Blogs

Generation wise mistakes, Home buyers usually make!!!

Generation wise mistakes, Home buyers usually make!!!

By EVENTE CLINIC

Real Estate is one of the biggest industries in India. Every quarter millions of people fulfill their dream of owning a house, not every deal that happens is a good deal. Many homebuyers make mistakes while buying a house. In this article, we will highlight some of the mistakes people from various age groups make while investing in Real Estate.

The average age of people buying real estate is 35-38 years as per a recent study by HDFC. It also shows people in 20s as well as 60s invest in real estate. We all make mistakes and that is how we learn in most of the cases but making a mistake in real estate investment could cost you heavily. If you are planning to invest in real estate, make sure you continue reading.

“Once future is ignored, they end up selling and they do it under duress instead of planning ahead the first time, so there’s a lot of money lost there.”, says Namrata Pandey, Managing Director, Evente Clinic.

Investment Mistakes in your 20s

People buying home in the 20s are usually the ones who have just started earning. They have limited cash for down payments and also low starting salary for EMI. When they settle for low EMI with minimal down payments, which is the only option which they have, without realizing they are putting themselves in deep trouble. The effective price in such a case goes way beyond the appreciation of property.

Investment Mistakes in your 30s

The most common mistake that people in 30s make is not thinking about the future. They do not consider a future family when they’re standing in a luxurious 3 BHK flat with beautiful surrounding and access to a rooftop pool. 

“Once future is ignored, they end up selling and they do it under duress instead of planning ahead the first time, so there’s a lot of money lost there.” says Namrata Pandey, MD Evente Clinic. If you plan on having a family, it’s important to consider that when you’re home shopping, even if you’re currently single.

Investment Mistakes in your 40’s and 50’s

By this age, people tend to have more money, which leads to overestimating your budget and buying a house you can’t afford. One way to avoid this is to figure out your lifestyle comfort 

level and your future money flowing options.

You may be able to afford a 1cr bungalow but that does not mean you go ahead and buy one. If you’re married and both you and your spouse are working, figure out whether or not you can afford the EMIs if one of you gets laid off. Even experienced homebuyers can make the mistake of spending at their limit, which can mean making sacrifices that they weren’t prepared to make.

The takeaway for buyers in their 40s and 50s is to leave room in the budget for things they aren’t willing to give up—for example, a private school for the kids.

The last phase of buying, 60s and over

Many homeowners in their 60s are retired or getting ready to retire. Many retirees go on vacation, fall in love with a place, and make plans to move. Relocating and buying a home is an expensive process, so be sure to familiarize yourself with the new place before buying, if you fall into this age group. Your vacation home can be your full-time home, but just be sure to factor in all of the costs, before making the move.

Real Estate investments are by and large sensible decisions. You can avoid making these mistakes and become a smart investor. For any Real estate constancy you can always get in touch with us at Evente Clinic. 

Please feel free to write to us at support@eventeclinic.com.sg or you can call us at +65 97547616 and we will be more than happy to help. Our mission is to create Real Estate investment awareness amongst investors. Happy Investing!

Why one should invest in Navi Mumbai?

Why one should invest in Navi Mumbai?

By EVENTE CLINIC

With real estate prices shooting up in Mumbai, it is not surprising that some of the demand has been shifted to the more affordable township of Navi Mumbai, which is an entry point to the city. It is the next best option to Mumbai, as it is developing rapidly as a commercial and urban area.

There has been a steady rise of 10% in the number of house registrations in Navi Mumbai in the past seven months, compared to the same period last year.

Builders have attributed this to infrastructural developments in the city—the new airport project and the Nerul-Belapur-Kharkopar railway line have been major draws for prospective home buyers. Navi Mumbai is unlike any other planned city in Mumbai. Well-planned infrastructures, wide roads, an abundance of natural landscapes are a few benefits of investing in property in Navi Mumbai.

“The opening of the first phase of the railway line towards Uran has proved to be an icing on the city realty’s cake. More people now are looking towards MMR’s new regions like Ulwe, Khalapur-Khopoli, Neral and Karjat because there will be better road and rail connectivity in the coming years”, says Namrata Pandey, Managing Director, Evente Clinic.

Below are some of the reasons why one should be investing in Navi Mumbai:

  1. Navi Mumbai is comparatively less crowded than any other area in Mumbai. This can be the case because of how well planned the city is.
  2. CIDCO proposed the construction of an international airport in the Kopar-Panvel area of Navi Mumbai. It has allotted 1000 acres of land to rehabilitate those displaced by the project. CIDCO also announced the development of a new township – Navi Mumbai Airport Influence Notified Area (NAINA), close to the airport, on 3000 acres of land. The construction of the international airport has created job opportunities, resulting in a large number of workers settling in the township. The construction has also brought on the development of Navi Mumbai in terms of its infrastructure and aesthetics.
 
  1. The state government’s proposal to build a 22 KM freeway linking Mumbai with Navi Mumbai is another major reason for the township’s popularity. The Mumbai Trans Harbour Link, which is still awaiting approval, would make Navi Mumbai easily accessible to the bustling city of Mumbai. The freeway, on completion, would be India’s longest sea bridge.

  2. Navi Mumbai has a designated Special Economic Zone. It is spread across 13000 hectares. This gives people the opportunity to find many jobs or set up a business there.

5. This level of infrastructure planning is a key factor behind the increased property rates in Navi Mumbai. Many new offices have opened here, including KPOs, BPOs and IT Parks. Not only that, many schools, as well as medical and engineering colleges, has become part of the skyline, thus boosting the rates of property in Navi Mumbai. Companies like Reliance, L&T, Accenture etc have their offices in Navi Mumbai.

6. It has good connectivity to Western and Central Railway. From Navi Mumbai you can easily travel to Kurla as well as Andheri through the local train.

7. Education – Navi Mumbai houses some of the best and finest schools. Airoli, Kharghar, Vashi, Nerul hosts some of the top-ranked Schools of
India.

8. In a move that could boost the property market in and around Navi Mumbai’s Kopar Khairane, the Maharashtra government has approved the plan to construct a smart financial-technological hub at Dhirubhai Ambani Knowledge City (DAKC), double the size of Mumbai’s Bandra Kurla Complex. The project will be constructed by Reliance Realty led by Anil Ambani and will house office space for the non-banking financial companies (NBFCs), information technology and services (IT & ITes). 

“The opening of the first phase of the railway line towards Uran has proved to be an icing on the city realty’s cake. More people now are looking towards MMR’s new regions like Ulwe, Khalapur-Khopoli, Neral and Karjat because there will be better road and rail connectivity in the coming years”, says Namrata Pandey, Managing Director, Evente Clinic.

If you are looking to invest in Navi Mumbai, we have some amazing properties to showcase. Get in touch with us for more details. Please feel free to write to us at support@eventeclinic.com.sg or you can call us at +65 97547616 and we will be more than happy to help.

Commercial Property Investment In India

Commercial Property Investment in India

By EVENTE CLINIC

Commercial property market continued to be buoyant in 2018, led by robust business confidence and bright prospects in the fastest growing economy in the world. This improvement in the business environment has penetrated to several sectors with India’s commercial office sector being a prime benefactor.

The year 2018 saw occupiers opting for large office spaces underlining the increased assurance of occupiers in the office market. Large deals with above 100,000 sq ft space are estimated to have accounted for around half of the gross leasing activity of 47 million sq ft in 2018, as per data from Cushman & Wakefield.

There is a huge amount of private equity capital that wants to enter the market. The demand for grade-A office spaces remains very strong and there is fresh demand for around 34 million square feet getting incorporated into the market every year.

So the entire non-residential site is just a fantastic place for developers, because they have the right occupiers in place who are paying rising rents. If a good commercial project hits the market, it gets occupied in months. During the first nine months of 2018, large office leasing rose 35% to 18.2 million and accounted for 50% of total leasing.

“Investments into India’s commercial real estate have been the highest in 10 years at approximately $2.6 billion during the first three quarters of 2018 and 2019 will only see a rise in the same” says Namrata Pandey Srivastava – Managing Director, Evente Clinic 

Gurgaon, Pune, Navi Mumbai, Chennai and Hyderabad have been the most talked about places for commercial investment. Office rental values in Bengaluru by 2019 end are expected to increase 6.6% and in New Delhi to 6.5%. “Investments into India’s commercial real estate have been the highest in 10 years at approximately $2.6 billion during the first three quarters of 2018 and 2019 will only see a rise in the same” says Namrata Pandey Srivastava – Managing Director, Evente Clinic

Five factors you need to consider when investing in commercial spaces

Location is the king – Location is everything. Commercial properties provide returns through two avenues, rent and capital appreciation. Both are heavily dependent on the location. Look for locations where vacancy is less than 5%.

Demand vs Supply – This is one of the first things a savvy investor has to analyse before committing to buying a commercial property. Every city has different micro-markets. In Bengaluru, there is ORR, Whitefield, Electronic City while in Mumbai you have BKC, Nariman Point and Parel, among others. Look for the one which suits you as an investor.

Quality of tenant – A good tenant can significantly increase the value of commercial property. Looks for bluechip multinational tenants and avoid smaller and unknown companies. Good tenants pay rents on time, pay higher deposits, stay longer and increase the value of the property

Lease structure – Commercial lease structures are very different from residential ones. They are structured as 3+3+3 or 5+5+5 meaning 9-year (or 15-year) lease with escalations every 3 years (or 5 years). They are also one-sided. The tenant can vacate at any time whereas the landlord cannot ask them to leave for the lease period. There should be a lock-in period (generally 3 years) during which the tenant cannot vacate the property. Ensure that as a commercial property owner yoy have that in place

Market rent vs in-place rent – This is a slightly advanced concept that institutional investors use to see how risky the property is. Reach out to us to understand the concept.

Tell us your city for investment and we will reach you with some amazing deals.

The HOME LOAN game!

The Home Loan Game!

By EVENTE CLINIC

Buying a home in India is a dream of every NRI and with the current property price in the big cities, you need to take a big home loan to get the house of your dreams. Taking a home loan is easier said than done. Most of us have no idea of all the formalities that one needs to fulfill to get a home loan approval.

We might think we have carefully chosen the home loan but in reality, a lot of people make simple mistakes when it comes to their home loans. These simple mistakes can cost you a huge amount of money over your loan tenure.

So in this article, we will discuss some important points each individual should know and do before applying for a home loan.

“I would recommend having a stable solid income. If you are self-employed, have at least two year’s tax returns. Most banks want to see solvent borrowers with steady incomes. So it’s very important to keep your current job.” – Namrata Pandey, Managing Director, Evente Clinic 

Things to Consider

Research – Every bank is offering home loan options, which one to chose? The answer to this is not a simple one. You need to consider various parameters in choosing your bank. There are three crucial factors that formulate a loan – Down payment, EMIs, and Repayment Tenure. Do detailed research on this or you may ask help from the experts.

Choose Suitable EMIs – The equated monthly installment amount depends on you. Banks offer varied EMI options to cater to and suit different needs of the borrowers. EMIs also depend heavily on the down payment you submit at the time of making a house purchase. The bigger the sum of down payment, the lesser the stress of the outstanding amount being converted into EMIs. It is also best to ensure that your chosen EMI amount does not exceed 45% of your total income.

Loan Type – There are two types of home loans based on the interest rate—fixed and floating. As the name suggests, a fixed rate loan is where the interest rate doesn’t change with market fluctuations. Usually, this rate is 1-2.5 percentage points higher than the floating rate home loan. Floating interest loan, on the other hand, varies according to the market conditions. A fixed interest rate may seem more attractive in a high-interest regime, experts advice otherwise for various reasons.

Read the fine print carefully – After all, it is a legal document and therefore often incomprehensible. You may think a ‘default’ is only if you do not pay the EMI. However, there are some banks who define default as when the borrower expires, gets a divorce (in case of joint-loans), or the borrower is/are involved in any civil litigation or criminal offence. Be careful about the add-on charges and penalties. It’s not just the interest that you pay. There are additional charges such as administrative and service charges or processing fees.

Relation between Time and EMI – An increase in the base rates by RBI means the banks will also increase their floating home loan rates. For the borrower, it means a higher EMI. Many people can’t afford such rise if they were already on edge and often request the bank to increase the loan tenure to bring down the monthly outgo. While it can be a temporary relief if you are in a desperate situation, in the long term you actually end up paying more.

Namrata Pandey, MD, Evente Clinic says, “I would recommend having a stable solid income. If you are self-employed, have at least two year’s tax returns. Most banks want to see solvent borrowers with steady incomes. So it’s very important to keep your current job.”

If you are looking for some properties to invest in, you can get in touch with us and we will surely offer you some amazing deals in the place of your choice.

2019 Indian Real Estate Investment Trends and Market Watch!

2019 Indian Real Estate Investment Trends and Market watch!!

By Evente Clinic

India is the fastest growing economy in the world. Investors from across the globe are ready to put in money in the Indian market.
Even though the Indian real estate industry has not been in a good phase for the past few years, it has shown signs of improvement in the past year.

The question now is – Will the trend continue in a positive direction in 2019?

Indian Real Estate industry hit a massive blow in November 2016 after the demonetization. In 2017, RERA was introduced and the builders found it hard to comply with all the terms and condition of the new law. The Indian Real Estate was going through a change of phase in 2017. The industry stabilized in the year 2018 as both new projects and sales improved in some major cities if not all.

“Even though the Indian real estate industry has not been in a good phase for the past few years, it has shown signs of improvement in the past year”

2018 saw an increase in demand for real estate after a gap of four years, the prices are expected to increase in major cities. Cities like Mumbai, Delhi, Bangalore, and Hyderabad are going through rapid urbanizations and see high migrations from other cities and states. As per number available on some real estate research websites, home sales increased 24 percent during 2018 after fall of 17% in 2016. So if you are looking to invest in real estate or planning to buy a property in some of the major cities, don’t wait for too long.

In the past couple of years, the builders are focusing more on the affordable house and the same trend will continue this year. Many developers plan to build affordable housing, with residential units in the price range of INR 15–30 lacs. More affordable housing will be available for a big part of the population.

If we talk of problems, the ongoing liquidity crisis in non-banking finance companies and the crumbling of sector giants, including Amrapali and Unitech, would keep realty giving a hard time in a year when the country will go through the general elections. If the results of the election go as per market sentiments, we can see major growth in the Indian economy in all sectors for the remaining months of the year.

The commercial projects will continue to outperform the home-based real estate market even this year. As per Namrata Pandey Srivastava, MD Event Clinic, Demand in office and retail sectors will continue to beat supplies, leading to lower vacancies and higher rental yields in 2019-20. Private equity participation is quite high in commercial assets, which lends more shine to this space.

The private equity is predicted to see a rise in the upcoming years. 2019 will prove to be a nurturing year for FDI investments in India.

A report on the state of NRI investments in the Indian real estate sector says NRI investments in Indian real estate has already doubled from $5bn in 2014 to $10.2bn in 2018. This growth is largely driven by five cities – Mumbai, Pune, Bangalore, Gurugram, and Noida.

The dollar has gained more than 10% compared to Indian Rupees in the past couple of quarter. Even the other major currencies are stronger now, which means NRIs find this time perfect to invest their money in Indian Real Estate market. The other reason why most of the builders are now targeting the NRI client is Indian real estate more affordable and regulations like RERA that have led to increased transparency.

There are some major real estate showcases and events happening in this year so investors should keep a tight watch on them but overall the real estate market looks positive and this is an ideal time to enter the market for all type of investors.

 

Great News for Residential Real Estate buyer – GST rate reduced!

GST Rate Reduced!

Great news for residential real estate buyers! 

By Evente Clinic

Last year in December, experts were of opinion there will be a reduction in GST rate early this year. The speculation has come true; the GST Council has slashed tax rates for houses in both affordable and non-affordable segments. The news is a big relief for a real estate buyer since the rate of real estate properties would be reduced. The meeting held on 24th February, the all-powerful council took note of the recommendations from the ministerial group on real estate to approve tax cuts for the sector.

This was the 33rd GST Council meeting, in which Finance Minister Arun Jaitley and his state counterparts agreed to bring GST rate on under-construction properties in normal category down to 5 percent. Currently, the GST is levied at 12 percent on payments made for under-construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

The GST Council has also reduced GST rate for affordable housing to 1 percent from the earlier 8 percent. The new tax rates will come into effect from April 1, 2019.

 

“This will be a major step in our efforts to give a boom to the real estate sector and making housing affordable for the middle class, neo-middle class and aspirational class.-Finance Minister Arun Jaitley”

However, Goods and Services Tax (GST) is not levied on real estate properties for which completion certificate has been issued at the time of sale.

For developers, notable information is that they will not be able to claim the Input Tax Credit (ITC) after the tax rate cut for the real estate sector. This will make the issue of developers not passing on the benefits of ITC to homebuyers will become irrelevant.

Also, unutilized ITC, which used to be added to the end cost of the project, will now be removed to make prices more affordable for the homebuyer, the Ministry of Finance said in a statement.

The GST Council also decided that intermediate tax on development rights, such as TDR, JDA, lease, FSI shall be exempted only for such residential property on which GST is payable.

As per the experts, even a small increase in sales on the back of reduced GST will give some relief to developers funding issues by catalyzing sales to some degree. To that extent, developers will see some improvement in their balance sheets.

If you are looking to buy a home in the near future, reach out to us with your questions and we will help you with answers

Leave a Reply

Your email address will not be published. Required fields are marked *