’s ancient!!! Wallpapers and tapestries get outdated and should be changed regularly… remember, wallpapers just don’t stick to walls to make them look pretty...they also give your house and ‘ambience’!

3.Cabinets and Showcases – Cabinets and showcases highlight your most priced items. It would be a good idea to highlight them too! It is always a great idea to paint and re-paint showcase borders or cabinets every few months to keep them looking good as new. Using neutral colors is a great option if you do not wish to spend a lot of money…

4.Unfashionable / Outdated furniture – There is a thin line between fashion and bizarrely crazy; and that line mustn't be crossed! Ancient stuff looks cool as long as its placed aesthetically.. or the house is of a particular theme… otherwise it is nothing short of an eye-sore. Period.

5.Windows and Doors – Windows and doors are probably the first things people notice when they enter a room. They must be well maintained and well painted at all times. Glasses which are broken or cracked should be replaced immediately. It is windows and doors that are responsible for lighting up or keeping the house in the dark. Be careful about choosing good curtains and drapes too!

RISKY REFUNDS!

2012-10-17T18:16:00.001+05:30

When Bhavesh Patel booked his dream home with an upcoming project near S G Highway, Ahmedabad, he wasn’t expecting anything to go wrong!

When he invested, he didn’t see what was going hinder possession of his dream home. The slowdown in the economy has directly and/or indirectly affected the real estate market greatly.

Thus, as expected, the project he invested in got shelved. The result – indefinite delays, loss of money and not to forget the frustration he is going through.

This is the story of thousands of people who are left helpless and frustrated because of delays. The worst thing is that they do not get any refunds on the hard earned money they have paid for their dream home! There hasn’t been one day Bhavesh has not followed up for his refund … or tried to meet the builder. Unfortunately, that does not seem to be working.

When stuck in such a situation, there is hardly anything one can do. One – court case; Two – out of court settlement by networking with similar victims; Three – Accept the delay; Four – cancel the booking and claim for a refund.

Most people prefer the last option for obvious reasons. The catch is that there is hardly a case where the full amount of the deal is returned.

What is becoming a matter of great concern is that there is no law – no norm which binds such refunds of cancellations. The amount refunded eventually varies from builder to builder. Refunds basically depend on three factors—developer's agreement, reason for requesting the refund and the market situation.

So, what does one do?!

Builders tend to ‘charge’ more money in the name of ‘registration’ by demanding Rs 10,000-50,000 to facilitate the process. This is besides the stamp duty and legal registration costs.

The law, on the other hand, has no rules and laws for this and it is universally agreed that once signed, one is legally bound to follow the agreement.

To avoid getting stuck, it is recommended to pay the booking amount by cheque rather than cash. This will ensure receipts.

Another handy tip is to approach the builder with a valid reason for backing out of the property and claiming the refund. It is found that developers are more open to humanitarian grounds rather than other things.

Most importantly, one must be very careful of the agreements and papers and their authenticity. These must be clearly read and verified.

If your builder is unable or is not refunding your booking amount, you can request shifting to a complete project by the same builder. Many people are accommodated in this manner.

If you’re heard the phrase ‘majority wins’, you can make the phrase work in your favor too! Look around for people in a similar state and negotiate hard as a group.

The bottom line: when it comes to refunds, there are no rules and you'll have to fight it out with the builder. But if you do your homework well, you can give a good fight.

Here are a few handy tips, from various sources of the internet, to keep you safe from such traps --

Familiarize yourself with the sale deed before going to developer.
Give a good reason for withdrawing from a project; financial problems work best.
Consider shifting to another property by the same builder.
Network with other buyers in the same project.
Ask the developer for a written document specifying the deduction.
Don't pay cash while booking the property and ask for a receipt. Use cheques.

REALTORS® v/s AGENTS

2012-10-17T18:15:00.002+05:30

For many, the two terms “Realtors® and Agents” mean the same thing!

Actually, that’s not the case.

People tend to use the term Realtors® and real estate agents interchangeably, but that is incorrect.

These two words which are spelt differently and sound different also have different meanings!

Although both terms are licensed to sell real estate, the basic difference is that a Realtor® is a member of the National Association of Realtors® while a real estate agent is not.

The National Association of Realtors®, was founded in 1908, and has more than 1 million members all over the world. These Realtors® are expected to subscribe to the Realtor® Code of Ethics.

The Realtors® code covers ethical requirements that deal with all the aspects of the job, from working with consumers and fellow agents to writing truthful advertising. This code is strictly enforced on Realtors® and contains 17 articles and standards of practice.

While there is no evidence or guarantee that all Realtors® are morally or ethically better than real estate agents, it is an attempt by the industry to regulate and monitor the events and happenings of the real-estate industry.

Here is a list of certain noteworthy things that a Realtor® can / cannot do that normal real estate agents generally are not seen adhering to :-

1) They have to take a pledge stating they will always put the interests of their customers and buyers or sellers before their own and address them with honestly and integrity.

2) They must not exaggerate / brag / misrepresent or conceal any important facts while the process takes place.

3) They must be cooperative with other brokers / agents when it is in the best interests of the client to do so.

4) They cannot provide professional services in a transaction where the agent has a present or contemplated interest without disclosing that interest.

5) They cannot charge a commission or accept fees from a third-party without the seller's express consent or knowledge.

6) They cannot mix their funds with their client’s.

7) They must ensure that all documentation regarding the deal is comprehendible and easily accessible to clients.

8) Members cannot discriminate against someone on the basis of race, color, religion, sex, handicap, familial status, or national origin.

9) Realtor® must be competent, must conform to standards of practice and must not under any circumstances provide services they are not qualified for.

10) Must be honest about advertisements and listings.

11) Must not practice law unless they are a lawyer and must cooperate if charges are brought against them by another individual.

12) They also cannot solicit another Realtor’s® client(s) nor can they interfere in a contractual relationship.

THE A TO Z OF LOANS…

2012-10-12T18:28:00.001+05:30

Loans. We all know what loans are and how relevant they are in today’s world. Everything is getting ‘crazy’ expensive while salaries remain stagnant. Needs and demands know no limit and thus we all at some point in our lives resort to good old loans… credit cards or personal loans… house loans, cars loans and educational loans… we are no stranger to these terms.

This article is not going to technically explain what and why are loans or the usual finance jargon. This topic is meant to deal with other options one has instead of the normal cliché phenomenon of loaning from banks…taking loan against securities like property, assets, shares, and gold.

Where the interest rate of a personal loan ranges from 16 to 24%, the interest rates for these loans range from 12 – 14%...thus, they are much cheaper!

1. Loans Against Shares

To get such a loan-

The shares which you own should be on the approved list of your lender bank.

The shares should be fully paid up.

This is a good option for those who need to fulfill immediate financial needs while preserving their investments.

2.Loans Against Property

The minimum eligible criteria which you need to fulfill to get this loan are -

Your income, savings, debt obligations

Cost/value of the property mortgaged

Your repayment track record for other loans, credit cards, etc.

3. Loans Against Gold

Gold loans are easy to get at low interest rates. All your need to do is, to pledge your gold ornaments or coins to banks or financial companies.

4.Loans Against Fixed Deposits

Instead of breaking fixed deposits, one can opt for taking loans against them. Usually, banks lend up to 75% to 85% of the deposit amount as loans with a rate of 1% – 2 % interest higher than the one of the FD.

5.Loans Against Employers

Sometimes, you can also approach your employers for providing you loans while adjusting the repayment in salary. One can also request for a cash advance on salary, in case of urgent financial needs. No paper work, no interest rates.

Loans against securities are easily payable, have low rates of interest and are convenient for small to medium to large requirements.

Generally, these loans do not require tedious documentation or complicated paperwork and are fast, clean and efficient.

The most important part about such loans is that they provide us with only a fraction of the market value of the asset as a loan….and thus are flexible.

…But the bottom-line is, that a loan is at the end of the day, a debt and must be taken cautiously!

ONE HOUSE. MANY LOANS.

2012-10-10T17:56:00.000+05:30

In lieu of buying homes, people went to the extent of breaking fixed deposits, emptying provident fund accounts and what not…

…And, now, considering how real estate prices have gone up 3- 4 times than what they were a couple of years ago, we feel it was worth it!

If you already own a property, celebrate! You’re a real-estate crorepati!

Today, there are several options to earn from and unlock the value of property…!

Did you know there are more than one types of loans which you can take on your property?! There are a lot of banks stumbling over each other to offer mortgages…at interest rates much lower than other loans.

As for the other methods, here is a quick list of 8 ways that will help encash your house –

1.Home Equity Loans – can be used for anything—education, medical costs, marriage, starting a business etc. The tenure is up to 15 years, interest rate 13-14% and the amount is 50-65% of the current value of the property.

2.Home Improvement Loans – can be used for the internal and external repairs or the extension of your existing home structure by adding a storey. The tenure is up to 20 years, interest rate of 11 – 13% and the amount is 85% of total property for extension and up to 100% for renovation.

3.Short-term Bridging Loans can be used for the interim period between the sale of an old house and purchase of a new one. The tenure is up to 2 years, interest rate of 12 – 14% and the amount up to 90% of the total cost of the new property.

4.Property Overdraft Accounts which can be used for any purpose at the discretion of the borrower. The tenure is 5 – 10 years, interest rate 13 – 15% and the loan amount up to 65% of the total value of the property.

5.Top-Up Home Loans can be used for anything. The tenure is up to 20 years, interest rate being the same as the one on the home loan and the amount up to 70 % of the total property value minus the outstanding amount on the home loan. If you are still in the process of paying EMIs on your home loan, you can take a “top-up” loan.

For example –

User A loaned Rs 30 lakh at a 12% interest rate for 20 years...and has repaid regularly for 3 years.

Considering that the current value of the property has gone up to Rs 50 lakh, 70% of its total value, which is the maximum limit of the top up loan, would be – Rs 35 lakh.

Now, the outstanding loan amount is deducted from this, in User A's case, three years into the loan User A would have repaid a principal amount of Rs 1.31 lakh…thus the remaining amount would be Rs 28.7 lakh.

Thus, Rs 35 lakh – Rs 28.7 = Rs 6. 3 lakh.

This is the maximum top up loan amount User A is eligible for.

6.Home Con Version Loans can be availed for acquiring another property by selling the present one. The tenure is up to 20 years, interest rate the same as the home loan and the amount depends on the cost of the new property.

7.Loans against rent, once again, can be availed for any purpose depending on the needs of the borrower. The tenure is up to 3 – 5 years, interest rate of 13 – 15% and amount up to 80% of the total rent receivable over the lease period.

8.And, finally, Reverse Mortgages which too can be used for any purpose. The tenure is 10 – 15 years, interest rate 11 – 14 and the amount up to 65% of the current property value.

...But, the bottom line in bold letters is that we mustn't treat our homes like a ‘cheque book’. Mortgage loans or top up loans... At the end of the day they too are debts!

THE WORLD'S SMALLEST HOUSES!

2012-10-06T18:39:00.001+05:30

The approximate size of an average house is around 500 square feet. Sounds small? It is!Imagine, if you were given about 100 square feet of land, and the liberty to fit in all that you have in your house, what and how much do you think you could fit in? Would you be able to set up a fully fledged working house?

…Of course, in our country, the average home size is much smaller…with Asia’s biggest slum resting in the heart of the commercial capital of India…it doesn’t seem so farfetched! …But what about the rest of the world?

A house should have a roof, walls and a bed. If you think this should be the case too, then the following list of the world’s most amazingly smallest houses would not only intrigue you, but also prove to be a welcome visual treat!

1.The smallest house in Toronto (Canada), was built in 1912. As with any “normal” house, it has a living room, bedroom, kitchen and bathroom. The total area is of only 28 square meters.

2.In the UK there is a house virtually in the same area. On the ground floor their is only a bedroom and shower, while the second one is – a living room and kitchen. It is assumed that the lodge can accommodate only one person.

3.Perhaps one of the smallest houses in the world is in the United States . Its area is only 6 square meters. the house has a kitchen with refrigerator, shower and bed, located in the attic. The set comes with the house special platform-trailer for transport.

4.This house in Tokyo is built on a small piece of land triangular in shape where the lower floor is a bedroom and bathroom on the second floor – living room, guest room and kitchen and the attic is for children.

5. More recently, in the heart of Moscow in one of the quiet lanes of the Old Arbat, a luxury residential building is appeared , consisting of just 12 apartments. It should be noted that this premium apartments is with ceilings 3.4 meters and a free plan.

6. The appearance of the smallest house in Salzburg, with a facade of half a meter in width associated with a long romantic history.Once a girl gave his boyfriend the consent to marry her, but they needed a house. The young man was very poor, but squeezed his house in the partition between two existing houses.

A PEAK INTO 'ANTILIA'!

2012-10-05T17:41:00.000+05:30

‘Antilia’- the 27 storey, 570 feet high, megalomaniac structure a family calls its home! The home boasts of a private theater, 9 elevators, 3 helipads, 6 levels of parking, an 'ice room' and a full time staff of 600 people!

This 'home' belongs to the chairman of Reliance Industries, Mr Mukesh Ambani and gets its name from the mystical legendary island in the Atlantic Ocean.

The house has naturally been the center of not only a lot of controversies and attention but has also gained a lot of negative publicity from the media.

...Right from being alleged of being built on the land belonging to an orphanage to black money transactions and corruption to helipads violating noise laws to complaints about illegal cark parking...Antilia has seen it all!

The city of Mumbai, which shelters the continent's biggest slum, is now known to house this megalomaniac structure too... (which looks amazingly ugly on the outside.) If you're wondering how huge this house measures – 4,00,000 square feet!

The house has been termed as a perfect example of the rich-man's lack of empathy for the poor.

However, one can be rest assured that on the inside, building known as the most expensive house in the world is nothing short of magnanimous and beautiful... The plush interiors boast of high quality of construction, and no two rooms in the house look the same... But the Ambanis haven risen far above all this.. 570 feet above to be precise!

Morally, we must not comment .. to each his own!

...Of course, we all must over look the fact that a couple of months ago, just after the completion of the house, the Ambanis were downright terrified of setting foot in there because it did not follow 'Vastu Shastra' rules – something so important to them which they had somehow overlooked while the house was being built! Now that all is hunky dory, lets take a sneak peak into the 4,00,000 square feet home, which can also resist an 8 richter scale earthquake, and houses a family of 6 and 600 staff members!

27 FLOORS: According to the plan, the house will rise to a height of 173.12 meters,
equivalent to that of a regular 60 -storeyed residential building . However, Antilia will
have only 27 storeys in all.

SIX FLOORS FOR PARKING: The first six floors have been reserved for parking alone,
and that too for cars belonging only to Mukesh's family. Space for a total of 168 imported
cars has been earmarked here.

ENTERTAINMENT FLOOR: The eighth floor has an entertainment center comprising a
mini-theater.

BALCONIES WITH GARDENS: The rooftop of the mini-theater serves as a garden, and
immediately above that, three more balconies with terrace gardens.

THE HEALTH FLOORS: While the ninth floor has a 'refuge' floor - meant to be used for
rescue in emergencies - two floors above that have been set aside for health. It has facilities
for athletics and a swimming pool, while the other has a health club.

FOR GUESTS: There are two-storeyed glass-fronted apartments for the Ambani family's
guests above the health floors.

FAMILY: The four floors at the top, which provide a view of the Arabian Sea and a superb
view of the city's skyline, are designed for Mukesh, his wife Neeta, their three kids and
Mukesh's mother Kokilaben.

AIR SPACE FLOOR: Two floors above the family's residence have been set aside
as maintenance areas, and on top of that, there is an 'air space floor,' which acts as
a control room for helicopters landing on the helipad above. There are three helipads there.

STAFF: Nearly 600 full time staffers work in the building.

COST: This house came with a Price Tag of Rs.4000 crore for 6 people and 600 staff

WRITING A WILL?

2012-10-04T15:57:00.003+05:30

A couple of weeks ago, we had published a post on the benefits of having a will in – ‘Where there is a will, there are no hassles.’

…Now that you know WHY you should write a will, here is a post on HOW to write one! We have tried to cover every dimension there is to the phenomenon we call a ‘will’.

As you might already be aware, in the absence of a will, the said property is distributed equally among the deceased’s heirs according to legal succession laws…which wouldn’t always work in everyone’s favor.

Would you want your prized possessions sold and the proceeds distributed among your heirs according to a bunch of pre-written succession laws and not as per your wishes? Certainly not!

Thus, once again, the fact that a will is important is stated.

…And while we are at it, a will is all about ‘assets’ and their consolidation. If you invest and buy properties without taking your family into confidence, they will have to scour through heaves of papers to know your legacy! Thus, it is very necessary to manage asset consolidation systematically.

There is one thing about wills that not everyone is aware of…and that is the types a WILL can be classified into --

An Unprivileged Will – An unprivileged will needs to be signed in the presence of at least two witnesses who also sign the will. This type of a will can be revoked by writing a new one or destroying an old one.

A Privileged Will is made by either soldiers, sailors or airmen who are in the battlefield or engaged in an expedition. If handwritten, this will does not need to be signed by any witnesses.

A Conditional Will, as the name suggests, has certain conditions attached to the will, ie, the assets in the will can be claimed only and only subject to fulfillment of certain condition such as marriage or attaining certain age.

A Joint will, is that type of a will which is jointly written by two or more persons together who dispose of their property as a team.

A Mutual Will is written by two individuals where one wishes to give their wealth to the other in case of their death and vice versa.

A Concurrent Will is for the sake of the convenience of those individuals who have properties in more than one country and need to execute separate wills for properties in different nations...

Thus, heading towards conclusion, a will –

ü Has no fixed format.

ü Does not need a lawyer to be drafted; and

ü Is valid only when it has your signature or thumb impression and has signatures of two witnesses certifying that it is your will.

Finally, just writing a will is not enough; it needs to be carefully safeguarded. It is advisable to register a will as it cannot be tampered with, destroyed, lost or stolen. It is also advisable to keep a copy of your will with the main beneficiary or the executor…

We are sure you ‘WILL’ keep this in mind!

CAUTION! AGREEMENT AHEAD!

2012-10-02T15:02:00.002+05:30

Purchase or Rent – An agreement is a must! While it is universally agreed that agreements are downright complicated and tedious, the fact certainly does not justify us signing without reading them!

…And while most of us do read them quite carefully, seldom to we really understand what the consequences of agreeing to certain terms can be! Here is where we can help.

Read on…

1. The builder / owner assumes your signing the allotment letter, as a fact testifying that you (the purchaser /buyer) have read each clause carefully, analyzed the legal implications and fully understand your as well as the company's obligations and liabilities.

This means you have read everything and understand everything; which is not the case many times! It is advisable to consult a legal expert before signing any such document. Negotiate hard and work on your terms.

2. If you (the purchaser / buyer) fail to execute and deliver to the company the signed allotment letter in its original form within 30 days of booking the property, your application shall be cancelled and any deposit will be forfeited without any notice or reminder.

This means, you have every right to refuse to sign an agreement after applying even when you receive a copy and ask for a refund of the deposit money. However, you may forfeit the booking amount paid with the application if you haven't taken note of this clause in the application form.

3. The purchaser / buyer has seen and accepted the plan, design and specifications of the property which is tentative and subject to approval by the authorities. It will not be necessary for the developer / builder to seek the purchaser’s / buyer’s consent for any changes made in the design or layout plan in order to comply with the government's directions.

This is one of the most dangerous things to sign without reading. This means you fully understand that layout and design plans are subject to alteration extreme modification without your knowledge. This clause is exceptional only if you purchase after the clearances.

4. The purchaser / buyer is aware of the various approvals, licenses, ownership records and all other documents related to the land title and rights of the developer. The purchaser or buyer agrees that there shall be no further investigation or objection for the same.

This means that you have received and verified all the legal documents for the project and all your queries have been addressed. For new projects dealing directly with builders, you can check with the concerned nationalized bank which they have tied up with for authenticity on this matter.

5. The super built-up area (total area of your apartment along with your share of common areas such as lobbies, corridors, service areas, staircases and lifts) mentioned in the agreement is tentative and subject to change during construction. The cost of the property is re-calculated after confirmation of the super area. If there is an increase, the buyer will have to pay the increased price on demand. If there is a reduction, the refund will be adjusted in the final installment. In both cases, no interest is payable.

Though builders try to stick to the plan, you must be prepared for a 25 % - 35 % variation in area during construction. If the area of your property rises, so will the cost. You must keep some extra money for this. This also stands true for construction and material costs.

6. If the project is delayed due to non-availability of materials or water/power, strike, dispute with construction agencies, civil commotion, war, natural disaster or notification by any competent authority or any reason beyond the control of the developer, the delivery of the flat will be extended by a reasonable time. If the developer abandons the project for any reason beyond its control, its liability will be limited to refunding the amount paid by the purchaser / buyer.

If the builder can invoke this “force majeure” clause, you have very limited options. It would be best to consult a legal expert for proper guidance!

Be cautious, be alert!

** With inputs from Real Estate Business Today

HOMEWORK FOR HOMELOANS!

2012-09-28T17:53:00.003+05:30

With banks stumbling over each other to give us loans, dreams are no longer impossible. Whether it is to buy a house or to purchase a fancy car or it is simply a personal loan, man’s needs are unending!

…And when there is an option of getting low interest and easy to pay back loans, our needs keep getting bigger.

We all agree to getting regular calls from bankers who can’t wait to lend us credit cards! Executives are sent chasing behind us to consider a loan for something we might not necessarily need!

For those who are wondering why they aren’t being hammered by credit card lenders and banks, you just probably don’t meet the requirement or eligibility criteria.

Let’s take a look at what this eligibility criteria consists of…

1. The most important thing a lender is interested in knowing is whether or not you can repay what you have borrowed with interest. Banks normally tend to gauge one’s repayment capacity above anything else. It is noted that banks actually charge a lower interest rate for employers of a reputed company compared to someone working for a smaller firm.

2. How much do you earn? Is you EMI more than 60% of your monthly salary? Then your application is likely to be rejected!
Sometimes, for similar reasons, people tend to opt for joint loans with their spouses or off springs.

3. The nature of the loan also plays an important role in the approval of you application. Home loans are considered most important as during a financial crisis, people are more likely to repay home loans than other expenditures.

4. The age of the applicant is said to be another important deciding factor. The ideal age of an applicant should be between 30 – 50 years.

5. For those who are self employed, income tax returns and profit and loss statements of the past three years need to be in order. Although policies differ from bank to bank, this stands true in general.

6. One of the most important factors deciding eligibility is past repayment records / frauds or defaults. According to the RBI all banks and lenders are required to pass on information on every credit transaction to a credit information company such as the Credit Information Bureau India Ltd (Cibil) and Experian Credit Information Company to maintain the credit history of individuals and companies.

7. Rejected loans applications in the past. People are not aware but just like past visa rejections, past loan rejections have great chances of affecting future loan prospects.

8. For a home renovation loan, consider approaching the bank with which you have an existing home loan account. If you have been servicing your loan well, your lender will be more than willing to offer a top-up loan or an overdraft facility. An existing relationship with a bank always works in your favor.

In a nutshell,

ü Be clear on property title

ü Go for a reputed developer

ü EMI should be less than 50% of gross salary/income

ü Stable career/employment

ü Margin should be 10-25% of loan

ü Good credit record

ü Identity proof

ü Proof of address

ü Get the ownership verified, if buying a pre-owned property

ü Try approaching the bank where you have a salary account

[Source: Business Today]

…Now the next time you think of taking a loan, you know how to enhance your credit-worthiness.

PROJECT DELAYED?

2012-09-27T18:19:00.000+05:30

One of the biggest reasons projects get delayed is the number of approvals, clearances and permissions the builder needs to acquire before he can begin construction! Or so we hear…!

Although sometimes genuine, a delay in the project you have invested in can make your heart skip a beat.
And today, such delays are a common sight in India.

Developers generally include a grace period of six months, in their agreement with buyers…and most of us take this type of a delay for granted. But… when the delay is even longer, things get out of control! Read on…

Mahesh Kapoor (name changed), a Delhi based professor, is among the scores of buyers left helpless and frustrated due to delay in construction of projects. Professor Kapoor invested a major chunk from his life savings in a project launched by a new builder in 2008. While the builder’s name was new, the prices of the property were extremely affordable compared to other players…

Having lived in an accommodation his university had provided all along, Professor Kapoor dreamt of having his own little home…and thus, Rs 10 lakh was paid as booking amount.

In 2009, the project was shelved. Professor Kapoor was forced to shift to the developer's residential project at another location. And that was not all…he had to pay an additional Rs 2lakh as booking amount for the apartment there.

Much to his horror, one year, and this project too was shelved!

On request for a refund, the developer offered him to pay 50% of what he had invested in total… i.e. Rs 6 lakh. The booking agreement did not have any penalty clause for delays in construction. It was loss either way. Professor Kapoor claims to have been asked to take what was offered unconditionally or fight it out in court. The later, was already a lost battle…and thus, Professor took his refund and signed an affidavit forfeiting all claims against the builder.

This is just one example…there are thousands of people who fall prey to project delays daily!

The crisis of 2008-09 impacted projects of all companies. Even though it counts as a loss on the part of the builder, it also counts as a major loss for helpless investors.

Another major reason for delays is that developers have also been facing challenges in sourcing funds. With banks tightening credit conditions for the real estate sector, developers are forced to borrow from NBFCs at 16-18% interest and from PE funds at rates between 20-24%. [Source: Business Today]

Although most of the delays are out of our control, we as investors and buyers need to be extremely vigilant and alert to avoid risk of getting trapped in a delayed project. If investing, you are entitled to as where the funding comes from… banks or foreign private equities or other investors. This way, the builder cannot site funds as a reason for the delays.

We can ask for a copy of the project's drawings, duly stamped by the municipal authorities and the construction schedule from the builder.

However, it is advisable to process the deal through an attorney rather than independently.

As far as refunds are concerned, they can be claimed if a project is delayed beyond the period stipulated in the agreement.

But the point is that unlike other financial institutions, anybody can start a realty firm...Thus, it is us who need to be vigilant.

If you are one of those stuck in a delayed project your nearest consumer court can help you out.

GO GREEN!

2012-09-25T18:34:00.001+05:30

From major deforestation cases to plaster of Paris idol immersions…from plastic to paper… from polythene to jute… to organic food and eco – friendly Ganesh idols, we have come a long way!

Slowly and steadily, we are proceeding towards reducing carbon footprints on planet earth. Our TV sets are thronged with celebs vouching for Green movements … and famous personalities reminding us to switch off the lights and save energy when we leave the room…

Yes, everybody seems to be concerned about the environment...but is only concern enough?

Here is a more concrete, more efficient way to make sure you conserve energy not only now but in the long run too… Read on!

With people becoming more and more aware, the demand for eco friendly homes is definitely up! Builders are using this as their selling point to promote sales. While lawns and trees are definitely green, they do not count as being ‘eco-friendly’. Let’s find out what eco – friendly is (and is not) all about…

Firstly, here is a peak at what Eco – Friendly is --

· Preservation and protection of top soil and landscape during construction

· Optimization of building design and structure to reduce demand for conventional energy

· Integration of renewable energy sources to generate energy

· Water and waste management

· Selection of ecologically sustainable materials for construction

· Indoor environmental quality (indoor thermal and visual comfort and air quality)

· Conservation of soil during construction and proper top soil for vegetative growth

· Renewal energy-based water heating system such as solar water heaters

[Source – Internet]

Now that we got that right, let’s take a quick look at what does NOT count as eco – friendly! [Even though people think it does!]

· Lawns. Lawns are not at all ‘green’! They consume around 4 times more water than native species! (And not to forget the pesticides and fertilizers used.)

· ‘Eco – friendly elevators’. The term itself sounds bizarre. Elevators run on electricity and thus cannot be classified as eco friendly. Period.

· “Energy saving PLASMA TV”. Plasmas are the SUVs of televisions. They guzzle two to three times more energy than other screens and are made with nitrogen trifluoride, a gas linked to global warming.

· Phrases like “Birds Paradise” or “Animal Heaven”. We come across builders who claim their projects to be ‘eco friendly’ because birds and animals are found in abundance! Well, they are found in zoos too…but that does not make the place eco- friendly.

There are plenty of examples where people do little things to make the world a better place. Whether it is celebrity Gul Panag, who is among the handful of people in India to own a ‘completely eco friendly’ – certified- home or a civil engineer; Professor Venkataramiah Jagannatha who constructed a house based on natural resources… there are ideas galore!

Here is what you can do with what you already have…

1. You can install a mini solar wind hybrid power generating system atop your house that generates electricity which is stored in rechargeable batteries. [The cost for the entire setup would be around 1 lakh].

2. Rain water can not only be harvested, but also recycled! Water which is used for bathing and washing can be collected in a separate tank after gravel treatment and stored in another tank to use for flushing toilets or watering gardens. This will reduce the demand for fresh water.

3. Biodegradable waste which is created in the house can be used as manure for plants and gardens instead of pesticides and fertilizers.

4. Use of ‘hollow clay bricks’ instead of the ordinary ones. These

provide better thermal insulation and cooling and reduce the need for heaters and air coolers.

REAL ESTATE JARGON!

2012-09-25T15:06:00.000+05:30

Jargon no matter what the field, always seems a little confusing to those who cannot make head or tail of it! Not only is it considered rude to converse in plain jargon with a lay man, the fact that we cannot understand it makes it frustrating!

A ‘super built up freehold property’ sounds great... but do we really understand what it means?

There is never a right or a wrong when it comes to Jargon, there is only one thing – “uncertainty”! Here is a list of typical real estate terms, with meanings of course, for you to ponder and register… so that never again does real estate jargon leave you confused!!!

1. “Freehold”

What we understand – “Flexibility over the property…”

What it really means - Permanent and absolute tenure of land or property with freedom to dispose of it at will. If you have ‘freehold’ you can enjoy the ownership of the property for perpetuity! Obviously, freehold property is considered more valuable than leasehold properties.

2. “Leasehold”

Leasehold properties, as we know, are properties which we take on ‘lease’ – which means temporary ownership for a specific time period with terms and conditions et al. The lease includes full responsibility of maintaining the property too. Normally, lease agreements are for 99 years after which, the ownership of the ‘leased property’ is transferred back to the ‘freehold’ owner. Lease papers can be transferred subject to terms and conditions.

3. “Power of Attorney”

We come across this term quite often. The dictionary defines this term as the authority to act for another person in legal or financial matters…or the legal document giving such authority to someone.

If a property cannot be sold or purchased due to certain restrictions, a power of attorney is executed to transfer the rights to the buyer.
It is a legal contract, which gives a person the right to manage, rent, lease, mortgage or sell property, and take binding decisions on behalf of the owner…But, the ownership of the property remains with the seller.

4. “Floor Space Index”

In essence, the floor space index refers to the ratio between the Built up Area allowed and plot area available. This depends on the plot area and varies from one locality to another based on factors such as road width. It is expressed as a ratio or the total built-up area to total area of the plot of land. For example, if the FSI is 5, the total floor area of a multi storey building cannot exceed twice the size, i.e. 10 floors.

5. “Carpet Area”

Like the name itself suggests, the term ‘carpet area’ refers to the actual usable area within the walls of the floor. In any house or apartment, the area within the confines of the walls, but not including the thickness of inner walls, is the carpet area.

6. “Super built up area”

Nor is it super, nor is it built up… but the aggregate superficial area of a building taking each floor into account…including the lifts, the corridors, the passages, staircase, external walls and projections, internal walls and partitions, columns, piers, stairwells, lift wells, tank and plant rooms etc etc etc. This is the area which is being sold by everyone today and is the center point of mis-selling…and miscommunication! Developers add the shared space and distribute it among flat owners in proportion to the area of the flat. Ideally, the common floor area should not be more than 12-15% of the built-up area.

7. “Mutation”

Mutation of a property is the entry of the transfer of title in the revenue records of the local municipal body. Since it is only for the purpose of paying property taxes, it doesn't provide a legal title to the person mentioned in the mutation records. As the state collects property tax, the procedure and fees differ among states.

TOP NEW SCHEMES AND UPCOMING PROPERTIES OF AHMEDABAD

2012-09-20T12:35:00.003+05:30

The rapidly progressing and ever developing Ahmedabad is brimming with new construction projects and housing schemes. With more than 75 new projects seeing completion in the next two years, one finds it hard to choose one.

To make this simple, Property News Ahmedabad has shortlisted few schemes and projects which it felt were the most ambitious and of superior quality!

In no particular order, please find them below –

1. Project : Sun Embark
Builder : SUN BUILDERS PVT LTD
Location : SG Highway, SG Highway & Surroundings

Unprecedented heights of style and luxury, Sun Embark-Sky Suites have been created with a clear vision to be Ahmedabad's first affluent 12 Storey Residential tower located on S.G Road

Type	Built Up Area in Sq. ft	No. of Units
4 BHK	3010 Sq. Ft	8
4 BHK	3065 Sq. Ft.	8
4 BHK	3110 Sq. Ft.	2
4 BHK	3165 Sq. Ft.	2

2. Project : Altius Living
Builder : Synthesis Spacelinks Pvt. Ltd.
Location : Thaltej, SG Highway & Surroundings

Altius Living is a Luxurious 3 BHK Apartment project, situated opp. Aryaman Bungalows, Thaltej, which is one of the most posh locations of Ahmedabad.

Type	Built up Area	Price
3 BHK	2815 sq. ft.	Available on Request

3. Project : Belle vue vieraaa

Builder: Davda

Location: Bavla, SG Highway & Surroundings

This is a collection of plots & villas.

Independent House/villas:

Type	Built Up area	Price
200 Sq.Yard Plot / 2 BHK bungalow	900 sq ft	23 lakhs onwards
5oo Sq.Yard /3 BHK Bungalow	1300 sq feet	40 lakhs
1000 Sq.Yard / 4 BHK Bungalow	1700 sq feet	65 lakhs

Plot Area 200 sq.yard + 1300 sq.ft also available with extra cost

Plots:

Built Up area	Price
200 sq yard	8.4 lakhs
500 sq yards	21 lakhs
1000 sq yards	42 lakhs
1500 sq yards	63 lakhs

4. Project : Nilkanth Greens

Builder: Nilkanth Infrastructure

Location: Vastral, Ahmedabad City & East

The project offers 4BHK bungalows.

Type	Area	Price
4 Bhk	222 sq mt	Price on Request
4 Bhk	212 sq mt	Price on Request

5. Project : Satyam Insignia

Builder : Satyam Developers

Location : Satellite, Ahmedabad West

Satyam Insignia is located at the most prime location in Satellite. It is situated Near Chandan Party plot, Jodhpur, Satellite , Ahmedabad.

Type	Super Built up area (Sq Feet)	Prices
3 BHK	2430	On Request
3 BHK (Penthouse)	3690	On Request
4 BHK	3771	On Request
4 BHK (Penthouse)	5310	On Request

6. Project : Jainam Bungalows

Builder: Shree Elvadurga Infrastructure

Location: Gandhi Nagar, Gandhinagar & Sabarmati

Located on Pandit Deendayal Petroleum university road, Gandhinagar, Jainam bungalows is a community of double storey villas.

Type	Super Built Up Area (SQ Yards)	Price (Rs.)
4 BHK	185	Price Available on Request
4 BHK	197	Price Available on Request
4 BHK	205	Price Available on Request
4 BHK	227	Price Available on Request
4 BHK	324	Price Available on Request
4 BHK	365	Price Available on Request

7. Project : Shantigram - The Meadows

Builder: Shantigram group

Location: SG Highway, SG Highway & Surroundings

These are homes that are occupied with the fragrance of fresh green grass. Where crisp, clean air can inspire and envelope you in lush green serenity. These are homes that mark perfect beginnings.

Type	Area (Sq Ft)	Property
2 BHK + 2 T	1080	Apartment
2 BHK + 2 T + 1 Study Room	1350	Apartment
2 BHK + 2 T + 1 Study Room	1370	Apartment
2 BHK + 2 T + 1 Study Room	1400	Apartment
3 BHK + 3 T	1775	Apartment
3 BHK + 3 T	1815	Apartment
3 BHK + 3 T	1815	Apartment
3 BHK + 3 T	1850	Apartment
3 BHK + 3 T + 1 Study Room	2135	Apartment
3 BHK + 3 T + 1 Study Room	2280	Apartment

8. Project : Sankalp Serenity

Builder : Sankalp Organizers Pvt Ltd

Location : Thaltej, SG Highway & Surroundings

Serenity : A disposition free from stress or emotion,

Serenity : The absence of mental stress or anxiety;

Serenity : The peace of mind;

serenity : the peace that passes all understanding

Type	Size (Sq Ft)	Price
3 BHK	2100	Available on Request

BETTERMENT TAX ON BOPAL CITIZENS...

2012-09-20T10:24:00.000+05:30

Located in the Western region of Ahmedabad, Bopal has been one highly controversial area for the AMC.

Notorious for its potholes and erratic electricity supply, Bopal residents have constantly voiced their inconvenience and concern to authorities. Following a spell of rains, Bopal transforms into an ocean… and has many other severe ‘maintenance’ issues… Water supply is at the mercy of external tankers…but still, the AUDA has been charging its residents ‘Betterment Tax’ for ‘betterment’ which certainly seems not to be happening.

Kuldeep Patel (name changed), a resident of the India Colony in Bopal had purchased a house more than 25 years ago for Rs 60,000. Today, AUDA, (Ahmedabad Urban Development Authority) demands a ‘Betterment Tax’ of Rs 1 lakh.

Similarly, Makrand Bhatt (name changed) of Abhishek Society will have to pay Rs1.50 lakh under the same head for the property he purchased for same amount in 1991.

These are not the only cases; scores of Bopal citizens are being forced to pay hefty amounts for ‘Betterment’ to AUDA. The authorities have served betterment charge demand notices to more than 1,000 residential societies….which amount to around Rs 200 crore in Bopal.

The residents of Bopal believe that the betterment charges cannot be justified in the sense that development has taken place after obtaining due permission from the concerned authority.

For residents, who have been deprived of even basic infrastructure and amenities in Bopal, these charges are not only too high, but aimless! Residents claim to have been paying other taxes for revenue, water, sanitation etc to the government for years for ‘development’… and are fuming about this new ‘tax’ they need to pay.

According to newspaper reports, the government owes around Rs150 crore to Rs200 crore to the Bopal Gram Panchayat.

The Bopal Gram Panchayat, which is also enraged by this move, believes that if the government uses this money for development of Bopal, there is no need for levying any betterment tax on citizens. Moreover, the government needs to use half of the accruals of selling government grazing land (Gauchar) for providing various amenities in the area.

Meanwhile, not so surprisingly, AUDA authorities claim they do not know the figure of betterment tax to be recovered from residents of Bopal... and they are only ‘doing what the rules say’.

** Please note -- some information taken from DNA, Ahmedabad – 17^th September, 2012.

TOP REASONS FOR YOU TO BUY A HOME!

2012-09-20T09:29:00.001+05:30

Buying a home is an important step in one’s life. Not only is it a great source of security, it also has many social benefits.

Although buying a home can prove to be an expensive decision, it comes with a bright and shiny tag of ‘long-term profit’!

Also, being the owner of a property testifies as a source of stability and sound financial backing. We tend to come across phrases such as ‘real estate investment is good’ and ‘investing in a house is a smart move’… The fact is that real estate has ALWAYS been a good “long-term” investment especially in uncertain economic times.

Todays historically low interest rates and low prices mean now is a great time to make an investment in your future.

In a social set up like ours, before purchasing a property, we tend to take the advice of our near and dear ones… and in any case, decisions of such magnanimity and importance are seldom taken alone.

However, you may still wonder if buying a home is the right thing to do… there is no need to panic! Having apprehensions or being unsure is normal.

Here are a few reasons as to why you should buy a home... probably knowing a little more about it will make the entire process a little less scary!!!!

1. Sense of Ownership

The feeling of pride, ownership and self worth is unmatched. Perhaps this is why people yearn to own homes. And of course, owning a home gives you the freedom of being able to decorate or furnish it as per your will. Want to paint the walls bright orange? Go ahead. You’re the boss!

2. Appreciation

Markets go up and markets go down…mostly down… but real estate prices are consistently appreciated. A home investment is a sort of hedge against inflation.

3. Tax Benefits

In case of a home loan taken for a self occupied property, the principal amount repaid up to 1 lakh qualifies for deduction under Section 80C; while up to 1.5 lakh of interest paid is tax-deductible under Section 24.
If the house is yet to be constructed, 20% of the total interest paid during the pre-construction period is also allowed as tax deduction. This is available for five years from the time the construction is complete till you get possession.

4. Source of parallel income

Owning a home gives you the leisure of giving it out on rent…meaning you get a solid consistent income every month. This is a good source of parallel income. If one does not wish to give it on rent completely, one also has the option of keeping a paying guest, PG, which is also a good source of stable income every month.

There are many more emotional and spiritual reasons of owning a property...and such reasons vary from person to person...However, in essence, for those you still are unsure about buying, this is an adequate start to ponder!

Happy Buying!