WHAT ARE YOUR HOME BUYING GOALS?

With the dramatic fluctuations in housing prices over the last decade, consumers have new respect for homes as investments. But the flip side is that your investment is still a home, one you're likely to occupy for many years.

For most people, buying a home is about giving household members more comfortable living arrangements and putting them closer to jobs, favorite activities, family and friends.

What are your goals for buying a home? You might want a better home and neighborhood. You might want a different kind of living experience, such as moving from an apartment to a single-family home with a private garage and yard. Your family may be growing, so you have to think about school districts and proximity to parks and other recreation.

Affordability may also be an important factor for you. The combination of low interest rates and still-low prices allows you to buy more home for the money. Rents are rising, making ownership more affordable than renting in many areas, especially when you factor in tax incentives such as mortgage interest deductions and property taxes allowable as deductions against your income.

When you buy, make your goals long-term. Buy within your means, but choose the best home you think will serve your household's needs for the longest period of time. The longer you own a home, the more equity you'll build. Today's market conditions and affordability make it more likely that you will reach your home buying goals, no matter what they are.

If you're not certain, you might think about what would change about your situation if you became a homeowner.

You'll definitely be more established. If you're like most home buyers, you expect to stay in your new home about 10 years.

You'll also build equity for yourself, instead of for someone else. Every payment you make, plus the rules of inflation will eventually allow you to recoup most if not all of your investment, or make a profit when you sell.

Chennai in list of top 12 realty investment destinations

CHENNAI: Strong English speaking skills and a wide mix of industries that promotes cross pollination of work culture has made Chennai one of the top 12 cities in the world for real estate investments. This is the first global recognition the city has received; it is also the lone Indian city on the list.

The Candy GPS Report, published on Friday, identifies 12 cities around the globe with the potential to show strong residential property price growth in the next few years. The report — produced by Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management — said, “Prices in these rising cities are generally much lower than in the world cities, which make them more accessible and attractive to yield seeking real estate investors.” The list ranges from well established cities such as Melbourne, Australia, to centres in developing economies such as Jakarta and Chennai, that have a high number of ultra-high-net-worth residents, it said.

“While all of us acknowledge Chennai as an English speaking work zone, it is also a traditional banking domain speciality location driving inbound BFSI (banking financial services and insurance) businesses, which is a key differentiator to Bangalore and Hyderabad. Apart from these, Chennai has tremendous strengths in high quality healthcare and education systems, a key ingredient for future growth,” S Ramaswamy, chief consultant RECS Group, a real estate consultancy said.

Yolande Barnes, Director, Savills World Research, who conducted the analysis said: “As prime real estate in many premier cities has become more fully valued, emboldened investors are now spreading their wings and looking for high yielding secondary properties in those cities and (properties) in second-tier cities in countries with strengthening economies.”

For example, a two bedroom apartment in prime selling areas is priced at $1.60 lakh or Rs 96 lakh and in secondary ones they sell at $40,000 or nearly Rs 24 lakh.”This more adventurous approach is likely to not only provide higher income returns but also an opportunity for significant capital growth. Real estate values will grow as new cities all over the globe rise on fortune’s wheel. Property rents and values will rise in line with new and growing economic strength,” the report said.

Real estate developers in Chennai offer around 20% internal rate of return or IRR for equity investments in residential projects. While, commercial properties yield about 8-10% rental returns. Residential rental returns are 3 to 5% in the city.

“Chennai is typically an end user market which has a great mix of businesses. Its top tier medical facilities add zing to the city as an investment destination. More importantly, it is not seen as a luxury market like Mumbai, which means there exists tremendous scope for improvement of city skyline,” S Neelakantan, senior partner, CNGSN, a firm which has actively structured real estate investments said.

Reasons why OMR’s Real Estate Prospects continue to Flourish

Land in Chennai in the Central Business District may be a challenge. And even if it is available, prices are afforded only by the affluent. Pricing is one of the precise reasons why demand for both residential and commercial properties is pushed to the city’s peripheral and suburban regions.

 OMR is one of the earliest locations of Chennai that faced the first phases of Chennai’s real estate growth. It continues to be the most favorable location when it comes to real estate investment. There are many kinds of posh properties in OMR. The most modern flats in Chennai, opulent villas, beautiful farmhouses and state-of-the-art commercial structures can be seen at OMR and the adjacent ECR.

Besides location, OMR enjoys the significant advantage of sustained high real estate demand due to several other reasons.

1. Most areas in Chennai have been facing ups and down in the real estate scenario ever since the global economic slowdown. But OMR has shown realistic and stable prices and consistent demand even during these years.

2. Real estate buyers who have invested in properties or land in Chennai are sitting on exponentially high returns on their investment. The region has grown rapidly in just a few years and is also expected to do exceedingly well in the years to come. In the last 5 years, OMR has seen 21 percent hike in property values.

3. Although, OMR is one of the high priced suburban regions of Chennai; the area also has pockets that are affordable by the middle and upper middle income community of buyers. Kelambakkam is one such area to reckon.

4. Flats in Chennai, especially along the OMR stretch, offers an interesting contrast. They belong to the range from the most premium to the most affordable as well. Therefore, OMR has something to offer every kind of real estate investor. The most affordable category demand has spurted quick growth of residential properties along the 5 km radius of Kelambakkam. And the properties near the backwaters command a greater premium.

5. Proximity to IT/ITES hub drives majority of demand in OMR from buyers and investors from the industry. Flats in Chennai in OMR in the range of Rs. 40 to 60 lacs observe maximum demand.

6. OMR is the hub of immense developments. The elevated expressway from Madhya Kailash to Mahabalipuram, ELCOT SEZs, Velachery, upcoming railway line from Chennai to Pondicherry via Kelambakkam, Sholinganallur and Thoraipakkam invite interest from all communities of buyers.

7. Land in Chennai is not an issue in OMR owing to availability of land parcels.

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Best Way to Negotiate Your Real Estate Agent's Commission

You are ready to sell your home or business. You know that you are going to have to pay a real estate agent in order to get the best sale price for your property. You don’t mind paying an agent money, but you’d like to get the most for your money. Here are the best ways to negotiate your real estate agent’s commission.

• Ask up front for a discount. If you don’t ask, you won’t get a discount. The worst that can happen is that he or she will tell you no. The agent may also be able to tell you other ways to save money that may make up for the commission you have to pay.


• Plan to buy property that the real estate agent has listed. If a real estate agent lists and sells the same property, he/she will make more commission. Since he/she is making more, you can ask him/her to reduce the commission fees.


• Call or research other agent’s commissions. If your agent is higher, ask why. You may also ask him/her to match the commission fees of a competitor.


• If you are not satisfied with the real estate agent’s work and you don’t feel he/she should earn the commission, talk to his/her supervisor. Many times the supervisor will reduce or eliminate the commission fees.


• Talk openly with the agent and ask what you can do to help reduce the commission costs. Maybe he/she will allow you to show the house to save him/her time and reduce the commission costs.

How to Compare Real Estate Rentals to Annuities

Real estate rentals and annuities are two of the options that are ideal for retirement planning. It is estimated that half of the individuals who are retired are unable to continue their standard of living off of retirement income alone, there for it is vital to consider incorporating other options into your goals.

• Compare the risk factors of each type of investment. The risks associated with rentals differ according to a number of factors, some of which include the location of the property as well as the value of the property you are trying to rent out. The risk for annuities depends on the amount of money you have invested, as well as the activity within the stock market.

• Compare the different types of annuities that exist. If you opt for the life or fixed annuity, you have considerably less risk than if you were to choose the variable annuity option. This is simply because the variable option is directly dependent on the investment activity. On the other hand, the life option provides you with a set amount of return on your investment throughout the life of the annuity. 

• Take a look at the return on your investment with both the real estate rentals as well as the annuities. Determine whether the risk is worth the return.

• Consider the fact that you have to put in more effort in managing your real estate rentals than you do with your annuities. With annuities, you check on the status when you feel the need to. With rentals, on the other hand, you are expected to handle issues as they arise, which can be in the middle of the night in the event of a natural disaster.

How to build concrete footing and concrete forms

A wise builder once told me, a basement is a well we pray water will never enter. Those with basements will say, amen. According to the National Association of Home Builders, the #1 reason for builder callbacks is foundations. A properly designed and constructed foundation will never cause a problem, improperly constructed, it will never cease to be a problem. A concrete footing spreads the weight so the wall doesn’t sink, and it’s usually twice the width of the structure it supports. The concrete footing must extend below the frost line to avoid damage from frost heave. Check local codes to see how deep the concrete footing must be. To do its job without sinking or shifting, a footing must rest on stable, undisturbed soil. A concrete footing beneath a foundation wall also much have adequate drainage to avoid damage from hydraulic pressure. To make sure you’ve planned for the demands of your particular climate and soil conditions, consult with your local building department.

 In most situations, a concrete footing 22 inches wide and 12 inches deep, with three pieces of ½ inch reinforcing bar running through it, is strong enough to support a one story wall. But if the soil in your area is soft, your local building codes may require a larger footing.

Formed or unformed, a concrete footing must rest on undisturbed soil. If the soil is black, it almost certainly is topsoil and you must dig deeper. In most areas, undisturbed soil will be clay. In some areas, you’ll hit bedrock only a few feet below grade. A building inspector should approve pouring directly on top of bedrock, even if you haven’t dug below the frost line.

1. Installing Batter Boards

Lay out the job by driving in stakes to mark the wall’s outside corners. Place batter boards about 3 feet beyond these stakes by driving in 1+4 or 2+4 stakes and attaching 3 to 5 foot long horizontal pieces to them. Fasten with drywall screws. ( Nailing will weaken the stakes).

2. Laying out the site for concrete footing

Attach mason’s lines to the batter boards. Transfer the lines marking the outside of the wall to the batter boards by having someone dangle a plumb bob over the outer edge of each perimeter stake while you stretch the mason’s line. When the lines intersect over the stake, mark the points where the mason’s lines cross the batter boards. Now that you have marked for the outside of the wall, measure over on the batter board and mark for the inside edge of the footing. The outside edge of the footing, and the outer excavation line.

3. Dig trench and lay out for concrete footing

It may not be necessary to build forms for your concrete footings. Depending on your local codes and the nature of your project, digging a trench for the concrete footing may suffice. Digging a hole as big and as deep as needed for a concrete wall footing can be a slow, back breaking job, so consider hiring an excavator or renting a small backhoe or trench digger. Dig the trench to a depth equal to the top of the footing or to about 3 inches below the top of the footing if you will be building a form.

Use a plumb bob to locate the outside corner of the footing. Partially drive in the stakes that line up with the outside edges of your forming lumber. Follow the same procedure to position the form stakes for the inside edge of the footing.

 4. Level tops of the stakes

If there is a footing on the existing structure, drive in form stakes so the tops of the stakes are at the same level as that footing. Or drive a stake so its top is at the correct depth of the footing top. Then drive the outside corner stakes so they are level with those next to the building. Check for level with a line level or carpenter’s level resting on a straight board.

Tips:

 Using a water level for building concrete forms

With a water level, you easily can find the same level for two places far from each other, even if you have to turn a corner or two, step down an inclines, or climb a couple of stairs. This simple tool consists of two calibrated plastic tubes attached to a garden hose. Drain spigots and fill spigots let you fill the tubes and hose with water to the desired level. It works on the principle that water seeks its own level.

Using a transit for building concrete forms.

For small jobs, using a line level or water level to lay out a level or accurately sloped slab is most likely sufficient, but if you’d like to perform more efficiently and have a lesser chance for human error, consider renting a transit, or better yet a laser level transit. Transits are a small telescope like device that sits on a tripod. By sighting through it, you can determine level points across a distance. A laser level automatically finds level and shoots a red dot or line up to 200 hundred feet away or more. Combine a laser with a transit and you have the ultimate tool for finding level, ideal for large jobs or if you’re working along.

 Checking for square using the 3-4-5 method.

Drive in a stake at one corner of the slab, such as against the foundation, and attach a mason’s line to it. Working from that fixed point, check for square as you drive stakes for the other corners. Use the 3-4-5 method. Measure 3 feet from the stake along one side, mark that point with a stake or tape. Pull the line taut, then measure 4 feet along the line and mark the spot with a piece of tape. Make sure both measurements begin at exactly the same point. Measure between the 3 and 4 foot marks, moving the line until this distance is exactly 5 feet. You’ll then have a square corner. Drive a stake and attach the line. If you have room or have a large slab, use multiples of 3-4-5, such as 6-8-10 or 9-12-15.

1. Building and installing concrete forms.

The only forming materials you’ll need are 2+4s for the footing rails and 1+4s for stakes. Position the stakes, then secure the rails to them, making sure the top of each rail is even with or slightly above the top of the stakes. If the soil is firm enough to hold its shape when filled with wet concrete, dig a trench footing. Keep the sides of the trench even to avoid wasting concrete. For screeding guides, center a row of stakes about 4 feet apart, check the height of the stakes with a line level.

2. Secure and level the forms boards.

Every few feet along the length of the form boards, use a carpenter’s level to make sure parallel forms are the same height. Also check that the forms are level length wise. Drive stakes every 4 feet to anchor the forms securely. Make sure the stakes penetrate at least 6 inches below the bottom of the footing trench that you will dig to ensure that the form boards will be secure.

3. Dig the trench inside the form boards.

Once you are satisfied that the forms are level and secure, excavate an additional 5 to 6 inches of earth, the total depth of the footing should be no less than 8 inches. Keep the sides of the trench even with the form boards as you dig.

4. Step down concrete footing.

If your site is slop, you can step down the footings to save concrete. Use 2+8s and additional stakes. For an earth form make a wood riser that wedges securely between the two levels. Stepped concrete forms should rise no more than 2 feet per step, the upper and lower forms should overlap by at least 2 feet.

Weak concrete forms lead to disaster. Once a form bursts or bulges, usually all you can do is let the concrete set, break it into rubble, throw the pieces away, and start over. So always think on the side of caution, overbuild, rather than construct weak concrete forms.

10 cool summer tips for your home

The summer is upon us and it will only get hotter. These 10 easy to do tips for your interiors will not only make your house look beautiful and apt for the scorching summer, it will also help in bringing the temperature down. From the furniture and floorings, to the curtains and lighting, you can know what works during the season. So go ahead and get ready to give your home the right look and feel, suiting the season. This will not just be a fun exercise but will also make you fall in love with your home all over again. These makeover changes don’t cost much and only require a little bit of effort and creativity to give your home the comfort that sits well with the season.

1. Light Colours: The lighter the colour, the cooler the temperature. Try and pick lighter shades such as whites and creams for your curtains, upholstery and furnishings. Lighter colours act as a soothing balm during summers and work with respect to both the look, as well as the feel.

2. Softer Fabrics: Nothing works during the summer like cottons and linens. Make sure you keep that in mind while finalising your bedsheets, pillow covers and curtains. 

3. Cleaner Designs: Try picking either plain or minimal design fabrics to suit the ambience in summers. Don’t go for heavy blockprints or embossing. Going with the feel of the season, remember to choose the correct design for your home furnishings. Not just the drawing room and the bedrooms, the kitchen and the bathrooms too should have appropriate linens.
4. Summer Floorings: Get rid of those heavy, dark-coloured woolen woven carpets. Opt for daries and plastic carpets during summers. They are affordable, easy to maintain and apt for the season.

5. Minimal Lighting: With the blazing sun outside, you would not want an equally blazing lighting inside your house. Keep the lighting bare minimal to stay close to nature and away from extra radiation in an already hot environment.

6. Happy Planting: Nothing beats the hot weather like cool plantation. Chuck the artificial ones and go for the real, natural home plants. Water and air them regularly and see a change in the level of both the temperature, as well as the happiness quotient.

7. Water Connect: Whether in the form of fountains or in the shape of artifacts, you would want to connect with water in some form. It will help in cooling your home and soothing your nerves.

8. Summer Candles: Get hold of some economical, simple candles especially the floating variety that can double up both as air fresheners and help create a cool feel in the house.

9. Beautiful Blinds: You can redefine chic on your walls by going for easy to maintain blinds over the hassle of having overflowing curtains. To go with the summer theme, you can choose lighter shades, especially pastels to give them a bit of edge.

10. Clearing Clutter: Remember, during summers, less is more. In an already hot environment, you will feel claustrophobic if you do not clear out the excess clutter – be it furniture or artifacts or paintings.

Now all you need to do is get cracking and give yourself the joyful experience to enjoy a sizzling summer by adding some spunk to your home. Happy makeover.