Factors to consider before availing your home loan

The next time you decide on buying your property and the amount of loan you require, this article should help. Most customers just think of the interest rates while going for the home loan.

This is a prudent thing to do, however there are a multitude of other things which you should keep in mind as home loan is usually for a tenure of about 20 years. So these factors also mean a lot to your experience during the tenure of the loan.


For more information please reach out to our expert team at Nandanam Consultants

Different categories of home loan

•     Home purchase loan: It is one of the basic types of housing loan which is taken for buying the new house.
•     Bridge loan: Such kind of housing loan helps in financing the new home of the borrower when he is interested in selling the current house. It is mainly a short term loan which is given to the applicant for the period when he is interested in selling the old house and wants to buy the new house.
•     Home extension loan: It can be used for extending or expanding the current home, like, adding an extra room or bathroom, etc.
•     Home improvement loan: Such kind of loan is for doing renovation or repairing of the house which you have already purchased.
•     Home conversion loan: It is the loan wherein the borrower has already taken a home loan for financing his current house but is now interested in moving to some other home.

With the help of the home conversion loan, borrower can transfer the current loan to the new house which needs extra funds. With the help of the new loan, you can make the payment of the earlier loan & arrange sufficient funds for buying the new house.

Factors to consider for your home loan:

• Interest Rate
• Pre payment charges
• Balance Transfer Charges(incase of refinance)
• Part-payment Charges
• Switching Charges (Fixed to Floating or vice-a-versa)
• Loan to Value ratio
• Speed of Sanction
• Ease of documentation
• Simplified credit and legal documentation
• Customer Service
• Franking Charges 

What differentiates a good home loan lender-
A good lender is one who clearly discloses all terms and conditions, is responsive to your requirements and gives you a loan at easy rates. A home loan demands constant servicing for next 15-20 years, and therefore, interest rate should not be the only base of choosing the lender.

    Check credentials of the lender-  It should be remembered, that the Reserve Bank of India (RBI) has no control over what the loan provider will charge. Each lender has its own cost of funds and they accordingly decide the charge whatever it deems fit. So, you should compare what a lender is charging as interest rate to new customer and on loans which are already running with them for past 2-3 years. This will help you decide what would happen to you two years down the line.

    Negotiation- If you are earning good income and have a decent CIBIL score then you should try to negotiate for home loan rates from lender. You might get 0.25 to 0.75 percent rate lower than normal. It also involves doing negotiation for processing fee. Many lenders are charging 0.5 per cent- 1 per cent as upfront fee but if you will do negotiation then it can be lowered to 0.1 per cent.

    Stick to one lender- Never make a mistake of applying to 5-6 banks at a time as after the introduction of CIBIL, each new loan enquiry can lower your credit score by approximately 10 basis points. A low credit score can impair your power to demand an easy rate. So, you do your research or talk to our experts before discussing the final deal.

 Fixed or variable interest rate?- Interest rate varies from time to time and it is a good idea to do a proper analyzing of liability portfolio on the regular basis in order to get maximum benefit out of it. It means, if you are borrowing for a short period, i.e., for 2-5 years, then you should go for fixed rate, or else, you can choose the variable interest rate, in the hope that the interest rate will come down in the longer tenure.

    Right selection- Since loan is for the long-term, therefore, you should select that company which is offering other loan products also, like, personal loan, car loan, education loan, etc. If required, you will be able to get preferential interest rates on other products also on the basis of your track record with the lender.
This will also avoid running from one lender to other for your varied financing requirements.

Crisil ratings for projects in Trivandrum - What it means for your project

CRISIL Real Estate Star Ratings provide city specific all-round assessment of real estate projects and help buyers benchmark and identify quality projects within their city. CRISIL Real Estate Star Ratings address two critical needs in the realty sector: improved transparency and objective benchmarking of projects. The key factors evaluated in the Star Ratings process are quality of legal documentation, construction related risks, financial flexibility/viability of the project besides the background, and track record of the project sponsor. Star Ratings is based on an eight-point scale that is specific to the city— from ‘City 7-Star’, the highest, to ‘City 1-Star’, the lowest being 'Non-Deliverable Project'.  Some of the ratings given by Crisil for projects in Kochi and Trivandrum in Kerala are as follows. The real estate ratings serve to increase the credibility of the developer on one hand and helps the developer get financial funding. This also ensures for the customer good construction quality in the project. As per  ICRA Limited, “For end-users/buyers, Grading provides an independent and objective opinion on the risks associated with the developer’s ability to deliver in accordance with the terms, quality parameters, and time stipulated." Project Name Location Developer Name Star Ratings Kent Nalukettu Palm Villas Kochi Kent Constructions Kochi - 5 Star Ivy League - Phase 1 Kochi Skyline Builders Kochi - 7 Star Ultima Skymax Kochi Ultima Builders and Developers Kochi - 3 Star Project Name Location Developer Star Ratings Asset Signature - Phase I Trivandrum Asset Homes Pvt Ltd Trivandrum - 7 Star Heera Infocity Trivandrum Heera Construction Company (P) Ltd Trivandrum - 7 Star SFS Cyber Palms Trivandrum Skyline Foundations & Structures (P) Ltd Trivandrum - 7 Star

Rating Scale For Real Estate Developers DA1 Excellent The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title is Excellent. DA2 Very Good The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title is Very Good. DA3 Good The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title is Good. DA4 Below Average The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title is Below Average. DA5 Poor The Developer's ability to execute real estate projects as per the specified quality level and within the stipulated time schedule, and ability to transfer clean title is Poor.

Land or Apartment - Which one should you buy in Trivandrum?

This one of the most classic questions for buyers or property enthusiasts in Trivandrum real estate market.

The city itself has expanded over the years with new areas like Kazhakuttam coming into picture due to the Technopark development. Traditions will say that land is the best form of real estate investment. We took a deeper dive to really understand if this was true?

Consider that you bought a 40 Lac apartment (which is ready to occupy), 6 Years back in Trivandrum. Going by the statistics and you can read more about appreciation in apartments in this article, the CAGR for apartments in a period of 6 years is considered to be around 20%. Hence after 6 years your 40 Lac apartment is likely to fetch you over Rs.1crore.

Now assume you had the option of buying a parcel of land in an area within the city at the same time, when real estate prices of land were about 2 Lacs per cent. Let us say after 6 years the same land commands about 12 - 15 Lacs per cent. Hence a plot of 20 cents of land which you had bought 6 years back would fetch you about Rs. 2 crore. Here the assumption seems to be valid.

The question that beckons however is if this were not a plot in such a prime residential area and only gave a 2.5X return on value, instead of a 5X return then the cost of the property would be the same i.e Rs. 1 crore for both the apartment and the land. In addition to the property value the apartment would have also given a rental income of about Rs. 1,20,000 * 6 = Rs. 8 Lacs approximately.

Due to lack of availability of good parcels of land within the city where appreciation is the highest, the decision of buying a land or an apartment needs to be taken judiciously. Proper access roads is one of the key factors in this decision and so is the real estate developments if any happening in the area.

Apartments are always a good bet if the property purchase is based on EMIs which could probably be covered by the rental income. A land is a great investment if present in a good locality with proper road access and real estate development.

Only 27 lucky few get to live in 7 Star Big I project in Trivandrum!

Big Infratech has launched India's first 7 star apartments with 27 exclusive condominiums on 22 floors and as well as with international shopping mall just opposite to technopark campus. The project is under construction currently. This marks the new range of super luxury apartments being opened in Trivandrum. The following is Big Infratech's description and specification of this complex. This could mark a new beginning in the launch of King Size super luxury apartments costing crores in Trivandrum city. For more read here: Big I project

Specification and Description by Big Infractech.

"We are bringing an exclusive project big "i" mall & apartments, the first of its kind, opposite to technopark, trivandrum. Every care has been taken to incorporate the best of amenities and comforts to make this an 'iconic' project. From seventh to the seventeenth floor, you have two apartments on each floor. And from the eighteenth floor you have only one apartment on each floor. In essence you will enjoy the luxury of privacy.

At I, expect nothing but the worlds best. It has the best facilities in the world sourced and installed by the best in that particular area of expertise. For instance, mood lighting is done by Schneider Electric - France, capsule elevator by Schindler - Switzerland,ensuite digital toilets by Grohe - Germany etc. Imagine the worlds best involved in building your home, right here in Trivandrum.

Comes to life opposite Technopark, Trivandrum, the greenest Technopolis in the world. In other words, on the most appreciating stretch of land in Kerala today. Its close to the airport, on the way to Kovalam and the new proposed Vizhinjam harbour.I is the iconic project of BIG Infratech India Pvt. Ltd.

Your apartment at I, sports an unbelievable 360o view of the sky, the sea and the technopark. Get ready to have sunrises and sunsets play an important role in your life.

A 20,000 sq.ft. club floor. The all weather pool with a 10 metre high waterfall, a rain dance area and underwater music can also be a perfect backdrop for the poolside party area. The air-conditioned gym, the spa, and the spaces for yoga, meditation and library will define your tomorrow, today.

:: Green Building standards
:: Opposite Technopark
:: Glitzy shopping mall
:: Sea view
:: 360 panoramic view
:: Air-conditioned apartment
:: Personalized mood light settings
:: Ensuite (digital toilet)|Helipad on roof-top
:: All weather musical swimming pool with 10 metre high waterfall
:: Spa with sauna, jacuzzi, massage room and steam bath
:: Squash court on 22nd floor with spider glass wall
:: Billiards
:: Pool table
:: Bar counter at balcony
:: Personalized lift call button
:: Capsule lift with panoramic view
:: Schindler elevators
:: Automated boom barrier entry for car parking
:: Biometric access
:: Personalized elevator
:: Air-conditioned gymnasium
:: Digital switches with remote control
:: 22 storey building
:: Apartments starting from 7th floor (from basement)
:: Extended terrace
:: Hydro pneumatic water supply system
:: National highway frontage
:: One apartment per floor (starting from 17th floor)
:: Friendly access for physically challenged
:: Food court with coffee parlour
:: 10 ft. clear height for each floor

Common Amenities:

:: 100% power back-up
:: Grand lounge area with elegant furniture
:: Reticulated gas system
:: Table tennis
:: Jogging track
:: Floral walkway
:: Water bodies
:: Landscaped childrens play area
:: Fully furnished guest suite
:: Waste management system
:: Sewage treatment plant
:: Fire and safety system
:: Rainwater harvesting
:: Hybrid car charging facility
:: Multi-level security system
:: Seismic zone 3 compliant
:: Party pavilion
:: Common toilets for drivers and servants
:: Space for ATM
:: Service centre
:: Garbage chute
:: All weather musical swimming pool with I0 metre high waterfall
:: Spa with sauna, jacuzzi, massage room and steam bath
:: Air-conditioned gymnasium
:: Provision for recreation club
:: Schindler elevators
:: Hydro pneumatic water supply system
:: Space for meditation, yoga, library and visiting doctors
:: Billiards
:: Pool table
:: Sky squash court on 22nd floor

Mood lighting: It gives you the option to choose the mood that you are looking forward to in your room at a particular time. Be it romantic, party or whatever, you opt for it on your remote.

Common questions for NRIs investing in real estate in Trivandrum

Q) Do non-resident Indian citizens require permission of Reserve to acquire residential/commercial properly in India?

A) No.

Q) In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?

A) The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

Q) Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use?

A) Yes. However, Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of Reserve Bank.

Q) What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission.?

A) They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Q) Can such property be sold without the permission of Reserve Bank?

A) Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Q) Can sale proceeds of such property if and when sold be remitted out of India?

A) In respect of residential properties purchased on or after 26th May,1993, Reserve Bank considers applications for repatriation of sale proceeds up to the consideration amount remitted in foreign exchange for the acquisition of the property for two such properties. The balance amount of sale proceeds if any or sale proceeds in respect of properties purchased prior to 26th May, 1993, will have to be credited to the ordinary non-resident rupee account of the owner of the property.

Q) Are any conditions required to be fulfilled if repatriation of sale proceeds is desired?

A) Applications for repatriation of sale proceeds are considered provided the sale takes place after three years from the date of final purchase deed or from the date of payment of final installment of consideration amount, whichever is later.

Q) What is the procedure for seeking such repatriation?

A) Applications for necessary permission for remittance of sale proceeds should be made in form IPI 8 to the Central Office of Reserve Bank at Mumbai within 90 days of the sale of the property.

Q) Can foreign citizens of Indian origin acquire or dispose of residential property by way of gift?

A) Yes. Reserve Bank has granted general permission to foreign citizens of Indian origin to acquire or dispose of properties up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin whether resident in India or not,provided gift tax has been paid.

Q) Can foreign citizens of Indian origin acquire commercial properties in India?

A) Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Q) Can they dispose of such properties?
A) Yes.

Q) Can sale proceeds of such property be remitted out of India?

A) Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8.

Q) Can the properties (residential/commercial) be given on rent if not required for immediate use?

A) Yes. Reserve Bank has granted general permission for letting out of any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

Q) Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

A) Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd.,etc. to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

Q) Can authorized dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?

A) Authorized dealers have been granted permission to grant loans up to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investments NRE/FCNR accounts.

Q) Can Indian companies grant loans to their NRI staff?

A) Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Source: Reserve Bank of India

Q) What are the options available for obtaining guarantors while applying for a HDFC/LIC loan?

A) One will need a guarantor for a loan mainly for collateral security. The guarantor will have to demonstrate appropriate net worth to cover for the loan. Usually one can have a guarantor in any city where the loan issuer has a branch. Talk to loan issuers they will work something out for NRIs and foreign banks.

Q) While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?

A) One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items.  

For further questions, please contact Nandanam Consultants at www.nandanamconsultants.in

Is property appreciation in Kerala - A myth or a reality?

We have heard of news and read articles about property appreciation in Kerala in the last decade. The forecasted appreciation for real estate is about 20 to 30% CAGR in the next ten years or so. Courtesy Skyline builders, we now have some real statistics to show in terms of property appreciation in Kerala. Skyline is a reputed builder with a good history of completing projects on time. You can read about all their project appreciations here: Skyline appreciation chart

Our key takeaways from this data:

1. You should not look at the % values of appreciation in itself because they would draw a wrong picture. % values would depend on project location, new developments in the area, demand supply mismatch in terms of real estate buying etc.

2. On an average projects which are 5 years old in Kochi have seen a price increase of 2.5X i.e a CAGR of about 20% annually. CAGR is the cumulative average of the annual growth rates.

3. On an average projects which are 10 years old in Kochi have seen a price increase of about 4X i.e. a CAGR of 14% annually. Some projects like Crystal waters show a 10X growth or a CAGR of 25% annually.

4. On an average projects which are 20 years old in Kochi have seen a price increase of 7.5 to 8X i.e a CAGR of 11% annually.

As you would see in Skyline's data the same may not apply to cities like Kozhikode or Kannur. The projection we could derive from this for investors looking to exit properties in a period of about 6 years is that they could estimate about a 20% annual growth in Kochi or Trivandrum. If you can stay invested for a decade you would get about 14% annual returns which is twice as much as you can get from government bonds or PPFs.To put this into perspective a 30 lac property will fetch you 1 crore 11 Lacs with a 14% return in 10 years and a 30 Lac property will fetch you about 90 lacs in a period of 6 years with a 20% growth rate. 

Also to keep in mind is the fact choice of property is crucial : a good choice could may make a difference in value of 2X over a period of 10 years. For more on choosing you property you can approach our experts via www.nandanamconsultants.in

Skyline Projects in Kochi

Appreciation Table

SI. No.	Name of the Project	Year	Sold Price/Sq.Ft*	Current Price/Sq.Ft*	% of Appreciation	Current Rental Value
1	Mansion	1989	375	3000	800%	5,500
2	Habitat	1990		4500		15,000
3	Springfield	1991	400	4200	1050%	12,000
4	Belair	1992	650	3800	585%	10,000
5	Green Valley	1992	1250	9000	720%	16,000
6	Marble Arch	1993	650	3200	492%	7,500
7	Queens Park	1993	615	9000	1463%	7,500
8	City Park - Oakwood	1994	950	3800	400%	11,000
9	Crystal Waters I	1994	950	9000	947%	8,500
10	Green Woods	1995	1350	10000	741%	18,000
11	Triton	1996	1100	7000	636%	25,000
12	City Park -Silver Oak	1996	950	3900	411%	11,000
13	Autumn Woods	1998	1450	12000	828%	20,000
14	Daffodils	1999	925	3000	324%	5,000
15	Green Valley	1992	1250	3700	828%	20,000
16	City Park -Pinewood	2000	950	3900	411%	11,000
17	Crystal Waters II	2000	950	9000	947%	8,500
18	Rosemount Homes	2000	1325	4200	317%	7,000
19	Ebony Woods	2002	1425	8800	618%	16,000
20	Emerald	2002	1450	4500	310%	13000
21	Tulip	2002	1050	3200	305%	6,000
22	Elysium Gardens	2002	1495	12000	803%	20,000
23	Marigold	2003	1070	3200	299%	6,000
24	Gateway	2003	1050	4000	381%	7,000
25	Solitaire	2003	1250	4550	364%	11,000
26	Florento	2004	1190	3200	269%	7,000
27	Homestead	2004	1490	6500	436%	16,000
28	Amity Park	2004	1390	4200	302%	16,000
29	Platinum	2004	1750	5000	286%	18,000
30	Orion Villas	2004	1650	12000	727%	25,000
31	Zircon	2005	1450	4000	276%	14,000
32	Opal Arch	2005	1450	3800	262%	12,500
33	Royale	2005	1890	4500	238%	20,000
34	Aster	2005	1325	3500	264%	10,000
35	Legacy	2005	1650	4200	255%	15,000
36	Melrose	2005	1450	3800	262%	10,000
37	Primrose	2005	1490	3400	228%	9,000
38	Orion I	2005	1450	4500	310%	13,000
39	Templeton	2005	1750	4200	240%	14,000
40	Topaz	2005	1675	5500	328%	20,000
41	Orion II	2005	1600	4500	281%	13,000
42	Riverscape	2006	2170	3300	152%	12,500
43	Palmshade	2006	1600	4500	281%	16,000
44	Lavender	2007	2250	3600	160%	11,000
45	Eminence	2011	3500	4250	121%	15,000
46	Imperial Garden	2011	4200	5000	119%	20,000
* Sold Price, Revised Price and Current Market Price are per sq.ft.

Skyline in Trivandrum: 

Appreciation Table

	Name of the Project	Year	Price/Sq.Ft*	Current Price/Sq.Ft*	% of Appreciation	Current Rental Value
	Domain	2007	1950	5000	256%	30000

Why buying property in Trivandrum is profitable for NRIs?

Does it make sense for NRIs to purchase property in Trivandrum? 

Let's assume that some one is working in the United States and earning USD 7,000 per month. Let's assume that he can save about USD 2,000 per month and he wants to invest this money safely but not in the stock markets which tend to be volatile. Since the interest rates in the US being low a good idea is to invest in a secured asset in India.

The two basic options available for an NRI are either to go in for an under-construction property or for a built-up property.In case of a under-construction property, it is advisable to go in for an upcoming area, where there is higher potential for price appreciation. In case of a built-up or a ready to occupy property, one should look for a developed area, as the individual can start getting immediate rental income. 

A typical 2 bedroom apartment in Trivandrum costs about 45 Lacs and a 3 bedroom costs about Rs.60 Lacs. Lets assume that the individual has about Rs 30 lakhs in his NRE account in India. If the property is ready to occupy then once needs to arrange the balance Rs 30 lakhs for a 3BHK, plus another Rs 10 lakhs for registration, wardrobes, electrical fittings and any other necessary fixtures.

The Reserve Bank of India (RBI) regulations permit paying off the Rs.30 Lacs from the NRE account. For the balance Rs. 30 Lakhs the individual can apply for a home loan with any banks.

The bank verification would include  the current job profile, past experience, period for which he will continue to be abroad for the loan tenure, chances of servicing the loan in case of return to India, local income etc. The margin money required is usually 20% so in this case it would be Rs. 6 lacs for the home loan.

Property documents for a home loan include:

Original title deeds tracing the title of the property

Encumbrance certificate Agreement of sale or construction

Approved plan 

Once the property is purchased, a power of attorney can be given by the individual to his or her parents or spouse or another relative to deal with the property. Repayment of the home loan for a NRI is permissible through specific sources, such as remittances from abroad through banks, from any deposit accounts maintained in India or through a specified close relative. Tax deduction benefits on home loan repayments cannot be availed unless the returns are filed in India.

ROI Calculation:

Typical Interest paid per annum on a loan of Rs.30 Lacs - Rs.30,000 per month i.e. Rs. 3,60,000 per annum

Rental income (assume) - Rs. 12,000 per month i.e Rs. 2,40,000 per annum

Less : Property Tax plus annual maintenance - Rs. 30,000 per anum

Net: Rs. 2, 10,000 per annum

Housing deduction: Rs. 3,60,000 per annum

Net outflow : Rs. 1,50,000 per annum i.e. about Rs. 12,500 per month.

So, considering the rental income the EMIs are self-financed to a great extent.The actual cost for the property over a period of 20 years is about Rs. 30 Lacs. 

At an annual appreciation of about 20% CAGR, the value of the property would be over Rs. 1.5 crore  after 20 years and the net gain for the investor would be about Rs. 1 crore and 20 lacs.

Where do you buy you next property in Trivandrum - A cue on real estate buying by location & developments

This is a question most home buyers struggle with. Where do I get the maximum appreciation within the  Trivandrum city. Do I buy an apartment or a plot of land? We have another article on that subject.

The other question is do you go for something near Technopark or within the city? Thus its very evident that the location of the property is not such an easy choice. We present a few tips here to make your decision simpler.

1. Real estate development in Kazhakootam & Rental income - Both sides of the Kazhakoottam-Chackai bypass are infested with high rises. However off late there seems to an over supply and lesser demand for projects in this area. Hence you could get good bargains from builders on a new launch or yet to be sold property. The attractive proposition is the rent that one could command in excess of Rs.10,000 for a 2 BHK apartment or in excess of Rs.15000 for a 3BHK apartment.

2. Within the city - new growth areas - Vattiyoorkavu and PTP Nagar are 2 upcoming areas worth consideration within Trivandrum city. The governments development project at Vattiyoorkavu, coupled with the Greenfield Indoor Stadium at Vattiyoorkavu that is proposed to be constructed in the available space in the Central Polytechnic Campus, Vattiyoorkavu, Trivandrum is sure to escalate prices in the area after 2013. The Vattiyoorkavu sports complex is set to have the following facilities -Indoor Seating Capacity  – 5000, Indoor arena for Badminton, Basketball, Volleyball, Table Tennis & Lawn Tennis , Olympic size Aquatic facilities, Parking space for 400 cars. For more read about it here: http://www.35thnationalgames.in/index.php/sports-infrastructures/new-infrastructure/224?start=1. These areas are also seeing budget apartments under Rs.30 Lakhs which makes it quite affordable for a majority of the populace.

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3. Vazhuthacaud - Vellayambalam - Sasthamangalam - This is an area within the city which has seen rapid increase in real estate rates. Partially due to the completion of road works, and lots of new offices coming in. Hence a combination of residential cum commercial complexes can be seen springing up here. Rental incomes here could touch Rs.20,000 for a 3BHK which makes it quite attractive for those who are buying on EMIs. The current property rates are around 4500 to 5500 per sq. ft. , however we feel this area has not touched the inflection point yet and rates could increase to 7000 or 8000 per sq. ft in the next 4 to 5 years.

4. MG Road - The most prime residential area in the city also features some new launches by builders like Power Link. With new towers coming up in the Ayurveda college region, if you can afford, MG road will be worth the bet in the years to come. The rentals here touch up to Rs.25,000 a month.

5. Mono rail connected areas-  The debate on the mass rapid transport system lingers on with options like Mono Rail, Metro, LRTS etc. being considered. In Phase 1 - The 19 stations for the proposed mono rail would be located at Technocity Extension, Technocity, Pallipuram, Thamarakulam, Kaniyapuram, RVTI Junction, Kazhakootam, Karyavattom, Pangaparra Guru Mandiram, Pangaparra C H Memorial School, Sreekaryam, Pongumoodu, Ulloor, Kesavadasapuram, Pattom, Plamoodu, Palyaam, Statue and Thampanoor. Phase I will culminate in front of the Sreekumar Theatre. In Phase 2 - 16 stations. Killippalam, Karamana, Kaimanam, Pappanamcode, Karakkamandapam, Vellayani Junction, Pravachambalam, Pallichal, Paroorkuzhi, Mudavoorpara, Balaramapuram, Vazhimukku, Pathamkallu, Moonukallinmoodu, Aalummoodu and Neyyattinkara.

Our recommendation is that if you want to see appreciation in the next 4 to 5 years for your property go for locations in phase 1 of this project. If you want to go for a budget plot or apartment and go for appreciation in 10 to 12 years look at areas in Phase 2 of this project. Going by experience in other Tier 1 and 2 cities, a mass rapid system shoots up property prices by 40 to 50% once the project is in working condition.

The final choice of location of your property could be made keeping in mind these developments. However you can be rest assured that on an average you would get a return on 18% odd on investments made in real estate in Trivandrum given the present trends. With the outlook looking upbeat for the next decade the actual returns could be in excess of 20 to 30%. So any time is a good time to invest in real estate in the city.

An apartment owners association - Critical to maintanence of your property

Once the builder hands over the apartment complex to the home owner, the responsibility literally shifts on the association to maintain the property. It is actually critical that the association takes a serious role as this could really make or break the property once you have purchased it. For more on what an association does please read below. An association comes into picture especially after 3 to 4 years of handing over of the property since it is then that leakages start to appear, the gym equipments stop working, the childrens play area is no longer tidy, the elevators shut down etc. 

The host of problems that an association will have to deal with depends on the quality of construction, however a good association can ensure the upkeep of a large complex especially ensuring key factors like fire safety, fire drills, doing preventive maintenance, deciding on water supply and maintanence charges etc. If you are going for a resale property it does not harm to check how active and good is the association with the neighbours and to know what is the ongoing maintenance rates to get a full understanding of the costs you would incur after buying the property.

An Apartment Owners association is formed by a volunteer association of the owners of an apartment in India. The association may or may not be registered. 

By registering the association, members can enjoy legal benefits and the association gets a unique name registered. An apartment owner’s association needs all the owners of an apartment to gather at one place at time of registration. The builder can register the association if all the owners give power of attorney for forming an association.

Rules for forming an apartment owners association:

• A minimum of seven members are required to form an association.
• A memorandum has to be created. The memorandum will state the name of the society, the objectives, the names, addresses and occupations of each and every member.
• The bye-laws or the rules regulating the conduct of the affairs of the society will be made.
• The memorandum and the bye-laws will be filled with the registrar of the societies concerned by a member of the committee of the society.
• The memorandum will be registered.
• The memorandum and the bye-laws have to be printed or typewritten and have to be signed by the members.
• The registration charges are nominal.

Bye-laws are required by the managing committee of an Apartment Owners Association (or Residents Welfare Association) to ensure proper maintenance of the apartment complex and to resolve all the issues that the residents face in a timely and effective manner.

Trivandrum mono rail project

Source: Hindu

A 41.8-km monorail, an elevated rail-based mass rapid transit system (MRTS), has been found feasible for implementation in the capital city in the busy Pallippuram-Ulloor-Overbridge-Killipalam-Neyyattinkara corridor on a Design, Build, Finance, Operate and Transfer (DBFOT) mode. The 22.2-km first phase of the project, from Pallippuram to Thampanoor, can be commissioned by 2016 if the construction commences by 2013.

The first phase will culminate in front of the Sreekumar Theatre. Skywalk has been proposed from here to East Fort via Power House road, to the KSRTC's central station and to Trivandrum Central railway station. The monorail tickets are expected to cost around the same as that of the AC low-floor buses operating in the city. According to the last NATPAC report, the rail would go from Karyavattom straight to Kazhakkottam, without touching Technopark.

However, Principal Adviser to the DMRC E. Sreedharan raised the doubts within weeks after the DMRC was appointed project consultant for the project, which had been found feasible by the National Transportation Planning and Research Centre (Natpac). The DMRC is learnt to be going ahead with alternatives such as the LRT. The high cost is also a factor that has weighed in against the monorail project in the capital as the State will not alone be able to mobilise over Rs.5,000 crore needed for the project.

Comprehensive coverage of luxury and budget apartments in Trivandrum

India is seeing tremendous growth in two sectors of real estate. One is the budget housing wherein the property rates do not exceed 30 lacs rupees and the other, the higher end of the spectrum wherein the rates could be more than 1crore rupees and at times even as high as 10 crore rupees.

The current budget has augmented and pushed forward new reforms for affordable housing. Hence developers are now looking at this segment in the Trivandrum market with renewed focus. At least half of the buyers looking for real estate are in the budget housing segment. At the same time the luxury segment has seen a lot of activity due to HNI investments and the depreciation of the Indian rupee.

Nandanam Consultants has formed an exclusive team to cater to the home buyers in both these segments: Luxury and Budget apartments. The team is also sharing some of its research via exclusive blogs on budget real estate and luxury real estate in Trivandrum. You can follow them at:
http://trivandrum-budgetapartments.blogspot.com/ and http://trivandrum-luxury-realestate.blogspot.in/.

We look forward to hearing your comments on this section. For reaching out to us, please check out our coordinates on www.nandanamconsultants.in

Vattiyoorkavu area poised for strong real estate boom

The government will speedily implement a project costing more than Rs.150 crore for the improvement of Vattiyoorkavu road junction and the roads leading from there to Vazhayila, Peroorkada and Sasthamangalam, Public Works Minister V.K. Ebrahim Kunju told the Assembly on Monday.

 As reported by the Hindu, the government had already given administrative sanction for giving Rs.145 crore for the improvement of the roads going in three directions from Vattiyoorkavu junction.
This development is set to increase property rates in the Sasthamangalam - Vattiyorkavu stretch in the next six months to one year.

For more on projects in and around Vattiyoorkavu , please contact www.nandanamconsultants.in

Artech launches apartments in Vazhuthacaud, Nalanchira and Venpalavattom

Artech realtors is doing bhoomi puja for its 3 new projects namely Centrix in Vazhuthacaud, Futura in Venpalavattom and Varsha in Nalanchira in Trivandrum. The bhoomi puja is scheduled on Sunday, July 15, 2012. These mark the beginning of Artech Realtors 47, 48 and 49th project in Thiruvanathapuram.  For more information on artech realtors projects you could reach out to nandanam consultants at www.nandanamconsultants.in

Safety Norms for high rise buildings in Kerala

Article by Nandanam Consultants team - These safety norms are published by the Kerala government as per the Kerala Municipal Building Rules. See if your builder is following the safety norms in your building.
A high rise building means a building having more than four floors and or 15 metres of height from ground level. (1) Every high rise building shall have at least two staircases. (2) The height of the handrail in the staircase shall not be less than 90 cms. and if balusters are provided no gap in the balusters shall be more than 10 cms wide.

Every slab or balcony overlooking any exterior or interior open space which are 2 metres or more below shall be provided with parapet walls or guard rails of height not less than 1.20 metres and such guard rails shall be firmly fixed to the walls. Provided further that guard rails shall not be made of glass or any similar material which are not reinforced to prevent breaking.

(1)   Every high rise building shall be provided with a fire escape stairway. (2) Fire escape stairway shall be directly connected with public or common areas on all floors and shall lead directly to the ground.
Open space for fire fighting.- Every high rise building, if it does not abut on two or more motorable roads, shall be provided with a minimum of 5 metres wide open space on any one of its sides contiguous to the road abutting it to facilitate fire fighting:"

Every high rise apartment building having more than 16 dwelling units shall be provided with at least one lift capable of carrying a stretcher. Provided that if only one lift is required for the building as per the rule 48, that lift shall be one capable of carrying a stretcher.

More information can be read here: http://www.lsg.kerala.gov.in/htm/kmbr/kmbr_chapter17.html

Trivandrum Real Estate Price Trends by location

Trivandrum is one of the few cities in India which has witnessed property appreciation on a CAGR of 25 to 33% compared to Metros, wherein some metros have even witnessed single digit appreciation. Traditionally land investments give better returns, however, apartments might be a better choice for those customers who stay abroad, prefer rental income and don't visit India a regular basis. Our Trivandrum real estate price trends are indicative and can vary by builder, location etc. These rates are based on the market information available on the ground with builders, agents, customers etc. Please call us to understand further before purchasing or selling your dream home.

Prevailing rates of real estate for some areas in Trivandrum:

Apartments
Vellayambalam - Sasthamangalam - Rs.5000 to Rs.6000 per sq.ft (varies by builder & availability). Appreciation over last 3 years - CAGR - 36%
Sasthamangalam - Vattiyoorkavu - Rs. 2500 to Rs.3500 per sq.ft (varies by builder). Appreciation over last 3 years - CAGR - 30%
Vazhuthacaud - Vellayambalam - Rs. 5000 to Rs.6000 per sq.ft (varies by builder). Appreciation over last 3 years - CAGR - 34%
These rates depend on amenities in the building, location etc. 

We don't estimate prices of land as many more factors like approach road, proximity to bus stops and auto stands, utilities like hospitals , shops, schools nearby might further affect property rates in the same area. Please discuss with us for purchase or sale of land if you are interested.

Kariavattom gets a facelift with a world class stadium!

Kerala Chief minister Oommen Chandy declared the construction site of Greenfield international stadium at Kariavattom as a special zone during the inauguraration of its construction works.

The Kariavattom stadium is slated to have a seating capacity of 50,000 and is being built to meet FIFA and ICC standards. The stadium is located 10 km from the airport and about 12 km from the Trivandrum railway station. IL&FS is the developer of the stadium proposed to be constructed on 37 acres of land belonging to the University of Kerala on Kariavattom campus. The Kariavattom stadium is the proposed venue for the opening/closing ceremonies of the 35th National Games to be held in Kerala. The project is expected to be completed by the end of 2013.

The stadium is bound to see a lot of visiting celebrities and matches to be held post 2014. Real estate in the area is prime for investment in the next one year to see good returns in 2015-2017.

For further enquiry please contact nandanam consultants at www.nandanamconsultants.in

South India and Kerala poised for strong future growth

As per the CII – Mckinsey report title “Retaining the Edge: Sustaining India’s growth momentum” prepared in 2011, South India has been a major driver of growth for India from 2000 to 2010, contributing to over 22 per cent of India’s GDP and 28 per cent of its employment.

Comprising Andhra Pradesh, Karnataka, Kerala, Pondicherry, and Tamil Nadu, South India has been an economic powerhouse over the past two decades. Together, these states score higher than the national average across several social and economic indicators, with Tamil Nadu, Andhra Pradesh and Karnataka leading the fray. This outstanding performance in the decade of 2000 to 2010 –across manufacturing and services sectors – places the region in a strong position for further growth.

In another report by McKinsey on Global cities of the future, Kollam’s GDP will become almost 6times in 2025 compared to 2010 and reach 17 billion USD. The population of Kollam will also increase to 1,733,000 compared to 997,000 presently. In the case of Kochi the GDP is estimated to become 7X and reach 46 billion USD in 2025 compared to current figure of 7billion USD.

The rise of population and GDP in some of these cities signifies a trend towards rising real estate prices in the next 10 to 15 years.

You can read the entire report here. For more on how these developments can affect real estate in Kerala, contact nandanam consultants at www.nandanamconsultants.in

SI projects in Sreekaryam, Vellayambalam, Kowdiar

SI property's  new Project is named “Endura” is a Joint Venture Development of Alka Group, Dubai and SI Property and is located close to Sreekaryam Junction, bordering the existing NH 47, another corridor to Technopark (Approx.5km) and the upcoming Techno city.  

Located close to Defense Organisations, Central Government Institutions, Commercial Centres and surrounded by the leading Educational Institutions in the Capital City namely the Government College of Engineering, Loyola Group of Educational Institutions & Karyavattom Kerala University Campus, Endura renders all the basic needs and conveniences that a family would look for. Comparative Advantages associated with this Project are many, like its location in a developed area with all basic Service Connections already available, the assured returns on Rentals, efficient and thoughtful designs as well as availability of all the Luxurious Amenities that a family would look for!

 As per SI, the project is set over fifteen storeys and the range of Two, Two Bed + Study and Three bedroom Apartments offer superb contemporary designs with good finishes. Every Apartment enjoys Private Balconies, giving the additional benefit of an outdoor living space. 

Another project of SI is called Belhaven Grande, situated in Belhaven Gardens Kowdiar, is another Ongoing Project, which has been fully sold out. It is a distinctive Project with the Exclusive Feature of One Apartment per Floor, scheduled for completion in December-2012.
SI also has a project called Amrith Dale near Althara in Vellayambalam. Vellayambalam is one of the fastest growing areas in Trivandrum, and Amrith Dale Apartments is located within an easy drive to almost anywhere in the city. 

 The Unique Benefits of living in Amrith Dale Apartments are many...
·        Centrally located still away from the hustle and bustle
·        Prestigious and peaceful habitat
·        Advantages of staying in a low density condominium, just 11 Apartments.
·        Easy access to Educational, Health, Entertainment, Religious, Shopping and Government Centres.
·        Conveniences of a Building without lower basement.
·        Spacious designs keeping in mind the future space requirements

For more information on any of these projects please contact nandanam consultants at www.nandanamconsultants.in

Skyline Builders launching Cedar Park at Vattiyoorkavu

Skyline builders will be launching Cedar Park at Vattiyoorkavu very shortly.

This is Skyline’s description of their brand new project – “A home is where peace and prosperity reside by. Skyline Builders gives paramount importance to these factors when choosing a project. Peaceful affluent residential location with all necessary infrastructure in place is the prime concern. Then the expertise of over a hundred projects and the commitment to deliver a quality living environ ensure a home extraordinaire. Skyline Cedar Park at Vattiyoorkavu is no exception.

Skyline Cedar Park places you right in the middle of every happening thing in the city. Wide road frontage, arterial highway connecting to the important residential and shopping hubs like Kowdiar, Sasthamangalam, Vellayambalam and close proximity to pubic transport, shopping, banking and dine outs make your life comfortable and convenient.”

The project will feature the following specifications and have childrens play area, gym, a roof top party area and a rooftop swimming pool

• Flooring

  Vitrified tiles for entire apartment except toilets. Ceramic tiles for toilets.
  

• Kitchen

  Kitchen counter with polished granite slab and single bowl single drain sink. Ceramic tile above counter to a height of 60cms. Hot water provision for kitchen sink.
  

• Toilets

  Toilets wall with ceramic tile up to false ceiling. Premium quality CP fittings. Single lever divertor with shower in all toilets. Single lever basin mixer for master bed toilet wash basin. Wall hung sanitary fixtures with concealed cistern in all toilets.
  

• Doors & Windows

  Elegant teak wood entrance door. Flush door for bedrooms. Partially glazed flush door for kitchen. Flush door with water resistant coating inside for toilet doors. Fully glazed UPVC sliding door for living balcony. Powder coated aluminium windows.
  

• Painting

  Putty and plastic emulsion for internal walls & ceiling.
  

• Electrical

  Concealed conduit wiring with copper conductor, adequate light and fan points, 6/16amps socket points etc controlled by ELCB and MCBs with independent KSEB meters.
  

• Lifts

  Two fully automatic lifts. (One passenger lift and one bed lift).
  

• Telephone

  Telephone point in living room and master bedroom.
  

• TV point

  TV point in living room and master bedroom.
  

• Fire fighting

  Fire fighting arrangements as per NBC norms.
  

• Generator

  Generator back up for common facilities such as lifts, common lighting, pumps etc. Generator back up for light and fan in all rooms, entrance light point, bell push, TV point, 6A point near telephone point in living room and a 6A point above counter in kitchen, limited upto 1000W in the apartment.