The process for development of Real Estates in Tripunithura varies from project to project; the various phases can be categorized into:
• Market research
• Site selection / feasibility analysis
• Due diligence / preliminary pro forma
• Property acquisition, perhaps using option to buy
• Project design / refined pro forma
• Obtain entitlements
• Financing / final pro forma
• Construction
• Lease-up / sales
• Operation (in cases where the project is retained as an asset)
The prime areas with no new supply ahead are the areas which are more expensive. The buyers are looking for areas where affordable housing is available at a very small premium over cost of construction. They look for an easily accessible location, high visibility and availability of basic services like transport, water, electricity, bank ATMs and also slightly away from the hustle-bustle, yet close to shopping areas. Infrastructure like elevators in multi-storeyed buildings and generators determine yield potential. Infrastructure like water and power supply, security, maintenance services and car parking space are some of the other issues to consider.
As the owner, one will be taxed on the annual value under the head income from house property, provided one does not use it for business or a vocation. The annual value will be the actual rent received/receivable. When the actual rent is less than the expected rent, the income from the property is taxed on the national rent expected rent. When property is rented out, the investor also gets an interest free security deposit and advance rent. The returns from this also should be considered. The key to investing in real estate lies in identifying growth areas and factoring in demand and supply for property.