Real estate may turn around in India in 2017
Real estate in India may also see a strong turnaround in 2017, as fifty-five consistent with the cent of 750 localities throughout 14 fundamental towns witnessed rate increment of 2.8 per cent, a file released on Wednesday said. The rating increment in the decrease-mid and low-cost segments, which comprise 65 in line with the cent of those localities, signals the return of client pursuits and transactional hobbies. Magicbricks PropIndex, the quarterly record, discovered a tremendous April-June 2017 area for the real marketplace. “There is finally something to cheer for… The truth that 55 in line with the cent of the localities witnessed a median price increment of two.8 according to cent displays that we’re searching forward to a turnaround in India’s realty market,” said Sudhir Pai, CEO, Magicbricks.
While 55 according to cent localities in low priced phase had rate increment,
it becomes 56 in keeping with the cent in the lower-mid phase. Of the 14 towns included, 9 had common charge increment throughout 60 in line with cent localities in a decrease-mid segment, the document said. This sincerely augurs properly for the actual estate industry, Pai said.
The first step to shopping for real estate in Nicaragua is to forget everything you know about the process back home… no matter where home may be.
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Let me make one thing clear from the start. There are incredible bargains to be had buying property in Nicaragua. In fact, there is no other market in the Americas were insisting upon a 40% return on investment or, better is reasonable. However, there are few similarities between the rules and regulations governing real estate industries in North America, Europe, and Nicaragua. It’s because of this lack of similarities that foreign investors often get into trouble. There is a preconceived notion on the part of foreigners that the Nicaragua real estate industry is as carefully regulated as elsewhere, and this incorrect assumption sets foreign investors up to be cheated. The only universal real estate investing rule that applies as equally in Nicaragua as it does anywhere else is Caveat emptor, buyer beware.
Real Estate Brokers
Basically, there’s no such thing in Nicaragua as a real estate brokerage that a Canadian, American, or European would assume the term represents. There are real estate brokerage offices. Some even have familiar franchise names, but that’s where the similarity ends.
There is no mandated, formal training of real estate salespeople, nor are there specific licensing requirements. Anyone can become a “realtor” by paying for a merchant license or incorporating a Nicaraguan company. I’m not suggesting this means “all” real estate salespeople are incompetent or untrained… many are. In fact, several retired realtors relocated to Nicaragua and maintain successful, upstanding businesses. However, there are many more who are not competent and operate on the razor edge between honest business and outright fraud. Caveat emptor again!
No district or federal regulatory boards are governing the Indian real estate industry in place.
Real estate sales are no more regulated than a vehicle sale transacted by a street vendor. Authorities do not ignore outright criminality, but having the perpetrator jailed is unlikely to recover any money lost. The revenge should make a fleeced buyer feel better, though. Nicaraguan jails exist to punish criminals, not rehabilitate, and they are Hell on Earth. Unfortunately, though, most issues that can arise in a real estate transaction are considered civil matters by law enforcement and have to be treated as such. In short, whatever money you think you were cheated out of… consider it lost. Even with a judgment in the plaintiff’s favor, collecting money owed in a judgment rarely happens. So again, caveat emptor.
A serious shortcoming in the Nicaraguan real estate market is nothing similar to a Multi Listing Service (MLS). The lack of any form of MLS means there is no central registry of properties for sale, nor any information as to what a property sold for. The result is that it’s very difficult to decide what a house or commercial building in a particular neighborhood is worth since there are no comparable property transactions to use as a guide. Ironically, banks require appraisals created by licensed Nicaraguan appraisers if mortgage funding is being requested. Appraisers base their appraisals on replacement cost mostly, and whatever else they provide is pure guesswork.
There’s no such thing in Nicaragua as a listing similar to what most foreigners would understand the term to mean. Real estate shoppers will hear a realtor say that he or
she has a listing, but it’s common to see two or more real estate signs on a single property.
Likewise, the same property may appear on multiple real estate company websites and be advertised online by numerous people. More confusing, the prices advertised may vary for the same house, sometimes by tens of thousands of dollars. Nicaraguans selling their homes rarely lock themselves into an agreement with one party wanting to sell their land, house, or commercial building. If you want to sell something, the assumption is the more people trying to sell it, the better. And by more people that can be realtors, the owner themselves, their family and friends, a neighbor, or a horse drew carriage driver. This seems chaotic to a foreigner shopping for a retirement or vacation home, but it makes perfect sense to Nicaraguans. Without an MLS service that allows numerous realtors to show prospective buyers a listed property, letting everyone try to sell a property seems to be the best way to get exposure.
Another misconception foreign purchasers have when buying real estate in Nicaragua is that the seller is paying the real estate agent. This is sometimes the case, but the buyer may be asked to pay the commission even when it is. Yes, this is legal in Nicaragua. In fact, not only could there be a commission paid by the seller and buyer, but the real estate agent may have added an amount to what the seller actually wants in their hand. This, too, is legal. The worst-case scenario is that the seller wants US$50,000 for their home. The sellers offer anyone selling the home US$1000 or a percentage. The real estate selling agent advertises the home for US$59,900, allowing for negotiating room. A buyer settles on US$55,000 but is told that in Nicaraguan, the buyer pays the commission. Not actually the truth, but common enough that people think it’s a rule. The requested commission can be anything up to 10%, or it can be a flat fee. Once all is said and done, and the buyer agrees to purchase the property for US$55,000. In a case such as this, the ‘agent’ will insist on a nonrefundable US$5000 down payment. At closing, the seller receives the US$50,000 that they wanted, and the selling agent pockets the rest.