From the Desk of Ajai Kapoor

2016: How can we make the most of this year?

6:00 AM

2016: How can we make the most of this year?

2016 is here … So what should one look forward to in 2016? How should one approach the market? Should one buy or should one sell? Where should one buy? Is there anything in store for investing in the real estate market in 2016? These are probably some of the questions in the minds of most of us as we start the New Year!

We would like to take to offer some suggestions on what you can expect in 2016 and how you can make the most of the current situation in this year.

This is best time to buy in premium and luxury projects:

2011 to 2015 saw the launch of many premium and luxury projects in Mumbai. All these projects are loaded with world-class amenities and offer its buyers a lifestyle that has probably never been experienced in Mumbai. From residences branded by some of the biggest names like Donald Trump, Giorgio Armani, Jade Jagger, Phillip Starck, Four Seasons etc, to services branded by Quintessentially, Les Concierges, Club Concierge etc, to Wellness, Spa and Salon services by Six Senses, Spa L'Occitane, the buyers of these homes can get the best amenities and services at their doorstep. Many of these are being sold asBy Invitation Onlyresidences.

Most of these projects are in different stages of construction and will start getting delivered 2016 onwards. While rates in most of these projects are higher than their launch rates, they have been stagnated over the last year or so. Depending on case to case, developers are offering schemes and freebies which can work to a discount of 10-20%, which may be a good price point to get into these projects. Considering that most of these are now close to possesison, the risk quotient is far lesser than it ever was, making it a strong value proposition to buy a home in a premium and luxury project.

We recommend investment in a premium or luxury home to upgrade yourself and your living for the future  - 2016 will be the best time ever to buy your premium or luxury home.

For the real estate Investor: Time to re-plan your ‘real estate Vision’:

We are now on the verge of completing a cycle that started an upward trend in 2010 - 2011 and is now on downward trend. 2016 may see the end of the downward trend and the start of a new cycle, supported by the pro-development polices of the current government and a strong resurgence of the job generation by corporate India and the emerging start-up eco-system in India. The sale and absorption numbers from the commercial real estate segment tell us that the cycle of job generation and expansion has begun.

This is the right time to re-plan your ‘real estate Vision’ for the next cycle, carefully analyse the real estate assets you hold and decide on how you can swap or upgrade to more relevant assets during the next few years to be able to ensure that your asset value is continuously appreciating for the next few years.

Needles to say, you can connect with us for help on planning your ‘real estate Vision’ for the next few years.

UPGRADE the quality of your real estate Assets:

If you own properties in older buildings, you must realize that in the next few years, these will get even more older. Older properties have multiple maintenance issues and can depreciate over a period of time, rather than appreciating.

The nature of demand is changing - most people prefer newer buildings for their home than older ones - If you have multiple properties, plan and upgrade your properties from old to new to combat the dynamics of the changing demand. Newer properties fetch better rent and are ‘more liquid’ in nature. Potential renters always prefer newer properties than older ones.

Currently, for any locality, the price difference between older properties and newer ones in the same location is marginal. However, we anticipate that this price difference will increase over a period of time with newer buildings appreciating faster and older buildings appreciating much slower (thus resulting in depreciation on a relative basis).

In 2016, you can look at upgrading the quality of your asset by selling older ones and buying newer ones in the same / alternative locality.

Get your documents in place:

We all own one or more real estate assets – be it our home, office, our second home, our family home, or the home / office we have rented out for rental returns.  We may have bought these assets many years back – when we did, we executed the documents for the same and locked them up in our lockers. Most of us don’t end up checking these documents once these are kept in cold storage and as and when we decide to sell the same, we bring these out from our lockers to realize that some document, as required by todays needs, is not available. This can be you primary agreement which was stamped but probably not registered (especially true for properties which are very old), or Nomination papers, or chain of agreements which may not be available with you.

We advise our clients to periodically check the completeness of their title documents of their properties and use this time to make good any gap which may be there so that as and when one wants to sell the same, the title of the property is clear and marketable. This may seem like a very basic and unnecessary piece of advice, but we can assure you that once you check your papers there is a good chance of some inadequacy in the same.

Advice: Connect with your property lawyer and run though the documents with him and ensure all is in place. Get the entire documents scanned and maintain a electronic copy of the same on the cloud to ensure that you don’t lose ownership to you property papers in case of adverse events like a fire / flood / earthquake etc.

In case you need help with good property lawyers or help with registration of your documents / Power of Attorneys etc, we have some of the best names in our panel who can help you with the same. 

- by Ajai Kapoor 

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