Legal Matters – Mumbai Property Exchange

Runwal Bliss – New Pre-Launch Opportunity

Runwal Group headed in this particular deal by the young and dynamic Mr.Subodh Runwal who is the younger brother of Mr.Sandeep Runwal has successfully acquired the near 34 Acre land parcel in Kanjurmarg East. The location is very convenient from the Highway and the incoming traffic rush nearly terminates at the Kanjurmarg Junction on the Eastern Express Highway before heading towards Vikhroli.

This location is a developing location and with Lodha Group entering into this location nearly 8 years ago, it changed the face of the Kanjurmarg location with IThink complexes and Lodha Aurum Grande, which is currently priced at around 14000 to 16000 PSF.

Runwal Group has named this project as Runwal Bliss and the first phase will be launched at the rate of 11500/- PSF which seems a fair price for the location considering the large land parcel the occupants will enjoy over the next few years. The planning is simple with 1.5 BHK, 2BHK, 3 and 4 BHK, thus a home for every one.

Another USP of the project is that it has the railway station in close proximity and within a 5 min walk you can take the trains to South Mumbai or Thane or Kalyan.

In 4 Years time, we anticipate that the price in this region will be over 17000 to 18000 PSF as a base price. The current ongoing rates in Powai are in the range of 20000 PSF and above.

Its a new location and yet to be completely developed and has a great scope for a fantastic township with impetus on comfortable housing in 3 phases and we anticipate that the project will be completed in the next 6 to 8 years.

“Buy – For Long Term Investment and Buy for Self Use, you cannot go wrong at this price with the kind of open space around.”

For Preferential Bookings – Research Report – Please call Sandeep Sadh 9820030685 or email ssadh@mumbaipropertyexchange.com

A few of the Media Links covering the Land Sale.

http://www.firstpost.com/business/real-estate/big-land-deals-return-crompton-greaves-sells-34-acre-mumbai-land-to-runwal-for-rs-1015-cr-1983881.html

http://articles.economictimes.indiatimes.com/2014-08-14/news/52807972_1_runwal-group-crompton-greaves-jll-india

http://www.moneycontrol.com/news/cnbc-tv18-comments/crompton-greaves-sells-kanjurmarg-land-for-rs-1015-cr_1154566.html

Coastal Road – A New Challenge or a Dream

As they say, ” There is light at the end of the Tunnel”, same is the case of Mumbai’s infrastructure story. Although a lot has been done over the past few years, but some thing or the other misses at the tail be it final touches, finishing or jam at the end of the new flyover.

The Maharashtra Government has received an inprinciple approval for the Coastal Road which will connect Suburbs (Locations like Kandivili) to South Mumbai may be till chowpatty or some where around Worli we do not know as yet, keeping in mind, we have the Bandra – Worli Sea Link, it be interesting to see the plans which may come up in some time.

The Western Suburbs of Mumbai are choked and jammed due to poor planning, lots of slums and encroachments on the main S V Road etc. East West connectivity is the poorest between Andheri and Borivali with just around 4 flyovers at present servicing the east west connectivity.

A coastal road which will perhaps be along the coast will boost the connectivity to the throbbing suburbs and hopefully with better connectivity, they will be able to decongest the suburbs to an extent. The need of the hour is to open up the coast with Boats, Catamarans, Ferries which perhaps may be a much cheaper to do, but the State Government wants to get into the way of a lot of Environment Challenges, the stretch of Entire Juhu Beach, the Bandstand and the Carter Road.

Let us see what the state has plans.

Please review the following : http://indianexpress.com/article/cities/mumbai/roads-traffic-bridges-get-the-lions-share-in-bmc-budget/

Click here for the BMC Report – http://www.mcgm.gov.in/irj/portalapps/com.mcgm.RTI_GMDA/docs/Costal%20road.pdf

Author – Sandeep Sadh – CEO – Mumbai Property Exchange

The Views and comments are personal of the Author.

Location vs Location

The property market in Mumbai is set for another locational price and demand and supply war.

After the New DCR and specially over the past few months no Developer can complain that he is not getting permission from the BMC as if his files are as per the new norms there is no reason why he should not get permissions to construct.

This has spelt good news for the consumer or the home buyer as each location in Mumbai has something or the other to offer to a home buyer.

The only place we don’t have new construction today is South of Tardeo which is proper South Mumbai.

For further location analysis please visit the research section of our website.

http://www.mumbaipropertyexchange.com/research/consolidated-availability

We do see certain locations having an oversupply and certain locations still have a huge demand.

Overseas Property Buying become easier

Overseas Property Buying is no more a distant dream. With the Government of India giving a relaxation on money to be sent abroad, you can send upto 250000 USD a year.

This will give a good relaxation to people who are looking at overseas property purchase and settling specially to the Gulf.

Interestingly, the Govt of India had curbed the money outflow from India in 2013 to a mere 75000 USD a year and before this new change it was 125000 USD.

The impression with a lot of NRI carry is that the government can change its policy at any time and they cannot plan themselves based on a set outflow each year.

Smart Cities

After the affordable homes, a new concept of Smart Cities has gripped the India Inc. Luckily it’s for real this time with aid and assistance coming from Germany, Spain and USA the three smart cities already announced it looks like reality.

What are these smart cities and what is the vision our Prime Minister Mr.Narendra Modi has for the same is going to be very interesting.

The Smart Cities are made on the platform to provide affordable housing, making it commercially viable with businesses and using information technology to the brink. This will result in a quality life and entrail savings in a family.

In Mumbai there is a fair amount of chance that the new Palava city at Dombivali may get the city status as it has all the infrastructure which a smart city requires.

Financial Planning in Real Estate

Money makes money grow…is a well known saying.

Financial Liquidity to any individual brings in a sense of Security, Confidence and it opens up a box of opportunities. We have all been there and done that as to what can we do with Money in the Bank. Hence, a smart financial planning in real estate is essential.

Mumbai Property Market has always been under some stress or the other either be it Government Permissions, Rules Changing, Rules Flaunting or just an over commitment by the developer.

The issue here is that, whatever the problem may be, or who ever the source, only you have to suffer end of the day after paying the down payment and then endlessly waiting in despair without any clarity, transparency or a future course of your construction of your property. The costs today to buy a property today are exorbitant and hence even a small 1 BHK in Borivali is costing your around 80 Lacs. Imagine getting stuck with that kind of money and not having possession and if you have taken a loan or used a bank to pay the interest or the Emi then in any delay in construction boils down on your head.

As Equity markets and Economy grow, the tilt of the Investor remains towards easy and quick returns, where ever he can make easy money. But with shaking sensex the returns are skewed and unpredictable.

Real Estate on the other hand with Structured Schemes gives you Multiple Benefits.

1. A tangible asset where you can live and secures your family future.

2. What ever we may say about equity and investment once you are in your bedroom or living room or the balcony, it gives you a sense of pride and confidence when you are in your own home.

3. Gives you perennial tax benefits not just the year you buy the property but continuously for 15 to 25 years.

4. If you have taken a Bank Loan for your investment and you have rented your property then your entire rent can be set off against the EMI paid, thus giving you substantial tax savings.

5. Structured Schemes like 20;80 kinds give you the liquidity to use your personal equity efficiently.

For more details and Financial planning please feel free to call us on 9820030685.

Sandeep Sadh

Pre-Approved Home Loan benefits for Home Buying

When ever we speak to a home buyer for a home loan, the answer is let me finalize the property first and then we will apply for the loan.

In ideal scenario, you should get this home work done as this gives you the added confidence about buying a property well knowing in advance that you are entitled to an X amount as a Home Loan and you will have a Y amount as an EMI to pay every month or year. With a lot of paper work, CIBIL checks etc. you should not be under double pressure when you are buying a property.

A few developers even give a benefit in price if you go with a pre approved sanction letter. Imagine you paying around 11236 for a sanction and you walk away with upto 10 times as a benefit upto Rs.1,12,360 as discount from our New Property Buying – Get it Right – Series offers by select developers.

For further details please feel free to call me on 9820030685 or email ssadh@mumbaipropertyexchange.com

Benefit from the New Launches

A few years back there were limited launches owing to the DCR rules and subsequently in 2014 we have seen a lot of new launches.

The new launches not only give a home buyer an opportunity to get into the project at a nascent stage but also enable to create an asset or build a home with a good 3 to 4 year payment plan.

A few tips to get into the right project;

Ensure that you are dealing with a good brand in the market with proven track record. No point investing in a cheaper non branded property if you don’t get delivery on time or even get it.

Going forward the market is going to be brand conscious.

Get into it on day one and understand what are the options coming up. You can know about new launches by subscribing and registering on our website.

Find out a total cost sheet and understand if there are any hidden costs.

For more information on new launches and a personal discussion on your investments please feel free to call us on 9820030685.

Secondary market sales complications to boost Primary Market Sales

Secondary market also termed as the “Resale Market” is the most uncertain and unpredictable real estate market. The buyers willingness to sell changes every few days due to either new offers or his realisation that he won’t get any thing else better after he sells; or he realizes that his documentation is not perfect and either the society does not have Occupation Certificate or suddenly he gets offer which are varying from 10 to 15 percent higher which confuses him further.

The benefits in the Secondary Market are although manifold like, you get a ready possession property, your outgoings are lower, you can set off your Capital Gains easily, you can rent out the same as well. You do not have the extra levy of the Service Tax and Vat which directly saves you 3.71% + 1 = 4.71%. The downside here is that you get an older property and even if you were to do basic changes in the house, the above savings of Taxes washes away in the expense to do up the house.

However, due to a demand and supply mismatch the buyers experience is turning out sour. On an average a buyer scouts for over 3 to 6 months and tires himself, goes through a few failed negotiations and settles for the first clean deal in the market with a compromise.

On the other hand with the Primary Market with a variety of choice entices the home buyer with swanky and luxurious lifestyle homes. The latest being, the financial schemes like 10;80;10 or 20;80 etc available for the home buyer which further benefit him, if he chooses a new home from the Primary Market.

It surely is debatable that which option is right but the pendulum seems to be more on the Primary Market. The only other option for a home buyer is to lap up the investor flats as soon as they come in the market.

Structured Schemes Hit the Mumbai Property Market

Home Buyers in Mumbai, Thane and Navi Mumbai have never had better days, the market is ripe with Structured Schemes. Every few days you see large advertisements and hoardings with 10-20-10, 25-75, 20-80, 10-90-10 and even 5-90-5 schemes.

These schemes are to lure the fencer sitter buyer to get him out with a minimum down payment from his own side which typically means no hit to the Buyers Liquidity and much safer transactions because the Banks are involved in the transactions.

We have been reiterating this again and again, that one must take even the smallest exposure of a Bank Loan, as the Bank does the due diligence for the property and since the payment to the Banks are construction linked, the accountability quotient is far higher.

These schemes are actually a boon for the Buyer because he does not have to shell out a lot of cash from his own pocket and hence the ROI is far higher. Also, for home buyers who are presently on lease, get a lot of respite as they are able to continue staying in the rented flat in case the scheme provisions for interest bearing by the developer.

One has to understand all these schemes thoroughly and read the fine print and then take a call. A lot of time it is also seen, that the Developer has offered the Structured Scheme but he has raised the prices and then you should ask for both the Structured Scheme and Construction Linked Plan (CLP) to ascertain the difference in the pricing and the scheme benefits.

For any further understanding on these Structured Schemes, please call me on 9820030685 – ssadh@mumbaipropertyexchange.com