Factors to consider while investing in Commercial Real Estate

Commercial property is an entity that’s always in demand. Especially in the big cities, that are always generating new business opportunities and drawing in more people from out of town. The commercial real estate sector is an alluring investment option because of the benefits it offers. This includes consistent returns, passive income, and growth potential. 

Following are the factors, we need to keep in mind while investing in commercial real estate property-

1. Location- This is a factor that’s common between residential as well as commercial properties. For the latter, however, it is vital because commercial properties need to be easily accessible or centrally located to draw in the maximum number of people to them. Commercial properties located near residential hubs tend to be very popular. Signature Global Mall is a prime example of this being situated in Vaishali, Ghaziabad (NCR).

2. Documentation- Before investing in commercial property, it is necessary to do a thorough verification of the necessary documents. You can take the help of a lawyer to double-check documents such as title deed, construction permits, property taxes, and utility bills. An overall check on the documents is essential as it will help to get a better idea of the legal work that the investor needs to take off.

3. Market Dynamics- It is important to study the dynamics of the property type, one is selecting. Understanding how real estate market cycles work can help you avoid buying when the market is high and being forced to sell when the market is low. The knowledge of specific indicators of the various market cycles will help to determine what opportunities are present right now and make more informed investment decisions.

4. The right time to invest- Similar to any other real estate property, commercial shop spaces for sale in Delhi-NCR such as Signum 93 in sector 93 of Gurgaon by Signature Global is also subject to rate fluctuations from time to time. For commercial properties, this is heavily reliant on supply-and-demand. If there are a higher number of units available than the demand for them at any point, then the rates will dip, thus becoming the optimum time to invest.

5. Overall Building Quality- Needless to say, it will fetch the investor higher rents, better tenant retention, and higher capital appreciation. Multinational tenants are always willing to pay a premium for quality. Look for certifications like LEED gold or platinum ratings or buildings which have nicer looking lobbies, more elevators, higher ceiling heights, and better views. Higher quality properties are also more liquid and can be sold much faster. Properties that look premium and swanky are guaranteed to bring more business opportunities to them. Comparatively, they do cost more, but when you’re investing in a commercial property, you should be prepared to shell out either way.

Things to do at home in a lockdown

Amid the COVID-19 crisis, there are a lot of people seeking a useful way to spend their time during the lockdown—or if you’re simply interested in building a deeper and meaningful connection with their homes. Lockdown has bought an unexpected, abrupt halt in our lives, forcing us to confine ourselves and working from home or learning from home. It’s jarring but we’re in it together! 

Here is a list of fun and fruitful things to do at home to spread love and positivity around:

Bring Out Your Art Supplies

It’s a great time to set up a little corner to start practicing art again; whether you like working with water colouring, drawing or clay. Art and crafting and getting creative is a great way to spend your time home.

Take Up Needlepointing or Knitting

Researches show that knitting can actually calm your nerves and relieve you from stress. So not only it’ll also be a soothing process but knitting a new blanket gives you something to cuddle up with or needlepoint a pillow can captivate your mood.

Learn a New Language

If you are someone who’ve always wanted to learn a foreign language or may have learned a language in high school but has since been out of practice, now is a good time to download a language app (there are various apps available on play store or Appstore) and start practicing. Or, if you’re not a fan of apps you can always sign up for online classes and start learning a new language.

Research a New Topic

If you are a curious one or interested in a specific topic of science or history, some strange conspiracy theory, a public figure, or really anything at all? Now’s the time to get on with it and start researching yourself. Become a pro! Go knee-deep into the google scholar.

Do Yoga or Pilates

There are so many apps available to practice Yoga and they also offer demo classes. You can start with a demo class or just look up moves to replicate at your own pace.

Although, these are hard times and it is important to practice social distancing be safe. On the bright side, you can use this time to connect with yourself and spend time with your family.

Explore projects by Signature Global while staying at home: Affordable Housing Projects

Significance of Occupancy Certificate

When you go and see a house before buying it, your real estate agent or affordable home project builder tells you that they have received an occupancy certificate for the property or the home project, congratulations! This means that the property is reliable and approved by the governing authority. You can go on and purchase the home or property you’ve chosen.

After performing various checks, an occupancy certificate is issued by the concerned governing authorities on the request of an affordable housing project builder, certifying that the property is constructed as per the standards and by-laws specified by the authorities. The certificate is issued only after completion of a project or a building. The standards specified by the authorities are essential for your safety and comfort because they comprise checks on road clearances, fire safety, and other civic requirements.

An occupancy certificate further confirms that a property or home you’re buying has been constructed legally, and is fit to be occupied, proof of a valid occupancy certificate is necessary before you plan to move into a constructed property. There are no specific laws that state that while registering for a new property, it is mandatory to have the certificate in hand. Hence, most of the time, it happens that buyers are not even aware of the existence of such a certificate and more often than not, they end up taking buying without an occupancy certificate.

Unfortunately, there are many consequences of moving into a home without an occupancy certificate. Apart from the risk of not getting basic amenities, there is a danger of living in a home that has not been cleared of safety hazards. Any affordable home project builder who tries to sell you a home project otherwise is not looking for your best interests.

When you choose an affordable home project, make it one of the questions you ask. You can be rest assured – if the occupancy certificate has been obtained by your builder – the property you have chosen has passed all the safety measures and ready to move in. It’s your right to ask for an occupancy certificate and your builder or agent shouldn’t have any problem in giving you transparency concerning the importance of providing you with an occupancy certificate.

Impact of RERA on developers and buyers

Whether you’re a home buyer or seller, you must be wondering with RERA into play how will it impact you? This article covers all aspects of RERA. Let’s start with, what is RERA?

Passed by the Rajya Sabha on 10 March 2016 followed by the Lok Sabha on 15 March 2016, RERA or Real Estate (Regulation and Development) Act came into force on 1 May 2016. It’s an attempt to regulate the highly unregulated real estate sector by bringing accountability and transparency into the real estate sector. Real estate is regulated by the state government, many states and UT have implemented RERA.

The key takeaway from the Act:

1. Definition of carpet area

The act defines carpet area as the net usable area excluding the balcony or veranda or open terrace area and four walls surrounding but it includes the area covered by an internal partition. Now, buyers don’t have to pay for the super built areas.

2. Registrations of Projects

To make the process more transparent, before launching a project such as a residential/commercial project, builders have to register or get approval from the State real estate regulatory authority. It also makes advertising before getting an approval impermissible. Before buying a project make sure it is RERA certified.

3. Redressal Mechanism

To make sure that the project is completed within the stipulated time as promised to the buyer; RERA also seeks to promote Redressal Mechanism for any grievances. In case the developer is not able to finish the project within the timeline, the developer is liable to pay a total of 10% of the project cost and can be imprisoned up to 3 years. Builders can also lodge a complaint against buyers in case of due payment.

Click here for homes in Gurgaon  under RERA Act:  Affordable Housing Projects In Gurgaon

4. Corpus Fund

Another issue that RERA aims to tackle is the general excuse given by developers for the delay in the project is lack of funds. RERA mandates developers to put 70% of the potential buyer’s money in an escrow account and the withdrawal amount should be in proportion to the completion of the project.

5. Quality of Construction

With RERA, developers are to be held accountable for the quality of construction and repairing structural defects in a project up to a time frame of 5 years. This is to ensure that buyers don’t have to suffer in case there’s an issue at the developer’s end.

6. Transparency

To make the process more transparent the regulatory authorities will have to publish all the information like any litigation, financials, an advertisement about the developers in detail. This is for buyers to make a sound decision while purchasing.

RERA for homebuyers

If you’re a homebuyer, with RERA, you can make an informed decision while purchasing a home or a property. Here is how RERA will benefit you:

Disclosures

Now, you can access information easily. All the information about new projects or developers like financial information or litigations shall be disclosed by the developers before they register for a new project. This gives you a fair detail to make an informed decision before you buy a house.

Checks and Balances

RERA keeps a check and balance on issues like announcement and advertisement of pre-approved projects, changes in plan, non-completion of projects on time or any other issue promised by the developer at the time of purchase. This can boost the confidence of a buyer.

Credibility of developers

Developers will now be more cautious and accountable while building projects as it’s developers’ responsibility to finish the project on time and maintain or repair it for 5 years in case of any issue. Additionally, all the information published by the developer on the website can’t be modified.

Although, RERA is just launched it aims to make the real estate sector more transparent and accountable with its mandates. Now, it’s up to state governments how they implement RERA. A lot of larger awareness is needed to make sure that the benefits of RERA reach its targeted audience. With the National Real Estate Development Council’s (NARDECO), the future of RERA in the Indian real estate sector looks promising.

Check Leader In Affordable Homes Under RERA Act In Gurgaon, Karnal, Ghaziabad: Affordable 2BHK Flats In Gurgaon

Haryana Housing Policy

To ensure maximum utilization of urban land, and for catering greater housing stock for the growing need, HUDA since 1983, has introduced the idea of Group Housing in its major Urban Estates. On one hand, affordable houses become a reality through multi-storied construction and increased FAR, on the other hand, a sense of community living is inculcated. So far HUDA has allotted around 800 acres land to registered Welfare Housing Organizations, Co-operative group housing societies, and Govt. Departments for their rental housing.

Now, the Haryana government has launched a detailed Haryana Affordable Housing Scheme namely, Housing for all-2018 for core areas of municipalities in Haryana like Gurugram, Faridabad, Sohna, Karnal and so on. Under the Haryana Affordable, Housing Scheme identified beneficiaries will also receive assistance from Central Government’s Pradhan Mantri Awas Yojna like subsidy and home loans.

The main aim of the Haryana housing scheme is to provide housing for all.

Feature of all the housing projects under the Haryana affordable housing scheme are as follows:

· The minimum density permitted is 850 persons per acre and the maximum can be up to 900 people per acre.

· Maximum Floor Area Ratio allowed under the scheme is 225.

· To promote community infrastructure like market, playschool, garden, etc., builders can use a maximum of 50% area for residential purposes with a 4% area for commercial use.

· To keep the area from cluttering, builders also have organized a minimum of 15% area from the net planned area to open spaces.

· To keep the density in check, flat must not be allotted to more than 5 people.

For the allotment procedure, first preference would be given to physically handicapped people, senior citizens, Scheduled Castes, Scheduled Tribes, other backward classes, minorities, single women, transgenders and other weaker and vulnerable sections of the society among the eligible beneficiaries of the same town identified in Affordable Housing Project under Housing for All-2018.

The second preference would be given to physically handicapped people, senior citizens, Scheduled Castes, Scheduled Tribes, other backward classes, minorities, single women, transgenders and other weaker and vulnerable sections of the society among the eligible beneficiaries of other towns identified in Affordable Housing Project under Hosing for All-2018. And third preference would be given to the eligible identified beneficiaries not included in the above categories.

EMIs: a way to pay for a house

People who were born at the turn of the century, have now entered into adulthood and now they are ready to choose their preferred government, get married, take a job and so on. The point to emphasize here is, irrespective of the flow of time, there are some things that remain the same along the years like the characteristics and responsibilities that come along; one such example is the idea of homeownership.

Imagine this: You’re in your 20s, new to the city, working the 9-5 job in Gurugram, and want to live in a nice affordable flat in Gurugram filled with all the comfort you desire, and now you need only to pay a monthly rent. And if you like the city, you might have decided to settle down in the city, would you want to keep paying rent or would you rather put your money into owning a house; and begin a humble and stable life?

You must have witnessed this often, an elder raving highly of people with a house of their own that they live in, they have made a wise financial decision at the right time and there’s nothing wrong with admiring these people who have figured out what they want and invested at the right time.
In most social settings across the globe and especially in India, homeownership is seen as a sign of a sound and balanced financial system and by extension, a sign of being able to nurture and take care of your loved ones. A house bought with your hard-earned money is a matter of immense pride and can benefit you many in various ways like providing tremendous security in times of need as well as becoming a source of passive income. Behind all these emotional biases, there is a very economical logic behind it which few get to realize. Millennials are driven by their passion and are focused on making the most out of their younger days, socially as well as professionally. They want to make good money, live a life full of grandeur and still save for their earlier days. And if this is the case, aren’t EMIs the best option?

Millennials are moving out of their homes in their early 20s, keeping in mind and preparing for easy beginnings while giving priority to their finances and time, according to what they value the most. Investing in an affordable flat is perceived as a big step that holds down a person who isn’t prepared on laying down roots at that particular moment in his/her life. People would rather choose to pay minimal rent and use the rest of the money for studying, traveling, excursion, etc., something that would fill their lives with mirth. And this sentiment is entirely valid.

Whether in the short term or long term, renting is a fantastic option because it doesn’t add the unnecessary trappings of the mundane auxiliary responsibilities like maintenance and upkeep, as well as allows you to take life as it comes and savour all the opportunities. Some may even think, you can buy a flat at any point in life, and they might want to live in the moment and enjoy their life. But if you are someone who is focused on stability from the start, investing and buying a affordable flat in Gurugram assures your belief. If you are sure about your decision, you must start investing in it immediately. There are various bank schemes that permit you to pay an EMI which is equivalent to month’s rent of an affordable flat. Moreover, certain affordable housing projects give you possession of the house soon after you are done with the down payment. This can take off the burden of paying EMIs and rent.

In a turbulent market where the value of affordable housing flats keeps fluctuating, it is indeed a wise decision to make an investment by buying an affordable housing flat, laying down roots and securing your future. Hence, if your current annual income allows, by a sound financial investment you can purchase a house and give you the lifestyle you dream of.

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CLSS: Respite for affordable housing schemes

Home is essential for all families. If you or any of your family members don’t own a pucca house, then you might be eligible for Credit Linked Subsidy Scheme. (CLSS) under Pradhan Mantri Awas Yojana (PMAY) affordable housing scheme. This affordable housing scheme covers all the people falling under Economically Weaker Sections (EWS), Low Income Group (LIG)and Middle-Income Groups (MIG I and II).
You may be wondering what is PMAY subsidy? While PMAY is a broader scheme that aims to provide Housing for all, CLSS provides subsidies in the interest rate payable on home loans to make home-buying more affordable.

How does CLSS work?
As an instance, let’s say you have taken a home loan of Rs. 9 lakh for 20 years at a 9% interest rate. Under PMAY affordable housing scheme, if you are eligible for the middle-income-group I category, you’ll get an interest subsidy of 4%, which will make your effective interest rate of 5%. The total subsidy on your home loan would be Rs. 2,35,068.
Now, you can get a loan of higher amount depending on your eligibility, but the maximum amount for interest subsidy under CLSS that you will be eligible for would remain Rs. 9 lakhs under the MIG I category. Similarly, if you choose to opt for a longer tenure but the subsidy you can avail for will remain a maximum of 20 years. So, even if you take a loan of Rs. 10 lakhs for a tenure of 30 years, you will be eligible for Rs. 9 lakhs for 20 years. Additionally, you will be charged Rs. 1 lakh at regular home loan rates on the remaining loan amount for a period beyond 20 years (i.e. for the balance 10 years).

How to avail PMAY subsidy?
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If you want to claim subsidy under PMAY – affordable housing scheme; your home loan must have been approved on or after January 1, 2017, as this affordable housing scheme is valid till March 31, 2022, for EWS/LIG segments and March 31, 2020, for MIG segments only. The subsidy is given on the behalf of your loan provider; you don’t have to do it in person. To claim the subsidy, all you need to do is submit a declaration, that must confirm your eligibility by fulfilling all the criteria. Once you have successfully submitted the application, your bank or the lending institution which you’ve applied for a loan will complete all the requisite formalities and file for a subsidy on your behalf. Now, you just have to be patient, the subsidy amount will be automatically credited to your home loan account as soon as the nodal agency such as the National Housing Bank approves your application.
To conclude, PMAY has made homeownership easier and cheaper for first-time buyers.

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