In its bid to put a tab over unfair practices in the realty sector of the country, the Competition Commission of India is expected to set to finalise its order on alleged unfair business practices in the realty sector.

According to media reports, the CCI, which has already issued notices to a number of real estate entities with regard to the cases, has completed the personal hearings of these cases and hence it would soon be coming out with its order to address this issue.

Some of the unfair practices coming under the scanner of CCI include, alleged cartelisation and anti-competitive trade practices being done in the real estate segment.

As the CCI is seriously looking into the matter, it is likely to create a healthy atmosphere for the overall growth of real estate segment and most importantly also reinstall confidence among the end consumers looking forward to investing their hard earned money in real the real estate segment.

As part of the probe being undertaken by the CCI, there are a number of developers which are being probed for injecting one-sided clauses in favor of their companies and against the interest of end customers.

If and when CCI comes out with its order, it will create a big example in front of the real estate segment and also press for much needed reforms that can make this sector even more lucrative for the end customers.

In a bid to provide low cost housing for the poor strata of the society, the Chief Minister of Odisha has announced plans to launch Shelter Security Mission in the state.

As part of this program, the government would be spending between Rs 15,000 to 20,000 crore and looking forward to provide low-cost affordable housing for the poor in both rural and urban areas of the state.

In addition to providing the housing for the poor, the Odisha government has also proposed to initiate a low cost affordable housing scheme for urban poor, specifically those who are living in the slums.

The Chief Minister of the state has also said that the state government in Odisha would work towards converting all the ‘kutcha’ houses in the state of Odisha to ‘pucca’ houses in the coming five years time as part of this mission.

The government of the state has also ensured that there availability of proper funds to fuel this level of mobilisation of resources, manpower and innovative implementation strategy and execution of this project.

However, the government has also pointed out there will be some challenges in front of the execution of this projects and in order to overcome this and facilitate speedy completion of the project, the government has decided to provide Rs 10,000 cash incentive for houses that will be completed within the four months from the date of issue of work order and release of first installment. This should drive better and timely delivery of the houses for this project.

For more information on such important announcements and initiatives, please log on to our website.

• Property value appreciation
• cash flows
• income tax advantage
• loan principal pay down

It’s imperative to note that just for the reason that there are numerous mechanisms of returns; it does not imply you will always make money on realty investments. Various people go through terrible losses due to inadequate research and study, as well as because of risk matters that have not been mitigated. Do your homework before you invest in real estate.

Property value appreciation

Maximum people purchase assets with the conviction that they will gain value and as a property investor you will definitely benefit,  get wealthier as evident from the former six years, it is pretty much expected though not always does realty market take the upswing. But, over lengthy periods of time, approximately 15 to 25 years, real estate appears to do well and has made much fortune for many long-standing holders.

Be mindful, although, that appreciation does not reimburse the bills. It is recommended to invest established on cash flows, the subsequent noted element of returns.

True cash flow

Most real estate investors do not appreciate how to chalk out their real estate agreement. What this actually means is placing conventional estimations of rents and outflows down on paper and ensuring that the rentals, minus all the costs, leave the landlord some cash in his pocket. We term these “cash flow positive” characteristics.

Purchasing properties with factual positive cash flow is the finest way to guarantee that your speculation will add to your fortune. Far too many consumers buy negative cash flow real estate and take surplus monies from their bank accounts every month, for ages, to cover the shortfall. This is definitely no way to invest your capital.

Income tax advantages

There are noteworthy income tax advantages from keeping rental properties. “Returns” means that as an outcome of your title, you pay not as much of taxes than you would have in case you did not own the property. Regrettably, a small number of investors really comprehend how this works.

Loan principal pay down

If you have a repaying mortgage – which happen mostly these days — you may realize some profit. Every monthly mortgage fee pays the accumulated interest, and above a little bit of the unpaid principal of the loan amount. That principal is a pure investment profit and it can actually super-size your returns. Though, principal pay down does not deliver cash flow, so it can’t benefit you pay the bills if you want money for plumbing, electrical work or a handyman.

Though all the investment returns possibly will help your long-standing wealth, the cash flow constituent is most essential. Cash makes you feel nice, feels good in your hands, it pays the bills and, most notably, it collects in your bank account and helps you earn interest. If your investment doesn’t generate cash, you would not be able to pay the mortgage, you’ll probably lose the property and you’ll never get the returns you’d expected for.

When people invest in real estate, the primary motive is to make money and increase the rate of their growth. But as an investor you need to keep in mind a lot of variables such as taxes you pay, the costs of owning the real estate investments, payment towards the utilities and above all the insurance of your real estate.

Only after knowing all these details, will you be able to derive the best information. We are presenting some of the best practices that can guide you towards better investment opportunities in real estate.

3 Ways of Winning with Real Estate

When you invest in real estate, there are a number of ways you can win and increase your growth:

•Appreciation of Real Estate: Appreciation happens when your property becomes more valuable due to a change in the real estate market. This is regarded as of the primary ways to enhance your valuation. Usually, if there is rapid development around your property such as establishment of metro projects, construction of shopping malls, schools or big shopping complexes, then there is big chance that your real estate investment will witness an increase in the evaluation

•Income from Real Estate: This happens when you rent out your real estate. As a result, you will get a regular income from your real estate investments. This type of income can easily be achieved when you invest in an apartment, or an office space. There are people who are willing to pay handsome money for storage purposes as well. and hence, there is big scope for people to rent out their properties and receive a regular and uninterrupted income from their investments. And the best part for this kind of investment is that, the property valuation always increases while you receive a monthly rental income.

•Income from Real Estate Services: This kind of income can be generated by “professionals” working in the real estate segment such as real estate brokers, who can make money by earning commissions from buyers or sellers of a property at the time of completion of the deal.

For more in-depth information on such issues and topics, please visit our website.

There is no doubt about the fact that the proposed Real Estate Investment Trusts (REITs) could become a big agent of change for the realty sector.

However, as there is little clarity on taxation and regulatory issues related with the subject, it might act as a dampener in terms of not attracting enough foreign investments in the commercial space, this has been revealed in a recent report.

As per the plan by the government, REITs are expected to easy up the process to funnel funds from moderate investment agencies such as insurance and pension funds, but on the other hand, there are a number of taxation and regulatory issues that could act as roadblocks in its adoption. This was revealed in a report titled ‘Destination India – Are we ready for REITs?’ unveiled by global accounting firm KPMG in association with Indian Private Equity and Venture Capital Association.

This report has estimated that India has a capacity for about 350 million square feet of ‘Grade A’ office space today, the valuation of which is about $65 billion to $70 billion or Rs. 4.2 lakh crore.

Out of this, about 100 million square feet is estimated to be eligible for REITs in the next three years, valued at about $20 billion (Rs. 1.2 lakh crore). This will translate into major development and growth of this sector in India.

As a matter of fact, most of India’s ‘Category A’ property is hovering around in seven big metro cities, namely Delhi-NCR, which includes Gurgaon and Noida, in addition to Mumbai, Bengaluru, Chennai, Pune, Kolkata and Hyderabad. This is where there is most of the real estate growth today.

However, India’s real estate has to prepare for a better tomorrow in terms of creating that process driven foundation on which future growth can be held upon