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The Future of the Real Estate Industry in India after Covid-19

Future of real estate after covid

The Covid-19  has infected millions of people across the globe and claimed numerous lives. On 11th March 2020, the World Health Organization (WHO), declared Covid-19 as a global health emergency. With this announcement, all businesses including real estate companies started realizing the impact of coronavirus and turned negative in their outlook.

Imports and trades worldwide have been severely hit, and a grim uncertainty lies ahead. Businesses in varied sectors have to rapidly address the changing needs of suppliers, customers, and employees. Such a step would help organizations navigate through the operational and financial obstacles posed by the coronavirus pandemic.

Indian Real Estate Sector before Covid-19

Before the Covid-19 crisis, the Indian real estate industry had strong fundamentals such as stable leverage ratios, capital available, and leasing activity. The sales of the Indian real estate market were booming, with rising industrialization and an increasing number of workers flocking to metro cities.

stats of real estate before covid
Before Covid-19 Real Estate Stats

The real estate sector in India was backed by healthy economic conditions and had a positive outlook, which led to the growth of real estate in India. The future of the real estate sector in India, at this stage, seemed promising, owing to strong fundamental and increasing demand for residential and commercial real estate.

Impact of Covid-19 on Real Estate Industry

The impact of coronavirus on real estate in India has also been unprecedented. The lockdown, which was enforced for two months, severely affected trading activities. This is expected to affect the prices of steel and other commodities required for construction activities. Even though all restrictions are lifted, difficulty in the procurement of raw materials will reduce construction activities over the next few months.

Real estate prices are expected to see a correction in future, despite a rise in construction cost and labourers’ return from their hometowns to metro-cities. This correction in real estate prices is expected, mainly due to panic selling by some real estate owners and marred buyer sentiment, in the resale market. Most of the new construction projects have been postponed until October.

corona impact on indian real estate
Short and Medium Term Impact of Coronavirus on Indian Real Estate (Source: Housing.com)

This will most probably assist in pushing the selling prices up in cities. Going forward, owners should understand the impact of Covid-19 on Indian real estate and make decisions regarding potential opportunities and available capital. Owners with long-term leases are protected from the near–term impact of coronavirus pandemic, for now, depending on the liquid capacity of tenants.

Whereas, occupiers of these real estate properties will have to deal with challenges regarding the effective operation, liquidity needs, and reduced workforce. India’s government has given tax-incentives for business owners, which can help occupiers offset the short-term impacts of the pandemic.

Present Scenario of Indian Real Estate Market

Taking this into consideration, real estate prices are expected to see a correction soon. According to the survey of 99acres.com, more than 50% of the homebuyers have deferred their purchase decisions. Nearly 3/4th of real estate brokers who participated in this survey said that due to the reduction in the buyer’s interest, the prices have gone down.

During this lockdown, many buyers & sellers will also be facing difficulty to find the best deals, but Myfollo has been doing its job greatly even during this pandemic to by providing the best deals to its clients.

But some say that the opposite has happened & the current pandemic situation has hastened the decision of the buyer who was interested in buying a home. PropTiger data shows that sales in the housing sector of nine major cities declined by almost 80% in the period between April-June 2020. A years-to-sell survey conducted by JLL reveals that the average time to clear the unsold inventory has also risen to more than 3 years due to this pandemic.

Future of Real Estate in India

India has taken specific steps to reopen the country and reinstate economic activity after four stringent lockdowns. The government has, however, given strict instructions to all citizens to follow hygiene norms and social distancing guidelines.

The construction sector in India has been permitted to carry out activities with the norms laid down for sanitization and safety. Construction workers are being educated regarding these norms and guidelines to follow while working on construction sites.

construction activities
Impact on Construction Activities

India’s government has almost done away with the boundary of Red, Orange, and Green zones. Areas in India are now being recognized as on-containment and containment zones. Containment zones are often subjected to stricter lockdown regulations to curb the spread of the virus.

Barring a few containment zones & construction works has resumed in numerous parts of the country. The government of India has also given relaxations to all sectors, including real estate, to revive the economy and prevent it from going into depression. Owners, occupiers, and construction workers have to follow the guideline laid down by the government strictly if we are to see a definite growth pattern in the real estate industry over the next few months.

The real estate in India after the coronavirus pandemic is poised to see a slow recovery. And real estate prices are eventually expected to go up since real estate has and always will be an appreciating asset with HNIs and family offices also preferring real estate over other investment opportunities.

Conclusion

There has been a significant decrease in buyer interest and property visits, due to the ever-increasing threat of the coronavirus. The impact of coronavirus is being realized on increasing scales every day. With such a scenario, the real estate industry has to prepare itself for another potential downfall in the economy.

potential decrease in buyer interest and real estate growth
Potential decrease in buyer interest and real estate growth

Making preparations now will go a long way in ensuring healthy business activity later on. And as well all know, situations usually get much worse before they get any better.

The world has witnessed such outbreaks of viruses in the past, such as Ebola virus, Zika virus, and Sars virus, among others. And the world has successfully recovered from the grips of these deathly viruses. Every downfall allows business owners, to restructure and scale new heights in the future. The Indian real estate should also find areas to restructure and renovate their businesses today, to thrive in the booming economy tomorrow.

Why High Net Worth Individuals (HNIs) and Family Offices should invest in Indian real estate market?

featured image for hni real estate investment

An investment decision backed by educated insights often helps us to achieve our aspirations. A majority of the investors in the market have a portfolio with diversified assets such as government schemes, bonds, gold, and stocks. However, the extremely underrated and neglected investment asset, in today’s times, remains the real estate.

Owing to increased economic growth, the average income of citizens residing in cities has increased drastically. This has given a boost to the demand for real estate, and this demand is expected to grow significantly soon. Such a scenario has allowed investors to invest in real estate today, to reap benefits tomorrow. However, many investors are still unknown to the workings of real estate and its benefits as an investment vehicle.

HNI and family office investment in real estate
HNIs and Family Office Investment in Real Estate Sector

Real estate investment in India is often considered to be a scarce resource and is a hard asset. Investment in commercial property in such a scenario can be extremely good for the long-term. Investment in commercial property has an intrinsic value associated with it, which appreciates over a certain period.

Unlike publicly-traded securities and the involved volatility of public investments, direct investment in real estate can provide steady cash flow in the form of rental income. Having real estate in one’s investment portfolio can have advantages such as portfolio diversification, long-term appreciation, and net cash flow. We at MyFollo have amazing offers for HNI investment options in India.

Pros of investing in the Real Estate

We all are aware of the possible financial benefits we might receive from investing in real estate. There are many benefits to investing in real estate that outweigh the risks, and you, as an investor, will gain a steady flow of income to ensure long haul financial independence. If you back your investments with well thought out real estate investment strategies, the benefits of it will help you reap attractive returns. Here are some of the pros of investing in the real estate sector:

  •    Steady Income

A steady income is one of the most prominent benefits of investing in the real estate sector. Depending on the location of your real estate investment, you can earn significant returns over a specific period.

benefits of investment in real estate
Benefits of Real Estate Investment
  •    Long-term Financial Security

When you invest in real estate, you ensure a steady flow of cash for a long duration. This investment thus enables you to gain financial rewards for a long time. The main aim of investing is to be financially able and have long-term financial security. An investment in real estate helps you achieve just that.

  •    Tax Benefits

Tax benefits are one of the most alluring advantages of investing in real estate. For example, the self-employment tax in India is not levied on rental income. Moreover, the government offers relaxation for property taxes, legal fees, travel expenses, maintenance repairs, insurance, and property depreciation. And the icing on the cake is that investors are subjected to lower tax rates for long-term investment in real estate.

tax benefits by investing in real estate
Tax Benefits from investment in the realty sector
  •    High Appreciation

 Investing in real estate is not for the short term since the benefits of this investment are often realized in the long-term. Real estate investment usually appreciates over time, thus increasing its resale value. In other words, the value of the property that you have invested in today will increase multiple folds by the next 10 years.

benefits of real estate investment
Appreciation of property value

Why should HNI invest in real estate?

High net-worth individuals (HNIs) should consider investing more in real estate as compared to other asset classes. Different asset classes such as equity are more prone to volatility, and hence many times fail to give attractive returns.

Hni investment in real estate
HNI investment in Real Estate

The high appreciation of their investment often guides HNI investment in real estate in abundance as compared to that of a small investor, and can keep a portion of their funds locked in an investment for a longer duration, they should invest in real estate. HNIs should formulate strong real estate investment strategies and aim to achieve attractive returns shortly.

HNI investment options in India are attractive, such as residential and commercial properties, which have the potential to generate attractive returns. For HNI’s, investment in real estate would yield more stable returns and would help them increase their investment value multiple folds over time.

Global stats as compared to india of hni investment in real estate
Global Exposure vs HNI Investment in Real Estate

Why should family offices invest in real estate?

A family office is a privately owned business that manages financial services and asset management for an affluent family, intending to build and distribute wealth successfully through generations.

Many are often confused as to how do family offices invest. The sole purpose of a family office is to manage investments to sustain long-term prosperity and wealth. Investment by family offices can be either in variable income-generating assets or real estate.

family offices investment in real estate
Family Office investment in real estate

In the current times of extreme market volatility, real estate investment for family offices has proven to be a boon. Family offices should increase their investments in stable assets such as real estate, to ensure sustained growth over the long-term. Given the comparatively low association with the capital markets, investment in real estate for family offices is ideally. Suitable for diversifying their equity, debt, and other alternatives portfolios.

Wealthy families often have an objective to preserve value rather than to aim for appealing returns. Hence, family offices have a crucial goal to safeguard a sound legacy for their client’s future generations. Real estate investment, in such a scenario, helps family offices achieve the desired preservation of value.

Both HNIs and family offices have a common desire to separate certain assets from their main business line and safeguard them to build a long-term value-appreciating asset. Real estate investment, in this case, is the right path to venture on, for both HNIs and family offices, to create sustained growth.

HNIs and family offices need to formulate strong operations and strategies for indirect or direct investment in real estate. Formulating a definite plan is extremely important since it will take numerous aspects under consideration, such as diversification, returns, risk, and control.

Investors should be careful while opting for indirect real estate investment, as it gives limited flexibility, in the event of changes investor preferences or fund strategies. Direct investment in real investment offers better control, and investors can decide for themselves. In any case, conducting thorough research is a must and can help in generating sustained returns over time.

How income-generating commercial real estate is an investment asset class?

commercial real estate

The commercial real estate market in India is an umbrella term for real property, which is utilized to generate profits for the owner. Commercial real estate examples include warehouse, apartment buildings, malls, hotels, medical centres, industrial property, and office building. Unlike residential real estate employed for personal use by the owner, commercial real estate is employed to generate cash flow. Commercial real estate investment in India has historically awarded thousands of investors for reaping attractive returns, as an alternative asset. However, many investments are still unknown to the workings of commercial real estate and its benefits as an investment vehicle.

commercial property illustration
Commercial Properties

The commercial real investment market in India, as an alternative asset class, also gives an investor the ability to diversify his or her portfolio. A smart and educated investment in the commercial real estate can provide a path for an investor to diversify their portfolio by including, broader and local economies. This is possible in the case of commercial real estate investment in India since a specific commercial real estate asset’s success is related to local market dynamics.

Some of the upcoming markets for considering commercial estate as an investment asset, are Delhi NCR, Mumbai, and Bengaluru. Commercial real estate investment Delhi NCR is gaining prominence and is expected to yield attractive risk-adjusted returns for investors over the next few years. Commercial real estate investment Delhi NCR, Mumbai, and Bengaluru are expected to rise over the next decade. Small investors are gradually becoming aware of the benefits of investing in commercial property and are considering commercial estate as an investment asset. A steady approach with a thorough study of the market can assist in reaping attractive returns in the near future.

Return on investment in commercial real estate
Increasing returns on investment in commercial real estate

Factors to consider while considering  real estate as an investment

There are numerous factors that need to be studied while considering real estate as an investment. Some of these factors are as follows:

●      The location of the property and its survey

When it comes to commercial real estate investment in India, it is all about the place. Several considerations come into play when it comes to the purchasing of commercial lands, such as infrastructure projects currently under construction in the region, distance to neighbouring towns, public transport, and road accessibility.

●      Evaluating the financial condition of the tenants

 There are a variety of considerations one should pay attention to when investing in a building with existing tenants. The tenant’s revenues on a weekly, monthly, or annual basis can prove as a key parameter, as they provide a more reliable reflection of the investment’s profitability.

●      Documentation

 An overall document review is essential because it will assist in getting a better understanding of the legal work the investor should take care of. This includes papers (in the case of resale property) related to the transfer of ownership and mortgage.

●      Market Dynamics

 Studying the dynamics of the property form that one is choosing is essential. When looking at investing in retail, consideration should be given to the short-term and long-term effects of customer demand and e-commerce on a tenant. Looking at workplaces, one should understand how developments such as telecommuting and co-working might have an effect on office space demand. The investment in commercial real estate property should be ideally carried out in an environment of low interest rates since this would support the demand for both borrowing and property.

commercial office space transactions in India
Commercial office space transactions in India in 1st half of 2019
investment in real estate sector in India stats
Real Estate Sector expected growth in India

Pros of commercial real estate investment in India

  • Potential of generating high income
  •  Higher equity potential – increase in cash flow via leveraging
  • A high number of tenants – low risk
  • Advantage of security
  • High appreciation value

Why commercial real estate investment is better than the residential real estate investment?

The value of an investment in commercial property is easy to increase.

The market value of a residential property is measured by means of the average cost of similar properties in the vicinity. This study can be based on primary characteristics such as the number of bathrooms, bedrooms, and so on and so forth. So, to sum it up, a two-bathroom and two-bedroom house with state of the art appliances, has the same value as that of a two-bathroom and two-bedroom property with basic amenities, in the same block.

A more precise approach is used to value commercial real estate. The local factor surely takes into consideration. However, the revenue generated by the property forms the basis of its market value. So, an inexpensive strategic improvement of the property, which can assist in increasing the revenue generated by the property, can have a massive impact on the resale value of the property.

  • Commercial properties often come with longer lease terms
    As compared to residential leases, commercial leases are much longer. Commercial real estate lease is usually for a minimum of three years, and leases for 5 to 10 years are not unheard of. Whereas the residential leased are typically for 12 months or one year. Some of the benefits of having a long lease include:

     

    • Lower turnover costs
    • Lower vacancy rates
    • High assurance of receiving a reliable cash flow

However, there can be a downside to long-term leases, if in case a property owner is not pleased with a tenant. The owner, in this case, can ask the tenant to leave by choosing not to renew a short-term lease.

commercial vs residential real estate
Commercial Real Estate vs Residential Real Estate

Unlike publicly-traded securities and the involved volatility of public investments, direct investment in commercial real estate can provide steady cash flow in the form of rental income. Having real estate in one’s investment portfolio can have advantages such as portfolio diversification, long-term appreciation, and net cash flow.

Commercial real estate is often considered to be a scarce resource and is a hard asset. It has an intrinsic value associated with it, which appreciates over a specific span of time. The cost associated with commercial real estate has caused it to be limited to institutional investors. However, with the advent of the technology age of the 21st century, there are numerous platforms that have made this investment easier for small investors as well. It is, however, advised to read the policy document carefully before making a decision to invest, so as to understand the benefits of your investment thoroughly.

How NRI can manage their property back in India?

So, you are an NRI or have an NRI in your family and having a property in India or planning to buy one. Are you worried how will you be able to manage this long-distance relationship with your property? Who will take manage of your property while you are busy with your work in a foreign land?

All these queries are genuine, to manage a property while living abroad is not an easy task. NRIs often face this problem which leads to undue stress. The solution this is, hire a property management company back in India such as Propcare which is a division of MyFollo, real estate company based in Gurgaon which will take care of all your needs regarding your property.

What is Property Management?

According to Wikipedia, Property management is the operation, control, maintenance, and oversight of real estate and physical property. This can include residential, commercial, and land real estate.

Today, there are specialized agencies, which can not only take care of your property but also offer several value-added services like looking for tenants to generate passive income in the form of rent for you. These organizations are known as Property Management Companies.

Benefits of NRI Property Management Services

Owning a property in India, when you are living abroad can be a real challenge. With so many hassles like illegal encroachments, keeping the property clean, paying the taxes on time and maintaining the property is not as easy as it seems. In this case, you plan to rent the property then, finding a credible tenant, verifying the tenant, collecting the rent regularly and keeping a check on the property can be really tricky.

Well, that’s precisely why you need property management services. Once you have identified a good company, you just need to hand over the keys to them and they will take over all house management tasks on your behalf and execute it for you.

While services offered may vary from company to company, most companies offer these basic services:

Regular Check-up of the Property

If your property is lying vacant, the company will do a regular visit to ensure that the property is in fine shape and there is nothing untoward happening in and around your property. And if your property is under rent, the companies ensure that the tenant is following the terms of the rent agreement.

property inspections
Property Checks

Finding Verified Tenants

If you want to rent out your property, they can help you find good tenants. And that too, after proper verification so that there are no troubles later. The agencies do proper police verification to ensure that prospective tenants have a clean record.

tenancy management in india
Choosing Credible Tenants

Timely Collection of Rent

We are sure you don’t like calling your tenants every month to remind them to pay rent. When you avail of Property Management Services, you can just sit back, relax, and watch the amount deposited every month. It also includes ensuring that the tenant is paying the electricity, water bills on time.

Interiors, Repairs, & Maintenance

Planning to lease out your property to some organisation and worried about how to get the interiors done with good quality at best prices. Or worried about who will take care of the repair and maintenance later. Well, a professional property management company, will get all these things done in quick time and at only the genuine cost.

Utility Bill Payments and Coordination with Agencies

When you have leased out the property, the company ensures that the utility bill payments are made on time. Also, the company coordinates all your liabilities like the property tax, khata etc.

Need for Property Management Company for an NRI

Still thinking, if you need to hire a Property Management Company to manage your property? Well, here is a check-list to know whether you should consider hiring a property management company:

Located far away from your property

Being an NRI, means you are far away from your property to be able to manage it on your own. You may have some friend or relative or some liaison to manage it, but they also have their own things to manage. So, your property suffers. Now, it’s time to take matters into your own hands and hire a property management company!

Lack of time to have a check on your property

With today’s demanding job, family, kids, you may not get sufficient time to check on your property. Same may be the case with your mediator. You may have to remind them again and again to check the property.

But, a property management company does not need any reminder to do these jobs. For any professional company, it’s a part of their duty to do an inspection, prepare reports and keep you posted.

Owning multiple properties

As if one property was not a sufficient headache, multiple properties mean a huge headache. No doubt, you get a high rental income, but at the cost of peace of mind. But, for a professional property management company, it’s their daily routine. They have a team of experts who handle each of your properties and give you report property wise.

Help with renting your property

So, you want to rent out your property. But where and how will you advertise your property? How will you show your property to your tenants? On what criteria you will decide the right rent for your property? How will you get the police verification done of tenants? Well, if you are also worried about these issues, you definitely need to hire a property management company, who will do all this for you, on your behalf.

house renting illustration
Renting house for passive income

Management of tenants

Do you want someone to ensure that the rent is collected on time? or want to ensure that the tenant is abiding by the agreement? Do you want someone to take care of regular maintenance and repairs? Do you want to ensure the house vacates, when you want it, without any problem? If your answer to any of these questions is Yes, then you do need to hire a company giving Propcare Services.

Not up to date with the current laws

In this ever-changing world, laws, regulations are also bound to change. And it may not be easy for you to be updated with everything. We are sure; you don’t want to be on the wrong side of the legal system. So, hiring a property management company helps you to handle all your tax and other legal issues related to the property smoothly.

Need of a reliable partner to maximize your return

Property rentals, or selling rates, differ from city to city, locality to locality and even location to location. So, if you charge less, you may lose out on a good profit, while charging high may drive away potential tenants or buyers. Property Management Companies survey your property, the surroundings, and the average rent/sale price for the area and counsel you so that you can maximize your return from the property.

maximize return in real estate
Maximize ROI by Rental Income

Value-added Services

Some companies also provide value-added services like doing interior work.

How to Choose the Right Property Management Company?

So, you agree you want to hire a property management company. Now comes another issue, how to select the right property management company. As your property is very dear to you, make sure you put it in the right hands.

Introducing Propcare

A leading NRI Property Management Company in India. Propcare is a one-stop outsource powerhouse for all areas as it relates to efficient online interior service. Propcare not only provides Property Management Services for NRIs but also offers value-added services like Interiors Services for Rentals.

Main services offered by Propcare:

  • Marketing and Lettings (the action of renting out a property)
  • Rent collection & Deposit
  • Possession Assistance
  • Keys Management
  • Property Maintenance
  • Tenancy Management
  • Interiors for Rentals

We at Propcare assist you in designing and installing wardrobes, Wooden Cabinets, Vanities, Modular Kitchen, Sanitary Fitting, Electrical Fittings, False Ceiling.

Why choose PropCare for interior services?

  • Easy payment plan
  • Best quality with competitive pricing
  • Timely updating with progress pictures regularly
  • Regular Operations manager visits to the site
  • Showcasing apartment for rentals
  • Project facility coordination
  • Safety at all times

Interior Design Ideas for Rental Property

2020’s Best Interior Design Ideas for Rental Homes to Try Out

It’s 2020 and you are planning to give a new look to your beloved house. Got bored of that old false ceiling of your drawing room, or those outdated door handles? Renovating the house is essential to maintaining its charm. You don’t want to see that broken tile for the rest of your life when you get home after work. Interior designing can be a lot of fun to experiment with. You want to redesign your house interiors in two scenarios:

  1. You want to feel the freshness of your house again
  2. You want your guests or potential tenants to be intrigued by your beautiful residence

And we know that you are here exactly to read about the latter. In the blog, we will talk about the top 15 trending ideas for interior designs in India.

1. Paint it blue, baby!

Yes, blue is nowadays so confident a color that it’s certainly going to be the king choice in 2020! Don’t believe us? Sure. How about Pantone Color of the Year 2020 – the most trusted platform when it comes to product-purchasing decisions? This year, these guys have chosen the ‘classic blue’. The color will not only exude deep resonance but also increase the perspective of your house. A lot of interior design services trust the annual choice of Pantone, so you will not be disappointed for putting in so much faith in the bold blue too!

2. Go for traditional prints. Yes, again!

Look, we are no experts to tell how you will renovate your house. But what we are doing here is to merely inform you what’s going to trend predictably! Traditional prints like floral and chevron have reportedly come back, and we have included this to our list because we like them. Get on with your crazy interior design instincts as you can match these with contemporary pieces to bring back the old charm. Remember: vintage never obsoletes!

3. Or just stick to the neutrals!

2020 eagerly looks forward to neutral settings for your space. If you are the one that doesn’t like it loud and overpowering, you can choose neutrals with serene shades. And no – please don’t demean neutrals by calling them plain. If you are in love with whites that exude either warm or cool undertones, you very well understand that the haters are less informed. Try with shades of gray or beige. Warm to the front, and cool to the back!

4. Make your space tech-savvy!

For how freaking long will you be turning off switches in your house manually? Necessity is the mother of invention, so it’s time now to adapt to smart power connection in your house. From app-controlled lights, fans and ACs to gesture-controlled curtains, redesign your home décor not just in style but ‘smart style’.

5. Not just clean but a clear kitchen!
You may call up an interior design service and tell them to redesign your kitchen the clutter-free way. But wait! That trend has been up scaled. You will now see them organize your kitchen like nothing’s there for the naked eye! Yes, concealed kitchen settings are going to rule 2020. Nothing on the slab, nothing visible from the modular cabinets. You can even say goodbye to the sink and taps when not in use as they disappear into flush cabinets.

6. Get back to Crittall-style windows and doors!

If minimalism is your thing, you can get the good old steel-framed doors and windows, just the Crittall way. The interesting thing about the 2020 interior designing is that now this thing is going viral for making extensions, shower screens and room partitions. You will see in no time how well your space can dwell into a graphic look.

7. Experiment with metallic combinations!

We have predicted that metallic themes are going to be the game in 2020’s interior designing ideas. Bring in gold, brass or copper and play around creatively in your house. Metal décor can exude a more premium and regal feel to your living room and will garner praises from guests and cash from tenants!

8. Get sculptural furniture on board!

Like traditional prints, curved sofas too are going to be a major comeback in 2020 interior designs in India. High-back velvet armchairs with slim legs can enhance the texture of your space.

9. The unbeatable scallops!

If you go with the 5th point above, do not forget to try scalloped patterns on your modular cabinets. You can create a striking contrast of scallop and chevron too.

10. The spectacular false ceilings!

2020 brings you a plethora of false ceiling designs not just with plaster but wood too.

11. Decoration for empty walls!

Got that bland, unutilized area in your house? 2020 blesses us with the trend of oversized wall décor when you don’t want to put shelves and cabinets on the wall but also willing to keep it busy and interesting.

12. Bring the nature inside!

Research shows that in India, the indoor air is ten times more polluted than the outdoor air. Which is why, the new decade will witness vertical gardening and indoor plantations to keep the indoors fresh.

13. Also, enhance the outdoors!

So when you have brought in the flora and fauna inside, why not introduce your verandah and terrace to them? The future is terrace gardening with patio furniture so that you sip your cup of coffee beside nature and enjoy the morning breeze before leaving for work.

14. Go for the abstracts!

Art is quite subjective, so why not make it interesting for your guests or tenants? Have abstract art sculpted or painted on your walls, or get artistic and antique décors that compel the onlooker to make meaning out of them. Shows class!

15. Above all, be creative!
So the last point that we wanted to share with you is that you don’t have to feel too much worked up or stressed out while deciding your interior designs.

The key is to decide on what you find should be the best for your house. PropCare is an interior design service that has transformed tens of thousands of houses by installing modern décor. From modular kitchens to premium and plush sanitary fittings, they have got you covered. Contact them at +91-9821391006.

What do you get from an interior design service ?

If you have got the flair and sense of art but lack time because your boss at office loves you so much, you can outsource the task of house renovation to an interior designer. Here’s what you will get from an interior design service:

  1. Primarily, you will save a lot of time
  2. Designing is not merely decoration
  3. Of course you may have the flair of designing, but these guys are seasoned experts
  4. Designers have their way with many major material suppliers
  5. They are always well-updated with latest trends

Call PropCare at +91-9821391006 now to get the best curated and affordable rates for interior designing of your rental property.

Problems faced by NRI’s while investing in India

“A person without correct knowledge of his past or history or origin is like a tree without roots. It can’t grow”

No matter where we come from or how horrific the past was, we mustn’t forget it for the simple reason that it brought us where we stand today. When you think of an NRI, you think about Indians with a good command over English carrying aam ka achaar or pickle in their luggage while travelling through aeroplanes.

That’s the kind of image that bollywood films have set in our minds.

The reason is that we Indians love our country. We might complain about how we’re cheap and how power cuts are still common in our country and how street food has insects drooling over them but at the end of the day, we know how these power cuts have given us so many memories like going for a late night ice cream and how the same unhygienic street food is our first stop when we go out.

So when one of us goes abroad, we miss our motherland. To cater to this need that we have to connect with our homeland, NRI’s often buy property in India for the simple reason that they don’t have to waste money on hotels when they come back to visit or sometimes, for investment purposes as well.

Unfortunately in our country, what starts as love for the country ends with fraud and we end up despising it.

Maintenance of that property is a headache and a responsibility that comes with buying property. But NRI’s face several numbers of problems when they invest in our India.

Property Management Services in delhi ncr for nris
Property Management Services by MyFollo

Lack of clarity of legal rights

All real estate dealings by NRIs are controlled by the Foreign Exchange Management Act also known as FEMA. The rules clearly state that NRIs can only purchase residential or commercial properties. Any agricultural land including farmland or any kind of plantation property cannot be purchased by a NRI or person of Indian origin.

Yet, only because NRI’s are unaware of this, end up buying agricultural land through fraudulent practices of real estate agents.

Land Grabbers/Property Gatecrashers

NRI’s often end up outsourcing property management to local agents or family members or acquaintances which turns out to be a very poor decision.

Family members often take over illegal possession of the property and local agents often resell the property and disappear with the money earned.

Builders with dubious records

Builders or real estate agents in India often don’t have good work ethic. You could try your look but in 9/10 cases, you will end up regretting not screening the builder/real estate agent. They often make NRI’s sign false illegal documents and take over possession of the property.

Indian Law System

After all these problems, even if an NRI wishes to file a case against the guilty party, a civil case like this will end up taking years to settle. At the end, the parties will have to settle to just end the trail and the NRI will never get the good end of the bargain.

Indian law is slow and sloppy which is why 90% NRI’s would prefer bearing losses than filing a case.

Maintenance and management

Relative to all the other problems, this is the simplest of all. Managing a property so far is difficult. Especially in a country like India, where thefts and vandalism is so common, it’s even more difficult.

Propcare Services for NRIs in Delhi NCR
Propcare Services for NRIs in Delhi NCR

This is why NRI’s often hesitate to invest in Indian real estate.

At the end of the day, there are a lot of solutions. One could screen real estate agents properly and one could hire a top-notch lawyer to fight the case. But at the end of the day, nobody likes a headache.

Propcare, turns out to be a one-stop destination for all NRI’s as it not only guides you from the minute you buy the house, it also leads the way to every time you visit and need your keys.

Why selling/leasing a house is like an arranged marriage?

 Focused and rightful way of marketing of my property:

Buying a house is like arranged married, only a little less temporary and it costs more. What does one do when he/she wants to get married? They look for a match. That’s the obvious answer but it’s not the first step on the staircase.

When it comes to arranging a marriage, people are sold like a product. So first, we develop the product.  We lose weight, we get hair smoothening worth of Rs.6000, we update our wardrobe and we make sure that we meet a certain standard.

The same way, when sell/leasing a house, we make sure it meets a certain livable condition. We dress our house to sell/lease for more. We paint the walls, check the electrical equipment, replace cracked floor tiles, fix leaky taps, polish the kitchen cabinets, and fix the parking space.

This is the most basic to-do list one must check before he/she sells/leases the house. Once we’ve developed our product, what is the next step?

We let the word out.

In arrange marriage, your mother will let your whole family and her social circle know that you’re in the hunt for a husband/wife.

Sooner or later, the phone starts ringing and relatives you don’t even remember the names of will start suggesting you the person you plan on spending your life with.

Similarly, when to sell/leasing a property, you let everybody know that you’re selling/leasing by making calls to friends/family and acquaintances that might strike you as potential buyers. In case this doesn’t work, you hire a matchmaker. You trust somebody who you’re paying to find the person you’re going to spend your life with.

You tell the matchmaker your type, your needs and he/she begins the hunt for you while you sit at home eating popcorn and waiting for the phone to ring. Similarly, in the real estate world, you hire a real estate agent and you tell him how much you wish to sell/lease your house for, and then you wait.

If that doesn’t work as well, you up to your game another level. You log on to an online portal like shaadi.com and you get yourself registered and you upload the best profile picture you’ve ever had. Hell, you might even spend money to get a photoshoot, especially for that online portal.

Similarly, in the real estate world, you log on to magicbricks.com or 99acres.com and you list your house, maybe upload a professionally shot video with a view of your house and fill in the details and then, you wait for someone to make an offer.

These three are the first four steps for marketing your property which you must know if you intend to sell/lease it. 99%, one of these will get you a reasonable offer or a suitable husband/wife for that matter but if you think about it, it’s TOO much effort. Moreover, how do you trust another person who you don’t even know to sell/lease your house with the same passion that you would?

How do you expect a computer-based program to understand what type of people you want to sell/lease your house to?

In case you do it alone, are you ready to do the following things?

  1. 1.      Keep An Eye On The Competition.
  2. 2.      Make Yourself Easy to Contact.
  3. 3.      Create a Killer Business Card.
  4. 4.      Make Use of Local Images.

Create a Virtual Tour.

It’s TOO MUCH work and one might not have the patience or the skill to do all of that, which is exactly what makes sell/leasing a house difficult.

While I don’t have any solution to matchmaking, in the world of real estate, there’s a ONE STOP outsource to all your problems.

MyFollo is the solution to all of these problems. Right from grooming your house, to screening your buyer, we do it all with proper management and efficiency and at reasonable prices. Give it a try and you will realize how easy sell/leasing a house can actually be.

How to estimate and evaluate property?

 

EVALUATION OF PROPERTY is the first and the most important step of Real Estate investment because of one SIMPLE reason.

If one doesn’t know how much a property is worth, one can’t buy/sell/rent it.

They will probably end up paying more or less for the property and both of those options have adverse effects on the economy. Apart from those, who don’t know HOW to estimate a property’s value, even those who do face a variety of problems which aren’t easy to solve.

There are three common ways of getting the right evaluation of property.

  1. Self Estimation
  2. Real Estate Agents
  3. Online Real Estate Portal

Each way has its own pros and cons, which you might want to keep in mind if you’re thinking about which road to take.

 1. Self Estimation:

Most people who don’t want to spend any money on brokerage or want to sell their property as quickly as possible opt for this option.

In this the seller first makes an assumption that his property has an area of xx sqm.

Then, he calculates the selling rate (INR/sqm) as Price/Area for each property.

The selling rates of all properties should be roughly similar with a variation of maximum 10%.

Then, an average of all the selling rates is multiplied by xx to arrive at the valuation of the property.

This is obviously not the most accurate method as the calculated price is just an average rather than being an exact estimation. Moreover, a lot of factors that affect the sale or purchases of a property are not taken into consideration in this method. This method is more like a rough draft which all investors make BEFORE choosing any other.

 

  1. Real Estate Agents

Sellers/buyers/investors often hire these agents or real estate agencies which sell their property for them in exchange of a fee called commission. More than 90% of real estate transactions are carried out with this method as it often appears to be the easy way out. Your real estate will right away give you an evaluation of your property and truth be told, it will be 25% more accurate than the estimation you made yourself. Yet, this option is not the most ideal option. Here is why you should hire a real estate agent and why you should NOT.

Advantages Disadvantages
The avoidance of a lot of paperwork and red tape Having to pay commissions
The saving of a lot of time and energy Being just one of many clients
Not having to coordinate repair and upgrading efforts on your own  Having at least one “middle man’’
Having an expert in your local real estate market on your side  Being at the mercy of someone else’s timeline
Common fraudulent practices regarding the selling price to get earn more commission
Listings will be limited to only that of the agent/agency
Lesser control of the transaction

As you can see when put on a weighing scale, the right side weighs more.

The agent/agency will always treat your property like another file in their office and will never be even half as motivated as the one who hires them. A lot of transactions that go through these agents/agencies do not take place in good faith.

Your agent/agency will give you a value with which they can maximize their profit. If that means giving you a higher value, they won’t hesitate.

                                             

  1. Online Real Estate Portals

Online portals like Magicbricks, CommonFloor, 99acres, Indiaproperty are some of the most popular ones when it comes to real estate.

If you visit any of these websites, you will probably find a tool called a Property Evaluation Calculator which will help you evaluate your property sitting at home just by entering a few details like sqm, BHK, locality name, etc.

It sure sounds tempting but again, it has its flaws too.

If you run a group of properties through all five of these portals, you’re likely to find that each online valuation site will give you a different – sometimes a very different – estimate for the same property.  They may not all be using the same comps and each is probably using a different proprietary algorithm that works better with some data sets than with others.  So the best advice is that one should not expect to type an address into any of these sites and get back a value that’s carved on a stone tablet.

What you can expect is that, at least with most of these sites, you will get back a good deal of data that you can combine with your own judgment to develop a reasonable idea of a property’s value.

To sum it up, online services, while great sources of information, often strive to offer quick and easy answers to complicated questions. And determining a home’s value is definitely a multilayered problem.

Thus, it is safe to say that Estimation of property is not an easy job. It requires a proper mix of all factors to get the most accurate estimation possible.

Nevertheless, you should definitely give www.myfollo.com a try as their calculator includes a variety of factors that most portals fail to consider. Their estimations are almost accurate and you in this world of real estate where one agency is breathing down on the next of the other, www.myfollo.com proves to be breath of fresh air.

Rental Property Management Tips

There is a new wave of real estate investors, who are acquiring real estate for the purpose of not staying but to secure an additional income. But being a landlord is not as easy as it sounds. There will be numerous instances where one would have to deal with unruly tenants, following up for one’s own money, repairs and maintenance issues, like that of non-working toilet or emergencies that one has to be prepared for. Below are top 5 tips that one should keep in mind while getting into an agreement for Rental Property Management:

Provide secure premises: We are living in uncertain times with random incidents making uncomfortable headlines. One must be prepared to let out a reasonably secure premise and work towards making it comfortable for future tenants as one would do for their own use. Installation of security cameras, proper lighting, secure grills and fences are the order for the day. A study of the neighbourhood as to how others residents have equipped themselves are good pointers.

Screen tenants: While one is ready to provide comforts to future tenants, it is also expected that one would get good, hassle free tenants for the property. Often we let out properties on face value but it is advisable to run background checks or speak to the prospect tenant references or previous landlords before giving one’s property on rent.

Documentation: All communications with the tenants should be documented including responsibilities and timelines. A good rental lease agreement comes handy which should signed and registered at the local authorities, in case of a dispute arising at a later time. One can get a good lawyer to draft an agreement based on mutually decided actionable and responsibilities.

Handling deposits: A system should be established between the landlord and the tenant for receiving deposits by way of cash or bank deposits or a mix of both. All transactions should be documented and receipts of deposits shared with the tenants timely thereby establishing a fair play.

Make repairs: Before a property is let out, the condition of the property should be evaluated, photographed, and noted so the chances of disputes arising at a later date are less. Also in case the property requires repairs because of natural reasons and that of wear and tear, the landlord should take responsibility and get the service team in place required to correct the repairs, timely. If not, these issues can snowball into larger distress.

Though landlords are expected to be around 24*7 but it is not practical. With advancement of technology, there are real estate management companies like PropCare now, who can take the burden of your shoulders. You can write to us contact@myfollo.com or call us at +91-9821391006 to know more about our services.

Top 5 neighborhoods to invest

In the last decade Gurgaon has emerged as a profitable location in the vicinity of the national capital as an investment opportunity. With multinationals taking up much of office and retail space, the employees are also making a beeline to take up places on affordable rent if not to buy. We at MyFollo.com, bring to you some of the hottest neighbourhoods in Gurgaon and Delhi where one should think of investing.

Sohna Road: Just a few years ago, Sohna Road was a sleepy neighbourhood, but off late, it is fast becoming a prime residential property. Besides being connected with the NH8, it is in the vicinity of many townships that are emerging like Bhiwadi and Manesar. Sohna Road has some excellent residential apartments, villas, plots besides malls and hospitals which are already operational.

Golf Course Extension: This area is another location which investors are making a beeline for. Golf Course Extension is just 30 minutes away from the international airport and well connected with the NH8, south Delhi, Gurgaon-Faridabad road and Sohna Road. If you are looking to mingle with the elite then a property here should be your destination. Well equipped with civic amenities, this place is a buyers dream.

MG Road: With the plush malls and residences, MG Road is an evergreen location to invest. Though deemed expensive, MG Road has fetched high returns on commercial properties historically. If you have an appetite for high returns, then one must consider MG Road.

DLF Phase 1: One has seen a tremendous growth in the infrastructural developments in Gurgaon DLF City and DLF Phase 1 has emerged as spaces with high growth prospects. It is wise to invest in under construction properties from a purely investment purposes and divest it at a peak.

South Delhi: There is a certain charm of living in south Delhi in a posh locality. Always considered as prime locations the trio of Greater Kailash, Vasant Kunj and Vasant Vihar have options of bungalows, apartments and commercial properties. The high rate of returns clubbed with the benefits of being in the toniest parts of the first city, New Delhi, these are few locations which will not be affected by market fluctuations.

“MyFollo” is an online real estate ecosystem bringing in change in the way online advisory and transactions are executed. Write to us at contact@myfollo.com  to know how we can help you.