Beware of these Real-Estate Scams

Even though the real-estate is thriving, there are still many property developers out there who operate in an unethical manner, they have no compassion for the hard-earned buyer as these property developers scam these prospective buyers in order to earn a quick pay-day and then disappear with the buyers hard earned money. Make sure you do not be a victim to these scams by being aware of these common scams that are happening in the real-estate industry.

1. Scams in real-estate that go after renters: This scam targets the people who are to looking to rent a house and the seller of the home. The con artist will take up pictures of the house from any builder’s website and post these pictures on rental websites to draw prospective renters. And you must be cautious when the rents of these homes are going for very less in a prominent location. These are all tell-tale of the fake real-estate agent looking for a quick pay day. Sometimes the con artists use this scam to acquire your identity. They even go to the extent of handing you fake house keys. It is advisable to conduct an effortless google search to check customer reviews if the property is genuine and listed every where with same price. Also enquire to the landlord to visit the property.  Above all don’t not rush into things like these, as this type of scam needs to be done quickly so the con artists can take your money and run quickly before they get caught.

2. Scams in Mortgage Finance: This type of mortgage scam affects both homebuyers looking to get a mortgage to buy a home and homeowners who may be looking to re-finance their home.  These fake mortgage lenders at times advertise on social media groups to help people obtain loans who have low credit or even no credit at all. Part of the scam involves charging the customer an application fee. They best way to tackle this scam is to use licensed mortgage loan providers as they register with the National mortgaging license system. Another tell-tale sign of the scam is the contact e-mail address will be from a public account like Gmail, Yahoo etc. It is better to get the advice from your friends and families, talking to local banks and realtors to ensure to work with legitimate lenders.

3. We purchase home for cash scam: There are only a few honest companies out there looking to buy homes for cash. Beware of this scam as it may involve you transferring the deed for your home but you are still left to pay the mortgage debt and other tax debt present in the seller’s name in the deed. To best to tackle scams like these to hire a lawyer to review the contracts and documents before you sign. If the buyer is adamant in not bringing in a lawyer then you might want to reconsider the offer.

4. Scams which target, sellers, realtors and homebuyers: This scam is much worse than the other as hackers hack into the e-mails that are sent by the seller, buyer, Title Company or realtor to use that information against the buyer of the seller. The con artists will advise you to wire the money as part of a transaction fee. Wire transfers are rarely done during a real-estate closing. If in case you do get an e-mail to wire money regarding a real-estate transaction. Then call the company to confirm the e-mail being sent. 

So beware of these common scams and it always advised to get in more information from sellers, legal agents and banks before making a well informed decision. 

Massive Down Payments why A Big No Home Buyer

There is nothing to point out wrong if you are giving a good amount as your down payment and you have back funds to support this investment in your future. As per the experts advice one should make at least 10 or 20 percent of the price as down payment. However in general we assume, we should pay as much as possible towards down payment so there won’t be any extra burden during paying the successive amounts as EMI.

Since you spent a huge part of your saving and now you are compromising with the quality of life style you are maintaining and off course on your savings as well. In addition to this, you don’t even know either your dream home is going to complete or not within the stipulated time frame and since you spent a huge which actually stopping you to withdraw from your decision. 

Why Massive Down Payments are Big No for Home Buyers

Here are top 3 reasons why you shouldn’t spend more on down payment while buying home also check out how to go about residential plots.

“Draining your Emergency Fund”

You should never buy property in hurry, spending your future savings as a down payment of large investment is completely a wrong idea to adopt. Suppose you lost your job or ended with a loose in business than it may create a terrible financial deficit for you. So it is always recommended to save at least 3 to 6 months expenditure as your emergency fund to avoid uninvited situations.

Note: Making Emergency Saving comes prior to buying or investing on real estate or even planning for retirements. If your future investment plans or home buying plans are affecting your safety then you need to step back first and concentrate on saving.

"Finale payment may scare you"

Don’t stand blind folded without calculating the expenditures of closing the deal or registering the property to your name. Taxes and other expenses can be 3 to 6 percent of the total cost of the property. If you spent all your money in a single huge down payment then you might be surprised by knowing the huge expenses that you are going to pay in the finale settlement.

If 20 percent down payment puts you on strain then there are good numbers of chances that the finale cost of your home will put you in deep strain. You may be ended up as a buyer who has a bigger home than he can afford.

"Ended with living in an empty home"

This is for sure that an empty home never looks like a home. What if you have spent all your funds on a massive down payment and living in a house with no sufficient appliance? This could be the perfect scenario of you, if you are moving from a small apartment to a bigger home with endless empty spaces. So what is the purpose of buying a bigger home if you are not able to afford a matched sized sofa for it?

So you handed all your money in making down payment, and now scratching your head to figure out how to pay EMIs. Potentially you have no money left for other things. Just imagine, how it looks like if you can’t afford a bed for your guest room? 

Well congratulations you are a home owner now, but without any retirement savings. Taking burdens more than you can afford is a destruction of your own happiness. 

TGS Layouts sells sizable plots in Bangalore with different down payment option and weekend offers.  If you are an investors or first time buyer then you must read more about this land developer http://www.tgslayouts.com/about_us

Cities that attract UAE's investment

What are the cities that UAE's are Looking for in India

The cities which attract the most of the foreign investment was surveyed by the renowned and leading international realty consultant, Cluttons. London was a historic place in terms of investment from the Middle East. New York has also been added in the list. In the survey where the residents of UAE investors were assessed regarding their trend of investing and the top three investment destinations, London topped the list being 13 percent. The next on the list was New York with 10 percent. But the surveyors have noted that New York appears more frequently in the top three preferred investment destinations in 2016.

The foreigners or the UAE investors are googling on Bangalore, Mumbai and Ahmedabad as the preferred destinations for investment.  The experts and the researchers feel that this is the result of the personal tie that the investors of the UAE feel towards India and the result of the government measures for FDI flow in India. This is the result of the Indian leadership visiting the UAE which has been the reason of the increased appeal of investment in India, opined Cluttons.

Among the 46 locations targeted by Cluttons in the study 50 percent of the investors are targeting residential or housing properties. A 22 percent of the investors are targeting the commercial properties and 28 percent targets the mixture of both the commercial and the residential properties. The survey pointed out that out of all the commercial investments that have been planned from UAE there is a stronger intention from the investors to focus on the retail sector with an equal stress on the office investments. It has been noted that among the less favored investment pastures outside the Middle East are the Hotel and Industrial investments in the year 2016.

Among the investors of the UAE London was the most preferred destination from the Gulf investors. In the Great Recession the values of the residential properties in London and across its prime central locations dipped down by an average of 20 percent between 2007 and 2009. The report from Cluttons said that post-recession till the present period the average property prices soared by 70 percent. 

The reason the experts cite that there is a huge demand of the NRI and other investors from the UAE investors is that there are restrictions of foreigners or people of different origin to buy land and property in many countries of the UAE. There was a continued high interest noted from the investors of the UAE in the commercial properties of UK from the investors of Middle East. The survey pointed out that a great majority of all these commercial property investment was London based with around 3.2 billion purchases in the city alone.

Abu Dhabi and Dubai remained to be the most preferred destinations in UAE regions among the investors of HNWI class. Dubai comes in the frequently mentioned top three investor’s destinations with thirty percent of the investors mentioning Dubai’s name in their top three priorities, according to the survey of Cluttons. 

Follow TGS Layouts in twitter to be updated on where to invest and how to invest in real estate market of India.

Land Pooling a much better option than land acquisition

Land is undoubtedly one of the most valuable immovable assets because its non-diminishing economic value increases quite few times when there is any infrastructure or social development in the surrounding areas. The cities grow in prospects and when the need for more infrastructure and public utilities become more poignant government has to take resort to acquisition of land owned by the private parties and citizens.

No doubt that land acquisition by the government and the local authorities has been a contentious issue and it is under the jurisdiction of the state government which generally follows the compulsory acquisition routes. In this case the compensation that will be paid for any piece of land is normally determined by each state and the municipality or the local authorities. But whatever may be the procedure of acquisition the state government have been noticed to acquire such land at a throw away price and have auctioned the land at a much higher prices to private parties. There are enough instances of these. 

The government has always been marginalizing the economic benefits arising out of the proceeds of the land. The original title holders of the land have always been marginalized. This kind of a scenario has made the government to go for alternative methods of land acquisition and also sourcing and developing land with more equitable distribution of the economic benefits to the land owners and all the parties which would allow the landowner to benefit from the development process.  In contrast let us look at the concept of land pooling.

Land pooling is aimed at a very efficient and equitable land development with all the interests being divided in a manner of equitable justice. The idea is to bring the uneven land distribution pattern of the fragmented land in to a larger holding of land parcel. After that the whole land parcel is developed and is subsequently returned to the original title holders applying a formula of deduction of a fair amount of land for development. The formula applied allows the authority to compensate for the development of the infrastructure and the services that were generated and added and allowing them to retain a part of the so acquired original land.  

It may seem complicated but this approach of pooling the fragmented land is a very practical and an effective way of achieving development while promoting simultaneous social justice as well.  Land pooling necessarily involves the active participation of the state as well as the central governments for policy formulation, approvals, notifications and formulating the operating norms.  It is up to the local agencies to create a proper and effective land valuation mechanism so that the landowners are willing to donate land.  

In this way the land pooling mechanism proposes to create an ecosystem of development with equitable justice through planned infrastructural development which would support the growth of the urban areas. This is also a way combining irregular land holdings in to larger and more developed stretches of land with social empowerment while simultaneously ensuring the sustainable development issues too.  

Not only that from the title perspective too, the land pooling system also proposes to create and conserve the land title and the ownership of the land too. In turn this also creates a transparent land registry system too which would eventually help in enhancing land revenues for the local authorities to undertake more developmental projects.  Thus the experts suggest that a more comprehensive solution to the contentious issue of land acquisition of India would be not to buy land but to pool it. No doubt the developed whole of the land with more infrastructure makes more value than the fragmented pieces of land.  

Great Noida Authority Cancels 100 Acre Plot of Unitech With Rs. 1055 Crore Due

There has been lot of payment and collection problems regarding the land allotted by the Greater Noida Industrial Development Authority. According to a GNIDA official the 100 acre land allotted to Unitech in 2006 still awaits payment. The developer has alleged to pay the installments despite the reminders given by GNIDA several times. The official sources reveal that the builder was sent several notices, warnings of cancelling the selling contract and yet the developer has failed to pay the installments. 

The land was allotted to Unitech to build a group housing society and now the GNIDA cancelled the land owing to the allegation made by the GNIDA that the developer owes more than Rs. 1000 crore and had failed to pay the installment in spite of the time given, over a decade. 

Along with the step taken for Unitech the Greater Noida Industrial Development Authority has decided to take action and be stricter with the other developers in the area owing money to it which is in the range of Rs. 4, 000 crore. The authorities feel that this is an amount that has affected the infrastructure development and has also led to a stoppage of the various public utility projects too. 

The CEO of GNIDA said that the land allotted to Unitech had happened in 2006 in the sector II of MU. In spite of the several reminders sent to the developer and even warnings of impending cancellation no installments have been paid. The official sources further remarked that in spite of these the developer has not paid any heed at all. Subsequent to this two notices of cancellation were issued and consequently a final cancellation notice was issued on the 18th November 2015 as reported by the official sources of GNIDA. The sources further said that the company owes over Rs. 1055 crores. GNIDA proposed to take possession of the plot in consequence of the cancellation order said one of the officials. The representatives of the developer Unitech reiterated that they did not receive any such intimation from GNIDA and so they can’t comment on this.  

The sources revealed that there are more than ten companies who have defaulted paying the instalments after the land had been allotted. The sources from GNIDA said that if the allottees who have defaulted in paying the installments decide to pay, they will be presented with a new schedule of payment plan. The GNIDA will subsequently work out the new payment plan, the new time frame and the number of installments they will be given to pay the balance amount. One of the senior officials of GNIDA said this, adding that if the developers still do not pay, more stringent actions will be taken like issuing lease deed cancellation notices. 

Amaravati – A capital city planned on farmlands

The land pooling scheme (LPS) to build the capital city, Amaravati for the new state of Andhra Pradesh after the bifurcation has been done is already complete. In that regard 3, 000 acres of land had been acquired from farmers which happened without much of a protest. This has taken the notice of many as this critical land acquisition happened without much of hassle while it’s a fact that the Land Acquisition Ordinance of the central government is still an issue of rage and deep rooted controversy. 

There are still many people who doubt that it’s the farmers benefit from the scheme which actually gives them back developed commercial and residential land ranging from about 900 to 1700 square yards of land for every one acre of land being surrendered. The farmers are further entitled to receive an annual compensation of Rs. 30, 000 to Rs. 50, 000 per acre of land. This of course will be paid with an annual increase of 10 percent for a ten year period. 

The state government would issue “Land Pooling Ownership certificates” for the month of December onwards once the plotting starts in the new capital Amaravati. Out of the total land of 33, 000 acres acquired, 8, 000 acres will go back to the original land owners. The remaining 15, 000 acres had been set aside for the open spaces, parks, ponds, lakes, open air auditoriums and other such common areas. The buildings of the state government, secretariat, Legislative Assembly, High Court, official accommodations, etc. will come up in just about the 8, 000 acres of land. This is the idea on the whole of Amaravati which is intended to be a green capital with lots of walkaways, open spaces and parks. There will be land apportioned for the corporates, banks and other entities who desires to establish offices in the capital region of Andhra Pradesh. The sources from the government said that these kinds of allocation will add to the creation of jobs per acre occupied by the government. 

Public view sought by Uttarakhand Govt. on Land Consolidation Bill

Dehradun:  The draft of the Land Consolidation Bill was submitted by the Land Holding Committee of Uttarakhand to the Chief Minister, Harish Rawat in Dehradun on Tuesday. On receiving it the Chief Minister reiterated that the government would seek public suggestions over the draft of the bill before sending it to the state Assembly for discussion and approval.
The government also stated that it would initiate processes and would take initiatives in making the people understand and be aware about what land consolidation is. The government would also seek suggestions from the general public to make the bill more exhaustive and inculcate any necessary changes needed and that would go on for three months before the bill is placed before the assembly.

The government is keen not to create any disadvantage to any section of the public by its legislature. That is the reason the government is making efforts to take public consent and suggestions before they make the legislation. Along with this the government has also planned to amalgamate the farm lands and wants to make sure that the farmers are at no disadvantageous situation as realty-developers are capturing cultivable-land after the law is passed or formulated, said the Chief Minister, Mr. Rawat.

Mr. Rawat also emphasized on the role of rural women in the households and in the economy of villages. He expressed his desire to empower the women of rural places and see that their participation and their role in land consolidation is kept intact and it helps the households and the economy at large.

In this context the government is also taking initiatives and is trying to get inputs from the villages of Uttarakhand too. In the first instance the government has shortlisted and identified 200 villages to spread the awareness about the laws of land consolidation, said the State Agriculture Minister Harak Singh. The government will find out ways to get suggestions about land consolidation from villages and the target sections to see that all interests of all the sections of society are being safeguarded.