Gold or real estate? Flip a coin

A popular term in Hindi; Roti, Kapda aur Makaan, translates as food, clothing and a house, the bare essentials for survival. While an average person toils and moils all year round so provide these for his family, the focus has shifted ever since the recent dip in gold rates. It has been a couple of years since share market enthusiasts have drifted and found their way to gold and real estate. 

Having said that, one questions whether the returns given by these safer investments are likely to sustain. If gold rates have seen a 20% decrease, are real estate prices also likely to plummet? Is there any correlation between gold and real estate prices? According to a survey by Karvy, there is. Their results of the Hong Kong market said real estate index and gold prices have 81% correlation. 

The Indian market has a similar story for the year 2012-13.

Builders and developers are coming up with new, affordable schemes to lure people into making purchases. Jewellers are known to tempt people into investing in gold by predicting a rapid rise in rates in the near future. In fact, when gold rates decline, people are known to sell their real estate investments in order to invest in gold!

So if you have not purchased a home yet and are waiting for that moment that rates see a fall, there is no guarantee that it may happen merely because gold rates have fallen and you may only hope for it to be true. One may argue that real estate prices may not go down considering land is limited after all but its demand is not. Gold on the other hand is not as limited as land for sure and is an international commodity so it's rate is more likely to keep fluctuating. Land prices may stagnate at the most but not fall.

However, all these are debatable but the fact of the matter remains that people wait for a trigger to make them invest in either gold or real estate. One can work as a trigger for the other but will we be able to predict that? At least for now we can be delighted to not be forced to choose between food and clothing.

The promise of a strong recovery for the residential market: 2013

Has the thought of owning a home, been dinner table fodder for years? Incessant cafeteria chatter or off the cuff remarks, about a dream home still being a distant dream?

Well! 2013 seems to be the game changer for the desi home owner and India to witness, a strong recovery on the residential real estate.

The optimistic outcomes via the government’s instigated policies on Real Estate Regulation, have strongly been recommended and implemented in giving the realty sector, industrial status -which is truly commendable.

With some price discounting and lower interest and mortgage rates futher down by (25-75bps) all thanks to the RBI, the pace of new launches have picked up, across key markets and with this trend most likely to run successfully and sustain, well into the next few quarters will lead to sharp recovery in volumes coming off a very low base.

JP Morgan believes this trend will allow an easier system of liquidity, with the expected cuts in policy rates ahead, further emphasizing discounts, rate cuts, lower unit sizes that are a sure clincher for affordability levels going high into 2013.

Knight Frank India’s, shared perspective on the performance and future of the residential market share across the 6 major metros offers some valuable insights.

Delhi NCR: A distinct supply increase from new sectors opening in Gurgaon, Noida and Greater Noida continue to lead the market, while a controlled supply check of the quantum of unsold inventory will make and keep the NCR market stable.

Mumbai: Mumbai’s phenomenal property price hikes and downward diving sales volumes, clubbed by a stagnant job scenario have affected sales momentum adversely. This muted account, will increase shares around its peripheral markets.

Bengaluru: A steady supply coupled by stable absorption continues to lead the overall residential market. Being an end user driven market, Bengaluru ensures a healthy growth for 2013.

Pune: Drawing the IT/ITeS with the manufacturing sector and a host of NRIs, Pune continues to gain maximum traction in the residential space, going forward a marginal drop in new launches could stagnate prices, as supply overhang decreases. Pune still boast of luxury budget homes as something special.

Hyderabad & Chennai: IT/ITeS driven residential demands are expected to stabilize in both cities, with absorption to be well maintained with maximum traction seen in West Chennai & West Hyderabad. Both continue to grow exponentially.

The Silver lining for those who missed the boat last year, both developers & consumers, 2013 starts with a fresh beginning with something for everyone and offers a window of opportunity for those anxious to move into their dream home.

SARE Homes launches The Grand in Sec 92, Gurgaon

We have been known to provide quality community housing at strategic locations in India and are now all set to offer a grand 5-star lifestyle with the launch of 'The Grand' in Sector 92, Gurgaon.

Developed as part of the newest phase of its mature 65-acre integrated township SARE Crescent ParC, The Grand consists of 23-floors of elegance in the form of 3-&-4 BHK air-conditioned apartments, with opulent lobbies, concierge services and grand terrace balconies that are perfect for hosting quintessential parties.

Available in sizes ranging between 1,853 and 2,280 sq. ft, all apartments at The Grand are centrally air-conditioned and equipped with sophisticated individual zone-control (VRV System). These apartments are priced in the range of Rs 97 lakh – 1.19 crore.

Step into the world class amenities at The Grand, which offers an 18,000 sq. ft. 5-star luxury lobby, with two 23-storey high atriums, elegant reception areas with billiards tables, landscaped sit-outs, a coffee shop and several other thoughtful conveniences including kids entertainment options.

Residents can unwind in the serenity of The Grand’s 25,000 sq. ft. rooftop terrace which offers facilities including a relaxation deck, jogging track, herbal garden, star- gazing observatory and meditation centre.

While the basic sale price of these apartments is Rs 5,650 per sq ft, we are offering an inaugural discount of Rs 400 per sq ft. You can also look forward to a milestone-linked payment arrangement at The Grand, that's an indication of our commitment to strictly adhere to delivery deadlines.

As per the milestone linked payment plan, you will require to pay only 20 per cent of the sale price at the time of booking apartments. This will amount to Rs 12.5 lakh for a 3- BHK apartment and Rs 15 lakh for a 4-BHK apartment.

Mr David Walker, Executive Director, SARE Homes assures, “At SARE, we are fully focussed on developing homes that offer our customers a distinctive lifestyle and make their dreams into reality when they start living here. The homes are designed to match the lifestyle needs of modern home buyers, provide them with the latest conveniences and amenities, by which they can truly experience a luxurious style of living.”

One of the most exclusive features of The Grand is that it will be home to Gurgaon’s largest and finest Residential Club, spanning 35,000 sq. ft. It will offer you luxuries such as a party/Banquet Hall and Party Lawn and a pre-function area as well as stellar amenities - creche for resident’s children, a cafeteria on the ground floor, a restobar, cards room and library on the first floor, a state-of-the-art gymnasium, indoor heated swimming pool, outdoor swimming pool with kids pool, squash court, billiards & table tennis room, 2 outdoor badminton courts, an outdoor lawn tennis court, a skating rink and an amphitheater.

Strategically located at the Gurgaon growth corridor, the township is a part of the NCR - home to multinational IT/ITES, automobile and manufacturing companies. You will enjoy superior connectivity to Delhi via the Expressway, Metro, Rail and Bus services. The Grand will adjoin the proposed mega SEZ in NCR and you will have convenient access to an arterial 60-meter wide road. What's more, you will be just a 40-minute drive from the IGI Airport. The project is also situated at close proximity to the Dwarka and KMP Expressways as well as industrial hubs such as IMT, Manesar.

The Grand will present you a global lifestyle consisting of uninterrupted power supply, 24x7 multi-level security, wide and well lit inroads, landscaped paths, shopping, educational and medical facilities and several other modern amenities for your ultimate satisfaction.

Our Take on Budget 2013

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units.

According to David Walker, Executive Director, SARE Home, "The announcement of National Housing Bank (NHB) setting up a Urban Housing Fund, tax sops for first housing loan of Rs 25 lakh and provision of an additional Rs 1 lakh rebate in addition to the existing Rs 1.5 lakh rebate will help to revive the demand for housing stock.

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units. Provision of Rs 6,000 crores in the rural areas would certainly result in more permanent constructions.

The budget move to levy 1% TDS on properties above Rs 50 lakh would prove to be a major burden for both developers as well as customers especially in the metropolitan cities like Delhi and Mumbai and their outskirts as even small apartments in these areas cost more. High interest rates and soaring land prices have been the major resistance factors in reviving the demand for housing stock and the budget could have announced a few long term steps aimed at improving the supply of land and reducing interest rates."

What newly weds need to look for while buying a house

It is quite common to see a newlywed buying a house since it is usually the first decision on the financial aspect that both partners will take together. Searching for a new home has a lot of aspects associated with it. The earning potential of the married couple, their financial  stability and situation along with their future family plans are crucial when deciding to buy a new home.

A systematic plan has to be laid before venturing out to look for a new home. Valuable advice and tips regarding buying a house will be available when you take some effort to contact the professionals of this field. There are some important considerations and salient features to be looked for in the process. So, take interest in going through the below factors before making the final decision. After all it’s a big decision for all of us!

* Setting an affordable budget for home buying is a factor that plays a crucial role. It depends on related factors such as home loan approval, savings, financial situation, debts, income tax and many other points. The price range that is ideal for both the members have to be considered and chosen. The availability of cash to do the down payment also matters when laying your budget for house purchase.

* The launch of a new home search has to be done after getting all your finances in the best possible order. The financial viability can be affected by various aspects such as credit report errors, income tax returns and so on. Discrepancies in all matters have to be erased before home search activities.

* Making the right choice of the house and location is of prime importance. Home interiors can be done based on your preferences but once a house is chosen to be bought, the location cannot be changed as and when we require. Think many times before selecting the house.

* Hire professionals to get the house inspected for aspects such as the integrity of the structure, security of the location, environment and surrounding, worthiness of the project and related factors.

Having all your priorities met as per your preferences, go ahead and buy your own home with lots of confidence and happiness. The joy of living in your own house can boost you to perform extremely well in many aspects of life. Get that dream house and start your new life in a brand new atmosphere.

What IIT and MBA grads need to look for while buying a house

Homes are the pillars on which families are built. It is the dream and ambition of every professional to build or buy a really comfortable and beautiful home. It is always good to inquire about things before venturing on something big like building or buying a home. Finding the suitable locale is the primary thing when it comes to choosing houses and it differs from person to person. Some prefer houses that are situated in a serene and isolated location which could be just outside a busy city which could prove to be safe haven from the hustle and bustle of the city.

Homes like these can be a perfect setting for anyone but access to the city is a question to ponder over. Big cities can be difficult to navigate because of the traffic and distance involved. Getting to places in time can be a real burden. This is the reason why others choose to live inside the city limits. Living in the heart of the city has its own perks as there is easy access to every place in the city. Schools, hospitals, banks and other day to day businesses when they are close to the residence is a real benefit.

Another vital part of buying a house is the budget. By setting a minimum and a maximum limit for how much you are willing to spend for your dream home makes your choices narrower enabling you to get a clear picture of where you are going to stay. There are residential apartments available for every budget and depending on its location there are villas for a song. In the case of high rise residential apartments one can opt for the lower stories you can save money and if you want a splendid view from your living room you can throw in some more cash opt for the higher stories available.

Apartments can save you the time and labor on furnishing your new house. Safety factor too is an important point to consider with the unbelievable rise in crime in recent times. There are apartments with state of the art built in security and you can be rest assured you and your family live in a safe- house. Buying a house has numerous advantages against building one on your own with which also comes with numerous amenities you would love to have and that’s all there is to it.

What to consider when buying a New House?

Are you a young professional or an NRI who wants to invest in real estate in a developing area? Or is it your first home? With the real estate boom going on, ensuring that you buy the dream home at the right time at the right price is not an easy task. And before getting into action, you will have to do the required research of the areas thoroughly. While doing the research it is significant to consider if the purchase is purely an investment or do you plan to stay in the house for a long time? Making up your mind on the purpose of buying the property would ease the whole process to some extent. However, here are some key points that demands attention prior to deciding on the area. 

Budget 

Apart from many considerations, you should first fix your budget while buying. Fix a starting range and the upper limit beyond which you do not want to stretch. It is also wise to consider the loan factor along with the percentage of loan. Remember that there is always an added expenditure apart from the property price like the brokerage fee, registration cost, and so on. We will have to be prepared for those expenditures as well. 

When opting for a high rise apartment, the cost might increase with every floor you go up. For instance, a house on the 9th floor is pricier than a home on the third floor for obvious reasons like it is less affected by pollution and noise. And this is true especially in the cities. Not to forget the view that one gets with the height is also amazing. 

Some premium builders will charge more for their brand name and you will have to know which brand names are worth the money. For instance, there are builders who are known for the quality of the construction work that they provide. In such cases, it is worth the extra money as you can be rest assured that the building is there to stay, without hassles of cracks and leaks in a few years. Also maintenance costs would be comparatively lesser thus making it a better investment in the long run. With credible builders you are sure to get the best in terms of quality. For anybody an investment in property is decisive and we should definitely opt for renowned builders ensuring a purchase worth the money spent along with a sense of security. 

If you are buying a brand new home, then you will also have to plan for the interior designing, pay extra as property tax, VAT, service tax among other expenditures. With new homes, you have the flexibility to decorate and design the way you want to make it your own and with that comes cost as well. 

Facilities 

After deciding on budget, next come the facilities accessible for the money invested. Novel apartments include residential facilities like playground, parking, clubhouse, security, etc. While you consider outside facilities think of a few factors like the proximity of corporate hubs so that you don’t have to travel too far to your place of work. The locality should have good schools so that your kids or your future kids can get the best education as well. With improved lifestyle, it becomes necessary that the area of choice is close to multiplexes, clubs, lounge bars and airports. If you have an active social life then you need to consider these things as you don’t want to travel too far in the ever increasing traffic to reach your destinations. 

In all, if you are a serious buyer who has all the information and aggressively search in the targeted area with all your requirements in mind, you will be able to land on the right property. Your dream home will no longer be a dream but will be a reality very soon!