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REALTY REVIEW – April 2013 Dear Readers, Happy Ugadi, Gudi Padwa and festive greetings! Ugadi marks the Telugu New Year and also the taste with its famous chutney the joy of harvesting among Telugu families. Wishing you and your family a wonderful year of prosperity, joy and happiness! Hyderabad real estate market has been on the uprising in the recent times. Couple of giant groups launching their projects in the city with a high tag value and more forthcoming of such projects has raised many eyebrows that are we back in the positive zone? My personal take on it is Yes. It’s a safe time to invest and venture ahead into market with a horizon of 2-3 years and one will benefit a lot from the investments. We have come into our 3rd year since launching of RE/MAX operations in Andhra Pradesh. Was it a smooth ride or have we gained some market share? Are we where we wanted to be? I don't know all the answers but I know one answer “we are here to stay and we are here for long term”. Real estate brokerage market is changing and we want to bring the change in the way people look at our industry. I am seeking your blessings and wishes and thanking you for all the support. The 4th RE/MAX Realty Rendezvous, our RE/MAX India convention is happening in Goa this April. If you are with real estate industry, you must make it there. Our industry represents a power of association and if we are not with people, business does not happen. If you want to make big in real estate industry, start loving people and be with people. We are celebrating our 3rd anniversary by appreciating certain people who contributed to our success. Please feel free to write in your words to our e mail I'd in the form of experiences you had with RE/MAX AP. I will always appreciate it. Happy Reading, Best regards, A Balajee Kumar abalajee@remax.in

RE/MAX INTERNATIONAL NEWS


REALTY REVIEW – April 2013

RE/MAX Celebrates More Than $128 Million Total Donations As a proud partner of Children's Miracle Network HospitalsÂŽ, RE/MAX, LLC has made a mark - an $8.2 million mark - in contributions to the nonprofit organization over the past year alone. The partnership between RE/MAX and CMN Hospitals developed in 1992 and has grown continuously since. To date, RE/MAX agents have donated more than $128 million to help fund life-saving treatments with advanced medical equipment, cutting-edge research and continuing education. "RE/MAX Miracle Agents are exceptional because they incorporate spirit of giving into each business transaction, raising funds year-round," said John Lauck, President and CEO, Children's Miracle Network Hospitals.

RE/MAX Commercial Builds on Success- Records in 2012 RE/MAX Commercial experienced impressive growth in 2012 as the commercial real estate market continued to improve. Around the world, RE/MAX Commercial Practitioners were involved in more than 20,400 transaction sides, an increase of 8.4 percent over 2011. And, the 2012 sales volume for RE/MAX Commercial was $7.043 billion, up 17.4 percent from the year before. The tools and resources RE/MAX offers gives them a solid foundation and they've built on that, finding outstanding success in their local markets said Mike Reagan, RE/MAX Senior Vice President, Business Alliances. The success of RE/MAX Commercial has not gone unnoticed. In 2011 and 2012, It was ranked in National Real Estate Investor (NREI) magazine's Top 25 list of commercial brokerage networks. In 2013, for the second year in a row, it ranked on the list of the Top 25 Commercial Real Estate Brands in the Lipsey Company Survey.

RE/MAX INDIA NEWS Rejuvenate, Relax & Collaborate amidst Sunny Sandy GOA


REALTY REVIEW – April 2013

COME JOIN US FOR THE YEAR LONG CELEBRATIONS OF THE 40TH ANNIVERSARY OF RE/MAX ON THE INDIAN SHORES AT THE 4TH RE/MAX REALTY RENDEZVOUS , the 4 th RE/MAX India Annual Convention!! Learning, Networking, Night of the Stars, Meals by the beach and much more ... An opportunity to Relax, Rejuvenate & Collaborate that you would not want to MISS!! For more details on registration procedures, please write to mgrewal@remax.in or pgiri@remax.in.

Some of the RE/MAX Affiliates Activities in Other Regions


REALTY REVIEW – April 2013

RE/MAX ANDHRA PRADESH NEWS Refresher & Induction Training For Affiliates @ Region Training is essential to the achievements of a business. Perhaps its most positive benefit is better employees. A company develops the potential of an employee, and part of the way a company encourages improvement is through training. RE/MAX Andhra Pradesh had seen a good number of Associates joining and so keeps organizing a monthly Refresher training for existing staff of Franchisee Office. In lieu to this Refresher training was held on March 2013. The Training venue changes office to office to get to know.


REALTY REVIEW – April 2013

RE/MAX Andhra Pradesh bags Recognition in BNI Chapter RE/MAX Hyderabad got recognized by BNI – Artha chapter in Hyderabad on March 31st 2013 for their exemplary performance in the year 2012- 2013 for closing a high value business. It was given by the Chapter Director Mr. Srinivas Chundury. BNI is a Business Network International group which is a highly influential forum for business entrepreneurs and a good volume of business can be achieved.

RE/MAX Hyderabad Welcomes Its New Business Associates Ranjith Kr. Reddy SVS Hari Prasad S M. Adinarayana Rao P. Anantha Rao N. Laxman Rao T.Lavanya Mohammed Salauddin / RE/MAX professionals exhibit the highest standards of ethics and professionalism while assisting its associates in building a real estate career and a rewarding life. Our Owners, staff and associates look forward to assisting you in growing a vibrant real estate business.


REALTY REVIEW – April 2013

SOME REALTY NEWS & KNOWLEDGE Why you should consider investing in real estate? According to Brad Hettich, President and CEO of Commercial Lending X, there are several ways to save money fast, but chief among them is investing in real estate. "You should dip into your savings or take out a loan that you can repay, and always invest long-term," explains Hettich. "Real estate is a great example of that." Brad's logic is that with so many available properties that accommodate any budget, real estate is among the most effective ways to save money. However, it is vital that if you cannot purchase property in cash that you find a lender that specializes in your financial needs and price range. "With a stable income and a set amount of income put aside every month, you have the advantage of not only determining your own budget, but in deciding how much you want to pay for property,". Companies like Commercial Lending X work directly with local banks that were burned in the mortgage crisis, making it easier for them to provide both commercial and residential loans to consumers. "Because we work with both consumers and banks, we stress five reasons why real estate investment will save you money in the long run," Hettich explained. "Lower taxes, positive cash flow, use leverage, equity growth, and the benefits of inflation." 1. Lower Taxes There are several tax incentives for real estate investors, with deductions for property that can often be used to offset wage income. These tax breaks for real estate investment often allow property owners to turn a loss into a profit from all the money they save from deductions. These deductions can include any actual costs involved in financing, managing and operating the property, to include maintenance, repairs, property management fees, travel, advertising, and utilities. However, other great ways to save money on tax rates include government-instrumented deductions: Depreciation: Property depreciates in value over time, enabling you to deduct some of the home's costs. Interest: All mortgage payment interest is deductible. Insurance: Premiums for any type of insurance are deductible. 2. Positive Cash Flow When it comes to real estate investment, there are two ways to save money: pre-tax and after-tax positive cash flow. A pre-tax positive cash flow is when income received is greater than expenses, and an aftertax positive cash flow is when your expenses are more than your collected income, but the tax breaks bring you back in the black. Either way, real estate investment, if budgeted properly, can save you money and earn a nice profit along the way. 3. Use Leverage


REALTY REVIEW – April 2013 According to Hettich, "Never spend a dime on your real estate investment unless you have to, because the only way to make money is to have money." Leverage is an important aspect of saving money through real estate investment because a real estate investor uses leverage to increase their assets without spending their own money. "Using your leverage to gain a large amount of equity is the difference between the actual worth of the property and the balanced owed on the mortgage." Companies like Brad's help real estate investors secure loans where they can use the bank's money to purchase property and increase its equity without spending a dime of their own money. "Our goal is the same as any real estate investor: create value with as little expense as possible." 4. Equity Growth The best way to save money, and earn money, is to build up equity for real estate investments. That way, with high equity you are able to save on your mortgage while earning a nice chunk of profit. As Hettich puts it, "Don't be afraid to sell and invest in something new once you've reached your equity goal as long as you have financial leeway to do it." 5. The Benefits of Inflation When investing in real estate, a great way to identify potential savings is by researching the inflation rates for the area. "As commodities increase in value, so does the price of your home," Hettich explained, "which means that over time you reduce the amount you have to spend to maintain the property." Generally speaking, inflation can help you save money on your real estate investment because as rent increases, your mortgage costs will remain static, which means you will save money on maintenance costs with the increased cash flow from the rent. Ultimately though, despite the fact that these are five great ways to save money through real estate investment, they do come with their risks as well. According to Hettich, "Any time you convert cash into an asset, it becomes more difficult to get your money back. But that's the risk you take in investing because not only can you save for retirement with a regular cash flow, the reduced taxes will ensure its long-term viability to save you money."

Affordable Hyderabad: Buy now Increasing corporate footprint is providing a fillip to residential real estate in Hyderabad. With the entry of global players such as Microsoft, Oracle, Bann Info and many others, the demand in the city’s residential property has got a push and there are signs of a rebound. “After a stagnation of more than three years, the sentiments have improved in Hyderabad. The city offers the best infrastructure among all the metros and has a good employment potential owing to IT, Infra and Pharma sectors,” says M Nanda Kishore, ED, Ramky Estates & Farms Ltd. Due to connectivity through Outer


REALTY REVIEW – April 2013 Ring Road (ORR) and other radial roads, new areas have been opened up for residential real estate development in Hyderabad. “As a result, irrespective of the political scenario, the city continues to be attractive from a business perspective and will deliver value.” Kishore expects growth to be steady and the city’s realty market to deliver annual returns of 10-15 per cent. “While the prices are at the level of tier II cities in terms of demography, employment and growth prospects, it matches all tier I cities,” he says. Currently, according to data the Hyderabad yield return ranges between 2.68-4.76 per cent. So, is it a right time to buy property in Hyderabad? The lingering Telangana issue may have held back investors but experts feel it is still very much a buyer’s market as compared to other cities such as Mumbai, Delhi and Bangalore where the real estate prices have gone beyond the reach of the common man. The international Airport, the completion of the ORR, about 30 radial roads, MMTS (Multi-Modal Transport System), Metro, procurement of water from Krishna and Godavari rivers, etc – are all contributing to pushing global MNCs/investors to start their operations in Hyderabad. “The city has witnessed second highest occupancy of IT spaces in India during the last couple of years. Hence, this is the best time for property buyers to invest in Hyderabad as the city is expected to witness a property boom in the medium-term, which will result in higher values” says, G Yoganand, CMD, Manjeera Group.


RE/MAX Realty Review - April 2013