Wednesday, 21 March 2018

Investing in Patna’s Property; Factors That Influence the Appreciation of your Property in Patna

We at always find sellers in Patna, particularly those who as investor went for a property in Patna for returns, asking too high a price than the relevant market price. The non- resident Biharis too are exorbitant We do understand that with no index to guide on the market value of the properties in Patna, the seller tries his whims and luck as a strategy. The only tool available to sellers in Patna is comparative analysis in the locality. The selling price is directly proportional to appreciation in the property prices. If anyone is investing in the Patna property market for rental yield; than both residential and commercial yields are negative, until and unless you have inherited a property, which many have in Patna? Therefore it’s better to invest in Patna real estate for appreciation and only appreciation.

Therefore prior to investing in a property in Patna, analyze which are the factors which help in appreciation of Property prices in Patna and also easy selling as the demand is higher.
First and foremost if your property in Patna is built and developed by reputed builder in Patna, then you can get your property sold much faster and easier. Secondly, the location and locality of your property in Patna is the most important factor which influences the appreciation of your property. Nowadays a number of people are looking for Vaastu-compliant homes; therefore this too is a factor to consider while looking for appreciation. One more factor related to it is that front facing corner homes fetch better prices in the same apartment or enclave. As light-filled homes are brighter and look more spacious. No wonder that light-filled homes appeal to the aesthetic senses of all potential buyers in Patna. First and second floors are the preferred floors for buyers in Patna. Top floor struggles the most while selling. The latest addition is amenities within the society or enclave. Amenities such as swimming pool, round-the-clock security, Club House, or any other facility are now appealing to young and old (retired persons) alike in Patna real estate. Cars in the last decade have become a part of Patna middle class living and therefore adequate parking spaces too help in appreciation. No doubt the future infra development in the locality helps appreciation directly, the burning examples are Gola Road and Shaguna Mode localities.
And the appreciation is also directly proportional to prevailing market conditions, the economic cycle. 
 Look for these before investing in Patna Property market as 2018 is the best time to get in Patna real estate.

Monday, 19 March 2018

Affordable EMI for Home Loan in Patna

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Mr. Kumar had recently purchased a 3 BHK flat in the Shaguna More area of Patna. The flat cost him around Rs.60 Lakhs including taxes. Besides saving, he had to take a home loan of Rs.45lakh. Now the biggest burden he faces every month is the EMI which takes away 35% of his monthly salary. With the ever fluctuating interest rates, home buyers in Patna like Mr. Kumar are having second thoughts on purchasing homes in Patna.

To keep EMIs affordable and also purchase the dream house in Patna, people usually go for long tenure home loans. However, many are clueless that the more long-term loan you apply for, the more interest you pay.
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As mentioned above, the long-term loan will make you pay extra EMI from the usual interest rate you are paying. The short-term loan will ensure reduced long-term financial commitment. A 15-year loan is quite affordable compared to 20-year home loan, which will also result in the lower interest rate. Moreover, the principal amount paid is fast leading to a lower interest rate.
A second way is to increase your EMI by certain % every year. You can increase your EMI payment rate yearly as your salary and other saving options increases. For instance, your salary increases by 10% per annum; you can increase the payment interest by 5 %. This will also help to repay your EMI within few years, rather stretching it for too long.
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And one of the best way to reduce the EMI rate is by paying the principal as quickly because lesser principal amount, lesser will be the interest rate. If you are carrying extra cash with you, then give it to the bank to get your principal amount reduced.
Therefore if you are feeling the heat of EMI monthly these are some ways to ward of the evil in the near future. 

Friday, 16 March 2018


After 31 July 2017, if an ongoing residential project or a new project that is more than 500 sq. meter or has more than eight apartments, wants to advertise or sell its units, it has to get registered with the real estate regulator of that state or union territory; as per the RERA ACT.
How many projects are going on in Patna? Who are the builders? What is the status of construction? Time till completion!!!
Home buyers in Patna have always been curious about these issues!!! Now they have a platform; RERA BIHAR website to look into these anxieties.
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Developers and builders in Patna just do not have to register themselves with RERA BIHAR but have to give all the details related to the project, to be put up on the regulator’s website for the public to see.  Now if anyone is planning to buy a property in Patna, Bihar most of the questions can be answered on this website, though at the time of writing the website needs a lot of updation and validation, but it is functional.
Once the home buyer has decided to buy a flat in Patna, the RERA BIHAR website can really be helpful in making a choice. The buyer needs to log on to t Bihar’s RERA website; (, the list of registered projects in your selected area will be displayed.
A buyer can also view the pertinent details of the project he is interested in Patna such as name of the builder in Patna along with its address, (and) track record in the market. Finding a reliable builder in Patna is among the most important factors for a home-buyer in Patna. Therefore, a track record of timely delivery and quality of construction matters a lot.
“Home-buyers can easily find the complete set of documents relating to the residential project on the Bihar RERA website, right from approvals to application for occupation certificate, along with the expected timeline projection. It will be possible to know the details about the sale of a project, which was not easily made known,” says KEY ACCOUNT Manager, Vikash Kumar of hyper-local real estate portal for Patna,
If you are planning to buy an apartment in an under-construction project, it is good to know how many units have been booked and how many are left. This indicates demand and interest of buyers in the particular project. Also, a real estate agent will not be able to mislead you, stating that only a few units are left and you should book quickly. For under-construction projects, it is important to know if its construction is going as per schedule. You can find “the date that the developer has committed for the project to be completed, as well as any revisions of this date; the current stage of development, information on the support infrastructure like water, electricity and internal roads, along with the progress made on them,” added Vikash Kumar.
Real estate agents in Patna have been known to trick home-buyers with misleading claims about projects. Earlier, the agents were not held accountable and did not have to register. In fact, the services of a real estate agent were not even a part of the formal process in most cases. Under RERA, they too have to register with the authority.
Thus, on the website you can also find out the names of real estate agents who are authorized to deal in particular projects. According to the Act, a ‘real estate agent’ is anyone who acts on behalf of one person in a transaction of plot, apartment or building and receives a remuneration as commission or otherwise. This includes property dealers, brokers and any other middlemen. They are not allowed to facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, in a real estate project or part of it, without having a registration number.
The real estate regulator’s website is supposed to provide a lot of information to the public. Bihar RERA ( website is functional. But BIHAR RERA website is not so well populated with information on developers, projects and agents till now. In our state, home-buyers have to wait longer to be able to use the regulator’s website fully in their home-buying process.

Friday, 9 March 2018

What is the Size of Flat, You are Living in Patna….

Builders in Patna are used to quote the price of the apartment in terms of super built-up area, without clarifying how the super built-up area of a particular flat in Patna is calculated. Majority of builders in Patna randomly load 20-35% of net usable area of the apartment to arrive at super built-up area.

The reason to charge on super built-up area, as interpreted by builders in Patna, was to cover the cost of construction of all common areas such as passages, staircases, lift shafts, lobbies and covered car parking areas.

More surprising was that even civic authorities in Patna, instead of discouraging the wrongdoings by builders in Patna, supported the illogical move, as they could get higher property tax, considering super built-up area of the apartment for tax assessment. In Bihar government authorities made it mandatory to mention the super built-up area in the sale deed of apartment, in order to earn higher stamp duty and registration charges.

Thanks to the recently introduced RERA (Real Estate Regulation and Development) Act,  in Bihar (has to be implemented all over country) which has made it mandatory for builders in Patna  to disclose the carpet area of each apartment and sale price to be quoted based on carpet area.

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Apartments In Patna

Once it comes to buying an apartment in Patna, there has been lot of confusion on the actual area of the apartment, as it is calculated in three different ways, namely Carpet Area, Built-up Area and Super Built-up Area. Let us understand what it means.

Carpet Area’, as the name suggests, is the space where one can spread a carpet i.e., the net usable floor area in the flat.

‘Built-up Area’ is the carpet area plus the areas covered by inside and outside walls, balconies and verandahs attached to the unit for exclusive use.

‘Super Built-up Area’ is the built-up area as above plus proportionate share of common areas such as reception, lobbies, staircases, lift shafts etc.

The new regulator, RERA has slightly tweaked the definition of ‘carpet area’ as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’.

It is very easy and convenient to measure net usable area of a particular apartment, areas of inner walls, external walls and all common areas, as floor plan drawings are drawn on CAD (Computer Aided Design) software. Thus calculations of carpet area, built-up area and super built-up area can be easily understood by the home buyer in Patna.

Since the ongoing projects are also regulated under RERA, the builder in Patna, who had earlier offered sale price on super built-up area of a particular apartment, is now obligated to offer sale price based on carpet area.

For a 2-BHK apartment, during March 2017, a builder had claimed the super built-up area of the flat as 1,300 sq. ft. and at the rate of Rs. 3,800 per sq. ft., and total basic cost quoted was Rs. 49,40,000.

Now, under the guidelines of RERA, the carpet area of the same unit is found to be 948 sq. ft. and super built-up area is found to be 1,221 sq. ft. The loading (the area added to carpet area on actual measurement of external walls, balconies and proportionate areas of common areas such as lobbies, staircase etc.), works out to 28.8% (28.8% of 948 sq. ft. = 273 sq. ft.) of carpet area.

For the same apartment, at the same price of Rs. 3,800 sq. ft. (super built-up area), the total cost works out to Rs. 46,39,800. Thus the builder was deceiving the purchaser of Rs. 3 lakh, by inflating the super built-up area by 79 sq. ft. (which was not existing), before the RERA era.

In this case, the purchaser who booked the apartment before RERA, not only lost Rs. 300,000 extra, he had to shell out higher VAT and Service Tax (amounting to Rs.13,000 apx.), stamp duty and registration costs towards super built-up area of 79 sq. ft. (non-existent), amounting to Rs. 20,000 apx.

Purchaser’s losses did not end there, as on non-existent 79 sq. ft. of area, he has to go on paying property taxes throughout the life of the building.

The illustration shows how RERA is able to bring transparency in real estate dealings and safeguard the interests of consumers. Now; home buyers in Patna will not be forced to shell out for non-existent 79 sq ft. as shown in the case above. Therefore till now most of the flat owners in Patna do not actually know how big is the flat they are living in???

If you have faced this kind of injustice, you can approach RERA for speedy redress of disputes/complaints. You need to complain to the Adjudicating Officer at the office of Bihar RERA who is expected to dispose of your complaint within 60 days of appeal.

Saturday, 24 February 2018

Ideas that help attract Home Buyers in Patna

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Buy Sell Rent Patna

The Patna real estate is changing gradually in terms of projects, innovation, schemes and approach. Both home-buyers in Patna and builders in Patna are adopting. Home Buyers are now becoming more demanding when it comes to new property purchase in Patna. On the other hand Sellers in Patna realty market too are doing their best to offer complete service for home-buyers in Patna. Innovative ideas are being deployed by sellers in Patna to make the buying and selling process faster and engaging for home-buyers in Patna.
Patna; though lags behind the national standards of being digital; is crawling towards the digital medium of attracting home-buyers. We can at best say it has just begun. The best thing is that it has started. The first check for most of the home buyers begin online and Patna too will shift to it. Currently the word of mouth and sales force induced sales dominate Patna property market but digital is the future.
Builders in Patna have a group of investors and financiers (exclusive groups, tightly held) who are the money pumpers in the early stage of their projects. This has worked for most of the builders in the past but with the advent of larger projects, with number of units going beyond 100, the marketing strategy will count. ROI will dominate the marketing budgets and going digital will be preferred option. Builders in Pat a will have to build their digital brand.  
Builders in Patna already work in Groups but now they will have to build larger digital groups called forums. Forums are the best platform for buyers, sellers and developers to get an update on the latest happening in Patna real estate platform.  Builders can connect with homebuyers with their offers that can induce them to buy and think forward to buy. 
Offers in real estate are exciting and create interest among buyers to buy the property. Developers in Patna too use giveaways and other strategic offers that make the buying process easy. When builders in Patna offer giveaways, the digital can take it to more buyers and strikingly fast. 
Transparency and trust are two important factors that home-buyers in Patna look for. The builders in Patna can provide all details related to their projects on digital medium; whether it is about the construction, infrastructure nearby, connectivity or future benefits. Detailed narrative about the project really attracts buyers to look forward to buying the project.
 Builders in Patna need to have a more personalized approach selling. They need to know what the buyer wants and the budget. Different home-buyers have different objectives towards buying a property in Patna. So while marketing the property, understanding the need of the home-buyer and then targeting makes the transaction smooth. This will help builders in Patna to adjust their strategy to create interest among the home-buyers in Patna and look forward to selling the property in Patna

The competition among builders in Patna (rough estimates say there are more than 200 builders in Patna) has increased in recent times and every builder does best to attract home-buyers in Patna. Therefore property selling in Patna now should be done with good research, patience and with a new digital approach.
Buy Sell Rent Patna
Buy Sell Rent Patna

Thursday, 22 February 2018

Best Real Estate Investment in Patna: - 2 BHK FLAT

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First and foremost the difference between investment and self- use must be clear, prior to putting money in any property in Patna. In self-use; while you pay for your own “emotions” and requirements; in an investment you pay for or put your money for returns in the best trend of the market, the mass. One additional feature for any investment in Patna is liquidity. In self –use you need not think about liquidity as you do not need to cash out in near future of 3 to 5 years but in an investment that is the objective. In Patna real estate, the investment can be in land (longer the term the better), for rental yields (commercial is better) and re-sale (for getting returns in 3 to 5 years).
We feel, especially in the residential segment in Patna property market, middle path is the best. Invest where the target audience is largest, larger re-sale as well as rental opportunities. No doubt in this regard 2 BHK flats in Patna score the best.
Patna middle class can afford 2 BHK the best. Patna property market has the highest buyer in the segment of 35 lakhs to 45 lakhs and size of around 1000 Sq ft. Larger number of buyers means higher demand and therefore better liquidity. People earning Rs. 50,000 to Rs. 75000 per month can afford to buy properties in Patna in such range through home loans too easily. Therefore there is a market for it.
Secondly, if you want to hold your investment for some reason then too the best rental yield in residential segment (read our article on rental yield to understand better) comes from 2 BHK flats in Patna.
The final advantage is the maintenance cost. The middle class in Patna does not look only for the maintenance it pays monthly to the society but also what the maid asks for the “Jhaadu- Pochha” seeing the size of the flat and many more such day to day things related to living in Patna. 

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Therefore, 2 BHK flats in Patna are ideal investment options because of larger demand by nuclear family and medium-sized families in Patna. Thinking practically and for the long-term purpose, investing in 2 BHK flat in Patna is certainly the best thing you can do for better returns.

Monday, 19 February 2018

Property Prices in Patna

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Property Rates Patna

“Good lord, they are too high.” They are unreasonable.
But at those prices only properties in Patna sell.
Interestingly the story of non- resident Bihari is more peculiar. If they have to buy, they will pull out a list of amenities which Patna has not even heard of. But the same person while selling his/her ancestral property in Patna, a city which is not livable according to them, quotes amazing high prices. Secondly, because they live outside Patna, it makes them feel they are Smarter and they even know more about Patna than a resident working 24*7 in real estate of Patna. These non- residents have another superlative attached for themselves; we are connected. That is how the entire real estate of Patna, is made up of; ignorance and arrogance.
The truth is that these non- residents live in sq.fts as little as 600 in the bigger cities all around the world and their life is dictated by work and weekend. As their work is defined so is their weekend, a good weekend and a bad weekend is pre- defined? They are typical stereotypes who internally know they have goofed up and the only place they boost their EGOS is back home. They envy the debt free life of Patna…they are under the debt of money and time and more significantly IDENTITY.
They fail to understand that the property prices in Patna are driven by “LAND”. The land of Bihar is very fertile. No data (we research a lot) reflects this basic truth. About 12 crores Bihari (residents of Bihar) sustain themselves just on fertile land and water available in our “Hamarah Gaon”. We do not have industry and IT to look forward too. Still this “HAMARAH GAON” has survived since five thousand years and more. The industry and technology is replaceable every 10-50 years; the land and water is not.

God has created diversity, so one rule fits all is fallacy and therefore the “SOCIO-ECONOMICS” too is diverse. Property prices in Patna are a reflection of this DIVERSITY.