INVEST IN REAL (GOOD) ESTATE TO FETCH MODERATE TO GOOD RETURNS – ON LONG TERM INVESTMENT


Some Amazing investors might have gained or made a good profit in a short-term real estate business.  But, that was the PAST.

The real estate market is good and better than the stock market, as the available land for human development is being restricted or limited and it does not GROW, therefore, there is every possibility of this sector to grow.

There will be an assured moderate to good returns only on long-term investments. On an average, the return on investment will be anywhere between 2% to 15% per annum and the minimum gestation period will be 5 years to 15 years.

Better returns are available only on vacant land or plots. 2% to 10% on an average per annum.

Moderate returns are available on agricultural or industrial lands (large stretch).3% to 10% on an average.

Minimum returns are available on apartments. 1% to 6% on an average.

 

NEW INVESTMENT IDEAS (concepts) FROM NEW COMPANIES in REAL ESTATE


There is a spurt of action/activity from entrepreneurs in the real estate and service industry in the country and few have the tempting and attractive offers with best ever review about their business ( new concept ) and the subsequent high return on the investment.

Seminars are conducted in major metros and other attractive Indian dominated cities like Dubai, Singapore etc.,

The new concepts are TOTALLY NEW.  There are graphs, figures, diagrams and the FINAL RETURNS on the investment, which is very attractive and tempting with special offers like free holidays and lunch/dinner.  Their websites/URL is on the net.

Some of them are very good performers and the majority are ???????

These companies are short-lived and the promise of high return on the investment is just DREAMZ.

These agencies/organisations/companies are associated with some real estate developers to market their projects at fancy prices.  All the marketing agencies/companies are involved in a different type of marketing and have a basic fixed price and their percentage or profit or margin always remain intact.

They have grand offices with smart assistants and the investors will be treated royally and they will be taken for a royal ride to the project location and details will be explained.  The cost of this ride is included in the price.  The cost of office maintenance and the sweet talk is also included in the price.  The agency commission/service charge is also included in the price.

 

RAJA KALUVE ENCROACHMENT – CLEARING WORK BEGINS SOON


The Government and BBMP are seriously contemplating to revive the removal of the encroachment of raja kaluve and secondary channels in Bangalore during this monsoon to avoid hardship and flooding.

 

BENAMI PROPERTIES IN KARNATAKA


It is interesting to note that few BENAMIS under various names, styles, titles, and documents are trying to SELL/ALIENATE, market their illegal or benami properties acquired with GENERAL POWER OF ATTORNEY or SALE AGREEMENT or ASSIGNMENT AGREEMENT and the developers/marketing agencies/agents/builders/frauds are finding gullible and innocent victims/buyers and DUMP or SELL their illegal or BENAMI Properties.

Most of these properties have GOOD TITLE and banks have approved home loans!!!!

Few such properties are sold as FARM HOUSES and few sellers are creating FAKE agriculturist certificates in neighbouring states.  Beware.

They have good contacts with the banks for home loan and it is being offered at an attractive price.  The agents/marketing agents also get a HANDSOME commission.

Few developers and many more who have BENAMI PROPERTIES are being investigated by the SERIOUS FRAUD INVESTIGATION OFFICE, ENFORCEMENT DIRECTORATE-FOR MONEY LAUNDERING-INCOME TAX DEPARTMENT AND FEW MORE GOVERNMENT INVESTIGATING BODIES MAY ALSO JOIN THEM.

As of now, the real estate market is abuzz with three or four such developers and builders.

Some of the sellers are NRI`S.   Check the income tax requirments of these NRIS with the Income-tax Department.  

Some of these properties are sold in the Middle East countries, Even in Singapore, where Home Mela`s are conducted and free lunch and dinners are offered.

 

CASH TRANSACTIONS OR PAYING CASH OR RECEIVING CASH FOR THE SALE AND PURCHASE OF PROPERTIES


It is strongly advised to avail the services of a professional Chartered Accountant to make CASH Payments.  All the payments towards the purchase of the property must be THROUGH AN ACCOUNT PAYEE DEMAND DRAFT OR CHEQUE OR NEFT OR RTGS.

Cash transaction above a particular limit is not permitted.  Therefore, it is better to avoid the CASH transaction in view of the safety of both the parties.

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.

INCOME TAX DEPARTMENT, SERIOUS FRAUD INVESTIGATION OFFICE, ENFORCEMENT DIRECTORATE AND ANTI MONEY LAUNDERING UNIT ARE EXAMINING FEW DEVELOPERS AND BUILDERS ALLEGED TO HAVE LINKS – A NEWS REPORT


A local news report highlighted the alleged tax evasion, illegal activities, prosecutable transactions, money laundering and BENAMI property acquisition and subsequent sale of the properties through this DEVELOPERS AND BUILDERS.

There are serious allegations around few hundred crores only against builders and developers along with a govinda jeweller- benami investment.

Three such names have appeared, but are (innocents and suspects) till they are convicted.

One such leading builder and developer, who has projects across India is associated with a relative of a famous politician and one such major project in Bangalore is marketed with much fanfare, but the buyers are not aware of the BACKGROUND of this Developer in North Bengaluru.

The other two are from a nearby state and any day or someday when LUCK runs out, will be a good SUBJECT for state enquiry and investigation either by CBI or ED or SFIO, ITO or DRI under various sections of the IPC.

Hope common sense prevails and buyers check the antecedents of all the concerned while buying properties.