Too Much of Wait May Not Be Worthwhile for Selling Your Property

Are you still waiting for the right buyer or the opportunity to sell your property? It often happens that you invest in a property and wish to make money out of it through a profitable sale. You keep yourself busy with the site visits and inquiries of the buyers for days and fail to realize that more than 8 months have passed since the property was listed by you, which in turn can reduce your chances of getting the property sold.

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The average time for a good property to get sold is not more than 6 months. If your property listing shows a greater duration then it might create a bad impression on the buyers, causing them to have doubts once they check your listing. Your chances of selling the property will thus, become low.

Investment of time is a necessity for any seller and that may end up giving you sleepless nights if you wait too long for the sale of your property. The amount of time you need to spend in attending the customers may cause you to sacrifice your own personal interests or appointments. The seller has to prepare his or her property each time a buyer visits the site and most importantly, he also has to be present there physically. So, you can well imagine how tedious the process can be if you keep switching from one customer to the other in the hope of finding the perfect one. You cannot neglect the call of one prospective buyer and attend the other. An equal amount of time has to be allotted to each one.

Besides, you will even invite monetary loss by delaying the sale of your listed property. Everyone has some plan or the other regarding the use of the money earned from the sale. Say, of the 50 lakh rupees that you expect to get by selling your property, 20 lakhs would be fixed deposited by you. But a delay of 6 months by you will make you lose out on the interest money of the deposited amount for the same period.

How to Speed It Up?

Try to compare your price with that of the other properties in the locality concerned. See, if those are cheaper than the one tagged by you and minimize it accordingly without keeping yourself on the losing end,

The country’s realty market is moving slowly where you may find a tough time selling your property. You can return to your listing once things get normal.

Or you may have to switch off from your existing broker so as to avail a better service. Look for the ones with relatively higher selling records and do not entirely rely on just one of them for getting your task accomplished.

Begin searching for buyers within your own social circle or inform the sale of your property to your colleagues, neighbours, and friends. Other than that, you have to adopt the right attitude without being excessively proud.

Last but not the least, a little investment for making improvements in your property may also increase its value thereby, attracting buyers.

For more of such useful knowledge or the latest updates of the country’s Real Estate sector, keep in touch with Transventor Property Management Services Pvt Ltd. Whether it is the sale, rent or purchase of a property, we are there to make your experience an enriching one.

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Is A One Bedroom Apartment A Wise Choice For Investment?

If you are given the options of a 1 bhk and 2 bhk apartment in the prime and distant locations, respectively, which one would you choose? Given below are the reasons that tell you why you should compromise on the property size and not on the location. With the property prices rising up, the 1 bhk apartment becomes the ideal choice for most homebuyers.

As we all know, smaller the size of a residential unit, greater is its affordability. If it is your first investment in a home then nothing can be more budget-friendly than a 1 bhk apartment. Less capital will be required to purchase a small property. This will consequently decrease the burden of your down payment as well as relieve you from the payment of heavy EMIs. Besides, these apartments fall into the segment of affordable housing that was provided with infrastructure status during the Annual Budget of 2017 to 2018. Home loans at subsidised rates are also being offered to the lower income groups on the occasion of buying units in this segment.

A 1 bhk apartment undoubtedly gets defeated by a 2 bhk unit in terms of popularity. This lack of demand makes it easy for you to grab the opportunity of buying a smaller home within your desired budget. Ample supply of these 1 bhk apartments gives you the chance to negotiate. Besides, the developers with possession of such units are in a hurry to sell them so as to avoid taxes that the Government has decided to levy on unsold units that are more than a year old. Developers have come up with interesting offers like waiving off of GST or maintenance costs, club membership, etc that you too may avail now if purchasing a home.

Different state governments are offering valuable discounts on property taxes for smaller residential units. Other than that, these units will also charge low maintenance as well as utility costs. A recent report says that the houses in Maharashtra, ranging between 500 and 700 square feet, are providing the buyers with a 60% reduction in their taxes while houses with an area below 500 square feet will not demand any property tax from the buyers.

1 bhk apartments are popular with those who wish to live on rent such as bachelors or young couples. With the growth of employment in cities like Mumbai, Gurgaon, Bengaluru, Noida, Hyderabad, these regions witness heavy demands of rented apartments. For those who wish to earn an income from their investment, nothing could be a better option than buying a 1 bhk and letting it out on rent.

Hope, your queries are cleared. To get more of such relevant information, contact Transventor Property Management Services Pvt Ltd. We are here to guide and assist you at every step of purchasing, renting or selling a property.

A Recap of the Year-Round Activities in the Real Estate Sector

It is the time to wrap up and recollect the significant changes that took place this year in the Real Estate sector. The market went through a slowdown but the homebuyers regained their lost confidence in the builders. Developers using faulty means also had to face a tough time.

RERA, To Begin With

Initially, not many buyers did comply with the RERA (Real Estate Regulation and Development Act), 2016 and challenged its rules, instead. But the number of registered projects is gradually increasing with the year coming to an end.

RERA has set regulations for the developers so as to look after the buyers’ interests. Till date, over 14000 projects have been registered, including 1100 projects in Gujarat. This reform also ensures the quick resolution of disputes regarding properties. The country’s realty sector will achieve accountability and increased transparency with this reform.

Crackdown on Benami Properties

In 2016, the Benami Transactions Prohibition Amendment Act was slightly changed followed by the tax authorities taking strict control of the benami properties in 2017. Around 541 properties have been seized by the Income Tax Department. Besides, bank accounts with funds worth 1800 crores have been frozen. The Government has made linking of Aadhar compulsory for the transaction of properties.

The Prominence of Affordable Housing

Affordable housing received the status of much-coveted infrastructure in 2016 along with increased importance this year as the Government concentrated in building projects for the LIG and EWS groups. In addition, it favoured the middle-class buyers by rolling out the CLSS (Credit Linked Subsidy Scheme).

The homebuyers and developers further benefitted from the Cabinet’s recent decision to increase the carpet area of houses that fall into the Government’s affordable scheme. This has paved the path for the end users to access bigger, ready-to-move-in apartments at lesser prices that easily fit their budget.

Good Times Start for the Middle-Income Buyers

The sale of low-income homes is not being able to gear up the country’s Real Estate market. On the other hand, luxury residential units aren’t getting enough buyers. This has caused the developers to concentrate on middle-income projects with buyers willing to spend between 25 and 50 lakh rupees for purchasing a home.

In contrast to the poor infrastructure, mortgage unavailability, low margins and extreme locations of the LIG (Low Income Group) homes, the compact homes in convenient locations are certainly more attractive, especially due to their affordable price range. This segment appears to be profitable for the builders and is recording sales in such times of market slowdown. This price segment being supported by several Government incentives has helped in regaining the lost confidence of the buyers and the builders too have faith in it.

According to the developers, the number of buyers has increased with the reduction in the prices and customization of the home sizes that offers them a comfortable living within their affordable budget. On the other hand, there are no hopes from the luxury segment.

Research shows that the country’s top 8 cities recorded a sale of 64,781 residential units from July to September, this year. A majority of the units, 23,493 to be more specific, belonged to the price range of 25 to 50 lakhs. Whereas 12,136 units fell into the category of less than 25 lakhs. Another 18,682 units that also got sold, belonged to the price range of 50 lakh to 1 crores. This reveals that this price range has a fair demand but not as much as that of the 25 to 50 lakhs range.

The interest subsidy announced in September for those taking home loans to purchase MIG homes further attracted the buyers, followed by the Union’s decision in November to increase the carpet area of houses in the affordable segment. Bigger ready-to-move-in apartments came within the reach of those with annual incomes ranging from 6 to 18 lakh. Buyers are thus preferring 2 BHK homes over the expansive ones.

A branded developer in Bengaluru plans to launch homes spread over an area of 9 to 10 million square feet at a price range of 30 to 50 lakhs. Others also wish to walk in the same path thereby, making 2018 a great time for the active buyers with an affordable budget. Since the renowned firms have moved into this segment of mid-income homes, the buyers can rest be assured with the quality of amenities and homes they will receive.

The news must have put all the first time buyers out there in a good mood. To stay updated with more information, contact us at Tranventor Property Management Services Pvt Ltd. Our job is to provide you with end-to-end solutions for meeting your requirements in the sale, purchase or rent of any property.

Why is the Real Estate Market Still Down Irrespective of High Demand?

Despite the large unsold inventory, stable prices of properties and high demand of the buyers, the Real Estate industry continues to be on a downside.

The flexibility of payment, lenient loans, price cuts, no floor rise or zero GST are being offered by the developers for attracting the buyers. But all of these seem to appear vain since there is no significant improvement in the market.

Developers feel that the greatest challenge is to get back the confidence of buyers that will urge them to get active. Nothing can be assumed about the recovery of sales volume for around 6 months or maybe, even a whole year.

In the words of the property analysts, the number of active buyers so far is not adequate for the market to recover and regain its actual position. In the large cities, developers are mostly struggling to get their unsold residential stock cleared while properties within a lower range of price are recording sales.

The Managing Director of a famed realty organization said that the commitments made by the developers have exceeded what they could deliver in actual. This resulted in the piling up of unsold inventory. Besides, the sale has been marked mostly by properties in the affordable housing segment within a range of 40 lakhs. He even feels that this phase of stability in the property prices is the best opportunity for those who seriously want to buy ready-to-move-in properties. The host of incentives offered by the developers is an added benefit that they can avail.

A report published on November 29 by the organization, revealed the decline in sales recorded by the Tier 1 cities with Chennai topping the list. The 12% rate of GST further pushed back the buyers who were used to paying service plus sales tax at the rate of 5.5%. With the buyer being charged the stamp duty at the rate of 6% in Metro cities, the interest of purchasing a property further disappeared.

Besides, the reimbursed ITC (Input Tax Credit) at a meagre rate of not more than 3% has caused the buyer to pay an extra 15% as taxes. Experts also consider the slowdown in the IT sector as one of the significant reasons for the market to remain stagnant in the coming months.

The exit of many investors has been balanced by the activity of serious end-users that seems to be the only ray of hope for the market to recover.

To get more of such relevant information regarding the country’s realty sector, contact Transventor Property Management Services Pvt Ltd. Whether it is the sale, rent or purchase of any property, we are there to make your experience an enriching one.

Real Estate: Your Ultimate Investment Option

In the race with Mutual Funds, Equities, gold, etc., Real Estate beats all of them as a prized asset that you can truly bank on. Why so, well we have discussed that in detail.

Appreciation of Capital

Despite the market slowdown and irregular performance of the realty sector, property tends to remain an ideal class of asset. Other than a strong desire of becoming a homeowner, the purchase of a property can help you in times of emergency. The statistical report shows that the Compounded Annual Growth Rate (CAGR) given by the property is higher than all other classes of assets.

Earn a Fortune in Future

A property in a remote area or suburbs of the city would not cost one much in comparison to the high-end ones with prime locations. But the inevitable development of the area in future will cause the buyer to earn high profits.

Assured Recovery of Losses

Investment in stocks can hardly be relied upon since there are past incidents where the values have drastically fallen from, say 300 to 45 rupees. No loss could be recovered due to the downslide of the concerned company.

But an investment in Real Estate is devoid of such risk despite its ups and downs since these are cyclic. Thus, if you continue with the investment then you shall gain more than just the recovery of your losses. The Return on Investment (ROI) statistics shows property ahead of all other assets with respect to investment over a long time.

Returns are High

In comparison with other assets, the returns on the property are always high. For instance, if the returns on gold are 12% then it will be 16% on residential flats and even more than that on commercial properties.

Least Depreciation during Inflation

Property is the sole asset that hardly becomes little in value with the decreasing value of the currency, which means during the period of inflation.
Tax Saving Benefits

No other class of assets except property can offer you the same number of tax saving benefits. Insurance or mutual fund investment brings only a limited portion of it under tax-saving purpose. Whereas, assets like gold do not provide any significant tax-saving benefit.
Financial Freedom

The presence of Real Estate Investment Trusts (REITs) has led to the financial freedom of those investing in properties.
Appreciation Despite Slowdown

In spite of the stock market being on a high for two years, just a few of the stocks are at a high rate while the others are in an unpleasant state. On the other hand, the Real Estate market has witnessed a continuous appreciation of 5 to 20 % irrespective of the slowdown being faced by it.
Hope, the information has put all of you out there into a good mood. To get more of it, stay in touch with Transventor Property Management Services Pvt Ltd. We offer the most practical solution to any problem you may face while selling, renting or purchasing a property.

Tips to Prepare Yourself for Becoming a Homeowner in 2018

How long have you been thinking of purchasing a home but could not come finally come to a decision? Well, your waits end in 2018 with the property prices lying at the bottom and are expected to surface up as soon as the developers get adapted to the conditions of RERA (Real Estate Regulatory Act.

RERA has already brought an end to the uncertainty regarding the delay of property possession. Besides, the market is going to get rid of those fly-by-night developers who won’t be able to sustain without having registered their projects. As a result, only those properties will be made available to you that are in compliance with RERA thereby, securing your rights.

So, instead of sitting on the fence, make use of the upcoming quarters when the market is going to act as per your choice. But, before coming to a decision you need to get prepared in the following ways:

First and foremost, you have to obtain an assessment of your present financial position that is essential for taking a home loan. An individual with only a credit score above 700, is eligible for a home loan. Your loan application will be quickly approved by the banks if the score lies anywhere between 750 and 900. Thus, you need to get a credit report from Credit Information Bureau India Limited or any such authorized agency by submitting an application on its website.

Credit ratings also get improved through a flawless past record of your loan payments if any. The closing of auto or personal loans is necessary before you apply for a home loan, especially if it is the biggest amount you have ever borrowed as a loan. For the easy management of payments, bring down the number of credit cards used by you and don’t buy a new one. The credit card payment is also taken into account by the agency for preparing the report.

Other than the identity and address proofs, you will have to furnish your PAN card, salary slips and bank statement of the previous 3 months and 6 months respectively. Income tax returns for the last 3 financial years will also be asked for by the bank during your home loan application. Make sure that you have all of these ready at hand and in a perfect state.

The amount of down payment within 10 to 20 % has to be arranged and kept ready while the home loan will finance the rest of the amount. Another thing you need to know is that the chances of negotiating with the seller become high if your home loan is pre-approved.

Hope, this information will help all the buyers out there. For closing a smooth deal, you may contact Transventor Property Management Services Pvt Ltd. We offer end-to-end solutions for the rent, sale or purchase of a property so as to leave a smile on your face.