Real Estate Update

Property asked:




Mumbai, Jan 13 Real estate developers fear 30% to 50% increase in prices as well as demand for property in Mumbai, Pune, Nasik, Chennai and Bangalore, compared with the ongoing steady demand and prices in Delhi and the NCR region from March 2008 onwards.

According to industry experts, with Indiabulls (14 lakh sq ft of commercial and retail) and Peninsula II (5 lakh sq ft) properties under construction in Lower Parel in Mumbai, the demand for residential properties is expected to rise by 30% from March 2008. While Indiabulls property is expected to be operational this

year with a parking space for 3,500 cars, the Peninsula II properties will be completed next year.

According to Abhinandan Lodha, director, Lodha Group, “The commercial property rates in Mumbai are expected to rise by about 50% with more premium buildings getting constructed. Besides, India is emerging as a leading hottest destination for premium commercial establishments whereby builders would be setting up huge number of commercial buildings situated in one location.”

Property prices has already touched the roof since the past two years when the booking for Ashoka Towers started at Rs 4,000 per sq ft. However, now the prices have shot up by an additional Rs 18,000 per sq ft. As a result, home buyers have started eyeing Pune, Nasik, Chennai for setting up second homes instead of buying a second home in Mumbai for weekends.

This is also because of the requirement of 90 lakh homes in Mumbai, only 30% homes have been built so far. For example, investors have bought many flats in Kharghar, where 70% of the buyers have still not resided.

In Chennai and Bangalore, dual income families have started spending more on EMIs on buying big homes. Although currently Chennai is not considered a very active property destination, with the mixed used development under construction by Hirco (15 mn sq ft), Chennai will also see boost in prices and demand as well. Besides, there is already overbuilding been happening in Bangalore. Hence, the huge demand. On the contrary, NCR region and Delhi has already seen developments of this size.

Fiona Livnat asked:




The present real estate market has been witnessing a changing trend with foreclosed homes becoming a popular investment option for home buyers. One of the major reasons that have resulted in an increasing number of property buyers turning to foreclosures is their highly reduced prices in contrast to other real estate deals. So if you are on the lookout for an affordably priced property located in a good neighborhood, considering foreclosure properties could be a very wise option for you.

What are foreclosed homes?

Foreclosures are different from conventional real estate properties as the former comprises of homes that have been reclaimed by banks and mortgage companies due to non-repayment of housing loans by the previous home owners. As these properties are a liability to the banks, they are sold without any profit motive as the lenders are keen to recover their loan amount.

How to search for a bargain property deal through foreclosure listings?

Banks, mortgage companies, government agencies like the HUD and real estate agents advertise about foreclosures through various listing services which make the whole process of finding a suitable home very simple. So if you are interested in purchasing a property through foreclosed homes, the following guidelines will help you in finding a good bargain deal is through foreclosure listings successfully:

1. Research the web – The process of buying a property through foreclosed homes is different from other real estate ventures. Therefore research the web for foreclosure related information for the better you understand the foreclosure rules and laws as well as the current market trends the higher are your chances of finding a bargain deal.

2. Find a genuine listing service – Find a genuine and efficient online listing service that can give you a comprehensive database of foreclosed homes available in your preferred location.

3. Fill up the enquiry form – Fill out the enquiry form in the listing site with the housing details such as your budget, location, number of rooms etc to get suitable listings.

4. Identify suitable deals – Once you are provided with results on foreclosed homes, identify the deals that suit your requirements.

5. Select the best bargain offer – Now compare the asking prices of the foreclosed homes with their various features and identify the property that is available at the best bargain price.

When it comes to real estate deals, foreclosed homes offer some of the best bargain properties in the market. Now that you are aware of the steps to finding a foreclosure go ahead and get yourself a value home through foreclosure listings.

Chris Chico asked:




Flipping houses is a great way for beginning real estate investors to earn enough capital or garner enough collateral to make larger and potentially more profitable investments. Houses offer great opportunities for successful investments because they can be purchased without a lot of upfront capital  and are relatively easy to obtain, they are in great demand in most real estate markets therefore they are easy to flip, and there is relatively little financial risk compared to larger, more involved real estate transactions. For these reasons many beginners in the investment field get their financial feet wet by buying and selling residential properties.

Thousands of residential properties changes owners every day; since these transactions are so common banks and other lending institutions offer certain financial short cuts in order to streamline the process. These shortcuts make purchasing a home much more affordable than other real estate properties. Since purchasing a home is more affordable (the average single family home costs two hundred thousand dollars) than other investments, an investor does not need a lot of upfront capital in order to complete the transaction. Most banks only require a ten percent down payment. This means that if a house costs one hundred thousand dollars, the purchaser only needs ten thousand dollars for the purchase. The remaining balance is fronted by the lending institution for a fee.

Many institutions will accept other assets in lieu of actual cash. For many investors this may be a better option. This means that instead of paying the initial down payment, the purchaser can declare a car, boat, or any other owned property that is valued at or above the initial down payment. Therefore, a home can be purchased without any cash on hand at all. There are even government programs that can help with the purchase of a home. While these are intended to benefit home buyers, real estate investors can also take advantage.

Flipping houses for profit is also a great way to generate capital for other investments because the demand for these properties is great in most real estate markets. When property sellers decide to sell their real estate assets the most important step is to locate and identify potential buyers. Since homes are in constant demand, there is a ready supply of buyers. Therefore, there is usually no need for a lengthy, costly, and time consuming process of searching for a buyer. Many times a house will sell itself. This means that simply placing the property on the market is usually enough to get the house sold.

Compared to other real estate investments which may run into the millions of dollars, residential investments is relatively low risk from a financial standpoint. If a house does not sell immediately, then the cost of maintaining ownership of that house is not overwhelming for most people; whereas the continued ownership of a larger commercial property might be too expensive to maintain. It is also less of risk because, as we have already discussed, the initial investment is comparatively small if not nonexistent.

Therefore, many beginning investors begin their career by flipping houses for profit. It is an easy and relatively low risk method of building capital and assets for larger and more profitable investments. 

Real Estate Advisor asked:




There are plenty of research on the influence of city trees and open spaces on property values especially in residential settings. With proper landscape improvements, the economic value of a home can be increased immensely. This article focuses on the hedonic valuation of city trees which would not only benefit developers and home buyers but also play a vital role in a city’s revitalization project. Read on to know how natural capital such as trees and open spaces can add value to a property, although intangibly so.

The following are the top 5 landscape improvements to increase home value, based on the results of various studies on trees and residential property values.

1. Advantages of homes with trees. Single-family homes with trees are generally preferred to those without. Homes with trees and those located in neighborhoods with good tree cover have a higher property value than homes without trees. The following results are from a selection of studies done on yard and street trees.