What Real Estate Gains?

§                                          Real estate was starving of liquidity and these major changes can help breathe a sigh of relief.  Cash trapped developers are in dire need of funds to complete projects. With the repo rate increasing from 7.75% to 8.00% and reverse repo from 6.75% to 7.00% in 2014, developers had a hard time to raise funds from banks and financial institutions. These relaxations will bring in liquidity in the sector as they can find institutional funds as savior.

§                                     With FDI being allowed to enter into projects less 50,000 sq. mt., small to medium sized developers can have access to foreign institutional funds which will empower the real sector to grow holistically.

§                                         Inexpensive housing projects have long been suffering due to insufficient attention. With relaxations in FDI, more funds will inflow in Indian real estate market which is expected to boost the inexpensive housing projects. Since, these projects cater to the economically weaker segment and low income groups, the changes in rules is expected to be a game changer for the economically low end segment and improve basic infrastructure.

Real Estate in Hyderabad 2014

2013 saw office realty as the most pitifully hit segment due to overall slowdown and uncertainty. With individual and corporate earnings going down, commercial real estate also lagged behind. It is expected that a new stable government after the 2014 general elections might allow tax breaks for real estate investment trusts which would rather help to pull the commercial properties flags high up.

Entry of multi-brand retailers might bring in lot of action on the retail front in 2014. With overall vacancy in malls reduced by 2% on account of increased leasing activities in the freshly-launched malls, things are improving.

2014 might be a different scenario as compared to other years as investors though interested in property market will lag behind the end users. Majority of sale in residential segment is expected to be for self-use. Investors rather find it difficult to exit out of the market because of the forecasted decrease in real estate transactions prices and this might bring in hope for end users to have their dreams come true, at deep bargains. Stability is predicted in the real estate market in 2014 with a positive shift in experience. 2014 general elections is expected to be the determining factor for commercial and retail segment as most things depend on the then pertinent eco-geo-political situation of the country.

- See more at: http://www.websqft.com/blog/real-estate-market-in-india-2014/#sthash.hdSAsYyK.dpuf

Real Estate market in India 2014

2013 was soaked in unprecedented challenges majorly including subdued sales, heaps of unsold inventory and builders going bankrupt. Will such things continue to exist in 2014? Keeping in mind the economic and political instability, the answers might vary. It is always challenging to forecast Indian markets be it grocery or real estate. But the concerns are candid as mentioned 

below:.

• §  High Inflation
• §  High Consumer price index
• §  Bank lending rates unchanged
• §  Purchasing power of people tumbling
• §  Higher Construction costs
• §  More Pre-requisite raw materials for construction with Government norms refreshed each year
• §  High Taxes
• §  Political uncertainty
• §  Frauds

In spite of the aforementioned trepidations, the Indian soil still remains a favorite for investors. The factors could be increasing migration to the cities which will outpour in the coming years, which, coupled with growth in employment, education and health care, will push the demand for residential and commercial space. One more spike of positive energy in this sluggish sector springs from the fact that the sales though slow have never been stagnant.

Most real estate professionals have a highly undivided opinion on the fact that the sector will start shining only in the second half of 2014 as and when there will be clarity on a new stable government. This in fact is expected to boost investment and kick-start the economy afresh.

Consumer confidence might still remain subdued in the first half of 2014 due to ambiguities surrounding general elections and macro-conditions. But post elections, cliff hanging investors are likely to take the energized dive. The increase in absorption of residential units will help reduce the currently large inventory holdings of developers. According to Websqft report, residential prices are expected to raise 10% approx. during 2014. The locals’ general prediction says, interest rates will be high in the first half of 2014 but will go down in the second half. When rates go down, sales will happen and absorption will improve.

National Housing Bank plans to offer more

Change is inevitable in the real estate industry and this time it is for the good! The NHB (National Housing Bank) is considering a proposal that seeks to allow lenders to give up to 90% of the property value as home loan! This can in fact lure many eyes to this sector which is long waiting for rejuvenation. The proposal is for above INR 20 lakh loans that carry mortgage guarantee cover.

The present scenario offers a maximum of 80% of the property value as home loans. NHB’s effort in seeking to increase the cap to 90% is expected to boost the industry morale. LTV (loan to value) ratio at 90% means that a home loan borrower can avail a loan of INR 90 lakh against a property value of INR 1 Crore.

The regulator for HFCs (Housing Finance Companies), NHB’s chairman cum managing director Mr.RV Verma says “We will discuss the matter of increasing LTV ratio for loans that carry mortgage guarantee cover from companies registered with the RBI.” HFCs enter into a contract with mortgage guarantee companies at the time of loan origination. The measure not only helps mitigate default risk but also proves financially viable when Home Loan Portfolios are securitized.

- See more at: http://www.websqft.com/blog/national-housing-bank-plans-to-offer-more/#sthash.GpXIoyXE.dpuf

Understand the reason why housing communities reject pets

Represent as a responsible pet-owner

Understand the reason why housing communities reject pets. The owners might have had bad experiences in the past with irresponsible pet owners who didn’t safely confine their animals or pick up their faces, sneaked pets in, or left ruined carpets and drapes when they moved out. They may be worried about complaints from neighbors about barking dogs and wonder how they are going to deal effectively with pet owners if problems arise. All such concerns are valid. Access for yourself as to how you would deal with them. You need to represent yourself as a responsible pet-owner. To do so, initially gather proof. The more documentation about your plans of upholding hygiene, clean surroundings and passionate hobbies like animal breeding attesting to your conscientiousness as a pet owner, the more convincing your appeal will be to your future landlord. A letter of reference from your current landlord or society head verifying that you are a responsible pet owner would in fact enhance your chance to get the house on rent.

Present a healthy, well-mannered pet

Many apartment communities or owners require a pet interview before renting, so you need to be equipped with paperwork that shows your pet’s vaccinations, obedience training certificates for on and off leash. You can even invite the landlord to visit you and your pet in your current home. A freshly groomed, well-behaved pet will speak volumes. Provide written proof that your pet is spayed or neutered and is, therefore, healthier, calmer, and less likely to be a nuisance. If you cannot arrange for a meeting, consider making a short scrapbook with photos of your pet in his or her current home as such unique ideas guarantee to make a strong and positive impression in the minds of the landlord. Emphasize that the same pride you take in caring for your pet extends to taking care of your home.

Be ready to pay extra

Explain your understandings and show your willingness to shell out a little extra. Tell your prospective landlord that you are willing to pay an additional security deposit to cover any damages that the landlord supposes that your pet might cause to the property.

Get permission in writing

Once your landlord/society agrees with you in having a pet, try to get it in writing. Sign a pet addendum to your rental agreement if possible. The no-pets clause if available in agreement should be removed from the lease or crossed out before you sign it. Be sure it has been removed from or crossed out on your landlord’s copy as well.

- See more at: http://www.websqft.com/blog/how-to-search-for-pet-friendly-houses-on-rent/#sthash.fx3hd5f1.dpuf