Buying a Commercial Property That Guarantee Success and Prosperity

The real estate market in India has grown by leaps and bounds since the implementation of RERA, Smart City Mission and Start-up India Mission. These schemes created high demand for commercial establishments. As the Indian population is growing rapidly, the demand for commercial real estate will never decrease. Therefore, investing in commercial properties can help you achieve a higher return on investment. Okay, investing in a commercial real estate can be a bit scary because you need to invest more money. But with a few simple tips in mind, you can invest in a property that will help you emerge successfully.

1. Research the market

Before investing in real estate, you need to pay attention to market trends. Also find out what kind of qualities are in high demand. Before deciding on what to buy, you need to analyze the scope of future development in the regions.

Buying a property in a developing area is much better than buying a property in a well-established location. The former choice is cheaper and it gives you a higher return on investment.

2. Consult a financial expert

When you have no prior experience in this area, it can be difficult to estimate the exact cost of purchasing a commercial actual. Therefore, before purchasing a property, you should consult a financial advisor and plan your budget accordingly. Tax implications can be complex to analyze in a real estate transaction.

3. Analyze your financial situation

Before investing in a commercial establishment, you should analyze your financial situation. Make sure you will be comfortable paying its EMI, even if there is no rental income from the property. Also, before purchasing a property, you should analyze the scope of income from it. In addition, you should also calculate the risks involved in the entire business.

4. Plan your layout well

Whether you are building an office space, shop, mall, or simply renovating it, the layout has a big impact on operational efficiency. This will directly affect your scope of making money by rent or reseller. Therefore, you should prepare a smart plan to refurbish or design the property. Seek the help of an architect if needed.

5. Choose the right builder

You should always buy a commercial property from a reputable builder. Therefore, does a background check of the builder and take a review from those who have purchased the property from the builder. Also, make sure the builder is specialized in the field. The history of a builder should also be considered in the context of the completion of the project.

Is it wise to invest in the Indian real estate market in 2020-2021?

Finance Minister, Nirmala Sitharaman presented the Union Budget 2020-21 on 1 February. Highlights of the budget for the real estate sector are as follows:

Deductions on affordable housing were allowed on housing loans sanctioned on or before March 31, 2020. In order to ensure that more people take advantage of this benefit and to pursue affordable housing, the date of loan approval has been proposed to be extended by 1 year. To boost the supply of affordable homes in the country, a tax holiday is being provided on the profits earned by the developers of the affordable housing project till 31 March 2020.

Currently in real estate transactions, when taxing income from capital gains, business profits, and other sources, if the consideration value is less than the 5% circle rate, the difference is counted as income for both the buyer and seller. To reduce the difficulty in real estate transactions and provide relief to the sector, it has been proposed that the limit be increased from 5% to 10%.

An investment of Rs 100 crore will be made on infrastructure in the next 5 years in various sectors like housing, infrastructure, energy, healthcare, educational institutions, transport, logistics and warehousing, irrigation projects etc.

The year 2019 was a period of many highs and lows for the Indian real estate market. The ongoing crisis resulted in a decrease in liquidity and a slower pace of sales improvement. However, on the positive end, the successful launch of India's first real estate investment trust (REIT) opened up new avenues for investment, while several positive government initiatives provided much needed relief to the sector. 

According to research, the housing sale price of India's top 9 listed players reached in the 2nd and 3rd quarters of 2019, an increase of 5%. 2019 saw a 4–5% annual increase in housing sales with over 2.58 lakh homes sold during the year. The new housing launches in 2019 saw 18-20% annual growth and developers are expecting sustained efforts of the central government such as additional cuts on loan interest, GST rate cuts, alternative investment funds for stalled projects and credit guarantee scheme changes in the sector will be strengthened.

Builders Priority to Clean Ready-to-Occupancy Inventory During COVID-19 Outbreak

Real estate sales in India were improving in the first quarter of 2020, until the social distancing advisory was implemented by the government, with the outbreak of the COVID-19 virus continuing, reducing site visits. Subsequent lockdown forced house buyers to postpone the decision to buy their home until the government and the market had more clarity than stability.

The economic relief measures announced by the government are extremely positive for the real estate sector on a large scale. This measure will compensate for the short-term impact of the crisis and increase liquidity, thereby easing credit flow and reducing the pressure of delivery deadlines. This will allow real estate developers to reorganize their business strategies and focus on high priority operations without additional financial burden. It will also ease home buyers' concerns and accelerate the completion of delayed projects. This step highlights the magnitude of the realty sector in India. Being the second largest employer in India, it is mandatory to protect the welfare and interests of all stakeholders.

Currently, the priority of most builders is to sell ready-to-occupant inventory. Now that the government has relaxed the lockout, the market may pick up momentum again, with more buyers entering the market. Although sales will be comparatively slow, it is unlikely to affect real estate prices overall, which has also maintained flexibility during demonetization and other reformist changes previously announced by the government .

In these challenging times, as people have realized the importance of owning a house, the demand for residential properties may increase in metro cities.

Better demand for property is likely to have a positive impact on property prices.

The place for price appreciation in real estate as the city offers quality housing options at affordable rates. Although the lockdown caused a short period of delay in construction activities, a reduction in prices is unlikely.

How to get flat on rent for nuclear family?

Moving to a new city or changing a house within the same city is not a plain-boating task. But it becomes even more difficult when you are planning to hang out with your children. In most Indian cities, the trend for a nuclear family is becoming more popular. As most of the parents are working, they stay out for a considerable part of the day. Therefore, it is important to choose a home that provides protection and comfort to the children while they are alone at home. In this write-up, we have shared some great tips for hunting the perfect flat for your small family.

Look for a decent locality

Although it can be difficult to figure out which area would be best suited for renting a flat, but with online research, you can easily zero in on the best terrain in the new city. You have to see that your favorite place hosts excellent social infrastructure. Also, it should host a crime-free environment.

Safety is foremost

If you want your family to be safe even when you are not at home, make sure that your area hosts a crime-free environment. Also, there should be proper security provisions in the society such as security guards, CCTV cameras and alarms. In addition, make sure your apartment includes proper locks and window grills. In addition to protection from criminal intrusion, you should also watch for protection from fire.

Find sufficient space

If you have kids, your flat should comprise sufficient space. If you are opting for a fully-furnished house, then check that there is enough storage furniture to attain a clutter-free look. Also, the kitchen should have an eat-in corner so that you can help your kids in doing the homework while preparing the meal. Apart from this, make sure that there is a kids’ playground within the apartment complex where they can play.

Good neighbors

While staying in the apartment, we enjoy our privacy to the fullest. But we cannot remain isolated and have good neighbors to rely on during any emergency. When looking for a family home, your priority should be to find an apartment next to a more decent family, which includes a child of the same age group. If you are new to the city, you should prefer to live near a family friend's house.

Prevent potential Hazards

If living in an apartment is your ultimate choice, keep in mind that not all apartments are safe for children. So, properly inspect well and look for potential hazards present there. Find out if paint, cement, flooring and other components of the home are not made of low-quality hazardous elements. Also, make sure that the railing of the balconies is not low enough that the child may accidentally fall.

So, if you want to rent a flat for your small family, and then you should consider your needs first. Keeping the above tips in mind, you can easily find decent accommodation for your family. Well, the best thing about living in the current world is that you can find hundreds of property options online. But make sure that you inspect any property and neighborhood thoroughly before closing the deal.

Simple Tips to Buy Earthquake Proof Flat

Earthquakes are considered to be the most dangerous natural disaster that causes mass destruction. In the past, we have seen many countries committing suicide due to this natural disaster as a massive death as well as mass destruction of properties. To protect your family from such devastating situations, you should buy an earthquake resistant apartment or house.

You will be surprised to know that earthquakes are the most vulnerable buildings in our country. In December 2014, the Supreme Court of India passed clear instructions on earthquake safety through a PIL. It states that all multi-storied buildings over five storey's should have an engraved metal plate mentioning the building's anti-earthquake range. But despite this, real estate developers have failed to maintain a high level of transparency in this regard.

Therefore, if you want to buy earthquake-resistant flats, you need to be cautious. In this regard, here, we have shared some useful tips.

Check the location - About 54 percent of the land in India is at high risk of earthquake. The National Center for Seismology has divided the entire country into five zones, namely, zones 1, 2, 3, 4, and 5. While Zone 5 areas are susceptible to high-intensity earthquakes, areas under Zone 1 are the safest. The entire northeastern region, the Himalayan region and the eastern and western parts of India are located in a high seismic zone. Therefore, if you live in these areas, make sure that your house or apartment is designed to withstand earthquakes with a minimum force of 7.

Inspect the structure of the house- Despite the strict provisions by the government for the construction of earthquake resistant houses; most buildings in India do not follow the prescribed techniques for earthquake resistant construction. To find out if your house is earthquake resistant, it is best to hire a civil engineer.

Look for an earthquake-resistant foundation - An anti-earthquake house is one that has a solid foundation. Ideally, the foundation of the building should be raised above the earth to resist ground forces. The foundation must include a bolt. And, the foundation should be built on a flexible pad made of steel, rubber and lead. This ensures that during an earthquake, isolators vibrate while the structure remains stable.

Find out if the house is made of earthquake-resistant material or not — usually houses are made of stacked bricks that are laid with mortar. But such construction does not ensure earthquake protection. Civil engineering experts suggest that the most dangerous structures are constructions with concrete blocks or unconfined bricks. Ideally, if your area is prone to earthquakes, the walls of your house should be made of concrete and wood. And, if your area is at high risk of earthquake, make sure the walls of your future house are reinforced through additional concrete or steel slabs.

BUY/RENT/SELL property online is safe?

The Internet has become a basic necessity of everyone's life, the trend of buying property online for the last few years. Today, there are number of portals where one can advertise, buy, sell or rent a property. Major real estate developers are taking steps to strengthen their online presence where shoppers can check prices and designs. In the current scenario where many reputed real estate businesses are trying to rent or sell their properties online, and with great offers. In that case the buyer gets a lot of benefits.

Advantages of buying / renting / selling property online:-

Booking amount is cheap: In offline scenario the booking amount is at least 5% of the value of the property and if you buy the property online then advance booking payment is very nominal 10,000 to 20,000 which is less than offline booking amount. Book a property online. If the buyer is sure to buy the property 100% then he will lose the booking amount.

Convenient for the buyer: Buying property online has become easy and convenient where the buyer can make a booking from the comfort of their home. Contacting several agents to obtain information about the property, which is tedious work, is also terminated.

Choosing a property online has the option of taking a visual tour: Many property portals or websites offer a visual tour to the potential buyer where you can actually see every nook and corner of the property / house. They also provide 24-hour customer service support for property or booking related questions. This helps in saving the customer's money, time and effort. Otherwise he would have to visit the property individually for each short query.

Research: The buyer can compare properties online, checking the correct property rates using a website or portal tool. The buyer can also read the project description and locality details, reviewing the builder which will help them finalize the property and make decisions.

Risk in buying / renting / selling property online:-

Some property developers provide fake information and pictures about the property and simply submit it to the online portal to drive traffic and silly people.

In that case verified property builders come into play. Make sure that you do the proper research and invest or buy property that is verified and certified.