How to buy a flat? Beginners guide to buying a flat

So you are ready to buy a flat, but not sure exactly as to how you want to go about it. This beginners guide presents you the things you must consider if it is the first time you are buying a flat. Many of us might get lured by the glossy booklets provided by the developers and are contented with the exteriors and the location of the flat.

Like any property transaction, buying a flat involves a considerable amount of life savings for any individual. Thus the following three questions must necessarily be answered: How? Where? and What? 

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How should you buy your flat? How involves the kind of process involved in buying a flat -once you have short-listed the apartment of your choice. 

Documents to be verified while Buying a Flat

Land Ownership Documents

Usually before constructing a flat the builder can operate in two ways - either as the land owner or as the developer. As a customer you must consider if the land ownership documents are available with the builder or not. Other items include the total built up area (Saleable area), common area etc. which the builder should inform you about. For more information on saleable area, carpet area, super built up area and how you can differentiate among apartments based on payment plans and undivided share of land you can read this article.

Approvals from Local Bodies

The builder should also obtain approvals from the local body, the Pollution Control Board, Fire and Rescue department's Fire NOC (No objection certificate), Local body building permit etc. You must also understand if the land tax receipts, building permit certificate has been obtained by the builder or not.

Land Title

The land title will be in possession of the builder and the customer can ask the builder for it to ensure that the land owner does not create an issue later about encumbrances.

Electricity and Water Receipts. Apartment Association

Once you occupy your apartment you would need to get receipts for electricity and water deposits, building tax etc. and the builder would do an ownership change to you. The builders liability really ends only when the apartment owners association has been formed and the maintenance of the flat has been handed over to the association. The hand over usually happens 3 to 6 months after the flat becomes ready for possession.

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What should you look for in the flat and amenities? What refers to the kind of flat you are trying to purchase. A flat is not just a space for you and your family but it comes with a host of other features. You must go through all these attributes of a flat to ensure nothing has been missed out. Amenities you must check for: 

Car Parking - How many car parking spaces do you get? Is it included or does it come with an extra cost? Is it a covered or non-covered parking? Would you get more that one parking if requested?

With the trend of families owning one or more car parks, car parking could become a significant cost if not thought about when you buy a flat. 

Fire Safety - Fires in apartments do occur even if rarely. Fires can happen due to electrical short circuits, gas explosions etc. and can quickly spread in apartments which are spaced close to each other. Do consider if your flat is equipped with fire safety measures like CO2 fire extinguishers, proper fire exists for the movement of people as well as all it abides by the rules as laid down by the Fire department in your local area.

Air Conditioning -  Do you have provision for split air conditioning? Is air conditioning centralized or is it present in all bedrooms?

Water Supply: Is water provided through sump and over head tanks? Is their provision for rain water harvesting? Does water come for borewells or is it supplied by the local corporation?

Telephones - Is there wiring for telephones in bedrooms, drawing rooms in the flat ? Will it cost for additional wiring for your apartment?

Generator - Is there a back-up generator for the flat in case of power outage? What is the load restriction in an apartment during power outage? During an outage is power available only in flats or will lifts, gyms and other facilities work as normal.

Electrical - Are there adequate number of fan and light points in your flat? Will the builder fix MCB or ELCB (Circuit Breakers) and does your flat have an independent light meter or is common to the whole building?
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What if you are buying based on a sample flat ?

Although seeing is believing and experiencing your new home through a sample flat might be a pulsating experience for a home buyer, there are fallacies with this approach.  A sample flat is one of the marketing techniques used by builders to convince customers of what they can expect when they get to live in their proposed house.

For full list of factors to be considered while seeing the sample flat read this article.

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Where should you buy your flat? 

Research studies conducted across the world, especially in developed economies, have used multiple methodologies to determine real estate values and the parameters determining. Some of these factors which lead to appreciation for your flat based on your location include:

1. Access to Light rail transport (LRT)
2. Distance to Central Business District
3. Comparable Sales Approach
4. Proximity to Regional Shopping centers
5. Promixity to Highways and Expressways
6.Clustering 

To read more about these individual factors you can read this article on locational factors. 

Villas in Trivandrum - Things to consider when you buy your villa

Over the last decade or so the construction arena in Trivandrum has seen a uptake with builders coming up with villas in various locations across the city. So what are the things to consider when you buy your dream villa in Trivandrum city or in Kerala for that matter?

Things to Consider

• Documentation - As mentioned by us in many other articles and on our website, you need to be particularly careful about the documentation aspects like ownership of land, title deed with the builder etc. to ensure that you enter into a good transaction with the developer and avoid problems in the future.

• Customization - Customization is really what makes a home unique. When a villa is customized to meet the needs distinct tastes and lifestyles of the family members, it becomes a joy to live in. Each of the villas we recommend are customized to a personal level by interior design experts ensuring you have a wonderful living experience. A developer would typically offer you a particular broad design for a property. Customizations and interior designs can be at a room level or a space within a room which could be put for a particular use. This ensures that you have the optimal living space you dreamt about.

• Transparency -  Transparency is something which should ideally be the norm in all property transactions. As a customer you must understand the total cost of the property which includes not only the cost of buying the villa but also other costs like car parking, water and electricity charges and an estimate of maintenance which would be required for the property for the next 2 to 3 years. A holistic picture can thus be obtained before you  commit your time and money to a villa project. Also ensure that the builder or developer you are dealing with has a history of ethical and transparent transactions.

• Quality of the Materials and Finishes - Beneath the facade of a luxurious villa lies the real underlying value you are getting when you consider the quality of materials and finishing which were used in the project. Home buyers are not always aware of construction nitty gritties to compare specifications of one project to another. Things like the type of paints, type of tiles and even the quality of gypsum used could determine the longevity of the construction. Do consider these aspects before you finalize on the villa and consult an architect or a reputed property consultant to understand and compare projects for these parameters.

• Optimum use of Space - Most home buyers are not accustomed to asking questions to developers about usage of space in a villa or a flat. One needs to understand the relevance of carpet and super built up area as well as talk to experts who can tell you if a design adopted is the most ideal use of space given a plot of land.  A good thumb rule is to ensure that the carpet area of the homes you buy from a developer is always a large percentage of the super-built-area.

• Facilities -  Last but not the least, the facilities that come with your villa projects needs to be considered with respect to whether the developer has a good track record of giving all the promised amenities. Some projects come with super luxury amenities and some offer the bare minimum. Do your research to understand these differences as they will have a say in the final resale value and appreciation of your villa in times to come.

A villa is not only an investment in a home but is also an investment in land and a living experience for your family. So ensure that you have done all it takes to make this experience priceless for all those involved.

Buying flat in Kerala - New Trends, Buying patterns, Things to Consider

Change in the Home Buying Pattern, Things to Consider for Apartments in Trivandrum

In  the last decade or so, there has been a significant change in the home buying behavior and the demographic segment buying apartments in Trivandrum and Kerala in general. 

Today a typical person buying an apartment is not always in late 50's but more so in and around 30's. Most young couples or unmarried individual's who earn a handsome salary, consider a budget flat or a luxury apartment as a future investment and likewise a means of saving. The type of apartments in demand has also changed in the recent past with families looking for more compact accommodation and facilities like swimming pools, gym, security, CCTV etc. in additional to normal features. Young couples often do their research on the internet, visit model flats and form a mindset before buying a new apartment. 

New Trends witnessed in the Apartment sector in Kerala

One clearly visible trend is much more clarity of thought with apartment buyers. Most flats built today are designed keeping in mind a particular demographic section for e.g 40 year olds with 2 kids. In such a situation architects and designers would usually prioritize and cater to larger drawing rooms and spacious dining spaces. In addition there could be three or four bedrooms depending on the size of the family. Such apartments can have square feet sizes from 1800 to 2700 sq.ft. The other clear segment are young couples or singles who prefer single or two bedroom flats from 900 to 1400 sq.ft. A usual variation is a 2.5bhk with 3 beds and 2 bathrooms. Young couples also want swanky living spaces with jogging tracks, pools, gyms etc. irrespective of their use for them or not. These features serve the aspirational values of today's young generation and they are often ready to pay premium rates for these flats compared to those that dont have them.

What builders consider while choosing a plot of land for building flats

Builders usually consider four things while choosing a plot of land for building an apartment.  These are:

• Shape of Land
• Nature of Land
• General Amenities
• Utilities

Shape of the land includes verification if the shape of the site is fit for building construction or not. Nature of the land includes ground water availability, height of the water table, if it is wet land or not i.e. if it the land is prone to flooding, load bearing capacity of the mud in the land, height of the rock bottom etc. General amenities usually considered by builders include water front, sea view, greenery etc.  Utilities include availability of water, electricity, telephone at the project site. The design team of the builders usually consider all the above four factors before deciding on the plot of land. 

Things to Consider while Buying a Flat

Furnishing and Interior Design in Apartments 

Today even children have their own views about how they want their rooms and it's interiors within a flat. Furnishing homes has opened up a large opportunity not only for interior designers but also custom decor companies making their way into India. IKEA and other retailers waiting to enter today's market is just a inkling of the huge market potential available. In Kerala, unlike some other states wooden furnitures make way into most homes, villas and apartments. Besides the use of soft and hard wood in interior design two key aspects which are often overlooked are lighting and placements. Often the average home buyer is unaware of these nuances and a majority of the population even today does custom designs of homes  or flats employing craftsmen. An alternative could be to employ the design services of a builder which comes as a package deal or work with reputed consultants who bring all the experts from kitchen to wardrobe designers as well as lighting experts to the table. These approaches can ultimately make a huge difference to the way a home looks and feels and have a positive correlation on its selling price.

Availability of Water in your Apartment

Availability of good water is one of the most common questions buyers ask while buying an apartment. With some parts of Kerala affected by water shortage and scarcity it is not surprising that this is the case. Typically in a flat, water is provided from three different sources:  

Sources of Water in a Flat:

1. Ground Water - Wells or Borewells 
2. Rain Water Harvesting - This is facilitated by water stored underground in a tank to be used later
3. Kerala Water Authority water - This is the water supplied by the Kerala Water authority.

As per studies, the water requirement per person on a daily basis is around 100 to 120 litres of water. This water could be used in the flush, for gardening, for washing cars and for other purposes. In a well designed and architected building, the drinking water is provided through Kerala Water Authority or it is stored in Special Tanks from where it is supplied to all the apartment units. You must always check with the builder about the water supply in your apartment before buying your flat. As a benchmark, think about this. An apartment building in Trivandrum with 100 units will require about 12000 litres of water in a given day. If the apartment is equipped to handle water recycling and it avoids unnecessary wastage, then this could have a huge implication on water availability through out the building even in times of drought or water shortage. 

Documents to be verified while Buying a Flat

The following things are important to consider while buying a flat. Usually before constructing a flat the builder can operate in two ways - either as the land owner or as the developer. As a customer you must consider if the land ownership documents are available with the builder or not. Other items include the total built up area (Saleable area), Common area etc. which the builder should inform you about. The builder should also obtain approvals from the local body, the Pollution Control Board, Fire and Rescue department's Fire NOC (No objection certificate), Local body building permit etc. 

The land title will be in possession of the builder and the customer can ask the builder for it to ensure that the land owner does not create an issue later about encumbrances. You must also understand if the land tax receipts, building permit certificate, local body occupancy certificate, fire noc etc. has been obtained by the builder or not. 

Once you occupy your apartment you would need to get receipts for electricity and water deposits, building tax etc. and the builder would do an ownership change to you. The builders liability really ends only when the apartment owners association has been formed and the maintenance of the flat has been handed over to the association. The hand over usually happens 3 to 6 months after the flat becomes ready for possession.

How men and women differ in buying property - Choosing your living experience

You might think that the two genders significantly differ when it comes to choosing your dream home. To substantiate this, anyone who has read 'Men are from mars and Women are from Venus' would definitely stick to this hypothesis.

Compared to late 90s more single women are making property purchases in developed countries in the recent times e.g. United States. While price per square feet, location and other factors play an important role in choosing your home, recent studies have revealed that emotional parameters attached to what you "feel" a living experience in a property would be like, has a profound influence on the buying behavior.

For e.g. once you short list on the location for your home, the view from the balcony, the painting on the walls or even an aspect of the flooring could emotionally influence you into dropping or choosing to buy a house. Which is why at Nandanam, we lay stress on our customers and educate them about the living experience you get, beyond the aesthetics and quantitative measures like price and appreciation.

So why do single women especially in developed countries go for buying  homes. Because it instills in them an overwhelming feeling of independence and security as proven by most surveys. For men it appears that the size of the property and what you can do with it i.e. functionality are more important features as compared to their female counterparts. A sense of security and proximity to extended family was important in the women's purchase decision while for men proximity to their jobs was more important even at the expense of security.

Interestingly studies also point out that men require two or more visits to finalize their houses while women typically make a choice in just one visit to their dream home. Finally as experts point out, instead of an individual when a couple decides to move into a home, the male counterpart usually has a larger say in the financial decision and the female counterpart in the final stage of the buying decision.

When it comes to India, as families become more nuclear in nature, availability of services (proximity to schools, hospitals, malls, retail outlets etc.), security and good maintenance are of essence in choosing your dream home. Our advise to the home buyer would be to make a decision after prioritizing features you look for, thereby enhancing the living experience. A prudent decision on your home and its living experience can make a big difference between a bundle of joy and a handful of regrets once you move in.

Bangalore or Trivandrum. Where do you buy your next flat?

For most IT professionals who have been working in Bangalore for over 5 years, the decision quickly crops up whether to go for an investment in Bangalore or Kerala.They have enough disposable income and most want to go for a bank loan which they can pay off in another 15 to 20 years with their earnings.

Bangalore is one of the most significant real estate markets in the country. Not only is Bangalore retaining its popularity as the favoured IT destination but is also attracting many NRIs, HNIs and investors to invest in the real estate market.The city however faces a crumbling infrastructure primarily owing to the migration of people from across India and other states. The government of Karnataka is doing its bit in Bangalore by developing the 2nd phase of the Metro as well as developing stretches of Outer Ring Road and making it a signal free corridor.

As far as Kerala is concerned. over the last decade NRIs primarily residing in Gulf countries have invested in real estate. It would however confuse a relatively new home buyer as to why propery prices in cities like Trivandrum are much higher compared to places like Bangalore. Taking an example, a prime residential apartment in Vellayambalam or Kowdiar commands a square feet rate of approximately 6000, whereas some of the hot upcoming areas in Bangalore like Sarjapur Road or Hennur Road commands in the the range of 4000 - 4500 per sq.ft.

The reason behind this is quite simple - Scarcity of land in "God's own country" along with escalating prices due to land grabbing. In addition the Kerala building rules which prohibit construction beyond a certain number of floors unless the building has appropriate road frontage and other parameters met, has meant that real estate developers have to shell out a lot more to buy the appropriate amount of space to raise a building.

The case is different with Bangalore. The new areas which have developed had previously been marsh lands or un-utilised space which is now being used for gated communities or residential apartments. The city is now spreading out towards Yelahanka (near the Devanahalli airport) and Kanakapura road (due to the metro 2nd phase coming up there).

Given the scarcity of land in Kerala and considering an influx of about 200,000 software professionals who are likely to work in the state by 2017, the property prices are only likely to increase. The increases would be much more pronounced within the city limits of Kochi and Trivandrum and the IT hubs compared to other parts. So a prudent investor looking for returns in 6 to 7 years, could look for a good deal in Trivandrum compared to a similar investment in Bangalore.  In Bangalore, growth in rates are much likely to remain steady and not go into a spiral. Expected increase in the short term should be around 10-15% per annum, given that new residential areas are springing up on a regular basis and there is still a lot of inventory being created in the city.

Having said that for a long term investment, Bangalore would still offer equally good prospects considering it could become a large metro like Mumbai or Delhi in about 15 to 20 years time. The choice ultimately resides with the buyer in terms of preference towards managing the property, place where he or she would like to get settled etc.

What deters home buyers from newly launched properties?

Today, we see an increasing trend in the market towards ready to occupy projects. To understand further we looked at one of the recent surveys done by Track2Realty across 10 cities. As per a the survey done in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Kochi, Ahmedabad, Chennai, Patna, Pune and Chandigarh  following were some of the reasons why home buyers in India, prefer ready to move in flats. You can read more here.

Possible reasons for preferring a ready to occupy property

• Delay in the delivery is cited as number one reason to book a new launch by almost all the home buyers
• Default in design, construction quality and fear of faulty construction
• Nearly eight out of ten, say they have not got what was showcased as the sample flat.
• Lack of amenities like the water splash as the swimming pool, clubs being no more than cafeterias and under-equipped gyms etc in their housing project
• Home buyers prefer ready-to-move property because they can avail for tax benefits only after the possession of the house.
• Immediate relief on rent and EMI is cited as one of the main criterion for choosing a property worth possession.
• Possible artificial demand in a new launched project and after 12-24 months, prices can be realistic, if not outrightly downward.
• Anxious to make sure who their neighbours would be and the overall community profile of the apartment.

As per our analysis and understanding of the Trivandrum real estate market, most of the reputed builders like Skyline, SFS and Artech who have a history of project completions on time, don't deal with issues 1, 2 and 3 which are the primary concerns for a home buyer.  For new builders one needs to be a little bit more cautious and ask a real estate consultant on their specific requirements from the property and assess if it is the right decision. Areas a real estate consultant can look at include: 1) Financial leverage 2) Clear documentation 3) Approval from banks 4) Contractors who are constructing the project (this could be different from the builder) 4) Getting feedback on existing projects.

With regards to artificial demand, there are examples of that in the market. For e.g when DLF launched its project in Bangalore there was a huge demand for real estate space and then there was a slump which made DLF cut the prices ultimately. However what we find is that real demand truly exists in most places in Trivandrum especially within the city like Vazhuthacaud, Kowdiar or even MG road. Hence an investment with a good builder in an area within the city should allay most of the concerns of home buyers. For those who still have questions should seek help and trusted advice of a consultant.

Buying and Selling advisory services from Nandanam Consultants

Buying your dream home or selling your property at attractive prices is a walk in the park with Nandanam

 

 

Buying your property in Trivandrum.

We specialize in property in the Trivandrum market. Whatever be your budget, type of property you are looking for and the amenities you need, we help you shortlist just the right property. You leave the searching to us and be assured of handsome return on investment with our sound advice. Our market research and insights into developments in Trivandrum helps you identify those properties which may not otherwise be advertised. 

Selling your property in Trivandrum.
Selling your property is easier these days with a plethora of options available on the internet.  But do you always understand the market valuation and get the best prices for your property. We keep track of trends in all localities in Trivandrum, so that you know you got the best deal out there!

How do you differentiate between apartments you want to buy?

Make the Right Choice for your apartment

Let's say that you have shortlisted two apartments to buy in Trivandrum. Now assume that they are almost in similar locations, with almost the same amenities, are from reputed builders and are available at relatively the same price. The question is what else do you factor in to decide on this property and how do you differentiate which apartment to buy. 

We offer you a few tips to further narrow down your search results:

1. Understand the Carpet Area, Super built up area and Built up area - Carpet area is the area enclosed within the wall i.e. the actual used area of an apartment. Built up Area is the carpet area plus the thickness of outer walls and the balcony. Super Built Up Area is the built up area plus proportionate area of common areas such as the lobby, elevators, stairs, etc. Thus the share of all common areas is proportionately divided amongst all unit owners and it makes up the Super Built-up area.What is important here is to understand if both builders are charging for the carpet area or the super built up area.

2. Look at the payment plan - Most builders ask for a 15 or 20% down payment at the time of booking and then rest of the payments need to be made based on stage of construction. Here there could be a few differences. Some developers like Confident have come out with schemes which say "pay the rest" only during hand over. This offer is excellent since it ensures that your are not charged unduly by bankers for availing part of the loan if the project is getting delayed. The actual payment schemes by various builders could mean a difference of about 10 to 15% of your project cost , which could be around Rs.5 Lacs paid about 6 months in advance. The opportunity cost of that capital would be around Rs.25,000. Hence you might want to negotiate with the builder on payment terms and make it suitable to your needs.

3. Look for small differences in finishing - For e.g.  Vitrified tiles are stronger and less susceptible to wear and tear than ceramic tiles. Vitrified tiles can be further classified into glossy-finish, rustic-finish (has a rough surface), satin-finish (shiny in appearance but has a rough surface), imported, slab-size tiles. Check if the walls of the rooms will be painted with Acrylic Emulsion Paint and if the windows/Glazing will be Anodized/powder coated Aluminum/UPVC. Also check if the flooring will be of Anti Skid Ceramic tiles in the bathroom and other relevant areas.

4. Undivided share of land - In many instances the builders of an apartment do not transfer the entire extent of land to the buyers of flats. Instead, they tend to retain a portion of the undivided share which is subsequently misused leading to various complications. States such as Karanataka have made it mandatory that the undivided share of the land cannot be registered in isolation and they have to be registered along with the flats. Now why is this important?

Imagine you are building a 2000 sqft home over a plot of 2400 sq ft land. In this case, the undivided land share is 2400 sqft and the super built up area is 2000 sqft. The undivided share of land is thus equivalent to building a flat on that assigned land area. Over time, the value of constructed area depreciates while the value of land area appreciates. Say after 30 years, the building is too old to stay and the entire complex needs to be rebuilt. What you own will be only the Undivided Land Share. 

Sometimes the builders might allot you a lesser land share or may not mention the land share in you sale agreement or even worse they might claim the land share of your entitled land. If you are buying resale flats which are quite old (10+ years), undivided share is important to ensure that you get the value of land at the time of reconstruction.

Avoid falling into a trap in real estate buying in Kerala

For those who are not aware, it was a harrowing time for all customers of Apple A Day Properties last May 2011.

The majority were NRIs, who were seeking the help of Chief Minister Oommen Chandy after they fell prey to one of the biggest real estate frauds in the state. Apple-A-Day Properties'  a builder based in Kochi, reportedly collected over Rs. 100 crore from buyers which included 125 Indian expatriates in the Middle East.

The company offered villas and apartments in the heart of the city of Kochi at attractive rates. It used the goodwill of a couple of its completed projects to rope in buyers, but after it missed many deadlines for its 11 new projects, customers cried foul. Some NRI's who invested over Rs. 45 lakh each in the project did not see completion even after 5 years of the project. The firm's Director and Managing Director went underground after the company allegedly went bust. Source: NDTV

So the real question is. How does an NRI or any investor avoid such traps and scams. Please refer to our checklist below for common mistakes.

1. Nominate or appoint a real estate consultant - Most NRIs in question were not able to track the progress of the fraudulent project. This is where services of a respected real estate consultant comes into picture. They can keep you updated about the progress of the project and even deter you from buying one if there are hidden dangers.

2. Financial Leverage - Most real estate projects which run into trouble do so because of financial leverage. Real estate being a sector with high working capital requirements, most projects are financed by banks. A project approved by a reputed bank like SBI or HDFC etc. itself shows that the bankers have done due diligence with respect to payback period etc. This actually makes it a lot safer for the investor to know that the project would be completed on time.

3. Credibility of the Builder - Credibility of the builder can be ascertained either via quality ratings like ISO or ratings by CRISIL. If none of these are available, then one of the ways is to ensure everything related to the project documentation is in place before you make the payments. A real estate consultant can help here with going through the papers. You could also refer to the past history of the builder.

4. Timeliness - Variations of around 6 months etc in completion. are common in today's real estate scenario due to lack of funds availability. Anything beyond this should raise a doubt or two in your mind about possible date of hand over. Some reputed builders in Kerala like Skyline and SFS maintain a great track of timely completion.

5. Safety over Price - If Safety is more important than price, one could look at a project which is ready for hand over within 3 to 6 months. This means than you would have to pay about 15 to 20% more than launch price , however you can be safely assured of the completion of your project.

Nandanam Consultants can help you overcome a lot of these difficulties with prudent advice and regular communications via newsletters and emails so that you can avoid such traps in the real estate market.

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.

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 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.

Trivandrum real estate buying trends

In Trivandrum, the trend of bigger area for apartments has changed and now builders are planning budget apartments which can be sold for a price below Rs 40 lakh. Around 50 per cent of the buyers prefer budget apartments, 30 to 40 per cent can afford Rs 40 to Rs 70 lakh and 10 per cent go for luxurious apartments which cost more than Rs one crore.

Villa projects are the least preferred owing to the high cost inside the city. Some projects are coming up outside the city, but they too are costly as the land prices are high there too. The new places were projects are launching include,  Balaramapuram, Neyyatinkara, Kovalam, Kazhakkoottam, Nedumangad, Attingal, Peroorkada and Vattiyoorkavu.

However an oversupply of projects is seen in the Kazhakkoottam area targeting the IT professionals, which is not getting a good response as sometimes supply is more than demand. Majority of people still prefer projects in heart of the city. As per an article on IBN, Thiruvananthapuram is one of the most cleanest cities and all basic facilities are available, this is the most preferred place for retirement life.