Purchasing Tips

1. Is land a superior speculation when contrasted with the share trading system?

The land showcase is like the share trading system, with its pinnacles and troughs continually appearing to bode well all things considered. Likewise, both markets mirror the economy of the nation and offer great venture openings. In any case, the dangers must be comprehended alongside the open doors. Realty record will acknowledge five times, however not the share trading system.

Putting resources into stocks:

The overall revenue innate in stock speculation has dependably been higher when contrasted with other resource classes. Securities exchange speculations offer favorable circumstances, for example, liquidity and adaptability, which land does not. Stocks likewise offer development rates that the land market can once in a while coordinate

Putting resources into land:

Home proprietorship is the most essential type of land venture. Not at all like stocks, land is a substantial resource that accommodates more prominent mental solace, security and fulfillment. Additionally, the arrival on speculation for land is sensibly steady in view of the marvel of property appreciation. Securities exchanges are far less unsurprising.

2. What per penny of aggregate wage should a man in the age gathering of 25-39 years put resources into land?

At a youthful age, you can contribute 300 for every penny of your aggregate resources by getting for your first house. Specialists trust that your aggregate regularly scheduled payments ought not surpass 30-35 for each penny of your gross month to month wage. This is a decent beginning stage and you should work towards diminishing that number over some stretch of time.

3. What per penny of aggregate salary should a man in the age gathering of 40-60 years put resources into land?

At a youthful age, you can contribute 300 for every penny of your aggregate resources by acquiring for your first house. Specialists trust that your aggregate regularly scheduled payments ought not surpass 30-35 for every penny of your gross month to month wage. This is a decent beginning stage and you should work towards diminishing that number over some undefined time frame of the city, on the off chance that it is from a decent designer and fits your financial plan, yet at the dispatch organize and when you leave, you get some esteem appreciation. That turns into your seed cash. Most banks enable you to leave one advance and take another. Along these lines, you would sell be able to off the littler valued property in a fringe area and utilize that as seed cash to purchase where you might want to remain. Else, you will dependably be behind the market as far as back.

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4. What is the most ideal route for a first-time purchaser to set a financial plan to buy a home?

Numerous new home purchasers get energized and neglect to consider the measure of cost they have to pay to secure a home. Over-desire from your pay would put be able to you in a budgetary anxiety. Your EMI ought not be progressively that 30-40 for each penny of your bring home compensation. On the off chance that the property showcases in your city are extremely costly and you can't manage the cost of the property that you need to remain in, put resources into whatever is reasonable even in the fringe of the city, in the event that it is from a decent engineer and fits your financial plan, however at the dispatch organize and when you leave, you get some esteem appreciation. That turns into your seed cash. Most banks enable you to leave one advance and take another. In this way, you would sell be able to off the littler valued property in a fringe area and utilize that as seed cash to purchase where you might want to remain. Else, you will dependably be behind the market regarding fund.

5. At the point when is the stamp obligation expected to be paid?

When all is said in done, there is Stamp Duty to be paid each time there is an exchange of proprietorship. It is ascertained on the premise of the aggregate estimation of your property. The sum to be paid changes from city to city.

6. What are the elements that one ought to consider while ascertaining the home credit portion every month?

For computing the month to month home credit portion, consider your month to month family wage - now and expected later on. Family pay incorporates yours and also your parent's or companion's pay. Furthermore, your family's present costs, including every single other advance you are adjusting, are imperative to be considered. Try not to spend more than 50 for every penny of the aggregate wage on a month to month EMI.

7. Why do investor's home credit loan fees contrast?

Frequently your own bank (e.g. where you have your compensation account and most saving money connections) will give you the best loan cost. Likewise banks have favored or welcome evaluating and you would benefit be able to from these exceptional plans.

8. Would i be able to go into a deal concurrence with any purchaser without clearing the home loan? What will be the methodology of the exchange?

Make sure to esteem the said property which is sold to a bank. In any case, you will be required to clear the advance of the bank and after that continue to enlist the property for the sake of the purchaser. It is additionally conceivable that you, the new purchaser, and additionally the bank execute the assention at the same time.

Check out Upcoming Project in Ghodbunder Road Thane by Squarefeet Group in Thane

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Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
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A good time to invest in Lower Parel and Wangle Estate, Thane

The last few months seemed to have worked well for Mumbai’s office market. Many transactions have taken place. The demand from the corporates are not limited to under construction buildings only. This development in turn seems to be slowly influencing the residential market as well.

To name a few transactions in the office real estate market that have taken place in the recent past are Dot Solutions and DCT Infotech. The demand for office space in this node of Mumbai is increasing consistently. Not just conglomerates, start-ups are also finding its way into the suburban areas.

Shantanu Chakraborty, a sound engineer who has several popular tele series’ background scores under his credit says, "The line I am in does not follow any schedule. Until recently, I was working with a well-known sound effects professional. I have now decided to open my own studio and work independently. I am looking at Lower Parel for some space and will eventually move to the locality along with my family."

The strong growth in Navi Mumbai's office leasing activity (close to 8 lakh sq ft of absorption in 2015) has generated substantial demand for residential apartments.

Consumer demand

According to a report, localities such as Lower Parel and Wagle Estate, Thane might witness more consumer demand due to the increase in office demand. Apart from this factor, suburban areas are offering attractively priced properties and noteworthy infrastructure developments like the upcoming airport, metro corridor and ease of connectivity with Mumbai and Thane, have attracted the attention of consumers.

Yogika Sharma, a HR senior executive of a finance company based in Thane says, "Most of the employees reside in nearby areas. We have employees who have moved from Mumbai. Thane offers good residential options at a cheaper budget. Therefore, it is becoming a common practice for people to move closer to their offices especially single working professionals and the ones who have joined the company from other parts of the country."

Houses in Lower Parel and Wagle Estate, Thane

Manish Thakre writes on the Magicbricks Forum, "How is the infrastructure developing in areas like Lower Parel and Thane? I want to buy a property for my own use." The real estate of the former is already developed and sought after while the latter is still developing.

The residential inventory of Lower Parel consists of new properties, co-operative societies, under-construction properties as well old existing buildings. The most common property type in the area are apartments of different configurations. The residential market offers 1, 2, 3 and 4BHK units to potential buyers. The first three options are easily available.

The size and price range of these properties are:

The residential inventory of Wagle Estate, Thane consists of co-operative societies and existing buildings. The most common property type in the area are apartments and builder floors of different configuration. The residential market offers 1 and 2BHK units to interested buyers and investors. The size and price range of these properties are:

Experts project an increase in prices for Lower Parel. Accoding to Magicbricks data, the residential supply is low in the market. The rental market performs better than the capital market in this locality. In Wagle Estate, there has been a rise in property prices. Consumer demand has also increased though currently supply is limited. The market has been performing better than last year because of the advent of office hubs. The annual rental yield of Lower Parel is 2.9 percent.

The social infrastructure of Lower Parel is developed as it is a commercial business centre in South Mumbai. Its proximity to Worli Sea Link makes it one of the most sought-after areas. The Worli Sea Link has not only opened the road for good connectivity between Bandra and Lower Parel, it has also brought new opportunities in luxury housing as well. While it has the high class charm of South Mumbai, its location makes it very convenient - 20 minutes from Nariman Point, 15 minutes from BKC and 20 minutes from the airport.

Wagle Estate on the other hand houses many industries, including engineering, electrical, textile, pharma, rubber and electronics companies and more recently IT. Its infrastructure is developed and its proximity to Mumbai city is a major advantage. The social fabric is fairly developed.

Before choosing a locality, make a list of your needs. The locality should be able to cater to them on a daily basis and at the same time should bring you good returns in case you wish to sell off the property. Check, research and read about the areas before putting in your money.

Check out Commercial Property in Wagle Estate, Thane by Squarefeet Group in Thane

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Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India

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Residential realty attracts 60% of overall investment in 2016, Q1 2017: Report

While residential and office real estate remained favourite asset classes for domestic and foreign investors, residential property market has edged the commercial segment in in 2016 and the first quarter of 2017.

During this period, residential projects including townships across India attracted an investment of over Rs 26,000 crore, while commercial projects including IT, on the other hand, got almost half of this amount at slightly over Rs 13,600 crore, showed a JLL India report.

Land attracted 2.5% of the overall investment at Rs 1,065 crore, while retail could attract only 2% or Rs 870 crore due to the lack of quality mall supply, the report added. These investment figures are a combination of debt and equity.

"Only in 2014 did investment in the office asset class go past the corresponding figure for residential. In all the other years from 2010 to 2016, residential has been the preferred asset class for both institutional and private equity (PE) investors. Interestingly, equity flows have reduced in the residential sector in the last four-five years and made way for largely debt and structured instruments," said Shobhit Agarwal, MD - Capital Markets & International Director, JLL India.

According to him, the relative slowdown that this asset class has seen over the past three-four years has made investors somewhat conservative and made them turn to construction debt, last mile funding and bundling receivables to ensure that their investments are protected against the lien of the asset. On the other hand, equity flows in the commercial asset class turned stronger, indicating that large investors are keen to look at equity positions, although the right asset remains a key consideration.

The increasing share of equity financing is a key indicator that investors are looking to become project partners and points towards their strong positive sentiments for commercial assets. A major consideration in recent times for commercial assets has also been the impending launch of REITs (real estate investment trusts) in India. It remains to be seen if REITs will eventually change these sectoral inflows in the years to come.

Immediately prior to the global financial crisis (GFC) in 2007-08, the office market witnessed healthy leasing transactions and bustling construction activity. However, all this traction came to a virtual standstill as the GFC erupted, leading to a host of unfinished buildings and a perceptible lack of space demand. Consequently, there was a sharp decline in office market rents and capital values over the subsequent periods.

Even before the office sector began to come out of the woods and display some green shoots of recovery in 2011, the residential sector had already picked up the slack and was driving the industry forward. Increase in new project launches, sales and price appreciation became the norm and there was enhanced investor activity as well. This asset class became the darling of both institutional and private equity investors who were looking to make good their losses from the office asset class, Agarwal said.

Some strategic investors, however, realized the growth potential that the office asset class had in the long-term in India, and that the lull was a temporary one as occupier activity would again emerge stronger when India regained its edge as a preferred destination for back-offices, high-end software development firms and financial services. These investors banked on the lower capital values and high yields for rent-yielding assets in 2010 and its upside potential.

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Squarefeet Group

Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India

+(91)-22-25452903, 66543333

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Realty in Mumbai: Akshaya Tritiya to boost market for affordable homes

Considering that affordable housing fits into most buyers' budget, many developers are looking forward to cash in on this auspicious occasion by further offering discounts and attractive deals.

Most homebuyers wait for this auspicious day to take the plunge into the realty market as several developers offer schemes and discounts during this period. This year, industry experts are expecting an upward movement in sales on the occasion of Akshaya Tritiya, especially in the affordable housing segment in Mumbai suburbs. Maulik Sheth, director of a construction company, says, "The government's efforts to promote affordable housing and infrastructural development in the city are some of the significant movements the realty market has witnessed in the past year or so which promises better times for this sector going forward."

After the sops given in the Union Budget, now units with bigger area qualify for affordable housing making more units applicable for affordable housing benefits. Manju Yagnik, vice chairperson of a construction company, says, "The announcement of 'infrastructure status' to the affordable housing sector will serve as a significant step in achieving the government's 'Housing for All' mission by 2022. In the past one year, looking at the huge demand, developers have modified their products into affordable housing segment. Currently, buyers and investors are in the wait-and-watch mode. There is a huge demand right now for this segment and the supply is comparatively less especially in the city. Buying a house in the city with less than one crore rupees is not possible right now, but with affordable housing projects it will be possible."

Mumbai suburbs and MMR have multiple options in the affordable and affordable luxury category for the buyers to choose from. Girish Shah, director of a realty company says, "Affordable housing is witnessing rising demand in Mumbai, particularly in the suburban areas. To cater to this requirement, developers are constructing more affordable projects and offering top-notch amenities. However, it is a common practice in India to wait for auspicious festivals to invest in high-value assets. These festivals further spike the demand for properties."

Some experts are also expecting the prices to plunge further in case of affordable homes, keeping up with the demand and supply. Farshid Cooper, director of a leading realty company, says, "There is a clear indication of increased demand in the Mumbai real estate market in the last three months. There have been a slew of transactions in the month of March which has given immense confidence to all the market players specifically in the affordable housing segment. Two key factors have been responsible for driving demand in this sector. The first one is the interest rate reduction which has resulted in considerably lower EMI burden. It has also ensured higher loan eligibility for a large segment of potential buyers, thereby increasing overall market size. And second, the festive occasion makes it an ideal time for buyers to invest in property, encouraging developers to offer aggressive schemes to clients and hence customer should look at cashing in on good deals for their home buying needs."

Most of the developers look to cash in on this opportunity by offering discounts and freebies during festive period which certainly helps to boost their sales. Pakshal Sanghvi, director of a leading realty firm, says, "Though offers play an intrinsic role in real estate purchase, the consumers almost always consider checking the basics like connectivity, infrastructure and various amenities before taking the big leap. The eastern as well as the western suburbs provide a good mix of all the above-mentioned factors, along with the best of offers. In order to make sure that developers cash in maximum during Akshaya Tritiya, they give out amazing offers. This year, giveaways like 10 to 20 gm gold, brand new cars, flexible payment option, waiver on stamp duty are some of the hottest offers this season being given out by various developers."

Check out Residential projects in Kasarvadavali Thane by Squarefeet Group in Thane

You may also contact us at - +91-22-25452903, 66543333 or
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Squarefeet Group

Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India

+(91)-22-25452903, 66543333

info@squarefeetgroup.in

Top 5 factors that make property prices appreciate

Today, not just investors but even end-users check for property price appreciation potential before buying a home. We list the 5 important factors that cause property prices to appreciate

Real estate investors are always keen to buy a property when they know that it will gain in capital appreciation but it is not only property investors who are attracted by this phenomenon. There is also greater interest from end-users for buying rather than renting homes, since real estate appreciation means that their asset becomes a greater source of financial security going forward. Appreciation also opens up the possibility of selling the first property and buying a bigger and better one should the need arise, which usually does as the family grows.

Factors that cause property prices to appreciate

So, what is it that makes residential property prices increase in some locations? The phenomenon of capital value appreciation or growth of a property’s market value over time happens because of various factors, including:

• - The supply and demand dynamics of a particular location.
• - How fiscal inflation is behaving.
• - The interest rates banks charge for home loans, meaning the cost of borrowing.
• - The development of new infrastructure or other new real estate market drivers such as schools, shopping malls, airports or increased public transport facilities in a particular area.
• - Growth in local population, leading to increased demand.

1. Demand and supply:

When there is increasing demand for homes in a certain area, property prices go up if the amount of residential real estate projects being built to meet the demand is not catching up fast enough. In other words, people buying homes for their own use (end-users) are willing to pay more for a home because living in that area is attractive and desirable. End-user demand also attracts the attention of real estate investors, who purchase residential properties with the view of putting them on the market again when supply in the location reduces and prices consequently increase further. The ideal window of opportunity for end-user buyers to buy a home in areas with high appreciation potential, is the period when investor activity has not yet begun in earnest.

2. Fiscal inflation:

Inflation is caused by excess money being in circulation, which essentially causes the value of money to reduce. When this happens, the prices for several input items like the cost of land, construction materials, construction labour and statutory building permits, also increase. Of course, inflation will not result in increased property prices in an area if the location itself is deficient – meaning that it has poor accessibility and social and civic infrastructure, or if it has seen an oversupply of residential projects already.

3. Cost of borrowing (interest rates on home loans):

The upward or downward movement of home loan interest rates, has a direct correlation to real estate appreciation. When the cost of borrowing increases, the demand for homes slows down because fewer buyers can afford the higher EMIs. Likewise, when home loan interest rates decrease markedly, affordability increases and market sentiment improves, leading to higher demand for residential property purchase.

4. Property market drivers:

With specific pertinence to residential real estate, the term ‘market drivers’ refers to all and any developments in an area that positively impact the desirability and convenience of living there. These can include:

• - The development of new office complexes in the area.
• - The arrival of a shopping mall or hypermarket.
• - The proximity of educational institutes and hospitals which reduce traveling time to such important establishments.
• - Zoning regulations in an area that prevent excessive development from happening to cause further densification, thereby, preserving the available open spaces, greenery and overall ambience of the location. This is particularly true in integrated townships.
• - Public transport facilities which ensure that the location is accessible by road, rail or even air.
• - Any new infrastructure projects which boost the overall quality of living in the location, such as flyovers to reduce traffic congestion, water reservoirs, etc.

5. Population growth:

Finally, the growth of population in a location obviously results in increasing demand for housing there. Increased demand directly translates into faster appreciation in real estate prices.

Check out Residential projects in Kasarvadavali Thane by Squarefeet Group in Thane

You may also contact us at - +91-22-25452903, 66543333 or
Email us at - sales@squarefeetgroup.in

Squarefeet Group

Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India

+(91)-22-25452903, 66543333

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Home Loans Based on Credit Rating Finally Arrive in India

In a first for Indian home loan borrowers, Bank of Baroda has announced differential rates for its home loans, linked to the borrower’ credit score. We examine the implications for home loan seekers and the housing finance industry

Your credit history and credit score used to play a decisive role in determining whether you would get a home loan or not and it would stop there. You would get a home loan, if you had a good credit score and would fail to qualify for the home loan, if your credit score was not up to the minimum fixed by the lending institute. Now, Bank of Baroda has gone one step further and will offer differential rates of interest on home loans, based on your credit standing. How does it work? Let us discuss.

What is a credit score?

All banks and NBFCs are required to share the data of financial transactions, with respect to all the loans and credit cards, with one of the credit bureaus. Presently, there are four such bureaus in India but CIBIL (Credit Bureau Information of India Limited) is the pioneer and has the first-mover advantage. These credit bureaus compile, collate and maintain the data of borrowers, on the basis of the payment history received from various participating institutes.

CIBIL has a scoring methodology, to indicate the credit worthiness of a borrower, ranging between 300 and 900. Higher the score, better is the person’s creditworthiness. It is also proof of good behaviour, with respect to the credit facilities availed by the person. As per the CIBIL’s website 79% of the loans approved, are for individuals with a score greater than 750. So, 750 is considered as the standard score for loan eligibility by lenders. All the lenders request for such credit history from any of the credit bureaus, before giving a home loan to a borrower.

As CIBIL has the largest database of borrowers, therefore, banks mostly rely on the CIBIL score while lending.

What is Bank of Baroda offering?

Presently, the banks are required to benchmark their lending rates against the MCLR (marginal cost of funds-based lending rate). The banks are supposed to have this MCLR for different periods, based on their marginal cost of borrowing for the corresponding period. The banks are not allowed to lend below the MCLR. In effect, the banks keep an extra margin over their MCLR, for fixing home loans. This margin is called as the ‘spread’.

The present MCLR of Bank of Baroda is 8.35%. It has decided to reward people with good credit standing, by offering them home loans without charging any spread (i.e., by lending to them at the MCLR of 8.35%). So, an individual who has a credit score of 760 and above, will be given a home loan at 8.35%. For borrowers with credit scores between 725 and 759, the rate of interest will be 8.85% with a spread of 0.50%. Borrowers with credit scores of 724 and below, will have to pay 9.35% – a spread of 1% over the MCLR. Hence, a borrower with excellent credit score, stands to gain a 1% difference in the rate of interest.

Savings on home loan EMI

How it translates into actual numbers, can be better understood by an example. A person with a credit score of 825 and who takes a home loan of Rs 1 crore for 20 years at 8.35%, will have a monthly EMI of Rs 85,835. However, a person with a credit score of 715, who gets the home loan at 9.35%, will pay a monthly EMI of Rs 92,236. This translates into a difference of Rs 6,401 every month. Over the tenure of the loan (20 years), the person with the lower credit score will pay an extra amount of Rs 15.36 lakhs – almost 15% of the loan amount.

The Rationale Behind Offering Concessional Home Loan Interest rates

Why do banks offer concessional rates to a person with a higher credit score than someone with a lower score, when both the borrowers will repay their home loan? It is because the probability that the person with a CIBIL score of more than 760 will default on his loan payment, is lower than the probability of default by a person with a lower score. Moreover, banks have to incur additional expenses for recovering the dues from even secured borrowers like home loan borrowers and therefore, the premium.

This can be better explained by the higher rate of interest charged on personal loans than on home loan. Personal loans are given without any security and therefore, the banks run higher risk of not getting the loan repaid, than a person who has taken a home loan as the bank has the house as security.

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Satyam Building, 2nd Floor, M G Road,
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Naupada, Thane West - 400601
Maharashtra, India

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Ways to Use Patterns For a Dramatic Home Decor

Move over minimalism. Patterns are taking over! Here are unexpected ways to use different patterns for a dramatic Home Decor.

If you’re calmed by symmetry, opt for geometric patterns on the walls. You can then mix and match the colours and patterns in your decor items with it.

If you like the idea of fluid patterns on the wall, but are not a big fan of floral or something too busy, a water colour inspired wallpaper is the way to go.

If you’re a fan of florals or nature-inspired patterns, use it in your drapes and upholstery, like cushions and pillow covers.

A complete print-on-print look is sometimes difficult to pull off without the space looking cluttered, but using lighter colours and complementary designs can make your space look fashionable and cozy!

If you’re wary of using too many patterns in your main living areas, you can try this style in your kitchen. With the right colours, it can make the space look vibrant!

Try to offset the business of a patterned wall or upholstery, with subdued complementary colours.

Patterns are not only limited to wallpaper or pieces of decor. You can create the illusion of patterns with different kinds of indoor plants as well! Use nature to your advantage, while making your home more green at the same time.

Check out Property in Ghodbunder Road, Thane by Squarefeet Group in Thane

You may also contact us at - +91-22-25452903, 66543333 or
Email us at - sales@squarefeetgroup.in

Squarefeet Group

Satyam Building, 2nd Floor, M G Road,
Opposite Navpada Telephone Exchange, Above Punjab National Bank,
Naupada, Thane West - 400601
Maharashtra, India

+(91)-22-25452903, 66543333

info@squarefeetgroup.in