Investing in Real Estate in the Indian Market: Tips for Beginners

Real estate investment can be a lucrative venture, especially in a dynamic market like India. Whether you're looking to invest in residential properties, commercial spaces, or land, here are some essential tips to guide beginners through the process:

1. Market Analysis

   • Location Research: Focus on location. Different cities and neighborhoods have varying demand and growth potential. Consider factors like proximity to amenities, transportation, schools, and employment hubs.
     
   • Market Trends: Study current market trends and forecasts. Understand the demand-supply dynamics, price trends, and future development plans in the area you're interested in.
   • Micro-Market Analysis: Dig deep into micro-markets within a city. Prices and demand can vary significantly even within the same city, so analyze each area separately.

2. Financing Options

   • Home Loans: Explore home loan options offered by banks and financial institutions. Compare interest rates, loan tenure, processing fees, and eligibility criteria before choosing a lender.
   • Government Schemes: Research government schemes and subsidies for homebuyers, such as Pradhan Mantri Awas Yojana (PMAY) for affordable housing or tax benefits under Section 80C and Section 24 of the Income Tax Act.
   • Joint Ventures: Consider joint ventures or partnerships with other investors to pool resources and reduce financial risks.

3. Legal Due Diligence

   • Title Verification: Conduct a thorough title verification to ensure the property has a clear title and no legal disputes.
   • Document Verification: Review all property-related documents, including sale deed, property tax receipts, NOC (No Objection Certificate), and building approvals from relevant authorities.
   • Legal Assistance: Seek legal advice from a qualified real estate attorney to navigate complex legal procedures and contracts.

4. Property Selection

   • Purpose of Investment: Determine your investment goals - whether you're looking for rental income, long-term appreciation, or a mix of both.
   • Risk Assessment: Evaluate the risks associated with different types of properties (residential, commercial, land) and choose based on your risk tolerance and investment strategy.
   • Quality and Reputation: Invest in properties from reputable builders with a track record of delivering quality projects and timely possession.

5. Property Management

   • Tenant Screening: If investing in rental properties, screen tenants thoroughly to ensure timely rent payments and proper maintenance of the property.
   • Maintenance and Upkeep: Regularly maintain the property to enhance its value and attract potential buyers or tenants.
   • Legal Compliance: Stay updated with local laws and regulations related to property management, tenant rights, and rental agreements.

6. Exit Strategy

   • Long-term vs. Short-term: Decide whether you're aiming for long-term capital appreciation or short-term gains through property flipping.
   • Market Timing: Monitor market trends and economic indicators to time your exit strategy for maximum returns.
   • Tax Implications: Understand the tax implications of selling a property, including capital gains tax and exemptions available under the Income Tax Act.

7. Continuous Learning

   • Real Estate Workshops and Seminars: Attend workshops, seminars, and webinars conducted by industry experts to expand your knowledge and stay updated with market trends.
   • Networking: Build a network of real estate professionals, investors, and mentors who can provide valuable insights and guidance.

With Suganta, India's trusted real estate company, by your side, embark on your investment journey with confidence and informed decision-making. Our commitment to transparency, integrity, and client satisfaction ensures a seamless experience as you navigate the rewarding world of real estate investment in India.

Chennai: Tough to come by tenants, most posh empty with ECR

Poor demand from expats and a general decline in real estate demand resulting from the COVID-19 outbreak have affected the market for the city's posh villas, most notably along the East Coast Road (ECR).

People invested in the villa mainly to cater to expats working in multinational companies in and around Chennai. As most expats have either left the country or moved to core areas of the city, the badge owners are now struggling to find tenants. As a result, a good number of villas are empty.

This has forced real estate developers to stop new projects as buyers have also become a difficult task. Most of the buyers were NRIs, Realtors.

The premium villa segment, which reached great heights in 2012, is losing its luster without any allowances being cut by expats and companies. According to estimates by real estate agents dealing with rentals for foreigners, the population that comes with ECR has fallen from 2,500 to 500 in four years.

Currently, about 60% of the 3,000 villas between Nilkarai and Uthandi on the ECR are vacant. The rent for properties with elaborate lawns and swimming pools previously ranged from Rs 1.2 lakh to Rs 2.5 lakh per month. Although some inquiries are being made about the demand from the residents of the city to relocate these posh properties, the deals are yet to take place as people are not ready to take up houses for such high rents. Owners do not want to reduce rent because the returns do not justify the investment they make and prefer to deal with a company as it did with expats rather than individuals.

In addition, many landlords prefer expats because there is no risk in vacating tenants and uninterrupted rents.

Mohan Kartha, a real estate agent who has been working with Accent Rentals for a decade, said that the villa market has now become a tenant market. Now, they are ready to revise their rent by 50%, but cannot find expats. Foreigners visiting the city earlier this year are being accommodated in a cheap rented apartment in core Chennai.

Srinivas Anikipatti, Senior Director - Tamil Nadu and Kerala, Knight Frank India said that the current status of ECR ​​has prevented a major developer from starting a villa project of 400 plots at Kovalam.

Gurugram: Huda City Center flyover, six months late, crawling to finish line

The Huda City Center flyover, which was scheduled to open in February this year, is still under construction and running behind schedule. That it will take at least another month to open.

According to GMDA officials, this delay can be attributed to several reasons such as shifting of the water pipeline during the pond period and ban on month long construction. Work was resumed in April.

However, even after the ban was relaxed, labor shortages slowed down the pace of construction. "When the work is in progress, it is likely to take at least one more month," stated by GMDA.

Meanwhile, the variations from last year are inconvenient for residents.

The flyover is being built as part of a major redevelopment project at Huda City Center which also includes an underpass and a two-foot overbridge.

The 700 meter long underpass will be used by vehicles coming from the Signature Tower and heading towards Subhash Chowk. The flyover will be bidirectional and will be 270 meters long and will connect MF Hussain Marg and Sector Road with Signature Tower to Huda City Center Junction.

A major focus of the project is to make the junction pedestrian-friendly. As per the plan envisioned by the GMDA, the 300 meter extension adjacent to the metro station will be for pedestrians only and free of traffic.

The redevelopment of the junction is designed in such a way that all traffic crossing the junction and the metro station is destined will have to take either a proposed flyover or an underpass.

Deadline extension for Noida project dealers by December 2021

An official statement said that the Noida Authority on 18 August extended the deadline for more than a dozen builders to complete the pending projects by 31 December 2021. These builders had earlier assured delivery of homes by the end of June 2021

The decision was approved during the Noida Authority's 199th board meeting in view of COVID-19 status.

According to the zero-term policy announced last December, builders will be exempted from paying punitive interest on outstanding land dues for the number of stuck projects.

However, this policy was applicable to builders who were expected to own a house by June 2021. The state government had hoped to construct one lakh new housing units by that time.

"Developers who have given written assurance to complete their pending projects by 31 December 2021 have been given extension from 30 June, 2021 to 31 December, 2021. As part of the Zero Term Policy letters have been issued to give written assurance about completion of incomplete projects by 31 December, 2021,"

The board also approved the authority's annual budget, which has set a target of Rs 5,037 crore in revenue and Rs 4,640 crore for spending for the current fiscal year 2020-21.

The statement said that the expenses include land acquisition, development work, health and repair and maintenance of urban infrastructure, village development, and miscellaneous expenses.

The budget states that the amount for land acquisition has been increased from Rs 600 crore to Rs 1,000 crore and from Rs 106 crore to Rs 125 crore for village development.

The board meeting was chaired by Commissioner of Infrastructure and Industrial Development Alok Tandon and chairman of three different authorities in Gautam Buddh Nagar.

The meeting was attended by Noida Authority CEO Ritu Maheshwari, Greater Noida Authority CEO Narendra Bhooshon and Yamuna Expressway Authority CEO Arun Vir Singh.

It was said in the meeting that a total of 37 agendas were placed during the meeting apart from 15 proposals for board approval. The 198th board meeting was held in April.

Haryana starts property registration in rural areas

The Haryana government on August 17 resumed registration of properties and farms in rural areas and started the process of e-appointment for registration of urban properties.

The revenue officials are reviewing the registration process in urban areas before actually registering the property.

Notably, on 22 July, property registration work in the state, whether rural or urban, was halted for software upgrades.

Haryana Deputy Chief Minister Dushyant Chautala, who also has charge of the revenue department, said that details of registries made on August 17 in rural areas are being compiled while software for urban areas is being reviewed and e- Appointments have started.

Amid allegations of scam in property registration without obtaining a No Objection Certificate from the Urban Local Bodies (ULB) or the Town and Country Planning (TCP) Department, the state government had stopped registering all properties. Seven revenue officers from Gurgaon have been placed under suspension, while several officers from both ULB and TCP departments have been placed under investigation in four districts of Gurugram, Faridabad, Sonipat and Jhajjar.

Supreme Court Announce Daughters Have Equal Rights In Father's Property, Even If She Was Born Before Or After 2005

In a landmark judgment, the Supreme Court ruled that even if the father died before the Hindu Succession Act 2005, a daughter would have the same right to receive her share in the property. Justice Arun Mishra ruled that an important legal issue was raised whether the 2005 Act, which gave equal rights to daughters in paternal property, has retrospective effect?

Justice Arun Mishra pronounced the verdict, saying, "Daughters should be given equal rights as sons. A daughter remains a loving daughter throughout her life.

The bench, comprising Justices Arun Mishra, S. Nazeer and M.R. Shah dismissed the contrary remarks made in two cases of Prakash V/S Phoolwati and Mangammal V/S TB Raju.

Sameer Jain, Founder and Managing Partner of PSL Advocates and Solicitors, says, “The Supreme Court has corrected the pre-2005 disparity found in daughters in their progressive decision in Vineeta Sharma v. Rakesh Sharma. The decision with an emphasis is on uneven ground created by its previous conflicting decisions. This essentially means that the Hindu Succession Act 2005, by which daughters were given equal rights in a HUF property, is retrospective in nature i.e. it does not matter that the father was alive on the date of the amendment. Following the widely held earlier position that the daughter can claim rights in the HUF only when her father is alive because the date of the amendment has been terminated. "

He goes on to say, "The issue has also been dealt with in relation to the partition which came into effect in the past and it has been clarified that only those divisions which have been effected by the Meet and the Seema, either by decree Or otherwise remain unaffected. Daughters can claim their rights in all other cases where the partition has not ended. "

The court made the following comments:

1. The provision referred to in section 6 of the Hindu Succession Act, 1956, confers property rights on a daughter born before or after the amendment as a son with the same rights and obligations.

2. Rights can be claimed by a daughter born before 9.9.2005 as provided in Section 6 (1) as to the distribution or separation, partition or testament dispute which occurred before the 20th day of December 2004 Was.

3. Since the father's right to property is from birth, it is not necessary that the father survives till 9.9.2005.

4. The statutory presumption of partition made provisional by section 6 of the Hindu Succession Act, 1956, as originally enacted, did not bring about the actual division or dissolution of the legal right. Daughters should be given an equal share of a son.

5. Verbal segmentation cannot be accepted as a statutory recognized mode of partition.

Nirav Shah, partner, DSK Legal, explains, "Moving forward, families with HUF will need to be very careful whenever they decide to enter a division or family system. The document must clearly state the manner in which the distribution of the family's property is done under division or family arrangement and a daughter must be provided in the same manner as the son and the distribution would have to be done equally."

The court also held that it is clear from the provisions of section 6 that discrimination against the daughter has been overcome, and that she has been provided equal treatment in the case of inheritance in the case of father's property.

This decision paves the way for daughters to claim rights in their father's property before 2005 and treat sons equally.

Choose Independence… Buy Independent House..!

Another year has passed and we are here, celebrating India's Independence Day. While the country is independent, are we really able to pop out of our cocoons and smell freedom? Today, pledge to make yourself independent and take the pledge… buy independent house!

Freedom can mean different things to different people. For some it is away from home, for some it is an option to stay at home, and for some, it is due to a dream home.

 

Here are some simple ways in which a house, house is your house, makes you truly independent.

Freedom from Zamindars (Landlord) - Renting a house often comes with additional rules. The zamindar keeps the last word. Having your own house will give you the freedom to live as you wish and the desire to conform to your lifestyle. Thus, there is no overarching rule on pets, guests and noise. No more gender bias. No more fuss.  

Your house, your rules!

Freedom from rent - Fixed mortgages give you the freedom to plan your finances in advance. Having your own house will save you from sudden rent increases and financial mess.

Freedom from residence insecurity - Home ownership certainly provides protection in various senses financial security of having property in your name and personal safety of being your own shelter. In addition, the ownership of the house frees you from the fear of receiving an eviction notice without informing you in advance.

Freedom to follow your choice - Your home does not force you to live with the interior decoration you did not choose, the furniture that does not suit your needs and the people with whom you are don't. This is your place, your den, you can decorate it as you wish, live with the people you like and of course, enter and exit as per your choice and custom.

Certainly, having a home pushes you a little more towards being independent, liberated and free. So what did you choose for yourself this Independence Day? I select INDEPENDENCE.