Tag: Investment

8 Tips for a successful Investment Decision

Investing the money, you saved up with a lot of hard work considerably gets you in a situation where you are set to keep it safe and bring in the best possible profits in your wallet. Making the right investment decisions is the key to achieving the same. In this article, we aim to give you the best possible tips on how to make successful investment decisions.

Know it all.
Before making any kind of investment decisions open the barricades of your cognition and let more knowledge get in. The more you research, the wiser you become in terms of making a decision.

Have a plan.
Making investments is a long-term process which requires adequate time frame management and the knowledge of the amount of risk the investor is ready to tolerate. Before arriving at a decision, don’t forget to have a plan that includes all that is required to get you profits in the long run.

Choose the right markets.
With ample markets out there to invest in, there are no shortages of options. However, one must preferably pick markets that offer more returns and lesser risk. While investing in stocks, one can be at a high rate of risk due to market fluctuations. Whereas, making open land investments can offer lesser risks while giving you better ownership facilities. However, as an investor, dividing your investments into different spheres can help you achieve a lesser risk potential.

Study the markets thoroughly.
Once you decide the type of investment you want to make, study the market and its ups and downs thoroughly along with how they work and what will get you the most out of your investment in that particular market.

Beware of scams.
Always double-check everything before signing agreements and making commitments. Investing is a professional sector and thus relying on someone based just on their behaviour or sweet talks can be a risky business. Check all documents and beware of scammers to keep your money safe and make the right investment decisions.

If it’s real estate, be real.
Real estate investments are more stable and ask for lesser hassles. A good study of real estate gives you enough insights on investing righteously based on land locations, the value of the property, investment horizon, expected cash flow or profits and of course the market functioning.

Selection of properties.
The one question you must always ask yourself before investing in real estate is what type of property you are willing to invest in. While an already-built property offers you different kinds of profits, an open land investment gives you more opportunities to expand your investment the way you desire.

Patience is the key.
As an investor one must be aware that investment in any kind of market takes a long time to bring you profits of considerable size. Sitting back and overseeing your investments while making the required modifications is the key to pocketing the most returns and the make best out of your investments.

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.

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.

Real Estate Investors cannot Ignore!

Dhruva Projects

Dhruva Projects’ latest venture, Green Valley Project, in the area of Shadnagar is a project real estate investors cannot ignore! It is backed by Dhruva’s promise and commitment to give its customers the best returns. But why exactly is it an investment that is worth the money?

Shadnagar is one of Hyderabad’s, RR District to be precise, fast-developing areas. The reason is a no-brainer. It is right next to Shamshabad on the Bengaluru Highway (NH 44), in the international airport’s vicinity. The real estate rates have been on the rise ever since the airport started operations in 2008. Obvious it may sound, the rates are slated to peak as the airport expands its capacity in the near future and the city engulfs neighbouring areas to develop further, both for individual and corporate buyers.

Shadnagar is home to many pharma companies, industries, granite factories, and MNCs such as J&J, DLF, and MSN Laboratories, among others.Its vicinity to the highway and proposed Google and Amazon hubs and availability of natural resources make it a hotbed of real estate development. What does that mean? Investment in real estate is bound to see an upward trend with property appreciation and tremendous rental opportunities to begin with.

So what is so special about the Green Valley Farm Plots at Shadnagar? Investment in the project i.e. owning farm plots that is next to bubbling development and plots that thrive on plantations (e.g., Sandalwood, Mango, Guava, Jamun, Custard Apple) is the right step to keep the investment “evergreen.” The project boasts of white sandalwood plantation and compliance to government regulations that adds true value to the project. It of course has loads of bare-minimum amenities for buyers. Isn’t that something every customer needs these days? There are a lot more on offer. Need a clubhouse? You got it. Want privacy? There is. Vastu? 100%! You name it, we have it covered. Dhruva Projects understands the true value of customer investment and that is the underlying reason for our commitment.

There could be multiple reasons for customers to find those properties that will multiply in value over time besides the comfort of amenities. What matters is the rate of return. Low Investment, High Returns. You may hear us say this but that’s what sets us apart.

Now that’s a true bang for your buck, isn’t it?!