Six Things to Remember When Applying for a Home Loan

Nowadays, buying homes is no longer an impossible feat. Financial and Non-financial institutions readily provide home loans at attractive rates to prospective buyers. However, there are certain aspects that need to be taken into account before applying for a home loan.

Know your Loan Eligibility:

Typically, Banks can sanction up to 80% of the property value as loan amount subject to your past history in paying credit card dues, home loans, if any, and your current income. Another point to note here; while calculating your net income, banks usually exclude heads like Leave Travel Allowance (LTA) and medical allowances as employees are expected to use them for personal consumption. Only that part of your income will be considered which can actually be utilized to pay off the loan amount.

Know your CIBIL Score:

Your home loan eligibility also depends on your credit score. The Credit Information Bureau India Limited (CIBIL) scores every individual on a scale of 300 to 900 depending on his/her past credit history, management of accounts, management of previous loans, if any, history of any bounced checks, etc. Usually a score of above 700 is considered acceptable for sanctioning of home loans. All financial and non-financial institutions make it a point to check the CIBIL score before sanctioning a loan.

Types of Interest Rates:

There are two types of interest rates – fixed and floating. It is important to understand the difference between the two as these will have a profound impact on your monthly EMI amount. Fixed interest rates are immune to changes in the market conditions and will stay stable throughout the loan tenure, and hence are advisable if interest rates are likely to increase. The floating interest rates change in response to fluctuations in the markets. Therefore, it would be sensible to choose this option if interest rates are predicted to fall.

Loan Tenure:

The calculation of monthly EMI on home loans is based on the loan amount, the interest rate on loans and the tenure. There is an inverse relationship between the EMI and the loan tenure. That is to say, if the loan tenure is long, then the EMI amount will be less on a monthly basis and vice versa. However, it is also to be noted that there is a direct relationship between the tenure of the loan and its interest rates. So, if you opt for a longer tenure, then the amount you pay as interest will be much higher than if you opt for a short tenure period. Hence, careful analysis of different permutations and combinations are needed before you make a decision.

Choose the Lender With Care:

Do careful research before settling on a lender. Look for things such as terms and conditions of offering a loan, the interest rates, loan repayment options, customer service, charges for termination, etc., and go for the one that offers you the best package.

Read the Agreement Documents with Care:

Make sure you read the loan contract carefully with special attention to the small print before signing it off.

These tips can go a long way in simplifying the loan approval process and bringing you a step closer to possessing your dream home.

The Beginning of A New Era In Indian Real Estate

With three revolutionary reforms, GST (Goods and Services Tax), Real Estate (Regulations and Development) Act and Pradhan Mantri Awas Yojana, favoring the interests of the common man, the sun seems to have finally risen on the Indian real estate. All these reforms, acts, and policies launched by the government in the past 2 years point in the direction of a new era that would mark the transformation of real estate from a developers’ market to a buyer-driven marketplace. A more empowered buyer would be born and property market would be focused in his interest. Houses would become affordable, transactions would become transparent and trust in real estate would be rebuilt in the buyer’s mind in this new era; all because of the three reformative acts. Let’s have a glimpse at them to understand how they would change the face of Indian real estate.

Goods And Services Tax

Goods and Services Tax aka GST is a ground-breaking tax reform that has been enforced in India on 1st July 2017. It would subsume around half a dozen indirect taxation levied by the Center and the State like VAT, Service Tax, Stamp Duty etc., that used to lead to cascading or doubling of tax. The government has put the under-construction projects under the 12% GST slab that would be a sigh of relief for all the prospective homebuyers. The anti-profiteering clause in GST law would ensure that the benefit of the tax reduction because of GST is passed on to the buyers at all costs. The elimination of ‘tax on tax’ or tax cascading would be one of the biggest benefits of GST on Indian real estate that would gradually lead to lowering of property price in India.

Excluding stamp duty, a homebuyer, before GST implementation, had to pay a total of 11% tax; the actual tax might have increased by less than 1% but the homebuyers are rejoicing because of the clarity and transparency brought in by this tax reform. “GST itself is expected to add about two per cent to India’s gross domestic product (GDP). That is a substantial boost to the economy. If the economy does well, obviously, there will be more demand for real estate, and it will be a boost for the sector,” says Ankur Dhawan, Chief Business Officer, PropTiger.com.

Real Estate (Regulations and Development) Act

Real Estate (Regulations and Development) Act aka RERA has been implemented in the Indian real estate on 1st May 2017. As per this new regulatory law, all the builders and developers would have to register themselves with the State Regulatory Authority and those who fail to do so would face cancellation of their real estate license. The Real Estate Act is to empower the property seekers and homebuyers to raise a voice against the unscrupulous builders or developers.

This Act would bring transparency in the real estate in India and enable the aggrieved buyers to seek redressal from the builders. Builders who delay the project, use one project’s money into another project or even drop the project would have to pay interest to the buyers owing to this revolutionary act. Timely completion of projects, ease of inquiring, complaint registration and the transparency brought in by the RERA Act would rebuild the trust of people in the real estate sector.

Pradhan Mantri Awas Yojana

The Pradhan Mantri Awas Yojana aka PMAY is the torch-bearer of PM Narendra Modi’s dream of “Affordable Housing For All By 2022”. This mission came into force on 25th June 2015 and seeks to provide affordable housing to all the citizens of India by the end of 2022. To fulfill this mission, the Indian government is coming up with new and affordable housing schemes so the people of India, especially the low and middle income group of the society, would be able to have a roof over their heads.

The government has decreased the home loan interest to 6% for those who want to take a loan for up to INR 9 lakhs and for those desiring a loan of up to INR 12 lakhs, can now get it at a 3% interest rebate. If the homebuyer complies with all the conditions put forward by the government, he/she can avail these attractively affordable offers and have a roof over their head in no time. A trigger in the home buying process would be seen gradually and people would now be investing their money on cheaper EMIs instead of paying house rents.

These three reformative acts, i.e., RERA, GST, and PMAY are bringing transparency and building trust of people in real estate India. They have opened the doors to a new era where homebuyers could get homes at an affordable price and would not hesitate from making any purchase decision.

Real Estate Industry in the World in COVID-19 Pandemic

The real estate industry is undergoing a tremendous transformation, and these changing trends will directly affect both buyers and developers alike. Despite the uncertainties in the economy, the market has witnessed considerable growth in the past year. Let’s now look at the changes that are likely to happen in the real estate sector in the post-COVID scenario.

Innovation

Technology is constantly evolving, and there is a continuous scope for innovation across all business segments. In the real estate business sector also, product innovation plays a key role in business success. Nowadays various technological developments are enabling builders to maintain resilience and business stability. The post-COVID world will demand a higher measure of safety and sanitation within the housing premises. For this, builders may have to think ahead and incorporate structural and operational changes within the projects. The latest technologies like artificial intelligence and virtual reality are likely to become handy when it comes to developing futuristic projects.

Revised Govt Policies

The government has taken various measures to support the real estate sector during the corona crisis. A special economic package of Rs 20 Lakh Crore has been announced by the Prime Minister with an aim to make India self-reliant. Following are a few amendments put forward by the government during the past year to boost the growth of the real estate sector.

  • The finance department had announced a one-year extension of PMAY Scheme which is a Credit Linked Subsidy Scheme (CLSS) for the middle-income group. The last date for availing this scheme was changed from 31st March 2020 to 31 March 2021. This rule amendment is expected to benefit an additional 2.5 Lakh people who are in the Lower & Middle-Income segment.
  • The finance ministry has announced various incentives to strengthen the construction and housing sector in India. All central agency contracts have been extended by up to 6 months and take measures to ease cash flows for contractors.
  • To strengthen the affordable housing segment, the government has announced affordable rental accommodation schemes for migrant workers and the poor. Various incentives will be offered to manufacturing units and other industries to build such affordable housing units.
  • To provide some relief to developers who are struggling to complete the project within the RERA stipulated timelines, a six-month extension will be given considering COVID-19 as an ‘Act of God’ and ‘Force Majeure’.
  • The government has launched a ₹30,000-crore special liquidity scheme for non-banking financial institutions to provide credit support to the sector amid the coronavirus crisis. Under the Rs 30,000 crore special liquidity scheme, the minister said investments will be made in both primary and secondary market transactions in investment-grade debt papers of these institutions. This will help to provide liquidity support to these companies.

 

Digitalization

Owing to the increasing use of technology and online media, realtors are now focusing more on enhancing their digital presence than ever before. It’s proven that digital media platforms ensure business continuity for real estate companies despite the ongoing crisis. Users have become well-adapted to mobile phones and other gadgets through which they gain access to a large pool of information about properties. To keep up with this trend, most of the developers are now adopting a digital-first marketing approach to tap more customers online. Google and social media platforms like Facebook, Twitter & Instagram have become the most popular marketing channels for realtors. Digitalization will play an important role in fueling the growth of the Indian real estate sector.

With these changing market trends, the realty sector is not going to be the same in the post-COVID world. Moreover, the concept of owning a home has gained much importance in these uncertain times. The pandemic season has changed the way people live, work & play and all this will have a collective impact on the demand in the housing segment.  Thankfully the real estate sector in India responds to these changes quickly and adapts to newer technologies without much resistance. We hope that once the situation gets better, the industry will bounce back with more vigor.

The Ever Rising Demand of Flats in Ahmedabad

Ahmedabad is the dream city of many. Be it for educational purposes to find that dream job, we often find many people moving to this city to fulfill their dreams. If you are one of those who have moved to this ever-active city and are looking out for flats to buy in Ahmedabad, then you certainly wouldn’t be disappointed for sure.

People who are looking for homes to buy in the city of Ahmedabad can choose flats located at various locations. A number of people often look for luxurious options that are also affordable at the same time. You can find a number of 2 BHK or 3 BHK options in Ahmedabad and this is due to the launch of a number of small-sized projects due to the ever-rising demand.

The real estate market can be expensive for the community of the middle class. This is due to the reason that the city of Ahmedabad is the most sought-after location when it comes to investments in real estate. A number of people also prefer to buy the flats in Ahmedabad as they provide all the basic amenities and a very organized infrastructure.

There are a number of factors that are considered by a number of middle-class home buyers. The most important of this is the budget and there are a number of residential projects in Ahmedabad that are launched to meet up the expectations of the middle-income group. A number of property developers too are coming up with all new projects that are affordable and these are mostly located nearby highways. The rise in demand for a smaller house which suits the budget is the prime reason for the launch of these projects. This is indeed a win-win situation for a home buyer as well as a property developer. The builders need not lose out on their profits and even the home buyers get a flat that suits their requirements and budget.

A number of builders are also coming up with ultra-modern and luxurious projects that suit the upper-middle class and the rich community. Businessmen do not shy away from spending huge sums of money to own their dream property and they also prefer houses that are located very much near to the commercial hubs.

Buying a property in Ahmedabad is indeed a good investment. The money that gets invested in a good property never goes wasted. All one needs to make sure is to take advice and choose the right property located at a prime location. With time, the price of the property only gets appreciated and you are good to earn some profits.

So, if you are one of those looking to rent or buy a property in Ahmedabad, do not hesitate. Instead, look out for some of the best properties located in this ever busy city and blend in with its busy lifestyle. With the properties offering the best of amenities at the best prices ever, you as a home seeker will never get disappointed.

How to Decorate the Room for Your Kids?

With regards to adorning a room for youngster, there are numerous things that you ought to remember. Since it will be a room which would require exceptional frill so it stays clean; you got the chance to concentrate on how you can make this room look lovely and more extensive in the meantime. There are numerous perspectives that ought to be kept in sight while finishing a space for your kids. From picking the shades to the furniture things, from divider workmanship to divider paints and a great deal all the more, everything about a room that should be enhanced for a youngster requires careful arranging and much homework.

  1. Study Area:

What great is a room for a youngster without having its own private perusing range? It is as critical as some other hardware in the room. Ensure that you save some space to put a pleasantly finished written work table where the portable workstation and books can be put advantageously. You can get it painted with dynamic hues so it gives a lovely look.

  1. Choice of furniture:

While enhancing a room; one ought to dependably begin with furniture since it is not something you will change for quite a while. On the off chance that you are pondering obtaining any furniture thing for your adolescent child; begin with whatever is in pattern nowadays. Kids nowadays love to have eccentric furniture things in their rooms. Along these lines, go for a decent match of cowhide couches or a recliner that they will treasure.

  1. Natural Plantations:

Keep in mind to add a touch of green to your adolescent’s room as succulent or pruned plants pleasantly organized in racks either on the written work table or in the corners. Your high school child won’t just feel fresher and quiet additionally the ranches will make the room a hypersensitivity free zone so that he or she doesn’t fall sick to the occasional changes.

 

  1. Cute Bean Bags:

Since a young person room shows most extreme levels of easygoing quality and a casual environment; you ought to put some exceptionally crazy things in there. Bean sacks are one of them. They are accessible in delightful outlines and hues and can be made on request too. In this way, you can get them made in acclaimed toon characters or most loved football groups of your child and so on.

  1. Stylish Beddings:

While picking the sheets for a room made for your high school kids; ensure that you remember their decisions. Sheets matter a ton since they can change the whole viewpoint of any room according to the alternatives you go for. Go for bright teenager sofa-bed sets, themed bed sheets, modified pads and pad sets as they will look to a great degree wonderful.

The future of Real Estate in the age of social media

The scenario of the real estate market has completely changed today with the advent of the digital age. More consumers are making use of the internet to fetch information across various spectrum’s before buying homes.

New age developers and buyers have turned to digital medium to connect with one another in a big way. Social media blogs lead to portals of property developers and help buyers to know about their projects. For example if you wish to buy luxury villas in Bangalore or any other city, just browse for the specific property and search by the builder, price, services, or city. How do builders and buyers leverage the social media for their benefits? We provide some answers.

Social media is a gateway for instant advertising

Real estate can leverage social media as an advertising tool that gives customers what they are looking for

Social media has a pervasive presence through channels like Facebook, Twitter, Instagram, Pinterest, LinkedIn, Google Plus and YouTube. These channels have millions of visitors daily.

As an illustrative example, one can choose Instagram to resell a luxury apartment successfully. A single image speaks a million words. It can also sell an apartment quickly. That is the power of social media. Both buyers and builders now understand how to use it effectively. Whether it is Twitter, Facebook or Instagram, the possibilities are endless. A new buyer can check various blogs before buying luxury apartments.

For instance, if a builder is selling Residential Apartments in Ahmedabad, they can use social media to geographically target the customers and update them. This does not mean targeting just those people who are in Ahmedabad; the platforms run complex algorithms capable of targeting people with interests in Ahmedabad, even if they live elsewhere across the globe.

The benefit of social media as a direct marketing tool is that a brand can have full control of campaign once they have understood consumer psyche. If for instance medical doctors prefer residential apartments near hospitals, they can provide that information to them. Builders anywhere can use the medium to build awareness of their presence.

Customers who have already booked apartments can be informed about how the work is progressing, at what stage of completion the project is. This kind of transparency goes down well with consumers and gives the brand image a boost. Similarly, builders use social media to announce new launches, special offers, discounts, etc. as it is a cost effective medium and provides instant responses.

Virtual suites add solid support to business

Builders and developers that have failed to register their presence on social media will find they have lost one of the biggest marketing opportunities.

Digital marketing has taken the business fraternity by storm and even though real estate was hesitant to traverse into unknown waters, it has finally taken a plunge. Perhaps real estate was comfortable in doing its business the traditional way but seeing the onslaught of social media presence, they have no option but to comply with trends.

Today’s customer likes to be well informed about most things that affect them. Buying real estate is one of the biggest decisions they make and so they begin their search on the internet. They check out projects, brokers, completed constructions, under- construction projects, prices, legalities, and even the new technologies used in buildings. Builders and developers have understood that customers like to make informed choices. So they are supplying this information through social media.

Silent communication works effectively,

Websites are no longer just a brand presence but powerful marketing tools

Right communication is the key to marketing. Social media has opened a vast window through which real estate can communicate instantly with prospective customers. Real estate too has caught on to this trend so much so that, besides establishing their brand, they even have marketing teams that communicate effectively on a daily bases with page visitors. These communications contain useful information; images, graphics, and even videos that portray the right brand image of any property located anywhere.

It is possible that mages of luxury villas in Bengaluru build interest in readers in another part of the country. However, for better information these visitors are likely to read the comments and the testimonial pages to get a more realistic picture of the building project. They will communicate with customer service before plunging into any decisions.

Make or break social media reviews

Real estate is a traditional business but consumers prefer a modern and transparent approach. It is best to embrace the new trends to keep business active.

Happy customers mean happy reviews and probably more sales. Real estate can therefore garner the social media to build trust among consumers by offering transparent information and a product that matches consumer aspirations.

Real estate social media marketing campaigns therefore have begun to revolve around the buyer and getting to know market sentiments. So, apartment projects reflect customer choice of features and amenities. Today social media pages often have reviews about real estate projects and these reviews often influence consumer sentiment. Therefore, real estate has to be on its toes to ensure that buyers get what they are looking for or they could find that negative reviews are bringing down their brand image and sales.

Four advantages for married couples on jointly owning a property

Jointly owning a property comes with certain intangible benefits. It elevates the status of the wife in the society and creates a long-term commitment and better bonding between the married couples. You should also be aware of the financial advantages of jointly acquiring the property.

Stamp duty

Holding property jointly allows the homeowners to enjoy certain benefits on stamp duty. It is for this reason that women in certain states are encouraged to hold property jointly. The stamp duty rates are reduced by 1-2% when they jointly hold the property. For instance, the stamp duty for a woman in Delhi is 4% of the market value, while that for a man is 6%. In Rajasthan, women have to pay 4% of the market value as stamp duty, while a man has to pay 5%.

Tax benefits

A joint home loan comes with certain tax benefits for all the co-borrowers. They can claim a tax deduction of INR 1.50 lakhs for the principal amount under Sec 80C and INR 2 lakhs for interest payment under Section 24. When two or more people acquire a home loan, each of them can individually opt for the tax benefits. As a result, the tax deduction will be higher.

Affordability

The loan eligibility determines the budget to purchase a property. This is decided based on the income and it has certain limits. When you go for joint registration, you can apply for a joint home loan. The debt burden is shared between two people. This helps in obtaining a higher amount of loan, as the creditors consider the incomes of both the people. You can obtain a joint home loan by applying along with your spouse, siblings, and parents.

Succession

Joint ownership between the couples also comes beneficial while dealing with succession. In case a property is owned by a single person, transferring property can be a time-consuming and lengthy process. The procedure to obtain the documents in the name of the successor involves excessive conformation to the rules and regulations. Although people often go for shortcuts and unethical means while transferring the property, however, the process becomes simplified when you go for joint ownership. It can reduce paperwork and other related hassles to a great extent. It is wise to go for joint ownership, as in these cases, the spouse becomes the successor. This keeps off unwanted problems in the future, after the death of a person.

Themed Plotted Developments Attract City Buyers

Themed plotted real estate complexes are increasingly attracting city buyers in Ahmedabad and surrounding areas. In recent years, the real estate investment in Ahmedabad has increased manifold. A number of projects have come up across the city, which offers themed plotted developments to the buyers. Such projects are drawing buyers in large numbers in recent years, as they allow the homeowners to develop homes that cater to their hobbies and passions. For instance, themed plotted developments have got the adequate infrastructure for nature, sports activities, organic farming, and so on. These plots are being upgraded by the reputed real estate companies. These are not simple pieces of land that are connected by basic features like water supply, concrete roads, park, and electricity. Themed complexes have been in the trend for quite some time now. Resorts, villas, and other real estate have been developed across the country by the reputed builders in India. You may check out the latest projects online in the real estate portals.

Homeowners, particularly luxury property buyers are interested in buying these homes. These include the people belonging to the ultra-high-income group and IT professionals. Most of these people are interested in building their second homes, rather than purchasing templated properties. The developers, too, are keen to enter the micro-markets, tapping the possibilities of selling these properties here. They integrate these homes with state-of-the-art amenities in order to lure the customers. Certain housing complexes have also been developed with artificial beaches, boats, and sandboxes. These also contain many man-made designs, such as artificial forests.

The amenities in these themed plotted developments are included after considering specific situations. Therefore, these homes may come with turfs, lawns, basketball courts, clubhouses, stadiums, facilities for indoor games, and so on. Many complexes in recent years have come up with yoga and acupressure facilities. Besides, these homes come with dedicated play areas for children, a swimming pool, gym, and other amenities. Homeowners who buy these properties get access to the amenities, in exchange for an annual maintenance fee. For the latest updates on upcoming and ongoing projects, visit the Radhe Developers website.

Investors, on the other hand, too, have been investing in themed plotted developments. They have realized that these projects attract high-income buyers and are lucrative deals in the long run. Most of the key cities of the country have witnessed the development of these resorts. An additional advantage for the homeowners in these cases is the proximity of the complexes to the key areas in the city. The residents can get easy access to the important places, including the commercial and business zones in the city. Besides, the homeowners can get fast access to the places of recreation. These developments have taken place in areas close to reputed schools and hospitals. This enables the homeowners to get fast access to these institutes. If you are willing to buy apartments in Ahmedabad, you can get them customized in the real estate portals. Luxurious homes have always been a fascination for homeowners. Moreover, these homes bring you an elegance you had always craved for. For property owners, this is the right time to make the investment.

Gujarat Announces Restrictions; Night Curfew From 8 PM to 6 AM in 20 Cities – Covid 19

Gujarat government has imposed a night curfew in a total of 20 cities from 8 PM to 6 AM from Wednesday, April 7, among other restrictions as the state saw its highest-ever spike in a single day. As many as 3,280 coronavirus positive cases were reported in the last 24 hours taking the tally of infections to 3,24,878 while 17 deaths pushed the toll to 4,598, the state health department said. Also Read – COVID-19: Karnataka To Impose Night Curfew in Bengaluru, Mysuru and 6 Other Districts From Saturday | Details Here

As per the restrictions, all government offices will remain closed on Saturday till April 30. Only a total of 100 people are to be allowed at weddings. Grand events to be postponed until April 30. Also Read – RT-PCR Test Mandatory For Passengers Flying to Assam From Mumbai, Karnataka | Check Details Here

Gujarat is now left with 17,348 active cases. Of the 17 fatalities, seven patients died each in Ahmedabad and Surat, while two succumbed to the infection in Rajkot and one died in Vadodara district. Also Read – Covid-19: Night Curfew in Noida From 10 PM to 5 AM Till April 17, Essential Services Exempted

With 2,167 people recovering in the last 24 hours, the count of recoveries in Gujarat went up to 3,02,932 on Tuesday, the department said in a release. However, the rate of recovery fell to 93.24 percent.

The neighboring state of Maharashtra is the country’s worst-hit state, reporting nearly 60 percent of India’s total tally.

 

Source – India.com web portal

The Things Most failed to Spot When Buying a House

Fire safety

Another factor that rarely appears in viewing a house checklist is fire safety. While most reputed and reliable builders take care of this, it is still very crucial for an individual to check how safe the house is in case of fire. Checking the distance to the fire exit, availability of fire fighting equipment, etc. should be checked before shortlisting a home.

Child safety

We always make sure to choose a neighborhood that is safe, but how often do we look into the safety of a child in the house? It is important to notice factors like the type of nosing of the stairs, the presence of sharp edges, the types of locks used, etc. These factors determine the safety of a child, prevent serious injury during a fall, and help you curtail any mishaps. Opting for handles instead of knobs, secure railings for balconies, rounded nosing for landing, etc are some of the options that you must choose to ensure safe indoors.

Mobile network and connectivity

It is surprising that this factor does not make it to many checklists considering how important mobiles have become in our day to day existence. Imagine living in a house that has a poor or no network. It is not only very inconvenient, but it is also unsafe as staying connected at all times is extremely essential today. Make sure to visit different rooms in the house that you have shortlisted to ensure that there is good network reception throughout the house.

Other amenities

While we are all looking into amenities like swimming pools, play areas, etc, we seldom overlook other amenities like convenient garbage disposal, rainwater harvesting, etc. These amenities are essential and the absence of which can be really inconvenient to function effectively on a day to day basis.