Tuesday, April 08, 2008
Count those Discounts!
You must have noticed the various kinds of discounts that many developers are offering to persuade buyers. Most of them are just marketing gimmicks. In actual there is no reduction in the real value of the flat. There may be various expenses that the buyer is forced to incur during the possession of such discounted properties.
In Thane, a developer was apparently offering a car with each sale. The promotions also claimed home loan interest rates at 8 per cent through two cooperative banks. The customers later found that the car was a bumper prize. Worse, the 8 per cent interest rate was only for the first few months!
No Developer offers discount below the base cost, which includes the cost of land and construction. However, developers do offer value-additions and incentives to prospective buyers to speed up the willingness to buy. When looked at closely, these incentives do not have any significant monetary value. It’s observed in a falling real estate market, small developers start with such practices before going for distress sale. It’s also noticed that most of these practices are adopted by Dubai-based developers. For luxury apartments in the Middle East, developers tie up with car companies or offer other such discounts. Most of the products bundled with the house are either phased out or in the process being phased out.
Such offers are from smaller realtors only. The bigger ones have sufficient holding power to await the natural progression of the property cycle.According to me a simple rate cut, perhaps, makes more sense than goodies.
Fraud rate alarmingly high rate in the realty sector
Booming markets invariably bring with it unsavory people, who try to make some quick money through dubious methods. This is more or less the state of India’s property market at this point of time. There are developers who sell the same piece of land to number of customers and there are those who sell land without clear titles or mandatory permissions from the authorities.
There are many fly-by-night operators and others in the unorganized sector who indulges in such fraud. So what should a buyer do? I would suggest buyers to investigate the background of any developer thoroughly. Believe me, if you are not careful, your life’s savings could be at risk.
Monday, April 07, 2008
Flying High - The new international Hyderabad Airport
Built at a whopping cost of Rs 2,500 crore, the new International Airport will place Hyderabad in the league as Hong Kong, Singapore, and Kuala Lumpur. Spread across 5,000 acres of land, the airport sports the longest runway in South East Asia and is definitely the first truly world-class airport that India can boast of. The high-capacity airport will make Hyderabad a major cargo hub in Asia.
The real estate markets of Hyderabad are expected to take cue from this remarkable development. Prices of commercial and residential properties in Shamshabad, where the new airport is situated, started to escalate way back from 2003-04, when GMR Limited was given the contract of developing the airport. The ‘aerotropolis’ concept further facilitates hotels, healthcare centre’s, residential campuses, and retail outlets right inside the airport zone - a concept currently operational only in top cities like Seoul, Munich and Hong Kong.
The brand image of Hyderabad is witnessing a major makeover.
The Real Investor
The first golden rule of investing is to diversify your portfolio. Even though high paying categories are always lucrative, the risk factors involved are even higher. Direct commodity investment is advisable only for market savvy investors, who keep a close tab on the market. Stocks, bonds etc should be a part of your saving instruments and all of it. Commodity oriented mutual funds and other such indirect investments though are less risky, they are not exactly what we term as ‘user friendly’.
So what else is there?
For many, real estate investment is an essential part of a well-rounded portfolio. Buying and selling real property, or even long-term owning, has proven to be one of the most profitable and least risky investments available.
When it comes to investing in real estates, you will find a wide array of options like property oriented mutual funds, REIT (Real Estate Investment Trusts), and many other types of mortgage backed securities.
However, one should keep in mind that they are not "zero risk" affairs - there's no such thing in investing! Prices fluctuate, relative to other goods and investment channels. But if you educate yourself with basic market laws and have sufficient cash and other liquid assets to be able to hold until the time to sell is right, you'll never have any reason to regret in making real estate investments a major portion of your portfolio.
Thursday, April 03, 2008
Noida is heating it up
Over a long period of time Noida has amazed everyone around the neighborhood to look at this place with flabbergasted expressions. Truly, since 1976 the Noida authority has left no stone unturned and let the entire nation look at it with spectacled eyes. Recently Asia’s biggest real estate deal also took place in Noida. Keeping the growth of Noida in mind many developers are eyeing the city for their future projects. One of the latest proposals being made by the Delhi based real estate developer Omaxe .It has decided to start a high end project with luxury apartments and penthouses- Omaxe twin towers, which will be one of the tallest buildings in the NCR region. Apart from building luxury apartments, the company also plans to construct 'houses for the common man' through their ''Ek Awaas Sabke Paas'' scheme.

