An 'affordable' dream come true!

The Union Budget 2017-18 has shown a ray of hope to millions of home aspirants by increasing the allocated amount to 23,000 Cr. towards the affordable housing needs. This revolutionary move will give the necessary boost to the real estate sector and soon affordable housing will be a reality than just a delusion.

The decision to grant Infrastructure status to affordable housing will encourage real estate developers to plan for more budget homes. This budget brings multi fold benefits to real estate developers where they receive tax benefits, subsidies and gain access to the land specially released for affordable housing. Builders and developers will obtain an advantage of faster clearances and funds for expansion plans regarding various projects.

Hon. Finance Minister's announcement of reducing the holding period for Long Term Capital Gains from 3 years to 2 years is an affirmative step which would reflect in increased interest of investors in the Real Estate sector.
Since affordable housing would be on the high priority for financial institutions, the buyers would certainly benefit from easier funding and lower interest rates resulting into more number of home buyers and eventually increased demand for creation of new construction.

This budget brings a welcoming reform which will extend some relief to the real estate industry by providing an elimination of 25 km limit for construction site from Metro Cities and making an allowance for carpet area of 60 sq meters for the income tax exemption. It also tenders 5% corporate tax rebate for construction companies having revenue below Rs. 50 Cr.

We are sure that real sector will attain the much needed thrust through this intelligent budget. It is a welcoming move and will act as a catalyst to meet the intention of Housing to all by 2022.
Hon Finance Minister also announced that NHB (National Housing Bank) will refinance individual loans worth Rs 20,000 Cr in 2017-18. On the front of personal income tax, the existing tax rate for incomes between Rs. 2.5 lakh to 5 lakh has been reduced to 5%, and taxpayers in other categories will also save Rs. 12,500.

Highlights of the budget 2017-18 include; 1 cr. rural houses will be created by the year 2019, Pradhan Mantri Awas Yojana to get Rs 23,000 cr., Instead of Built up area of 30 and 60 sq meters, the carpet area of 30 and 60 sq meters will be applicable for affordable housing. Further to these advantages there are few more like; Indira Awas Yojana will be extended to 600 districts,
total budgetary allocation for the infrastructure sector is Rs. 3,96,135 cr.,
budget allocation for National Highways would be Rs 64,000 cr. and indexation for capital gains has shifted from 01-04-81 to 01-04-2001.

The Hon. Finance Minister announced change in the time period for calculation of speculative rental on unsold stock held by developers for tax purposes, which will now kick in only 1 year after the completion of the project has brought a major relief to housing developers.

All these moves have been greatly appreciated by the real estate sector. The impetus being given to the road infrastructure, manufacturing and affordable housing the government has incorporated all the required elements to develop new cities around our industrial transport corridors.
Smartly crafted budget will allow the new generation to save more and promote personal investment.

With an announcement of an enormous budget plan for the infrastructure development, it will further expand the possibilities for real estate development sector across the country. In all the Union Budget 2017-18 has given some respite to the realty sector encouraging the developers as well the new home buyers!

Smart homes in Pune

What is a smart home?

Smart homes are basically a residential units which are centrally located and have

easy access to all the resources.

Why do people prefer smart homes?

Development of the IT sector, existing and increasing educational and employment

opportunities has led to exceeding number of professionals as well as students

migrate to Pune.


It’s perfect for less number of people - For the ones who aren’t quite happy sharing

their homes with others, this is the best way out. The space would suffice the main

purpose. It’s comfortable and hassle free.

Less expenditure - The rate as well as the rent of such spaces will mostly be in the

right range. So, no affordability issues either.

Resources - Usually, all the resources you need- school, park, medical care and

many more is at a hand’s reach.


Megapolis, Pune:

A number of ongoing and upcoming residential projects in Pune are implementing

the idea of smart homes. Megapolis smart homes in Hinjawadi are attracting many

investors. These homes come with other amenities such as club house, gymnasium,

swimming pool, etc.

IT professionals in Pune, specially, who are necessarily occupied with their work

commitments, have are seen choosing Megapolis as their home. They are assured

with top notch education and co- curricular activities for their kids. For example,

Pawar Public School here provides education, the Mahesh Bhupati

Tennis Academy offers multiple tennis programs at reasonable rates. Apart from

these, other facilities such as shuttle service, shopping arcade, etc. are also made

available for the residents here.

Smart homes I- Sparklet, Smart homes II- Sunway and Smart homes III- Splendor

are the completed projects at Megapolis. Recently, they have announced the pre-
launch of the new range of smart homes: Smart homes IV in Megapolis.

References: https://www.megapolis.co.in/

Affordable housing in India

With the hike in property prices, investing in a desirable one might just seem a

dream to many. This is a commonly observed trend in all of the metropolitan cities

of India. An increasing number of NRIs are seen coming back and buying priced high

properties here.


Unlike them, most of middle class and upper middle class residents here fail to afford

the properties they wish to buy. The market prices do not match the affordability at

times, whereas, some other times, the spaces do not stand up to the price we are

willing to invest. Seems difficult, right? Here’s how you can make affordability and

your dream property meet each other on a common ground. Well, almost.


Target non-metropolitans –

It is rather obvious for professionals to settle for a property investment in a

metropolitan. It is reasonable as well. But, try and think about the benefits of making

a purchase in a city, and not a metropolitan. It doesn’t need to be Mumbai or

Bangalore. Target the big cities around instead. Pune, Nashik, Bhopal, Vadodara,

Coimbatore among a few others have property spaces that are affordable and

spacious.


Know your needs -

People often buy a property by simply following the trend. Think about what you

really expect of a property. Is it that not-so-useful club house, or the locality?

Townships are undoubtedly upright. However, don’t be scared to consider a

property that’s on resale. They can be just good enough. And of course, needless to

say, affordable too.


Plan -

You need to plan it right. Be well informed, do your research. Consider all the

finances- EMIs, interest, insurances, taxes and your other finances. Once you plan

and analyze every financial bucket efficiently, you’ll certainly be a few steps closer

to making the investment.


Out of vicinity -

If you think you just can’t buy a housing elsewhere, and if you are someone who

doesn’t mind driving those few extra miles every day, then choosing one on the

outskirts will also help. Again, do your research before you invest in something that’s

not located centrally.


Build your resources -

It is okay to go with your instincts, but it is important to think and rethink your

decision. Get in touch with the right builders. And to be absolutely sure, always go

for that second opinion.

Keep yourself updated all the time. It’s a long, tedious process. But it’s a lifetime

investment. Do it right.

Real Estate - Growth, Strategy and Performance

Buying homes, selling plots or even renting- there are lot of parameters that need to be taken into account. Let’s shed some light on the realty scene in Pune.

Growth

2014 and 2015 witnessed a number of ups and downs in the real estate market. The demand for investing in properties in 2014 was higher than 2015. More than 200 projects were launched just in 2014. Last year, the demand went comparatively down. However, according to statistics, the property rates have been more or less the same, which is why, the year has nevertheless been rewarding for the developers.

Hinjawadi and Moshi, which happen to be unknown localities are also attracting developers and investors. A lot of investors are also expanding in Lonavala and localities nearby.

Strategy

Compared to the other metropolitan cities of the country, the buyers strongly believe that the property rates are reasonably affordable for the property size in Pune. Most of the property units are medium-sized, which makes it very convenient and practical for the buyers to invest in these units. Most of the developers are flexible when it comes to housing loans, which is also creating customer satisfaction for the investors.

Performance

A lot of underdeveloped localities in Pune are witnessing upcoming projects by reputed builders. Wagholi, Moshi, Pisoli and Hadapsar among few others are recent examples of this development. On the other side, the areas with infrastructural efficiency like Baner, Boat Club Road, and Kothrud among others, have a number of ongoing projects where development of luxurious residential and commercial spaces is witnessed. 

A few US based developers are also keenly taking up luxury home projects in and around Pune.

As of now, investing in properties in Pune seems the right time, majorly because of the affordability. Thanks to the IT parks, even semi-rural and underdeveloped localities of Pune are now major real estate hotspots. 

Appreciation of investment in Hinjawadi

A decade or two ago, no one had thought that Hinjawadi would be a real estate hotspot. It was just another piece of rural land around Pune until the IT companies made it their home. Today, Hinjawadi, also known as Rajiv Gandhi Infotech Park, has made it to the top five IT hubs across the country. It already has its three phases, and is expected to expand to as many as seven phases in years to come.

IT companies and employment opportunities:

Top multinational organizations such as Infosys, KPIT, Accenture, Tech Mahindra Wipro, Satyam and many more are located in Hinjawadi. A huge number of working professionals all across India have been working in companies located here. There is a plethora of professional opportunities in diversified sectors, majorly IT, at companies located in this Tech City.

Development:

The infrastructural development that Hinjawadi witnessed is phenomenal. There are multiple ongoing and upcoming projects, which is leading a lot of young professionals to make investments.

Some of the most established and well reputed developers such as Kumar Properties, ABIL, Paranjape builders, and Kolte Patil have their projects based in Hinjawadi. The connectivity in terms of transport is also convenient, as this area is well connected to Mumbai-Pune express way, Wakad and some other localities of Pune.

Education:

From schooling to excellent higher studies, Hinjawadi has it all. Mercedes Benz International School, Symbiosis International University are among the few top notch educational institutions located here.

Apart from this, Hinjawadi has a number of hotels and entertainment centres, which promise best services to their customers. It’s a land of opportunities, and a right place to be.

A home to Mumbaikars, a home to Punekars - this is a place that has multiple-fold advantages. The booming IT sector, the farming plots that have a countryside feel, promising educational institutions and a cosmopolitan culture, Hinjawadi is worth all of it.

Is real estate investment a viable option?

The term investment refers to the Return on Investment. The traditional investment options like Gold investment, Fixed Deposit are replaced by Shares, Mutual Funds, and investments in Real Estate Market.

Investment Options	Capital	Risk	ROI
Mutual Fund	Low	Moderate	Moderate
Shares	Low	High	High
Real Estate Investment	High	Low	High
Gold Investment	Moderate	Low	Low
Fixed Deposit	Moderate	Low	Moderate

Real Estate is a booming investment option in India with returns of more than 15% pa. With Lowering Interest rates on Home Loans, the high capital requirement is very efficiently managed by various financial institutions. Rather just being a capital, it’s an asset to own.

With the high cost values in the Metros, people tend to move to Tier II & Satellite cities. Gurgaon, Bangalore, Pune are desired locations. When we talk about Pune, what comes in mind is Pleasant Climate, Good Education, MNCs, Manufacturing Giants and Numerous Job opportunities. The city has lot to offer to migrants flowing in from various parts of the Country. This makes the city an investor’s paradise.

As an investment, what all one should look at –

Project/Price/Location – 

With Major Brands, come the Trust, Reliability & Transparency. Explore the best options in an upcoming area promising an elegant lifestyle taking into consideration, the Current Accessibility and Future Government plans for Connectivity.

Place like Gurgaon & Bangalore has witnessed tremendous growth because of their Locations and so is Pune. The best offering of the IT city (Pune) is either in the East or the Western SEZ (Hinjewadi). Let’s see the merits and demerits of both East and West Pune with investment perspectives:-

Eastern Pune	Western SEZ
Kharadi & Magarpatta	Hinjewadi (Rajiv Gandhi Infotech Park)
Proximity to Airport and Nagar Highway	Closely located to Mumbai-Bangalore Highway
Hospitals and Malls	Upcoming Hospitals and Malls
Traffic & connectivity issue – One major Road	Five upcoming Roadway plans to connect all phases of the IT park
Irregular Electricity and water supplies	No issues of electricity and water
Cost of Living is High as the area is developed and ROI is relatively less	Cost of living is Low as IT park is still to witness the major development and one can expect higher ROIs

ROI(Return On Investment) – 

Look for the past 5 years trend. The IT sector for Pune is still in a growing stage, and with lucrative government policies to attract FDIs, the IT sector will see a change over in coming Years and so will the development in the infrastructure for the city.

Returns can be Long term (Appreciation of Asset), Short Term (Rental Value) with Add-ons of Tax benefits.

Plan Your Finances – 

One should have an insight for his income-expenditure statement. This helps to plan a systematic investment. Rental Value and Income Tax rebates are essential factors to be considered for Home Investments.

With RBI reducing Home Loan interest rates, it’s a right time to go for a Home. By cutting down the interest rates, the government is facilitating citizens to Own a Home. 

Considering the foresaid facts, Pune is a viable investment option and Pune East and West both stand out to offer some good ROIs and elegant Lifestyle.

Tips for realty investors

Like gold, investment is real estate is one of the old, traditional forms of investment. These old forms have held their ground for ages because they have given the returns to the investors which are just as good, if not better, as the new mediums like bonds, debentures and mutual funds give. As we see a positive rise in the popularity of shares and mutual funds, but in no way gold and real estate has lost any ground. There are still takers for it, and it will be just the same for the long time to come. It certainly indicates that people's approach towards investment is changing. So if you have zeroed in on real estate as an investment option, then there are certain majors you should employ to safeguard your interest as an investor.

First and foremost, one should study all the details like the place of investment, future plans of development in that locality, developer, the profile of the developer, feedback of the customers, etc. All these points have some bearing on your investment value. Now, let's throw some light on some of the most important points which need to be ironed out in order to secure your investment.

1. Foolproof planning – There is no alternative to planning. It is the first and the most important step to secure your investment. One should know every last detail of the inventory one is investing in. Also, it is important that you give yourself a wide range of options before finalizing the property. Not only will it give you a fair perspective on price and feasibility but it will help you to create a backup plan you can fall back on in case your original plan doesn't work. In realty market, it's always better to have a backup plan.

2. Understand reality market – You are investing a big sum of money in a property, so you can get handsome returns on it in future. Real estate market has certain volatility, hence sometimes you will get overwhelming returns while sometimes you will get just the nominal returns, in the worst case scenario you might end up losing money. So it becomes very important that you understand the factors which affect the performance of your property. Factors like civic development, industrial development, lifestyle development have the potential to give a huge boost to your investment value. So watch out for all the developments in the locality you have invested in.

3. Set your financial goal – You need a big amount to invest in the real estate. Before investing it is advisable to give your financial planning a reality check. Try to ascertain how much you can put aside to repay the home loan, and plan your way ahead accordingly.

4. Be Patient – The English expression – Good things come to those who wait - sums up the nature of the real estate market perfectly. Don't look at the real estate as a short-term investment option. One can only get good returns on the real estate investment if one gives it a long time to shape and soar. The idea of investment is to put your money in the instrument which will keep up with the growing inflation rate. Hence, good investment is the one which not only strides with inflation but also gives a considerable amount of surplus. In this regard, a right real estate investment will bring a high return.

5. Monitor your investments periodically – Whichever the medium of investment it may be, it is important that you monitor it time to time. Keep yourself updated about all the happenings in the world of real estate with the help of websites, blogs by consulting experts. With time the trends and dynamics change, being in tune with the changing time will help you reap maximum advantage of your investment.