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Fixed Maturity Plan | TopPropMart

Fixed Maturity Plan

Mutual Fund houses have been forcefully pushing these plans to layman financial specialists promising wellbeing of capital and unsurprising returns.

The previous week, Essel Group of organizations (Zee) defaulted on the reimbursement of head on its obligation that had been bought in by numerous FMPs including Kotak MF, HDFC MF, Aditya Birla and ICICI Prudential. According to some reports close to Rs. 1,400 crores of such instruments are in default risk. As an investor how should one avoid such risks.

Invest only in debt issued by the Government of India or even from a pessimistic standpoint AAA appraised blue chip organizations, which structure some portion of the record like Nifty50 or Sensex 30. The distinction in yield between these protections and FMPs are in the tune of 150-200 bps, which isn’t proportionate with the dangers in question. Abstain from getting influenced by “deals talk” of the store houses who will utilize all way of past execution to get you to put resources into them. Thus it is less risky with Tier 1 Banks. Tier 2 Banks & Cooperatives should be avoided.

Invest in hard resources like commercial real estate where the consistency of incomes through lease is coordinated by the capital security managed by the land underneath. A business property won’t fail like an organization. There will consistently be a purchaser for it. Truly, the worth may vacillate and deal may require some serious energy, yet capital isn’t completely in danger.

Source: https://economictimes.indiatimes.com/wealth/invest/mutual-fund-fmps-hit-by-defaults-what-investors-should-know/articleshow/68860744.cms?from=mdr

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Commercial Property Interest Rates & Yields

Commercial Property Interest Rates & Yields

The Reserve Bank of India has now raised financing costs by 25 basic points (1%=100 bps) second time in succession in their every other month money related arrangement audit. Yesterday’s expansion has taken the repo to 6.5%, which implies that it is currently costlier for banks to obtain cash from the RBI.

The entirety of a bank’s liquidity needs is met through current and investment account deposits or different types of capital. Banks obtain from RBI at short notification for a scope of liquidity needs much like a working capital advance that organizations take from banks. At the point when RBI builds the REPO rate, this expense goes up straightforwardly influencing the overall revenues for banks. RBI increases rates to flush out liquidity in the system.

A rate increment disincentives borrowers to obtain more, decreasing cash supply which in addition to other things helps in controlling swelling. A higher loan fee additionally pulls in outside speculation, which builds the interest for the household money. With rupee being one of the most exceedingly awful performing monetary forms in 2018, this is something that the RBI is hoping to oversee through higher loan fees.

Commercial Real Estate is an advantage class that exchanges on yields (likewise called ROI or capitalization rate or top rate). A yield is only Rent/Purchase cost. Notwithstanding, in contrast to a bond, the property additionally acknowledges in esteem (capital appreciation). A financial specialist, along these lines, needs to assess the absolute come back from the property as Yield + Capital Appreciation. The yield on any instrument is determined as the risk-free rate in addition to a premium. Since government securities are sans chance (the legislature can basically print more cash to pay and in this way conveys no hazard) the premium is zero. The hazard premium on different instruments relies upon the risk related with those specific instruments. For instance, a security given by an AAA appraised organization like HLL or Infosys will convey just a slight hazard premium though a security given by a BBB evaluated organization will convey a higher risk premium.

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Midsegment Housing will Continue to Drive Indian Real Estate Market!

Midsegment Housing will Continue to Drive Indian Real Estate Market!

Union Finance Minister on November 6, 2019, announcement to set up a Realty AIF to the tune of Rs. 25,000 crore to complete stalled projects is likely to give a new lease of life to the sector. But some of the trends are unlikely to change. Real Estate experts are of the opinion that it is the demand for affordable housing, which will continue to rule the roost for the next few years as noticed over the recent past. “We have received tremendous response from customers during the festive season. In the 45 day season, our bookings have doubled as compared to the last festive season. The bulk of the demand is for affordable and mid-segment housing, which is also our strength. In the future too, we will continue to focus on this segment,” said Yash Miglani, Managing Director, Migsun Ltd. which is developing several properties across Noida, Greater Noida and Ghaziabad.

Not only Migsun, but the entire real estate seems to be focusing on the affordable segment.

According to a recent research report, real estate developers are expected to deliver over 4.5 lakh affordable housing units in the coming 15 months. While the Mumbai Metropolitan Region would get homes delivered to the tune of 2.45 lakh, the NCR is expected to deliver over 2 lakh units in the next 15 months.

“The largest chunk of demand is for affordable apartments,  not just in tier II and III cities, but even in metros. This is one of the reasons that we are focusing and building our strategy around the affordable housing segment.” Signature Sattva, which is one of the latest entrants in the realty sector is developing an affordable project in Alwar (Rajasthan) and is also set to foray in the Mumbai Metropolitan region soon.

“Affordable Housing is undoubtedly the key driver of housing sales, but the National Capital region being the hub of new-age entrepreneurs and wealthy people, we are witnessing robust response to our luxury offerings too,” Mr. Jain added.

Rise Group is a leading name in the realty arena in Delhi-NCR and is developing several projects in the region including luxury villas in Greater Noida West.

The Government has announced a slew of measures in the last couple of months in the favor of Real Estate sector which includes realty AIF of Rs. 25,000 crore, linking home loan rates to repo rate or any other external benchmark approved by RBI and upfront capitalization of PSBs.

The government had also announced an additional income tax deduction of Rs. 1.5 lac from Rs. 2 lac to Rs. 3.5 lac for properties up to Rs. 45 lac in its budget. Following these important measures initiated by the Government of India, the real estate sector is hopeful of a strong showing in the coming months.

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Rise of Coworking Space on 2020

Rise of Coworking Space on 2020

As Business Keeps Growing, A Shared Office Can Become A Viable Option For Your Scaling Team. A Flexible Workspace or Co Working Site Gives You the Benefits of a Centrally-Located Business

The growth of co-working space sector is set to spread to new geographies in 2020. The co working sector has ridden the peak of a wave for the past two years with demand increasing by almost 100% and market supply more than ever before. 2018 and the 1st Qtr of 2019 showed significant shifts in the trend with an increasing demand by corporate clients showing their interest flex space. Simultaneously, real estate developers and landlords are also taking a greater interest in the sector in the face of this rise in demand. A combination of new ways of working, multi-location access, and activity-based settings are taking over the traditional offices, paving way for modern workplaces.

The Indian real estate market reaction to the advent of co-working spaces will result in a greater demand for office spaces focused on flexible leasing terms. So in the coming time, real estate developers, property owners, and managers would prefer to rent out a major part of their total space as flex workplaces. As per a recent survey report, the total space leased by shared workplace operators is expected to stand at 10-12 million sq. ft. by 2020.

The co-working space nowadays more automated than before. Access cards, management software, attendance system, automated invoices, etc. have minimized the human interface in the management of the co-working space. By 2020, workplaces will be designed as technology integrated space. Millennial are always looking for high quality, high speed, reliable and covetable products and collaborative technology is required to meet these needs of today’s generation. New Technologies like The voice-activated assistant, wearable technology connected with the Internet of Things, will enable seamless connection, alliances, and accessibility from any place at any point in time.

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