How to choose a right plotted development project for investment/end use? Part 3

Welcome Back All,

As we were discussing in our earlier posts about choosing a right plotted development project where now we have already concluded which part of the city we should invest and how to evaluate a developer, now we arrive to the most important factor –

3. What are the mandatory things to be reviewed before investing in a project?

Friends, we hear a lot of negativity when its about real estate, especially when it’s all about documentation which plays a vital role in appreciating or depreciating your investment. So today I am going to give you a complete detail on what exactly on the documentation you have to look at before putting your hard earned each penny. And for this you need a good Advocate who can give you in depth history of the property. Always understand the history of the property along with getting an opinion of it from an advocate.

Firstly, always look for a project which is always RERA approved and Bank Approved. When I say RERA approved, these are the projects which has got DC Conversion, Plan approval of project from concerned planning authority, A-Khatha/E Khatha(9&11A) and also title is in the name of the seller. When it is Bank approved then it is clear that it’s a translatable property in future too.

Why we should invest in RERA approved or Plan approved projects and not Revenue sites (Panchayat) is because these sites are not authorized by any planning approval authority which gives free hand to State and National Govts to acquire your property and give compensation on the value of the Agricultural land. It wont hold the market value of a site or plot so it’s a big loss and the basic facilities for the same plots may take years or even a decade to get basic facilities like water connection or sanitary line which is very important facility. If you ask whether the plan approved projects can not be acquired by any govt authority then it’s not true. But still you have an upper hand because such properties can be acquired by only National Highway Authoritied of India (NHAI) for road widening only and no other department like Housing Board or Industrial Board can even think of acquiring it. And if it’s getting acquired by NHAI then you can claim for actual market value as compensation which is your right.

When I say Bank approval, it is because these properties having loan facility states that in future for any kind of financial help you can approach those banks for loan or when you are selling the same property, you can refer to the buyer which will be easier for him to get loan.

Always take a copy of legal document set of property and get it verified by your advocate. Whichever advocate is verifying always tell him to check the property flow of title of minimum 50 years or more only. Normally some prefer to do only 30 years, which I wouldn’t recommend. Accumulate few of the necessary documents from govt revenue offices by your advocate only to cross verify the legality of documents. Make sure you get to see the original documents once along with your advocate of the property. Because it is a project, these documents will not be provided to customers/buyers except there own sale deed, khatha copy.

So these are the basic things you need to follow when you are buying a plot/site in a project. Please feel free to ask me your queries in comments section. I will try to answer them as much as I can. You can even email me at spankajbalar@gmail.com

Thank you & Invest safe,

Pankaj Kumar

How to choose a right plotted development project for investment/end use? Part 2

Welcome back all,

As we understood that – How to choose a right plotted development project?, now we will try to put some light on one of the most important thing for choosing a project..

How to shortlist good developers?

Great, so normally what we do is go ok google check on projects available in the area where we are looking to invest and then see which all developers are having the project with all prices, different stages of development, amenities, date of handover, bank loans approved, RERA approved projects. These are basic things what we understand and now I will take you into little depth of it. So here are the points which you might already know and sometimes may be ignored..

1. How old is developer?

A new developer is not a bad developer and old developer is always a good one, vice versa.

2. How many projects are completed?

As I said if it’s new developer then you need to be little more cautioned and should always have the direct connect with the management. Understand their background and what’s the status of the project. As well as keep a check on the twice a month update on the development progress.

If the developer is an old developer and have minimum of 5 or more projects completed then do the due diligence of those projects like commencement date, handover date, delay period, services and support of developer. Never judge on delay in execution of project for 1 year as actual delay but delay is only considered if it is beyond 2 years from promise date of delivery. What are the future projects of the company?

Is it the developer company or just the marketing company (who takes marketing rights of the developers or landlords of the projects)? If it’s the marketing company then make sure you meet the real developer before entering into agreement and have all their details. Because tomorrow by chance if you getil into any kind of problems the you can directly approach the developer or the owner of the project.

These are only 2 basic things about developer which you need to understand in depth. If you are satisfied with these things then you should go ahead investing.

Hope this was useful info.. will come to next very important topic very soon and that will cover a very important information with in detail of every terminology of a project. Stay tuned

Warm Regards,

Pankaj Kumar S

#realestate #affordable #Layout #luxurious #housing #plots #RERAapproved #site #investment #investmentproperty #plotteddevelopment #propertyinvestment #northbangalore #bangalorenorth #southbangalore #eastbangalore #westbangalore #bangaloreproperty #investmentinbangalore #realty #affordableluxury

How to choose a right plotted development project for investment/end use? – Part 1

Welcome All,

We have been hearing from lot of people

1. How to choose a right plotted development project?

2. How to shortlist good developers?

3. What are the mandatory things to be reviewed before investing?

Now, above 3 questions very common and very important too. These has very vast answers so I will cover every question in separate blogs. I will start today with the first question.

1. How to choose a right project for investment?

While we start this topic, we need to answer ourselves on certain questions like, 1. Am I investing for my future home or purely an investment perspective? 2. What is my budget? 3. What is the time period of my investment? 4. What is the size of plot I want to invest? 5. Where should I invest, in North or South or West or East Bangalore? These are the 5 basic questions mandatory to choose a right project. I will help you out to reach a right decision.

1. Am I investing for my future home or purely an investment perspective?

If I am investing it for my future home then I will ask myself after how many years I want to build the home and whether it will have basic necessity around my plot like schools, daily need shops, hospital are atleast reachable in 10 to 30 minutes when I will be finishing building my home. So basically, major things to be looked into is if I am building home immediately then I should have all these basic needs in and around. And if I am building it later then these needs should be available at minimum distance.

PlIf I am buying a plot purely for investment then i should look into various points like Basic necessities, future developments in and around the project, any govt projects are announced and will those be operational or under development when I want to resell the plot. What kind of developments are going to come in and around like commercial, hospitality, industrial, entertainment, etc., and what kind of appreciation can be expected accordingly can be derived.

2. What is my budget?

I am a middle class man and I always think about my budget before investing. And I would prefer having a bank loan to purchase the plot and build a home. If I have a budget of Rs.30 lacs then Rs.10 lacs is for plot and Rs.20 lacs to build a home. And if it’s only for investment then any RERA approved project will have plots starting from Rs.8 lacs onwards minimum. Bangalore outskirts does have such projects and companies offering such plots with bank loans so we do not see anyone will have concern of budget problem to purchase a plot.

3. What is the time period of my investment?

If I am buying a plot purely for investment then I always should prefer low budget plots with all the approvals and RERA approval along with bank approvals as well as the investment time period should always be 6 to 8 years and above. Longer the time period better the returns.

4. What is the size of plot I want to invest?

Two things, if you are buying a plot to build a home then you are a good judge what are you looking at. And if you are buying plots for investment then always prefer for 1200 sft or 1500 sft plot. Secondly if you a big budget then divide it in multiple projects in little distance or different regions. Never put it in same project.

5. Where should I invest, in North or South or West or East Bangalore?

This question is very easy to answer if you want to build a home because you know where you to want to have your home. And it’s difficult to decide when you are looking for investment. It is difficult because Bangalore is growing 360 degrees as I told earlier. Now which is growing at what pace is important. Every area has it’s on importance and positive things. But it becomes easier to decide only when you compare the upcoming developments and govt projects starting. So always decide based on future developments happening.

Please make sure, you are not confused while making decisions. Do research, if you are confused and then arrive to a conclusion. Now, I hope you have an answer for first question. We will look into other questions in future blogs.

Thank you,

Pankaj Kumar S

#realestate #affordable #Layout #property #plots #sites #investmentopportunity #investment #investmentproperty #plotteddevelopment #bangaloreproperty #northbangalore #bangalorenorth #southbangalore #eastbangalore #westbangalore #asset #safeinvestment #investwise

REAL ESTATE

Is real estate a safe investment?

Hello everyone,

Investment in real estate, gold and precious metals has been the tradition in our India since centuries.

Post independence, the most appreciated and safe investment has been Real estate comparatively when we evaluate in long term. It has been the dream of every human to own piece of land and this dream will be increasing as days passes. It will be increasing as population increases, lifestyle increases. It is considered a social status, if you own a piece of land then you are prosperous.

Now dont worry on whether it is affordable or not. Yes it is Affordable. There are properties across Bangalore rural and outskirts plots starting 8lacs with all approvals and RERA registered projects. The most upcoming area would be North, East and North East part of Bangalore growing exponentially since past 3 years. Will give you more notes on it in my next blog.

Owning a property of their own, especially where always the first choice would be owning a plot where they say “Zameen bhi apni, aasmaan bhi apna”. Considering these facts and when we compare the prices of real estate being always on the upper side in the graph year on year in Bangalore since 20 years. The minimum per year average from 12% to 24% which is phenomenal.