real estate basics

REAL ESTATE BASICSBASICS

Agenda• Asset Classes• Real Estate Facts • Real Estate Categories & Types• Common Terms• Payment Plans • Major Players• Real Estate in India• Real Estate Consulting• The Investinnest USP & Differentiators

Asset Classes

• Physical:– Gold– Real Estate

• Financial– Equities– Debt– Mutual Funds, etc

Tangible Assets

• Real Estate• Gold• Silver

Value Of Money Over A Time PeriodImpact of inflation on monthly expenses of Rs. 30,000 today

Value of Rs. 100,000 over time

At inflation of 5%

Investors need to beat Inflation

30,00038,288

62,368

79,599

Today 5 years 15 years 20 years

100,000

78,353

48,10237,689

Today 5 years 15 years 20 years

Investment Avenues To Beat The Inflation

*Disclaimer: Return percentage are based on investments made for minimum 5 years Returns from Equities, Real Estate & Mutual Fund can vary depending on the quality of equities, funds & properties invested into

Investors can beat Inflation by investing in any of these instruments

Asset Return

Bank FD 9.50%

PPF 8.60%

Equity(NIFTY) 3.50%

Real Estate 15-20%

Gold 6%

What comes to mind, What comes to mind, When you think of When you think of

Real Estate ?? Real Estate ??

3rd- Linkages with other sectors

(IIM-A)

Annual growth 20%

+

Shortfall 21.7 Mn

(CRISIL)

80% for residential

2nd largest Employer (30 Mn)

Accounts for 6.3% GDP

Supporting 250 industries

(IIM-A)

2nd fastest Growing Mkt

World

Super Build-up area = Sellable areaBuild-up area = Plinth areaCarpet area = Usable area

• Fire Fighting ChargesFFC

• Floor Area RatioFAR

• 1 Sq Yard = 0.84 Sq Mt = 8.99 sq Ft

•1 Sq Ft = 0.11 Sq yard = 0.09 sq Mt

•1 Sq Mt = 1.19 Sq Yard = 10.70 sq Ft

• 5 Facts of ‘Real Estate’

• What is GM

• What is the other name for Saleable Area

• How is Useable Area diff from Saleable Area

• What is Investinnest Vision

• How do you Define Loading

•Why is Real Estate Growing ?

• Visual quiz…. Follows

DPP

DOWN PAYMENT PLAN (10% rebate)DOWN PAYMENT PLAN (10% rebate)1.Booking Amount 10% of BSP2.Within 45 days of booking 85% of BSP + 100% Add. Charges3.At the time of offer for Possession 5% of BSP + IFMS + Registration Charge + Stamp Duty4.Allied Charges includes PLC + DC + CPC + Club Membership Charges. + FFC, PBIC & ECC

CLP – (Independent) Floors

CONSTRUCTION LINKED PAYMENT PLANCONSTRUCTION LINKED PAYMENT PLAN

1.Booking Amount 5 Lac / 6 Lac2.On or before 60 days Complete 20% of BSP3.At the start of Excavation 10% of BSP + 50 % of DC4.On casting of Gr. Floor Slab 10% of BSP + 50 % of DC5.On casting of 4th Floor Slab 10% of BSP + CPC6.On casting of 8th Floor Slab 10% of BSP + Club Membership Charges7.On casting of 12th Floors Slab 10% of BSP + 50 % of PLC8.On casting of Top Floor Slab 10% of BSP + 50% of PLC9.On start of Masonry Work 7.5% of BSP10.On start of Clading 7.5% of BSP + FFC, PBIC & ECC11.At the time of offer for possession 5% of BSP + IFMS + Registration charges + Stamp Duty

CLP – High Rise

CLP – Villa On Booking - Rs. 25 Lakhs/Rs.30 LakhsWithin 30 days from the date of execution of Booking- 15% of the Sale Price less Booking AmountWithin 60 days of Booking - 7.5% of the Sale Price + 50% of EDC & IDCWith in 90 days of Booking -7.5% of the Sale Price + 50% of EDC & IDCOn start of Site Infrastructure Development - 10% of the Sale PriceOn Start of Unit Construction - 7.5% of the Sale PriceOn casting Basement roof slab- 7.5% of the Sale PriceOn casting Ground Floor roof slab- 7.5% of the Sale Price +100% of Club MembershipOn casting First Floor roof slab - 7.5% of the Sale PriceOn casting Second Floor roof slab- 7.5% of the Sale PriceOn completion of Brick work- 7.5% of the Sale PriceOn completion of External Plaster - 5% of the Sale PriceOn laying Internal marble flooring- 5% of the Sale PriceOn offer of Possession 5% of the Sale Price + IFMS +Stamp Duty & Registration Charges+ Govt. levies and charges (if any)

Note:1.External Development Charges (EDC) and Infrastructure Development Charges (IDC) are pro-rated per Unit as applicable to this project.. In case of any revision, the same would be recovered on pro-rata basis from the Applicant/Allottee.2.. Interest Free Maintenance Security (IFMS) – Rs. 100/- per sq ft.3. Stamp Duty/Registration Charges shall be payable along with the last installment based on the then prevailing rates.4. Service tax as applicable would be payable by customer as per demand (Basic: 2.575%; PLC, Club membership & Other Charges: 10.3%)5. Prices subject to revision at the sole discretion of the Company.

CLP – Plots Development Linked Payment Plan

1.On Booking - 05% of (BSP)2.Within 45 Days of booking - 10% of (BSP+PLC+EDC/IDC)3.Within 90 D0ays of booking -10% of (BSP+PLC+EDC/IDC)4.Commencement of alignment work for the roads of the block -10% of (BSP+PLC+EDC/IDC)5.Commencement of demarcation work of plot clusters -15% of (BSP+PLC+EDC/IDC)6.Commencement of demarcation of individual plots -10% of (BSP+PLC+EDC/IDC)7.Commencement of sewerage & drainage work of the block - 10% of (BSP+PLC+EDC/IDC)8.Commencement of electrification work of the block- 10% of (BSP+PLC+EDC/IDC)9.Commencement of metalling work of roads of the block -15% of (BSP+PLC+EDC/IDC)10.On Offer of Possession - 05% of (BSP) + 10% of (PLC+EDC/IDC) + IFMS

• Emergence of property broking as an industry happened for last 2 years.

• International brokerage companies have ventured in India generating a sense of curiosity about the untapped potential of the real estate brokerage market.

• The brokerage market in Delhi and Mumbai only accounts for over Rs. 700 crores annually.

• Only small regional players with relatively low levels of expertise are present.

• Fragmented market and regional flavour dominates the market; no single National Player of relevance yet present.

• Mis-selling, manipulation in discounting and hiding information

42

Top 6 metros provides >Rs.1500 cr revenue opportunities and accounts for > 80% of business …

Retail14%

Housing74%

Data Source: Liases Foros

Total number of units sold during last 12 months were 2 lac; valuing Rs. 1 lac core

Customers & Developer driven

Creating Benchmarks

Technological Edge - advanced web experience

Process Oriented – HIMSOC Excellence Model

Living Values

Action oriented Professional team

The Only Advisory based Property

Broking company in India

• Investinnest Website – research based advisory, property rating & ranking, investment guidance and vaastu scores

• Investinnest property specialists facilitate search, selection, buying and possession

• Advisory selling based on customer needs

• First Company with toll free number for Customer queries

• Investinnest special customer schemes & rates on selected projects