Archives for September 2019

Commercial Real Estate, Tips to crack a good deal in investing

Investing in Commercial Real Estate, is not the same as investing in a residential property. We look at some of the factors that potential buyers in the commercial real estate segment should consider, to get the best deal

Investment in real estate, especially residential properties, is quite popular amongst the investors. However, the benefit and opportunities available for investments in commercial spaces, could be far more significant than residential properties.

Commercial Real Estate Investment Capital appreciation

In office spaces, the rentals normally increase with an increase in capital values. “So, if the capital value increases, the rentals will also increase, which automatically will create value for the investor.

“To create long-term value in real estate, the investor should focus on long-term rental appreciation, rather than short-term capital appreciation. While the short-term capital appreciation may look very tempting, most of the profit is normally lost in capital gains and other taxes,”

Tips for making investment in the commercial spaces

The investment should, preferably, cater to the requirements of mid to large size corporate occupiers.
Investors who have the capacity to buy space of over 10,000 sq ft, should focus on CBD/SBD markets of all cities.
The building should be in a well-established micro-market, wherein, there is reasonable office demand, as well as transport and social infrastructure.
The investor should target a net yield of eight to nine per cent, on his investment.
To improve yield, the investor can also make use of financial instruments such as lease rent discounting.
Avoid high leverage when the asset is vacant, as it could be risky.

Factors to consider, while buying a commercial space

According to experts, it is vital for an investor to target a commercial asset that is already leased. An unleased commercial asset will not provide any returns and in fact, will be a cash drain as the investor will have to pay maintenance and property taxes, without any cash inflow from the asset.

An investor can also choose an asset that is ready but not leased. While such an asset may be available at a discount, the risk of leasing the asset will be on the investor. The last preference should be for an under-construction commercial asset. If an investor chooses such an asset, he should ensure that it is bought at a substantial discount to the leased asset.

Property Expo : Tips to get the best deals

Property Expo Exhibitions provide a great opportunity for home seekers to buy their dream homes. We give you a detailed guide to get the most out of an expo

The first step, while scouting for a property, is to put down what you’re looking for – quality of construction, reputation of the builder, cost, amenities and other thing that you consider as essential. Ensure that the project you are considering, has good connectivity, as well as legal clearances, vis-à-vis the commencement certificate, occupancy certificate, land ownership, and parking allotments.

Property Expo

In Property Expo Do your research
If you don’t know what these terms mean, read up on them. Go online and research builders/projects that you may be interested in. See what other people say about them and check if there are any complaints from prior customers.
Don’t get distracted in Property Expo
Do not be swayed by low prices on properties that are located in far flung areas, with brochures claiming that the area is ‘about to be developed’ or ‘close enough to walk to the upcoming airport’. For all you know, the proposed infrastructure (say, a flyover) may never be built and the airport may not come up until 2050. If a project has a swimming pool for which you need to pay Rs four lakh more, consider how often you will use the pool.
In Property Expo Know where and what you can afford
Before visiting any expo, do the math to know exactly what you can afford. Find out what savings and investments you have, and which of these you will need to liquidate. Check your loan eligibility, by visiting a bank’s website or by speaking to a loan agent.
While evaluating your budget and loan amount, factor in the cost of existing loans and your regular expenses. Remember that stamp duty, registration, loan processing fees, brokerage and other costs may amount to almost 20%.

At the Property Expo

Ensure that you are dressed comfortably, as it may get quite crowded. Carry a large bag for brochures
Carry a list of questions that you intend to ask, along with a pen, a notepad, a calculator and water
Look at the layout map, or take a quick walk around the place, without stopping anywhere at first. Once you know where your preferred properties are, start visiting those stalls first. Leave second-best for later
Keep site visits for a different day and utilise the time to gather information on as many properties as possible
After visiting your preferred stalls, chat with other visitors. Ask them which projects they are considering and why. You may glean some unexpected information, this way
Do not hesitate to bargain hard. If you are unable to do it yourself, bring along an experienced friend or agent who can help
Visit the expo during off-peak hours – during the afternoon or when it opens up in the morning – to get undivided attention from the builders’ representatives
With prior research, you will know the top projects in the location of your choice. See what prices are being quoted for these. Having this knowledge, will help you shop and bargain better
Don’t disclose excess information but if the developer is stuck at a price just above your budget, be frank and say that you cannot afford anything above X amount. Once they realise you are serious, they may be willing to negotiate

Tellapur Property Market: Overview

Tellapur is an upcoming locality in Hyderabad that is well developed and offers several property options to buyers and investors. This area possesses ample scope of future growth and development.

Tellapur is located in Medak disctrict which is just 4 km far to Lingampally and 9 km from Gachibowli. The nearest railway station is Lingampally, which is located in and around 4.2 km distance. And Begumpet Airport is situated at 19 KM distance. Wipro campus and other companies such as Microsoft and Polaris are in close proximity. The area is also close to the Outer Ring Road (ORR),which allows residents to enjoy great roads and have access to all parts of the city. The flyover that connects Lingampally to Nallagandla near Tellapuralso reduces travel times and helps to avoid a railway crossing on the way.

Tellapur Real Estate

The Real Estate is steadily getting a boost due to growing infrastructure and connectivity improvements. There are several kinds of flats and apartments in that are sized between 1 to 3 BHK. Leading builders here include Developers & Constructions companies who are coming up with big ticket projects in the area.

Connectivity with localities

The distance to Rajiv Gandhi International Airport is 39.9 km
The distance to Secunderabad Railway Station is 32 km.
There are several bus stops nearby as well Employment hubs nearby
The distance to Nallagandla is 4.1 km
The distance to Gachibowli is 11.1 km
The distance to Hi tech city is 15.9km

Reasons to Invest

Tellapur is a locality that promises ample growth in the future along with healthy price appreciation. This locality has witnessed fast development and social infrastructure is also coming up rapidly here. This makes it a good bet in terms of future investments. Contact us if you want to invest

Shopping malls like South India Shopping Mall and Inorbit Mall are already there. Restaurants are rocking Sri Balaji Restaurant and Magic Bowl. There are also International Schools like Manthan International School and Glendale Creative Arts Academy

Residential Projects with the Right Amenities for You how to choose

Residential Projects are rising the prices of land over the years has also seen a rise in the number of residential complexes and townships in major Indian metros and cities.

These vertical residences saw more favour among buyers in the real estate market, as it offered an alternative to what seemed like a congested living situation. Not to mention the higher quality of amenities that were offered in such apartments to its residents. The increase in demand for apartment complexes triggered the change of city scapes into concrete jungles. This is particularly evident in the cases of cities like Hyderabad, where independent homes and villas in the city are being swapped for high-rises. With the IT boom and subsequent rise in jobs and population, Hyderabad’s citizens found more favour with the cost comfort of community living, each with a 2/3/4 BHK apartment to call one’s own.

what are Residential Projects?

Often functioning like a city within a city, a township or apartment complex is a residential project that includes multiple high-rise buildings that also include amenities such as a club house, gymnasium, swimming pool, sport complexes, gardens, children’s play area, security and more. While such accommodation does not come cheap, it should be kept in mind that there are a wide range of townships and complexes on offer, which offer a mix of amenities and facilities that can significantly alter your expense. Therefore, it would be advisable to choose a complex that offers the very basic amenities as well as a few extras; it may also be worthwhile to see if the extras are really worth the investment by comparing costs incurred against actual foreseeable usage.

So, The basics – what your apartment building should have and what are the amenities on offer today in Indian real estate? You may contact us.

Uppal Property Market: Overview

Uppal Property Market is surrounded by Kaveri Nagar, Shanti Nagar, Kalyanpuri etc. Uppal is a neighbourhood in Hyderabad. The area is a residential as well as commercial area. The transport system is good and the social infrastructure of this area is also well developed.

The real estate of Uppal is gradually improving as days are passing by. There are different types of flats in Uppal of different sizes like 1BHK to 3BHK. There are apartments and independant houses too in Uppal. There are builders in Uppal who are constructing several flats and apartments in this locality

Connectivity with Uppal Property Market

The distance from Uppal to Rajiv Gandhi International Airport is 31.3 km.
The distance from Uppal to Secunderabad Railway Station is 8.9 km.
There are several bus stops which help to connect to other places
Employment hubs near Uppal.
The distance from Uppal to Begumpet is 13.3 km
The distance from Uppal to Banjara Hills is 19.2 km.

Reasons to invest in Uppal

Uppal is one of the fastest growing localities of Hyderabad. It is a neighbouring town and the area is close to all the important places. The commercial hubs are close by along with the airport and railway station. The transport system of this area is good and the residents can smoothly travel without facing any hassle. The price range is increasing day by day as the demand for this area increasing among the people. The real investors can invest in this area without thinking of any loss. The demand for residential houses and flats among the middle and upper class strata are increasing. For buying properties Contact us.

Price Trends

The price trend in Uppal since 2016 has been for multi-story apartment and for residential houses. This is because increase in proximity for Schools in Uppal and other social amenities, Shopping malls, Hospitals and Restaurants in Uppal

Shamshabad Property Market: An overview

Shamshabad Property Market a popular in Hyderabad, has attracted the attention of home buyers in recent years. Erstwhile Shamshabad was a village of the Ranga Reddy district but with the development of the Rajiv Gandhi International Airport, Shamshabad Real Estate has grown by leaps and bounds. Contact us

Shamshabad Property Market

Hyderabad has experienced steady growth in terms of both residential and commercial properties in the last few years and it has emerged as one of the most promising destinations for home buyers to invest. Shamshabad is one of the localities that have gained ample prominence in this regard.

The prime attraction of this locality is its connectivity with the commercial hubs and other parts of Hyderabad. The International airport is about 5 mins drive from the residential area. The accessibility of the NH-7 Bangalore Highway and the Outer Ring Road ensure great connectivity to Shamshabad. Public buses and trains have also made commuting easier for residents. Nearby Shamshabad localities include the International Airport, Madhuban Colony, Nadergul, Bongloor, Maheshwaram and Attapur.

Connectivity with nearby localities

Umdanagar Railway Station lies 6 kms away.
The Rajiv Gandhi International Airport is about 2 kms.
The major bus stations of the locality include the Rajiv Gandhi International Airport (RGIA) bus stop.
The Outer Ring Road and the Bangalore NH-7 are approximately 2 kms away from Shamshabad.

Employment hubs

The biggest IT hub of Hyderabad-Hitech City is 30 kms away from Shamshabad but through the Outer Ring road the distance is covered in 20 mins.
Shamshabad is well connected to Madhapur, Secunderabad, Kothaguda, Koti and other major commercial hubs by the outer ring road and the Bangalore NH-7 Highway. Schools in Shamshabad and other social amenities. Shopping Mall Attapur is the nearest one.

Reasons to Invest in Shamshabad Property Market

Considering the price trends in Shamshabad, there is a high possibility of price appreciation even more in the future. Shamshabad comes under the bio-conservation zone and therefore there are various construction rules which the locality has to abide by. Other issues involving inadequate street lighting and huge traffic exist in the locality. However, quality infrastructure at affordable prices is making Shamshabad a great location to invest in.

RK Puram Property Market

RK Puram Property Market enjoys proximity to localities of Vivekanandapuram (1 kilometre away), Trimulgherry (1 kilometre away), AS Rao Nagar (2 kilometres away), Mahendra Hills (3 kilometres away) and Alwal (3 kilometres away). RK Puram or Ramakrishna Puram is a popular locality of Hyderabad, located in the Telangana region and The regions that are located in close proximity to RK Puram include Hyderabad, Bhongir, Singapur and Sangareddi.

RK Puram Property Market Connectivity with nearby localities

The locality is well-connected to various developed areas and a number of hotels, schools, banks and hospitals via an excellent network of railways and roadways.

The nearest railway stations include the Ramkrishnapuram Gate railway station, Ammuguda railway station and Secunderabad Jn railway station, which are located at distances of 18.1, 20.3 and 6 kilometres, repectively, from the locality.
The nearest airport is The Rajiv Gandhi International Airport, which is 26.1 kilometres from the locality.
Telangana State Road Transport Corporation (TSRTC) services connect the locality to major parts of Hyderabad.
The locality is served by the Andhra Pradesh Transport Corporation (APSRTC) and MMTS networks of bus services.

Employment hubs near RK Puram

The locality is witnessing an increase in population in recent years, owing to its proximity to the commercial hubs of:

Gachibowli (41 kilometres away).
Hitech City (42 kilometres away).
Kokapet (33.4 kilometres away).

Reasons to invest in RK Puram

RK Puram has emerged as a very convenient neighbourhood considering the easy living conditions and many job opportunities that it provides its residents with. The rise in property prices and demand, make investing in RK Puram a lucrative option. RK Puram has emerged as a preferred working, as well as residential destination of Telangana.

Projects like GK Subhodaya, Jayadarsini Arcade, Vaishnavi Elegance, Jubilee Shubhanjali and many more situated in and around the locality, are among the best projects to invest in RK Puram.

Investment in Hyderabad

Investment in Hyderabad has absorption of commercial space has had a spill-over effect on residential realty, with a number of professionals investing in Hyderabad. We look at the top localities to invest in and the price movements in the Hyderabad market

Hyderabad is one of the employment hubs in India. In 2016, there were 250 listed companies across Hyderabad. Thanks to the influx of professionals, the demand for homes is forever on the rise. Housing.com data suggests that Manikonda, Kukatpally, Gachibowli, Miyapur, Bachupally, Kompally, Kondapur, Dammaiguda, Chandanagar and Nizampet are the top localities that are preferred by home buyers. Except for new and evolving localities like Dammaiguda, all other localities have registered a sizeable upward movement in prices. While prices have been climbing reasonably, it remains stable enough, to avoid disrupting one’s finances. This indicates that the real estate market in the city is healthy and there is enough momentum, to beat any capital value erosion.

Employment hubs drive demand for properties in Hyderabad

What ensures the continued preference for these localities? One of the top reasons is that these are very close to the job markets. Proximity to workplaces is the biggest reason why people chose this locality. Hyderabad is a city of promise and after a long period of lull, they have finally chosen to invest in Hyderabad. There are certain factors such as water availability that one must investigate but on the whole, the city is full of opportunities for the young.

Investment in Hyderabad in top 5 localities

Most Real estate developers have been focusing on localities

Manikonda
The Greater Hyderabad Municipal Corporation (GHMC) is looking at giving a facelift to existing roads that are running under power lines. Widening of these roads would definitely decongest traffic to a great extent. This would also positively impact property prices in the area.
Kukatpally
Electric vehicles can now be charged at the Kukatpally metro station, free of cost. Smart parking facilities are also being planned in Kukatpally. The same was launched at Begumpet metro station recently.
Gachibowli
Giving a boost to public transport, four new luxury buses have been introduced by the Telangana State Road Transport Corporation in the IT corridor, between Kukatpally and Hitec City via Gachibowli. While this provides some relief, commuters have been demanding more.
Miyapur
Just like Kukatpally, Miyapur is likely to have a smart parking system, which provides real-time information about parking facilities for two and four-wheelers on a mobile app. It is hoped that this will take care of civic problems, such as illegal parking in and around busy stations such as that of Manikonda.
Bachupally
It is estimated that 70 million sq ft of office space will be coming up in Hyderabad’s western localities, over a period of five years. Bachupally, an evolving location, will be a beneficiary in this regard and a number of residential launches have already surfaced. Now, the authorities are planning to improve social infrastructure, to take on this added population in due course of time.

Bengaluru Housing construction ban for 5 Years

Bengaluru Housing construction ban for 5 Years. The Karnataka government’s plan, to deal with the water crisis by imposing a five-year ban on the construction of residential buildings in the city, will bring development to a grinding halt

Bengaluru Housing view

A leading real estate developers association, on June 18, 2019, termed as ‘unrealistic’, the Karnataka government’s plan to impose a five-year ban on the construction of multi-storeyed residential buildings in Bengaluru, in view of the acute water crisis and it is unrealistic, ‘because it will bring development to a grinding halt’.

Not only 10 lakh labourers will lose jobs and the whole industry will suffer but also the government will incur huge losses. However, the ‘People’s Campaign for Right to Water’ (PCRW) welcomed the decision, saying that the government was moving in the right direction. The last two decades have been detrimental to Bengaluru’s growth, which was unprecedented and unregulated. Sustainability was not the agenda. They are going from one crisis to another.”

Government’s decision

The water crisis in Chennai, in neighbouring Tamil Nadu, was a wake-up call. New water bodies should be created, instead of merely rejuvenating older ones and the government to conserve water, by reviving lakes, desilting water bodies, recharging groundwater and launching awareness campaigns on the judicious use of water. Government is also targeting rain water harvests and expecting the same from people of Bengaluru.

On June 27, 2019, said that the state government was contemplating a five-year ban on construction of multi-storeyed residential buildings, in view of the acute water crisis. “Due to water scarcity, most of the apartment dwellers are dependent on water supplied through water tankers. This is resulting in water-borne and skin diseases. Hence, deliberations are going on, to ban the construction of apartments in Bengaluru for the next five years.

Second Home Investment

Second Home Investment to derive the maximum benefits on the investment, in the long run. There are several factors to consider before buying a second home. You may contact us

However, recent changes in tax laws, in financial year 2017-18, have changed the home buyers’ outlook towards investing in second homes. One main reason, is that the deduction of Rs two lakhs, available on home loan interest, is now the same, for both, rented and self-occupied property. Moreover, the loss on house property that can be reduced from ‘income from other sources’, is confined to Rs two lakhs only. As a result, many salaried employees and businessmen, who sought second homes so that they could reduce their tax liability, are now looking for other means to earn returns.

Second Home for investment/rental income?

Most second home investments range in a ticket size of Rs 40-80 lakhs, with houses in the premium segment. Earlier, buyers bought the property from an investment point of view and kept the houses vacant for most part of the year. The return on their investments, came only when property prices increased, over many years.

Rental income yields on residential property, are typically three per cent, depending on the market and can go up to five per cent, if one buys an under-construction property. This alone may not be a sufficient reason to buy. So, one should buy only if there is an expectation of capital appreciation, as well.

Factors that will impact your second home investment

Most home buyers buy second homes, purely for investment purposes, or as a holiday home (near tourist places), or for earning rentals in cities.

Entry level price and rental yields
The profit on a second home, will depend on the segment, the location and the probability of renting out the unit. “There have been instances, where renting happens regularly and with a good amount as rental. However, if the entry price (the cost of buying the unit) is high, it impacts the return on investment (ROI). Similarly, buying a second home in a location where the cost of the unit is lower, may also entail less frequent renting and lower rentals. So, making an intelligent decision while buying a second home unit, is all about buying where price-points are not too expensive and rental incomes are.
Income tax laws
The maximum deduction on interest, is now capped at Rs two lakhs, against the entire interest that was tax-free earlier, even though there is a provision to carry forward the losses in eight consecutive financial years. Even with this carry forward facility, it will still be a loss-making venture, for those trying to buy a second home with loans, because the interest on loans, as well as on rental income, will become taxable. The smart way out, would be to check one’s investment portfolio and plan one’s finances, in a manner that permits the enjoyment of benefits of a second home, without burning cash or making losses.
Infrastructure development
However, finding the right balance may not be easy, especially when there are so many factors that can affect prices and property market’s economy. Some of the factors that one should consider, are population growth, affordable pricing, location and infrastructure development. Generally, higher rentals can be expected near educational zones and corporate hubs.

Purpose of buying the second home

Most importantly, a buyer must be clear about the purpose of buying a second home. It is always a good idea, to consult with one’s friends and family, before taking the final decision. First, identify a few good places to invest in. Consider investing in a property that is situated in a fast-developing locality, rather than investing in an already developed place, as a place that has already reached its saturation, may not provide high returns.