Selection of Construction Site – Vastu Tips Part – 2

According to Vastu Shastra, the location of the Site is very important. Some  locations are very auspicious while some others are best to be avoided. Vastu Shastra lays down guidelines to aid you in the Selection of a Site with the best ‘Location’. Since Vastu is a science, every guideline is based on logic and reasoning. As an Architect, I have attempted to explain these guidelines rationally and scientifically, so that you can decide what you want to follow and what you don’t, instead of blindly following them like a superstition.

Ideal Location :-

Peaceful, calm place with lot of greenery and good water source and good soil.The Logic – Fertile soil is an indication of good soil for construction. Peace is what everyone seeks.

Trust your intuition: When purchasing a property, it is a good idea to stand on the land and feel its vibration for a few moments. If you feel positive about it, consider buying the land. If not, it is probably not good for you. The Reasoning – It is always advisable to trust your instinct but make sure you are not influenced by anything or anyone else.

Plot with a good history: It is best to buy land where happy and successful people have lived. The Reasoning – Psychologically, you will feel that a land where people were happy and prosperous, has good vibrations or energy.

Plot with roads on all four sides is considered the best: It ensures health, wealth and happiness. The Reasoning – This is because a Plot with roads on all four sides is not abutting any body’s property and hence one can derive maximum lighting and ventilation from all four sides.

The next best option is a Plot with roads on the North or East.The Reasoning – So that more light and air can enter from these sides in the mornings.

Plots with a water source in the North, East or North-East are good: The Reasoning– The germicidal UV rays of the morning sunlight, which engulf the North-East corner in the morning, can purify the water before you start to use it.

Keep Reading my blog for the next post on Selection of Construction site-Vastu Tips

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Selection of Construction Site – Vastu Tips

Selection of a Site: The Selection of a Site is very important since the Site represents a fixed form, that will radiate positive as well as negative energies depending on its location, orientation, shape, slope and soil quality. Therefore, these are the 5 important aspects to be considered when selecting a Site.

 Selecting a suitable Site: Normally an Architect is not involved at the time of buying a Site. But as an Architect myself, I suggest that it is better to involve an Architect early on, at the time of selecting a Site, as his inputs could be very valuable in deciding the right Site. Generally, the points an Architect will keep in mind while selecting a site, will by default be in accordance with Vastu Shastra, since Vastu principles are always based on Common Sense and Logic.

Already own a Site: In case you already own a Site, you can still refer to the Vastu Guidelines for Site Selection, to help you evaluate your Site and if necessary, make corrections to make it suitable.

Keep reading my blog for the next step to know how to choose a good construction site….

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Commercial Store – Interior Tips…

Most of the commercial interior designs that you may have seen in glossy magazines and also in trade journals won’t have failed to have impressed you because they are indeed very marvelous as well as beautiful, and the same goes for the many television commercials that also feature many different and excellent commercial interior designs. The end effect is that you will come away impressed and if you are a shop owner or have other commercial interests, and then the mere thought of incorporating the many different and attractive commercial interior designs that you have seen advertised should cause you to pay closer attention to these many interesting possibilities that can be used to boost your store’s image.

Type Of Floors, Placement Of Mirrors And Lighting Effects

So, if after all that you have seen makes you want to upgrade the look of your store in the hope that it will help boost your sales and also attract more customers, then incorporating commercial interior design would be an option worth considering. It will definitely mean making changes to the store, and even simple things such as the placing of mirrors within the shop, the type of floors, lighting arrangements and even the placing of clothes all lend them very well as subjects worth the attention of better commercial interior design.

The first thing that commercial interior design will need to address is where to place mirrors in the store which should help customers view the products better and also not mean having to use the dressing room each time the customer need to view how dresses look. Thus, what modern commercial interior design helps to do is to show you how to strategically place mirrors in the shop to get maximum effect though you must remember not to have more than are absolutely necessary.

Another way in which commercial interior design can help make your store look better is to have well polished floors and the proper lighting, especially when your products are of the casual kind, though for more formal apparel, you might be better off using black tiles for the floors that add a touch of chic to the overall look and ambiance of the store. And, the proper lighting will also help create a proper atmosphere that should nudge customers into buying your product, and soft lights will accentuate the ambiance, while fluorescent or harsh lights take away from it.

But, commercial interior design really comes into its own when it comes to deciding how best to display the products being sold and this is self-evident when you walk into one of the more upscale stores, or those which sell popular clothes. What good commercial interior design ought to do for your products is make them easily accessible to customers which might even require laying them out on tables, or hanging clothes from clothes racks. One thing you may want to avoid is to use the circular racks so commonly found in departmental stores, because they are not well suited for a store which must need to exude more modernity and which must be a reflection of good commercial interior design, and if it also reflects the owner’s own personality, then it would be that much more appreciated as well.


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Pre – Leased Commercial Property – Can give you a good return…..

The concept of rental yield is fast catching the imagination of investors in India, especially those in the metros. Investors invest in a property with a view to renting it out, so as to earn a fixed income. For retail investors, it is largely confined to residential properties, given their low investment capacity.

It runs with the weather as high interest rates and exorbitant prices deter them from investing as they result in less annual yield.

But UHNIs ( ultra high net worth individuals) are transacting in commercial properties which are still in demand and offer high annual rental yield. There is a healthy demand from corporate from the IT and BFSI segments, which en masse account for 60-70% of the total demand. While residential properties give 3-6% as rental yield, commercial properties offer a high rental yield in the range of 9% to 15%.

Pre-Leased Commercial Properties command high yields

There is no doubt that real estate holds the greatest attraction for UHNIs. Most investments happen in properties, say a pocket of land, commercial properties like readily available offices or industrial warehouses. UHNIs, say with a net worth ranging from Rs 25 crore to Rs 100 crore and even above, have been mandating wealth management firms or real estate advisors to pick grade ‘A’ pre-leased commercial properties.

These pre-leased commercial properties provide fixed income. Here, the aim is to lease out to quality tenants, earn lease income over a 3-5 year period and subsequently exit with a moderate to high capital appreciation.

There are mainly two kinds of commercial properties. The first is the lease-hold, mainly offered by government institutions like MIDC; they are leased to the buyer generally for a period of 99 years, extendable further. You actually buy rights to use the property and not the property per se. In a way, you are buying a property without really owning it. You have limited rights on what to do with the property.

The second is free-hold property – you become the exclusive owner of the property as well as the land on which it is constructed. It gives more right and responsibility to the owner. In India, a majority of the pre-leased commercial transactions happen on free-hold basis.

What decides the rental yield in these properties?

No doubt, the entry price is one of the biggest factors in determining the yield. Lower the price, higher the yield. Another key factor is the quality of tenants. If the tenant is a bank or an insurance firm, mainly PSUs, the property commands a rental yield of 6% to 8%. These tenants stay for a longer period and the property is less prone to hopping; hence, it commands a lower yield.

Commercial properties occupied by multinational companies ( MNCs) like foreign banks, investment banks, etc, or domestic firms like BPOs, IT/ITeS units as tenants generate high rental yields, say in the range of 8% to 12%. So, the question arises how a buyer can ascertain if the tenant will stay for a longer period. If the tenant is incurring a substantial expenditure, say to the tune of Rs 2,000 to Rs 4,000 per sq ft on interiors, it can be fairly assumed that they are going to stay for a longer period.

How to calculate the rental yield

The calculation is simple. You are arriving at a price after including the basic price, stamp duty, car parking charges minus security deposit. The annual lease rent is divided by the final price to arrive at a yield. Generally, the lease term happens for a period of three years, which on renewal commands an escalation of 15% in rent. Hence, the rental yield increases progressively every three years.

For eg, a project ABC having a tenant XYZ has a leasable area of 10,000 sqft and is quoting at a rate of Rs 5,000 per sqft. The total cost after factoring in the car parking charges (4 parkings @ Rs 5 lakh each) plus stamp duty (approximately 5%) is Rs 5.46 crore. The security deposit-adjusted outgo is Rs 4.92 crore.

The lease rental is Rs 110 per sqft which entails an outflow of property tax of Rs 30 per sqft. Hence, the net rent comes to be Rs 48 lakh per annum and, hence, a rental yield of 9.76%. If the rent escalates at 15% every three years, the yield increases to 11.78% in 4th to 6th year and 14.09% in the 7th to 9th year, considering other prices to remain constant. The above calculated yield does not incorporate the capital price appreciation, which can happen at any rate.

Ways to take exposure

If you have pockets full and belong to the high net worth individuals’ category, you can buy a pre-leased commercial property; so, typically, the transaction will range from say, Rs 5 crore to Rs 100 crore or even higher. However, for investors falling in the smaller bracket, say Rs 1 crore, it is best to enter through private equity-run real estate rental funds which open from time to time. They promise to deliver a pre-tax return (including capital appreciation) of 20% to 25% during the course of the fund’s tenure.

The ideas look promising but one must check all the factors related to them, including the quality of tenants and their likely period of stay. One should also check the vicinity and all paths approaching the property. Lower the distance from major locations like highways, railway stations, bus stands etc, better rent it commands.

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Commercial Property Purchase – Needs a well Inspection…

As a real estate agent it pays to have a good approach to listing commercial property. A system to the process is a good idea. Not only will a system help you ask the right questions, but it will show your professionalism to the property owners.

When you are listing in a competitive market place it is highly likely that another agent or two will be inspecting the same property later in the same day. It thereby follows that the agent that is the most
professional in the inspection process is highly placed to win the listing.
When times are busy you could be inspecting 2 or 3 properties a day for the purpose of listing. So a property inspection process is valuable to you in your listing conversions. I split the process into 2 levels as below.

My inspection process of a commercial, industrial, or retail property could be similar to the following:

The Preparation

· Check out the property title ownership detail before you get to the property
· See if any encumbrances or rights of way impact the property and if so how
· Get a copy of the local survey plan for the street and area
· See what the zoning and building codes do for the property
· See if there are any orders or notices on the property at the moment in the local building authority office
· Research the property sale and rental history over the last few years
· Review the tenant mix and lease profile from known leases
· Get details of recent comparable sales and rentals in the area
· Look for comparable properties in the same area that may be for sale or lease now and that could impact the marketing of the subject property
· What vacancy factors exist in the property currently?

The Inspection

· Check out the boundaries for the property and proximity to neighbours
· Walk the local street to understand visibility and access to the site
· Look at the signage of the property for identity and impact
· Review the building improvements for suitability and function. Are they what the market wants today?
· Get a copy of the tenancy schedule for review
· Ask about building income and expenditure performance (especially if the property is for future sale)
· Walk through the property with the owner or landlord whilst asking questions about current property performance
· Review lettable space and common areas for practicality and operation of the property investment
· Look for any vacancies and see if they are dragging down the function of the other tenants nearby
· Ask about anchor tenants if they apply in the property and get copy of the leases to see the terms of occupancy.
· Take plenty of photos that can help you later with notes and review analysis

When you inspect a commercial property for the first time it pays to have all the facts researched before you get to the property. In the actual inspection get more details from the property owner on current issues and concerns. As a general rule do not price a property at the inspection. It is far better to take the inspection information away for greater analysis. You can then formally present your findings to the owner at a later meeting.

Preparation is the key to a good property inspection. It sets the scene for the later listing pitch with the property owner. When you know all the facts and you have fully researched the property it is far easier to close on the listing.

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Home Office Or Outdoor Office – Which is Good ?

Is a home office appropriate for every business? Of course not. But, if you’re creative and disciplined, I think the positives far outweigh the negatives. What do you think?

Let’s break down the home office debate into personal and business considerations:

The Business Case

A home office is much cheaper. For start-up or established business, paying rent, utilities, and other costs for an outside office create a significant monthly revenue threshold. Plus, while tax guidelines are fairly strict, you can deduct some portion of expenses you would have paid personally, prorating utilities, some maintenance, and even depreciating the portion of your home you use for a home office. (Keep in mind taking depreciation can make accounting and tax considerations a little more complicated when you sell your home, so look before you take the depreciation leap.)

Increased (and convenient) availability. I have clients around the world, so I often adjust my schedule to their time zones. With a home office I don’t mind phone calls during non-office hours since walking down two flights of stairs beats driving to an external office every time.

Show never equals go. A fancy space at a prestigious address may initially impress potential clients, but eventually you are judged on the quality of your products or services. If you do great work no one cares where your office is located.

Your home office can be a home-court advantage. An outside office is to a home office what an apartment is to owning a home. If you rent or lease you’re limited in the changes you can make to the space, and when your lease is up those improvements are often lost. With a home office you call the shots and the money you save on rent can go to improvements. My home office is about 1,300 square feet, has a great view of the mountains, and the office dog can hang out with me. I hate to think how much a similar commercial space would cost.

A home office is like an entrepreneurial litmus test. Many people feel they will lack self discipline and focus if they work from home. Sure, you may feel you need the motivation (and validation) that comes from having an outside office… but when your paycheck is based solely on your output motivation shouldn’t be a problem. If it is, owning your own business probably doesn’t make sense.

The Personal Case

Adds value to your home. Turning your dining room into a home office could negatively impact the value of your home, but if you re-purpose unused space, or better yet add on, you benefit personally. Plus home offices are very popular with home buyers. A local real estate agent told me at least 2/3 of her prospective home buyers list a home office as a “must have,” even if only for personal use.

It’s greener. No commute = fewer emissions.

A home office creates more family time. One person left this comment on Michael’s article: “I just didn’t have the heart to turn away my 3-year-old daughter who was excited to have daddy at home all the time.” I understand the feeling, but think about it: Home office or external office, you’re not available. The only difference is you don’t have to face the fact your daughter misses you when you work from an external office; either way, she misses you. On the other hand, time spent commuting is family time lost. If your one-way commute is twenty minutes, that’s at least 160 potential family hours gone — forever.

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Which is Better – Apartment Vs Independent House

WHAT IS THE BUILDING CONSTRUCTION SCENE IN INDIA TODAY?

Growth and prosperity of an economy, to an extent is reflected in its physical appearance. In the last few decades the Indian economy has witnessed hectic and massive construction activities, new structures have been raised, townships have evolved and housing especially in the apartment segment has multiplied exponentially. And so today people have a lot more choices when looking for a house.

COMPARE AN APARTMENT WITH AN INDEPENDENT HOUSE IN INDIA?
APARTMENT: Nowadays most of the immigrants coming into cities are buying apartments for the following reasons:
The exorbitant cost of land and the headaches involved in getting it registered under their name.
People find it easier to buy an apartment from well known builders since the land registration problems are already taken care of.
Moreover, the society will look after things like power, water, utilities etc; leaving the apartment owner free from worries on that front.
In addition, apartments do have some perks like in-house gym, swimming pool, health clubs etc
Children have access to a secure play area.
Also, there is a feeling of security in an apartment complex.
The common areas and landscape are well maintained.

INDEPENDENT HOUSE: However given a choice, most people in India, will still prefer to construct their own independent house for the following reasons:
An independent house gives them the feeling of independence as they do not have to share common areas.
An independent house has space all around for gardening or any other activities.
The house owner can have it built expressly as per his requirements and to his liking and with his choice of materials and finishing.
The house owner has the option to add floors or increase the area of the building as the need arises.
The house owner can get additional income from renting out part of his premises.
The house owner need not pay monthly maintenance amounts.

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Bangaluru – After IT now its Real Estate Hub

Bangaluru has over the years gained immense popularity as the hub for IT industries in India. With great opportunities like world class education, working environment, living standards it is not wrong to mention it as the “The Silicon Valley of India”.
Many non-Bangaloreans now call the city their home. It is interesting to note that over 10,000 dollar millionaires and about 60,000 super rich people are currently living in the city with huge investments to make. All these have made Bangalore a hot spot for Real Estate Market, both Residential and Commercial.
Residential market has seen some significant action with many developers like Prestige and Sunil Mantri, Sobha, rolling out new projects in micro market segment. Some of the key areas in Bangalore, where the residential demand has picked up, are Sarjapur Road and Whitefield, Doddakanenahalli and, Jayanagar.
The supply is growing in line with the revived commercial real estate demand. Latest report from Cushman & Wakefield implores that the total projected supply for the current year is 12.42 million square feet of office space, more than twice the supply delivered in the year 2009.
Indian Market Research Bureau (IMRB) conducted a survey among 5 cities, amongst individuals aged between 25-39 yrs, stated that Mumbai and Bangalore are the most preferred places to live as the cities provide the best quality of life as well as the most courteous people. Bangalore is also identified as a city which is in the process of development on multiple counters – numerous projects have been initiated in areas of Infrastructure, Power, Water, and Sanitation.
All this indicates that this will be a good investment destination, hence attracting FDIs and NRIs fund flows as time goes.

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How To Find an Apartment

Finding an apartment to rent is a really time consuming and essential venture. It may seem like a challenging task in the beginning, but when one takes the time to become educated on the apartment options, the experience will be a lot more enjoyable. A lot of people fail to examine apartments completely, and have a clear idea of what they want. Consequently, the apartment shopping experience can frequently be discouraging. Looking for certain key elements in an apartment could make yield higher satisfaction.

When searching for an apartment, it’s always best to have an idea of what you want. Figuring out certain price ranges before you begin taking a look at apartments will save you a lot of time. Additionally, take into consideration what kind of apartment you would be enthusiastic about. How many bedrooms and indoor square footage an apartment has is very important to most people. Also, try to get at least some kind of idea of what type of neighborhood you are searching for. When searching for an apartment, you want something which will fit your needs.

Also consider the location. Location is very essential because of schools, jobs, and neighbors. Some apartments may appear extremely appealing, but are located in inconvenient places, or in bad neighborhoods. A few neighborhoods have too much noise and high crime rates. Better apartments will be far removed from these unpleasant elements. Sadly, the more expensive apartments are usually the apartments in better locations. This is an unavoidable fact, and ought to therefore be taken into consideration when searching for an apartment. Don’t let prices scare you into renting an apartment in a bad neighborhood.

Consider the owner and manager of the apartments. Learn if they have good reputations. The best managers are there for their tenants, and are always prepared to assist. The best owners charge a fair rent and avoid increasing rent. Some of the best owners will offer the best deals on appliances and services. When visiting an apartment, don’t be afraid to ask tenants what they think about the landlord and owner. If all of the reviews are positive, then you may have uncovered the apartment for you.

Look for apartments that have similar neighbors. If you’re a bachelor, then you might enjoy having neighbors who are single. If you have kids, then it is always a great idea to search for a family-oriented apartment complex. If you live close to people with comparable backgrounds, you’re more likely to form friendships, endure fewer conflicts, and have a much more fulfilling living experience.

Finally, think about the look of the apartment. Some apartments appear lackluster and seem filthy and unappealing. A good owner will take pride in his or her apartment complex. The best apartment complexes have good landscaping, paint
jobs, trees, and many other attractive elements. Most individuals want to be happy with where they live. Searching for a well run, appealing apartment is always a great idea.

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Benefits of your own House

It’s cheaper to buy a house than rent one. Living in a rented house is not easy because one should follow the rules made by the landlords. Many landlords will also interfere in the personal life of their tenants. But if you buy house you can live with your own conditions.

Buy house from a big builder is not always gives you the profit, it doesn’t matter whether the builder is big or small, some of them are only here for making money, they don’t bother about the loss of others they always try to make benefit for themselves by hook or by crook. So it’s better to aware yourself by asking from your friends or relatives and the best way is to take the aid of internet. Doing proper research is necessary for the buyer before investing the hard money in buying house.

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