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:
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 A Kapoor
#360degrees
#360degrees
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