You’re guide delhi rentals playing landlord

You're Guide Delhi Rentals Playing Landlord

It is essential that the rent should cover at least the cost of ownership ¬ the interest factor and a part of the principal amount

Jai Mavani

If you are the owner of a property and you have rented it out to tenants, you will be expected to maintain your property for them. This is because (and you can take this as a rule) a tenant does not have the time to maintain the asset himself and always expects the owner to maintain it.

If your property has housed tenants for a long time and commanded fairly competitive rates, you can expect a better valuation. The case would be vastly different for a property that sees short-term tenants and rates that spike periodically. Always remember to factor in transaction costs such as stamp duty and brokerage. This counts as good advice because these costs can be quite high. Apart from speculation, demand and supply determine the price of your property most significantly. Selecting your tenants while selecting a tenant, you must consider certain attributes. Primarily, you must ascertain that you have the right mix of positive cash flow and security for your property. The badly chosen tenant can steadily become a nightmare ¬ which might never end!

It is the class of your property that eventually attracts the type of tenant. And that’s a fact. You may find some aspirants who offer you a higher rent for your property and some that don’t quite make it to your expectations in the department. However, don’t blindly go in for the largest bundle of cash offered. Keep in mind the painful fact that the tenant eviction process in India can be excruciatingly long. You should also consider that in India you can’t always research the credit history of a potential tenant. This is mainly due to the fact that individual credit bureaus in India, as compared to foreign countries, are in nascent stages of development.

Personal references from common friends and acquaintances or third-party references are the preferred and most common form of background check. You can ask for such references from your tenants before closing the lease agreement. Before you get into an agreement with the tenant, remember to gain absolute clarity on what s/he intends to do with the property. This is important since there are situations in which your property might experience a greater degree of use, hence wear and tear, than others. For example, if the property will be used as transit accommodation or a guest house, maintenance cost will rise significantly. If your tenant mentions that his tenancy will involve the stay of many children, you can expect a similar rise in the level of wear and tear.

Try to factor in these higher maintenance costs into your rent expectation. Terms of agreement your commercial negotiations should factor in various pricing and financial issues. They should ideally include a comprehensive list of responsibilities of the lesser and the lessee.

This is what you need to consider while quoting a rent. It is essential that the rent should at least cover the cost of ownership, which means the interest factor of the EMIs if the leased property is leveraged. Additionally, it should also include a part of the principal. It should signify a fair return on investment for you. It should equate with the market levels, factoring in any escalations due to any special usage. Include the society maintenance charges into your rent quote.

Also calculate the rent with the understanding that you would be bearing the electricity and water charges. There should be an extra charge for any additional space provided. This includes parking spaces and such considerations should be declared to the tenant in advance. Make it a point to bill your property maintenance charges and security charges separately. It might be prudent to draft an exclusive agreement for these billings with a detailed disclosure of what types of maintenance will be covered. The stamp duty and registration cost must be borne by the tenant though it may be noted that in case of a lapse of such payments, the authorities concerned may charge the landlord. If there is an incremental fee or profit arising from the sub-lease of the property, the landlord is entitled to a share of such monies. There should be provisions for a security deposit and terms of repayment of such a deposit. With regards to the property usage, you should lay down some terms as to what the tenant can and cannot do on the premises. If any modifications can be made to the fittings, or if any alterations to the structure (even painting permissions) are allowed, it is the landlord’s responsibility to clarify this in advance to avoid laster misunderstandings. The timeframe of the lease and the escalation of price on rollover must also be discussed in advance. Include a mid-term exit clause in the agreement, including provisions notice periods, penalties, etc.

From an overall perspective, it is essential for you to have a laundry list of sorts that gives you a clear idea of what must be focused upon at the agreement drafting stage. Heads of agreement or a Memorandum of Understanding (MOUs) made with the help of your lawyer and broker can help in creating your checklist during the negotiation process. Your broker can inform you about current market prices and the loopholes you can use in your favour. Make sure your broker is working in your favor even if his brokerage is slightly higher. With a good broker, your negotiating position will be stronger and you can take care of almost any eventuality. Rent collection this could well be the sweetest part of the deal but if you’re cursed with a bad tenant, this could be the biggest torment. You must ensure that the tenant pays his rent regularly and as per the agreement. You can collect rent in the following ways: Cheques or pay order payments to be made for specific dates inter-bank transfers that can be made through direct debits.

The author is Executive Director KPMG Pvt. Ltd. This article was first published in Knight Frank’s guide book titled Real Investment: A real estate investment guide for India

Courtesy: HT Estates 20th Feb 2010

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Short sales success – 2010 short sale trends

Short Sales Success – 2010 Short Sale Trends

If you are a Real Estate Professional, you are hurting yourself by not pursuing short sale opportunities. If you had a previous client in trouble, would you be able to serve them? Would you just walk away and hope you find another client who isn’t in trouble? If you are looking to stay in Real Estate, you’d better take the time to know how to deal with homeowners in trouble or you will be throwing away good commission dollars and decreasing your customer base you worked so hard earning.

Many analysts have predicted that short sales will only last until 2011, but the fact is it will be much longer. With limited help provided by the government and the economy failing to create enough jobs, more and more people will lose their homes. Look at how long it’s taken to deal with sub-prime defaults, which started in 2005 and still count for a large part of today’s foreclosure inventory in 2010.

Following are the short sale trends as of Dec 2009, heading into 2010, which will explain the challenges short sales in 2010:

Trend #1 – Can’t Pay Me Now, Then Pay Me Later…..Lenders are scrutinizing reasons for hardships and predicting future financial status

In order to prevent short sale approvals for homeowners who may really not be in trouble, lenders have been scrutinizing the reasons provided in a short sale submission. If you broke your leg and you missed a few months of work that caused you to be behind, but your ability to continue earning income when you recover shows to the lender you really don’t have a real enough hardship to approve a short sale.

Trend #2 Junior Lien holders get paid $3000 by the Senior Lien holder regardless of how much debt is owed

In most transactions when there are multiple lien holders and the first mortgage lender forecloses, Junior lien holders understand that they will receive nothing. Junior lien holders know this but also don’t want to give up their hand that easily. Don’t expect Junior lien holders to lay down so easily. In fact, short sale deals have died because the Junior lien holder wanted more than $3000, even when the first and second lenders where the same company!

Trend #3 Junior Lien holders gets borrowers to continue paying on payment plan

Junior lien holders are asking for a promissory note from the borrower if they want them to release the lien from their property and give up their rights to deficiency. The thought is that they will get $3000, and even if the borrower makes a few payments from the promissory note, it is still more money in their pocket. The payment plan is very reasonable with a long payment term with a very low rate.

Trend #4 Commission adjustments

The maximum lenders have been allowing on commissions is 3% for each agent involved. A full 6% commission is supposed to be allowed by FNMA backed loans but lenders may still scrutinize these commissions. In fact, the amount of commissions will most likely be affected if they are not able to recover enough money from a short sale offer. Be aware that if a deal has two separate agents from the same office, the commissions may be reduced.

Trend #5 Strict compliance of title companies for short sale transactions

Every short sale transaction will need title insurance and there has been concern from title companies that a lender will take back an approval if the title company is not able to comply with their closing practices. If any mistakes are made by the title company, they would be paying out money on any future claims.

Trend #6 Homeowners will continue to face foreclosure

This is an obvious trend, but the 24+ billion adjustable mortgages this year will add more inventory to the housing market. Values will continue to decline and lenders will be pressured to allow more short sale approvals to prevent additional inventory hitting the market and reducing the values of their REOs in the market.

Full Article Resourse:

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Supertech eco village : my home, my dream on earth

Supertech Eco Village : MY HOME, MY DREAM ON EARTH

Welcome to Supertech Eco village project which is one of the leading construction company who help the people for their dream for the perfect home and  is self explanatory project which have an exclusive haven full of natural beauty and recreational delight for a rare few. Take a peek at this new place today and get the complete satisfaction and pleasure. Their frame of work is well planned and also estimating and provide the clear choice for the home buyers.

The project is being finalized by Supertech Builders, a company who is having a excellent reputation for maintaining high standards and delivering good quality housing at affordable rates. Supertech Eco Village project with state of the art amenities, including health club, swimming pools, sports facilities, a commercial complex with departmental store, lauddry service and medical stores and a L’ oreal beauty saloon. gymnasium, and several other facilities. Living at Supertect Eco Village will  give the full ansureance  that all the residents have a truly international lifestyle with the best quality of life  compared to  other apartments.Supertech builders is an ideal choice for people who are interested to live in a clean and pollution free neighbourhood. Supertect eco village  project is located at  Noida a short distance from Delhi and same is comes in Delhi NCR which is hard to beat.This builder always bears the stamp of quality.

Supertech Eco Village always offers Eco-Friendly environment to live and also provide the options in various budgets, Today buying a dream house in not a easy task and not just very easy, but Supertect Builder proves that its not too difficult because they provide in affordable prices and having unbelievable low price – easily affordable prices so that everybody who are resident of this project live the life. The township of this project always give comfort and convenience to new level and offers various services from land stage to final construction including supervision and consultancy.

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How to make your offer stand out

How to Make your Offer Stand Out

If you’re looking to buy a home, and the market has more homes than buyers, it can be hard to get the attention of the seller of a home you love. Many sellers have multiple offers in on their home, and their goal is to get the highest possible price, with the simplest terms. Here’s how you can compete:

Offering the highest bid isn’t the most important thing, but it certainly helps. You need to decide what exactly your top budget is for a home. Then, decide how much you really want that particular home. Is it really as perfect as you think? Is it worth offering more and rushing a sale? If so, go ahead.

I mentioned that having the highest offer isn’t the most important thing. How can money not be the most important thing? Well, if their are sticky terms attached, even the highest offer can look risky to a seller. If a buyer has to sell their home first, the seller sees that they could be waiting months before their sale is final. A couple thousand dollars lower an offer but an immediate sale might look far more attractive. This can work to your advantage if you are able to buy immediately with no delays or strange clauses, even if your offer isn’t above anyone else’s. Alternatively, the seller may want a delayed sale for reasons of their own. Being flexible to their needs will serve you best if it’s truly the home you need.

Be aware that any deadlines you try to initiate will only be a turn-off to the seller. If the ball is in their court, they’re not going to go out of their way to adhere to your deadlines. Similarly, if they put deadlines on you, realize that they can still accept another offer while waiting for your response. So if they give you a counter offer, or give you a term to negotiate, it is important to respond to them as quickly as possible. Otherwise you risk them turning to someone else.

Further, if this is a seller’s market, and you desperately want a particular home, don’t nit pick the seller about repairs. You may get away with requesting a small fund set aside for some outstanding repairs that the seller is aware of, but don’t try adding a clause that gets the seller to fix it before the sale goes through, or the chances of them taking another offer are high. They want to move on, not start something new.

Finally, be sure you are pre-approved for a mortgage. This gives your offer legitimacy, and lets you know exactly what your bidding maximum is. Plus, it could help a sale go through faster—if that’s what the seller wants.

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Woodville texas home market

Woodville Texas Home Market

This small community is very popular with retirees for its relaxed rural living. The population is about 2,500 people and is located in Tyler County Texas, along Highway 69 running north and south. Highway 190 runs east and west and is a main thoroughfare to Jasper to the east and the major interstate freeways 59 and 45 to the west.

Home prices tend to be a little above average for such an out of the way small community. This is due to the quaintness of the town and its beautiful east Texas scenery. The rolling hills and tall pine trees attract many retirees from the larger cities to the south. Also, the Alabama Cousuatta Indian Reservation is to the west of the town, making expansion in that direction impossible. This limits the available homes for sale in the most prime areas.

In the country, a few miles from town, a 1500 square foot home with 5 acres will sell in the $75,000 to $125,000 price range. In the city limits this same home will sell for $65,000 to $100,000 price range. Of course, there are $500,000 homes in the area, but this is not the norm.

Woodville is also a good place to raise a family. Its school district is above average in the state and offers a fine education. For higher education, one must attend a college in Beaumont which is approximately 45 miles to the south.

In Conclusion: Woodville Texas is probably one of the most quaint communities in east Texas and is a desirable place to retire to, or to raise a young family. For this reason the resale value of residential property is quite good, even in slower economic times.

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