MISTAKES TO AVOID WHILE BUYING A HOUSE

First-time home-buyers do not make property investments in a hurry. Take your time, study the market carefully and then make an informed choice.

No feeling in the world compares with moving out of your parents’ house or rented accommodation any buying a home of your own. And while the real estate market is currently very much in favor of buyers – buying a home as soon as you can afford to can sometimes be a mistake.

Some of the mistakes many first-time home-buyers commit can have serious repercussions on the value that they are finally able to obtain from their property purchase. Here are some of these mistakes:

Not checking out all the options

Due to limited knowledge of the local real estate market or dependence on a broker with a limited portfolio, we choose a home merely because it fits our budget. There is a sense of helplessness involved, we wish we had more options, but there do not appear to be any. This is a patent mistake. In any large city, new projects are being launched regularly and fresh options on the resale market become available almost every day. Any of these projects or units could represent a better deal.

Often, we succumb to pressure of the real estate broker and accept that even this particular unit will be gone within a couple of days. If one is using real estate brokers at all, it makes sense to engage more than one of them as the spread of options increase dramatically.

Inflexible focus on ready-to-move-in

In any growing real estate market, under-construction projects are cheaper than ready-to-move-in properties. In many cases, the locations and specifications of these projects are superior to anything that is currently available.

If one has been living in rented accommodation for a considerable length of time, opting for an under-construction flat and waiting for a year longer can make a huge difference in capital expenditure as well as overall comfort and lifestyle. You could have the benefit of a larger home and the advantages of better security, a clubhouse and a swimming pool for the same price that a normal ready-to-possess home would cost you today.

Failing to get home loan pre-qualification

Few people buy a house these days without bargaining with the developer, nor should they. This is a privilege that every aspiring home owner has, and one should make use of it.

However, attempting to negotiate with developers without being able to demonstrate actual purchasing power is a mistake. There are two essentials for success at the negotiation table – a down-payment and pre-qualification for a home loan. These two factors combine to give the developer sufficient reason to take the buyer seriously, and offer a better deal. Without them, he or she could be just another ‘window shopper’.

If your job is contractual in nature, make sure you take into account your other assets in case you are not able to pay your equated monthly installments on time. A lender generally takes into account such risks, the number of years you've been with a company etc. before finalizing a loan.

Not factoring in your family’s growth

A single bedroom flat or even studio apartment will undoubtedly meet the requirements of a bachelor or a newly married couple.

However, there is a ‘growth curve’ that needs to be factored in – most bachelors eventually seek to marry, and most married coupled will have children.

Also, elderly family members who are still able and content to manage on their own today may not be able to do so in a few years’ time.

In other words, it does not pay to think too small while buying a flat. It makes sense to budget for both finances as well as future needs while buying a home.

TIME MANAGEMENT

Here are some pointers for getting your daily work schedule under control:

Start a log: Get a clearer idea of how you currently use your time. Keep a daily log for a week. This will help you get a better idea of how much time you need to allot for each task. Energy levels may vary throughout the day – most people function at different levels of effectiveness at different times. Once you have logged your time and tasks for several days, analyze the log. You may be alarmed to see the length of time you spend opening mail, talking to colleagues or dealing with disruptions.

Set reasonable goals: No one can be perfect. Difficult tasks usually result in avoidance; therefore, you need to set reasonable, achievable – but challenging – goals.

Create a plan of action: A lot of time management has to do more with what we are not doing rather than what we are doing. You need to start your day with a plan of action to be the most productive. Instead of responding to other people’s demands, do what is important for you to do.

Prioritize: Another way to manage your time is to prioritize your responsibilities and engagements: assignments need to get done that day; tasks are important and should be completed within the week; items are those tasks that are relatively trivial and can be done after the first two has been done. It is all right to carry some items to the next day.

Clean your desk: Besides keeping a log and prioritizing, cleaning your desk or work area is important.

Allow for quality sleep: Studies have shown that nearly 75% of us complain regularly that we are tired during the workday. If you plan your day and then work your plan, you will get more done and feel a greater sense of accomplishment – allowing for a more restful night’s sleep.

Take a break: Many managers and business owners do not take a lunch break and work through that time period in the hopes that it will give them more time to get things done. Studies have shown that the effects may be just the opposite.

After giving time management a fair chance, it will eventually become a habit.

EMERGING FACILITY MANAGEMENT (FM) TRENDS FOR 2014

As FM organizations continue to evolve and reposition themselves to gain a competitive advantage, the focus remains on increasing customer satisfaction and uncovering new ways to boost the bottom line.

The year ahead should bring an increasing trend in customers exploring how FM can help their business achieve competitive advantage, with companies taking a more strategic approach to FM resources and contracts. There will be more focus on aligning FM services with operational performance, to result in tangible cost savings, enhanced productivity and workforce efficiencies. The focus is rapidly shifting away from service-oriented discussion to value driven dialogue, meaning FM high achievers are thinking more strategically when responding to new opportunities by articulating a clear and measurable value proposition.

Cloud Computing

This year will see two main forms of cloud based building automation – hosted building management software (BMS) and active management analytics. Businesses that offer this combined package via the cloud will be well positioned for 2014.

Building Information Modeling (BIM) for HVAC

The use of BIM software application integrated with CAD systems will help architects, construction engineers and HVAC companies maintain greener and more sustainable buildings. The use of 3D, 4D and 5D modeling technology helps HVAC engineers in design, without needing to engage architects in decisions about duct sizes, electrical co-ordination or airflow specifications. It delivers significant energy savings by enabling engineers to focus on optimizing an entire building or system instead of its individual components, a compelling reason for the use of BIM in the FM world.

Data & Infrastructure Security

Biometric systems identification software is being used across a range of industries. The FM and commercial sector will see an increased use of Biometric systems over the next five years, delivering a more precise and environmentally friendly technology that provides a range of options – from access control to identity documentation.

The increased co-existence of motion detection devices and video surveillance being used in conjunction with HVAC systems is evident within the FM space. There lies huge benefit for FM managers where this technology aids the identification of maintenance issues, such as the detection of water leaks. Ultimately, motion detection allows businesses to be more functionally sound and proficient in day-to-day operations.

Software & Mobile Applications

Anytime, anywhere access to people and information via a mobile device is an integral component to businesses today making mobile technologies a critical element in the workplace. The year of 2014 will see the increased use of HTML5, fast becoming the mainstream method for deploying enterprise software on mobile devices. This is mostly because web apps provide native-like functionality and are cheaper to develop. They also offer almost the same level of interoperability with smartphone features as a native app, and accessible via a browser.

BYOD (bring you own device) technology and mobility integration will facilitate all facets of the workplace allowing for a doubling or even tripling of the mobile workforce. In response to this trend, we are seeing the introduction of enterprises policies on employee-owned hardware that outline clear objectives around employee access to company networks via personal devices. In 2014, organization should aim to create mobile policies that balance flexibility with confidentiality and privacy requirements of the business.

Total FM (TFM) contracts and workforce integration

Growth in FM will be driven by the proliferation of ‘Total FM’ style contracts, whereby opportunities in FM outsourcing will also include the needs of niche sectors, such as energy management and workplace planning. Margin pressures and the rationalization of internal processes has led companies to re-evaluating their maintenance contracts in order to gain value and reduce risks. Companies successful in FM over the coming years will be those that offer ‘end-to-end’ contract that cover multiple services, continuing the escalating trend of Business Process Outsourcing arrangements.

Outsourcing will be a strong trend continuing in 2014, meaning future leaders in the FM arena will need to be workforce integrators. FM managers will need to become strategic partners, as well as information providers with an emphasis on corporate and social responsibility practices and new technologies will be a key focus for FM integrators looking to remain competitive this year.

PROPERTY & ASSET MANAGEMENT IN INDIA

Property & Asset Management (PAM) practices, even globally, have taken time to evolve into a sophisticated business and delivery model. In India, its benefits are now available in the form of comprehensive real estate management.

Property Management is a discipline that integrates people, place, processes and technology to ensure the day-to-day operational functionality of a real estate asset. It involves handling of the routine operational functions on behalf of developers (engineering, security, soft services, landscaping, etc.) Further, Property Management involves planning and implementing strategic management plans such as coordination and procurement of service agreements, vendor management, risk management, operational health and safety and effective human resources management. Asset Management, on the other hand, is a long-term function. It involves creating and implementing strategies to optimize financial returns from a real estate asset and includes augmenting income streams, lease management, risk mitigation and enhancement of the utilization of the real estate asset in terms of benefits and financial returns.

Importance of Property & Asset Management

Property & Asset Management plays an important role in the real estate lifecycle. The adoption of professional management practices from the pre-occupancy stage optimizes a real estate asset’s performance and reduces its operating costs. This beneficial confluence of process efficiencies and cost savings is possible because PAM can assemble various resources, capabilities and technologies across the lifecycle of a real estate project to achieve the best possible delivery outcomes.

Pre-Occupancy Management: Involves coordinating the physical plan and design with the management plan and benchmarking equipment and other operational costs.

Post-Occupancy Management: At this stage, continuous upkeep of both built environment and equipment is required and minimizing of operational risks.

Renovation Management: Needs reassessing of the on-going services and infrastructure to optimize physical conditions.

The Indian PAM Scenario Today

With the growth of the Indian real estate market over the past decade and the increased focus on the quality of buildings by buyers and sellers, Property & Asset Management will play a vastly amplified role in the immediate and long-term future. Developers as well as companies have understood and accepted that professional management of a property results in very significant cost savings, increased customer satisfaction via improved environment and better safety levels.

Outsourcing PAM services enables developers to concentrate on their core business and leverage the expertise of specialized service providers. Developers now engage the services of International Property Consultants (IPCs) to deliver their requirements for PAM which is no longer viewed as a luxury expenses but as an effective tool for property maintenance, management and optimization. This change in mind-set is very evident in the increasing number of housing societies that now use professional property management services by IPCs as a matter of course.

While the PAM industry in India is doubtlessly still at a nascent stage, it is evolving rapidly as a result of the fast pace of growth in the construction sector. With a massive supply of real estate projects coming in the near future, the availability of high-quality property maintenance and management will be a distinguishing factor for the consumers of these projects.

IMPORTANCE OF AUTOMATIC SPRINKLERS IN BUILDINGS

It is hard to comprehend why people continue to die in fires when advances in fire safety technology are readily available. This is because the need for sprinkler system had been overlooked by the industrial and non-industrial sector in India.

Most of the organizations believe that manual firefighting using external fire tender and / or yard hydrants are more or equally effective. But the fact is manual firefighting is often hindered by physical barriers and smoke that may prevent them from aiming the hose streams directly at a fire. However, sprinklers operate only over the fire area and discharge water directly onto the fire resulting in less water damage as compared to hose streams.

The fire sprinkler system discharges water when the effects of a fire have been detected, such as when a predetermined temperature has been exceeded. Fire sprinklers are extensively used worldwide, with over 40 million sprinkler heads fitted each year. In buildings protected by fire sprinklers, over 99% of fires were controlled by fire sprinklers alone.

Builders have issues with the cost / benefit of this added fire protection and seek trade-offs to off-set their cost and effort to stay affordable. Tough the industrial clients in buildings see the safety benefit of sprinklers, they are not sure about the value addition from the sprinklers, and are more worried about water damage.

Fire sprinklers are most effective during the fire’s initial flame growth stage. The benefits of using fire sprinkler systems include:

• Immediate identification and control of a developing fire – Sprinkler systems respond at all times, including periods of low occupancy.
• Immediate alert – In conjunction with the building fire alarm system, automatic sprinkler systems will notify occupants and emergency response personnel of the developing fire.
• Reduced hear and smoke damage – significantly less heat and smoke will be generated when the fire is extinguished at an early stage.
• Enhanced life safety – Occupants will be subject to less danger when fire growth is checked.
• Design flexibility – Fire and smoke barrier placement becomes less restrictive since early fire control minimizes demand on these systems.
• Enhanced Security – A sprinkler controlled fire decreases demand on security forces, minimizing intrusion opportunities.
• Decreased insurance expenditure – Sprinkler controlled fires are less damaging than fires in non-sprinklered buildings. This results in lower insurance reimbursements. Insurance underwriters will usually offer reduced premiums in sprinkler protected properties which can save a large amount of capital.

It is also not necessary for everyone to learn in the hard way. The lessons learnt during large losses should be studied by all and to be used in the larger interests of the society. Sprinklers do more than save lives; they also protect property from destruction by fire. ‘Saving lives’ means more than just preventing deaths.

COLOUR STYLES

Each of the colours in this edition of Colour Styles is represented with its impact on the body chakras and brings together a plethora of colour combinations. The lotus characterizes different groupings according to the 60-30-10 principle to achieve a balanced healthy colour palette. The flower is divided into three shades – the center petal gives the highlight or the accent colour (10%), the two adjacent petals represent the main colour (60%), while the extreme petals show the secondary colour (30%).

White Purity: Pundarika – White Lotus: White contains all colours of the rainbow and projects a powerful ray of confidence, assertiveness, truth and mental clarity. It is an excellent colour to use if one has mental negativity or lacks faith in oneself. Always versatile and adaptable, whites can be combined with a dash of bright colour to liven up one’s space.

Violet Vision: Sahasrara – Crown Chakra: The colour of wisdom, the colour of meditation and the colour of luxury; violet in its darkest values is dramatic, elite and sophisticated. Associated with the crown chakra, it balances physical and spiritual energies, thus increasing intuition and introspection. It is often used in the treatment of epilepsy and nervous disorders. It also aids in strengthening the nervous system and helps in purifying the body. Being the colour of mediation, violet works the best in libraries, bedrooms or a study. Used as an accent colour it gives the room depth and richness. Lavender and lilac, the tints of violet, impart a restful quality to the space.

Intuitive Indigo: Anja – Third-eye Chakra: Indigo has a calming, sedative effect on the mind. Related to the brow chakra or the third eye; indigo enhances a sense of responsibility and stability. Indigo is a great colour for the bedroom as it is believed to cure insomnia and soothe stress. It is a colour related with intuition, imagination, fearlessness, loyalty and empathy. Indigo needs to be balanced with a complementary colour as too much of indigo can generate a feeling of depression and loneliness.

Tranquil Blue: Vishuddha – Throat Chakra: Blue creates calming, tranquil effects that harmonize our conscious awareness to the subconscious mind. Associated with the throat chakra it is believed to enhance communication skills and aid artistic expression. Blue is also believed to bring relief from migraines, itching, jaundice and eye irritations. This serene and calming colour is said to bring down blood pressure and slow down respiration and heart rate. Blue is a perfect colour for the living room; one can opt for warmer shades such as turquoise or cerulean.

Tender Green: Anahata – Heart Chakra: Synonymous with the colour of nature, green acts as a balancing agent in healing as it stabilizes all the vibrational influences around us. The use of this colour promotes an attitude of acceptance and can inspire and nurture our ideas and feelings. This colour is extremely beneficial to someone with low immunity or high stress and is also know to aid relief in ailments like asthma or bronchitis and is effective in treating hyperactivity in children. It is also a great colour for balancing blood pressure, the nervous system and the heart. Green is ideal for the rooms where you wish to relax after a stressful day, like the living room or bedroom.

Yellow Warmth: Manipura – Navel Chakra: Awakening, inspiring and stimulating, like the rays of the sun, yellow awakens our mind and spirit. A strong colour psychologically, yellow enthuses confidence and optimism. It can be thus effectively used for more lethargic conditions such as laziness or lack of enthusiasm. Associated with the stimulation of internal mind, yellow helps break through inhibitions and creates a more fun and carefree attitude towards life. One can use yellow almost everywhere – cheerful yellow for a teenager’s room as it sharpens memory, deep gold for a dining room as it aids digestion, buttercup yellow can be very effective in a child’s room.

Orange Pleasure: Svadisthana – Sacral Chakra: Orange is associated with the sacral and regulates circulation and metabolism. Orange is in fact quite similar to yellow in the effect it has on us. The only difference is that orange works more closely with the emotional strength compared to the psychological effects of yellow. It is said to alleviate depression, kidney and lung problems and is beneficial in treating pancreatic and digestive problems. Orange is a great colour for office spaces and entertainment areas as it increases creative energy and concentration. It is also a good colour for an exercise room.

Energizing Red: Muladhara – Root Chakra: Red is linked with our root chakra and provides the power from the earth. It is a great colour to be surrounded by when you are feeling drained out of energy or down and out. A highly earthly and magnetic colour it can stimulate the core emotions of human being – love, passion and warmth and can create a sense of balance between your emotions and expression. Different shades of red had different effects – a bright red is used to increase vitality and inhalation, while a dark ruby is associated with enhanced vigour and willpower. It’s a great colour to use as an accent in a living room to create warm and cozy atmosphere, or in the dining area where it stimulated appetite. However, one needs to be cautions as an excess of red can over stimulate and promote aggression.

RESIDENTIAL PROPERTY MANAGEMENT IN INDIA

With time, perceptions have changed and developers have begun opting for professional management services by International Property Consultants (IPCs). They now see them as more than just manpower vendors and accept property management as a specialized and cost-saving service. This change in mind-set is evident by the increasing number of housing societies that are now engaging IPCs for professional property management services.

Today, the market for property management by IPCs in India is valued at around INR 1000 crores, and it will grow by at least 20% annually. The maximum demand for these services is in the NCR region, which has seen a massive supply of projects and has an equally staggering number of projects in the pipeline. The second highest demand comes from South, primarily Bangalore and Chennai. In Mumbai, these services are preferred more for the commercial office buildings and high-end residential societies.

Making a Decisive Difference

Usually, limited integrated service providers venture into managing of residential condominiums and ensure that the (Resident Welfare Association) nominates members for responsibilities of maintaining and employing security & housekeeping companies directly to reduce the cost. This is a redundant model. Companies like JLL have core expertise to manage these services, across local geographies with international synergies for best practices. In other words, IPCs specialized in property management provide a one-stop solution and additionally support in various technical aspects to professionally and cautiously manage safety, security, cleanliness, etc., and maintain very strict adherence to statutory requirements. This ensures both tangible and intangible benefits.

For residential property management to become feasible for both the client and the agency, the total saleable area of the project would be around 300,000 sq. ft. for a mid-level housing society. The general list of services includes the following:

ü  Electro-Mechanical (E&M) Services

ü  Housekeeping Services

ü  Security Services

ü  Club-house Management

ü  Events Promotions Management

ü  Promotion Displays / Space On Hire

ü  Help-Desk / Concierge Services

ü  Hardscape / Landscape Management

ü  Garbage Management

ü  Events & Promotions Management

ü  Vendor Management

ü  Annual Maintenance Contract (AMC) Management

In the case of cities like Mumbai, there is demand for enhanced services which includes additional aspects such as club house management.

Residents’ Responsibilities

Though professional property management in residential complexes encompasses a multitude of functions and services geared towards providing a comfortable and hassle-free experience for tenants, there is a certain onus of responsibility on the tenants as well. Without such cooperation, the smooth functioning of the project is bound to be compromised sooner or later.

To encourage this participation, two sets of guidelines are handed over to tenants. The first is the fit-out guidelines list, which highlights the do’s and don’ts that residents need to adhere to while undertaking fit-outs in their apartments. The basis of these guidelines is to avoid structural damage to the building. These guidelines also include a set of instructions pertaining to how to bring materials into their flats without causing disturbance to other residents. The other set of guidelines is an Occupant Handbook. This highlights the list of do’s and don’ts to be followed during occupancy. This handbook is typically modified, depending on the requirements of the developer and the society.

Cost To Developer or Society:

The average cost of professional residential property management is Rs. 2-3.5/sqft for normal projects and between Rs. 5-7/sqft for premium housing projects. In the case of housing societies, maintenance charges or common area maintenance charges (CAM) are worked out to include all expenses required for operating and maintaining the society. Besides day-to-day expenses, the expenses also include AMCs, insurance and sinking fund. The developer may typically add overhead expenses for infrastructure and resources provided by them to maintain the society. CAM charges are generally kept fixed for a period of 1 year and any upward or downward revision of the same may be done in subsequent years annually, with surplus or deficit being credited or debited to align CAM as per expenses.

Savings and Other Benefits:

Significantly, the increase in interest in buying into or tenanting residential buildings that feature professional property management services – as opposed to buildings that do not – is between 30-40%. The cost savings to developers / project owners who opt for professional property management services rather than relying on their own capabilities depend on the type and age of the building. However, a saving of at least 5-7% is generally achievable in the initial stage. This figure cumulatively increases as the various processes being implemented edge out redundancies and increase efficiency.