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REALTY REVIEW – October 2013 Dear Readers, Festive Greetings!! Hope this festivity re-cherishes your life to the new energy and vigor. We are at the last quarter of the year 2013 and I am sure you must be on the target to achieve your goals. It says that only 3% of the world has written goals. However, simple the sentence may be but it is true that only a limited population in this world writes what they want specifically with a date specific plans. It is norm in today's world that we are happy doing smart work. But time and again it has been proven that there is no substitute for Hard Work. Hard work is where getting hands dirty and doing the Broom work in terms of daily activities towards our goals. I am sure all of you will keep an eye on the goals in 2013 and wishing you a fantastic year ahead. Happy reading A Balajee Kumar abalajee@remax.in

RE/MAX INTERNATIONAL NEWS RE/MAX Expands in Asia with Entry to Japan RE/MAX, LLC sold master franchise rights for the country of Japan, world’s third-largest economy, which increases the RE/MAX presence in Asia, solidifying the largest global real estate franchises. RE/MAX Japan region is owned by Generation Group, LLC, which is a leadership team experienced in real estate and finance. They are poised to expand RE/MAX throughout the nation of more than 126 million. “RE/MAX is an extraordinary brand that is recognized and respected around the world,” said John Fou, Managing Member of Generation Group, LLC.


REALTY REVIEW – October 2013 “We are proud to be part of a talented team that will bring RE/MAX professionalism and quality customer service to the people of Japan.” “We’re incredibly pleased to bring the RE/MAX level of customer service to the current and future homeowners of Japan,” said Margaret Kelly, RE/MAX CEO. “We found the perfect leadership team and we’re honored to have them attend the RE/MAX Pacific Rim Summit to experience our commitment to franchisee support.”

RE/MAX is No.1 among Real Estate Franchises For fifth consecutive year, RE/MAX, LLC ranked as leading real estate franchise organization in Franchise Times Top 200. The survey is based upon annual worldwide sales. In 2013 Top 200 ranking, RE/MAX is placed 14th among all franchises, gaining two places over its standing last year. RE/MAX was also ranked 6th among Top 200 franchisors for sales growth. In overall standings, top ranked franchises were McDonald’s, 7-Eleven, KFC, SUBWAY and Burger King. Throughout 2013, RE/MAX has been recognized as an industry leader in a variety of real estate surveys.

Fun Facts about the RE/MAX Hot Air Balloon This year marks the 40th anniversary for RE/MAX and the 35th anniversary of its iconic hot air balloon logo. Thirty-five years ago this month, in October 1978, the very first RE/MAX Hot Air Balloon took flight. As it soared over the New Mexico desert during Albuquerque’s Balloon Fiesta (now named the Albuquerque International Balloon Fiesta), no one could have guessed that the seven-story-tall Balloon would soon become one of the world’s most iconic corporate symbols.


REALTY REVIEW – October 2013

RE/MAX INDIA NEWS RE/MAX & Godrej Properties Nationwide Partnership RE/MAX India has entered into a national partnership with Godrej Properties Limited. With this, RE/MAX network now has authority to sell and market projects of Godrej Properties Limited across India.


REALTY REVIEW – October 2013 The formal partnership happened in Ahmedabad on the 27th of September. This event was attended by the Chairman of RE/MAX India along with Affiliates from all the RE/MAX franchises in Ahmedabad. The invitees were taken for a site visit, were given a detailed presentation on the real estate future of our country, were shown a helicopter view of all their projects and were also given a detailed briefing about GGC Ahmedabad.

RE/MAX India Top Recruiters in September


REALTY REVIEW – October 2013 In the real estate business, when there’s so much unstable economy and finding a job, role and trust is difficult, sharp Sales leaders sell the dream of entrepreneurship. Being in control of your own destiny is compelling opportunity today. Are you offering the dream in your sale. Are you looking to be the next top Recruiter? So you know it all, follow it, do it! Competition helps you to raise you higher!!

RE/MAX India Top Transactors in September

Activities by Other RE/MAX Regional Affiliates Mr. Anand Choksi of RE/MAX at Seminar on Identifying New NRI Markets by Accommodation Times Knowledge Series


REALTY REVIEW – October 2013

60 minutes with RE/MAX Bangalore for Entrepreneurs


REALTY REVIEW – October 2013

RE/MAX Bangalore at Franchise Show by FRO - 2013

RE/MAX Chhattisgarh branding by Yard Sale Signs


REALTY REVIEW – October 2013 Profitable Real Estate Broking session by RE/MAX Delhi NCR

RE/MAX ANDHRA PRADESH NEWS RE/MAX features in print media on latest achievement


REALTY REVIEW – October 2013

Career Seminar for Post Graduates by RE/MAX Hyderabad RE/MAX Hyderabad is delighted to announce the recent success of its hosted seminar at Matrusri Institute of Post Graduate Studies in Hyderabad on Real Estate opportunities held at their college premises on 1st October centered on Career in the real estate industry. The event was attended by over 65 students, faculty trainers and placement team. There were several salient points covered during the seminar along with various real estate topics.


REALTY REVIEW – October 2013 Attendees were given insights about the advantages of the opportunities joining an International property consultant and were given answers to their inquiries about the vast real estate career scopes. The event featured a session of the real estate arena. A planned strategy has been developed to organize guest lectures at the college for students regularly and other consultation tie-up. To learn more about it, you can contact us.

SOME REAL ESTATE TIPS & NEWS TIPS How are prices of plots determined? It is a known fact that land market value keeps on appreciating, and that has always been a plus point for investors. Even though people are interested in buying flats, investing in land will give potentially higher returns to the investor in the long run. When purchasing land, it is very important to know the factors that decide the price of plots. Let’s take a look at them: Location This is the first and foremost important factor which determines the price of land. One has to check whether the land is near a main road or any other important landmark. The closer the land to such population centres, the higher will be the value. The most desirable location is where one can find thick population and good development, resulting in higher prices. Land buyers generally don’t opt for land in a thinly-populated area, even if it is better. Use of land Depending upon the use of land, the land value can drastically increase. If the land is vacant for some time and then it is utilized to build an institution, office space or for commercial purpose, it enhances the value of the land. In such cases, the owners of the land either benefit or suffer from the externally-forced


REALTY REVIEW – October 2013 factor by which they are bound even against their will. For example, Bangalore is a well-known IT hub; the plots in Bangalore are in demand, even though they are highly-priced. Amenities and facilities Cost of land or plot changes if there are any infrastructure facilities developed by any urban local bodies or urban development authorities etc. The facilities can be anything like roads, communication, transport, water supply, electricity, power, sanitation, street lights, highways, etc. Condition Fertile agricultural land is worth more than worn-out land. Similarly, forest land will fetch more value than clear-cut forest. It clearly states that land that has superior appeal will have higher value than plots with no particular features. Rate of interest Generally, the rate of interest in the banking system or financial institutions tends to affect the plot price. It is an inverse relationship; that is, if there is a decline in the rate of interest by the banks, it results in enhancement of investment in real estate which in turn results in the increase of plot or land prices, and vice-versa. Surroundings The term means those things that border the plot that have a vital effect on its value. The land which is surrounded by lavish greenery will definitely have a high price, even if the rivers and the mountains are not part of the property. However, the lands or plots near industrial estates will go for a low price, even if the property itself is good. Speculation Speculation also affects the land value. Generally, when the demand is higher than the supply, this gives space for speculation. For instance, any urban area that has a rapid development and population growth results in migratory movement of people from rural areas to the cities. Therefore creating demand for land and to ever rising price of land. Floor area ratio or floor space index The floor area ratio is often restricted by the zoning code and may have an imperative influence on the land value. It is used as a measure the size of the piece of land on which the building is built. If the planning authority increases the floor area ratio, then the market value of the land or plot doubles. To be precise, this ratio controls the land value. The land owners have no contribution to it, but they gain benefit if the floor area ratio increases. Development of the service sector The quick growth of Information Technology (IT), Information Technology Enabled Services (ITES), Business Process Outsourcing (BPO) and other service industries are also the reason for increasing land value. The multinational companies require lot of space in the urban area to setup their operations. These


REALTY REVIEW – October 2013 companies are willing to purchase the property sites at higher value as their requirement is of utmost importance. This results in increase in the price of land. For example, properties in Hyderabad are in huge demand as it is one of the important zones for multinational companies. Buying land can be a rewarding experience, particularly in a city that is struggling for space and where the real estate value is sky-rocketing. Although the culture of buying apartments has spread to cities like Bangalore, Chennai, Delhi, Mumbai, Hyderabad, Pune and Kolkata, still some people are interested in buying plots and look for plots for sale to create their dream house.

Hyderabad Real Estate in Telengana, the 29th state of India With the declaration of Telengana with 10 districts and Hyd as the shared capital, a long vexed problem is being solved. In 2008, we were hit with a double whammy, worldwide financial depression followed immediately by the fast unto death by KCR. This leads to further depression in the real estate market in Hyderabad. Transactions dropped by more than 3/4th simply because the buyers were expecting the rates to fall further and the home loan interest became prohibitive. The government at the centre and the state went into paralysis and complete ineffective due to CBI raids, infighting and so on. Many of the big developers in Hyderabad went into red and were unable to service their debt. Even worse, some of the developers had go in for CDR (Corporate Debt Restructuring) all signs of a fast failing economy. While this was the story with Hyderabad, other markets were able to recover some lost ground and were able to make good some of the losses. Some markets even went into a full circle of business cycle and are currently seeing a slowdown due to overheated market, excess supply and bad political situation. With the declaration of Telengana, the immediate issue plaguing Hyderabad city has dim inished dramatically. The city real Estate market has the critical mass to move ahead on its steam. Hoping that the young sharp tongued Congress Prince is part of the decision making process for Telengana, let’s hope that he will not create any more situations for the decision already taken. At the centre, Congress is expected to eat dust and fall by the way wide. Mr. Narendra Modi is showing all signs of landslide victory. With his image of being pro business, I expect that the business will now zoom up and we should be able to make good all the losses incurred so far.


REALTY REVIEW – October 2013 We as real estate consultants can very well expect a bounty in the months to come. Like a good farmer, we should prepare for the harvest by getting into action now. Get your listings in order, pick up more mandates, polish your sales team and join a gym. Yes, you heard me right; you would need to be at your fittest to be able to handle all the business that’s going to come your way.


RE/MAX Realty Review-October 2013