Subvention Scheme !!!

SUBVENTION SCHEME 

People who have interest in the real estate industry would have heard about the aforesaid word. Now a days it has now become a catalyst in boosting up the sales of any project and various known names (developers) use this tool to sell their projects. It is also fascinating home buyers who live on rent and cannot afford to pay the EMI and rent simultaneously.

I would like to elaborate more, the meaning of Subvention.

Subvention is marketing tool wherein the customer pays only 15% of the under development property value at the moment and finances the rest from a bank,whose EMI and interest starts after a certain period of time or after the customer gets the possession of the property.

Subvention is an arrangement between three parties. Builder, Customer and a bank. The bank, on the eligibility and credibility of the customer provides a loan to the builder. This loan, for a customer is a housing loan,whose EMI will start after a certain period of time. Generally this time period is either 18,24 30,36 months or till the possession. Till the subvention time period, builder on behalf of the customer pays the interest to the bank. As soon as the subvention time gets over, the EMI for the customer starts. 

Benefits of  Subvention to the customer :-

1. By paying only 15% (till subvention period) customers owns a property.

2. Less capital blockage. Till the subvention period one needs to pay only 15%.

3. Good returns expected by investing the minimum amount.

4. No hassle of Pre EMI or EMI.

5. Flexibility and ease of payment.

The only limitation of subvention for a customer is that his/her loan eligibility is blocked and the property is not transferable till the subvention time period is over.

Now the basic question arises, Why would builder pay the interest on behalf of customer ?

This subvention scheme helps the builder in the form of an economical way of fund generation as the builder is getting the money in form of a residence loan which is much cheaper when compared to commercial loans in terms of rate of interest. Moreover the builder gets the whole amount at one go, something you can correlate to a down payment plan.

We can conclude that subvention is a win win situation for both, the builder and the home seeker.

Comments Welcome !!

Nirad K Singh

World Trade Centre - Noida

WORLD TRADE CENTER - NOIDA

The World Trade Center, as we all know is a global brand present in 330 cities across the globe and houses most of the fortune 500 companies in its premises. The WTC Brand which houses around 1 million business in the world, is coming up in Greater Noida on the Yamuna Expressway. It is located in the 600 acre tech zone alongside the Yamuna Expressway. 

Spire Tech along with Sun World is developing the prestigious WTC . Spire World has got the licence of developing the World Trade Center in India.

The project will consist of office spaces, retail spaces, studio apartments and a 5 star hotel in an international standard premises.   

Details of the project :-

Furnished office spaces (Virtual) - 100 sq.ft. on wards @Rs. 7200 psft.

Furnished office spaces (Lockable) - 350,525,870 sq.ft @ Rs. 7200 psft.

Unfurnished office space (Virtual) - 500 sq.ft on wards @Rs. 5150 psft.

Unfurnished office space (Lockable) - 1000 sq.ft on wards @Rs. 5150 psft.

Returns :-

12% assured return till possession.

1st lease Guaranteed (36 months)

Salient Features.

1. Global brand which accounts for 1/3rd of global trade.

2. One brand which has 1 million business in its premises.

3. Security of investment

4. Returns guaranteed for the next 5-6 years

5. Research shows, WTC has 18% higher rental and 33% more occupancy.

WTC Noida as an Investment !!

As earlier quoted, a global brand which houses a million businesses across the globe is surely a place to infuse your hard earned money. WTC is a brand which is recognized all over the globe and has always become a landmark in the area in which it is located. Researches shows that WTC offices give higher rental and has more occupancy than any other commercial building in the same locality.

WTC Noida is located in the tech zone, Yamuna expressway. The government has allotted the land for IT development, in which NIIT is already operational. Wipro, infosys have their land in the same zone. Many group housing are coming up in the same vicinity. So there is no doubt, that the area will emerge as one of the destinations to look forward to. 

The main reason to invest in it, is the returns which the builder is guaranteeing. The builder guarantees you return for the next 6 years (3+3). Approximately 60% of your investment is returned back in the next 6 years, plus, you have a property in WTC. So, with the cost of 40% you own a property in WTC whose value will at least double in the next 6 years (2013 - 2019).

One can compare this WTC Investment with a Bank Fixed Deposit, former giving a better rate of return.

With Noida - Gr. Noida being the 4th largest IT-BPO destination in India and housing more than 50 IT MNC's is considered as one of the best location in North India.Furthermore, hi tech infrastructure, Connectivity to Delhi, Gurgaon, Faridabad, F1 Circuit, Gautam buddha University etc add few more feathers in the hat.

Comments Welcome !!!

Happy Investing !!

Nirad K Singh 

Krish launches New Project in Bhiwadi, Alwar By pass

Krish Launches a new Project on Alwar By Pass, Bhiwadi

Krish developers has come up with a new project on Alwar By Pass, Bhiwadi. Now the most exciting thing which fascinates me is that the project in located before the toll. The location is one of the best of bhiwadi.

Following are the details 

2-3 BHK (800-1250sq.ft)

Price @ Rs. 2600psft

Inaugural Discount - Rs.100000 /-

Important Features :-

1. Located on Alwar By Pass

2. Located before the toll on the Alwar By Pass.

3. Already developed area with people residing in the near by societies.

4. One of the known builders of Bhiwadi.

5. Malls already operational in front of the society.

Krish Aura as an investment !!!!

As earlier mentioned, the location is the best feature of the project. In terms of location , I would say that the location already has ready to move societies with occupancy of nearly 80% on an average. The ready to move in societies are at a BSP of around Rs. 3500 psft. So a deal at Rs.2600 psft at the same venue is worth investing. Furthermore, the developments which is gonna come in the next few years at Bhiwadi will add few more feathers in the hat. 

The demand for group housing in Bhiwadi will increase with leaps and bounds in the coming few years as it is becoming one of the most prominent locales in the NCR. Some of the manufacturing units which have already set up or planning to set up units in Bhiwadi include Honda,Hero,Honda Siel,Gillete India,Blue star,Kajaria,Parryware to name a few, will add up to the demand of residential group housing societies.

The DMIC (Delhi Mumbai Industrial Corridoor) will also play an important role in making Bhiwadi a most sought after destination.

With such parameters attached to Bhiwadi a return of around 80% is expected in the next 3 years.

Apart from Investment, the area before the toll on Alwar By Pass, is also good for end use purpose.

One can easily think of having a second home in Bhiwadi. 

Krish Aura will give a stiff competition to the newly launched project Avalon Rosewood (March 2013) in the same locality in terms of pricing. 

Its a simple, small and safe investment. But don't forget to bargain for discounts on it.

Happy Investing !!!

Thanks 

Nirad Singh 

  

Gaursons New Project on Yamuna Expressway

Think trust. Think Gaursons

Gaur is coming up with a new residential township on the Yamuna Expressway, Gaur Yamuna City.

Right now they have opened bookings for a group housing of 6.5 acres.
Following are the details
2-3 BHK options ranging from 1000 - 1375 sq.ft.
Price - Rs. 2095 - 2815 psft
G+26 story
Total apartments - 1400

Important Features
1 . Bang on Yamuna Expressway
2. Very close to F1 Circuit and Night Safari
3. Reputed Builder.
4. Part of a 300 acre township.
5. Huge potential of growth in coming 3-4 years.
6. Competitive pricing

Gaur Yamuna City as an Investment !!

From the investment point of view, the project has surely got a brand name attached to it. The builder is reputed and has already delivered many projects in Indirapuram,Ghaziabad and Noida. No question mark on the builder.
The location of the project will surely get developed in the coming 3-4 years. Though the infrastructure is already developed, but its difficult to live at such a place at present. One cannot think of possession for at least next 3 years. This is the time to invest on Yamuna Expressway as it is still at its inception stage and as the time passes, it will be one of the destinations to look forward to. With infrastructures like F1 track, Night Safari, International stadium to name a few, this area will come up as a city in itself.
The government also has huge plans for this mega upcoming satellite township. The government has already approved a 650 acre tech zone on Yamuna expressway. Companies like Wipro, infosys have acquired land in this tech zone. NIIT is already operational.
Many big universities are present alongside Yamuna Express Way.
With such developments paving its way , its obviously the destination for investment which would be a cash cow in the long run for an investor.

I suggest go for Yamuna Expressway and HOLD your property for next three years.
And do come back after 3 years to thank me.

Comments welcome !!
Happy Investing !!!!

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DELHI NCR - Future of Real estate

 Future of real estate in Delhi NCR !!

If we look at the trend ,we can easily say that the NCR Real estate has been growing for the last 10 years.

This growth has various macro level reasons. People migrating from various parts of the country and settling in NCR has led to the need of more and more houses. The real
estate industry has adjusted to the massive demand generated. The demand of being close to Delhi has boosted the realty market.

An average of 18% hike in prices has been recorded every year . For example , If we consider Sohna Road, Gurgaon,the average rates 5 years back were Rs. 2400 psft and today the prices have doubled twice.

If we consider these facts,one can easily comment that the future is bright...!!! But is it so...?

Let us look at some parameters for real estate growth which is about to come in future.

If we analyse, at the present moment,the real estate market in NCR is experiencing a setback. The major reason is the the inflation rate, Home loans rate , Cost of the property and the Rupee - Dollar battle.

This is the current scenario , but as an optimist,I would say that the growth in Real estate market is very close.

Government is supporting the public private partnership (PPP) model and is providing every support in creating a hi class infrastructure. The requirement of a good infrastructure ,Connectivity,Better standard of living etc. will act as a catalyst in real estate growth.

The upcoming roads like the Yamuna Expressway,Dwarka Expressway,Southern periphery road ,KMP Expressway are all experiencing good response in terms of residential and commercial projects being launched and they are going to be very popular in terms of infrastructure,Connectivity and a better standard of living. The popularity of these expressway and the projects on them will surely have a positive effect on the capital value.These days a lot of residential development at an affordable price is going on the Yamuna Expressway. Jaypee ,Gaursons,Supertech ,ATS etc are leaving no stones unturned in developing a masterpiece on Yamuna Expressway.

This is the time to invest on projects on Yamuna Expressway because this is the area which is gonna see great upward movements in the price in the coming 4-5 years. Government has allotted a 650 acre land for developing a Tech Zone beside the Yamuna Expressway. Huge residential and commercial developments are planned on Yamuna Expressway. But the only key to gain out of these developments is patience.

If you planning a short term investment,Yamuna expressway is not the place.

My suggestion - Invest on Yamuna Expressway and wait, to see the scenario changing. 

Happy Investing !!!!

Nirad Singh

  

Pre Launch Projects !!!

PRE LAUNCH

Delhi NCR investors and end users must be quite familiar with this word. But what does this word actually means in context of Real Estate?

It simply means, from the builders side, that "we are going to develop this land into a group housing but we are still in the phase of getting all the approvals and clearances from the concerned authorities."

   

It refers to builder raising funds for his upcoming project without the necessary approvals.
It is a tool which builder uses to check the demand for the project which it is going to develop.
Is it fair ..?
Now this question has a complex answer. For an end user, it is really difficult to decide without the total details of the group housing which will come up. Maximum end users keep themselves aloof from such phase.
Now ,if we talk about an investor, this is the golden period for him. He knows the importance and benefit of pre launch.The simple benefit he gets, is of the price and the short term return on his investment.
Is it wise to invest in a pre launch.....?
People who have made huge money out of real estate are either, one who had huge land bank or the one who invested in a pre launch. The Pre launch is not that risky if one is investing with a reputed builder.

Benefit of a pre launch revolves around only one Parameter :- THE PRICE.

So if you are new to Real estate Investment and you hear the word PRE LAUNCH ,just give it a try .
It might give you handsome returns. The only thing you need to check is the background of the developer.

ITS BETTER TO INVEST AND WAIT..... THAN WAIT AND INVEST !!!
Share if you understand the meaning.

Happy investing !!!!!!

Gurgaon Real Estate - Investors paradise !!!

As earlier quoted "the city with 3rd highest per capita income",Gurgaon has been an investors paradise for the early birds who invested in this city 8-10 years back. The rates were mouth watering when compared to today's scenario with very limited investors in the market .

Lets take a look at the Gurgaon real estate history and try to predict the next most sought destination in Gurgaon.

The first and the fore most real estate development in GGN took place on the today's prestigious Golf Course Road (G.C Road). This area today, is mostly inhabited with Gurgaon's most prestigious residential societies. The development here started 8-10 years back and the prices now have increased by 3-4 times.
It had the advantage of being very close to Delhi apart from the Today's Golf Course.One can easily find the costliest property in GGN on the G.C Road.
Very few were able to own a property on G. C Road. Some due to lack of foresightedness ,some due to financial constraints.

But those who missed Golf course road were happy to see a new development in the form of Sohna Road.
The 2nd development in GGN was seen on the Sohna Road. Eye witnesses say that once upon a time Sohna  
Road was a jungle. People dared not to go on that road after dusk. And today its one of the most sought destination in Gurgaon. Projects on the Sohna Road were launched at a mouth watering rates of around Rs.2400 psft. Its really tough to believe such rates today. The basic reason for this colossus development in the prices is the simple factor of Demand and Supply.
The demand for Group housing in Gurgaon has increased by leaps and bounds. Investors and the local residents of Sohna Road made huge money with the development of Sohna Road.

The 3rd Development came in the form of Golf Course Extension Road. This location is still in the development phase,as most of the projects are under construction. In today's time this road has left Sohna Road behind in terms of prices and G.C road in terms of infrastructure.The average pricing on this road is around Rs.8500-9500 psft with maximum pricing around Rs.14000 psft. Due to its pricing this road is frequently called as "God's Own Road"

The next development is in the form of SPR (Southern Periphery Road),an extension of the G.C. Extension till the NH8 and the New Gurgaon (Sectors 80's and 90's). The New Gurgaon is considered to be the most planned sectors of Gurgaon with better connectivity,better drainage system ,Underground electricity transmission etc.Developers like DLF ,Vatika have come up with world class townships in these sectors.
The development here started 3-4 years back and  investors here too, made good money.
The average pricing here is around Rs.5500-6500 psft which started from as low as Rs.2000 psft.

Last but not the least,came the most talked of destination in GGN - The Northern Periphery Road commonly known as the Dwarka Expressway.
It is an 18 km long,150 meter wide expressway connecting west Delhi ,IGI Airport to Gurgaon. It is one of the most preferred location in Gurgaon as it is still under construction,which means it has great potential for growth in the coming years. Various developers are planning their projects on both sides of this Expressway.
This location has again the benefit of being close to Delhi and IGI Airport apart from being very close to Diplomatic enclave. Dwarka Expressway has high fluctuations in terms of pricing. It has projects with pricing of Rs.4000 psft as well as projects with price tag of Rs.10000 psft.

As per me, Investment on this Expressway will give huge returns in a span of 2 years. The most valid reasons  to be :-
1. Widest expressway of Asia
2. Connectivity to IGI Airport and Delhi.
3. Connectivity to NH8
4. Metro route proposed.
5. Diplomatic Enclave
6. Price Band

The Expressway and the New Gurgaon is always compared when one talks of investment in Gurgaon.
Which one is better is always a question to be answered as both have their own significance in terms of Location,Connectivity,Pricing and delivery.


The above mentioned is completely my POV. Any discrepancy or dissatisfaction are welcomed in the comments box below.

Thanks
Happy Investing !!!!!