Monthly Archives: February 2017

CONSIDER THESE PARAMETERS BEFORE BUYING

Prescon Realtors & Infrastructures Private Limited

Gone are the days when you would buy a home in the twilight years to retire in. Times have certainly progressed and now we see an increasing number of younger professionals, at the peak of their careers swaying towards real estate as a viable asset purchase. However, majority of them are end users (or aim to be) in the long run.

Metrocities like Mumbai and Delhi where house rents have grown at an exorbitant pace are seen to be leading this trend. Whether the intention of investment in a real-estate property is motivated by own consumption or as an investment purpose purely but in the end. both inves-tors and end users will purchase the property and hence, its pertinent to consider some key parameters before making that final call. Different motivations will imply one is looking at the same parameter differently accounting for the macro perspective.

Value or Cost?

Having a bird’s eye view of the return on investment maximizing the output at minimal capital cost is a business imperative for each investor as the investment is a value proposition for them. The minimal investment is usually comparatively larger in scale and size and is also measured differently due to the return value aspect. End users do not tend to look for an absolute financial value

as it is a matter of consumption for them and not income. Hence, the parameters tend to differ significantly Cost is the predominant factor for them, guided by their budget. As there is no return value element to balance the cost, their budgets are limited and inflexible. They can only account for possible income growth when estimating a long term budget.

Evaluate the Risks

This, however, has its own set of risks to evaluate. As a result. they are looking for the lowest cost price possible while maximizing use of their entire budget. The value achieved is nonmonetary in nature and its valuation against any price point will vary from person to person. For investors, budgeting is much more flexible. They can make room for much more risk and just have to ensure they have enough capital to stay afloat in times of crisis that a delay or stalling of the project may inflict. Additionally with REITs coming into play they can now diversify their investment capabil it ies across various projects, minimizing risk end Increasing returns. but only In commercial offerering.

Assess your budget

Even with the easy availability of home loans endusers have to take caution and first assess their budget. This will also take into account the risk that will come with taking a loan or buying a property.

Changes in interest rates will affect their ability to repay the loan and until the loan is repaid the purchased property will remain a liability as opposed to a high potential asset.

It is imperative that buyers assess their budgets first and then find the right property that fits within it in terms of price and deliverables (amenities, life-style, etc.).

Consider credentials

Apart from these factors, every home buyer will have to look at his budget, price and assess every prospective builder’s credentials by evaluating their past performance to ensure transparency and good returns. Lastly, remember, innumerable home buyers are reaping the benefits of in-vesting in real estate irrespective of the geographies, size of the apartment etc. every day. across the country and this n. wave will only fto continue to g . grow stronger.

3 BHK SPACIOUS FLATS IN RAM MARUTI ROAD, THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55

Email: prescon@prescon.in

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HOW LEGALLY HEALTHY IS THE TITLE OF YOUR HOME?

Prescon Realtors & Infrastructures Private Limited

A title search involves examining the chain of ownership and establishing whether or not it is free from legal and financial encumbrances. Here’s how you can get it right

A title search, is a due diligence investigation of various aspects of a property, to ascertain its legal health. “In the case of resale properties, the existing owner may have created encumbrances on the property, in the form of pending service or utility charges, by raising a mortgage or personal loan, or through other financial liabilities. It should not be taken for granted that every first owner will disclose such encumbrances,” cautions Anuj Puri, chairman and country head of JLL India.

One must also be well-versed with the latest judgments of the various authorities, tribunals, and courts, adds Anirudh Hariani, solicitor of Hariani and Company. “There are certain landmark judgments that give an in-depth interpretation of various statutes and the correct method to comply with the same. It is essential that these judgments and orders be considered, in order to draft your transactional documents correctly,” he advises. Other practical exercises and due diligence procedures, also have a bearing on the transaction as a whole, he explains.

Advocate KM John, points out that buyers should first verify the seller’s capacity to sell. For example, if the person selling the property is a nominee, or one of the legal heirs of a deceased owner, he cannot sell the property, without the consent of all legal heirs. If he has received the property through a will, it has to be examined whether probate is necessary. If the property is government-owned, it is necessary to obtain prior permission of the concerned authorities, he elaborates.

Complex to Understand

The entire legal process of sale or purchase, leave and licensing and redevelopment of properties is multi-faceted. Title search alone touches upon various aspects of law (which vary from state to state), most of which have no reference to one another and are in a constant state of flux. Provisions relating to the title of immovable properties, are scattered in different statutes, including the Transfer of Property Act, Registration Act, Stamp Acts, FEMA, Guardians and Wards Act, Succession laws, Income Tax Act, Companies Act, Partnership Act and Public Trust Act, besides state government regulations, John points out.

Adherence to various government notifications and rules is also required, most of which are not mentioned in textbooks or commentaries. The applicability of such laws and notifications varies, and depends upon the nature of the property, type of rights, nature of transaction and legal status of the parties.

“The basis for rights in property and the mode in which they are crystallised, is through various transactional documents. These documents form ‘the title’ to the property. The documents embody the parties’ rights and interest in the property and include ancillary documentation and hence, are of great importance,” explains Hariani. “There is no fixed format for such transactional documents. Each document varies from another and tailoring of the same may be required, in order to meet the parties’ needs, to mitigate future legal liability, and to protect the rights of the parties,” he adds.

Word of caution

There is a growing trend to rely on estate agents, to complete the transactions, John points out. “The agents have formats of previous agreements, in which they replace the name, address and the property’s description, to prepare fresh agreements for their clients. I have seen several people landing in serious problems, on account of this practice,” he warns.

It is especially important to conduct a thorough title search, in the case of land and older high-value properties. While there is no fixed checklist for the same, a relatively safe option, would be to hire the services of a lawyer to the same.

RESIDENTIAL PROJECT NEAR YEOOR HILLS THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55

Email: prescon@prescon.in

A GUIDE TO CREATING WEALTH WITH RESIDENTIAL REAL ESTATE INVESTMENT

Prescon Realtors & Infrastructures Private Limited

How does an investor make the most of a property investment? We get the experts’ views on the factors and the regions that residential home buyers should consider

For any investment in residential property to provide effective returns, the chosen location should have good social infrastructure, adequate public transport and sufficient economic activity to sustain development and growth. These parameters apply to investments in non-agricultural land approved for residential development, as well as flats in RESIDENTIAL PROJECTS.

However, to mitigate risks, one should stick to tier-1 and select tier-2 cities only. It is also prudent to invest in properties, where the prices range between Rs 2,500 and Rs 5,000 per sq ft, as this will provide protection against capital value erosion. Simply put, this is a safe price segment and almost guarantees capital appreciation.

Guidelines, to make the most of your property investment:

  • Understand the property cycle, to identify the best entry point.
  • Leasehold titles issued by the government must be fathomed.
  • The investor needs to have a clear comprehension of unearned increase or capital gain and quantum of stamp duty that needs to be paid.
  • Check the quality of the development because poor design and construction are common when the markets are depressed.
  • The project’s development plans and all statutory approvals, should be in place. If the approvals are not yet in place, the investor should monitor them closely during the investment cycle.
  • Check the credibility and track record of the developer and his arrangement for finance to complete the project, as even reputed developers have failed to deliver under the current market conditions.
  • Enlist a reputed legal firm to carry out the due diligence on the property’s title. One can no longer rely solely on the due diligence of home loan firms, as they have targets just like developers.
  • Understand the implications of the size and dimensions of the plot/apartment. Small plots or apartments may cost less but they may be difficult to sell.
  • The location of the project may be important but so is the location of the plot or the apartment within the complex. Investors should avoid buying flats on the top floors of high-rise buildings, as the floor-rise charges will add to the cost.
  • The price of the development, should be lower than the last peak (in 2008). However, exceptions can be made for quality, delivery date and location.
  • The time frame for getting possession of the property and conveyance of land, must be explicitly clear.
  • The penalties in case of delays, must be well understood.
  • The investor must know the difference between soft launch, launch and current price of the developer. The resale price in completed projects, may be actually cheaper.
  • The investor must understand all the clauses in the sale agreement along with the transfer charges that may applicable, in case he wishes to sell the apartment during its construction. He should also establish whether the agreement value includes the cost of all amenities, parking, etc., or whether these are to be paid separately.
  • The investor should compare the project with others, based on its carpet area rate.

If all the above precautions have been taken, the property should ideally appreciate at a consistent rate of 15% per annum for three years. It is important to remember that one can almost never sell at the peak, just as it is impossible to always catch the lowest price.

LUXURIOUS 2 AND 3 BHK FLATS IN THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55

Email: prescon@prescon.in

THE MISTAKES OF OUR (INTERIOR) LIVES

Prescon Realtors & Infrastructures Private Limited

A few things that most people tend to overlook while planning their residential layouts and furniture placement

Well, let me start with a disclaimer. Any re-semblance to anyone’s home or homes known in your circle is purely coincidental. Though the examples stated in this article are not a work of imagination. Fiction or theory they are neither intended to hurt any-one’s creative sentiment.

Entrance

You are the guest. visiting the host’s home the first time Ting tong. The door opens with warm greetings and jhappis and alas the first thing you see is shoes. Now, no matter what is our culture, religion, sect, dialect or community we den. nitely intend to keep dirt out, and that’s fine, but the shoes must not be ‘seen.’

Rule #l: Open shoe racks right at the entrance are a strict no. Shift them inside to a place not visible to guests, or get a covered rack. Of course am not getting into the aesthetics, I trust you.

Heights

Move ahead and you take seat at the brand new sofa set that the host has just bought from the Diwall sale. You love the comfort and admire the upholstery so much that your spouse has started avoiding eye contact with you. Water and tea get served, you pick your cup. take a sip, and the moment you wish to keep it on the centre table, realize the top of the table is high enough for dintier to be laid.

Rule #2. The height of the centre table should be equal or little less than the seat height of the sofa. The same goes for side tables too.

Space

Its dinner time and you all move to the dining table. Hot food is already laid and the scent is pulling you to jump into the delicious serving. So you step ahead to pull the chair bath and it gets stuck Into the buffet unit. Eight hands then calmly pull the dining further out ensuring the food does not spill and you are able to fit in. (Hey. you are not overweight. Stop finding the mirror. You are just right. It’s the space that’s really clumsy).

Rule #3 : There is no need to over stuff any area with Rim iture A buffet unit In

THE HEIGHT OF THE CENTRE TABLE SHOULD BE EQUAL OR LITTLE LESS THAN THE SEAT HEIGHT OF THE SOFA.

your dining area is not a necessity And the guests don’t mind if the new crockery is stored inside in the cupboard. Relax the space.

Placement

Tummy full. you intend to wash your hands and have a wash too. You get escorted to the wash room. Nice clean basin. dry bathroom, great colored tiles. but your admiration halts because there’s something not right and you just can’t figure out what that is. So you rewind your mind. You opened the door, crossed the WC to reach the basin. Ah! That is the problem.

Rule #4: The WC should not be the first thing visible as soon as the bathroom door opens. The right placement of the three postulates of a bath space, are the key to the right design. If the space is small, to divide the wet and dry areas, the closet should be placed in between the bathing area and the basin. So you approach the basin first, the closet next and then the bath area. Needless to reiterate, the bathing area is always towards the end of the bathroom, Irrespective of the size and the space.

Levels

Since you were led into the bathroom through the bedroom, and your purpose now tblfilled, you come back into the bedroom but can’t escape the stout solid wood Jodhpur make bed. The natural polish still has that charm that sways you Into the old world. Low height bed crowned with a thick pocket spring super comfort mattress. this is just the bed you had been eyeing for few months. The lamp on the side stand is just adding to the elan of this ‘singhasan’. And that’s when you realize that why is the small lamp looking so tall. The side stand is little too high for the head that shall rest next to it.

Rule #5: The top of the bed side stand should not go beyond the top of the mattress on the bed. Not just in terms of design and cost. it can be an inconvenience for the person sleeping on that side to knock her head. Better be safe than sorry.

And now please do not try to visualize yourself as a critic. Have mercy Be charitable and remember that charity begins at your own home.

RESIDENTIAL APARTMENTS IN GHODBUNDER ROAD, THANE Contact PRESTIGE RESIDENCY sales office to Know More @ 022 25985951 – 55

201, Prestige Precinct, Near Nitin Casting,
Almeida Road, Panchpakhadi
Thane West – 400604

Phone: 91-22-25985951-55

Email: prescon@prescon.in