Information in a sound investment

Residential property can fetch you regular returns as long as you put your money in the right project

For all those who are living in a company accommodation and feel concerned about where they will stay post-retirement, investing in property is by far the best way to provide for the future. It's all about by building an asset by choosing the right type of project at a location, which is easy to lease out and will fetch you regular returns.
Dilawar Nensey, joint managing director, Royal Palms India explains, "Over a period of time, it came to our notice that about 40 per cent of bookings at our Royal Palms Estate project were because of the return-based factor. We realised that our ability to deliver 7 to 8% returns was higher than what people get on bank deposits. Our condos are priced between Rs. 10 to 12 lakh, so even retail investors can put their money in property. Today 50% of our bookings are from this segment and the higher returns are possible because the perception of a golf property is definitely high among multinationals."
Several corporates have also begun to book these condos and offer their use on weekends as an incentive or reward to the highest performers in each department. This is a trend that has been visible in recent times, with many developers facilitating the leasing process.
Vimal Shah, MD, Akruti Nirman Pvt. Ltd. and secretary, MCHI, feels that when it comes to suburban locations, Andheri east is geographically ideal. "It is a central point location for Mumbai with its extended suburbs and also at a scissor point for communicating between the central and western routes. Andheri has inherent advantages of welldeveloped infrastructure, wide roads, ample car parking spaces. Buildings with all modern amenities and large floor plate area are available," he says.
Vinod Rohira, director - marketing and sales, K. Raheja Corp, points out, "People are always ready to pay more for projects that offer better construction quality and amenities. From an investment perspective, it is important that the project is either part of an integrated township with a commercial component, or in the vicinity of a business hub. Then finding regular, long-term lessees is not a problem."
The investment potential of real estate largely depends on the commercial development in the area. If the flat purchased is close to a business district and large operating offices of companies, it will get a good return value.
The important thing to keep in mind, he feels, is that one has to not just lease it once, but several times. This is because unlike commercial properties, which have long-term leases, residential premises are normally let out for shorter periods of 11, 22 or 33 months at a time, so you ideally need to be in a high-density zone within five to six kilometres of a major commercial development area.
Proximity to modern shopping malls and multiplexes is another plus point, as they provide a boost to development in the vicinity.
Rasesh Kanakia, MD, Kanakia Group, which set up the Cine Wonder multiplex at Thane and will be shortly opening another in the vicinity of its Eternity project, feels that entertainment plays a decisive role in choosing residential accommodation.
"Retail-cum-entertainment projects like Cine Wonder give a tremendous boost to the area in terms of residential growth. Today Thane is one of the most happening residential destinations," he says.
Joint incomes are also facilitating the process to a large extent.
Boman Irani, chairman and managing director, Keystone Realtors says, "About 60 per cent of flats purchased today are in the 'husband-wife get together and take a home loan' category. This is happening to a greater extent with the economical flats rather than the high-cost ones. It's a double benefit, since it allows the couple to buy their own house at a much earlier stage in their life than they would otherwise have and also boosts sale transaction volumes."
So do your homework and book a property of your own - you can be assured of concrete returns on the investment!

Article Source: http://www.christiannotepad.com