Tips to check your home loan eligibility. Buying a home is no longer a distant dream for many. Nowadays, a majority of financial institutions and banks have started increasing their focus on home loans, resulting in huge expansion of the home loan market. However, these institutions still adopt a thorough process for assessing the loan eligibility of an individual, which is directly tied to the amount of home loan they are willing to disburse.
In this article, we will discuss the various factors that need to be taken into account for determining your home loan eligibility. Stability of Income Income is the most important factor for calculating your loan amount. Higher disposable income assures the bank of your capability to repay the amount and thus makes the sanctioning process simpler. Profession While deciding on your loan capability, the banks also take into account the nature of your job. Age This determines the number of years the loan seeker has to repay the borrowed amount. Credit Score Property Attributes. 5 Things to Consider Before Cancelling Flat Booking. You are bound to remember the day you book your flat for the rest of your life. It is the day you go one step closer to owning your own home.
But there is a possibility that you might have to cancel the booking for one reason or another. Unfortunately, not many people are familiar with what cancellation entails and because of this, might fall prey to builders who exploit this ignorance. Below you will find a list of issues you must be aware of before proceeding with cancelling your flat booking: 1. Know your rights Before you embark on the cancellation process, it is imperative that you acquaint yourself with the rights you have under the agreement signed between you and the developer. Moreover, the cancellation clause of the agreement usually contains a provision under which if the builder doesn’t commence construction within a year of getting the allotment letter, he is liable to repayment of the booking amount, along with an interest of 6%. 2. 3. 4. 5.
6 Things to Know About Rental Agreements. A rental agreement is an extremely valuable document that enumerates the terms and conditions of leasing a property. It safeguards the interests of both the landlord and the tenant, and therefore must be closely scrutinized by both parties. If you’re a tenant about to move into a rented home, keep the following things in mind before signing the rental agreement: 1. Type of rental agreement There are two types of rental agreements that are legally recognized in India – firstly, lease agreements and secondly, lease and license agreements. 2. It is not uncommon that people who aren’t the owners of the property rent it out. 3. The value of the rent must be clearly specified in the rental agreement. 4. In case of lease agreements, the tenure has to be a minimum of 12 months, whereas lease and license agreements can be drawn for a period of up to 11 months only. 5. To avoid sudden eviction by the landlord, always ensure that 2-3 month notice period is specified in the rental agreement. 6.
Which is better: Buying or renting a house. It is always advisable to purchase a house if you have long term plans to live in it. You must have heard the rhetoric of sellers, “The same money that you spend every month on rent would constitute an equated monthly installment towards the loan you take. What you pay as rent is an expense that goes in the pocket of the landlord, but your EMI is an investment that will, one day, make you the owner of this house. Come, sir, we even have bank representatives in our office to facilitate the process.” Job security All this is sweet, but only if you are buying a house for the first time. It would be better to invest in other reliable avenues like purchasing gold if you still have disposable income after buying your first house.
Wealth tax But of course, if you are using the money you have already acquired, you can purchase a second house property. Tax benefits Hence, you should ensure that the project in which you are buying a house is in the final stages of construction. Property hassles. Why should we pay property tax on time? So goes the refrain of every irresponsible citizen in India, “The government does nothing! Why should we pay taxes?” The argument raised is, why would a municipal corporation get into a fund crunch? They get grants from the central or state governments.
Here, we see a case of passing the buck, when the municipality belongs to a different political party. The recent crisis in Delhi wherein work was struck due to non-payment of wages, and the city became a garbage dump, is a case in point. Public good The population of metro cities is increasing primarily due to migration from smaller towns, where a default in payment of property tax mighthave beentolerated.However, in a metropolis like Delhi or Mumbai, you enjoy the kind of facilities unimaginable in an Ambikapur or a Mirzapur.
Discounts and penalties If you properly study the self-assessment reckoner booklet issued by any corporation, you may find measures to legally reduce your tax liability. Tax benefits Legitimacy Conclusion. Know everything about REITs. A real estate investment trust(REIT) is a company in which ownership of real estate has been split into various units, enabling retail investors to participate.Like MFs, REITs collect money and issue units in exchange. Like stocks, investors are able to buy units from both primary and secondary markets. REITs offer two types of income: capital gains (upon selling units on exchanges) and dividends. Comparison with private equity funds Most of the existing sets of real estate funds in India target capital appreciation while REITs promise regular annual income.
PE funds may have a minimum investment threshold of Rs. 25 lakhs confining them tohigh net-worth investors (HNIs), while REITs will be available for investments from Rs. 2 lakhs and upwards. Real estate PE funds are illiquid as investments cannot be withdrawn in the initial three years or so while REITs can be traded in the secondary market. SEBI guidelines to safeguard the interests of individual investors Classification Conclusion. Be Prepared Before Taking A Home Loan. Buying a home is a dream that everyone cherishes and home loans are the magic wand that can make the dream a reality. These days, not only is it feasible to get a home loan, but because of intense competition in the lending market, you will have a wide variety of options to choose from.
However, this doesn’t mean that getting a home loan is a walk in the park; here are a few things to keep in mind while taking a home loan: 1. Do your research Banks are always trying to attract customers with lucrative schemes and low interest rates. It is therefore your responsibility to gather as much information about the different plans offered by different banks as possible to get the best deal. Also, don’t be in a hurry to sign on the dotted line – clear all doubts with the bank before you take the plunge. 2.
It is important to not get overly emotional when you choose your dream house and go out of your budget. Another crucial decision that affects the EMI is the tenure of the loan. 3. 4. 5. Here is what Real Estate Bill has to offer! After nearly 3 years of being stuck in parliamentary limbo, after numerous debates, clarifications and amendments, the Real Estate (Regulation and Development) Bill was finally passed in the Rajya Sabha on Thursday. The passing of the bill in the Upper House of Parliament is a moment to rejoice, especially for the average home buyer in India, who until now faced huge problems due to the unorganized arrangement of the real estate sector. For developers, it will help to boost their credibility with the customers and also ensure that only those builders dedicated to providing quality homes to buyers will stay in the market.
Let us further breakdown the Real Estate Bill and examine its consequences for the Indian real estate sector. 1. One of the most important directives of the Real Estate Bill is that once each state ratifies the bill, a Real Estate Regulatory Authority (RERA) will be set up in every state. 2. The real estate sector in India is a haven for black money. 3. 4. 5. All You Need To Know About Real Estate Appellate Tribunals (Reat) The Real Estate (Regulation and Development) Bill, 2013 is all about empowering the real estate consumers.
Along with bringing in a structure to the process of real estate development and purchase through regulations that ensures timely development of real estate properties by builders, proper selling by registered real estate agents and corrective measures and provisions for defaulters. The Bill intends to do this by the development of 3 primary bodies at various levels of the government to bring in standardization to the sector. These are: ? Real Estate Regulatory Authority (RERA): The bill proposes to set up RERAs at the state level, and all real estate projects, developers and brokers must register with this authority to function in the respective state. Central Advisory Council (CAC): This body will be chaired by the head of the Ministry of the central government dealing with housing. So, what really is a Real Estate Appellate Tribunal? Well, yes and no.
What about State Laws? Real Estate Bill gets a nod from Rajya Sabha. Real estate sector and home buyers can now expect ‘Acche Din’ ahead, as the much awaited real estate bill has got clearance from Rajya Sabha. The bill is expected now to be listed in Lok Sabha but is likely to be cleared without much hindrance due to a commanding majority. Here are the crucial features of the bill to look through: The Bill gives power to the home buyers to make an informed choice about buying homes, ensuring timely delivery, and a swift option for a legal alternative in case the builder fails to deliver on his promises. The Bill proposes setting up of a Real Estate Regulator that will keep a track on the developers from advertising or selling homes, till they have all the approvals from the local and regulatory authorities.
These authorities (regulatory) will be set up in every state. To bring more projects under the limits of the Regulator, the bill states that all projects on land over 500 square metres or 8 apartments will have to get registered with the regulator. Indian Realty Exchange.