investment property

To Increase Rent or Not to Increase Rent?

So when is the best time to increase your rent? There is no doubt that this should be done when re-letting the property and not at the point of a renewal.

The relationship you have with your existing tenant may be great, but requesting a rental increase when the tenant has requested a renewal, in most cases, will not go in your favour. If it does and the tenant agrees to the increase, then fair play you must be special.

We believe that Landlords would benefit more by keeping tenants in the property longer, which would minimize your void periods. For example, let’s assume that you have tenants paying 500pcm who have been living in your property for the last 12 months at this level.

If the market average for your property has risen to 550pcm then we could say that you are potentially losing 50 per month. If you tell your tenants that you will be bringing the rent in line with what the current market suggests, that’s an increase of 10%, which ultimately could encourage the tenant to find a cheaper alternative.

So, if the tenant leaves the property and it is left vacant for one month, whilst you find and move in your new tenant, then you will have lost 500. It would take 12 months of letting the property at the new price of 550 to make up the lost rent in the void month.

A landlord would also be liable for the council tax during a void month, unless the property is unfurnished. In this case there would be no council tax liability for the first six months of the void.

Whilst making the most of an investment is a landlord’s top priority, sometimes it’s better to play the long game and wait for the re-let.

Typical investments that BTC sell are:- commercial investments, from small shop and upper parts to larger blue chip investments, residential investments (flats and houses with tenants), and commercial and residential developments (with or without planning). Also, within the investments department we have a corporate division, selling larger, corporate businesses, i.e. residential care homes, day nurseries, petrol stations, hotels etc. The investment database of buyers include:- first time investors, high net worth individuals, property companies and pension funds

Within the Lettings department BTC manage over 600 residential properties around North London and over 150 commercial properties Nationwide. Once BTC Lettings find suitable tenants for a property, then the management process will begin, to include:- inspecting the property every 3 months and sending the landlord a report, coordinating contractors to attend to maintenance issues tenants may have, collection of rent on time

investment property

Pre – Launch Offer – Profit or Risk

Developers at times propose lucrative offers to attract more and more buyers. Some of these are beneficial while there can be risk to accept the others. Likewise there is an offer – Pre Launch Booking. In pre-launch developers start booking of flats before they launch their Projects.

The biggest motive behind this is to collect capital for construction works and for this they also offer very good discounts to buyers who are interested in pre booking. But before going for pre booking there should be necessary and deep investigation. Many times these pre booking are started before taking the vital approval from the public administration. In pre-launch developers receive some amount of flat’s entire cost as booking amount from proposed buyers. This amount acts as the capital for developers and they don’t have to take more loan from the financial institutions or banks.

Pre-launch offer can be proved beneficial for customers because prices are set to be less at this time. After the project is completed the prices of flat increase and buyers get good profits. However with big profit there is always a probability of risk also. Sometimes it involves frauds as customers don’t pay attention towards the risks associated with it or many facts are concealed from them. In that condition customers take decisions on account of wrong or improper information.

According to experts pre-launch booking has its own place. If developers has good track record then there is nothing wrong in pre-launch booking. Buyers should take some precautions like whether builder has got all necessary approvals before commencing the construction or not.

Book a flat in pre-launch offer only after a sample flat is ready. At the time of booking pay attention whether the project plan has been passed or not, architect or builder has good record and basic needs like electricity and water have been taken care of.

Other things to pay attention

If you are interested to invest in a project developing by some builder then it is good to keep some point in mind and investigate properly. No matter how low the risk is, awareness is always safe. Whenever you invest in builder’s project first of all look out at his layout plan. It is very necessary to investigate whether the plan has been sanctioned from related authorization or not. After this, be sure about the builder’s ownership on property you are going to invest in. Examine also whether property is on lease or freehold. Talk to the builder about the facilities of maintenance, usage of parking, park, passage-way etc. It is always better to talk before the booking on how much compensation will be given by builder in case possession on flat gets delayed.

investment property

The Shift of Focus For Investors From Mumbai City to Suburbs

Mumbai is a city that never sleeps. It is constantly buzzing with all sorts of activities. Being the driver for economic growth of the country, it was deservingly named as the alpha city in 2009. With currency worth billions trading hands everyday in stocks and through other mediums, Mumbai is certainly one of the richest, if not the richest cities of whole South East Asia. These factors make it a lucrative destination for immigrants and investors. This article is meant to provide an insight into the way Mumbai real estate is going to head in the next few years.

When we talk about the most important areas of Mumbai, from an investor’s point of view, these stretches are what come to mind:

The rise and the fall

Mumbai’s rise on the real estate graph is preceded by India’s growing clout as a leading IT/ITeS service provider. With liberalization opening doors to new opportunities, Indian IT sector became one of the biggest contributors to the national economy. Government’s relaxed FDI norms prompted many foreign players to invest in Indian firms and taste the fruits of a exploding real estate market. Many of these companies did not found a better choice than Mumbai, the financial capital of India and in no time, Mumbai found itself sitting on the top of the best investment destinations list. This was early 2000s, when investors were earning huge profits over their purchase in the city and affordability was still a word that end buyers could recognize with. Regions like Mira Road were most sought after and a Flat in Mira Road was considered a sound investment decision. From the period of 2002 to 2006, residential real estate saw a sudden boom as the demand-supply balance was maintained. Suburbs were still an unknown or rather an unexplored phenomenon and most of the real estate activity was taking place in the central business district and other areas listed above.

However, with no regulatory methods in place, soon the situation seemed to swirl out of hands and by 2006 the prices had reached 100 times more than the average income of a middle class individual. In 2008, the inevitable happened as the global economy plunged into depths of despair. Mumbai’s realty bubble finally busted leaving many high and dry. Investments went to an all time low and there were no takers for new projects with vacancy rates almost quadrupling in the existing projects.

Current Scenario: Suburbs taking the centre-stage

As effects of the economic slowdown started wearing out, Mumbai’s realty market is again picking up pace, with IT sector again being at the driver’s seat. However, learning from previous mistakes this time realty builders are keeping things under control. Suburbs like Thane, Badlapur and adjoining regions which were earlier ignored are now being noticed. Flat in Badlapur is a hot property these days, and people are looking to invest in these affordable options rather than go for pricier options in the city itself.

investment property

Chandigarh Emerging as Fastest Growing City With Rapid Infrastructure

Chandigarh is the city that seems to be highly flourishing and is being designed by the French architect Le Corbusier thus becoming one of the first planned city in terms of the infrastructural developments. This Union Territory is thus known to serve the capital; of Punjab as well as Haryana. In terms of delivering numerous projects by various segments that include individual flats, luxurious homes as well as studio apartments, this city is thereby known to flourish very rapidly. As a matter of fact this city is thereby recognized to become one of the fastest growing cities in Nation. Apart from that it is one of the wonderful place in order to start up the business where you can find numerous highly reputed companies to come up in the city thus resulting to start up the property values.

With the successful rise in the development in the IT firms this city is seeing to have large influx ment of huge mass of population from all across the world. The demand for the properties over here are rising each and every passing days. This city is thereby known to usher a new way of development especially for the luxurious apartments, individual flats as well as studio apartments. Numerous residential areas in the city of Chandigarh like 22, 21 and 24 are seen to get remodeled from kothis to the individual flats. Apart from that you can find numerous new constructions to be happening in the neighbourhood of panchkula, Zirakpur and Mohali.

The demand for the skyrise apartments in Chandigarh are seem to touch the peak thus allowing the realty sector of the city to gain tremendous importance. In terms of doing investment on properties, this city is thereby considered to be the hot spot destinations and is thus on the verge of maintaining an average rise of 10-12% in every six months from the past two years. The demand of these apartments are seen seen to be boosting up rapidly and this is basically due to the rising lifestyle of the individuals. As the living standard of the population is increasing day by day hence, the demand is also increasing at its fastest rate. The developers pover here are thus emerging with numerous luxurious projects in terms of balancing the gap between the supply amdf the demand.

As compared to the premium homes, the upcoming residential property is highly concentrated towards the Builders in Chandigarh. These projects are getting launched with the price range of approximately Rs 20-40 lakh and hence is thus witnessing varied number of transactions. The current capital values of the apartments basically ranges from Rs 2,500-4,000 per sq ft and is thus known to be highly affordable as compared to other localities in the city of Chandigarh. On the contrary, Zirakpur is one of the hot spot destinations in terms of doing investment and hence in the past one year is having the unprecedented growth in the realty sector. According to the Gurpinder Chadha from Guru Properties, this city has thus changing the face of the real estate market.

investment property

New Construction Projects in Mumbai With Full Details

Mumbai can be a megacity. It’s the capital of new project in mumbai plus an important port of western India. Since decades many industries and businesses flourished here like textile and film industries. Many corporate offices are found here. So Mumbai will be the busiest metropolitan town of India. Mumbai is really a thickly populated modern city where different types of people stay irrespective of their caste, creed, religion, custom and status. Many of them are economically sound whereas some are well to complete or poor. But dwelling place is one of the basic needs of each human being. So New Construction Projects in Mumbai is at vogue. It’s a profitable business to the builders and also welfare for that citizens. New Construction Projects in Mumbai: Balaji Symphony Builders: Space India Builders & Developers along with Shree Balaji Home.

It’s a luxurious apartment amidst of tranquil nature. Sky-scraping towers touch the best point of excellent living by blending serenity and modern comfort and facilities. Greenwood Estate This is a famous property in new mumbai Project in Mumbai in New Panvel area. It can be among the completed New Construction Projects in Mumbai of Space India Builders and Developers. The landscape is beautiful and spacious consisting over 2400 Houses. The gap of Airport terminal is between 25km to 30KM and the Panvel Railway Station is quite next to this Residential Project in Mumbai. The nearest bus stop is Thana Naka Bus Stop. Tridhaatu Aum It is just a Residential Project in Mumbai spread over 2 acres, offering luxurious flats with clubhouse, children’s pool, multi-gym and children’s playground using a garden-temple and an Amphitheatre. The flats are spacious with airy rooms in addition to fashionable fittings and fixtures. The paths are covered with cobble-stones, and decorated with baroque statues, vintage lampposts and wrought-iron benches.

The Possession is on November 2013 Shikara Estate Shikara Estates is a perfect New Construction Projects in Mumbai for peace lovers in the middle of nature but well -connected by different modes of transport & can be found near Panvel. The main advantage of this Residential Project in Mumbai is it is incredibly towards the upcoming SEZ. Mohan Palms It is a most prestigious residential properties in mumbai at Badlapur East with super-luxurious flats with modern amenities. This Construction Projects in Mumbai is spreading across 20 acres of land that consists of over 1000 apartments and a shopping center with the sea beach. There are other premium New Construction Projects in Mumbai like Mohan Suburbia, Mohan Greenwoods, HARI KUNJ II, Kukreja Residency, Nahar Amrit Shakti, Royale City, ishwa Siyona. To have further informations buyers need to search the widely used websites.