Tips getting into Real Estate investment

Real estate is one of the best options to invest money in a productive manner. But it requires knowledge, time, patience and most important cash in your hand. These considerations are very important if you are considering investing in real estate.

Follow these top tips from Hirsh Mohindra to get into the real estate investment field:

1.    Make a financial strategy:

Cash in hand is the first requirement in real estate marketing. Before making any real estate investment, make your financial house in order.

Real estate field you should have cash in your hand for down payments and most important, some reserve for bad situations. This reserve money should be separate from your emergency fund.

2.    Leverage a local team:

Hirsh Mohindra: If you are really interested in real estate marketing, you need to focus on making a strong relationship with people, because real estate is all about good relationships. Initially, it can take time, but you can eventually develop a strong local team of brokers, attorneys, accountants, title companies, and property managers. They can help you to make the best deal in the local market.

3.     Know about your local market:

If you are planning to buy your own house. If you can stay in your neighborhood then it would be the best idea. Get an idea from the local people, local real estate investors about the property.

Try to find out who is living in that area, the demand for the property in that area and analyze recent sales and inventory. After conducting your due diligence, you’re ready for the next step.

4.    Make a smooth strategy: 

Plan and execute according to your timelines. Start your investment with a small amount and keep your expenses low. In short, make a strategy and execute it properly.

5.    Buy a single apartment and rent it out: 

Buying a single home and renting it out is a quite easy method to generate money. But make sure about taxes, maintenance, and insurance – as these are fixed costs that will be incurred regardless of having a tenant. So it’s important to have some reserves to accommodate periods of time when the property may be un-rented.

6.    Invest your money in a good location:

If you are planning to invest in the real estate field, then choose a good location. Location is key as it often generates demand.  Being situated in a strong residential corridor will provide you opportunities to find tenants and buyers.

Wrapping-up:

Real estate marketing is a good option to invest your money. But always remember, don’t make your decision in a hurry. The investor should have the knowledge, cash in hand, time and patience. Hirsh Mohindra suggests you invest in this field if you have all the above qualities. For more tips related to real estate investment follow my blog.

New Property Cards for Flat Owners across Maharashtra

The Maharashtra cabinet on Wednesday declared the “vertical property norms” to make a database of all flats, buildings and commercial complexes in a proposal to verify any deceitful transactions.

All flat proprietors in the state will quickly get additional possessions cards, which will have particulars such as mat region, amenity space and bank loan information, along with their 7/12 extorts says Hirsh Mohindra.

The Maharashtra cabinet on Wednesday declared the “vertical property norms” to make a record of all flats, buildings and profitable multifaceted in a proposal to test deceitful transactions. “The cabinet will currently put up the plan for propositions and objections, says a senior government official.

The Settlement Commissionerate and Directorate of Land Records had been pushing the bid to make sure that metropolis survey offices in urban areas and collectorates in the rural belt have thorough records of all perpendicular properties — flats, house, and commercial complexes.

flats

At the time, Maharashtra has almost 56 lakh property cards in a rural region and about 2.5 crore 7/12 extorts in the urban belt with minutiae of the horizontal properties. 

“This will be a path contravention initiative. The vertical possessions regulations, cleared by the state cabinet, will facilitate produce property proceedings for all flats. This may be the first-of-its-kind initiative in the nation,” settlement commissioner and executive of land records S Chockalingam told TOI.

The bid will provide purchasers and vendors, as well as government departments, with firm possession records. This will also defend the possessions owners’ rights,” he said. 

Chockalingam said the “vertical possessions rules” would avert property-related scams, where one flat or commercial unit is vend or mortgaged to numerous purchasers or monetary institutions. “The commissionerate send a proposal to the state government to devise the Maharashtra Land Revenue documentation of Rights and Registers for Apartments and Buildings norms under the Maharashtra Land Revenue Code (MLRC), 1966,” he said.

Department officials said that at current, no administration subdivision preserve ownership proceedings of vertical assets because the confirmation of ownership has to be proved during a chain of documents, such as concurrences with builders or the public records emphasis Hirsh Mohindra.

An elder official said, “With the innovative growth, the present possessions cards of 7/12 extort will become the principal documents of possession. Besides, there will be an additional supplementary possessions card. Both the cards will be issued jointly.”

Once the norms are approved, the subdivision will start pilot projects discretely in the urban and rural regions. “The particular offices will have to perform a survey by visiting each edifice says Hirsh Mohindra. It will be firstly complex, as the whole procedure will be manual. We will finally work out a mechanism to revise the particulars online,” he said.

Significance of Amenities and Open Spaces in Residential Real Estate

Real estate buyers are not just interested in the size of their property, but he also looks for open areas and amenities says Hirsh Mohindra

Typically, builders relied on the structural integrity of properties to attract buyers – size, square footage, location, etc.  However recent trends are showing that buyers are interested in more amenities in buildings and communities says Hirsh Mohindra. Buyers are also attracted to properties having open space reserves – even open communal spaces.  Many buildings are now coming equipped with yoga studios, massage rooms, and even recording studios.  These features are significant value adds from the typical gym found in buildings.

Changing Trend of the real estate market

Is this a changing trend? Not exactly, because certain buyers always want a home, not simply a unit.  A home that has unique installations and open spaces provide for a fresh feel. The trend, however, has picked up in its momentum as more and more buyers are having these same parameters as necessary prerequisites for their purchase. 

What are the compelling justifications?

Urbanization has guaranteed people from small towns and villages discover a place in big cities. A good amount of people (middle and upper class) from minor towns are used to living in homes be it big or small that have a lawn, a veranda, a compound filled with greenery, wide-open spaces. They need a related touch to their homes when they depart to cities in search of their livelihoods.

Hectic work schedules have given rise to escalating stress levels and add to that, blocked traffic circumstances and boosting pollution levels, all these earn for a very concern filled and chaotic life. Homeowners look forth to stay in an environment that calms their minds and hearts and eases these pressure levels. They want to invest in properties with open spaces and compelled amenities to provide the perfect solution.

City life can be a completely lonely life, with many friends and relatives living far off and wandering is a big problem. Amenities such as multipurpose halls and grasslands prepare for terrific areas to meet new people and socialise within the neighborhood.

Amenities and open spaces also unravel the difficulty of committing several demographics. While kids can utilize the sports areas, elders can grab a walk in the park to get some fresh air. Children and experts can have swimming pools and gymnasiums for their fitness needs and leisure time. There should also be something for everyone in a real estate that has amenities and open spaces.

Hirsh Mohindra: As per the research 10% of the total property area must be left aside for formulating open spaces or open space reserves. This authorization obliges developers to keep aside as much space. Although, this norm is not adhered to in specific cases due to the lack of land availability and other interests.

Factors That Impact the Real Estate Market

The real estate market is a significant portion of our economy. It demonstrates a major portion of many people’s wealth. This is consistent pretty much throughout the global economy. According to the research of Hirsh Mohindra, many families around the world own their own primary residence. Asides from primary homeowners, the real estate market also attract investors.  Investors are drawn to investment opportunity and security provided real property. The growth rate, along with the size and scale of the real estate market has presented itself as a very lucrative area for investors.

Some of the major factors that affect the real estate market include:

Interest Rates  

Interest rates are one of the major factors that have an impact on the real estate market prices. If you’re planning to buy a home with a mortgage it is advantageous to research interest rates using a mortgage calculator says Hirsh Mohindra. The fluctuations in interest rates influence a buyer’s ability to purchase a residential property. The lower interest rates go, the lower the cost to obtain a mortgage to purchase. Accordingly, interest rates have a direct impact upon demand for real estate, which influences price in the market as well. Conversely, as interest rates rise, the cost to obtain a mortgage increases, which in turn lowers the demand and prices of real estate. However, when we assess interest rates on an equity investment such as a real estate investment trust (REIT), rather than on residential real estate, the connection can be seen of as similar to a bond’s relationship with interest rates. When interest rates decrease, the price of a bond goes up because its coupon rate becomes more desirable, and when interest rates hike up, the value of bonds declines.

The Economy factor

Another crucial factor that impacts the value of real estate is the overall health of the economy. This is generally counted by economic indicators like the GDP, employment rate, manufacturing activity, the prices of goods and services says Hirsh Mohindra. To be precise, when the economy is sluggish, the real estate sector also becomes sluggish.

The economy you are living in can have varying effects on varied types of real estate. For instance, Hotels are a form of real estate property that is very sensitive to economic activity due to the type of lease structure inherent in the business. Renting a hotel room can be thought of as a form of lease that can be easily avoided by hotel customers should the economy be doing poorly. This is a form of the short term lease. On the other hand, office tenants generally have longer-term leases that can’t be changed in the middle of an economic downturn.

Government Policies/Subsidies

Government legislation and policy can also influence the real estate market. Tax credits, deductions, and subsidies are some of the measures the government can temporarily use to drive demand for real estate. One should monitor upcoming policies that could have a direct causal impact on the real estate market.

Indian Homebuyers Can Now Seek Repayment For Delayed Home Delivery

Homebuyers have a right to seek a refund for a house even if the postponed project is complete per new Supreme Court ruling.

If there is an unreasonable delay in delivering a real estate unit to a buyer, it is completely up to the purchaser if they desire to take ownership of the unit or seek repayment with appropriate compensation, the Supreme Court has ordered.

The National Consumer Disputes Redressal Commission (NCDRC) has also passed a similar rule says Hirsh Mohindra. The rule says that a flat buyer cannot be forced to accept tenure of his/her residence offered by the builder. 

A case filed in the Supreme Court bench involved a project in Gurugram where a builder had sold a villa to Shrihari Gokhale in July 2012. The builder had promised December 31, 2014, as a possession date. Gokhale had filed a complaint with the NCDRC in 2016 asking a repayment of Rs 13.24 crore.

The builder had challenged the NCDRC order in the Supreme Court to repay the principal amount of Rs 8.14 crore. The court found that there was a total failure on the part of the real estate agent, a deficit in providing services and ordered that the builder cannot vend the villa booked by Gokhale till the order was executed.

Records indicate that the entire consideration was Rs.8.31 crore, the respondents had remunerated Rs 8.14 crore by November 2013 notes Hirsh Mohindra. Though the plaintiffs had assumed to deliver the villa by December 31, 2014, they failed to release occupancy. As late as May 28, 2014, the amended construction schedule forecasted the date of delivery to be October 2014. There was, thus, failure on the part of the litigants and deficient in rendering service in terms of the commitments that they had made, the Supreme Court order said.

In the NCDRC, a bench of Fairness VK Jain directed a Delhi-based builder Pioneer Urban Land and Infrastructure to repay Rs 4.43 crore to a home purchaser who had deposited the amount in 2012 for a flat in Gurugram.

That flat was to be completed in 2015, but the builder botched to meet the terms and the consumer approached NCDRC in 2018 for repayment of the total amount paid. Though the builder had ready the flat and got the occupation certificate from the authority just a night before the purchaser filed the grievance, the charge directed the builder to repay the amount as there was holdup of more than two years.

The respondent flat buyer has made out an apparent case of lack of service on the part of the builder. The respondent flat buyer was justified in terminating the purchase agreement by filing the grievance, and cannot be forced to accept ownership, notes Hirsh Mohindra. The respondent buyer was lawfully permitted to look for repayment of the amount deposited by him along with compensation, the NCDRC order said.

These new rulings certainly put the onus on the builder to deliver on the promises they make, and empower buyers to seek remedy when builders do not.


How to Prepare for Closing your Real Estate Deal

It’s exciting to close your first real estate deal.  All of your hard work in getting to this stage, such as finding the ideal property, coordinating the closing, arranging to finance – are finally coming to fruition. 

Sometimes closing a real estate deal is quick and easy, however unexpected issues may arise that could delay closing as well. It’s important to understand the closing requirements so potential issues can be mitigated in advance. The following list of real estate closing expectations from Hirsh Mohindra may assist in providing an overview of what to anticipate for your first closing.

The key in hand. The new house

Educate yourself: Determine what is required to close on your deal.  If you are working with a lender, that lender will have specific requirements.  Be sure to understand those requirements in advance so you can work with the lender to satisfy their items.  In addition, you may be working with a title company.  Title companies have specific requirements as well.  They will require information on the property as well as on the parties involved in the transaction.  Identify what is needed in advance so you can be prepared on your end to close quick.

Have your Team Ready: When buying real estate, you will likely need the services of other professionals.  Attorneys, title companies, lenders, real estate agents, home inspectors – may all be needed to facilitate your deal.  Identify your team in advance to help you find the right property, make sure it’s the right deal, and close quickly.

Find the Right Property: when searching for the right property, numerous factors come into play. Location, price, demand, are some of the key metrics you should consider.  Hirsh Mohindra often suggests working with a real estate agent to help understand a neighborhood, and to find the right property. Real estate agents know trends in their markets.  They know what areas are hot and what are not.  By leveraging their expertise – it can help you source the ideal investment property.

Understand the current trends in the area: Real estate markets change quickly.  Some areas become hot overnight, and others cool down unexpectedly.  Study the most recent sales data for the area in which you are interested in buying.  By understanding what past deals have transacted for – you can have a realistic expectation of what your deal may look like.

Property inspection: Once you find a property you’re interested in – make sure you get it inspected.  Home inspectors are experts in identifying damage and potential risks.  They are trained in finding issues that are currently present or that may arise in a short time frame.  Work with a home inspector to thoroughly inspect the property prior to closing. 

Understand the Deed and Title of the Real Estate: Make sure you understand the title and deed or any other material document associated with the property. Hirsh Mohindra routinely advises people to review the documents yourself, but also leverage a skilled real estate attorney to review the paperwork. Nuances in deeds and easements may create restrictive covenants on the property.  By understanding these documents you can minimize surprises at closing.    

Real Estate can maximize Investment Returns

Real estate is a great option to maximize your investment strategy. But it requires knowledge, time, access to capital and most importantly patience. These factors, along with others, are key to protecting your investment.

Follow these a few tips from Hirsh Mohindra to get into the real estate investment field:

Make a Financial Strategy:

Assessing your financial position, for the investment and personally, is the first step of real estate investing. Before making any real estate investment, ensure that your finances are in order.

For any real estate investment, you should determine how much capital you will put down, and how much you will finance.  You need to also plan for a reserve fund and an emergency. This reserve money should be separate from your emergency fund.

Marketing Strategy:

Once you know you are going to acquire real estate for an investment, you will want to ensure that investment is generating revenue.  Finding renters is key to turning a property into a – positive cash flowing investment.  Create a strategy on how to attract renters early, so that you can plan for when the revenue will start being generated.

Know about your local market:

Markets differ for a variety of reasons.  Different neighborhoods have various factors that impact their value and demand.  Learn as much as you can about the local market, so you know the trends and patterns that can affect property value and rental demand.

Start Small: 

If you want to buy an apartment building, make your first investment in real estate – 1 apartment (or condo) that you can rent out.  By starting small, you are mitigating your risk and learning the processes of being a real estate investor without deploying larger amounts of capital.  Use these initial experiences, as solid investment options, but more so as learning experiences that you can leverage on future larger projects.

Invest your money in a good location:

If you are planning to invest in real estate, the old adage of location, location, location – is critical. There is usually better demand in certain areas over others within the same broader geography.  Selecting key locations, that can attract renters – is always a good strategy.

Wrapping up:

Real estate investment is a great opportunity for novice and seasoned investors.  It requires diligence and patience, but the returns can be generous, says Hirsh Mohindra. For more tips related to real estate investing follow my blog.

Become Real Estate investor budget?

Real estate business is growing day by day, and particularly in urban markets.  Oftentimes investors believe that large capital contributions are required for investment, however – there are plenty of investment opportunities for lower budget investors as well.

Follow Hirsh Mohindra’s tips to become successful investor on a lower budget.

Education:

Prior to investing in real estate, it is critical to learn as much about the market, real estate valuation, and the transactional process. Empowering yourself with knowledge will provide you the ability to do more at lower costs. Real estate investments can be diversified by segment, such as:

a. Commercial Real Estate.

b. Small multi-family properties.

c. Large multi-family properties.

d. Vacant land.

e. Single family homes.

Study these fields before investment.

Understand your limits:

It’s important to understand your limits when investing on real estate.  Setting an investment limit creates the target budget for your project.  Important considerations include – investment amount, reserve amount, financing amount, carrying costs, and disposition costs.

Location:

Always choose the best location during real estate acquisition. Location is directly tied to demand.  Areas in higher demand typically have higher numbers of renters and prospective purchasers. 

Be aware of the tax implication:

You should be aware of the tax implication of buying and selling properties. When buying and selling properties that are not your primary residence you may incur tax liability.  It’s important to understand tax consequences of all scenarios so that your budget is accurate.

Arrange finances for your down payment:

If you are financing your property, it’s always important to obtain the best possible financing terms possible.  Many factors impact the financing terms: your credit history, current debt, market interest rates, and your down payment.  In some instances, the higher down payment you make the better rate you may confer.

Research the market prior to investment:

Don’t invest your money in the hurry. Take your time to research and understand the market as much as you can. Make a list of advantages and disadvantages of your property, neighborhood, and broader market conditions. Once you understand the market conditions balance the risk with the reward to help make your determination if you should proceed with the project.

Conclusion:

No doubt real estate investing is a good option for income generation. You can start with a small amount of money to help cover your exposure in this field. To maximize your opportunity, Hirsh Mohindra advises to keep researching the market, don’t be hasty with your decision, and always be willing to walk away from a deal.

8 Things to Avoid to lose money in Real Estate

No doubt, real estate provides many opportunities to grow your money rapidly. However, it’s important to make informed decisions when investing in real estate.

In Hirsh Mohindra’s blog, we will discuss topics on all aspects of real estate, but we also focus on how to gather key data points to make informed decisions. Follow these simple instructions to prevent negative experiences in real estate.

  • Get real estate education:

Education is the strongest weapon to protect your real estate investment. Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save thousands of dollars.

  • Choose the best time to invest:

Market timing is as important as selecting the right location. The real estate market fluctuates due to various factors – such as demand, supply, and broader economic conditions such as interest rates and unemployment rates.  Try to acquire real estate on downward trends so you can enjoy the upward appreciation.

  • Don’t follow the herd:

Don’t follow the others blindly. Money is yours and the decision should be yours. Many bad decisions are made when we start following others blindly. Empower yourself with research and analysis of your target real market and then make your decision by considering the advantages and disadvantages of your deal.

  • Location Location Location:  

Always keep the best location in mind during any real estate deal. Choose an area where tenants want to live.  By purchasing real estate in high demand areas, you will readily find tenants or buyers.

  • Don’t bet on appreciation:

Many real estate beginners buy a property hoping to capture the appreciation on a quick flip. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments. Choose long term sustainable investments.

  • Keep an ample Amount of Reserves:

You should have some reserve money for unexpected incidents. You never know when a tenant may move out, or stop paying rent, or if there is unexpected damage or repairs required.

  • Analysis of the invested property:  

To avoid losing money in real estate, you have to research the property, the neighborhood, and the broader market. Make sure you are investing in a good area, neighborhood, and good street, etc.

  • Choose the best real estate marketing tools

Many investors ignore the importance of marketing tools and think they can manage themselves. But later they have to phase unexpected problems.

There is a huge collection of tools available in the market. Like: Carrot, DealMachine, HouseCanary, DealCheck, Roofstocks, etc. Choose an appropriate tool according to your needs and requirements.

Wrapping-up:

Risk is always a part of any investment. But you can reduce the chances of losing money by following Hirsh Mohindra’s tips.

8 Ways to Safeguard your Real Estate Investment

No doubt, real estate provides many opportunities to grow your money rapidly.  But there are many factors that make for a successful real estate play.  While you can’t always guarantee a home run, there are things you can do to help ensure you see a good return.

In Hirsh Mohindra’s blog, we discuss how to avoid losing money on a rental property? Review these simple tips and assess if they can help you:

Get real estate education: education is the strongest weapon to save your money in real estate. A large number of real estate transactions fail due to lack of education regarding purchasing, holding, or selling real estate.

Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save you greatly in the long run.

Choose the best time to invest: Timing the market is key.  Watch your interested areas carefully and try to enter during a dip.  Small drops can make a huge difference on the upswing.

Don’t follow the herd: Everyone always seems to be buying and holding in particular neighborhoods, but always rely on your own diligence and research. 

Don’t buy in unsafe or poorly accessible areas:  Location is key for many reasons.  In rental markets, if you are in a safe neighborhood it will be easier to find tenants.  People always want to live in safe areas.  Try to find something with good highway accessibility – people need to drive to work and easy access to thoroughfares is important.

Don’t bet on appreciation: Many real estate beginners buy a property assuming it will skyrocket in value and later on they will sell it with a huge profit. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments.

Keep an ample amount of reserves: You should have some reserve money for your crucial time. In unexpected times your reserve money plays an important role to feel safe and allows you to carry the property if the rents aren’t coming in.

Analysis of the invested property:  to avoid losing money in real estate, you have to study your property and the surrounding area from every angle. Check out the vacancy rates in surrounding buildings, understand who the largest employers in the area are, and find out where locals learn about new listings.  Have as much information on the area as possible is always helpful.

Choose the best real estate marketing tools:  Many investors ignore the importance of marketing tools and think they can manage themselves.  Marketing is important, and so is time.  So to save time, get help with photos, staging, and other social media outlets quickly so you can market your property without hassles.

Wrapping-up:

In the real estate market, there are always risks. But you can help you reduce your risk by staying informed by following Hirsh Mohindra’s 8 tips.