Mistakes To Avoid While Buying A Home

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

There is no feeling in the world that can compare to moving out of your parents’ house or rented accommodation and buying a home of your own. And while the real estate market is currently very much in favour of buyers – a true buyer’s market – buying a home as soon as you can afford to can sometimes be a mistake.

Some of the mistakes many first-time home buyers commit can have serious repercussions on the value that they are finally able to obtain from their property purchase.

Here are some of these mistakes:

Not Checking Out All The Options

Because of limited knowledge of the local real estate market or reliance on a broker with a limited portfolio, we choose a home merely because it fits our budget. There is a sense of helplessness involved – we wish we had more options, but there do not appear to be any.

This is a patent mistake. In any large city, new projects are being launched regularly and fresh options on the resale market become available almost every day. Any of these projects or units could represent a better deal.

Often, we buckle under the pressure of the real estate broker and accept that even this particular unit will be gone within a couple of days. If one is using real estate brokers at all, it makes sense to engage more than one of them as the spread of options increases dramatically.

Inflexible Focus On Ready-To-Move-In

In any growing real estate market, under-construction projects are cheaper than ready-to-move-in properties. In many cases, the locations and specifications of these projects are superior to anything that is currently available.

If one has been living in rented accommodation for a considerable length of time, opting for an under-construction flat, and waiting for a year longer can make a huge difference in capital expenditure as well as overall comfort and lifestyle.

You could have the benefit of a larger home and the advantages of better security, a clubhouse and a swimming pool for the same price that a normal ready-to-possess home would cost you today.

couple buying home

Failing To Get Home Loan Pre-Qualification

Very few people buy a home these days without bargaining with the developer – nor should they. This is a privilege that every aspiring home owner has, and it should definitely be availed of. However, attempting to negotiate with a developer without being able to demonstrate actual purchasing power is a mistake.

There are two essentials for success at the negotiation table – a down-payment and pre-qualification for a home loan. These two factors combine to give the developer sufficient reason to take the buyer seriously, and offer a better deal. Without them, he or she could be just another ‘window shopper’.

Not Factoring In Your Family’s Growth

A single bedroom flat or even studio apartment will doubtlessly meet the requirements of a bachelor or a newly-married couple. However, there is a ‘growth curve’ that needs to be factored in – most bachelors eventually seek to marry, and most married couples will have children.

Also, elderly family members who are still able and content to manage on their own today may not be able to do so in a few years’ time. In other words, it does not pay to think too small while buying a flat. It makes sense to budget for both finances as well as future needs while buying a home.

This is obviously not a complete list of the mistakes one can commit while buying one’s first home. But navigating away from the above-mentioned pitfalls is definitely a step in the right direction towards a satisfying and future-safe home purchase.

Image courtesy of Ambro / FreeDigitalPhotos.net

How Changing Demographics Are Boosting Real Estate Demand In Pune

Kishor PateKishor Pate, CMD – Amit Enterprises Housing Ltd.

We already know that Pune is no longer just a Pensioner’s Paradise (though it still is the #1 city of choice for retiring people in Maharashtra). At least three other factors now define Pune – the growth of the Information Technology, the massive spread of organized retail and the city’s changing demographics.

The last factor has had a significant impact on the demand for real estate in Pune, both in terms of sizes and types of homes. Until the late 1980s, residential real estate demand in Pune was driven largely by people who were working in a rather laid-back services industry.

The modus operandi for home purchase in those years predominantly revolved around saving up a sizeable financial corpus and purchasing whatever home was affordable in that budget, preferably with little or no leverage.

Pay scales were moderate to low, and a comparison with the far more favourable pay scales prevalent in Mumbai was inevitable. As a result, there was a more or less constant flight of talent and capital from Pune to Mumbai. At the same time, lack of international employment opportunities prevented Pune’s qualified youth from exploring their fortunes abroad.

As a result, the city’s residential real estate market catered to a very basic level of requirements. There was little incentive for developers to be adventurous in unit sizes, specifications and locations. Property rates – and therefore property investment potential – remained low as the city awaited new market triggers.

Then, in 1990, Pune began to emerge as a destination for Information Technology companies. At first, this was limited to BPOs who sought to capitalize on Pune’s considerable English-speaking manpower and its low property rates.

Nevertheless, the economic impact was visible almost immediately. Young people who, in the previously existing scenario, would not have reached any kind of impressive earning capacity before their mid-thirties began earning hitherto unheard-of salaries at the ages of 20-24.

This, coupled with the traditional desire for home ownership and ready availability of home loans, had a 360-degree effect on the requirement for homes in Pune. It also had an impact in terms of locations.

IT/ITES companies prefer to set up shop in the less expensive outskirts of a city, and people who work in these industries prefer to live close to their workplaces. With the emergence of Hinjewadi, areas around it suddenly sprang into sharp focus and demand for more central areas began slowing down.

Arcadia Entrance Lounge small
Arcadia Entrance Lounge, Sahakarnagar

The effect of the IT revolution on Pune’s real estate market has indeed been tremendous. Today, Pune’s developers are catering to an entirely different set of demographics than they did 15-20 years ago.

The onus is now large flats with ultra-modern amenities, and on locations which offer fast access to the city’s IT hubs. Simultaneously, the MIDC in Pimpri-Chinchwad is boosting demand for homes in its vicinity, driven by well-paid employees from those industries.

Today, the annual demand for homes in Pune is close to 46000 units, where it was less than 20000 units per annum just 15-20 years ago. While Mumbai is staggering under the weight of unsold units all across the city, supply and absorption of homes in Pune continues to make both property development and property investment eminently viable.

Even in such a vibrant market environment, Pune’s property rates remain relatively rational….home ownership in this city is a dream which can be translated into reality.

Current Vacancies At Amit Enterprises Housing Ltd

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Want to work with one of the top real-estate companies in Pune? Amit Enterprises Housing Ltd. is hiring and looking for the best people to fill these positions. Visit the link here to submit your application for the posts below.

http://www.amitenterprises.com/careers.html

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1. Position: Officer – Accounts (2 posts) (Male/Female)

Qualification: B.Com / M.Com

Experience: 5- 7 years’ experience, Preferable in construction industry

Responsibilities: Having knowledge & experience in day to day purchase bill & contractor’s bill passing / Payments, Handling day to day bank transactions / monitoring Cash & Bank fund positions etc., Having knowledge of indirect taxes – VAT & Service Tax etc./ Salary processing .Also having knowledge of Excel /Word, need to have ERP experience & preferred will be “Highrise”, etc.

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2. Position: Executive Assistant to CMD (Male/Female)

Qualification: Graduate/Post Graduate with Secretarial course

Experience: 5-10 years of experience

Responsibilities: Writing the minutes of meeting, coordinating with all HOD’s for reports, understanding the reports, briefing the CMD on the same, following up with the staff for their commitments given to CMD, reading & replying to the electronic mails/letters, managing the phone, preparing MIS report, preparing speeches and articles for important meetings and magazines, etc.

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3. Position: Personal Assistant (Female)

Qualification: Graduation

Experience: 2-3 years of experience

Responsibilities: Maintaining the dairy & calendar, coordinating for appointments, maintaining CMD’s daily routine, taking care of the travel arrangements, visa & passport renewals, maintaining the stock of stuff needed by CMD, greeting the guests, birthday wishes and greetings arrangement, etc.

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4. Position: Marketing – Executive (2 posts) (Male)

Qualification: Graduate / MBA – Marketing

Experience: 0-3 years of experience

Responsibilities: Handling the walk-in customers, presenting the site and detailed facilities, handling phone calls, attending to customer queries, sending the bulk mailers, updating the website contains, responding to website queries, efficient in e-marketing, should be confident, must know english, hindi, Marathi languages, capable to convert the enquiries into bookings, need to have ERP experience & preferred will be “Highrise”,etc.

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5. Position: Financial Analyst (Male/Female)

Qualification: CA/MBA-Finance

Experience: 5+ years of experience

Responsibilities: Must be very good in Statistical & financial analysis, must have good analytical skills, analysis of company profitability, analysis of project profitability, valuations of company and its projects, financial projections and profitability of new projects, interaction with FDI/Investment Bankers, Track or study FDI in targeted territories, mergers & acquisition formalities, experience in controlling and managing funds, need to have ERP experience & preferred will be “Highrise”, etc.

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6. Position: Company Secretory (Male/Female)

Qualification: CS

Experience: 3+ years of experience

Responsibilities: Pursuing Compliance of the commercial laws e.g. Companies Act, Partnership Act, LLP Act., To operate as Compliance Office of the Amit Enterprises & Group of entities, Working in co-ordination with appointed consultants, Arranging and monetizing Board Meetings, Periodic reporting to Board of Directors about secretarial matters, Maintaining Secretarial reports & ensuring safe custody of secretarial record, Complying with all pending legal compliances as on date, Complying year-end Statutory and Financial reporting requirement, Perusing and advising Company/ Group entities on legal draft of Joint Ventures, Private Equity, Loan Term Sheet & other structured funding, Advising Company on Foreign Exchange Transactions, Advising Company and its group entities on routine legal matters, etc.