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REAL ESTATE TERMS TO KNOW BEFORE INVESTING

Real estate investment is quickly becoming the most favorite form of investment for Indian families. In today’s times, where everything is so unpredictable, one should plan wisely for themselves and their families. There are a plethora of options to invest in the market. One needs to carefully assess and get information about the varied options. A venture which has approvals from either HMDA or DTCP is the safest bet as compared to others. We should not fall into the trap of builders trying to convince otherwise.

1. If you are keen to invest in Real Estate, here are a few terms which you should be well-versed with. This will make the whole process easier to understand too!

2. Return on Investment (ROI) – ROI measures the money or profit that you make on the Investment as a percentage of the cost. If you buy a property worth Rs.15,00,000 and sell it for Rs.20,00,000, your profit is Rs.5,00,000. The profit is half of your Investment, and hence your ROI would be 50%.

3.Amenities – Every project has features that enhance its attractiveness and increase the occupant’s satisfaction. Eg, well built roads, avenue plantation, children play area, underground drainage system, water facility to each plot etc.

4. Appreciation- An increase in the value of a property due to changes in market conditions, increase in supply and demand and also because land is a limited resource. It’s directly proportional to the population. As the population increases, the demand for land also increases.

5. Bayana (Token Amount) – An Indian term used to denote the token money given to the landlord to informally freeze negotiations on a particular property, after the initial terms and conditions have been formalized.

6. Broker/ Dealer- A broker is a person or a company who acts as an agent, and brings two parties together to strike a deal. After the deal is finalized, the broker has to be paid a fee by the parties.

7. Buy Back Offer- When a builder intends to buy back the property after a fixed period at a predetermined appreciated rate, it is known as buy back offer. Usually, the builder offers an assured return of a pre-decided percentage to the investor for the buy back period. This may usually take place two to five years after the booking was done by the buyer.

8. CIBIL – Credit Information Bureau (India) Limited (CIBIL) is India’s first Credit Information Company (CIC) founded in August 2000. CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards.

9. RERA – The Real Estate (Regulation and Development) Act, 2016 (RERA) is an Act of the Parliament of India which seeks to protect the rights of Real Estate buyers as well as help boost investments in the Real Estate Industry. The bill was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016.

10. Downpayment – The initial payment done by the buyer to the builder for which is a portion of the total price of the land. There is no loan applicable on this as this is done as the first payment.

11. EMI Equated Monthly Installment (EMI) – It is a fixed payment amount made by the borrower to the lender at a specified date each month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of pre-decided years, the loan is fully paid off by the borrower.

12. Landlord – A landlord is the owner of a house, apartment, condominium, land or real estate which is rented or leased to an individual or business, who is called a tenant.
Property Insurance- Property insurance provides protection against most risks to property, such as fire, theft, weather damage etc. This includes specialized forms of insurance such as fire insurance, flood insurance etc.

13. Seller’s Market – A seller’s market is when demand for property is greater than the supply. The result is greater opportunities for owners who may find someone willing to offer the asking price or even a figure greater than the asking price.
Now that you have information about the basic Real Estate terms, it would be easy for you to understand these terms if you are absolutely new to investing in Real Estate.

Dhruva Projects provides a great and rewarding investment option to the ones looking out to plow their money in safe and secured options. Open plots bring with a lot of flexibility & ease of possessing the property.

Why OPEN LAND is the Most Preferable Investment

Over the previous two decades, the value of land has soared by over 800 percent, making it one of the most popular investment options. Land acquisition has always been limited to huge development enterprises, farmers, and affluent people.

A residential-sized block of land would allow buyers to participate in future development advantages without having to purchase huge acres as a developer would. Many people are attracted to land investment because of its simplicity and openness. There are no hard principles for buyers to grasp; all they need to know is that land is in high demand. Purchasing land is easier and faster than purchasing a home, however, you should still consult a lawyer to safeguard your interests.

Unlike stocks and shares, a land buyer will always have a tangible asset to touch and use. Land values will almost always rise due to limited supply and demand, having already surged eightfold in value over the last twenty years.

Following completion, the new owner has complete authority over any maintenance, redesigning for development, obtaining planning clearance, and selling their property.

Traditionally, land investment was restricted to elite corporations, farmers, and affluent individuals; nevertheless, it is now possible for ordinary people to invest in land. Land agents, as they are known, acquire land from various sources and then sell it to customers, much like an estate agency does with houses. Some land agents specialise in selling land to long-term land investors. This land is frequently near sites that are being developed or are about to be developed, so it could be ready for development soon!

Land investment is quite straightforward and clear, with no hard issues to deal with, and there is always a need for it. Stocks and shares, for example, are not tangible, whereas land is! Following the completion of any land investment, the new landowner has authority over the land’s maintenance, planning permission, and potential sale. Any investor interested in purchasing or investing in the land will, of course, want to inspect the property first and learn everything they can about it before proceeding. With this in mind, it’s a good idea to keep your land in good condition. The location, development expenses, and community attitudes will all play a role in future land value.

So, as you may be aware, location is critical in determining the future value of the land; land located near a major highway connecting two towns will most likely increase in value! The higher the value of your land, the closer it is to a major road or town. The direction of growth is highly significant in determining which plots of property are most valuable, therefore investing in land in a developing neighbourhood will yield a higher profit.

Once a person has decided to buy a piece of land, he or she will need to consult a solicitor to draught a contract. They will also inquire about any future developments that may affect the land, such as the possibility of a large motorway being built next to your new piece of land, which will have a significant impact on its value.

Land is a long-term investment; therefore, timing is crucial. Furthermore, the majority of land does not generate a consistent stream of revenue. Many investors circumvent this by leasing land for allotments, tenant farmers, parking, or even a used car lot! While you wait for the value of your land to rise, this can help you make some money. It’s easy to see why land is becoming a more popular alternative investment!

Any newbie can succeed with these four Investment ideas

One of the most appealing parts of real estate investing is the diversity of possibilities available. If you’re considering investment property techniques, whether you have a real estate license or not, you’re probably wondering which path to pursue. To assist you in making your decision, we’ve compiled a list of the top four real estate investment strategies for beginners.

1.Real estate wholesaling as a financial strategy
Wholesaling real estate is an excellent method to begin your real estate investing career. The key advantage of this technique, which makes it especially suitable for beginners, is that it requires very little starting cash. As a wholesaler, you must locate a property for sale, obtain a contract from the seller, locate a buyer, and assign the contract to that buyer. The procedure normally takes a few days or weeks, and you can walk away with a few thousand bucks. The only expenses you will incur are those incurred in locating a home for sale and promoting the property to potential buyers.
While anyone can engage in real estate wholesaling, this short-term investment approach is more advantageous for those who hold a real estate license.
Why? For a variety of reasons:
You will have access to far more properties for sale as an estate agent than an ordinary investor. This means you’ll be able to uncover houses for sale below market value, making marketing the property easier and increasing your profit.
Once you have your license, you can begin to establish a real estate network of property sellers, purchasers, other realtors, investors, and so on.
While wholesaling is possible without a license, obtaining a real estate license for the sake of investing would undoubtedly make you more competitive.

2. What is the fix-and-flip investing approach and how does it work?
Fix-and-flip is another great approach to get started in real estate investing. This short-term investing plan allows you to become more involved with the property while still making quick money in real estate.
In a fix-and-flip, you purchase a low-cost investment property (typically in need of repairs), make the necessary renovations, and then resell the property for a higher profit.
This method is beneficial to new investors because it allows them to sample the flavor of real estate investing before deciding if it is the correct choice for them without committing to a property and a mortgage for decades.

3. The buy-and-hold approach
It is one of the long-term real estate investment methods. When you hear about real estate investing, it’s likely the first thing that springs to mind. It’s a great option for new investors because there’s no need to close the sale right away, and you can make money in the long run.

Buy-and-hold refers to purchasing an investment property with the intention of holding it for the long term until you decide to sell. As the value of homes rises over time, you profit from real estate appreciation. Natural appreciation is a terrific way to make money in real estate while sitting on your hands.

4. What about properties for rent?
The last of the novice investment property techniques is a buy-and-hold strategy. You can rent out your property and make money in the short term instead of keeping it and waiting for appreciation to happen. When you acquire a rental property and locate a renter, you can start earning a consistent income right away. The rental income will be a great addition to your commissions as a real estate agent. Furthermore, as a realtor, you are familiar with the local market and where housing demand exists, so you will be able to locate a successful rental property to invest in.

Choose the strategy that best suits your objectives.
Real estate investing is a lucrative business, especially for realtors who are familiar with the industry and the local property market. All that remains, is for you to decide which of the aforementioned top investment ideas is best for you and to begin making money as a property investor.

Benefits of buying a property when it’s newly launched

When a prospective buyer is on the lookout for a Real Estate investment then the terms like “pre-launch offer” or “new launch” seem quite attractive. The main reason behind this is that during this phase, the builder gives an interesting offer to the investor to attract them. Usually the opening price or launch price would be lower than it would actually be after a few weeks or months. Investing during this phase can be beneficial for an investor as they can get the advantage of the lower price or offer.

The Initial Investors have an advantage

Many builders give interesting offers during the initial launch phase since the whole market is very competitive. There are a plethora of options available to the investor to invest. So the builder should plan and do something unique so that investors get attracted to invest. They could be discounts on booking a plot or it could be giving a free gift in the pre-booking phase. By doing proper market research of the location and its advantages, one can easily invest in such newly launched projects.

The investors should book before the increase in prices

Another advantage of booking a newly launched project is that one can freeze on the price till one gets the possession of the property. The whole market is quite unpredictable and volatile, so the property prices can increase any time. Usually the prices might go up a bit after the launch phase of a project. There could be a variety of reasons for the price hike. It could be new infrastructural developments in that area, cost of raw materials might increase, the cost of hiring labour for work or maybe some change in the laws. If you make a decision to buy in the “newly launched phase”, then one might save on a lot of additional expenses that might arise in the future. The builder might also increase the prices once the sales have started to pick up or if there are more projects coming up near the project of the particular builder.

A smart investment in suburbs

In major cities, the central city area is already built up well and the property prices are also very high. There are very few open spaces left to start a new project. So now, the builders have started moving towards the suburbs which not only offer great locations but also are much more affordable than buying an open space in the city center. Connectivity is improving and now reaching suburbs is no big deal as there are various modes of transport available these days. Builders also make sure that the investor gets the most of the investment made by them.

If you plan to expand or diversify your investment portfolio and are keen to invest in Real Estate, then look out for projects which are newly launched. This will not only mean spending less money but also taking advantage of the additional benefits given by the builder. Do proper research and invest with a builder whose plots are approved by HMDA DTCP/ RERA. Also check all the legal documents and the credibility of the builder.

Dhruva Projects has recently come up with their newest venture, Dhatri County at one of the growing areas, Kompally. HMDA and RERA approved, this project offers Premium Residential Villa Plots at affordable prices. Additionally, if one pre-books a plot now, then they can get a free Gold Coin worth 5 grams. Dhruva Projects is a well-known name in Hyderabad Real Estate and has completed many projects successfully. Invest with Dhruva and avail the best opportunity now.

8 Common Mistakes to Avoid While Investing in Real Estate

Real Estate investment is definitely one of the most rewarding investments for our future safety and well-being. But we often overlook details which might lead us into investing into the wrong place. We should avoid making blunders and take care of a few things before making the decision to invest.

Real Estate investment is soaring

With the ever increasing population, the demand for more land keeps on increasing with each passing day. Every piece of land available is being converted for corporate offices, residential dwellings etc which has put an excessive pressure on the available resources.

Real Estate investing rewards with appreciation which is unmatched to any other form of investment. This is the reason why it attracts more people to invest as a secure asset for their future.

Common mistakes by Real Estate investors which should be avoided:
1. Not checking paperwork properly – There are many people who have been cheated by giving the investors fake documents. The documentation has to be in place before the investor gives away any amount to the real estate agent/ builder. There is a possibility that people might not check and verify the documents before signing them. This could result in them losing the property also. The documents need to be double-checked and verified before one makes a wrong decision. The documents must be up to date and scrutinised well.
2. Not calculating the costs – One invests in real estate to earn profit. So a thorough calculation needs to be done on the amount which will be invested and the appreciation earned in future. Underestimating costs can land one in trouble. Taxes, government fees and registration charges associated with a property should also be kept in mind before you buy that property.
3. Don’t trust blindly – One should not rely on word of mouth for purchasing a property. A thorough research should be done before making any commitment. A third party can’t be trusted blindly. The company with whom you plan to invest should be credible and have goodwill in the market. Striking a good deal with a known name is always better than investing with someone who is completely unknown in the market.
4. Make a plan beforehand – One needs to plan as to which area would give them more returns and how much investment they can make at present for their future. There are many deals which might look attractive at first. A proper analysis before making the correct decision is very important.
5. Not enough knowledge of the local market – One may not have a prior knowledge about the real estate market. It’s important to do a survey of the present market conditions and how lucrative the investment might be in future. One should know about the land value, property value and the places which are growing in the current market. These would ease out the decision to buy a property which is well within the budget and also worth buying. Only buying a property is not the final thing. One should have enough capital reserve for maintaining it as well.
6. Buying in the wrong area: Since there are a plethora of attractive investment options, it’s quite easy to get confused. A property should not drain away your money. A well-developed or developing area will fetch good returns in future. The land should have easy connectivity, accessibility to necessary things and services, and should be a good locality with good infrastructure. All these things should be kept in mind while making the decision.
7. Having high expectations: We all want a rewarding appreciation from the piece of land which we have invested on. But our expectations should not be sky high. We all should aim towards having a realistic profit in the future from the property we have invested in.
8. Choosing the wrong real estate agent: A true real estate agent will always guide correctly so that an investor can make the most out of the deal. He will also refrain you from making any mistakes which you might repent later. So, it’s important that the agent has a good track record in the market and is reliable. A good agent will always make sure that you get a great appreciation with the money you have invested in. So it’s always better to check the credibility of the real estate agent before getting into the deal.

Whenever you make the decision to purchase, just keep a check of all the above mentioned points so that a safe investment can be made.

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.

What life can be like after the lockdown?

2020 has been a year of tragedies, how much ever we try to ignore the fact and put on a brave face. We’ve not seen crises like these, global in nature, for many decades. Every country, every government was forced to take drastic measures such as calling a state of emergency, shutting borders, regional lockdowns, mandatory social distancing, work-from-home orders, and so on. All this with the knowledge that the economy will be shattered. But, desperate times need desperate measures, right?

Staying at home, practicing social distancing, maintaining hygiene, having a healthy diet, are some of the new practices that have become the “new norm.” We are adjusting to this, although poorly and desperately, because our battle is with an invisible and unknown enemy. And our life is that of hope and prayer.

What can the government do after a point? What can we do after that point?

The government can only hold a lockdown for a limited period of time and will be forced to end the lockdown to bring the economy back on track while taking care of its people. And it could be in phases and/or strategic exits. It is doing its job by continually educating us on the dangers of COVID-19 and what could its potential consequences be. It has also opened multiple avenues for us to be aware and take a calculated approach to life. Can this happen forever?

Certainly not! The future of us is in our own hands. The future of our family also lies in our actions. As long as there is no cure or vaccine, the invisible danger is lurking around us. That is why it is extremely crucial to keep following the basics even after the lockdown. We must all let sanity prevail and change our lifestyle respectfully. We’ve heard many things but what can we do over and above the basics?

  • Be conscious of people around you.
  • Be conscious of what you eat. Have a healthy diet.
  • Be conscious of your health. Do not ignore any signs of ill-health or symptoms.
  • Be conscious about hygiene at home.
  • Be conscious of your well-being. It is never too late to pick up an exercise routine.
  • Be conscious of the fact that there is still no cure for Coronavirus.

In a nutshell, the post-lockdown phase is as good as the lockdown phase. Keep practicing all that you have been practicing. Because after a point, we are responsible for ourselves. Finally, let us not overwhelm our healthcare professionals – because they, too, are humans!

Stay home. Stay safe. Stay healthy.