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O Assess your monthly income after taxes for you and your spouse or parents (if purchased in
joint name with parents).
O Provide for credit card debt and other loan payouts if any.
O Provide for monthly household expenses.
O Set aside around 5% for contingencies.
O Housing Finance Institutes (HFI) will fund only between 85-90% of the property value. Add up
your savings since you will need to make down payment of 15% to 20% as your contribution.
O Check if you have enough for the E.M.I's Plus maintenance expenses. Don't forget to budget
for the tax benefit you get on your home loan repayment. Typically, HFIs will ensure that your
EMI's doesn't exceed 50% of your take-home pay, post-taxes and other deductions.

  

O Screen HFIs or Banks (Lenders) on total financing cost and convenience.


O Get pre-approvals for your loan from short listed lenders.
O Check out property fairs for better rates.
O Get a list of pre-approved builders and properties from lenders. Borrowing will be a breeze if
the property you zero in on is on your lender's approved list.
O Your builder should be able to assist you with the loan formalities.

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When you go house-hunting, you'd like to consider;

O Travelling distance to your office or work place.


O Distance to your kids schools and nearest point where the kids can board the school bus.
O How far are the hospitals and medical help?
O The quality of civic amenities (water, electricity, waste disposal etc).
O How accessible are social amenities like markets, super markets, clubs, parks. Of course, the
ideal in the above terms may not match your budget.
O Match your budget with your requirements and what's available. Make the necessary trade-
offs.
O To know what's available, scan builder¶s advertisements, check out property shows, ask
friends or relatives. The advertisements and brochures may not give you the complete picture
of projects or builders.
O Once you have finalized the builder and projects, check the past record of the builder and visit
their completed projects. Talk to the owners regarding the project quality and the builder¶s
after sale service.
O Quality to match your budget may be the most important crieteria. A house purchase is for a
life time. Quality should not be compromised.
O Be aware that there are different quality segments in apartments. starting from low budget to
super luxury. See the project and builders completed projects to assess which category your
targeted apartment is classified rather than depending on builders brochure.


   

O Shortlist and visit the Builders.


O Request the builder to show you the original title deed of the project property. Check if the
property is mortgaged by the Builder. If it is mortgaged, ensure that the Builder gets you an
N.O.C from bank clearing your apartment and undivided share of land from mortgage.
O Check and verify if the Building permit, N.O.C from Fire Department, Airport Authority (if
applicable) and Pollution control Board are obtained and are in order.
O See if the project is approved by all leading housing financial institutions.
O Request a break up statement of additional expenses like stamp duty, KVAT, Service tax,
Workers Welfare Board payment, Electrical and water connection deposits and charges,
taxes and levies etc.
O Pay the booking amount and make provisional booking of your apartment. Get allotment letter
for your chosen apartment. Check when the agreements will be ready for execution.
O Sign the agreements

                  


 


 
A recent survey has revealed that about 67% of home seekers end up buying a home that doesn't
accommodate their needs and aspirations. It's like a bad marriage where the couple is forced to
adjust to the circumstances. You have to be extremely discerning when you search for your dream
home. A few handy tips are given here to help you zero in on your dream home. Happy home hunting.
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The paramount concern when you relocate to a new home should be convenience. The location of
the home should place you near to your work place with urban conveniences like shopping and public
utilities within walking distance. Your kids must be able to catch the school bus at your gate. If the
access road to your home doesn't have at least 5meters width, it would be difficult for two vehicles to
pass comfortably. Please also check out that the area has adequate power and water supply. Check
out these factors before buying a new home.
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If you opt for a group housing project like a villa or a high-rise apartment it will normally take 18 to 30
months (depending on the size of the project) for the project to be handed over. Since the completion
of the project is dependent on factors like timely payment of other buyers and the resourcefulness of
the builder, you should always go for a builder who has a track record of timely delivery. More over,
any delay in delivery will accrue pre - EMI interest on your housing loan,. Not to say of the agony of
your dream eluding you indefinitely.
 
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Where you are born is not decided by you. But where you live is at your sole discretion. When you
relocate to a new home, make sure the neighborhood is your own social status and liking. When you
opt for an apartment or villa from a reliable builder, worries about good neighborhood are pre-empted.
The community you live among will be of your own liking. Your family members will have an enjoyable
social life. Your children will have good company to play with.
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The concern for your children's future is understandable. When you decide to relocate to a new home,
make sure that the home environment is conducive for your children's growth. A little greenery and
recreation facilities to play around, and a few friends to share some meaningful time together make a
lot of difference. Opt for a home from a reliable builder who provides amenities like children's play
area, landscaped surroundings and round-the-clock security to the community. Your children will have
friends of their own age group to interact with. Even if both of you are working parents they will be
safe at home.
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Most households today are nuclear families. If both parents are working and the kids are school
going, nowhere else will you find security available with a group housing. The security arrangement in
an apartment complex will ward off all unwanted salesmen, beggars and suspicious strangers. Even if
the family goes out of town for a few days your home will be safe and secure.
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When you meet a new acquaintance, after the niceties the inevitable question arises. "Where is your
home?" Your address silently says volumes about your background, your achievements and the
personality you are. If you are an owner of a prestigious home address your prestige naturally rises.
When you own a new home, be careful about choosing the right address which will grow in value and
stature over time.
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Your home is your chosen habitat. It is much more than four walls and a decent roof. If your windows
open to intrude a neighbor's privacy or vice versa, where is the peace of mind? If the layout of your
apartment obstructs free flow of natural light and air, where is the cozy comfort you've craved for?
Only a builder specialized in community housing can design and deliver spaces to ensure privacy,
creature comfort and an airy feel. Before deciding on your home, check out design and layout and
carefully go through the specifications and dimensions of each space.
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There're some unscrupulous operators in the real estate industry, who either mortgage the land or sell
apartments at a plot which doesn't have a clear and unencumbered title deed. Once the construction
is over, you might get the possession of the apartment unit, but your ownership papers may have to
wait till the builder clears off all liabilities. Even the repossession of the property by a financing
institution and eviction of the tenants are a distant possibility. Before purchasing an apartment,
demand for a copy of the title deed, and once you make the necessary payments get your rightful
undivided share in the land registered in your name.
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Constructing bridges and buildings is one thing and creating a home is another. Only a builder who
has the experience in housing projects and maintains consistent quality standards can deliver you a
home which you can live peacefully with. Check out whether the builder has quality accreditation like
ISO 9001. A good builder will have a better seasoned engineers to oversee every aspect of
construction in compliance with the stipulated norms. Apart from the structure finishes and fittings
shall be of higher standards, installed by skilled workforce.
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Every apartment complex looks good and inviting when it is new. As the years pass by the vagaries of
nature will take their toll on the building. It all depends on the construction quality and periodic
maintenance of the structure and premises to keep it as good as new for many years to come. Only a
professional builder adheres to quality standards in the materials and skills used in creating a project.
A reliable builder also ensures the formation of a proper Residents' Association with adequate
resources and planning to take care of the future maintenance and upkeep of the community facilities.
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If you already have a nice home, most likely you will be averse to the idea of owning a second home.
If you consider the returns on a home investment, it is definitely food for thought. If you deposit your
savings in a bank. Your investment will yield only margin returns. The unpredictable fluctuations of the
stock market and risks involved make it an unattractive option. When you invest your money for a new
home , you can definitely earn around 7% through rentals. The value appreciation of the property will
add another 8% to your investment every year. Even if you avail home finance, part of the mortgage
repayment will be taken care of by rental earnings. Down a few years you will have a substantial
wealth to bequeath to your children.
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Money is not a stumbling block any more to realize your dream home. Now easy home finance is
available from banks and housing finance organizations. Interest rates are as low as 7% for a tenure
of 20 years with Equated Monthly Installments just RS. 976* onwards. When you buy your home from
professional builders, most likely all their projects will have the approval of leading financing
institutions.
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Some people have a notion flat independent house is superior to community housing. When you dwell
deep into the pros and cons of both, you'll naturally opt for an apartment or community villa. Owning
an independent house in a good urban residential area will cost you the skies. When you opt for an
apartment from a professional builder, you will get a home in a peaceful residential area for a fair
price. Besides there will be common facilities like round-the-clock security, generator back up,
landscaping etc shared among the community. You can really enjoy a comfortable urban lifestyle for a
nominal price.
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Every housing project looks beautiful on paper. Those who have undergone the travails of building a
room would understand the task of building a high-rise apartment or community villa. Before you buy
a home from a builder, inspect a few projects of the same builder to understand the quality and
standards he offers. Better still, ask some residents, about the living standards. Because you don't
buy a home every other day.
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Yes, such a thing exists when you buy a home. The tax laws allow incentive to encourage people to
buy homes. So make full use of them.
Incentive 1 : Interest on housing loans are exempted upto a ceiling of Rs. 1,50,000 (sec 24)
Incentive 2 : A Deduction of Rs. 1 Lakh from taxable income is available for home loan principle re-
payment.
Incentive 3 : Exemption from Capital Gains (sec 54f) : Capital gains resulting from the transfer of any
capital assest not being a residential house, will be exempt of the net consideration is used to
purchase a residential house within a period of 1 year before or 2 years after the date of transfer or
construct a residential house within 3 years after the date of transfer.
Tax Incentives - Make your Home Loan cheaper than you think
How can working professionals plan thir home loan to maximise their interest and tax savings?
From the point of view of economics, the ideal loan investor should avail of is Rs.20 lakh. The rate of
interest on this amount would be just about 4.28% per annum only.
Let us presume that a senior executive receiving a salary of Rs.5 lakh per annum is interested in a
loan of Rs.20 lakh. The rate of interest charged on this loan is 7.5% per annum. Thus the total interest
payable for one year on Rs.20lakh comes to only Rs.1,50,000. The maximum amount of interest that
will be allowed as a deduction while computing the income of the individual from all sources taken
together is restricted to a maximum sum of Rs.1,50,000/- per annum.
Thus, the entire interest payment of say Rs.1,50,000/- would be allowed as a deduction to this
executive from his salary income of Rs. 5 lakh. This implies that the executive would be saving
income tax on Rs.1,50,000/- being the interest payment. The tax saving would be at the rate of 33%
being the maximum marginal rate of income tax applicable to him
Thus, the saving on account of deduction of interest from the total income for salaried executive
comes to 49,500. Hence, we find that from the total interest payment of Rs.1,50,000/- payable by the
executive on loan of Rs. 20 lakh @ 7.5 % interest has actually been paid by the income tax
department by granting him full deduction in respect of such interest payment on loan. There by the
net outgo of interest on the loan comes to Rs.1,00,500/- (Rs.1,50,000 - Rs.49,500). Thus the net
impact of interest on the executive's loan of Rs.20 lakh comes to Rs.1,00,500/-. This in fact, is just
5.02% rate of interest per annum. If we go a step further and take into consideration the impact of tax
saving as a result of the deduction from taxable income on account of home loan principal repayment.
We find that the said executive is able to save income tax to the tune of Rs. 30,000/-. Hence from the
above amount of Rs 1,00,500/- if we deduct Rs.30,000/- the net impact comes to a mere Rs 70,500 -
Rs.1,50,000 interest Rs.49,500/- tax saving on interest payment Rs.30,000/- cash flow saving as a
result of principal repayment.
Thus, on a total loan of Rs.20 lakh, the net impact of out flow after tax comes to Rs.70,500/- which
means effective interest rate of merely 3.525% in respect of a Rs. 20 lakh loan.
    
The Non-Resident Indians (NRIs) are recognized under the Foreign Exchange Regulatory Act, 1973.
Every bank and housing finance companies follow the RBI guidelines to define NRI -
"An Indian citizen who holds a valid documents like Indian passport and who stays abroad for
employment or for carrying on business or vocation outside India or stays abroad under
circumstances indicating an intention for an uncertain duration of stay abroad is a NRI."

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Eligibility
RBI directive for NRI home loans
Repayment options
Home loan tenure
Tax benefits
Documentation
Indian citizens who stay abroad for employment or for carrying on business or vocation outside India
or for any other purpose in circumstances indicating an indefinite period of stay abroad;
Government servants who are posted abroad on duty with the Indian missions and similar other
agencies set up abroad by the Government of India where the officials draw their salaries out of
Government resources;
Government servants deputed abroad on assignments with foreign Governments or
regional/international agencies like the World Bank, International Monetary Fund (IMF), World Health
Organization (WHO), Economic and Social Commission for Asia and the Pacific (ESCAP);
Officials of the State Government and Public Sector Undertakings deputed abroad on temporary
assignments or posted to their branches or offices abroad.
Documents required for Resident Indians as well as for NRIs for getting Home Loans are different in
some respect. Home loans for NRIs are available for construction of new house / flats, purchase of
old house / flat addition / alteration to an existing house and repairs / renovation etc. NRIs can avail of
loans by mortgaging an existing residential property. However, for availing home loans, NRIs have to
fulfill certain conditions according to provisions of the Income Tax Act. They should have stayed in
India for a period of 182 days or more within an assessment year or they should have stayed in India
for at least a total of one year or more.

  

NRI's staying abroad for employment or for carrying on business or vocation outside India or for any
other purpose in circumstances indicating an indefinite period of stay abroad are eligible for NRI
Housing Loan. In addition, Government Servants posted abroad on duty with the Indian missions or
deputed abroad on assignments with foreign Governments or regional/international agencies qualify
for housing loans. However, persons of Indian origin, holding foreign passports are not eligible to
obtain loans from Housing Finance Companies.

   
The term Vaastu is a Sanskrit word which means "Bhu" or the Earth and is the underlying stratum of
existence.As per a Vedic Hymn "Vastu reva Vastu", all material forms of the Universe are all
energies.Vaasthu sastra states that every energy has life and nothing in universe is left out without
any vibration.Every material in the Universe radiates some energy at its own specific frequencies.
This energy may be positive or negative. Positive energy is beneficial and negative is harmful. Vaastu
aims at maximising the generation and accumulation of positive energy around the humans and
minimise the negative energy.
This is done by ensuring the abundance of the following :
Light - Sufficient natural light for comfortable living.
Air - Pure fresh air continuously blowing in and out of the house.
Water - for drinking and living.
Energy concentration of different shapes and forms by using proper positive material.
The proper alignment of the rooms with proportionate sizes harmonizes the energies and it gives
peace of mind to those who live in that premises.In short vaasthu harmonizes the cosmic forces and
makes life pleasant to live.

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