Joint Venture (JV) Deal

 What is a Joint Venture (JV) Deal?

Off late demand for joint ventures in real estate has been increasing exponentially. In real estate, JV means that a project is developed by two parties jointly. For example, one party is the land owner and the other party is a developer. Land owner either does not have funds and/or expertise to develop the property and developer does not want to block his funds by purchasing the land. Through JV land owner contributes land to the partnership and the developer builds the structure. When the project generates revenue, it is divided between land owner and developer in an agreed proportion.

The reasons behind forming a joint venture include business expansion, development of new products, opportunity to discover new market, accessibility to established markets and distribution channels.

Joint Venture model is mutually beneficial for both land owner and developer.

For example, consider a piece of land that is 10,000 sq ft in size located on 40 feet road. At INR1,000 per sq ft, this land is valued at INR1 crore. The land owner can sell this land for INR1 crore if he finds a buyer which is difficult in this market. The other option for the land owner is to get into a joint venture with a developer. If he forms a JV on 10,000 sq ft land on 40 feet road a G+3 building can be built. Approximately 26,000 sq ft that can be constructed by the builder on this land at a cost of INR 1,300 per sq ft. At this rate, the construction of the building will cost approximately INR3.4 crores. Based on the cost of land and construction cost, land owner will get INR10 lakhs as advance (that is 10% of land value) and 20% share in the building. And this building will take approximately 10 months – 1 year to be completed.

Joint venture property development is growing popular. For a landowner, developing a property with a joint venture agreement yields more profit instead of just selling the block of land directly to a property developer. Most property developers and landowners are used to sourcing funds for construction projects by means of traditional methods which typically involves raising capital either selling some part of the land or taking loan from a bank or a combination of both.

PMS Realtors
Melur-625106
Madurai, Tamil Nadu
Mob: 9042045934
pmsrealtorsmdu@gmail.com
www.pmsreal-estate.blogspot.com

realestate tips

 Why Madurai is good for realestate investment?

1. Madurai is a popular tourist spot
2. 4 national highways, namely NH-7, NH-45B, NH-49 and NH-208, pass by this city.
3. Longest bridge constructed in madurai
4. 4 Bus stands, 3 Libraries, 1 Highcourt & 5 Hills

Disadvantages of Gated Communities:

1. High Maintenance Costs
2. 10%-40% higher Expensive cost of living
3. Inconvenience for Guests
4. Difficulties in online order Deliveries
5. Situated away from the central locations, commuting may be difficult.
6. Leads to less heterogeneous economic diversity, since you wall off access to economic opportunities to those who can’t afford it
7. Far less spontaneity / serendipity, than living in a a diverse neighborhood.
8. Longer waiting times at the entrance
9. Physical separation of the rich from the poor

 Real estate statistics facts & figures:

1. World's second-highest number of households about 248,408,494 households in India
2. Highest rising demand for urban housing
3. realestate sector is the 2nd highest employment generation in india
4. India is the 3rd largest construction market in the world
5. Indian Economy growth in various segments (2014 vs Now)
   Infra spending:
   2009-14 - ₹1.57 Lakh Cr
   2019-24 - ₹33.3 Lakh Cr
   Wealth Created:
   2009-2014 - ₹ 13 Lakh Cr
   2019 -2023 - ₹ 165 Lakh Cr
   Metro construction Speed:
   2004-2014 - 0.5 Km /Month
   2014-2023 - 6.0 Km /Month
6. 462 million internet users, India is the second-largest online market in the world. 
7. The market for real estate is expected to grow from ₹12,000 crores in 2019 to ₹65,000 crores in 2040 and contribute to almost 13% of the country’s GDP by 2025.
8. Of these, 20 million Indians search for homes online every month. 
9. Almost 53 per cent of the total real estate transactions in India is influenced by the internet.

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land owners for JV join hands reach us :- pmsrealtorsmdu@gmail.com

Merits of going online/Web based application:

Merits of going online/Web based application:

• Global presence and expand your business.
• Website work for you 24/7.
• Accessibility from anywhere around the globe.
• Increase your customers.
• Increase name recognition and exposure.
• Increase communication with you customers or members
• Today everyone's on the Internet nearly 3 crore Indians are online and the internet business is growing by the day. (As per Juxt Consult India Online 07)
• Office & transportation cost savings.
• Very inexpensive way to reach new markets.
• Your business now has an extra outlet for taking orders.
• Less expensive. More ROI. Immediate results.
• Multi-user - Can be used by any no. of users connected to internet simultaneously.
• No client side software installations.
• Easy to use.
• Fast and easy way to sales & customer support.
• More options for your e-Business.
• Minimal startup time & investment.
• A sign of professionalism.
• The most environmentally friendly way to run a business. Telecommuting reduces the number of cars and car miles. You can test your sales strategies and offerings without wasting precious paper. Put your invoices, newsletters and catalogs online and save numerous trees

 

II. Benefits from Training

• Increased job satisfaction and morale among employees
• Increased motivation, commitment, staff retention and team spirit
• Time management
• Customer satisfaction.
• Increased efficiencies in processes, resulting in financial gain
• Increased capacity to adopt new technologies and methods
• Increased innovation in strategies and products
• Reduced employee turnover
• Enhanced company image, e.g., conducting ethics training
• Risk management, e.g., training about sexual harassment, diversity training
• Training has a positive effect on mental health and physical health
• Training can increase the likelihood of commercial survival
• Skills development can play an important role in reducing poverty
• Training can lead to reduced crime and repeat offending rates

III. Website advantages:

• Reducing the number of brochures that your company needs to produce.
• An online products database which is quick, easy and inexpensive to modify.
• Automated collection of orders, payments and customer details.
• Providing a timesaving shopping experience for customers.
• Providing answers to frequently asked questions thus saving staff time
• Accessing information about customer buying patterns and purchases thus providing further marketing opportunities
• Automated collection of orders, payments and customer details
• An on line database of products which is quick, easy and inexpensive to modify
• Improved communication by email which is professional and convenient, and is significantly better than leaving messages on answering machines