AFFORDABLE HOUSING IN BANGALORE


THE AFFORDABLE HOUSING IS A BIG SUCCESS IN BANGALORE.

The Government is encouraging the Affordable Housing in the range of Rs.25 lakhs to Rs.35 Lakhs with 1% interest benefit and few developers have already sprung and are in the final leg of completing the project with RERA Approval, though, it might be slightly far off, but technically is the most apt projects for the buyers.

Those who are residing in the rented or leased houses or apartments paying the Rent in the range of Rs.10,000/- to Rs.20,000/- can and may opt for affordable housing projects at the price range within Rs.40 Lakhs and with interest subsidy and other host of benefits(if the builder provides) will be the best bet. The maintenance charges (monthly) will also be meager and financial commitment will be comparatively lesser.

But, check everything thoroughly before booking the apartment.

Avoid PRE LAUNCH Projects.

Prefer completed projects of well known and reputed builders, with immediate occupancy and clear titles.  Do not opt for properties with suits/litigations/cases, because they are offered at cheaper or at a reduced price.

Transact or deal with only RERA approved agents or agencies.

Buy RERA approved project properties.

Do not buy B katha properties, because, they are closer and nearer and cheaper.

Beware of touts and frauds.

Do not pay the advance or buy from the entities, which have criminal and financial suits or cases or litigation or connection with criminals, however big the builder might be.

Do not make abnormal or excessive financial commitments to buy the property, the financial commitment or EMI must not be more than 20% to 30% of your disposable income.

Do not borrow PERSONAL LOANS at exorbitant rates of interest to pay 20% or 25% initial deposit.

Do not invest with borrowed funds.  The net return including property value appreciation will not be more than 2% to 8%.  If you are lucky, you might in rarest of the rare cases, may get a good appreciation. But, such chances are very less.  If there is such an opportunity, NO BUILDER will ever sell the property, might be willing to retain to get the value appreciation.

Do not buy the property to avail income tax benefit alone.

It is said that there are over 1,00,000 apartments lying vacant or unsold-ready to move in-choose and bargain for the best price-do not compromise on the quality and legal titles.

TAKE CARE.

THE REALITY OF THE REALTY MARKET


The real estate market is reeling under abnormal pressure due to NON-SALE, UNSOLD INVENTORY OR STOCK, DOWNWARD PRICE TREND, HIGH LABOUR COST, HIGH LAND COST AND ABOVE ALL , THE NEW LAW AND MOUNTING INTEREST.

Many of the builders will GO with the NEW LAW and few might remain.

The builders/sellers and brokers are creating artificial demand with different type of marketing technique and offering all kinds of baits to the buyers.

It is learnt that the banks, of late, in the last three months are feeling the default of the EMI and may soon begin the SEIZURE OF PROPERTIES OR ATTACH THE PROPERTIES IN coming months.

The builders are left of huge unsold stocks of apartments, but, they are clever liers, always boasting that all their projects are SOLD.

The reality is different in this sector.  

Unlimited lies.

Worst Quality.

Worst products.

Dangerous designs or structures.

Abnormal pricing.

Cheating by charging abnormal BESCOM and BWSSB Deposits.

VAT collected but not paid to Government and in many cases VAT is collected over and above the due amount.

SERVICE TAX collected and some of them have never paid it.

ARREARS OF TAXES is on the head of most of the builders.

All these factors will affect the buyers or the consumers.

 

THE REALTY MARKET TREND


 

THE REAL ESTATE MARKET PRICE SCENARIO !!!

The real estate market is struggling with low demand, low sales and high inventory, except Bengaluru, and the policy makers are of the opinion that the present scenario must end with the developers reducing the prices and that will be a big help to the sector because there is a sense that the prices have stabilized and there will be more buyers of the property in the market.

The market is experiencing small corrections here and there but by and large remains stagnant and the development must be accelerated by reducing the interest rates, reducing the prices and providing tax benefits.

The RBI may reduce the interest rates further to accelerate the recovery of this sector and put the industry in the FAST MODE, provided the developers REDUCE THE PRICE to the affordable levels.

 

UNSOLD APARTMENTS IN BANGALORE IS AROUND 1,00,000 AND MANY MORE ARE COMING UP


IT IS TRUE THAT THERE ARE OVER A LAKH APARTMENTS REMAINS UNSOLD AND THE DEVELOPERS ARE COMING UP WITH NEW PROJECTS, THE BUYERS ARE BAFFLED AT THE PARADOX, INSPITE OF THE UNSOLD INVENTORY AND THE RENTAL MARKET IS COMING DOWN, THE PRICES OF THE APARTMENTS HAVE NOT GONE DOWN SUBSTANTIALLY.

THE BUYERS ARE DUPED WITH ALL UNNECESSARY AMENITIES AND PRE LAUNCH (TOPI) PROJECTS AND SOME ARE LAUNCHING WITHOUT ANY DOCUMENTS AND APPROVALS AT THROWAWAY PRICES.  

IT IS A PARADOX THAT DEMAND SUPPLY AND PRICE MECHANISM IS NOT PROPERLY FUNCTIONING OR A POWERFUL COTERIE IS CONTROLLING THE WHOLE SHOW!!!  OR THE PRICE MAY BE DOWN GRADUALLY!!!

SINGLE BEDROOM AND DOUBLE BEDROOM IN THE CONGESTED AREAS OF BANGALORE SOUTH, EAST AND NORTH ARE FEELING THE HEAT OF RENT REDUCTION.

IT IS NOT ONLY IN BANGALORE THAT THE REAL ESTATE MARKET IS DOWN, BUT THE SAME SCENARIO IS SEEN IN MUMBAI WITH OVER 75000 UNSOLD FLATS !!!