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Buying a real estate property is often considered as one of the good investment strategies. It has been observed that people prefer investment on real estate considering it as the best long-term financial planning for retirement. Most of the people invest money into rental property hoping for good return after few years. However, you may face major loss if you are not well prepared before the property deal. It is a mandate that one should do a proper research before a property deal. So, here are few essential points that you should keep in your mind while buying real estate.

Approval and licenses:

Check all the paperwork done by the builder e.g. certificates for commencement of work, environmental clearance and approval for building plans. You should also check for the land title status and check if the land belongs to builder or the builder posses only the development rights. Below is a list of documents that you should verify.

Real Estate

  • Title Deed:  Verify the title deed of the land to validate if the builder holds total right to it. Moreover, it is always wise to take a help of a lawyer to cross check the deed.
  • Release Certificate: If the property is in resale, then check if the property is under a bank loan. In such cases, ask for a release certificate from the concerned bank, which confirms that the loan on the possession has been closed. Also verify Encumbrance Certificate to check that the property is free from all legal dues.
  • Verify land use:  Check the land-use zone as per the city master plan for the plot. You can avail the plan from the local body office in the respective city. Also, ensure the layout holds approval from the development corporation as well as the local body of the city.  
  • Receipts of Property Tax: If the property is in resale, then ask for the previous property tax receipts from the seller and other bills as well. This will ensure you that there are no pending dues on the land.

List of banks financing the project: Once you decide the final property and ensure that all approvals are in place, make a list of banks which are ready to finance you and make a final choice with the bank that can provide you loan at the minimum interest rate.

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Calculate the total cost: It is seen that brokers usually mention the basic cost excluding other factors such as parking/club/statutory charges, preferential location charges, internal/external development fees, and service tax. On adding all, the total amount exceeds your budget bracket. So, always check for the final price of the property.

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Verify the Builder past record: It is always recommended to avoid the properties under litigation. Hence, one should do a thorough check on builder’s reputation in the market. For this, you can validate the builders’ current and past projects through posting queries on various online real estate forums.

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Buy Vs Rent: Most of the people purchase a property with a view to use the rent to pay the EMIs towards the property loan. Experts suggest not to adopt such approach, as the rental yield on residential properties is only 2 to 3%. Additionally, the property may remain unoccupied for months till you find a suitable tenant.

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The Right Plan: One must select a best option in terms of convenience cost out of all payment option available in the market such as flexi-payment plan, construction-linked plan, possession-linked plan and down-payment plan. For example, the price in subvention schemes is at least 10% higher than the charges under regular schemes. People should also recognize that any delay in payment or non-payment issue from builder in such schemes can affect their credit records. In guaranteed rental schemes the developer either pays rent for a fixed period during construction or for a certain period after possession. According to the first plan, the buyer receives regular payments from the developer during the construction, which helps him make up for a part of EMI or rent costs. In the second scheme, usually for properties outside the city limits, the developer provides rental income after the possession. But there is no guarantee.

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Size of the Apartment: Generally the area mentioned in brochures includes common areas such as lobby, staircase, etc. The actual area or the carpet area the property could be 30% less than the super built-up area. Make sure to check on built-uparea and carpet area of the property. The soil and topography are next concerns.

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Check the Infrastructure Plans: Metro connectivity or any other major infrastructure expansion in near future linked to the location of the property. This can really boost the return on investment terrifically. Also, ensure that the property is not close to any factory causing major pollution hazards.

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Check the Site: Usually the layout in brochure vary from the actual layout. So, it is suggested to do a thorough site visit before buying the property. If possible, it is always better to communicate with the neighborhood, which will help to know the location better.

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Register your Plot: Once you finalize the property, you must register it with the concerned authority to become its ,legal owner.

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Things to Keep In Mind While Taking a Home Loan

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Well! It is the dream of every one of us to purchase a dream house once in a lifetime however, in today’s era the price of the properties are skyrocketing and hence, people have problems in purchasing the house. In order to facilitate people purchase a house, the banks and financial companies under both public and private sectors lend loan to the borrower.

With plethora of options available to borrow a home loan, the normal person is tremendously confused. Thus, in order to clarify all your confusions, herein, we bring up a simple guide to help you borrow a home loan and fulfill your dream of having a luxurious house ahead.

  1. File your ITR regularly. Well! Filing your Income Tax Return helps you build up your CIBIL Score. A CIBIL Score of 750 is desirable in the case, you want a loan. If your score is low, many banks and financial companies avoid giving you a loan or they might prefer to give you a loan at a higher interest rate.
  2. You must research for various options available which can provide you a loan with effective interest rates. Apart from this, it is also essential to gather information about the postulates of loan agreement and their foreclosure norms.
  3. Understand the fundamentals of interest rate. Notably, there are two kinds of interest rates: floating interest rate and fixed interest rate. Floating interest rate depends upon the stock market whereas the fixed interest rate remains same till the foreclosure duration whether it is 15 years or 20 years.
  4. Comparison of the involved processing fees is essential. Yes, it is quite necessary to know the details regarding the processing fees, file charges etc involved while the loan is being processed. It is variable for different banks and financial companies.
  5. Check your affordability criterion. Before finalizing your loan, it is necessary for you to counter-check your own affordability criterion as your bank/financial company does. Well! Practically it is extremely difficult to repay the loan in the case, you can’t afford it. Thus, decisions should be made wisely.
  6. Insure your property. Insurance of your property which is supposed to be mortgaged for a home loan, ensures the option of repayment in the case you won’t be able to do the same because of certain adverse circumstances. Hence, insuring your property is an intelligent idea.
  7. Don’t depend on your loan agent. All the loan agents tend to sell the loan for the bank/financial company that pays an effective incentive to them. Notably, if the cost of commission is high, your processing fees and interest rate is also comparatively higher. Thus, you must not depend upon the loan agents and try at government banks for loans.
  8. Ensure the legality of your property. Yes, you must check all the legal papers of the property which you are planning to buy. After all, if you are leaving no stone unturned to purchase your dream house, your property should not be illegal or else, you will be at loss and no bank would prefer giving loan for a property with illegal issues.
  9. Make appropriate down payments. Along with the legal documents of the token money and down payments, you must try to make maximum down payment. In this manner, you will be able to timely foreclose your loan, thereby, reducing the interest on your loan amount.
  10. Spend conservatively to foreclose your loan before time. This ensures reduction in your compound interest thus, saving your money a great deal. It is also found that foreclosure norms are now relaxed and the borrowers don’t require paying extra if they wish to foreclose their loan before time.

Hope this is an interesting and informative article. Well! Now if you are planning to purchase your dream house, you can apply for a home loan to combat the high expenditure involved thereby, maintaining your budget.

Best of Luck!

Stay tuned for such informative articles.

 

 

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Mumbai literally submerged due to excessive rain

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The vicinity around magnificent Bungalow of popular film star and heart throb of millions Amitabh Bachchan is fully submerged in water and the star is out for shooting in one of the studios in Mumbai.

There are reports that a high tide likely to arrive anytime in Mumbai may create havoc in the life of the citizens after this metropolis already witnessing heavy traffic snarls and the majority of its areas fully submerged in water. Due to the excessive rains and the sea having been overfilled with excessive high tide water Mumbai has literally turned into a flooded city with water has come to the level of half of the human body.

The Mumbai’s local trains have been badly affected as almost all the railway’s lines have been fully submerged in water. Hundreds and thousands of local commuters have been stranded and held up in their respective offices. The life line of the nation and the economic capital of the country Mumbai usually witnesses such huge bottlenecks during the rainy seasons as the BMC despite having the maximum budget in thousands of crores compared to the other municipalities of the country never comes to the permanent rescue of the citizens with its majority of roads full of potholes and no arrangements of the exit of water cloggings on a vast scale.

Though Mumbai is considered to be the glamorous city housing Bollywood making the maximum numbers of films and being the economic capital running the economy of the country, the civic condition of this metropolis is too poor and worrisome as compared to the metropolises of other states of the country. Mumbai houses the biggest slums in Dharavi and is also the main hub of the glamour world. The pitiable and worrisome situation due to the possible high tide in the offing and majority of the Mumbai having been filled with water to the human knee and waist its seems that the traditional Ganesh Chathurti idol emerging process will also come to the halt. It may be recalled that Maharashtra and in particular Mumbai celebrates Ganesh Chathurthi to the fullest with hundreds of thousands of households emerging the idols in the sea till 31st of August or 3rd September.

Let’s hope that Mumbai comes out of this danger and there is no loss to life. The government authorities in Mumbai have announced the alert of 24 hours and Mumbaites have been directed to stay put in their respective houses for another next 24 hours. CHUTTI has been declared in all the offices of MUMBAI for two days. There have been 77 to 100 milliliters of rain till now which is considered to be a dangerous rain. Brake shave been applied to the life line of Mumbai. AAMCHI MUMBAI has become a DOOBTI MUMBAI.

SUNIL NEGI

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Vasant Kunj Crisis: DDA blames residents

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Flats at Vasant Kunj D-6 were classified premium, built to provide lodging to foreign technicians during the Commonwealth Games of 2010. These flats were allotted at very high rates as part of DDA’s 2010 housing scheme.

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Two-and-a-half years since the Commonwealth, the luxurious complex with prices ranging between between Rs 34 lakh and Rs 1.12 crore, are not in a liveable condition.

 

The problems pointed out by various denizens of Vasant Kunj D-6 are:

  • No power supply in these flats. The main wiring which supplied electricity from Yamuna block to the complex was stolen very recently, along with meters and switchboards.
  • Though the complex is multi-storied and the apartments go up to seven floors, lifts are still not fully functional and some are also used as garbage dumps by the workers on site.
  • There is no water connection to these flats even now and the taps also haven’t been installed as DDA feared that those might also be stolen.
  • Parking is a daily hassle in these flats. The basement parking was not put up for auction with the flats in 2010 due to water logging and technical problems. The parking area for most part is out of reach of the residents and the basement can’t be used to park SUVs due to defects in its design.
  • Shopping for the daily needs of the denizens is also proving to be a big inconvenience, with no shopping malls or markets within easy reach.

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When the people approached DDA, they were told that they would have to install wiring at their own cost and the sanitary-ware also which was stolen by the thieves.

An allottee, after paying around Rs 90 lakh for his 3BHK flat in Vasant Kunj, now pays an EMI of Rs 50,000 every month and spends Rs 20,000 on rent also for another flat. He is unable to move into the flat because of the inability to reach his seventh floor flats without a working elevator.

DDA refused, when asked to comment on the estimate for the completion of work. They in turn blamed the residents of the complex for the dismal condition of the buildings and roads. According to them, people have altered the infrastructure of the flats and surroundings, which is proving to be an obstacle in the premises.

 

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