Monday, 13 April 2015

“Hopeful about Land Bill” - Vikas Raj Sharma, MD of Cosmic Group

The Land Acquisition Amendment Bill has passed the Lok sabha test and the Land Bill ordinance is soon going to be passed by the PM. With all the turbulence stating of amendments has brought to the country, the real estate sector is also touched upon immensely.
Vikas Raj Sharma, Managing Director, Cosmic Group, is optimistic about the developments which have been tabled in the Lok Sabha. The existing Act keeps 13 acts for Land Acquisition for Central Government Projects out of the purview. These are applicable to the projects of national highways, metro rail, atomic energy projects, electricity related projects, etc. The amendment stated brings all these under the purview of this Act for the purpose of compensation, rehabilitation and resettlement.

Vikas Raj Sharma is hopeful about the changes the Bill is going to bring about. He said, “Modi-led government is development-oriented. The proposed changes which include amendments in compensation and rehabilitation will surely improve the situation of the displaced.”
A fast track process has also been allowed for defence and defence production, rural infrastructure including electrification, affordable housing, industrial corridors and infrastructure projects including projects taken up under Public Private Partnership mode where ownership of the land continues to be vested with the government.
Now multi-crop irrigated land can be acquired for purposes like national security, defence, rural infrastructure including electrification, industrial corridors and building social infrastructure.
Contrary to the above amendments which have brought respite to many displaced citizens, the following amendment was a setback for many. The existing Land Acquisition Act has a consent clause for acquiring land which includes industrial corridors, Public Private Partnership projects, rural infrastructure, affordable housing and defence. But the stated amendments have exempted these five categories from the rule of acquitting land.
Social impact assessment has now been exempted in the Bill tabled in the Lok Sabha. According to the existing Act, it was mandatory before acquitting land. Another point of contention is that the existing Act states that land will be given back to the farmer if it remains unused for five years. But the amendment stated restricts the condition and states that the land will be returned only if the specified project on the land fails to complete the deadline. The new clause has also made government sanction compulsory to prosecute civil servants, unlike earlier when bureaucrats could be punished if found guilty of violating any clause of the Land Act.
Vikas Raj Sharma also said, “The consent clause amendments can be a setback for many awaiting ears. But the national good is the primary responsibility of all citizens. A never-before like development awaits us all”.

The proposed amendments have come as a mixed bag, offering newer reliefs but also limiting the reliefs which had been offered in previous bills.

Monday, 2 February 2015

Few tips on How to Strike an Excellent Commercial Property Deal

Make a Plan of Action to Know Whether Property Would Bring Good Returns
Decide upon your budget that is how much money you can spend to buy a property. Ask questions like is the property on lend? How many lessees have occupied the property? It is also important to assimilate how much rent the lessees are paying. If the property is not given for lease, how much rent you can earn in future.

Know How to Identify a Worthwhile Deal
Many wonder how some people know instantly which one is a good real estate deal and which one is not. This post will reveal the secret to the readers! Every time you are offered a commercial property deal, you should think can you let the deal pass away. Evaluate the various risks involved, and think does the property meet your goals related to monetary returns.

Buy Property from Motivated Sellers
In your pursuit for finding a good commercial property deal, you could also encounter sellers who would be ready to sell their properties below market value. Before buying the property from one of them, you must investigate the pressing reason behind such a lucrative offer. Many motivated sellers do not even bother to negotiate the property price. You just have to give a convincing price offer and the seller would most probably accept it.

Buying a commercial property not only involves assimilating the future monthly returns, and knowing the sellers, but it demands a lot of effective communication. A buyer has to take efforts to cultivate cordial relationships with owners of properties so that they can discuss with him/her about the deals.

Friday, 26 December 2014

Why Real Estate Industry in India is Ripe for Disruption in 2015

As we round out 2014 with a slew of predictions about entrepreneurial innovation in the year to come, there’s one industry that’s virtually always  overlooked in these discussions– real estate industry.  Nevertheless, mark my words. The industry of real estate property is on the brink of disruption.   Though one of the oldest industries in the Indian real estate such as both commercial as well as residential real estate has lagged behind other industries in terms of innovation, particularly when it comes to adopting and advancing technology  In fact, it has been argued that the both residential as well as commercial real estate industry of India is in the same place that the financial services industry.   Thus, there’s a huge opportunity for real estate investor and builder to enter the market to transform everything from how a transaction is done in the manner and method that critical information is accessed.

Where are the specific areas we should expect to see the greatest change?
  1. Better transactions- At the end of the day, both commercial as well as residential real estate is about closing deals—the smoother the process the better.  Fortunately, there is a host of technology and some multinational companies working to provide brokers with tools to make these transactions easier to track, monitor and execute.  One major player is Cosmic India, a leading real estate company in India that has quickly found traction for both commercial as well as residential lease comp information, data that was not previously published or made publicly available.

  2. Improved process management- When it comes to both commercial as well as residential real estate development, finding the right vendors and keeping the project on track can be real challenges. That is why companies like Cosmic India, are generating so much buzz.  Honest Buildings increase efficiency by connecting real estate developers and owners with vetted architects, contractors and other vendors.  Rather than rely solely on word of mouth, businesses can now choose based on past performance, availability, broad reviews, and of course price.

  3. Information aggregation and sharing- Perhaps the area where there’s the greatest likelihood of disruption involves information and facilities available – which in many ways are the backbone of the industry where listings and deals are constantly changing.  Having timely access to information can significantly help all parties involved—from the broker to the client. Cosmic India a leading real estate company in India has also played a role here by aggregating and sharing real estate information that is otherwise hard to locate, difficult to compile or unavailable

As the both commercial as well as residential real estate industry in India continues to grow and evolve, it will be interesting to watch how continued transparency and investment in technology impacts the industry and changes how business is conducted.  With both commercial as well as residential real estate poised to bridge the technology gap and with technology companies ready to produce innovative solutions to today’s, I predict that 2015 will finally be a year of real, measurable change for the industry.

Wednesday, 24 December 2014

Does Brand Names Really Matters in Real estate Property Investment in India

In the world of retail, fashion and real estate, brand names make a giant difference. When customers pick a product, asset or real estate agent, what are the significant determining factors do they consider? Most of the customers saying that the brand name has a major impact on their decision making process. Sometimes big brand names get a dire repute for being high-priced, even though consumers buy the products from top brands than labeled one even if it is cheaper.

For example, in the present market purchasing a computer with small outlet is the easiest way to save money, although customer wishes to buy name brand computers.
If you are a sincere buyer or seller in the real estate property in Indian market, how much does brand matters when picking a realty agent?

In an aggressive market, many real estate property developers and investor are getting happy over branding, adapting new models, parameters and images of Indian real estate Industry. But real estate investor and builder across major metro cities such as Delhi NCR, Mumbai, Banglore, Hyderabad and Kolkatta say that the importance of branding is varying rapidly. The brand name may not help a consumer to hire a real estate agent and some evidences suggest that branding is not so important.

What every customer really cares about is services provided, they just want to know they were getting the same disclosures or not, not the brand name. In today’s market, smaller real estate property industries also offer great services as the environment is less company.

Real estate investor and developer analysts and experts say that as the technology is increasing rapidly, customers can access real estate property information on the internet itself without taking any real estate property agent or third party’s help. Real estate property investment has emerged as the most preferred investment instrument in India.

Even though, In India many of the first time real estate property buyers and sellers who had no experience in purchasing  are arguing that branding is more important than ever because the Indian customers believe that brand name companies are more trusted, mainly those who are offering top indentation services and facilities.

10 Tips for New Real Estate Investors 2014

Many property investors today want to add real estate to their investment portfolios, but they don’t understand the complex nuances of real estate property investing in India or how to begin the process. Real estate property investing in India is substantially different from investing in stocks, bonds, and CDs, and it can seem overwhelming to brand-new investors.

  1. Real estate property investing in India is a business, and you should treat it as such. Start by developing a good business plan, detailing the nuances of starting and running your business, with realistic goals over time frames of one, three, five and 10 years.
  2. Check your credit report to determine your ability to finance investment property.
  3. Find a good bank or mortgage broker in your area if you’re financing your investments. Real estate agents who belong to the National Association of Realtors and must adhere to a code of ethics are good sources for recommendations, or you can ask other investors whom they’ve used.
  4. Determine the best areas to look for real estate properties investment. Some new property buyer and seller make the mistake of limiting their search to areas close to their property. But often better rental areas may be located a little further away.
  5. Talk with other real estate investors about local real estate industry. Join a real estate club in your area. Real estate clubs are great places to network with other investors, lenders, and repair service providers.
  6. Consider multiple sources for buying or selling real estate properties. New investors may think they can only buy or selling homes through their local Multiple Listing Service, or by banging on doors in run-down neighborhoods looking for distressed sellers.
  7. Spend time reading about real estate property investing market.  A tremendous amount of free information exists today online about real estate property investing. When purchasing a book, look for those that offer practical guides on buying, flipping, renting, and selling properties.
  8. Find a good Realtor to help you locate properties. Not all Realtors are experienced or even adept at helping investors.
  9. Look for a return greater than 1% per month of the sales price. An old maxim of real estate expert says that a rental property yielding 1% of the sales price per month is a good deal.
  10. Learn from the best. To achieve success, model your investing decisions over what other successful real estate property investors in your area have done.

Monday, 15 December 2014

10 Real Estate Tips for New Landlords

Generally, some of the real estate investors are also the landlords and property managers. Some investors feel that this is one of the best ways to know what real estate investing is all about. At the initial state you are excited but later the headache of managing all the things starts giving you pain. But there is no need to take tension as there are some important and useful tips for all new landlords to manage their things in the proficient manner.

Cosmic India

  1. Be patient with your tenants: Some tenants are just great and gives no tension and on the other hand some tenants are impossible to deal with. Constant nagging with the tenants can irritate you. So, ensure that you will have all the important things cleared with your tenants to avoid any misunderstanding in the future. 
  2. Property management: It is important for you to manage your property and its surrounding area. So, make all the rules and regulations in advance only. Also, ensure that all your tenants are following these rules. Believe us; this will give you a great relief.
  3. Don’t be a bad landlord: Don’t be a bad or rude landlord. You should always use good words and language with your tenants. This will help you to connect with them easily and your tenants will also treat you as your family. So, avoid using bad and rude words with them.
  4. Land lording as a business: It is important that you should treat land lording as a business. In fact, all the things should be done in legal ways. All the legal procedures should be followed.
  5. Try to get a good state-specific lease and make sure that your lease is clear regarding all expectations that you should have for your residents' responsibilities.
  6. Just have believed in you and do not trust with anything that is on the rental application. Before finalizing anything, it is important for you to verify all the paper and documents.  
  7. Properly screen the applications of your applicants. It is important to check all the documents provided by them. Also, ensure that they do not have any criminal record. Today, police verification is very important. So, you should register all your paper and documents with the police.
  8. If you have a new building or apartment, then it is important for you to advertise about it in the market. Just make some posters and stick them on the walls or you can also give an advertisement in the newspaper.
  9. Do not give up in any difficulty and problem. Try to sort the problem and find solutions for all your problems.
  10. Last, but not the least maintains good relationships with other landlords and property agents so that you can get any help from them.