Home buying trends, this Akshay Tritiya
Apr 28, 2014
Source : The Times of India


BANGALORE: Property  is invariably the single-most rewarding investment many people make in their lifetime. This Akshay Tritiya, make the most of the auspicious time to own your dream home. It certainly pays to stay invested in the real estate market. It cannot be disputed that property is an interesting investment commodity, which yields both, the rental income and capital gains. These days, it is not uncommon to find investors owning more than two homes. It is for this reason that an increasing number of people are investing in more than one property to create wealth.

Whether you want to diversify your investments, or are looking at a rental income, buying a second home is a good proposition. The second home also serves as a good source of income after retirement.

“When we set out to buy our dream home, it was undertaken after much deliberation and spade work,” says IT professional Sameer Mehra. “We looked at factors, such as proximity to my workplace, access to the key infrastructure projects and quality of construction,” informs Mehra. Often, location is a key factor that determines where you want to buy your property. Whether this is your first home or second, you will want to ensure that the investment yields good returns in the long-term. Here are the three most important factors that will make your investment reap rich dividends in the longterm:

Location: Location is a key factor. The location is usually chosen based on proximity to the workplace, children’s school and social infra-structure, such as malls, hospitals and other amenities. These parameters will however differ, when investing in a second home.

When investing in a second home, the search for the property should be handled in a completely different way, from the process to purchase a residence to live in. When buying a second home, you should view the real estate asset as an income-generating commodity rather than a home for yourself. This is why the entire purchase process differs.

For example, if you expect monthly returns, the location should be suitable so that prospective tenants can be found. Ideally, the second home need not be in the same location as the first. After evaluating the pros and cons of the location of your first home, locate areas that are coming under the new expansion plans for the city. Usually, investors prefer the peripheral areas of the city when they are looking at investing for the second time.

Infrastructure: Keep yourself updated with the latest city development plans through the media or by visiting the website of the city municipal corporation. Study the map of the city carefully and look for connectivity and accessibility. Mega infrastructure projects, such as international airports, metro rail projects, Bus Rapid Transit Systems, monorail, Outer Ring Road and the Peripheral Ring Road, are some of the major infrastructure projects to look out for. Along with this, keep track of the development plans for Special Economic Zones and satellite towns. “Many villages are now getting added on to the city development plans and are coming under the jurisdiction of urban development, opening up large land parcels for the realty development,” shares Praneetha Ranade, a homemaker, who is looking at buying a second home in the city.

Financial goals: A house is a commendable asset. This is due to the fact that no other investment option assures such healthy returns. Hence, investing in real estate is sure to keep your investment portfolio flying high. According to experts in the field and realtors, the age group of those investing in a home or even a second home, is now down to a surprising 26-30 age bracket. This is due to the higher pay scales, both partners earning six-digit pay cheques and this money being pooled in to be invested for greater returns. “Obtaining a home loan and getting tax deduction is a boon for many of us, coming under the higher income tax bracket,” states Amith Trivedi, an investment banker.

“When you crunch the numbers between initial investment in the form of down payment, EMIs and current market valuation of the home you live in, you will discover that this was the most profitable investment you made,” explains Trivedi. In the case of a second home, after evaluating your credit-worthiness, you can approach the same bank from where you took your first home loan. Offer the existing property as security. The EMIs can be calculated after assessing the rental returns you are likely to expect in that area. Let your tenants help pay off your loans. Keep your money parked in real estate while keeping a close watch on these trends to watch your money grow.

Latest Realty News

It ’s time to plan for your home
Apr 19, 2014
BANGALORE: The month of April signifies a new beginning. It is the start of a new financial year and it is the month when many celebrate their New Year. A New Year signifies a fresh start. It is that time of the year when one is more optimistic, and open to new possibilities, new strategies and new aspirations.
AIFS a safe bet for realty investment, with few takers
Apr 19, 2014
BANGALORE: Though market regulator SEBI, has allowed Alternative Investment Funds (AIF) to set up shop in the country under a newly formulated route, which allows pooling of funds for investments in areas like real estate , private equity and hedge funds, the realty sector is still looking curiously at SEBI due to lack of clarity, post a few rejected applications, its ticket size and the overall funding environment in the sector. Is it the developers’ failure to decode the funding enigma with AI
Experts highlight importance of intellectual property rights
Apr 12, 2014
MYSORE: Protecting intellectual property right is very important. Seven intellectual properties - patent, trademark, design, trade name, trade secret, geographical recognition and copyright - have been identified, and it is important to get patents for research work and methodology, said K S Rangappa, vice-chancellor of University of Mysore.
As builders fund parties, homes may be delayed
Apr 12, 2014
BANGALORE: Real estate consultants caution that the ongoing polls could cause project delays as election financing and delayed approval processes are coming in the way of construction activities.
Realty market poised to attract investments
Apr 11, 2014
BANGALORE: As the country heads towards the general elections with policy uncertainties expected to get resolved once a new government assumes office, it seems that the Indian real estate sector is yet again high on the wish-list of the investors, both, domestic and international. If the investments and the policy announcements since the second half of 2013 are any indication, there has been a clear indication that the phase of over-cautious market sentiments is getting over. Furthermore, there
NHB ’s move to boost funding for home loans
Apr 11, 2014
BANGALORE: There is some good news for prospective homebuyers. The National Housing Bank (NHB) is focusing on bridging the demand-supply gap. Recently, the NHB decided to use a significant portion of its tax-free bonds’ proceeds to shore up long-term fixed-rate mortgage loans, especially for the low income and middle income housing in urban areas and suburbs.
Retail hubs in emerging areas of Bangalore
Apr 11, 2014
BANGALORE: With availability of land and prices at a premium in the city center, growth is shifting towards the peripheries, where connectivity has led to the opening up of localities. With commercial and industrial realty development taking place in the Outer Ring Road (ORR) corridor and beyond, rapid residential expansion has followed. This has led to the emergence of retail in these developing areas.
Godrej Properties– M S Ramaiah Group to build 100-acre township in Bangalore
Apr 09, 2014
BANGALORE: Mumbai-based Godrej Properties has partnered family members from the M S Ramaiah Group to develop a 100-acre township in North Bangalore, sources privy to the development said.
Should you make 20% down payment for your home
Apr 05, 2014
BANGALORE: Pragnya and Atul Abhayankar are couple based in Mumbai. Having reached middle management positions in their respective corporate careers and lived on rent for five years, they have managed to save enough to buy their first home. But even after having done extensive homework on the property and the home loans that they are eligible for, they are still unable to arrive at a decision.They are unsure about whether or not to put down 20 per cent of the total value of the property as down p
Commercial growth spurs demand for residential options in Bangalore
Apr 05, 2014
BANGALORE: With an uptake in commercial development in the north, several micro-markets are opening up for residential real estate development. Localities close to the NH7 have benefitted from the upgraded 22 km highway, with seamless link to different parts of the city via the Outer Ring Road (ORR). The north is witnessing several standalone housing projects as well as integrated developments offering residents a self-sufficient neighbourhood.

Latest Realty News Of State

Realty Talk's