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

 

 

 

Mumbai Property Prices set to increase after 31st March 2014

Any news paper you see today in Mumbai carries dozens of ads of Gudi Padva offers and below it a fine print saying Book before 31st March 2014 and save few lacs rupees.

This essentially means that after 1st April 2014, you will see an increase in the Property Prices in Mumbai.

With Stock Markets on a high and with lots of new launches, the home buyers are back in the market, but with a cautious approach this time.

The developers version remains that there has to be a cut off time for a decision and if there is no fear of a price hike, the home buyer continues to be on the fence. The Home Buyer feels it is an undue pressure on him to buy a house.

Unlike yesterday’s  market, the buyer has many options today, locations between Andheri East/Powai and Borivali, we have 50 odd projects of Top Developers competing with similar lifestyle projects, Thane has the same story with every developer giving the best possible amenities and prices.

The market sentiment is surely high, the Investor domination still remains agile and the impetus is more on the smaller ticket sizes. South Mumbai is seeing fierce competition and a few developers are seen to crumble under pressure.

Mumbai market is one of the strangest markets, where in the developers take ques from their peers and make large size apartments where the appetite is for smaller ticket sizes.

It is unpredictable as to which side the markets will go forward in May 2014, but the Developers have certainly added a cushion of pricing with the price increases slated to be hiked come 1st April 2014.

Sandeep Sadh -Mumbai Property Exchange.com