Six things about home loan incentives you are unaware of

This has been a year of joy for home buyers. More tax benefits, interest rate cuts on loans, sluggish property prices, new launches in the 'affordable' segment with freebies and attractive payment schemes.

A lot many people would be looking to take advantage of these benefits and buy their home sweet home. In the midst of this, it makes sense that you would try to get a good deal on your home loan as well. However, even if you get a discount, the taxes are sure to burn a hole in your pocket. Here we give you a list of lesser known tax benefits on home loans.

You can claim tax benefit on interest paid even if you missed an EMI- In case you have missed a few EMIs during a financial year, you would still be entitled to claim deduction on the interest part of the EMI for the entire year.

Processing fee is tax deductible- Charges related to loans are tax deductible, according to the law, these charges are considered as interest and therefore you can claim deduction on the same.

Principal repayment tax benefit is reversed if you sell before 5 years- If you sell your house within five years of purchase then it can have a negative impact. Any deduction claimed under the principal repayment category would be reversed and added to your annual taxable income in the year of sale.

Loans from relatives and friends is eligible for tax deduction- If you avail of a loan from a friend or family member, you can claim deduction on interest repayment, provided that the loan was used for construction or purchase and the requisite documentation is provided. This rule is applicable only for interest repayment.

You may not be eligible for tax break even if you are just a co-borrower- You cannot claim tax benefit if you are not the owner of the property. You would need to be both owner and borrower to be entitled to any sort of tax breaks.

You can claim pre-construction period interest for up to 5 years- Your home loan benefits start kicking in after you get possession. While you cannot claim principal repayment, you can claim the interest paid post possession 

The other side of the Real Estate Bill

The Real Estate Bill was hailed as a welcome step to put the unorganized and anarchic state of the real estate sector into a semblance of normalcy, an attempt to create certain guidelines that real estate developers would follow to ensure protection of the buyers. While the actual implementation will still take times, with a lot being dependant on various state governments, the bill will address key issues like creating a regulatory body to guard consumers, mandatory registration of projects, registration of agents and redressal of consumer complaints in a quick and efficient manner.

While all these steps are brilliant and no doubt will ensure that the chaos in which the real estate sector functions will be reduced considerably, there are a whole host of issues that have to be monitored so as to avoid any problems in future. The state and local authorities have been given huge roles to play with both approval and monitoring of projects coming under their aegis, the point to be kept in mind here is that these authorities don’t themselves become hurdles and a hub for corrupt practices.

Another important issue is that with the parking of funds in an escrow account, the burden on developers is going to increase which consequently will lead to an increasing of property prices, additionally the fact that this is going to be another bolt to the liquidity crises most developers already face. Another area of concern is the ambiguity in terms like “Carpet Area” which might later lead to issue with standardization in any future legal tangles. With so many points of approval and registrations involved it seems like the builders have a tiresome task ahead of getting all requisite clearances.

While the governments intentions in terms of streamlining the sector and bringing more transparency seem true, the Bill has a lot of areas where the without proper setup and implementation there are going to be a number of pitfalls. However, it is too early to be cynical; the Act is the beginning of pushing the real estate sector in the right direction and with the support from government it is highly possible that the industry itself will ensure its success. 

Understanding what a good rental agreement is

Renting out your home as a source of extra income or to pay off your home loan is gaining popularity. Also, home owners who live out of town usually rent out their homes to utilize the space. Now, in case you have someone trustworthy like a family member or a friend to take care of such things, then nothing like it. But mostly people rely on real estate agents to take care of the property and execute any paper work involved.

Now even if you have a professional real estate agent taking care of these things, it is better to have an understanding of what makes a good rental agreement. Listed below are few of the key points.

Stamp Duty and Registration- Stamp duty is the tax you pay to the government to make your rental agreement legally valid, so it is imperative that you are aware of how much the stamp duty is and pay it, also make sure to pay registration fee as an unregistered document is not going to work as evidence in case of a dispute.

Important Terms and Clauses- Make sure to include all important terms and clauses in the agreement which include the tenancy term, names of occupants, security deposit, discipline and maintenance . Mentioning these terms clearly in the agreement insulates you against financial loss.

Lease Agreement- a lease agreement is different to a rental fundamentally due to the time period, rentals are usually drawn up for 11 months whereas lease agreements are usually for 3 to five years. Consequently the stamp duty and registration fees also vary in lease agreements depending on the tenure. Hence it is essential that you understand the legalities of the contract.

A good rental agreement is one in which both the tenant and landlord are satisfied. Hence, the responsibility to create a fair, clear and concise agreement rests with you. 

How Digital Revolution has impacted Real Estate

Digital revolution is something that every one of us has experienced in one or the other aspect our life, in fact, nowadays it seems almost impossible for us to live without technology right in our hands. 

 Many aspects of the technological revolution like IT systems, ERP’s, web communication, social media have all managed to transform how business is conducted. It has helped industries become more efficient and growth focused.

The impact of this digital revolution has been as intense as any other sector. Technological advancement has found place in every single aspect of the real estate cycle, from designing and construction to marketing, branding and sales. Flow of information has been made faster, more reliable and economical and buyers and investors seem to the ones who are most benefited by this.

Buyers and renters have a wide variety of options for choosing properties amongst thousands of listings with multiple of filters customized to suit their needs instead of relying on brokers. This sort of opening of market has driven down brokerages, consequently causing developers and builders to offer myriad facilities and offers to keep customers happy.

 Digital revolutions has opened a number of avenues for marketing for the builders and developers, with advent of Facebook, Twitter, Slideshare and LinkedIn, developers are able to engage customers better and make them a more involved party, opening up two way communication with them to deliver better product and services.  Another important aspect is the ability of using high end software to design and create buildings that are economical, environmentally friendly and appealing. The time taken to build and develop projects has also reduced resulting in consumer confidence.

A more indirect benefit has been that the easier processing of information at financial institutions leading to quicker disbursal of loans to buyers and developers alike has helped in their financial health.

Things to keep in mind before you buy your first house

Owning a home is a dream most of us have, in fact it is statement to your success and announcement that you have arrived in life. Most people would love to buy a property but are held back due to continually rising prices and insecurities related to their jobs, and it is wise as buying a home is a huge long term commitment.

As more and more projects are being launched, that promise you everything from a car to the Moon, we list out a few things you need to keep in mind before you take the plunge.

The only direction real estate goes is up- everyone believes real estate prices never fluctuate, this is a myth, real estate as with other asset classes also goes through its ups and downs, however, the difference is that it is not as volatile as say, gold or stock market. While it might be tempting to buy a home right now when it seems prices are low, it makes sense to save more if you are at the beginning of your career, that way you can reduce the amount of loan you have to avail when you make the purchase.

This is the cheapest property in the area – you might be tempted by the fact that you are getting an apartment at 8-10% cheaper than the others in the area; however this isn’t the entire picture. What you need to check is the size of the apartment. Compare the price per square feet to get a fair idea of the price of the flat.

Rates will go up soon- Most agents advise you that the property you are looking at is almost sold out and will witness an upward price revision. However, the reality is that builders and developers are dependent on buyers for cash, so they would be offering you discounts and freebies, keep this in mind and make the purchase for maximum benefit.

Penalty for late Delivery- Agents would generally assure you that due to the penalty clause in the agreement your investment is safe, however it is advisable to check the contract and not bank upon the compensation entirely as the penalty is usually on the base price and would not be close to the EMI you are paying, additionally most contracts have a clause in the agreement which states that if the project is delayed because of 'factors outside their control', they will not be liable. So, make sure to get a legal expert to go through the agreement. 

How rugs can transform your space

A well placed rug can change the look for any room, it can add warmth and comfort, it can help you define space and make it look more intimate or more spacious. Rugs anchor a space and bring all the elements together to create a more cohesive look.  Another important thing is they help you cover any imperfections on your floor.

Although its expected that you would have rugs in your living room or bedroom, rugs are quite good in dining rooms or hallways.

Here we give the four ways a rug can be used to instantly spruce up your space.

Define separate spaces- If you have an open plan apartments, you can use rugs to demarcate different spaces. In case you use different rugs in different areas, then make sure that they are of varying sizes so that the space looks bigger and more open. Also, make sure that all rugs complement each other in terms of design and style.

Change the size of a room- Rugs are one of the most effective ways to change the space of your room. A large rug in small room will make it look larger while a small one will cramp the space further. Its all about the balance, in a large room, you can add multiple smaller rugs in different colors or shapes to add a more intimate feel.

Enhance your style- Rugs have a huge impact on the rooms, so definitely consider all options before buying. Think about your overall décor and furniture, and what sort of statement you want to make before you take the final decision.  

Add texture- Rugs are made in a variety of materials- wool, cotton, jute and a number of shapes as well. So in case your room is going to experience a lot of foot traffic then use a jute or sisal rug, which is going to be sturdy. For a living room, a wool rug will give an instantly inviting look. 

How to choose a home loan wisely

Although it has become quite easy to avail a home loan in India, one should be careful while choosing the best one thereby saving money on the interest rates. With a lot of important features like lowest fixed and floating interest rates, availability of prepayment option, special concession for women and senior citizens etc it is easier for individuals to save money.

With a number of private financing institutions and banks offering flexible interest rates with various budget options, it has become quite simple to apply for a home loan. With every year these banks come up with new schemes, so it is advisable to consider your options. We give you a few ways below to save your money while availing a loan.

Check the percentage of loan offered- Banks offer varying percentage of the total outlay require to purchase a home, so if you have one bank offering you 80%, check for one which will give you 85%. This will help you reduce the amount of down payment, however, keep in mind that consequently your EMI would go up.

Analyze the interest rates and prepayment charges – Check for loans that offer you free processing or lesser EMI, lesser prepayment charges to save your money. In case of floating interest rates, banks cannot charge a prepayment penalty to borrowers.

Consider the process and time involved – Loan disbursement process is quite long a tedious job involving multiple documents related to income and property. Research a little and decide on a bank that has a simpler process and offers you a better deal.

  Check for Special Concessions or offers- Many banks offer you special concessions or offers like lower interest rates for women, or senior citizens, EMI holiday etc. check if your bank has any such offers and avail them to get maximum benefit. 

How to decorate your home using mirrors

Mirrors can add a lot of depth to the décor of your home, they are a relatively inexpensive and easy way in which to transform the look of your walls, and whats more they make your home look bigger.

So here we tell you how to use mirrors.

Mirror as art work- use a collection of small or differently sized mirrors, hung in a asymmetric or haphazard manner to make it look artsy. You can even use huge a single, dramatic, statement piece to add the glam quotient to your wall.

Brighten up your living room- Since most of us end up living in cramped spaces due to the ever increasing property prices, any ideas that make your rooms look bigger are a boon. Install big mirrors opposite to windows to reflect more light and make the room appear brighter and larger.

Mirror cabinets for the kitchen- Use a mirror instead of tiles for your kitchen wall against the sink or the platform to open up a small area. You can also use mirrors as a sliding door for your cabinets so that they do not look like one.

Create optical illusion in the hallway- Hallways are largely ignored by us as we don’t actually spend time there, however, adding mirrors to the space will open up the area so that you don't feel confined within it. Drawers and cabinets with mirror doors in the hallway can make the home look lively and colorful, as they would reflect everything around it

A statement mirror at the dining area- Using a statement mirror with a beautiful frame adds to the look of the room while highlighting the main attraction- food. 

Feng Shui for the Kitchen

 Food is an essential element for our survival, so naturally kitchens are one of the most important aspects of a home, so much so that it is considered part of the Feng Shui trinity- of the bedroom, the bathroom and the kitchen because of its utmost importance to your health and well being.  Here we have a few tips for good Feng Shui of kitchen.

·         Bright and Happy- Kitchens are one of the most active areas of our homes, so bring in bright colors through paint, lighting or nature.

·       Get Organized- Kitchens are sort of like magnets for everything to land so you need to create specific places for everything

·         Clear Clutter on the Refrigerator Door- We generally display a lot of magnets and lists on the refrigerator, but it is advisable to keep it a bit cleaner, more organized and less cluttered.

·         Organize all the drawers and shelves-  Reduce clutter in the shelves and drawers, a good way to do this is to use the 1 year rule- if you haven’t used it in the last one year, you won’t be using it in the future.

·         Clear the counter- Do not stack a load of utensils on the counter, keep it clean and clear so that you can start working straight away.

·         Make it Safe- Ensure that all knives, scissors are kept safely in their designated places. Do not place any flammable items near the stove. Also, try to reduce number of pots and pans hanging overhead and store them in your newly cleared cupboards.

Six hacks to make your room look bigger

In an age where property prices are soaring, the possibility of finding a big spacious home within your budget is quite difficult. So, naturally you end up with small homes and rooms. But, don’t worry we present to you 6 hacks that are sure to help your small room look larger.

·         Paint or wallpaper your ceiling- While you are probably aware that color’s play a huge role in determining how cozy or airy your room looks, painting or wallpapering your ceiling gives more height to your room and draws the eye upwards.

·         Use hidden storage space and multipurpose items- Try and incorporate furniture that serves dual purpose like a sofa-cum-bed or a kitchen counter than doubles up as a dining table as these will help in maximum utilization of space. Use items which have storage space like trunks as coffee tables etc to reduce clutter.

·         Hang shelves near the ceiling- Get shelves made near the ceiling and display your collection of knick knacks, books etc there. These will again help in drawing eye to ceiling making the room look more spacious, you can even add shelves for storage in your bedroom reducing clutter.

·         Use mirrors and glass where possible- pacing a mirror in front of a window or behind a chest or big table to create an illusion of space and light.

·         Use varying shades of same color- try and incorporate the color you have used on your walls in your furniture as well; this creates uniformity and opens up the space. It’s not necessary to buy new furniture; you can just create accents of the same color by pillow covers and throws.

·         Get statement furniture that fills the room- Get one big statement piece of furniture that fills the room rather than scattered pieces that create clutter and serve the same need. In the same vein, opt for one big, dramatic art piece instead of a number of small pieces that cover up the whole wall.

Buying a Home While You are Young Makes Sense

Buying a home in your twenties might seem like a real tough decision, but if you think carefully it is a wise one. Waiting till you are in your 30’s is generally the norm, however if you consider it, it is also more difficult because you have more responsibility and more financial burdens.

While you may not be able to buy a home right your first job, but planning for the same will help you achieve the dream in the next 4-5 years. Since this is the time when you do not have to take case of any debts or have any long term financial obligations you can plan and invest with a focus on building a corpus for a home.

Since a home loan is huge financial commitment requiring discipline for a long term, it is advisable to try and make up as much in your own savings as possible so as to reduce the amount of debt you have to take.

Some key factors that your prospective buyers should bear in mind are:

·         Location- The most crucial element of your purchase. In case you have a job that entails a lot of travel or you have plans of moving elsewhere, it makes sense to buy or construct property in an areas where someone you trust can lookout for you in your absence. Also essential is the security and social infrastructure of the area keeping in mind your future needs.

·         Space Requirements- Keep in mind your future requirements and buy a home that will suffice as your family grows, don’t just focus on the number of rooms but also on storage space as more members need more storage space.

·         Comfort Zone- Make sure to buy space that makes you comfortable. Things like low roof, inadequate kitchen space, high counters, and lack of sunlight are some things that may not be noticed in the first go but are sure to bother you with time. Incorporate as many elements as you can within your budget.

·         Credit History- Ensure that you are not defaulting on any loans like auto loans or credit loans which will reflect poorly on credit score.

·         Budget- This is probably the most important aspect of your purchase, do not borrow more than you can repay under the assumption that you would be able to repay with you salary hikes, with time your expenses are also going to rise. Also keep in mind that everything need not be done in the first go, you can keep adding improvements as your budget permits.

Vaastu Tips for Your Living Room

Whether you own a contemporary home or a traditional one, a living rooms is an essential part of it since man being a social animal needs space to socialize and spend time with friends and family. Since the living room is such an integral part of your home life, it is imperative that the vaastu of this space is correct. Below are a few tips that we bring you to get you living room’s vaastu in order.

• The living room should always be in the East of North direction. In case you have a south facing home, then your living room can be in the South East corner.
• If you have a small prayer or pooja room, then its best to have it in the North-East as god presides in this direction.
• if you love socializing and do not want your guests to leave in a hurry then make you have your living room located in the South West direction.
• The floor and the ceiling of the living area should slope towards North or East.
• Make sure to keep furniture, articles and heavy things in West or South side. If you are unable to do so then use a base of 1-3 inches height to keep furniture in North or North-East.
• Place the TV in South-East corner; otherwise it will break down often.
• Keep telephone in East, South-East or North, and not in South-West or North-West.
• Place air cooler and air conditioner in West, North-West or East and never in South-East.
• You can have portraits of Gods or some beautiful paintings in the North-East wall or corner. Don’t hang paintings that are negative in nature like war, crime, weeping, etc.
• Use white, light yellow, blue or green colors for living room walls. Avoid red or black for living room walls.

How to find a good real estate agent?

Property buying is a big decision involving lot of time, money and patience. For first time buyers this is even more formidable as they don’t have the requisite knowledge. Hiring a property agent helps you in dealing with most of the headaches involved while getting you the property you desire, so here is a guide in deciding the right agent for you.

Well-versed with the market: The key to getting a good bargain is an agent who is aware of all the rules and regulations of the city and state along with the latest property developments. The trick to identify a good agent is to list out your needs and if he is able to give you a variety of recommendations. A good agent would have a god network of builders, developers and owners and thus would be able to offer you a wide number of options.

Fluent with realty terms: For first time buyers realty terms in property buying become challenging, the terms are difficult and confusing; here is where a good agent steps in, guiding you through all the legal terms, their meaning and implication.

Proficient in legal and financial terms: You should hire someone who can help you understand legal implications like clearances, permits and registrations required along with the financial aspects like the extra costs involved, home availability etc. The agent should also be aware of the structural sufficiency norms and the legality of the property.

References: The best way to ensure that you have a good agent is to check with his previous clients. Ask the agent to give you some references and then speak to these clients about how happy they were with his services and would they recommend him.

Select an agent with a good reputation. Keep up with your own research on the do’s and don’ts as well. Be clear about your requirements and do not back down on them, once you are clear you can keep looking till the time you find the right fit.  

For more details about the project, You can call us at 925-0005-154