Monthly Archives: August 2018

10 THINGS TO KNOW BEFORE BUYING A FARM LAND

 

1. Find a Quality Farm / Agricultural Land Real Estate Agent:

Many real estate agents are knowledgeable only about property and houses in cities. So find agent who knows about farming, farm house and other important details like soil types and water. A good real estate agent will guide you in all complicated issues. Rural real estate is complex, so finding a good agent / professional property management consultant experienced in land purchasing is a necessary investment.

2. Proximity to Local Markets:

Need to check on how close is the local market and distribution channels from farm? If you have to drive many miles before you reach your local farmers market, is it worth the cost, energy and time associated with the distance? Check for any stations or airport nearby for future advantage. Also check about other farms nearby that also have to make the commute.

3. Land History – Physical and Cultural:

Look for the stories associated with the land, what sort of people lived or how it has been formed or originated. See if you can find out about previous land management practices, about water usage, flood irrigation, cattle and hay ground, etc.

4. Infrastructure:

Is there a barn or houses or other building on the property? Does the farm have any fencing or any motors or equipment? It is important to know about your investment after you purchase the land. If your farm already has fencing, barn, irrigation pumps, wells, etc. it will be asset to your new property.

5. Site Evaluation:

Visit the farm a couple of times to evaluate the site for your farming purpose. Check on the farm has good sunlight exposure? Is the farm located in a high valley that has its own micro climate? Analyse whether the soil is suitable for cultivating crops, fruits or vegetables with good yield.

6. Legal rights / Encumbrances:

Make sure the entire title report and the full attachments that go along with the property. Hire a lawyer if need to review the documents. Typical easements include road, power and irrigation easements. Know who can come onto your property and to what extent.

7. Neighbours:

Neighbours are an important asset to our house we live. Make sure you try to meet your neighbours beforehand, if possible, and get on good footing before you buy. A neighbour who makes your living peaceful without hassle. A good neighbour is indispensable in the rural setting. There will be times when you need them.

8. Taxes and other levy:

Have clear idea about the taxes and other government levy’s to be paid every year. The electricity charges, servant wages in that locality and other charges related to the farm land. This might require for budget planning and expense management.

9. Land /Soils:

Examine the soils, water, land area and irrigation facilities is also a good idea. You can bring up a aerial view of the property. You can get idea about the property locality, segments, animal units, houses, crops, etc. If you are interested in organic production, it is wise to test your soil for heavy metals and residues that may inhibit your ability to grow organically. This can be expensive but worth investment.

10. Water:

Water is most important resource for a farm land. Ensure sufficient water resources are available on your property. Check for irrigation method like centralised irrigation, etc.  Also check your drinking water sources, water treatment and power plant for water. How the current water sources are utilised. Check for the availability of ponds, creeks, wells or waterfalls. Most of all is willing to spend some extra time and money for peace of mind.

Knowledge is everything.

Government order lifts ban on multistorey buildings in Chennai

In a government order, housing and urban development secretary S Krishnan said the approval of the government was based on an announcement made in the assembly

 

CHENNAI: The government has lifted the ban on construction of multi-storeyed buildings (MSB) on approved plots in the Chennai metropolitan area (CMA). The move is expected to trigger a spurt of new multi-storeyed projects in redevelopment ventures, mostly initiated by the TNHB.

 

In a government order, housing and urban development secretary S Krishnan said the approval of the government was based on an announcement made in the assembly. However, there would be restrictions on construction of MSBs in select areas. As per the order, MSBs will not be allowed in aquifer recharge areas including the Buckingham Canal, areas near the Cooum River between Park railway station and Napeir Bridge and Redhills catchment areas.

 

Realty sector sources said the move would ensure more space within the city for MSB projects. Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai chapter vice-president S Sridharan, said the move would result in developers revising their existing plans from special category buildings to MSBs. “The development regulations of the CMDA allows MSBs only on roads with a width of 60 feet. Against the backdrop of the government order, it is likely that revised applications could be filed for proposed projects that would qualify for constructing MSBs,” he said.

 

However, the question of developers renegotiating with land owners in joint ventures passing on the benefits following the move remains unanswered.

 

Commercial leasing activity set to pick up in Chennai

The pre-toll micromarket on the OMR accounted for almost 28% of the total leasing activity in the city

 

Commercial real estate registered 1.08 million sq ft of leasing activity in Chennai in the second quarter of 2018, taking the gross absorption in the year so far to 2 million sq ft. The second half of the year could be more promising and 2018 could surpass the five million mark achieved in 2015 and 2016, ‘India office property market overview,’ a report by Colliers International, said.

The pre-toll micromarket on the OMR accounted for almost 28% of the total leasing activity in the city. The Mount – Poonamalle high road and the central business district(CBD) regions contributed about 20% of commercial leasing. Posttoll OMR accounted for 14%, the report said.

Doing a projection for the period 2018-21, the report said demand for leased office space in Chennai is expected to remain consistent. Small and medium scale occupiers looking for space are expected to target Guindy, while large occupiers looking for economically cheaper options are likely to look at the post-toll OMR and Mount-Poonamallee high road.

There is an upcoming supply of 14 million sq ft of office space between 2018 and 2021, which will increase the total stock by about 25%. The rental during the period could increase by 3-4%. Meanwhile, the vacancy rate may remain at about 11% by the end of the year.

 

In a related report, Colliers and Rics India said that the country witnessed real estate investments worth Rs 156 billion in the first half of 2018, up by 26% compared to the corresponding period last year.

Commercial segment dominated as global players like Blackstone, Brookfield and Xander remained bullish and pushed institutional investment in Indian real estate. Over the past two years, well-capitalised institutional investors have been elbowing out private developers in ownership and management of commercial real estate. Blackstone LP’s acquisition of One Indiabulls Parks at Ambattur for Rs 900 crore shows an increase in commercial investment interest in Chennai. The park has a total area of 2.4 million sq ft.

 

More such fund flows are expected in the next three years, during which time 120 million sq ft of gross office absorption would happen in the country, the report said. The supply during the said period is expected to be around 124 million sq ft in major Indian cities.

In 2018 onwards, demand for office space would be led by technology, engineering, manufacturing, e-commerce, logistics and finance sectors and coworking operators. Co-working space accounted for 8% of office space absorption in 2017, compared to 3% the previous year, said Nimish Gupta, MD, Rics South Asia in the report. In India, Grade A office space has traditionally been driven by technology firms. Technology companies accounted for 56% of total office demand in 2017. However, in coming years, the share of engineering and manufacturing firms is expected to increase, the report said. Policies like make in India, digital India, skill India, introduction of GST and relaxed foreign direct investment norms would influence this shift. Sectors like e-commerce, logistics and warehousing, fintech and start-ups would grow faster, the report said.

 

Source: The Economic Times