Commercial Property Purchase - Needs a well Inspection...

As a real estate agent it pays to have a good approach to listing commercial property. A system to the process is a good idea. Not only will a system help you ask the right questions, but it will show your professionalism to the property owners.

When you are listing in a competitive market place it is highly likely that another agent or two will be inspecting the same property later in the same day. It thereby follows that the agent that is the most professional in the inspection process is highly placed to win the listing.

When times are busy you could be inspecting 2 or 3 properties a day for the purpose of listing. So a property inspection process is valuable to you in your listing conversions. I split the process into 2 levels as below.

My inspection process of a commercial, industrial, or retail property could be similar to the following:

The Preparation

·          Check out the property title ownership detail before you get to the property

·          See if any encumbrances or rights of way impact the property and if so how

·          Get a copy of the local survey plan for the street and area

·          See what the zoning and building codes do for the property

·          See if there are any orders or notices on the property at the moment in the local building authority office

·          Research the property sale and rental history over the last few years

·          Review the tenant mix and lease profile from known leases

·          Get details of recent comparable sales and rentals in the area

·          Look for comparable properties in the same area that may be for sale or lease now and that could impact the marketing of the subject property

·          What vacancy factors exist in the property currently?

The Inspection

·          Check out the boundaries for the property and proximity to neighbours

·          Walk the local street to understand visibility and access to the site

·          Look at the signage of the property for identity and impact

·          Review the building improvements for suitability and function. Are they what the market wants today?

·          Get a copy of the tenancy schedule for review

·          Ask about building income and expenditure performance (especially if the property is for future sale)

·          Walk through the property with the owner or landlord whilst asking questions about current property performance

·          Review lettable space and common areas for practicality and operation of the property investment

·          Look for any vacancies and see if they are dragging down the function of the other tenants nearby

·          Ask about anchor tenants if they apply in the property and get copy of the leases to see the terms of occupancy.

·          Take plenty of photos that can help you later with notes and review analysis

When you inspect a commercial property for the first time it pays to have all the facts researched before you get to the property. In the actual inspection get more details from the property owner on current issues and concerns. As a general rule do not price a property at the inspection. It is far better to take the inspection information away for greater analysis. You can then formally present your findings to the owner at a later meeting.

Preparation is the key to a good property inspection. It sets the scene for the later listing pitch with the property owner. When you know all the facts and you have fully researched the property it is far easier to close on the listing.

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Home Loan - Be Careful While Balance Transfer

Home loan industry in India has come of ages. Consumer is King. And definitely, if you are the one with sound financial background and impeccable credit history you can strike a better deal with the banks in terms of interest rates and other payment conditions.

Interestingly, the same is applicable on those, as well, who have already availed a loan from a bank. Near about all the major public and private sector banks are now offering the option of 'Balance Transfer' on housing loans

What is Balance Transfer all about? 

There are times you find that the interest rate on your home purchase loan that you were paying at the rate of 10.5 per cent per annum was quite high in comparison of 9 per cent offered by some other bank.

In this case you can trigger off the balance transfer option with your existing bank, under which the unpaid portion of your home loan would get transferred to your desired bank, thereby taking benefit of the difference in the interest rates.

Things to take care of:

Tenure of loan:  Ideally, you should consider taking the balance transfer option when the remaining part of your payment period is more than 5-years. 

There is no point in transferring the home loan from one bank to another if you end up paying pre-payment and other processing charges even more than the difference of amount you had to pay towards interest in the normal course. 

Pre Payment Charges: Banks like SBI, IDBI and ICICI offer benefits like payment of the pre-payment charges to your existing bank. So you must confirm the same with the new bank that are they ready to deal with this matter or not.

Additions in the loan amount: You must confirm that the amount of your home purchase loan is perfectly in line with the balance you had in your previous bank. It may happen that your new bank pays all pre-payment and processing charges on your behalf and add the amount later to the principal amount of your housing loan.

In such case, you have to suffer the impact of compounding, which does not favor you in the long run.

Final Word:

Seeking balance transfer option needs the similar degree of caution and study that you undertake while taking home loan. And of course, you can save a considerable amount of interest charges under this option once you strike the right chord!

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Bangaluru - After IT now its Real Estate Hub

Bangaluru has over the years gained immense popularity as the hub for IT industries in India. With great opportunities like world class education, working environment, living standards it is not wrong to mention it as the “The Silicon Valley of India”.

Many non-Bangaloreans now call the city their home. It is interesting to note that over 10,000 dollar millionaires and about 60,000 super rich people are currently living in the city with huge investments to make. All these have made Bangalore a hot spot for Real Estate Market, both Residential and Commercial.

Residential market has seen some significant action with many developers like Prestige and Sunil Mantri, Sobha, rolling out new projects in micro market segment. Some of the key areas in Bangalore, where the residential demand has picked up, are Sarjapur Road and Whitefield, Doddakanenahalli and, Jayanagar.

The supply is growing in line with the revived commercial real estate demand. Latest report from Cushman & Wakefield implores that the total projected supply for the current year is 12.42 million square feet of office space, more than twice the supply delivered in the year 2009.

Indian Market Research Bureau (IMRB) conducted a survey among 5 cities, amongst individuals aged between 25-39 yrs, stated that Mumbai and Bangalore are the most preferred places to live as the cities provide the best quality of life as well as the most courteous people. Bangalore is also identified as a city which is in the process of development on multiple counters – numerous projects have been initiated in areas of Infrastructure, Power, Water, and Sanitation.

All this indicates that this will be a good investment destination, hence attracting FDIs and NRIs fund flows as time goes.

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Home Improvement Loan

Make your old home into a new one with Home improvement loan :-


While it is common knowledge that banks lend money to buy a home, few are aware of their home improvement loan products.


People can approach a bank and seek a loan towards the home improvement project. What is home improvement? Home improvement includes tasks that enhances comfort of your property, beautifies and upgrades your property, and takes care of maintenance and repairs.


Some typical home improvement works : 

Water-proofing and sound-proofing Reworking on plumbing and electrical systems Wood work Painting Flooring Upgrading the kitchen and bathroom fixtures Repairs to foundation, drainage Masonry and concrete works Garden and lawn improvement Addition of swimming pool, sit-out, fencing Installing fire and electrical safety features Converting unused areas like attics into usable living space 

Home improvement is also called renovation or remodeling. Most lenders finance up to 85 percent of the cost of renovation, depending on the market value of the property. If you are an existing customer then some banks may lend the entire 100 percent of the renovation cost. Borrowers can use this money for internal and external repairs, and other structural improvements including painting, waterproofing, plumbing and electric works. 

Land purchase loan : 

This can be explored if you are keen on investing in a piece of land. Some people may want to construct a house on it while others may prefer to keep it as an investment. Land purchase loan is a convenient loan facility that helps you purchase land with financing of up to 85 percent of the cost of land. The maximum timeframe for loan repayment is usually 15 years. 

Home loans are the most popular products with homebuyers. As much as 85 percent of the cost of buying a house is given by the bank while the remaining money has to be brought in by the applicant as margin money. You can avail a home loan to purchase a new or resale property, construct your own house. 

Home extension loan : 

This is meant to be used for the extension of an existing dwelling unit by the borrower. You can opt for a home extension loan when you want to increase the space in your house.


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How To Find an Apartment

Finding an apartment to rent is a really time consuming and essential venture. It may seem like a challenging task in the beginning, but when one takes the time to become educated on the apartment options, the experience will be a lot more enjoyable. A lot of people fail to examine apartments completely, and have a clear idea of what they want. Consequently, the apartment shopping experience can frequently be discouraging. Looking for certain key elements in an apartment could make yield higher satisfaction.

When searching for an apartment, it’s always best to have an idea of what you want. Figuring out certain price ranges before you begin taking a look at apartments will save you a lot of time. Additionally, take into consideration what kind of apartment you would be enthusiastic about. How many bedrooms and indoor square footage an apartment has is very important to most people. Also, try to get at least some kind of idea of what type of neighborhood you are searching for. When searching for an apartment, you want something which will fit your needs.

Also consider the location. Location is very essential because of schools, jobs, and neighbors. Some apartments may appear extremely appealing, but are located in inconvenient places, or in bad neighborhoods. A few neighborhoods have too much noise and high crime rates. Better apartments will be far removed from these unpleasant elements. Sadly, the more expensive apartments are usually the apartments in better locations. This is an unavoidable fact, and ought to therefore be taken into consideration when searching for an apartment. Don’t let prices scare you into renting an apartment in a bad neighborhood.

Consider the owner and manager of the apartments. Learn if they have good reputations. The best managers are there for their tenants, and are always prepared to assist. The best owners charge a fair rent and avoid increasing rent. Some of the best owners will offer the best deals on appliances and services. When visiting an apartment, don’t be afraid to ask tenants what they think about the landlord and owner. If all of the reviews are positive, then you may have uncovered the apartment for you.

Look for apartments that have similar neighbors. If you’re a bachelor, then you might enjoy having neighbors who are single. If you have kids, then it is always a great idea to search for a family-oriented apartment complex. If you live close to people with comparable backgrounds, you’re more likely to form friendships, endure fewer conflicts, and have a much more fulfilling living experience.

Finally, think about the look of the apartment. Some apartments appear lackluster and seem filthy and unappealing. A good owner will take pride in his or her apartment complex. The best apartment complexes have good landscaping, paint

jobs, trees, and many other attractive elements. Most individuals want to be happy with where they live. Searching for a well run, appealing apartment is always a great idea.

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Home Insurance Terminology

What is Home Insurance?

It is a protective cover offered by a General/Non Life Insurance company against natural unforeseen disasters (fire due to short circuit, gas cylinder explosion, earthquake etc.) and man-made disasters (burglary). So you are provided with financial protection in case of any damage to your property which would include both building and content provided you have selected a policy covering both.

Types of Home Insurance

There are mainly two types of home insurance policies available. They include

• Building insurance: Here the building structure of your home is insured for its reconstruction value i.e. the cost incurred to reconstruct the home. Both natural and man-made calamities are covered.
• Fire, Lightening, explosion of gas in domestic appliances
• Bursting and overflowing of water tanks, apparatus or pipes.
• Riot, Strike, Malicious or Terrorist Act
• Flood, Inundation, Storm, Typhoon, Hurricane, Tornado or Cyclone
• Damage due to earthquake, subsidence and Landslide (including Rockslide).
• Damage caused by Aircraft & Impact damage

• Content insurance: This is optional but with threat of burglaries, natural disasters, it is beneficial to opt for it. Content insurance provides protection to contents in the house that is not fixed to the home. The contents are covered on the market value of the items and in case of a loss; the insurance will be paid on the cost of purchasing the item less the depreciation for usage. Under this protection against various perils are provided including
  • Valuables such as jewellery, cameras and watches
  • Cover against all kinds of accidental breakage of plate glass fixed in doors and window frames
  • Loss/damage to domestic appliances due to electrical and mechanical breakdown.
  • Fire
  • Storms/flooding
  • Explosions
  • Theft and vandalism

You have a choice of buying insurance only for the building or only for the contents or for both. Buying insurance only for contents is done mainly when you are living on rent.

Coverage

• Building insurance: The value of the house is essentially area of your house multiplied by the rate of construction per sq. feet. So if you have a 500 sq. feet house and the rate of construction is Rs. 1000, then the sum assured would be Rs. 500,000. A property more than 50 years old is not insured. Also insurance companies consider only ‘Pukka/Permanent’ construction.           
• Contents in the house: They are assessed on the market value of the items. This means in case of a loss, the claim value would be the cost of purchasing the time less depreciation for usage.

The policy provided by the home insurance companies act as a guarantee that combines insurance of the home, its contents, the personal possessions of the homeowner. The extent of the risk covered will depend on the type and content of the policy.

What are the typical exclusions?

• Any loss or damage by the insured and/ or insured’s domestic staff direct or indirect involvement in an attempted burglary.
• Any loss or damage on account of loss of  money, securities for money, stamp, bullion, stock or share certificates, business books, documents of any kinds, ATM debit or credit cards, unless previously specifically declared
• Any loss or damage to any property that is illegally acquired, kept, stored which is subject to forfeiture.
• Any loss or damage occurring while insured’s home is unoccupied, for a period of more than 30 days consecutively and if the insured failed to inform the company about the same.

What happens to your insurance policy if you sell the property?

You should cancel the policy and premium will be returned to you on a pro-rata basis.

What is the procedure for claim settlement?

• Inform the call center with policy details. Several insurance companies have a 24 hour call center service.

• All necessary information will have to be furbished which includes policy number, personal details, and other details regarding your claim. Consequently, your claim request is authenticated and is escalated to the company’s claims department.
• Company’s claims department validates and registers the request. They appoint a surveyor within 48 hours.
• The insured submits all the relevant documents to the surveyor. The surveyor submits the Final Survey Report (FSR) along with the documents within 7-15 days.
• If surveyor is not appointed, the company’s claims department sends a letter of requirement for submitting documents to the insured.
• On receipt of documents, the claims department processes the claim within 7 -15 days.
• On approval of the claim, a letter is send to the insured giving the approved amount of settlement
• Payment cheque is released

Home insurance policy gives the home owner not only financial protection but also more importantly peace of mind as his single largest investment is protected from all hazards.

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Value of your property

Applying for a home loan before deciding on the property may bring nasty surprises later. Also, the banks incline more to the consumers who has finalize the property as it gives them a scope to start their evaluation and technical process. The amount of home loan looses its significance if valuation of the property is different from the bank’s valuation. However, a number of property developers have tie-ups with banks today. So, one can get the fast home loan as the projects are already pre-approved by HFCs.
Your checklist differs in case of the loan for second hand homes. The pointers for the concerned will include:

• Will the property be acceptable to the lender?
• Can you show all the documents and No Objection Certificates required by the bank in the same format?
• Will you bank agree on to evaluate before you pay the processing fee?
• Do you accept the valuation done by the bank?
• Will an amenities agreement (if any) affect your loan eligibility?
• If the property is under construction, check if the property developer and the stage of construction are acceptable to your bank?

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before taking a home loan

Once you decide to avail a home loan, the next thing that storms your brain is choosing between fixed and floating rate of interest. And here is where you are caught in a catch 22 situation.

Usually, when news media splashes reports on banks increasing home loan interest rates in India and their impact on Equated Monthly Installment (EMI), you deem it better to opt for fixed home loan rate. In fact, your banker may also advise you to go for the same.

Now ideally as it should be, we assume that once you select fixed rate plan for yourself the rate of interest will remain unchanged over the entire tenure of the repayment period irrespective of any subsequent increase in the same. But actually this is not the case.

Here we demystify the nature of fixed interest rate housing loan transaction for you so that you could make an informed decision over the matter.

• All the banks include the reset clause on fixed interest rate in their home purchase loan agreement papers. So if you had taken the loan @ 10.5 per cent for 15 years it does not mean that the same rate will be applicable all across the period.
• India’s largest public sector bank State Bank of India (SBI) has introduced a clause as per which it has right to revise the fixed rate home loan after two years. Similarly, Canara Bank and Corporation Bank also have similar provisions to revise the rates after 5-years of disbursing the loan.
• Private sector banks and Non Banking Financial Corporations (NBFCs) are also following the same policies and the rates too are revised from time to time.

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Few tips for good deals in real estate

Real estate commonly refers to immovable property. In judicial point of view real estate refers to legally approved properties. Real estate related information is of vital importance because of complex real estate business environments. Thus information on various real estate aspects such as mortgages in real estate, property management builders, real estate law, vaastu consultants, real estate calculators, buying & selling advice are indeed helpful for all stakeholders. Good articles on real estate give vast insight to the emerging market of real estate.

Real Estate Law :
Before jumping into any real estate deal the buyer or seller must be well versed with the concerned law of the land and its wider implication. Without prior legal and business knowledge the stakeholder may trap into troubles.

Property Management :
Property management is an integral part of real estate sector. Adequate information on property types, functional aspects and management is utmost essential for a property manager. Application of appropriate methods in property management helps the stakeholder to gain high profit and enable him to compete in a sustainable way.

Buying & Selling Advice :
Real estate market is a fast growing sector, where the fluctuating behavior of the sellers and buyers must be closely monitored before any kind of deals. The stake holder must be well versed with all modalities related to buying and selling. It is also important to know all legal provisions related to property management and transfer.

Real Estate Calculation :
Real estate calculation is an important aspect of buying and selling. Information related to such calculation makes the stakeholder to access the authentic rate of property. Various types of methods are used for such calculation. So, it is essential for the concerned stakeholders to evaluate the genuine rate of the real estate as per the existing methodology.

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property and real estate

jaipurpropertyclub.com is Leading Real Estate Company of Jaipur. We assist in Buying, Selling, Leasing of Commercial and Residential properties and also provides best investment on rent. Jaipur Real Estate Agent & Property Dealer for Real Estate & Properties in Jaipur. Get help here to find House, Office, Land, Showroom, real estate in Jaipur, Rajasthan, India with Real Estate Agents. jaipur property club provide at one place all facilities as like Residential, Residential Plot, Residential House Residential Flat , Builder Floor Apartment , All commercial , Commercial Land , Commercial Office Space , Commercial Shop , Commercial Showroom , Business Centre , Warehouse Godown , Industrial Land , Industrial Building , Industrial Shed , All agricultural , Agricultural Land , Farm House , Paying Guest , Guest House, Hotel, Home Loan, Architects, Interior Designers, Home Insurance, Banks, Marble & Tiles, Moduler Kitchen, Home Appliances, Vastu & Feng Shui etc.

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