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Wednesday 25 November 2015

5 Tips on How to Get Good Returns from Your Property Investments

“Buy land. They're not making it anymore.” - Mark Twain

While it is largely true that real estate is a high yielding investment, in order to maximize returns, you need to know how to invest in property. Returns are largely volatile in the short term and one needs to make astute decisions to make the most of them. While current housing prices in India are in a slump due to higher supply, most property markets are expected to see turnaround and start pricing in a volume recovery in second half of 2016, said the Bank of America Merrill Lynch report. This is according to the article published in Economic Times on October 9, 2015.  This good news for those who are looking to invest in property in the near future, as long as they adhere to some basic property investment tips.

property investment
property investment

Essential Property Investment Tips


Upcoming Area: Real Estate is a high yielding, low risk investment, if you know how to invest in property. The best thing to do is to invest in an area that is growing instead of an already established area. The chances of value of properties in such areas appreciating are higher, as most popular areas reach a price plateau after a few years.

Value-Adding Amenities: If the property has recreational amenities nearby, its value is bound to increase. For instance, if it overlooks a park, or if it has a mall or marketplace nearby, it is a good investment to make. It is also a smart idea to go in for a property that is at its nascent stages of development with concrete plans of such amenities in the near future, as the chances of making a larger profit on it is higher.

Easy Access: One of the factors that push the price of real estate is its accessibility and proximity to public transport. If there is a metro station at walking distance, you can be sure it will be selling at a prime rate. If you invest in a property that is on the future route of the metro line, its value will increment considerably.

Schools and Hospitals: This is an essential factor that effects the marketability of your property. Most people who are looking to invest in real estate are those who are looking to settle down. Having hospitals and schools at close proximity to their home will on top priority. If your investment offers these facilities it will definitely not lack prospective buyers.

Business and Job Opportunities: Long commutes have become the norm in metropolitan cities. Therefore, properties that are closer to business hubs and corporate companies are sure to be in high demand. This is one of the most useful property investment tips to be kept in mind, as it has maximum bearing on value appreciation. 

Monday 9 November 2015

Looking for a Loan This Diwali ?

According to government estimates, only 4 percent of 57.7 million small business units in India have access to institutional finance, leaving many to rely on informal lenders, says an article published in Reuters in March 2015. Businesses need smooth and continuous flow of capital in order to function, expand and grow. Obtaining business loans from a bank is one of the most preferred options when it comes to fulfilling capital needs.

business loans
business loans

Types of Corporate Finance Solutions

Banks and non-banking financial companies have designed products catering to the specific capital needs of businesses. Listed below are some of them.

1.      Capital Market – This service lets business houses monetise their equity investments, such as shares, mutual funds, insurance policies and debt instruments, in order to raise long-term capital. Such a funding option lets you raise loans against shares, securities, mutual funds, insurance policies, and corporate and government bonds. You can also leverage/trade in equity shares at a per-defined margin, also known as margin trade funding and IPO financing. Customised and specialized solutions for every company are also offered.

2.      Corporate Finance – Corporate finance options are available to SMEs, and mid and large corporate houses. The various types of credit facilities available under this category aim to fulfil the working demand and growth capital needs of the businesses. Corporate finance includes working capital demand, term loans, SME loans, transaction facilities with bankers, line of credit, structured finance, treasury risk solutions as well as invoice discounting. You can also acquire credit under treasury risk solutions that enables you to protect your business against currency volatility.

3.      Commercial Real Estate and Mortgages – Property is leveraged to borrow funds for immediate and long term financing needs. This credit facility lets business houses borrow money through customized products, such as loans against property/property loans, lease rental discounting, construction finance as well as commercial property purchase loan.

4.      Project and Structured Finance – This product specifically provides financing for projects in the infrastructure, core, manufacturing, hospitality, education and healthcare sectors. Credit is offered for the project as well as for interim financial needs, for additional funding requirements beyond senior debt and equity as well as corporate loans that help companies tide over unforeseen/unplanned fund requirements by providing credit for general corporate purposes.


5.      Debt Syndication – This enables companies to raise short term and long term funds through the banking sector or the broader debt market. It basically refers to loan advisory services, where the lending company coordinates all activities related to syndicating a bank loan to meet various requirements of the borrower, which might include capacity expansions, working capital requirements, refinancing of existing obligations, merger and acquisition, and leveraged buyouts.