Things to know before you apply for a Home Loan

India is a great place to buy a real estate asset, as all you need to have is the will to buy the property of your own choice, for the rest there are number of companies and banks to provide home finance. 

There are new policies and initiatives that have been taken by number of banks and financial institutions have come up with number of repayment options as well as loan options in the financial market.   

Home Loans:

The loan that is offered to the customers who want to buy, construct or renovate a residential property is eligible to apply for Home Loan. Home Loans are unsecured loans as they are provided without a security, depending upon an applicant’s financial condition and profiling.

NRI Home Loans:

NRI Home Loans are simply like any other home loans issued to individuals living abroad for purpose of career or business. These too are insecure loans as not backed up by a financial security. There are a few things that may differ from a regular Home Loan, for example the rate of interest, the tenure and also the finance amount may differ. 

Loan against Property:

Loan against Property or Property Loans are loans which are offered to interested customers against their real estate asset. These are secured loans as are backed by a real estate asset of the customer taking out loan. There are a number of documents which are required to be submitted while borrowing Loan against Property India. 

Documents necessary for Property Loans:

Your Evidence of residence - A ration Card / Telephone Expenses / Power Expenses / Voters Card will do.

Evidence of Identification - A Voter's Card / Motorist's Certificate / Company's Card will do.

Your latest Bank Declaration/Passbook - from where you can show your wages / incomes being acknowledged from the past 6 months.

Salary Slip - last 3 several weeks with all deductions shown. A Form 16 from the last 2 years will also be required.

Copies of all Real estate asset Records - of the property in question that you select to commitment for the loan.

*If you are a self employed professional/individual, you will require the following documents:

Certified Financial Declarations for the past 2 years.

Evidence of Property - A ration Card / Telephone bill / Power bill / Voters Card will do.

Evidence of Identification - A Voter's Card / Driving license / Company's Identification Card will do.

Your latest Bank Declaration/Passbook  - from where you can show a wage / income being acknowledged from the past 6 several weeks.

Copies of all Real estate asset Records of the worried property that you select to commitment for the loan.

Lodha Palava City, the first smart city of India for its Smart People

Even though the city of Mumbai in the last 9-12 months has seen some slowdown for the real estate industry, Abhinandan Lodha, deputy managing director, Lodha Developers is confident of growth for his organisation. 

According to him the new 4000 acre Lodha Palava City project would garner a bottom-line of around Rs 600 crore every year, over the next 5-6 years and a total of around Rs 4000-4800 crore, over 8 years after paying all the taxes.

Lodha Palava City is a 4000 acre township located in suburban Mumbai. Out of that 250 acres have been developed and sold which has over 20,000 units exist. They are now developing 650 acres and expect to have 1 lac units by 2025. Current pricing ranges from 40 lakhs to 60 lakhs for 1 to 3 BHK. 

The company has grown by around 27 percent as compared to last year both in terms of topline and bottomline. Current debt for the company stands at Rs 5600 crore, which is fully serviced by internal accruals, said Lodha. The Lodha Group has absolute ambitious plans to make the city a dream for each Indian. 

Lodha group has not left any stone unturned to ensure that they have a huge success to Palava City. Lodha Palava City is world’s finest Town Planning Companies, Architects and Professionals who have studied the development across the globe.

This project will give an average of 60 to 90% returns to the Investors and Home Buyers across a time frame of 5 years plus. With a staggered payment approach and Bank Funding there is no other project available with a ticket size of 40 Lakhs plus to match the infrastructure with this project. 

With Mr Bachchan being the Brand Ambassador, it brings the added confidence to the home buyers and investors who have grown up seeing the Shehenshah of Bollywood and with him being the First Citizen would mean a lot to them. In an Industry First move, the Lodha Group has signed in Mr Amitabh Bachchan as the First Citizen of the Palava City, the New City for the New Generation developed by the Lodha Group.

Banker and Developers take necessary initiative to boost sales in Real Estate.

Bankers and Developers on same wavelength to make Real Estate a better place! The rate of interest may now vary between 15 and 35 basis points across the banking industry can fuel the demand which is already being stoked by the government’s programmes such as Smart Cities, Affordable Housing and Digital India with a focus on reducing the inflows into cities which are bursting at the seams.

With the reduction in interest rates by the banks has acted like a spark that the real estate market had been waiting for, with Home Loan interest rates on a slope, lenders are now more optimistic. SBI and Housing Development Finance Co which have shed their reluctance in passing on the Reserve Bank of India’s past rate cut.

New policies and initiative taken by the RBI and Indian government together like reducing the interest rates in Home Loan as well as building 100 smart cities are seen as a major step in boosting the stagnant real estate sector.

As per the I-T law, the buyer of an immovable property worth Rs 50 lakh or more is required to deduct (and deposit) withholding tax at the rate of 1% from the consideration payable to the seller. In case of failure to comply with the provisions, interest and penalty are imposed on the buyer.

Buying an apartment and your TDS formalities are thus, if the purchase price of your flat is Rs 50 lakh or more, then you have to comply with the tax deduction at source (TDS) obligations. You will be required to furnish information about the tax deducted and deposited online on the Tax Information Network (TIN) website in Form 26QB 
(URL is https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp).  

Five basics to make your Home Vastu Compliant

Vastu Shastra has now become an integral part of any construction or home interior, while the number of Vastu Experts in our country now equals to the number of cricket experts. The experts in Vastu generally tend to differ from each other on what rules or principles to follow, with this blog we have tried our level best to gather all important information one can use and what to chose and not to is at your discretion. 

Our vision is to just provide our users with information that would make your life simple and effective I just five easy ways. 

1. Pre-construction:

Before you start the construction on your plot it is advisable to perform Bhumi Pooja or the worship of mother earth, as it is done to get blessing from her and makes the beginning of the construction auspicious and marks a good start to the proceedings.

2. House Entrance:

The Entrance of your home is the first point of interaction for anyone who comes to visit, so it becomes very important that you place your entrance accordingly. The most auspicious and advisable direction for ones entrance is the East, as the sun rises from the east. This brings in positive energy and light into your Home, if you want your entrance somewhere other than East, in that case North East is also a good option.

3. Kitchen location:

The location of your Kitchen should be such that it faces the East side and when you cook you should be facing the East side. Just one important note that one should always keep in mind is that your Kitchen should not be located directly in front of the main door of the house.

4. Master Bedroom:

The Master Bedroom is the place where you spend most of your time and thus it becomes an integral part of your house. The master bedroom should be located at the South West of an East-Facing home. If you ask me I would suggest you that, if you will follow 2nd and 3rd point, you can sleep soundly, without having to let the aroma or the noise accompanying the cooking to wake you up. 

5. Toilet location:

Your toilet’s location is also a quite a vital aspect from both perspective of Vastu as well as general health and aesthetics angle. The ideal location is to be located in the North/West corner of the building or North/West corner of the rooms. If this is not possible, South East toilets are allowed. It is also recommended (and sensible, in our opinion, we might add), that the toilets, kitchen and Pooja room in the house should not be adjacent to each other.

5 Useful Home Loan Tips for Home Buyers

Buying a house is once in a lifetime decision that one takes, as the spiralling prices of the property and the high rate of interest rate regime in the market. It becomes very important to find and select the right home loan product in the market becomes much more significant to avoid any uncertainty in near future.

•Do Your Research:

It is very important for the customer to do their homework and their research work, as the agents generally are bias. There are certain banks that provide Home Loan at quite significant low amount but they pay less commission to agents thus they don’t encourage customers to take loan from such banks.

•Look into parking your additional Funds:

With few banks you get the opportunity to allow borrowers to invest their additional funds in the loan accounts. This makes a significant difference with reduce the interest rates from the principal amount for the time that amount was invested. Such features have been added recently making this more efficient.

•Know about Floating and Fixed Rate of Interest: 

Banks normally offer two types of interest rates, Fixed Interest Rates and Floating Interest Rates. Floating Interest Rates are offered majorly by government banks as these vary according to the market, while fixed rate of interest are mainly provided through private banks and are fixed for the tenure. Usually floating rate of interest is cheaper than fixed rates.

•Set your CIBIL Score right:

CIBIL Score plays a major role in helping you get attractive offers, it has been observed that people with CIBIL more than 750 points in 80% chances get their loan. So before applying for loan, it is advisable to know your CIBIL score.

•Pay max Down Payment:

It is always advisable to the borrower to pay as much as they can as it reduces the principle amount and thus you pay less interest on the principle. So before taking out the loan against the property it is advised to pay maximum down payment.

Gaur 14th Avenue a Home For Everyone.

Where luxury meets your pocket

I always used to think that luxury costs a lot but thankfully, Gaurs City 14th Avenue, changed my mind, they have now changed my perception, and now I can say they provide luxuries houses in affordable budget. This project of theirs offers all the modern and world class amenities and much more at a pocket friendly price, with Gursons you really get used to more.

Gaurs City 14th Avenue is a world class apartment in Noida Extension sector 16C, with 2 BHK and 3 BHK lavish apartments with area ranging from 760 Sq.ft to 1300 Sq.ft. The project is spread over 112 acres of land, with large and open spaces for kids to play and parks for your comfortable walks. 

Also to pamper you we offer a wide range of facilities like Reading Rooms, Cafes, Latest Gymnasium, Sauna Bath, Jacuzzi Bath, Billiards Table, Table Tennis, and Card Tables.  The entire complex is Wi-Fi enabled, and also helps you save nature as the project also has Rain water Harvesting. And forget any parking issues as there are open and covered reserved parking available on payment basis.

The property is ready for possession in world class facilities at an affordable budget. The Gaurs City 14th Avenue is very close to NH 24, the project is around 1.5km away from first Gol Chakker and approximately 7km from Noida City Centre Metro Station, 8kms from Fortis Hospital. The project is aspired to give you a truly residential paradise, with combination of townships, offices, shopping malls, schools, restaurants and ATM’s. 

With us we look into long term relationship and to make it last we help you save down the line as well. The structure is earthquake resistant as per IS Codes. With all of these features to help you further we have housing loan facility available from leading financial institutions. A 24 hour security system to protect you and keep your peace of mind. Only 25% of the area is covered rest 75% of the area is open spaces.  

Smart Designs and Affordable Prices The New Exciting Dimension Added to Real Estate

Housing Sales are estimated to rise this year to 1.92 lakh units in India’s top seven cities on expectations of a cut in Interest Rate and Stable Prices, according to property gurus in India. There was a fall in Housing Sales dropped to 1.75 Lakh units in the primary markets of seven major cities in 2014 as compared to 2 Lakh units in its previous financial year.

There had been a great mismatch in Demand and Supply chain and the prices of property have reached to its saturation point in few localities. This has been a major challenge for Developers in these areas as they have to keep the prices tight to meet their competitors as well. 

Seven major cities are Delhi-NCR, Mumbai, Chennai, Kolkata, Bangalore, Hyderabad and Pune would benefit the most as 2015 will see home buyers capitalising from the current scenario of reducing borrowing rates, increased developers focus on affordable homes, largely stable prices and better job or income prospects.   

Coming time can be seen as good time for real estate sector as the borrowing rates are sure to go down from the current levels and economic activity is gradually picking up. With a more consistency in property prices and better deals being offered by developers in order to clear their inventories, the home buyers that have been waiting for suitable time is here to encourage them to go ahead and buy.

Developers have now shifted their focus on affordable homes, this would act as bridge between the existing wide gap between the demand and supply mismatch of affordable homes. Developers have now become more earnest about the right size at right price that offers a customer better opportunity.

Smart, Better Designed and More Efficient Homes will define the residential real estate market in 2015 and with better product evaluation would help bring down some over-priced cities will help bring about faster sales for stagnated supply of larger configurations. There is a prediction of townships would be more popular while Luxury or High End products would moderate to align to slow demand.

New Policies and Direct Tax Proposals, benefits Real Estate Sector

Real Estate Sector has forward and backward linkages with over 250 different sectors, as well as it ranks 2nd in employee generation after agriculture. This sector also adds up to a significant number in our country’s GDP with 0.78x. 

With such data to back up the real estate sector the time is right to explore its complete potential as real estate sector correlation in other large economies like the ones of China, US, UK, Germany and Spain is at least 0.9x. 

One of the major factors that have been affecting real estate market has been the large demand and supply mismatch, and our government need to take several real time steps to make sure that this mismatch gets dissolved.

Major Policies Introduced

• Projected announcement of around six crore houses under the scheme launched by P M Modi, “Housing for All 2022”. With around four crore houses to come up in Rural Areas while two crore 

houses in Urban Area.

• One Lakh kilometres of road in FY 2015-16 has already been sanctioned and is expected to be build by FY 2015-16.

• With great policies like setting up of National Investment and Infrastructure Fund to be funded by INR 20,000 Crore annually.   

Major Direct Tax Proposals

• With the corporate tax rate to be reduced by 25% in a phased manner over a period of four years from FY 2016-17, with corresponding phase out of tax incentive/concession.

• Wealth Tax to be abolished by FY 2015-16.

• Tax provisions relating to Alternate Investment Fund rationalised to facilitate over sea investments in India.

Home Decor Tips

A complex with walls and furniture only becomes your home once it has a touch of your presence. Once you step into a house which holds you by the presence of its home décor is what makes the difference, the ones with well designed space even if it’s a rental or neighbour down the road makes you go awe. 

It is tough, takes time you need to put it bit by bit, piece by piece but its only you who have the power to bring something out of the design catalogue. Now one of the few designs that come straight to my mind is the New Bohemian style is for sure a colourful and playful. 

At the same time it is yet undeniably eye catchy, inviting and cool. The most resourceful tool to use for a more tasteful and variety in home décor is by going online, it is better to craft a design for the most exciting and strong home décor. 

One can browse through number of websites each week, that brings to you best selection of home furnishings, personal accessories and gadgets. You can find a wide range of products and varieties to choose, at quite attractive prices.

Great News for Homebuyers, cut on Interest Rate.

Reduced Rate Of Interest makes this Diwali a great occasion to invest in property.

Loans are now an integral part of our lifestyle and a major chunk of our salaries goes into them. From purchasing a Home to live in, to a Vehicle to drive and even Phones that we use most of us get them via loan. This blog would help you understand the current scenario in Loan Sector.

• With great news from RBI on the 5th of October 2015 by cutting down the rates, existing and potential home buyers are delighted as this means it would bring down the borrowing cost.

• This step taken by the RBI would be a considerable reduction in the EMI that one would pay, for a home loan of 60 lakh for 20 years there would be a cut down by almost Rs 1500, this has given customers huge relief.

• With the latest RBI measures to protect customers with home loans is a proposal to change the way banks determine their `base rate’, acting as a benchmark for all floating rate loans.

• This step taken has been taken by Reserve Bank of India, as customers had been complaining of a raw deal in pricing.

• Reserve Bank of India has been taking various measures in recent years to offer a better deal for home loan borrowers.