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As the dark clouds of an economic slowdown gather over the world, prices of construction materials have started to slide in the city. A few months earlier, prices of key commodities like sand, bricks, steel and wood had reached dizzy heights, now they are in a free fall. Sales of all these products have also come down from 25 to 40 per cent. However, the cost and sale of cement cont inues to remain stable even after mounting demand from contractors involved in construction of various irrigation projects across the State. Analysts attribute this to slowdown in real estate business in the State capital as well as in Vijayawada, Tirupati and Visakhapatnam. The meltdown has indeed slowed the construction activity with several Real estate developers hesitating to take up new ventures.

While some of them are only focusing on completing the ongoing projects, others are in a quandary over launching new projects. Steel erodes For instance, the cost of steel had touched Rs.40,000 to Rs.50,000 per tonne a few months ago, while sand and bricks zoomed up to Rs.6,000 and Rs.26,000 per lorry load respectively. These were all-time highs and gave jitters to middle-class families in accomplishing their dream of owning a house. The prices and sales of these products have now tumbled drastically. At present, the price of steel range from Rs.35,000 to Rs.37,000 per tonne, and sand and bricks stood at Rs.5,000 and Rs.18,000 per lorry load respectively. “Steep rise in fuel prices coupled with drop in sales led to the decrease in prices of sand and bricks”, said a supplier Vinay Kumar Yadav in Secunderabad. At least three lorry loads of sand used to be delivered everyday and now it is hardly one lorry load for every three days. “It’s a double blow for us with prices and sales decreasing”, he lamented. With sales of timber also coming down almost by 50 per cent, traders are requesting the government to reduce 12.5 sales tax to four per cent.

“As wood is most commonly used product, we appeal to the government to reduce sales tax to overcome losses”, said Sridhar Malani of Padma Timber Agencies in Bowenpally. Cement prices, however, remain stable. In Hyderabad, the retail premium brand cement range from Rs.230 to Rs.240 per bag and Rs.215 to Rs.222 per bag in Vijayawada. “Cost of the cement did not increase because there has been no substantial rise in its prices in the international market”, said Ramesh Chandro, Managing Director of Coramandel Cements Ltd. Another factor for present ‘precarious’ situation in real estate business is increasing demand for separate Statehood for Telangana region. As the leaders of all the main political parties declared support for Telangana, developers are now adopting a ‘wait and watch’ policy until next general elections. Some of them are not coming forward to develop independent houses into apartments with 60:40 per cent profit in even well developed colonies like East and West Marredpally, Sindhi Colony Begumpet and Sainikpuri.

Mahendra Varma has 3 years experience in writing articles; he is currently working as web analyst in http://www.maaproperties.com

Article Source: SuperPublisher.com

In all investments, timing is very important however unlike other investments such as bonds, mutual funds, stocks, and to name a few – there are two specific characteristics to real estate investing.

1. Most Real Estate transactions are a lenghty process.

2. There is a uniquenees to each piece of real estate.

In order to buy or sell property it takes a long time, and while the transaction is taking place, the market is constantly changing. This makes timing the purchase or sale of real estate tricky. When you are investing in real estate, you are trying to sell high and then jump back into the market by buying low. Timing the market in such a way is a challenge.

You need to look for property that is a “fixer upper” to get a good deal. If you know an inexpensive worker orhave experience for home repair, you can increase the value of a home by over 10%-12%. Search for foreclosure auctions and Notice of Default alerts in the area newspapers and online. Fsbo’s and REO’s. Find a good deal on property by anticipating positive change in depressed areas. Up-and-coming neighborhoods, in areas where people have been leaving tend to have lower prices. Find areas where the government is involved in development efforts. Check with your local Planning Commission.

Some investors I know, say that if a “Starbucks” is coming into the area, it is a safe bet that the area is up and coming. Now of course there’s much more to it than that, however it just may be a starting point. For myself, I would rather purchase before that.

The key to putting to use any of these strategies is having access to funding or capital. This doesn’t mean having an account with huge sums of money in it. Instead, you need to have access to money. By maintaining a high credit score, nurturing an efficient relationship with your lender for quick approval for financing, and having access to liquid assets, you’ll be prepared to jump when the right deal comes along. Do not forget your family and friends. These people may have the cash or credit you need. How about your’s or their Self Directed IRA’s.

Even in a slow market, the chance to make a profit investing in real estate is still likely. To do this, however, you’ll need to do your homework, have a long-term outlook, and be able to walk away from any deal.

Gino (NapoGino) Napolitano is a Real Estate Investor, Owner of the NapoGino Group LLC, A Chicago Real Estate Investment Co.
Seller and Buyer of Chicago Wholesale Investment Properties.

http://www.ChicagoWholesaleDeals.com

http://www.NapoGinoBuysHouses.com

Article Source: SuperPublisher.com

HCC Real Estate Ltd (HCCREL), the real estate arm of construction major Hindustan Construction Company (HCC), is in the process of entering into large size land deals. The plots, aggregating 1,550 acres in various parts of India, will be used to develop townships.
HCCREL is planning to invest Rs 1,000 crore in the initial phase of the project this financial year. Funds will be raised through HCCREL’s forthcoming IPO, Rajgopal Nogja, its president, told FE.
According to Nogja, “We are acquiring 1,000 acres of land in Nashik apart from 300 acres in Thane in Mumbai and about 250 acres in Pune. Plans are on the anvil to enter into land deals in markets such as Panvel, Kolhapur and Nagpur as well.”
Apart from this, HCC Real Estate is also planning an 80 acre slum rehabilitation scheme in Vikhroli East in Mumbai.
The company is currently engaged in constructing a 2 million sq ft IT park in Vikhroli. Nogja said, “The IT park will be a world class construction with gold rated LEED certification for green buildings. It will be ready for occupation in 2009. We hope to achieve very good valuation once the project is completed.” He informed that Future Group’s Pantaloon and Orange have already leased almost 30% of the park christened `247 Park’.
Meanwhile, Oxford University has agreed to set up executive education facilities in Lavasa, the hill station being developed by HCCREL in Lonavla, Maharashtra. In addition, Girls Day School Trust of UK and Christ College, Bangalore will also set up their campus in the hill town; MoUs have been signed to this effect.
While most of the infrastructure is ready for phase I of Lavasa, the construction of villas and apartments is in full swing. HCCREL has registered pre-sales of Rs 494 crore in the 2007-’08 financial year for the Lavasa project, against a target of Rs 99 crore.
HCC Real Estate is looking at setting a second Lavasa hill station project in Gujarat, on the lines of the one at Lonavala, said Nogja.
On future plans for the company, he said, “In the next three years, we will have a pan India presence. We will venture into new markets and set up townships and SEZs Gujarat and Goa.”

John Parker, the author of many articles regarding India Real Estate andCommercial Property in Indiais a Realestate advisor and giving assistance to the people for indiarealestate and providing information on Real Estate Market in India.

Article Source: SuperPublisher.com

To make the most money possible in real estate, the standard philosophy is to
“buy low, sell high”. Most people try to do this, and many do not succeed
because it’s hard to do. When trying to get the highest return possible, keep your
costs down and do everything possible to draw in the highest bidders.

Once you own the property, do as much of the repair work yourself, as long as it
is of a professional level. You can hire out, however make sure there is enough
money in the deal for everyone. Shoddy work and inferior materials will cost more to
correct later. With difficult projects, hire a trained professional from a small scale
operation. Large contractors with several employees have to factor their large
overhead into their prices.

When looking to maximize your profits, try to save money with your lender. Look
around for cheaper loans with the less popular lenders. The large banks and
financing companies usually have high fees and rates. Don’t accept overpriced
fees. For example, your lender is charging $75 to deliver a few papers a short
distance, ask for it to be reduced.

By educating yourself on the legal and accounting aspects of real estate
transactions, you can save yourself thousands of dollars. If you learn the basics
of these two areas you will know when to ask for a professional’s help.

When negotiating, be firm but flexible. Attempt to find a win-win situation where
both you and the other party walk away from the table happy. Be clear on what
you want, and what you can be flexible on. If the other party walks away angry
and feeling cheated, they might try to sabotage your attempt to make a profit.

If you are selling your property, it’s important to also shop around and negotiate
for the best prices on high priced items, real estate commissions, and closing
costs.

“Staging” is setting the scene by making your property look its best. You will get
the highest price for a property that has been properly prepared.

Actively market your property and you’ll get the largest pool of potential buyers
possible. It is a benefit to the seller if there are several interested parties in your
property.

Gino (NapoGino) Napolitano is a Real Estate Investor, Owner of the NapoGino Group LLC, A Chicago Real Estate Investment Co.
Seller and Buyer of Chicago Wholesale Investment Properties.

http://www.ChicagoWholesaleDeals.com

http://www.NapoGinoBuysHouses.com

http://www.MakeBigMoneyWithNapoGino.com

Article Source: SuperPublisher.com