Month: December 2020

Should I Invest in Real Estate?: Part I

Real estate may seem a desirable but unnervingly unversed venture for most investors. A wise and calculated investment strategy can help generate ample returns as is the popular belief. However, a very meagre number of investors has had the opportunity to have direct experience with the asset class. Although there are a number of benefits in real estate investment, it will not be incorrect to mark it as complicated form of investment. In the present scenario, it is important to understand and be aware of the general approach to different kinds of real estate investment methods. One may want to begin with asking the right questions.

The blog will help you get an insight into assessing an investment before you take your first step towards real estate investment.

Before You begin

Irrespective of the type of investment one is looking forward to, every prospective real estate investor must ask a primary question before putting in their hard earned cash in the market.

Do you have expertise to actively invest in the real estate market?

For beginners, it may take some time to have a clarity of what interests them so as to have a preference in the first place. However, when one is clear about which one is more suitable, making a choice won’t be difficult and you can choose between an active or passive investing whichever is more economical in your case.

Have you defined your investment timeline?

A investment timeline is critical for any investment including real estate. One must have a knowledge or target when it comes to procuring liquidity, therefore, having a foresight into whether your investment can provide you the funds at the time of your necessity.

How will you be benefitted from the investment?

Depending on the investment, one can expect certain tax benefits from real estate investing, be it active or passive. Being eligible for tax exemption can definitely be a goal for some who look forward to putting a lump sum amount of their cash into the market. Try to gather more information about what tax benefits your type of investment can help you get.

How would you determine the accomplishment from a real estate investment?

Expecting good amount as returns must seem like an obvious answer to this question, but success can vary from one person to another when it comes to investment. For some, getting hefty returns may be the definition of their achievement in the market, while acquiring benefits or managing other aspects can be how another person deems as their rightful strategy for their future in the investment sector.

To be continued in PART II

FAR and It’s Importance To Home Buyers

The total floor area of a building which includes the area covered by all the floors in that building, divided by the area of land on which the construction is in progress, is defined as the Far or Floor Area ratio of the project. In accordance with the Development Control regulations, the FAR limit of a locality is fixed by the municipal corporation or the local development authority and usually differs from one place to another. It is often referred to as Floor Space Index in some markets. FAR is expressed in ratio while FSI is denoted as percentage.

If you know the total plot area and local FSI, you can easily calculate the total built-up area of any project.

Plot Area x FSI = Built-up area

Note: FAR of 2.5 is expressed as FSI of 250%

The importance of FAR for home buyers

With rising population, especially in urban areas, it is extremely essential to keep in mind the need for open spaces and ensure the best living conditions for all residents in an area. FAR value assigned by local authorities never exceeds 2.5 which guarantees adequate open spaces that can be used in case of natural calamities. It also safeguards the structure of the construction as well as allow firm and strategic growth.

What does FAR denote for a new home buyer?

Higher FAR index also means more floor area available for execution of high rises. This also means you shall be sharing some common amenities with other residents such as swimming pool, play area, lift, lounge, gym and any other amenities available with the project. In case of high rises (i.e., high FAR value), more units are built on a small land that requires every owner to share these common facilities with much more residents than in case of projects with less number of units.

A lower FAR value means a smaller number of units with the same facilities being shared by much smaller number of owners. Therefore, those looking for investing on property in any project with amenities, it is favourable to look for one with a lower FAR. Lower number of units, lesser number of people living in G+4 configuration may help a home buyer to get more free space and enjoy much more open area.

Are amenities included while determining FAR?

Facilities included in the project such as common area, parking lot, basement for parking, pool area, sports area, community hall, exterior constructions like balcony etc., are an exception to calculating FAR or FSI.

CurioCity Classic is one of Realtech Nirman’s latest project under construction that has all amenities tagged in the project and adequate open area to the residents for better living. Visit us to book an apartment in Newtown.