What is the concept of ready to occupy Realestate projects

Chennai

The viability of ready-to-occupy projects is getting understood in all circuits and the number of investors opting for it are increasing by the day.

Buying a house is one of the most important decisions of one's life. Usually, there might be a long wait, mixed with anxiety with respect to realising the dream of owning a house. This wait has decreased substantially with ready-to-occupy projects gaining in popularity .With income levels rising and increase in the number of HNIs, ready-to-occupy property is finding more takers in the city.

There are many advantages that a ready-to-occupy property has over an under-construction development. Instead of a sample flat or just the floor plan, you actually get to see the finished project. Also, in case of under-construction project, there are many cases where in they are not completed within the promised time-frame much to the distress of buyers.

Explaining the concept of ready-to-occupy projects, K S Manian, chairman, Radiance Realty says, "Ready-to-occupy homes refer to second-hand apartments or apartments that are ready for performing house-warming sessions within a quarter or two. Projects which are 95 percent complete (internal finishes are done, interior related work is in progress and common area finishes are in the final stages of completion) are classified under this category." Popularity of ready-to-occupy apartments has increased in recent times and individuals are actively investing in such projects. "The primary reason is that supply has increased. There are more ready-to-occupy projects available today as compared to earlier years. These apartments come at a higher price as compared to under construction apartments. However, the buyer is clear as to when he can move in and also saves on rent, which can then be used to pay the EMI. Roughly, half the buyer segment is interested in ready-to-occupy projects," says Manian.

R Kumar, managing director, Navin's says, "The demand for ready-to-occupy projects is increasing. People prefer such property as there is no uncertainty about the completion of the project. It is a good bargain for the customers as they can actually see and feel the finished product and have a better understanding of the project. The customer can weigh all the options in the truest sense and get a good idea about the area and infrastructure planning." He feels that the buyer must be careful and do his research while investing in ready-to-occupy projects. "It is important that the investors ascertain that all the required clearances are in place before they go ahead with the investment. A completion certificate is must and they should also ensure that all the service connections are in place," Kumar explains.

Even from the finance angle, a ready-to-occupy property is beneficial to the buyer. Mathew Joseph, member of executive management, HDFC, explains, "In case of a ready-to-occupy home, it is a win-win situation for both the lender and the borrower. For the lender, the risk factor is zero. There is absolute certainty about the project. Also, the financial institution lends the bulk amount at once instead of periodic amounts. From the borrower's perspective, ready-to-occupy project has an advantage of 'what you see is what you get' ­ something that no brochure or video can provide. Double cash flow with rent and EMI does not happen and pre-EMI interest is not there." Perhaps the biggest economical financial advantage for the individual investing in ready-to-occupy project is the tax benefit. "Buyers get income tax benefits for a ready property and there are concessions on interest and principal amount," Joseph adds.

According to Devina Ghildial, Managing Director, South Asia, RICS, a major issue in the Indian housing market has been delay in delivery of the project. "Customers end up paying rent as well as EMI of the housing loan. As projects are delayed, developers also escalate prices with respect to inflation or other outside variables. Demand for ready homes is growing as homebuyers are becoming even more wary about the projects that are under construction. The price differs significantly, however, with thousands of old inventories now available in the market for sale in the festive season, the difference has narrowed," she says.

Source : 99acres.com

5 Tips for Real Estate Investing Success

As you prepare to become a successful real estate investor, I encourage you to take the following tips into consideration. They have helped me greatly as I have navigated my way through the world of real estate--and life in general. I hope these tips will make just as big of an impact on your life as they have had on mine.

Tip #1: Create a game plan.

Decide what you want to accomplish and outline the steps that you must take to get there. Who will be involved? How will you meet them and gain their cooperation? How much time will it take? Where will you find this time? How much will it cost, and where will you get this money? What's the risk? How will you handle it?

This plan will serve as your guide each day, so you need to get it right. That brings us to the next tip...

Tip #2: Have an expert review your plan.

The first real estate investing plan I created involved me single-handedly buying 100 houses in a year. And it listed several different marketing strategies that were completely cost ineffective. I had a friend of mine (who isn't even involved in real estate) review the plan, and he said it looked good. How silly of me!

About eight months into working this over-reaching and misguided plan, I had an expert investor review it. He tore it apart, and together we reconstructed a better plan with more realistic goals (buy 12 houses, not 100) and a more effective marketing plan. 

Shortly thereafter, I bought 6 houses, and I actually felt good about my progress. Six out of twelve feels much better than six out of 100!

Tip #3: Don't give up.

The life of a new real estate investor is filled with countless highs and lows. You're on a high when you think you have a property all locked up to purchase, and then you hit a low when it suddenly falls though at closing.


Or you're on a high when you finally do close on that house, but you hit a low when you hit a 3-week dry spell and it feels like you couldn't get a seller to agree to your price--even if you paid double.

I hit a personal low when I was jobless and $5,500 in debt from fruitless marketing attempts. But I got up early each morning and worked toward my goal of financial freedom. Even though a voice in my head told me to give up, I never did.

That's probably the #1 key to success: Don't give up. Even someone who's as dumb as a box of rocks will eventually succeed if he doesn't give up.

Tip #4: Take baby steps.

When you break it all down, big goals, big dreams, and big plans are nothing more than a series of miniature action steps or "to do" items. When you dissect the daily life of a successful investor, you'll find that he or she does 8 to 12 things each day that are real estate related.

One item might be "Watch DVD #5 in the new investing course I bought." Another item might be "Call the title company about the name on the warranty deed" or "Meet the inspector at the house on Watson Street."

All of these little tasks each day add up to what is, or what eventually will be, a large and highly profitable real estate investing operation. So don't toss that "to do" list by the wayside, thinking that your small efforts today don't mean much. They mean everything.

Tip #5: Become comfortable with discomfort.

I was actually nervous at the first real estate investing meeting that I attended. I was wondering if I would say something stupid or if I wouldn't fit in. After all, most of the investors in the room were 40 or 50 years old, and I was 22.

But by the third meeting I attended, I became comfortable with the crowd. Had I quit after the first meeting, I would have missed out on the very information that enabled me to buy so many properties.

I've learned that one of the biggest keys to success is persisting though uncomfortable situations until they eventually become comfortable. This is where true growth occurs.