Amit is a voracious writer and reader with experience in developing content for different niches. A friendly and down-to-earth person with a sense of humor, he is keen on offering factual and informative insights in his writings. He loves researching new developments in the industry and putting them in layman’s terms.
HONG KONG: Investors rushed back into Chinese property developers’ shares and bonds, sparking a strong rebound in the market on Tuesday. After a significant selloff in the previous session, the Hong Kong Hang Seng Mainland Properties Index surged 14%, and the CSI 300 Real Estate benchmark gained 8%, signaling the first monthly gain for the real estate sector after four months of heavy losses.
Country Garden and Country Garden Services, both listed in Hong Kong, rebounded impressively by 18% and 26.5%, respectively, effectively reversing the sharp declines from the day before. Country Garden’s dollar bond due in May 2025 also firmed to 21.675 cents, compared to 15 cents the previous evening. Shanghai and Shenzhen-traded bonds of the company witnessed significant gains as well.
The market rally was ignited by China’s top leaders’ commitment to bolstering policy support for the economy, particularly focusing on boosting domestic demand during the post-COVID recovery. Investors took notice of the change in tone concerning the property sector, speculating that further measures to stabilize the market might be imminent.
The statement by the Politburo, the ruling Communist Party’s top decision-making body, omitted the phrase “houses are for living in, not for speculation,” which led analysts to believe that Beijing might ease property restrictions in the near future.
Shares of major developers like Sunac China, Longfor Group, Seazen Group, and KWG Group all recorded substantial gains, making it the best day for many property stocks since November.
Despite the positive sentiment, analysts remain cautious, expecting any property easing to be limited and potentially targeted on a “city-by-city” basis. The overall market expectations were exceeded by Politburo’s statement, but experts believe that there is no quick fix for the property sector, with the central government likely to make only marginal adjustments to existing restrictive measures in major cities.
Morgan Stanley anticipates a “more sensible and forceful package” from policymakers, which could include easing second-home purchase restrictions in second-tier cities. The recent debt crisis in the property sector had investors worried, but the government’s pledge to support the embattled sector has instilled hope for a recovery.
OfficeBanao, a startup headquartered in Gurugram, has secured funding from three angel investors, which include former Meta India MD Ajit Mohan and former Colliers India CEO Ramesh Nair. The raised funds will be utilized by the startup to enhance its technology-driven platform, accelerate product development, and expand its workforce. OfficeBanao, founded in 2021 by Tushar Mittal, Akshya Kumar, and Divyanshu Sharma, offers AI-powered space planning, 3D walkthroughs, a wide range of product selections, and real-time collaboration.
In April of this year, the startup had already raised $6 million in seed funding led by Lightspeed. OfficeBanao brings together architects, contractors, designers, material suppliers, and office furniture providers to serve various commercial interiors and businesses of all sizes.
In recent developments within the proptech industry, Crib, another startup, raised Rs. 15 crores in its seed round co-led by We Founder Circle and Rebright Partners. Additionally, iDesign.Market, a SaaS startup catering to Interior and Construction Companies, secured $200,000 in pre-seed funding from notable entities like Jaipur Rugs and a consortium of angel investors, including PropTech expert Brigade REAP.
Last quarter, PeProp.Money, India’s largest and leading real estate marketplace raised seed fund from India Accelerator to expand nationwide.
Investing in real estate offers an attractive return on investment, especially over the long term. The pandemic had an impact on every industry, which caused the Indian GDP to shrink by 6.6% in 2020-21. In contrast to predictions, real estate showed remarkable resilience as an asset class by quickly recovering and currently experiencing a surge in demand.
Financial experts recommend investing between 10% and 15% of one’s gross income in order to ensure a prosperous retirement and achieve long-term financial goals. Many people are considering real estate investments as safe and long-term assets in these uncertain times characterized by stock market volatility. Such investments have numerous advantages, allowing investors to reap multiple benefits.
Most investment avenues are now vulnerable to the market’s invisible hand because of market volatility, an uncertain future, and banking failures, among many other factors. But, riding on a wave of housing demand, real estate has established itself as a bounce-back asset class, attracting massive investment from private equity and a variety of other sources.
Real estate investing has grown in popularity over time because it provides greater stability and higher returns than other asset classes. As a result of reforms such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST), real estate investment has become more transparent and appealing.
Real estate is a tangible asset that possesses enduring worth. It presents investors with the opportunity to generate rental income or sell the property at a premium. Additionally, it can serve as collateral for securing financing, thereby making it a secure investment comparable to gold. The demand for housing has increased as the world’s population has surpassed 8 billion. The value of real estate is expected to appreciate in a country like India, where there is an unprecedented infrastructure boom and urbanization. Foreign Direct Investment reached a substantial $26.17 billion between April 2020 and December 2021. Notably, India has emerged as one of the top 10 housing markets worldwide in terms of price appreciation, mainly due to rapid urbanization and population growth.
The real estate market is predicted to increase from Rs. 12,000 crore (US$1.72 billion) in 2019 to Rs. 65,000 crore (US$9.30 billion) by 2040. In India, the real estate market is anticipated to grow to US$ 1 trillion in size by 2030 from US$ 200 billion in 2021 and to account for 13% of GDP by 2025. Retail, hospitality, and commercial real estate are all experiencing significant growth as well, which is crucial infrastructure for India’s expanding needs.
In the first nine months of FY22, the top eight cities in India’s real estate market saw land deals totaling more than 1,700 acres. From 2017 to 2021, there were 10.3 billion dollars in foreign investments in the commercial real estate market. Following the replacement of the current SEZs Act, developers anticipate a sharp increase in demand for office space in SEZs as of February 2022.
The influx of investors is accelerating the real estate growth trajectory to new heights. Investors are drawn to real estate because it can withstand the uncertainty of the stock market. Real estate offers a sense of security because of its tangible nature, which protects it from market instability. Real estate investing also has the added benefit of tax advantages, solidifying its place as one of the safest avenues for capital preservation and returns.
The nationwide lockdown brought on by the pandemic in 2020 caused the real estate market to slow down. Real estate stood out, demonstrating its resilience and amazing capacity to recover while many economic sectors were hit hard. Real estate experienced exponential growth across tier 1, 2, and 3 cities despite the difficulties encountered, such as elevated construction costs and a significant 225 bps hike in the repo rate. ICRA reports predicted that Indian real estate firms would raise Rs. 3.5 trillion in 2022 through infrastructure and real estate investment trusts.
Post-pandemic, people eagerly rushed to purchase properties. The middle class and upper middle class made significant investments in real estate, boosting its value and supporting the sector, after having saved money during the pandemic. The sizeable private equity investment that India’s real estate has attracted is another factor that contributes to its stability and allure. A Colliers India report claims that during the first half of 2021, when the government was gradually removing the lockdown measures, the Indian real estate market saw a significant inflow of private equity investments totaling US$ 2.9 billion.
The real estate industry has long been known for its fierce competition and ever-changing landscape. Agents and developers constantly strive to find innovative ways to market their properties and captivate potential buyers. In recent times, the advent of mobile augmented reality (AR) has emerged as a game-changing tool, revolutionizing the real estate experience. By seamlessly blending digital information with the physical world, mobile AR is reshaping the processes of property search, presentation, and sales.
One of the most profound impacts of mobile AR in the real estate sector lies in its ability to enhance the property viewing experience. Gone are the days when prospective buyers had to physically visit each property to grasp its layout, features, and ambiance. With mobile AR, users can now embark on virtual property explorations from the comfort of their own homes. By simply directing their smartphones or tablets toward a property listing, users unlock a treasure trove of information, including detailed floor plans, interactive 3D models, and even immersive virtual walkthroughs. This not only saves time and effort for both buyers and agents but also creates a more engaging and immersive experience.
Furthermore, mobile AR has become an invaluable tool for property developers and architects. By harnessing the potential of AR technology, they can construct interactive 3D models of their projects, allowing potential investors and buyers to visualize the end product long before construction commences. This proves particularly beneficial for off-plan properties, where decisions are often made based on nothing more than blueprints or artistic impressions. Mobile AR empowers developers to present an accurate and tangible representation of their vision, instilling confidence in potential buyers and driving sales.
Beyond enhancing property viewing experiences, mobile AR is reshaping the landscape of property marketing. By integrating AR elements into their marketing materials, agents can create captivating and interactive content that truly captures the attention of potential buyers. Static images are now being replaced by dynamic, 360-degree virtual tours, enabling users to explore properties in a more immersive and realistic manner. Furthermore, mobile AR allows for the creation of interactive property brochures and location-based advertisements, accessible to users as they explore specific neighborhoods or areas.
The advancements in mobile AR technology also hold immense potential for data analysis and decision-making within the real estate industry. By collecting and analyzing data from AR interactions, agents can gain invaluable insights into user behavior and preferences, which can inform effective marketing strategies and even influence the design and development of future properties. For instance, if a particular feature or layout proves exceptionally popular among users, developers may opt to incorporate it into upcoming projects, resulting in the creation of more desirable and marketable properties.
In conclusion, mobile augmented reality is disrupting the real estate industry, offering an array of benefits for agents, developers, and buyers alike. With its capacity to enhance property viewing experiences, revolutionize marketing strategies, and provide invaluable data insights, mobile AR is reshaping the way properties are perceived, marketed, and ultimately sold. As technology continues to evolve and become increasingly accessible, mobile AR is set to become an integral part of the real estate landscape, shaping the industry’s future for years to come.
Servicing numerous loan accounts is a difficult task for anyone. Managing finances and keeping track of the balance of outstanding loan amounts can become very challenging, in addition to the risk of missed EMI payments. Additionally, if something goes wrong, it affects your creditworthiness and your capacity to borrow money at a time when you most need it.
If you find yourself in this situation, you should think about debt consolidation, where you can combine all of your existing loans to pay off all of your existing unsecured debt with one new loan. It is a well-liked method of managing debt and has lots of advantages for the borrower.
Why opt for an unsecured debt consolidation loan:
Reduces the cost of interest:
Even if your loans are mostly low-interest ones, consolidating unsecured debt can help you save money overall on interest payments. By choosing a new loan with a shorter term, you can save money on interest and pay off your existing loan sooner.
For instance, you will save on interest costs if you combine all of your credit card debt and unsecured loans into a single personal loan. This will enable you to repay the loan more quickly.
Maintaining Your Credit Score:
Maintaining multiple loans lowers your credit utilization ratio, which has an effect on your credit score. Additionally, missed and late payments have a signizicant negative effect on your credit score.
You can simplify the loan repayment process by consolidating all of your debt into a single loan account. You can improve your credit score over time by making consistent and timely repayments and ultimately paying off the loan. It will considerably simplify the process of getting your next loan approved.
Reduce your monthly payments:
Your overall monthly repayments are now more evenly spaced out over a new and longer time period, in addition to savings on interest costs due to the reduced interest rate burden. Your monthly repayments are decreased as a result, and from the perspective of your monthly budget, you have more flexibility to manage your money more effectively.
In addition, it streamlines your finances and saves you money by preventing penalties, removing repayment hassles, and making repayment simpler.
Consolidating Debt with a Personal Loan
A personal loan is the best choice for you and works well with your debt consolidation plan. Being an unsecured loan type, you have more planning freedom when it comes to paying off all of your credit card and other loan obligations as well as consolidating your debt.
There are two different ways that debt consolidation with personal loans works. Either you pay your creditors directly, or the new lender will do so in return for pre-scheduled payments in the form of monthly EMIs, for all of the debt you currently owe.
Reasons to obtain a personal loan for debt consolidation:
Loan terms and repayment options are flexible.
You can choose the personal loan EMI in accordance with your ability to repay the loan over the course of up to 60 months.
Competitive Interest Rates
Borrowers with good credit have a better chance of obtaining a debt consolidation plan from lenders at a lower interest rate because personal loan interest rates are competitive.
Quick loan approval and disbursement
Personal loans are instantly approved and disbursed by lenders in comparison to other loan types, provided the requirements for personal loans are met. It aids in the swift and easy execution of the debt consolidation plan.
Collateral Free and Unsecured
The fact that personal loans are unsecured and borrowers are not required to put up any collateral for the loan is one of their biggest advantages. The amount of the loan is determined by the borrower’s income status, ability to repay, and credit rating.
Easy Documentation Process
Both salaried and self-employed professionals can apply for personal loans, and the paperwork is very simple. You only need to provide three sets of documents to apply for a personal loan: proof of identity, proof of residence, and documents affirming your financial status.
You can easily keep track of your loan information and repayment schedule using the online tools provided by personal loan lenders, reducing the possibility of skipped EMI payments and penalties.
It is very efficient to consolidate debt through a personal loan in order to reduce the number of high-interest debts you are servicing and simplify your payments. Nevertheless, you should consider the following things before deciding on a debt consolidation strategy involving a personal loan:
Your monthly debt payments shouldn’t exceed 50% of your total income.
To negotiate a low-interest personal loan, you should have good credit score.
The personal loan should be repaid in five years.
To make debt payments, you should have a consistent source of income.
Most importantly, once you have obtained a personal loan for debt consolidation, the following steps should be taken to ensure that you do not find yourself in a similar situation again:
Always make your EMI payments in full.
Pay your EMI before or on the due date every time.
Never skip an EMI payment.
Don’t take out any new loans until the current ones are fully paid off.
Manage your monthly spending while placing the EMI payment at the top of the list.
Finally, you should be aware that debt consolidation only makes the journey toward loan repayment easier, it does not actually end it.
There are options available to help people and businesses who are having trouble repaying their current loans. Restructuring and refinancing loans are two of the most popular options for loan modifications.
Although they both provide comparable advantages, their methods of operation and duration are different. This article compares loan restructuring and loan refinancing, explains how each type of loan modification functions, and when you should consider each choice.
Loan Restructuring and Loan Refinancing: What are they?
What is Loan Restructuring?
It is the procedure for changing the terms of a loan. This can include extending the repayment period, lowering the interest rate, or changing the loan structure. Loan restructuring is frequently used to make a loan more affordable to the borrower.
This might entail extending the time frame for repayment, decreasing the interest rate, or altering the size of the monthly payment. Restructuring is frequently carried out to lower interest rates or prevent default on a loan.
What is Loan Refinancing?
It involves taking out a new loan to settle an earlier loan. This can be done to obtain a lower interest rate, obtain a different repayment plan, or access the property’s equity. Refinancing a loan is frequently done to reduce interest costs or to combine several loans into a single payment.
This is also referred to as a personal loan balance transfer. It’s possible that the terms of the new loan will differ from those of the existing loan, including the interest rate, length of time until repayment is due, and amount of the monthly payment. Refinancing can be used to lower a loan’s monthly payment, the total amount of interest paid on the loan, or both.
Difference between Loan Restructuring and Loan Refinancing
Restructuring a loan generally refers to changing the terms of an existing loan, whereas refinancing a loan typically entails taking out a new loan with new terms to replace an existing one.
There are numerous factors that could influence a borrower’s decision to restructure their loan rather than refinance it. For instance, they might no longer be able to qualify for a new loan as a result of a change in their financial situation, or they might not want to pay the additional fees and costs that come with getting a new loan.
A loan can be restructured by altering the interest rate, extending or reducing the repayment period, or changing the repayment schedule. The total amount of interest paid over the course of the loan may rise as a result, but the monthly payments may become more manageable.
The monthly payments are typically lower when a loan is refinanced because a new loan with a lower interest rate is taken out. You have the option of switching lenders by using a personal loan balance transfer.
Therefore, it’s crucial to take into account all of the relevant factors and select the option that best suits your particular needs and circumstances when deciding whether to restructure or refinance your loan.
Deciding on Loan Restructuring or Loan Refinancing
Restructuring a loan and refinancing an existing loan have some significant differences. In general, restructuring refers to negotiating new terms with your lender, whereas refinancing entails taking out a new loan to replace your current one.
You should consider the advantages and disadvantages of each option when applying for a personal loan before choosing one.
If you are having difficulty making your current payments, loan restructuring may be a viable option. You might be able to get a grace period on payments or a lower monthly payment by renegotiating the terms of your loan.
If you can get a lower interest rate than what you’re currently paying, refinancing your loan might be able to save you money. Additionally, it might give you the option to lengthen the loan’s term, which would reduce your monthly payments. However, you will need to apply for a new loan.
Loan restructuring and loan refinancing are the two most distinct debt-related terms. Refinancing is the process of replacing an old loan with a new one, whereas restructuring is the process by which a borrower renegotiates the terms of their current loan.
Both options may be advantageous for borrowers who are having trouble repaying their loans, depending on the situation.
The Rent Control Act in India is the primary legal instrument that governs rent regulation, landlord rights protection, and tenant rights.
Summary of the Rent Control Act
The legislature enacted a national Rent Control Act in 1948. It controls the guidelines for renting out a property and makes sure neither the rights of the landlords nor the tenants are violated by each other. It should be noted that each state currently has its own Rent Control Act, and while they are generally similar to one another, they do have a few small variations.
The 1948 Act was quite restrictive and pro-tenant, which has made some sectors of the real estate market struggle to expand. Despite inflation and rising property values, some properties that have been rented out since 1948 continue to pay the same amount of rent.
In an effort to prevent the property’s value from declining, the Central Government attempted to change the Act in 1992 through a proposed model. The sitting tenants, unfortunately, resisted the adjustments, so they did not go into effect.
In India, renting or letting out any property for residential or commercial purposes is subject to a number of laws and restrictions, including: – According to the legislation, it is necessary for the two parties to have a written agreement outlining all the terms and circumstances of the tenancy.
In the following circumstances, an agreement formed without being explicitly set forth in writing is not a binding contract:
All modifications, irrespective of the nature of the correction, must also be made in writing.
Both the landlord and the renter must sign the document and both parties’ signatures must be dated.
The contract needs to be registered and stamped.
The obligations of both the landlord and the tenant cannot be enforced or legally protected in the absence of a formal rental agreement.
As a result, it is generally advisable to get the assistance of a legal professional when creating such an agreement due to the numerous complications involved, especially in commercial leasing.
The Rent Control Act was created to safeguard both tenants’ rights as well as those of landlords and their property. The Act grants the tenant a few key rights, including the following:
Right Against Unfair Eviction: In accordance with the Act, the landlord is not permitted to remove the tenant without a valid reason or justification. Each state has a slightly different set of eviction laws. In some places, the landlord must go before the court and request a court order before they can evict a tenant. If the renter is ready to accept any adjustments to the rent, he or she cannot be evicted in several states.
Fair Rent: The landlord is not allowed to demand excessive rent while renting out a home. A rental property’s appraisal must take its value into consideration. The tenant may go to court to seek relief if they believe the amount of rent being requested is excessive given the worth of the property. Typically, the rent should range from 8% to 10% of the total value of the property, which includes all costs associated with building and property improvements.
Essential Services: The renter has a fundamental right to use vital services like power and water supply. Even if the renter has not made rent payments for the same or a different property, the landlord does not have the right to terminate these services.
Landlord’s Legal Rights
The property is always the focal point of a rental agreement, and it must be safeguarded from unfair exploitation. The following rights belong to the landlord under the Rent Control Act:
Right to Evict: Each state has a varied set of laws governing the ability to evict a tenant. Meaning that in some places, a landlord has the right to remove a tenant for legitimate, personal reasons such as wishing to move in. In Karnataka, such a justification is not a valid ground for eviction. In most situations, the landlord must file a court petition to evict the tenant. Additionally, before going to court, the landlord is required by law to give the tenant adequate notice.
Charge Rent: As the property’s owner, the landlord is entitled to charge rent to a tenant. As there is no legal law establishing a cap on rent, the landlord is free to keep raising the rent fees as he sees fit. Hence, it is wise to include the amount of the increase and the conditions of the increase in the rental agreement itself in such circumstances. The rent often goes up by 5% to 8% on a yearly basis.
Temporary Repossession of Property: The landlord has the right to temporarily take back possession of the property in order to repair, change, or improve it. Nonetheless, such alterations to the property must not do the tenant any harm or seriously interfere with his tenure.
Absence of the Rent Control Act’s application
When a property has been rented out, there are some circumstances in which the Rent Control Act is not applicable. As follows:
Property leased to private limited or public limited firms with a paid-up share capital of Rs. 1 crore or more.
Property leased or subleased to banks, corporations created under state or federal law, or public sector operations.
Property rented to foreign businesses, missions abroad, or international organizations.
6 Steps to Rent Commercial Property in India
Since there is fierce internal rivalry in the Indian real estate market, rental agreements must be carefully negotiated. You must be aware of all applicable laws for your type of business and the appropriate questions to ask.
Verifying title ownership
Always make sure you have full knowledge of who owns the property, therefore, having access to the title deed is necessary to verify the rent. Before entering into a contract with the landlord, conduct more research to make sure there is no sub-rent or other type of rent associated with the property.
Plans approved and Powers of attorney (PoA)
It is generally essential to check the title deed and commencement certificate given by the relevant authorities if the property you are renting is under construction. Make sure to verify the occupation certificate before renting out commercial space on a built-up property. In the case of indirect rent, it’s also crucial to verify whether any kind of power of attorney exists.
A suitable rental agreement
Make sure the rental agreement is adequate based on operations before engaging in any type of mutual commitment with the landlord. Whether it is a rental leasing agreement or an agreement for co-working office space, be precise about the type of rent.
Verification of Income Tax and Mortgage
In the case of a business agreement, it is usually advisable to investigate the landlord’s tax history to see whether there are any current legal problems or investigations. You can use this to find out if the property in question falls under the Development Control Rules’ “business” or “residential” classification under the Income Tax Act of 1961. You can later be assessed a TDS if there is any ambiguity in this classification.
Checking the property agent’s history
When hiring a real estate agent, it’s crucial to research his credibility. Past rental agreements and word of mouth are other good ways to learn more about the agents. Demand that the agents provide information on previous clients they have served. Their reluctance to do so may be a blatant sign of past dishonest behavior, if any.
Validity of the Rent Agreement
A business leasing agreement must have the following key details in addition to other clauses:
Date of commencement and termination
The total cost of the rental as well as the details of the deposit.
Renewing lease conditions
The names of each party and their signatures.
Required documents for a commercial lease agreement?
Aadhar card, receipt, or any other kind of official identification
The original passport must be submitted; if it is not, an Indian Power of Attorney must be shown if the ID is proving another person for the registration.
Proof and the Kind of Business Established
Authentic copy of ownership documentation for the rental property
Approvals from the government, if any Two recently taken passport-size photos.
Print the Business Rental Agreement on the recommended-value stamp paper.
Articles of Association, Memorandum of Association, If any
shareholder and listing agreements, if any
bonds and dealership proofs, if any
associations of person’s understanding, if any
What steps must be taken to utilize the commercial rental agreement?
Each party, including the guarantor, shall receive a copy of the completed document. Given the length of the paper, each side should be given the chance to read it, which could take some time.
The Business Rental Agreement must be printed on “non-judicial stamp paper” or “e-stamp paper,” both of which are readily available in any state. The “duration” of the rent and the state in which it is implemented would determine the value of the stamp paper.
After printing the rental agreement on stamp paper or e-stamp paper, as appropriate, both parties must sign it. Moreover, a copy of the Commercial Rental Agreement should be kept by each party.
The Commercial Rental Agreement must be registered if the rental length is more than 11 months. For the purposes of registration, both the lessor and the lessee must visit the sub-registrar’s office.
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Yashovardhan Birla, a scion of the renowned Birla family, has emerged as a remarkable individual with his own unique achievements. Beyond his family’s wealth and influence, he has established himself as a capable leader and entrepreneur in the corporate world. Let’s delve into Yashovardhan Birla’s journey, educational background, net worth, and dedication to fitness.
Yashovardhan Birla, also known as Yash Birla, is the head of the Yash Birla Group, a prominent business conglomerate based in India. Born on September 29th, 1967, in Mumbai, India, Yash faced profound tragedy in 1990 when he lost both his parents and his sister in a devastating accident. Despite the immense personal loss, he took over the reins of the family business at the age of 23 while pursuing his business administration studies in the United States, displaying remarkable leadership skills and determination.
Yash Birla received his secondary schooling in Mumbai before enrolling at an HR college in the same city. Later, he pursued a degree in Business Administration from a university in the USA. However, Yashovardhan Birla has also faced legal challenges in recent years, as he was declared a willful defaulter by the UCO Bank for unpaid loans from his now-defunct company, Birla Surya Ltd. He has been engaged in legal battles to resolve this issue.
In addition to his entrepreneurial endeavors, Yashovardhan Birla is renowned for his dedication to fitness. Despite being 51 years old, he remains a fitness icon, maintaining an impressive physique and leading a healthy lifestyle. Notably, he abstains from alcohol, prioritizing his physical well-being.
Yashovardhan Birla’s Luxurious Lifestyle and Net Worth
Hailing from a wealthy family, Yashovardhan Birla enjoys a lavish lifestyle, boasting luxurious properties both in India and abroad. One of his notable possessions includes a mansion in South Mumbai. He is also an avid car enthusiast and can often be seen driving high-end luxury vehicles. As of late 2022, Yash Birla’s net worth stands at an impressive $5 million, according to Birla Healthcare.
Yashovardhan Birla’s life exemplifies resilience, determination, and entrepreneurial spirit. Beyond the legacy of his family, he has carved a distinct path for himself, becoming an inspiration to many through his accomplishments in business and commitment to fitness.
When looking for a home, you can come across too-good-to-be-true bargains at auctions or “distressed properties,” which are typically listed at a price significantly below the market. Despite how alluring they may seem, you should think twice before buying a property. Instead, find out why the seller is trying to sell it quickly and whether it would actually be a wise and lucrative investment.
First and foremost, you must comprehend what distressed possessions or sales are.
What is a distressed property?
Banks are permitted to sell “repossessed” or distressed properties at auction in order to recoup their losses under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act, 2002. When a property owner doesn’t repay a loan, these losses take place. A property is classified as distressed when the bank seizes it for the purpose of selling it for less than market value. The banks reclaim the outstanding loan against the owner using the sale revenues of the property.
Banks typically use an official advertisement that specifies the auction date to solicit offers for the purchase of foreclosed homes. Before choosing who to sell the property to, it then takes into account all of the offers.
Moreover, distressed sales take place when the seller makes an urgent attempt to sell the property at a price below market value, typically to pay debts, cover medical costs, or handle other problems.
Developers who are hampered by unfavorable market changes, such as the implementation of escrow accounts under the Real Estate (Development and Regulation) Act of 2016, frequently sell troubled properties in bulk (RERA).
Homebuyers should carefully consider distressed properties or sales in order to make a secure investment because they frequently result in losses for the sellers.
Key features of distressed property
You must determine if you are engaging in a distressed sale or not prior to making the purchase decision. While making a decision regarding a property up for auction is simple, doing so for individual transactions is more difficult. So, you need to be aware of the essential characteristics that set distressed houses apart from others. A more cautious approach in the home-buying decision must be taken when two or more of these criteria are present.
Failure to pay the principal and interest on the mortgage frequently results in the property becoming distressed. The property is then seized by the bank to recoup the loan. In order to ensure that the
The price of distressed properties is often at least 30% below market value. One of the key characteristics that set distressed real estate apart from regular sales is this. Always ask the seller why they are willing to sell the property at a loss; this will reveal a lot about the condition of the property.
Required house improvements
Since distressed properties require high taxes and mortgage payments, they are typically a problem for the owner. The property is consequently neglected, which eventually results in declining quality and integrity. You must be prepared to pay a hefty price for the upkeep and repairs of such a home.
Due to the owner’s severe financial difficulties, a distressed property may have some tax liens attached to it. A tax defaulter is also probably not financially stable enough to pay their mortgage. Thus, it is a good indication of a distressed sale since someone who is plagued with unpaid taxes would be more eager to sell quickly.
Once you’ve determined that the property is in distress, you’re in a better position to bargain with the seller. Always be on the lookout for additional incentives and attempts to demonstrate the property’s value to you, as they may indicate the homeowners’ urgency to sell the property!
How to find a distressed property?
If you know where to look for distressed properties, they are easy to find. Here are some methods for finding distressed properties that are within your means and will sell for a profit if you decide to sell them later.
Look for abandoned properties
Look for homes in complete neglect if you’re specifically looking for distressed real estate. The bank’s foreclosure on the property is the most frequent cause of an owner giving up on maintenance. If this information proves to be accurate, you can anticipate that the owner will sell the property without having to engage in lengthy negotiations or request that the bank hold an auction.
Bank auctions of distressed or other foreclosed properties are typically publicized 30 days prior to the auction through an official advertisement in a newspaper or on the bank’s website. You must submit a sealed bid to the bank and a minimum reserve sum in order to submit a bid for the property. The bank holds the auction after the bid period closes and sells the property to the highest bidder. A few websites display the properties put up for auction by various banks in their capacity as aggregation portals.
Sale before foreclosure
Pre-foreclosure is similar to a grace period during which the lender warns the homeowner who has fallen behind on their payments to take action to save their home. State regulations decide the length of the grace period, which varies across the country. This is seen as a favorable time for the buyer to approach the property owner and make a reasonable offer to acquire the property.
Hidden foreclosure sale
These are newly constructed, expensive properties that have been put up for foreclosure due to a lack of advertising. They are unlikely to be found in any open listings in newspapers or on websites. Typically, real estate professionals knowledgeable about foreclosure sales are able to provide information on these exclusive listings. You might have just discovered a concealed foreclosure if a real estate agent shows you a brand-new property that was built a few years before the show date and has never been occupied.
Check these documents before purchasing a distressed property
You must ensure that the ownership of the property is clearly established by looking at the documentation, given the danger involved with distressed properties. A risk-free investment is one that is devoid of monetary conflicts and legal difficulties, whether it involves distressed property or not. So, you must verify that these documents are in place whether you are acquiring from an individual or a bank in the case of an auction, regardless of who you are buying from.
Title of the property
Typically, a bank will confirm that the property titles are clear before holding an auction to sell the property. However, greater competition to sell off such properties could result in mistakes, particularly in the case of houses that are still being built, when the developer might deviate from the approved plan. The documentation is even more crucial if you are buying from a single vendor because there is a higher likelihood of fraud in this situation.
The sale deed
The original sale deed for the property must be obtained by the buyer, together with genuine receipts attesting to the transfer of the complete purchase price to the bank.
Timeline of possession
In the case of a property that is still being built, carefully check the delivery date and the associated fines in case the builder later fails to meet the deadline.
Checking the lease agreements and their expiration dates is essential when purchasing a pre-leased asset in order to evaluate its potential financial future.
Check for encroachment, development authority approvals for structural development, and municipal authority essential sanctions for power and water supply.
Certificate of Recovery
The bank running the auction needs to have a Recovery Certificate (RC) granted by the Department of Financial Services’ Debt Recovery Tribunal (DRT). Banks and financial institutions are permitted to hold foreclosure auctions under the RC.
Asset reconstruction company
These organizations are experts at holding bank-sponsored auctions of foreclosed properties. Be sure these businesses are associated with a reputable public sector financial institution by checking their qualifications. One such private company that does out this is The Asset Reconstruction Company (India) Ltd.
Pros and Cons
Given their low capital prices, bank-repossessed distressed properties could seem like the perfect investment, but they also have a number of disadvantages. A good property deal may be hampered by undiscovered liabilities, such as unpaid fees or legal issues. You must assess the advantages, disadvantages, risks, and opportunities of purchasing distressed property before making a decision.
Due to the owner’s typically high level of urgency to sell the property, distressed property prices are typically low. Price negotiations will typically result in the buyer winning when dealing with a hasty seller.
While there is no such certainty in real estate, distressed properties do have some value as investments. On the other hand, the most recent government reforms may make purchasing a foreclosed property profitable in the near future.
If you keep up with bank auction listings, you may be able to purchase a home in a desirable neighborhood.
Liabilities like delinquent taxes may be associated with distressed properties. When determining the base auction price for property purchased pursuant to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002, the bank takes these factors into account.
When they anticipate losing their property to the bank, the owners of these properties frequently cease maintaining them. A home in need of repair could need the new owner to spend a lot of money.
Negative returns on your investment are not always guaranteed with distressed homes. Such a property’s price will not be able to increase by a significant amount if the market does not drastically improve.
There are plenty of competing interests and profitable opportunities in distressed properties. The following list of dangers associated with purchasing foreclosed homes includes some benefits as well:
In the real estate market, distressed homes make up a very small percentage and are typically very difficult to find.
However, distressed properties are typically offered at bargain prices.
You might have to go over your budget to hire a real estate expert who specializes in distressed properties.
If you buy a property in a desirable area, its resale value could increase.
Since it is impossible to predict what the highest bid will be in an auction, your budget might prevent you from placing a high enough bid.
The auctions are conducted by reputable banks, so there is no risk of the builder failing to deliver.
You might run into trouble if the property’s original owner sues you and the bank.
You are free to forego seeking legal counsel in this matter because it is unlikely that a bank would not have performed adequate checks on the property before the auction.
Advice on purchasing a distressed property
If affordability is important to you in achieving your real estate dreams, distressed houses are a good choice. The majority of the time, banks that seize these properties want to clear them off their list of liabilities as soon as possible. As a result, many properties can be purchased for far less than their market value. You may secure some prime properties with these deals if you have a well-rounded arsenal of effective strategies. You could utilize some of these:
Find a skilled agent
There are many issues that are peculiar to distressed real estate. Therefore, it is advised to hire a real estate agent or property consultant with experience managing such properties. For prospective real estate agents or those already working in the field who desire to specialize, the National Real Estate Development Council (NAREDCO) offers certification courses. If an agent has this accreditation, it is a good idea to consult with them regarding distressed properties.
Avoid clusters of distressed homes
If you invest the proper amount of repair and upkeep work into a distressed home that you purchase for a pittance, it might be a wise decision. Yet if the house you purchase is situated in a neighborhood with little to no market traction, all of these efforts will be for nothing. Frequently, distressed homes from the same neighborhood are auctioned off together. Make sure not to participate in such a trade.
Professional home inspection
In contrast to a typical home sale, the seller of a distressed property does not work on the property’s damage repair. You may get a decent sense of the kind of repairs that need to be made and how much money you might need to spend on them by enlisting the assistance of a home inspection organization. The website of the House Inspection Association of India (HIA) is a website you may use to check the credibility of any home inspection business you want to hire.
Understand the law
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, regulates the sale of foreclosed property, including distressed properties. To properly understand the process the bank used to sell the house, you must be knowledgeable of every part of this Act as well as the Security Interest (Enforcement) Regulations, 2002. In the scenario where a person sells the property on their own, you need to exercise extra caution in regard to these rules.
Make a high down payment
Prior to making the decision to purchase a foreclosed property, you must make sure your finances are in good condition. A large down payment on a home conveys to the seller your seriousness regarding the purchase. 20–25 percent of the home’s asking price should be used as the down payment.
Good negotiating skills
In cost negotiations with the bank, lender, or seller of a distressed home, you do have some negotiating power as the buyer. You can request an appraisal of the property from the lender. You can attempt to convince the bank to accept a lower offer if the price determined following the appraisal is less than the market price.
The former owner may attempt to delay the sale by suing the bank when the bank is prepared to sell the distressed property. If the matter goes to court as you are about to buy the house, you can find yourself paying a hefty sum for legal advice. Dealing directly with the owner is therefore advised because there won’t be a third party with a stake in the sale attempting to sue the seller.
Set a limit for yourself while competing for foreclosure while taking your budget, the number of additional charges, and the type of financing you want to stick with into consideration. The fact that the bank selling the property won’t finance it is a crucial factor to take into account here. You must therefore prepare your selections in advance. You should constantly be mindful of two things: first, the bank is not emotionally linked to the property and does not have unreasonable expectations about the price. The institute is also losing money each day the property is on hold.
Simpliforge Creations, a leading provider of additive manufacturing solutions, has introduced a groundbreaking innovation—their state-of-the-art Robotic Construction 3D Printer. This printer, claimed to be the largest in South Asia and the first of its kind in India, was inaugurated by Sri Thaneeru Harish Rao, Hon’ble Minister for Finance, Health and Family Welfare, Govt. of Telangana.
Unprecedented in size and capabilities, Simpliforge’s Robotic Arm Construction 3D Printer is capable of creating full-scale civil structures, as well as printing landscaping elements, furniture, statues, and wall façades. It utilizes eco-friendly materials like geopolymers and clay, and Simpliforge has also introduced their proprietary construction material, ‘SIMPLICRETE,’ for use with the printer. By harnessing the advantages of Additive Manufacturing, such as minimal wastage, streamlined supply chains, optimal resource utilization, and decentralized manufacturing, the construction industry is set to experience a transformative shift.
During the launch event, Hon’ble Minister Harish Rao expressed his enthusiasm, stating, “Innovation can thrive anywhere, not just in Tier I Metro cities, but even in small towns like Siddipet. This 3D printer is a remarkable milestone. I am delighted to inaugurate this state-of-the-art technology at Charvitha Meadows. I congratulate the entire team of Simpliforge for this remarkable achievement and extend my best wishes to continue contributing to their industry, positioning Siddipet as a hub for advanced technology innovations.”
Amit Ghule, Founder & COO of Simpliforge Creations, expressed his delight, stating, “We are honored to have Hon’ble Minister Harish Rao Garu join us in launching our project. Our current 3D printer can construct structures up to 7m in size, making it the largest Robotic Concrete 3D Printer in India and the entire South Asian region. Moreover, the printer’s range can be expanded as per requirements. The Robotic Concrete 3D printer offers enhanced design versatility and flexibility for designers, while also being easy to deploy at project sites compared to gantry-style printers, making it appealing to architects and developers.”
Dhruv Gandhi, Founder & CEO of Simpliforge Creations, added further details about the technology, saying, “At Charvitha Meadows, we are printing various artistic elements for its Sanjeevani Park, positioning it as India’s first park of its kind. The design philosophy of Charvitha Meadows revolves around sustainable living and the integration of futuristic technologies. The selection of this Robotic 3D printing technology is based on its ecological advantages and the design freedom it offers. We deeply appreciate the Telangana Government for consistently promoting innovative technologies and their efforts towards establishing a ‘National Centre for Additive Manufacturing,’ showcasing their proactive interest in advancing this technology.”
With an extensive materials library, specialized design expertise, and profound domain knowledge in technology applications, Simpliforge Creations aims to expand globally with its revolutionary technology. The company envisions constructing unique civil structures while advancing robotic technology to enable smart construction both in India and abroad. This technology empowers architects and structural engineers with unparalleled design freedom, allowing them to experiment with novel and distinctive structures for innovative construction projects.