Properties, Homes & more

In a recent survey by Reuters, More than a quarter of Americans currently renting houses and apartments have no intention to ever buy a home!

The survey, by real estate search site Trulia.com, found 27 percent of renters do not plan to ever buy a home. Although 72 percent still expect to buy eventually, that proportion is down from 77 percent six months ago.

Of those who do hope to become homeowners, two-thirds say they will wait two years or more. This reluctance to buy could drag out the real estate market’s slump longer than many have predicted, Trulia said.

Renters converting into buyers are crucial to turning around the housing slump, but the current economic crisis is causing people to become very hesitant to get off the fence and buy a home. Among the factors affecting sentiment: Renters are unable to save for a down payment, or they are waiting to get a new job or for mortgage rates to go even lower. Trulia’s online survey of about 2,000 Americans was conducted by Harris Interactive in late July.

[Ref: ABC News]

In Grand Isle, La., July-August usually is a busy season for most realtors. Interested buyers come to check out the available properties in this barrier island known for its July fishing rodeo, sandy beaches and vacation homes. But since the Gulf oil spill sent a sheen of oil into the island’s bay, Curole’s buyers have fled. First, they put closings on hold. Then they canceled contracts. Now she’s hoping to get some money from BP for lost commissions.

The beach is now clean, she says, but sales are still suffering. The buyers aren’t simply there. In coastal areas of Alabama, Louisiana and Mississippi, the spill has whacked housing prices. Some residential and commercial development deals have fallen apart, and Realtors and brokers have watched demand falter as some buyers balk.

Most of the 4.9 million barrels of oil that gushed from the well have been contained, with about 26% dispersed into the waters, scientists at the Interior Department and National Oceanic and Atmospheric Administration reported this month. Waters most affected by the BP oil spill are largely between Louisiana state waters at the mouth of the Mississippi River and waters off Florida’s Pensacola Bay, according to the White House. There’s virtually no remaining threat to the Florida Keys or the East Coast, the government has said. But fears persist that property values could drop even in areas where the oil has not been spotted, and concerns that tar balls could wash up has been enough to sink some sales.

We have seen one of the worst recessions of the century for real estate industry. The prices sank to all-time lows, with returns dipping below investments. However,post mid-2009, the property market has regained momentum - not only in India, but also around the world. Almost every metro across the world has witnessed a surge in property sale / lease. Especially, Mumbai, Hong Kong, Singapore, London, and New York. When it comes to London, I can dream of fantastic palatical bungalows situated in some of the most beautiful premises one could imagine. But getting a property in London is equally difficult. The most important criteria for property, especially in Central London, are: Money, Money, and Money.

London property, be it residential or commercial, does not come cheap. And where there is huge money involved, fraud automatically follows. One should be utmost careful while buying / selling / leasing real estate in metros, especially like London. Hence you should always take assistance from expert agencies / brokers - The London Property Buyers (TLPB) is one of these who will provide genuine advice and assistance is all kinds of dealings in real estate in and around London. Promoted by Laurence Moore, this family business is one of the proud members of National Landlords Association of the UK, which in itself is a proof of ethical business practices! TLPB buys directly from individual sellers for cash, so that there is only one entity throughout the deal. No middle men, no hidden charges, no fees… only complete satisfaction and value for money. TLPB can not only assist buyers/sellers in repossession of real estate, but can also offer expert help in various allied areas  like Stop Repossession, Probate & Inheritance, Relocation, Debt Management, and Personal emergencies.

The process of TLPB is simple. As a first step, TLPB will offer you expert advice on appropriate properties for you depending on your requirements. After the detailed discussions, and only after you’re satisfied with the real estate offered to you, the deal - cash for homes - is cracked. And the final step is that you get 100% peace of mind since there is no fishy business out here with TLPB. By choosing TLPB, one can be assured of utmost professionalism, transparent business practices, speed and flexibility, and peace of mind for everyone. If this is not enough a kick for you, you should call TLPB directly at +44.0800.879.9889 and experience the pleasant change! The rule of thumb is: If you want to buy/lease/sell property quickly, turn to TLPB.

Ramakant lives in a 3 BHK flat in a posh Thane apartment. He had purchased the property around 1.5 years ago for Rs 60 lakhs. Today, the cost of the apartment is almost 1.5 times original price. With an (2 times) increase in his pay package, Ramakant is sure he can save some additional money every month. He is contemplating on buying a second house. Is this a wise decision?

Discussion…

Correction phase

In today’s times, the realty sector can be best described as in a correction phase. Ideally, this is the best time to invest in property.

Easy home loans

A few years ago, procuring a home loan was quite difficult with lot of administrative hassles, government hurdles (or red-tape), and high interest rates. People could buy their own homes only towards the end of their careers when they had saved enough (PF) money. Things have changed considerably over these years. If you are a salaried individual of today - employed with a large, reputed firm - and have no history of previous loan defaults, getting a home loan is absolutely simple for you.

Nowadays, the lender decides on your housing loan eligibility after considering factors like age, income, educational qualification, repayment track record and credit history. Interest rates have dropped down to single digits. You can, in fact, shop around for the bank that offers you the best deal!

Tax benefits

If you have acquired a second home, the principal paid on both the home loans, will be eligible for deduction under Section 80C, subject to the overall cap of Rs 1 lakh. The entire interest repaid can be deducted from your taxable income for the second house. Only one of your properties can be shown as self-occupied. In case of the second property, actual or notional rental income has to reflect as additional income earned. You can deduct 30 percent from this rental income towards maintenance charges. Municipal taxes can also be deducted from rental income.

Rental income

The rental income that a second property can fetch is a major factor that many buyers take into consideration. This rental income can help pay off a large portion of the EMIs. If the property is closer to the heart of the city, the rental income could be higher.

Conclusion

Considering all above parameters, it seems to be a wise decision for Ramakant to buy a second house, provided he can assure himself a decent cash flow after purchasing the second home.

A few days back, a leading newspaper carried an advertisement on their front page from a builder claiming that they are going to shed a light on the truth and are digging out the fact how the projects from another leading builder are charging Rs 5800/sqft for Plinth Area using hidden costs like Common Areas etc while they charge only Rs 2370/Sq ft for Plinth Area exclusively.

Now, the focus of a property seeker shifts towards the fact that how must he save himself from these smart games from the builder where he tries to buck extra? The smooth talking salesmen on the site of the builder chooses to skip on this fact too. So what should we do? The only way to save your skin from this hook is to have the right knowledge on the Carpet Area , Super Area and Plinth Area.

Here is a quick run-through the exact definitions you should know before diving in to scoop the best deal on property.

• “Carpet Area” refers to the total usable area within the four walls of an apartment or a commercial space, as the case may be. In other words, it refers to the area for which a carpet can be laid if required by the owners.
• “Plinth Area” refers to the entire carpet area along with the thickness of the external walls of the apartment. It obviously includes the thickness of the internal walls and the columns, if any, lying within the four walls of an apartment. The commercial space is not taken into account in calculating the plinth area.
• “Super Built-up Area” refers to the plinth area of an apartment or a commercial unit as added by the balconies and other common areas like corridors, staircase, lift room, motor room, security room, meeting hall, gymnasium and an area reserved for indoor games.

The builders, while advertising or quoting the rates for there properties, tag the carpet area and print the rates of the same in there commercials and public issues. But what they usually sell you is the Plinth Area. There has been a huge lot of roaring on this matter in past and yet the strength of the definition of Builder Area’s is enigmatic.

How many of us really get into the carpet area? We seem to simply go by what the builders say in terms of the saleable/chargeable area.

DO NOT GET FOOLED BY THE BUILDERS. I am intentionally posting this on April Fool’s Day, so as to warn all the readers and prospective proerty-buyers from being called “April Fooled by the builder”!!! Pass on this warning to all those you care about.