The task of buying mall or residential property for financial investment decisions.

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JoPurchasing a property is one of difficult step in financial investment decisions. Real estate includes property for residential areas, companies (MNC or national) i.e. SEZ’s, hospitals, educational institutions and commercial malls. The malls area is divided into spaces according to different retail outlets of companies. The showrooms can be purchased by different of clothes, shoes, cosmetics, jewellery, furniture and interiors, stationary. The food court is available for leading restaurants collected at one point. The ATM spaces are meant for Banks (MNC or national). The mall property can be brought either with down payment i.e. one time payment or flexible instalments. The residential homes are available by a lot of developers and there is huge number of projects to choose from. The projects are mainly multi-storeyed buildings at excellent locations and construction facilities. These homes can be bought on loans. Banks which sanction home loans can be compared for their interest rates and money can be given in instalments after taking loans from the bank. Buying a home is advantageous over renting a home. Renting home is actually expensive ordeal and there is no sense of ownership since the home belongs to the landlord and money outflows are constant until you want to stay. After buying there is a sense of belonging and long-term support in the community of your own social caste. Now regarding the money part of it. The rates of homes are different in different localities and sectors. The rates are mentioned in market update of newspaper according to area or locality. The rates are mentioned in newspaper according to each square feet area. For example if the size of the house is 1800 sq ft, then this is the super area of the house. The rate mentioned is Rs. 5000/-, then the total cost is 1800 X 5000 = 90, 00,000/-. Apart from this there are certain other charges also. These are called Preferential Location Charges (PLC). There are different charges for choice of floor i.e. ground floor, first floor, second floor etc. For example if Rs. 150/- is for the ground floor, then the cost is 1800 X 150. PLC for road facing, park facing or corner facing is also there out of which one can choose any one. Additional charges are there like ECC (Electricity Connection Charges), EEC, ESC, FFC, IFMS, EDC, IDC, Power backup, lease rent. These are given per square feet and can be multiplied by BSP or the basic Sale Price or super area cost i.e. 1800 sq. ft. There is cost of car parking which is around 2.5 – 3 lakhs. Cost of club membership is around 1 – 1.5 lakhs. These are called GAC (Government Applicable Charges). There are certain taxes like service taxes, statutory taxes, stamp duty, concerned authority charges, governmental levied charges etc. There is a registration charge also. After paying total cost the possession is offered with the BBA or the Builder Buyer Agreement. After deciding on the location, floor, facing-area, the total cost has to be given for possession letter. The builder generally promises 12% return on investment done by the owner. The development done by builders after investing on property gives around 12% fixed returns annually. Appreciation is obtained by providing green areas. Green and healthier spaces should confirm to the environmental standards. These standards are those which make optimum use of natural resources and generate less waste. Use of renewable energy like solar energy for street lightening and home lights will lead to greener environment.

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