Properties, Homes & more

A small village located on the border of Uttar Pradesh and Haryana (both Indian states) is proof of how important Bollywood is to India’s mindscape. Ever since teaser advertisements of actor-producer Aamir Khan’s latest offering, Peepli Live, started being beamed on TV, land prices in the picturesque stretch of farmland have started going up. The village’s only claim to borrowed fame is that it is also called Peepli.

The Bollywood angle to real estate fortunes is not a new one. Prices of flats and areas tend to shoot up when a Bollywood celebrity stops by. Wai in Maharashtra’s hinterland became fashionable after film-maker Prakash Jha shot one of his rural masterpieces (Mrityudand) there. Similarly, flat prices in La Mer building at upmarket Bandra soared after cricketer Sachin Tendulkar and actor Aishwarya Rai bought flats there.

However, the latest episode of Bollywood magic can be seen in Peepli. In the last one month, inquiries for the purchase of farmlands have gone up. Ditto with marriage proposals for bachelors. The demand for land in Peepli is good, fetching higher prices than other neighbouring areas. There is a 33% jump, from Rs 20 lakh per acre to Rs 30 lakh.

Bhopal has also been affected by Bollywood, post-Raajneeti. In Mumbai, according to real estate agents, the buying rate of a “celebrity building” is often hiked even if it is artificially inflated in some cases. After Kangana Ranaut bought a penthouse in Bandra, the rate of the building shot up by 15%. Ad film-maker Prahlad Kakkar recalls how the rates of La Mer, where he stays, increased after Tendulkar and Rai moved in. He said, “Overnight, the rates shot up by 25%. I feel the reason was more to do with the free security that the building got. Sachin has a Z-security cover.”

But the Bollywood lift to the real estate market has its downside too. For instance, the death of a celebrity severely affects the rates of the house. After actor Priya Rajvansh died, it was difficult for her brother to sell the house; and the flat in which producer Neeraj Grover was murdered allegedly by navy man Emile Jerome and aspiring actor Maria Susairaj finally had a distress sale. It is also alleged that no one wanted to buy the flat in which Ramgopal Varma shot his horror film Bhoot. Most of these flats have to be sold at distress prices and often, they are only bought by those who are interested in them as an investment and don’t plan on staying there. Families will never buy such homes because they feel they are jinxed.

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.

Banks say NO to uniform home loan rate cut

The contentious issue of “uniform home loan rates for old & new customers” cropped up when CEOs of large banks recently met senior RBI officials to suggest possible measures that the central bank could consider for the January 29 monetary policy. At the meeting, RBI deputy governor KC Chakrabarty reprimanded bank chiefs over their inability to pass on the benefit of lower interest rates uniformly to all customers - including old customers. It should be remembered that this has been a common practice among lenders that while they are slow to pass on a rate cut, they are quick to hike either the loan term or the EMI when rates go up.

Bankers argued that since the incremental cost of fund had softened, they could charge lower rates only to new customers while old customers had to pay more as old funds were raised at a higher cost. Countering this, RBI said that reduction in incremental cost of funds also brings down the average cost of fund for a bank which should then be in a position to offer the new, lower lending rate to old as well as new borrowers. Some banks even said that offering the same rate to all customers could spark legal feuds since interest spreads (over or below the PLR) varied from customer to customer, each of whom sign separate loan contracts with banks.

Cheaper home loans to old customers not feasible: IBA

Amid a debate over teaser rates, bankers have turned down the RBI’s suggestion to extend the cheaper home loans to existing customers saying that the move will impact their bottom lines. The IBA said if banks offer lower rates to old customers as well, this will affect their earnings as it is not feasible for them to change their deposit rates accordingly to compensate this loss of interest arising from such a move.

Banks will not withdraw prepayment penalty on forclosure

Competition Commission of India (CCI), the apex body that operates to sustain and promote competition, recently sent notices to atleast 15 banks, NBFCs and IBA seeking explanation on why they penalise borrowers who choose to foreclose loans. Many of these institutions have already replied to CCI, to make it clear that the removal of prepayment penalty will result in higher lending risk and may cause asset-liability mismatch in banks.