A Young Buyers’ Guide to Buying Property in India

A Young Buyers’ Guide to Buying Property in India

 

The young generation is fierce and the dreams they visualize stays in their mind till the time they turn into reality. The young individuals do every possible task required like savings, right investments, policies and much more. Men and women between the ages of 25-25 are moving towards realty investment as they tend to take it as an excellent option to certify their “settled” tag. Whatever be the reason but investments in the property arena has become a much-needed wish in their list. However, buying a new property can be challenging and the process can be daunting; since the real estate market is extremely sensitive is dependent upon the reigning policies and updates.

To help the young buyers decipher the process and get the most out of the purchase, there are some points that should be taken care of. Here are the important pointers:

 

  1. A Suitable Property

The buyer should be able to demystify the type of property he/she wants; residential, commercial or retail. Then there are factors like price, preferred location and city that come into consideration. There are young buyers who will want their property to be lavish, colorful and all funky and then there will be buyers who are interested in more serene choices. Thus, the buyer should be clear about the property that he wants to nail down so that the money doesn’t go in waste.

  1. Be on Toes and Know the Real Estate Market

The newbie who is interested in buying a property at this very moment should know the current scenario prevailing in the realty market of their country. This can be done in several different ways like contacting acquaintances that might be living in that particular area, enquiring about the property prices, searching online and tapping the figures or contacting property dealers/brokers who trade in this very business.

  1. The Worth of Brokers & Agents

It is true that internet is vast and encapsulates information of the world but there has to be a source who can take a person in the real-time scenario. This can be easily done with the help of a broker or a real estate agent. This is due to the fact that these agents have been inside a number of properties, have relationships with different other agents and have nailed down many deals. They know exactly what to do when a keen buyer approaches with all his demands and requirements in mind. Purchasing a property relates to one’s emotions to a great deal but getting carried away in this feeling can lead to a regrettable decision.

Refrain From Getting Overwhelmed by Data

Data is important and is required to understand the potential market and the properties worth investing but too much of anything is bad. The greying generation bought a property in absence of information and advanced technology. However, the running era is dominated by technology and internet that is loaded with data. Focusing too much on data can leave a person in a confused state and may stall a buyer over whether or not invest in a particular project. It is better to be simple and less complex. If there is down payment in hand and right people by your side, then a go ahead is a nice idea.

  1. Take Time & Decide

The young generation is fast but buying property is a serious case that demands attentiveness and practical approach. Now that the person has data, capital and required support, it is advisable to take time and analyze all the options one by one. After all buying a property is not buying a smart phone or a video game; this is a long term investment and that too big in numbers. Even though the flow of information is quick today with Internet on board, still a property purchase should be given some time, a research and due diligence.

  1. Take Note of Important Procedures

There are a number of procedures that are to be followed when buying a property in any part of India. Moreover, these procedures differ with city and thus, it is important for the young buyer to have knowledge of each of these given property buying protocol. For instance, if the buyer is interested in buying a land in Lucknow or is eyeing upon an apartment for sale in Chennai, Bangalore or Delhi/NCR region then procedures will have to be taken seriously. Property registration, stamp duty tasks and court proceedings vary with city.

Before We Go!!

This guide will not be a deal breaker but can definitely pave a path for all the newbies who are ready to be the moguls of the property market of their respective countries. Apart from these pointers, a young investor should also consider the word from the elder. After all experience speaks!

 

 

Why Selaiyur is a good real estate choice

Real estate in Selaiyur, a suburb of Chennai, located on the Tambaram Velachery Road is attracting the attention of home buyers who wish to stay closer to their workplace and are also on a budget.

Now, what are the factors which are in favour of real estate in Selaiyur?

Location: Selaiyur is located near Tambaram and Velachery. The distance to the Information Technology (IT) hubs on the Old Mahabalipuram Road (OMR) is just 13 km. Selaiyur’s proximity to the IT hubs on the OMR is one of the reasons for its recent popularity among home buyers.  Young professionals employed in these IT companies are the main target group. Selaiyur is also close to the manufacturing companies located along the GST Road, Tambaram and Guindy. Many companies are encouraging their employees to live close to the workplace, as this would reduce the transportation costs for the company.

Connectivity: Selaiyur is well connected by buses to all parts of the city, and from Tambaram by suburban train; the train station is at a distance of 3.8km. The airport is 11.9km away. Connectivity to Selaiyur will get better once the flyover which connects the GST Road at Singaperumal Koil, Walajabad, Sriperumbudur and Perungalathur is completed.  Widening of the GST Road to six lanes and eventually to eight will also go a long way in improving the capital value of real estate in Selaiyur.

Affordability: People on the lookout to buy affordable homes are now looking at Selaiyur for this purpose. The main reason is that most of the Chennai’s northern and central suburbs have reached saturation points. This has led to places along the Grand Southern Trunk Road drawing the attention of builders and home buyers.

The prices of real estate in Selaiyur are on the rise since the beginning of this year. The average rates were Rs 4700 per sq ft during the first quarter of this year. The prices for apartments in Selaiyur, however, are still affordable as the property prices in the city’s main residential areas are now well over Rs 15,000 per sq ft.  The average price for a residential plot in Selaiyur is about Rs 2400 per sq ft.

The closure of the Nokia plant has had its impact on all categories of home buying. Prospective home buyers are getting a little wary of taking bank loans and investing in apartments (as they fear that they might be benched or that the jobs will cease). One of the fallouts of the Nokia closure has been the closure of suppliers to Nokia, such as Foxconn.

According to newspaper reports, many of the electronic and hardware manufacturing units in the Special Economic Zones (SEZs) have closed down because there is no export demand. Not all such units have shut shop though, as the higher domestic demand is keeping the companies going. However, this means that these units don’t need a SEZ facility and there have been some lay-offs. “The loss of confidence in the consumer is a passing phase” say the builders and as “confidence levels rise with new enterprises, the consumers will come back into the market”.

Though Selaiyur is far from the city centre, Chennai’s cosmopolitan ambience is present here. Chennai is home to a large number of business process outsourcing (BPO) companies and multi nationals; this means that it attracts people from all over the world as well as from other parts of India.  The law and order climate is one of the best in the country and is quite safe for foreigners and women.

Since this locality is close to work hot spots, such as the OMR and to manufacturing bases, it is likely to attract a large number of people who will, possibly, be employed here. An investment into a flat in Selaiyur will, in all probability, prove to be a good one, as it would be quite easy to rent it out.

Source: Money Control / Nina Varghese/ IndiaProperty.com

Know the key reasons to buy property in Chennai

After seeing a poor and sluggish phase for couple of years, Chennai’s real estate market has started indicating that it is into a recovery mode now. The indicators are many.

“There are several infrastructure projects that are at different stages of construction and planning that will impact the citizens and the property market. These include Chennai Metro Rail, Chennai Mass Rapid Transit System, underground drainage, bus terminus, interlinking of CMRL, MTRS & sub-urban rail network and outer ring roads,” says N S Periyaswamy, deputy planner, Chennai Metropolitan Development Authority.

“Peripheral road planned for connecting Mahabalipuram and Chennai port will also impact various residential pockets of the city,” he adds.

Also, as indicated in a property show, residential units in the price range of Rs 40 lakh – Rs 60 lakh has seen rise in demand. The major reason behind this is the successive reduction in lending rates for home loans which has bought buyers into the market.

To know how these infrastructure development and announcements does impact your real estate investments, or is it a good time to buy or invest in Chennai’s real estate market or not, join the GuruTalk – a live chat organised by Magicbricks with the Mr Periyaswamy. The topic of the discussion is Key reasons to buy property in Chennai. The chat will be held on 11th June, 2015, Thursday between 12 pm – 1 pm.

Source: Times of India / Magic Bricks –  Neha has written on industries such as real estate, franchise and outdoor advertising.

Thiruvanmiyur emerges as a premium realty hotspot in Chennai

Famous for the Valmiki and Pamban Swamigal temple, Thiruvanmiyur has emerged over the years as one of the most premier locations in the city. The residential settlement in the area boasts some of the most posh localities of Chennai. Proximity to Tidal Park and many major educational institutes have given the region a major boostover in the recent years. The sprawling MTS Bus Terminal is also one of the driving factors behind popularity of the area. Real estate prices are going up the roof in the area and the demand is ever increasing.

Perikaruppan, chief executive officer, Sree Raja Rajeshwari Developers, feels that the demand for residential properties in the area will be steady. He says, “The stabilisation of the IT industry along with investments in the auto segment has led to people looking at investment options in Chennai like never before. The position of Thiruvanmiyur acts in its advantage. Being at the junction of OMR (the commercial hub) and ECR (upcoming residential hub), the outlook is very promising and highly investor oriented. Already, the CMDA has planned for increasing the connectivity between the OMR and ECR, which will ease the traffic at Thiruvanmiyur. Timely implementation of the infrastructural projects will further enhance the demand.“ Siddharth Thyagaranjan, an architect by profession, has been living in Thiruvanmiyur since two years. He appreciates the connectivity that the area has with the rest of the city.

“The MTS terminal at Thiruvanmiyur ensures that all the buses originate from the area. Also, shareautos beyond the ECR make it convenient to commute. The area is as older than the OMR and ECR but the real estate growth is different when it comes to Thiruvanmiyur.The concept of multistoryed apartments has increased. Not only the residential but also the rental rates are high in the area.“ He attributes the growth to proximity of the Tidal Park. “Thiruvanmiyur is the closest residential settlement near Tidal Park. Besides, the social infrastructure of Thiruvanmiyur makes it the perfect choice for the IT professionals who don’t mind paying higher rents,“ he adds.

Arun Kumar, founder and managing director, Casa Grande, says, “It is one of those few areas which fall within the city limits and is witnessing growth in real sense. Thiruvanmiyur is a well-established area and falls into a luxurious category. Prices range from `9000 16000 per sq ft.The buyer profile of the area is niche, which includes established business community and HNIs.“ He adds, “These locations will continue to grow. The presence of good social infrastructure like, schools and hospitals will further help to boost the demand. However, I think the infrastructure is not conducive for the future and much needs to be done to sustain the increasing settlement.“

Source: Aditya Shekhar, Times Property, The Times of India, Chennai

How Madipakkam became homebuyers’ choice

Have you invested in Chennai’s Madipakkam? Magicbricks research shows that the locality has climbed to the fourth position in Jan-Mar 2015 quarter from the seventh position of last quarter. Experts say there are many reasons behind it.

Affordable properties

Availability of affordable properties is attracting buyers here and ultimately pushing the locality in the preference grade. Since it is situated in the Southern part of the city, it is close to areas such as Velachery and Maduvinkarai.  Property values in the locality vary within Rs 4,550-5,440 per sq ft. While Velachery has properties within the budget range of Rs 6,140-7,780 per sq ft, Maduvinkarai offers properties in the range of Rs 6,300-8,000 per sq ft.

Adyar is another premium area which is about 10 km away from Madipakkam. In Adyar, property values range between Rs 13,000-17,500 per sq ft. Madipakkam is an affordable option to those with a tight budget.

Roads & Connectivity

It is connected by suburban railway stations such as Velachery and St. Thomas Mount. Other modes of transport easily available are auto rickshaws and buses. Metro railway line is also proposed to come up in near future. “Important roads include Inner Ring Road, Medavakkam High/Main Road, OMR and Madipakkam Main Road [E-W],” says Samraj K of NIVI Foundations, local real estate consultant.

Also, the area is situated along the 200 feet wide road. “The locality is connected to Tiruchi-Chennai Highway on one side and Old Mahabalipuram Road (OMR) and Pallavaram on the other side,” Samraj adds.  However, he pointed out that since it is a busy locality, traffic congestion is a problem and parking spaces are difficult to find.

Easy connectivity to the localities situated along the OMR, such as Sholinganallur, Karapakkam and Perungudi is another reason why people opt for this area.

The locality can also be reached through the Velachery Main Road. The Velachery Railway station is just 3 km from the locality connecting it to the local rail network of Chennai.

The city’s International Airport is just about 6 km away and the Central Railway Station is about 21 km away.

Infrastructure

In terms of social infrastructure, there are ample numbers of schools present such as St. Thomas Matriculation Higher Secondary School, Prince Matriculation Higher Secondary School, Sai Matriculation Higher Secondary School, Raj Kumar Suloksanan School, amongst others. The Perumal Engineering College is located in Madipakkam. Apart from this, for the food lovers, more than 10 local eateries can be found.

While talking about the civic infrastructure, Bharathi Nagarajan, owner of the Silicon Realty, a local real estate brokerage firm says, “Some pockets of Madipakkam such as Ram Nagar South face  water logging and drainage issues during rains. However, most parts of Madipakkam is well established and developed when we talk about civic issues. The area also offers regular water supply and no major power cut.”

In terms of security, “The area has its own police station, thus regular patrolling takes place that takes care of the safety of the residents here,” says Nagarajan.

With Madipakkam’s recent inclusion to the Chennai Municipal Corporation limits, the liveability aspect of the area has improved for the residents. This has also pushed buyers to look out for properties here.

Buyers Profile

Currently, Madipakkam sees demand from locals as well as from outstation people. Since the area is close IT hubs such as Velachery and OMR, buyers are families of those working in the IT companies.

What’s available?

The area currently is witnessing a maximum of 2BHK apartments, while few 1 and 3BHK units are also offered. The price of 1BHK unit sized 450-750 sq ft area ranges from Rs 18-29 lakh, while a 2BHK apartment sized 800-1200 sq ft, can be bought for Rs 35-65 lakh.

Source: Times of India / Neha has a vast experience and she has written on industries such as real estate, franchise and outdoor advertising.

Why home owners should avoid distress sales

Why home owners should avoid distress sales

Sanjay Nayar, a user asks Magicbricks whether it is the right time to sell his property. Over the last two years, he has been waiting for the right buyer who would give him his property’s worth as per market standards. After a prolonged period, he has been approached by someone who is ready to buy but is keen on negotiation. Nayar wonders whether it is the right thing to do.  Open House is teeming with such queries. Every seller is wondering whether it would be a good move to sell or wait.

Well, trend watchers have something to tell you. After all, if you have held your property for long, you are keen on good returns too. Selling in a hurry may not serve the purpose. This is what industry insiders’ term as ‘distress sales’. Property market, like politics has always been subject to speculation. Those who have bought constantly wonder about when is the right time to exit the market. Those who haven’t bought are equally anxious speculating price increases over a period of time. While it may be a good time to buy, it is not be time yet for selling unless you are waiting for some quick cash in hand for an urgent need you cannot afford to defer.

“If you are selling today, you have to be open for a bargain. Active buyers always read market trends. They know it may be good to buy when the supply is more than the demand. Consequently, while they do not compromise on their lifestyle choices, sellers or those who have been investors for long may find themselves in crisis,” says Vikram Pandey who deals with properties in the capital city.

Mahesh Mishra, one such seller narrates his experience. “I bought a plot for Rs 8 lakh in Bidarahalli in Bengaluru. Speculators insisted I should dispose this property as soon as possible because of the uncertainty in the market and second, my status as an outsider in Bengaluru.”

“I shouldn’t have given an ear. I sold it for Rs 10 lakh in two years but that is how much I had put in including additional charges. Today Bangalore Development Authority is undertaking developmental work in Bidarahalli and land values have already escalated two-fold. Moreover, ‘outsiders’ are happily settled in the city and making money out of their investment. I could have made a lot of money too,” adds Mishra.

“As a rule of thumb, it is never a good idea to sell anything when the market is bad and showing no signs of recovery. If there is no alternative but to sell despite unfavourable market conditions, it is not enough to simply list the home and wait for an offer,” says Ashwinder Raj Singh, CEO, Residential Services, Jones Lang La Salle.

When selling a house on a depressed market, it is very important to understand what is happening in the market. It is important to know the true market value of one’s home, which is often very different from what ones hopes or thinks it is. Undervaluing or overpricing your property while trying to sell it on a slow market is a serious mistake,” he further adds.

So when should you sell? Hold on. There is already some momentum visible in the market although at a creeping speed. The next six to eight months may be crucial after which sales may pick up and you could gain! Keep reading market trends specific to your locality. Grab a free copy of PropIndex.

Don’t let desperation overpower you. Property is all about timing!

Source : Times of India / Sneha Sharon is a part of the Magicbricks- Content & Research team and is a market research enthusiast.