A RESEARCH REPORT ON PROPERTY INVESTMENT: NEEDS, LONG TERM INVESTMENT, SOCIAL STATUS IN KOLKATA SUBMITTED BY NEENA SINHA MMA-4TH

SEM [Link]-19405110008 REGISTRATION NO- 101942710005 SUBMITTED TO [Link] DAS FOR

THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MMA (2010-2012) UNDER WEST BENGAL UNIVERSITY OF TECNOLOGY AT INSTITUTE OF MANAGEMENT STUDY May 2012
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DECLARATION
I hereby declare that the research report entitled Property Investment: needs, long term investment, social status Submitted to Institute of Management Study, Kolkata As Research Report in partial fulfillment for the requirement of the degree of Master in Management Administration. This is the original work done by me & not submitted for the award of any other degree, diploma, fellowship or any other similar title. This work has not been undertaken or submitted elsewhere in connection with any other academic course.

Project Guides
Prof. Surajit Das Prof. Aparajita Roy Submitted ByNEENA SINHA [Link]:- 19405110008 [Link]:- 101942710005 MMA- 4TH SEM PLACE: - KOLKATA

ACKNOWLEDGEMENT
On the successful completion of this Research I would like to express my gratitude to everybody who assisted & guided me in completing this Research & making my work memorable & successful one. I express my sincere gratitude to Prof. Surajit Das. He is my research guide who has rendered me this Research report with his valuable advice, kind assistance at every step, inspiration to work hard & helping me in accomplishing this Research successfully. I would like to express my thanks to [Link] Roy (Senior Faculty Member) & my faculties who give their valuable support to initiate this Research. At last, I would like to thanks Dr. Tapas Ranjan Saha, Director of IMS, KOLKATA for giving me the opportunity to study this course & go for this successful Research.

EXECUTIVE SUMMARY
Research on property investment as needs, social status & the long term income, define the importance of property in todays globalization environment. Invest in property is the great way to grow our wealth if do it correctly & responsibly with conservative financing & an understanding of the tax implication. The activity of property investing is different & complicated respective of stock & bond. There is lack of proper market & guidance for the property investor. The choice of property for investment as because its specific features like, diversification, high risk adjusted returns, inflation adjusted returns & low volatility. The changes in market scenario have made the valuation of property a difficult task. For estimating the market value of the property three approaches are used; cost approach, comparison of sales approach, & income approach. Institutional investors like pension funds are showing interest in property investments because they perceive such investment as means of diversification. They make a serious attempt to analyze the property markets & structure the deals in a different way. They use modern portfolio theory for valuing the property or make an attempt to securitize the same so that it can be traded like stocks & bonds. There are many factors which influence property like; interest rate, vastu shastra, demand & supply, etc.

TABLE OF CONTENTS
Chapter 1:- Introduction Chapter 2:- Literature Review Chapter 3:- Objective Of the Research Chapter 4:- Research Methodology Chapter 5:- Limitation Chapter 6:- Data Analysis & Interpretation Table Figure Interpretations Factor Analysis Chapter 7:- Observation & Finding Chapter 8:- Scope of further research Chapter 9:- Conclusion Chapter 10:- Reference Chapter 11:- Annexture

1. INTRODUCTION
For most individual, property investment would probably mean buying residential or commercial property. Buying plots of l& or houses ensures the security of the investment. Investing in property has become increasingly popular over the last fifty years & has become a common investment vehicle. Days are gone when people used to deal property matters on the basis of "mouth to mouth publicity" or nearby dealers. Globalization & fast lifestyle has encouraged the real estate industry to step in E-World. These days, majority of the investors are doing property investment to safeguard their forthcoming return & make it more robust so that it can withstand the bad phases & produce a regular cash flow with long term capital appreciation. Those who invest in property also expect to generate capital gains as property value increase over time. Property cannot be displaced & hence is usually considered as indestructible. While considering an investment in a property, the investor looks into some parameters like; location, design, potential for appreciation in value, etc. Location is more important than any other parameter because it determines the value of a property the most. The property market has plenty of opportunities for making big gains, buying & owning property is a more complicated than investing in stock & bonds.

1.1 property investment in India

There is no need to turn abroad if we wish to own luxurious mansion with those lush green lawns. Indian real estate industry has taken long strides to be in a position where it offers us a wide range of properties at most affordable prices, with rapid pace urbanization, new colonies & societies are springing up with lavish apartments & flats to accommodate all our requirements. Buying properties in India is one of the best ways to invest our hard earned money. The Indian property industry is thriving & experts predict that there are great chances of huge returns for the investors in the property sector. Massive migration from rural areas has
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generated huge demands for quick accommodation in the cities. This has certainly encouraged the property dealers & builders to come up with numerous development projects. The spiraling competition in the property sector thus offers us with some of the finest properties & that too at reasonable prices. If we are looking for a property in India, it is advisable to explore all the possible options available. One of the best methods to collect information about properties in India is the online websites & portals. Conduct a thorough research on the internet about the different properties available. This will provide us a fair idea of the prices & the various amenities that we can avail at different localities. If we have no knowledge of the property, we should take expert opinion regarding its merits and demerits before entering into a final deal. Buying properties in India is a long term investment that guarantees profitable returns.

1.2 property investment in Kolkata

Kolkata, the capital of West Bengal and an essence of rich culture and creativity is one of the India's largest city & finest examples of cosmopolitan atmosphere. It's an emerging new age city which is gradually carving a place for itself in all respect. In the 70s and 80s, we probably would not recognize the glitzy commercial and residential buildings dotting the skyline today. The initiative of lopers in Kolkata has infused the once-jaded look of the city with swank residential apartments and commercial spaces with a bold message that 'Kolkata has truly arrived. Kolkata welcomes everyone with open arms and this unique city serves as a platform where past and present smoothly coexists. Therefore as an investment perspective, Kolkata shows great promise as India has emerged as an across the board low cost base which makes it attractive enough for Non-Resident Indians (NRIs) and multinationals to relocate in the country. Moreover, the state government is open to 100% foreign investment in property. The state's urban development ministry has fixed a minimum area of 10 acres for developing housing plots, while 50, 000 square meters has been fixed for minimum built up area in construction development projects.

The Kolkata West International City across the River Hooghly in Howrah, the first venture funded by foreign capital, is spread over 390 acres that will offer 5500 bungalows on free hold land by 2009. With the best lifestyle accessories to boot, the township is a zip drive from the business district. South City promises to be a landmark edifice as the Emami, Sureka, Shrachi, and Merlin Group of companies have come together for 3 residential-commercial projects on Prince Anwar Shah Road, [Link] Road, and Alipore. Standing 35 storeys tall, South City will also house the city's largest mall and an international school. The city is stretching its limits towards Dankuni with another multi-use township on 5000 acres available for development. National and international bidders are in the fray for this coveted project. On the commercial property front, 13.3 million square feet will be available in Sector V, Salt Lake and Rajarhat, the city's IT hub. Retail spaces are also expected to grow to 1.5 million sq. ft of space - from 3 malls to 12 in the next few years, international brands will make their presence felt in the city, as incomes rise and lifestyles get more 'stylized'. Two property projects in the 7-star category were launched in early 2007 to meet the aspiration for global brands amongst the elite of the city. Jones Lang LaSalle, the world's largest integrated real estate and investment management firm, finds Kolkata an attractive business destination, and worthy of figuring on the company's list of 'emerging winners'. Inexpensive rentals, a successful private-public partnership model, incentives from the state government, political stability, a fair playing field for all real estate developers are factors very strongly in Kolkata's favor. In fact the West Bengal government's initiative in tying up with private builders has facilitated opening up vast stretches of land which the existing urban land ceiling laws would never have made possible. The West Bengal government has created a cross-subsidy model for real estate developers in Kolkata, allowing them to make profits on high income housing provided middle income groups are sold flats at a no-profit, no-loss basis, and to the lower income groups at a lower than cost price.

The IT sector is growing at twice the national rate at 70% in Kolkata. The demand for 6 lakh [Link] of commercial space has been expressed by foreign investors, MNCs and banks in the city. In fact, of all the foreign investors looking for investment opportunities in India, 40% of these are focusing on Kolkata. Experts are of the view that ready commercial spaces available at short notice would make Kolkata a more attractive destination for major corporations which are now looking for facilities in the city.

1.3 Buying a property in India : A dream come true for NRIs

Buying a home in India is one of the ways to feel connected to the native l& for the Non-Resident Indians (NRI). Possessing a home in any corner of the world is a way to secure the financial status & the future in the scenario of global recession & uncertainty of the financial position. The rules for buying, making transaction, for the grant of the loan & its repayment, everything is governed by the regulations of Reserve Bank of India (RBI) & the Foreign Exchange Management Act (FEMA). Those NRIs who are looking forward to purchase a dream house in India first need to know in detail about the property scenario at the time of purchasing & the procedures for buying the property. Some of rule & regulation while purchasing property in India for NRIs are:

NRIs are free to buy any property in India other than the agricultural l& & plantation property.

The payment for the properties can be done either from the funds held in the non-resident accounts or that which are received by internal remittance. It is to be noted that travelers cheque & foreign currency notes are not accepted for property transactions.

Loan facility is available to the NRIs for the purchase of the property & also for the renovation. The rules for the loan are as per the regulations of FEMA (Foreign Exchange Management Act). The basic rule is that the banks can not

renew the existing loan or grant a fresh loan when the loan amount exceeds the number of 1 crore against NRE & FCNR deposits.

The loan can be repaid through normal banking channel, rental income from the purchased property, cheque from the bank account of the local relatives & also by making debit to the account of NRE/ FCNR/ NRO. Those who have detailed knowledge of the property scenario in India are less likely to commit mistake at the time of purchasing a home here. It is better to take the advice of the professionals & experts in this field before finally making any decision.

1.4 property investments are the needs:Some year back people live in one home as a joint family with number of member. Their income was not too much so that they couldnt bought another home for live. But todays scenario is different. Now a person income is increase according to his work potentiality. Both husband & wife are working for earning more money to make life comfortable & luxurious. So it becomes a necessity for a family to purchase multiple flats/houses. Most of us when go home tired from all day work, just want to relax & do our stuffs easily & conveniently. In this fast paced world of urbanization, most of the families are drawn towards luxury homes as these have all the facilities that will not only make our work easier, but also increase our comfort level & refresh our mood.

1.5 property investments are the long term investment:People also like to invest money in a property because it became his lifelong asset. Many persons spend whole life during their job in a rental home but after the retirement he purchases a house from his all savings thereby he saves the monthly rental & also can gift asset to his next generation. Some people purchase house on loan during their job & gradually pays back the loan as forceful savings. As we know that property value increases over time so the property which the investor purchases
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become a safeguard if any sudden requirement of cash is there like; children education & marriage, medical [Link]. If investors purchase a property & rent it as residential & commercial purpose, it also becomes a source of steady income.

1.6 property investment is the social status:Today the properties become a sign of a status. If a person purchases a house in a posh area like; Park Street, Salt Lake, New Alipore. It shows that the person have a good job & high income. In the marriage of their children also property shows the standard of living & status. In admission of children to a recognized school it should be beneficial if parents belong to a good locality. The person who has more property automatically gains social recognition in his locality.

1.7 Various feature of a luxury homes

today most of the person think of a house near a beach or any other exotic location, most of these luxury homes are made in beautiful locations with best schools, golf courses, parks, lawns, shopping malls & other amenities nearby. These facilities add to the appeal of these luxury homes. Many property builders come up with some new projects in with additional facilities of oversized garage & parking space, workout stations or gyms, swimming pools or a sauna as well as lounge & mini bar counters. These homes are filled with modern facilities. It is hard to resist the beauty of these luxury homes with abundant space & appliances & unmatched amenities. They showcase latest modular kitchens with all the modern appliances as well as luxury bathrooms with whirlpools & Jacuzzi tubs, & customized showers in various shapes, styles & colors add to the comfort level & beauty of these luxury homes. Earlier buyers had to look outside Indian market for the luxury products like, Singapore style apartment but now these products are easily available. Many high end investors & consumers are looking for these luxury items & products as luxury becomes a necessity for urban families. Price of these luxury & ultra luxury homes ranges from 1 crore to 1.5 crore or more depending on their location & facilities available. But then too demand of these luxury houses is increasing day by day especially in metros like Delhi, Bangalore, Mumbai, Kolkata, Gurgaon & Chennai.
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Most of the businessmen, celebrities look for these luxury houses because of their various features & thus these luxury homes are high in demand.

1.8 How Vastu Shastra related with property

We must have heard of Vastu Shastra & many of us must be thinking of applying it to our homes, buildings or offices. Vastu Shastra is a science of construction or architecture used since ancient time & is based on traditional & archaic view of law of nature & how it affects human dwellings. According to theory of vastu shastra, world comprises of five basic elements i.e. earth, water, air, fire & space & it is very essential to maintain proper balance between these elements. These elements heavily influence human lives & thus one must take care & understand effectiveness of these elements while constructing a building or a house. We must be thinking of buying a plot for our dream home or office but after we buy a plot, we must follow some Vastu Tips for best results like for good health, wealth, prosperity & contentment.

1.9 The role of property portfolio in a diversified portfolio

The investment market for property should always be seen as a supporting tool for the general investing market. The application of funds to property investment should be viewed as a competition for other markets. The decision to invest in any specific area will be a sort of comparison of return & security & hence the knowledge of other alternative investment opportunities. With the help of financial technique, property investment can be better utilized. The other important point relates to the nature of the lender & the kind of finance applicable to it. Financial agreement can be possible between an individual purchasing a single property financed by a single lender. However, property agreements are usually very complex & consist of several parties. The property investment is generally made by big corporate who want to make profit from the property investment. They use their property as collateral deal to get loans, which may also include a property investment. It is vital to recognize the importance of the property investment in any economy. This importance can be found out in three ways namely, as a factor of production, as a corporate asset & as
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an investment vehicle. Property investment provides a space for production & economic activity. In this manner it will be regarded as a factor of production. In the form of corporate assets, property takes a large chunk of assets value in a companys balance sheet & huge amount of corporate debts are secured against these investment values. As a investment vehicle, property investment forms a huge part of non- traditional investment held by most of the firms. Property investment is quite capable of producing income or capital growth either during or at the end of the life of the assets. Investors either construct or invest in buildings & thereafter rent them. Property investments help to compare traditional assets like stocks, debts & other securities. Such a comparison is also helpful but the method of valuation in the two media is basically different. The art of property valuation is to provide an assessment of capital value or the revenue coming from the investment. Ironically possible investment avenues are numerous but the basic goal of any investor is to find out whether the investment is giving him a continuous source of income, capital appreciation or both. The fluctuations in the property value are also comparatively less than in investments in the stock market.

1.10 Role of financial institutions in property investment

Institutional investment in property comes mainly from the pension fund & insurance companies. Since the characteristics & the risk of the property investments are unique & transactions are normally quite large, individual investors are not interested in big deals. More importantly, collective investing is more tax effective. Pension fund are important investors in the famous markets. They generally invest in the property market to make their asset liability management strong enough to withstand any wild fluctuation in other assets. this is possible because property investment is regarded as a good tool to diversify the unsystematic risk, since its correlation with other asset classes are quite low & it always shows low volatility of return. Apart from insurance & pension funds, the other main investors are unit trust funds & investment trusts. In addition to these institutions, there are also other traditional institutions like the church, the local authorities & sometimes governments. Because of different risk/return characteristics, possibility of liability
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matching & inflation hedging, institutional investors invest in the property. The financial institutions were the biggest investors in developed properties in the late 1970s & early 1980s. The traditional approach to development finance adopted by these institutions was to obtain short-term finance to complete a particular structure & then arrange a buyout by an institutional investor. But recently the dominance of the institutional investors has declined. The main funding source in the property structures has come from big banks, property companies & overseas investors. Moreover, the decline in the property investment has been equally matched by the increased growth of the indirect investment in property companies through a bank advance. The overall institutional investment in the property market has been declining in recent years. The basic problems faced by institutional investors are as follows:1) Illiquidity:- A lot of time is consumed in selling & buying the property & this becomes more difficult when rates are falling. 2) High amount of transaction charges:- The cost of the transaction in property market is very high. This is because selling one building & purchasing another costs at least four percent of the amount reinvested & these cost includes agents commission, legal fees, & stamp duty. 3) Low return:- There is the lower amount of the return produced by the property market respective of other investment markets. 4) Less secure leases:- Generally it was found that tenants are not comfortable to enter into long term lease agreement. However, in overpopulated countries like India, tenants desire long term leases so that they can pay less rent.

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1.11 Property investment is the long run expected inflation

Property investment returns behave differently at different times & sometimes even erratically owing to the long run expected inflation factor. If the escalation terms have been mentioned in the deal & are favorable to the owners, then it is possible that the extra increase can be passed on to the tenants & other parties after an appropriate lag of time. The property discount rates are functions of the bond yields & risk premiums. These rates increase as long as inflation rates follow their historical pattern. For a lease contract of maturity period of 3 to 10 years, the interval in the medication of the base rents depends on the negative relation of prolonged expected inflation & realized property returns. However, the theoretical studies suggest a positive relationship between nominal property returns & long term expected inflation returns. This theoretical concept should be carefully used after proper understanding of the relevant lease characters in the property & unavailability of the series of data in inflationary periods. The influence of inflation on the value of property is more pronounced in the case of emerging markets. When low inflation rates are accompanied in the interest rates, the capitalization tends to be lower. The cash flows & residual values rise gradually. Because of this, low internal rate of return will be accepted. In periods of higher inflation rates, cash flows & terminal values increase more rapidly. The cash flows related to property ownership in response to inflation is more predictable than that with the ownership of any other asset. This is because with rising inflation the property appreciates in more than the appreciation that occurs with any other type of asset. Thus the property is said to be more stable in value.

1.12 property investments is the strength of the economy

Apart from stock & bonds, property investment reacts differently to the changes in the economic environment. To estimate the property sensitivity of the changes in the economic cycle, two uncorrelated factors, monthly industrial production & per capita consumption growth, should be used. The consumption growth is positively related to the stocks return but its sensitivity to the bond is negative. Whenever the
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economic activity rises, the economy moves towards greater capacity utilization & therefore puts extra upward pressure on prices, salaries & interest rates. In spite of great benefits attached to a rising economy, an overheated economy is not preferable. The reason is that it enhances the chance of default risks & interest rate risks for the creditors. The effect of economic condition on property equity is not very clear. Rising industrial production ensures decline in property. There is no specific relationship between property returns & the macroeconomic factors. The commonality between factors is that all are of a systematic kind & cannot be hedge when entire assets are devoted to the property. The peculiarity of risk & return characteristics of property investment make it an attractive asset in a portfolio containing common stocks & bonds. This happens because it reacts differently to these risk factors compared to the stocks & bond. The miserable state of the property Sector in the year 2011 can be attributed to the following factors:

As the interest rate kept increasing all the years round, the buyers never felt motivated to invest money on properties. RBI took had to take the step of increasing the interest rates to put a control on the rising inflation.

Rising inflation wavered the budget of the people & left them panting while fulfilling the basic needs, what to think about investing the disposal income on property.

Recession & debt crisis a common global scenario, has affected the stability & confidence of people employed in the corporate world. The situation of uncertainty & instability has tied the hands of people from investing much & they are relying more on savings.

The price surge of the property is further adding to the non-interested approach of the buyers. Property prices getting almost doubled over the years & the non-compromising approach of the builders have made the rising graph of the profit in the real estate sector a far-fetched dream.

1.13 Classification of property

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Property is classified into four types: Developed property Undeveloped property Income property Speculative property Developed property:- It is a combination of land with some structure on it. Investors are generally interested in developed land because of its income producing characteristics & some kind of tax advantage that comes from the continuous depreciation of buildings. Big apartments, shopping complexes & office building are good example of developed property. Most of the property investment partnerships invest heavily in developed property. Undeveloped property:- Raw land without any development is referred to as undeveloped property. The investment in undeveloped property can be understood by scrutinizing the various motives of different kinds of investors. These include absolute speculation, timber production, crop production, or livestock production & sometimes preparation of small plots for resale to a prospective buyer. The basic motive behind investing in undeveloped property stems from the expectations that in the near future its value may increase dramatically. For example, a property investor investing in coastal land is purely speculating on the rise of value of the land in the future. Income property:- It refers to the residential & commercial properties primarily developed for rental purpose. These properties are affected by several kinds of risk & return behavior. For example, risk can arise due to the negligence of the tenant, heavy competition in the rental market or inefficient management. However, they are capable of producing a continuous stream of cash flows on a regular basis. At the same time, investors can expect fairly good appreciation in the value of the portfolio & in some cases chances of tax shelter.

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Speculative property:- It contains raw land & prospective investment avenues that are expected to fetch good returns in due course of time. These properties are speculative in nature & provide their owners a chance to generate money at an extra pace. However, in some case, expectations do not materialize & the investor may face situations of losing the return or appreciation in the speculative property. For example, if people expect a big builder to construct a new multi-stored building in the heart of the town, investors of speculative property will start buying & prices may go up. But people who buy these building late & fail to sell before the market reverts might lose a substantial part of their initial investment.

1.14 Analysis of important features of property

Before purchasing a property an investor must get the knowledge of the following:1) Physical property:- Investor should think about the quality & quantity of the property. Certain problem may crop up if the investor is unable to receive the information correctly. So the investor should ensure that when they are signing document correctly identify the actual property. 2) Property Rights:- Buying a property is almost equivalent to buying a bunch of legal rights which give the investor certain rights against a particular tangible object property rights should always be transferred in the real name of the true investors. 3) Time horizon:- The property prices are generally found to be quite fluctuating over the time. It is very difficult to predict the actual movement of these investments. Sometimes the market pushes the prices up & sometime it pulls it down. In some cases the fall in the price is so fast that the investors do not get any time to liquidate their holdings. 4) Geographic Area:- The value of the property investment is directly related to its presence in a particular demographic area & its surroundings. Any investor has to decide the particular area where he/she would like to buy his/her property. The investors are free to choose a specific area where they want to build up their investment base.

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1.15 Lack of information & proper market of property

There is a lack of information available about the price of the property, so high price is to be paid to obtain useful information. Buyers, sellers, lenders & others are ready to pay as much to the intermediary who provides relevant information about the property market. The buyers who have access to more information tend to be benefited more. In an efficient market, additional returns cannot be obtained by trying to derive more information from the existing reports. But since the property market is inefficient, additional returns are possible. Because of this advantage, more investors besides institutional investors are exploring the property market. Many analysts take advantage of the lack of efficiency in the market & sell information. The developers in the property markets adopt strategies like securitization to make available more property investments. These approaches will tend to bring about efficiency in the property markets.

1.16 Importance of demand & supply in the property

The value of the property is generally determined by the demand & the supply of the properties. The demand for property indicates the peoples willingness to purchases or rent out a given property. Generally, property value is attached with employment rate & well being of the people. The rate of interest on the mortgage loan is also a deciding factor in demand for property. Because, if interest rates are high on these kinds of loans, the demand for the property will be less & if the interest rates are lower, it will boost the demand for these properties. Sometimes, the occurrence of a natural calamity may make the property prices to slump. Ex: - After the earthquake in Gujarat plots of l& that were in high demand earlier have no takers now. The proper estimate of the market value by the assessor is necessary for paying the correct amount of property tax.

1.17 Property have fixed income & equity characteristics

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Investments in property are really a portfolio of leases with different maturities & bond like cash flows. An income property consists of bond equivalents, called leases and a call option for residual equity. Most property practitioners dont look property investment in this way. The property & its components are usually analyzed outside the mainstream of modern finance. The interaction between several investment characteristics shape the property returns. Among these features, location has been historically emphasized as one of the key determinants of value. The property pricing is based on a stream of expected returns, which are shaped by disequilibrium in leasing markets & the rate of return on capital assets of equivalent risks. Leasing market disequilibrium is a complicated process due to the durability of property, the high transaction costs associated with tenant relocation & expansion & with contract negotiations, valuation.

1.18 Effect of interest rate changes in the property investment

The effect of higher interest rates reflects a real rate of interest added to an inflation premium. The effect depends on the degree to which the property market is in equilibrium as well as on the degree to which a propertys leases accommodate inflation increases. The economy as a whole may be operating at or close to capacity, whereas the leasing market may be featured by an excess supply of space. The overall relationship between interest rate changes & the property prices is in no way simple. There are a lot of factors which make it very complex. Some of these factors may be the nature of the propertys underlying leases, the market for rental space & the relationship between the rate of inflation & the nominal interest rates. The property portfolios inherent financial characteristics, including the duration of the leases, may change in many ways. Thus in the absence of proper rebalancing, an investors property asset allocation, may deviate over time at the cost of lost return as well as added risk.

1.19 How property is different from stocks & bonds

The valuation of property is different from the bonds or stocks because of the following reasons:20

1) No two property investments can be the same, at least if they are located in different places. The prices of one property may not give any clue about the price of another. 2) While there are a large number of players in the stock or bond market, but there are very few players in the property market. This is because the amount required for investment in markets is comparatively higher than that required in other assets markets. 3) In a perfectly competitive market buyers cannot determines the price. Buyers have no choice. But the situation is different in the case of property markets because here a buyer who can bid for a much higher price than the second bidder will definitely influence the price of the property. 4) Property investment cannot be divided into smaller units like; equity shares. This may be overcome to a certain extent by way of securitization of property investments. But still a property investment must be made as a single unit. 5) Property markets are subject to several regulations such as tax laws, building codes, environmental norms to be adhered to, etc. these act as detrimental factors to the development of real estate. 6) There is no regulated market available for property dealing. So the price of the property becomes difficult to be estimated. 7) Absence of an organized markets & indivisible nature of real estate investment are the reasons for the availability of reliable information about the prices of property. Even the buyers & sellers are not willing to disburse the price information. 8) Very few transactions occur in property market over a period of time. So a definite trend of the prices over time is difficult to determine the risk & return are also difficult to estimate.

1.20 Microeconomic Influence on Property Returns

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Property portfolio management is still very primitive respective of stock & bond. Property is an assets class that is not traded in public markets. In fact property business is still a kind of private business & not always traded in the organized market. Institutional investors such as pension fund & insurance funds are still not comfortable to invest in property. The basic problem with the property investment is that it is not well understood by many investors but in recent years numerous researches have been conducted by academicians & professionals for the general awareness of the property investment. Another problem is that it is still very underdeveloped & a majority of the transactions are very infrequently & small. Property investment is heterogeneous, illiquid, infrequently traded & generally dominated by small properties; therefore, the extensive research coverage of the property is not an easy task. The property data required for the research is not readily available. Inside information about property market is legally & socially sanctioned. Today, there is a growing need for the credible & useful data for the property investment research. All these problems faced affect the investment decision & property profit.

1.21 Macroeconomic Influences On Property Returns

The macro factors have greater impact on the return of property investments. Several factors such as unanticipated inflation, investor confidence or risk premium & the strength of the economy affect property returns. The risk return trade-off of property investment is quite different from the asset classes. This unique risk-return trade-off gives an opportunity to investors to reduce portfolio diversification. But, the real problem faced by any investor while investing in the property instrument is that little information is available about the correlation of the various macroeconomic factors affecting the property return. Generally these factors affect all assets in a similar way. We can call these factors as systematic risk factors. Moreover, the problem with the systematic factors is their unpredictable nature of the extent of property returns.

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When it comes to the process of making a property investment & exiting from it, there are a few things that we must keep in mind. These are:Transaction costs:- When we buy or sell property, there are many transaction costs associated with these activities. We might have to pay a brokerage fee to the intermediary. If we have made a gain on the sale, there will also likely be a resulting capital gains tax liability. We shall also face some expenses related to the stamp duty at the time of the transfer & registration costs of the property. All these costs can add a material amount to the purchase or sale price of your investment. Liquidity:- Unlike stocks that you can sell readily & convert into money in the h& within a couple of days, buying & selling property takes time. Our ability to convert our investment into cash in h& is quite restricted. It is not uncommon for deals to take up to one year, & still fall through at the last minute. So if we feel that we can sell our property to pay for our child's education abroad once he/she gets admission, we might be in for a shock. To have easy access to this money, we might be better off putting it into a financial asset that we can access at a short notice (e.g., fixed deposit or liquid fund). Cash: Property investments are not always the cleanest when it comes to cash versus Cheque component of paying for deals. Unlike mutual funds where KYC (know your client) norms require that the investment be made in cheque & the PAN card details be shared, real estate investments can have a huge cash component to them. This might not suit everyone.

1.22 valuation of property

With the international capital flowing into the property market in the United States, the values of the property have become more influenced. If there is a sufficient number of investor to bid for a particular property, they will constitute a market & if they are genuine investors then the price they are ready to pay will reflect the true value. But one should not ignore the fact that the value of the property may change in a short notice. Another factor of importance is the effect of environment hazards
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on the properties. So a low premium has to be placed on the properties that are exposed to environmental hazards while valuing the property. This factor has to be incorporated in arriving at a value of a property. The regulatory aspects should not be overlooked when valuating property. The economic policies of the government, the tax laws, etc. play a role in determining the property value. The market value of property is defines as follows:1. The price at which the assets is most likely to be disposed off, in cash. 2. The value at which the goods & services are exchangeable for a property. 3. The present value of future claim to the income realized on that property. There are three best approaches to be used for estimation of market value of the property. These are: Cost Approach Comparison of sales approach Income approach

Cost Approach:- Here value of a property is equal to the sum of the l& value
& the replacement cost of the building. From the value thus obtained, the cost of repairs to be done & the cost associated with obsolescence of its utility if any are deducted to arrive at the net value. The rationale behind this approach is that any rational investor would not be ready to pay more than the cost of replacing the same building with an equivalent property. When the existing building cannot be put to the best use, its value is assumed to be diminished. The steps involved in the cost approach are:1. Estimating the market value of the property 2. Estimating the improvisation or development charges 3. Estimation of depreciation charges & deducting them from

development charges. 4. Estimating the market value of the property in question.

24

Comparison of Sales Approach:- Here the value of a property is determined

based on the sales of similar properties. The appraiser should be able to get enough information to adjust for the difference in prices between the properties. Assigning a value of the property under consideration based on the value of similar property is a difficult task. This cannot be done without making any adjustments, for we cannot find a hundred percent identical property. The second problem is that this approach ignores market changes. If the comparable property has been sold a few month earlier or a year earlier the same price may not be valid now & using that value without any adjustment does not make any sense. The steps in comparison of sales approach are:1. Select properties which have similar characteristics to that of the subject property. 2. Then subdivide them into units so that it would aid us in comparing & performing calculations 3. Then adjust the sales figure with that of the subject property. 4. Estimating the market value of the subject property.

Income Approach:- Here based on the ability to generate income, the value of a
property is determined. The present value of the future benefits that would arise out of holding the property is determined to assign a value to it. This method also relies on market related data such as market rent for a similar property, expenses that would be incurred on the property, etc. The rate that should be used for arriving at the present value is more important & more difficult to estimate. The crude way of arriving at a capitalization rate is to divide the net operating income on a comparable property by its sale price. This capitalization rate is then used to arrive at a price for the property being evaluated. The income approach has two methods. They are: Gross income multiplier method Direct income capitalization method

25

The steps involved in Gross income multiplier method are:1. Ascertaining the gross market earning of the property. 2. Calculating the gross income multiplier 3. Estimating the value of the said property. The steps involved in Direct income capitalization method are:1. The calculation of the net operating income of the property. 2. Deriving the income capitalization rate from the market. 3. Estimating the market value of the property

1.23 Estimation of market value for income producing property

For a property which gives us regular returns, the market value is calculated as follows:-

Where, MVo is the current market price of the property MVn is the expected sales price of the property at time n NOI t is the annual cash flows or the net operating income at time t, R is the required rate of return

If we assume that this property changes hands infinite number of times, then the market value of the property is given by

If the net operating income grows at a rate of g annually, then

26

Where NOI is the net operating income growing at a constant rate of g. The term (r-g) is the capitalization rate ro. When the rate of inflation is high, one would find a very low value of capitalization rate. Capitalization rates are net of appreciation or depreciation. Example:- The net operating income from a property is Rs.35000. The required rate of return is 14%. Since past two years, the NOI is growing at a rate of 1.5%. Calculate the market value of this property. Solution

1.24 Factors which affect the value of the property

There are many factors which affect the value of the property. They are:1) Business Cycle:- The existing stage of the business cycle affects the cash flows into & from the real estate market, which has a bearing on the valuation. During the boom time there will be a natural increase in the economic activity & as a consequence, the demand for property also increases, resulting in higher valuations. 2) Interest rates & Inflation:- Any sector in the economy can attract & retain funds only when it gives more value for the investors money as compared to return from other sectors. Therefore the investors will park their funds in property only when they realize more returns from this sector. During the periods of high inflation, property acts as a hedge against price rise. 3) Taste & Preference of property:- The investors inclination & their outlook to invest in property are determined by their respective tastes & preference which in turn, are shaped by a host of factors like being averse to risk, social environment & the purpose of investment. 4) Legal Environment:- Lack of uniformity & the presence of multiple laws & regulation with respect to l& holding, act as impediments in frequent turnover of property, there by affecting valuation process.
27

5) Location:- The location of the property at elite or down market areas or the property being in a residential or industrial zone, determines the value of l&.

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2. LITERATURE REVIEW
C.F Sermans & Elaine Worzale gives critical review of research on international direct property investment issues. To date, no review article has explored the various findings of studies completed on the benefits of international property diversification. In the past 10 years, the quantity & variety of work have increased dramatically. The paper is organized by how investing in a property asset is analyzed: in a mixed-asset portfolio context or a real-estate-only portfolio context. A fourth section focuses on research that has explored currency risk, one of the prevailing risks associated with international investing. The last section provides conclusions about the research & offers ideas for future research in this growing area of property investment. Baum (2008a) related the number of property funds investing in developing economic & demographic variables, & showed that while the popularity of market was explained by population & GDP per capita, some Countries receive more or less investment than the model predicated. In this paper we undertake a Literature Review to identify the barriers which inhabit international property investment. We test our initial finding by questioning property investment professionals through semi-structured interviews. By doing this we were able to verify our list of barriers, identify those barriers which are most likely to affect property investor, & to indicate whether there are any propertiesspecific variable that create barriers which have not received any academic attention. We show that distortions in International capital flows may be explained by a combination of these formal & informal barriers. Arvydas Jadevicius, Brian Sloan & Andrew Brown, School of Engineering & the Built Environment, Edinburgh Napier University. A century of research on property cycles. The existence of cycles in the general business sector, as well as in building & property has grown to have significant importance in the UK, whereas the UK property market has been characterized by boom & bust cycles with a negative impact on the overall British economy. As a result, property cycles became a popular research topic amongst property professionals & scholars, with a greater
29

understanding of the cyclical behavior of the property market being seen as a major guide to the financial success (or failure) of property investments. Consequently, considerable literature has accumulated over the years on the subject. This paper provides a review of this literature with an annotated bibliography. The literature reviewed was mostly written in the UK & US, & includes contributions from both academics & professionals. This paper reviews research on the subject chronologically over one hundred year period. The particular emphasis is on the research methods, data & data analysis techniques employed, & the outcomes of the studies. The objectives are to provide a guide to the literature on property cycles, put more clarity on the subject as well as help to navigate anyone interested on property cycles throughout a considerable amount of research. Dr. David M. Higgins University of Technology, Sydney, Commingled Four Quadrant Property Funds. The structure of all property investment products can fit into four property investment quadrants private equity, public equity, private debt & public debt. Within an investment framework, this research examines the portfolio allocation across the four quadrants. The portfolio weights are based on recognised investment styles (strategic fixed & flexible weighting & tactical asset allocation). The styles are applied to conservative, balanced & growth funds derived from different levels of risk along a Markowitz constrained meanvariance efficient frontier model. The results showed that higher total returns can be achieved by the funds with flexible weighting & tactical asset allocation strategies, although this was accompanied by increased volatility which lowered the key risk adjusted return readings. This was primarily due to an increased allocation to private equity & the introduction of public equity to the portfolios. As portfolio allocation based on the four quadrant approach is still relatively new & evolving, there is a requirement for ongoing research, particularly with sourcing actual property debt performance data. In the future, commingled four quadrant property funds will offer institutional investors the opportunity to better manage & successfully execute property investment strategies.

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Dr. David Parker, AREIT Investment Strategy. It is proposed that the investment strategy of an AREIT should be clearly stated for the benefit of investors & that the portfolio should be structured & managed accordingly. A desktop review of the annual reports of a sample of AREITs is undertaken in an endeavour to identify the investment strategy. The investment strategy is then compared to the AREITs portfolio structure & management. Issues surrounding the statement of investment strategy, portfolio structuring & management are considered & conclusions drawn with areas for further research identified. Ross & Zisier, they revealed the existence of a significant correlation between property returns. One can predict tomorrows performance by looking at todays property performance. If these hold good, then fundamental analysis of property performance may be profitable at the margin. It is to be kept in mind that retail & office property fundamentals differ a lot. These differences create a low return correlation between property returns of various types.

Neil Crosby and Patrick McAllister, liquidity in commercial property markets, this paper draws from a wider research programme in the UK undertaken for the Investment Property Forum examining liquidity in commercial property. One aspect of liquidity is the process by which transactions occur including both how properties are selected for sale and the time taken to transact. The paper analyses data from three organisations; a property company, a major financial institution and an asset management company, formally a major public sector pension fund. The data covers three market states and includes sales completed in 1995, 2000 and 2002 in the UK. The research interviewed key individuals within the three organisations to identify any common patterns of activity within the sale process and also identified the timing of 187 actual transactions from inception of the sale to completion. The research developed taxonomy of the transaction process. Interviews with vendors indicated that decisions to sell were a product of a combination of portfolio, specific property And market based issues. Properties were generally not kept in a readiness for sale state. The average time from first decision to sell the actual property to
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completion had a mean time of 298 days and a median of 190 days. It is concluded that this study may underestimate the true length of the time to transact for two reasons. Firstly, the pre-marketing period is rarely recorded in transaction files. Secondly, and more fundamentally, studies of sold properties may contain selection bias. The research indicated that vendors tended to sell properties which it was perceived could be sold at a fair price in a reasonable period of time.

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3. OBJECTIVE OF RESEARCH
The study shall focus on the following objectives: Investment in the property has life long benefit or not. To identify whether the property investment is the needs or long term investment or social status. To investigate which income groups of people are investing in the property. To examine whether property investment is beneficial with respect to other investment.

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4. RESEARCH METHODOLOGY
Success of any Research & getting genuine results from that depends upon the Research method used by the researcher. Researches seek to find the explanation to unexplained phenomenon as social or physical to clarify the doubts & correct misconceived facts of life. Research in common parlance refers to the search for knowledge. One can also define research as a scientific & systematic search for pertinent information on a specific topic. Research may be defined as the systematic & objective analysis & recording of a controlled observation that may lead to the development of generalization of principles or theories, resulting in prediction & possibly ultimate control of events. Research is thus an original contribution to the existing stock of knowledge making for its advancement. In order to define the problem properly we should determined the nature of the research. After understanding the nature of problem a preliminary analysis is carried out. This analysis helped the researcher to understand & define the problem in the light of all factors already available. This should be done through descriptive research for my study in which I analysis the basic characteristics of all factor & find out how they behave in different situation.

RESEARCH TOPIC:- Property Investment is a need, long-term investment,

or social status.

RESEARCH DESIGN:-

It includes the persons who live in Kolkata at

different area & they have own flats or houses.

SAMPLE SIZE:-

166

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PLACE DUMDUM BEHALA NEW ALIPURE PARK CIRCUS TOLLYGANGE SALT LAKE JADAVPUR MUKUNDPUR TOTAL

SAMPLE 23 34 30 13 11 18 18 19 166

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4.1 RESEARCH PROCESS:Defining research objective

Research planning

Primary data

Data collection

Secondary data

Questionnaire population

Interview Analysis of data

Internet

Survey

Finding & interpretation

Determining the entire alternative to reach to a feasible solution

Suggestions

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4.2 NATURE OF DATA: - Both primary & secondary data has been taken into
consideration. For my retention study I chose both primary as well as secondary data for collecting the facts regarding the views of pupil in property investment.

TYPES OF DATA USED

PRIMARY DATA

SECONDARY DATA

Primary Data: - Primary data includes data that has been collected for the first time by the researcher deliberately for the purpose of particular statistical enquiry. Secondary Data: - Secondary data is one that has already been collected for some other enquiry.

4.3 SOURCES OF DATA: - More often it is impossible due to time, manpower

& other constraints to involve the entire population or universe to study. So often it suffices to seek data from a part or a sample of population.

I have used 3_methods for collecting the primary data. The methods are as follows:-

Observation Method Questionnaire Method Interview Method

Secondary data was collected through Internet research books, company catalogues & Brochures.

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OBSERVATION METHOD: - Through this method I especially analysis the persons behavior on property Investment. That means they like to invest their money on property or anything else. But on my observation I find many person too much interested in invest money on the property. In some home women are invest money on property for long term income. Like; purchases a property & rent it for commercial purpose or accommodation purpose.

QUESTIONNAIRE METHOD: - Quite often questionnaire is considered as the heart of survey operation for this research project a survey questionnaire has been prepared. In this type of questionnaire the questions are presented with exactly the same wording & in the same order to all respondents. The questionnaire is the standardized form of recording responses. It is self administered process of responding the answer by own self without any assistance. The questions are prepared on accordance with the research objectives. It contained close-ended questions. For my research I prepare 25 questionnaires for all the persons who has own house/flat. & interested in invest money on property.

INTERVIEW METHOD: - In my survey I also do the personal Interview to gather the better information &for easy tabulation & compilation of data. Here I personally talk with person that what they are thinking about investment in property. Many persons are easily talks to me but some are avoid. By this method I get more information with greater depth. Like; many persons come from outside Kolkata, stay here for a long time & invest their extra money on property for long _term benefit.

4.4 PRESENTATION OF DATA: - The raw data collected cannot solve any
purpose until & unless it is presented in proper format in effective manner. The information that had been gathered from primary sources is presented in an effective manner. So that true conclusion can be made. The prescription of data in such a way, give a deep insight of the hold of the particular happening in the property.
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PROCESSING OF DATA: - Tabulation, classification, analysis & interpretation

are essential steps.

FRAMEWORK OF ANALYSIS: - The framework for analyzing the data is

related to our stated objectives. Statistically methods are used for analysis wherever possible. Methodology of the project was clearly throughout in as much detail was possible.

TIME FRAME OF STUDY:- 3 MONTHS.

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5. LIMITATIONS
Although I tried to be most rational & honest in getting the information from the respondents, still there were following limitations faced during the survey: Many persons were not ready to give detail of their income & investment. I have to remove the full address & contact no. in my questionnaire. Because respondent are not ready to give this. The investors have not the full knowledge of their investing property. So they have to pay extra money to intermediary for getting knowledge. The companies which are doing business of property are not ready to give any information related to their business.

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6. DATA ANALYSIS & INTERPRETATION

TABLE:- 1 RANK OF INVESTMENT AS PER PREFERENCE. Option Most important Property Gold Share LIC Others 110 35 14 8 0 32 75 27 29 2 14 46 25 68 8 Important Average Least important 8 7 44 53 50 2 3 56 8 106 166 166 166 166 166 Unimportant TOTAL

120 100 80 60 40 20 0 Property Gold Share LIC Others

INTERPRETATION: Out of 166 respondent samples, 110 respondents given the Property Most important preference of investment. Out of 166 respondent samples, 75 respondents given the Gold Important preference of investment. Out of 166 respondent samples, 56 respondents given the Share Unimportant preference of investment. Out of 166 respondent samples, 68 respondents given the LIC Average preference of investment. Out of 166 respondent samples, 106 respondents given the Others Unimportant preference of investment.
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TABLE:-2 RANK OF PURCHASING PROPERTY AT POSH AREA. OPTION MOST IMPORTANT PARKSTREET SALTLAKE 58 56 24 50 34 30 27 10 34 64 64 27 IMPORTANT AVERAGE LEAST AVERAGE 20 20 30 30 33 54 6 16 16 67 166 166 166 166 166 UNIMPORTANT TOATL

BALLYGUANGE 22 NEWALIPURE ALIPURE 22 12

FIGURE:-2
80 70 60 50 40 30 20 10 0

PARKSTREET SALTLAKE BALLYGUANGE NEWALIPURE ALIPURE

INTERPRETATION: Out of 166 samples people, 58 people are given most important preference to Park Street area for property purchase. Out of 166 samples people, 56 people are given most important preference to Salt Lake area for property purchases. Out of 166 samples people, 64 people are given Average preference to ballyguange area for property purchases. Out of 166 samples people, 64 people are given Average preference to New Alipure area for property purchase. Out of 166 samples people, 67 people are given unimportant preference to Alipure area for property purchase.
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TABLE:-3 RESPONDENT MONTHLY INCOME INCOME LESS-10000 10000-20000 20000-30000 30000-ABOVE TOTAL RESPONDENT PERCENTAGE 16 55 60 35 166 9.64 33.13 36.14 21.08 100

FIGURE :-2

60 50 40 30 20 10 0 PERCENTAGE RESPONDENT RESPONDENT PERCENTAGE

INTERPRETATION: 9.64% respondent monthly income is less than 10000. 33.13% respondent monthly income is between 10000to20000. 36.14% respondent monthly income is between 20000to30000. 21.08% respondent monthly income is between 30000 above.

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TABLE:-4 CATEGORY OF RESIDENT & NON RESIDENT OF KOLKATA

OPTION RESIDENT NON_RESIDENT TOTAL RESPONDENT 114 52 166 PERCENTAGE 68.67 31.33 100

FIGURE:-4

PERCENTAGE

31.33 RESIDENT 68.67 NON_RESIDENT

INTERPRETATION: 68.67% respondents are the resident/origin of Kolkata. 31.33% respondents are the non resident of Kolkata.

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TABLE:-5 INVESTORPREFERENCE OF PURCHASES

OPTION HOUSE FLAT BOTH TOTAL RESPONDENT 66 90 10 166 PERCENTAGE 39.76 54.22 6.02 100

FIGURE:5

6.02

39.76

HOUSE FLAT BOTH

54.22

INTERPRETATION: 39.76% of respondent prefer to buy a House. 54.22% of respondent prefer to buy a Flats. 6.02% of respondent prefer to buy both House & Flats.

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TABLE:-6 CATEGORY OF RESPONDENT AGE AGE 20-30 30-40 40-50 50-60 60-ABOVE TOTAL RESPONDENT PERCENTAGE 47 55 29 20 15 166 28.31 33.13 17.47 12.05 9.04 100

FIGURE:-6
60 50 40 30 20 10 0 RESPONDENT PERCENTAGE

INTERPRETATION: 28.31% respondents have age between 20to30. 33.13% respondents have age between 30to40. 17.47% respondents have age between 40to50. 12.05% respondents have age between 50to 60. 9.04% respondents have age between 60 above.

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TABLE:-7 RESPONDENT MODE OF SAVING OPTION BANK LIC P.O LIC/BANK BANK/P.O LIC/P.O TOTAL FIGURE:-7 RESPONDENT 58 49 5 47 7 0 166 PERCENTAGE 34.94 29.52 3.01 28.31 4.29 0 100

60 50 40 30 20 10 0 RESPONDENT PERCENTAGE

INTERPRETATION: 34.94% respondents are deposit their saving in the Bank. 29.52% respondents are deposit their saving in the LIC. 3.01% respondents are deposit their saving in the P.O. 28.31% respondents are deposit their saving in the Bank/LIC. 4.22% respondents are deposit their saving in the Bank/P.O. No respondents are deposit their saving in the LIC/P.O.
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TABLE:-8 RESPONDENT CHOICE OF PURCHASING OUTSIDE OPTION YES NO TOTAL RESONDENT 60 106 166 PERCENTAGE 36.14 63.86 100

FIGURE:- 8

PERCENTAGE

36.14 YES NO

63.86

INTERPRETATION: 36.14% respondents are preferred to purchase property outside Kolkata. 63.86% respondents are not preferred to purchase property outside Kolkata.

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Factors analysis:-

KMO & Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .704 200.112 45 .000

Total Variance Explained Extraction Sums of Squared Initial Eigenvalues % of Component 1 2 3 4 5 6 7 8 9 10 Total 2.554 1.398 1.118 .926 .833 .792 .766 .590 .560 .464 Variance 25.545 13.975 11.184 9.256 8.327 7.916 7.656 5.904 5.598 4.639 Cumulative % Total Loadings % of Variance 25.545 13.975 11.184 Cumulative % Total Rotation Sums of Squared Loadings % of Variance 24.567 13.778 12.359 Cumulative % 24.567 38.345 50.704

25.545 2.554 39.520 1.398 50.704 1.118 59.961 68.288 76.204 83.859 89.763 95.361 100.000

25.545 2.457 39.520 1.378 50.704 1.236

Extraction Method: Principal Component Analysis.

49

Rotated Component Matrix

Component 1 2 3

comparison with other investment social status needs long term income secure income recession period reconstruction of paternal property purchasing a new property stay in paternal property mortgage loan

.571 .622 .672 .574 .731 .552 .600 .667 .834 .555

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

50

Using SPSS from the Rotated Component Matrix, it was found that the factors secure income & stays in paternal property are co-related, as conservative mind person who have secure income want to live in the paternal property. The factors recession period & mortgage loan are co-related, as the recession period occur the mortgage loan interests are also fluctuates. The factors social status, needs, purchasing new property & reconstruction of a paternal property are co-related, as the person who want to purchases new property or reconstruct his paternal property is for their social status which become the need for them. The factors long term income & comparison with other investment are not affecting anyone.

51

7. OBSERVATION & FINDING

On the basis of my survey I observed many good & week points regarding my subject. The main issues that I observed are as follows: The women are also interested in investing money in property. So they become economically strong. Many companies involve in the property selling business on installment basis. So that it become easy for the low income people to purchases the property. The property dealer companies are giving some facility to their customer like; car parking, 24 hour guard, swimming pool, water, electric, etc. Many Financial Institutions, Banks, & Insurance Sectors are providing the fund for purchasing property to their customer. The persons who belong from outside Kolkata are also interested to invest money in purchasing property in Kolkata. The price of property is increase much faster in that locality where there will be big construction happen. Like; Metro line, Hospital, School, Shopping mall etc. The investors have to pay much price to the intermediary for getting the knowledge. Because there is no such organized market of property available.

52

8. SCOPE OF FURTHER RESEARCH If use large sample size in research reports it will be better. But due to
lack of time & person negative thinking I only use 166 sample sizes.

If

this research is done in another metros cities like; Mumbai,

Bangalore, Delhi. The research become more good, because in that cities people income & standard of living is high respective of Kolkata.

If the survey is also

done in the company who do the business of

property. The more information will be gathers in research. But company are not agree to give their detail.

I use all type of person as a sample but if only high income people are
used as a sample, the response will come positive always.

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9. CONCLUSION
It was really great pleasure for me to carry out such an interesting research. Initially it was though task & challenge to carry out the information from the person. But as per as my knowledge & observation are concerned todays in the competitive market for gaining more from the investment in all respect, property investment is become a important mode of investment. Really for many persons who invest their money in the property is for needs, social status, & long term gain. A low income people are also want to invest their saving in the property market for making their future protective. The property investment is a low risk & high growth respective of other investment. The Bank, Financial Institution, & the Insurance companies are helping people to fund money on property. I also observe that many person who are from outside Kolkata like; Uttar Pradesh, Bihar, Madhya Pradesh etc. either Bengali or Non Bengali invest their saving in purchasing property in Kolkata. So I think property investment develop more in near future. Because investing money in property is saving the future of own self & the next generation.

54

10. REFERENCE
BOOK REFFERED: PORTFOLIO MANAGEMENT, ICFAI UNIVERSITY SECURITY MANAGEMENT, ICFAI UNIVERSITY C.R COTHARI, RESEARCH MYTHODOLOGY & TECHNIQUE

WEBSITE REFERED: [Link] [Link] [Link] [Link]

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11. ANNEXTURE
Greetings! I am Neena Sinha, pursuing MMA in financial Engineering Management under West Bengal University of Technology, from Institute of Management Study. As part of my curriculum I have to undertake a research, as partial fulfillment of the requirements of the course. In this regard, this is to request you to kindly give your valuable opinions on the following questions to help me complete the research project. I assure you that all the responses recorded here will be kept confidential & used solely for the academic purpose. Thank you PART-1 1) Name: - . 2) Age: - .. 3) Home town: - . 4) Address: - . 5) Contact .no:- . 6) Occupation: - 7) Own house/flat: - .. 8) No. Of house/flat: - . 9) No. Of family member: - .

10) My Monthly income :(1) Less than 10,000 (2) 10,000 to 20,000 (3) 20,000 to 30,000 (4)30,000 above.

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PART-2 11) Property investment is more beneficial respective of other investment. (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 12) Property investment is the sign of our social status (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 13) Property investment is our needs (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 14) Property investment is the long term income (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 15) Is property investment only for those who have secure income? (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 16) Is property a good investment in a recession? (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 17) I invest my money in reconstruction of my paternal property. (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 18) I invest my money in purchasing a new property. (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 19) I like to stay in my paternal property. (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree 20) If the interest rate on the mortgage loan is high, number of investor become less? (1) Strongly agree (2) agree (3) undecided (4) disagree (5) strongly disagree

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PART-3 21) I save my money in deposit it to a Bank/P.O/L.I.C . 22) As an investor I prefer to buy house/flat .. ... .. 23) Rank of investment as per preference. Name Property Gold Share LIC OTHERS Rank

24) Rank the purchasing property at posh area.

Name Park Street Salt Lake Ballygunge New Alipore Alipore

Rank

25) Would you like to purchase a property out side Kolkata? YES/NO If Yes then specify the area ..

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