Real Estate | Sellservice | Property, Rental, Have, Estate,

The top real estate news from India for this week are:

.Five lakh low-cost houses to come up in Mumbai

The city is all set to witness the mushrooming of affordable housing with five lakh units of middle and lower income housing expected to come up in the next five years. Announcing this, Mumbai Metropolitan Region Development Authority commissioner Ratnakar Gaikwad said this move is expected to bring down the cost of housing in the city.

.Triangle realty fund buys 27% in Prozone arm

The real estate fund, co-promoted by ICS Group and Old Mutual Investment Group Property Investments, has inked an agreement to invest Rs 457 crore for a 27 per cent stake in a Prozone Enterprises. The firm has stake in four projects being developed in Aurangabad, Indore, Nagpur and Jaipur, covering approximately 16 million sq ft.

.Indiabulls gets shareholders' nod for acquiring Dev Property

The company has received shareholders' approval for the acquisition of Dev Property Development Plc for 138 million pounds. The shareholders have approved the acquisition of all shares of Dev Property.

.Mantri Realty to invest 500 cr in Madhya Pradesh

Real estate firm Mantri Realty plans to invest Rs 500 crore at Gwalior in Madhya Pradesh to set up a residential township and an IT SEZ. The township, christened Mantri City, would comprise of 10,000 houses on 16 million sq ft, while the IT SEZ would cover 5-million sq ft.

Other important real estate news from India include:

.Pune Builders join hands to float national association

In the first week of March, seven city real estate associations signed bilateral agreements with the newly formed National Association of Realtors - India (NAR- India), which in turn has forged an alliance with National Association of realtors, USA to give itself an international appeal. NAR-India has also kick-started the process of training estate agents for transnational referrals.

.Emaar MGF join hands with Marriott to develop hotels

The real estate developer has partnered with Marriott International Inc to design, construct and equip luxury-branded JW Marriott Hotels with total investment of over $400 million. The hotel projects are likely to be completed by 2010 end and will come up in New Delhi, Hyderabad, Kolkata and a Courtyard by Marriott Hotel in Amritsar.

Don抰 be deceived by the discount!

Everybody loves to think they are getting something cheaper than usual, that they have an %26ldquo;eye for a bargain %26ldquo;.

In property this is a fairly new concept, in the past the concept that you could negotiate as much as 25% discount on a property most likely beggared belief.

Well discounted property is out there.

Even now it is not widely apparent that developers are offering discounted property%26hellip;.unless you know to look past their clever marketing ploys.

Now by marketing ploys I mean making something look like something it is not, so for instance if a developer knew that some of his properties were not selling he needs to lower the price%26hellip;.right?

Would it surprise you if I said no?.

Other ways that developers offer discounted property without making it apparent to the average punter is by offering rental guarantees; paying legal fees, brokers fees, stamp duty etc%26hellip;

These are very clever ways of maintaining the value of their property; nothing devalues a product more than a big discount being attributed to it!

Comments like, %26ldquo;so cheap, what%26rsquo;s wrong with it%26rdquo; normally follow. Also, the developer needs to keep old purchasers happy, if you had just bought a 2 bed apartment for %26pound;200,000 and then find out that the developer is offering a 20% discount on a similar unit you are not going to be too happy! This is also the case on overseas discounted property.

A villa in Portugal with a 2 year rental guarantee at 10% yield sounds great. In actual terms the developer is simply using some of the profit that is in the build to finance this, if you wanted a 20% discount instead then in many cases you could have.

In reality it normally comes down to the investor or the investment company to ascertain the level of discount available. Is a rental guarantee better than a straight discount, do you want your mortgage brokers fees paid?

If a valuation is available then you have a figure to start from, you know that if they offer a 2 year rental guarantee of 5% per annum and a 15% discount then they have 25% to play with.

Be aware that sometimes the developer will offer a cash lump sum as rental guarantee, so not a monthly figure.

In reality many fees can be put on top of your mortgage, take a good look at what is available and play with the figures to find out what you are happy paying and what you want as part of your discounted property purchase.

Don%26rsquo;t be fooled by the developers marketing guru%26rsquo;s, they have a bottom line for discounted property they sell and it is up to you to find out how to get to that.

West Delhi Real Estate Switches to Top Gear

The rental market for residential properties in West Delhi is observed as quite active in the past few years. 揟hree years ago, landlords were finding it difficult to find a tenant but now its difficult to find a vacant house for a tenant," says a property broker based in Vikaspuri, Delhi.

Today the rentals in the residential colonies have gone up by over 50 per cent in Dwarka and 15-20 per cent in Janakpuri and Vikaspuri, over a period of 3-4 years. However, the tenants, on the other hand, hit back with newer demands. A certain user profiles become sought after by landlords.

Today, property owners in Delhi end up giving tenants more value for their buck. This includes airconditioners, refridgerators, microwaves, washing machines etc in the tenanted accommodation. According to advisor Sameer Saxena, tenants are looking for properties with a lifestyle. And landlords are seeking tenants who can afford a lifestyle. So they are both driving hard bargains. The trend of semi-furnished homes is a globally accepted phenomenon and it was only a matter of time before the Indian markets matured enough to follow global tenancy practices.

Marketnomics behind

When capital values are in the affordable range in residential properties, rental values grow only marginally. But when the capital values become unaffordable to the end users, they go for rental accommodation which in turn triggers demand and therefore rise in values.

Take the case of property values in Noida in the Delhi NCR region. Along the proposed Metro route property prices have shown a downward trend. However, rental values have hardened or even escalated in these areas. Two reasons for this say analysts. The buyer is not sure that after the metro route is commissioned he will get better values for the property.

For those seeking rental accommodations, it is important to pick up rental property in those areas which will become accessible in the medium to long term. If they wait too long, these may not be available and they may either have to go further away from the transit corridor or pay more for the same property.

More Articles...

<< Start < Prev 1 2 3 4 5 6 Next > End >>

Page 1 of 6

Main Menu

Business News

Basel committee seeks 9 percent Tier 1 capital: report (Reuters) 6 Sep 2010 | 2:43 pm
Reuters - Global banks will be required to hold Tier 1 capital of nine percent including a 3 percent so-called "conservation buffer," German weekly Die Zeit reported, quoting a draft proposal from the Basel Committee, the body tasked with drawing up global banking rules.
Obama kicks off campaign with $50 billion jobs plan (Reuters) 6 Sep 2010 | 2:32 pm
Reuters - President Barack Obama, scrambling to jump-start job creation in a sluggish U.S. economy, will announce on Monday a six-year plan to revamp aging roads, railways and airport runways with an initial $50 billion investment.
BP sees no impact to Gulf operations from storm (Reuters) 6 Sep 2010 | 1:15 pm
Reuters - BP Plc , the largest oil producer in U.S.-regulated areas of the Gulf of Mexico, said Monday that Tropical Storm Hermine was not expected to affect its offshore operations.

An Informative Review of RV Insurance Companies

There are a number of insurance companies that focus primarily on insuring recreational vehicles (RVs). These companies provide comprehensive policies that thoroughly protect RV owners. Some of...
+ Read More

Term Life Insurance - Save Money the Smart Way

Term life insurance is the easiest type of life insurance to understand. To put it simply, the insured person pays a minimal premium per thousand dollars of coverage on an annual, semi annual,...
+ Read More

How Much Insurance Do I Need?

Insurance is a complicated business, and it can be unpleasant to talk about because no one likes talking about death?especially their own death! Because of those two reasons, many people do not think...
+ Read More