Home Buying Essentials
Owning a property is an important thing in ones life. However, one needs to be careful while buying land/house to avoid falling into legal hassles. The legal status of the land is one of the first issues that you should consider before confirming a property. Don't give any advance before getting confirmation about the legal status of the property. The process of buying a property is a long one and it involves a number of certificates and documents like Khata, occupancy certificate, possession certificate and so on.
Khata:
The term Khata literally means an account. And this Khata is an account of a person who has property in the city.A BBMP Khata certificate is needed for registration of a new property and for transfer of any property. It can be obtained from the Assistant Revenue officer (of the respective area) of the BBMP. This certificate is necessary for any property owner.
Khata Certificate is obtained for any new registration. This certificate is necessary to apply for water connection, electricity, trade license and building license. The Khata certificate is given only to the owner of the property or to his family members. It takes maximum of One week to get the certificate.
Khata Extract is required to get trade license, or to buy a particular property. It is an extract from the assessment register about any particular property. It has the details of the property in a particular format. An extract is the only way to get the details of any property.
Encumbrance Certificate:
Encumbrance Certificate is provided by the registration office. This is the certificate to show that there are no loans or mortgages on the said property. Buyers ask for this certificate when a new transfer is taking place, so that the buyer knows what all transactions have happened.
The encumbrance certificate is to confirm that the property is still in the name of the person who is selling it. This certificate can be obtained in maximum 10 days time.
Occupancy Certificate:
Occupancy Certificate is a very important document. This is given by the engineering department of the BBMP. It evidences the completion of the building as per the approved plan and compliance of local laws. Without the occupancy certificate, it is difficult to get the water and sanitary connection. Financial institutions insist on occupancy certificate to sanction loans.
The occupancy certificate is obtained at the end of the construction. This certificate is mandatory for any builder before he allows people to take possession of the property. This certificate was made compulsory by the BBMP to ensure proper construction in the city.
Possession Certificate:
This certificate is issued by the BDA at the time of allotment of the site. Thus a possession certificate becomes the first thing one need to get in any property deal. The BDA issues this to all the layouts approved by the BDA. BDA is the allotting authority. After the Possession Certificate is obtained a sale deed or a title deed is signed.
Sale Deed:
Sale Deed is a crucial document as it proves the purchaser has become the owner of a property after buying it. The sub-registrar obtains the sale deed from the parties involved in the transaction and releases it to the new owner.
Agreement of Sale:
This is an agreement signed between seller and buyer. This is a written contract specifying the terms under which the buyer agrees to buy particular real estate and the seller agrees to sell it.This agreement has to be signed before the sale deed. Once the sale deed is registered the buyer becomes the property owner.
What makes a good tenant???
While looking for a tenant for their property, the landlords take time in screening good tenants. There may be a lot of potential tenants. But only few will be good tenants. A good tenant is one who understands the conditions on the rental agreement and acts accordingly. Here are some of the qualities that define a good tenant.
Trust:
A good tenant must be an honest person. He must be a person who can really be trusted by the landlord. He must pay his rent on time.
Credit:
A good tenant must have a good credit and income, so that, he is able to pay the rent in time every month.
Cleanliness:
A good tenant must take good care of the property. He must keep the rental unit clean and should dispose the garbage regularly. Even though it is a rental property, he should consider it as his own property and keep it clean. A good tenant must let the landlord know if there is anything to be taken care of. If there are any small damages, some landlords take care of it themselves.
Guests and Pets:
Many landlords will not like more guests coming often. And so, a good tenant must try to avoid more guests. He must avoid inviting friends for parties at home.
Landlords do not prefer pets to stay along with them. So it is better to avoid pets.
Complaints from Neighbors:
A good tenant should try to keep the noise levels to a minimum, so that, the neighbors do not get disturbed. A good tenant must not get any complaints from the neighbors.
Respect:
A good tenant must respect his landlord and neighbors. If he has a plan of vacating the property, he should give prior notice about that to the landlord according to the terms of the rental agreement.
Investing in Real Estate after Recession
Real Estate after Recession
Real estate is the most popular investment sector in India. The large scale growth of IT sector and the increase in migration of people has led to the need for better housing and commercial facilities. This enormous demand has made the real estate builders to shape up more and more residential, commercial and retail buildings.
The US financial crisis has caused a disturbing impact on the Real Estate Market in India. The recession has officially ended. But its effect will be felt by India for some more months. Investing in real estate at this period of time is the best idea. This kind of investment will bring you profits.
One of the popular types of investing in real estate is flipping. Flipping is the process of buying a property, hold on to it for a very short period of time and then selling it for a profit. Many people have lost their money in flipping. The best way to see profit in real estate is by making a long term investment. The property prices have not yet fully recovered. So, you can buy more properties. This is the right time for you to buy a property, hold on to it for few years and sell it later for huge profit. This is a very good idea, because property prices always increase over long term. Since the interest rates are also very low at present, it is always a good choice to buy properties at this time. Builders have also reduced the price of apartments everywhere in the country.
Real Estate investments are profitable both as short term and long term. And it is profitable particularly during this time. Many famous builders have launched their new projects in Bangalore.NRIs have chosen Bangalore as a best place to invest.And so,there is always a demand for properties in Bangalore. Taking the right decision is quite easy now.
Advantage of Staying in a big Residency/Society/Residential Complex compare to Standalone apartment
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Big Residency or Society is a place which has some apartment complex in same compound. In Standalone Apartment or small apartment complex, we will find only basic facilities like Lift, Security, Car Parking, Power Back up, Corporation and bore water. In Residential Complex or big society, we can find all basic facilities and amenities like Swimming pool, Super market, Garden, Play Area, Health Facilities, Recreational Facilities, Electricity Backup, Maintenance Staff, Security Personnel, security intercom, Club House, Steam, Jacuzzi, Sauna & Spa, Tennis Court, Basketball Court, Rainwater Harvesting.
Usage of Amenities: There is really big question which most of the IT professional has regarding these amenities that "will they find time to use the amenities?".I would suggest the best way to look into this will be segregate your daily work for weekdays and weekends. I do agree that most of us will not find time on weekdays because we have or bound to go to office that full day will finish up there only. 
Now think for Weekends, you will not have much work to do apart from daily work. You have to find the ways for time pass or entertainment. On the weekends, you can peacefully use all above mentioned amenities and entertain yourselves. The situation would be something like this: we want to play something, courts are there in front of us, waiting for us to play or use it. In this situation, we don't have to push ourselves much to do something what we like or want at the point of time. Consider same situation with normal apartment complex: If you want to play then there is not any way to do so. Option will be take membership of any club or compromise it. First option will increase the total monthly expenses so generally people choose second option which is compromising our wishes and people find it really difficult to spend the money in parts. If you compromise your wishes then your life will not be very enthusiastic, energetic. You may feel like life is taking you to her own path. It is always good to have some option for activity like playing, gym, swimming etc.
Social Life or Life standard: The kind of social life you will get into big residencies,
you can't compare with normal individual apartment. In the big society, you will find good, well educated, well mannered people, different streams or background people, some expertises in different-2 field around you which will help to maintain your life standard.This is not very common or easy to find in small apartment complex. There are lot of facilities which will make you life very easy like super market, maintenance staff etc. Big Residencies have good security system which make it very secure place to stay.
Monetary Comparison:
- Renting an apartment: Rent for normal apartment + any facilities using outside (Swimming pool, Spa & Steam & Jacuzzi, Tennis, Gym, Squash, Billiards, Table Tennis etc) will be more than Rent of a flat at Big residencies. If you have use any of the facilities for 2-3 times in a month then you will able to save money compare to wasting that time some outside or using these facilities outside. Generally people find it very difficult to go outside and use the facilities becasue they have to pay it seperately and per usages which makes out to be huge money at end of the day.
I would suggest to people who want to live a standard life to choose to stay in big residencial complex or societies compare to small apartment complex.
- Buying an apartment: The price for flat in big society will be more compare to normal apartment. You have to pay extra for facility which will be used in daily life. You will be able to maintain good life standard while staying with good people in a society.
- Investing purpose: These big society has high return in short terms and considerably good return in the long run compare to small apartment. It is easy to find a buyer for big society flat and quick deal in case of any problem or urgency.
Real Estate needs of the Companies
Commercial real estate business in India is in boom again, with the rate of office space absorption had grown by 15 percent in 2009, when compared to the previous year. The expected growth in 2010 is around ten percent. In today’s scenario companies are looking to shift or extend their official operation to a new location due to various reasons. Economic growth, separate functioning of the departments, increase in employees and renewal of lease becoming costlier are some of the factors which drives the companies to look for the extended or new office spaces. For the companies in metro politician cities like Bangalore, the first choice will be moving to the fridges of the city from Central Business District (CBD). Other companies are moving to the business parks those mostly located out of the central activity of the city.
Facts apart, there are several issues to be considered when a company gets shifted. More obstacles come into picture when the process gets started. The primary concern is, negotiating the best lease. Since, office space is the second highest business expense for a company only next to the employee wages, negotiation plays important role. Leverage, vacancy rate in that locality and the rate other players are ready to pay for the same place are the major factors to be considered in the negotiation process. Though there is no definite number to define the timeline for the relocation process, it is very important to complete the process within time. The time span required for the complete relocation depends on the size of the company, the distance of relocation and the research time required to settle down the process. Each company’s relocation timeline will be unique depending on these factors.
The toughest task is to hand over the process to a good agency or a broker to find out or to buy the property. A good broker’s assignment is not just to find or sell property, but also involve in all through the process and trying to gratify the short and long term plans of the company. It is very important to select the brokers. The plans and needs of the company should be very clear. By that the company can go for an expert who matches best for their plan. Good deal comes out when the company has a series of good property options to determine the best fit. But, when comes to reality, it is tough to stumble on such kind of brokers. They are very much money minded and has less properties and knowledge on the market. In the present situation of real estate market, it is nightmare for the corporate to find out the best agency or broker who has vast knowledge and research results for their property search.
On the other side of the coin, when a company gets obviously the employees will have to relocate according to their new office location. Again it comes under the company’s response to take care of their employee’s relocation. But there is no relocation firm in India to provide budget relocation service for the company employees. Though there are some relocation firms, they are very much costly and looking to serve only for the high end executives of the firm.
So, the Indian companies are desperately in need of a research firm which matches the company’s expectation in their property search. That relocation firm or individual should have the complete research on the market and should capable to meet the company’s expectation in every field. It is an additional advantage that the relocation firm can provide employee’s relocation as well. Absence of such a handy business in India, keeps the companies’ relocation process in back foot.
As an initiative implementation, there is new blood surged into Indian real estate market. There is a fresh team in Bangalore named RelocateEasily (http://www.relocateeasily.com) started to exploit their first mover advantage into this market. By their comprehensive research on Bangalore real estate market and the relationship with the builders and owners of the property, they made the relocation process easier for the companies. By the personalized property search, they read the requirements and filter out the properties accordingly. Thus, they are completing the entire process with in a short span with greater satisfaction to the companies. As an additional Bonanza, they even take care of the employee’s complete relocation, including the utility connections for a reasonable price package. This high professional real estate and relocation firm, founded by IIT graduates already got a huge response among most of the Bangalore companies. So, no doubt that very soon, the firms like RelocateEasily will emerge all over India. Let’s hope that the professional real estate market plays huge role in company’s shifting and extension which is positive sign for the growth of the Indian economy.
New things coming up…
www.RelocateEasily.com is always trying to provide valuable services to the clients, users, and readers and improvising our current offerings.
Very shortly we are coming up with:
1. Bangalore Locality Details :- This will be a section on our website where we will list down all the major localities on the Bangalore IT corridor and discuss about everything that's there. Starting from residentials to commercials; from buying to renting; from hangout place to shopping; basically everything. I hope this section will help the outsiders to get a better idea about Bangalore and make the right decision to shortlist options for their new home.
2. Vaastu updates :- With the ever increasing interest and curiosity of our clients in the Vaastu compliance of the properties, we are coming up with our VAASTU CORNER. You will be able to learn about Vaastu in a steady manner, with 1 new update every day. You can sign up for our email or sms vaastu alerts for the same. We will also have a section on our website which will list all the previous Vaastu tips together on a page for anyone who missed out on the previous tips. (Short Vaastu updates rings bells?? You may call it "Vaastu Tweets")
If you guys have some more ideas that can be helpful to you, we will be happy to work on them and provide our best.
Marathahalli – The IT hub in Bangalore | Real Estate In Marathahalli | Land rate in Marathahalli
Marathahalli, Bangalore
The term Marathahalli has came into existence after a fighter aircraft named “Marut” had an accident in this area and “Halli” in Kannada means village.
Until the late 1990s, Marathahalli was a calm village in the outskirts of Bangalore. But the scenario has changed now due to its IT influences in the recent years. When an area sees an IT boom, it’s quite normal to see some Apartments, Mall, Multiplexes, Restaurants have rose up and some roads, flyovers etc constructed for easy navigation, so is the case of Marathahalli also. Marathahalli is connected through Outer ring road, HAL old airport road, old madras road and white field road. Many malls have opened up in this locality with one innovative multiplex, Bangalore’s first multiplex.
The other effect of the IT boom is that the real estate in Marathahalli has taken its upturn. In 90s there wasn’t any buildings, roads, etc. But after the IT boom mainly in ITPL and outer ring road Tech parks has changed its facet. The Current land rate in Marathahalli is around Rs 2000 - 3000 per sqft where in some 10 yrs back it was village and nobody was buying.
As the IT company people came in thick and fast, lot of Real estate project have been erected on outer ring road mainly by Sobha Builders and Devlopers and Mantri Builders. Here are the some projects which are completed near marathahalli area:-
Purva riviera, Purva fountain square, Rohan Vasantha, Sobha buildings, Mantri buildings, Paramount, Shriram Samruddhi, Prestige projects.
Projects which are coming up:-
Ozone groups, Salarpuria, Mahaveer, Nitesh estate, Confident and Skyline.
All the A grade builders price their projects at Rs 3000 - Rs 3500 per sqft and B grade builders price it at Rs 2500-3000 per sqft and the C grade builders price it at Rs 2000-2500 per sqft.
So if someone is looking for a 2 bhk apartment with 1000-1200 sqft in the budget of 25l to 30l they have to go for C grade builder’s properties, for 35l-45l budget they can go for B grade builders and for above 50l budget they can go for A grade builder.
There lots of properties available at 25l -35l in this IT hub namely at Kundanhalli, outer ring road area, AECS layout and proper Marathahalli area. This recession days, it is the perfect time to buy a property here or anywhere of the matter, since even the A grade builder’s properties rates have dropped down. The A grade builder, Prestige group’s properties were available at 40l for some time but now it has increased to 45l as the recession is getting dried up, but even now it is worth to invest as the price is expected to grow upto 50l in some months itself.
Land rate in marathalli starts from Rs 2000 per sqft in interior. On main road it will be Rs 3500 per sqft. During September to November the rate has increased by Rs 300-400 per sqft and it is expected to increase by Rs 600-700 per sqft by march 2010. In future we can see a huge growth in this locality as there are many more companies going to come up in this locality because of the geographical location of Marathahalli, as it is situated between ITPL and Indiranagar and connected to outer ring road and old madras road. So this is the ideal time to cash in by investing in Marathahalli’s real estate
As more and more people come to Marathahalli it is facing water shortage in some patches mainly near Marathahalli circle. So before investing in a property, you have to check whether the area has water problem or any other issues. Not sure whom should you approach to clarify on these kinds of issues, you can avail legal advices and property valuation services from www.RelocateEasily.com, they will help you to make your investments worth.
Defense colony Indiranagar – One of the Costliest areas in Bangalore
Defense colony
Wondering what is the heart of city of Bangalore? The answer is Indiranagar and wonder why it’s so; easily because of its Geographical location. We all know that, Indiranagar is one of the hot locality to stay in Bangalore if not the hottest locality due to its various big brand’s showroom, pubs, restaurants, cafeterias, etc and etc. The garden city or the silicon valley of India has been blessed with some very nice localities surrounding MG road and out of them Indiranagar is the best. Indiranagar is just 4km from MG road, so it’s a convenient place for anyone working in east or centre of Bangalore. And more over Indiranagar is adjacent to Domlur, which is the home to a lot of IT company and Indiranagar is also linked to Old Airport road which leads to Marathalli and Whitefield where again there are lot of IT companies out there, so Indiranagar is the preferable place to the techies also
In Indiranagar there is this small yet very peaceful locality namely Defense colony. As we enter into the Indiranagar area from Domlur by crossing the Domlur flyover, on right hand side we get Defense colony. Defense colony in situated between the two most popular and broader road in Bangalore, the 100 ft road and 80 ft road and parallel to another popular road CMH road. This area is home to some big shots in Bangalore so you can expect this locality to have some architectural marvels and high end villas and some newly built beautiful apartment by Salarpuria builders. Rahul Dravid the famous cricketer has his villa in defense colony at 6th main near Coffee day.
So due to its status and its strategic location the land rate in defense colony is around 12k-18k per sqft and the current flat rate is around 8k to 9k per sqft. The site area in Defense Colony is either 50*80 or 60*90, so if you want to buy a land in this area it will cost you at least, 4000 * 12000=4.8cr.
Joint venture in real estate
Joint venture in real estate
Joint Venture termed for a venture or a project achieved jointly or combined. A project which has been achieved by the collaboration of two or more parties. In real estate joint venture means that a project is developed by two parties jointly. This generally happen where one party would have his land and the other party would be interested to develop a project on that land.
Some time the owner of the land could not develop it because of many reasons such as he doesn't have the expertise or he doesn't have the fund and likewise for the other party who want to develop might not have a land in the prime location where he can build up a nice project.
So, if these two parties join together on a mutual understanding they sign an agreement which is termed as joint venture agreement. This agreement comprises legal understand like will there be any advance or good-will money be paid by developer to land owner? Advance is the amount which a developer needs to pay to land owner which would be refunded by the land owner after completion of the project. If any problem arises while constructing, because of which they couldn’t complete the project, then that advance Amount will not be paid back.
Good-will money is the amount which a developer need to pay to land owner for developing the project and this is not refundable. This would remain with the land owner even after completion of project.
Now when the project is completed, the property will be divided between the land owner and builder, the ratio is worked out between 60-40 or 50-50 which mean that builder will keep 60% and owner will keep 40% or both will keep 50%. This division done is basis of the built up area. Built up area dependents on the site area and the road width where the site is situated, for a 30ft road width one can maximum have build up area as 1.6 times the site area, following are the regularities for different roads
30ft road 1.6
40ft road 2.0
40ft-60ft road 2.5
60ft to 100ft 3
above 100ft more than 3 and generally more than 100ft won’t be there for residential purpose
So now lets take this example to even simplify of what we have said above:-
Let take a site which is 20000 sqft and the road width is 40ft road so maximum built-up area should be 40000 sqft. Lets assume the joint venture agreement between owner and builder is fixed as 50-50 ratio and also the owner of the land get 1cr as advance. Generally the property building cost would be Rs. 1000 per sqft, so to build 40000sqft it is 40000*1000 = Rs 40000000. After completely building the apartment, the builder would get to sell his 50% share of the total 40000 sqft which is 20000 sqft. Lets assume the apartment selling rate is worked out to be Rs. 2200 per sqft, then he will earn 20000*2200= Rs. 44000000, so builder’s total earnings for this apartment will come to Rs 4000000 minus the interest rates for the 1cr advance. Let say construction take 2 yrs to complete, so builder would lose the interest for 1cr for 2 yrs, which would come around 2400000, if he takes an interest rate of 12%. So finally builder’s total earning for this property would be 40l-24l=16l which is not good for his 2 years of work.
Likewise, lets take the land owner’s point of view, Let say that the land rate is Rs 2500 per sqft so by selling land owner will get 5cr and by doing joint venture he will earn 4.4cr + the interest on 1cr which would be 4.66cr which is 34l less than what he would have got without doing Joint Venture so its not feasible. So, eventually this deal wont work out for both the land owner and builder.
All the above calculation goes into paper to decide whether to go into joint venture or not. A sample copy of joint venture agreement can be drafted with a help of lawyer.
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Recent Posts
- Buying Vs. Renting a House
- Home Buying Essentials
- What makes a good tenant???
- Investing in Real Estate after Recession
- Advantage of Staying in a big Residency/Society/Residential Complex compare to Standalone apartment
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