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Introduction

&

Scope

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INTRODUCTION

The purchase or sale of a home or investment property is not only one of the most

important financial events in peoples’ lives, but also one of the most complex

transactions. As a result, people usually seek the help of real estate agents and

brokers when buying or selling real estate.

Real estate agents and brokers have a thorough knowledge of the real estate

market in their community. They know which neighborhoods will best fit clients’

needs and budgets. They are familiar with local zoning and tax laws, and know

where to obtain financing. Agents and brokers also act as an intermediary in price

negotiations between buyers and sellers. Real estate agents are usually

independent sales workers who provide their services to a licensed broker on a

contract basis. In return, the broker pays the agent a portion of the commission

earned from the agent’s sale of the property.

Property Service Division of LIC Housing Finance Limited deals with the same

business of real estate. The need of entering in this field was felt by LIC Housing

Finance Ltd due to increasing prospects in Real Estate business. There are many

big brands namely ICICI realty, HDFC Realty, Axis Bank Realty etc.

A new line of business by the name Property services Division is being launched

across the country in selected centers. The function of the Property services

Division includes all activities involved in enabling a prospective homebuyer

select the property up to taking the possession of the same. It is thus conceived to

be a one-stop-shop for all the advisory services related to the above. Property

services division, which offers investors and builders a single transparent platform

to buy/sell office and commercial spaces and residential apartments/flats.

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Scope of Property Service Division

The Real Estate Investment Scope In India- A Lucrative And Safe

Option

Realty sector is one of those sectors that have always yielded high percentage of

capital gain for the investors. Whether be it in the case of the developed countries

or developing nations, each and every economy tries to maintain its financial

infrastructure as sound as possible so that they can easily attract more number of

investors and business personnel to involve with their economy. Real estate sector

depicts the true economic development of a particular nation. India, one of the

fastest developing nations in this world since independence; has successfully

emerged as one of the lucrative destinations to reap assured benefits on real estate

investment in almost all the states and cities of the nation. The modern amenities

and infrastructural facilities as good connectivity roads, green environment, better

transport; secured power supply are some of the standout features that have lured

the attentions of investors from all across the globe towards India real estate

properties.

In India real estate properties can be broadly categorized mainly into two distinct

groups, namely the commercial property and the residential property. The

underlying line of distinction between a commercial property and residential

property is noticed while noticing the use and purpose of that property.

Commercial properties are commonly used as office buildings, malls, retail

outlets, etc. and residential property is mainly used for personal use only.

Due to the development of industries in the NCR region, more and more number

of people have started to earn huge amounts of return from their jobs and

businesses. Now they want to invest their earnings in more lucrative as well as

less riskier investments that would give them more benefits as compared to the

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other options. The Indians look at the business as the more profitable option with

greater dividends on investments. This in turn has led to the increase in the

amounts of foreign investments in business in India. And real estate markets in

India are growing continuously at the rate of 30% each year.

Turning our looks towards the state of the residential properties in Gurgaon and

the neighboring NCR cities, with the fast expansion of population in northern

India aided by the recent boom in the jobs sector, the demand for residential

property for such a large population has seen a good amount of surge. The recent

surveys that have been conducted India have strongly indicate India has the

second largest population in the world and china has the largest population in the

world. The study also reveals that with in the next decade India will cross Chinese

population and will be on the top for having largest population.

Commercial as well as real estate sector has witnessed a real boom in the NCR

region in India. Since the liberalization of the Indian economy, real estate

business has seen an upward trend in the last fifteen two decades. The advent of

the multinational companies to India in order to set up a viable industrial base,

especially the IT sector, which has seen a phenomenal growth, the demand for

space has risen up and with that the prices have also been touching sky heights.

The major source of the thrust is mostly due to favorable economic policies, the

constant rise in the purchasing power, new growth of customer friendly banks

professionalism in real estate.

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Brief Introduction

Of

LIC HFL

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LIC Housing Finance Limited

LIC Housing Finance Ltd. is one of the largest Housing Finance Company in

India.

It provides Housing Loan for long term Finance with low Home Loan Interest

Rates. You can take a Home Loan either for purchasing a plot or for house

extension or for repair & renovation.

Vision: Complete Financial Solutions to secure your future.

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Mission: To grow steadily and sustainably in our customers’

mind and money space.

History Of LIC Housing Finance:

Launched in 1989 as per Companies Act, 1956 lic housing finance has grown to

be one of the largest lender in home-finance market

Promoted by LIC that helped in initial business functions. Finally after being

promoted as a company offering housing finance by lic it went public in 1994.

LIC Housing Finance news state that its authorized capital stands at Rs.150 crores

or Rs.150 million.

Its shares are trade only in dematerialized form at both NSE and BSE.

Its GDRs are traded at Luxembourg Stock Exchange.

Presently, according to lichousing finance news there are over 158 marketing

units; along with a wide network of 6 regional offices and over 13 back-offices.

1989 - The Company was incorporated on 19th June as a public limited

company. It was promoted by LIC of India. The Company provide housing

loans to individuals, builders, development authorities, employers organisation

etc.

- The Company has started various schemes: Griha Prakash a general scheme,

Griha Tara under which it accepts only Bima Sandesh Plan as Life Insurance

Corporation, Griha Shobha for NRIs and Griha Lakshmi for people to have a

second house.

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1994 - 3,00,57,900 No. of equity shares were issued at a premium of Rs 50 per

share through public issue on 15th November 1994. The allotment was as

follows; 10,82,000 shares to LIC on firm allotment basis and the balance

189,75,900 shares to public (all were taken up).

1996 - The Company has decided to carry out fund based and one-fund based

activities, viz., debt securitisation, lease and hire purchase, renting of properties

and giving guarantee to co-operate bodies.

2000 - Crisil has assigned a AAA rating to the issue of mortgage backed pass

through certificate backed by mortgages orginated by the company.

2001 - The Company has launched its new scheme, Griha Vikas.

2002 - LIC Housing Finance Ltd has informed BSE that the Company has

forfeited 1,25,300 equity shares due to non payment of allotment/call monies.

-LIC Housing Finance has approved for the take over of Individual Housing

loan portfolio of GLFL Housing Finance.

-Around 25 investors subscribed to the issue of confidentially placed debentures

for a total amount of Rs.392 cr of LIC Housing Finance Ltd.

-LIC Housing Finance Ltd has decreased its interest rates on housing loans by

25-50 basis points.

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-Financial Institutions have increased their stake from 0.01% to 1.96% and

Mutual Fund companies have increased their stake from 0.35% to 1.06% in LIC

Housing Finance.

-LIC Housing Finance Ltd has decreased the floating rate of interest under

individual loan scheme to 9.5% from 11%.

-LIC Housing Financee signed a deed of assignment to take over individual

housing loan portfolio of Citibank N A.

-UTI and IFCI has been removed from the list of promoters of LIC Housing

Finance.

2003 - LIC Housing Finance has unveiled a new project for elderly people

called 'LIC HFL Care Homes' .

-LIC Housing Finance Ltd has sanctioned 84,126 loans worth Rs.3265.78cr and

disbursed 76,663 loans worth Rs.2941.24cr under its Individual Loan Scheme.

-LICHFL has mobilised Rs.280cr for 15 years at 7% rate of interest through

private placement.

-Lic Housing Finance Ltd has informed that the shares of the company have

been delisted from The Stock Exchange - Ahmedabad w.e.f December 08, 2003.

2004 -Merill Lynch Capitat acquires LIC housing stake of 0.39%

-Templeton Asset Management buys 37,52,362 equity shares, representing

5.01% of LIC Housing's total paid-up capital of Rs 74.9 crore

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-LIC Housing Finance Ltd has informed that the shares of the Company has

been voluntarily delisted from the Delhi Stock Exchange (DSE) w.e.f. January

23, 2004.

-LIC Housing Finance shares delisted from Madras Stock Exchange

-Mr D Krishnan appointed as Chief Executive Officer

- LIC Housing Finance Ltd's (LICHFL) one-crore global depository receipts

(GDR) issue opened on August 27.

- Lists its maiden global offerings worth .85 million at the Luxembourg Stock

Exchange successfully.

-Introduces new product that starts as a fixed rate loan but contains an option to

convert it to a Floating rate loan at the end of five years, at the then prevailing

rate.

2005 -Delist from The Calcutta Stock Exchange Association Ltd (CSE) with

effect from December 09, 2004.

-LIC Housing Finance launches loan product that eliminates the requirement of

charge on house financed.

-Goldman Sachs acquires share in LICHFL

2007 -LIC Housing Finance to launch FD scheme -LIC Housing Finance to

enter into reverse mortgage product.

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2008 - LIC Housing Finance Ltd has informed that the Board has appointed the

following persons as Directors on the Board of the Company on May 20, 2008

-Name of the Director : Shri. D K Mehrotra For the Position of : Managing

Director

Change effective from : May 20, 2008.

- LIC Housing Finance Ltd has informed that the Board of Directors of the

Company has appointed following person as Director on the Board of the

Company on July 01, 2008.

- Name of the Director : Shri A S Narayanamoorthy

- For the position of : Additional Director

- Change effective from : July 02, 2008

-LIC Housing Finance launches Reverse Mortgage for senior citizens

2009 - LIC Housing Finance cut interest rates for new loans by 0.5% where for

customers opting for floating rate loans between Rs 30 lakh and Rs 75 lakh, the

new rates will be 8.755 against 9.25%.

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Company Profile

LIC Housing Finance Ltd is one of thelargest Housing Finance company in India.�

The company is engaged in the business of providing loans for purchase,

construction, repairs and renovation of houses/flats to individuals, corporate

bodies, builders and co-operative housing societies and has its operations within

India. They provide loans for homes, construction activities, its corporate housing

schemes. Around 89% of the loan portfolio derived from the retail segment and

the rest from large corporate clients. The main objective of the company is

providing long term finance to individuals for purchase / construction / repair and

renovation of new / existing flats / houses. Thecompany also provides finance on�

existing property for business / personal needsand gives loans to professionals for�

purchase / construction of Clinics / Nursing Homes / Diagnostic Centres / Office

Space and also for purchase of equipments. The company through their

subsidiaries LICHFL Care Homes Limited, is engaged in the business of setting

up, running and maintaining assisted living community centre/care homes for

senior citizens; LICHFL Financial Services Ltd, is engaged in the business of

marketing various financial products and services, and LICHFL Asset

Management Company Ltd is engaged in business of managing, advising,

administering mutual funds, unit trusts, investment trusts and to act as financial

and investment advisors and render financial advisory services. The company

possesses one of the industry's most extensive marketing network in India. The

company is having their registered and corporate office at Mumbai. They have7�

regional offices, 13 back offices and 190 marketing units across India. In addition

the company has appointed over1241 direct sales agents (DSAs),6535 home loan� �

agents (HLAs) and782 customer relationship associates (CRAs) to extend their�

marketing reach. They have set up a representative office in Dubai and Kuwait to

cater to the non-resident Indians in the GLCC countries covering Bahrain, Dubai,

Kuwait, Qatar and Saudi Arabia. LIC Housing Finance Ltd was incorporated on

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June 19 1989. The company was promoted by LIC of India and went public in the

year 1994. The company is recognized by National Housing Bank and listed on�

the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE)

and its shares are traded only in Demat format. The GDR's are listed on the

Luxembourg Stock Exchange. In the period of 2001, the company launched their

new scheme called Griha Vikas. In the year 2002, the company signed a deed of

assignment to take over individual housing loan portfolio of Citibank. In the year

2003, they unveiled a new project for elderly people called LICHFL Care Homes.

The company launched their maiden GDR issue in the year 2004. Also, they

introduced flexi-fixed scheme offering fixed rate of interest for first five years and

variable thereafter. In October 2005, the company started offering of 'New Griha

Laxmi' housing loans against the security of certain approved financial assets like

Bank Fixed Deposits, National Savings Certificates and Life Insurance Policies.

In the year 2006, the company introduced new Griha Jestha for senior citizens for

buying unit of LICHFL Care Homes Ltd. In May 2007, the company launched

maiden Fixed Deposit Scheme. In October 31, 2007, the company incorporated

LICHFL Financial Services Ltd for undertaking non fund based activities like

marketing of housing loans, insurance products, credit card, mutual fund, personal

loan etc. In February 2008, they launched reverse mortage for senior citizens

above 60 years of age. In February 14, 2008, the company incorporated LICHFL

Asset Management Company Private Limited for undertaking the business of

managing, advising, administering venture funds, unit trust, investment trust in

India as well as abroad. In March 5, 2008, the company incorporated LICHFL

Trustee Company Private Limited for undertaking the business of trustees of

venture capital trust, funds - in India and offshore fund. In March 12, 2008, they

launched a new venture capital fund for realty projects. During the year 2009-10,

the company was awarded the 'Second Best Home Loan Provider' award by

Outlook Profit. During the year 2010-11, the company launched a unique interest

rate scheme namely, 'MINI 5' to cater to housing finance needs of the priority

sector population residing in Tier II and Tier III cities.

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Various Products Offered By LIC Housing Finance:

As per various LIC Housing Finance news, there are many products that are

offered by the company ever since it was launched way back in the year 1989.

These include both deposits as well as advance schemes that work as tools of

housing finance by LIC:

Reasons for Home Loans:

To own a home is everyone's dream. From a single room to multi-storeyed

apartments, private villas, holiday homes, second homes - the Housing market is

well developed in most towns.

Home loans help you realize your own home dream, even when you are young.

We help you plan your dream home as you start your working life, by offering

various options of easy installments, Income Tax benefits and more . . .

Loans: Loans are offered as per different target groups of consumers. Thus, there

are lic housing finance schemes offered as loans according to different borrower-

category, such as:

i) Corporate loans

ii) Loans meant specifically for builders as well as real estate developers

iii) Home-loans

iv) Loans aimed at professionals

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Deposit schemes: Deposit schemes were first launched by the company on 10th

May 2007 and may be accepted as both cumulative as well as non-cumulative

deposit schemes. Terms of deposit may range from 1 year; 18 months; 2 years; 3

years as well as 5 years.

Interest under non-cumulative deposit schemes would be distributed twice a year;

whereas interest on cumulative deposit schemes would be calculated as per bi-

annually compounding.

Loans:Housing Finance By LIC :

Loan-schemes available with lic housing finance are customized to suit varied

requirements as per individual borrower-profile. As per official website and

lichousing finance news following loans are available:

Home loans: Are offered at easy rates to both residents as well as non-resident

Indians. Step-up facility in terms of amount of EMI amount is also available for

those who wish to opt for a steady increase in their repayment capacity during

tenure if loan.

Corporate loans: Aimed at corporate employees who have been approved by

LIC and include employees of PSUs, reputed public as well as private limited

companies

Housing finance by LIC loans to professionals: Aimed at non-salaried

professionals.

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Taking a home loan is a major decision, involving a large investment.

Though the availability of easy financing, innovative products and other

value-added services by Home Loan companies have made the home

buying process relatively easy, for a customer it is still a challenge to

decide which home loan works best for him.

LICHFL is the best choice because:

• LIC HOUSING FINANCE LIMITED is one of the largest Housing Finance

providers in India, which has provided finance for almost 9,50,000 houses in

the country.

• LICHFL is a single-product company with its core business being Home

Loans, and has about two decades of experience and in-depth knowledge of the

real estate market dynamics.

• LICHFL provides:

• Lowest Interest Rates

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• Easy application, quick approvals.

• Largest Network.

• No Hidden Costs.

• The Company has been rated as FAAA/Stable by CRISIL.

Reasons to buy from LICHFL?

They operate in the Financial Services industry with you as the center of We

operate in the Financial Services industry with you as the center of focus. We

provide complete, holistic financial solutions to meet all your financial needs. We

ensure well-trained, professional financial planners at your service, as well as

provide you with personal finance education and money management tools, to

help you make the right decisions for your secure future.

Competitors in the Market

State Bank of India:

SBI offers its customers exclusive packages of mortgage loans at lowest rates.

One such service includes Reverse Mortgage Loan that enables house-owning

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Senior Citizens having inadequate income to meet their financial needs for

renovation/repairs to house, medical & other personal purposes.

Bank of Baroda :

The Bank of Baroda is reputed for providing very high quality financialproducts

pertaining to home loans and loans for household purposes. It offers a flexible

approach to the customers to deposit , withdraw and repay installments as per

need and enjoy low mortgage rates combining it with the loan and over draft

facility.

United Bank of India :

United Bank Of India has been around in the financial sector from more than 50

years and the mortgage scheme offered by the bank is one of the most important

part of its financial portfolio. The loan caters the basic need of the borrower to

meet any personal/ business requirement at affordable rates.

ICICI Home Finance :

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Part of the ICICI Group , ICICI HFC is one of the leaders in the Indian mortgage

finance and realty space following just after HDFC. Its various business offerings

include, Home loans, Loan against property, Home search, Construction Finance

and so on.

PROPERTY SERVICE DIVISION

Property Service Division is a new division which was introduced two

years back in LIC HFL. Property services division, which offers investors

and builders a single transparent platform to buy/sell office and

commercial spaces and residential apartments/flats.

A new line of business by the name Property services Division is being

launched across the country in select centers. The function of the Property

services Division includes all activities involved in enabling a prospective

homebuyer select the property up to taking the possession of the same. It

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is thus conceived to be a one-stop-shop for all the advisory services related

to the above.

Said C J George, managing director, Geojit, "Real estate has emerged as

an important asset class for retail investors. Through this initiative, Geojit

plans to move up the service-value ladder to include new asset classes that

require advice and service."

PSD is mostly found in metros. According to the Head of PSD in LIC

HFL, Lucknow, property services is an unexplored profitable field whose

value has not been yet recognized.

At Home Search, one have access to the entire real estate market, under

one roof. When the customer choose to avail LICHFL’s PSD Home search

service, they are assured themselves a relaxed search experience. PSD

assist them at each step, irrespective of whether the customer want to buy,

sell, lease or even take property on rent.

Quite simply, it is the attempt at simplifying the process of buying that

dream home by ensuring that the customer doesn't need to run from pillar

to post. . It focuses on providing customers with a one-stop shop for

acquiring their new home or finding a buyer or lessee for their property.

Brief Introduction:

Brokers are independent business people who, for a fee, sell real estate

owned by others; they also may rent and manage properties for a fee.

When selling real estate, brokers arrange for title searches and for

meetings between buyers and sellers where details of the transactions are

agreed upon and the new owners take possession. A broker’s knowledge,

resourcefulness, and creativity in arranging favorable financing for the

prospective buyer often mean the difference between success and failure

in closing a sale. In some cases, brokers and agents assume primary

responsibility for closing sales; in others, lawyers or lenders do this.

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Brokers supervise agents who may have many of the same job duties.

Brokers also manage their own offices, advertise properties, and handle

other business matters. Some combine other types of work, such as selling

insurance or practicing law, with their real estate business.

There is more to an agent or broker’s job than just making sales. They

must have properties to sell. Consequently, they spend a significant

amount of time obtaining listings—owner agreements to place properties

for sale with the firm. When listing a property for sale, agents and brokers

compare the listed property with similar properties that have recently sold

to determine its competitive market price. Once the property is sold, the

agent who sold the property and the agent who obtained the listing both

receive a portion of the commission. Thus, agents who sell a property they

also listed can increase their commission.

Most real estate agents and brokers sell residential property. A small

number, usually employed in large or specialized firms, sell commercial,

industrial, agricultural, or other types of real estate. Every specialty

requires knowledge of that particular type of property and clientele.

Selling or leasing business property requires an understanding of leasing

practices, business trends, and location needs. Agents who sell or lease

industrial properties must know about the region’s transportation, utilities,

and labor supply. Whatever the type of property, the agent or broker must

know how to meet the client’s particular requirements.

Before showing residential properties to potential buyers, agents meet with

buyers to get a feeling for the type of home the buyers would like. In this

prequalifying phase, the agent determines how much buyers can afford to

spend. In addition, they usually sign a loyalty contract which states the

agent will be the only one to show them houses. An agent or broker uses a

computer to generate lists of properties for sale, their location and

description, and available sources of financing. In some cases, agents and

brokers use computers to give buyers a virtual tour of properties in which

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they are interested. Buyers can view interior and exterior images or floor

plans without leaving the real estate office.

Agents may meet several times with prospective buyers to discuss and

visit available properties. Agents identify and emphasize the most

pertinent selling points. To a young family looking for a house, they may

emphasize the convenient floor plan, the area’s low crime rate, and the

proximity to schools and shopping centers. To a potential investor, they

may point out the tax advantages of owning a rental property and the ease

of finding a renter. If bargaining over price becomes necessary, agents

must carefully follow their client’s instructions and may have to present

counteroffers in order to get the best possible price.

Once both parties have signed the contract, the real estate broker or agent

must see to it that all special terms of the contract are met before the

closing date. For example, if the seller agrees to a home inspection or a

termite and radon inspection, the agent must make sure this is done. Also,

if the seller agrees to any repairs, the broker or agent must see they are

made. Increasingly, brokers and agents handle environmental problems by

making sure the properties they sell meet environmental regulations. For

example, they may be responsible for dealing with problems such as lead

paint on the walls. While loan officers, attorneys, or other persons handle

many details, the agent must check to make sure that they are completed.

Working Conditions

Increasingly, real estate agents and brokers work out of their homes

instead of real estate offices because of advances in telecommunications

and the ability to retrieve data on properties over the Internet. Even with

this convenience, much of their time is spent away from their desk—

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showing properties to customers, analyzing properties for sale, meeting

with prospective clients, or researching the state of the market.

Agents and brokers often work more than a standard 40-hour week; nearly

1 out of every 4 worked 50 hours or more a week in 1998. They often

work evenings and weekends, and are always on call to suit the needs of

clients. Business is usually slower during the winter season. Although the

hours are long and often irregular, most agents and brokers also have the

freedom to determine their own schedule. Consequently, they can arrange

their work so they can have time off when they want it.

Employment

Real estate agents and brokers held about 347,000 jobs in 1998. Many

worked part time, combining their real estate activities with other careers.

More than two-thirds of real estate agents and brokers were self-

employed. Real estate is sold in all areas, but employment is concentrated

in large urban areas and in smaller, but rapidly growing communities.

Most real estate firms are relatively small; indeed, some are a one-person

business. Some large real estate firms have several hundred agents

operating out of many branch offices. Many brokers have franchise

agreements with national or regional real estate organizations. Under this

type of arrangement, the broker pays a fee in exchange for the privilege of

using the more widely known name of the parent organization. Although

franchised brokers often receive help training salespeople and running

their offices, they bear the ultimate responsibility for the success or failure

of their firm.

Real estate agents and brokers are older, on average, than most other

workers. Historically, many homemakers and retired persons were

attracted to real estate sales by the flexible and part time work schedules

characteristic of this field. They could enter, leave, and later reenter the

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occupation, depending on the strength of the real estate market, family

responsibilities, or other personal circumstances. Recently, however, the

attractiveness of part time work has declined, as increasingly complex

legal and technological requirements raise startup costs associated with

becoming an agent.

Training, Other Qualifications, and Advancement

In every State real estate agents and brokers must be licensed. Prospective

agents must be a high school graduate, at least 18 years old, and pass a

written test. The examination—more comprehensive for brokers than for

agents—includes questions on basic real estate transactions and laws

affecting the sale of property. Most States require candidates for the

general sales license to complete between 30 and 90 hours of classroom

instruction. Those seeking a broker’s license need between 60 and 90

hours of formal training and a specific amount of experience selling real

estate, usually one to three years. Some States waive the experience

requirements for the broker’s license for applicants who have a bachelor’s

degree in real estate.

State licenses typically must be renewed every one or two years, usually

without reexamination. However, many States require continuing

education for license renewal. Prospective agents and brokers should

contact the real estate licensing commission of the State in which they

wish to work to verify exact licensing requirements.

As real estate transactions have become more legally complex, many firms

have turned to college graduates to fill positions. A large number of agents

and brokers have some college training. College courses in real estate,

finance, business administration, statistics, economics, law, and English

are helpful. For those who intend to start their own company, business

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courses such as marketing and accounting are as important as those in real

estate or finance.

Personality traits are equally as important as academic background.

Brokers look for applicants who possess a pleasant personality, honesty,

and a neat appearance. Maturity, tact, trust-worthiness, and enthusiasm for

the job are required in order to motivate prospective customers in this

highly competitive field. Agents should also be well organized, detail

oriented, and have a good memory for names, faces, and business details.

Those interested in jobs as real estate agents often begin in their own

communities. Their knowledge of local neighborhoods is a clear

advantage. Under the direction of an experienced agent, beginners learn

the practical aspects of the job, including the use of computers to locate or

list available properties and identify sources of financing.

Many firms offer formal training programs for both beginners and

experienced agents. Larger firms usually offer more extensive programs

for both beginners and experienced agents. Larger firms usually offer

more extensive programs than smaller firms do. Over 1,000 universities,

colleges, and junior colleges offer courses in real estate. At some, a

student can earn an associate or bachelor’s degree with a major in real

estate; several offer advanced degrees. Many local real estate associations

that are members of the National Association of Realtors sponsor courses

covering the fundamentals and legal aspects of the field. Advanced

courses in mortgage financing, property development and management,

and other subjects are also available through various affiliates of the

National Association of Realtors.

Advancement opportunities for agents may take the form of higher

commission rates. As agents gain knowledge and expertise, they become

more efficient in closing a greater number of transactions and increase

their earnings. Experienced agents can advance in many large firms to

sales or general manager. Persons who have received their broker’s license

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may open their own offices. Others with experience and training in

estimating property value may become real estate appraisers, and people

familiar with operating and maintaining rental properties may become

property managers. (See the statement on property, real estate, and

community association managers elsewhere in the Handbook).

Experienced agents and brokers with a thorough knowledge of business

conditions and property values in their localities may enter mortgage

financing or real estate investment counseling.

Job Outlook

Employment of real estate agents and brokers is expected to grow about as

fast as the average for all occupations through the year 2008. However, a

large number of job openings will arise due to replacement needs. Each

year, thousands of jobs will become available as workers transfer to other

occupations or leave the labor force. Not everyone is successful in this

highly competitive field; many beginners become discouraged by their

inability to get listings and to close a sufficient number of sales. Well-

trained, ambitious people who enjoy selling should have the best chance

for success.

Increasing use of electronic information technology will increase the

productivity of agents and brokers as computers, faxes, modems, and

databases become commonplace. Some real estate companies use

computer-generated images to show houses to customers without leaving

the office. Internet sites contain information on vast numbers of homes for

sale, available to anyone. These devices enable an agent to serve a greater

number of customers. Use of this technology may eliminate some

marginal agents such as those practicing real estate part time or between

jobs. These workers will not be able to compete as easily with full time

agents who have invested in this technology. Changing legal requirements,

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like disclosure laws, may also dissuade some that are not serious about

practicing full time from continuing to work part time.

Another factor expected to impact the need for agents and brokers is the

ability of prospective customers to conduct their own searches for

properties that meet their criteria by accessing real estate information on

the Internet. While they won’t be able to conduct the entire real estate

transaction on-line, it does allow the prospective buyer the convenience of

making a more informed choice of properties to visit, as well as the ability

to find out about financing, inspections, and appraisals.

Employment growth in this field will stem primarily from increased

demand for home purchases and rental units. Shifts in the age distribution

of the population over the next decade will result in a growing number of

persons in the prime working ages with careers and family responsibilities.

This is the most geographically mobile group in our society, and the one

that traditionally makes most of the home purchases. As their incomes

rise, they also may be expected to invest in additional real estate.

Employment of real estate agents and brokers is very sensitive to swings

in the economy. During periods of declining economic activity and tight

credit, the volume of sales and the resulting demand for sales workers

falls. During these periods, the earnings of agents and brokers decline, and

many work fewer hours or leave the occupation altogether.

Earnings

The median annual earnings of salaried real estate agents, including commission,

in 2011 was around Rs. 15,28,020. The middle 50 percent earned between

11,9,060 and 6,46,360 a year. The lowest 10 percent earned less than 1,13,800

and the highest 10 percent earned more than Rs.8,36,330 a year.

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Commissions on sales are the main source of earnings of real estate agents

and brokers. The rate of commission varies according to agent and broker

agreement, the type of property, and its value. The percentage paid on the

sale of farm and commercial properties or unimproved land is usually

higher than the percentage paid for selling a home.

Commissions may be divided among several agents and brokers. The

broker and the agent in the firm who obtained the listing usually share

their commission when the property is sold; the broker and the agent in the

firm who made the sale also usually share their part of the commission.

Although an agent’s share varies greatly from one firm to another, often it

is about half of the total amount received by the firm. Agents who both list

and sell a property maximize their commission.

Income usually increases as an agent gains experience, but individual

ability, economic conditions, and the type and location of the property also

affect earnings. Sales workers who are active in community organizations

and local real estate associations can broaden their contacts and increase

their earnings. A beginner’s earnings are often irregular because a few

weeks or even months may go by without a sale. Although some brokers

allow an agent a drawing account against future earnings, this practice is

not usual with new employees. The beginner, therefore, should have

enough money to live on for about six months or until commissions

increase.

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Types of services that a PSD can provide:

Since each state's laws may differ from others, it is generally advised that

prospective sellers or buyers consult a licensed real estate professional.

Some Examples:

Comparative Market Analysis (CMA) — an estimate of the home's value

compared with others. This differs from an appraisal in that property currently for

sale may be taken into consideration (competition for the subject property).

Exposure — Marketing the real property to prospective buyers.

Facilitating a Purchase — guiding a buyer through the process.

Facilitating a Sale — guiding a seller through the selling process.

FSBO document preparation — preparing necessary paperwork for "For Sale

By Owner" sellers.

Full Residential Appraisal — but only, in most states, if the broker is also

licensed as an appraiser.

Home Selling Kits —

guides to how to market and sell a property.

Hourly Consulting for a fee, based on the client's needs.

Leasing for a fee or percentage of the gross lease value.

Property Management.

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Exchanging property.

Auctioning property.

Preparing contracts and leases. (Not in all states.)

These services are also changing as a variety of real estate trends transform the

industry.

Services provided to both buyers and sellers

In addition to the services to sellers and buyers described below, most real

estate agents coordinate various aspects of the closing.

Real estate brokers (and their agents) typically do not provide title service

such as title search or title insurance, do not conduct surveys or formal

appraisals of the property such as those required by lenders, and do not act

as lawyers for the parties, although they may "coordinate" these activities

with the appropriate specialists. Some real estate brokers may be

associated with loan officers who may help to finance buyers to make their

purchase. For ex: LICHFL

Regardless of whether a real estate agent assists sellers or buyers of real

estate, negotiating skills and knowledge of financing options are

important.

Services provided to seller as client

Upon signing a listing contract with the seller wishing to sell the real

estate, the brokerage attempts to earn a commission by finding a buyer for

the sellers' property for highest possible price on the best terms for the

seller. In Canada, most provinces' laws require the real estate agent to

forward all written offers to the seller for consideration or review.

To help accomplish this goal of finding buyers, a real estate agency

commonly does the following:[citation needed]

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Listing the property for sale to the public, often on an MLS, in addition to

any other methods.

Based on the law in several states, providing the seller with a real property

condition disclosure form, and other forms that may be needed.

Preparing necessary papers describing the property for advertising,

pamphlets, open houses, etc.

Generally placing a "For Sale" sign on the property indicating how to

contact the real estate office and agent.

Advertising the property. Advertising is often the biggest outside expense

in listing a property.

In some cases, holding an open house to show the property.

Being a contact person available to answer any questions about the

property and to schedule showing appointments

Ensuring buyers are prescreened so that they are financially qualified to

buy the property; the more highly financially qualified the buyer is, the

more likely the closing will succeed.

Negotiating price on behalf of the sellers. The seller's agent acts as a

fiduciary for the seller. This may involve preparing a standard real estate

purchase contract by filling in the blanks in the contract form.

In some cases, holding an earnest payment cheque in escrow from the

buyer(s) until the closing. In many states, the closing is the meeting

between the buyer and seller where the property is transferred and the title

is conveyed by a deed. In other states, especially those in the West,

closings take place during a defined escrow period when buyers and

sellers each sign the appropriate papers transferring title, but do not meet

each other.

Several types of listing contracts exist between broker and seller. These may

be defined as:

Exclusive right to sell

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In this type of agreement, the broker is given the exclusive right to market

the property and represents the seller exclusively. This is referred to as

seller agency. However, the brokerage also offers to co-operate with other

brokers and agrees to allow them to show the property to prospective

buyers and offers a share of the total real estate commission.

Exclusive agency

An alternative form, "exclusive agency", allows only the broker the right

to sell the property, and no offer of compensation is ever made to another

broker. In that case, the property will never be entered into an MLS.

Naturally, that limits the exposure of the property to only one agency.

Open listing

This is an agreement whereby the property is available for sale by any real

estate professional who can advertise, show, or negotiate the sale.

Whoever first brings an acceptable offer would receive compensation.

Real estate companies will typically require that a written agreement for

an open listing be signed by the seller to ensure the payment of a

commission if a sale should take place.

Although there can be other ways of doing business, a real estate

brokerage usually earns its commission after the real estate broker and a

seller enter into a listing contract and fulfill agreed-upon terms specified

within that contract. The seller's real estate is then listed for sale,

frequently with property data entered into an MLS in addition to any other

ways of advertising or promoting the sale of the property.

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Net listings:

Property listings at an agreed-upon net price that the seller wishes to

receive with any excess going to the broker as commission are not legal in

most, if not all, states.

Brokerage commissions

In consideration of the brokerage successfully finding a satisfactory buyer

for the property, a broker anticipates receiving a commission for the

services the brokerage has provided. Usually, the payment of a

commission to the brokerage is contingent upon finding a satisfactory

buyer for the real estate for sale, the successful negotiation of a purchase

contract between a satisfactory buyer and seller, or the settlement of the

transaction and the exchange of money between buyer and seller. The

median real estate commission charged to the seller by the listing (seller's)

agent is 6% of the purchase price. Typically, this commission is split

evenly between the seller's and buyer's agents, with the buyer's agent

generally receiving a commission of 3% of the purchase price of the home

sold.

Local real estate sales activity usually dictates the amount of commission

agreed to. Real estate commission is typically paid by the seller at the

closing of the transaction as detailed in the listing agreement.

RESPA

Real estate brokers who work with lenders may not receive any

compensation from the lender for referring a residential client to a specific

lender. To do so would be a violation of a United States federal law

known as the Real Estate Settlement Procedures Act (RESPA).

Commercial transactions are exempt from RESPA. All lender

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compensation to a broker must be disclosed to all parties. A commission

may also be paid during negotiation of contract base on seller and agent.

Lockbox

With the sellers' permission, a lockbox is placed on homes that are

occupied and, after arranging an appointment with the home owner, agents

can show the home. When a property is vacant or where a seller may be

living elsewhere, a lockbox will generally be placed on the front door. The

listing broker helps arrange showings of the property by various real estate

agents from all companies associated with the MLS.

The lockbox contains the key to the door of the property and the box can

only be opened by licensed real estate agents (often only with

authorization from the listing brokerage), by using some sort of secret

combination or code provided by the brokerage or the issuer of the

lockbox.

Shared commissions with co-op brokers

If any buyer's broker (or any of his/her agents) brings the buyer for the

property, the buyer's broker would typically be compensated with a co-op

commission coming from the total offered to the listing broker, often

about half of the full commission from the seller. If an agent or

salesperson working for the buyer's broker brings the buyer for the

property, then the buyer's broker would commonly compensate his agent

with a fraction of the co-op commission, again as determined in a separate

agreement. A discount brokerage may offer a reduced commission in the

event no other brokerage firm is involved and no co-op commission is

paid out.

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If there is no co-commission to pay to another brokerage, the listing

brokerage receives the full amount of the commission minus any other

types of expenses.

Potential points of contention for agents

Controversy exists around how commissions paid to real estate agents are

disclosed to buyers and the effect additional seller incentives may have on

the negotiation process and final purchase price.

If a listing agent sells a property above the listed price, they make

additional income. In theory, this motivates them to get top dollar for the

seller. However, if an agent representing a buyer obtains a lower sales

price for their client, then they make a lower commission. Thus, it could

be considered to be in the agent's best interest to advise his client to

purchase the property at a higher price.

Another potential conflict of interest exists when a listing agent in a very

active real estate market sells properties quickly at low prices to benefit

from high sales volume.

Buyers as clients.

Some brokerages represent buyers only and are known as exclusive buyer

agents (EBAs). Consumer Reports states, "You can find a true buyer's

agent only at a firm that does not accept listings." The advantages of using

an Exclusive Buyer Agent is that they avoid conflicts of interest by

working in the best interests of the buyer and not the seller, avoid homes

and neighborhoods likely to fare poorly in the marketplace, ensure the

buyer does not unknowingly overpay for a property, fully informs the

buyer of adverse conditions, encourages the buyer to make offers based on

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true value instead of list price, which can sometimes be overstated, and

works to save the buyer money. A buyer agency firm commissioned a

study that found EBA purchased homes were seventeen times less likely

to go into foreclosure.

A real estate brokerage attempts to do the following for the

buyers of real estate only when they represent the buyers with

some form of written buyer-brokerage agreement:

Find real estate in accordance with the buyers needs, specifications, and

cost.

Takes buyers to and shows them properties available for sale.

When deemed appropriate, prescreens buyers to ensure they are

financially qualified to buy the properties shown (or uses a mortgage

professional, such a bank's mortgage specialist or alternatively a Mortgage

broker, to do that task).

Negotiates price and terms on behalf of the buyers and prepares standard

real estate purchase contract by filling in the blanks in the contract form.

The buyer's agent acts as a fiduciary for the buyer.

Due to the importance of the role of representing buyers' interests, many

brokers who seek to play the role of client advocate are now seeking out

the services of Certified Mortgage Planners, industry experts that work in

concert with Certified Financial Planners to align consumers' home

finance positions with their larger financial portfolio(s).

Buyers as customers

In most states, until the 1990s, buyers who worked with an agent of a real

estate broker in finding a house were customers of the brokerage, since the

broker represented only sellers.

Today, state laws differ. Buyers and/or sellers may be represented.

Typically, a written "Buyer Brokerage" agreement is required for the

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buyer to have representation (regardless of which party is paying the

commission), although by his/her actions, an agent can create

representation.

Find real estate in accordance with the buyers' needs, specifications, and

affordability.

Take buyers to and shows them properties available for sale.

When deemed appropriate, prescreen buyers to ensure they are financially

qualified to buy the properties shown (or uses a mortgage professional to

do that task).

Assist the buyer in making an offer for the property.

The impact of globalization on real estate brokers' activities

Globalization has had an immediate and powerful impact on real estate

markets, making them an international working place. The rapid growth of

the Internet has made the international market accessible to millions of

consumers. A look at recent changes in homeownership rates illustrates

this. Minority homeownership jumped by 4.4 million during the 1990s,

reaching 12.5 million in 2000, according to the Fannie Mae Foundation.

Foreign direct investment in U.S. real estate has increased sharply from

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$38 billion in 1997 more than $50 billion in 2002 according to U.S. 2000

Census data.

Most local real estate agents view the foreign market as a significant

revenue potential and may have already worked with international clients

in their local market, new immigrants or more sophisticated investors from

different cultures and from other countries. For example, they provide

value-added services that help overseas relocation employees figure out

which inoculations their children need and how to register a car in the

United States. Real estate brokers want to keep central to the transaction,

protect the best interests of their members and address the unique needs of

each multicultural global client by acquiring specialized training and

designations.

In 2007 the Mexican Association of Real Estate Professionals in Mexico,

AMPI, and the NAR, National Association of Realtors in the United

States, signed a bilateral contract for international real estate business

cooperation. Also at the local level, many other state and local

associations are helping other countries achieve the same result. For

instance, in New Mexico, a historically multicultural state, under the

RANM, Realtor Association of New Mexico and the President's Advisory

Council, is looking into forming an ambassador association to help a

foreign country into signing a bilateral agreement with the NAR. In New

Mexico, there are 4500 licensed real estate professionals and only 14 or 15

CIPS designees, out of whom, only six speak a language other than

English.

A "Management Guide For Real Estate Associations" exists, which is a

publication of the International Real Property Foundation (IRPF), which

was funded by the National Association of Realtors (NAR) and the

Reaume Foundation.The IRPF, in its Web site, regarding The Caux Round

Table (CRT) principles, states that: "Ethical perceptions and international

business is highly influenced by cultural differences. Because of cultural

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and ethical relativism, real estate business that is conducted across

national boundaries may discover ethical conflicts. Major ethical issues

that complicate international business activities include sexual and racial

discrimination, price discrimination, bribery, harmful products, and

telecommunications (enforcement of country-specific laws, copyrights,

and questionable financial activities). A good document for reference in

developing an association Code of Ethics in conjunction with such

principles is "The Caux Round Table Business Principles of Ethics"

(1995).

Because of the particularities and the nature of international transactions

between real estate agents of different countries, the Real Estate Code of

Ethics of each country are excellent to regulate the ethics of each member

in its own jurisdiction, but in the case of complex international real estate

transactions were sometimes ethical conflicts arise, there is a need to have

a group of principles more adjusted to international transactions were two

or more real estate agents of different countries participate in real estate

brokerage businesses. For example, in the NAR-FECEPAC memorandum

of understanding of February 2003, a commitment was set to promote and

adopt the respective code of ethics,standards and norms, but there is

nothing specific mentioned for complex ethical matters in international

transactions. There was surely a commitment to cooperate with a foreign

agent to work in local markets different from the foreign agents market.

As an example, it can be noticed that the NAR-CSBR Bilateral

Cooperation Agreement of November 12, 2001 also created a commitment

to promote and enforce mutually acceptable codes of ethics (Code of

Ethics meaning those that been promulgated by the cooperating

associations for use in their respective countries, each of which is

acknowledged to be acceptable to the other). Again, as the IRPF says

"Ethical perceptions and international business is highly influenced by

cultural differences. Because of cultural and ethical relativism, real estate

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business that is conducted across national boundaries may discover ethical

conflicts". There is also nothing specific mentioned for complex ethical

matters in international transactions, whilst the agreements do provide to

seek to facilitate business opportunities for members of the cooperating

associations who may be working in each others markets, and also

initiating and hosting trade missions. The bilateral agreement between

NAR and CSBR also states that both parties agree to enforce their

respective codes and advice the other of subsequent modifications to its

code of ethics.

Some association members of Central American Real Estate Associations

who are practicing agents and are involved in real life transactions on a

daily basis have expressed their concern in the sense that at the moment of

ethical conflicts with foreign colleagues, they have not had at hand any

practical instrument that can serve to resolve ethical conflicts (even though

agreements that make reference to code of ethics do exist).

Because the Caux Round Table principles are designed by corporate

leaders and provide a model of how a good corporate citizen behaves in

the countries and markets where it penetrates being a foreign entity, this

principles could serve to reduce the fear of local brokers to foreign

competition, provide an ethical framework against asymmetry of

participants in free trade of services in our industry, and will permit that

Central American association members that see an advantage in opening

their country markets to competition, and that see advantages in having

foreign strategic partners to work our their own local markets (e.g.: local

Central American brokers partnering with United States brokers to work

Central American Markets), keep promoting competition, globalization of

business, and free trade of services.

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A person may attend a pre-license course lasting 60 hours and then be

tested by the state for a real estate agent's license. Upon passing, the new

licensee must place their license with an established real estate firm,

managed by a broker. Requirements vary by state but after some period of

time working as an agent, one may return to the classroom and test to

become a broker. Brokers may manage or own firms. Each branch office

of a larger real estate firm must be managed by a broker.

States issue licenses for a multiyear period and require real estate agents

and brokers to complete continuing education prior to renewing their

licenses. Many states recognize licenses from other states and issue

licenses upon request to existing agents and firms upon request without

additional education or testing however the license must be granted before

real estate service is provided in the state.

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A Day in the life of a Real Estate Agent/Broker

Buying or selling a house or apartment is one of the biggest decisions of a

person’s life, and real estate agents and brokers help people negotiate what can be

a confusing process. Though both are often called real estate agents, agents and

brokers have different roles. The broker has more administrative responsibility.

There is usually one broker per estate, but often many agents are working with

clients who are interested in the property. When someone wants to sell or rent his

property he usually calls a real estate agent. A large chunk of the agent’s day may

be spent on the phone obtaining listings for her agency. The agent also arranges to

advertise the properties she is showing, and may visit each property before it is

shown to clients. She needs to know about everything from floor plans to heating

systems to cesspools-she’s a matchmaker, and she’s got to know both sides of the

equation. It’s also important for an agent to be familiar with the neighborhoods

she works in, so she can counsel her clients about a property’s fair market value.

A good real estate agent is informed about things like schools, tax rates, and

public transportation systems, and should be aware of going mortgage rates. A

real estate agent must manage delicate price negotiations when an interested

buyer and seller hook up. “Negotiating skills are not just important but critical for

real estate agents,” as one respondent put it. The agent also coordinates the

“closing” when a property is sold, which means the actual signing of papers and

transfer of a property’s title. Networking is a big part of the job-most real estate

agents develop a group of attorneys, mortgage lenders, and contractors to whom

they refer their clients. Finally, a real estate agent should be able to discern and be

sensitive to a client’s needs during what may be an uncertain time. In order to be

available when their clients have free time, real estate agents work many evenings

and weekends. An experienced agent will sometimes avoid some of the weekend

hours by having an “open house” and drafting a new agent to go and answer

potential buyers’ questions. Commercial real estate agents’ jobs involve more

research on market trends and an even more detailed attention to the needs of

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buyers. Since they work longer on each deal, commercial agents and brokers

make fewer sales than residential agents but receive higher commissions.

About the only things real estate agents have in common in terms of preparation

are high school diplomas and communication skills. More and more people are

entering the field with college degrees, however, and some colleges even offer

courses in real estate. These may be helpful, as would other business courses, but

most of the learning takes place after you’ve entered the field. In fact many real

estate agents come to the field from other, unrelated careers, attracted by the

flexible hours or the potential for part-time work. Before you can use the title

“Realtor” or become a member of the National Association of Realtors you must

have a real estate license. Every state requires that a broker or agent undergo a

series of examinations and log some experience before she is granted this license.

Many real estate boards offer preparatory classes. Once you have the license, it’s

usually renewed yearly without your having to repeat the tests. But each state has

its own test, so if you want to work in a different state you’ve got to pass their

exam.

Associated Careers

Careers associated with real estate often involve working with realtors. On the

mortgage end, loan officers arrange the conditions for financing home purchases

and act as liaisons between buyers and banks. Another possibility is the field of

real estate law, which requires going to law school. Agents seeking further

opportunities within the field have a few options, most of which involve setting

up shop independently of brokers. Appraisers, for example, assess the fair market

values of properties. Real estate counselors, likewise, are independent advisors

who offer advice to buyers about the suitability of properties they are interested

in.

What Real Estate Brokers and Sales Agents Do

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Real estate brokers and sales agents help clients buy, sell, and rent properties.

Brokers and agents do the same type of work, but brokers are licensed to manage

their own real estate businesses. Sales agents must work with a broker.

Work Environment

A majority—about 57 percent—of real estate brokers and sales agents were self-

employed in 2010. Although they often work long and irregular hours, many are

able to set their own schedules.

How to Become a Real Estate Broker or Sales Agent

In every state and the District, real estate brokers and sales agents must be

licensed. To become licensed, candidates must be high school graduates, be at

least 18 years old, and complete a particular number of hours of real estate

courses.

Functions of PSD

Though there are different types of consultants/intermediaries for property

services, there is no integrated approach to the various ancillary services that a

customer needs. There is thus a need for an integrated player and to bridge that

gap, LIC Housing Finance Ltd have opened its Property Services Division, which

shall be a "one-stop-shop" to provide RELIABLE advice, services and assistance

to prospective property buyers in an INTEGRATED, CUSTOMISED and TIME-

BOUND manner. LICHFL Property Services will provide its services for the

following :-

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Assisting the customer in selecting the property (Marketing & Sales of properties;

either residential or commercial).

Organising site visits and Booking of Properties.

Assisting the customer in completing the documentation and legal formalities like

drawing up the agreements, registration etc.

Assisting the customer in obtaining a home loan from a financial institution

dealing with Home Loans.

Assisting the customer in possession/registration/housewarming of the property.

Assisting the customers in selection of professionals/sourcing of materials for

interiors.

Organizing site visits and meeting with the developers/builder to complete the

transaction.

Assisting the customer in obtaining a home loan from LICHFL or from a lender

of their choice.

Assisting the customers in selecting the property which suits their requirements

and budget.

Assisting the customer in completing documentation & legal formalities like

agreements, registration, etc.

Monitoring the stage of construction and advising the customer for making

installment payments.

Assist in placing the property on rent, if the customer so desires.

Assist in selling the property if desirous.

Assisting the customer in selection of professionals/ sourcing of materials for

interiors.

Assisting the customer in possession / housewarming.

Tips for Customers

There are two aspects of Home Buying: Property Search and Home Loan

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1. Property search

Some of the primary concerns of Home Buyers are matters pertaining to the

property's title, its pricing, the developer’s track record, and so on.

2. Home Loan

After spending time and effort to research and find your dream home,

selection of a Home Loan company and the loan product should not be a

hasty decision.

The main issues besides the rate of interest offered, would be the

company’s loan procedure, product range, quality of services offered and

safe retrieval of the Title Deed of the property deposited as a security for

the housing loan, on completion of the loan tenure.

You should also be aware of how you can enhance your loan eligibility

without the burden of a higher EMI. LICHFL offers flexibility to

customers, enhances their loan eligibility, helps them optimize tax benefits

and customize EMIs according to their repayment capacity, so the

customer is able to repay the loan comfortably.

Further, when you take a home loan you enter into a long-term financial

commitment, as home loans are long-term loans where the commitment is

for a period of 15 to 20 years. In case of any unforeseen event during this

period, it is better to make sure that your family is not burdened with the

loan liability. Hence, to take care of uncertainties during such a long

period, it is better to take a Home Loan Insurance.

And finally, it is best to go with companies that have established

themselves over the years, as they are more flexible and will be able to

offer you customized services. The other advantage is this will also help

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you to encash on the vast pool of knowledge that comes with their

experience.

The LICHFL Advantage

Organized, Integrated and Professional Approach.

Strong Brand - Synonymous with Transparency, Trust and Credibility.

Experience in the field of real estate and financing.

Vast Network of Agency Force and Branch Network.

Large pool of experienced staff.

Additional in-house facility & expertise to provide home finance to customers.

Reliable advice as per requirements and budget of customer at the best terms and

price.

Highly experienced team of Over 773 Direct Sales Agent (DSA’s),3400 Home

Loan Agents (HLA’s) and 615 Customer Relationship Associates.

Existing network & relationship with service providers.

In-house facility to provide home finance.

Expertise in Legal and Technical Scrutiny of Property

Relationship with leading Developers across the country.

Thorough understanding of processes.

Punchline - "Are you sure that you will get the desired loan, after you have

booked the property? Now, book your property through LIC HFL Property

Services and have peace of mind." All services - from booking of property till

possession; under one roof. Fair and transparent deal.

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Reasons for Choosing LICHFL PSD Home Search Facility:

• Employ a comprehensive database of builders, development projects and

available real estate to identify properties that will meet your individual

requirements.

• Regularly update our database to ensure that you are constantly filled in real

estate opportunities.

• In depth cognizance of various builders & real estate projects empowers us to

fine tune your search. We work within the budget and area specified by you.

• Offer unbiased advice.

• Offer special schemes and attractive rates, help you negotiate the best price and

advise you on payment schedules.

• Assist to get the best deals on Home Loans.

The working of Property Service Division depends on the

following three steps:

1. Tie up with the builders.

2. Customer make-up

3. Documentation

A 7-step Process of Identifying a Property for Purchase or Rent

• Step 1: Register with them, free of cost

• Step 2: Describe your requirement, budget and preferred locality

• Step 3: They will match your requirements with properties in our database.

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• Step 4: Their counselor would then fix an appointment with you and take you to

the property sites short-listed by you.

• Step 5: After visiting the sites if one finalise a property, they would assist to

negotiate the best terms and price

• Step 6: They will also assis in completing the registration formalities for

acquiring your property

• Step 7: And also assist to get the best deals on home loans.

The company would not enter into property development and construction of

buildings but would take care of all the requirements of the customers including

valuation, arranging loan, and registration.

LICHFL-A one-Stop –Shop for services

Assistance in analyzing the requirements.

Selection of property at reasonable/ affordable price.( for Individual/ Group)

Completing the Transaction.

Guiding for Best Home Loan and assistance in providing loan.

Help in arranging Legal and Technical Services.

Help in Selection of Professionals/ material/ interior.

Help in taking Possession.

Help in letting out the property.

Services Offered:

Select the property of your choice.

Obtain a home loan from the lender of your choice.

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Assistance in completing the documentation and legal formalities.

Monitoring the stage of construction and advising the customer in making

installment payments.

Assistance in selection of professionals/sourcing of materials for interiors.

Possession/housewarming of the property.

Letting out the property on rent.

Research Methodology

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Research Methodology

Statement of The Problem

This Study will help us to understand the consumer’s satisfaction about LIC HFL

services and products. This study will help the company to understand, how a

consumer selects, organizes and interprets the Quality of service and product

offered by them.

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52

The market is more aware and realistic about investment and returns from

financial products. In this background this study tries to analyze the customer

satisfaction towards services in general and LICHFL in particular.

Need for The Study

The deeper the company understands of consumer’s needs and satisfaction, the

earlier the product or service is introduced ahead of competition, the greater the

expected contribution margin. Hence the study is very important.

This study will help companies to customize the service and product, according to

the consumer’s need.

This study will also help the companies to understand the experience and

expectations of the existing customers.

Scope of the Study

This study is limited to the consumers with in Lucknow city. The study will be

able to reveal the preferences, needs, satisfaction of the customers regarding the

real estate, It also help them to know whether the existing products or services

they are offering are really satisfying the customer’s needs.

Objective Of The Study

To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected service.

To produce an executive service report to upgrade service characteristics.

To understand consumer’s preferences.

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To access the degree of satisfaction of the consumers

Research Methodology

A descriptive study tries to discover answers to the questions who, what,

when, where, and, sometimes, how. The researcher attempts to describe or

define a subject, often by creating a profile of a group of problems, people,

or events.

Such studies may involve the collection of data and the creation of a

distribution of the number of times the researcher observes a single event

or characteristic (the research variable), or they may involve relating the

interaction of two or more variables. Organizations that maintain

databases of their employees, customers, and suppliers already have

significant data to conduct descriptive studies using internal information.

Yet many firms that have such data files do not mine them regularly for

the decision-making insight they might provide. This descriptive study is

popular in business research because of its versatility across disciplines. In

for-profit, not-for-profit and government organizations, descriptive

investigations have a broad appeal to the administrator and policy analyst

for planning, monitoring, and evaluating. In this context, how questions

address issues such as quantity, cost, efficiency, effectiveness, and

adequacy.

Descriptive studies may or may not have the potential for drawing

powerful inferences. A descriptive study, however, does not explain why

an event has occurred or why the variables interact the way they do.

Sample Size

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54

Sample size denotes the number of elements selected for the study. For the

present study, 100 respondents were selected at random. Out of these 100 some of

them were LIC’s Leading agents, development Officers, teachers, staff of LIC etc.

Sampling Method

A sample is a representative part of the population. In sampling technique,

information is collected only from a representative part of the universe and the

conclusions are drawn on that basis for the entire universe.

A convenience sampling technique was used to collect data from the respondents.

Method OF Data Collection

To know the response, the researcher used questionnaire method. It has

been designed as a primary research instrument. Questionnaires were

distributed to respondents and they were asked to answer the questions

given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it

is an important method of data collection. The success of the questionnaire

method in collecting the information depends largely on proper drafting.

So in the present study questions were arranged and interconnected

logically. The structured questionnaire will reduce both interviewers and

interpreters bias.

Further, coding and analysis was done for each question’s response to

reach into findings, suggestions and finally to the conclusion about the

topic.

Types of Data

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Every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through research. Research is the

systematic objective and exhaustive search for and study of facts relevant to the

problem

Research design means the framework of study that leads to the collection and

analysis of data. It is a conceptual structure with in which research is conducted. It

facilitates smooth sailing of various research operations to make the research as

effective as possible.

Primary Data

Primary data are those collected by the investigator himself for the first

time and thus they are original in character, they are collected for a

particular purpose.

A well-structured questionnaire was personally administrated to the

selected sample to collect the primary data.

Limitations of the Study

Although the study was carried out with extreme enthusiasm and careful planning

there are several limitations, which handicapped the research viz,

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are

chances that some information might have been left out, however due care is

taken to include all the relevant information needed.

2. Sample size:

Due to time constraints the sample size was relatively small and would definitely

have been more representative if I had collected information from more

respondents.

3. Accuracy:

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It is difficult to know if all the respondents gave accurate information; some

respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and

collection of data was very difficult. Therefore, the study had to be carried out

based on the availability of respondents.

The working of Property Service Division depends on the following

three steps:

1. Tie up with the builders.

2. Customer make-up

3. Documentation

Tie up with the builders:

PSD of LICHFL have tie ups with many known and unknown builders. They have a

very good relationship with Ansal –Api shushant City, DLF, Parsvanath, Viraj

Constructions, Omaxe, Eldeco.

Before tying up with the builder or a customer a memorandum of understanding is

signed between both the parties.

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Report on the construction companies

Company Name: ANSAL API

Project: Sushant Golf City

Address: Sahid Path, Sultanpur Road, Lucknow.

Details: Providing Villas, 2BHK, 3BHK, 1BHK flats

Present Condition: Construction on phase one is still going on.

Availability: Almost all the sites are sold out, presently the construction is going

on Sushant Media Enclave but there are availabilities.

Rate: Ranging between Rs 2400 per square feet to Rs 2700 per square feet

depending upon the floors.

Total Cost: About 42 lacs for a 3 BHK, 35 lacs for a 2 BHK, 30 lacs for 1BHK

For villas it starts from 52 lacs o 1 crore

Possessions: For Media Enclave, its about 4 yrs to 5 yrs and 3 yrs for celebrities

cities and others.

Analysis: Ansal city on Sahid Path is going to start soon. As per now there is not

any kind of work or development in their nearby surroundings but there are full

chances of possible development in recent years. There Media Enclave in

Sultanpur Road presently no construction work is going on but going to start

soon. There is a great chance of development in that surrounding as U.P.

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Government has proposed an I.T. Park in Gajaria Farm which is adjacent to the

sites.

Possible Demerits: Any of the phases is fully completed, only construction work

is going on in phase one and two. Railway line is going through the city. The

whole site is situated in high flood prone area due to the presence of Indira Canal

and Gomti River.

Financial Tie-ups: Their main financial tie-up is with LICHFL and they are in

great favor of LIC. They are providing 80% to 85% finance and they are giving

1% discount on the total cost to the customers.

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Company Name: ELDECO

Project: Eternia

Address: Sitapur, Lucknow-

Details: 2BHK, 3BHK, 4BHK flats

Present Condition: Construction on all the three towers is going and up to 6 th

floor it is completed.

Availability: Tower no 2 is sold out, some flats are available in tower 1 and 3

Rate: Ranging between Rs 3500 per square feet to Rs 3700 per square feet

depending upon the floors.

Total Cost: About 44 lacs for a 3 BHK, 35 lacs for a 2 BHK, 52 lacs for 4BHK

Possessions: They will give the possessions in 2 yrs to 3 yrs.

Analysis: Eldeco Eternia on sitapur road is going to start soon. Nearby

surroundings are fully developed as eternia is in city only. One of the advantage is

very near to engineering college and L.U.

Financial Tie-ups: Their main financial tie-up is with Banks Mainly SBI and

other govt. banks. They are not favoring LIC HFL or any other housing financial

company as in case if we take loan from housing finance then they will not

provide 4% discount to the customers ( they provide 4% discount if we take loan

from banks). They are providing 80% and they were ready to give 4% + approx

6% discount on the total cost to the customers.

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Company Name: ELDECO

Project: Eldeco City

Address: IIM Road, Lucknow-

Details: Duplex and simplex villas + 2bhk and 3bhk flats.

About: Eldeco city is spread over 113 Acres with a large portion dedicated to

greenery more than 1000 independent villas and 1500 apartments.

Present Condition: Construction on phase 1 is going on almost 50%

completed, work on apartments is yet to start. Construction on phase 2 will be

start in 1 year. Now they are booking for phase 1 only

Availability: All duplex are sold out, 5 simplex villas are available. Out of 165

apartments 65 are sold out.

Rate: Ranging between Rs 1700 per square feet to Rs 2200 per square feet for

villas and Rs 3100 per square feet for apartments depending upon the floors.

Total Cost: About 63 lacs to Rs 1 Crore for a duplex villas (vary as per the

location and size), approx 47 lacs to 67 lacs for a simpex villas (vary as per

location and size), 35 lacs for 2BHK and about 43 lakh for 3bhk (vary as per

floors)

Possessions: They will start their possessions from august 2012. And for

Current booking (villas) they will give the possession in 1 year. For Apartments

they will give the possessions in 2 to 3 years.

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Analysis: Eldeco City is on IIM road is going to start soon. As per now there is

not any kind of work or development in their nearby surroundings but there are

full chances of possible development in upcoming years. City is located nearby

IIM lucknow.

Possible Demerits: There major drawback is that site is located very far from

city.

Financial Tie-ups: Their main financial tie-up is with Banks Mainly SBI and

other govt banks. They are not favoring LIC HFL or any other housing financial

company as in case if we take loan from housing finance then they will not

provide 4% discount to the customers ( they provide 4% discount if we take loan

from banks). They are providing 80% and they were ready to give 4% + approx

6% discount on the total cost to the customers.

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Company Name: OMAXE Ltd.

Project: Omaxe Residency Lucknow

Address: Gomti Nagar Extension , Shaheed Path

Details: Providing 2BHK,2BHK+ Servant room and 3BHK,

Present Condition: Construction is still going on and may be complete in the

one year.

Availability: Many flats are sold out only few are remaining .flats are also

available in resale

Rate: Rs 2400 per square feet .

Total Cost: About 26 lacs for 2 BHK, 28 lacs for a 2 BHK + Servant room, 33

lacs for 3BHK ( These are cost if we are purchasing on Cash down Payment) . In

case of Installment Plan Cost will be 6% more.

Possessions: Possession time 18 months to 36 months.

Analysis: Omaxe residency is on Sahid Path, gomti nagar extension is going to

start soon. As per now there is not any kind of work or development in their

nearby surroundings but there are full chances of possible development in recent

years. Presently a small village is adjacent to the site.

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Possible Demerits The whole site is situated in high flood prone area due to the

presence of Indira Canal and Gomti River.

Financial Tie-ups: Their main financial tie-up is with all the Banks and housing

finance companies. They are providing 80%. They are giving 2% discount on the

total cost to the customers. Discount may be more in further stage.

Company Name: RG Infracity (p) ltd.

Project: RG EUPHORIA LICKNOW.

Address: Vrindavan Youjna , Shaheed Path

Details: Providing 2BHK, 3BHK and 4BHK,

Present Condition: No construction work is going on. Only land is there.

Availability: Few are sold out . Many flats are remaining.

Rate: Rs 2500 per sqft .

Total Cost: About 24 lacs to 27 lakh for 2 BHK, 32 lacs to 35 lacs for a 3 BHK,

44 lacs to 47 lacs for 4BHK ( These are cost if we are purchasing on Cash down

Payment) . In case of Installment Plan Cost will be 10% more.

Possessions: Possession time 36 months.

Analysis: Euphoria is on Sahid Path, Vrindavan youjna of awas vikash. No

construction work is started till now. As per now there development in their

nearby surroundings and there are more chances of possible development in

recent years because of nearness of airport and Kanpur road.

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64

Financial Tie-ups: Their main financial tie-up is with all the Banks and housing

finance companies. They are providing 80%. They are not providing any type of

discount.

Company Name: DLF India Ltd.

Project: Garden city, Lucknow

Address: Raibarelly road , purseni , Lucknow.

Details: Providing plots, Apartment work will start in one year.

Present Condition: Construction is going on in building infrastructure like

roads etc.

Availability: plots are sold out in phase A and B only few plots are remaining in

phase C and D .

Rate: Rs 1500 per square feet .

Total Cost: Its Started From 44 lakh to 1.5 crore.

Possessions: Possession 24 months.

Analysis: Garden City is on Raibareely road, Purseni lucknow is going to start

soon. As per now there is not any kind of work or development in their nearby

surroundings but there are full chances of possible development in recent years as

that road is going to convert in 4 lane. Sgpgi is 5 k.m away from the site.

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65

Financial Tie-ups: Their main financial tie-up is with all the Banks and housing

finance companies. They are providing 80%. They are giving discount on the total

cost to the customers in case of cash down payment.

Company Name: SAS group

Project: Shalimar dwelling

Address: A.P sen road

Details: 2BHK, 3BHK, 4BHK flats

Present Condition: Construction is still going on.

Availability: They didn’t told us about the availability as they said they will tell

once you will go for booking.

Rate: Rs 5500 per square feet it changes from time to time

Total Cost: About 67 lacs for a 2 BHK and they had flat till 1.35 crore.

Possessions: Possessions will be start from December 2014.

Analysis: Shalimar dwelling going to start soon. The Site is on very good

developed area. Construction work is also going in a very fast pace. Provding

good facilities also.

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Financial Tie-ups: Their main financial tie-up is with Hdfc , ICICI and the other

private and govt. banks. They are not in favor of LIC HFl.

Company Name: SAS group

Project: Shalimar Gallant

Address: near Saroj nursing home, Kapurthala

Details: 2BHK, 3BHK, 4BHK flats

Present Condition: Construction is still going on.

Availability: They didn’t told us about the availability as they said they will tell

once you will go for booking.

Rate: Rs 6000 per square feet it changes from time to time

Total Cost: About 72 lacs for a 2 BHK and they had flat till 1.5 crore.

Possessions: Possessions will be start from December 2015.

Analysis: Shalimar Gallant going to start soon. The Site is on very good

developed area. Construction work is also going in a very fast pace. Provding

good facilities also.

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Financial Tie-ups: Their main financial tie-up is with Hdfc , ICCIC and the

other private and govt. banks. They are not in favor of LIC HFl.

Company Name: SAS group

Project: Shalimar Grand

Address: JOPLING ROAD

Details: 2BHK, 3BHK, 4BHK flats

Present Condition: Construction is still going on.

Availability: They didn’t told us about the availability as they said they will tell

once you will go for booking.

Rate: Rs 7000 per square feet it changes from time to time

Total Cost: About 85 lass for a 2 BHK and they had flat till 2 crore.

Possessions: Possessions will be start from December 2013.

Analysis: Shalimar Grand is going to start soon. The Site is on very good

developed area as it is near by hazartaganj and in the heart of city. Construction

work is also going in a very fast pace. Provding good facilities also.

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Financial Tie-ups: Their main financial tie-up is with Hdfc , ICCIC and the

other private and govt. banks. They are not in favor of LIC HFl.

Company Name: Rohtas

Project: Rohtas Plumeria

Address : Shaheed path , vibhuti khand, gomti nagar

Details: 2BHK, 3BHK, 4BHK flats

Present Condition: Construction is going on all the 18 blocks.

Availability: Many flats are sold out .only few flats are available on 4 towers.

Rate: Rs 3650 per square feet it changes from time to time

Total Cost: About 46.5 lacs for a 2 BHK and they had flat till 85 lakh for 4 bhk.

Possessions: Possessions will be start from December 2014.

Analysis: Shalimar dwelling going to start soon. The Site is on very good

developed area. Construction work is also going in a very fast pace. They are

Providing good facilities also.

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Financial Tie-ups: Their main financial tie-up is with all the banks. At present

they are not in any contact with lic

Company Name: Lakshya Realinfra Pvt. Ltd

Project: Lakshya Heights

Address : Shaheed path , Sushant golf city

Details: 2BHK, 3BHK, And in both there is option of servant room.

Present Condition: Construction is going on.

Availability: Availability is 50-50.

Rate: Rs 2450 per square feet it changes from time to time

Total Cost: About 25 lacs to 35 lacs .

Possessions: Possessions will be start within 36 months.

Analysis:. : Lakshya Heights on Sahid Path is going to start soon. There site is in

Ansal city. As per now there is not any kind of work or development in their

nearby surroundings but there are full chances of possible development in recent

years. The site is also open from sultanpur road. As per our analysis there was no

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coordination between their staff as they don’t know about many major things of

their project.

Financial Tie-ups: Their main financial tie-up is with all the banks. They are

ready to give 80% finance. They are also giving 2% discount to us.

Customer Making:

For attracting more customers LICHFL (PSD) conducts surveys and organizes a

database of their customers. So that they can update their customers about the new

upcoming projects.

Example of Data:

Pradeep kr. Verma 9919890606L.M.Pandey 9415218800Ajay Kr. Srivastava 9415209744Ashok Gupta 9450939994B. M. Dwivedi 9451175847Mahesh kr. Gupta 9452421799Dr. Rakesh Mishra 9450934899A. K. Gupta 9450909737D. P. Sharma 9503000281Rajendra Srivastava 9956395764Gauresh R. Kotian 9415015467J. K. Pandey 9860094412Dr. Suman Srivastava 9415109216

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G. P. Shukla 9454378530Rakesh Krishna 9415102888Dinesh Kr. Gupta 9305592101Dr. Shukla 9415048880Dr. V. N. Sharma 9415037181Dr. Arun Gupta 9415915468Dr. Jalote 9839061746Dr. kauhari Ashok 9412136580R. K. Shubhash 9984447496Alakhniranjan 9415015468N. K. Setty 9450939980Anil Khugshal 9307510246Sharad prashant 9335715383Ajay Tiwari 9369638613Pankaj Gupta 9935781000Sarvesh Gupta 9415028174N.K. Lahiry 9415014280Ajit Pratap singh 9335736749Neeraj Gupta 9415799147O. P. Singh 9415396586Puneet gupta 9450909416A. K. Srivastava 9454364886Anil Agnihotri 9451178040D. C. Soni 9415221932Rajesh Saxena 9450023104Deepali mishra 9956922488H. K. Tiwari 9415309507I. P. Singh 9335054807Jabar Singh 9450410859Jaipal Singh 9532653430K. D. Prasad 9336223490K. K. Pandey 9452904161Virendra kumar 9452528485Rakesh Shukkla 9532968725Shubhash 9415752882Rajesh Saxena 9450023104Sri Madan Babu 9455813322Manoj kr. Singh 9415542421Naresh Nigam 9415495089R. K. Mishra 9839083789R. K. Singh 9838169950

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R. B. Gupta 9935508867Harvinder Singh 9918873231Ajai Kr. Verma 9793169822Sri Ramkrishan 9415500204V.K. Wadhawan 9956846214S. K. Pandey 9415838229S. K. Dwivedi 9451383096V. C. Pant 9415196742V. K. Bajpai 9450343972V. K. Singh 9450367847R. Gandhi 9948578991Ritesh Kumar 9453004936S. R. Dwivedi 9336593531Sanjeev Gupta 9336217293Sri Hari Mohan 9369143688P. K. Srivastava 9935411628Ravinder Singh 9450857565Rajesh Singh 9450392047Arun Goyal 9044229044Hemant Kumar 9793325859Samir Rustagi 9450917801Sri Satyavrat 9415001676Rakesh Mishra 9415794830Mr. Pathak 9935045122Sandeep Shukla 9919355766Mr. Pankaj 9616600921

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Data Analysis

And

Interpretation

Questionaire for Survey

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1. What is your age?

a. 25-35 b. 35-50 c. 50-60 d. above 60

2. What is your occupation?

a. Service Class b. Businessman c. Professional

3. What is your Annual Income?

a. Below 2 lac b. 2 -5 Lac c.5-10 lac d. Above 10 Lac

4. Do you have your own property?

a. Yes b. No

5. Are you interested in buying a property in near future?

a. Yes b. No c. Can’t say

5(a) If Yes Which type of property you interested?

1. Residential 2. Commercial 3. Other

6. If interested, the main purpose of buying the property is-

a. For self purpose b. For investment

c. Others ___________________

7. You are interested in buying……

a. Independent House b. Flat (Group Housing)

8. What is your budget for the investment?

Around ………………

9. Are you interested in taking loan from any financing agency if Yes pl Specify the amt ?

a. Yes Amt _______ b. No. c. Cant say.

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10. If yes, which can be your preferred option for financing your project?

1 SBI 2. HDFC 3. LIC HFL 4. ICICI Bank 5. Axis Bank

6. PNB HFL 7. Canara Bank 8. Allahabad Bank 10. DHFL

11. Pl Specify the location in which you are interested for buying property?

_______________________

Name:

Phone No:

Email Address:

Table 1:

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Age Group Percentage

25-35 45

35-50 35

50-60 15

Above 60 5

Total 100

45

35

155

Age Group

25-3535-5050-60Above 60

Analysis:

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It was found that about 45% of people were between age group of 25-35, 35% were

between 35-50, 15% were between 50-60 and 5% were above 60.

Interpretation:

Thus we conclude that the percentages of people in the above age groups showed

interest in the survey of LIC HFL.

Table 2:

Occupation Percentage

Service Class 65

Businessmen 20

Professional 15

Total 100

65

20

15

Occupation

Service ClassBusinessmenProfessional

Analysis:

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Service Class were found to be 65% which is the highest. Then comes the

Businessmen class which is 20% and then Professionals were found to be only 15%.

Interpretation:

The results shows that the survey included most of the Service class and thn

businessmen and then professionals.

Table 3:

Annual Income Percentage

Below 2 lacs 2%

2-5 lacs 30%

5-10 lacs 65%

Above 10 lacs 3%

Total 100%

Below 2 lacs 2-5 lacs 5-10 lacs Above 10 lacs

0%

20%

40%

60%

80%

Annual Income

Percentage

Analysis:

It was found that 2% of candidates came below 2 lacs. 30% came under 2-5 lacs. 5-10

lacs included 65% of candidates. While only 3% were above 10 lacs.

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Interpretation:

Maximum strength was found between 5-10 lacs.

Table 4:

Possess Property Percentage

Yes 67%

No 33%

Total 100%

33%

Own property

Yes No

Analysis:

67% of candidates possess their own property and 33% of candidates had no property.

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Interpretation:

This shows that out of 100 respondents 67% had their own property while 33% had no

property. 67% were not willing to invest or buy any property.

Table 5(a):

If yes, the type of property-

Type of Property Percentage %

Residential 78

Commercial 18

Others 4

Total 100

78

184

Type of Property

ResidentialCommercialOthers

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Analysis:

It was found that 78% of the candidates preferred residential property. 18%

wanted Commercial while only 4% of the respondents wanted other than

residential and commercial property.

Interpretation:

Thus, it can be concluded that 78% of the respondents wants to invest in the

property for living purpose. While 18% wants to derive their business with the help of

that property.

Table 6:

Purpose of Buying Percentage %Self 78Investment 18Others 4Total 100

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82

78

184

Percentage %

SelfInvestmentOthers

Analysis:

About 78% of the respondents want the property for self purpose. 18% of them want it for investment purpose and the remaining 4 % have some other purpose.

Interpretation:

It can thus be concluded that major respondents wants the property for self living purpose.

Table 7:

Type of House PercentageIndependent House 79

Flats(Froup Housing) 21Total 100

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79

21

Percentage

Independent HouseFlats(Froup Housing)

Analysis:

79% respondents preferred Independent House while 21% respondents preferred Flats.

Interpretation:

Major respondents wanted an independent house. They preferred bunglow houses instead of flats. This shows that they are more comfortable with open area than group housing.

Table 8:

Budget Percentage10-30 6931-50 21

Above 50 10Total 100

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69

21

10

Budget

0-3031-50Above 50

Analysis:

69% have budget more than 50 lacs. 21% have between 31-50 and 10% have between 0-30 lacs.

Interpretation:

Thus, it can be said that major respondents do not want to invest much to buy a property. As majority of the respondents are of middle class society. While there are some respondents who belong to high class society thus can invest above 50 lacs.

Table 9:

Home Loan PercentageYes 79No 11

Can’t Say 10

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Total 100

79

11 10

Percentage

YesNoCan’t Say

Analysis:

79% of respondents preferred home loan while 11% did not prefer loans. There were 10% of respondents who could not decide whether to take or not.

Interpretation:

Major respondents wanted to buy a property over loan basis as mostly respondents are service men. Those who did not prefer loan were businessmen.

Table 10:

Preferred Option PercentageSBI 32

HDFC 16LICHFL 12

ICICI 10AXIS 8

PNBHFL 9CANARA 3

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ALLAHABAD Bank 6DHFL 4Total 100

32

161210

8

93 6

4SBIHDFCLICHFLICICIAXISPNBHFLCANARAALLAHABAD BankDHFL

Analysis:

32% respondents preferred SBI. 16% preferred HDFC. 12% preferred LICHFL. 10% preferred

ICICI. 8% preferred Axis. 9% preferred PNBHFL. 3% preferred Canara Bank. 6% preferred Allahabad Bank. 4% preferred DHFL.

Interpretation:

Maximum proportion of respondents preferred to opt for SBI. This shows that most of them have faith in SBI. Next preference is is HDFC and then ICICI.

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Recommendations

&

Suggestions

Recommendation and Suggestion

There should be