Points that should not be overlooked while buying an apartment!

Indians are known to overlook aspects which are considered important by people worldwide. For example, while buying a car in India safety and quality takes the back seat while mileage and pricing takes the front seat! We are indeed a practical group of people but some important factors have to be considered while buying something that stays with us for a long time. And when it comes to long term investments, buying a home is the most important purchase of all.

In this article, we try to cover some of the points which are generally overlooked by us but should actually be considered as important as the price and location of the house we buy.

Better safe than sorry – Home Protection

Be it a rural area, town or a metropolitan like Chennai or Mumbai, buying property should always consider the safety aspect of the home. If you are purchasing a plot make sure that the locality has a police station, fire service center and also opt for a gated community for added security.

If it is an apartment make sure that the doors and windows and the locks provided by the builder have grilled reinforcements and upgrade them to better quality gear if needed. If your purchase is a retirement solution, make sure that there is help readily available in the form of an association that is helpful.

Legal opinions and second opinions!

Never jump in blindly going by the tags ‘Clear Title’, ‘100% Documents’ and such. Those are commonly used marketing jargons that are in no way validated by anyone. Get the copy of the documents from the builder / developer / promoter and get a legal opinion of it.

Don’t shy away from getting a second opinion if not confident enough. Also, if the property ownership is going to be joint ownership, get the legalities out of the way first up without rushing into it at the last moment.

Surroundings matter

It not just how the house is on the inside, but the approach and surroundings also matter. Often builders lay out a lawn, a pool surrounded by a jogging track and greenery to attract buyers. But if the project is nearby to a waste land or a swamp it is going to be a tricky place to live in!

In the same way, if the approach roads are not well laid or if there are slums nearby, if will be a problem in the longer run. Residential apartments near to industries that pollute are highly not recommended. Research around and see and ask opinions about the locality.

Builder History

There is nothing wrong in trusting a new builder but it is always a safe bet to invest your hard earnt money with a property developer who is well established in the real estate market. With experience comes better quality. Also, visit old projects to see how the construction holds up. Do check on how long the builder supports maintenance for the building after handing over for occupation. The longer the warranty, the more confidence the builder has on his own project!

Atul Joshi is an environmental activist who closely monitors the Green Moment of Indian real estate. He loves sharing the information he holds to the public and he reaches out through IndiaProperty.com

Will the plans on linking property sale and GIS maps bring in transparency in Mumbai Real Estate?

The property prices in Mumbai and other cities are rising rapidly these days owing to the huge demand from potential buyers. With increased potential buyers who seek out for perfect location to buy a property in Mumbai, the demand have increased. The price of a property is highly affected by its location. Even the reckoner rates fixed by the government on each property mainly depends on the location. For instance a property located on a prime location near a bust stand, a railway station or airport tend to have high prices when compared to a property in remote location. So government fixes the reckoner rates only depending the growth of the place in which the property is located.

Reckoner Rates

Reckoner rates fixed by the government decides the rates of the immovable property like commercial and residential properties in Mumbai. It is based on these rates that the stamp duty and registration fees of any particulate property is collected by the Stamps and Registration department of the government. Each state government in the country determines these rates annually based on the location of the property. The government also has full authority to rise these rates.

Recent plan of Maharashtra Government

Though these reckoner rates are analysed and changed every year by the government, it is not very transparent to the public. To make reckoner calculation precise and transparent the Maharashtra Government have recently announced a new plan. According to the new plan, the property transaction data will linked with GIS maps. Initially pilot projects will be started in three cities of the state such as Mumbai, Pune and Thane.

When property registrations are linked with GIS maps, then it would be easy for the government to get precise reckoner rates for each part of the state. Reckoner rates as of now are calculated based on the market rates, local inquiries, documents registered with the department, information from media reports, real estate exhibitions and market intelligence. But all these factors are subject to frequent changes that may affect the ready reckoner rates.

When this plan is executed, the ready reckoner rates will calculated with scientific average calculated by automatic analysis of property transactions in a particular city survey number. This will use satellite imagery to know each and every development in different areas of the state and how it bring in changes in the property prices.

Challenges in the plan

Though this plan may bring in transparency and accuracy in reckoner rates, it has certain challenges. Getting property transaction details of individual Flats in Mumbai may be difficult as most area of the state may not have been updated and digitised. Also it would be difficult to identify the transaction area with just a survey number.

The use of GIS in real estate is a good news to Indian real estate. Location is the prime factor that influences real estate. GIS helps us receive accurate data on the geographical location of any property. Hence we can use GIC not just in analysing property transaction but also in various other task in real estate such as market analysis, spatial analysis and property research.

Benefits of opting for Joint Ownership

Buying a property is not all about choosing the right location, looking for amenities and accessibility and transport facilities in the area. There is more than what meets the eye when it comes down to purchasing the property. The factors that make property buying in Mumbai and other metros a hassle range from financial deadlocks to legal issues. A number of these factors, however, can be nullified to an extent by opting to get into the property purchase as a joint ownership with your spouse or your parent(s).

In today’s economy, joint ownership always makes more sense and even the government is well aware of the fact and that is why our government offers a number of incentive benefits while going in for a Joint Ownership. Stamp duty and registration charges are much lower in such cases which clearly suggest that the government is promoting the case for a joint ownership.

With the property in Mumbai and other metros clearly rocketing sky high, it becomes next to impractical, let alone being impossible to buy an apartment or a villa on a single person’s income. Financial burden is shared when joint ownership comes into play and the initiatives of the Indian Government for women empowerment also means that the interest rates could be lower.

Joint Ownership of a property does not come in a ratio and promotes equal rights to the title for both parties. Hence, it is suitable for couples and in fact could strengthen the bond early into married life. Another huge advantage would be that in the unlikely event such as the death of a person would entitle the other owner to completely inherit the property without having to face any legal tangles.

Loan repayments can be done either by both parties separately or by holding a joint bank account. The loan eligibility also becomes higher since the calculation is done by combining the salary of both the parties instead of just one. Both owners can also claim tax benefits which is a huge advantage for any salaried individual.

The entire of the stamp duty will be waivered off if in case the property is jointly owned by a woman. In a few states in the country, if in case a joint owner dies, if the other owner happens to be the spouse, the procedure for transfer of ownership is very simple. The property is not treated as an addition to the surviving owner’s property list which makes tax calculation simpler and more profitable for the surviving mate, making it easier to survive the loss.

Also, flats in Mumbai that are owned jointly are easier to pledge if it happens to be the need of the hour. Banks and other financial institutions are ready to take up joint ownership properties since they have more security of getting back the money since twice the number of repayment individuals are present. 

Also, if the repayment is done without any arrears, future borrowing on the property becomes child’s play making it a profitable venture for both the parties. So, choose wisely on how you register your next property!

Powai is turning out to be one of India's startup hub

The startup revolution in India is just mushrooming at a greater speed. Though metro cities serve as a best ecosystem for startup hubs, even non-metro cities such as Powai and Kormangala have also become a best ecosystem for new, upcoming hubs. As many cities across the country have started the race in becoming a powerful industrial and financial base, it is too early for us to decide on one city that could beat the other cities in the race. With these financial and industrial development, the real estate market in those areas are definitely going to be profited to a greater extent. The prices of Mumbai properties, properties in Bengaluru, Chennai and Kolkata are on the verge of rising.



The prime reason for Powai to turn into a thriving startup hub is its close proximity to the IIT Bombay. The fresh and talented graduates from IIT Bombay are keen on developing new business and online sites. With these development of new companies, Mumbai is turning out to the future face of India's economic growth, which in other way has enhanced its growth in real estate sector. The properties in Mumbai have rising prices that go high each and every year.

Powai, the developing business hub has so many people with innovative ideas, technical knowledge, and knowledge about business in local and nationwide. Located in close vicinity to IIT Bombay, it is a house of talented and enthusiastic graduates who wish to grow up in their own, new business. For instance the Housing.com, an online property search site was first started in a dormitory in Mumbai by 12 IIT Bombay students in 2012, now it gives its service to about 40 cities in India. These kind of startup companies have attracted many Venture Capital firms such as Sequoia Capital to Powai. The costs and groundwork of starting and conducting business in Powai seems to be in a reachable distance for all energetic graduates. With such startups, the flats in Powai have now drawn interest from many potential buyers.

Various other startups in Powai region include Instamojo, TinyOwl, Toppr, OpenTable, Belita, Purple Squirrel, InOpen Technologies, Enelek, and MoFirst. Every year Mumbai had earlier seen only 5 investment proposal but it has increased to about 50 mainly due the IIT Bombay students. There are several ventures from IITB alumni such as Olacabs, Housing.com, and more. The affordable rentals available in Powai have made many IITB graduates and entrepreneurs to stay there and start up their ventures. These factors have helped Powai to become a successful commercial city.

Powai has not just stopped from becoming one of the birthplace of several renowned companies, it has also emerged as a best residential location for many. The huge number of properties in Powai and upcoming flats in Powai are visible examples for its residential development.

These startups have not just made Powai proud and popular, but also the Mumbai city. There are several Angel Investment firms and mentors in Mumbai for those enthusiastic startup founders and entrepreneurs in and around Mumbai.

The need for earthquake resistant building

Our country has a long history of earthquakes with high magnitudes that have caused massive, widespread damage in several areas. Earthquakes take away several lives and leave thousands of people injured especially due to collapsed buildings. Earthquakes are not just life threatening, they also cause several cracks and damages to many buildings and multi-storeyed apartments. These earthquake effects have called for the need of earthquake resistant building in the country.

The recent earthquake in Nepal with a magnitude of 7.9 on the Richter scale have collapsed several buildings in Nepal and caused damages to various building in many cities in India as well. These effects and previous earthquakes in India have urged builders to use earthquake resistant steel in building construction. Post several high magnitude earthquakes in India in the past, the Steel Authority of India (SAIL) have started to develop reinforced steel bars such as TMT bars, EQ 500, Fe 500, EQR and HCR. These sturdy and robust steel bars that meet all quality norms of government when used in building construction offer the building extra durability to withstand earthquakes.

Though only large construction projects and top builders of Mumbai and other cities use such high-quality steel bars for construction, small builders and individual home builders are still negligible to earthquake resistant steel bars.

Recently to make all top builders in Mumbai and other metros know the importance of earthquake resistant building, the first, Taylor Devices India, the Indian subsidiary of US-based Taylor Devices Inc. has launched certification for earthquake resistance buildings in India. The company will construct earthquake resistant building using shock absorbers inside the wall. These shock absorbers uses the aerospace technology to keep building stay stronger even during earthquakes of higher magnitude of up to 7.5 on the Richter scale.

The Taylor Devices India categorizes building into Category A, B C & D based on their resistance to earthquakes. While Category A and B building can stand up to higher magnitude earthquakes, Category C and D need structural repair to endure earthquake. This company will give Taylor Protected' and 'Taylor Earthquake Protection' brand certification to building that fall under Category A and B. This certification will now allow home buyers to know about the earthquake resistance of the building they are planning to buy.

Not just use of high-quality steels and shock absorbers can make a building structurally sound and robust, but it also requires application of various engineering technology while constructing. Certain skyscrapers are built on ball bearings, springs, and padded cylinders that absorbs shocks and keep the building stand still while the ground shakes. These springs and cylinders moves with the ground during an earthquake rather shaking the whole of the building. When a building is constructed on a correct, strong foundation, then it can endure earthquakes of smaller magnitude.

India being one of the countries that come under Seismic Zones III, IV & V. the need for earthquake resistant building have become very vital. Though constructing earthquake proof building require a lot of technology and huge expenses, it is highly necessary to keep people alive during those massive earth calamity.  At least the New projects in Mumbai and in other cities if India should use shock absorbers and high-quality steel for construction

Locations in Mumbai where you should look to invest

With the air of uncertainty that surrounded the property buyers of Mumbai most likely to clear off in the coming weeks, one can expect a mad rush to pick out the unsold apartments in the city. With so many options available, both under construction and completed, many are looking for advice on who should invest where for the best ROI (Return on Investment) possible.
The following localities have been shortlisted as good spots in Mumbai Real Estate for investment based on factors like demand, growth prospects and current price point.

Chembur
The central suburb region is one of the major spots for property investment and Chembur hogs the limelight here. The location, as the name suggests is bang right in the middle between Mumbai and Navi Mumbai making it the most lucrative of all the suburbs to invest in right now. If you manage to choose a place that is close to the Eastern and the Western Expressways, commute to and away from the city will never be an issue anymore. With loads of amenities and excellent infrastructure expect a minimum of 15% appreciation in value annually! Prices start at Rs. 16000 a sq ft.

Mulund
Situated right in the cusp of Thane and Navi Mumbai, Mulund is one of the better planned suburbs of Mumbai. It is also one of the rare suburbs in the country that has equally good commercialization of the property market as much as it has been shared for residential purposes. Relatively large projects can be found in Mulund and the infrastructure makes it a costly affair with prices going up to Rs 18,000 a square feet! Expect good appreciation in rates though with the airport coming up soon.

Kanjumarg
Moving away from the suburbs and into the heart of the city, Kanjumarg is the locality to watch out for when the fence sitters start punching the sack! It boasts of a prime location that gives easy access to all forms of transport, even the port, though many would not need it. But with industries in place, your property could very well be the golden fruit for some investor in the future making any investment in this region worth its weight in gold or even more!

Wadala
This area requires no introduction to Mumbaites or otherwise! Located bang in the center of the city, it attracts investors and home buyers like none other. The presence of educational institutions makes it a lucrative deal for families. One can also think of the prospect of renting out the place to the student community or to working professionals in the area. The inflation in land cost is also always on the higher side being the center of the city. Prices start at 19k and can go as far as 22k depending on the New projects in Mumbai and its amenities.

Bandra
Bandra does not need an explanation as to why it should be your investment. However, the eternal traffic jams and messy congestion during the monsoon might put off many! Appreciation can be however at the highest in all of MMR at over 100% perennially. Good luck finding Mumbai apartments though!

Perambur- Trending Property Investment Destination of Chennai

Located in North Chennai, Perambur is one of the emerging residential areas of the metropolis in recent times. The area is witnessing a huge a residential demand owing to its connectivity advantage and infrastructure. According to the real estate experts say that it is the best time to invest in Perambaur. As this area has close proximity to Chennai Central Railway Station, which is located just 4 km away. Alongside, Perambur has the advantage of good access to rail networks of the Chennai city. The neighbourhood areas include Kodungaiyur west and east.

Once been an underdeveloped area, Perambur has emerged as the most demanded residential areas due to the development of hospitals, schools, parks and commercial complexes etc. Following are the major reasons why Perambur is becoming the preferred destinations for property investment;

Multiple Property Options

As per the real estate sources, Perambur offers both commercial and residential options. Here the property buyers can find plots, individual houses, apartments and builder floor flats. The price of the properties in Perambur is ranging between Rs 4,500 to Rs 9,000 per sq ft. The price of a double bedroom apartments in Peramabur is ranging from Rs 25 lakhs to 75 lakhs. On the end, the price of a 3 bhk apartment starts from Rs.55 lakhs for a 1000 sq ft unit and goes above 1 core for a 1500 sq ft unit.

Connectivity

Perambur enjoys good connectivity through railway links, as it served by 3 railway stations namely Peramabur Loco Works, Perambur Carriage Works and Perambur. Apart from it, there is a frequent bus transportation facility for the residents to reach their desired destinations.

Infrastructure

Perambur offers all the essential facilities such as schools, banks, shopping malls, hospitals, banks and ATMS. Further, the proposed infrastructural developments are in the pipeline.

Thus, for those home buyers who are looking individual houses or apartments in Chennai for long term investment, Perambur could be their ideal choice.