Monday, 16 February 2015

Properties in Gachibowli Promise High ROI

Let's state the obvious, the growing IT sector in Hyderabad has surely developed a number of neighbourhoods like Gopanpally, Nanakramguda, Gachibowli and Manikonda. However, one market that has emerged as a realty hotspot in Hyderabad is Gachibowli. Cited to be an IT (Information and Technology) hub, due to the presence of many MNCs (Multi National Companies), the demand for flats in Gachibowli for sale has gone on an overdrive.

Developed into becoming one of the most sought after rental localities in Hyderabad, the major influx of housing demand has pushed a number of builders and developers to create world class residential projects. The presence of many reputed companies like Amazon, TCS, Infosys, Wipro and Accenture has lured many working professionals to invest here. Both local and national real estate developers are now cashing on the growing demand and are coming up with an array of residential projects that range from being affordable to mid-segmented to even ultra luxurious. Wooing the IT professionals by their state of the art amenities and facilities, a young home buyer is definitely spoilt for choice when it comes to investing in a property here. The area is fast developing into becoming a rental hub. The presence of many economical homes and villas in Gachibowli for rent are attracting many bachelors. According to current market trends, rental values for 1,000 square feet flats in Gachibowli have seen an appreciation of Rs 1,500 in the past few years, making the market a profitable destination for many investors.

Swift connectivity is another element that is roping in a lot of investment. Its close proximity to HITEC City (which is only 6 kilometers away) has engaged many home buyers to shift their base here. The seamless road networking to other parts of the city has also attracted many families to move here. High ROI (Return on Investment) is another factor that is captivating many property seekers to invest in Gachibowli. According to recent data, capital values of Apartments in hyderabad have seen an escalation of 30 percent in the past two years. Property prices that were documented in year 2012 stood at an average of Rs 2,900 per square feet while the ongoing prices record an average of Rs 3,800 per square feet.

Being a favourable market for investors and second time home buyers due to its formidable rental income and high ROI, Gachibowli is cited to be an ideal investment destination. The political clarity has retained buyers' sentiment in the market and investors are now purchasing properties only to let them out on rent later. With working professionals now considering to invest in homes close to their office spaces, the future outlook of properties in Gachibowli is only going to witness an upward trend. The proposed upcoming ITIR (Information Technology Investment Region) project will develop and flourish the commercial market of Gachibowli even further. So if you are looking towards investing in a property that yields high rentals and promises great ROI in the coming years- Gachibowli is the place for you.Article Source:

Sunday, 15 February 2015

Learning More About The Tiny Home Movement

The high cost of real estate has left many in search of alternatives to conventional homes that come at a more affordable price. The tiny home movement continues to grow in popularity, especially for those who are seeking to enjoy all the benefits of owning a house without the high costs and expenses usually associated with such an asset. Homes that have been specifically designed to be as small as possible without sacrificing comfort or utility have much to offer. These homes are designed to be highly mobile and offer the perfect solution for professionals whose career does not tie them to one specific location.

Unlike campers, trailers and conventional mobile homes that are often designed for either short term use or that offer limited quality and comfort, tine homes are designed for maximum efficiency. Houses that are rarely larger than a few hundred square feet can provide many of the environments and amenities that property owners would expect to find in a much larger structure. Eliminating any space that is not being utilized and making every effort to create the most efficient environment possible offers a way to pack a great deal of value into a very small package. Small homes are often designed to be as mobile as possible in order to better suit the needs of owners who lead a more nomadic lifestyle.

Owning a conventional home is often a more expensive undertaking than many first time property owners may realize. Landscaping, foundations and the utility costs associated with a larger interior environment can quickly become very expensive. Smaller structures and those that require less resources and effort to maintain can make the dream of owning a house far more attainable. Spending more to maintain areas and environments that property owners may be able to do without can make maintaining a property far more expensive. Houses that have been created to be as efficient as possible can often be owned and maintained for a price that few existing property owners may have believed possible.

Internet technologies and mobile devices have given rise to a workforce that is more mobile than ever before. Professionals who are not tethered to a single location are increasingly interested in any opportunities that may allow them to more easily travel. Homes that can be easily transported from one location to the next provide the perfect solution for professionals who are seeking to see more of the world. The ability to enjoy all the comforts of home when on the road or to more easily move to different regions and enjoy a wider range of short term living opportunities and arrangements.

While the first small homes were designed and build by their owners, the growing popularity of these structures means that those who are interested in owning one have far more options at their disposal. Professionally designed and built homes make ownership much easier, especially for those who lack the means or inclination to do the construction themselves. Working with a professional designer can provide plenty of benefits.

Online communities and forums offer owners and those interested in the advantages that smaller homes are able to offer the chance to discuss their situations. Learning all you can about any homes that may fit your budget and lifestyle may be easier than you would have expected. Making smarter and more informed decisions will allow you to avoid many of the common issues and pitfalls that first time owners may be likely to experience. Conducting a little research will ensure that you are able to make the best decisions possible and will help to ensure that you do not overlook any opportunities that may provide you with greater satisfaction or value.

The issues and expenses associated with owning conventional homes can pose a real obstacle for many owners. Smaller structures and homes that are designed to provide superior quality and comfort offer a more affordable way to make your dream a reality. Investing in the right opportunity or working with a designer or construction professional who will allow you to more easily meet your needs may allow you to more easily fulfill your dreams.

From mobile professionals to those who lack the resources and finances needed to invest in conventional homes, there are plenty of people who can benefit from a smaller and more affordable alternative. Homes created to provide the most comfort in the smallest amount of space have a great deal to offer, and may allow you to enjoy the lifestyle you have always wanted. Structures and homes that offer a more affordable and mobile lifestyle may provide the solution you have been ezine article

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Saturday, 14 February 2015

3 Steps For Securing Equity Capital For Your Real Estate Project

I previously shared the steps for creating a professional plan for a real estate project; the importance of obtaining third-party validation; advice in how to find the right financing sources; and suggestions on presenting the project professionally, then closing the deal. This approach will enable you to obtain financing term sheets, letters of intent and/or financing commitment letters from lenders if your project is financially feasible and falls within the lending parameters of the financing institutions that you approach. Nevertheless, financing always requires a cash contribution, as 100% financing is not realistic in today's market.

Lender requirements for cash equity contributions, deposits or down payments, typically fall between 15% and 40% of the total project cost (85% to 60% Loan-To-Value ratio). A portion or all of the equity value in the property can sometimes help reduce the cash deposit requirement, but it is very unlikely for a conventional lender to completely eliminate the cash contribution requirement because lenders want to ensure that the principal(s) are vested in the project, or have "skin in the game". The cash deposit is necessary to close the loan and obtain financing.

So, where does the cash deposit come from? There are several potential sources:

Your pocket
Your partner's pocket (if you have one)
Equity from another property you may own (if any)
Private investors
There are many advantages to infusing the cash equity requirement yourself, including the fact that you retain all profit and full control of the project at all times. This can often be the most advantageous funding structure because it maximizes your profit and control. However, there are also advantages to securing equity participation from investors, including:

· Less cash out of pocket enables you to be more liquid, retain more cash reserves and/or diversify your investments to earn profits from other projects or endeavors simultaneously

· Reduces your risk and exposure in the project

· Enhances your financing capabilities

There are 3 basic steps for securing equity capital for your real estate project:

Prepare an investment proposition
Source like-minded investors and private investment organizations
Investment negotiations and agreement
1) Investment Proposition

There are many ways to formulate an investment proposition. I've seen an investment proposal written on the back of a napkin... and the deal was funded! (This was a developer seeking an investment from his grandmother). I've seen verbal agreements get funded by family members. I've also seen very intricate, elaborate and lengthy investment proposals not get funded. How you document your investment proposal is extremely important. The first two examples were appropriately prepared for their intended audiences; the third was not. If your project is financially feasible and can demonstrate reasonable gain for investors, securing investment capital becomes a function of proper documentation, sourcing, presentation and negotiation.

Regardless of whether an investment proposal is intended for a family member or a sophisticated investment organization, proper documentation always enhances your ability to secure funding. Your proposal should be professional, clear and concise. Following are some basic suggestions for documenting your investment proposal:

1. Provide a brief executive summary describing the project and the investment proposition. Within the executive summary, outline the investment amount required, return on investment, time-frame of the investment, and discuss the security, collateral and/or equity value that can help protect the investor.

2. Provide a financial summary of the uses of funds, sources of funds, operating projections and cash flow of the project.

3. Discuss the funding structure and capitalization plan.

4. Attach term sheets, letters of intent, financing proposals, and/or commitment letters from prospective lenders.

5. Attach the project plan.

Source Like-Minded Investors and Investment Organizations

Where do you find investors that would be interested in participating in your project? If your project is financially feasible and you've prepared a professional plan and a concise investment proposition, then you're only steps away from finding your equity investor(s). It takes time and determination, but it can be a worthwhile effort that can last beyond a single project. Here are some suggestions for obtaining sources:

Contact local and regional mortgage brokers, real estate brokers, title companies, real estate attorneys, and other real estate professionals. Offer a finder's fee.
Place ads online and in local and regional newspapers.
Prepare a project web page where prospective investors can find the project and review/download pertinent documents, including your investment proposition.
Hire a consultant or financing broker that specializes in securing equity participation.
Review your own contacts and business cards - You'd be surprised at how fruitful this effort may be.
Attend networking events and or conferences for private investors in your area and/or region, then collect business cards and make follow up calls and meetings.
Dedicate time to making calls, setting up appointments and engaging in meetings to present your project to prospective investors. Become an expert at presenting your project. Prepare a multimedia presentation to help them focus on the points you want to stress. Don't stop until you get it done. If your project is feasible and profitable, it can get funded with proper determination and effort.

Investment Negotiations and Agreement

How much should you offer an investor? Depending on the nature of a project, perceived risk, profitability, location, your experience, competition, demand, supply and numerous other factors, I've seen investors require from 5% to 95% of the project and/or profit. Most investors want to see that you have "skin in the game", generally 10% to 50% of the amount you ask them to invest in the project. Demonstrating that you have invested in the project or that you will invest into the project is adds value to the deal. You should document this clearly and provide evidence of the time and money you have invested in your project.

Other items that are open to negotiation include the percentage of control in the project, roles of the parties, reporting procedures for the investors, etc. You should provide benefit and value to the investors, but at the same time you don't want to lose all control or receive minimal gain for your efforts. Finding the right balance is extremely importance. This is accomplished through open dialogue and effective communication between the parties.

There is no global formula for this, so it's impossible for me to provide accurate advice on what to propose investors for your specific project. I would strongly recommend getting advice from a savvy attorney who can assist in preparing the investment agreement and structuring the investment terms. Meet with your attorney first so that you have an original structure for the deal; then use your attorney when negotiating any modifications with prospective investors.

If you have a history or recently completed real estate projects, document this clearly and share with potential investors during your presentations and meetings. If you don't have a track record of successfully completed real estate projects, raising your first equity investment can be more challenging, but if you follow the above suggestions and you are determined, the sky is the limit!

Friday, 13 February 2015

How To Stay Away From Real Estate Fraud

Fraud' is that one word you'd rather do without when it comes to making mighty transactions. And if we're talking mighty, we're talking real estate. Getting trapped in a real estate fraud is among the worst ways to lose large sums of money, and you end up not getting what you had paid all that money for. Here's what you need to do to keep yourself out of such trickery.

Identify Whose House It Is, Really

'Title Fraud', also known as identity theft, is a property owner's worst nightmare. Tricksters forge documents by changing the property owner's personal details to match theirs. Once the property and all the documents are transferred to their name, they procure a new mortgage against this property and seal the deal. Taking back your house after that is quite a hassle. In fact, what if they sell your property?

In addition to thoroughly verifying who the property belongs to, you can opt for a 'title insurance', which protects your property title against fraud. This also guards a new owner against existing claims, such as unpaid property taxes, unpaid utilities, and unpaid mortgages.

Don't Opt For Loans Offered In Disguise

a) Foreclosure Fraud

Cash-strapped property owners that can't afford to meet mortgage payments sometimes get taken for a ride. Deceitful people make an offer to pay the loan on the owner's behalf, as if to help them out of the situation, but then leave without fulfilling the promises. The trickery usually requires immediate payment for the trickster's services and an agreement to transfer the property title to him or her. Once this is done, the trickster flees, while you are left behind with piling amounts of debt and no property. This type of fraud is called foreclosure fraud.

b) Home-Equity Fraud

Watch out for those people who are eyeing your house equity. If you rely on your house equity to borrow money, you have to constantly be on the lookout for unscrupulous lenders so you can stay away from them.

When it comes to leveraging properties, there are huge risks involved. The risks must be carefully explained by your lender. Those who want to make extra bucks will embellish their application such that the income, down payment, and property assessment values are exaggerated, ultimately helping themselves to a huge loan amount.

Be Wary Of Money Laundering

Money laundering is another common method of deceit. Illegal money is made to seem like a clean asset. Stay wary of people who purchase a property with illegal proceedings and sell them to other people. On the face of it, the property might look legitimate to you, but only careful inspection and assessment can spell out the dirty secrets.

There's only one way to prepare and protect yourself against fraud: constant vigilance! Do your homework, and stay cautious and smart about every investment decision you make.

Thursday, 12 February 2015

Avoiding a Potential Fire Disaster at Home

It's not every day that we think about fire prevention for homes, but you should take a couple days a year to make sure that your family is as protected as possible when it comes to house fires.

It's estimated that in and 12 there was approximately 400,000 house fires in North America. This resulted in almost 13,000 injuries and $6 billion in damages. House fires are one of the most costly, damaging and preventable home disasters that we face in North America. Fire is a deadly threat and in the home can because by numerous things such as candles, smoking, plug dryer vents, electrical faults, cooking and many more. Advances in both fire detection and fire suppression have made most of the situations avoidable follow along in this article about some of the main causes of house fires and how to prevent them.

Top five causes of house fires.

1. Improper use of candles: it is estimated that in the United States there are 42 fires per day that are started by the careless handling of candles. Always keep candles in a sturdy holder and on a level surface, make sure they're out of the reach of children and pets, also make sure there's no combustible materials close by. Never leave candles burning on attended if you're going to be leaving the room blow the candles out first.

2. Electrical hazards: many fires are started simply because we plug too many things into a single outlet that overloads the wiring. If you want an older home it's a good idea to have a qualified electrician come in and inspect your electrical system making sure that is up to code.

3. Christmas decorations: although beautiful Christmas decorations to be an extreme fire hazard, including the tree. Make sure if you have a live tree that you keep it well watered you don't want to drying out well at the same time hanging Christmas lights which are heat source all over it. Switching your lights to new or LED lights that are much cooler than traditional Christmas decorations is a good idea.

4. Heating equipment and dryer vents: you should have your furnace, fireplace chimney and dryer vent system checked annually by a qualified service technician to make sure everything is functioning correctly and safely. If you're using portable heaters through your home make sure to keep combustible materials far away.

5. Smoking: it still amazes me that people die every year from house fires caused from people smoking in bed. If you smoke you should have designated areas in your home that are safe to smoke in, areas it should be avoided include places where combustible materials are stored and any area where you commonly will fall asleep.

Preventing house fires

Most house fires are preventable simply by using your common sense, but the detection of a fire well it's still in its early stages can save your life. Make sure that you install a smoke detector in your home and check the batteries twice per year. Some smoke detectors are equipped with heat sensors and all of them are equipped with your piercing sirens it'll wake up even the heaviest of sleepers. Another must have device is a carbon monoxide detector, car monoxide is an orderless colorless gas that will kill you if undetected. Detectors are very cheap and reliable, again make sure to check the batteries twice per year.

If a fire does break on your home and you catch it at a very early stage you might be able to avoid a costly house fire or at least suppress the fire enough to get your family to safety simply by having a fire extinguisher close by. All household fire extinguishers are classified as either A, B, or C or some combination of these. The best all-around fire extinguisher to have in your home is an A:B:C which is effective at fighting ordinary combustible's, flammable liquids and electrical fires. Make sure your trained on how to use a fire extinguisher properly, you can look this up on YouTube here. Also have your fire extinguisher checked every year making sure that is fully charged and operational.

Lastly have a fire safety plan that you teach to your entire family especially your children. A fire safety plan should include ways to exit the home in multiple ways and a Muster point where everyone will gather in the event of a fire.

Wednesday, 11 February 2015

The Unwritten Rules of Flipping Houses

If you are new to the world of flipping houses there are a few unwritten rules you will undoubtedly want to know about. We will discuss some of them in this article. Our hope is to provide you with some information that you can use as a pathway to your successful home flipping career.

One of these unwritten rules involves the investment concept of flipping homes itself. That is to never lose principal. Over the course of your career in this industry there is no doubt you will have a few failures. These can be especially embarrassing if you are using other people's money to finance your deals. But as long as you can prevent your investors from losing their principal and interest in these deals; you should be able to save face. The key here is to structure the investment deals to where YOU are the one to take the financial hit; NOT your investors. If you do this; even if this particular investor does not want to do business with you again, your overall reputation should remain intact. This is crucial to your home flipping business.

The next mandatory unwritten rule in flipping homes is to NEVER stop communicating with your investors. Even when it is inevitable that an investment is going to go south; keep the lines of communication between you and them open. When you fail to do this you will ultimately lose all credibility in the industry as a whole. Then it becomes impossible for you to sustain your business. The key here is to stay in touch with all of your investors and keep them informed as to every part of the investment deal. Be the first one to notify them when something is going wrong. Offer viable solutions to these problems and require their approval to move forward. Prove to them that you are not a scam artist who is negligent in the use of other people's money. If you keep communicating with these people you can likely avoid gaining a negative reputation in the home flipping world. Then when you do fail in a deal; you can likely still salvage your career.

One more tip for you is to stay on top of all relevant legal matters involved with your deals. DO NOT cut corners. Even if you do not really like lawyers; we strongly urge you to hire one if you intend to embark on a home flipping career. He or she can properly advise you of all potential legal problems that could arise in your deals. Additionally; should a deal go bust on you, your lawyer can further advise you on such matters. You may even need him or her to represent you in court; should things go completely wrong with a deal or two. The real estate world is heavily regulated. Only an expert can keep you abreast of all such regulations. If you fail to comply with these regulations; you could wind up in serious legal trouble. Not only that; but your reputation will become radically and permanently soiled. Do yourself two favors; hire a real estate lawyer and follow all laws and regulations to the letter. Then at least your entire business will not go belly-up.

Friday, 6 February 2015

Maintaining Your Home's Heritage

Maintaining your homes heritage can be extremely rewarding. There are grants available that may help you conserve your property and at the same time help protect England's built heritage.

Living in older buildings often means trying not to compromise its historic character, whilst still endeavouring to make it meet your needs. Regular and effective maintenance is extremely importance in older houses to help slow the process of deterioration, and, keep your home a safe and pleasant place to live in. It makes sense to keep a check list and draw up a maintenance plan. Keeping an older building dry should be at the top of a maintenance to do list. Regularly check roof coverings, guttering's, downpipes and drains to make sure they are in good working order.

If your home is listed or in a conservation area, permission may need to be granted if you want to make repairs rather than carry out maintenance work. Finding out about the style and construction of your home is useful when carrying out maintenance and repair, this will help guide your ideas about any changes you may wish to make.

According to English Heritage, you will need Listed Building Consent for all work to a listed building that involves alterations, extensions or demolition and will affect its character as a building of special architectural or historic interest.

Some conservation areas are subject to special controls, specifically when the local authority wants to protect particular building features, such as doors or windows. Contact your local authority if you are unsure.

The Victorian period began with the ascension to the throne of Victoria in 1837 and ended in 1901. It was divided architecturally into several phases. Windows and furnishings can be particularly authentic if you do your research. Sliding sash windows were common throughout the Victorian period, however, that said, in the 1870's, the Queen Anne Revival style came into fashion, which saw the return of glazing bars.

The Georgian period began in 1714, and is regarded as having ended in 1820. This overlapped with the Regency period. This is a bit of a confusing period with many stylistic differences. The double-hung sash window is the preferred window of that period. It is thought that virtually no Georgian windows were constructed to a standard size. The mid-Georgian sash window was usually of six-over-eight panes. As that century progressed however, they were superseded by windows that were larger in size, including four-over-four or even two-over-two panes. Glazing bars were thinner and the look was more refined. Refinement was the buzz word of that era.

Treating your house as a prize possession rather than an investment plan, will hopefully spur you on to maintain your homes heritage. If your building is listed for example it is considered to be of merit, either due to the architecture or because of the historical value. These buildings are listed so that the heritage invested in historic buildings is preserved for future generations.