Delhi- Meerut Expressway to boost NCR Real Estate Market

Prime Minister Narendra Modi on 31^st December 2015 unveiled a plaque to mark the laying of the foundation stone of the Delhi-Meerut Expressway to be built at a cost of Rs 7,566 crore that includes construction of 28 km long 14-lane Delhi-Dasna section (at a cost of Rs 2,869 crore). The construction of Delhi-Meerut Expressway will have a positive impact on the housing supply and demand in the NCR real estate market particularly Ghaziabad, Indirapuram, Noida and Noida Extension.

The construction of this expressway would boost both supply and demand of housing in these areas, he said. Real Estate market of the areas lying in and around NH-24 is expected to grow leaps and bounds with this development project. It is expected that mainly locations like Greater Noida (West), Crossings Republic, Raj Nagar Extension, Indirapuram, Vaishali, Kaushambi and Sidharth Vihar would be benefitted the most from construction of this expressway as the development would ease the lives of people living on the Ghaziabad-Indirapuram stretch by decongesting NH-24 that connects Delhi with Meerut.

Considering the large population base in the city, infrastructural developments such as the extension of the Metro route to Ghaziabad and the construction of Delhi-Meerut Expressway project would increase the demand from both investors and end consumers.

The Rs 7,566 crore Delhi-Meerut expressway includes:

·         The construction of 28 km long 14 lane Delhi-Dasna section at a cost of Rs 2,869 crore,

·         The construction of 46 km long, 6 lane Dasna-Meerut section of Delhi-Meerut Expressway at a cost Rs 3,575 crore, and

·         The 6-laning of 22 km long Dasna-Hapur section of NH 24 at a cost Rs 1,122 crore.

Background: On 18 November 2013, it was confirmed that center not Uttar Pradesh government will build the much delayed Delhi–Meerut Expressway starting from Nizamuddin Bridge on Ring Road. Once complete, commuters will be able to reach Meerut in 45 to 60 minutes and cut travel time to Haridwar and Dehradun by almost an hour.The Cabinet Committee on Economic Affairs (CCEA) under the Narendra Modi government approved the Delhi–Meerut Expressway with construction of connected roads to be undertaken. On 2 August 2015, after years of waiting, the National Highways Authority of India (NHAI) has floated tenders for a 14-lane road on the critical section of NH-24—from Nizamuddin Bridge to Dasna (28km)—a move which is expected to ease massive congestion on the stretch.

Financial Tips for First Time Home Buyers

Housing inventories are high and mortgage rates are low, even so, it’s as easy as ever to overestimate how much house you can afford and underestimate how much it’ll cost you. Following are a few tips for making your home purchase as cost effective as possible:

1.       Own or Rent?

Owning a home is expensive. In addition to the down payment and mortgage, you’ll have to pay for closings costs, insurance and maintenance. To figure out whether it’s financially smarter to buy or rent in your area, calculate and compare total home ownership costs to rental rates.

2.       Consider Monthly Costs

Even if you can scrounge up a down payment, figure out before buying a home whether you can comfortably cover the full costs of ownership–including the mortgage, taxes, insurance and regular fix-up costs.

3.       Obtain all the knowledge about Govn. Tax Policies for First Time Home Buyer

Government of India encourages purchase of house for those families who dont have single house of their own as a result of which Govn keep introducing various tax deduction and exception policies in Income Tax for the First Time Home Buyers. So, please before going for home purchase, first obtain complete knowledge about various Govn policies, deductions and exceptions. And if there is no policy available, but there are chances that Govn will declare one in the recent upcoming period which will decrease the prices of houses in the market or will provide great amount of deduction in the Income Tax, then wait till the time Govn announces its policy.

4.       Avoid Family-Assistance Tax Traps

Before taking assistance of money from your Mom and Dad for making down payment or full payment of house you are going to purchase, note that outright cash gifts can result in big tax bills. Avoid them by structuring parental assistance as a bona fide loan with minimum interest rates set by the Revenue Services.

5.       Consider High-Deductible Home Insurance

If you’re a do-it-yourself kinda person in case of moving into a new home, consider lowering your home owner insurance premium by raising the deductible. Even if you’re buying an older home, or aren’t too handy, it might not be cost effective to pay a lot in extra premiums to insure against that last dime of potential liability.

6.       Cut Insurance Costs By Upgrading

Security systems, smoke alarms and other upgrades can cut your insurance premiums. It can also pay to insure your home with the same company that covers your car, boat or other property.

Real Estate Investing- A Start Up Guide

There’s no reason amateur real estate investors can’t profit from small, individual property purchases. As home values currently rising 3.9 percent year-over-year, and expected to rise another 2.6 percent over the next year, why not allocate some of your savings toward real estate? To get started off on the right foot, you’ll need to make some decisions. Follow these steps prior to entering the real estate market.

Evaluate your Current Finances

In general, experts advise buyers put down at least 20 percent of a home’s purchase price. But to avoid being responsible for two mortgages, many investors wait until they can pay for real estate outright.

If you do need a mortgage, you might consider living in your investment property to take advantage of owner-occupant rates. You don’t have to live there forever, either. Lenders typically require just one year of residency to lock in the lower rate for the remainder of the mortgage. Owner-occupied interest rates are much more favorable than secondary home or rental property loans.

For those fortunate enough to purchase multiple income properties simultaneously, it’s important to choose the right financing. Experts recommend that an individual can leverage his investment capital using cheap 30-year fixed-rate mortgages and buy as many income-producing properties as possible. This is how you can accelerate your wealth-building with the turnkey properties.

Determine the potential Cash Flow

House flipping (means purchasing a property and then quickly reselling it) can help you make quick profits that look easy. But most homeowners don’t profit when they sell shortly after closing. Of course, extensive renovation on a flipped home increases the potential for short-term profit, but bigger upgrades costs a lot of money. Unless you’re capable or experienced in large-scale home improvements, don’t assume you can flip a house by yourself to benefit immediately.

Renting out the property, on the other hand, is more of a long-term strategy. Pricing requires some serious calculations to attract the largest number of possible tenants, while still covering the mortgage and homeownership costs. Although you’ll aim for profit in the beginning, the real money usually flows in after the mortgage is paid.

Experts suggests that in order to compute your expected cash flows in case you have decided to rent out the house in which you are already living in, add up expenses related to the house like the mortgage you are currently paying for it, insurance premium, tax payments and amount spend on the repair & maintenance of the house annually. Then subtract the figure so calculated from the expected income by renting of House Property and then, if you are left out with some cash in hand, it would be a feasible decision to let out the property, but if the final numbers are close to zero, then you might have to rethink your decision to let out.

Today’s rental market is notoriously expensive, and competition among lessees is high. Even if you’re not looking to be a landlord long-term, it could be financially wise to rent out your unit at least until median sale prices in the region peak.

Choose your Investment Type

Many investors default to considering individual direct ownership as their only way to profit from real estate. However, partnerships (both close and limited) and publicly-traded investment trusts are designed to help investors who might not have the time, or the skills, to run real estate investments on their own. Real estate investment trusts, on the other hand, enable investors to fund multiple projects simultaneously without the hassle of day-to-day management.

Unsurprisingly, your financial capabilities, estimated profit margins and choice of investment are all interconnected. Whether you’re starting out with some Lacs or Crores, staying informed in the real estate industry — even as a passive investor — is a key to success.

Noida: An Emerging Capital

There has been an up lift in the market after the arrival of the new government, especially after the budget has set the ball rolling for real estate sector. With allocation of more funds for affordable housing, easing of FDI norms, implementation of REITs and the special focus on infrastructure development, the government has made it clear that in order to push economic growth, a special focus on infrastructure and real estate development is required. In the foreseeable future, the real estate market in Delhi NCR is going to see considerable forward momentum.

As land is a prerequisite for any kind of development, Noida and Gurgaon are the logical answers to the increasing need for housing in Delhi NCR. In terms of inventory, Noida and Gurgaon have more options than any other city in the NCR. These two areas are consequently expanding and growing and expansion opens opportunities for further growth in real estate. It is for this reason that these two cities have now got mature real estate markets for different sets of buyers and investors. However, they have very individual returns potential. In the last few years, it appears that investments made into properties located in Gurgaon have reaped better returns than those secured from Noida property. Where as, on the other hand, various recent announcements and the infrastructure uplifts of the city have made Noida's real estate market increasingly attractive.

What favours investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments. The realty market in Gurgaon has now crystallized into one most favourable for buyers in the premium segment. But the other side of the coin is that the high price points in Gurgaon suggest that properties there will no longer fetch high rates of appreciation.

With the fast-paced development in infrastructure in Noida and its vicinity, real estate growth has really picked up over the past few years. There have been announcements for many new such projects as well, which has had a positive effect on the real estate market.

The proposed extension of the Dwarka-Noida City Center to Pan Chowk wall give direct connectivity to Delhi and other NCR areas, and the project is expected to complete by 2021. The Noida Metro Rail Corporation (NMRC) has got the required approvals for the 29 kilometer-long Noida-Greater Noida Metro link from the state government, as well. Simultaneously, the Greater Noida Industrial Development Authority (GN I DA) has plans to set up its own power plant, which will provide uninterrupted power supply to the region.

Though Noida is known for its affordable housing projects, there are numerous luxury projects under ay as well as in the pipeline in Noida and its adjoining areas. Renowned developers like Supertech Ltd, 3C Company, Prateek Group, Lotus Greens and Wave Infratech have launched super-luxury projects with 3-5 BHK apartments of soon-4000 sq. ft. and priced in the range of Rs i crore to 3 crore for area with good infrasiructure, metro connectivity and good road network, real estate development in the Noida regions is picking up rapidly. This is important, since infrastructure development is the primary draw for buyers and investors into this area Upcoming major projects like the Export Promotion Zones and Taj Economic Zone along the Yamuna Expressway are likely to push the economic development of this region, consequently giving a further boost to real estate development. In fact, the positive response from buyers and investors in Noida has now made this the preferred destination for launching new projects and expediting existing ones. All in all, Noida is beginning to emerge as one of the brightest stars in Delhi NCR real estate.

Home Inspection

Home inspections are used to provide an opportunity for a buyer or seller to identify any major issues with a home prior to closing.

What is covered in a Home Inspection?

Home buyers and sellers may hire local inspectors to take an in-depth look through the home’s exterior and interior, checking the following:

1. Bathrooms: This will be inspected for leaks, ventilation and any other major issues. An absence of windows or fans could indicate mold or mildew problems.
2. Electrical: An inspector will check your home’s wiring, testing how the outlets and GFCI perform to prevent any shocks or potential electrocutions. They will check your electrical panel to make sure it doesn't present a fire hazard.
3. Foundation: While the inspector usually can’t look at the foundation (because it’s underground), he or she can identify secondary issues brought on by foundation problems, such as cracks or settling.
4. Grading: If your grading doesn't slope away from the house like it should, the inspector will let you know. Moisture seeping into your home as a result of poor grading presents a danger to your foundation and the structure itself.
5. Garage or carport: The inspector will look at your garage door to make sure that it’s operating correctly and that it’s well-ventilated (prevents carbon monoxide poisoning in the garage).
6. Heating, ventilation and air conditioning (HVAC): An inspector will check your HVAC system to see that it functions correctly. Exposed ducts will be checked for leaks or asbestos (in case of Centralize AC/ Heating).
7. Plumbing: The inspector will check plumbing, including all faucets, shower heads and visible pipes, for leaks. He will also test the water pressure and the state of the main water shutoff.
8. Roof: Inspectors will check the roof for any potential damage or leaks into your attic. He or she will also check the vents and gutters for damage.
9. Walls: The inspector will look at your siding and check for missing or damaged pieces, cracks, or signs of pests underneath.

Is there going to be Price Drop in NCR Real Estate?

As there is been a steady fall in demand in Real Estate sector of NCR and the experts say there is an urgent need for correction in property prices. In fact, according to them, a slight drop in property rates could be expected in the next few months. But, all of it really depends on how much focused builders are upon moving out their inventory. The real estate sector has been affected by declining sales due to high prices and low demand. Currently, NCR builders could be having anything between 35% and 45% of apartments in cold storage, with Noida alone accounting for as many as 40,000 unsold units.

Experts say the sale of property in NCR is currently witnessing an all-time low in the last three years and so price correction is the only way out. However, NCR builders say they are loaded with pending dues for leasing charges of existing land. With low demand and construction and input cost on a steady rise, the chances of rate cuts are low. Most of the builders are saying that they would like to wait a bit and watch how market goes and then come to conclusion.