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Some Common Mistakes Made While Investing in Real Estate

Malvika — Mon, 23 Nov 2009 04:17:39 +0000

Why is the Real Estate market so lucrative for the investors? The answer is quiet simple, because it has all the capability of doubling or even tripling up the invested amount of money in a short span of time. Like any other investment there are a few mistakes that people commonly make, while they invest in the Real Estates.

Think before you act

One most common mistake that normally people make is that they do not think before they invest. It’s really important that while investing in real estate you should think it over a few times especially about your budget, the amount of returns expected, the locality that you choose to invest in, its future prospects etc.

Keep impulse away

While investing in real estate, you should totally stay away from impulsive decisions. Its very common that people take loans to invest in real estate and what they plan is that they would make up for the same through the gains that they would be making out of the property but at times the whole game turns upside down due to some unforeseen circumstances. Therefore it’s important that you should consider your budget and finances properly before you have really signed the deal.

Market Research to be done

Before you fix up the property to be invested in, ensure that you have done some god amount of market research about the property. Take out time to confirm the actual price of the property from different brokers etc, take multiple opinions about the future prospects of the property as that would help you gage the actual prospects of the property.

Be flexible

Investing in real estate does not involve any hard and fast fixed rules and there could be situations where in you would have to deviate from your original plan. For example in case you had original plans to sell off the property in 2 years time and then you are not able to find a good enough buyer for the property then you ought to consider renting out the property as soon as possible, may be for sometime, or for the next couple of years. That would definitely decrease your burden of having to pay large amounts as installments for the property and might earn you some amount of equity for the property too.

These are only some of the suggestions that would keep you safe while you have invested in a property, or if you plan to do the same. There are another thousand things that you ought to take into consideration if you plan to invest in real estate, which of course we would discuss some other day.

IT spending likely to fall 5.2% worldwide, says Gartner

Tushar Mathur — Tue, 17 Nov 2009 13:56:00 +0000

The worldwide IT spending is on pace to decline 5.2 percent this year. However, the IT industry will return to growth in 2010, with IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009, according to research firm Gartner. In Asia Pacific, IT spending is expected to grow by five percent to reach $515.6 billion in 2010.

Peter Sondergaard, Senior Vice President at Gartner and Global Head of Research, said that this represented a fast V-shaped recovery for IT spending in the region. Emerging regions will resume strong growth, he said. By 2012, the accelerated IT spending and culturally different approach to IT in Asia will directly influence product features, service structures and the overall IT industry.

However, growth varies considerably by country, vertical market and IT sector. Sondergaard said that while software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.

In Australia, the five-year outlook for enterprise IT spending is a compound annual growth rate of 1.3 percent, with total IT spending by Australian businesses to reach Australian dollar 56.4 billion by 2013. The vertical sectors with the highest IT spending growth would be communications (3.2 percent), healthcare (2.6 percent) and utilities (2.3 percent). While IT spending will increase next year, Gartner cautioned IT leaders not to be overly optimistic.

“While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012,” said Sondergaard. 2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of Chief Information Officers the IT budget will be zero percent or less in growth terms. It will only slowly improve in 2011, he added.

Sondergaard said that the three most-searched terms by Gartner clients on gartner.com provide some clues as to the priorities of IT leaders around the world. Cost remained the most-searched term during 2009, although it peaked in May, followed by cloud computing. “Next year will be the year when cloud computing moves from the discovery phase to small pilots, as part of organizations’ desire to move from owned to shared IT,” he said.

The third most-searched terms on gartner.com were business applications such as enterprise resource planning (ERP) and customer relationship management (CRM). “We believe that 2010 will see increased focus on optimization of business processes linked to software applications, what we call application overhaul. That is what will drive growth in the software segment,” Sondergaard said.

Agencies

©2009 Copyright by Invest In India

Increase of IT spending by 20-25%, says GE

Tushar Mathur — Wed, 30 Sep 2009 10:27:00 +0000

General Electric (GE) may increase its IT spending by about 20-25 percent for 2010-11, a step that can turn out to be a boon for several Indian information technology (IT) vendors.

Software firms like Tata Consultancy Services (TCS), HCL Technologies, Patni Computer Systems and iGate, who generate a significant amount of revenue from GE, are likely to benefit most from the increase in its IT budget.

A person close to this development said, “GE has allotted an additional $500-600 million for its IT budget during 2010-11. The firm may be looking to extend contracts with vendors like iGate and Polaris by three to four years and significantly increase its spending with large capital firms like TCS and HCL going forward.”

GE has already extended its IT contract with Birlasoft, estimated to be worth $50 million and $100 million and with Mahindra Satyam, worth $100 million by three years. The existing contracts for iGate, Polaris Software Lab and Birlasoft will end in December this year.

Agencies

©2009 Copyright by Invest In India

Tips for Saving Money

Tushar Mathur — Fri, 31 Jul 2009 17:37:37 +0000

Tips for Saving

Set financial goals
Saving without a goal is akin to traveling without knowing your destination. It doesn’t take you anywhere. Financial goals bring purpose and clarity to the saving process.

Save regularly
“Pay yourself before you pay others”. Saving has to become a habit and should be handled with equal importance just as any other monthly bill. By putting away small amounts periodically, you do not feel the burden since the process is spread over a long period of time. Earn-save-spend is the ideal approach rather than to save what is left after spending, in order to achieve your financial goals.

Start early
By starting early, you benefit from the power of compounding, rightly perceived as the eighth wonder of the world. After a certain period of time, your money grows exponentially due to the effect of compounding.

For instance, a recurring monthly investment of Rs 1000 over 25 years grows to Rs 13 lakhs at an assumed return of 10 per cent compounded annually. Starting early provides more options with regard to the possible investment avenues and also allows you to take on more risk since there is sufficient time to recover if an investment goes sour.

Create a budget
A budget is the most fundamental tool of personal finance. It gives you a clear picture of your financial affairs. It makes you live within your means and avoid unnecessary borrowings. It highlights areas of concern and facilitates elimination of wasteful expenses.

Watch your expenses
The first step in controlling expenses is to know where each of your hard earned rupee is spent. This would help differentiate between lifestyle expenses (avoidable) and basic living expenses (necessary). The former is the one that mostly causes a strain on your budget and needs to be controlled, if not totally eliminated. Small changes in the style of living can result in major changes in your saving corpus.

©2009 Copyright by Invest In India

Looking to buy cheap property in India ?

Tushar Mathur — Fri, 07 Mar 2008 06:03:33 +0000

Property prices have gone through the roof in the last few years. It is becoming increasingly difficult to afford a home, especially in the cities of India. Do low cost homes exist in today’s times? How can one find them?

Finding a home that fits into your modest budget may look like a dream, but it may not be impossible. Here are a few options worth looking at:

City outskirts

Most people wish to live within the city limits, so as to be closer to their place of work or school. Another reason is that day-to-day living and chores like grocery shopping and banking become easier with facilities close at hand. If you are willing to increase your commute time, a home on the outskirts of the city will cost you much less than one situated within it. Not only are prices outside the city limits lower, but these properties also appreciate in value, and are good capital investments.

Second hand purchases

A second-hand home will probably be cheaper than a flat in a new housing complex in the same neighborhood.

Early birds

If you are looking for a brand new apartment and can wait to take possession of your home, it would be a good idea to purchase the apartment before the project begins or is in its initial phase. The cost of homes is lower at this stage. Finding a reliable property developer is essential here.

Seller’s angle

If the current owner of the property is in immediate need of funds or otherwise has to dispose of the property urgently, you may be able to strike a better bargain with the seller. If the seller is in a hurry to sell the home, s/he may settle for an amount below the quoted price.

Refurbishing the home

You could begin with a property that would need repairs on purchase. A property that has been damaged or is not well kept sells for lower prices. However it is important to factor in the additional cost that you would have to incur immediately after purchase. If the overall deal works out cheaper than the cost of a similar property in good condition, it would be a good buy.

Build your own home

Acquiring a plot of land and building your own home is another option. This project also gives you flexibility on your finances. You could start with building the basic structure and add new dimensions when you have surplus funds. Of course this is a more tedious process than buying a ready-made home.

Owning a home is a dream shared by nearly everyone. Many people sink their life’s savings into purchasing a place of their own. Is this because of practical considerations, or do emotions come into play where a home is concerned? Does it make better financial sense to rent a place to live in, or to possess a property that you can ill afford?

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