Festive Season: Tips On Freebies And Offers On Property

– Anil Pharande, Chairman – Pharande Spaces

In Maharashtra, Diwali is definitely the time of choice for property buyers to invest in their dream home. In fact, property buyers look forward to this festival to sign the papers on their homes because this city cherishes this traditional time of investing in the future.

freeObviously, builders also respond to the vastly improved market sentiments and do all they can to sustain them. During the Diwali period, property buyers will be presented with a slew of offers which developers introduce to induce sales. The Diwali period this year will see a lot of such activity, because property developers are eager to create sufficient interest in their projects. The residential property market has seen slackness over the preceding months, and Diwali is the time that developers have been looking forward to as much as property buyers.

The question here is – do such ‘freebies’ constitute real value for property buyers? The answer to this does not depend solely on what is being offered. It is a normal market phenomenon for incentives to be offered during the festive season, but property buyers should consider the actual value of the property.

They should be cautious about extravagant freebies and take a close look at the factors that add or reduce value in the case of real estate. If the project is by a developer known for sub-standard construction, or if it is located in a ‘blind spot’ of the local real estate market, no amount of freebies can compensate. The property itself will not represent a good investment, and the buyer will not benefit in the long run.

Another aspect to watch out for is freebies being offered for properties in over-priced projects. At a time when property buyers seek the best options for their money, getting a free car along with an overpriced flat does not make sense. If the flats in this project do not represent good value for money, freebies will not improve the situation. If a buyer wants to buy a flat in Pune such a project, it is best to negotiate for a better price than to accept freebies – or ask for them in addition to a discount.

Home buyers should especially beware of freebies being offered by investors who have put their money into properties in locations that are known to be ‘overheated’ (in other words, where rates have been artificially inflated by excessive investor activity). In such cases, freebies are meant to act as psychological encouragements to make an unwise property purchase.

There are certain incentives that buyers can definitely take seriously. These are not in the form of cars or vacations, but represent actual savings to them. Such incentives include:

  • Reduced down-payments to book flats, with balance payable on possession, resulting in an extension of the period between booking and full payment. Normally, buyers would have to pay the balance as the building progresses
  • Waiver on stamp duty, VAT and registration charges
  • Free or significantly reduced clubhouse memberships
  • Free parking, furnishing, interior decoration and smart home features (which would otherwise be charged for)
  • Waiver on premium for floor-rise

About The Author:

Anil PharandeAnil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area, offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings. Woodsville in Moshi is another highly successful PCMC-based township by Pharande Spaces which is now in its 3rd phase.

Infrastructure: The Key Real Estate Investment Criterion

Anil Pharande, CMD – Pharande Spaces

We keep hearing the term ‘market drivers’ being used in real estate. What are they? Market drivers can be defined as developments in an area that increase the value of living there. It is a well-established fact that infrastructure is by far the most important driver for real estate demand and property appreciation growth.

Infrastructure can take many forms. It includes road development to boost connectivity of a location, civic infrastructure such as dedicated water and electricity supply, public gardens, etc. that increases the quality of living in the area, and social infrastructure such as schools, colleges and healthcare, which result in shorter travelling time to such very essential services.

punawale bridge

Infrastructure must be put in place either before or along with other real estate development. Attempts to put it in place retrospectively create the kind of mess that we can see in many of our cities today. The building of flyovers and road widening are attempted in highly congested areas, disrupting the flow of normal activity and taking ages to be built, causing great inconvenience and massive costs to the city because of the incessant delays.

Building infrastructure is like growing trees – in both cases, there needs to be enough space for them to grow, and sufficient opportunity for a root network to deploy. Without space and depth, neither trees nor infrastructure can grow and flourish. If we take the case of Pune as an example, we can see that building infrastructure as an afterthought to real estate development, rather than as a precursor, does not really work well.

Pune’s haphazard development in the past has not been favourable for decent infrastructure deployment to complement its rapid development on other fronts. Battling severe constraints, Pune’ development authorities are doing their best to counter the ill-effects of unregulated development which has so far been taking place.

Infra

 

We are seeing some good results in building support infrastructure, but the Pune Municipal Corporation is actually a losing battle. This is amply illustrated by the fact that the Pune Municipal Corporation is not able to provide suitable parking, traffic management solutions and utilities supply despite enormous investments.

Guidelines For Homebuyers & Investors

  • The infrastructure of a location is a major focus area for property investors for a very good reason. Real estate investors want to attract end-users, either as rental or purchase clients, to the properties. They know that an area without sufficient infrastructure will be unattractive to their clients, because the quality of living quotient is low.
  • Again, properties in areas without good infrastructure tend to have cheaper property rates for a reason. Developers with projects in such locations know that the area has little or nothing to say for itself in terms of quality of life. The only way they can hope to sell their projects is to offer very attractive rates.
  • Buyers should place infrastructure availability prominently on their checklist while scouting for suitable homes. Road and rail connectivity, water supply, proximity of schools, hospitals and shopping outlets are of paramount importance. Buying a home cheaply if the location does not offer these is meaningless, and will give cause for regret.
  • If one is buying a property purely as a long-term investment and primarily for capital appreciation, one can afford to be a bit philosophical about existing infrastructure. After all, one is not planning to live there and does not expect very fast appreciation. As long as there is a reasonable assurance that it will arrive in the foreseeable future, it makes sense to invest in a property located in an emerging area where infrastructure is in its nascent stages.
  • However, if one is buying the property in order to generate rental income, existing infrastructure is far more important than upcoming infrastructure. People looking for rental options are also looking for a certain ease and dignity of living. They are willing to put the option of buying a home aside so that they can live in a good home in a good location on rent.
  • Where the option exists, give a high preference to townships over all other options. While checking out townships, ensure that they are located in areas which have a good saturation of support infrastructure as well. Most large Indian cities now have township projects coming up.
  • In Pune, the infrastructure-rich Pimpri-Chinchwad Municipal Corporation is attracting the highest number of buyers and investors of township properties. In other parts of the country, Navi Mumbai and the Kalyan-Dombivli and Vasai-Virar belts are becoming important township hubs.
  • In Delhi NCR, the areas to look at for townships are Ghaziabad, Faridabad and Greater Noida. In Bangalore, the growth hubs for townships are Yelahanka and Devanhalli, and in Chennai they include Sriperumbadur, Perambur, the OMR belt and Anna Nagar.

About The Author:

Anil PharandeAnil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings. Woodsville in Moshi is another highly successful PCMC-based township by Pharande Spaces which is now in its 3rd phase.

 

 

More Scope For Green Development In PCMC

The PCMC is one of the pioneering regions in the country to embrace the concepts and principles of sustainable development, and I myself have always been a strong advocate for the green way of life.
green-home
The use of green building technology, non-conventional energy sources and sustainable waste water management does not only have a positive impact on the environment but also on the overall quality of our lives. Moreover, adoption of sustainable building and living practices reduce the strain on municipal resources, resulting in significant revenue savings which can then be used to build better infrastructure and provide even more services to the people.

I would like to touch on PCMC’s major thrust towards sustainable real estate development. It is no secret that green development is the future of real estate all over the world. In fact, many of the bigger residential townships and commercial complexes in the PCMC have already adopted the ‘green development’ mantra. Many of the developers active here have started to take sustainable real estate development seriously and begun launching Green Homes.

To date, there are around 60 registered green buildings completed or under construction in the PCMC. The new PCNTDA building itself is a resounding statement to how important sustainable development has become to the city.

Obviously, the Pimpri Chinchwad Municipal Corporation is taking its mission to provide cleaner, greener homes to its citizens very seriously. But I must also add that we still have a long way to go. In my opinion, there is still not enough enthusiasm within the region about the benefits of green homes and workplaces. One of the reasons for this is lack of awareness.

And despite all the progress that has been made, there should be more determination by the PCMC to encourage and promote developers who are taking the Green cause seriously. I still see a great deal of disconnect between developers, agencies like GRIHA, the environment department and the building permissions agencies. Permissions for green buildings should be fast-tracked and be given preferential status. But this is still not to be seen, and it is quite disappointing.

Such disconnect is not worthy of a mighty and progressive municipality like the PCMC. Everything that happens here should be a benchmark for other regions to follow. The PCMC should be the most encouraging and determined of all the regions to promote and develop green real estate. There should be attractive incentives for both developers and consumers of green real estate. Only in such an environment can we hope to see PCMC become and remain the leader in sustainability.

I look forward to an era when this will happen, so that everyone associated with the PCMC can benefit and be proud of its efforts. This is my vision for a better tomorrow for the citizens and all stakeholders of PCMC, India’s most progressive municipal corporation. Jai Hind. Jai Maharashtra.

Anil PharandeAbout The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings. 

Punawale Now: Taking West Pune Real Estate To The Next Level

Taking West Pune Real Estate To The Next Level
Taking West Pune Real Estate To The Next Level

Why Roads Boost Real Estate Growth

Anil-Pharande– Anil Pharande, Chairman – Pharande Spaces

It is no secret that improved road connectivity is very important for real estate growth. Most property brokers will make a big case out of an area’s excellent road network and how this improves the appreciation value of a proposed property. But how exactly does this phenomenon work? What is the real ‘connection’ between better roads and better real estate values?

  • The History Of ‘Road Power’

Infrastructure is the key to growth for real estate – and the cornerstone of infrastructure is roads. The importance of roads to human being is vouchsafed by how long they have been around. The oldest paved road in recorded history was made sometime between 2600-2200 BC in Egypt; but it was the Roman Empire which brought out the fullest potential of roads traversable by wheeled, horse-powered carriages.

Pic 7

Circa 312 BC, the Roman Empire built stone roads throughout Europe and North Africa to aid its military campaigns. At the height of their power, the Romans had built 78,000 kilometers of roads that led to and from Rome. History is witness to what the Roman Empire achieved by connecting the parts of the world that were important to them to their seat of power.

However, it was only much later that ‘road power’ could begin to be fully exploited. It was, in fact, only in 1768 that the French inventor Nicolas-Joseph Cugnot built the first steam-powered automobile capable of human transportation. Ever since then, roads have emerged as the master key that unlocks all urban potential in the modern world.

  • Fast Forward To Today

It is safe to say that real estate development as we know it is impossible without adequate road networks. In the first place, they are required to transport construction materials and manpower to sites. Thereafter, people need roads to be able to travel to the newly developed locations. However, the basic roads that are initially used to ‘open up’ and area usually fall short of the task of really making it prosper. High volumes of traffic require larger, better-planned roads to accommodate it, and it often emerges that existing distances between locations can be significantly reduced by laying new roads altogether.

In the city of Pune, one recent example of the introduction of a new major road can cut down the distance that needs to be travelled between destinations was the Spine Road in the Pimpri-Chinchwad Municipal Corporation (PCMC). The launch of this important piece of infrastructure had a direct and very beneficial effect on residents in all the areas it influences. It connects two major highways, provides access focus for various residential, commercial and industrial centres and is the longest stand-alone road in the region. Spine Road has significantly relieved traffic congestion on internal roads – it has six lanes with cycle tracks, service roads and even parking facilities.

  • How Roads Improve Urban Life

Time Saved = Improved Lifestyle: With the shorter distances achieved by well-planned and strategically laid new roads, people can choose to not use their fuel-guzzling cars and travel to and from work by public transport or two wheelers instead. Apart from improving the quality of lives, this also decreases noise and air pollution in residential areas. Improved road connectivity also improves the overall safety of a neighbourhood, because emergency services like law enforcement and fire brigades can reach there faster. Residents also have quicker access to hospitals, which often makes the difference between life and death.

Obviously, infrastructure initiatives like the Spine Road in PCMC are a major advantage to employees working in the area’s numerous manufacturing and service industries. In Indian cities, the amount of time it takes to get to and from one’s workplace literally makes or breaks residential locations. Also, because residents of well-connected localities can reach and return from their workplaces faster, they have more time to spend with their families. The same fundamental works for school-going children, as well.

Considerable Savings On FuelEver-increasing fuel prices were once a concern only to the middle class, but they are today even the more affluent classes are feeling the heat. In India, electric cars that can meet the travel requirements of a normal-sized family are still a distant dream. Like it or not, we continue to depend on fossil fuel-driven vehicles.

A normal middle class family can save quite a lot on its monthly fuel expenses when a new road improves overall connectivity in their locality. Communities which live in areas without good road connectivity often spend between 10-15% of their monthly income on transportation alone. The figure rises proportionately to the number of vehicles the family operates.

The Health ‘Connection’Reduced travel time also equals a lower chance of commuting-related physical ailments and stress levels. When people have to travel over longer distances daily, the time in which they are exposed to traffic pollution and extreme climate increases proportionately. Several serious health problems such as deep vein thrombosis and lung infections have been directly linked to regular, long automobile travel.

By the same coin, road rage and reckless driving also often the direct by-product of traffic congestion caused by insufficient road linkages. Also, improved road connectivity leading to significantly shorter travel distances makes it possible for people to opt for health-positive travel modes such as bicycles.

The Real Estate ‘Connection’For all the above reasons, improved road connectivity has a massive impact on real estate prices of a location. There is always higher demand for homes in well-connected areas, because they are more accessible, safer, healthier and cheaper to live in.

About The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings.

PCMC: Pune’s New Townships Capital


Anil-Pharande_002Anil Pharande


Townships are more than a new real estate mantra – for the larger cities in India, they are without any doubt the only remaining hope for decent living standards. Gradually but surely, residential conditions in cities like Pune are on the decline, and township properties are gaining increasing significance as the final answer to quality-based living.

In areas like the Pimpri-Chinchwad Municipal Corporation, the ‘Infrastructure First’ approach has preserved and consistently enhanced living conditions for PCMC residents. However, the Pune Municipal Corporation (PMC) has not been able to stay on top of the infrastructure situation. Traffic congestion, air, water and noise pollution and a heedless approach to development have compounded the problems on all levels.

All Eyes On PCMC

The city’s inhabitants are facing major problems with reaching emergency services and educational institutions for their children, and access to adequate parking. In this depressing scenario, the large integrated townships being developed in thriving locations of the PCMC region are the new lifestyle standard. In the PCMC, the township movement first began in areas like Moshi and Ravet, and the region’s leading developers have now launched luxury townships on Spine Road and Punavale as well.

Integrated townships have, in fact, been on the rise ever since they were identified as the most suitable residential solution by the Government’s National Housing and Habitat Policy of 1998. After this policy included townships in its ‘Housing Revolution’ initiative, the Government of Maharashtra had begun actively encouraging the development of integrated townships to reduce the pressure on urban areas and to improve infrastructure in cities like Pune.

However, such projects require large land parcels and these have been all but fully consumed in the core areas of the Pune Municipal Corporation. As result, the focus shifted to the Pimpri-Chinchwad Municipal Corporation, where land availability and superlative support infrastructure make townships a very viable proposition.

Lifestyle Aspiration Driving Demand For Townships

Today, Pune citizens’ yen for a better lifestyle quotient is leading to an increasing demand for systematic and fully-enabled residential formats. The city’s deteriorating living conditions are the prime reason why the Township Revolution is now in rapid spin.

In the integrated township format, the problems are infrastructure deficit and deteriorating living conditions are completely negated. They offer a very high grade of living conditions set to the backdrop of aesthetic environments.

Offering the township-grade facilities in smaller residential projects would involve prohibitive costs for developers – cost which the consumers would have to pay. Thanks to the economies of scale, township developers in the PCMC are providing ultimate lifestyle solutions at far more rational costs. High-quality infrastructure, open spaces and immediate access to all the necessities of daily living result in a superior lifestyle proposition, since all residents in a township benefit from one large integrated and centrally managed system.

Why Township Properties Cost More – And Why It Is Worth It

When developers offer township-grade facilities in smaller housing projects, the costs to consumers is comparable to those of luxury homes. In townships, the vast range of facilities, fully-integrated infrastructure and the availability of schools, hospitals and shopping complexes within the premises means that township properties come at a slightly higher cost than normal multi-storey apartments. However, the additional expense is vindicated by the fact that those who buy into township properties are assured of a vastly superior living standard – not to mention exceptionally higher returns on investment.

For property buyers who simply do not want to compromise on their lifestyle options, the township properties of PCMC are the most obvious solution. The direct advantages include complete security, convenience, the comfort of high-grade infrastructure and various facilities within the premises, and immediate access to retail outlets and recreational facilities. This results in a very high degree of comfort and convenience within a completely cosmopolitan ethos.

About The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings. 

PMRDA: New Era Of Planned Growth For Pune Real Estate

Anil Pharande, Chairman – Pharande Spaces

The Pune Metropolitan Development Authority (PMRDA), which took up seat in the PCNTDA offices in Akurdi, Pimpri-Chinchwad on May 1, heralds an era of much-needed change for real estate development in Pune. From this point onward, PMRDA will introduce the concept of scientific town planning to every part of the city.

PMRDA

So far, proper town planning had only been followed in the the Pimpri-Chinchwad Municipal Corporation. The entire Pradhikaran belt has been developed by the PCNTDA (Pimpri Chinchwad New Township Development Authority) under strict development guidelines. As a result, PCMC has become a showcase of planned urban development.

The jurisdiction of PMRDA will cover the whole or Pune, including PCMC as well as several talukas such as Maval, Bhor, Haveli, Shirur, Mulshi and Khed which fall in the Pune district. Talegaon Dabhade, Lonavla, and Alandi and also be included along with several outlying villages. For the very first time in Pune’s history, there will be a unified planning and development authority to bring order to the entire district. The model of development will be similar to the approach which PCNTDA has followed to develop Pradhikaran over the years.

PMRDA will develop massive land parcels in a planned manner, areas will be zoned for residential and commercial development and support infrastructure such as electricity, water supply, sewerage and road networks will be put in place. Thereafter, they will be released for development under a newly-formulated development plan (DP) and regional plan (RP) which will replace all previous plans. In the meantime, PMRDA will also eradicate illegal developments. In the future, no construction will take place without complete vetting and authorization by the PMRDA.

This approach to urban development will have a profound effect on real estate in the Pune region. The value of land as well as any kind of built-up real estate will rise considerably, and the region will attract more and more investments from both within and outside the country. PCMC, which is already home to hundreds of global manufacturing companies, will see even more of such industries moving in and setting up operations. This will lead to incremental employment growth, which will bring with it massive requirements for commercial and residential spaces.

In short, Pune will now be able to reach its fullest potential under PMRDA. The local economy is set to boom, and Pune will eventually become the new economic capital of Maharashtra.

About The Author:

Anil-Pharande

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran. The luxury township Puneville at Punavale in West Pune is among the company’s latest premium offerings.

Anil Pharande In Interview With The Realty Paper

therealtypaper

Anil Pharande, Chairman – Pharande Spaces in interview with The Realty Paper

  • How is the current scenario in the Pune real estate market?

Pune is a powerhouse of potential when it comes to real estate. It is a city of learning and entrepreneurship, and there is a distinctly progressive flavour to everything that happens there. Thanks to the fact that it has become a magnet for IT/ITES and manufacturing companies, the real estate market in Pune is not likely to lose its forward momentum. That said, I always had misgivings about the opportunistic manner in which property development was taking place within the PMC limits, and was far more interested in the holistic approach being adopted in Pimpri-Chinchwad.

  • What are your focal points of a real estate development firm?

In terms of locations, we have so far concentrated on the PCMC area and West Pune. My passion for real estate in PCMC has its reasons – the idea of being involved in the raising of a planned city on the lines of Chandigarh, so close to Pune, excited me. My primary objective has been to help steer the path of this planned development, which is why I got involved with CREDAI. Getting into the creation of township properties that would take the best advantage of the benefits that the PCMC offered in terms of superior infrastructure and phased real estate growth was the next logical step.

  • When was Pharande Spaces established?

Pharande Spaces was started in 1994 with negative capital. We launched purely on bank borrowings and goodwill.

  • Where are you most involved in the development of projects?

Since I come from a technical background, I have always placed great emphasis on employing the latest construction techniques in our projects. Our primary focus is on high-quality, visually aesthetic and lifestyle-oriented township projects that are environmentally sustainable and add to the grandeur of Pune’s real estate landscape.

  • Is Pharande Spaces involved in any other business verticals?

Apart from residential real estate, we are already into the manufacture of non-conventional energy equipment as well as distribution and power transformers. We have also forayed into the construction of malls and multiplexes. As already mentioned, we have so far concentrated on PCMC and West Pune, but are now firming up plans to expand into Goa as well.

  • Were you impacted by the slowdown in the real estate market?

Along with all other real estate development firms, Pharande Spaces faced all the ups and downs of the real estate market. We did not incur losses during the downturn, but we certainly did not experience much growth during the phase. Thankfully, the slowdown is now over and demand for quality housing is back with in force.

  • How many residential townships have you built till date?

We have built more than 25 residential projects to date, which include large integrated residential projects and two fully integrated townships.

  • L-Axis was Pharande Spaces’ first ultra-luxury township. Could you tell us more about the latest township you announced?

L-Axis is definitely one of the largest luxury projects we have launched. More recently, Pharande Spaces launched Puneville, a one-of-its-kind ultra-luxury township at Punavale in West Pune. The project is being developed on the 50-acre plot of a de-notified SEZ. The location in the heart of West Pune is literally perfect, being one kilometre from Wakad and with ready access to Aundh and Hinjewadi and further on to Lonavala and Mumbai via the Pune-Mumbai Expressway.

Puneville is a top-of-line luxury residential project designed on the lines of a luxury resort by Aedas, the global award-winning architects who have master-minded Venetian style hotels in Las Vegas and Macau as well as the Financial Centre in Shanghai and Marina Bay Sands at Singapore. Aedas ranks second among the world’s top architectural firms and will bring its full expertise to bear on Puneville. This project is by far the best in the country and incorporates every conceivable luxury feature, and outshines anything so far seen in residential real estate in Pune.

  • How do you view the real estate business at a personal level?

I am passionate about what I do, but have to admit that this business literally leaves no spare time at all. Relaxation is not even a factor.

  • Do you family members complain about your constant non-availability for them? This is a known syndrome among successful developers…

Quite possible, but I haven’t heard the complaints because I’m constantly on the phone.

  • Where do you and your family go for vacations? Do you have any favourite destination?

We have explored the world, mostly in context with my constant search for architectural inspiration for our projects. During these trips, my family members certainly enjoy themselves. We are particularly fond of Turkey, Singapore, Malaysia, Greece and China.

(As featured in: The Realty Paper)

Be A Smart Property Buyer With A Pre-approved Home Loan

Anil-Pharande

 

 

 Anil Pharande, CMD – Pharande Spaces

Home buyers, and especially first-time buyers, would like to be in the best position to make their purchase once they have identified their dream home. The most challenging aspect of home ownership is invariably financing. Questions like which lending institution to approach, what loans should be applied for, how much loan to be applied for and how much time will it take for approval need to be answered.

ApprovedStamp

The best ‘be prepared’ move on this front is to become pre-approved for a home loan. Doing so means that this tricky and time-consuming aspect of home purchase has already been dealt with, and that one can enter the market focused squarely on the best options. Getting pre-approved also puts you in the strongest possible place when it comes to negotiating the best deal.

 

What is the difference between loan pre-qualification and pre-approval?

Pre-qualification for a home loan is more or less like an educated estimate provided by the lending company. They will be letting you know the type of loan you could qualify for, and the maximum amount. The estimate is usually based on your financial history, loan eligibility and buying power. A pre-approval, on the other hand, is a written confirmation by the lender.

Before handing over the pre-approval certificate, loan officers will completely access your employment and remuneration information and do a complete ‘credit-worthiness’ check. This involves collecting all the data related to your past and current debts, repayment history, disposable income, credit card record, etc. and running it through software that will calculate whether you could be a likely candidate for approval.

How to secure a pre-approved home loan?

While seeking to become pre-approved, it is always best to approach a lending company that you know or can be referred to by a friend, colleague or family member. The lender needs have the assurance that you are a credible borrower. However, do not stop searching after you have met the first possible lender.

Ask around and look for the lending institutions that that provide the most competitive interest rates and are known for their helpful customer service. The loan officer from the identified lending institute will then pay you a visit and help you streamline your financial statements so that you become ready to discuss your bank statements, investments, holdings, salary slips, income tax returns and other information related to your finances. This basically starts the process which will end with you becoming a pre-approved borrower.

What good will a letter of pre-approval do?

Firstly, a pre-approval letter lets you know the exact budget range you should be searching in. This helps you stay in sync with your financial reality and keeps you from allowing your focus to stray to properties that you cannot afford. Secondly, having a pre-approval letter means that you can grab an offer immediately when it comes across and is in your budget range.

The letter states that the finances are ready when you choose to ask for them. Important Note: it is highly advisable to work with lenders who have the ability to provide customized pre-approval letters, inclusive of the maximum purchase price. Sellers could get greedy if they see a greater loan amount than their quote.

Getting pre-approved for a home loan is a crucial step that can put you in the best possible position in the home buying process. It will give you both peace of mind and keep you focused on what what to look for and what to avoid in terms of affordability.

About The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran.

Gudi Padwa: The Festival of Renewal and Property Investment

Anil-Pharande

 

 

Anil Pharande, CMD – Pharande Spaces

India is a country of myriad traditions and festivals that are not only times of celebration but in many cases also major investment decisions. As a result, many market segments are also aligned to these periods. The Gudi Padwa festive season is among the periods of intense real estate market activity, because this period is traditionally seen as one of renewal and forward planning.

Gudi Padwa is a celebration of the coming of spring, during which nature once again delivers its gift of abundance after the largely barren winter months. In fact, this period is celebrated by almost every culture in the world in some form or the other. But probably nowhere with as much joy and fervour as in India, which is a country with very strong agrarian roots. It is no accident that Gudi Padwa coincides with many festivals all over India, from Baisakhi in Punjab, Puthandu in Tamil Nadu, Yugadi in Andhra Pradesh and Vishu in Kerala.

The cross-linkage of Gudi Padwa with real estate purchase is by no means a latter-day phenomenon – this trend has been in evidence since historical times. India is a country where certain times of the year as seen as very auspicious for any activity related to investment and wealth creation. A self-owned home is the biggest and most important investment for most Indian families, and the Gudi Padwa festive period invariably sees significantly increased property purchase activity.

This year, Gudi Padwa coincides with many other favourable market dynamics. Very much in keeping with the spirit of spring which Gudi Padwa celebrates, India has emerged from a prolonged period of political uncertainty and economic doldrums. A strong and resolute government has taken charge, and the Indian economy is visibly reviving. Across the country, Indians have put job insecurity and indecisiveness about their future goals behind them. However, the property market has not yet picked up concurrent pace, resulting in a very favourable scenario for home seekers this Gudi Padwa.

Depending on how the property market is behaving, developers roll out various offers and incentives to encourage buyers during the Gudi Padwa season. This year, such offers are going to be plentiful, but a more important dynamic we will see is that many developers who had refrained from lowering their rates may do so selectively this year under the guise of festival discounts. Without a doubt, the tradition-fuelled upswing in buyer sentiments must be harnessed during Gudi Padwa.

More than ever, home seekers intent on making their purchase this Gudi Padwa need to be guided by the right fundamentals. It is important to understand that when it comes to freebies and offers, the real estate market is no different from any other kind of market – an attractive offer only makes sense if it is attached to the right product. Considering the magnitude of investment one makes into a home – and also the purpose of this investment – it is very important to ensure that one is buying what one really wants and needs.

One of the best ways to maintain a clear focus while buying a home in a festive season is to make a list of the merits and demerits of every option one has short-listed first. Given the specific nature of home purchase, sufficient weightage must be given to location, the reputation of the developer, the facilities and amenities available, and of course overall value for money. If all these check out positively and are backed by an attractive offer or discount, one is on the way to making a good choice.

About The Author:

Anil Pharande is Chairman of Pharande Spaces, a leading construction and development firm that develops township properties in Western Pune. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer in the PCMC area offering a diverse range of real estate products catering especially to the 42 sectors of Pradhikaran.