Jabong Mailer (CPA)
Showing posts with label residential projects in Varanasi. Show all posts
Showing posts with label residential projects in Varanasi. Show all posts

Thursday, 17 December 2015

U.S. assets like real estate may be more attractive to foreign investors in the months ahead.

In contrast to much of the industrialized world’s easy money policy, the Federal Reserve chose to tighten slightly with the start of a rate hike cycle on Wednesday. The divergence in monetary policy is seen as a potential source of volatility in the coming year.

According to Mitch Roschelle, partner at PricewaterhouseCoopers, uncertainty in global currencies, stocks, and bonds could benefit hard assets like U.S. real estate.

“Whenever there's instability in a society or in the world, investors tend to rotate towards the non-trading asset,” he said. “They rotate to real estate as opposed to the trading asset.”

The Gujarat government will consult all stake holders, including developers, while constituting the state real estate regulatory authority ( RERA), Chief Minister Anandiben Patel said today. 

According to the Real Estate (Regulation and Development) Bill, 2015, approved by the Cabinet last week, the states and UTs need to establish the 'Real Estate Regulatory Authority' to regulate real estate transactions. 

The bill is still to be taken up for discussion and approval by Parli .. 

Saturday, 12 December 2015

Several years ago, I called a real estate agent in my hometown, Newburyport, Mass., with (as one tends to bring to agents) a fantasy. I wanted to buy the Pink House.

I had first glimpsed this house as a child, from the back seat of the family station wagon en route to the beach. The foursquare single-family home sat alone on the road out to Plum Island, overlooking a vast flat landscape of pristine salt marsh. The sight unnerved me and became a mainstay of my nightmares: A lonely, unloved thing looming against a howling sky, its cupola a leering, all-seeing eye.

Over time, my unease had mellowed to familiarity, then affection, which deepened upon hearing its rumored back story: In 1925, a wife agreed to divorce her husband on the condition he build her an exact duplicate of the home they shared in town.

Because she didn’t specify where the house should go, he built it where it would cause her the most unhappiness: by itself, far from everything, no fresh running water (only salt). There’s a term for this: “spite house.”

Real estate industry expects inflow of foreign capital in the sector to be more than 15 per cent after the government eased FDI norms, a survey by industry body FICCI said.
With the real estate industry facing a huge slowdown for the past 2-3 years, the government last month relaxed foreign direct investment (FDI) norms in construction sector by removing two major conditions related to minimum built up area as well as capital requirement.
“According to FICCI survey, industry is happy and satisfied with current FDI reforms in construction development sector and has shown high level of confidence and optimism towards future flow of foreign capital into realty sector,” the industry chamber said in a statement.
The survey amongst various stakeholders comprising developers, investors and consultants was conducted to assess the mood of real estate industry and their perception on relaxed FDI norms for the real estate sector.
“Respondents were optimistic and felt that FDI reform measures will certainly increase flow of FDI into realty sector in coming months.
According to DIPP, Indian real estate has attracted about $24.16 billion FDI in construction development sector during April 2000 to September 2015.

Friday, 11 December 2015

LONDON: Banks would have to set aside more capital to cover "buy-to-let" mortgages and place greater emphasis on a borrower's ability to repay a home loan under draft rules from global banking regulators on Thursday.

The Basel Committee of banking supervisors from the world's main financial centres published revised proposals for banks using the so-called standard approach, rather than in-house models, to determine how much capital they must set aside to cover the risk of a loan turning sour.

This so-called credit risk is the single biggest calculation made by banks as it covers between 60 and 90 percent of the risk-weighted assets on their books.

Thursday's second consultation on credit risk is aimed at simplifying Basel's suite of complex capital rules in order to iron out large differences in how much capital banks from different countries set aside to cover similar risks.

Basel unveiled key changes, such as introducing a clear delineation between types of home loans when it comes to capital charges.

An industrial property located in Ontario, California was purchased by Rexford Industrial Realty, Inc, a real estate investment trust, for $13 million.

"With this transaction, we are contributing high-demand, institutional-quality product to our portfolio, with an opportunity to enhance cash flow and value by increasing below market rents as leases roll," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of Rexford Industrial Realty, Inc.

According to their press release in Business Wire, 601-605 S. Milliken Ave. is comprised of three buildings that have 128,322 square feet on 7.32 acres of land in Ontario, California. The buildings are situated directly adjacent to Ontario Airport Business Park and one block east of Dupont Business Center, which are both Rexford-owned projects. At present, the property is 96 percent leased to multiple tenants.

"We believe this property, which is immediately adjacent to and positioned near other Rexford-owned projects, extends the Company's operational efficiency and regional competitive advantage, particularly as supply remains scarce and is diminishing while demand continues to accelerate within Rexford's target Southern California submarkets," added Schwimmer and Frankel.

China's real estate companies have sharply increased the amount of funds raised from debt so far this year compared with 2014 as borrowing costs hit historical lows, and they are planning to borrow more.

Property developers have raised 495 billion yuan ($77 billion) from domestic Chinese bonds, almost double 2014 levels, Barclays Capital estimates.

Goldman Sachs suggests property companies have issued more than 400 billion yuan ($62.5 billion) in domestic bonds, over seven times total issuance in 2014. It uses a different set of companies as the basis of its estimate.

"Conditions are great for these developers who should take this opportunity to strengthen their balance sheets and deleverage in a disciplined manner, rather than leverage up," said Dhiraj Bajaj, a fund manager at asset and wealth manager Lombard Odier Singapore.

Developers who are redoing downtown Dallas’ landmark Statler Hotel have spent time in China courting investors.

“I’ve already made three trips to China,” said Frank Zaccanelli, a partner with Centurion American Development Group. “They are very interested in what’s going on in Dallas.”

Centurion American, which also has suburban home and commercial projects in the works in North Texas, isn’t the only local real estate firm with an appetite for Chinese investment.

Chinese money has funded recent downtown Dallas tower sales.

And capital from China is finding its way into everything from local apartments to single-family homes.

Last year Chinese investors pumped more than $3 billion into U.S. commercial real estate investment, according to data from the commercial property firm JLL.

And they bought more than $28 billion in American residential properties — more than twice what any other foreign buyer acquired, according to the National Association of Realtors.

Asian investors accounted for almost a third of Texas home sales to foreign buyers, behind only Latin Americans, who accounted for more than 40 percent, the Realtors said.

Chinese buyers are hot for Dallas-area apartments, too.

“We’ve closed $550 million in transactions in the last 90 days,” said Chris Colombe, managing director with the apartment broker ARA. “Probably a third of those deals had equity coming from China.”

Chinese investors are the top foreign buyers and funders of U.S. hotel acquisitions this year. And they are one of the top offshore players in the office market, according to data from the Urban Land Institute.

It used to have the most expensive real estate in the world but prices in Tokyo have plummeted, with millions of houses unable to be sold.

Chinese middle classes, mainly from Beijing and Shanghai, are coming in for the cheap takings and buying up apartments in central Tokyo.

But on the outskirts of Tokyo, in Yokosuka, houses lie abandoned all over the place.

Some look as if they have been deserted for years and others as if the inhabitants suddenly upped and left.

The Japanese call them ghost homes.

In the 1970s and 1980s people came to Yokosuka to buy affordable real estate and escape the boom time prices of central Tokyo.

Now 14 per cent of homes lie empty and across Japan a staggering eight million are unoccupied.

Blackstone Group LP is seeking to raise $4 billion from investors for its latest real estate mezzanine debt fund, according to documents from an investor in the vehicle.

Blackstone Real Estate Debt Strategies III LP will originate and structure mezzanine debt linked to institutional-grade real estate in North America and Europe, according to a report to the Commonwealth of Pennsylvania Public School Employees’ Retirement System from the pension system’s senior portfolio manager for real estate, William Stalter, at its Dec. 7 board meeting. The pension board at that meeting committed as much as $100 million to the fund, according to its website.

The fund offers investors the opportunity to underwrite complex real estate deals where traditional capital is scarce, Stalter said in the report.

Fundraising for private real estate debt hit a record $24 billion in 2014, according to data from Preqin Ltd. At Sept. 15, prior to Blackstone’s raising, there were 56 closed-end real estate debt funds in the market, targeting a combined $26 billion, Preqin said.

Blackstone has lowered the performance hurdle on the new fund -- the return rate it is required to meet to receive carried interest -- to 6 percent, Stalter’s report said, because of the low interest rate environment. The firm has not set a cap on the fund, according to the report. A representative for Blackstone didn’t immediately respond to requests for comment.

Warren Buffet has taken a 8% stake in Seritage Growth Properties, a collection of real estate 235 real estate properties recently spun off from struggling retailer Sears. The REIT began trading in July and comes at a time when companies ranging from MGM Resorts MGM -2.65%, to Darden Restaurants DRI +0.00% and Macy M -2.78% have been pressured by investors to separate their owned real-estate from their operating businesses.

Tuesday, 8 December 2015

When it comes to designing and organizing the home to be stylish, people tend to get stressed. Especially for homes with big families, organizing a home stylishly is difficult. However, everything is easier if people listen to the bits of advice that designers give out freely. 

Elle Decor listed some pieces of stylish home organization tips for every household that are very much achievable. These interior designers belted out useful tricks they usually rely on in keeping homes organized and stylish at the same time. 

1. Tiffany LeBlanc encourages people to "Use the kitchen for family time - don't let it be a "drop spot" for paperwork, mail and kids homework. Designate another area for that day-to-day stuff and enjoy a clutter free space with your family."

2. According to Susanna Salk, "It's all about the editing: the less stuff you have, the less stuff you have to mess up. Make sure that every single thing in every single room is only what you love or only what you need."

3. "Make sure that every non-decorative item has a place to be stored. Additionally, the storage location should be in close proximity to the space that it will be used in and easy to access and put away, "Lori Margolis explains.

Many still ask if investing in real estate is worth the time and effort and the financial risks. Real estate generates a positive flow of resources. As in the case of rental properties income can flow steadily. Not to mention, property values tend to increase with inflation, according to USA News.  Real estate is also a great personal investment because unlike other commodities, real estate appreciates over time. Think of how much that property you buy now is worth 10 or 20 years from now. Moreover, think of how much rental income you can get in that span of time as well. So investing in real estate is worth it, and with wise decision making skills and a good start, you can even make a career out of it. There are things  to bear in mind when starting a career in real estate.

And what’s more, said Ely Razin, CEO of CrediFi, which provides the first source of hard data about the industry, his Jerusalem-based start-up consists largely of immigrants from the US and other English-speaking countries,


“Israel is usually known for its strong tech skills, and as a big data company, we have our share of data geeks,” Razin told The Times of Israel. “But to make this work as an Israeli company, we needed a lot of people who were experts in the commercial real estate, and we were able to find them among Western immigrants to Israel.”

CrediFi is an idea that has long been needed, said Razin.

“The commercial real estate market is worth trillions, but until this year there has not been a central depository of objective information about buildings, investors, landowners, and other essential, basic information an investor needs to make a good deal. That kind of data has long been around for the stock market and other investment markets – why not for commercial real estate?”

Razin is very familiar with those other sources of data. A former top executive at Thompson Reuters, he was recruited two years ago to help develop CrediFi. “The idea was puzzling to me, because it was hard to imagine that there was no automated source of information about this market – but an extensive study we conducted indicated that that was indeed the case.”


Monday, 7 December 2015

Local appraiser Gary Crabtree is out with his latest real estate report and it shows the housing market slowed in November as we head into the winter months. 

He says there was a decrease in the number of buyers as many people don't want to move around the holidays. 

That increases the unsold home inventory, in this case, to almost 4 months. 

Prices are holding relatively stable with a slight month over month increase in the median sold price to 213,000 dollars. 

The average size home that sold was roughly 1700 square feet. 

Saturday, 5 December 2015

AFTER watching their house languish on the market for 11 months, Keith and Cindy Palmer are getting creative.

The Bunbury couple want to downsize and are now willing to trade their $5 million waterfront mansion for a smaller home in Perth or the South-West — even if it means making a loss.

“We hadn’t heard of other people offering to trade before, but we wanted to be realistic about the market and thought we could potentially kill two birds with one stone by finding a buyer and a new home at once,” Mr Palmer, an engineer, sai

Former Labor Minister Wang Ju-hsuan has grabbed much public and media attention since becoming KMT presidential candidate Eric Chu's running mate — but, for all the wrong reasons.

Wang has found herself deeply mired in allegations over her dealings in the real estate market — allegations that are threatening to discredit what she has worked for as a human rights lawyer and labor minister.

Amid widespread public resentment against real estate speculation and a government campaign to curb soaring housing prices, Wang's alleged frequent transactions in the property market over the years are already enough to raise some eyebrows.

But her transactions have been exceptionally controversial because of the property market segment that she has specifically targeted.

She has admitted that she has engaged in trading military housing units, which are supposed to accommodate retired servicemen and their dependents. These units — built to replace old and shabby ones that the military personnel have been living in for decades — are not supposed to be items on the regular real estate market.

Indeed they aren't regular pieces of property, because there are restrictions on their transactions. The original owners cannot resell the properties within five years of obtaining them from the military.

But critics have alleged that many original owners have been tricked into committing to selling their military housing units for a low price inside the five-year embargo period, with the buyers reaping undue profits later by reselling them on the regular property market.

It remains debatable whether such transactions within the embargo period are legal, but Wang has been accused of engaging in such transactions.

Wang has admitted that she has been involved in the transaction of military housing units, but refused to provide details of how these dealings were handled.

The district headquarters city of Kakinada, which earned the name as education hub for decades, is now in the forefront for smart city status. Three cities viz Kakinada, Vizag  and Tirupati have been listed by Union Urban Development Ministry among the 100 cities across the country. As per the guidelines, 20 cities will get this tag, every year basing on the merits of project report. In this aspect, the cities in the lists face stiff competition among themselves. 

Under this scenario, the wide publicity on smart city status by both government agencies as well as private parties including realtors created real estate boom in Kakinada and surrounding areas.  As per the details available, the Urban Development Ministry will provide Rs 100 crore to the selected cities under this category and the rest of the funds for development will have to be mobilised by the respective civic bodies under PPP programme.   A realtor and former Kakinada  Rural  Mandal Parishad president VY Dasu said that the price of one square yard  in Kakinada city has gone up to Rs 50,000 from the earlier Rs 30,000  - 35,000 after the extensive publicity on smart city status.

YSR Congress Party leader and former sarpanch of Turangi panchayat  in Kakinada city suburbs, Adduri Phanish Ravi Raj Kumar said that the sudden boom had promoted many relaters to opt for unauthorised sale of agriculture land as house plots without valid conventions in Kakinada rural particularly in Kovvur, Turangi and Ganganapalli villages.  Due to this sudden rush to purchase a piece of house site, the price of one square yard crossed Rs 15,000 from the earlier Rs 8,000 -10,000 in the areas he said. 

Read Full Story: Real estate boom in Kakinada
Work on the first FDI real estate project in the city, named Celest, got underway here on Saturday at Gajuwaka, with the performance of "Bhumi puja".

According to Monish Row, Director, the project was awarded to the 90-year-old construction major, Simplex Infrastructure. "We want to give quality housing to the people at affordable prices," he said.

Of the 250 flats to be built in the first phase at the seven-acre site beside the highway, 90 per cent had been sold, he said. It would be a gated community with vaastu-compliant houses.

The project is being taken up by the real estate arm of SRS, a global investment firm. "We are working with SRS projects in other Indian cities too. We are happy to take up this major project," said Gautam Kar, senior General Manager of Simplex Infra.

Friday, 4 December 2015

Dec 4 Mexican real estate firm Cadu said on Friday it had priced its initial public offering (IPO) at 18 pesos ($1.08) per share, raising up to 2.4 billion pesos ($143.59 million) as it seeks fresh resources to boost growth and pay debt.

Cadu offered about 110.5 million shares in its primary offering, including its greenshoe option, and nearly 23.2 million shares in its secondary offering. The shares were sold in Mexico and on the Latin American Integrated Market, or MILA.

The price was below the 21.50 - 23.50 peso range the firm had estimated in its prospectus.

Cadu, which becomes the fifth IPO on the Mexican bourse so far this year, had sales of 3.19 billion pesos in 2014. It plans to use 300 million pesos from IPO proceeds to pay down debt and use the rest for working capital, purchase of land, and any costs of the issue.

($1 = 16.7147 Mexican pesos) (Reporting by Gabriela Lopez; Editing by Frances Kerry)

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