Category: Real Estate

RERA – ADVANTAGES & DISADVANTAGES

The Bill of Real Estate Regulatory Authority (RERA) was introduced and approved in 2016. The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate Regulatory (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution. For on-going projects which have not received completion certificate on the date of commencement of the Act, will have to seek registrations within 3 months. Application for registration must be either approved or rejected within a period of 30 days from the date of application by the RERA. On successful registration, the promoter of the project will be provided with a registration number, a login id, and password for the applicants to fill up essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project cost or three years’ imprisonment may be imposed. Real estate agents who facilitate selling or purchase of properties must take prior registration.

Advantages of RERA:

  • Right to Information about the Property. This is in favour of the buyers.
  • Standardized carpet area.
  • Builders will be held responsible for any defect/fault in the construction.
  • Grievances will be addressed and solved quickly.
  • Builders won’t be able to delay the projects.
  • Foreign investors would be attracted due to transparency.

Disadvantages of RERA:
Some of the disadvantages are for Developers:

  • Developers cannot use this fund in other projects hence new projects cannot be taken up on account of fund of previous projects.
  • Regulation requires approvals and permissions which may result in delay of starting/finishing of projects.
  • Loss of interest of builders in Real estate projects due to strict regulations and reduced profit.
  • Real estate has good employability potentials, but due to RERA developers are discouraged hence employment opportunities are lost.
  • Real estate involves use of construction materials which are means of source of earning to many small and large scale groups but due to RERA the number of new projects are reduced hence demand of materials is reduced therefore, it has effect on economy and employment both .

HAVE YOU EVER THOUGHT ABOUT HOW THE RICH JUST KEEP GETTING RICHER?

Most people make a living based on the physical work they do, earning a paycheck every few weeks in exchange for that work. Regardless of whether you get paid an annual salary sitting at a desk with a computer or are paid by the hour standing on a factory floor, at the end of the day you are making a living based on what you produce with your time. This is called active income because you must actively continue to work in order to maintain that income stream.

If you stop working, whether it’s due to an illness, a layoff, or just because you are reaching the age of retirement, that income stream ends.

Meanwhile, sophisticated investors have learned that the key to financial stability is through passive income. Passive income is the ability to earn a steady income stream and grow your wealth even when you are not working. Most individuals acquire passive income through investing.

The most widely known and prevalent form of investing is owning stock in publicly traded companies through the stock market – but there are more effective ways to earn money without actively working. While the average investor only invests in publicly traded stocks and bonds, high net worth investors tend also to invest in private assets to diversify their income streams, understanding that diversification is the most likely way to mitigate risk and maximize returns.

One of the most common differences between a wealthy investor’s portfolio and the average investor’s holdings is that wealthy investors tend to own more private real estate investments.

Real estate as an investment has been a top performing asset class for decades because it can provide both consistent income from rents as well as the potential for long-term appreciation. Real estate is also scarce, as there is only so much land. As Mark Twain once said, “Buy land, they aren’t making it anymore.”

Food and shelter are the two most fundamental material human needs. They have intrinsic value, which means they can act as a hedge against inflation. Moreover, as cities grow, demand for real estate increases, since more people need more places to live, work, eat and shop. This is why real estate has historically appreciated in value over time and produced wealth for those who own it. Ironically, passive income is usually taxed at a lower percentage rate than active income, especially sheltered income from real estate.

The quality of real estate as an investment and is why one can start a company with an aim to democratize access to this largely inaccessible, high value asset class. Over a period of time, after a study of market around, it’s observed that most of the people could not invest in real estate the way they could invest in the stocks. Buildings are all around, and yet most people do not own any property – not even a fraction of one – except maybe their home.

WEST HYDERABAD – PHASE OF REAL ESTATE

Hyderabad is a rapidly expanding city in all the directions. There are many ventures popping up towards western direction of the city making it to expand in its area while consuming the surrounding sub-urban areas and towns into it. The western region of Hyderabad is growing as a residential and commercial destination with IT and service professionals rapidly inhabiting in this part of the city. Affordable prices, presence of IT companies, special economic zones (SEZs) and availability of commercial space made this region to become a popular residential destination.

According to a survey report, West of Hyderabad is opted as a suitable residential area by nine out of ten people working in that area due to latest developments taking place to make the residents comfortable in meeting their day to day requirements and also commutable distance to their work place enabling them to spend additional time with their families. It is observed that most of the real estate development is taking place in the western part of the city, especially in the areas close to Hitec City and Gachibowli.

Western part of Hyderabad city is an advisable place for the investors to invest in real estate as per the current situation of growth in that direction. A couple of places, that are growing are :

Madhapur : Madhapur is one of the most in demand area in West Hyderabad due to the presence of renowned IT companies such as Google, Infosys, IBM, Dell, Amazon and many more companies. Currently, the residential property prices at this place are ranging around Rs.15,000 to Rs.20,000/- per sq. ft. Madhapur is a busy corporate area with business parks and the large Inorbit Mall, with high-end local and international brands and a food court. Indian and global restaurants and swanky bars on Hitech City Road cater to business travelers and local professionals. Surrounded by granite rocks, Durgam Cheruvu, or Secret Lake, has an artificial waterfall and floating fountain, and is popular for boating. All this and much more makes it highly desirable area.

Gachibowli : Gachibowli is a suburb of Hyderabad, situated about 5 km from HITEC City, another IT hub. It has grown into a software hub for companies operating from Hyderabad. There had a lot of residential projects emerging in this area from the last a couple of years and still extending. Over supply of properties is a primary reason for stable property prices in this area. However, the advantages of this location made it suitable for both purchase and healthy rental option. Gachibowli not only has business parks with tech company offices, but also campuses such as University of Hyderabad and other educational institutions. Lounge bars and upscale Indian and international restaurants cater to those who work in the area or live in nearby high-rise apartments.

Kukatpally : Kukatpally was a suburb located in north western part of Hyderabad, which has emerged into a major residential locality in the region with a lot of open plots, apartments, independent houses and villas at affordable prices. Upon that, connectivity by Hyderabad metro pushed property prices significantly here. Commercially, Kukatpally has grown to such an extent that all the facilities required by the people residing in this place can obtain without a search. It has got many number of international schools, well equipped hospitals, JNTU University, and many more.

Infrastructure :
Though commercial development is a vital growth factor for west Hyderabad, the infrastructure developments too have made the region a sought after investment destination. The infrastructure projects which held the potential of investments in this region were ORR, RGIA, Metro connectivity and nearby MNCs. It is still in the process of expansion to hold many more projects in the area, which is making it an ideal investment destination for investors.

Things to consider for open plots

Plots are the pieces of land where people dream of giving their imagination a graceful structure. Land being limited, its value keeps increasing with time and is transferable to the next generations. It has been a well-known fact that plots score better over other property types in terms of returns. Thus, if one can manage to strike a good or rather ‘safe’ deal, buying a plot can be a rewarding purchase considering the increase in property prices. But before you finally take that bold step of purchasing, there are some vital factors to be considered to ensure that you are dealing with the right seller and investing in a plot approved by the town planning department or the concerned authority. We should be brave and be like an investigator to know more about the plot. Here are few mandatory things that everyone should know before purchasing an open land in Hyderabad and adjacent areas:

  • Location:It is important that you determine the location of the plot by considering its proximity to the important areas within the city. Do not get lured by less priced land in faraway areas with least development. In addition to plot location and its growth prospects, another very important factor to keep in mind while purchasing a plot is the potential of the plot. Also, check for arrangements such as water and other basic amenities.
  • Check the real value of land: Rather than blindly rushing in to buy a plot that seems cheaper to you, it is advisable to do your research well and consult a real estate expert to determine the value of the plot/land. After all the initial checks, you must negotiate well with the seller on the piece of land.
  • Size of the Plot/land: If you are looking to buy plot or land for the purpose of living at a later stage, it is advisable to first understand your requirement. Ensure to check on built-up-area you will need to build your dream home. Topography and soil are another two vital factors to consider while buying the plot.
  • Verify Title Deed: Check whether the seller has a right over the property. The first step is to see the title deed of the land which you are going to buy. Confirm whether the land is in the name of the seller and that the full right to sell the land lies with him and no other person. It is always better to get the original deed examined by a reputed lawyer.
  • Check Encumbrance Certificate: Before buying a plot, it is important to confirm that the land is free from legal dues. For this, check Encumbrance Certificate for at least 30 years. Given at the Sub-registrar’s office, this states that the said land does not have any legal dues and complaints.
  • Necessary Approvals by Local Body: Verify whether the plot or the entire layout has been approved by the City Development Corporation and the local body. Ask for the necessary approval documents and if possible get it verified by a lawyer. In case of a large layout where builder plans to develop the plot, ensure that the planning permission and building approval has been obtained from the City Development Corporation.
  • Release Certificate: In some cases, the land may have been pledged to obtain a bank loan. In such a scenario, you will have to get a release certificate from the bank, which ensures that the loan on the land has been completely repaid. But if there are more than one owner, do take the certificate from all the people involved.
  • Property Tax Receipts & Bills: To free yourself from any taxation issues, it is recommended that you ask the seller (of plot) for previous property tax receipts that he may have paid along with other bills related to the plot. The receipts will ensure that you don’t have to deal with any taxation-related issues of the seller.
  • Verify the land-use: It is very important to verify the land-use zone as per the city master plan for the plot. You can get the city master plan from the local body office in your respective city.
  • Do your research: Be sure to research any contingencies, which may hinder the development of the property. For this, you can probably refer to or participate in various online real estate forums and understand or identify any issues in the plot. Determine if the plot has (or is proposed) the necessary infrastructure to build your home. There should also be a deed showing right-of-way, allowing the right to build a public road or accessibility to the land.
  • Verify the builder: One may often hear that ‘the piece of land is under litigation’ or some other issues. Hence, it is recommended that you do a cross-verification of the seller (in many cases it is the builder). You could possibly verify the past or current projects (plots) of the concerned builder or even post your queries on the online real estate forums. This will give you some idea about the builder credibility and reliability.

Things to be considered before purchasing a plot from a real estate company:

  • Industry Experience of the Company: We should know about years of experience they have in this field, as businesses with more experience would ensure a secure and comfortable living space to their customers. They will support their customers (buyers) from land purchase to the construction of your dream home.
  • Details about the type of Properties they sell: Properties in a crowded & remote area does not give us comfort and peaceful living space. Never prefer such real estate company which is offering these kinds of plots to its customers. Understand what kind of geographic areas and lands the companies are selling and then make a decision.
  • Additional benefits along with the plot: Venture projects always offer huge benefits to its customers such as resort facility, long-term plantation benefits, wide indoor and outdoor gaming spaces, etc.
  • Previous Clients and Completed Projects Information: Based on the number of clients they served, we can analyze the company’s brand and service quality in the industry. Don’t be panic to ask about their client information. Dive deep to know the details of completed projects and take feedback from the present residents.
  • Compare the plot price: Comparing the value of the plot that we selected with other venture projects is always a good strategy. Filter it out and select the best one which is low in price.

When you have finally selected the land / immovable property to buy, you need to register the same with the authority concerned. Once a property is registered, it means that you, in whose favor the property is registered, are the lawful owner of the premise and is fully responsible for it in all respects. Through registration of Sale deed, a person is able to acquire the rights of the property from the date of execution of the deed.

Loan for Buying a Plot

  • Banks and financial institutes offer “Land Loan” or “Land Purchase loan”. A land loan is a financing option that is meant to be used just for the purchase of land.
  • Banks usually insist that the land you are buying, whether it is for your house or for commercial purpose, should be from a development authority or from a society, implying that it should be a legally safe land.

Tax benefits on a Land Loan

  • One thing that you must remember is that there are no tax sops if you take a loan to buy a plot of land. Normally, lenders will not finance more than 60-70 per cent of the total cost of the plot and the remaining has to come from your sources.
  • However, if you build a house on that plot of land, you will be eligible for both Land Loan and Home construction loan. Land loan enables you to buy a plot of land and while Home construction loan enables you to construct the home in the plot you purchased.
  • The tax deductions will be applicable only in the year in which the construction is completed. In that year interest on land loan as well as the construction loan till the end of the previous year shall be taken together and one-fifth of this cumulative interest plus the interest payable for the specific year will be eligible for deduction. The principal repayment you make on your home loan is also eligible for income deduction under Section 80C.

Advantages of investing in Open Plots

Hyderabad is at the forefront of massive growth in the Real Estate market. While the property market is moving at a slow pace in many cities across India, the Hyderabad market has shown impressive growth. Investing in land or open plots is considered to be most desirable as compared to any other investment option. The major benefit of investing in Real Estate is strong security for the future. The land can be sold and huge profits can be earned out of it.

So, if you are planning to invest in land / open plots in Hyderabad, then contact Dhruva Projects which offers both HMDA & DTCP approved plots. Investment in a plot is quite profitable and let’s have a look at some of the advantages:

  • The most solid asset – The value of open plots will always be on a constant rise and the investor will experience guaranteed profits in the future.
  • Lower Investment Costs- A land’s cost is relatively lower when compared to other types of investment like residential apartments or individual houses. This makes it more affordable and great capital investment for investors with a lower budget.
  • Customisation & Flexibility – Investing in an open plot gives you the freedom to customize the place according to your needs in the future, if required.
  • No maintenance costs – Unlike other real estate investments, open plots have no maintenance costs attached to them. Even the most hands-off investor can purchase land without having to worry about regular upkeep.
  • Timely possession without any hassle – If an investor invests in a home that is being constructed, he has to wait till the construction is not complete which may take a lot of time. On the other hand, investing in open plots is free from any such hassle and the possession is handed over to the owner almost immediately.

If you are looking to invest in open plots that have all amenities like well-developed roads, connectivity, water, electricity, street lights, sewage, walkways and access to commercial amenities, get in touch with our team.

Why invest in Dhruva?

Dhruva is well positioned in the real estate market and ensures that customers get a real deal for their money. We believe in zero compromise in terms of quality of work, absolute devotion to customer satisfaction, transparency and abiding courtesy in all matters of business exchange, and adherence to the highest standards of professionalism. Here are 5 reasons to invest with us:

1. Experienced Team –
Our Management Team has 2 decades of experience in the Real Estate business which make them an expert in this domain. Our work revolves around creating ‘quality’ with immense passion

2. Approved layouts –
Each plot up for sale is approved by DTCP/ HMDA which makes it a safe and legal investment option for people to purchase. This has helped us in becoming the most preferred real estate brand in Hyderabad.

3. Affordable properties –
With Dhruva, owning a plot is an inexpensive transaction. With plots starting as low as Rs 10 Lakhs, we make dreams practical and affordable. We want to make land purchase convenient and comfortable.

4. Strategic Locations-
Dhruva strategically plans its sites in promising areas wherein customers can reap fruitful benefits of their investment. They can be rest assured that their future is secure in our hands.

5. Credible organisation –
Our aim is to help you get the perfect location, layout, and price for ploughing in the property . Our team will always be readily available to answer your queries, and help you navigate through the entire buying process swiftly.

We firmly believe that there are no shortcuts to quality and we also want to transform the way people perceive quality.

Why reality seems the best for NRI’s?

Why reality seems the best for NRI’s?

We can’t deny the fact that the outbreak of Covid-19 has had a deep impact on the realty market in India. Additionally, the potential buyers have been quite apprehensive whether to invest now or wait. Historically, the Indian real estate market has been resilient, and in spite of the slowdown that the industry witnessed towards the end of March and the beginning of April this year, in the past few weeks buyers have become more active and interestingly the demand continues to soar from the NRI clientele.

As per a report by 360 Realtors, India’s leading real estate advisory, in FY 21, a total of $13.1 billion of NRI capital is expected to enter the Indian housing industry, growing by 5% on a YoY basis.

NRI’s have a significant chunk of investment in the Indian Real estate market. Post RERA implementation, the confidence levels of NRIs has grown manifold and they have played a vital role in the upward trend of the Indian real estate. Interestingly, NRIs are not buying with the intention of end-use, but many are entering the market with a pure investment purpose. Apart from this, improved outlook of the economy on global platforms is bringing back those investors into the field who were hesitant to invest earlier. This combination undoubtedly makes India a hot destination for investments.

Tax exemption

NRIs can invest in real estate in India and can still manage to save tax like a regular Indian resident. Tax deduction on home loans on principle repayment and interest component can be claimed by the NRIs. Apart from this, for a property sold after two years from the date of purchase, profit so earned on the capital gain is exempted from the income tax.

Rental income

NRIs can invest and earn rental income in India without any trouble. Though the 30 per cent TDS (tax deducted at source) has to be deducted by the tenant, the remaining amount can be repatriated under the Foreign Exchange Management Act rules. This proceeds earned through the sale of immovable property in India can also be repatriated under the act.

Global uncertainty will further trigger NRI investments

NRI’s will continue to get drawn towards the Indian real estate market in big volume in the future too. Apart from an emotional connection with the country of their origin, a weakening Indian rupee & discounted prices of Indian properties will act as an important stimulant.

We, at Dhruva, provide you with the best investment avenues, solutions for your property investment and value for your investment.

Sai Kshetra is where your memories begin or multiply

Dhruva Projects brings its brand new offering called Sai Kshetra. It is affordable and comfortable. But there’s a lot more.

Wherever we go, all we see is people in masks and the fear they are grappling with. The pandemic is far from over. But there is one thing this pandemic has taught us: staying home is our best chance to keep the spread in check. Home! It’s the best place to be, isn’t it?

Thankfully, the pandemic hasn’t taken away people’s hopes of getting a home for themselves. The real estate market has expanded if not shrunk because the situation has forced people to stay indoors to work from home. Those in search of new properties have diversified their thinking and search for homes even if they are quite far away from their workplace. Many real estate agents, especially Dhruva, have made it a point to keep their customers abreast of all the latest developments in the industry. Dhruva, in particular, has put its best foot forward to stand by its commitment to bring the most affordable properties to people and make their dreams come true. There is a promise, too: to ensure customers get high returns for their investment on properties and land over time.

After the success of the Green Valley project at Shadnagar, Dhruva is now popularizing Sai Kshetra Premium Residential Plots at Maheshwaram. What makes Sai Kshetra so affordable and livable? Is it just another project or an option for people to choose from? Well, check out its USPs and decide for yourself.

Sai Kshetra is located at just a two-minute drive from Electronic Sez at Maheshwaram, and a 10-minute drive from Wipro, Tummalur, Fab City SEZ. It’s an easy exit to merge with the Bengaluru Highway, and of course comfortably close to the Rajiv Gandhi International Airport. Connectivity to major highways and business hubs aside, its proximity to commercial and entertainment centres while keeping nature at its core gives Sai Kshetra the edge over other properties around. The HMDA-approved layouts, 134 in number, spread over 76593 Sq. Yds, are perfectly planned to include plantations, children’s play areas and expectation-exceeding facilities such as Rainwater Harvesting, underground drainage, and overhead water tanks, among others. The foundation is set up perfectly for you to build your dream home.

The answer to whether or not Sai Kshetra should be an investment option is an obvious yes. We are here to help you get the best out of your decision to invest in Sai Kshetra. We’re only a call away from getting you started on your memorable “home” investment.

Think of getting a home now!

There’s no end in sight with the pandemic. And there’s no better time to invest in a home that works for a living and working, too!

We’ve seen enough of the pandemic and the world is already praying for it to see itself off of the face of Earth. It has forced us to rethink our approach to life: from something as simple as stepping out to something as big as purchasing a house.

For many, spending a thousand bucks has taken a new definition because of the uncertainty surrounding life. “What if I lose my job?” “Can I save this money for healthcare?” “My home is not just a home now, it is an office, too.” These are some questions and thoughts in a common man’s mind right now. In short, people are thinking about reconsidering investment options.

When it comes to purchasing a house, there could be a cloud of doubt around the option. Because one is not sure if it will attract buyers considering “location, especially to work, is no longer relevant now.” How does it affect pricing and decision-making?

The question you need to ask yourself is: “Do I need a house for myself now? Do I need another house for myself now?” Remember that land or property are key immovable assets that gain value over time. The Indian real estate market has seen a dip initially but is recovering because there is enthusiasm in the buyers’ minds around what it could do for them, considering that they will make it both their home and work! With progressive policy reforms like RERA and GST, there is a lot of positivity in the market. A lot of trusted property developers & sellers like Dhruva Projects have only upped their commitment to bring only the best and amenities needs for the buyer.

The pandemic is unfortunately staying longer than anyone expected. But at some stage it will become ineffective. As emphasized, homes are being redefined because they are also becoming new workspaces and “workout”spaces. So there is a lot of benefit in the long run as properties are customized to new ways of living.

As the financial market becomes volatile, real estate is becoming more attractive. Investing in land or property gives an edge in terms of securing shelter and future of the family. If you wish to prioritize commitment, affordability and quality, you can trust Dhruva to help you seal an affordable deal.

COVID is here to stay. How does it change your plan to invest in real estate?

Ever since COVID-19 began to unleash its power and dangers to our world, we’ve seen lives being hit very hard. It has instilled great fear in our minds not only on the way we live but also on the way we deal with our environment.

Perhaps the greatest puzzle for us has been the sea of uncertainty around us. Many businesses were forced to shut down, leaving people in tatters. The impact of the crisis is out there for everyone to see and experience: stock markets plummeted, jobs got cut, and availability of bare-minimum essentials went from bad to worse. Many industrial sectors, as you have seen already, have been adversely affected. If you have planned your financial future thus far, you may have had to re-think your strategy on what now works best. Let’s take a quick look at the real estate sector if your focus is on it for investments.

According to a survey by Magicbricks.com, property prices across major metropolitan cities have taken a 2-9% hit since March 2020 i.e. phase one of the lockdown. Now is that good news, early enough to invest your savings or income into properties?

According to estimates, India’s GDP percent growth is 0 for FY21. This will have a bigger and a tremendous financial impact on businesses and individuals. The MagicBricks survey indicates that more than 60% of new buyers will alter their decision to buy properties with reduced budgets. Some may choose to play safe with smaller properties while some may wait on to see a market correction as the uncertain period recovers to show any positive sign.

You may be interested in buying properties as the best means of investment because your other funds are not healthy at the moment. After the financial meltdown, many would not want to risk their hard-earned money in volatile investments. Properties seem to be a safer bet as they will continue to be a need even in times of adversity.

Remember to invest in properties only if your horizon is at least a decade. Give property the time to gather good returns. At Dhruva, we can help you find those properties that are affordable and safe, too. Give us a call to begin a meaningful discussion right away.