Blogs - sreevatsa-realestate

Co-Working And Co-Living Spaces Changing The Way You Work And Live!

By venpep_dev,April 29, 2022January 20, 2023

CO-WORKING AND CO-LIVING SPACES CHANGING THE WAY YOU WORK AND LIVE!

Co-working and co-living spaces ensure these facilities to occupants. Between 2011 to 2016, interstate migration in India touched 9 million annually.

Co-working and co-living are two innovations which are redefining the way people live and work. While choosing a location for living and working, there are many factors such as proximity to work, safety, social infrastructure, cost, security deposits and rentals which play a big role. Co-working and co-living spaces ensure these facilities to occupants. Between 2011 to 2016, interstate migration in India touched 9 million annually. To meet the housing demand of this mobile population, a cost-effective and flexible lifestyle solution was required. This proves that there is significant opportunity for co-living operators in India. “Co-living, like car-pooling and co-working, is the result of demand for more evolved rental housing solutions from millennials, students and young working professionals whose choices differ vastly from those of previous generations. Going by recent trends co-living may offer a higher rental yield of as much as 8-11%, as compared to the current average yield of 1-3% in residential properties. It is definitely paving the way for a new asset class in real estate investing. Interestingly, co-living spaces can also bring down the average cost of living for consumers by as much as 10-15% on the back of optimal real estate utilisation and the economies of scale,” says Anuj Puri, Chairman – ANAROCK Property Consultants. Rising demand for co-working space is changing the dynamics of office space in India. According to Knight Frank data, while co-living segment is set to offer a business opportunity of INR one trillion and 5.7 mn beds by 2023; co-working spaces already have a 12% share in total office leasing. The growth of co-working spaces is likely to push property prices of projects located around them. People are likely to live near locations with proximity to job hubs and economic activity. Commuting for long hours is something people want to avoid. Therefore, both co-living and co-working spaces are likely to push the demand in locations where these can be encouraged. Samantak Das, Chief Economist and Head of Research & REIS, JLL India, says “With these two innovative segments (co-living and co-working), Indian office and residential real estate is set to grow bigger and better. However, stakeholders need to address the existing challenges such as data privacy, the conservative approach of property owners and relevant supply observed across co-working and co-living, respectively.”

Knight Frank report reveals some key trends:

In co-living, in value terms, Delhi NCR will constitute nearly 40% of this potential market opportunity
Affordability, convenience and community – pull factors for the migrant millennial work force. This will drive growth in the co-living space
Share of co-working space in office leasing to increase manifold in the near future
Mumbai records the highest proportion of co-working space to office leasing in 2018

As the co-working spaces expand, new offices are going to come up giving a boost to commercial and residential projects. Nakul Mathur, MD, Avanta India says, “Co-working segment is growing in India and is expected to witness a further growth of 40-50 per cent in the next one year. With the growth of co-working space demand for residential houses around it also increases as it gives an opportunity to live near the place you work. Most of the people using co-working space are freelancers or startups. These people try to save every penny and that also includes unnecessary travel expense to the office.” Mathur further adds, “Currently, there are a little over 200 premium business centres and 150 aggregated shared offices across the country. These figures are likely to see a marked change as premium business centres are set to double by 2020 and aggregated shared offices will reach a figure of 500 by that time. Around 42 per cent of India’s population will live in urban centres by 2025. This growth of co-working centres will further fuel demand for the residential segment.” There are many challenges that these two innovations have to go through before they finally prove successful in the Indian scenario. However, trends appear to be positive for these two innovations and likely to bring down cost for consumers in future. Author: Ravi Kumar Diwaker – ET Realty

6 Reasons Why Investing In Apartments Is The Best Idea

By venpep_dev,April 29, 2022January 20, 2023

6 REASONS WHY INVESTING IN APARTMENTS IS THE BEST IDEA

Asset Appreciation

Investing in apartments is the safest appreciation of one’s savings. It is a life-long strength that remains with your family for the future. Invest in a project at the right location. Sit back and watch your asset value increment over time while possessing a safe & secured asset.

Dynamic Income

Multiply your income by offering your apartment on rent if it is an investment. Offer your house to people who are studying, working, newly married or have a small family. You will get your rent amount every month, depending on the market value at that point of time. Certainly it is the most refreshing way to get returns through one-time investment.

Safety

Expect better safety and security when you buy a flat. Your house must have a protected space; undoubtedly, the guards will look after the whole property in your absence. There must be CCTVs kept throughout the building. It should have a trusted 24×7 security facility. Invest in properties from developers who offer such amenities

Ease of Funding

It is effortless to get the loan for apartments when compared to constructing individual houses since the approvals are obtained by the developer and financials are approved by banks with minimum efforts from the buyer’s end. Apartments provide a more affordable housing option. Also, people applying for home loans must check the RERA compliance as the banks will approve & sanction the loan only to those builders with RERA approval.

Amenities and Facilities

When you go for apartments, you get other amenities like children’s play area, basketball courts, gardens, lifts, UPS wiring, and lots more. You will also have a beautiful community, where you can build an enjoyable relationship with your set of ‘Apartment Families’. You need not worry about water, maintenance of the area, etc. since the apartment association will jointly take care of it. Also, it would be a shared maintenance charge.

Future Benefits

With time the value of your property will appreciate. You can claim the pride of ownership which you enjoy. The identity of the community is defined by the quality of life established in the apartment. This would bring higher dividends in appreciation of value together with all the above advantages.

Sreevatsa Real Estate Projects has delivered over 25 projects that have defined community living while providing best quality and ergonomic design for each apartment.

Sreevatsa Real Estate has delivered over 25 projects that have defined community living while providing best quality and ergonomic design for each apartment. All documents are ready with the necessary approvals and RERA certified. Both projects are cleared by major banks enabling ease of transaction.

What Is The 10:90 Payment Plan While Purchasing A Property?

By venpep_dev,April 29, 2022January 20, 2023

What is the 10:90 payment plan while purchasing a property?

Simply explained, in the 10:90 plan, the buyer has to contribute 10% of the total cost of the property from their pocket at the time of booking and pay the rest at the time of possession of the property. Traditionally, CLP has been the most commonly offered payment plan by builders. CLP stands for Construction Linked Plan, which requires buyers to make payments after the construction reaches specific milestones. For example, you might have to put in 15% while booking, 20% when construction starts, 60% during various stages of construction and rest during possession. There are no standard milestones and each builder can define their payment milestones.

How does 10:90 plan work?

Book a property by paying 10% of the total price.
Avail Loan from preferred bank at best possible rate of interest.
No payments or loan EMI until possession.

What are the benefits of a 10:90 plan?

The property could be purchased with minimal investment. E.g. if the property costs Rs. 70 lacs, you can book with just Rs. 7 lacs.
10:90 plan doesn't involve any interests or home loans after the initial payment until possession. As an example, if you took a home loan at a 6.9% interest rate for an amount of Rs. 70 lacs, you will pay Rs. 5.25 lacs in interest each year. With 10:90, you easily save Rs. 5 -15 lacs based on the cost of your property.

Comparison of 10:90 plan vs CLP

Imagine you intend to purchase a property costing Rs. 60 lacs which will be ready for possession in Dec 2023. Let’s see what it would look like if you went ahead with the traditional payment model.

Scenario with traditional payment plans

Traditional payment plans require you to pay interest EMI per month which can cost you lacs of rupees.

1. Home Loan Interest Rate

The current home loan interest rate is 6.9%, which means in 2-3 years until possession, you may have to pay up to Rs. 10 lacs in interest.
That's already 15% of the property cost you are paying as interest.
You are essentially losing this money and it's a negative investment.

2. Lost opportunity cost due to payments made

You will pay up to 80% of the amount before possession
This means you invest up to Rs. 39 lacs and cannot even live in the property or rent it out!
If you keep these Rs. 39 lacs in a fixed deposit at 7%, you will earn Rs. 3 lacs in interest each year.
You are not only losing this potential return but also paying the home loan interest rate as mentioned above.

Scenarios	10:90 Plan	CLP Plan
Property Cost	Rs. 60 Lacs	Rs. 60 Lacs
Number of years until possession	3 years	3 years
Upfront payment during booking	Rs. 6 Lacs (10%)	Rs. 9 Lacs (15%)
Additional payment until possession	Zero	Rs. 30 Lacs (65%)
Loan amount before possession (if opted)	Zero	Rs. 51 Lacs (85% Loan amount)
Bank loan interest paid until possession (if opted)	Zero	Rs. 11.4 Lacs
Total investment before possession	Rs. 6 Lacs	Rs. 39 Lacs (7.5% for 3 yrs)
Effective cost of property on day of possession	Rs. 60 Lacs (Rs. 6L booking + Rs. 54L due)	Rs. 71.4 Lacs (Rs. 39L paid + Rs. 21L due + 11.4L interest)

3. No rental income until possession

Rental income is a great way to subsidize your EMI payments.
With no possession of the property, you have no rent income.

4. Purchasing using 10:90 plan

You will pay approx Rs. 6 lacs for booking the property and obtain a home loan.
That's it.
No EMI, No partial payments until completion for occupancy.

5. Comparison of cost – 10:90 Plan vs traditional CLP

6. Detailed Breakdown of Payment Slabs for 10:90 vs CLP

Scenarios	10:90 Plan	CLP Plan
Property Cost	Rs. 60 Lacs	Rs. 60 Lacs
Number of years until possession	3 years	3 years
Upfront payment during booking	Rs. 6 Lacs (10%)	Rs. 9 Lacs (15%)
1st Payment Slab (~ 6 months)	Zero	Rs. 9 Lacs (15%)
2nd Payment Slab (~ 12 months)	Zero	Rs. 12 Lacs (20%)
3rd Payment Slab (~ 18 months)	Zero	Rs. 18 Lacs (30%)
Final Payment (at possession)	Balance amount	Rs. 12 Lacs (20%)

Which plan to choose?

Every property is different, and you can decide for yourself based on the information above.

Reference: https://getglobalhome.com/what-is-the-10-90-payment-plan-while-purchasing-a-property-in-india/”

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Mortgaged Property For Sale

By venpep_dev,April 28, 2022January 20, 2023

How to buy a used bank mortgaged property

If you are planning to buy a used resale property from a seller who has already taken a home loan on the property, then it is important for you to perform certain due diligence. Firstly, check whether the existing owner has any pending home loan, electricity and water charges or other dues on the property. You also need to check whether the property is owned by a single owner or is shared. One should also check whether the property is leasehold or freehold. If the property is leasehold, then the seller needs NOC from the government authority. You can either choose to ask the existing buyer to clear the home loan or if you are also planning to take a loan to buy the property, then you can apply for a transfer of the seller’s loan to your name. The bank will take your KYC and check your eligibility and then check the seller’s file and transfer the loan to your name.

Deepak Chowdhury, partner, Induslaw, explains, “The buyer must insist on a copy of all, the title documents of the used property for conducting a title due diligence to identify the risks, if any, on the property. The buyer will also require the title documents if he intends to obtain a loan for financing the acquisition of the property. The buyer should also request the seller to obtain a statement of the loan outstanding (principal and interest (including penalty interest, if any)) due from the bank wherein the home loan is pending, and a confirmation of the property documents mortgaged with the bank.”

The buyer has to verify all title documents in relation to the used property:

Deed of transfer in favour of the seller and the property tax certificate issued by the concerned municipality in the name of the seller. In case the property is a flat/apartment situated in a high-rise building, check if the undivided share of the land over which the building has been transferred in favour of the seller.
Title documents for the past 30 years, so that the title of the vendor/builder of the property can be established. Also, procure a certificate of encumbrance from the concerned sub-registrar to assess all the previous title transfers and encumbrances on the property.
Sanction Layout, Building Permit, Occupancy Certificate, Zoning Regulation, Fire NOC (in case of a high-rise building), permission for lifts installed at the building wherein the property is located.
No objection certificate for transfer of ownership and No-dues certificate from the Cooperative Housing Society/RWA of the building or the builder if he maintains the society.
Municipal taxes pending against the property. It would be advisable to also check the dues against the property that may be pending towards the electricity and the water departments. Also, obtain receipts to verify the tax paid by the present owner.
An independent search needs to be conducted on show-cause/demand notices pending against the property or the building wherein the property is located.
Check if any litigation is pending against the property or the building wherein the property is located in a subject matter of litigation against the builder/developer.

Is it safe to buy a used property mortgaged to a bank?

Unless the property is subjected to any litigation or exercise of mortgage rights by the bank, it is safe to buy a resale property pending mortgage. However, the buyer needs to insist on the closure of the loan and a no dues certificate from the bank before purchasing the property. In case the buyer intends to take a loan for acquiring the property the buyer must move a proposal to the bank from which it intends to avail a loan and get a legal and technical clearance as well as obtain a sanction letter from the bank before the transaction.
Nikhil Varma, founding partner, MVAC-Advocates, Solicitors and Consultant, says, "The procedure to purchase a mortgaged property is not complex and in order to purchase such a property, the purchaser may either close the existing loan or get a new loan from the same bank to close the existing loan or get a loan from another bank. The purchaser must ensure that the seller provides them with the no-dues and no-objection certificates both from the bank and builder/RWA. There are instances wherein the agreement for such a transaction is a tripartite agreement making sure that the bank is aware of such a sale and an active party to the same."
Getting all the relevant documents is very important as then you can get bank approvals easily and also be able to register your property without any issue."Buying a house (be it a flat or an independent house) with an existing bank loan requires patience and time. If you are borrowing from a different bank, then one bank can pay to the other bank and take over the existing loan. However, if the bank is the same, then internal loan transfer takes place, and you become the new owner after registering the property," adds Aditya Chopra, managing partner, Victoriam Legalis - Advocates & Solicitors.
Make a checklist of the documents you have and then create a list of documents you require from the existing sellers before buying a bank mortgaged property. Pay only the token/booking amount when you have verified the owner, the property and have made sure it is good to buy."

Reference: https://realty.economictimes.indiatimes.com/news/residential/how-to-buy-a-property-on-which-home-loan-is-pending/81405304

Home Loans: Know The Types Of EMI Options Available

By venpep_dev,April 28, 2022January 20, 2023

Home Loans: Know The Types Of EMI Options Available

Find out about different types of EMI options available with your preferred bank before finalising your borrowing decision

After a few years, the EMI increases gradually with an assumption that the borrower’s income will increase simultaneously to be able to repay the loan comfortably.Despite the financial setbacks suffered by many due to the pandemic, buying a home remains one of the top financial goals for countless Indians. Many take the help of home loans to finance their purchase after months of research, planning and budgeting.However, at times many do not try to identify the type of home loan that would best meet their loan requirements and repayment capacity. In fact, home loan products may not just differ in terms of interest rate, benchmarking, processing charges, loan type, etc., but also the EMI options. Here are a few prominent home loan EMI options that you should be aware of to make informed decisions as per your repayment capacity.

Home loan EMIs with a moratorium

Many banks allow moratorium options to their home loan borrowers. This facility allows a delay in EMI payments typically up to five years wherein borrowers can pay only the interest until the EMIs begin. In such an option, the EMI amount is stepped up in the subsequent years after it starts. If you are looking for higher loan eligibility and expect an increase in your income in the future to meet the step-up EMI repayment requirement, you may go for this facility. The EMI moratorium facility can help you buy a home with a higher value than what your current finances permit.

EMI on home loans with overdraft option

Several banks in the market allow home loans with overdraft (OD) facilities. Under this option, the EMI obligation is the same as regular home loan products, but the borrowers get the liberty to park surplus funds in the bank account to save on the home loan interest to that extent for such period for which the fund remains in the account. The borrowers, thus, get the flexibility to reuse the extra funds parked in the account that helps them in maintaining a higher level of liquidity as well.

That being said, the extra funds parked in the account is not considered for tax deduction benefits under Section 80C of the I-T Act. Also, the interest rates on home loans with an OD facility are usually a little higher than regular home loan products. This option is useful to certain borrowers (like businesspersons) who often receive large funds for a short period to help them significantly cut down on the loan interest component.

Home loans with increasing EMI option

Some banks allow the facility of home loans with the increasing EMI option. In this type of product, the bank fixes a lower EMI during the initial few years of the loan. After a few years, the EMI increases gradually with an assumption that the borrower’s income will increase simultaneously to be able to repay the loan comfortably.

The increasing EMI home loan suits borrowers whose income is low or slightly inadequate to repay the EMI. The bank works on the assumption that the borrower’s income will increase in the coming years so that he/she will be able to comfortably repay a higher EMI in the future. You may apply for this loan facility if you have just started your career or have low income in the initial few years and expect job security during the entire loan period and a consistent income increase. Also, you could step up your EMIs on a regular home loan as well.

Options for under-construction properties

You can also choose between a pre-EMI and a full EMI option when buying an under-construction property. In a pre-EMI plan, you need to pay only the interest on the disbursed amount till you get possession of the property or at the end of the moratorium period (usually around 2-3 years), whichever earlier. On the other hand, in a full EMI option, you have to start paying the EMI immediately regardless of the bank disbursing the loan partially or completely. Under the full EMI option, the EMI is calculated on the entire loan amount and not on the amount disbursed by the bank until that time.

Apart from the above-mentioned EMI options, banks may also offer additional variations in home loan products; as such, you’ll be well-advised to inquire about different types of EMI options available with your preferred bank before finalising your lending decision.

Reference:

Link: https://www.financialexpress.com/money/home-loans-know-the-types-of-emi-options-available/2327419/lite/

World Water Day

By venpep_dev,April 28, 2022January 20, 2023

World Water Day: Global water crisis looming, high time we introspect and change our attitude

In recognition of the importance of fresh water and sustainable management of this valuable resource, World Water Day takes place each year on March 22 to raise public awareness.

Life cannot exist without water, which is one of the earth’s essential elements. A living being like a human, animal or plant is impossible without water. Therefore, it is rightly said that “Water is life”. Human life, however, is facing some questionable situations such as acute water shortages due to over consumption, industrialization, and overuse of natural resources.In recognition of the importance of fresh water and sustainable management of this valuable resource, World Water Day takes place each year on March 22 to raise public awareness. ‘Groundwater: Making The Invisible Visible’ is the theme for this year’s World Water Day.

People across the world need to change their attitude towards water. “In the time of increasing population growth and climate change, the World Water Day has become even more relevant. It has been over 5 years since the launch of the Sustainable Development Goals. SDG 6 highlights ensuring availability and sustainable management of water for all but how much has been achieved in this direction? With looming water crisis worldwide, it is high time that we introspect and change our attitude towards water. Even though this is necessary, there is great potential in focusing on the ‘demand side’ – working with rural communities to be more water-efficient and partnering with like-minded partners to provide water to the people.” said Pearl Tiwari, Director & CEO, Ambuja Cement Foundation.

Also, lots of water get wasted in activities like washing of clothes, utensils, vehicles etc. Nitin Sharma, Founder of GoWaterLess said that “Trillions of water is wasted on vehicle wash. Urbanites seem to demand RO Water even for bathing. People don’t get clean water for their daily usages. Especially during Summer, water crisis is a big issue in many parts of India. World Water Day spreads the message of utilizing it wisely. Understanding the importance of water to the core after experiencing an acute water crisis at my family business of automobiles – I decided to innovate a substitute and something which has a finishing touch too. Modern world is formed in a way that Water is easily accessible and people don’t have to travel far to have it and hence no one values it. Even now in many parts of country people have to travel many kilometers for their daily necessities. We can change the system by re-building our needs. If cities will negotiate with smart usage in water management – villages will not face droughts.”

According to one estimate, a mere 5-10% improvement in water efficiency would be enough to meet the drinking water needs in the country. But much of the strategy to address the impending water crisis has focused on only the ‘supply side’ – To keep pace with India’s population growth, large infrastructure projects will be necessary to harvest or tap into more and more.