Author: Terry Fitzroy

There are five sectors that make up the national and the local real estate markets. Those five sectors are Industrial, Residential, Retail, Commercial and Investments which all overlap each other. Now it's time to have a look at the real estate trends for 2007.

It's important to realize that the national trends and local trends can differ dramatically depending on the economic influence such as interest rates. Right now the market is healthy and is going to continue to become even healthier throughout the year. Let's have a look at each of the sectors.

Residential: What ever you've heard about the market slumping its dead wrong. There has been no real downslide in the price of housing. The residential market is going strong and if there is a bubble it sure hasn't been deflated yet.

The strength of the market for residential housing is directly affected by the interest rates. If the interest rates climb the housing sales slump. The market also depends on unemployment rates. The lower the unemployment the higher house sales.

The housing market will decline as interest rates climb. The market also depends on unemployment rates. The lower the unemployment the higher house sales.

A market will also slump because of too many houses on the market. This will correct itself as people remove their homes from the market due to slumping prices which then brings the prices back up.

With unemployment and interest rates at an all time low the housing boom is going to continue through 2007 and most likely into 2008 so if you are in the market for a house don't be waiting for lower prices. If you don't get in now you may not be able to in just a few months.

Retail: Changing youth demographics and tends of leverage buyouts will both be factors in this sector. Private capital tends to consolidate across a single industry which results in a particular sector being very healthy. The demographic trend continues to be urbanized young households that are made up of two adults, no children, and at least one pet. As this market continues to demand more in the retail sector retail will continue to see a healthy 2007 just like 2006.

Industrial: This sector is motivated into moving sector of its company offshore to remain competitive. The higher wage demands and operating costs have resulted in these companies seeking alternatives. 2007 sees the industrial sector begin to stabilize as it finds is comfort zone from all the turmoil of 2006.

Commercial: This sector consists mostly of office buildings which have seen significant growth in the past few years. The trend for 2007 will be for increased urban growth but at a very steady pace.

Investment: The real estate investment market should follow the same path as the residential market because as long as interest rates are down investment in retail properties is a smart move. With the quickly increasing values you can buy, rent, and make a good return on your money within just a few years if you decide to sell.

There is no question that the real estate trends for 2007 are going to still see significant demand with housing prices continuing to rise. The game will be to beat the clock and buy in before prices take another significant jump upwards.

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Author: James Copper

The process of purchasing an investment property is very different to that of buying a home for example, for you and your family to live in. There are many other considerations that must be taken into account before making this big step.

The buy-to-let boom of recent times has seen many more competitive mortgage deals become available, adding fuel to an already blazing fire. Many borrowers have found that they have come unstuck whilst jumping on the bandwagon without properly researching the proposed venture.

Thorough research of the market is essential. Even if you decide to borrow a substantial segment of the purchase price of the house, it will usually cost you a considerable amount to set yourself up as a landlord.

The location and the type of property you are going to purchase are the two most important factors to consider - for example, demand might not match the number of rental properties in certain areas and one bedroom flats may be easier to rent out than two bedrooms.

It is always a good idea to approach a number of letting agents in the proposed area you wish to buy, in order to gain an insight into rental demand - this is also a good way of finding out how much rental income you can expect.

When you look to purchase your own home, a lender will look at your income in order to assess how much they would be prepared to lend. With a buy-to-let mortgage however, mortgage lenders calculate how much they are willing to lend in a different way.

Many lenders will expect rental income to cover at least 130 percent of your monthly mortgage repayments - so make sure that you calculate your sums correctly. Once you have made your calculations and found a suitable area you wish to buy in, you can start shopping around for mortgages.

Many lenders offer mortgage advances on buy to let purchases of up to 75 percent of the property value. On certain buy to let schemes however, it is possible to borrow as much as 85 percent of the value of the property.

There are many different buy-to-let mortgage deals that can be arranged - You can choose between fixed, discounted and variable rates.

Some lenders may insist that you use an agent to manage the property. If this is the case then you could expect to pay up to 15 percent of the gross rental income on management fees. By using the services of an agent you can expect them to source tenants on your behalf, check references and collect the rent.

As with other types of mortgages, it will be a condition of the lender that you have in place a buildings insurance policy at the very least. Contents cover is also highly recommended however it is not usually obligatory.

Buy To Let Action Plan

1. Stay clear of areas that are already saturated with buy-to-let properties - supply can often outweigh demand, which could make finding tenants a difficult task.

2. It pays to negotiate! It may seem as though competition is fierce for property although if you are prepared to be patient then you could land yourself a bargain at well below market value.

3. When decorating, it is a good idea to invest that little bit extra. Ask yourself, could you see yourself living there? If not then you may wish to review your decor.


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Author: James Copper

Nearly every type of business needs a premise from which to operate - In the case of a small business it may be possible to work from home however as most things do eventually grow and expand, it may be necessary to obtain larger working facilities.

The majority of businesses will require their own premises and are generally faced with the option of either renting or buying. The obvious choice for many would be to buy, finance allowing however there are advantages and disadvantages to both sides.

Advantages Of Buying

Retention of ownership - most businesses will need to take out a loan in order to purchase property. In the case of taking out a mortgage, the business is able to raise the capital without resorting to selling a share in the company, either to an interested party or by way of issuing shares. In this case the original owners will have retention of both ownership and control. The mortgage lender will have the right to charge interest on the loan amount outstanding however it will have no interest to a share in the business or its profits. The lender has an interest solely in the property and is only permitted to call in the loan in the event of borrower default.

Taxation - Businesses are permitted to make mortgage interest payments with pre-tax money that is deductible for tax purposes as expenses.

Cost and cash flow management - A commercial mortgage allows a business access to finance that would not usually be available. They can offer a degree of flexibility in designing a repayment scheme to suit the needs of the business, which may include fixing the repayments for a set period of time. Mortgage repayments tend to work out lower than rental payments and the borrower in this case will know what the payments will be in advance - this fixed payment can often aid the business with cash flow and managing costs. Businesses that rent a premise can be exposed to market conditions which could result in payment fluctuations on review.

Security of tenure - Businesses and individuals that rent have very few guarantees beyond the end of the current agreement.

Asset appreciation - This of course is by no means guaranteed however property has long been viewed by many as a very sound investment. The business or individual will have an asset which can potentially grow in value, just like residential property - this could subsequently increase the value of the business.

Financial flexibility - Taking out a loan by way of a mortgage to buy a business premises can free up money held in the business for other purposes. Borrowing money outside of a mortgage could prove to be more costly. It may also be possible to remortgage in order to raise finance in the future by using the available equity.

Retirement - Many people decide to hold property in a pension plan which can offer a tax-efficient way of buying the premises and boosting pension benefits.

Disadvantages Of Buying

Financial difficulty - Like any other mortgage, the mortgage lender will hold a legal charge over the property. Nearly all businesses meet financial difficulties at some stage which could potentially result in mortgage payments being missed. In the event of default the lender may take steps to repossess the property - if this happens then it would leave the business with nowhere to operate from.

Relocation - In the event a business needs to relocate, it is relatively easy to terminate a rental agreement. In the case of an owner occupier, the process is of course far more complex.

Flexibility - A business that rents has a far greater amount of flexibility that a business that is tied to a mortgage. Buying would only make sense if the business is confident over its future which encompasses two main factors - relocation & business expansion.

Drain on Capital - When it comes to getting a deposit, this can mean a huge drain on the business capital as this is usually taken from the profits or reserves.

Maintenance and upkeep - The owner of a property has management responsibilities that a tenant would not usually have - maintenance and upkeep of a property is a constant process and can prove to be very expensive.

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Author: Ron Victor

A real estate investor is a person who is engaged in the transaction of buying and selling of real estate property. When a person is interested in the real estate property, surely then he will engage in this transaction. Dealing in a real estate transaction makes the real estate investor more knowledgeable and experienced. When the investor is engaged in the transaction of the real estate, he has to follow some necessary steps and techniques to makes his transaction a successful transaction. It is in the hands of the investor to make his transaction a successful or unsuccessful one. Other than the changes of the real estate investing market, the investor can make other criterions a successful criterion.

Commitment

The important factor to be noted by the investor is to analyze the deal carefully. The investor is to focus mainly on this issue. The investor is to make inspection on the transaction whether it gives more profit and it is a legal one. The investor is also required to collect information relating to the transaction. The information collected and the inspection made on the transaction will be useful to the investor to determine any further proceeds in the transaction. Only after collecting the adequate information needed for the transaction, the investor can engage into the dealing of buying and selling of real property. The investor is to make his commitments very carefully and legally, because once commitment is made its difficult to come out from the transaction.

Evaluation

When the investor enters in to a transaction, he has to analyze whether the transaction will fetch him a high cash flow. The investor has to evaluate the real property at the time of buying and selling of the real estate property. Evaluation is the important factor to be noted, because the investor may buy or sell the property even in a loss. To avoid or overcome this problem evaluation is to be done on every property the investor dealing. This investigation not only helps the investor to overcome the problem, but also helps realize the fact.

Adequate knowledge and experience

The other main factor needed for the real estate investor is the adequate knowledge and the experience on the real estate investment. When the investor gains this knowledge then it becomes the easier task for him to make his buying and selling transaction a profitable venture. When the investor does not make use of this information, he may also suffer a loss.

Market changes

The real estate property dealing must have enough cash flow, leverage and equity. Every investment made will have uncertain risk. It is difficult to predict the real estate market, because it may have changes at any time. The property market may find boom or depression at any time. When it is a boom the investor can sell the property at a profitable rate but buy the property at an unprofitable rate. While at the time of depression the property can be sold out at an unreasonable rate and buy at a fair rate.

When the investor notes the changes in the market conditions, then he can easily make his decision. The investor has to evaluate the information, transaction and market changes to make his deal an effective source. Involvement and business spirit makes the real estate transaction a successful transaction.

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Author: Krista Fracke

Outdoor rooms are all the fashion in areas where the climate can support the use of them. Florida is a great example of such an area. With an unrivalled climate and number of sunny days per year the outdoors is a perfect spot to add a functional room that will add thousands in value to your home. Plus it can take advantage of available space while creating a beautiful and useful room that is not hindered by walls and conventional restrictions.

There are some guidelines that you should follow while planning an outdoor room. You should set out the amount of space needed beforehand and make sure that you make contingency plans for any needs that may crop up along the way. The usual choice for an outdoor room is an additional kitchen/dining area. As kitchens are the most social room in a home, it makes good sense that this should be the outdoor gathering spot. Be sure to allow enough space for all the necessary amenities like a grill, sink, counter, and seating. Another thing that must be considered is the effects of the weather and nature. If the area is under direct sunlight all day long then a gazebo or pagoda will be necessary for the area to be comfortable. Also, netting might be a good idea if the area has a tendency to be frequented by insects.

There are many ways that you can personalize this kind of space. The decoration of such an area will be quite different from traditional decorating due to the lack of walls and other normal "art spots." However, the effect can easily be achieved by the use of plants, creative seating and knick-knacks and decorations on the flat surfaces. Also take into account the effects of lighting for the evenings and try to create a special aura for the area. As an area where much of the year is spent outdoors, Florida homes are the idea spot for these rooms. The addition of one will surely see a great ROI when them home sells.

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Author: Krista Fracke

For years you have been scrimping and saving, preparing for that day when you could purchase your first house. Now, that day has arrived. However, now that it is here, it becomes evident that the process of home buying can be a little overwhelming for a first time buyer. So, what to do? first of all, don't panic and rush out and put a down payment on the first house you see. This is going to be a big purchase so you will want to plan your steps very carefully.

1. Get your credit sorted out. Having a good handle on your finances will only make this process easier. It's great that you have a down payment set aside, but have you secured financing yet? Having financing arranged before you start looking for a home is one of the best moves you can make. However, having financing arranged before you start looking means having the credit to get pre-approved for a mortgage.

2. Get pre-approved. Being pre-approved for a mortgage allows you to shop worry free and it lets you know ahead of time what you can afford. Having your mortgage pre-approved will also be an attractive asset to realtors and home owners as it shows them that you are a serious customer.

3. Be Choosy. This will likely be one of the more difficult steps. Buying a home is allot like looking for a rental property but with much more stress and emotion, and a much bigger payoff. If you are not sure what you should be looking for in a home, consult extensively with your realtor and friends that own homes. Start thinking about what you need in a home. What are your requirements in terms of rooms, location, amenities and other such aspects? Making a list is the easiest way to keep track of the necessities.

4. Get an Inspection. After finding the home that you can see yourself purchasing, have the home inspected. This is a huge step that must be observed. Most people include a subject on the purchase contract that the home must pass an inspection. Never skip this step! There could one of many things wrong with the home you have chosen that the owner may not even know about. Inspections will survey the plumbing & electrical systems in the home as well as the roof and the structure itself. Anything that is amiss can be utilized as a bargaining point in the sale of the home, or if severe enough; can simply be reason to walk away from that particular home.

5. Close. Assuming that everything has gone according to plan you should now merely be concerned with your possession date. The home passed inspection, your offer was accepted, and the deal closed. Congratulations! You have bought your first home!

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Author: Krista Fracke

Welcome to the home buying market! This is an exciting time to be purchasing a home, with an array of new homes coming onto the market these is some excellent value to be found. All it takes is a little time and effort in looking and you can find your dream home for a dream price. But you should always be a smart buyer. There are those out there that will take advantage of someone who is eager to buy so, if you do your homework; the deals will follow.

The first thing you should do is get your finances in order. This involves finding out your credit score, fixing any outstanding issues affecting your credit, ensuring that these are properly released from your report, and finally securing your mortgage before you start looking. When I say secure your finances I do mean being pre-approved fully, this is different from a pre-qualification in that a pre-qualification does not "secure" you any amount of money, it is simply a judgment of whether or not you qualify to receive a mortgage.

Next, start working with a realtor that knows the area you are looking to buy in. This is a huge step so be prepared to move from merely wanting a home, to actively looking for one. Sit down with your realtor and make a list of things you require in a home. This is a list of those things that you can absolutely not be without. Once this is compiled, then list the things that you would like. With these lists ready, its time to start looking at homes. Your realtor should be able to provide you with a complete list of homes that fit your criteria, and some that come close. Also, they will be able to guide you to properties that fit your pre-approved mortgage amount.

After finding a home or homes that suit you make sure to have a certified inspector take a thorough look through the home. Have them check all questionable areas of the home. Don't forget to have the inspector check for mold as this is something that is often overlooked. If the home passes the inspection than carry on with the offer if you are so inclined. If it doesn't then either continue shopping, or utilize the necessary repairs as a bargaining point. Usually you should be able to have the cost of these repairs deducted from the cost of the home. Its a good idea to bring in your own contractor or expert to get these estimates. By doing this you know that everything is above board.

Buying a home is a huge process and one that you must be careful to handle with all due care and attention. Such an important investment can benefit you financially for years to come as well as providing safety and financial security. Don't sell yourself short on what you buy as your home. After all, your family deserves the best don't they?

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Author: Real Estate Advisor

Based on several factors that include lifestyle, retirement, opportunities for fun and investment, International Living magazine has chosen the world's seven hot spots for 2007. Still virtually unnoticed by the world's tourists, these seven regions are the best international real estate markets in 2007. They are:

1. Montenegro: This spectacular European country on the Adriatic Sea that many have almost forgotten has topped the list of best international real estate markets. The aquamarine sea, enthralling mountain backdrop, captivating summer villas and quaint fishing villages are just a few features of this jaw-droppingly beautiful country. An ideal tourist spot, this country has been adjudged the 'fastest growing travel and tourism economy' by the World Travel and Tourism Council.

2. Cartagena, Colombia: This is an ancient walled city embellished by magnificent Spanish colonial architecture and flanked by white-sand beaches. The city offers a warm weather, affordable lifestyle, and world-class diving and snorkeling for tourists and locals alike.

3. Malaysia: Southeast Asia's top retirement haven, country is a very affordable destination. Malaysia offers a western lifestyle and a host of attractions including modern infrastructure, cheap accommodation and innumerable cultural charms. Its beautiful white beaches and clear blue waters offer sailing, diving, snorkeling, etc.

4. Calabria, Italy: A sunniest corner of Europe, Calabria is a beautiful peninsula that is enveloped by clear silver-blue sea on three sides. Life happens in a very leisurely manner in this place that possesses all the charms of a medieval village. A promising real estate market, the region is well connected by the low-cost Euro-carrier RyanAir.

5. Ciudad Vieja, Uruguay: This is another of the world's inexpensive cities that remains undiscovered yet. The city has seen a booming real estate market since 1995 and the upward trend is sure to continue through 2007 too. Also ranked as one of the top 10 cheapest cities in the world last year, Ciudad Vieja remains one of the best places to invest this year.

6. Honduras Cloud Forest: With acres of mountain forests of breathtaking beauty, this mountain paradise is just minutes from a charming beachside town and an international airport. One can access this town by air in less than 2 hours from many places in the U.S. With the area poised for a real estate boom in a few years down the line, now is the time to buy.

7. Mexico's Flamingo Coast: An enticing stretch of coastline with dozens of quaint little beach towns, side-by-side, the Flamingo Coast offers great beachside living and a laid back lifestyle. Its warm weather, white sandy beaches, emerald-green waters and cheap rentals are some of the attractions the region offers.

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Author: Real Estate Advisor

If you fancy moving to a top-notch location to retire, this article is a must-read. In its recent report, Bizjournals.com identified the top cities across the U.S. favored by the senior residents. The website analyzed the cities that had the fastest growing senior populations and came up with the most popular retirement havens.

Bizjournals took into account cities that had experienced a rapid growth in the population of senior residents in the last 5 years. The study compared 938 markets in eight statistical categories to make the list of the top retirement communities of America which included beaches, mountains, small towns and big cities.

The top 10 hottest places to retire in according to Bizjournals are:

1. Gardnerville Ranchos, Nevada
2. Punta Gorda, Florida
3. Pahrump, Nevada
4. Crossville, Tennessee
5. Homosassa Springs, Florida
6. Sebring, Florida
7. Del Rio, Texas
8. Brevard, North Carolina
9. Georgetown, South Carolina
10. Ocean Pines, Maryland

The top city to retire in, Gardnerville Ranchos, Nevada, is surprisingly a small community located a few miles southeast of the beautiful Lake Tahoe. The community is famed for its natural beauty and is within 4-hour drive from San Francisco, San Jose and Sacramento areas. Gardnerville Ranchos saw an amazing population growth of 45 % in five years, between 2000 and 2005, among senior residents. This growth rate is nine times that of the country's population growth rate of 5 % for senior citizens. The city has 19 % of residents who are in the age group of 65 and above, which is much higher than 900 of the 937 other markets that were reviewed in the country.

These top 10 cities to retire indicate that senior citizens prefer the Sunbelt; with all these areas located in the South and Southwest. Another interesting fact is that the retirement cities in the top 10 list range from small to medium sized with the largest being Punta Gorda, Florida having a population of 1,57,500 and the smallest, Brevard, North Carolina with just 29,600 residents.

Although the Sunbelt attracts the seniors from the Eastern and Midwestern with its warm weather and quality of life, other locations such as the Atlantic and Pacific coasts and the Great Lakes region are also gaining in popularity among the retirees.

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Author: yaken schecher

As per the survey of a global hospitality consultant, M/S HVS International, hospitality industry and real estate India continues to have good time in future. As per the study, Bangalore has enjoyed highest room occupancy of 82% with highest average rental rate (ARR) of Rs.12,100/- The occupancy and ARR, in respect of other cities, such as Kolkota pegged at 77% & Rs.4500, Chennai 79% $ Rs.5850 and Delhi 78% & Rs.9750 respectively.

Though traditionally, April to August is considered to be a lean season for hotel industry in India, yet there are certain destinations like Kerala and Goa which are round-the-year-destinations barring weekly fluctuations, therefore there is huge demand for real estate property in India But as per the statement of Mr.Jagmohan Mishra, V.P(Operations) Bharat Hotels, there is buoyancy in the hotel market of metros. A positive point for Goa is that meetings, conferences, exhibitions as well as wedding markets are usually at an increasing pattern being a sea-shore and congenial climate whereas non-metro tourist destinations such as Agra and Jaipur etc. will face a dip of 25% to 45% in their occupancy and ARR in non-peak season i.e. April to August.
 

Author: Lalsa Verma

) Current Status

Over the last one year the residential property in National Capital Region (NCR) has seen it all. While prices in Gurgaon-Manesar area saw an 8-10% fall, in Rohini and Kundli there was a 30-35% jump. Prices in major upcoming locations in and around Delhi, such as Dwarka, Faidabad and Noida continue to grow at a steady pace of about 10-15%.

Gurgaon

Between the years 2002 and 2005, prices in this area had seen a 10 fold jump. But in 2006 has seen residential prices coming down from INR 3,500 – 3,600 per sq ft to INR 3,200-3,300.

Dwarka

Towards the middle of 2005, due to completion of the flyover project and metro connectivity the prices saw a sudden 40-50% jump. The current prices are close to INR 3,500 per sq ft.

Noida

Prices in Noida sectors bordering Delhi are about INR 4,100 per sq ft. against INR 3,700 almost a year back.

Faridabad

In Delhi bordering areas, such as Surajkund, prices has gone up to about INR 2,500 per sq ft from INR 1,800-1,900 in the last one year.

Kundli

Kundli area, on the northern borders of Delhi, which was just about INR 1,200-1300 per square ft in Jan 2006, has grown by 40-50%.

B) Economic indicators

IMF latest report on India with gross domestic product (GDP) continuing to grow above trend, increase in international oil prices not yet fully passed through, credit and asset prices buoyant, and monetary conditions accommodative, the risk of over heating cannot be ruled out.

However, IMF has revised its 2006-2007 growth target for India to 8.9%.

"India Strategy" report by ABN AMRO Indian economic growth is being driven by a combination of structural changes and cyclical upswing. Cyclical risks may impinge on short term growth and could affect short-term growth and profitability but the structural story remains intact. Of these risks, the rise in interest rates seems to be the most critical. Rising inflation is the other key cyclical risk. While the current bout of inflation was initially driven by conventional supply-side factors, the contribution of demand factors has increased.

Other risks include –

1) The possibility of correction in US growth - Moderation in US growth will take a toll on Indian exports. The degree of association between Indian exports and US growth has increased over the years and is fairly significant. A slowdown in exports is bound to hurt overall growth.

2) Rupee appreciation – The Indian rupee should continue to receive support from Robust capital inflows in 2007. Subdued oil prices relative to 2006 should help bring down the current account deficit and reduce the downward pressure on the rupee.

While structural changes is improving fiscal situation, demographic change is manifesting in consumption growth and improvement in productivity. Infrastructure spending is the key growth driver.

C) Other relevant indicators

Entry of hedge funds

Hedge funds are aggressive investment vehicles of the wealthy international investors, known for their complex and high-risk trading strategies. They are buying financial instruments that Indian property developers have sold to raise money from overseas markets. And by doing this, they are indirectly controlling a slice of the country's fiercely growing property market. No one knows how big the slice is, but bankers say close to 50 hedge funds are active in Indian realty papers in the overseas money market. These deals are happening outside the radar of Indian regulators, in offshore tax havens like Mauritius

It's not a one-to-one deal; Indian developers don't sell securities to the hedge funds. They issue shares and hybrid instruments like optionally convertible debentures and preference shares to global real estate funds owned by big banks and Wall Street bond houses. The money that flows in to India is foreign direct investment (FDI), allowed under the automatic route.

Realty transparency index for India

Real estate consultants Jones Lang LaSalle is working towards launching an India-specific transparency index by 2008. The index, first of its kind from JLL stable globally, will offer prospective investors and clients a scientific measure of the non-price factors influencing the country's real estate market.

Both foreign and outstation players are keeping a hawk's eye on India properties, primarily because of the labour cost, access to labour and real-estate cost.

Unabated rise in home loan rates

During the last two – and – a – half years alone, (floating) rates have increased from 7.5% to 11.75%, forcing the EMI for 20 year loan to go up by around 35%. With interest rates gradually crawling higher, players are worried that demand for property could be hit. Fears that property prices could be headed for a meaningful correction seem to be prompting investors in stocks of real estate companies to jump ship. Most realty stocks, which until a couple of months ago were being chased by enthusiastic investors, have shed 10-25% over the past one month.

Over the past three years, the housing sector has witnessed a CAGR of 60% to 65% on factors like easy lending rates and accumulated land bank (land purchased at low prices prior to the real estate boom). Hike in lending rates and peaking real estate prices could force the sector towards a slowdown.

The rising interest rate scenario coupled with the rising property prices will affect the off take; however, the impact is not likely to be significant. Merrill Lynch has forecasted that the Indian realty sector will grow 7.5 times from 2005 to 2015.

To read more about the happenings in the world of real estate visit http://www.indiapropertyauction.com

Regards

Lalsa

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Author: Lalsa Verma

Since 2002, we have seen a bull run. A similar trend was seen in 1992. From the year 2002, this is the 5th bullish year. In 2001, if we would have talked of such rates, people might have laughed. But now we have seen such prices in reality.

We shall try to look at all the factors, which have contributed to such tremendous growth

* Demand for residential property is still prevalent in India and it will remain the same even for the next decade. So, there is no real problem with demand.

* Bank's credit policy is still investor friendly, the interest rates have gone a little northward. Like ICICI currently raised the interest rates by 0.1 per cent. So, housing finance is not as favorable a factor now as it used to be.

* IT & ITES industry is still booming and with the last quarter results we can see no problem with IT & ITES industry in the coming years. In fact, IT companies are making huge investments in their infrastructure and that is good for real estate industry. The industry is moving towards owning the office space rather than leasing them.

* Big cities have reached their saturation. We can see state government developing the smaller towns like Karnataka, Hubli and Mysore as next IT hubs.

* All the other sectors are still doing well but price increase in cement and steel with very limited supply is a worry for the real estate market.

* Increase in first time home buyers and decrease in the average age to buy the first home has bought more residential demand.

* Changing lifestyle and the raising standard to living has provided condominium living a preferred choice, which has given a boom to the realty investment.

CASE STUDY: Market Trends- Delhi NCR Real Estate Market

* Commercial and residential real estate market

* Commercial Real Estate Market

With NCR becoming a preferred destination for MNCs for their requirement of Office spaces, the demand for Commercial Real Estate is escalating every quarter. Statistics reveal the positive growths of the demand in the commercial real estate office. Hence, this has attracted the attentions of the all major developers. They are coming up with commercial complexes to cope up with the ever increasing demand for offices spaces in NCR.

Delhi National Capital Region in India has seen commercial Grade A space absorption increase by 42% in the first seven months of the year Close to 5.1 million sq ft. Gurgaon, in the first six months of the year, accounted for about 63% of the total absorption of commercial space with a total of 3.2 million sq ft. Rentals for legal commercial properties in New Delhi and its suburbs have risen following the drive by the Delhi Municipal Corporation to seal illegal constructions and is list is unending.

The real estate industry analysis for NCR especially by Cushman & Wakefield and other sources show that 75% of commercial space taken in Gurgaon in the past 2 years have been by IT and ITES companies. Analysis clearly shows that IT and ITES companies are the major drivers of commercial upsurge in the region. This can be further substantiated by the report in ' The Economic Times' dated 04 Dec 06.

* Residential Real Estate Market

NCR Real estate markets are one of the most high activity markets in India and has seen highest ever capital values. The residential investment market for the first time in the last two years has seen reasonable growths. Thus the residential markets are going to sustain in future and demand is going to rise.

Tier II cities including Jaipur, Kochi, Pune, Nagpur, and Chandigarh have become the most promising investment destination as well.



The commercial markets are showing a great upsurge and the residential are stable for the last 4 months or so. I recommend a commercial proposition for a short to mid term duration which would further put back pressure on residential front in the NCR Realty markets. So for a long term proposition both commercial and residential would give a similar kind of return and hence both throw an equal opportunity for reasonable growths over a period of time.

* Primary and secondary market

- Primary Market

The trend of short term traders booking profits within a span of 4-6 months has weakened considerably. This has been replaced by more informed and healthy transactions led primarily by investors who are seeking long term positions or end users.

- Secondary Market

Resale market has been adversely hit in Delhi with major areas showing no growth or decelerating growth figuring it out to approx 10% as against 40% last time Suburban Gurgaon has shown a 30% growth in residential capital values this quarter. Due to high prices resale deals have come down by 30%.Though this trend has not had any significant impact on prices yet, it may have implications in the long run. The major reason for this drop in property sale transactions is because of the initial investors ¡X those who booked apartments by paying 10 to 15% of the total cost. They comprise, in most cases, cash-rich financiers, who make up 30 to 50% investor in any real estate project.

- Rentals

Have risen marginally varying from by 20-25 per cent depending on region to region.


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Author: Lalsa Verma

Rental market soaring high and posing to be the most dynamic sector in Indian business scenario

Real Estate seemed to be the best investment opportunity with a growth rate that was even higher than the growth rate of our economy. But then started the realty blues, correction in prices, fear of the real estate being unreal and a bubble being on the verge of a burst.

And now there is a new wave with which real estate may surge once again, The Rental Property Market. At present the country's commercial and residential real estate rental market has a price tag of approx $50 billion, and is expected to grow 25% on a yearly basis. There are numerous factors that contribute to this incredible situation in rental property market. Major factors that are responsible for bringing about this change include growth in information technology/information technology-enabled services industry like BPOs as they are renting large commercial spaces in order to expand their business process in India. Apart from this, emergence of India as an important investment hub in the world market, growth in foreign direct investments and simultaneous growth in the purchasing power of the Indian middle class plays a pivotal role.
With our industrial sector growing super fast, youth being more career conscious and BPOs churning uncountable employment opportunities we find brilliant talents from all over the country migrating to big cities like Delhi, Mumbai, Chennai and Kolkata. People coming to these places in large numbers have created troubles for required accommodation in these big cities and this is time when renting property comes into the scene.
In order to overcome this acute scarcity for good accommodation in the big cities and surrounding areas which can meet the requirements of the population coming to the cities for employment, people began renting their properties and soon realized that it is an amazing source for income as well.
Also for young people despite of the handsome salaries and attractive prerequisites they earn owing a property is not a matter of fun and hence the option with which they are left with is to go for rented accommodation. Moreover with people aspiring rich lifestyle and an accommodation that matches their taste further drives the prices of rental property up the wall and makes it a lucrative business opportunity.
At this point it can be very conveniently said that rental property market has great potential and can turn out to be a reliable source of income generation.
The advantages of investing in rental property market can be summarized as below:

1. Demand for accommodation is ever increasing and people are willing to pay huge amounts for an accommodation that matches their taste and meets all the mentioned specifications.
2. In case immediate selling of any property is not possible, renting the accommodation is a good business and the returns are amazingly high.

3. Only apartments in multistoried buildings are not in demand but people seeking independent houses for rent are also many. As a result investment in building independent houses for renting purpose is also a money-spinning business with high rate of return.

To read more about the happenings in the world of real estate visit http://www.indiapropertyauction.com

Regards

Lalsa

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Author: Lalsa Verma

Mission decongesting Delhi to ride on the back of 2021 Master Plan

Delhi being the country's capital has always managed to escape the questions pertaining to inadequate infrastructure, congested road networks leading to traffic snarls, residential land being used for commercial purpose etc etc. But now with water raising above the danger mark it has become impossible to turn ones back on public. Those who once were reluctant in giving answers to simple questions are left with no option but to prove their worth to nation.

One such effort is being done in the name of "2021 Mater Plan". The plan is laid out in a way to accommodate the ever increasing Delhi's population which is expected to rise to 2.25crore by 2021. The Master Plan has four focus areas namely commercial, residential, unauthorized colonies and farmhouses that are the greener pastures of Delhi. Following is the glimpse of how these four focus areas will be worked upon:

a) Commercial Infrastructure in Delhi: This plan has all the intentions to facilitate commercial activities as the plan allows it to be undertaken near the residential area and avoid the killing traveling part. Plan gives permit to all the streets that fall in the urbanized part and notified by appropriate authorities to be used for commercial purposes. Also, the residential areas those were tagged as commercial areas in the Master Plan of 1962 can be utilized as and for commercial purposes.

b) Residential Infrastructure in Delhi: This Master Plan has been designed keeping in mind the residents in particular. The plan offers various features that are of high benefits to all the Delhites. Residents under this plan will be permitted to have ground + 3 floors instead of ground + 2 floors as per the previous laws. People can also use their spare land (minimum 3000 sq mt) and by combing land pieces together, and appointing a builder to make constructions can derive profits out of it. This master plan also has 22 hectares of land kept aside for residential purpose where only group housing and construction of apartments will be permitted, hence solving the residential problems of people to a great extent.

c)Regulating the unregulated: In Delhi roughly 5000 hectares of land falls in the unregulated and unauthorized sector. The plan aims to work upon the unregulated land and authorize all the existing unauthorized colonies here in Delhi.

d)Farmhouses in Delhi: Last but certainly not the least is the fourth focus area of this Master Plan. Owing farmhouses or greener pastures in Delhi is a common trend and now no more a thing to be flaunted by the rich. With this type of land being idle most of the time, the master plan provides a way to reap huge profits out of such land as they permit development of Group Housing on such land.

With the Master Plan being highly active in country's capital one can hope the congestion problem of India's capital being evaporated by 2021.



To read more about the happenings in the world of real estate visit http://www.indiapropertyauction.com

Regards

Lalsa


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Author: Lalsa Verma

Hike in home loan rates-Industry remains unaffected but not the consumers

In past few decades India has witnessed a plethora of events; boom in IT sector, BPOs & KPOs and now it is real estate. Real estate in India has become the most lucrative investment opportunity with a growth rate that is even higher than the rate of economy growth of 9% p.a. With property prices going through the roof it has apparently become impossible for MIG & LIG to own or even dream of owning a home. And a few reasons for this hike being increase in the value of land, highly active status of retail investors who invest in only for profit and of course the opening up of FDI in real estate.

With real estate booming, churning large chunks of profits for builders & making deep holes in the pockets of consumers, it is set for another twist. A relentless increase in home loan rates. This hike of mere 0.5-1% which seems to be too trifle to make an impact on the growth of the real estate industry poses to be a ruthless mammoth for the common man. And why I prefer calling this mere hike a mammoth will explain through an e.g., a man who has taken a loan of Rs. 2500000/20 years has an EMI of Rs. 19400 but with this hike in rates his EMI will go up to Rs. 24500. And with this additional expense of Rs. 5100 the monthly budget of a common man will surely go for a toss.

Whenever a problem arises it is bound to have some solutions to it and similarly even we have some solutions to this problem. But will these solutions actually help the common man is a million dollar question.

Following are the few options available to the consumers:

1. SHIFT TO ANOTHER LENDER: It is a prudent option. If the new lender is providing a floating rate that's atleast.5% less with the balance tenure of not less than 7-8 years then this is an option that you can bank upon despite prepayment charges that you might have to pay to your existing lender.

2. UTILIZATION OF YOUR SAVINGS: Your savings can always be used as a mode of rescue. You can use your savings and pre-pay a portion of your loan to keep the EMI at the same level. In most of the cases banks do not charge for partial pre-payments.

3. INCREASE THE TENURE: Check with your bank if they are willing to increase the loan tenure and keep the EMI at the same level. But remember that your bank will not increase the tenure beyond the retirement age (60 years for salaried and 65 for self-employed)

4. OVERDRAFT LOANS: You can also take overdraft loans against your savings instruments to pay the increase in the EMIs. It is a viable option as for small fees you can get huge amount.

5. ADDITIONAL LOAN ON THE SAME SECURITY: Approach your existing lender to provide an additional loan on the security of the same house. Most probably your existing lender will accede on granting you additional loan considering the hike in property prices in last two years.

6. ALTERATIONS THAT CAN BE DONE IN YOUR EXISTING BUDGET: Perhaps the best and the most viable option of course is to rework your budget and cut out the non essential items and try to manage in your monthly budget

.

The above mentioned solutions are a few options available to the common man and are expected to clear up if not all, al least few tension wrinkles from his forehead.

To read more about the happenings in the world of real estate visit http://www.indiapropertyauction.com

Regards

Lalsa

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Author: Hamid Grinage

Oakland California real estate shot through the roof during the period from 2001 to 2005, with appreciation reaching 120% in some areas. Homes were routinely selling for 60-100k over asking price and more! It was not uncommon for a desirable property to fetch 30-40 offers. I remember one home in the Oakland Hills went for over 300k over asking price!

However that type of market by nature is not sustainable, and the current market is proof of that. Starting in early 05', us Realtors started seeing a noticeable slowdown in activity, which has continued to this day. The ironic thing is, prices are still high. They have taken a slight dip(approximately six percent) in the last year, but our median price is still around 500k. There is much more opportunity for buyers right now, because there are plenty of homes on the market which means buyers have more choices and more negotiating power.

Sellers have had to come to the realization that they can't just get any price they want for their home, and the days of putting up a sign and the next day it's sold for 60k over asking price are OVER. Sellers have to do more to prep the home for sale now, and staging is much more common. The most important thing of course if price though. I don't care how nicely a home is staged, if it is not considered a value compared to the others in the area it WON'T SELL. This is, unless your home happens to have historical significance or is in an especially desirable area.

One example of an exception to the rule was a house that just closed last week in Piedmont. It had great square footage, (I personally viewed it on our office tour) but it was in need of a lot of TLC. The bonus was that it was in a particularly exclusive neighborhood in Piedmont and had been designed by a locally renowned architect. The agent also had contractors and interior designers at the open houses to help give buyers ideas. The home went on the market for $1.4 million, and ended up selling a few weeks later for over $1.7 million! Yes, 300k over asking price!

However the reality for most sellers of Oakland real estate today is that they need to price their home attractively and prepare the home for sale if they expect to get it sold.

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Author: Hamid Grinage

Over the past six months, sellers of real estate in Oakland and surrounding areas have begun to realize that the market is definitely not what it was a couple of years ago. In all reality, the power now lies with serious buyers who know they have more room to negotiate when making offers. Sellers who are not willing to look at hard numbers of recent sales, or who are not realistic about the condition their home is in will end up having their home stay on the market for months at a time and eventually expiring. By the time they realize they should reduce the price, it's could be too late as the listing may have "gone stale".

The two most important factors that sellers need to be thinking about is presentation and price. The best strategy for sellers is to prepare the property for sale as best they can by increacing curb appeal, performing cosmetic upgrades if necessary and possibly staging the interior. Next, the seller must work with a competent Realtor who is familiar with the Oakland/Bay Area market. The goal is to establish a price that WILL draw attention to the home and make it stand out as a value compared to the others on the market. With inventory of homes being high, buyers have more homes to choose from which means more competition for the seller. In some cases, I take my sellers out to see other homes that are on the market that compare with theirs. This way, they get a first hand look at how the other homes on the market stack up to theirs.

As the market corrects itself and inventory goes down, sellers will have it easier. Simple supply and demand will bring competition back up as more and more buyers try to bid on the same houses. Contra Costa county is currently seeing inventories soaring through the roof, with many homes sitting on the market for four months and over. In such markets, the pricing strategy I mentioned above becomes even more critical. Since interest rates remain low, buyers still have great opportunities out there.

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Author: Real Estate Advisor

If you are one of those home owners who are poised to sell your home online, then it is time you took your digital camera and got a few shots of your home. As vital as it is to sell your home on the Internet, it's also imperative that your home sale information is accompanied by a few high-quality pictures of your home.

So what's in a picture? A picture has the unique advantage of visual appeal that always stands one step above text. With more than 80 % of home buyers using the Internet to find information, and 24 % of buyers learning about the homes they purchased from the Internet*, the importance of Internet cannot be denied. This only stresses the need for good home photos while selling your home online.

A good photo of your home will always grab people's attention. A home listing accompanied by good home photos will sell your home in a much better way. On the contrary, bad home photos will ruin any chances you might have otherwise with prospective home buyers.

So, if you are going to put your home for sale on the Internet, it would be ideal to hire a professional photographer to get some good pictures of your home. Buyers expect to get the full scoop on the homes they see, and posting photos of different parts of your home is an excellent way to convert prospective buyers. Also, good photos are essential for virtual tours, which provide a 360 degree view of the rooms in your home providing a virtual walk through of the entire home.

Because most home buyers scan through the 'for sale' ads very quickly, it is important to make your home photo stand out. Here are five tips to make your home look great on camera.

1. Make sure that you use good photography equipment so that the photos are sharp and the colors are retained.

2. Before taking the photos of your home, arrange your home carefully and remove any clutter present on its outside and inside. You may want to move around your furniture to highlight your interiors. Also try to include flowers in your pictures to add color.

3. Capture the pictures in natural daylight which will make your home look brighter. Avoid shooting in the dark.

4. If you are using a wide-angle lens, ensure that they don't distort the view.

5. Finally, take lots of photos so that finally you would get some very good shots of your home to choose from.

* Source NAR

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Author: Groshan Fabiola

A good credit score is not only vital to financial health, but to many other aspects of your life as well.

But what many people do not realize is that there are many things they can do to unintentionally sabotage their financial picture and their credit score as a whole.

The credit score is a very sensitive thing and can be greatly affected by things that the regular consumer does that they think will have little or no affect on their score.

But the opposite is actually true.
Everything from opening or closing a credit card, to even moving can affect your credit score – and most of the time it is for the worse.

A recent article featured on AOLMoney.com, "Top 5ive credit score mistakes," discusses the most common things that consumers do to hurt their credit score that are actually quite easy to avoid.

The number one thing that consumers do that drastically decreases their score, and thus prevents them from receiving favorable rates and terms on a loan, is missing a credit card payment.
"It goes without saying that late payments hurt your credit. What many people don't realize is how much. 'Being reported as delinquent in paying your bills is the biggest whammy for your score,' says Craig Watts, a spokesman for Fair Isaac, the company that calculates FICO scores. A single late payment could sink you by as much as 100 points, especially if your credit history has been good up to that point."
The next common mistake that people make is maxing out their credit cards. Even if a person has a perfect payment history but has used up the available limit on their credit card, their score will suffer.

Be sure that you never use more than half of your available credit limit at one time.
The next thing a consumer can do to ruin their score is apply for too much credit at one time. Each time you apply for a credit card or loan your score is negatively affected, so make sure you limit the amounts of credit inquiries during a specific time span.

One surprising thing that can hurt a score is closing a credit card that you no longer use.
"Many folks think closing unused credit cards will improve their credit score. Quite the opposite: Closing unused accounts in fact decreases your score, Watts says. Why? You're eliminating a chunk of available credit, which then automatically increases your credit utilization, or how much of your available credit you're using. Credit utilization is responsible for a hefty 30% of your credit score, so the effects of closing a credit card with a generous limit coul