March 2021

Benefits of buying a home from reputed developers

March 18, 2021 0 Real Estate residential Residential Properties

In last decade, the age of home buyers has gone down and number of home buyers has increased substantially. Taking advantage of the same boom, the developers have started to offer the customers with different types of housing projects, for their ease and to cater to their interest.

However, there are some fly-by-night developers who have entered the trade to make some quick money. They would typically release attractive advertisements and offers to lure customers. There are also some developers in every market who have delivered good projects in past but are facing huge financial crisis. Therefore, a critical part of a home-purchasing decision is background check on developer. So what should one look out for:

  1. Choose a developer who has delivered some projects in the city earlier
  2. Check out for a financially strong builder. You can do a google search on the developer to see if he has defaulted on some payment etc or taking huge loans. It’s better to avoid such a developer even if he meets the criteria 1.

While it might sound like some work, a due diligence at this stage will help you to avoid disappointments later. Some of the benefits that one can enjoy by purchasing a home through a reputed developer:

Modern Design

A reputed developer who has multiple projects, will have his own setup to oversee the designing and the construction process. This ensures one gets the most state of the art design, which are functionally useful and provide living comfort for a long time. Typically, a developer with a quick money in mind, doesn’t create his own setup and gets contractors to do everything. This results in compromising quality as the contractor is not bothered about his long term reputation with the end customer. 

Transparency in dealing

A reputed and large developer will have a process to take care of any concern raised by a customer, something which is very important in buying a product with deep engagement. There is a process of 3-4 years during which you need help on aspects like checking progress of the project, payment reconciliation, documentation etc. Small developers don’t have CRM department to handle these queries and ever changing sales people are of no help in such situations. Also, with a large developer, everything will be recorded in writing or through a mail. Registration of projects with RERA also ensure a certain minimum transparency by the builder. The projects offered on individual basis by small builders in unorganized sector are not even registered with RERA and offer no specific details.

Easy accessibility of Home Loans

A reputed developer will already have a project approval done for home loans for its customers through reputed financial institutions. In such a case, it becomes extremely easy for a customer to get his home loan processed. In some cases, financial institutions also offer special promotions on home loans like subvention schemes or special interest rates for home loan on such residential projects.

Timely Project Delivery

Good and reputed developers ensure that they keep their commitments to the customers and therefore use modern project management techniques to ensure customer satisfaction.

Paarth Infrabuild is one of the most reputed developers of Lucknow. They have multiple projects in the city and offer best value for money to its customers with transparent offers.

2021 – The time for residential Real Estate

March 11, 2021 0 residential Residential Properties

2020 though affected adversely due to beaten customer sentiment, saw good traction for residential real estate towards the end of year. Q2 of calendar year was absolutely poor as most of the country was under lockdown, but the pace of recovery intensified with residential  real estate sales increasing by 51% in Q4 2020 when compared to Q3 2020. This is as per the recently published report Residential market update report for Q4’2020 by JLL.

The time for residential Real Estate
Happy family planning their new apartment

Sales picked up on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans & freebies from developers coupled with government incentives such as the reduction of stamp duty in some states like Maharashtra & Karnataka (for affordable housing). The easing of lockdown restrictions and the ongoing festive season further aided in bringing buyers back to the market.

On an annual basis, sales in 2020 recovered to more than 50% of the pre-COVID volumes witnessed in 2019. The markets of Hyderabad, Mumbai and Delhi NCR gained maximum foothold in 2020 as compared to 2019.Some markets like Lucknow, in fact, experienced a big rebound in sales and helped developers to increase prices of properties also, which had been stagnating for last few years.

While there is still a long way to go, the worst is behind for the residential sector, reveals the report. It says the challenges faced by residential real estate in 2020 have, in fact, become the catalyst in providing stimuli to the industry for sustained growth. With people spending an inordinate amount of time at home, the lockdown re-established the importance of owning a house. At the same time, the Central Bank(RBI) is leading the way to recovery by holding policy rates at historically low levels to initiate a cycle of consumption-led growth. This has resulted in extremely low mortgage rates. And, prices have also been stagnant for the past few years. This affordable synergy makes it a great time to purchase a home. Furthermore, the market is also witnessing renewed interest from Non-Resident Indians (NRIs).

The significance of owning a home to avoid the uncertainties of living in a rented accommodation was reinforced during the pandemic. The desire to own a home is perhaps now stronger than ever. Moreover, while end users continue to drive demand, there is renewed interest from investors and from Non-Resident Indians (NRIs) impacted by economic uncertainties in Europe and the Middle East and they find India to be a safer place than the place they are inhabiting right now.

The pandemic has also changed the preferences of homebuyers and has been bringing in new dimension to property search. A healthy lifestyle will be a key criterion for homebuyers in the post-COVID era. Resultantly, preferences will tilt towards larger homes in self-contained complexes with facilities like gym, green open spaces and access to daily necessities. Moreover, with work from home becoming a reality, product configurations are likely to change with bias towards larger homes.

Also, remote working practices will increase the attractiveness of suburban markets. Suburban markets offer lower density environments and more spacious apartments at affordable rates. Since, travel to office may no longer be an everyday activity, the importance of connectivity to office hubs will no longer dictate home purchases.

It is also pertinent to note that project delays, could be cited as one of the biggest reasons behind a demand slowdown that has gripped India’s residential market in the last few years. Therefore, demand for ready-to move-in homes or homes in advanced stage of construction is likely to remain strong. Also, the effective and uniform implementation of RERA across Uttar Pradesh is expected to improve the confidence of homebuyers and ultimately, lead to greater sales traction in newly launched and under-construction residential projects also.

In 2021, a further improvement in sales across all housing segments is expected. However, development focus on mid and affordable segments is expected to continue. In 2020, more than 80% of the new launches were in the sub Rs 10 million category. Moving ahead, new launches will remain concentrated in these price segments with developers trying to reap the benefits of strong pent up demand in these segments. The government is also committed towards boosting affordable housing. The recent Union Budget has extended the benefit of additional interest deduction on home loans for first time home buyers in the affordable segment. Further, there is a time extension to claim the tax holiday on profits from affordable housing projects until March 2022.

The organised housing market in India has seen the influx of several organised players in a bid to tap the opportunities arising out of the strong demand from a growing millennial workforce. This brought back in focus the modern lifestyle offered by state-of-the-art township designs. The large open areas and facilities contained within are great reasons for customers to flock to these projects. In Lucknow, there are very few options like these available with reputed builders in a modern environment. There will be an increased focus on health and wellness aspects in the post-COVD era, which is expected to drive demand for organised and all-encompassing housing setups. Paarth Republic township offers its customers these advantages to adapt to the changing lifestyle requirements.

Another important aspect which is increasingly being seen in towns like Lucknow is the senior citizens living alone. These senior citizens living alone were the most impacted during the pandemic. The role of an organized township with modern healthcare facilities becomes all too important now. Only a self – contained residential complex can be designed with senior friendly amenities such as medical support on call, services for food, housekeeping and assistance around the clock, which became more prominent during these trying times. This has increased the attractiveness of such facilities and demand for organized senior housing setups is expected to pick up in the near future.

If 2020 was the year that changed everything, 2021 may be the year where change becomes the ‘new normal’ and adapting to this ‘new normal’ will require imagination, innovation and digital transformation. The arrival of 2021 will not shake off all the challenges of a pandemic-riddled economy but the groundwork for a sector-wide recovery has been laid. The year is poised to establish itself as the year where India enters a new phase of real estate growth, innovation and investment.

With strong financial health, Paarth republic is continuing the construction and provision of other facilities and therefore is finding traction with new customers.

10 step guide to buying a new home in India

March 5, 2021 0 residential Residential Properties

Step 1 : Decide your Budget

Your home is one of your biggest purchase. A proper budget has to be planned to know how much money will be left each month to meet your expenses, after accounting for home loan EMIs. It is therefore, very important to look at your past savings for the purpose and estimate how your future earnings are expected to move. It may be simpler for a salaried person, though may involve some serious work for a business owner or a self employed professional. One should also account for any future expenses that can be accounted for now, like children’s educational expense etc.

10 step guide to buying a new home in India

Step 2 : Assess Family requirements

Remember, you are buying a home to ensure that your family enjoys living in it. Different members in the family can have different interests and expectations from new home. It is critical to understand their requirements before you set out on home search. Your family size will help you determine the number of rooms that you need. You may need extra room, in case, a family member is a professional or work from home executive. Older parents, similarly may need easily accessible open space as well as medical facilities nearby. All these along with future needs should be considered while planning to buy your dream home.

Step 3 : Location

It is essential to decide on a few areas where you want to buy a home. It can depend on location of kid’s school or your office. There may be other specific considerations for the family with reference to location and all of these should be brought in, before filtering the preferred locations. Take a good look at the location and the locality by visiting shortlisted areas at different times of the day. It is preferable to choose a developing area, adjacent to the prime business district of your city so that the price is not that high. Location will also have a large impact on the resale value of your home. Choose wisely to ensure your home is a wealth creator for you in future.

Step 4 : Rental rates in the area

The rental rates in an area are a good proxy to understand how people in general perceive an area for living. Since these rates are decided by people based on the amenities in the locality, and the general advantages the locality offers, compared to other locations, it can be a good comparison for several shortlisted locations. Typically a project with higher rentals will be closer to work areas and required amenities like schools and hospitals.

Step 5 : Resale Value

Resale Value is an important thing to consider before you plan to invest or buy a property. Property buyers generally don’t consider this point, when they buy. They make the mistake of focusing solely on a prime locality or the budget of the property. If you choose the wrong property or location, it is possible that your future sales price will always be less than the other homes around it. It is important to look at your home also as a wealth multiplier over a period of time, as at some point of time, you may plan to sell it and buy a new house.

Step 6 : Loan eligibility

Home loan eligibility depends upon the repayment capacity, income, existing loans or debts and age of the loan applicant. The lending company or banks provide online services such as home loan eligibility calculator or pre-approval of loan. These will help calculate loan eligibility of the home loan borrower and therefore help in deciding the budget for your purchase. The maximum loan that can be sanctioned varies with the banks and the eligibility criteria may vary according to the bank or RBI regulations. It is also worthwhile to check the documents that will be needed for availing a home loan and the interest rates offered by different banks. Although, now most of the prominent developers have a facilitation cell for home loans.

Step 7 : Stamp Duty & Registration Fee

This is an important expense or tax, much like the sales tax and income tax that are collected by the Government. When planning your budget for property buying and deciding to buy a property, you need to know the rate and charges applicable in your city. If you want to know the market value of your property and the stamp duty amount on it, you need to contact the Ready Reckoner to locate your valuation zone and sub-zone. These details are available online as well as the builder team can guide you on it.

Step 8 : Additional Costs

Even if this isn’t your first time home buying, you will want to get help from a team of professionals. Fees or service charge by real estate agents, lenders or mortgage brokers, home inspector, land surveyor, lawyer or notary etc should be considered. Find out how much is the maintenance charge. Will car parking be provided and do you have to pay extra for it. If your previous owner did not have a vehicle, speak to the secretary of the society and ask for a parking lot. Also, you should consider getting your home insured, which will also have a cost.

Step 9 : Developer credentials

Different developers have varying motivation behind a project development. There are some developers, who have multiple projects in the city or elsewhere and therefore, they want to give a lasting value to the customers, expecting to earn a goodwill. At the same time, there are some whose only interest is in making quick money. It is, therefore, important to do a thorough check on the developer before you sign on the dotted line.

Step 10 : Approvals

There have been multiple instances when developers launched a project without getting all the approvals. Though, with RERA, the instances of the same have reduced but there are still some people who try to play on customer’s ignorance. It is important to check all the necessary approvals – like RERA approval. You may visit RERA website to get complete details as shared by a developer with the authorities and then cross check the details given by developer representative with these.

If you take care of these steps, your home buying experience will be smooth and you will enjoy long term happiness. The process may take some time, but when making an important investment decisions, it is worthwhile to spend this time.

If you are looking to buy a property in Lucknow, trust Paarth Infrabuild. With some of the best residential projects in the city and a legacy of trust and transparency, they will be an ideal support to help fulfil your dream of a beautiful home.