• admin
• Real Estate
• April 22, 2020

5 Hidden Costs To Consider While Buying Your Dream Home

Purchasing a home is one of the most important decisions of your life that gives you a sense of security. All your earnings are inclined towards saving for the big purchase. From managing your savings to applying for a loan, this big-budget investment takes a lot of effort and research. Once you complete your search and find the home of your dreams, take a pause and go through the details of the final cost.

Developers market and promote their properties with a lot of offers to compete in the market, while you do pay a lot of attention on the quality of the property, what you tend to miss is the hidden cost involved. When it comes to the price of the property, ensure that you are not just considering the prices shared by the builder in the advertising. Going into the details of the final costing will save you from the hidden surprises and pre-empt few catches. Hence home buying process doesn’t end with down payment and monthly installments but also includes extra costs which make you shell out more than the quoted price.

Here is the List of Some of the Hidden Costs Involved While Buying a Property:

Home loan processing cost

If you are applying for a home loan, then it is important to pay special attention to the processing fees being charged by the lender. The processing fees generally vary from 0.25 percent to 1 percent charged by the lender or bank for carrying out documentation and legal verifications. You can compare the processing fees charges by various banks and pick the one with the lowest fees.

Registration cost

The advertised price is not inclusive of registration costs. When you buy a property costs like registration cost and stamp duty charges are paid by the buyer. The registration cost and stamp duty varies from state to state and ranges from 6 percent to 10 percent. Some regions offer lower registration costs in-case the first holder for property ownership is a woman.

Maintenance cost

If you are planning to buy a luxurious property in a reputed project, then it is imperative to shell out more for maintenance. Maintenance cost is not included in the price of the flats or apartments and charged over and above the final cost. At times, you might have to pay the advance maintenance deposit for a specific period of time.

Brokerage cost

If you are buying the property with the help of a broker, then you would have to pay somewhere around 1-3 percent of the property value as brokerage fees. The cost is not fixed and could be even more depending on the property and location.

Preferential location cost

Be prepared to pat preferential location cost in-case you want to opt for a flat with premium location, floor, and view. Every project consists of flats that have the additional benefit of exclusive views as per the floor and direction of the unit.

Buying a property is like achieving a huge milestone. However, it comes with hidden costs and other terms and conditions. Finalizing the deal without knowing the entire cost could lead to unwanted confusions and you will end up paying more than the price that first attracted you to the property.

• admin
• Real Estate
• April 17, 2020

The Rising Popularity of Sports Facilities Among Homebuyers

The rising popularity of a healthy and active lifestyle has led to a paradigm shift in the demand for sports-centric projects in the residential market. Health and fitness have influenced and significantly altered the choices of home buyers. The changing lifestyle aspirations of millennials have been embraced and quickly adapted by developers aiming to cater to this new segment of buyers. The housing projects like gated communities are now offering unique facilities to cater to the needs of each member of your family. From jogging tracks to Golf courses, the transition of integrated townships is changing the face of residential real estate.

The growing incorporation of sports facilities in the projects is not just limited to fitness but a status symbol. Below are a few of the reasons that have contributed to the rising demand for sports facilities among homebuyers:

Modern facilities

The needs of buyers are evolving at a fast pace and not just limited to the generic features. They are always on the lookout for unique facilities that blend of modern designs and luxury like sports complex with a wide range of sports facilities like golf courses, squash courts, tennis courts, cricket grounds, table tennis, etc.

Health and Fitness conscious lifestyle

To cope with the stressful and hectic lifestyle, people look out to strike a balance between health and their schedules. And what could be a better way of becoming fit than sports? Wellness is the new mantra for being fit- from healthy food choices to an active lifestyle and that is the major reason for sports facilities coming into vogue. Hence, buyers seek amenities that could support the need of the hour without them moving out of their societies.

Open Space

Lack of open and green spaces are the major reason for builders coming up with jogging tracks, parks, sports areas, zen gardens, swimming pool, etc. People are seeking serenity and peace away from the hustle-bustle of the cities for a healthier lifestyle. Also, the presence of open spaces helps in facilitating outdoor activities for senior citizens and children carving an active routine for them.

Increased disposable income

The increased level of disposable income has led to a paramount shift in the luxury lifestyle of people. This shift has encouraged builders to come up with innovative amenities like sports townships which are surpassing the concepts like gymnasium and now offering professionally run sports facilities which are counted in super-luxury homes.

Wellness is becoming an integral part of the daily routine of people which has paved the path for fitness-centric residential complexes. Luxurious amenities are no more restricted to swimming pool or a club house, the urge to provide something unique to the buyers has given way to innovative ideas like go-karting facility, racing track, a golf course, cricket pitch, courts for racquet games, etc. The sports facilities in the residential projects are going grand and all the way to satisfy the evolving tastes and preferences of the customers. This unique concept is not only catering to fitness needs but also uplifting the lifestyle quotient of buyers.

• admin
• Real Estate
• March 20, 2020

Beginner’s Guide to Invest into Income Property

Investing in real estate income property is the most beneficial asset you could add to your portfolio. Any property that is bought with the intention of earning revenue is known as an Income property. Income properties could be a residential or commercial property that buyers invest in to generate profit either through rental income or resale at higher prices. It is the most excellent and stable way to build your wealth if you know the basics of buying an appreciating property. However, you cannot just buy any property and expect a good rate of return. The right kind of investment takes time, patience and research. Picking up the right market can lead to the expected capital appreciation and hence better rental income.

So what are the steps you need to take in order to make your investment in income property fruitful?

Decide on your readiness to make the investment

Before you start your search it is important to be clear on the investment basics. From defining the objective of purchase, duration of holding the property, type of income expected, risk involved to tax advantage, your readiness to make the investment should be based on these parameters. This is the most vital step of the process and you can achieve the goal of making the right investment by reflecting on your actual requirement.

Research on the real estate basics and trends

Now that you are ready to make the investment, ensure you have done your homework. Learn as much as you could about the real estate basics. Research the latest trends that are there in the real estate market like the upcoming hotspots for investments, various financing tools available in the market, type of properties, etc. You can keep yourself updated by reading the industry blogs, latest news, latest government reforms, and analytical reports available online, etc.

Plan your finances

Setting a budget is the most crucial step and requires detailed planning of your finances. Ensure that expected revenue to be generated from the income investment property is higher than the overall expenditure for positive cash flow. Save up for the down payment and work out on the suitable financing options available. Consider the overall cost of generating income i.e. maintenance cost, furnishings required, taxes, utilities, and insurance.

Finalize the Income property

Once your budget is set, research the suitable type of property as per your goal. You can search the property online on various real estate portals or contact the local realtor for available properties. Evaluate the property based on factors like profitability, risks involved, overhead expenses, potential rental income, etc. Invest in a location that has the potential for further developments in terms of infrastructure and facilities.

Not many investments have the potential to save money and generate stable revenue like income property. It is a controlled and flexible way of creating wealth as compared to mutual funds, stocks, bonds, and other financial assets. By keeping the above steps in mind, you could make your investment in income property wisely and efficiently.

• admin
• Real Estate
• March 14, 2020

Planning to buy a second home? Consider the important parameters

Investing in a second home is the trend that is quickly catching pace increasing the demand for real estate in Tier II and Tier III towns. There is a tremendous rise in the percentage of people in India investing in more than one residential property mostly in the luxurious properties in suburbs. This trend is not only restricted to the upper segment but is now being extended to the middle-class segment. While earlier the main purpose of buying a second home was limited as a retirement benefit or for re-sale, however, now second home serves multiple purposes like generating rental income or a vacation home.

Let’s take a look at the various benefits of investing in the residential real estate market for the second time:

Diversification of investment

If you are planning for a long term investment and looking forward to diversifying your investment portfolio then purchasing a second home is the apt choice. As per the market trends investing in real estate fetch a better rate of return as compared to any other class of asset.

Rental income

As per the latest trend, a second home is being purchased by buyers for the purpose of generating revenue through monthly rental income. It is the most sought out way to get the best return on your investment and pay off the home loan smoothly. It is a shield against the fluctuating interest rates in the market.

Tax savings

Buying a second home comes with certain tax benefits. You can avail of tax benefits on the interest payment of your home loan for the second home.

Security

A second home not only provides a return on investment but also gives you a sense of security and an option to rely on in-case of future emergencies. It gives extra financial support to your family and you could easily liquidate this asset in future events.

Owning a second home could be an enriching experience if you are sure about the purpose of buying a home. Consider the below points before buying another property:

• Location of the home is the top most factors to be considered at the time of your second buy. For example, investing in subs would be cheaper than buying another home in the city. Investing in a location away from the overcrowded city offers a clean environment and has the potential of capital appreciation in the near future.
• Decide on the overall amount you want to spend on buying another house. Consider all the hidden costs like maintenance, repair and renovation required base on the age of the property.
• Select the type of property based on your requirements and the objective of buying the property. Whether you want to invest in a compact home for generating rental income or a luxurious apartment for your retirement back up or a villa for a vacation home, make the final decision based on what suits your needs the best.

With careful market research and planning, you can invest in the right property and reap the benefits of having a second home. Go ahead and be part of the new world of second homeowners!

• admin
• Real Estate
• March 4, 2020

5 Reasons Why Real Estate is The Best Long Term Investment Option

Do you know why real estate has been the top and most preferred investment option? The advantages of investing in real estate vary from diversifying your investment tax savings to a great rate of return. It is one of the best and secure long term investments as compared to mutual funds, bonds, and stocks. Real estate is the preferred option especially in a country like India where investment in property gives you the emotional security of having a place of your own.

Let’s take a look at the reasons why the Real estate is the best long term investment option for you:

Better Returns

Real estate yields great returns from a long term investment standpoint. With the growing population and urbanization, the demand for land and property is increasing whereas supply is limited. Hence, you could reap great returns with long term benefits by investing in property. Property is a tangible asset and could be easily leveraged and you could capitalize on your investment and earn along with capital appreciation over the period of time.

Better Earnings

One of the major benefits that make real estate investment the most preferred choice of investors is generating revenue through rental income. Owning a home assures you of stable and regular monthly rental income as compared to another type of investment. The earning could be easily managed and earnings can be controlled as per your requirement. You can sublet the entire property or parts of it as per your choice and needs.

Less Riskier

As compared to other investment options like stocks and mutual funds, real estate offers secured, stable and low-risk investment. Trading in stocks is full of uncertainty and requires a lot of o expertise to get the appropriate returns. However, in real estate, you don’t need any special skill set to identify the right property and invest. It is not only safe but also a stable source of fetching long term returns. Risk is directly proportional to the length and the duration of time you hold on to a particular property. Longer the duration more is the chance of improvement of the market and the value of the property.

Tax Savings

Another advantage of real estate investment in the long term and short term tax deductions if you have purchased a property with the help of a home loan. Besides tax savings, there are various government reforms and initiatives that offer subsidies to the first time home buyers

Investment Diversification for a balanced portfolio

It is always advisable to diversify your portfolio and avoid investing in similar assets and securities. To balance out the high-risk assets, invest in real estate for better returns and spread the risk. The variation in the portfolio will secure you from any economic unrest and ensure at least one of your assets is always performing and increasing the overall value of your investments.

Investment in real estate is considered to be a safe and stable choice due to the above-stated benefits. Real estate has the potential to give great returns and hence, the key to earn profits from real estate lies in your hand.