Track2Realty:

Sanjay Verma, CEO for Asia Pacific said, “This move is in line with our five year strategic plan, which contains an aggressive expansion plan for our business in Asia Pacific. We have opened 5 new offices so far this year in Asia Pacific and we expect to open another one in the coming months. This new office in Manila will help us further increase the depth and breadth of our service offerings to our global clients and leverage the economic growth that the Philippines has to offer as an emerging economy.”

Arsh Chaudhry, Executive Managing Director for Cushman & Wakefield in South East Asia said, “We have aggressively been expanding our platform in South East Asia over the last 3 years. Over this timeframe, we have significantly augmented our leadership team in Singapore, added several key staff in Vietnam and expanded our already strong platform in Indonesia.  With this new office in Manila we now have a very comprehensive geographical coverage to help our clients across South East Asia.”

“We have opened an office in the Philippines because our clients are there and need integrated service offerings. We have already witnessed a number of our clients choosing to set up their back office and growing in the Philippines. This trend is set to continue. With a population of over 92 million, 93% literacy rate, one of the best demographic profiles in Asia and  projected GDP growth rates of 6-7% over the next few years, the Philippines economy is poised to grow from strength to strength. Efficiency pressures in Europe and the United States will continue to drive the outsourcing business further in the Philippines. The C&W platform will give us the ability to reach out to investors and occupiers globally and introduce best in class services in the Philippines,” said Arsh Chaudhry.

The Manila office will be led by Joe Curran who has been appointed as the General Manager. Prior to joining C&W, Joe was with CBRE Philippines for 8 years. During this period, Joe developed an in-depth knowledge of the local market and built strong relationships across the industry.

The Philippines economy is set to grow by about 5% in 2012, largely spurred on by increased government infrastructure spending and fiscal reforms. Property, as a sector, has shown sustained growth throughout 2012 driven by strong demand from the global outsourcing industry and a robust residential market. One of the main success stories in the Philippines over the past decade has been the rise of the outsourcing industry. Since the year 2000 this industry has grown annually by about 30% and by 2011 employed in excess of 600,000 people. This has had obvious knock-on effects for the property market with increases in both office and residential demand. Economic indicators suggest that this growth will continue as the outsourcing industry looks to break one million employees.

Is the Indian real estate sector the right place to make a serious career in now? Compared to more developed countries, the Indian real estate sector still lacks sophistication and transparency. However, it continues to be in the limelight of domestic and international investments. This has naturally brought on the need for better, more capable human resources.

Though real estate is not nuclear science, there is a fair degree of complexity involved. As in any other business, real estate businesses operate either on:

The basis of knee-jerk reactions to currently existing market trends and opportunities

A learned understanding of the market, anticipation of emerging possibilities and with provisions for market integrity over the long term

The first method is reactive and often opportunistic. The latter is based on information rather than gut-feelings, and results in assured growth rather than short-term gains via calculated risks. There is increased emphasis on the latter approach today – therefore, there is definitely scope for making a career as a real estate professional.

Real Estate Courses

The scenario is changing fast and there is a lot of professionalism coming in because of the arrival of major international players. Developers are cleaning up their acts and introducing best practices and higher transparency now, thanks to evolving market dynamics. People equipped with the right know-how, training and professionalism are in high demand, and are paid correspondingly.

There are a number of real estate courses that aim to equip their students with some requisite knowledge, thereby giving them an edge. However, academic learning needs to be backed by hands-on, practical experience in order to reap fruits. A real estate course is at best a means to an end, but certainly not an end in itself.

The emergence of Indian real estate as a new academic focus is, of course, heartening. Equipping students with a basic understanding of the real estate market is as valid as instructing them on stock market dynamics – knowledge of either field can open up various career possibilities and attract youthful progressiveness into the sector. Also, the real estate professionals of the future are responsible for bringing about some badly-needed regulatory frameworks in the sector, and for catalyzing a higher degree of transparency.

The fact that they now have opportunities for being academically prepared for this is nothing but positive. That said – should one choose to attend such a course, checking its accreditation and verifying that the courses are officially recognized is extremely important.

In the final analysis, no learning is ever wasted. At the very least, even rudimentary real estate courses can whet the appetite of our youth to acquire experience and proficiency in this exciting, dynamic sector. Here, as in every other business field, the instructed youth of today are the leaders of tomorrow.

The following are some of career options available in the real estate sector:

• Residential real estate broker – A broker dealing in residential properties may represent either the buyer or the seller.
• Commercial real estate broker – Such a broker sells hotels, office space and similar commercial real estate properties. He/she may concentrate solely on retail office space, mall space, industrial space or hospitality space. He/she is involved in extensive market analysis, since commercial real estate is a preferred investment sector.
• Real estate appraiser – Such people determine the fair market value of a home for sale. They assess the value of properties on behalf of an appraisal firm, a bank or even major private investors. They are involved in refinancing, too.
• Property manager – Such a person usually is part of a professional property management firm and looks after the investment of the property owners. He handles customers and manages lease and rent deals. Good negotiation and people skills are de rigueur in this line.
• Facilities manager – Facilities management as a concept has just begun emerging as the best possible route of maximize profitability and reduce overhears in large real estate projects such as residential townships, office buildings and malls. There is still a severe dearth of adequately trained facilities management personnel. Professional property and asset management companies such as Jones Lang LaSalle train their operatives on the ground.
• Real estate investment consultant – Such a person has extensive inside knowledge of the real estate market and advises property investors on the best investment options. His main focus is to locate properties that will appreciate in value.
• Project development experts – Such people are at the very nexus of the property market, and help create saleable properties. They advise developers on all aspects of the project, from the blueprint stage of final deployment.

]]> http://www.track2realty.com/looking-for-a-career-in-real-estate/feed/ 6 http://www.track2realty.com/how-to-identify-a-good-broker-ii/ http://www.track2realty.com/how-to-identify-a-good-broker-ii/#comments Thu, 12 Apr 2012 06:56:22 +0000 Track2Realty http://www.track2realty.com/?p=5914 One can also ask the broker about his networks by enquiring about all the areas where he practices. A qualified broker will be able to tap a wide network of other brokers, builders and individuals in a short time. One should check with the broker if he is an authorized agent for any developer. Also ask him about the average volume of transactions per month and about the volume of properties held by him, and the percentage of repeat customers.

One must query the broker on legal issues, the neighbourhood of a property in question, maintenance charges (in case of apartments), water situation, parking facilities, stamp duty rates, registration charges, capital gains issues, construction techniques, and the difference between the built-up area and super built-up area.

You should also check with the broker about home loan rates and the process of obtaining a home loan. A good broker would know about variations and pulse of the market prices within a neighbourhood or across localities. They are also familiar with the reputation of various builders and can help you avoid those who offer poor quality construction and delayed delivery.

Find out if the agent is a member of any local or national real estate association. Does the broker pay service tax? A service tax registration indicates that the broker takes his business seriously.

It is advisable to go to a broker who has an ISO 9001: 2000 certification. Also, a private or limited company is better and corporates and end users prefer them to an ordinary company as such brokers would have had the requisite clearances from registrar of companies and the government of India.

Currently, there is no guideline followed by brokers and there is complete lack of standardization in their processes. For standardization, the broking house can have ISI certification issued by international bodies. But this is not mandatory for broking houses in India.

Identifying a good and reliable broker is the first step in your entry into the property market. However, there are no defined policy guidelines in this highly disorganized business and Track2Realty suggests that one has to be careful judging the intent and credentials of the broker with certain tangible and intangible parameters.

Akanksha Sharma went on a house hunt in Ahmedabad only to keep wondering that how the price of a flat in the same apartment at Sanand can differ so much. With very many flats available it was also not a case of demand-supply mismatch. On a close scrutiny she found out that it was a case of getting into the murky world of property brokers.

Akanksha is not alone in having to face such a dilemma while on a house hunt. Property seekers across the country are regularly subjected to harassment at the hands of the property brokers. It seems while buying a house one has to get into the network of these brokers who in the absence of any defined policy guidelines drive the realty market as per their whims and fancies.

Every house seeker needs a good broker. The problem is how to identify who is a better one. It seems a good broker is something that every home seeker wants and only a few get. Identifying a good broker is half the battle won in your property search as one can then lead you to not only get the right property but also help in the loan process and other due diligence.

But the question is how to identify a good broker? Experts suggest a couple of tangible and intangible parameters on which you can select or reject a broker. First, the very obvious which you can notice by sheer observation-what is the size of the broker’s office, does he have facilities like phone, fax, email, a website. Also, how much staff does he have?

The broker should be accessible and have systems in place so that one can be contacted easily. A proper office demonstrates his commitment to the business over long term. It is a significant positive if a broker has more than one office and the location of his office in a prime commercial centre exhibits his financial muscle.

Next come things which you can inquire of a broker: Since when has the broker been practicing? Experience is an important indicator: Find out about the broker’s knowledge and ability to communicate effectively. A good broker can help facilitate the best deal by virtue of his or her knowledge of the market and save you a lot of pain by helping you navigate through legal glitches. One should also know which are the areas covered under his purview and his network partners, number of partners and areas covered through partners.

While insurance of buildings has been compulsory since 2001 as per the State Government’s byelaws, this has not been taken seriously so far. Almost 95% of India’s housing societies are therefore not insured. If and when the Urban Development Ministry finally incorporates title insurance in the Real Estate Management Bill, it will make ownership of built-up and landed property far more credible and secure. This will lead to renewed confidence among buyers and will definitely impact the real estate market favorably.

In the absence of proper title insurance, a property’s current owner can and often does find himself saddled with claims originating from previous owners, unsuspected heirs, old liens and various other unsuspected sources. When a proper bill is passed on title insurance, buyers will be assured that the property under consideration is safe for purchase. He or she will no longer have to depend solely on the developer’s assurances with regards to the title’s legal sanctity.

There will greater comfort levels in buying land and built-up projects. In other words, property transactions will be more transparent and therefore speedier, since even banks will be encouraged to grants loans with fewer misgivings. Developers can only benefit from such a scenario.

The passing of such a bill can also help in attracting more FDI in real estate. There is a greater risk factor involved for outside players when the assurance of protected land and property titles does not exist. There will be increased interest in the sector once we have such a framework in place, and this will doubtlessly reflect on the Government’s standpoint on FDI in Indian real estate.

The author, Badal Yagnik is Managing Director – Chennai & Coimbatore, Jones Lang LaSalle India.

When an experienced real estate agent guides a client through the intricacies of buying, selling or leasing property, he or she is basically ensuring that the client makes the right choices and is not taken advantage of. The wrong agent may, at best, lack the required competence  – and, at worst, take the client for a very expensive ride.

The Qualities Of A Good Real Estate Advisor
A competent real estate agent understands your requirements and is able to present clearly and impartially all available options that meet your needs. He maintains confidentiality, networks with other agents for your requirement and keeps your costs down. He listens to you, behaves ethically and does not try to rush you into a decision. He does all he can to get you the best deal possible – even if it means a lower or deferred commission – by pointing out to you the pros and cons of every option to help you make a better decision.

He gives advice on the risks involved in every offer before you, informs you of the available risk mitigation strategies and helps you with the paperwork. He communicates clearly – he will not tell you that every offer is the best. He has exhaustive knowledge about the local market, general market practices, rules, regulations and legal aspects that he shares willingly and succinctly. He performs the task he has been appointed for with the client’s best interest at heart.

He is professional, aggressively follows up on a mandate and adheres to all expected processes.

The Search

• Check the real estate agent’s background, review his track record and get references from past clients
• Evaluate his knowledge of the real estate market and its offerings as well as his willingness to go the extra mile for you
• Eliminate all prospective advisors who attempt to push you into a deal to make a fast buck or suggest unlawful shortcuts to legal procedures

When considering a real estate advisor, be clear on what you require of him or her. If you are not sure, use his expertise and experience to identify and crystallize your objectives – are you looking for an ideally located and appointed home for actual use, or are you more interested in investment potential?

Referrals from family, friends and colleagues are great sources for finding the right advisor. In the absence of such referrals, you can launch an initial search through newspaper ads and web listings. Interview at least two or three advisors in person and establish the person’s local expertise and database depth before you take a decision. Finally, clarify all aspects of the fees and ensure that these are in line with current market benchmarks.

Your choice of a real estate advisor has a direct bearing on the number of options you will have, the quality of information and the final price. By choosing the right advisor, you can save time and effort in finding the perfect home at the right price or selling your property at the best price possible.

The author, Ramesh Nair is Managing Director – West India, Jones Lang LaSalle India

There is little sense in being either carried away or prejudiced by the appearance of a sample flat. These flats are showcases, meant to incite interest and indicate the ‘lifestyle potential’ of the unit. Once a buyer gets a fair idea of how furnishings and colour schemes have been used, he or she should draw a mental picture of how it could be done differently.

A prospective buyer has – and should exercise – the option of asking for some or all of the showcased features to be included in the flat one wishes to purchase, but these will come at an extra cost. What matters at this stage is not the visual impact of the sample flat, but an understanding of how the available space in an unfurnished flat could be used.

Remember – regardless of the sample flat’s appearance, the developer will quote for the unfurnished flat, which means that the price includes the flooring, balcony area (if any), ceilings and walls. In sample flats of less spectacular mid-budget homes, the basic fittings are usually included in the quoted price. The buyer must specifically request for any additional features shown in a sample flat to be retained in the purchased unit, in which case these will appear in an annexure to the agreement as additional charges to the cost price.

That said, it is certainly true that sample flats can make a difference in a buyer’s purchase decision, and developers of luxury homes are pulling out all the stops to use them to maximum psychological advantage. This is well within the purview of fair market practices.

In some cases, visually appealing sample flats may help to detract from the fact that the project’s location is not exactly cutting-edge. Nevertheless, as in any other highly competitive market where advertising plays a major role, the onus of establishing the difference between real and perceived value always lies on the buyer.

The author, Mrunal Duggar, is Vice President – Residential Services, Jones Lang LaSalle India

However, now the National Institute of Real Estate Management (NIREM) has devised a specialized course which will not only enhance the knowledge and skills of existing real estate professionals but also prepare freshers for a career in real estate sales, marketing and brokerage. The course offers a step by step learning curve to understand the real estate business with particular emphasis on property sales, marketing and transactions.

Course objective is to provide comprehensive knowledge and develop practical property business skills that traditionally take years to acquire. With this knowledge and practical business skills, participants would be able to manage complex property transactions with confidence and success. Course participants would not be required to leave their job to pursue this course as the flexible class timings allow them to study as well as work.

With course curriculum crafted to address the evolving needs of the Indian real estate sector while adhering to NIREM’s high academic standards, participants would experience a program characterized by intellectual rigor, professional relevance, and have access to an extensive network of industry professionals.

This course is suitable for both the existing real estate professionals in the areas if property sales, marketing and broking as well those who want to get jobs in the real estate sector. This course is also suitable for people planning to start their own real estate ventures. The program is scheduled to start in January, 2011.

By: Ravi Sinha

In the year 2007 Preeti Banerjee bought a house in Royal Legacy, Vasundhara, Ghaziabad with the obvious high expectations of moving into a hassle free living. However, the dreams were soon shattered and she was exposed to the agony of an average middle class home buyer, often left alone at the mercy of the builders. What makes the story of this television producer newsworthy is the stark reality of how in the absence of any regulation, the real estate companies that flourished in the NCR region in the last one decade have made a fortune with the hard earned money of many like Preeti Banerjee.

The dream of the average middle class family to have ones own house has of late become nightmare. Delayed possession, default on design and construction parameters, mismatch of space in the guise of floor area & carpet area, the list of woes for home buyers seems to be endless. In the absence of any prescribed guidelines, the developers are often found collecting funds from the booking in one project and diverting it to either purchase more land bank or kick start another project. The biggest investment of ones lifetime is more often than not either compromised with or ends up in the legal battle. The number of cases in the consumer courts by aggrieved home buyers has skyrocketed of late.

In some of the cases the real estate companies have even scrapped their projects even after receiving hundreds of bookings. All this speak large about the absence of regulation in the realty sector and the developers taking the home buyers for a ride. The moot point here is that whether there is any grievance redressal mechanism in the system to protect the hard earned money of the home buyers? After all, buying a house is the biggest investment that one makes in one’s life. Unfortunately, here are very few who attain this feeling of owning a house.

The Model Real Estate Regulation Bill by the Union government is a step in the right direction. However, there is no clarity whether we will see it to get converted into an Act or Ordinance in the near future. Real Estate, after all, is a State Subject and there is strong opposition from the industry to regularize it. Moreover, the government may eventually be forced to set the benchmark for the sector, but it has so far shied away from granting it an industry status. There is a big question mark as to whether the government would be able to force a regulatory mechanism on a sector which has not been given an industry status.
In the absence of any regulation on the sector, it is the home buyer who has always been at the receiving end. Apart from the default on the part of the builder, the whole process of buying a house has always been a cumbersome and tricky affair. The purchaser has to undergo tremendous harassment and has to run from pillar to post to get all clearances from the concerned authorities. There needs to be clarity on the process of buying and selling a house; and not a system where a builder advertises that he needs all white payment in the given project. Does it mean builder is suggesting that black money is welcome in the sector otherwise?

The constant upswing in the real-estate prices has been one of the reasons that force the purchaser to be on guard while purchasing a property. Any lapse or carelessness will jeopardise his investment and the purchaser will not get a property with a good title to pass on to others. A bad investment decision with regard to purchase of property can be avoided if one takes due diligence. In the real-estate business, the value of an asset depends on four basic attributes- utility, scarcity, demand and transferability.

The author is the Managing Editor of Track2Realty