|
The landscape of the investment world is changing, and many urban citizens are investing in farmlands. This trend is gaining momentum, and there are specific reasons for it. Owning farmland is an advantage over any traditional real-estate investment because agriculture is a tax-free source of income, which can be an alternate source of income for urban dwellers, i.e., passive income. It's an opportunity to connect with nature and improve the overall ecosystem; a weekend getaway to relieve stress; appreciating asset value, i.e., a higher "Return on Investment". Therefore, it is a long-term investment. Also, various state governments in India have now reduced restrictions on non-agricultural people owning agricultural land, opening up the market for new investors.  The Inception of Managed FarmlandsWhile investing in farmland is beneficial, there are also challenges to owning and managing farmland for the urban population. The most difficult challenge is identifying the right size of land in an ideal location while staying within your budget. Later on, soil quality, water resources, legalities, labour, power, farming operations, and finding a nearby market to sell your produce will be other challenges to face. Managing any farmland requires a lot of attention and knowledge, which an average urban dweller who works and lives in any metropolitan city might not have. To fill in this gap and make the dreams of urban farming enthusiasts a reality, the concept of "Managed Farmlands" has come into existence. What are Managed Farmlands?Managed Farmlands are the farmlands owned by a person or an establishment but taken care of by a professional agency. Managed farmlands are a profitable investment because they are based on rising land values and crop harvests. At first, a professional farm management company acquires well-curated farmland in an ideal location, with a focus on water bodies. Later, the basic infrastructure is put in place, and the large farmland is divided into smaller farms of different sizes. What are the Benefits of Owning a Managed Farmland?
What are the Key Points to Keep in Mind And the Legality Involved Before Investing in Farmlands?It is safe to say that investing in agricultural farmland in India is a good way to earn. Farmland has proved to be a good long term investment that pays off in the far future. It also has a high return of investment and is one of the assets that changes the least because of inflation. The quality of the land also affects how much farmland is worth. Thanks to advances in technology, it is now possible to keep the quality of the land and the fertility of the soil, which will keep farm values going up for the foreseeable future. Now obviously Managed Farmland has several benefits, but there are things you need to keep in mind before investing. Here are some of the pointers that you need to look out for -
Why Managed Farmlands are a Better Investment Prospect?A managed farmland is a long-term system in which people can invest in a farm plot and then sit back and watch their assets grow without having to manage it all by themselves. Professional farm management companies are in charge of taking care of people’s farms and the crops they grow. So, the yield is sold and the money from the sale is split between the owner of the land and the farm management firm. Mixed Farming, coffee, tea plantation, wood plantation are some of the main types of assets that managed farmland have. Investments grow without having to take care of the land themselves. There is no doubt that the value of the land will keep rising up. When a person invests in farms, not only does the value of their land keep increasing but also the area has a cover of plants that keeps growing back. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
0 Comments
Big-ticket luxury real estate deals are rising in India, especially over the years 2020 to 2022. Several Billionaires and Millionaires, among other ultra-high-net-worth individuals and high-net-worth individuals, have been investing in prime real estate throughout the country. These purchases often make headlines because the properties are extravagant and cost crores of rupees. So, in this article, we will explore the real estate purchases of Billionaires and Millionaires in 2021-2022.  Big-ticket Purchases by Billionaires and Millionaires in 2021-2022Nandan M NilekaniNandan M Nilekani, the co-founder and chairman of Infosys, established the Nilekani family trust. According to the reports, the NRJN Family Trust has bought a property in the Koramangala area for Rs. 59 crore. The property is located on the 3rd Block of Koramangala Extension and has a total built-up area of 4,200 sq. ft. The sale deed showed that the plot area is around 9,600 sq. ft. Entrust Family Office Legal and Trusteeship Services Pvt Ltd represented the NRJN Family Trust. The deal was registered on September 26, 2022, and Nilekani and Rajmohan Krishnan are the authorised signatories on the sale deed. In April 2022, the NRJN Family Trust bought a property for Rs. 58 crore in the same area. The property is 9,600 sq. ft. in size and has a built-up area of 3,082 sq. ft. Radhakishan DamaniRadhakishan Damani, one of India's richest billionaires, owns the second costliest property in South Mumbai. In one of the biggest real estate deals in 2021, he purchased a 5,752 square metre unit for a mind-boggling Rs. 1,001 crore! Damani quickly moved up in the billionaire rankings, thanks to the surge in DMart share prices throughout the lockdown. He was also the 8th richest billionaire on the 2021 Hurun Rich List, with an estimated net worth of $14.5 billion or roughly Rs. 1 lakh crore! Damani already owns a luxurious home in South Mumbai's Altamount Road. This property was jointly owned by Varsha Mehta, Saurabh Mehta, and Jayesh Shah previously. Damani paid a whopping Rs. 30 crore in stamp duty alone for his purchase on March 31, 2021. Gopal SrinivasanGopal Srinivasan, Chairman and Managing Director (MD) of TVS Capital Fund, bought a luxury residential property in Bengaluru worth Rs. 15 crore. The property is located at Rest House Crescent Road and covers a total area of 6,336 square feet (sq. ft.) with 2,000 sq. ft. of built-up area. According to the deed document, it also includes a dwelling house, outhouses, and a garage. Kaveri Warriar, Vijay Warriar, and Sudha Thimmaiah are the sellers. The sale document mentions that the transaction happened in November, and the buyer paid Rs. 73 lakh in stamp duty. Anil GuptaAnil Gupta, promoter of KEI Industries Ltd, a housing wire and cable manufacturer, has bought a 2,000-square-yard property in Delhi's posh Shanti Niketan area for Rs. 140 crore. The sale deed was executed on October 8, 2021, and the buyer paid a stamp duty of Rs. 8.40 crore. KEI Industries Ltd was founded in 1968 as a partnership firm. In 1992, it was converted into a public limited company and listed on the stock exchanges in 1995. The company manufactures various types of cables, house wires, and stainless steel at its manufacturing facilities in Chopanki, Bhiwadi, Pathredi, and Silvassa. Sukumar SrinivasSukumar Srinivas, the owner of Shankara Building Products Ltd, bought two properties in Bengaluru's posh Koramangala area for Rs. 44.60 crore. Srinivas sold over 10 lakh company shares for Rs. 75 crore in an open market transaction on March 21, 2022. According to NSE block deal data, he sold 10 lakh shares at an average price of Rs. 755 per share. This brought the total deal value to Rs. 75.50 crore. On 4th May 2022, the first property worth Rs. 22.30 crore was registered. The plot measures 5,400 sq. ft. and has a built-up area of 1,800 sq. ft. According to the sale deed, he paid a stamp duty of Rs. 1.24 crore on the property. His wife, Parwathy Srikanth Mirlay, bought the second property. The total area is 5,400 sq. ft., with a built-up area of 2,172 sq. ft. A stamp duty of Rs. 1.24 crore was paid for the deal. On May 4, the property was registered. Deals like these are just the tip of the iceberg. Several other transactions are making headlines in the Indian real estate market, particularly among Indian billionaires and millionaires! Cheers to more growth in the industry ahead! About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
The interior design landscape is constantly changing as homeowners and designers look for new ways to make their living spaces more functional, comfortable, and visually appealing. Several key trends have shaped how we think about interior design and how we decorate our homes in recent years. So, in this article, we will discuss how property interiors can impact a property's value and some of the popular and affordable property interior styles of 2023.  How Property Interiors Affect a Property's ValueWhen it comes to the interior of a property, several key factors can affect its value. These include: Condition The overall condition of a property's interior can significantly impact its value. A well-maintained and clean interior is more likely to be perceived as valuable, while a poorly maintained or dirty interior can decrease the property's perceived value. Design The interior design and layout of a property can also affect its value. A well-designed and functional interior can make the property more attractive to potential buyers, while an outdated or poorly designed interior can decrease its perceived value. Amenities Certain amenities and features can significantly increase the value of a property. For example, a property with a brand-new kitchen and bathroom may be considered more valuable than a property with outdated ones. Lighting and colours Proper lighting and colours also play a great role in increasing the value of a property. A well-lit room can make a property feel more open and spacious, while the use of warm colours can make it feel more inviting. Staging Staging a property, which is the process of arranging furniture and decor to make the space look more appealing to potential buyers, can also increase a property's perceived value. Trending Property Interiors for 2023In India, we have a rich heritage of design and architecture influenced by various cultures and traditions over the centuries. Today, multiple property interior design styles are popular in India, each with its own unique characteristics and appeal. Some of them are listed below: Minimalism Minimalism Minimalism is a style that emphases simplicity and functionality. The focus is on clean lines, neutral colours, and minimal clutter. This style is perfect for those who want to create a sense of space and tranquillity in their home. Minimalism is becoming increasingly popular in urban areas, where space is often at a premium. Smart Home Technology Smart Home Technology Smart home technology involves incorporating technology to make a property more automated, convenient, and energy-efficient. This can include things like smart thermostats, smart lighting, and smart appliances, as well as home automation systems that allows you to control multiple devices with a single app or voice command. This technology can also be integrated into furniture and other design elements to create a seamless and cohesive look. The goal of smart home technology in property interiors is to make the home more comfortable, functional, and sustainable while also making it easier to control and monitor. Using Natural Elements in Property Interiors Using Natural Elements in Property InteriorsIncorporating natural elements into the home is another property interior trend that has been gaining popularity in recent years. This includes things like wood, stone, and plants, which can add warmth and texture to a space. This trend aims to create a sense of calm, serenity, and connection with nature, which can improve the resident’s overall aesthetic, functionality and well-being. Sustainability SustainabilityIn addition to these trends, there has also been a growing focus on sustainability in property interiors. This includes using eco-friendly materials, incorporating energy-efficient features, and designing spaces that are easy to maintain. This trend is driven by the need to reduce our environmental impact and create healthy living spaces for both people and the planet. Wrapping Up As technology, sustainability, and minimalism continue to shape the property interior landscape, homeowners need to stay informed about the latest property interior trends and innovations in order to create living spaces that are both beautiful and functional and that reflect their personal style and values. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
The Indian real estate sector is at an exciting down. After surviving the COVID-19 storm, it faced new challenges in 2022. Rising input costs, the current geopolitical situation, and rising interest rates are all issues that the sector had to face. Besides, the IMF forecasted that India's economic growth would slow to 6.8% in 2022, from 7.4% in July to 8.2% in January. Following a record-breaking increase in property prices in 2021 and 2022, as well as a rise in mortgage interest rates to their highest level in 20 years, some factors may influence home buyers in 2023.  1. New TechnologiesThe luxury market was the main driver of real estate growth in 2022, which is expected to continue in 2023. There will be a rise in demand for larger, luxury houses because of the growing popularity of WFH and hybrid working models. Despite rising home prices, there is still a strong demand for homeownership. Younger and first-time homebuyers will dominate the real estate market. Commercial real estate is also showing signs of expansion. By 2023, the organised retail real estate stock is expected to grow by 28% to 82 million square feet. Global headwinds have inspired NRIs to invest more in Indian real estate. This has become a trend because the Indian rupee has depreciated, and the economy is doing well. Residential real estate investing has increased due to urbanisation and rising household income. India is one of the top ten fastest-rising housing markets in the world. 2. Government PoliciesGovernment policies can also have a great impact on the property market. For example, if a government initiative increases the availability of affordable mortgage options, it can make it easier for people to buy homes and could lead to increased demand for properties. Whereas, if the government announces policies like raising taxes on property purchases, it will negatively affect people's purchase decisions to buy homes which could lead to a slowdown in the market. It's very important to monitor any change in the policies that may affect the industry in the coming year. Understanding how the government influences the market can help you make better decisions about buying a home. 3. Demographic TrendsLet’s take an example, if a large number of young professionals move into a new city, they are more likely to look for a home in the surroundings. However, if they plan to leave that city, the market demand for housing in that particular city will slow down. This way observing the demographic trends around a person can help him in his purchase decision of buying a home. In 2023, monitoring demographic trends in your local area and beyond will become important as understanding who is moving in and out of a neighborhood can provide insight into the potential direction of the property market. 4. Sustainability QuotientClimate change is having a great impact on real estate investment. Real estate owners and investors are putting increasing pressure on the environmental, social, and governance (ESG) investing disclosure. In the post-pandemic times, homebuyers were more conscious of their carbon footprint and the environment and sought homes that reflect this attitude. Most homebuyers are willing to pay a premium for a green home. Green homes that balance nature living will be a trendsetter in 2023. Along with health benefits, these homes improve quality of life, have lower operating costs of maintenance, and have a higher resale value. Given the many benefits that sustainable buildings offer, real estate investing in this sector will continue to rise in 2023 and beyond 5. Future Growth PotentialWhen evaluating future growth potential, a homebuyer considers the likelihood that the value of a property will increase over time. This can be influenced by factors like:
However, along with these factors we have other factors such as changes in the market conditions or local economy, which can have an impact on the property value. According to a few developers, it is foreseen that the prices of properties will increase this year, but the factors we have read through above can still bring a significant rise in demand for good properties keeping aside the price range. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
With so many emerging ways of investing options, the real-estate sector has never been more lucrative. The new investment opportunities provided by Real-estate Investment Trusts (REITs) and Fractional Ownership (FO) in commercial properties have made it possible for smaller investors to experience high returns on commercial grade A properties that were previously out of reach. In this article, we discuss fractional property ownership and REITs as two such alternatives. Through this, readers will learn what each option is and their pros and cons.  What is Fractional Property Ownership?In its most literal sense, fractional property ownership refers to a stake in any asset. Just like owning a percentage of a company's equity shares makes you a part-owner, fractional ownership in real estate lets you invest in shares of real estate properties, where you own the share of the property based on the amount you have invested. What is a Real Estate Investment Trust?REITs are a great way to diversify any investment portfolio. These firms offer higher returns to investors by owning and managing large real estate projects that generate income from rental or development activities. Besides, REITs allow mutual funds to distribute profits to their shareholders; under taxation rules, 90% of all taxable gains must be returned in accordance with investor’s ROI expectations. Fractional Property Ownership vs REITs: Pros and ConsTo fully consider the pros and cons of fractional ownership and REITs, it's best to compare the two on their major offering points. 1. Property Type The fractional investment model allows investors to purchase both existing and under-construction properties. According to REIT operational rules, at least 80% of a REIT's investment portfolio should be invested in income-generating properties. This means investors need to purchase existing assets. 2. Capital Requirement The first thing to consider is your investment capacity or capital requirement. Fractional ownership requires a minimum investment of between 10 to 25 lakhs. However, the figure may differ depending on the property type and value. The initial capital to be invested in REITs depends on your ability. You can make even smaller investments on REITs. 2. Lock-in Period Fractional property ownership doesn't have a defined lock-in period, meaning that investors can sell their shares anytime they wish. Investors are free to sell their stake in the property at any time. However, some work may be required to determine the valuation of the investor's stake. Publicly traded REITs don't have a defined lock-in period either. This gives a REIT investment a fair amount of liquidity. However, investors may be constrained by changes in the market value of their asset and can only profit if the shares are sold at a price higher than what was paid. Lock in period for sponsors and sponsor group members of REIT have a lock in period of minimum three years. 3. Hidden Charges Regulations mandate that REITs must distribute at least 90% of the net distributable cash flows to their investors to avoid scams. With fractional property, there is a complete distribution of the net distributable cash flows (post taxes, etc.) This is because the fractional company doesn't impose any hidden charges. However, it charges a small fee for its property management services. 4. Transferability Investors in a fractional property ownership model are free to transfer their fractional ownership stake. REIT investors don't directly own property. Thus, they cannot transfer property ownership. However, they may sell their shares at any time. 5. Diversification Investors can control the diversification process with the fractional investment option. They have complete control over which properties and asset classes they invest in. REIT investors achieve diversification through share purchases. Since REIT portfolios are diversified by the real estate market and real estate sector, investors are not actively involved in portfolio construction. 7. Valuation In a fractional property ownership investment, the property is valued at regular intervals so that investors know the value of their investment. This is especially helpful when unit holders need to sell their holdings. REITs require property valuations at least twice per year. Also, the stock price of publicly traded REITs fluctuates constantly and can be found by looking up the ticker symbol for the REIT. 8. Volatility In a fractional ownership model, the property is valued on a monthly or quarterly basis. Therefore, values tend to be less volatile. During periods of economic distress, the share price of publicly traded REITs can experience significant fluctuations even if there are no substantial changes in the fundamentals of the underlying properties. 9. Time Horizon It's very important to understand the time horizon for the investment. Neither investment option has a lock-in period; however, the time horizon should be longer to earn decent returns. You may not reap the full benefits if you exit a REIT investment in the short term. Similarly, it takes some time for the returns on a commercial fractional ownership property to stabilise. Which Is The Better Investment?With so many differences between the two real estate investment options, it's normal to wonder which is the better investment. The truth is neither is objectively better than the other. They are both capable of producing healthy returns. However, each commercial real estate investor has unique preferences, risk tolerance, and time horizon. Therefore, one of the two alternatives may be a better fit for a person's needs. Also, each investor must conduct due diligence and select the best option suited to their specific situation. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
In 2022, the Indian currency depreciated by 5.2% against the US dollar. Due to the Rupee depreciation, rising international interest rates, and the geopolitical situation, the NRI investment plans have begun to increase as the Indian real estate market seems more affordable to the foreign investors. The breakdown of the currency value in a floating exchange system in par with the other countries is known as Rupee Depreciation. Any variations in a country's currency value can impact its real estate market. It may also influence the costs associated with the real estate industry, such as raw materials, human resources, transportation charges, equipment costs, and so on. So, let's take a quick look at how the rupee depreciation can offer several benefits to NRI investment plans in real estate.  Improved AffordabilitySince the value of the rupee has depreciated against foreign currencies, it has become more affordable for NRIs to buy a property in India. This can especially be appealing to the NRIs living in countries with stronger currencies, such as the US, Canada, or Australia. For example, if an NRI is earning in US dollars and wants to buy a property worth INR 1 crore (about USD 134,000) in India, a 5% depreciation in the value of the rupee would make the property cheaper by about INR 5 lakh (about USD 6,700) thus, increasing their purchasing power. According to Niranjan Hiranandani, vice chairman of NAREDCO, the current global currency situation allows NRIs to purchase more square feet of Indian real estate. Higher rental incomeA depreciation in the value of the rupee can help NRI invest in a property in India with much ease. It can also help them work on their already existing property and increase the occupancy value. They can opt to purchase a luxury property as well, which inturn will give them a higher income. However, investing in a ready-to-move-in property is more profitable than an under-construction property to generate high rental income. But, cautious steps are required for such NRI investment plans as there are high chances of suffering losses if invested in the wrong property without research, as the market may change once the rupee stabilises. NRI Property Investment PlanGetting loans for real estate deals have become an expensive task. But when the value of rupee goes down, it gives NRIs a chance to invest in real estate in India. As a result, the number of requests for real estate from other countries has gone up. People often think that when the value of rupee depreciates, it would be good for a NRI to buy property in India. But this is only possible when you are at the final stage of your house purchase and are waiting for the money to be transferred. A NRI may have to wait at least two to three months to complete all the procedures to buy a property. During that time, there are chances that the rupee’s value may become more stable which can affect your property investment plan you made due to the depreciation in the value of the Indian currency. Capital AppreciationA depreciation in the value of the rupee can lead to capital appreciation in the long term. For example, if an NRI buys a property in India when the value of the rupee falls, he has made a capital investment. So sometime in the future when the value of the rupee appreciates he will be capable of receiving higher returns of his investment. Diversification of PortfolioRupee depreciation can also provide NRIs with the opportunity to diversify their investment portfolio. By investing in Indian real estate, NRIs can reduce their risk and provide a hedge against fluctuations in other investments, such as stocks or currencies. This can help investors protect their NRI investment plans and ensure their investments are well-balanced. In addition, when the value of the rupee is low, the cost of sending money to India is also lower, making it easier for NRIs to fund their real estate purchases. Debt Mutual fundsNRIs put a lot of their money into debt mutual funds because they have a higher chance of making money and are better for their taxes. Most of the debt mutual funds’ money is invested in property. On the other hand, the rise in interest rates has hurt the duration approach. When interest rates go up, it’s likely that funds with very short maturity span and debt funds that use the accrual method will be comparatively successful. You should be aware that your investment plans in debt mutual funds that hold medium to long term measurement could become more volatile. But NRIs who plan to sell their house and convert it to USD in the near future might be able to get back some of the value of their debt mutual funds that they lost during Rupee Depreciation. Other FactorsIt's important to note that rupee depreciation is just one factor that can affect NRI investment plans. Other factors, such as economic growth, infrastructure development, and government policies, also play a major role in the performance of the real estate market in India. NRIs should consider these factors and do their own research before making any real estate investments in India. It's also important to note that rupee depreciation can negatively impact the real estate market. For example, it can lead to higher inflation, which can make it more expensive for NRIs to invest in real estate. Or it can lead to a slowdown in economic growth, which can impact the demand for properties and the value of investments. Final WordsDespite these potential negative impacts, the overall benefits of rupee depreciation for NRIs investing in real estate in India are significant. NRIs can take advantage of increased purchasing power, attractive returns, more competitive pricing, and the opportunity to diversify their portfolio. By carefully considering these factors, it's possible to create informed NRI investment plans and earn significant profits. About PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) if you need guidance on how to invest in the right property in Bangalore.
At PropertyAngel, we know how a good tenant helps a property management company by being reliable, responsible, and easy to work with. Therefore, on our 8th anniversary, we launched "PropStar" - India's first-ever tenant reward program. PropStar rewards tenants with points for meeting a specific goal or "action". After you reach a certain PropScore (the total number of points earned), your credibility as a tenant improves, which increases your levels to Bronze, Silver, Gold, Platinum, and Diamond. You get exciting cashback and rewards when you reach one of these levels.  A Quick Overview of PropertyAngelPropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. Contact us at (91-80-47095974) or (91-7406484455) to know more about our services. So, without further ado, let's look at how PropStar can help tenants. Benefits of the PropStar ProgramPropStar aims to reward tenants for taking positive actions. The more positive actions you take, the more points you make. Let's take a look at the importance of these actions and how PropStar benefits tenants for doing so. Paying Rent Before TimePaying rent before time can give you peace of mind because you no longer have to worry about the due date or rush to arrange the money at the last minute. Thus, PropStar rewards you with 500 points to pay rent before time. Paying Rent On TimePaying rent on time can help you manage your finances by budgeting for other expenses. Also, it allows you to save money on late fees and improve your credit score. Thus, PropStar rewards you with 200 points for paying rent on time. Referring Other Tenants Today, it's challenging to find a responsible, reliable tenant who meets all the requirements. Thus, PropStar rewards you with 500 points upon conversion if you refer other good tenants to PropertyAngel. Keeping the Property Well Maintained Taking care of the property helps preserve its value and prevent it from deteriorating over time. Thus, Propstar rewards you with 1000 points to keep your property well maintained. Completing 6-Month Inspection on TimeCompleting the 6-month inspection on time protects the landlord's investment and ensures you're committed to maintaining the property well. Thus, PropStar rewards you with 1000 points for completing an on-time inspection. Other ActionsThe PropStar program also rewards points for other actions like contract renewal, finding a replacement when vacating, vacating and choosing another PropertyAngel property, etc. Final WordsPropertyAngel believes that PropStar will help tenants save money, have more fun, and feel more satisfied with their living experience. Comment below and let us know what you think of this program.
Buying a home is not easy, especially in urban areas. A person spends all his savings on down payments and then takes out a hefty loan whose EMI he has to pay for the rest of his life if income doesn't increase as predicted. And what if the under construction property gets stalled or delayed? Nothing is more heartbreaking than this. So, in this blog, we will discuss how to deal with delayed housing projects and how to avoid them in the first place. Housing Project Delayed: What Do You Do?Usually, it's easier on the pocket for homebuyers to buy an under construction property and pay a pre-EMI. The Pre-EMI on a home loan is the interest paid to the lender while the property is still under construction. It doesn't adjust the loan that you've taken. However, when your project gets stalled, the first thing that strikes your mind is, what about the EMIs?. So, here are a few things a homebuyer can do in this scenario.  Form an AssociationAs a buyer, the first thing you should do is to visit the under construction building and check who else is there. That's how you meet up with other homebuyers, communicate with them, and form an association to work on this issue. Search For Legal RecourseThe second step is to hire a law firm or lawyer with experience in property matters. Also, the lawyer should have both civil and criminal legal counsel because there can be a criminal case if your builder has misutilized the funds. Get an Injunction Ordering the Bank Not to Deduct Pre-EMIsThe Karnataka High Court has recognized that certain banks or financial institutions wrongfully disburse very large sums of money to construction projects, due to which these under construction buildings stop or don't move forward. As a result, banks cannot pressurize or take adverse action against such homebuyers and force them to pay pre-EMIs on projects that are still under construction, have been completely stalled, or have been delayed. Thus, homebuyers have the right to go to a civil court and get an injunction ordering the bank not to deduct the pre-EMI amount from them, or go to a high court as an association. Marketing Schemes and Gimmicks - Subvention SchemesIn short, a Subvention Scheme is a legal agreement between the buyer, the seller, and the financial institution providing the home loan. In this scheme, the buyer doesn't have to pay any interest until an agreed-upon period, which is mentioned under the contract terms. Although the central government scrapped this scheme in the 2019 budget, the builders have still continued to offer these schemes by making an agreement with the bank. Since the interest is borne by the bank and the customer doesn't pay it, the builders price their projects to include the finance costs into the price of their under construction buildings. Now, the builders advertise these schemes to attract buyers by claiming that these schemes are more financially secure when you buy an under construction property. Consequently, the builder, the financial institution, and the homebuyer enter into a tripartite agreement. In a tripartite agreement, it is agreed that the homebuyer has to pay a very small down payment (ranging from 5% to 20% of the loan amount), and the bank will fund the rest of the amount. When banks transfer these funds to developers, over which the homebuyers have no control, they end up diverting them to other construction projects. After a few years, the homebuyers realize that their project has stalled and nothing is moving forward. However, the homebuyer is still forced to pay the pre-EMIs, and he doesn't have the option to stop paying because his CIBIL score will suffer. And if he refuses to pay, the financial institution can take legal action against him by filing Section 138 or implement other legal remedies like sending recovery agents to his home. What Legal Steps Can You Take as A Homebuyer?File a RERA ComplaintThe RERA regulations have made builders far more cautious, and buyers can get multiple kinds of relief if they file a RERA complaint. For instance, under Section 18 of the Act, a buyer can seek complete refund as well as compensation if he wants to exit from the project. Also, under Section 8 of the Act, the association of homebuyers can appeal to transfer the project's construction to another builder if they want to continue. Plus, a buyer can seek interest for a delayed period. Although the execution of RERA orders is difficult, once a homebuyer gets a RERA order, it's important to understand that his debt is secured in many ways. If the homebuyer does end up in insolvency, this piece of paper will ensure that he is a financial creditor of that particular company and can seek his right before the NCLT (National Company Law Tribunal). File a Petition Before NCLT CourtNCLT is a great option available for homebuyers. For instance, when a group of homebuyers have formed an association, they are now recognized as "Financial Creditors" in the NCLT under the IPC code, which is the "Insolvency and Bankruptcy Code." Thus, homebuyers can collectively approach the NCLT and file for a Corporate Insolvency Resolution Process (CIRP). If the petition is accepted, the entire CIRP process starts where a resolution professional is appointed who specializes in handling distressed companies and distressed projects. File a Complaint in Consumer CourtConsumer Court is another excellent option for homebuyers. Because RERA and Consumer Court are parallel forums, a homebuyer can approach both, but he cannot ask for the same relief in both forums. For example, if a homebuyer asks for a refund in RERA, he cannot do the same in Consumer Court. However, he can ask for compensatory damages in Consumer Court. File a Criminal Complaint Against the Banks and BuildersHomebuyers can also file cases against the banks because they have released large sums of money without really considering the stages of construction, thus, violating the public trust doctrine that banks as financial institutions owe to the public. Plus, if the builder has misused the funds in any way, the homebuyers can also file a criminal case against the builder. What If Another Builder is Willing to Take Over the Under Construction PropertyEven with all of the legal remedies and knowing what the ground reality is, it's a very viable option for homebuyers to consider. It can take years to get a court order in your favour and execute the order. However, many homebuyers will refuse to go with a new builder, or the new builder will have a lot of terms and conditions for taking over your project, but it's all about balancing the options available. How Do You Avoid Falling into a Delayed Housing Project?Conduct a Thorough Background CheckA proper background check on the builder, the property, and the project itself is very important. It includes the financials of the project, the fund sources, the banks involved, etc. This research will also reveal whether the builder has a lot of financial constraints, whether he has the financial stability to finish the project, or whether the construction company has a lot of debt, and more. Thus, it will help a homebuyer decide whether or not to proceed with the project. Ensure that your Agreement is RegisteredAs a homebuyer, make sure your agreement is registered when you sign it. Many homebuyers confuse franking a document with registering. Franking is the process of getting the document stamped and indicates that the document is legal and the stamp duty has been paid. However, it doesn't ensure that your document is registered. A registered agreement is one that has been signed and scanned by the Government's Registrar office. A registered agreement has admissibility in a court of law, and it allows the homebuyer to transfer his rights if required. Ensure the Project Has Got All Necessary ApprovalsWhen buying an under construction property, make sure it's in a condition where the construction can take place without any interference. So ask the builder if they have received all necessary approvals to construct the project. Ideally, you should consult a lawyer when you plan to buy a property. The lawyer will ask you to get a list of documents from the builder, which you can ask from the builder and submit to the lawyer for verification. About Prop.AcademyProp.Academy is sponsored by PropertyAngel. Prop.Academy aims to inform and educate consumers about real estate affairs and upskill professionals on the latest tools and best practices.
In this video, Sapna Chandiramani, Co-founder of PropertyAngel, speaks with Advocate Ayusshi Agarwal, Founding Partner of Karya Associates, and Pawan Chadha, a distressed home buyer. Many owners and potential clients often wonder what full-service property management Bangalore is. When we say "full service," we're not just using a shopworn cliché. We mean that we offer a complete range of property management services that set us apart from the ordinary. In this article, we will go over property management Bangalore and the full range of services offered by PropertyAngel.  What is Property Management?By definition, property management Bangalore is the management of real estate by a third party. The responsibilities of a property management firm typically include day-to-day operations such as marketing rentals, screening tenants, setting competitive rental rates, coordinating necessary maintenance and repairs, collecting rent, managing budgets, and complying with all rental laws and regulations. PropertyAngel's Full Property Management ExplainedWhen you handover your real estate portfolio to our property management Bangalore services, we make sure to take care of everything, from tenant screening and marketing to rent collection and maintenance. Let's jump into the list of responsibilities: 1. Setting competitive rental fees.As one of the best property management firms, we know and understand the market and the areas we work in. That's why setting rent is one of our main responsibilities. We perform an annual survey of similar properties in a given area. In this way, we ensure that our rates are attractive to tenants. That's why our customers have confidence in our full property management Bangalore services. 2. Collecting rentJust as we set rental rates, we are also responsible for collecting rent. Through our tech-enabled property management Bangalore services, we implement a user-friendly system for tenants to make their monthly payments. 3. Finding tenantsFinding tenants requires a lot of research, time and planning. At PropertyAngel, we first analyze the market where your property is located and then devise a strategy to attract the right tenants. We post pictures and videos of your property on social media and various real estate websites to promote it. 4. Screening tenantsOnce we generate a flow of potential tenants, we screen these individuals to ensure they are stand-up citizens who will pay their rent timely and respect the premises. Our screening of tenants typically involves a meet and greet, a background check, and/or a credit score check. Our property management Bangalore services have the tools and resources to make this happen. 5. Managing daily complaintsIt's bound to happen; every tenant will have complaints at some point. We know how to deal with these complaints in a timely and fair manner. With our full property management Bangalore services, you can avoid the headache that can come with sorting out disputes. 6. Arranging tenant move-in or move-out dates, as well as evictionsWe arrange both move-in and move-out dates and ensure these dates comply with the signed contracts. In addition, we collect the security deposit and return it upon exit clearance. Also, our property management Bangalore services facilitate evictions legally and fairly. 7. Property maintenanceProperty maintenance is an important aspect of our property management Bangalore services. We create a long-term maintenance plan for your property and make sure it meets the legal building regulations. 8. Managing the BudgetPropertyAngel is well-versed in comprehensive budgeting. We use the budget to set various quarterly goals. In this way, we closely monitor the income and costs and make quick strategy changes if the existing systems fail. We typically include these costs in the budget:
Need for Property Management Firms in BangaloreAre you looking for property management firms in Bangalore? Then look no further. PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. We have almost 8 years of experience in property management Bangalore.
Since November 2014, we have had customers in 95 countries, managed over 1.5 million square feet, and have a 100% on-time rent distribution record. To know more about our property management services, contact us at (91-80-47095974) or (91-7406484455). What are the residential property management services offered by PropertyAngel for landlords?7/12/2022 Residential property management services are highly beneficial to any landlord, whether first-time landlords or experienced owners with multiple properties. Dealing with all of the daily demands of tenants - as well as tenant turnover - takes a great amount of time. Most landlords work a day job while owning rental properties, and they do not have unlimited hours to devote to their rental property. Using residential property management services allows you to enjoy the benefits of owning rental properties without the added stress of another job. Continue reading to learn more about the benefits of using residential property management services.  What are Residential Property Management Services?A residential property management service will handle all aspects of your rental property, including finding tenants, dealing with maintenance, and collecting rent. Residential property management services can respond quickly to your tenant's needs. When a tenant has a problem, they want to know that their landlord will fix it as soon as possible. You might have a full-time job or not even live in the same state as your rental. You might not be able to drive over to the house and personally inspect everything that goes wrong. You must always have someone to respond to your tenant's needs as soon as possible. The perfect solution is to use a residential property management service. If your tenant has a repair problem or another concern, they can contact the property management company and have it resolved right away. The tenant will be pleased, the problem will be resolved, and you will no longer have to deal with it. Residential property management services help keep your tenants happy and in your unit. For landlords, turnover is a big expense. When the previous tenant moves out, you must make repairs, market the property, and find a new landlord. Meanwhile, the unit may remain vacant for some time. You will be much better if you can keep your tenant happy long enough for them to stay in your rental property. After all, residential property management services are in the business of keeping tenants satisfied. They will look after your tenants and make sure they are pleased to live in your rental property. Thus, tenants will want to keep living there. Residential property management services minimize your stress. If you're like most landlords, you want the benefits of owning a rental property without the hassles of day-to-day management. Is that impossible or too good to be true? It doesn't have to be that way. Residential property management services will handle all the stressful details while you sit back and collect rent. Why Hire PropertyAngel? Our residential property management services offer a host of benefits to landlords and tenants alike. If you have a day job or you don't live near your rental property, rest assured we can help you meet your investment goals. When you work with us, you can expect the following services: Financial Reporting At PropertyAngel, we always keep our clients updated on the status of their rental property. As our client, we will provide you with comprehensive, detailed reports on your property. You can access your statements through your owner's portal at any time. Tenant Screening Our screening process helps us find the best tenants. When we screen tenants, we look at various factors to make sure they are the best fit. For example, we look at how much money a prospective tenant makes each month. This allows us to analyze whether they will be able to pay their rent on time. We also check each prospective tenant's employment, criminal, and rental history. As per state law, our screening process is thorough while also being fair to all applicants. On-Time Rent Collection PropertyAngel can make sure you receive consistent rent payments from your tenants. Before a tenant signs a lease with us, we ensure they understand all terms, including rent. This helps to avoid future confusion and misunderstandings that may result in late or missed rent payments. With our years of market analysis experience, we can also help you figure out the correct rental price for your property. Effective Property Marketing Our marketing process is aggressive and produces quick results. Our marketing goal is to find you a desirable tenant in as little time as possible. With online marketing, we maximize your property's exposure by posting pictures and videos on our website, social media, and various real estate portals. Regular Property Maintenance PropertyAngel can also help you with your property's maintenance needs. We respond quickly to tenant maintenance requests and inspect your property on a regular basis for potential damage. We understand the importance of maintaining your rental property. A well-kept property attracts the right tenants and abides by the state's habitability laws. When it comes to maintaining and repairing properties, our team of contractors is experienced and skilled. About PropertyAngelPropertyAngel is an O2O (online-to-offline) solution-oriented property management company. When you hire us:
We treat all our clients with respect, transparency, and integrity. Get in touch with the experts at PropertyAngel. We provide residential property management services. PropertyAngel will take care of every aspect of your rental property. We'll market your property, screen tenants, handle repairs, and collect rent. Contact PropertyAngel to learn more about our residential property management services. |
Archives
February 2023
Categories |
RSS Feed