8-10% Growth expected in Housing Finance Companies in Financial Year 2022

Housing Finance Companies

We have recently stepped into a new financial year. The year 2020 saw the decline of various economic sectors. But it is safe to note that many sectors have recovered from the crisis. Among them, the home loans sector has seen particularly significant growth.

The demand for housing loans has risen over the last two quarters of the previous financial year. As such, recent reports suggest that Housing Finance Companies, in all probability, will see a growth rate of 6-8% this year and a further 8-10% in the financial year of 2021-22. Reports also recommend the growth of the Housing Finance Firms and owe its credit to the renewed demand for housing credit in the market.

How will Growth happen in the Housing Finance sector in 2022?

ICRA ratings suggest that most of the HFCs have achieved almost a pre-covid level of expenditure. They are now looking to further increase their disbursement during the fourth quarter of the financial year 2021. The recorded portfolio growth of the HFCs in the first nine months of 2021 was 4.3% from 6% of the previous year. So, the success of these companies is already quite noticeable.

However, according to the vice president of ICRA, the profit of the HFCs will remain moderate despite their growth. He says that the recorded GNPAs of the HFCs are higher than in the previous years. During the year 2020, the people faced significant economic stress. As a result, HFCs have witnessed an increase in overdue. The fact is evident from the rise of GNPAs of the HFCs. December 31, 2020, saw an overall GNPA of 2.7 from the 2.4 recorded on March 31, 2020. According to the vice president of ICRA, they are likely to remain inflated during the financial year 2021-22. Therefore, even though they are experiencing growth, their profits might remain low.

While that may be the case, vice president Sachin Sachdeva believes that healthy provision coverage can keep the HFCs' profitability intact. However, the surge of new covid-19 infections and the inevitable lockdowns of certain areas can pose a threat. They are likely to test the asset protection capabilities of the HFCs.

Summing it up

The reports suggest that the HFCs have maintained decent on-balance sheet liquidity. They have also lessened their dependence on various short-term funding sources and have significantly improved their asset-liability mismatches. If they can keep said liquidity, it will likely enhance their situation further in 2022.

Real Estate Sector Revival - Focus on consolidation

Real Estate Sector Revival 

After the post lockdown situation due to the Coronavirus pandemic, the famous real estate body CREDAI has rebooted itself and planning to work and consolidate towards the revival of the real estate sector. They will also engage with the government for further tax regime rationalism and secured infrastructure status for the real estate. The primary developer body of the real estate industry includes a membership of more than 13000 members in 217 cities and 21 states all over India. They are planning to operate towards enhanced inclusive development. It will help medium to small-sized developers who are facing the issues. 
The first quarter of the real estate business has witnessed almost 44% growth. But since the second wave of the coronavirus has become a concern. One of the biggest problems that a realtor faces in this sector is the working capital. Banks will not offer any working capital, and the interest rate is high. So, hopefully, by next year, the real estate sector will revive completely. 

 

According to the CREDAI National President, Mr. Vardhan Patodia, along with different other members of the currently elected association reported that the organization would offer free vaccination of more than 2.5 crore construction workers at the online sites of the member developers all across India. 

 

As the primary real estate body, the organization has rebooted them post the pandemic and representing themselves in the 2.0 version. The focus is now shifted to consolidation after the past year has passed on. They are exceptionally keen on collaborating with medium and small-sized developers and addressing their problems by discussing the issues with the government. 

 

Supporting the Start-ups

 

CREDAI will soon be setting up a start-up of the name Angel Network and Incubation and Acceleration Centre. It will be an initiative for the Research and Analytics centre, facilitating the real-time availability and authentic data for the future growth strategies of the real estate market. 

 

The start-up plan focuses on reviving the real estate industry efforts and offers a stimulus for boosting the business environment. The welfare further targets to commit to the skill development, labour welfare, and green buildings. 

 

This start-up network will assist and support the real estate agents by offering them access to the member network for business development. It will guide them everything through a hand-holding procedure. 

 

Conclusion

The first quarter of the real estate business has witnessed almost 44% growth. But since the second wave of the coronavirus has become a concern. One of the biggest problems that a realtor faces in this sector is the working capital. Banks will not offer any working capital, and the interest rate is high. So, hopefully, by next year, the real estate sector will revive completely.

3 Code of Ethics of Real Estate Investing in India

Real Estate Investing in India

You can develop, begin and create your real estate business by following different strategies. It might sound easy to set up but developing a profitable real estate business is difficult. Thus, what can you do to secure your business so that it will not fail over time? Well, we have bestowed some of the best three Golden rules for Real Estate that will offer longevity and sustainability to your Real Estate Investing business.

1.) Visualize the conclusion at the beginning :

One of the significant rules for Real Estate Investing for beginners is to always visualize the beginning's conclusion. Ask yourself what your dream business should be really like. It is good to have grand expectations from the business, as most successful businesspersons always think big. If you do not have any end targets clear, you cannot execute a detailed plan for them.

Visualizing and planning the desired result will help you to create a successful roadmap. You can set up the required milestones for every target and checkout if you have achieved them or not. It will also allow you to track every failure and progress. A fix and flip business runs entirely different from that of the buy and hold or a wholesaling business.

2.) Understand the numbers well :

The numbers can make or break any Investment in Real Estate. Every experienced real estate investor knows the REITs' understanding or the computations significance necessary for making the best purchasing decisions. However, most of the newcomers to the real estate business also ignore these numbers. Always keep count of the expenses, profit & loss reports, and operating costs. If you are not comfortable with the computations, then you have to find someone who will do it for you and report weekly.

3.) Always Scale your Business :

If you want to grow then scale your business, if you don’t then it will never reach its full potential. If you are not updated with the new techniques and technologies, your business will start to move downward. Marketing is one of the significant factors in scaling the business for Investment Property. Regardless of what niche of real estate you will be working for, you will require a well-crafted marketing campaign for creating a sustainable business.

Conclusion

By following the above three codes of ethics for Real Estate Investing in India, you will get to know where you will be going. So dream big and never stop trying to make the business bigger.

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How Young investors can benefit into real estate?

 

Throughout the years it has been witnessed that real estate owners are always profit gainers and gains are several in the long run.  The investors get a confidence of registering real estate asset under own name. When you have your own property saving on rent is maximum. There are numerous advantages of investing in real estate at young age; some of them are as follows:

1)  Makes most of time: As young investors you always have a chance of researching more and looking out for more options as you are not in short of time compared to the investors who already want to park in money or looking forward to good places for self or family usage. 

2) Availability of Easy loans: Even if you are on look out of long prepayment options the same could happen at early age too. The time frame you get and plus upper hand of lower interest rates.

3)  You will learn financial management in much better way: whether it could be managing your EMI, renting income, maintenance or any other expenses the habit of preserving is always in place.

4) Perfectly fit to market your property: Every youngster is considered to be tech savvy. Whether it comes to renting out property or selling out things after years, the same could be easily done and there is always master plan available on how to pitch for property.

5) Baby steps with early retirement plans: As you have started early you have lot of time credits. The test, try and then implement method will work at this stage. At early age you will be also done with your EMIs and therefore you could even think of retiring early.

You are bound to earn that fruitful gains if you make your retirement plans at early age.

How to strike that right deals and gain best prices for your real estate asset?

There are lots of ups and downs seen in real estate specially during the lockdown and chase of leading new normal. Whether you are looking out to sell or rent the property you need to have good marketing skills. If you are all game to get that best deals on real estate then here are some of the marketing tips you should follow:

 1) Taking up property to social media stage: As buyers too are looking up for convenience, the constant searches could be through social media. Putting up pictures and let the buyers inbox you if they are interested in property.

 2) Let them know the flexibility of reaching places: If there are things near you and closest proximity of daily needs let your buyers know them. The more of kind of exposure you give the more higher are the chances of buyers getting interested in you.

 3) Taking good photographs and videos: In the pandemic times even the buyers feel that it's impossible to ponder from places to places. Taking virtual tour of your space will allow the buyers to understand you more and they will look forward to close the deals.

 

 Where millions of people are looking to move in close by proximity its just right time to accelerate things and get the right deals and attractive offers whether you are selling or renting property.

Stay optimistic to create path of opportunities.

Stay optimistic to create path of opportunities.Fear of pandemic hitting health, financial losses and future uncertainties has created wave of negativity. We only survive as leader when we have good faith and optimistic nature. In these tremendously challenging times many of them face the question on how to stay optimistic and deal with the issues to the core? This sum up of tips will surely help you to be calm and positive, some of the tips are as follows:- 1) Being in fresh air and with nature:- In covid times many of us were in lockdown phase, closed doors also created wave of negativity. Try to explore yourself by planting more green in indoor space or be with nature by taking all adequate measures of social distancing and wearing masks. 2) Discuss things with family or closed ones: - Bottling up yourself with things will create things that could be frustrating instead avoid people who gossip often and be with people who talk about opportunities. Instead create memories to trying out some joint family skills. 3) Being thankful for everyday:- Survival in the pandemic is one of the greatest thing in itself. To begin your day with positive note, be grateful for things you have.Beginning with this simple rules will bring optimistic change that you want to see in your everyday life.

Basic terms of real estate one must knowKnowledge by its side is biggest gain for the property seeker

Basic terms of real estate one must knowKnowledge by its side is biggest gain for the property seeker. When it comes to real estate investments even smallest details do play a vital role. If you want to learn the smallest terminologies then do read this blog to get the insights that are as follows:-1) Carpet area: - When you go and acquire closed property, the area on which you could actually lay carpet is termed as carpet area. The higher the carpet area, the better is space you get.2) Built up area:- The sum of total area including walls, doors and carpet area is called as built up area. A good amount of 15% to 20% goes into walls and doors. Super built up area is generally higher that your carpet area. When you go to find property you will see that many builders do use built up area to showcase property.3) Super built up area:- when you hunt for property you will come to see the term like super build up area which has inclusion of built up area and along with all the common spaces like parking area and corridors etc. You will find that super built up area is much higher then built up area. Ask for proper specifications don’t get carried away with any kind of false hopes.4) Sub Registrar office:- When you are all set to buy the property then you will need to do registrations of the same and that officialdepartment is called sub registrar office and you could also check legal documents pertaining to properties or land. If a officer asks for any kind of bribes then you have the right to fill a RTI and put the application and state your complains.5) Encumbrance certificate:- This certificate is important to prove that that there is free title or ownership of property. This document is must to understand that if there is kind of legal or monitory kind of dues on property. This document will be required if a person requires any kind of home loan against the property. This certificate will also ensure that there are no other loans going on property. It may be required 15-20 days of time to get encumbrance certificate when you have applied for it.6) Stamp duty:- Generally this kind of real estate tax is collected by the Government and may vary from state to state. In some states it may be 3% and some it may be different. Generally the value of agreement is prime thing to decide on stamp duty value.7) Registration charges:- Same like stamp duty you also need to pay for registration charges again this differs from state to state.Real estate terms are crucial, but if you need to have any kind of crucial advice it is must that you should consult an expert. Many of the knowledgeable insights are shared in this blog and hope you have these terms in mind when you go for your next property search.