Investment is a term which can make anyone starry-eyed, as soon as it enters one’s ear. It’s just like a dessert which everyone loves to dig in, desires to have more, makes one extremely happy when it is good, but in the same way, is a spoiler when not as expected. So it is necessary to choose your dessert wisely. You must give your brain a good exercise before jumping into a decision to invest. If you think what difference is it going to make if I choose residential or commercial realty space for investment, then you are wrong. There is a lot you need to know. Want to know what? Read on!
Majority of us get attracted to apartments when it comes to an investment, as we find it easy and safe. But surprisingly, commercial property is the real treasure! According to the experts, commercial spaces can fetch you higher returns compared to the residential ones. Here are the benefits and drawbacks of both.
Investing in a Commercial Property:
- Long lease periods are possible, which will give you steady and higher assured returns
- Maintenance or repairs become the tenants’ responsibility
- Commercial spaces will definitely give you a lot more than the original purchase value and that too in a short period of time
- The number of terms and conditions in a lease agreement are less as compared to the residential one
Investing in a Residential Property:
- Residential investments are easier to understand, they are less complex and any newbie investor can own one easily
- Housing segment is always on demand and so market fluctuations do not affect it much
- The valuation of house rental is done on the sales comparison basis. As you can easily find sold residential properties that are identical to the one you stayed in or were looking for, the rentals are almost similar
Investing in a Commercial Property:
- Commercial ones need to be studied well and then invested. Seeking professional guidance may help you get an excellent property that will generate a fixed extra income
- As commercial segment receives the direct impact of the economy and real estate market cycles, it comes with leasing and vacancy risks
- Valuation varies in the commercial ones, as hardly any offices or shops look identical. So, sales comparison is rarely done and income approach is much preferred
Investing in a Residential Property:
- You may face the need to sell the property anytime, so longer lease periods become difficult
- Being the landlord, all the maintenance or repair cost will fall on your shoulders
- You will get more than your original purchase price, but if the property value is down, chances are that you may get only a few percent higher than your purchase value
- The lease terms and conditions of this segment are lengthy and deep
Pros and cons are a part of life. Everything in the world comes with them and so, analyzing, understanding and choosing what is good for you or beneficial to you will make you a winner. Sun Builders is one such real estate developer in Ahmedabad that offers you myriad varieties of residential and commercial realty spaces, at profitable locations with class apart amenities and clear and hassle free transactions, which will all guarantee to give you excellent rental returns.
So, come and explore our projects and select the property you desire, to gain the jackpot of rental returns. Visit www.sunbuilders.in now!
Investing in real estate is not a piece of cake. Though it is a slice that everyone desires to have, you need to give some thought to it, before jumping in, like, whether the slice is worth having or not? Will it be beneficial to you? Will it turn out to be a spoiler? And so on. A commercial property is said to be the best choice for investment, rather than a residential property, as it yields you with good financial returns. So, in real estate, if it’s the commercial space doing rounds in your mind then, here are the six points that you must refer to before you handshake a deal.
- Location – The topmost important factor for a commercial space is where it is standing. Be it any kind of business, location decides its fate. For a business to establish, it needs customers and they come when your commercial space has some good connectivity with residential or populated areas. So spy on the surroundings first and then own it.
- Check the neighborhood – It can happen that you may get a perfect location but still it lacks good neighbors. Check for restaurants, banks, malls etc. as such neighbors do matter or else you will end up in a desert.
- Maintenance – Be it residential or commercial, every property needs maintenance. Go through the maintenance charges that also includes property tax, building insurance and other costs. Get an estimate of all charges to ensure how deep it goes into your pocket.
- Market Status – Before you invest your earnings into a property, check the market health first. Inquire whether it is a good time to invest or not. Although buying a property when the market is low is good, don’t spend too much time in waiting, as a property is sold out within a blink of an eye nowadays.
- Nature of business – Don’t just buy a commercial property because you are getting it in a lightning deal. The commercial space, amenities, facilities all should prove to be a good match for your business. These things should fulfill the requirements of your business, only then it will attract good business opportunities.
- Expert Advice – If you find yourself trapped in the maze of confusion, seek help. Ask a real estate consultant or discuss it with your friends and family, who will guide you in taking the decision.
There are various other points to consider before buying a commercial property as higher risks are associated with it. So do your homework well and then plunge into an investment. Sun Builders have gifted you with such perfect commercial spaces earlier too and is also now coming up with more excellent commercial hub called Sun Central Park that will prove to be favorable for all businesses, situated at the best location at Bopal Circle that will stand worthy to all these six points and more.
Explore more at goo.gl/pkRDfL
As the Central Government has initiated policies such as the Smart Cities Mission and Housing for all, by 2020, the real estate sector would be ready to fuel up the Indian economy with plenty of innovative projects. To provide quality along with quantity, a majority of Indian real estate developers have already started adopting international methods like dry-wall techniques, prefabricated construction, slip-form construction and Mivan shuttering, making more tech-savvy apartments. Here, technology is not only limited to construction. Indian realtors are injecting technology in every possible section to fire up the demand of projects. From project management to marketing, business management to customer service, technology holds the reins and drives them all.
Adapting such path-breaking technologies has reduced the construction time and the cost of labor, but the best part is that it has improved the quality of homes. A survey shows that millennials are willing to pay about one-fifth more for housing that incorporates smart technology than other generations. The present population surviving in a smart world are looking for homes that have eco-friendly construction, amenities with technologies that will use renewable energy, conserve water, efficient insulation in the walls that will keep the temperature well-balanced and much more.
Where a life without technology is now like an empty vessel, the real estate developers must try to fill in the vessel with innovative and efficient technologies, so as to provide the millennials with outstanding tech-savvy homes. Sun Builders have adopted various technologies long back and is always up-to-date to embed the latest technology in its projects. As a real estate project is a long term investment and with smart technology homes rising up, the realty sector will continue to be in limelight forever.
Explore such technology infused homes by Sun Builders at www.sunbuilders.in
This scenario is credited to the Prime Minister of India, Shri Narendra Modi, who had recently clinched a slew of proposals aimed at enhancing foreign investments in the Indian Real Estate.
Since many years, India has been in limelight when it comes to Foreign Direct Investments (FDI). But now it seems that the real estate will see a tremendous growth in the coming 6 years. The proposed idea of promoting investments and de-stressing on construction sector is mainly for:
- Achieving higher growth rates
- Providing employment opportunities
Moreover, the Real Estate Bill passed by the government bodies, is expected to facilitate monetary benefits in the sector.
Though FDI equity inflows in construction declined by 84 percent during the first nine months, the Bill still facilitates FDI in the Indian Real Estate. Not only this, the major aim of presenting FDI will essentially work towards:
- Accountability and responsibility
- Information in the public domain
- Robust transparency in the sector
Thus, the scenario will work well for both, home buyers and the real estate developers too. The bill will help boost the overall image of Indian real estate that will attract Investments Avenue across the world. Thus, the FDI will step forth in the retail real estate with a big bang!
Looking at the scale of ongoing deals in the Indian Real Estate, PE (Private Equity) players’ investments have marked their footprints into the Indian retail segment. In the first 5 months, the Indian retail has cornered about 8 percent of the total Private Equity (PE) investment. Apart from this, there are some major deals in progress, and if any of these go through, then the year will smash a historic shot as far as PE Investments into retail real estate sector are concerned.
Factors that work in favour of retail and real estate are:
- Improvement in the consumer’s tastes
- Liberalisation of the FDI policy
- Political and economic stability
Thus, the new norms will spruce up the Real Estate Sector with the new proposed FDI policy.
Recently, an amendment was passed by the government bodies, where a set of rules stated that developers might have to pay 11.2% interest on delayed projects, in case they miss deadlines. A few months ago, Ministry of Housing and Urban Poverty Alleviation (HUPA) rolled out some rules to relief home buyers from chaos, bring transparency in real estate sector, and sustain customers’ interest to invest in the real estate property.
The new rules state that home buyers can only demand compensation if the developers fail to deliver their project on proposed timeframe. Builders have to pay 2 % higher than prime lending rates as set by the State Bank of India. Also, if the buyers are defaulters, then they are liable to pay the same amount of interest to the developers.
The move positively impacts not only the home buyers but also the real estate sector, too. Let us see how these new rules prove to be beneficial for property market and real estate.
After Real Estate Regulatory Authority (RERA) Bill that came into act this year, the new rules aim to fix accountability in the real estate for developers and stakeholders. According to experts, these rules will allow developers to win the trust of their customers. Home buyers will be informed about the project in which they are investing along with complete paper documentation.
All these years, delay in projects have become a major concern for buyers and investors, too. But these new rules will make a complete justice to both the parties. It will also help avoid chaos and will also help secure the investments of the buyers.
Real Estate Sector:
The rules will help developers to build credibility, motivate to complete projects on time, and build trust among development authority and end-users. In fact, it is an opportunity where the developer can win trust factor of customers and thereby uplift their brand identity in the market as well.
The real estate industry in India is growing at a speed that can only be seen as rising with every year. Rajya Sabha has recently passed the much awaited Real Estate (Regulation & Development) 2016 Bill in order to protect the interest of property buyers and ease the home-buying process. According to a source, the bill has undergone for several amendments and will be effective to bring accountability and transparency in the real estate sector. This will give advantage to customers to buy property and will also benefit to the whole real estate sector.
Purportedly, the bill sets a firm foothold in the real estates sector and lays a strong foundation in the coming years. The bill will be executed in various factors, incorporating redevelopment and development to smoothen the process in the sector.
The bill will impact on the sector, positively at two levels, i.e.,
1. Micro-level (Homebuyers)
2. Macro-level (Real Estate Sector)
Till now, home buyers were making a raw deal in the real estate sector. But from now, developers will have to make use of deposits (70% deposits collected from home buyer) in the development in only the particular project that are under construction. The project should be completed and delivered on time to home buyers without any delays. It will be developers’ responsibility to strictly adhere and provide the level of quality as stated in the norms during registration.
A few developers offer a warranty for structural damages for 1-3 years, which now has been extended to five years from the date of handing over possession to buyers.
The real estate market is highly non-transparent and most shareholders wish to operate in their own silos. The absence of a regulator is to an extent responsible for this plight. If there is a regulator in the sector then, it will become more cost-efficient and most significantly will ensure that the malpractices are not entertained.
The provisions that are listed in the bill will make the process of home-buying easy and will also have rebounds on the entire real estate sector.
We, at Sun Builders Group, since our inception to date, have gained trust of many buyers by complying with these and many such real estates rules and regulations that have been passed in the past. With the recently passed bill, we will make sure all the amendments are taken care of, as a promise to our existing customers and potential buyers. The foundation of the Group were laid with the bricks of trust, commitment and ethics – and with this bill into adaptation, we are only developing and growing forward.
The living room sets the tone for the vibe of your abode. It is where you entertain guests, watch TV with your family, unwind after a long day at work, or just generally feel alive around people. It is therefore important that considerable thought be put into the decor and layout of this space.
While it may be tempting to pick up a design magazine and replicate the look of the room from one of the featured designs, remember that your home is a reflection of your personality. Form follows Function is the basic principle of modern design. No matter how tastefully decorated a space, it cannot be considered a success until it is used and enjoyed by the people it is meant for.
Flow forms an integral part of your room layout. It is absolutely essential that layout decisions are a factor of how people move in and around the room rather than the other way around.
From a décor and layout perspective, the first thing to do is provide the room with a focal point. In most homes, this tends to be the television. A tall bookshelf or a piece of art work just as well when it comes to providing a visual focus point to the room.
Next is providing visual balance by filling out the details around the focal point with furniture and décor. You can start out by defining spaces by using color or furniture items. Bright colors help define a space while light colors add a touch of openness to it.
Choose furniture, décor pieces, and colors that help create visual cohesion. A well-thought-out living room arrangement can help you avoid impulsive purchases, random furniture arrangements and unnecessary frustration. Turn your living room into a hub of life and activity that you love spending time in. Sun Optima – 2 BHK Nano Homes brings you this handy visual living room layout guide to help you on your way to getting that perfect living room.