Friday, October 30, 2015

What is Transit Oriented Development?

Transit oriented development: Game changer in real estate:

Transit-oriented development (TOD)

Transit-oriented development is a fairly new model of community development.

Essentially, it involves developing residential and commercial spaces as well as retail, healthcare and entertainment facilities in a manner that puts all of them within easy reach of the inhabitants.

The standard equation that is applied in transit-oriented development is that all developments must be within half a mile of good quality public transportation, or within a walkable distance.

Transit-oriented development brings many benefits with it:

Inhabitants of transit-oriented development areas can reach their places of work easily and with minimal transit, and likewise get back home faster.

This allows for more time spent with the family, which incrementally boosts well-being.

With significantly reduced commuting in transit-oriented developments as opposed to normal urban areas, pollution within the neighbourhood reduces drastically, leading to better health of the inhabitants.

Reduced traveling leads to increased household savings, and therefore better economic well-being.

In fact, people can choose to dispense with maintaining cars and two-wheelers altogether and rely solely on public transportation.

As a combined result of the above, both housing and commercial spaces in transit-oriented developments command a much higher demand than in normal urban areas - and therefore superior investment potential. Click to Read More

Thursday, October 29, 2015

If a builder promises assured returns, ignore the offer

Beware of builders that promise guaranteed returns, especially in commercial property. It’s a false promise:

No such thing as assured returns in realty

Basic things to look at while investing in any avenue are — risk, returns, time horizon, and the exit route.

Though such schemes (guaranteed - assured returns) offer high returns,
but at the same time,
risk is higher,
investment tenor is longer and
exit is also difficult.

Moreover, an exit may mean paying a heavy penalty.

Real estate has always been an integral part of investment portfolios,
but to benefit from it, one needs to be careful.

Given the current market conditions, it is advisable to invest in completed projects, be it commercial or residential.

And if a builder promises assured returns, ignore the offer.

No such thing as assured returns in realty

Related Story:

1) What!? Is Landson Realty's 'Wood County' an Illegal 'Collective Investment Scheme'?

Real Estate Channel 'Magicbricks Now' Launched

Magicbricks Now To Go On Air from November 1, 2015:

Real Estate Channel 'Magicbricks Now' Launched

Media firm Times Network today announced launch of a new real estate and property channel Magicbricks Now, which will go on air from November 1, 2015.

The channel would target viewers in the 25 to 50 years age group, who are interested to buy, sell or rent real estate properties, the company statement said.

The channel would be distributed on DTH and cable platforms which carries Times Network. Read more at:

Marquee channel programmes include The Property Guide, The Home Buyer's Guide, Property Hotline, The Interiors Show, The Vastu Show, Real Estate Tycoons, and The News every hour. Read more at

Related Story:

1) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

Wednesday, October 28, 2015

Evaluate No Pre-EMI till Possession (20-80) or (10-80-10) Payment Scheme

Know the home buying schemes well, before opting for one:

Know No Pre EMI EMI after Possession Offer

In this scheme the property is being bought with the home loan, the EMIs are on account of the buyer.

The buyer's credit history is at stake if for some reasons the project is delayed way beyond scheduled date.

In some scenarios the EMIs will kick in at the scheduled date even though the house or apartment is not ready.

Remember it’s a tripartite agreement between the buyer, bank and the builder. And the buyer is bound to start the EMIs even if the apartment is not delivered by the scheduled date as per the builder-buyer agreement.

This compounds the problem of the buyer due to his additional cash outflow, arising owing to EMIs. He continues to pay the rent for the house where he lives.

The purchased asset that is property in such circumstances cannot be sold (for obvious reasons) and buyer's inability to exit the project creates the financial stress.

Any default due to inability of the buyer to pay EMIs hurts his credit score and loan eligibility in future.

In these schemes buyer must also watch out for the interest being offered to him by the bank.

Is it close to the market rates?

Is it changing as per the RBI interest rates if floating interest rate option is chosen?

One must also scrutinize the loan agreement for the interest rates that will be levied on his home loan after the unit is delivered to the buyer.

Also one must note that the buyer will lose the pre-construction interest benefit if the construction phase has gone beyond three years;

So in-effect the No-EMI scheme until possession can become a trouble in buyer’s financial life if not assessed for risks it carries. Read More

Related Stories:

4) Bramha Sky City Dhanori Pune - Never Before Kind of an Offer

3) Aditya Vilas Javdekar Invites You to Rob a Bank

2) Do not sell homes to those people who can't afford to buy

1) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

Tuesday, October 27, 2015

Is Indian Real Estate 'Too Big to Fail'?

Those expecting an overnight crash any time soon will be disappointed:

 Over 7 lakh unsold homes in eight major cities including Delhi NCR, Mumbai, Bengaluru, Pune, Kolkata, Chennai, Hyderabad and Ahmedabad

There are simply too many vested interests in real estate to allow it to slip into panic-led chaos.

Politicians, real-estate developers, banks, NBFCs– all of them have too much at stake.

Then there are hard-working, salaried employees paying EMIs.

This is an industry which reaches a majority of India’s population.
Like Wall Street in the USA, India’s real estate industry is too big to fail.

At worst, it might see a Lehman-like moment.
A few builders will vanish but, as Wall Street figured out, a few casualties – like a Lehman or an AIG – are acceptable collateral damage in the overall scheme of things.

But the Government will cobble together a bail-out of sorts. Builders will be rescued, homes will be saved.
Read more at - Real estate is dead, long live real estate

Related Stories:

1) Is it safe to book a flat in Pune real estate market?

2) In 2015 - Where to book a flat in Pune real estate market?

3) Buy a New DSK Toyota Car and Get Rs. 2 - 25 Lakh Discount on a DSK Flat!

Sunday, October 25, 2015

Property Buyers' - Wait & Watch Policy - is Stagnating Pune Real Estate Market - Rohit Gera

About 21% of the delayed real estate projects in India are in Maharashtra:

Rohit Gera, vice-president of the Confederation of Real Estate Developers Association of India (Credai) Pune Metro

“This year, we have hardly seen any major real estate project launches on Dasara. The demand is lukewarm. Consumers are waiting for a cut in lending rates which will improve their loan eligibility and get them a better deal. Till that happens, a lot of launched projects too will suffer," Rohit Gera, vice-president of the Confederation of Real Estate Developers Association of India (Credai) Pune Metro, said.

Gera said that timely delivery of properties is affected by long-drawn approvals process.

Labour issues and cash crunch are add ons - Gera added.

- Assocham paints gloomy picture for realty

Related Stories:

1) Delayed Possession of Flat....Stalled Project....What can Pune property buyers do? The Case of Sanklecha Mango Woods, 2 BHK Homes at NIBM, Kondhwa, Pune

2) Unhappy & Stressful Home Life - Reasons Revealed -Pune Builders Protest March Against Corruption - It's all about our own home - our own money - our own servants

Saturday, October 24, 2015

Identify & Avoid Property Scams

3 Red Flags to Help You Spot Property Scams:

Identify & Avoid Property Scams

An unusually attractive offer should make you extra cautious and prompt you to cross-check details. Here are three red flags you should watch out for before putting in your money.

Red Flag 1 : Sounds Too Good to be True -

An inherent characteristic of a scam is that it will promise unreal returns or “exciting” offers. Instead of getting excited about it, become extra careful.

Red Flat 2 : Builder is in a Tearing Hurry -

Is your builder in a hurry to close the deal? A developer or builder who has intentions to cheat will show an urgency to sell the property and will encourage you to make the down payment right away.

Red Flag 3 : No Clarity on Documentation -

In a genuine transaction, you will have to sign a set of documents, including title deeds, agreement of sale and so on to legitimatize the deal. Fraudsters, however, will urge you to go ahead and send them the money without signing any paperwork.

Click to Read More

Related Story:

1) What!? Is Landson Realty's 'Wood County' an Illegal 'Collective Investment Scheme'?

2) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

Friday, October 23, 2015

No Rule to Punish Builders Who Refuse Flats

Housing Discrimination Against Non Vegetarians:

Housing Discrimination

The Brihanmumbai Municipal Corporation (BMC) has thrown its hands up over taking action against builders who are allegedly refusing flats to non-vegetarians.

While the civic body has said it does not have any provision in its rules to do so, the Maharashtra Navnirman Sena (MNS) has demanded that a law be enacted to prevent such acts. Failing to do this, it would take law in its own hands, threatened the party.

On the backdrop of reports of flats being refused to non-vegetarian people by some builders, MNS group leader Sandeep Deshpande had demanded that the BMC should not issue intimation of disapproval (IOD), commencement certificate (CC) and water connection to such developers. An IOD is approval of civil plans, while the CC authorises a developer to undertake the construction. Read more

Related Story:

1) Now Open! Kolte Patil Rice Plate House!! Are you Vegetarian or Non-Vegetarian?

Thursday, October 22, 2015

6 Things Your Builder Can`t Do

Tips for First Time Home Buyers:

Did you know about these 6 things your builder can't do but still does?
1) Charging for the Parking / Open Space
2) Delay in Handing Over the Possession
3) Delay in Completion of the Project
4) The Wide Chasm between the Promised and the Delivered
5) Bounced Refund Cheques
6) Denial of Basic Amenities
Click here to read more

Related Stories:

1) Buying a Flat in Pune, Tips & Precautions in Hindi by Grahak Panchayat:

2) Visit Pune Property Exhibition on 23rd - 25th October 2015

Wednesday, October 21, 2015

Consumer court orders builder to pay residents Rs 1 lakh compensation for completion certificate delay

Consumer Court Cases Against Pune Builders:

The additional district Consumer Disputes Redressal Forum has ordered city-based developer Balaji Constructions to pay a compensation of Rs 1 lakh to a housing society at Rahatani, along with litigation costs, for its delay in providing a completion certificate to flat owners.

Not just that, the forum took it a step further by asking the promoter to raze an illegal construction built by one of the members inside the society, for its 'deliberate' negligence.

In the order passed last week, the forum also directed Balaji Constructions to provide a completion certificate and conveyance deed within six weeks from the date of the order.

In case of failure, the developer must pay Rs 3,000 additionally to the society per month.

Nirmaladevi Heights Co-operative Housing Society's representative, Dinesh Raghunath Rokde, filed a petition in June 2013 against Balaji Constructions from Kalewadi Road in Rahatani. Click Here to Read More

Related Story:

1) Prudentia Towers at Wakad, Pune - Any Questions for Mr. Aditya Javdekar?

Tuesday, October 20, 2015

Builder - Buyer Agreement Not the Final Word

Path Breaking Judgement of National Consumer Disputes Redressal Commission:

National Consumer Disputes Redressal Commission passed order for higher compensation for property buyers in a delayed project - ruling that builder buyer contract is not sacrosanct any more.

Related Story:

Delayed Possession of Flat....Stalled Project....What can Pune property buyers do?
The Case of Sanklecha Mango Woods, 2 BHK Homes at NIBM, Kondhwa, Pune: