Summary: For several reasons like favorable skilled demographics, a liberal Govt. policy, IT and retail boom, the global perception towards Indian economy is changing fast. This positive change has helped the Indian reality sector to boom.
Construction and development segment is one of the fastest growing sectors of the Indian economy. This segment is augmenting investors. Even the real estate prices are augmenting fast, especially in metros and upcoming cities like Bhubaneswar, Kochi, Pune and Nasik. This rapidly growing market is maturing day by day as large numbers of people are taking part in it.
Flying high on the wings of this booming sector, property in India has become a dream for every prospective investor looking forward to dig profits. All are eyeing Indian construction and development sector for a wide variety of reasons:
* India is a growing economy with a continuous rise of 8 percent for last three years. This growth has increased purchasing power of Indians and created demand for reality sector.
* India is producing 2 million new graduates on an annual basis. This necessitates a demand for 100 million square feet of office and industrial space.
* The global perception towards Indian is changing fast. Presence of a large number of Fortune 500 and other major MNCs has created a feel good atmosphere in the Indian economy. This positive change will attract more companies to initiate their operational bases in India and will create more demand for corporate space.
* For investment purpose, India is a safe destination. According to a recent survey, 70 percent of foreign investors in India are making profits and another 12 percent are breaking even. This statistics is powerful enough to attract more and more FDI in Indian reality sector.
* The relaxed FDI rules implemented by Govt. of India last year has invited more foreign investors. After the decision of 100% FDI in this sector, real estate in India is seemingly the most lucrative ground at present. The revised policies are very much investor friendly and have allowed foreigners to own property. Now government of India dropped the minimum size for housing estates built with foreign capital to 25 acres (10 hectares) from 100 acres (40 hectares).
• Apart from IT, ITES and Business Process Outsourcing (BPO) India has shown its immense expertise in sectors like chemicals, apparels, pharmaceuticals and jewelery. In these sectors India can match the best in the world. These positive attributes of India is definitely going to attract more foreign investors in the reality sector in near future.
Sunday, August 31, 2008
Determine the profit on your Real Estate sale
Most people look to compromise in their area to come up with the listing price for their property. This is logical, but you also have to hub on the bottom line.
How Much Would You Make on The Sale of Your Property?
It happens more frequently than you might imagine. A homeowner decides to sell and goes about figuring the top price to sell. They might set a price off of the cuff or does study to ascertain the best price that will result in a sale within a specific time period. What many do not take into account, nevertheless, is the ultimate amount would get from the property. This could lead to brutal surprises when the eventual amount is much less than expected a concept known as seller’s remorse.
In realism, the decision to sell your property must only be made after determining what you could objectively get out of it. Most people, however, lean to eyeball this amount. If you have a lot of justice in the property, it in fact is not an issue. If you don’t, you better start calculating or you can be in for a bad shock.
The first place to start is the predictable price you would sell for minus the outstanding balance on your mortgage. This gives you a rough estimate of your equity, but must not be relied upon as the final cash out figure. Instead, you have to sit down and start calculating the other costs such as:
* Mortgage pre-payment penalties,
* Property taxes for the part of the related year in which you are selling.
* Any costs connected with repairs to the property to get it in shape to sell.
* Attorney’s fees if a lawyer is necessary to be part of the process in your state.
Incidental costs connected with the sale as agreed to in the purchase agreement with the buyer. Items could include title insurance premiums, recording fees, examination fees, warranty insurance, escrow fees and so on.
One area people totally forget to factor in is, ironically, the main expense. If you use a real estate agent, you are going to pay an important commission. A typical 6 percent commission on the sale of a $300,000 home is $18,000. More and more sellers are bypassing this by selling their properties without agents, which makes brains given the money involved. Regardless, you require ascertaining how you would sell the home and the relevant cost of doing so as part of your overall calculation. Making the choice to sell is an emotional one. It should, however, also comprise a hard, cold look at the financials involved and whether doing so makes sense.
How Much Would You Make on The Sale of Your Property?
It happens more frequently than you might imagine. A homeowner decides to sell and goes about figuring the top price to sell. They might set a price off of the cuff or does study to ascertain the best price that will result in a sale within a specific time period. What many do not take into account, nevertheless, is the ultimate amount would get from the property. This could lead to brutal surprises when the eventual amount is much less than expected a concept known as seller’s remorse.
In realism, the decision to sell your property must only be made after determining what you could objectively get out of it. Most people, however, lean to eyeball this amount. If you have a lot of justice in the property, it in fact is not an issue. If you don’t, you better start calculating or you can be in for a bad shock.
The first place to start is the predictable price you would sell for minus the outstanding balance on your mortgage. This gives you a rough estimate of your equity, but must not be relied upon as the final cash out figure. Instead, you have to sit down and start calculating the other costs such as:
* Mortgage pre-payment penalties,
* Property taxes for the part of the related year in which you are selling.
* Any costs connected with repairs to the property to get it in shape to sell.
* Attorney’s fees if a lawyer is necessary to be part of the process in your state.
Incidental costs connected with the sale as agreed to in the purchase agreement with the buyer. Items could include title insurance premiums, recording fees, examination fees, warranty insurance, escrow fees and so on.
One area people totally forget to factor in is, ironically, the main expense. If you use a real estate agent, you are going to pay an important commission. A typical 6 percent commission on the sale of a $300,000 home is $18,000. More and more sellers are bypassing this by selling their properties without agents, which makes brains given the money involved. Regardless, you require ascertaining how you would sell the home and the relevant cost of doing so as part of your overall calculation. Making the choice to sell is an emotional one. It should, however, also comprise a hard, cold look at the financials involved and whether doing so makes sense.
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