Real Estate
How To Identify The Right Reason Before Buying a House
Mar 28th
photo by: Kavanjin Croatia Apartments
Imposition of service tax (from the next fiscal year) on under-developed housing complexes, as proposed in the Budget 2010-11, will lead to increase in property prices, according to real estate companies. Having said that, I’ve particularly noticed, after the budget, articles in newspapers / magazines refer to a similar line that reads — THE TIME IS RIGHT, BUY IT NOW..!
It is quite understandable that in the current scenario where property prices have risen drastically as much as 25 ~ 30% one of the main reasons of buying a house in an under-construction project was better rates, but with these extra add ons like Service Tax and VAT proposed to be levied — will only increase the cost of the property even further. Also, buying your first house has an emotional connection as well hence it is essential to be absolutely clear about why you are buying a home before starting the process.
Before starting any aspect of the process, ensure that you first get together with your family members and seriously consider this basic question — Why are you contemplating a property purchase?
Typically, there could be 5 reasons for wanting to buy a house: Continue reading “How To Identify The Right Reason Before Buying a House” »
5 Points to Consider Before Buying Your Dream Home
May 18th
Have you been waiting for the right time to buy a house? If yes, then this is perhaps the right time if you can afford to buy and get a better deal as real estate prices have come down considerably from their all time high in 2006.
Though buying a house may prove to be a prudent decision during this time of slow down and economic recession, you will still need to be an extra careful while closing the deal; it may not turn out to be as prospective and advantageous as you might have expected. Continue reading “5 Points to Consider Before Buying Your Dream Home” »
Redevelopment of Property
Oct 9th
photo by RedAgenda
In recent times builders have been offering residents of old buildings a handsome amount to get a refurbished flat with additional space.
Who will not grab such a tempting deal? The flat seller not only gets the cash, but also gets a monthly rent for his temporary accommodation. Once the new property is ready, he gets a refurbished, newly-constructed flat, in place of his old one.
Builders do so to redevelop the property and add additional floors to a particular building. They earn money by selling the additional flats. The money paid by the builder to the existing residents depends on whether he asks the resident to shift temporarily or permanently. Continue reading “Redevelopment of Property” »
US Housing Market – Drop in prices
Apr 24th
Photo by Neopixx
This guest-post is by Jeff Miller. He is an Economist by training, a tech geek by inclination, and an IT Manager and a Real Estate Investor by experience. Jeff also knows a number of people who are smarter and better connected than he is and he hopes to share what he has learnt with you in a series of articles that will complement his somewhat lengthy comment to my post Black Money Saves Our Financial Sector.
As I mentioned in US Housing Market Crisis caused by Mortgage Backed Securities, the recasting of the minimum payment loans caused a lot of what we are seeing. Looking back on those loans will give us a clue as to what is going to happen in the housing market.
The minimum payment loans started being mass marketed in 2004. At that time, many of those loans were set to recast after a set interval. There were two intervals, 3 year and 5 year. The 3 year recasts hit in 2007. The 5 year recasts will hit in 2009. So, we know what will be coming in 2009. I don’t think that 2009 will hit us as bad as 2007. For one thing, the institutions will already be geared up to handle the loans (loss mitigation departments, REO departments, etc.). Also, the public will be use to it and is less likely to panic (unless the new media succeeds in its “the sky is falling” reporting). Continue reading “US Housing Market – Drop in prices” »
BKC auction indicates realty slowdown
Mar 21st
As per media reports, the Mumbai Metropolitan Region Development Authority (MMRDA) had recently put five plots on auctions in the G-Block of the Bandra-Kurla Complex, comprising two commercial, two residential and a clubhouse. Out of the these five plots, the authority only managed to sell three plots for Rs1,322 crore. Of these three plots, the authority sold one commercial plot, spanning 24,000 square metre, to Jet Airways for Rs826 crore. This implies a selling price of approximately Rs32,000 per square feet (Rs314,467 per square metre) for the commercial plot. This selling price is at a 31.7% discount to the Wadhwa Builders’ bid of Rs46,806 per square feet (or Rs503,636 per square metre). It is also interesting to note that Jet Airways was the sole bidder for the commercial plot in the recent auction.
With the stock markets experiencing a bear phase it will be interesting to see if prices of real estate also undergo a correction and to what extent.. 5%, 10% … 25%?
