Established or upcoming location: What to invest and where?

As we know, location plays a huge role in pushing the property values tremendously up. A property investor often falls into an ambiguity of where to invest – an established or upcoming location. We finds out answers from the industry experts. “It is always wise to invest in upcoming location than in an already established one. Such locations not only provide for better opportunities, but at the same time these give you enhanced returns with less of investment,” says Anil Sharma, CMD, Amrapali Group Noida.

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“For instance, many of us would only prefer to invest in Noida, Gurgaon and definitely not in Delhi, as total investment may reach up to more than a crore for a small piece of land and still with comparatively lesser returns than in Noida and Gurgaon,” Sharma adds.

“Upcoming locations appreciate faster because their market viability is being enhanced with increasing accessibility as well as social and civic infrastructure. They attract more people, since any city’s growing population tends to move into areas which are affordable. For that reason, emerging locations also tend to attract a lot of commercial establishments, which further boosts the residential segment,” says Arvind Jain, managing director, Pride Group.

However, it also largely depends what type of property one should invest in and where? A bungalow costs a lot more than a flat. This means that the rental market for such a property shrinks proportionately. Moreover, bungalows in established locations have a high chance of attracting long-term corporate leases whereas flats in established locations are costlier and involve a higher capital expense.

“Investing in a bungalow in an upcoming location usually involves a lower (though still sizeable) capital investment. The rental yield is lower, but the size of the rental market for such a property increases proportionately. Investment in a bungalow in such a location can make a lot of sense if the area, despite being non-prime, is still well-connected to some of the city’s major economic drivers, such the airport or employment hubs such as IT parks and manufacturing zones,” says Jain.

“One major advantage of investing in a bungalow in an upcoming location is that it will gain steadily in value as the area’s profiling in terms of social and civic infrastructure improves,” he adds.

However, experts believe that investors into flats must consider all the pertinent factors carefully. “Flats will attract rental interest from a segment of higher economic profile. However, it must be borne in mind that capital appreciation of flats in centrally located projects is slower than in many upcoming areas. This is because high-end locations tend to hit an appreciation plateau, which can persist for long periods,” says Jain.

To ensure growth in Noida Extension property prices, investors are advised to choose projects that fall within the local municipal limits. Without infrastructure, such as roads and regular water and electricity supply, there is no guarantee that the location will do well in future, thereby rendering it unsuitable for smart property investment.

Where to find affordable properties in Delhi NCR

Finding a home that is affordable and is right in budget is everybody’s dream. Especially, the people migrating from all over the country to the national capital in pursuit of good education and job opportunities want a home for their families to live in. where to find homes in and around Delhi within the budget of 35 lakhs? On Big Realtors forum, OpenHouse, the experts have talked about several localities where finding homes in a restricted budget is possible. Here are a few localities and what our experts say about them –

Property in Noida extension and Greater Noida

In the budget of Rs 35 lakh, you shall indeed consider Noida Extension projects and Greater Noida for both end use and investment purpose. These are the areas which are expecting major boom, due to the supply of affordable houses here. These localities are also slated to get metro connectivity in the coming years. For the investors too, these areas are likely to perform well in terms of capital appreciation.

An expert suggests buying studio apartments on the Yamuna Expressway, which has become quite popular since the coming of the Formula One racetrack there. These studio apartments are small in size and are ideal for investment. These studio apartments can house a small family. “In the budget of 35 lakh, you can buy three small size (520 sq ft) and in two years (almost exact), you can sell them at 40 lakh each,” says Satish Kumar, expert at Big Realtors.

“You have several options in Noida Extension, Greater Noida and Bahadurgarh. Property Rates in Noida Extension and Bahadurgarh are around 3000 to 3300 per sq ft. however, in Greater Noida, the prices are around 3800 to 4500 per sq ft. You can get 2 BHK in resale in Noida Extenison  in latter sectors,” says Praveen Tyagi, Simon Infratech.

Property in Ghaziabad

Ghaziabad has a lot to offer for those who are looking for a home that is in the budget. Also, for the investors, who are expecting good returns in a specific period of time, properties in Ghaziabad have a potential. “There are several options in flats, such as Crossing Republik, Gaur City, Wave City Center,” says Vinod Chaudhary, expert at Open House.

Also, Rajnagar Extension in Ghaziabad, near Indirapuram and Vasundhra, offers various 2BHK and 3BHKs in 40-lakh budget. “Rajnagar Extension is a developing locality in Ghaziabad and has connected roadways, railways and metro station,” an expert comments on Open House.

Property in Gurgaon

In Gurgaon, areas near Dwarka Expressway, New Gurgaon and Golf Course extension road are developing fast and are attracting both end users and investors. Due to the infrastructure developments in these areas, the properties here are likely to fetch high returns. “In Gurgaon, sectors towards Golf Course Extension road seem better choice,” says Pramod Aggarwal, executive director, Microtek Infrastructure Pvt Ltd.

Property Documents that go into VERIFYING A TITLE

Amrapali Noida Extension gives you a list of documents required for verifying facts,before purchasing a property

Before investing in any property,it makes sense to use the services of an advocate or solicitor to inspect the original title documents of the property being purchased.

In case the title is not clear,there would be numerous problems in the future.Firstly,no bank will give a loan against a property not having a clear title.It may be difficult to transfer the share certificates of the society in your name and it would be very difficult to sell the property too.

Some of the documents you should verify before buying a property are given below.
Among documents pertaining to land,theres the conveyance deed or sales deed,which is very important.This is a deed document through which the title of the property is conveyed by the seller to the purchaser.
Conveyance is the act of transferring ownership of the property from a seller to the buyer.This will help a buyer ascertain whether the property which is being bought is on land belonging to the society,or the builder,or the development authority.You will come across a mention of the saat barah which is the 7/12 extracta document issued by the tehsildar or the land authority concerned,providing details like survey numbers,area,date from which the current owner is registered as owner,etc.

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Then,there’s the Index II,which is a document issued by the office of the sub-registrar of assurances.It mainly mentions the name of the seller and purchaser of a property for which the document is registered.
A search report is a search of the title of the property for a period of the last 30 years.This search report and title certificate can be obtained from ones own advocate or if the search has already been conducted by the current owner,then one can have his advocate inspect these reports to ascertain the title of the property.A buyer may also need non-agriculture land-use permission.If the land under consideration is agricultural and one intends to develop the land for residential,or commercial,or industrial use,then such an agricultural land has to be converted to non-agricultural land-use and a non-agricultural land-use order has to be obtained from the collector of the district where the property is located.Along with this,one needs to take the latest receipts evidencing the payment of nonagricultural tax.In cases where this has not been done within the stipulated period,there should be an order from the authority concerned for extending the period.

As for the documents relating to the project or the building,the development agreementan agreement by the builder with the landowneris very important.

It contains details regarding the terms and conditions on which the landowner has permitted development of his property.This is where the landowner engages a third party (that is,the developer or the builder) to develop and build on his plot of land.This agreement is generally accompanied by a power of attorney in favour of the developer or the builder.

The approved building plan made by the developer needs to be approved by the municipal corporation or the authority concerned.The approved building plans also need to be checked thoroughly.

QUICK BITES 

A BUYER MAY ALSO NEED NON-AGRICULTURE LAND-USE PERMISSION.IF THE LAND UNDER CONSIDERATION IS AGRICULTURAL AND ONE INTENDS TO DEVELOP THE LAND FOR RESIDENTIAL,OR COMMERCIAL,OR INDUSTRIAL USE,THEN SUCH AN AGRICULTURAL LAND HAS TO BE CONVERTED TO NON-AGRICULTURAL LAND-USE THROUGH AN ORDER FROM THE COLLECTOR