Indian Homebuyers Can Now Seek Repayment For Delayed Home Delivery

Homebuyers have a right to seek a refund for a house even if the postponed project is complete per new Supreme Court ruling.

If there is an unreasonable delay in delivering a real estate unit to a buyer, it is completely up to the purchaser if they desire to take ownership of the unit or seek repayment with appropriate compensation, the Supreme Court has ordered.

The National Consumer Disputes Redressal Commission (NCDRC) has also passed a similar rule says Hirsh Mohindra. The rule says that a flat buyer cannot be forced to accept tenure of his/her residence offered by the builder. 

A case filed in the Supreme Court bench involved a project in Gurugram where a builder had sold a villa to Shrihari Gokhale in July 2012. The builder had promised December 31, 2014, as a possession date. Gokhale had filed a complaint with the NCDRC in 2016 asking a repayment of Rs 13.24 crore.

The builder had challenged the NCDRC order in the Supreme Court to repay the principal amount of Rs 8.14 crore. The court found that there was a total failure on the part of the real estate agent, a deficit in providing services and ordered that the builder cannot vend the villa booked by Gokhale till the order was executed.

Records indicate that the entire consideration was Rs.8.31 crore, the respondents had remunerated Rs 8.14 crore by November 2013 notes Hirsh Mohindra. Though the plaintiffs had assumed to deliver the villa by December 31, 2014, they failed to release occupancy. As late as May 28, 2014, the amended construction schedule forecasted the date of delivery to be October 2014. There was, thus, failure on the part of the litigants and deficient in rendering service in terms of the commitments that they had made, the Supreme Court order said.

In the NCDRC, a bench of Fairness VK Jain directed a Delhi-based builder Pioneer Urban Land and Infrastructure to repay Rs 4.43 crore to a home purchaser who had deposited the amount in 2012 for a flat in Gurugram.

That flat was to be completed in 2015, but the builder botched to meet the terms and the consumer approached NCDRC in 2018 for repayment of the total amount paid. Though the builder had ready the flat and got the occupation certificate from the authority just a night before the purchaser filed the grievance, the charge directed the builder to repay the amount as there was holdup of more than two years.

The respondent flat buyer has made out an apparent case of lack of service on the part of the builder. The respondent flat buyer was justified in terminating the purchase agreement by filing the grievance, and cannot be forced to accept ownership, notes Hirsh Mohindra. The respondent buyer was lawfully permitted to look for repayment of the amount deposited by him along with compensation, the NCDRC order said.

These new rulings certainly put the onus on the builder to deliver on the promises they make, and empower buyers to seek remedy when builders do not.


How to Prepare for Closing your Real Estate Deal

It’s exciting to close your first real estate deal.  All of your hard work in getting to this stage, such as finding the ideal property, coordinating the closing, arranging to finance – are finally coming to fruition. 

Sometimes closing a real estate deal is quick and easy, however unexpected issues may arise that could delay closing as well. It’s important to understand the closing requirements so potential issues can be mitigated in advance. The following list of real estate closing expectations from Hirsh Mohindra may assist in providing an overview of what to anticipate for your first closing.

The key in hand. The new house

Educate yourself: Determine what is required to close on your deal.  If you are working with a lender, that lender will have specific requirements.  Be sure to understand those requirements in advance so you can work with the lender to satisfy their items.  In addition, you may be working with a title company.  Title companies have specific requirements as well.  They will require information on the property as well as on the parties involved in the transaction.  Identify what is needed in advance so you can be prepared on your end to close quick.

Have your Team Ready: When buying real estate, you will likely need the services of other professionals.  Attorneys, title companies, lenders, real estate agents, home inspectors – may all be needed to facilitate your deal.  Identify your team in advance to help you find the right property, make sure it’s the right deal, and close quickly.

Find the Right Property: when searching for the right property, numerous factors come into play. Location, price, demand, are some of the key metrics you should consider.  Hirsh Mohindra often suggests working with a real estate agent to help understand a neighborhood, and to find the right property. Real estate agents know trends in their markets.  They know what areas are hot and what are not.  By leveraging their expertise – it can help you source the ideal investment property.

Understand the current trends in the area: Real estate markets change quickly.  Some areas become hot overnight, and others cool down unexpectedly.  Study the most recent sales data for the area in which you are interested in buying.  By understanding what past deals have transacted for – you can have a realistic expectation of what your deal may look like.

Property inspection: Once you find a property you’re interested in – make sure you get it inspected.  Home inspectors are experts in identifying damage and potential risks.  They are trained in finding issues that are currently present or that may arise in a short time frame.  Work with a home inspector to thoroughly inspect the property prior to closing. 

Understand the Deed and Title of the Real Estate: Make sure you understand the title and deed or any other material document associated with the property. Hirsh Mohindra routinely advises people to review the documents yourself, but also leverage a skilled real estate attorney to review the paperwork. Nuances in deeds and easements may create restrictive covenants on the property.  By understanding these documents you can minimize surprises at closing.    

Become Real Estate investor budget?

Real estate business is growing day by day, and particularly in urban markets.  Oftentimes investors believe that large capital contributions are required for investment, however – there are plenty of investment opportunities for lower budget investors as well.

Follow Hirsh Mohindra’s tips to become successful investor on a lower budget.

Education:

Prior to investing in real estate, it is critical to learn as much about the market, real estate valuation, and the transactional process. Empowering yourself with knowledge will provide you the ability to do more at lower costs. Real estate investments can be diversified by segment, such as:

a. Commercial Real Estate.

b. Small multi-family properties.

c. Large multi-family properties.

d. Vacant land.

e. Single family homes.

Study these fields before investment.

Understand your limits:

It’s important to understand your limits when investing on real estate.  Setting an investment limit creates the target budget for your project.  Important considerations include – investment amount, reserve amount, financing amount, carrying costs, and disposition costs.

Location:

Always choose the best location during real estate acquisition. Location is directly tied to demand.  Areas in higher demand typically have higher numbers of renters and prospective purchasers. 

Be aware of the tax implication:

You should be aware of the tax implication of buying and selling properties. When buying and selling properties that are not your primary residence you may incur tax liability.  It’s important to understand tax consequences of all scenarios so that your budget is accurate.

Arrange finances for your down payment:

If you are financing your property, it’s always important to obtain the best possible financing terms possible.  Many factors impact the financing terms: your credit history, current debt, market interest rates, and your down payment.  In some instances, the higher down payment you make the better rate you may confer.

Research the market prior to investment:

Don’t invest your money in the hurry. Take your time to research and understand the market as much as you can. Make a list of advantages and disadvantages of your property, neighborhood, and broader market conditions. Once you understand the market conditions balance the risk with the reward to help make your determination if you should proceed with the project.

Conclusion:

No doubt real estate investing is a good option for income generation. You can start with a small amount of money to help cover your exposure in this field. To maximize your opportunity, Hirsh Mohindra advises to keep researching the market, don’t be hasty with your decision, and always be willing to walk away from a deal.

8 Things to Avoid to lose money in Real Estate

No doubt, real estate provides many opportunities to grow your money rapidly. However, it’s important to make informed decisions when investing in real estate.

In Hirsh Mohindra’s blog, we will discuss topics on all aspects of real estate, but we also focus on how to gather key data points to make informed decisions. Follow these simple instructions to prevent negative experiences in real estate.

  • Get real estate education:

Education is the strongest weapon to protect your real estate investment. Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save thousands of dollars.

  • Choose the best time to invest:

Market timing is as important as selecting the right location. The real estate market fluctuates due to various factors – such as demand, supply, and broader economic conditions such as interest rates and unemployment rates.  Try to acquire real estate on downward trends so you can enjoy the upward appreciation.

  • Don’t follow the herd:

Don’t follow the others blindly. Money is yours and the decision should be yours. Many bad decisions are made when we start following others blindly. Empower yourself with research and analysis of your target real market and then make your decision by considering the advantages and disadvantages of your deal.

  • Location Location Location:  

Always keep the best location in mind during any real estate deal. Choose an area where tenants want to live.  By purchasing real estate in high demand areas, you will readily find tenants or buyers.

  • Don’t bet on appreciation:

Many real estate beginners buy a property hoping to capture the appreciation on a quick flip. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments. Choose long term sustainable investments.

  • Keep an ample Amount of Reserves:

You should have some reserve money for unexpected incidents. You never know when a tenant may move out, or stop paying rent, or if there is unexpected damage or repairs required.

  • Analysis of the invested property:  

To avoid losing money in real estate, you have to research the property, the neighborhood, and the broader market. Make sure you are investing in a good area, neighborhood, and good street, etc.

  • Choose the best real estate marketing tools

Many investors ignore the importance of marketing tools and think they can manage themselves. But later they have to phase unexpected problems.

There is a huge collection of tools available in the market. Like: Carrot, DealMachine, HouseCanary, DealCheck, Roofstocks, etc. Choose an appropriate tool according to your needs and requirements.

Wrapping-up:

Risk is always a part of any investment. But you can reduce the chances of losing money by following Hirsh Mohindra’s tips.

8 Ways to Safeguard your Real Estate Investment

No doubt, real estate provides many opportunities to grow your money rapidly.  But there are many factors that make for a successful real estate play.  While you can’t always guarantee a home run, there are things you can do to help ensure you see a good return.

In Hirsh Mohindra’s blog, we discuss how to avoid losing money on a rental property? Review these simple tips and assess if they can help you:

Get real estate education: education is the strongest weapon to save your money in real estate. A large number of real estate transactions fail due to lack of education regarding purchasing, holding, or selling real estate.

Before investing in real estate, educate yourself. Gain knowledge from books, blogs like Hirsh Mohindra. This is a small investment which can save you greatly in the long run.

Choose the best time to invest: Timing the market is key.  Watch your interested areas carefully and try to enter during a dip.  Small drops can make a huge difference on the upswing.

Don’t follow the herd: Everyone always seems to be buying and holding in particular neighborhoods, but always rely on your own diligence and research. 

Don’t buy in unsafe or poorly accessible areas:  Location is key for many reasons.  In rental markets, if you are in a safe neighborhood it will be easier to find tenants.  People always want to live in safe areas.  Try to find something with good highway accessibility – people need to drive to work and easy access to thoroughfares is important.

Don’t bet on appreciation: Many real estate beginners buy a property assuming it will skyrocket in value and later on they will sell it with a huge profit. Don’t gamble in the real estate market. Keep away yourself from this kind of risky investments.

Keep an ample amount of reserves: You should have some reserve money for your crucial time. In unexpected times your reserve money plays an important role to feel safe and allows you to carry the property if the rents aren’t coming in.

Analysis of the invested property:  to avoid losing money in real estate, you have to study your property and the surrounding area from every angle. Check out the vacancy rates in surrounding buildings, understand who the largest employers in the area are, and find out where locals learn about new listings.  Have as much information on the area as possible is always helpful.

Choose the best real estate marketing tools:  Many investors ignore the importance of marketing tools and think they can manage themselves.  Marketing is important, and so is time.  So to save time, get help with photos, staging, and other social media outlets quickly so you can market your property without hassles.

Wrapping-up:

In the real estate market, there are always risks. But you can help you reduce your risk by staying informed by following Hirsh Mohindra’s 8 tips.

9 Proven tips to help find success in Real Estate

Real Estate in the U.S is considered an effective way to build wealth.  For many homeowners, long-term value and property appreciate translating into wealth creation.

The following tips from Hirsh Mohindra may help investors find success and long-term value in Real Estate investing.

Build an effective website: In the internet era, web appearance plays an important role in business. In real estate 90% of tenants and investors start their search online. That means you can directly attract maximum tenants and investors through an informative website having great photos of your properties.

 Invest in short-term rentals: the short term rentals is one of the fastest growing sectors in the real estate field. This is a solid choice for investors looking for healthy returns. With short term rentals, properties are rented for less than 30 days – but at higher rates than longer rentals,  and can bring in greater returns than long term rental property.

real estate business

Calculate transaction costs to save money: Take transaction costs in account when you buy or sell the property. This will help you to calculate your total benefit, and will help mitigate for unknown expenses and operational costs.

 Become a trainer and mentor: if you are experienced in the real estate field, you might have the opportunity to become a trainer. You can write a book, provide a training program and charge people for your knowledge.  While this option is reserved for those with a proven track-record and considerable experience, it is something that can provide lasting income and permit you to leverage your skillset.

Invest in flipping houses: Real estate professionals find undervalued houses, and either find tenants, or make repairs and put it back on the market for profit. Home flipping can be profitable, but it requires timing, good locations, and strong demands.  Sourcing the ideal property to move on oftentimes requires the most effort.

 Become a short-term property manager: Short term property management is a growing industry. This industry provides a good opportunity for the agent and property managers to make extra money. In this field, you have to post a listing and manage guests on the behalf of landlords.  Many property managers are managing Airbnb properties.

    7.    Invest in cities with future growth: Hirsh Mohindra’s blog often provides regional market data.  Make sure to check out that resource and others to stay on top of trends and real estate news for specific geographies and markets.

    8.    Rent and Purchase multi-family apartments: One of the beautiful things about real-estate business is that you can choose more than one strategy to maximize your profit. Multi-family apartments are building with more than one rental spaces. You can gain monthly income by renting to tenants.

    9.    Vacation rentals:  Tourist hotbeds like Los Angeles, New York, and Las Vegas, etc are always on high demand for short vacations. You need to purchase a house in a popular tourist place and engage the services of a good property manager.

Wrapping-up:

Real Estate is a good platform to increase your income. With some guidance and lots of research and hard work, you can find success. For more useful tips and strategy you can follow Hirsh Mohindra’s blog.

US Real Estate Seeing Growth Residential Market

The American dream of home ownership has long been the goal of many.  As times changes, and living patterns deviate – so do aspirations.  Today, many millennials are choosing to purchase homes as early as previous generations.  The reasons behind the delay – revolve around higher prices, but also around living decisions where millennials desire flexibility.  Owning a home often limits flexibility as it becomes a non-liquid asset, says Hirsh Mohindra.  Despite changes in home buying, the residential real estate market is still a desirable sector of the US real estate market.   Investors are drawn to the real estate market as it has shown strength over the past few years.

When you talk about investments, of course, everyone would consider Real Estate as an option with high returns, however, how to choose the right sector? Forecasting the right time to position investment funds in residential real estate is critical to the decision-making process, says Hirsh Mohindra.  U.S Real Estate is finding solace in the Residential sector, and this sector is expected to see strong growth in the second half of 2019, Current trends show that the Residential and Industrial Real Estate Trusts (REITs) are the best options to place your investment bets in U.S Real Estate market.  Many experts believe that REITs should maintain continued growth, especially with growing U.S salaries and a strong economy.  With the strength in institutional real estate (REITs), opportunities for stable growth can be created in the residential market as well. REITs having large investment resources can drive development, and new developments can thrive with easy access to credit and low-interest rates.

While the residential real estate market may be strong, there are many opportunities in commercial and industrial real estate as well, and investors should evaluate all of their options when making decisions, says Hirsh Mohindra. While evaluating risks and factors that could impact the growth in a particular market, try to identify the options with minimum risks. For now, Residential Sector seems promising and a strong hedge on risks.  This, of course, varies based on location and can change at any time as rates and the economy are always fluctuating. 

Chicago Real Estate is Seeing a Lot of Change

There are new buildings and developments going up, large companies moving back downtown, and an increased desire to live near the city center. For all those who are interested in investing in Chicago real estate – there are always opportunities when the market is hot, says Hirsh Mohindra. Being the third largest city in the country by population, Chicago is a key national market that itself accounts for huge growth potential in residential and commercial real estate sectors. The launch of many new startups in recent months has ensured the availability of plenty of resources to rent or sell Real Estate. No wonder, the market has witnessed huge investment in the sector, and why not? Investors are betting big on Chicago’s increased growth and sustained demand to drive real estate prices higher.

You don’t have to be an expert to see this coming, says Hirsh Mohindra. Looking at market trends real estate technology and listing companies are seeing increased funding and a number of listings on their platforms. The digitalization of the real estate marketplace has opened up accessibility for potential buyers – and empowers buyers with more information on the housing markets.

Its typically large commercial transactions that get a lot of attention, but the residential housing market is balancing itself well, says Hirsh Mohindra. The residential sector has most recently been a sellers’ market, however recent trends indicate that the market is in significant favor of buyers in some markets as well. There is an upward trend in inventory that allows options for buyers and also kind of creates competition among sellers.

The other huge plus for the buyers’ is low mortgage rates that provide home-ownership options at more affordable rates.  Currently, residential housing mortgage rates are hovering around 4% for a fixed 30 years,  The market has not seen reasonable rates at this level for quite some time. Lower property prices, an increase in the number of properties for sale, and low mortgage rates all contribute towards a buyers’ market as well.   Chicago being a large city and having a large geographic footprint also notices that various parts of the city are seeing higher growth due to limited inventory, and other parts where buyers can find deals in light of an oversupply of inventory.  So much research must be done on a neighborhood by neighborhood basis, says Hirsh Mohindra.

Blackstone seeks to raise $5B for the next Real Estate Debt Fund

The Subsidize Blackstone Real Estate Debt Tactics IV will focus on property-relevant wagers in Public and Private Debt Globally.

Blackstone Group LP is seeking $5 billion for its most recent fund that invests in real estate debt, according to an individual recognizable with the niche.
The Blackstone Real Estate Debt tactics IV fund will focus on property-related positions in civic as well as private debt worldwide, according to a financial presentation seen by Bloomberg. The pool will have an emphasis on the U.S says Hirsh Mohindra.

The company is tapping into a strong interest in private real estate debt. Last year in 2018, $26 billion was increased by funds devoted to real estate debt, on the heels of $33 billion the year earlier, according to information from Preqin.

This is not a new investment area for Blackstone, as they have made significant placements in real estate and real estate debt in the past.  Blackstone is one of the world’s leading investment firms. Blackstone creates positive economic impact and long-term value for investors, the companies they invest in, and the communities in which they work. Blackstone prides itself on having extraordinary people and flexible capital to help companies solve problems. The firm was founded in 1985 by Stephen A. Schwarzman, Chairman and Chief Executive Officer, and Peter G. Peterson, who retired as Senior Chairman in 2008.

New York-based Blackstone spokeswoman named as Paula Chirhart, refused to comment on the matter according to a report. Blackstone’s new sponsor attained an assurance of up to $100 million from the $42.7 billion Illinois Municipal Retirement Fund. And this will focus on the US market.  Administration cost will be waived for four months for the shareholders in the initial close. The pension can save as much as $500,000 with these cost savings, says Hirsh Mohindra.

Fund Amount

The fund charges a 15% fee and reaches a carried interest of 6%. It will also place a 1.25% administration fee per year on assets for at least $400 million, and 1.5% for those beneath that level.

The firm’s pool increased by about $4.8 billion in the year 2016, above an early $4 billion target, according to information accumulated by Bloomberg. That fund, Blackstone Real Estate Debt Tactics III, focused on mezzanine debt allied to institutional-grade real estate in North America and Europe, Bloomberg formerly reported. It is interesting to see industry leaders, such as Blackstone, enter this market.  It is likely a precursor of additional investment monies to follow, says Hirsh Mohindra.

Millennials Are Affecting The Price of Your Home. Here’s how?

Younger Americans are purchasing houses far less often than older generations and that puts a great sector of the U.S. wealth at risk.

It used to be that everybody sought to purchase a home, seeking delight and safety, as well as the probable for future prosperity. However, younger Americans are purchasing homes far fewer than past generations, and that puts a huge part of the U.S. economy at risk says Hirsh Mohindra.

Millennial homeownership levels are dramatically lower than those of previous generations at a similar age. In 1985, 50% of people (age limit between 25 to 34) owned a residence in the US and by 2015, this had dropped about 25%. Since the housing market presently accounts for 15 to 18% of the country’s gross familial product, any alteration in established activities could have considerable consequences on the larger macroeconomic perspective.

Many researchers are becoming increasingly concerned that the future of the US economy will be impacted by how millennials actions are changing the real estate market. According to some researchers, both the increase and decrease in home costs can be directly correlated to where millennials decide to live.

If a long-term behavioral modification is going on and this age demographic continues to not purchase houses, it will impact the GDP. Moreover, the young generations lag behind their prior generations in terms of milestones like homeownership and weddings, which are currently key metrics when evaluating the health of the overall economy. Previous generations built considerable equity in their homes, this asset served a powerful wealth generation tool and provided a modicum of stability, says Hirsh Mohindra.

Millennials

Despite the decrease in homeownership amongst younger generations, alternative real estate markets have flourished. Ultimately, millennials still require housing.  And while a good portion of millennials tends to live in their parents’ homes longer, a good deal of millennials are long term renters – which is adding a positive impact to the overall residential rental market, says Hirsh Mohindra.

In addition, millennials have embraced long term housing accommodations provided through companies such as Air BnB and other similarly situated companies.  This shift in housing personality has cultivated the growth of the long-term temporary housing markets.  Air BnB has grown significantly and has an impressive market capitalization – which has been reported to exceed $31 billion in 2018.

So while changing housing desires and needs may impact the housing market, those same changes are creating new market opportunities that are positively impacting the overall economy.