The Real Estate Market Of Rohini

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After a lot of research Jyoti, 32, and Ramesh Aggarwal, 36, have decided to purchase a two-bedroom, 1,000 sq ft apartment in a society complex in Sector 9, Rohini for Rs 38 lakh. Not only did they compare prices in their research, they also looked at factors that affect general day-to-day living, such as level of congestion, availability of greenery and open spaces, likelihood of water shortages during summers, and travel time to important destinations. Finally, took a decision and bought an apartment in Rohini.

There are many reasons why one would like to purchase a home in Rohini. And one of the main reasons why anyone would feel attracted to purchase a property in Rohini is because of its connectivity with the metro.

After the Metro became operational, prices have risen by 40-60%, according to a property broker of the area.

A property dealer based in Netaji Subhash Place explains the price rise in terms of reduced travel time. He said that till a few years ago, it took one-and-a-half hours to travel from Rohini to central Delhi areas like CP and ITO, so its property was available at a low price. After the coming of metro, the travel time is now only 40-45 minutes, and the commute being far more comfortable than a road journey, Rohinis society apartments now boat of a price of Rs 3,150-4,500 per sq ft. This is at par with prices in areas like Patparganj in East Delhi which are only a 30-minute drive from CP.

Not only metro, of late Rohini has witnessed a lot of commercial development as well, which has led to overall development of north-west Delhi. In fact, entertainment-wise Rohini has given newer options to people residing in the nearby areas.

There are some common factors that have contributed to an increase in prices in Rohini like easy availability of bank loans, high salaries commanded by young professionals, and the massive influx every year of people from other states into Delhi.

Rohini has options for every pocket: If you think you can afford one, go for a society apartment. These kinds of apartment boast of better-quality construction, high-maintenance, comparatively more open areas compared to DDA flats, and of course better security arrangements. The up-market complexes, about a dozen within Rohini, are equipped with lifts and have power backup system.

Such society apartments are mainly located in sectors 7-14 and out of these, sectors 9, 13, 14 and Prashant Vihar are available at a very high price, because of the quality of development and due to proximity to Metro stations (East and West).

Other option is DDA apartments that usually cost less than society apartments. 1 BHK LIG apartment costs around Rs 2,000 per sq ft, and prices of two-bedroom MIG apartments range between Rs 2,350 and Rs 2,900 per sq ft. The construction quality of a DDA apartment is usually inferior as compared to a society apartment, so you may have to spend some amount before you can actually start living in one. DDA flats are located in sectors 2-8, 15-18, and 24.

For people who are looking at low-budget options, they are available in sectors 23, 24, 25 and 28. These sectors are a little far from the Metro line. According to Mr. K.K. Wadhwa of Wadhwa Property, a plot of 32 sq m would cost around Rs 18 lakh in Sector 7; in Sector 28, the same plot-size would cost you just Rs 9-11 lakh in this sector.

A development that is sure to attract people from all over west Delhi to Rohini is Planet Pogo, a theme park, which is being developed in Sector 10. The company that developed Appu Ghar, Unitech Amusement Parks, and Turner International India are partnering this project. It is scheduled to be launched in the last quarter of this year. As far as shopping and entertainment options are concerned, Rohini has M2K Mall in Sector 3, and PVR Complex in Prashant Vihar. There is also a district court at Madhuban Chowk in Rohini.

So, if you are looking to buy or rent a house in west Delhi, you should definitely consider all the options available within Rohini. It undoubtedly has quality housing, good connectivity and all the amenities one expects in a well-developed area.

Mumbai Continues to be the Leader in Real Estate Market

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Mumbai has always highlighted a positive trend in the realty segment. The article discusses about the latest realty trends in two locations, Borivali and Goregaon.

There was a time when the real-estate sector in almost all over India, but cities like New Delhi, Kolkata, Mumbai and Pune witnessed some remarkable growth in terms of residential units in the year 2012. The leading real estate consultants Cushman & Wakefield conducted a study across eight cities, viz. Delhi & NCR, Ahmedabad, Bangalore, Hyderabad, Chennai, Mumbai, Pune and Kolkata. The residential units constructed in these cities displayed a decreasing trend by approximately 16% (162,000 units) last year as compared to that in 2011. Mumbai emerged as an exception, which showed a growth of 72%(22,423 units), while Bangalore experienced a highest decline of around 50% (16,543 units). Capital value in Mumbai continued to rank higher as compared to the national average.

One of the premium localities in central Mumbai, Borivalidisplayed highest capital values across the city and emerged as one of the hottest residential property destination. Not only the residential real estate, the commercial real estate segment also saw some positive trends. According to the market experts, the prices of properties in these areas are no less than 8,000-14,000 per sq. ft.The rates totally depend on the location of the property as well as the specifications of the property. Because of the increased demand of the residential and commercial properties, the prices of properties have already gone up by 25-35%.

The central Mumbai location is experiencing huge demand for housing mostly from those buyers who belong to middle-income groups. Factors like cost-effectiveness, calm atmosphere and good connectivity with other parts of the city make property in Borivali East a lucrative option. In addition, the connectivity of the locality with Mumbai and Thane is an added benefit. Another location of Mumbai, Goregaon, has seen some growth in the demand for residential units, is slowly emerging as one of the ideal places in terms of commercial realty, and has invited a number of corporate giants to establishments their bases.

The locality is strategically located and its proximity to Bandra-Kurla Complex and eastern &western suburbs of Mumbai has madeGoregaonan ideal real estate destination. Goregaon hosts a number of renowned educational institutions, shopping complexes, shopping malls,health-care centers as well as eateries. All these things contribute in the great living experience in Goregaon. The gree localities around Goregaon make it the greenest of all other surrounding suburbs, which are densely population and the dwellers hardly experience any greenery.

According to the market experts, the flats and apartments of area 2,000-3,000 sq. ft. category are available in a price range of Rs. 12,000-18,000 per sq. ft. Though this is costly, but if we compare this price to the prime locality of Mumbai, which is South Mumbai, the apartments are priced at a whopping range of Rs. 30,000-50,000 per sq. ft. Now a day, the properties in South Mumbai are available at no less than Rs 8-9 crores. The boom in the prices has made the buyers reluctant from investing their hard-earned money in South Mumbai. In the coming years, the prices of residential as well as commercial properties of Mumbai will soar and most likely witness the next economic boom cycle, and will enable the builders to launch a few new projects and thereby lead to an obvious hike in the prices.

Author Bio: Rashmi Karan writes on the behalf of 99Acres.com, which is the leading real estate portal providing genuine and accurate information about the current real estate trends regarding purchase and sale of both residential and commercial properties across nation. Such as Property in Kandivali East, Property in Chembur, etc.

Advantages And Disadvantages Of Lease Option Real Estate Investing

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Lease option real estate investing is a creative way to get started in real estate investing. The biggest advantage of this investing method is “control”. It basically gives the investor the right to possess– be in control of– and profit from a property without owning it.

A lease option contract is a combination of two documents. The lease part is where the owner agrees to let you lease their property while you pay them rent for a stated period of time. During the lease period the owner can not raise the rent, rent it to anyone else, or sell the property to anyone else.

The option part represents the right you purchased to buy the property in the future for a specific price. If you decide to exercise your option to buy, the owner has to sell it to you at the negotiated price. The option part of the contract obligates the seller to sell to you during the option period- but it does not obligate you to buy. You are only obligated to make rental payments as agreed during the lease period.

When the lease option contract is written and structured properly, it can provide tremendous benefits and advantages to the investor. If the lease option includes the “right to sub-lease” the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.

Lease option real estate investing, is a flexible, low risk, highly leveraged method of investing that can be implemented with little to no money.

High Leverage

It is highly leveraged because you are able to gain control of a property and profit from it now–even though you don’t own it yet. The fact that you don’t own it also limits your personal responsibility and liability. Only if you decide to purchase the property by exercising your “option to buy” would you take title to the property.

Little to no money

The investor’s cost to implement a lease option agreement with the owner requires little to no money out of pocket money because it is entirely negotiable between investor and owner. There are a variety of ways the option fee can be structured such as an installment plan, balloon payment or other agreeable arrangement between both parties. The option fee can even be as little as $1.00. In order to secure the property for purchase at a later date, tenant-buyers typically pay a non-refundable option fee of approximately 2%-5% of the negotiated purchase to the seller. Depending on how the lease option agreement is written and structured, the investor could possibly use the tenant-buyer’s option fee money to pay any option fee owed to the owner.

Flexible

It is a flexible method of real estate investing because terms of the agreement like payment amounts, payment dates, installments, interest rate, interest only payment, balloon payments, purchase price and other terms are all negotiated between seller and buyer. Responsibilities of both parties are also negotiable. For instance, if the investor doesn’t want to act in the capacity of a landlord, he could specify in the lease option agreement that tenant-buyer will be responsible for all minor maintenance and repairs and the original seller will remain responsible for any major repairs.

Financially Low Risk

It is low risk financially. If the property fails to go up enough in value to make a profit, you have the purchased the right to change your mind and let the “option to buy” expire. Even if your tenant-buyer decides not to buy the property, you have profited by a positive monthly cash flow from the tenant-buyer’s rent payments and upfront non-refundable option fee.

Let’s look at an example of a lease with option to buy structured in a way that the investor profits in 3 separate phases of the investment.

Profit #1 non-refundable option fee

Future sales price negotiated with the current owner is $125,000 with an option fee of 2% of the sales price. Option Fee you owe the owner is $2,500. The future sales price you set for your tenant-buyer is $155,000 and the option fee is 4% of the sales price. Option fee the tenant-buyer owes you is $6,200. You collect $6,200 from tenant-buyer and pay $2,500 to the owner and your profit = $3,700

Profit #2 cash flow from monthly rental payments

The Monthly rental payment you negotiated with the owner is $1,000. You set the monthly payment at $1,250 per month for your tenant-buyer. Each month you collect $1,250 from your tenant-buyer and pay the owner $1,000 each month. Your profit is $250 monthly positive cash flow during the lease period.

Profit #3 is set up when the lease option contract is initially written

The difference in the negotiated future purchase price with the owner and the future purchase price set for your tenant-buyer. Let’s say the property goes up in value to appraise for at least $155,000. Your tenant-buyer decides to exercise their option to buy. You buy the property from the owner at $125,000 and then sell it to your tenant-buyer for $155,000. $155,000 – the $125,000 you pay to the owner = $30,000 profit.

Of course the key to making lease option real estate investing work, is finding motivated sellers and buyers. Finding these motivated sellers and buyers shouldn’t be difficult. The continuing down turn in the real estate market has created a large number of sellers who can’t sell their property and also buyers who can’t get financing to buy. The seller could possibly get a fair offer to be paid in the future by selling their property to a real estate investor on a lease option basis. A potential tenant-buyer could obtain home ownership without having to qualify through traditional home loan guidelines.

One disadvantage of lease option real estate investing involves the tenant or tenant-buyer possibly defaulting on monthly rental payments. This would make it necessary for the investor to come up with money out of pocket to pay the owner and possibly have to proceed with eviction process. However, there are certain provisions and clauses that can be written into the lease option to deter buyers from defaulting on payments.

If the investor fails to do “due diligence” before entering into a lease option agreement, he could end up with a property that is unmarketable. There could be a number of liens on it, issues involving ownership of the property or it might be in foreclosure. By diligently performing research before entering into a lease option agreement, the investor can avoid these mistakes. A few things the investor could do is– perform background and credit checks on both the seller and buyer, search public records in reference to ownership and property status, or do a title search.

Despite the few disadvantages, lease option real estate investing continues to be an excellent way to invest in real estate with little to no money and low financial risks. It also remains to be an excellent way to gain control of a property you don’t own and create positive cash flow and profits on flexible terms.

Bottom line, the secret to success in today’s challenging real estate investing market is to use only the best creative ideas, proven tools and strategies that have been successfully used by other investors to generate cash flow and profit from today’s real estate market. The more you understand and apply now, the more you will profit from today’s financial crisis.

Population Spurs Guwahati Real Estate

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Guwahati, the capital of Assam is the most important destination of Northeast India. It is surrounded by the Seven Sister States- Nagaland, Aruncahal Pradesh, Meghalaya, Mizoram, Tripura, and Manipur. Guwahati is famous for its rich coal reserves, natural gas, oil industry and tea plantations. Being the largest city of Assam, it is the industrial, educational and commercial hub of the state.

Guwahati is located on the bank of the Brahmaputra River and is heralded as a corridor to the entrance of northeastern states of India. It is one of the most rapidly developing cities today as large scale investments in real estate in Guwahati and nearby areas are being made. The primary reason for such growth is the ever-growing population of the city. This considerable increase in population happened because:
Guwahati is the economic centre of the state and so, the most preferred destination for migrants in Assam.
The fast paced development of industrial sector attracted more number of professionals to the city. These employees then generate accommodation needs leading to rise in demand for residential property.
Guwahati is home to some very prominent educational institutions of the country like IIT and other world class colleges. Students from everywhere throng the city while resulting in higher demand for housing spaces.

Knight Frank, a leading global property consultant observes that the immense rise in population has in a way proved beneficial for Guwahati property market. Large numbers of residential units comprising individual houses, apartment buildings, etc. are developing fast in the city. High street retailing is also flourishing with various departmental stores, supermarkets and large format stand-alone stores being established. Organized retail has also been growing with apparel stores and food and beverage chains setting up their flagship stores in the city.

Though Guwahati hasnt seen an IT wave as prevalent in other cities but FMCG, insurance and financial companies have been taking interest in bringing their operations to the city. Many more are scouting for vacant land in the city to settle their presence in the city as central locations have almost reached saturation levels. The peripheral areas of the place are on the path of becoming new hotspots for real estate development. Due to such large-scale growth, hike in rates of property in Guwahati have been recorded from past few years.

The noteworthy developments among the residential projects that have shaped in the city in the residential sector include the following:
Guwahati Metropolitan Development Authority (GMDA) has come up with a Games Village at Sarusajai consisting of 700 residential units.
Another project by Brahmaputra Constructions comprising 150 apartments on RG Baruah Road is another important project.
Various infrastructure development projects are under progress to develop this upcoming region of Assam. The Games Village Township would further generate commercial developments in the area. Some national level retail corporations and international brands are also expected to enter the Guwahati real estate market soon. Moreover, local property developers are building up many residential and commercial projects like Riscon Villas, Southern Retreat, Protech Park, Agrim Residency, Uttarayan Greens, Zenith Heights, The legacy, Royal Circle and many others. In addition to these, Divine Plaza in Ganeshguri, Vishal Megamart at Paltan Bazar, Shopping centre called Hub at Bhangagarh, multiplex named Dona Planet, etc. will open shortly.

Guwahati witness huge migration from around the country, especially from north eastern states. These developments are instrumental in accommodating this population and in supporting the economic growth of the city. Property in Guwahati is all set for a higher boom and comes across as an ideal time for investments in property.