Big fortunes are spent in property investments. Invariably, owners are emotionally connected with their immovable assets. In case their investment goes astray, the loss would not only be monetary but also sentimental. This means the job of a property owner does not end when he receives the possession of a priced asset; this property will have to be perpetually guarded, too. To be sure, there are legal remedies available for you in case your land is encroached upon ─ various provisions of the Specific Relief Act, 1963, and the Criminal Procedure Code safeguard the interest of property holders. However, one would certainly prefer prevention to cure. Let us see how we should go about it.

Keep record of property documents

First things first, property purchase-related documents establish your ownership of a property. As a buyer, you really do not have a scope to go slow in matters of getting all the papers in place as soon as the purchase is done. Apart from the sale deed and conveyance deed, key documents also include mutation and registration of the property. You may also have paid taxes on your purchase. These documents will also support your ownership over a property. In case you used bank finance to fund the purchase, the papers provided by the bank would also solve the same purpose. Simply put, the government should have it in its record that this specific property legally belongs to you. No matter how absolutely tiresome you find the task to be, perform each move with great precision. This is an area where you cannot afford to go slow.

Be vigilant 

Consistent vigilance might be difficult in case you live in one location and own a property in another. The task would prove to be even more difficult if the property is located in another city altogether. Going forward, the task would turn out to be more daunting if you have to keep an eye on a property that you own outside of the country. It would be ideal to make personal visits to your property as and when you can. In case that is not a possibility, you could hire people to take care of your property. There are dedicated service providers to do that today. You could also ask your friends or family members in that city to watch your property for you.

Create a fence around the property 

You are the legal owner of a certain property, and it is a must to let the world outside know about it. In case you have bought a piece of land and plan to carry out the construction in future, it is imperative that at least a fence is created to mark your territory. As a warning for trespassers, there should also be a big board declaring that this property belongs to you. It would only be better if a temporary living space could be created to rent out. Apart from earning a monthly rent, you would also have some permanently to take care of your property.

Ask neighbours to keep watch

We live in times when one hardly has any inclination to mingle with one's neighbours. Where is the time to socialise in your busy life? Strange as it may sound, we need our neighbours more today than we did earlier. After all, they are the first ones to know that happens to us, good or bad. If a neighbour is able to keep a close watch on your property, you will have no reason to worry about your property. At the time of buying the property, you could organise a small function and introduce yourself to your neighbours. Share with them the fact of the matter, and seek their advice. You could lay your trust in the person who you think is responsible enough and willing enough to help you, and entrust him with the responsibility of your property.

Also Read: SC Ruling To Make Adverse Possession Tougher

There are many aspects to be judged while buying a property, especially when it is for end-use. One of such things is the floor plan. There are many things and elements that contribute to making a good floor plan. Here are few tips to differentiate between a good floor plan and a bad floor plan and how you can identify these:

Room size

Prefer a rectangular room over a square one. A good floor plan is the one that has a room of at least 12 ft length and 10 feet of width. This is based on the fact that the typical bed size in India is about 7-9 ft in length. An extra 5 ft space should be left for free movement in the room as well as placement of other electrical equipments. If you are planning a master bedroom, the bleeding space should be at least 7-10 ft along with a master bathroom and a walking closet.

Bathrooms

This factor completely depends on the homebuyers' requirements. Usually, a 1BHK has 1 attached bathroom while a 2BHK flat might have two, one attached to the room and the other one with the hall. For a 3BHK flat, the third bathroom can be replaced as a storeroom, if you have a small family. It is advisable to keep the common area bathroom functional for guests.

Balconies

Area used for constructing the balconies is not counted in the Floor Space Index (FSI). However, builders add this in the carpet area to manage loading. Therefore, prefer a larger balcony rather than multiple small balconies to ensure healthy ventilation.

Kitchen

A good floor plan is the one that has an open kitchen as it offers easy access to other parts of the house and makes the common area look spacious. Ensure the dining area and kitchen are side by side as these are the most used areas of the home and should have a convenient approach.

Furniture

Any furniture in the residential space is kept at least 3-4 ft away from the wall. Ensure that there is enough space for placing furniture in different angles to avoid congestion.

Common area

Space used by protruding cupboards, big gateways are a waste and are of little use in mid-sized apartments. Instead, prefer built-in furniture such as tables or desks that can also be doubled for iron table, convertible sofas, shelves etc.

View

For a pleasant view of the home, keep the kitchen away from the entrance. The guests should have a view of the living room interiors and there should be no blockage in the inside view.

Loading

Developers usually charge the home buyers as per super area but actually the only usable area is carpet area. The difference between carpet area and the super area is known as loading and is usually 30 per cent of the total floor plan area. Homebuyers should ensure that the loading should not be more than 30 per cent and less than 25 per cent as the common area spaces get compromised.

Also Read: 5 Essentials If You Are Looking Out For A Millennial Homebuyer

You are already aware that if you make your wife a co-applicant in the application form, your eligibility will increase even if she is only a homemaker. In case she is earning, she can support you with the EMI (equated monthly installment) payments — or you could choose to make the payment while she bears the monthly expenses. Additionally, both of you would be able to claim tax deductions on the loan repayment. You, we are certain, are also aware that you would be paying much less as stamp duty in case you decide to register the property in the name of your wife. Across Indian states, women pay lower stamp duty for property registrations. Basically, there are so many other ways in which your better half could help you while the two of you look for a property.

Before it all starts

Being married is a big responsibility but this also means more support. You would not have to entirely depend on your own saving to make the down-payment for the house; your wife would be there to share the burden.  Apart from your own parents, you have an extended family — your in-laws — that would be there to support you in every possible way. In fact, you could ask these extended family members for a loan to increase the amount of the down-payment. Most certainly, you will not be paying an interest on the same and will be able to quickly repay the amount (in case you do pay an interest, you will be able to claim tax deductions). Keep in mind at all times that you will have to pay double the money you take from a financial institution as a loan. At a later stage, you could use your combined savings, yours and your wife's, to pre-pay the outstanding loan. When compared to someone who has to shoulder all this responsibility alone, you will be able to pay off the loan much faster, in a much easier and smoother manner.

You grow with her

Right after you introduce yourself and tell the broker you want to initiate a house purchase, the first question you would encounter would be about your marital status. Unfair as it may be towards those who are single, this broker would take you more seriously in case you are married and have children. This has much to do with the widely-held belief in our society that married people are more responsible. As a single buyer, you can always sense the overt uneasiness people feel while taking you seriously as far as home purchases go. And, wait, we are not speaking of social beliefs alone. We can bet you have often wondered why banks insist on making your spouse a co-applicant in your home-loan application. It is not always the case that you need to have her on board to raise your loan eligibility; your own should be is sufficient enough to get you the amount you are looking for. Banks, too, seem to believe in the logic as the society does. Their investment would be much safer if there is another person to pay off the loan in case the principal borrower fails to do so. You should have no doubts about the ways in which your better half have the capability of supporting you.

 She knows better

Earlier, we did focus only on the financial benefits of having your wife on board on your house-purchase plans. Now, we must see why you must keep her close at all times while the details are being worked out. As the man of the house, you may know better about the advantages a particular locality offers, as the woman of the house, she would know if the house is built in a way that suits your requirements. The parks and greenery nearby might have impressed you but she would be in a better position to tell whether the property has proper ventilation. The manned entrances and security cameras must have assured you of the safety and security of the building, but her womanly instincts would also help you decide how safe the neighbourhood actually is. We suggest you go by her instincts on that. She obviously knows better.

Also Read: 10 Things You Should Know About Stamp Duty On Property Purchase

Long gone are the days when people had to think twice before moving from one city to another. So dreaded used to be the notion of resettling that greater employment or prospects could not move many people. Today, the contrast is nothing less than prominent. Citizens of today are quite willing to switch cities in order to explore better opportunities. There is no lack of service providers which help these citizens in transit to settle in their new cities of residence. If you are looking for a rented place, there are portals that help you do so, free of cost. There are movers and packers who would quickly bubble-wrap all your precious stuff and deliver it to your new home in record time. In case you want to buy new articles of furniture, there are service providers who would do the job quite quickly for you — long gone are the days when you had to wait for several days for a new sofa or bed to arrive.  From delivering grocery to fixing a leaking tap, online service providers do it all for you, and, more importantly, at costs that are often unbelievably affordable.

Let this ease of doing business, however, not make you less careful. Showing a laid-back approach is no choice because you sit in the capacity of the monitor, and not an executor. We all agree on the point that doing a job ourselves is much easier than making someone else do it as efficiently as you do, do we not? Now, here is what not to do when leaving behind one city for another:

Be off guard

Be present and stay alert while the movers and packers do their job. Carefully make a note of all the things that have been picked and that are to be delivered to your new place. Make sure you sign an agreement with the service providers which states that in case of any loss, it will be liable to compensate you. Do not treat these papers as an academic exercise and keep them close, carefully. Also, try to carry your valuables along with you – your important documents, jewellery, etc. Once your goods are delivered, make sure each and everything has arrived. Make the final payment only after you are satisfied.

Be in a hurry

Let bright prospects of future not blinker your current vision. Often, so driven are be to be in a new place that we are in a great haste to leave. If we are going for a better job, we would not want to serve the entire three-month notice period with our current employer. We also do not care if the current landlord is unhappy about our sudden announcement to vacate the premises shortly. All we can think of is a greener pasture. This driven behaviour could prove to be detrimental to us on several levels. Burning the bridges, personal or professional, is one of the worst decisions you could take for yourself. And, it also knows you lack a long-term vision. You may have to come back to this city someday, one day when it offers you a better job or a better environment. Be mindful of that fact.

Leave pending dues

It is not that you willfully default on your payments, but, lost in the flood of the changes, you may have forgotten to pay your utility bills or the money you owe to your local grocer. In case you were living on rent, you have to sit with the landlord and calculate the cost of exit --- you may have given a security deposit which may not enough to repair all the damages caused during your stay in the house. You may have taken a loan from a friend and it may have slipped your mind to pay him. There are so many big and small obligations that you to meet in your current city of residence. In light of that fact, it would be better to make a list of all your dues, and repay them before you leave. You would not want people to call and complaint after you are gone, would you?

When one finds the right apartment, one tends to sign the lease in a hurry but this excitement often leads to mistakes. Before committing to any lease for rent, you should be sure about what you are getting into. It’s very tempting to lease a new apartment while overlooking important issues related to provisions and other details. While most agreements end well there are instances of many people having to face the heat due to their ignorance of the clauses in the agreement. To ensure a peaceful occupancy and a simple exit, you should check out the following things before signing up the lease.

1. Is the condition of the property documented?

While renting a car, you will always look for any pre-existing dents and have them documented. An apartment is the same. Don’t sign the contract until you are absolutely satisfied with the condition of the property and in case of any deficiencies, have them documented. A thorough home inspection is important because it helps you determine if everything in the house works or not, if there is any damage from before and making notes of such deficiencies if present. Your landlord should provide you with a list of all the components that he has fitted into the house before you have taken over. It should include proper itemisation, along with separate lists for separate rooms. The kitchen and washrooms should have especially detailed lists, along with the acknowledgement of the working condition of each of them.

2. Is there a possibility of you having roommates?

You may believe that it’s common for people to live with roommates in rental houses and apartments but that does not mean it is something all landlords allow. If you sign a lease with a roommate too, a situation might arise wherein, they have to move out and someone else will want to move in. You should not assume that it is alright to do so without the permission of the landlord. Get to know what the rules are. The same advice should be followed for subletting too.

3. Are there any clauses for landlord inspection?

Almost every lease has some sort of clause that allows the landlord to inspect the property once you have moved in there. However, the terms and conditions of that inspection vary hugely. You should be especially careful of any language that enables the landlord to visit the property for an inspection unannounced and more careful for any language that provides for unlimited inspections. As you can probably imagine, it will be inconvenient if this happens regularly. You should try your best to keep these inspections limited and never without prior and proper notice, along with a suitable reason. Most places have laws that provide substantial rights to people who live in rental properties. You should look out for any provisions added with subtlety into the lease that attempts to restrict those rights.

It would be wrong to assume housing societies are preferred by buyers only in big cities where space is premium and buying an independent residence might not be an option. Even in Tier-II cities of India, group housing is gaining popularity for the benefits it offers homebuyers that are otherwise not available. For one, living in a housing society means there is round-the-clock security service available for your benefit—in an independent home, you will have to pay a bomb to be able to do that. There are so many other pressing arguments that could be made in favour of investing in housing society flats. Those who have already formed an opinion in favour of society flats and are eager to invest, must now note that they would need to acquire a number of NOCs, the short form used for no-objection certificates, to buy such a property.

Let us have a look at those documents.

One of the many benefits of living in a housing society is that you get to enjoy a great number of amenities there. However, to provide those amenities to you, the developer needs to acquire several NOCs himself—from the construction stage to the handover-phase, builders have to get at least 50 approvals from various government agencies. If your developer does not have an NOC from the electricity department, for instance, he would have to largely depend on private sources to supply power. The same is true of water, too. While all these things could be privately managed, they would shoot up the bill for the developer who would pass it on to you in the form of hiked maintenance charge.  Make sure your developer has all the approvals in place and there are no ongoing issues between him and any government departments.

About under-construction property

In case of an under-construction property, an NOC must also be taken from the banks that are the financers of the project. This would ensure they will not be able to challenge the sale in future. In light of several recent developments where builders have gone insolvent and banks are dragging them to the court to recover money, this becomes an all-important document. In case of any future trouble between the two parties, this document would safeguard your interest as the buyer.

Importance of RWA

The law makes it mandatory for the housing societies to form a residents’ welfare association. These legal bodies enjoy great power in terms of sale and purchase of property. As a home buyer, you will also need to get some NOCs from these bodies as well. In case you are buying a resale property, an NOC by the RWA is required, saying it does not object to the ownership transfer. In case you are taking a home loan, the bank would demand this document before sanctioning the loan.

Secondary market

The case of a resale flat where the seller is still servicing a mortgage, his bank would have to issue an NOC that all dues with it have been cleared.

Owning a property is a 'dream' that most of us nurture. And, as soon as we can, we would want to enter what is perceived as our own personal heaven on earth. The sentimental value attached to owning a home often overshadows the materialistic point of view — that is, the money involved in making this dream come true. When the dream becomes a reality, the rising expenditure starts pinching, often forcing you to think whether the 2-BHK apartment you bought after taking the hefty loan that you will spend your lifetime repaying is worth it. This is why rather than being completely emotionally driven, you should also focus on the money part in the matters of property purchase.

Now, how can you keep the burden as low as possible?

• Keeping the loan amount low: In the good old days, they used all their retirement money to buy a house. While that phase might be passé, there is a lot you can learn from the old ways. Back then, people did not have to take loans to fund their houses. They certainly did not enjoy the many tax benefits and the luxury of living in their own homes early in their lives, but they also did not struggle with a lifetime of loan burden. They also did not pay huge money as interest on their home loan amount. The logic that you become a house owner while you are still young may also be overrated in a way. Technically speaking, you do not become a house owner till you repay the bank every penny that you have taken as loan. Now, though there is no need to wait till you retire before you buy a house, there can be a middle path. You should try to keep the loan amount as low as possible. For this, you should try to arrange a large part of the property cost from your own savings and take a home loan to only bridge the deficit, if necessary.

• Family before bank: They tell you the benefits of availing of a home loan are many. The interest rates are low at present, the tax benefits are too attractive to ignore, etc. But even a naïve buyer knows that he has to pay off everything with a huge interest, and what is termed a 'benefit' may not actually be that beneficial. So, before you decide to approach a bank with your home loan application, do weight the other possible options that you have. Consider taking a good look at family resources and savings and asking family members if they can help you with a loan. Remember that a borrower is busy paying off only the interest for a large part of the bank loan tenure. If you take the loan from family, it would be much easier to pay the debt.

• Space or convenience? The benefits of living in bigger cities are many and we all want to have a piece of them. This is why we are willing to pay any price for them. However, often ignored is the fact that in big cities you pay a huge price for a tiny space, which might not serve the purpose as your family expands and your needs change with time. The bad traffic conditions in your large city will bother you more as you grow old. Do think whether the quality of air that you will have to breathe now and, more importantly as an older person, is worth the price you are going to pay. Smaller cities, by comparison, have bigger spaces to offer for the same amount, or even less, their traffic conditions are better and the air is less polluted. 

There are a variety of reasons, because of which homebuyers proceed to cancel after booking flat with his builder. In many cases, this buyer starts having second thoughts about his choice. The buyer’s plans of going ahead with the purchase might also be changed because of sudden changes in his financial position (loss of employment, for instance). The buyer may also want to back out because he finds out problems with the project or the developer. Now, whatever your reason be for cancelling your property purchase plans, here are certain points you must take note of, if you are in such a situation.

The builder is liable to pay you the entire amount if the agreement is not registered

Legally, the developer cannot deduct any money out of the advance payment you have made for the booking till the time a builder-buyer agreement is made and registered with the sub-registrar.

Sample this.

A has given Rs 3 lakh as booking amount for a flat worth Rs 1 crore to B. In case A changes his plans and goes for cancellation, B will have to return him the entire amount.

At this juncture, it is important to note that a builder-buyer agreement is not created until the buyer pays at least 10 per cent of the property value. After that amount is paid and the agreement gets registered, the cancellation gets costly for the buyer.

In case the builder refuses to give back the booking amount

The buyer will have to move the state real estate regulatory authority or the consumer forum to seek relief, in case the developer refuses to pay the booking amount.

The builder will forfeit the entire booking amount if the agreement is registered

In a scenario where the agreement is registered, the builder gains the legal position to forfeit the entire amount. Things to that effect are also mentioned in the builder-buyer agreement. The buyer would lose more than the outstanding money, which might include registration charges and taxes.

While you are at it

Under the provisions of the Real Estate (Regulation & Development) Act, 2016, a buyer does not attain the position of an “allottee” till the time a builder-buyer agreement is registered, and hence enjoys only limited rights. This is why the process to get the refund would get complicated, if due diligence is not shown by the buyer while he is out to book a property.

For instance, it would be a grave mistake to make any payments, no matter how small, without having it documented. Ask the builder to give you a signed receipt for the booking advance. It is also strictly advised that all payments be made to the builder through online channels so that there is a record of the transaction.

What happens to the excess amount? 

When a buyer books and flat and then eventually cancels it, but benefits by receiving a higher amount than he initially paid from the builder, the extra money will be treated as capital gains in the tax parlance. This was laid by the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT). The tribunal also made it clear that the excess income thus earned will not be treated as long term capitals gains and be treated as a tax-free income, unless the holding period conditions and other conditions are satisfied.

Even as a large number of people continue to rush towards India’s mega cities every year to join the existing workforce there, many perfect-to-rent homes continue to lie vacant.

“Weak tenancy laws are cited as the prime reason why investors fail to generate any income on their rental properties and rightly so. In the name of tenancy law, the government recently came up with the Model Tenancy Act, 2019, the provisions of which are primarily ‘model’ in nature and the law has no binding effect on states, which have the final say in the matter,” explains Brajesh Mishra, a Gurgaon-based lawyer, specialising in property law.  

While government policies and low rental yields could partly be blamed for such vacancies, the property holder’s individual choices also play a role in their prized asset not attracting enough tenants.

Are you asking for rent higher than your neighbours?

If you are looking to monetise an asset, expectations should be in line with the property’s real potential. No matter how wonderful your property is, it won’t generate a higher income than what similar rental properties in the area garner. Be mindful of that fact while setting the asking price.

Are you letting people know your property is available for rent?

While overestimating you rental property is a flaw, be aware that the property won’t find itself a tenant simply by being there. You have to let people know about it. For that, consider taking assistance of a property broker or register the house on online sites that help you market it, often free of charges.

Are you setting too many conditions?

This is another reason why your rental property stays vacant despite its worthiness. Even if they happen to be temporary owners, tenants would like to enjoy the privileges and freedom a home offers. They cannot be expected to follow the typical hostel-like rules, the greatness of the property notwithstanding. They won’t do it more so because so many other property owners are quite willing to offer them the freedom they are looking for.

Are you being too picky?

There are instances of landlords refusing to let out their property to people, based on food and life choices, besides religion. While such practices are illegal, they would also substantially reduce your options. If generating rental income is the target, you should consider broadening your perspective first.

Are you taking enough care of the property?

This is a common complaint among renters in India. Once the landlord is able to find a tenant for the property, they forget all about its maintenance and the on-time rent payment remains their only concern. This discourages the tenant and they often move out at the very first opportunity.

Sometimes, it is the other way around, where the previous tenants left your brand new property in tatters and you don’t have the budget to make corrections. Be advised that you will have to discharge that responsibility sooner or later. You can start saving for that purpose. You can remind yourself of the one golden rule of any business — only money earns money. 

Most of the knowledge we acquire about property and related matters is from word of mouth. And, along with the right piece of information, some wrongly-held beliefs also creep inside our system. Here, we bust five such property-ownership related myths.

A co-owner is liable to pay taxes

Under the provisions of the law, you are liable to pay taxes only if you have made a monetary contribution towards the same. For instance, if your husband buys a property arranging the funds all on his own while making you a co-owner, you are not liable to pay taxes. The same is not true if you have made a contribution in any form, home loan included. 

Also read: Common Myths About Property Tax Payment Busted

Joint tenants and tenants in common mean the same thing

The answer is they are not, and depending upon the ownership type mentioned in the conveyance deed, property succession will take place. For instance, if you own a property with your spouse as joint tenants, at the time of the demise of either, the ownership of the property will transfer to the other under the Hindu Succession law. However, if the two of you are tenants in common, the share of the dead party would be divided among the legal heir under the provisions of the law. Alternatively, the division might also take place according to the will, in case the deceased has left one behind.

You might lose ownership of ancestral property if you are absent

Your physical absence can, in no way, not temper with your legal right over an ancestral property. The same remains true even if you are not paying taxes for the same. You are liable to claim your share as and when you want to. You may never in your life have visited your ancestral property while your, say, cousins might have been residing there all their lives. This will have no effect on the property ownership pattern.

I can decide on behalf of my spouse when I sell the property

You may have added your wife's name in the home loan application only to increase your credit eligibility and made her a co-owner, too, to give her an impression of security. But, she by defaults gets half the share in your self-acquired property under the provisions of the law. This means you will need her approval in case you want to sell the property, etc. It would be a mistake to consider this paperwork an exercise without much impact.

I get a share in my parents' property by default

In case this property is self-acquired and your parents decide to confer the ownership through a will to someone else, you will have no legal right over the asset. The same is not true in case of an ancestral property. Though a gift deed, a father can give this property to a third party in his life time. Through a will, the property ownership is transferred after the demise of the donor.

Also read: These Are The Myths About CIBIL Report

If you are an entrepreneur, you are your own boss. You are independent and do your dream work but it also comes with many challenges. One of them is getting a loan, especially if you are buying a home. Many self-employed people do not qualify for a home loan because they are unable to clear the lengthy due diligence a bank conducts to understand the person's eligibility. Here are some challenges that a self-employed person faces when taking a home loan:

Seasonal/inconsistent income

One of the key reasons a lender might not approve a home loan for a self-employed individual is their seasonal or inconsistent income. Many self-employed are in a business that gives them income for a few months and few months of no business. While some have inconsistent income every month, depending how the business has performed that month. This keeps banks at bay as they see the loan seeker’s capability of paying a fixed equated monthly instalment (EMI). In case of self-employed it is inconsistent.

In such a case, a bank approves of the ones who can give a large amount in down payment ensuring their EMI is small.

No book-keeping

Many self-employed people do not have registered businesses and hence, do not keep books. A registered business, with all the book-keeping, including tax fillings of past few years is what banks require to ensure that you are capable of paying the monthly instalments. The banks may ignore a bad year or two, however, no books at all can be a deterrent.

Keep the books, all the profits and losses over the years are important, in case, you want to get a home loan for your property. You could also hire an accountant to do that job for you, which makes it seamless for a lender to do a due diligence before sanctioning your home loan request.

Inconsistent tax filing

Many self-employed individuals have inconsistent tax filing. It can be a challenge in later stages when these individuals want to take a home loan. Your tax-paying capability talks a lot about your income.

Banks check your tax returns statements of past two years to verify income.

Make sure you are consistently paying your tax and keeping the required forms intact. Present them to the bank to make the home-loan-approval process smooth.  

Are you one of those prudent people who like to test the waters before deciding to jump into it? That is the ideal way to be sure about the things you plan to do. Apply the same strategy while making property investments.

Here are some tips to get you started:

• There is no stage during the entire process where your communication skills would not be of help. Starting from your property advisor to your bank representative and to the seller, everyone will be more willing to help and offer you better deals if only you know how to put your point across to work the terms in your favour.

• There is nothing like no one-size-fits-all when you enter the property market. A property that may be suitable for your friends or co-workers may not be suitable for you. It is of utmost importance to examine your financial standing as your prepare yourself to make the property purchase.

• Even after you have apprised yourself of everything the real estate market consists of, it would only be better to seek the help of the experts. A property advisor is in a better position to know of a certain thing that you as an individual buyer do. The same is true of lawyers, chartered accountants and interior decorators. You will never regret the decision to do so.

• Most people will tell you to pick the best brand while deciding on a developer. However, picking the best brand may not be the best strategy. The best strategy would be to go for a developer that has to maintain a good track record, someone who will not disappoint you by backtracking on his promises.

• The most important factor while making property investment is deciding on the right locality. This may seem easy initially, but it is actually quite a complex task. You have to factor in many things before you decide on the “right” location. Experts are of the opinion that even if a property in a good locality is comparatively not as good as a property in a comparatively less good neighbourhood, you should go for the former.

• As is true of all investment classes, patience would be the key to make gains out of your property purchase. Unlike stocks, for instance, real estate assets would take time to mature. In short, they are more of a long-time commitment.

• Life will go through a tremendous change after the purchase is complete and you enter your new home. Your monthly expenses will increase manifold in all likelihood. Do keep in mind this point and prepare yourself accordingly. Your money management skills put to test at this stage.

Also read: No Additional Burden On Homebuyers Under GST, Landlords Stay Exempt

• Cost and worth, as we know, are not the same things. Do evaluate the cost and the worth of the property that you are about to buy. It is only after you reach a conclusion that the property is worth every penny you are going to spend on it, make the purchase.

• Do not overburden yourself with the loan amount. Keep it as light as you can. Keeping this in mind is of utmost importance to maintain equilibrium in the long run.

• In matters of property purchases, it is always a bad idea to be in a hurry. Those who gain the most from their property purchases are not the buyers who rushed into the market; they are those who did their due diligence before making a decision.

Also read: Everything Homebuyers Need To Know About RERA

It is mandatory to register the sale deed under the provisions of the Registration Act, 1908. This is one process which is important as well as exciting for the buyer. While you might have already read a great deal about the process and must know quite well about it, we give you some handy tips that would help you complete the process with no hassle.

Let us look at that in eight steps.

Preparations: Day before, sit and keep all the documents that are required at the time of registry. Do not fiddle with them over and over. Your run the risk of losing the papers in case you are not careful. Before you leave the Office, make sure you collected all your documents.

Timings: The office of the Sub-Registration Magistrate generally operates between during 9.30 am and 6 pm on all working day. Between 2 and 2:30 pm is the lunchtime. Plan your day accordingly. Also check the timings for changes due to the COVID-19 pandemic.

It would only be better if you do not plan anything else for the day on which the property registration is to take place. Rest assured that your entire day will be spent here. Since it is absolutely important to you that all goes fine, keep your focus only on one thing.

Payment: Since all things are done digitally these days, stamp duty and registration charges are paid much before you actually appear in the sub-registrar’s office to register your property. Take a lawyer’s assistance to take care of this part of the transaction, too. It is only after paying stamp duty and registration charges that an appointment is taken at for property registration.

Documents: Along with the property document, keep close to you at all times your Aadhaar and PAN Card. In place of Aadhaar, you could also produce your voter ID card or driving licence or passport. These are the first things you will have to flash when the Teller, the Reader and the Sub-Magistrate call your name.

TDS: In case the deal size was of over Rs 50 lakh, the buyer will have to submit a proof showing he has deducted one per cent as TDS from the property value. Do not forget to keep that paper with you.

Witness: Your witnesses are quite crucial for the process to take place. They have to be present with you through the entire process and must have a valid ID proof along with them.Your witnesses should ideally be people you know well. Under no circumstances consider their role in the process as only academic.

No privileges: All are treated equally in the Sub-Registrar’s Office. There are, for instance, no separate queues for women or senior citizens.

Delivery: Typically, it takes 15 days for your documents to get registered. Your documents will be handed back to you only after you produce the receipt that was issued to you at the time of registration. In case you have taken a home loan, the bank might send its representative to collect the document. You could also collect the papers and give it to the bank yourself.

Rajat Ghai has started doing the groundwork for his future home purchase. The 33-year-old software engineer has learnt, among other things, that he can increase his home loan eligibility if he made his homemaker wife, Suchita Ghai, a joint owner. He is also aware that the couple will have to pay less as stamp duty on their purchase if the registry is made in Suchita's name. And, then co-owners enjoy tax exemptions, too. All these points makes a perfect case for co-ownership of property. But, what if Rajat decided to go solo? What are the benefits that one enjoys as the sole owner of a property?

You are responsible only for yourself

Having a fallback option is a great thing.  In co-ownership of properties, you know there is someone to back you up in case there are any financial issues. The opposite is also true. If one co-owner fails to fulfill his borrowing responsibilities, the other is liable to do the needful. When you go solo, you are on your own. You pay for your own defaults. Someone who is solely responsible for repaying high-value capital loans is also likely to conduct himself more responsibly.

Your credit rating is linked only to your performance

Imagine a situation where your husband defaults on loan repayment of the property you co-own with him. Credit rating agencies would take note of that and it would severely impact your rating. In case you want to apply for a business loan in future to set up a small business, lenders may not be willing to provide you loan considering your poor credit score.

No fear of future troubles

When you are the sole owner of your property, you do not have the fear of the property getting caught in the middle of a dispute between you and a co-owner. While you are solely responsible for making payments, etc, you are also free to do what you want to do with your property.

You can sell as and when you like

In a co-owned property, a husband cannot sell his property unless his wife grants him her approval. The reverse is also true. When all is well, this might not look much of a concern. However, a disagreement between co-owners on the matters of transaction might turn out to be a major trouble.

You are not tied by preemption

The co-owner of your property enjoys the right of preemption. This means that if you want to sell your share in the property, you will have to first offer it to the co-owner. It is only after your co-owner refuses to buy it and gives you an approval to go ahead, you can sell your share to a third party. If you jointly own a property with your family members, you might find it difficult to sell your share at a later stage.

Quick tips if you jointly own a property

• Do not confuse co-ownership with co-borrowing. A co-owner is always a co-borrower while a co-borrower may not be a co-owner. Also, a co-owner must be a co-borrower to enjoy tax benefits.

• Clearly mention in the sale deed that you would like to go for arbitration in case of any future disputes. Approaching the court will only prolong matters.

• The sale deed must clearly mention the rights, responsibilities and shares of co-owners.

• In India, a wife gets half the share in any property acquired by her husband after marriage, in case the two chose to divorce.  Wives do not have to become co-owners for acquiring a totally notional security cover.

• By making someone who is not working a co-owner, you will actually be increasing their burden. In case of an unfortunate event, this non-working member will be responsible for loan repayment.

 Also read

Applying For A Home Loan? Here Are The Bonuses Of Going Solo  

Many times a buyer is confused as to which floor is the best for home. Most of India's cities are now growing vertically, as the population in cities is rising and the space to accommodate the growing number remains limited. So, real estate developers in India are developing high-rise projects, both in luxury and affordable categories, to reach out to a large number of home buyers across different income groups. 

 One of the world's tallest residential tower 'World One'. (TheWorldTowers.com)

So, if you are a home buyer and want to know which floor to choose and buy in a high-rise residential apartment project or the best floor to live, read on.

High or low, each floor has its own advantages and disadvantages. Before you make a decision, weigh all the factors involved and decide what suits your lifestyle better.

PropGuide lists some factors to assist you in your home-buying experience:

View: Obviously, higher floors offer a better view, especially if the tower is located close to a scenic place. If this is important for you, go for higher floors.

Top floor view from Keerthi Gardenia, Bengaluru. (Wikimedia)

Rental returns: Property surveys have proved that lower floors command better rental returns, as Indians generally have an affinity for staying closer to the ground. If you are buying a property for an investment purpose, the ground floor is the best floor in high rise building for you. People, especially in Mumbai and Bengaluru, prefer upper floors, while buyers in the Delhi-National Capital Region (NCR) and Chennai prefer ground floors. Climatic differences could be cited as a reason the difference in choice. For more information on property in Mumbai and Bengaluru, click here and here.

Privacy: In congested areas, however, living on the lower floors might not offer much privacy. If you love solitude and wish to avoid any kind of unwanted intrusion, a higher floor might be better for you.

Noise: Many home buyers prefer higher floors to minimise street noise or to avoid the noise coming from other occupants walking through the common passage. However, if the ground floor flat is not located in the common hallway and is also far from the elevators, staircase or clubhouse, then the noise would not be an issue for you at all.

Energy consumption: Power consumption increases as you go higher. It is so because you need to run your air-conditioners (ACs) for a longer time during summers. Also, drawing water using motor pumps could be another heavy power consumption task.

Security: Ground floors pose a comparatively increased crime risk, as it is easier for anti-social elements to break into lower or sub-level apartments. Overall, it also depends on the structure of your high-rise and the security measures adopted by the management of your residential society.

Also Read: Should You Buy In Highrises Overlooking Slums?

Access: For most of us, waiting for the elevator can be time-consuming. Choose to live on the ground floor or sub-floors, so you can comfortably take the stairs.

Family consideration: With children and elderly parents around, it is always good if your home is on a lower floor. Apart from the safety point, it also adds to the convenience factor. In addition to this, if you or someone in your family suffers from mobility impairment or has the fear of height, you should prefer living closer to the ground.

Light and ventilation: Apartments on the ground floor have comparatively limited light and ventilation when compared to the upper ones. Not only this, upper floors don't face mosquito intrusion as well.

Water seepage: It is observed that generally the top floor and the ground floor suffer from water seepage and drainage issues. It also depends upon the drainage and sanitary mechanism of the residential complex.

We hope these tips will help you make the right choice.

Property surveys may not be legally required but in order to do a due dilligence, they are a must. Most surveyors will do a property valuation for income tax purposes, capital tax calculations, wealth tax, rent and depreciation, property transfer, bank guarantees, auction, stamp duty, acquisition by the authorities, will and testament, home loans, division of property, etc. 

When should you go for property surveys/valuation?

There is no law that states you should get your property evaluated by a professional before you sell/purchase it. This is more of a precautionary measure, to be safe than sorry in future. Customers often use professional help for a property evaluation, to sort out income tax-related matters. The same is also done before renting, bank guarantees, auctioning, stamp duty payment, acquisition by the authorities, preparing will and testament, availing of home loans, division of property, etc.

Who is a valuer?

A valuer is someone with a professional degree and a licence from the Institution of Valuers. These law-recognised valuers get licences from the state body before they start their practice. While a property brokers helps you understand the pulse of the market; those facts could be questioned. An approved valuer does everything on paper, citing facts. This document helps you deal with banks, solicitors and investors, etc.

How does property valuation help?

What is the value of the land or building? Are there any improvements that can help you increase the value of your property?

These are some of the aspects that valuers help you decide. You would also get a certificate, validating the worth of your property (and other assets) admissible in a court of law.

What do I have to pay for a property valuation?

There is no standard pricing for valuations. Depending upon the exact location, size, kind of property as well as the kind of certificate/document you require (short-form or long- form), the pricing may vary. Do note that usually, valuation services are tax deductible. However, even if it isn’t, the cost is far too less when compared to what you are getting in the form of an established fair price of the property. 

Is property valuation a smart move?

In case you are a seller, a legal piece of document certifying the true worth of the property would be of great help. The buyer could in no way accuse you of overvaluation, and this also ends the scope for bargaining. Your property valuer could also tell you ways in which you could add value to your existing property. A tax depreciation schedule from a valuer can also help you minimise your tax burden. From a buyer’s perspective, valuations help them understand the risk profile of a said property. They can make a sound investment on the basis of such information.

Smart homes as a concept have really received acceptance in the past few years, with considerable technological advancements in real estate. With their promise of a better, luxurious and less wasteful way of living, they have managed to get people's attention. Although they sound great on paper, it is also prudent to keep in mind the mentality of the general home owner and whether he’s likely to welcome this subtle yet distinct shift in his way of living. With their mind set, new-age homeowners are speculated to be the expected crowd for this modern type of living and here are some reasons why.

• Ease of living: The modern generation is all about increasing efficiency and the ease with which they get certain work done. This quest for easing everything out has also spilled into their habit of living and therefore, smart homes appeal to them. With their increased connectivity and the ability to control almost everything remotely and from one particular place or app, new- age homeowners would choose to bid good-bye to worrying about various components and parts of the traditional house and instead control everything remotely with ease.

• Kinder to the environment: Contrary to popular opinion, modern technology is geared towards saving the planet. Smart homes initiatives were founded on the principle of giving back to the environment by cutting down on harmful emissions and reducing wastage. The use of updated and better quality material conforms to the current emission norms.

• Financing: Although smart homes may appear expensive, but from a long-term financial standpoint, it sings a different tune. Smart homes come with appliances that pay off by reducing wastage and increasing efficiency, resulting in reduced cost of operation. This, when compared to the traditional concept of housing and the appliances used there, one understands that the cost of running and maintaining traditional houses are far higher than those in a smart home, where the appliances are carefully streamlined to make sure there is no spillage.

These are some of the points that highlight that smart homes evoke a sense of progression and futurism, which beckons the millennial. Knowing that they are the immediate future of this planet, their choices matter and smart homes fulfil their expectations on how housing should be.

There are so many things to mind when you go home shopping. But, your first area of concern is to pick a perfect home for yourself. If that is achieved, consider the job half done. While you are browsing for properties, do not get carried away by everything that is mentioned in the literature used by developers to market their projects. Make sure their claims are real.

Location, location and location

All the brochures you have read have one thing in common — all the real estate projects are invariably strategically located. A majority of advertisements would tell you that the airport is only a 20-minute drive from there, and so is the railway station. In most cases, there is no mention of the kilometres. It is assumed that a personal vehicle, preferably a four-wheeler, will be used to cover the distance. It is also assumed that it would be a smooth ride without traffic jams while you go the distance in your car. Both these assumptions are ill-founded and far from reality. Not all members of a family might be using cars for commuting, and it may take hours for them to reach the railway station if they have to use the public transport. The time would only get longer if there are traffic jams, something not at all uncommon on city roads.

Developers also highlight the project's proximity to civic and social infrastructure. Make sure that this civic infrastructure actually exists and is not only on papers before investing in the project.

Also read: Beware Of Fraud Property Advertisements

The amenities and the facilities

An oft-repeated term in developers' marketing brochures is amenities. What is often projected as an additional facility when selling you the property is actually something a developer is obliged to provide in his project. For instance, mentioning “gated community” and "24x7 security services" as highlight points of a real estate projects does not make sense. By the very definition, an apartment project will be a gated community and will offer homebuyers uninterrupted security services.

Some projects are actually different from others and do offer you additional services. But, before you are swayed away by those services, here is a point for you to consider. There is a mention of a swimming pool and a gymnasium in the society. Based on which, units at this projects are priced slightly on the higher side when compared to similar projects in the neighbourhood. Will one swimming pool suffice for 300 families to indulge in swimming, even if each of these families choose just one day of the week and a particular hour of this day to do so? The same question arises about the gymnasium also. And, the answer in both cases is, probably not. Also, keep in mind the fact that irrespective of you using or not using these services, you will have to pay a monthly maintenance charge for these facilities.

Also read: 3 Things About Real Estate Law You Probably Do Not Know

The green practices

A lot of emphasis is laid on going green these days, and property markets are no exception. As a result, brochures boast of real estate projects being green and eco-friendly as their unique selling point. In reality, however, the project may not be as green as you though. As a buyer, you have to check what kind of green and eco-friendly features have been incorporated in the project. Are solar panels being used to generate electricity? Is there an in-house wastewater treatment plan? Is the building material used by the developer eco-friendly? Do the green claims of the developer have any backing and proof? It is only after satisfying yourself on these points that you should consider a project green and pay for it.

Sure, you invested in another property to earn more money. But, similar to your other incomes, the money you earn as rent would be subject to taxes, depending on the actual value of the property. Mind you, even if your property is not let out for a part during a year, you will have to pay taxes based on the notional rent receivable. But how does one arrive at the actual value of a property?

According to Section 23(1)(a) of the Income Tax (I-T) Act, the annual value of your property is the amount it is expected to earn you when let-out from year-to-year.  Based on four factors, the annual value of a property is arrived at.

Municipal value

For the purpose of charging local taxes, municipal bodies evaluate your property.  While assigning a value to your property, municipalities take into account a lot of factors. These include the location, the size, the amenities, etc. For instance, a 1BHK apartment in a housing society that is close to the city is expected to fetch more rent than a similar unit in the suburb.

Actual rent received or receivable

This is the amount you receive from your tenant on an annual basis. However, your actual income would be calculated on the basis of who pays the utility bills of the rented unit.

Fair rent

You might be getting less in rent for your property than others who have rented out similar properties in the same area. This means you are not earning what is known as “fair” amount as rent. The rent that similar properties with similar amenities in similar areas earn is the fair rental value.

Standard rent

Areas where the Rent Control Act is in place, a standard rate is fixed. Landlords of such property have to stick to this amount, irrespective of the market value of their properties. For instance, properties in Delhi's Connaught Place fetch owners meagre annual amount because buildings in the area fall under the ambit of the Rent Control Act.

Now, the annual value of your property will be the highest among these amounts—the rent received or receivable, the fair market value or the municipal valuation.

Sample this. Your municipality has valued your property at Rs 1.20 lakh annually while its fair market value is Rs 3 lakh. You, on the other hand, are earning Rs 2.80 lakh annually as the rent from the property. As the fair market value of your property is the highest amount of the three, the actual rental value of your property is Rs 3 lakh, and based on this amount you will have to pay taxes on your house property.

During your research before settling on a property, you may have come across something called the sale deed. It is the most valuable legal document that you shall possess upon purchasing a home. Based on the purchase deed, you shall be allowed to proceed with registration and mutation of the property. The sale deed or purchase deed is drawn upon a non-judicial stamp paper by legal draftsmen according to the value prescribed by the stamp duty act of a state.  

When you buy or sell property, the transaction is not legally valid without the buyer and seller signing the sale deed in the presence of at least two witnesses. Governed by the Registration Act, 1908, sale deed is the most important document for while selling or purchasing property in India.

Also Read: List of Documents Required for Buying Property 

Parties of the Sale Deed

Needless to say, a sales deed must begin with the details of the parties involved with the transaction. It should bear the name, age and addresses of the parties (buyer and seller) involved in the transaction, in order to make it valid. Both parties must sign and execute the deed with bona fide intention.  

Description of the sales property

The sales deed must have a proper description of the property you intend to buy. For instance, if you are buying a 3BHK in Bandra, the sales deed should have the total plot area, identification number, details of construction, the exact location and surroundings. The property schedule must be incorporated in the sale deed to define the accurate location of the property.

Sales Agreement

This document is drawn up when you pay a booking amount for your new apartment in Mumbai. This agreement states that both seller as well as the buyer shall mutually settle the conditions and terms of the agreement so that it won't affect the rights of either party. Usually, the sales agreement is drawn up before the sale deed.  

Clause of sale consideration

The amount agreed between the buyer and seller must be included in the sale consideration clause. This is the amount that the buyer agrees to pay to the seller during the sale deed execution. The sale amount should be stated clearly on the deed, as it was agreed upon.

Advance Payment and Payment Mode

If you have paid anything in advance to the builder or seller for booking the flat, then this should be mentioned in the sale deed clearly. The remaining amount payable must also be written in the document.   

The mode by which you will be paying the amount—cheque, cash or DD must be mentioned along with the consent of the seller to accept it in the form.

Passing of the Title

The sale deed should mention when the property title shall be passed to the buyer. The seller must be given a time limit for the title transfer. Once the title has been transferred, all related rights shall pass onto the buyer.

Possession Delivery

A clause in the sale deed must bear the information that the possession of the property shall be transferred to the buyer by the seller after completion of the registration process. The sale deed should state the actual date of delivery of possession.

Indemnity Provision

This is mostly applicable in case of a resale property. The clause states that the seller should clear all statutory charges such as electricity bill, property tax, water bills, maintenance charges and society charges and all other dues prior to the sales deed execution. In case a home loan was taken to purchase the property by the original buyer, then the seller must repay the loan and get the papers back from the bank. As a conscious buyer, you should scrutinize the status of encumbrance from the sub registrar or registrar's office.  

Default Clause

Sales agreements should ideally bear a clause that if there is any default on the part of the buyer or seller then the party defaulting shall have to pay a penalty to the non-offending party so that the execution of the sale deed is not affected.

Once the sale deed has been prepared, it must be ratified by two witnesses from both sides. The witnesses shall have to provide their full addresses, signatures and names. The signatures of the buyer and seller must be present in every page.

Long gone are the days, when women expected the men in their lives to arrange a living space for them. Financial independence has ensured that women are able to make the biggest purchase of their lives, in most cases, all on their own. Easy availability of housing finance, along with a wealth of information, only makes it much easier for them to take the plunge in the early part of their working careers.

As this would be a landmark purchase for anyone, there should be no scope for any error. It is in this context that we discuss the many details that a single woman buyer should focus on, while making the purchase decision.

The research work

It may be exhausting to evaluate all the options that are available in the market currently. Even if you apply all the filters - your budget range, property configuration, and preferred areas - the sheer number of listings that appear on property portals may be overwhelming. Detailed planning, however, can lend a semblance of order to this complicated task. Even though you may have a general idea about what to expect from your future home and how much you would be able to shell out for it, it is important that you fix certain boundaries.

Fix a budget and stick with it

It often happens that our resources do not allow us the luxury to afford what we find tasteful. For example, a property you like may cost Rs 2 crores, while your creditworthiness only allows you a home loan of Rs 80 lakhs. This wide gap is absolutely hard to bridge and this is why you must be certain about what you could spend for the home.

Factor-in your savings and your home loan eligibility, to reach a figure that you could spend on the purchase. All the other things must be worked around this number.

At no point should you try to stretch your budget. A house purchase would involve a multitude of other expenses and you have to be ready for them (we would talk about that in other sections of this article).

Study the market and jargons

Before you actually start the search for a home, it would be better to familiarise yourself with the real estate market in your city.

What is the average rate of properties in your city?

Which are some of the safest localities in the city?

Does the city have women-centric projects?

Where are most of the upcoming projects located?

How high is the pollution level here?

While doing so, you must also familiarise yourself with terms that are often used in real estate transactions. If you are unfamiliar with these jargons, you run the risk of getting cheated.

Did you know that under the rules of the real estate law, sellers have to mention the carpet area of the property? Most sellers, however, quote the rate on the built-up area. Do you know the difference between the two things?

Did you know that the RBI has lowered the repo rate to 4%? Do you have an idea how this reduction would impact home loans interest rates?

You need to have clear answers to many such questions, in order to make a smart purchase.

Determine the locality

As a single woman, it makes sense to find a home close to your workplace. This not only reduces the time of travel, but also reinforces the aspect of safety if you work at odd hours. If your parents live in the same city, do find an apartment which is at a convenient distance from theirs, so that you can have the privacy of your own place without going too far from home.

However, if your work location is likely to change, then, select a locality with a futuristic vision. Does the locality provide you with connectivity to the most prominent business districts in your city? Is it possible to reach those centres within a reasonable time frame? If the answer to these questions is in the positive, you have selected the right area.

If you are buying a home which you intend to let out on rent, choose a location close to a business district, so that your home will have many takers.

Identify the property

Once you have decided which area you want to live in, browse the internet for property listing, or look through the offers and launches in the newspapers, to identify the projects which best suit your requirement. Do remember that you will be spending considerably more than the basic cost indicated on advertisements. These include registration costs, maintenance costs, floor-rise charges, etc., which get added to the basic price at the time of purchase.

Site visits

Once you have shortlisted the properties which look best on paper, it is time to schedule site visits. Most builders these days arrange cabs, which pick you up and drop you back, after showing you the property, and the homes for sale in question. Now, here is what you ought to do:

* Ask a friend or someone from your family to accompany you on such site visits. Apart from safety, another pair of eyes would be greatly helpful, in analysing the merits and demerits of the property.

* Check every aspect of the property and the neighbourhood and unless you find everything to your satisfaction, there is absolutely no need to proceed. Drive around the neighbourhood and speak to the people who already live there, to see if everything you need on a day-to-day basis is easily available. Ask around to make sure that the neighbourhood is safe even at night.

* Most builders charge a higher per-sq-ft rate than is recommended by the government agencies. Do not hesitate to ask them to drop the rate to a more reasonable amount.

* When speaking to the marketing person, insist on a break-down of the various charges in the final cost.

* Even if you own a private vehicle, make sure enough safe transport is available at all times of the day.

At the time of purchase

This is a long and lengthy process, where you would need to appear before the sub-registrar’s office in your area, to register you property. Make sure you are in possession of each and every legal document. In case of a housing loan, the originals would be kept with the bank while you would get a copy of the documents. Keep these safe at all times.

Also, if you are planning to move into your new home, do ensure that the project or building is 50-75% occupied. This reinforces the sense of security, and also ensures you have enough company when you need it.

Once you move in

Moving into your dream house after you have purchased it, comes with its own list of things to do and expected and unexpected expenses. Fortunately, when you are a single woman, you can take your time to make big additions to your home, such as a modular kitchen, cupboards in every room, or a crockery shelf for your tableware. Concentrate on purchasing the basic requirements first, to put together a comfortable home and keep adding to it as you go along.

A washing machine, a refrigerator, a microwave and cooking gas are must-haves in any home. They reduce your dependence on external services and make your home a stress-free zone. Invest in an internet connection, cable TV and a good television set to keep yourself entertained and to have the flexibility to work from home.

Install safety devices, such as an extra door-lock, a safety chain and a doorbell with a camera, so that you can relax in the security of your home.

While the two terms are often used interchangeably in the world of real estate, sale deed and title deed are not the same things. In this article, we would talk about how is one different from the other.  

In form: Title is a concept, deed is a document

There are no specific documents known as title deed, as it the case with sale deeds. Title is simply a concept. A sale deed, which always has a documentary form, is a legal statement that confers this title on the owner. After you purchase a property and the registration is carried out, the buyer would receive a sale deed in a documentary form, which would confer upon him the tile of the said property.

Legal difference: Sale deed is an agreement; title deed is a statement.

In legal parlance, a sale deed is an agreement to sell a property to a buyer.  As it typical of all agreements, at least two parties are involved in the transaction ─ at least one buyer and one seller. This is why the details of both the parties are mentioned in this document. Both the buyer and the seller have to sign on each page of the sale deed at the time of property registration for the same reason.

A title deed on the other hand is not an agreement, but a statement. It only talks about the rightful ownership of a person over a particular property. Apart from the ownership, title deed also speaks of rights, obligations and mortgage obligations of the owner. Do note here that sale deed becomes a title deed as soon as it is registered. A registered sale deed is a proof that a particular person now holds the ownership over a particular property.

In details:  Sale deed traces titles

To register a property, the seller has to produce all past records related to a property, based on which a sale deed is created. This is to say, there should be a chain of documentary proof tracking the original ownership if a property and the change in the ownership thereof. Ultimately, a sale deed becomes a link in the chain, taking the form of a title document.

Even though they lure you with grand promises of quick disbursal and assurances of ‘hassle-free’ processing of home loans, banks do several checks on you, before they approve your home loan application. Among these checks if they find one good reason that makes the borrower seem like a risky bet, they would reject your home loan application. In this article, we list out 20 such reasons—some known and some not commonly known—based on which a lender may reject your home loan application.

1. Poor credit score

All of us are different and deal with money differently. However, any slip made along the way, will find a mention in your credit history, which is compiled by credit bureaus in India. As the first step while processing a loan application, the bank will access you CIBIL report from a credit bureau. In case of a low score – credit scores are assigned by credit bureaus to borrowers in India, based on the latter’s banking/payment history, on a scale of 300 to 900—the bank will reject your application.

Currently, banks pay a lot of attention on this aspect. Lenders like Axis Bank, for instance, charge lower interest on home loans, from borrowers with impressive credit scores.

2. Frequent job change

In your opinion, this should certainly not be any of their business, as long as you have a stable job and have the repayment capacity. If anyone should actually care about this, it should be your employers. However, financial institutions also take an adverse note of the fact that you have been changing employment quite frequently. The notion is based on the assumption that you may lack the commitment and stability which acts as a pre-requisite to serving a long-term liability such as a home loan.

3. Nature of work

Unlike borrowers from the salaried class, self-employed people find it harder to secure a home loan, especially if they own small business. Self-employed borrowers do not inspire the same confidence among the bank officials, as salaried people do, as the latter enjoy a certain level of job security and stable income. For the self-employed to secure a housing loan, the borrower must have good paper work in place, before he approaches a bank. In case the bank finds any loopholes with regard to your income, business or income tax filing, they will not waste much time in rejecting your application.

4. Type of job

Banks also refrain from offering loans to salaried employees who work in certain sectors, because of the assumed risks in lending to this category. People employed with the police departments may, for example, not find banks as forthcoming to lend to them. The same goes for lawyers and journalists. Such borrowers may have to provide a guarantor for their home loan, in order to secure the credit. Banks also maintain a list of companies they have banned funding. If the builder is in this list, you may have to search for another lender.

5. Address-related issues

While preparing their defaulter’s list, banks may not only blacklist the applicant but his address, as well. This means you may have to bear the consequences of being a tenant of a house whose owner may have found a mention in the bank’s defaulters’ list, for no fault of yours.

6. Previous rejections

A bank would know your home loan application has been rejected by another lender, as soon as it accesses your CIBIL report. Aside from the fact that you have suffered the rejection, the credit report will also mention the reasons based on which the bank decided to decline your request for the home loan. This gives the lender a reason to be concerned and apply higher checks on such a borrower.

7. Properties in ‘red zones’

Banks typically have a list of areas, categorized as the ‘red zones’, where they do not finance house purchases, as they consider these locations as risky propositions.

There are only specific locations and specific properties for which financial institutions typically lend housing finances. In Delhi, for instance, a buyer who might be purchasing in property in a Lal Dora area will have to depend entirely on his own resources to make the purchase, since most lenders will not offer loan for a home in an area. This rule applies to most under-developed areas or areas that have seen a surge of unauthorised constructions in the past two-three decades.

There are also certain types of properties for which banks do not offer loans. While they would be quite willing to lend money for an under-construction project, banks may shy away from lending if the property is old and dilapidated.

8. Encumbrances on the property

Even in areas that do not fall under the list of red zones, a bank will restrain from financing a property purchase, if there are any questions over the title documents. During its legal assessment exercise, the bank will establish if the seller is legally authorised to carry out the transaction, while tracking the veracity of the property documents. Banks will never finance a property that is caught in any kind of legal or financial battle.

9. Over-valued property

Banks send technical experts to visit the property and established its market price with regard to its physical condition, location, etc., after conducting a thorough inspection. If the team appraises the bank of the fact that the sale is taking place at a much higher rate than its actual worth in the market, the bank will reject your home loan application, since they have to maintain a loan-to-value ratio. They will not lend you, say, Rs 50 lakhs, to buy a property, which in their assessment, is not worth more than Rs 40 lakhs. Since they typically maintain a loan to value ratio of 80%, they will also offer only 80% of the Rs 40 lakhs as loan and not anything more.

10. Builder’s credibility

One would face no difficulty in finding a lender for housing projects of reputed builders. However, it may be equally hard to find a lender that would loan money to buy a project with a builder that has been accused of dubious dealings in the past. For example, at a time like this, a bank would think 10 times before it agrees to lend money to a buyer to purchase a home with Amrapali, Unitech, 3C Company or Jaypee. All these developers are currently battling for survival after payment defaults and long project delays.

11. Past defaults

In case you have been sloppy in the repayment of your previous loans, this would reflect in your credit history. The situation will be much worse, if there are multiple instances of repayment defaults. Since a poor repayment record will inspire little confidence in a lender, they may reject your application.

12. Absence of a credit history

In the absence of a credit history, the bank has no way of knowing how financially prudent you are and how maturely you can deal with the pressure of a consistent monetary burden. Unless you have a good employment record or great savings to make up for the absence of a credit history, the bank may reject your home loan request.

13. Buyer’s age

Banks prefer young borrowers—people who have their entire working careers to repay the loan. Now, borrowers who are slowly moving towards retirement, do not fit well in a lender’s scheme of things for a variety of reasons. Such a borrower will have a very limited working life and consequently, a short tenure to service the home loan, which is typically huge in amount. Secondly, the chances of career growth in older people may be slim. Thirdly, in case of sickness or death of the borrower, the bank will be forced to recover the loan through other means. This is a proposition that lenders never look forward to, because of the hassle involved in the process.

14. Property’s age

Aside from your age, the age of the property also determines whether or not the bank will give you a loan. Even if the property is located in a seemingly premium location but is dilapidated and damaged, it would fail to get a financier.

15. Current EMI burden

Banks view borrowers favourably, if they are able to allocate 40% of their take-home salary in repaying the credit liabilities every month. So, a borrower who is already servicing multiple loans and is spending a large part of his take-home salary, will find it hard to convince a lender to offer him housing finance.

16. Income tax returns

An obvious sign of a responsible citizen is that they properly file their taxes every year, irrespective of whether they have a taxable income or not. Unless you have done so and have the documentary support to prove this to the bank (banks generally ask for the tax return documents of the past two years), your home loan application will be rejected.

Also, in case you file your taxes for more than one year, just to get a home loan, the banks will perceive this as a desperate attempt to secure a loan. While they may not reject your application based on this factor alone, they would certainly have a higher bargaining power.

17. Signature mismatch

This is possibly one of the most careless mistakes that can lead to rejection of home loan applications. The borrower is expected to sign on several pages of the home loan application form. The signature at all these points must be exactly the same. If any discrepancies are found in the matter, the bank will reject the application.

18. Address mismatch

The bank will send its representatives to verify your current address. It will also send its staff to check your office address and whether you actually work in that office. Needless to say, you have to be present at these locations when the bank representative makes a visit. In case they do not find you are these locations, the lender will not process you request for housing finance.

19. Single borrowers

Banks prefer co-applicants in a home loan, for the obvious reason that they will have two adults responsible for the same liability. Even if there are issues with the repayment capacity of one buyer, the other will come forward and shoulder the responsibility. They would find several reasons to reject the home loan application of a single applicant, unless they have an impressive work profile and high upfront money (the amount that the buyer will spend from his own pocket). They would insist that the borrower get a co-applicant to increase his home loan eligibility. It is precisely for these reasons that single women find it hard to get easy credit.

20. Profile mismatch

Not all banks lend money to all sorts of borrowers. Banks typically cater to a specific set of borrowers. Most banks lend more freely to salaried people with impressive credit scores for purchase of new properties in established housing markets. Any proposition that is different from the combination thus mentioned, may fall away from the target client base of the bank. Now, even if you are a salaried individual with a good credit score, the bank may shy away from lending you money for purchase of land or property in rural areas.

If you, as a homebuyer, thought that buying insurance was only an added burden and it might most likely not solve any purpose, you would better rethink. Your property, like all other things that you hold dear, needs a protection against untoward situations. That makes buying property insurance crucial. Before you make up your mind to buy such a product, you must have better clarity about home insurance policies.

The first question is, are there many types of policies?

Yes, there are 10-11 package policies for house owners and shopkeepers. While there are many products available in the market, the most popular is the fire and allied perils policy that protects your property against mishaps such as fire, riots, flood and storm. A burglary and house breaking policy on the other hand covers your property and belongings against burglary and theft. Other valuables can be covered under all-risks policies.

Also read: These Losses Are Covered Under Home Insurance

How does one fix the insurance amount?

There are two methods to do so. One is using the market value of the property and the other is using the reinstatement value.  Under the first arrangement, depreciation of value is levied on the asset, depending on its age in case of a loss. In this case, the insured amount may not be sufficient to buy a replacement. In the second arrangement, your insurer will pay the cost of replacement, depending on the ceiling mentioned in the policy. To claim the amount, the damaged property has to be repaired first. Do note that the second arrangement is allowed only for fixed assets such as property, it does not apply to liquid assets such as stocks.

What are my responsibilities as buyer of property insurance?

Buying a cover does not mean you have to be less careful about the well-being of your property. As the sector watchdog puts it, “every insured is expected to behave as though he is uninsured”.  This means you have to take every precaution to prevent losses. Do remember that you will have to prove it to the insurer that you did make an effort to save the property while a tragedy struck. In case you fail to do so, the insurer might be reluctant to settle the claim.

Also, in case of a tragedy, inform the insurer immediately. If arrival of surveyor is likely to be delayed, take picture of the scene. These would work as evidence.

While the company surveyor does his job, extend your full support and correctly mention the losses. Give the completed claim form and documents as required by the insurer in support of your claim.

After repairs, give bills to the insurer.

What if you have a grievance?

First, you approach your insurer. This could be done by personally visiting the company office or logging on to their site. As is the rule, your insurer has to acknowledge your complaint in three days, and resolve it in another 15 days. In case you are dissatisfied with company, you have the option to raise the issue to the sector watchdog, the Insurance Regulatory and Development Authority of India (IRDAI).

You may log on to www.igms.irda.gov.in to file your complaint.  

You may also lodge a complaint through an e-mail (complaints@irda.gov.in), through a letter (to Consumer Affairs Department, Insurance Regulatory and Development Authority, 3rd Floor, Parishram Bhavan, Basheerbagh, Hyderabad) or call IRDA Call Centre at 155255.

There are no charges for registering your complaints with the IRDAI.

What if insurer delays the process?

Suppose, there has been a damage to your property, and you have filed your claim with the insurance company. When you start losing patience because the company is not addressing the matter in a time-bound manner ─ it has been over a year ─ and approach the insurer over the issue, you find out that the company surveyor has yet to file his report.  How do you deal with that situation?

To begin with, do remember that:

• An insurance company surveyor has to give his report within 30 days of his appointment, unless he applies for an extension, citing matters of importance.

• This extension cannot be stretched for more than six months from the date of his appointment.

• In case of delay in payment to the aggrieved party owing to a surveyor's failure to give report, the insurer is liable to pay interest at a rate which is two per cent above the bank rate.

“There is no reason why an insured should suffer on account of delay on the part of the surveyor in submitting his report, considering the fact that the surveyor is appointed by the insurer without consulting the insured and in any case …  it is for the insurer to impress upon the surveyor to submit his report within the time limit prescribed,” says the National Consumer Commission. 

A will is a way to succession planning that ensures that the individual's property or any other asset, is given to the preferred family members without any dispute at the time of property distribution. There are two different ways how the property can be passed on: intestate succession and testamentary succession. While intestate succession applies when there is no legal will and is assumed that all assets will be passed on to the individual's spouse, children or any other family member, testamentary succession is when the property is distributed according to the terms mentioned in the will.

What is the importance of a will?

Usually, individuals don't create a will as it's a given that the property will be passed down to their inheritors also known as legatees. However, many times spoken promises might later lead to different claims. Having a will gives you a legal right and an assurance to distribute your property.

How do you write the will?

1. To write your will, the following people are needed:

• Testator, who writes your will.
• Executor of the will, delegated to ensure that all property is responsibly distributed as per the requirements of the individual.
• Two witnesses to justify the testament.

Note: Stamp paper is not necessary when writing the will.

2. Once the above mentioned people are identified, you can write your will. Be very clear with names and specific about the distribution of the property. 

3. It's  important to mention the specific date so that the latest will is being executed.

4. If any changes are to be made between the intervening period, the structure of the will is to be amended. Further, in case of changing a clause in your will, one needs to prepare a Codicil, also referred to as a supplement of the will. If there are too many changes in your will, make a new one to avoid confusion.

FAQs on will and succession

What can I do if someone creates a counter will without my knowledge?

These situations may arise when there are property disputes in the family. If you are in possession of a valid will but figure out that someone might have created a fake will to counter the genuine one, you can file a case or probate in court challenging the will and get its validity checked. If you are the legal heir, you can't be denied your share by your siblings, advises Mumbai-based lawyer, Varun Vij.

Can a will be registered after the testator's death?

Mumbai-based advocate Vanita Yogesh Opre answers in positive. Show the will and records that prove death of the testator and witnesses, after which, the affidavit has to be filed at the sub-registrar's office claiming that the testator was of sound mind and had prepared the will without any pressure.

Is it compulsory to register a will?

Yes, a registered will holds greater value over an unregistered one.

What is the difference between a nominee and a beneficiary?

In creating a will, one must use correct language. Advocate Rakesh Misar says, "It is recommended that a will be drafted properly after taking legal advice. Any small errors can lead to a huge complication later on. A nominee, is a trustee of an account and a beneficiary is the person entitled by you under will and legal heirs as governed by the succession law. If the will is signed and executed, it will supersede both, legal heirs and nomination.

What if someone creates a second will and registers it?

If your case is genuine, you could always file a petition for adverse possession.

Can ancestral property be bequeathed to only one person in a will?

In case of an ancestral property, you will need to share it with other rightful beneficiaries. However, your father can bequeath his share to whosoever including a single person. However, it is advisable to take legal help to ascertain this.

Can a will be changed after the testator's death?

Suppose Avinash Gupta created a will stating that post his death, his property shall go to his wife Aarti, after which to his son Bala Gupta. The question here may be - can Aarti change the will and choose to bequeath what she has got to her other son Bhavesh Gupta? The answer is no, a will cannot be changed so easily. Advocate Gowaal Padavi, says, "You must file probate of the will. For this you must approach the High Court. The son would not get the complete title of the property without probate."

Builders can’t force homebuyers to pay maintenance charges for flats in housing projects that are yet to receive the occupancy certificate from the civic authority concerned, the National Consumer Disputes Redressal Commission (NCDRC) has ruled. The observation by the panel was made on a plea of a batch of 15 buyers from Bengaluru.

Offering major relief to homebuyers who are first forced to take possession of homes in long stuck housing projects and then made to pay maintenance charges, the apex consumer panel held:  "Regarding the issue of maintenance charges, it is a fact that the complainants have taken physical possession of their respective units. It would be logical that there would be an expense on the maintenance of certain common services. It is also a fact that the Occupancy Certificate has not been obtained yet. It means that the project is not yet fully complete and that not all services promised are being provided. No maintenance charge should be levied before obtaining the occupancy certificate.”

CHS Can Levy Maintenance Based On Flat Size: Consumer Forum

Housing societies are free to charge flat owners differently, based on the sizes of the units they own, the Telangana State Consumer Disputes Redressal Commission has ruled. While passing an order in the case V Srikanth versus India Bulls Centrum Owners Welfare Cooperative Society, the state commission set aside an earlier order passed by the district forum in 2018.

The case

Members of the India Bulls Centrum Owners Welfare Cooperative Society, V Srikanth and K Sravani, had raised a complaint under Section 12 of the Consumer Protection Act, 1986, to stop the association from charging maintenance from flat owners on a per sq ft basis. The district forum had ruled in favour of the applicants, asking the society to collect uniform charges from all flat members, irrespective of the size.

The society manages the gated community at lower Tank Bund in Hyderabad, with 154 flats of varying sizes, from 1,281 sq ft to 3,270 sq ft.

In its defence, the association pleaded that since the majority of the members were in favour of its decision, it was justified in charging maintenance based on the size of the flats. While asking the society to levy a uniform charge, the district forum rebutted that argument, saying it could not pass arbitrary rulings only because of having a majority. It also said that owners of bigger flats could not be made to pay higher charges, as if they get higher security, more common road and more passage of light by virtue of being the residents of bigger flats.

Subsequently, the association moved the state commission, seeking justice.

Setting aside the order by the district forum, the state commission bench, headed by president Justice MSK Jaiswal and member Meena Ramanathan, said that since bigger flats accommodate more people and claim higher share in the usage of common amenities, such as water, unlike smaller flats, it would be unfair to make the residents of the two flats pay a uniform maintenance charge. The commission also ruled that the decision of the majority should prevail in cases of housing societies, since all members are the flat owners.

What Are Maintenance Charges For Flats?   

You get annoyed when you see the park in you housing society splattered and littered, in spite of you regularly paying the maintenance charges. It is even more annoying to see that the basement, too, is not properly managed, and the residents park their cars using their whims and fancies. You rush to complain about poor maintenance to the management of your housing society. After all, you pay a substantial amount every month as maintenance charges year after year, and you would like to see it used for the purposes it is collected.

What are maintenance charges?

In gated communities, residents pay a fixed amount every month that is used for the upkeep of the common areas in a housing society.

Why the payment?

Typically, common areas in a housing society are all community and commercial facilities and may include swimming pools, staircases, elevators, lobbies, fire escapes, common entrances and exits, basements, terraces, parks, play areas, water tanks, etc.

Basically, every part of you housing society, be it the park or the lobby, the community centre or the pool, the elevators or the children's playground, is maintained using the money you pay on a month-on-month basis. 

How it is calculated?

In India, real estate developers charge anywhere between Rs 2 to Rs 25 per square foot (psf) as maintenance charge.

Suppose you live in a housing society that is spread across 15,000 square foot and there are 50 residents. If the developer charges Rs 2 psf as maintenance charge, each of the members would have to pay a monthly maintenance charge of Rs 600 every month. Housing societies in national capital Delhi, for instance, levy that kind of maintenance charge since they are smaller and offer only a certain number of amenities.  

Now, if the developer charges Rs 25 psf as maintenance charge in a housing society with similar measurement and the same number of resident, each one will have to pay Rs 7,500 every month.  Housing societies in Gurgaon and Noida typically charge monthly maintenance in that range because of the facilities they offer.

What is the timeline?

Homeowners in a housing society have to pay an amount periodically for the regular maintenance and operations of these common facilities. In most cases, you have to pay maintenance charges on an annual basis. However, these charges may vary from case to case. Home buyers must read their sale agreement carefully so that they know what kind of money they will be expected to pay as maintenance charges in future.

Also Read: GST On Maintenance Charges

Is it legally binding?

Many of us, given a choice, would not be willing to part with money towards maintenance charges, if truth must be told. Is it not the responsibility of the project developer to maintain the housing complex? The fact is as the residents of a housing society and as the users of the common areas, it is our duty to pay these charges—and the law says so.

According to the Real Estate (Regulation and Development) Act, 2016, “every allottee, who has entered into an agreement for sale to take an apartment, plot or building shall be responsible to make necessary payments within the time as specified and shall pay the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges”.

Is it worth the money?

Apart from the fact that it is legally binding on you to pay maintenance charges as specified in your agreement to sale (mostly, the document does not specify the amount), you must contribute to enjoy uninterrupted services provided in a housing society. It would not make any sense if you buy a house in a project that offers a swimming pool, but does not have proper arrangements to allow the residents to use it. What is the point of having a un-manned parking area where nobody is bound to play by the rules?

Also, you can also claim tax benefits on the maintenance charges if you have given your property for rent. Do note here that this facility is not available to self-occupied properties.

While many of us are still preparing to buy homes, there are many fortunate ones who have accomplished the task, considering that the COVID-19 pandemic gave many of us a big push towards home ownership. Also, amid record low interest rates and decade-low property prices, the year 2021 became one of the best times for property  purchases, monetarily speaking. Now, what goals should homeowners set for themselves in 2022, if they have already made the biggest purchase of their lives?

Here is what homeowners must do in the New Year:

Go easy for a while

We are certain a great deal of time, energy and money was spent in accomplishing the task. However, there is so much that still needs to be done. After settling in, you may realise that you need to make certain corrections in the kitchen or the bathroom. Naturally, new furniture must be bought to suitably adorn the brand-new home. If the house is far from the city centre, the need for buying a second car may also come up. Basically, there are so many 'pressing needs' that need to be fulfilled, and doing so would require spending significant money. Since you may have exhausted a great deal of your savings and may already be running short, entertaining the idea to make new purchases would drain you, financially and psychologically. Hang on, till your coffers are once again replete. The longer you stay in your new home the better you would be able to understand your 'real' requirements.

Also, do keep in mind the fact that the economy, which is still reeling under the impact of the Coronavirus pandemic,  will take a long time before it is able to reach its past healthy state. Making big expenses is a task best avoided, till normalcy is restored.

Watch interest rate movements closely

You may have bought a house when interest rates were at a record low - with the RBI slashing the repo rate to 4 per cent, banks are currently offering home loans at below 7 per cent interest rate. Now, to be able to remain a smart investor, you will have to watch movement of interest rates closely. After touching a record low, rates might move upwards after while. 

It is also worth mentioning here that banks generally do not inform borrowers about the changes in rates, upwards or downwards . It is the responsibility of the borrowers to track the movement, approach the bank and demand the benefits, in case there has been a reduction. You could also opt for a fixed rate of interest from a point from where you perceive rates may move upwards only. Case in point is, never for once can you overlook your responsibility as a borrower now.

Don't let the idea of burden bother you

Once the initial euphoria of becoming a home owner subsides, many of you may start thinking and then over-thinking about the debt as a burden. While it is a great thing to be acutely conscious of your responsibility as a borrower — you have to pay the EMIs on time, you have to make sure there are no defaults, etc. — do not let the idea of being under debt overwhelm you. Don't be in a pressing hurry to prepay the loan as soon as possible. Not only would such hasty move result in financial loss but it would also mean you have not been able to leverage the benefits that come in the form of a loan. It is only after doing all the calculations — take the help of a chartered accountant, if need be — before you hurry up to prepay.

Put your money to work for you

Some of you may be thinking of withdrawing your pension fund money to rid yourself of the big loan burden. This would result in lower monthly EMIs or a shorter tenure. This is not the best idea though. Using all your money only to prepay your loan is not what smart investors do. While a part of your savings could be employed in that respect, part of it should be put in channels from where you can earn good interest. Do be mindful of the fact that no matter how valuable your property is, it remains an illiquid asset. For your other needs, you would require liquidity. Wisely divide your earnings in different asset classes.

Keep looking

Home switching is one of the main characteristics of the property markets of the west. This trend is picking up in India, too. Far behind us is the time when we did not want to sell our first home, because of the emotional value attached to it. It would certainly be rough to get stuck in a small home for the rest of your life when there is an option to move to bigger and better home. In case this is your first home and you are yet to find your 'dream' home, you must keep your aspirations alive. If you are able to plan your finances wisely, you may be able to move to a bigger and better place by selling your current home at a profit.

Scrumptious rum cakes, vintage wine, stockings hanging from the mantel over the fireplace and the blissful humming of carols - yes, Christmas is just around the corner! From decorating your own Christmas tree to exchanging gifts, Christmas is all about spreading joy. This Christmas, you need to check whether your interiors are truly reflecting the Christmas spirit or not.

Though the possibilities are endless, we suggest a few simple and Do-It-Yourself (DIY) ways to deck up your home this Christmas!

Greet with a cosy, eco-friendly garden theme

The first thing that a guest will see when entering your home is the entrance. So, the entrance should make a good impression. A garden-inspired decoration theme is just apt to give a cosy and warm welcome to the guests.

Chinese lanterns are a great way to start!

Greet your visitors with homemade colourful Christmas lanterns. Decorating the entryway with lanterns is not old fashioned; instead, it radiates light and gives a sense of a warm welcome.

Make sure your outdoor spaces are not neglected

The outdoor space is a reflection of the inhabitants. While the basics like bells, ribbons, lighting everything should be in place, make sure the outdoor patio and neighbourhood set the right tone for Christmas. Having a well-lit outdoor is more welcoming than a single bulb or relying only on natural light.

Pretty Christmas pillow covers make all the difference

Replace the regular pillows and cushions with Christmas-themed ones. It's definitely one of the inexpensive ways to set the right mood for Christmas. A Christmas pillow cover not only infuses Christmas spirit but also gives a seasonal decorative touch to your décor.

Hang stockings

Add a personal touch to your Christmas décor, by hanging handmade colourful stockings from a mantel. You can also hang them in other places, such as the staircase, tabletops, windows and doors. Stockings are must for Christmas décor, as they are timeless and a guaranteed way to please the kids.

Make sure that the house does not look clumsy

Anything in excess is bad. Over-decorating the house renders it a clumsy and cluttered look. So, when you plan the décor, keep in mind the space factor. Restrain yourself from using too many things of a single kind and keep free space for the children to move around.

Top DIY Christmas decor ideas for 2021

While it is convenient to buy Christmas décor items from a store, there is something gratifying about DIY Christmas decorations. Fun to create and easy to follow DIY Christmas décor ideas rekindle bonds between family members, save a lot of money and are eco-friendly, says Swati Santani, VP design R&D at Design Cafe. We got a few tips from her and we are listing them here for our readers. 

DIY paper Christmas decorations: Opt for origami

When was the last time you created some magic with coloured paper? Well, Christmas gives you an excuse to indulge in crafts, again. Cut out intricate, quirky hangings from pastel-coloured craft papers, experiment with glitter and see how it adds more beauty to your festive décor.

DIY sustainable tips: Pair lights with glass bottles

Combine fairy lights and glass bottles. Entwine a string of subtle fairy lights with pastel glass bottles and set them up near your foyer or on the dining table. Now see how it peps up your family and friends and stirs up happy conversations! 

DIY vintage Christmas: Weave up a storm

Grandmothers are always right about knitting and its charm. Get inspired by all that nostalgia and weave up stockings, bows or recycle them from old, embroidered fabrics. You could place these woollen accessories by the Christmas tree or set them up near the foyer or the main door.

DIY wintery Christmas: Craft custom candles

Scented, handmade candles, winter and Christmas go hand in hand? Keeping that in mind, you can pick DIY candle kits off the market or make your favourite ones from scratch at home. Include your family and let them help you make candles. It’s a great way to bond together, during the festive season.

DIY seasonal activity: Create a cute wreath

Cannot imagine a Christmas party without a wreath, right? Instead of getting a cookie-cutter wreath from a supermarket, this year, why don’t you make it from scratch? Huddle with your family, friends and assemble an amazing wreath and bring home some more happiness!

DIY for a tropical Christmas: Design dried orange garlands

Dried orange is an epic sight to hold if done right and its tangy aroma can pep everyone up! Make the most of this seasonal, fruity décor then and tie dried orange slices in a garland. You could tie it around the Christmas tree or use it as markers on the dinner table. It would rejuvenate everyone’s senses and make your Christmas look and feel more festive!

DIY for table Christmas decorations: Set up mini planters

Choose seasonal mini planters like pine or cone and pair them up with rustic pods or small buckets, for a feel of winter. You could place them on the dinner table or coffee table, to add some greenery.

So, as you don your Christmas cap and sing ‘jingle bells’, we wish you a merry Christmas season!

Photos source: Shutterstock

Long gone are the days when women depended on their spouses or parents to buy a dream home for themselves. Year after year the percentage of women homebuyers in the total property purchases in India has been growing. If you are one of those who have made up their minds to have a home of your own, here is what you ought to do to make sure your home purchase journey remains hurdle-free.

Decide what you want

Just because a colleague bought a 2BHK flat in a certain locality doesn’t mean you should do the same because you think the house grant. Your requirements might be entirely different. Your co-worker might have bought this property to let-out while you might be planning to move in in your new house.

As is true with clothes, in the world of property market, one size doesn’t fit all.

A smaller configuration, a different locality, a different housing society may suit you better.

Assess your financial position

No matter how emotional we make it sound, home purchases are strictly monetary in nature. This is evident from the fact that an intense urge to have a property can never be fulfilled without you having the financial wherewithal to materialise your intent.

So, assess your financial situation first.

Have you saved enough money to make the down-payment? Typically 20 per cent of a property value has to be paid upfront.

What is your home loan eligibility? As a standard practice, banks lend 80 per cent of the property value as home loan.

Who would you approach if you need additional help with money? In most cases, buyers seek help from family and friends to meet any deficits that might occur during the property-purchase process. Do make sure this money is officially taken as a loan and not as a gift. This would help you save taxes.

When a large part of your salary starts being deducted as an EMI (equated monthly installment), how will you manage your other monthly expense? To avoid monthly crisis situation, make sure not more than 40 per cent of your monthly take-home salary goes as EMIs.  

Do you have a clear idea about the associated costs that property purchase involves? A buyer has to arrange for stamp duty, registration charges and has to make several other big and small payments in course of the property purchase.

You will invariably have to make some major or minor changes in the existing property to make it more fitting for you. Depending on the kind of changes you want, you may have spend a good deal of money in this area, too.

Find out the benefits you get

Now that you have assessed the money you have to pay, let us also find out which are the areas where you can save. Financial institutions offer home loans to women borrowers at lower rates, when compared to their male counterparts. Typically, interest rates on home loans for women are lower in the range of 50-100 basis points.

Women borrowers also enjoy exemptions on home loan under Section 80C, Section 80EE, Section 80EEA and Section 24B of the Income Tax Act. Considering that the government, in Budget 2021, extended the scope of Section 80EEA for another year, first-time women buyers can now make use of this benefit, if they purchase a property till March 31, 2022.

In almost all Indian states, women have to pay less as stamp duty. In the national capital, for example, women homebuyers have to pay only four per cent of the property value as stamp duty, while men have to pay  six per cent stamp duty. The same is true in Himachal Pradesh. In Maharashtra, buyers can currently purchase a property by only paying three per cent as stamp duty.

Check out discount offers

This is actually a good time to invest in property. Data available with PropTiger.com show that real estate developers across India’s major property markets are in desperate need to sell off their existing housing stock - in India's eight prime residential markets there are over 7.18 lakh unsold homes, as on December 31, 2020. This helps you in two ways - you do not have to wait to move in and you are in a strong bargaining position. Further, realtors are also offering good deals on such housing units to incentivise house purchases during the Coronavirus-induced slowdown. All you have to do is employ all your energies in doing research. Once that is done, you can compare various offers and opt for a deal that suits you best. At this juncture, however, it is important to note that a good property, even if it comes without any discount or bonanza offer, is worth it rather than a weak property coming at a bargain price.

As property becomes more and more expensive despite an overall slump across the world’s major markets, single and aging women run the risk of living in rented accommodations for their entire lives.

"In an environment of exceedingly high house prices, groups who don't have secure, long-term employment, are at the risk of homelessness, particularly as they age. Single, older women are one such group at increasing risk of being homeless," authors Yvonne Hartman and Sandy Darab wrote in an article in The Conversation, talking specifically about the state of affairs in Australia.

Closer home, according to Census 2001, 7.4 per cent of India's women population was single — women who were unmarried, divorced, widowed, or separated. By 2011, their share to the women population reached 21 per cent, an estimate shows. In fact, India currently has the largest number of single women in its history, from 51.2 million in 2001 to 71.4 million in 2011, after witnessing an increase of 39 per cent. This means more and more women in India are deciding to stay single. Quite disheartening, though, is the fact that even if such women are able to somehow deal with the social stigma attached to being single, they would find it extremely hard to find a house even if they have the resources to buy one.

While the authorities have been formulating schemes to increase property ownership among Indian women, single women dreaming to have a room of their own are forced to confront the bitter reality of the real estate world.

Let us talk about the funds first, since that is the primary requirement when it comes to property purchases.

How she has to count every penny

The first and foremost problem will arise while saving for the down-payment. Typically, women employees earn much less than their male counterparts, a worldwide phenomenon. Little wonder then that they are not able to save as much as their male counterparts. At the time of their retirement, for instance, a single man will typically have more savings than a single woman.  So, even if a single woman decided to buy a home in the later part of her life, she may have to make certain compromises. She may not be able to buy a house in a locality of her choice, for instance, because the price is too high. If she decided to become a home owner while she is still young, the compromises she will have to make will be many more.

Is housing finance really that easy to get for women?

Now, should she worry since the world is full of banks, competing with one another to offer cheaper loans to women borrowers? There is more to it than meets the eye.

While banks may be offering a lower rate of interest to women, a single woman would have to work harder than a married one before she sees a financial institution accepting her home-loan application. As it is, banks are more willing to lend to those borrowers, who come along with a co-applicant, preferably their spouses. In the absence of a spouse, you will have to convince your parents to become a co-applicant since siblings would find it hard to avail of a home loan together. Age matters much here, too. While younger women with prospects of a rise in their incomes, and higher possibilities of having a spouse in future, may still manage to get a loan, a single woman, who is inching closer to her retirement, would often get a rejection on her loan application. All this makes it quite hard for a single woman to be able to afford a house. The fact that women across Indian states have to pay less in stamp duty is not really helpful because most single women may fail to reach that stage.

In most states, women pay at least two percentage points less as stamp duty on properties registered in their names.  In some states, such as Jammu, women homebuyers don’t have to pay stamp duty.

What could builders do to make things better?

As there is a huge business opportunity here, developers may dedicate certain portions in a project to this target group. A certain tower in a group housing project, for example, could be constructed keeping in mind the specific requirements of single women. Would it not be nice to have housing societies meant specifically for single women, built on the lines of senior living?

Today, even if a single woman can afford it, she would find it hard to bear the ever-judging gaze of her neighbours. Dedicated housing options would boost her confidence in investing.

The government. on its part. may provide incentives for developers for offering women-centric housing options so that this section of homebuyers is able to make the most of the rebate the government already offers to women.

Women are less likely to default on their liabilities, global studies have shown. Banks may want to go a little easy on such applicants next time an application by a single woman comes their way.

Buying a home within city limits is an expensive affair. Home buyers with modest budget are moving to the outskirts to find an affordable den. However, these outskirts and suburban areas are not always a part of city's municipal corporation. These areas are governed by Gram Panchayats. So how are these properties and real estate markets different from those which are covered under municipalities? Here's the explanation-

Why are Gram Panchayat properties popular?

Rajesh Sharma is a techie by profession and lives on rent in Pune. He had a stable job in Kharadi and wanted to own a house of his own in the nearby area. The property prices in nearby areas of Kharadi were touching Rs 7,000 per sq ft. However, one of the closest localities to Kharadi is Keshavnagar which has been notified to be merged in city limit, is still offering properties at a price range of Rs 4,500-5,000 per sq ft. Although, the merger is still pending but would be happening in near time and experts are speculating price rise in short time. This has resulted in launch of some of the premium projects in the area by reputed developers.

Buying a property in Gram Panchayat can be a good idea as the property prices here are comparatively lower than the nearest city area. Moreover, the potential of price growth is more as there is always a high chance that the area will get included with city limits in near future due to urbanisation and growing population in the area.

Also read: Why Maharashtra Villages Need More Than Just A Digital Connect

However, here is a checklist you must go through so as to make a sound investment in such an area:

The basics

Going for a peripheral area means you will be dealing with lack of purified water and at times power line failures. Many rural areas in the country still use groundwater or depend solely on wells for water consumption. Hence, the need of having water softening system at home becomes important. Before you buy the property, it is recommended that you run a water quality check to ensure that it is free of contaminants and dangerous chemicals. Also, know about the septic system to collect sewage and wastewater. It should have enough capacity to handle the occupants that will dwell in the property.

Rural areas, also, witness frequent power failures when compared to urban areas. Know the frequency of such failures in the locality you plan to invest in, especially during summers. Backup is what you will need. Check on how much does the property require.

Also read: Buying A Far-Off Property? These 6 Tips Will Help You

Connectivity

All said and done, you don't want to live in isolation. Gram panchayat properties can be far from the main roads or highways. Know how well-connected the property is from the main road. Are the connecting roads well-constructed and smooth? If not constructed well, rains can destroy these roads. There could be a possibility that you would have to maintain a certain stretch close to your home. Be prepared for the expenses.

What is included in the deal

Know whom you are buying from and what is he selling. If the seller is an agriculturist with a full-fledged farming spread, is he selling something else besides the home such as livestock and machinery? Negotiate well, because in case you plan to indulge in farming yourself, you will have a whole setup in place.

Size of the property

Spread in a huge area, determining whether or not the property is of the exact size as mentioned by the seller can be difficult. Run an inspection on the size of the property and determine the boundaries. This will ensure that you are getting what you are paying for and also, will be beneficial for you if taking a loan.

Cost of ownership

This is what you will be spending on the property to make it livable. Not just the price of the property, cost ownership has more to it. This would include your regular utility bills, repair works if any, fencing and taking care of the livestock, the farm, machinery etc. Maintaining a widespread property can cost you more than you thought. Be prepared to keep a budget for the monthly maintenance of the property.

Also read: Planning To Buy Property At 50? Here Are Some Tips For You

Also keep in mind the following

• You might need to compromise on your surroundings as the infrastructure provided by Gram Panchayat is of poor quality.

• The neighbourhood mainly comprises of local inhabitants hence the cosmopolitan touch of an urban landscape will be missing. But as the area develops, the gentry might change.

Also read: Does India Need Smart Villages To Sustain Smart Cities?  

• Builder prefers to buy a plot in Gram Panchayat area as the tax liability is less. Before investing, make sure that land title is clear and you have done the due diligence.

• Do not fall for false promises of your developer, enquire at the Gram Panchayat office about the merger notification if any or about the upcoming infrastructure expected to hit the market.

With inputs from Gunjan Piplani

When a house is bought, a dream is realised.  From here on, the proud owner will have to constantly strive to ensure that the reality remains as sweet as the dream was. To put it more plainly, sweat will have to be broken to turn this house into a home, and making it better every day. There is no way you would allow your precious property to lose its sheen. For this reason precisely, you may have to approach a bank for a home improvement loan. Considering there are also tax benefits if you avail of a home improvement loan, it only makes more sense to go for the same.

Within the Rs 2-lakh deduction limit that a borrower enjoys against the interest payments on home loans, Rs 30,000 can be claimed as deduction against home improvement loan interest from the taxable income in a financial year under Section 24 (b) of the Income Tax Act.

While you prepare to apply for the home improvement loan, here are certain points you need to know.

Should you find a new lender?

The banking sector is busy making loans cheaper for home buyers. With the RBI bringing the repo rate down to 4 per cent, banks are currently offering home improvement loans below 7 per cent interest. At HDFC, for instance, a woman borrower will be charged an interest of 6.95 for a home improvement loan of up to Rs 30 lakh.

Amid a demand slowdown, competition is so stiff that financial institutions announce new and better offers every day to claim more borrowers. This may get you thinking, should I go to another bank which is offering the home improvement loan at a lower rate? The rate offered by my current bank is comparatively higher. While there could be merits in going with a new lender, you need to be mindful of the fact that:

You application will be treated as new: It would be like applying for a new loan. This would mean you will have to go with all the formalities all over again. Because there is a certain formal process that will unfold, the time taken in the loan approval may be longer in case you go with a new lender.

Processing free: As it true of all home loans, applying for home improvement loan will also involve payment of a processing fee. This could currently range between 0.20-0.50 per cent of the loan amount.

NOC from current bank: Along with your home improvement loan application, you will have to submit a no-objection certificate from your existing lender. You will have to consult your old lender and obtain a certain no-objection certificate from it.

Property appraisal: Like it did while sanctioning the home loan, the bank will send an appraisal team to inspect the premises. Based on their feedback, the bank may or may not decide to grant you the amount you are seeking.Many factors are kept in mind before sanctioning a home improvement loan. For instance, the bank may reject your application if the age of the property or the applicant exceeds a certain limit. An applicant in the age bracket of 60-65, for instance, might find it difficult to get a loan. Banks also follow a standard practice and typically do not issue home improvement loans for properties older than 35 years. The repayment tenure is generally fixed at the highest limit of 15 years. Also, in case you plan to make certain structural changes in the structure, banks may not warm up to you to provide a home improvement loan.

Floating interest rate: Home improvement loans are generally issued on a floating rate of interest. You could negotiate with your bank and get it to provide you the loan at a fixed rate, too. However, the bank will always have the freedom to tweak the spread and change the rate. It would be a mistake to think that the fixed interest rate is actually fixed.

Also Read: 10 Types Of Home Loans Every Homebuyer Should Know

A research conducted by the University of Copenhagen in 2016 found that social media platform Facebook is making people unhappy. However, suffering more intensely are those users, who are affected by what the research terms as “Facebook envy”. Another study by the Indiana University in the same year found that users of social media platforms such as Facebook and Twitter often perceived themselves to be less popular than their peers, owing to a phenomenon known as “friendship paradox”. The knowledge of not being as popular as their peers makes people unhappy. Overall, these platforms, which are primarily used to connect with family members, friends and co-workers, cause a great deal of gloom to users. The more time you spend on these platforms, it appears, the unhappier you are!

"This analysis contributes to a growing body of evidence that social media may be harmful to users who "overindulge" in these services since it's nearly impossible to escape negative comparisons to their friends' popularity and happiness," says Johan Bollen of the Indiana University, succinctly putting across the larger point.

How does this concern a prospective homebuyer?

Social media can be used as an effective tool to look for homes and conclude the buying business faster. However, if you look differently, social media can also delay your home-buying plans.

How so?

The first thing a prospective homebuyer has to do is to save enough money to make the down-payment. But, oh, this buyer's Facebook friends have such a happy life! They frequent the best eateries in town; they wear and flaunt the best apparel brands; they go to all those exotic places to spend their holidays, and – Good Lord! – they get so many "likes" on the pictures they post!

On the contrary, this poor chap (our prospective homebuyer) is counting every single penny, abstaining from any splurge so that he can make the down-payment for a home-purchase deal.

We all know that this “Facebook envy” gets the better of us, most of the times. There would be a momentary lapse of reason, and we would be back on social media to show the world what a great time we had while dining at this upscale eating joint; how absolutely marvelous we seemed in our pricey new outfits bought from a uber-luxury brand; and what a great time we had while we stayed at a five-star hotel while visiting a foreign location. Satisfaction would be ours when we do a data analysis of the number of "likes" we received on the photos we posted on Facebook when compared to the number of "likes" a particular friend got for putting at display similar pictures of having a gala time.

Alas, the contentment, however, is not meant to be a long-lived one! It is certain that your “happiness” must have upset some of your friends, who would have pledged do go a notch higher to put you down. Amid all this turmoil, you would float between happiness and gloom with only one thing consistent ─ you will have to defer your home-buying plans because to script the having-a-great-time saga on social media, you seem to have exhausted all your monthly income. It would be wrong to imagine you could save anything at all. Or, could you?

I bought the house. Why should I be concerned?

Let us now assume that you have been successful in buying a house. You are also diligently paying off your home loan EMIs (equated monthly instalments). How possibly could social media interfere here? You do have an EMI to pay, and this does not leave you with an option to splurge. You have no choice but to shoulder all your monetary responsibilities.

However, this does not mean you are satisfied with denying yourself all the worldly pleasures while your friends seem to be having it all. Don't blame yourself if you are not able to pre-pay you home loan despite several hikes in your salary. You deserved a break, and so you did decide to go easy for a while. Those who know better about finances would advise you to pay more attention to a reduction in interest rates than watch with keen interest the attention your social media friends receive on Facebook. But, these advisors often do not get the point that in matters such as these, we want what we want; what we need is a thought often left unattended.

In the world of medical science, products invented to cure a particular disease often sow the seeds of a new breed of ailment among users. This particular medicine may be a breakthrough for researchers and a blessing for patients. However, that does not change the fact that there would be unavoidable side-effects of using the medicine. Information technology, too, seems to have inherited the same tendency. Who can dare to undermine the way IT has revolutionised our world? We are today more connected than we ever were. However, this revolution is not without its flaws.

Home loan interest rates influence the equated monthly instalments (EMIs) home owners pay toward a mortgage loan. The RBI's monetary policy deeply influences home loan interest rates, and eventually, the total amount of money you pay toward your mortgage loan.

The central bank is entrusted with many tasks which includes controlling the liquidity in the system, the extent of money in circulation, the operation of banks and the currency exchange ratio. Here are certain instruments, which the RBI or commercial banks use, and have a deep impact over your mortgage loan.

What Is Repo Rate

Repo rate is the rate at which the RBI lends to commercial banks, typically, against government securities. When the RBI raises the repo rate, it becomes more expensive for banks to borrow from the central bank. When the RBI slashes the repo rate by 25 basis points, for instance it becomes cheaper for commercial banks to borrow from the RBI. So, when the RBI raises the repo rate, home loan interest rates usually rise and when the RBI cuts the repo rate, home loan interest rates usually fall. When this happens, your equated monthly instalments decline too. But, this is not necessarily true because in certain phases, commercial banks have adequate cash, and they do not rely on the RBI to receive money.

What Is Reverse Repo Rate:

Reverse repo rate is the rate banks charge on funds they invest in government securities with the RBI. When the reverse repo rate rises, banks may raise home loan interest rates, because it becomes more profitable for commercial banks to invest in low-risk government securities instead of lending to people investing in property in India. When the reverse repo rate falls, home loan interest rates may fall.

What Is Base Rate:

A base rate is lowest interest rate that a bank charges its customers. The base rate is decided by the banks. It is within the rights of the bank management to change it. The RBI does not directly control it, though it influences it through the repo rate and other instruments. When the RBI cuts the repo rate, for instance, banks may lower the base rate.

When the central bank cuts the repo rate, many banks pass on the benefit to customers by cutting their base rates. In 2015, many banks took long to cut the base rate even after the RBI governor Raghuram Rajan cut the repo rate in January and March.

The base rate, however, is not the interest rate at which banks lend to home buyers. Though many public sector unit (PSU) banks tend to lend at base rates, many commercial banks add a margin to the base rate while lending. The interest rate that banks charge depends on many factors including your own credit worthiness.

What Is Cash Reserve Ratio (CRR):

Cash reserve ratio is the percentage of bank deposits banks need to keep with the RBI. CRR is an instrument the RBI uses to control the liquidity in the system. Currently, the CRR is 4 per cent, though the range of permissible CRR is between 3 and 15 per cent. If the CRR is four, this means that the banks will have to keep Rs 4 with the RBI whenever bank deposits increase by Rs 100. Higher the CRR, lower the amount of money banks can lend out or invest. So, when the CRR is higher, lower would be the liquidity and vice versa. It is not necessary that a hike in the CRR would lead to a hike in home loan interest rate. But, as a hike in the CRR reduces the supply of credit, when the RBI hikes the CRR, banks would raise home loan interest rates if the demand for credit does not fall proportionately.

What Is Statutory Liquidity Ratio (SLR):

Statutory liquidity ratio is the percentage of funds banks need to maintain in the form of liquid assets at any point in time. But, banks need to maintain these funds in the form of government securities, bonds or precious metals, and not in the form of cash. Currently, the SLR is 19.5 per cent. These funds are largely invested in government securities. When the SLR is high, banks have less money for commercial operations and hence less money to lend out. When this happens, home loan interest rates often rise. When the SLR is low, similarly, home loan interest rates are likely to fall.

Both the CRR and the SLR influence the extent to which commercial banks can lend out money to home buyers. If the RBI keeps both these rates too high for too long, banks would become cautious and lend less. Home buyers seeking loans would find this to be a difficult situation to be in.

Current Key Rates

In the expensive property markets of Mumbai and Pune, buyers are desperate to find affordable homes. Among all the affordable homes up for sale, these two cities in Maharashtra attracted maximum homebuyers, data show. In the past one year, for example, Dombivali, Neral and Panvel in Mumbai and Wagholi and Hinjewadi in Pune registered the highest sales of affordable homes, numbers available with PropTiger.com show.  Affordable localities that also saw great action include Virar (Mumbai), Alandi (Pune), Badlapur East (Mumbai), Naigaon East (Mumbai) and Dhayari (Pune).

Despite the demand, the supply however is limited. Why is that? “Mumbai is quite an expensive market. Despite the fact that builders have been resizing their offerings to allow discounts, they have not been able to meet the buyer requirements. Reducing rates beyond a point is not feasible for them,” explains Manoj Karmakar, a city-based real estate agent.

“We, a family of four, have been looking for a home of at least 1,000 square foot. This is basic for a family of this size, right? In Mumbai, this big a house is a luxury and may cost multiple crores, and our budget of Rs 75 lakh is too meagre for that,” rues Lata Mangesh, whose family has been on the lookout for an affordable property for the last three years. “We will need to compromise on the location in order to find a large home,” adds Mangesh.

Outskirts have emerged as an option for buyers in Pune, too but one has to compromise on livability factors. Tarun Tambe, who recently purchased a property to earn rent, finds the location disadvantageous. “I don’t see many would be willing to rent this property where the locality is far from developed,” points out Tambe.

Current real estate prices in the top ten localities in Mumbai and Pune

Karmakar is of the view that it is not easy to come across a property that is affordable in all respects - the twin parameters of price and size requirements in order to qualify as an affordable property has made it difficult. “Livability and price consideration are priorities. However, to ensure housing sales, developers go for different formats – 1RK, nano-housing, micro-homes, etc. These are ultimately very small spaces and suit the lifestyle of single professionals.” Sadly, demand doesn’t match supply and for a long time, this shall continue, notes Karmakar. 

*Source: PropTiger.com and Housing.com

Note: **Price range includes price of residential plots, independent houses and apartments.

Buying a new house is a celebration in itself and the best way to share this joy with others is to throw an awesome housewarming party. But the moment you are invited to one such celebration, you start wondering about what to gift?

Here is a list of ideal gifts for housewarming parties that will surely please the host and are also easy on your pocket:

Artifacts

Whether it is an apartment, a villa, a penthouse or a studio, artifacts make the best pieces of decor for a new home. And if the recipient is an art lover, gifting a work of art will make you his dearest guest. You may choose an item made of silver, brass, marble or terracotta. Vases, artistic table lamps, luminaries, idols, antique clocks, figurines or simply a decorative showpiece will be a priceless gift for art lovers.

Photo Credit-Pixabay

Monogrammed Gifts

Monogrammed gifts carry a sense of closeness. You can gift picture frames with the recipients initials monogrammed on it. A monogram on household items like welcome mat and glasses will be good for gifting.

Cooking Ware/Dinnerware

No matter how much one hates cooking, a new and modern kitchen is always an excitement for everyone. So, gifting cooking accessories, cutlery set, dinnerware and dining decor pieces will be a wonderful idea. You can also go for a customized dinner set with your special message written on each unit. A cookbook along with it will complete your gift set.

Gift Cards

One of the best and easiest gifts for a housewarming party is a gift card. A gift card to a restaurant and home decor shops like Home Town will make a useful gift. Such gifts are really appreciated by people nowadays.

Photo Credit-Pixabay

Potted Plants

Everybody needs something for the outdoor decor. A potted plant for their patio will be an ecofriendly gift. If your host does not have balcony in his flat, gift him indoor plants like Aloe Vera, Bamboo Shoots, Snake Plant and Chinese evergreen. These are elegant for decor and do not occupy much space.

Wine/Champagne

If your host has got a taste for vintage quality wine and champagne, he will be very happy to see you coming with a nice bottle of his favorite drink. Pair it with a corkscrew or a cool set of bottle stoppers and there you go.

Photo Credit: Pixabay

Indoor Games Set

Gift a set of indoor games like Monopoly, Chess, Twister, Cluedo, Jenga and Scrabble and you will make the hosts as well as their children happy. Encourage them to invite you for a game later.

Besides the above mentioned items, you can also gift some special things like luxury candles, candle stand, tool box, bouquet, home appliances, melamine, paintings, showpieces and home appliances. There are many gift options but you should choose it according to the taste and preference of the host.

Want to suggest some more gift ideas for housewarming parties? Write it in the comment box below.

Those who have decided to invest in a property this festive season will find that there are many perks associated with home purchases currently. As a homebuyer, it’s in your best interest to take note of what lies at your disposal in the current market and make the best use of the opportunities. However, at all times, caution should remain the keyword in your searches.

Home loan rates at a record low

Interest rates are at a record low, with some banks offering housing loans at an annual eight per cent, after switching their lending benchmark from the MCLR (marginal cost of funds based lending rate) to the repo rate.  The borrower would also have the option to pick between the two.

Word of caution: Going for repo-rate linked loans makes sense only if you keep yourself abreast with monetary policy developments and are able to keep up with the changes that may come your way suddenly.

You may like to read: Banks Told To Link Home Loans With External Benchmarks From Oct 1

Fewer discounts to avail of

Developers are having a hard time dealing with the liquidity crisis amid the recent defaults by some well-known non-banking finance companies (NBFCs).  So, discount offers are far lesser in number this season. However, deals, including stamp duty and registration charges waivers, may fuel the festive spirits. Electronic appliances, free amenities and gold coins are also being offered by some developers to improve sales numbers.

Word of caution: Never let go of a property you know to be good only because the builder isn’t ready to negotiate. Making short-term gains on a property purchase would invariably prove a wrong choice in the long run.

Opt for ready inventory, for easy bargains

Data available with PropTiger.com show that India’s nine realty markets currently have nearly eight lakh unsold housing units. Caught amid slowing sales and drying sources of funding, builders are desperate to offload this stock. This presents a great opportunity for buyers looking for ready-to-move in homes this festive season.   

Word of caution: Check the age of the unit and make up your mind about the purchase based on that fact. Also, note that property rates have already undergone major corrections in the past five years, especially in the national capital region (NCR), and the promoter can’t be expected to lower the price dramatically.

Home buying is followed by housewarming ceremony, conducted usually on auspicious dates after consulting a priest. According to the Hindu panchang and Vastu, there are few shubh mahurats that are considered lucky for griha pravesh. If you too are planning to shift into your new home in 2019, here are few dates which are termed as auspicious according to the Hindu panchang.

 Griha Pravesh Mahurats In July (Shravan), August (Bhadrapad), September (Ashwin) 2019

Homebuyers should avoid shifting to their new home in July, August, September. According to the Hindu panchang, the period is inauspicious and could bring losses, health issues and troubles.  

Griha Pravesh Mahurats In October (Ashwin) 2019

There is only one suitable nakshatra for Griha Pravesh in October which is October 30. The Deepawali will fall on October 27. You can consult a priest for other auspicious dates around Diwali. 

Griha Pravesh Mahurats In November (Kartik) 2019

There are many mahurats in November for Griha Pravesh ceremony. The first mahurat in Kartik falls on November 2, 2019. Here are other mahurats in the month of November. 

1) November 9, 2019

2) November 13-15, 2019

3) November 21-22, 2019

4) November 30, 2019

Griha Pravesh Mahurats In December (Marghsheesh, Paush) 2019

House-warming ceremony should be done only during the initial days of December as the Paush (the Hindu month for December) is considered inauspicious and brings bad luck for the family. The shubh mahurats for house-warming in December are-

1) December 6-7, 2019

2) December 12, 2019

Griha Pravesh Mahurats In January (Magh), 2020

January is also known as Magh according to the Hindu panchang. There are only few auspicious mahurats or nakshatra in January for griha pravesh ceremony. However, Makar Sankranti that falls on January 14, new homebuyers are advised to do charity on that day for well-being and prosperity of the occupants of their new home. 

1) January 2: 4.23 AM to 9 PM

2) January 8-9: 4:14 AM to 3.44 AM

3) January 29-30: 12:13 PM to 1:19 PM

Griha Pravesh Mahurats In February (Faghun), 2020

There is many mahurats for griha pravesh in February. Consult the local priest if there are other mahurats based on your horoscope. Here are some of the auspicious mahurats in the month- 

1) February 5: 12 AM to 9.31 PM

2) February 26: 12 AM to 10.08 PM

Griha Pravesh Mahurats In March (Chaitra), 2020

There are not many auspicious dates for griha pravesh ceremony in March after and before the festival of Holi. Here are few dates that you can consider for the housewarming. The first auspicious date for Griha Pravesh ceremony falls on March 2.  Following are other prospective dates that you can consider-

1) March 2: 8.55 AM to 12.53 PM

2) March 30: 12 AM to 2.01 AM

Griha Pravesh Mahurats In April (Baisakha) 2020

There are some really auspicious mahurat for housewarming ceremony in April. Akshay Tritiya is considered to be the best time for shifting to your new home. This year, the eve falls on April 26. There are few other suitable days in the month that are auspicious for Griha Pravesh. 

1) April 6: 12.16 PM to 3.52 PM

2) April 8: 6.07 AM to 8.04 AM

3) April 27: 2.30 PM to 11.59 PM 

 Griha Pravesh Mahurats In May (Jyestha), 2020

The month of Jyestha consists of last few days of May and initial days of June. The initial half of May is Baisakh which is considered very lucky for housewarming ceremony. You can consider following shubh mahurats for griha pravesh ceremony:

1) May 4: 12 AM to 6.13 AM

2) May 25: 12 AM to 6.10 AM

Griha Pravesh Mahurats In June (Ashadh), 2020

As per the Hindu Panchang, June comprises of Jyestha and Ashadh. The housewarming ceremony should be considered in Jyestha and not in Ashadh. Consider following dates for your house-warming ceremony-

1) June 1: 12 AM to 3 AM

2) June 5: 3.16 AM to 4.43 AM

3) June 15-16: 5.23 AM to 3.18 AM

Griha Pravesh Mahurats In July (Shravan), August (Bhadrapad), September (Ashwin), October 2020

Homebuyers should avoid shifting to their new home in July, August, September. According to the Hindu panchang, the period is inauspicious and could bring losses, health issues and troubles.  

Griha Pravesh Mahurats In November (Kartik) 2020

There are many mahurats in November for Griha Pravesh ceremony. The first mahurat in Kartik falls on November 16, 2020. Here are other mahurats in the month of November. 

1) November 16: 7.06 AM to 2.37 PM

2) November 19: 9.39 PM to 9.59 PM

3) November 25-26: 6.52 AM to 5.10 AM

4) November 30-December 1: 2.59 PM to 6.57 AM

Griha Pravesh Mahurats In December (Marghsheesh, Paush) 2020

House-warming ceremony should be done only during the initial days of December as the Paush (the Hindu month for December) is considered inauspicious and brings bad luck for the family. The shubh mahurats for house-warming in December are-

1) December 10-11: 10.51 AM to 7.04 AM

2) December 16-17: 8.04 PM to 3.17 PM

3) December 23-24: 8.39 PM to 4.33 AM

If homebuyers are confused about the timing of their purchase, their confusion generally ends towards the festive season. According to experts, the festive season is the best time to invest and reportedly, one-third of the property sales that take place in a year are registered during this season. Now, if you are planning to buy a property in the national capital region (NCR) this festive season, we list some offers that you must take note of.

Offers unlimited

Developers are offering better payment plans as well as freebies this festive season to clock better sales. Let’s check out some of the offers.

*Mahagun Group has already launched its Great Indian Property Bazaar which offers GST waiver, free car parking, modular kitchen, club membership, etc., on most of the projects.

*Gaur Group is offering assured gifts with every purchase such as free registry, air conditioning, semi-modular kitchen, LED TV, etc. Apart from this, buyers can also get a chance to win a gold coin, a refrigerator, an air purifier, a washing machine, an Armani wrist watch, etc.

*Gulshan Homz is offering free covered car parking, power backup, club membership and lease rent at its newest project on Noida Expressway.

*Bhutani Infra is offering premium electronic gadgets with every booking. This includes iPhone, iPad and LED TV.

*Saya Group is offering possession-linked payment plans for homebuyers under which buyers can book the units at 30 per cent down payment, another 20 per cent at the time of applying for occupancy certificate and the remaining 50 per cent at the time of possession.

*SG Estates is offering monthly rental till possession along with free club memberships, LED TV, chimney, etc.

*Homebuyers purchasing units with Spectrum Metro can win assured gifts up to Rs 1 lakh on every purchase and a Mercedes Benz.

* Urbania Spaces is offering dinnerware and Samsung tabs on every booking of 100 sq ft and 200 sq ft at its commercial project.

*Housing.com, part of Elara Technologies, which also owns PropTiger.com and Makaan.com, has announced its annual, online home shopping festival, Home Utsav 2019. The month-long festival will start from September 25, 2019, offering a unique platform for home seekers to find their dream homes during this festive season. This property extravaganza will connect top developers and channel partners, to millions of potential home buyers across the country offering the best deals, exciting offers and new product features.

This may turn out to be the festive season real estate developers in India have been waiting for for a long time.  Reluctant buyers, who have been keenly watching from a distance the many developments taking place in the sector in the past couple of years, may this festive season change their mind about being mere spectators. Several states are about done setting up real estate regulatory authorities. The Goods and Services Tax (GST) has also subsumed the many levies buyers of property had to pay before July this year.  On its part, the Reserve Bank of India has also reduced key policy rates, bringing down the overall cost of borrowing a home loan. Banks, too, have reduced rates in the recent past. Additionally they are also offering attractive options to customers keeping in mind the festive season.

"The influx of liquidity in the system has ensured attractive home loan rates which combined with the positive effect of GST on ready-to-move homes will hopefully turn fence-sitters into buyers," House of Hiranandani Chairman and Managing Director Surendra Hiranandani told media recently.

Also read: If Real Estate Brought Under GST, Buyers Will Pay Negligible Tax: Jaitley

Developers are also leaving no stone unturned to ensure fence-sitters get out of their tarrying state. While some of them offering buyers free car parking, modular kitchens, gold chains and other pricey appliances, others are giving you cost-free maintenance for a year or a waiver in stamp duty or a free holiday at a foreign location. The selling game seems to have gone several steps ahead with some developers willing to shelter you in their ready-to-move-in units till the time your under-construction property is ready if you decide to invest with them this festive season.

Such offers would certainly be hard to resist, would they not? However, great precision on your part would be required to make the most of these offers. While making up your mind about an offer, you most certainly have to assess your financial condition, apart from looking for the finer details of a discount offer that looks too good to be true.

Examining the offer

As you may have experienced after making impulsive purchases of daily items, most discount offers may be more baffling than dazzling. You end up buying something to attain something for free. Sometime, you would end up wondering whether you needed any of the two items, at all! We are certain that home buying is much different. The ticket-size of the purchase is big enough to keep a check on your impulsive behaviour. However, you cannot completely deny that discounts do move you deeply. The sellers would not be carving these offers, spending lakhs of rupees if they did not yield desired results. Suppose you find the offer to occupy a ready-to-move-in property of this developer while your own home is getting constructed quite reasonable. How better can it get? It is not for some gold chain or a free modular kitchen that you are falling for, after all! At this juncture is it important to pay attention to one crucial point --- what is the cost of this property you are investing in? Make sure the prices are inflated to make up for the losses the developer might incur in letting you occupy its ready-to-move-in unit for the time being. At no point during the entire home purchase process, you can overlook your responsibility of carrying out cost-benefit analysis.

This task is not limited only to picking the best property. The same is true when you go looking for a home loan.

EMI waivers and cash-back offers may all be quite good, but you as borrowers have to be mindful of one crucial fact that most of these offers are created to hold you up for a longer period. For instance, you would be able to reap the benefits of the offers only if you stick with a bank for a certain period. Considering we Indians like to pay off our debts as soon as we can (an average Indian borrower pay off his loan in a matter of 8-10 years), opting for a home loan plan that demands you stick with a financial institution for a long period may not be ideal.

Examining within

It would be better if we get done with this examination first. This may be the best time to invest in property. Rates are down; loans are cheaper; discount offers are in aplenty, et cetera. While concentration on outside movements, we often fail to assess our financial position as far as home buying is concerned. Yes, there are banks which would provide you as much as 90 per cent loan to buy a home; Yes, you can make the big purchase with very little money since you do not have to pay a huge amount to the developer presently; Yes, rates may increase in future, making you feel sorry about postponing your plans! These are all fair points, but home purchase is a long-term commitment. If you though the spending process would end as soon as you are done with the developers, you are absolutely wrong. Your property would constantly demand more and more from you. Understandably, a house purchase decision should only be made if you are on a strong financial footing.

Also read: Are you ready to take a home loan?

The mere suggestion that this is an appropriate time to invest in property might have left many a reader flabbergasted — how can now be the time to invest in a property when several developers are facing insolvency, there is a crisis in the shadow banking world and the government is announcing relief packages for a sector that has been unsuccessful in springing out of a slowdown for over half a decade now?  Well, there is no denying that all is far from alright in the Indian realty sector. However, this has also presented a never-seen-before opportunity for buyers and investors to invest in a property.

The price benefits in a correcting market

Prices falling in key markets; rising in new growth centres: Barring a few exceptions, residential property rates across India have remained unchanged or declined than what they were five years ago, partly because overvalued immovable assets led to buyers ditching the market.

From Rs 5,250 psf in July 2015, property rates in Noida have declined to Rs 4,950 psf in July 2019, show data available with propTiger.com. A decline in prices was also seen in Gurugram, Noida’s posh peer. From Rs 5,000 to Rs 5,150 psf, prices have changed marginally in Chennai.

If this acts as a prompter for those buying property for own use, investors who would like to bet on an appreciation, have a reason to invest in Tier-II and Tier-III cities, which have turned out to be the next growth centres, infrastructure and price wise. The Reserve Bank of India’s House Price Index (HPI) shows Kochi property values increasing over 28.8 per cent in the third quarter of financial year 2018-19 when compared to the same period last year, the highest seen in any city. On comparing the price movement in the past five years, Lucknow has seen the sharpest movement with property prices increasing by over 13 per cent, shows the HPI.

Interest rates are at record low: With consecutive cuts, the RBI has brought the repo rate at a five year low of 5.40 per cent. Following the reduction, banks have also reduced interest rates on home loans. Bank MCLRs currently stand in the range of 8.30-9 per cent. To trigger activity, banks have also launched repo rate-linked products in the market, where borrowers could get home loans at an annual interest of 8.05 per cent.  

Higher tax deduction: The 2019 budget has proposed an additional Rs 1.50 lakh deduction on the home loan interest component for loans taken to buy units priced below Rs 45 lakh. This would substantially bring down the cost of purchase for buyers of affordable property.

Lower GST: Those who are investing in under-construction properties will also find it convenient to invest, since GST on affordable housing has been brought down to one per cent. For other projects, the levy stands at five per cent of the property cost.

Options aplenty

Ample ready-to-move-in stock: The various instances of project delays have discouraged buyers from investing in upcoming projects. Such buyers have a large ready-to-move-in stock to pick a unit of their choice and budget.

As of Q1 FY20, nearly eight lakh housing units are lying unsold in Indian’s nine prime markets, show data available with PropTiger.com and nearly half of these stocks are homes priced below Rs 45 lakh. Numbers available with the brokerage firm also show another 500,000 fresh units would join the market by March 2020.

Despite the increasing digitisation and all the advancements in technology, e-commerce and business, there is still the need for the presence of brick and mortar edifices. The purpose may vary from business to business - to accommodate staff, to store inventory or to have a brand presence in the physical world, for your customers. There are many factors, which go in to choosing an ideal location for your venture, whether it is setting the first shop or office, or expansion into a new area. Ideally, one would want their business to be located at the heart of the city. Here are a few factors you need to analyse, before setting up your business.

1. Accessibility

Being located at the heart of the city surely guarantees a more efficient system, to access your business location. If your business deals with a lot of deliveries, then, it becomes paramount that you choose a location alongside motorways and main roads. Do consider the rental or purchase price of these properties, as these can be sometimes very high. However, if your business relies on heavy footfall of customers, you would rather want your office to be located at the centre of the city that ensures maximum reach, presence and accessibility.

2. Competition

The density of businesses around your locality is crucial to your own. Also, the kind of businesses present there matters. Those businesses can either compliment your own or hinder its growth. Establishing a comprehensive list of the business in your area and segregating them into competitors and beneficiaries, might be a good idea before proceeding. Certain businesses profit from being around similar businesses. For example, in case of brokers (for any entity), people like to compare and weigh which broker is offering the best deal. Hence, being around more brokers will guarantee more traffic of customers and subsequently, increased sales. Likewise, if you plan on selling something unique, then, a location with an established market of buyers, may help in giving your business the initial boost that it needs.

3. Growth potential

One of the most common mistakes that budding companies make, is buying a place according to their current needs and demands. Being dictated by your current situation, without having an eye on the future, can prove to be costly. It is not easy to move entire office premises, once the business has been set and it can be both, costly and time-consuming. Before investing, ensure that if your business booms, your current location can handle that sudden spike in demand. Also, weigh the duration of your stay in mind. Although settling at the heart of the city suggests you have long-term plans, you need to envisage the duration of your stay and the subsequent rise in staff numbers and customers.

A prospective homebuyer does all things in his capacity, to materialise his plan as soon as possible. As fascinated as you are with the whole idea of home ownership, it would, however, be imprudent on many levels, to side-line diligence in your home purchase process. Mentioned below, are some choices that seem easy but may make your life difficult in future.

Choosing an unknown brand

Obviously, reputed developers make you pay for their brand name. However, since every penny counts, it is common for people to choose a small-time builder who does not have a big name that one is expected to pay for. Also, negotiations are easier with them, as compared to a reputed developer. It is important to choose a builder who has a good reputation in the industry, irrespective of how big his brand name is and has an impressive track record, especially if you are investing in an under-construction project.

Getting a co-applicant to increase your home loan limit

Banks prefer to have co-applicants in home loan applications, because if one party is not able to meet the commitment, the other party would be obliged to do so. This minimises the chances of loan default. So, they enumerate the many advantages of co-applying for a home loan, like availability of a bigger loan amount at lower rates. However, it is also not ideal for two people in a single household to be under debt at the same time, especially if one may desire to take another loan in future. Also, in case things go wrong between the co-applicants in future, a dispute with regard to ownership and debt might ensue

Under-valuing the property

This is a typical money-saving exercise widely practiced by both, buyers and sellers. By under-valuing the property on paper, buyers save on stamp duty and sellers save on capital gains. Often neglected throughout this exercise, is that if one were to sell this property in future, they would have to find similar buyers, who would agree to under-value the property and have unaccounted money for purchase. With increased scrutiny around realty transactions, it is increasingly hard to find such buyers. Also, by depreciating the value of your property on paper, you undermine its worth. If a problem were to arise in future, forcing you to leave the premises and be compensated for your immovable asset, you would get the worth mentioned on paper and not its actual value.

Doing everything on your own

Many home seekers opt to find the property without a broker, select the banks for processing home loans and are prepared to carry out the transaction, without seeking any help, legal, financial, architectural or such. Hiring a lawyer or a chartered accountant or an architect, would cost money which can amount to at least one per cent of the property value, which home seekers prefer to avoid. However, doing everything on your own, in this highly capital-intensive deal, might not be the best of idea. Seeking help, especially legal and financial, could save you from many big expenses in future.

It was in June, 2015, when Prime Minister Narendra Modi launched the Smart City and the Atal Mission for Urban Rejuvenation and Transformation (AMRUT) to deck up the infrastructure in Indian cities. The project was well received by the industry experts, and if executed with a will, the mission could change the face of cities and towns where even basic facilities are missing.

With the four year in the passing, PropGuide takes a look at the development in process in 500 cities listed under AMRUT:

Over 1,100 parks developed across country

According to the housing ministry, more than 4,288 acres of land is being enriched as green spaces and parks under the mission.  So far, over 1,100 parks have been developed under the mission across the country.  These parks have children friendly equipment, disabled friendly features, open gyms, etc.

Latest reforms

*Of the 97-lakh target, 62 lakh street lights have already been replaced with LED lights. 

*Energy audit of water pumps has been completed in 358 cities; MoUs have been signed for another 446 cities.

*The online building permission system (OBPS) has become functional in Delhi and Mumbai. It has also been implemented in 439 AMRUT cities. 

Formation of apex committees

To ensure effective implementation of the mission, the programme was planned to be managed at three levels- apex committee at the National level, State level High Powered Steering Committee and Urban Local Bodies. All three committees conduct time-to-time meetings wherein state level team submits an annual report of work done so far, current status and how funds have been allocated.

Funding

Being a centrally sponsored scheme, the funding assistance is provided to the extent of 50 per cent of the project cost in case of cities with a population of fewer than 10 lakh each and up to one-third in the case of cities with a population of above 10 lakh each. The total outlay being Rs 77,640 crore (including central assistance of Rs 35,990), the funds are being released in parts to the states keeping in mind the developmental work being done. So far 14 states which include Jharkhand, Tamil Nadu, Andhra Pradesh, Bihar, Chattisgarh, Karnataka, Gujarat etc., have received 20 per cent of the allocated amount under the scheme.

However, even after four years, out of the total budget only 15 per cent fund has been utilised, according to the statistics furnished by the ministry of housing and urban affairs. Around 1,885 projects worth Rs 5,075 crore (15% utilisation of total mission target) have been completed. More than half of the projects are under implementation (worth Rs 62,201 crore). 

Implementation

Since AMRUT Mission focuses on the basic infrastructure, following were the focus areas of the scheme with the budget outlay:

• Water supply- Rs 9,011 crore
• Sewerage facilities and septage management- Rs 32,456 crore
• Storm water drains to reduce flooding- Rs 2,969 crore
• Pedestrian, non-motorised and public transport facilities, parking spaces- Rs 1,436 crore
• Enhancing amenity value of cities by creating and upgrading green spaces, parks and recreation centres, especially for children- Rs 1,768 crore

Though AMRUT mission statement documented milestone and fixed timelines for each of the focus areas, some of the states are well ahead of the timelines and have implemented most of the tasks like developing e-governance platform, digitisation of Urban Local Bodies, professionalization of municipal bodies, review by building by-laws, municipal tax and fees and most popular of all- Swachh Bharat Mission.

While centre is yet to update the mission status on its official website, the previous data and monitoring report shows that states like Andhra Pradesh and Karnataka were leading the pack with maximum achievement of targets, whereas Haryana was lagging behind in several aspects like municipal taxation system, energy and water auditing, professionalising municipal cadre etc. Similarly, Punjab was almost at the bottom of the table when it comes to Clean India Mission targets while West Bengal had not yet started its e-governance platform and water sewage transformation works due to lack of funds.

Also read: Frequently Asked Questions About Real Estate Law

Even as millions of Indians struggle to find a roof over their heads, the country’s cash-starved developers are sitting on an inventory consisting of four lakh affordable housing units. Data available with PropTiger.com show, there were a total of 4, 71,372 unsold units till the end of June this year, in India’s nine key property markets. These numbers account for half the overall inventory stock in these cities.

This is ironic since the government has been launching several measures to push affordable housing in order to achieve its ’Housing-For-All-By-2022’ target. In the recently announced budget, the government has increased the tax deduction limit to Rs 3.5 lakhs annually on the interest paid towards home loan for units priced up to Rs 45 lakhs.

Inventory declines by 12%

However, the inventory stock in the affordable category declined by 12 per cent year-on-year (y-o-y) during the April-June quarter, this year. At over 1.39 lakh, Mumbai contributes highest to the unsold inventory in this segment, despite a 15 per cent decline in the past one year. After a 39 per cent decline, Hyderabad now has the lowest inventory stock in the affordable category. During the quarter ending June this year, Chennai was the only city where inventory stock saw an increase, at 20 per cent. The increase notwithstanding, Chennai still has the lowest inventory stock after Hyderabad during this quarter.

Sales fall by 7%

When compared to the same quarter the previous year, home sales in the affordable housing segment plunged seven per cent. As against 42,828 units in Q1FY19, only 39,824 units were sold in the same quarter this year. The sharpest decline in sales was registered in Noida (55%) and Hyderabad (42%) during Q1FY20. While the most impressive pick-up was registered in Gurugram, sales also increased in Kolkata, Chennai and Pune.

Launches decrease by 56%

Prevailing market conditions and monetary constraints continued to have an impact on new launches in the affordable housing segment also, with numbers falling 56 per cent y-o-y. As against 41,354 units launched in June quarter last year, only 18,042 units were launched in the same quarter this year.

Barring Gurugram, where launches tripled, they declined in all other cities during the quarter ending June 2019. In terms of numbers, the highest number of new units during the quarter was launched in Pune (4,069) despite an annual depreciation of 59 per cent. The sharpest fall in launches was seen in Ahmedabad, where only 259 units were launched during the quarter ending June, as against 5,403 units in Q1FY19.

PropTiger Q2 Report FY'16: 10 Facts To Know

Srinibas Rout

November 10, 2015: The PropTiger Data Labs has come up with its quarterly report on the real estate space in India for the quarter ending September (Q2'FY16). The report, Realty Decoded-Q2'FY16, covers and analyses various aspects of the residential real estate space including launches, absorption, inventory, and prices across key real estate markets in India. Although the sector as a whole remained cold in Q2, there were some positives too.

PropGuide lists 10 emerging trends from the report:

• No city other than Hyderabad saw a rise in number of new launches when compared to the second quarter of financial year 2015. Provident Housing launched over 2,000 units in the city during the quarter. A total of 2,998 units were launched in Q2'FY16 as against the 2,440 units in Q2'FY15 in joint capital city of Telangana and Andhra Pradesh.

• Both the number of units launched and units sold continued to slide. When compared to the first quarter of financial year of 2016, number of units launched dropped to 37,000 in Q2 as against 51,000, whereas number of units sold went down by 14 per cent to 49,000 from 57,000.

• Sales in Q2 outnumbered launches making the total outstanding inventory to reduce quarter-by-quarter. However, the reduction was between 5,000 and 12,000 a quarter.

• Apart from Gurgaon, all other cities saw a drop in sales. However, Gurgaon's numbers were just one per cent more than the previous quarter.

• In terms of investor, demand for homes in Bhiwadi and Sohna stood at 36 per cent and 33 per cent, respectively.

• With close to 60 per cent share, Mumbai, Bengaluru and Noida have the largest share of unsold inventory. Of the three, Noida has the highest unsold inventory in affordable segment. Gurgaon and Mumbai have a majority of unsold inventory in the luxury segment. The report says that only four to seven per cent of the total inventory is ready-to-move-in. Therefore, majority of the inventory overhang is in various stages of construction.

• With 57 per cent of the total number of units launched, the affordable segment (property priced below Rs 50 lakh) to continues stay ahead. The segment took a majority of share in the number of units sold as well. Nearly 52 per cent of total units sold were in the affordable segment.

• Ahmedabad took the pole position with the highest level of unsold inventory in ready-to-move-in segment. The city has also seen launches at higher price points compared to the last quarter.

• Down South, the garden city Bengaluru saw the highest price appreciation among cities in last ten quarters.

Irrespective of their size, brand and reputation, several developers offer possession of homes even when the projects are yet to receive an occupation certificate (OC) - a document that states a building is fit for habitation. Growing impatience among buyers and perennial delays to get the documentation work done at public offices, are the prime reasons why even big builders resort to such illegal acts. What should a buyer, who is aware that taking possession of a unit sans the building getting an OC is not only illegal (your ownership of the property becomes questionable; you risk eviction, face penalty and can be denied utilities) but highly unsafe (the building might have structural or operational flaws) do when a developer arm-twists them into accepting possession of such a flat? There have been several instances in the recent past where builders have forced property possession on homebuyers without the latter willing to do so in the absence of project OCs. Amrapali, Jaypee, Unitech, etc., have done so. Here are some of the options available to such an aggrieved home buyer.

Approach RERA

Under the provisions of the realty law, developers are obliged to obtain an OC before handing the unit over to buyers. Offering possession in a project for which, the application for an OC is still being processed is a breach of the real estate law and a buyer has every right to move the Real Estate Regulatory Authority (RERA) in his state to seek relief.

Note that all buildings that are yet to receive an OC, would be considered as under-construction. So, your plea would certainly be admitted in case your state has an operational RERA. Authorities in some states including Maharashtra and Haryana have also shown their willingness to offer relief in cases where a project is too small to fit under the purview of the law.

In case your state is yet to have a fully-operational real estate authority ─ West Bengal, for instance, has entered into a legal tussle to enact its own version of the central law and is far from having an authority that could work as yet ─ there are other platforms you could approach.

Move the consumer court

Recently, the Maharashtra State Consumer Dispute Redressal Commission offered relief to a Titwala-based homebuyer who was pressed into taking possession of the flat without OC. State laws give consumer forums the authority to take up the matter and provide relief to the aggrieved party. Since the state commission works through a three-tier system, a consumer has to first move to the district level court and then approach the state and the national forums if he is not satisfied with the orders of the lower courts. Value of the property also determines whether or not you can approach the apex body directly. 

Lodge an FIR

A homebuyer could lodge an FIR against the builder under Section 405 of the Indian Penal Code (IPC), which deals with 'criminal breach of trust.' Following this, an arrest warrant could be issued against the developer and he could be tried in court.

“In case the police refused to lodge the complaint, the homebuyer can also seek relief from the court under Section 156(3) of The Code Of Criminal Procedure which authorises courts to direct the police to lodge an FIR,” points out Prabhanshu Mishra, a Lucknow-based criminal lawyer.

You may like to read: All You Need To Know About Partial Occupancy Certificate

When India became Independent 72 years ago, women's right to own property was less secure than it is today. Women were rarely home owners. They hardly owned commercial real estate in India. However, this has changed over the decades. Banks and financial institutions notice that women are often applicants or co-applicants of home loans in India. As India celebrates its 73rd Independence Day, let us examine how the socio-economic status of women has changed:

• Before the Hindu Succession Act, 1956, a female heir had only a limited claim to an estate. However, under Section 14 of the Act, women were granted the right to acquire and hold property as absolute owners. Since then, daughters were granted the right to a claim to their fathers' estates.

• In 1961, the government passed a law giving women the right to sue their husbands and their families, if they were harassed over dowry. However, this law is largely ignored by women and society in general. According to Washington-based National Women's Law Centre data, every hour a woman is killed in India in a dowry-related dispute.

• Women in Jammu and Kashmir can now buy real estate and transfer property to their children, even if they get married to a non-resident as Article 35A has automatically become void with the scrapping of Article 370. The government of India abrogated Article 370 on August 5, 2019.  

• A significant fraction of the land in India is tilled by women. However, women's rights in such a property are vague due to the lack of a clear definition. In the recent past, there have been some efforts to grant property titles to women, who till the land.

• According to the Hindu Succession (Amendment) Act 2005, daughters can claim equal rights in the ancestral property acquired by their fathers themselves. They will also have the right to coparcenary property held by their father. With this, gender discrimination against women on matters related to property is eradicated to a large extent.

• Today, leading banks offer low-interest rates for home loans to women, if they are applicants or co-applicants of the same. For instance, State Bank of India charges a woman a home loan interest rate of 9.70 per cent, while for men the charge is 9.85 per cent. Banks are also more willing to lend to women, because they are more dependable borrowers. They pay their EMIs (easy monthly instalments) on time and are less likely to default on home loans.

• The government plans to build homes for everyone by 2022. It also insists that a mother or a wife should either be the sole owner or the co-owner of affordable homes. This is to financially empower women, who belong to economically weaker sections (EWS) and lower-income groups (LIG).

• Women's right to own property matters a lot, especially in developing countries such as India. Data show children are more likely to perform better, health-wise and in their learning process, when their mothers own property. Let us hope that in the next few decades, female ownership of real estate in India would rise.

In order to promote property ownership amongst women, many states are offering a discount or a partial waiver on stamp duty for buyers who are registering their property in a woman's name.

Stamp duty charges

Note: Charges are indicative and subject to change

With additional inputs from Surbhi Gupta

Fear works in mysterious ways. If not for this negative emotion that makes us anxious about almost all things, we won’t be inspired to take any of the steps that shape our lives positively. It is largely because of this fear that one aspires to owning a home. The desire to have a place of your own is more a question of safety ─ physical, mental, emotional and most importantly, financial. While it is good to be afraid as long as it works positively, it is absolutely needless to worry when there is no real reason behind it. It is in this context that we would talk about certain fears that homebuyers commonly face.

Credit is bad

Not so long ago, Indians relied completely on personal finances for property purchase. They would use their life savings and buy a property towards the end of their careers, mostly after retirement. Those who grew up in such credit-averse families find it difficult to live with the fact that they are under a debt, even when they can’t resist the opportunity provided by housing finance companies.

One need not spend their life in a rented accommodation because it would take their entire working life to accumulate the wealth required to purchase a home. Even if the price is in the form of interest to be paid, banks get you a good deal when they assist you with your home purchase. If handled responsibly and with utmost care, credit could work wonders in making your life easy. There is no need to panic for paying EMIs. Avoiding them unnecessarily will only result in you constantly dealing with a landlord and shifting homes.

What if I am making a mistake?

There are no guaranteed answers to that. Get those negative thoughts to work in your favour instead. Right from selecting the property to getting it registered, everything must be done with great precision and utmost care to avoid mistakes. Educate yourself diligently about the various steps involved in the home purchase process. “Since money is a big concern, most homebuyers try to save cost by doing everything on their own. This may result in monetary losses at a later stage. It would be financially prudent to hire a broker or a lawyer or an interior decorator or an architect if you are not well-versed with the work they do. Doing it yourself works only to some extent,” says Brajesh Mishra, a Gurugram-based lawyer, specialising in property disputes.

What if I get fleeced or cheated?

Chances of a buyer getting cheated or fleeced are higher only when they start believing in the 'unbelievable offers.'

“All one has to think is, why would someone offer you a great property at heavy discounts? No sooner than you think about it, you would save yourself from great many problems,” Mishra adds. Such risks would also be low if you pick a reliable brand, follow every regulation and hire a lawyer to make your investment risk-free.

What if the value of my property depreciates?

There are no guarantees about this. Property markets are influenced by several internal and external factors. While this may still be a concern for an investor who intends to flip his immovable asset in order to make profits, a homebuyer who buys a property for personal use must not let fears of this nature creep in.
“Only one in a thousand buyers is hard pressed to sell their property in order to meet other obligations. An end-user tries to avoid that situation at all times. Since such a buyer is not there to earn profit, the idea of price depreciation should not worry them. It certainly is good to see the worth of your property grow with time, but an investor has a bigger reason to worry about this than a common homebuyer,” explains Ankit Solanki, a Delhi-based independent property dealer.

Indian real estate is low on sales volume even after the many strategies employed by the various stakeholders. Data available with PropTiger.com show that home sales fell by 11 per cent in the April-June quarter FY20 amidst stable property rates and declining project launches. This overall market behavior leads one to assume that the luxury housing market must be performing even worse but it is not quite so. With the sense that prices might start moving upwards sooner and that luxury housing wouldn’t be as affordable as it is now, high-net-worth individuals (HNIs) and non-resident Indians (NRIs) have started loosening their purse strings. Private estimates show that the unsold housing stock in this segment has been declining across markets.

"The slowdown in Indian residential real estate over the last few years caused most HNIs to shun luxury housing and look at other investments within or outside real estate. However, HNIs are now using the tail end of the slowdown in luxury residential market to their advantage," according to ANAROCK chairman, Anuj Puri.

The rupee fall of last year also prompted NRIs to invest in India’s property markets, which, luckily for them, offered a wide stock to pick from. An improved regulatory regime also provided greater confidence among them to invest in India. So, the number of leads from this segment has risen substantially in the past one year, PropTiger.com data shows.

Typically, NRIs contribute nearly 8-10 per cent to annual housing sales in India. Previous trends show their share in annual sales as improved remarkably in the event of a falling rupee. In 2012, for instance, NRIs accounted for 25 per cent of annual property sales in India at a time when the rupee depreciated over 17 per cent between February and July.

Luxury housing in demand

Numbers available with PropTiger.com show luxury housing projects launched by some of the sector biggies in the past few years, evinced warm response among HNIs as well as NRIs.

For instance, only three units are unsold in Panchshil Realty’s Trump Towers, Pune, that was launched in 2012 and completed in 2015. The rates have also appreciated since – from Rs 25,000 psf in 2013 to Rs 27,500 psf now. Unity Group’s under-construction luxury project The Amaryllis Phase-1 and Phase-2, in New Delhi, has also received a good response.

Encouraged by the success of these projects, several developers have launched new luxury housing projects across Indian cities this year. Interestingly, these under-construction projects have also received a tremendous response from buyers.

Juneja Heights’ luxury housing project in Kolkata, launched in April this year, has already sold 79 per cent of the stock. Average rate of property in this project called Ospira is Rs 10,000 psf. Preeti Developers' villa-based project in Bengaluru has also sold 49 per cent of the units since its March 2019 launch.

Scouting for luxury homes? Here are some options

Among the many luxury housing projects that were launched this year are Kalpataru Group’s Imperia,Mumbai, Emaar group’s Digi Homes, Gurugram, Dasnac’s Burj Noida, Noida, Aparna Constructions’ One, Hyderabad and Baashyaam Constructions’ Poes Project ,Chennai. While Wadhwa Residency has launched its luxury project Pristine in Mumbai, Conscient Infrastructure and M3M India have also launched similar projects in Gurugram. The property rates range between Rs 9,000 psf to Rs 38,000 psf, in these projects.

Major financial institutions have reduced their lending rates, in order to make home loans cheaper. Incidentally, the top cities of the country have affordable housing options, i.e., units within the price bracket of Rs 10-30 lakhs. We list your options, in case you are looking for a property worth up to Rs 30 lakhs in the top nine cities.

Ahmedabad

In case you are looking for an affordable property in Ahmedabad, you have over 428 projects to choose from. Currently, average property price in Ahmedabad stands at Rs 2,800 per sq ft.

Bengaluru

The information technology capital of India may be popular for high-end housing options but there is no lack of affordable options. Data show that home buyers have the option to pick from over 419 projects, if you have a budget of Rs 10-30 lakhs. Currently, the average property price in Bengaluru stands at Rs 5,100 per sq ft.

Chennai

Over 407 projects await you in the Tamil Nadu capital, with the bracket of Rs 10-30 lakhs. Considering Chennai is among the costliest property markets in southern India at present, this seems a great platter. Currently, average property prices in Chennai stand at Rs 5,100 per sq ft.

Gurugram

Gurugram is another property market that is primarily known for its luxury and uber-luxury properties. However, those with a low budget need not worry. You have over 45 projects to choose from, in the price bracket of Rs 10-30 lakhs. Currently, average property prices in Gurugram stand at Rs 4,950 per sq ft.

Hyderabad

Hyderabad has never disappointed those looking for decent homes in a comparatively low budget. Despite the fact that there has been a remarkable change in the market dynamics, this trend has not changed. You could pick from at least 175 projects in your budget. Currently, average property prices in Hyderabad stand at Rs 4,900 per sq ft. 

Kolkata

A survey by Mercer recently revealed that Kolkata was among the most affordable cities in the world, in terms of cost of living. You can easily find an affordable property in the city. Over 477 housing projects await you, in the city of joy that will suit your budget. Property prices in the West Bengal capital stand at Rs 3,800 per sq ft, currently. 

Noida/Greater Noida

Noida happens to be a hotspot for those looking for affordable property options in the national capital region. Not only is the city replete with brand-new housing options, it also offers options across segments. In the budget that we are talking about here, you can pick from as many as 80 projects in Noida and 186 projects in Greater Noida. Currently, average property prices in Noida stand at Rs 3,850 per sq ft.

Mumbai

Mumbai is among is among the most expensive cities in the world. However, it is also a fact that the maximum city has place for everyone. Here, you have the option to pick from as many as 2,037 projects across Mumbai and its peripheries in Rs 10-30 lakhs budget. Currently, average property prices in Mumbai stand at Rs 9,200 per sq ft.

Pune

When compared to other cities, options available in our current budget in Maharashtra’s cultural capital are much less. Data available with Makaan.com, shows that you can buy from over 1,756 projects that fall in the Rs 10-30 lakhs budget. Currently, average property prices in Pune stand at Rs 4,700 per sq ft.

Note: The numbers are based on the data available with PropTiger.com.

In times when city development is on a new high, the municipal corporation cannot rely solely on its revenue sources, including tax and non-tax and government aid to fulfil the need. Some of these corporations are now finding new ways of public participation to raise funds and use them for developing city infrastructure. One of the new avenues of raising funds is municipal bonds.

Municipal bonds is a popular form of raising funds in the West. According to a report released in November last year by rating agency Crisil, globally, the US has the largest municipal bond market with $3.8 trillion in outstanding issuances (or 10 per cent of its overall debt capital market), and a broad investor base.

So, what are municipal bonds and how can they play a crucial role in the development of cities.

The rise of municipal bonds

According to Crisil, municipal bonds worth Rs 6,000 crore are expected to be issued by financial year 2020 by urban local bodies (ULBs), riding on policy and regulatory facilitations. This number is four times of what the municipal bodies have raised – Rs 1,550 crore – in the past two decades.  Till date, the total amount raised in municipal bonds is Rs 1,095 crore.

So far, three municipal bodies that have successfully raised funds by issuing municipal bonds. 

• The Ghaziabad Municipal Corporation and the Lucknow Municipal Corporation would soon raise a total of Rs 350 crore through municipal bonds. The LMC will raise Rs 200 crore to improve the drinking water supply and the sewage system in the city. On the other hand, the GMC will raise Rs 150 crore for the tertiary treatment of water for industrial usage.

• The Greater Hyderabad Municipal Corporation (GHMC) in 2018 raised Rs 200 crore by selling 10-year bonds it launched in December 2017. The issue was two times oversubscribed. The municipal corporation had plans to use the proceeds from the issue to fund a strategic road project worth Rs 3,518 crore.

• The Pune Municipal Corporation (PMC) raised Rs 200 crore in June 2017. The civic body sold 10-year bonds, proceeds of which will be used for a Rs 2,300-crore water project in the city. The PMC became the first municipal corporation in 15 years to raise money through this route. This issue was oversubscribed by over six times or over Rs 1,200 crore.

• The Ahmedabad Municipal Corporation in early 2019 raised Rs 200 crore through municipal bonds, funds of which are expected to be used to complete projects under the Central government's Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

Why municipal bonds?

Municipal bonds are debt instruments under which the investor is repaid the fixed amount of principal with interest over a period decided by the municipal body. These bonds come with a tenure of five to seven years. The money raised is then used to fund city development or maintenance projects.

• These bonds are a boon for the development of cities especially in times when there are many ambitious infrastructural plans. Bridging the funding gaps, these bonds can help fund various plans, including the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and smart cities and other road projects. The prime need of this project is to equip these cities with water, sanitation, waste and garbage treatment, sewerage, urban transport, street lighting, roads maintenance, etc.

• With the rising migratory population in cities, it becomes imperative for the ULBs to create new infrastructure along with upgrading and maintaining the existing facilities.

Credit rating

Just like other bonds, municipal bonds are also given credit rating, showcasing their investment worthiness. These ratings, given by rating agencies such as Crisil, range from AAA to D, with AAA being the highest and D, the lowest. Both PMC bonds and GHMC bonds have been rated AA, making them stable to invest in.

Property buyers usually get confused with terms such as freehold and leasehold. Let us discuss the difference between the two.

Freehold Property :

To understand it better, read the term by splitting into two i.e. free-hold. This means that the estate you are buying is free from the hold of any entity, besides the owner. So, the owner enjoys complete ownership and can use the land for any purpose (sell, renovate or transfer), keeping the local regulations in mind. Moreover, if one plans to sell such a property, it won't require any legal or government consent, and, hence, has less paperwork attached. Understandably, freehold assets are more expensive when compared to leasehold assets.

Leasehold Property:

As the name suggests, here the ownership of the land on which the property is built is leased for a certain amount of time to the developer. Generally, the lease period varies from 30 to 99 years.

If you are buying an apartment in a housing complex, it might be possible that the land on which it's built is leased. The future of such properties after the lease period is over is a bit uncertain, and somehow depends upon the amount paid by the society to renew the contract. Also, it's a task for the buyer to avail of loan from banks to buy a leasehold property. You would be surprised to know that majority of the housing options in Delhi, Mumbai (especially Navi Mumbai), Noida Extension and Gurgaon are leasehold properties.

Comparison between Leasehold and Freehold property:

Converting a leasehold into a freehold property

You can easily convert your lease-hold property into freehold if you have the GPA (General Power Of Attorney), a clear sale deed and an NOC (in case the land is under mortgage or rent). In addition to this, you need to pay a conversion charge to the authorities. In Delhi, you can get the status changed using registered agreement to sell and GPA only. You can also get the property converted on the basis of house tax assessment or proof of permanent electricity connection in case of non-sanctioned building plan.

Developers' view

For a developer, the most important concern while starting off with a project is to control the costs. To do so, they buy lease-hold land. As previously stated, such land is comparatively in-expensive.

Our view

If you have a choice, it is obviously better to go for freehold properties as they offer a better clarity on its future prospects.

Latest developments

• People running businesses or staying in rented or leased properties for decades in Lutyen's Delhi can now buy them in 11 of the 27 posh markets falling under the New Delhi Municipal Council's (NDMC) ambit.

• Starting April 2017, purchasers would have to dole out more for converting theirleasehold properties into freehold in the prime locations of the capital which have been leased out by the land and development office under the urban development ministry. Even those property owners who converted their leasehold properties to freehold between 2000 and 2017 would have to pay the revised rent, specific to the year when the deed was approved.

• Owners of around 50,000 leasehold residential properties of different sizes in Chandigarh can soon become sole owners of the houses. The rates have been finalised, too.

Smart Cities caught people’s fancy ever since the term was first introduced. In 2016, 100 to-be smart cities also surfaced. Soon, other topics of national interest such as demonetisation, Goods and Services Tax, insolvency and related amendments, took over the podium. Are you wondering what is the status of Smart Cities across the country?PropGuide reached out to infrastructure expert, Dr Harish Sharma, Chief Business Officer & Operations at Rudrabhishek Enterprise Ltd (REPL). The consultancy conceptualised Smart City planning and development in cities like Varanasi, Indore, Kanpur, Dehradun, Moradabad and Bhopal. Edited excerpts follow.

PropGuide: From its launch to now, how do you see the Smart City mission progressing?

Sharma: The smart city mission is an ambitious urban renewal and retrofitting project. The intention to develop smart cities is to revamp the current infrastructure to match the requirements of the population. Initially the progress was slow but now things are speeding up. Project development in various smart cities reflects the same. We expect that the smart cities mission will take fast strides as the Modi government comes back for the second term.

PropGuide: Tell us something about your experience with planning smart cities in India? What are the biggest challenges?

Sharma: A lot of challenges come up when a large- scale infrastructure development is planned. The legal set-up, inconsistency in policies and regulatory norms are the major challenges in a country like India. They affect the actual execution of projects. In a number of cases the policies of central and state governments do not align with each other. Apart from this, while the work is in process, policies are reworked.

 Planning for a smart city varies depending on location, culture, demographics and stage of development of each city. Technological interventions along with sustainability, liveability, social inclusiveness, and efficiency are key factors for planning framework of a smart city. REPL’s expertise in GIS, architecture, infrastructure, engineering services and project management helps us in effective planning.

 PropGuide: What kind of intervention do you seek from the authorities to make the mission materialize faster?

Sharma: The authorities should look towards easing the regulatory norms, setting up policies that should not be overturned or reworked in quick succession so that we can execute our plans effectively. Also, the central government and state government should frame the policies in sync with each other to develop sustainable infrastructure.

PropGuide: Will living in a smart city escalate the cost of living for an average Indian?

Sharma: Smart Cities Mission will have a positive effect on urban infrastructure. They will act as the primary growth drivers of the economy in coming years. The main motive behind developing smart cities is about streamlining the infrastructure and public facilities. With technological advancements the citizens will be able to live a hassle-free life that too without any cost escalation.

 PropGuide: Are we ready for a Smart City?

Sharma: Smart Cities are the need of the hour. These will bring in positive changes in the lifestyle of the citizens. It will change the existing landscape of Indian cities, making them better and automated solutions will eventually enable ease of living. It touches almost every aspect of living, including the infrastructure, environment, social inclusion, employment and economic growth. The change in the lifestyle will not be radical rather subtle, which will be easy to adapt.

PropGuide: Any thoughts on planning and implementation in our Tier II and Tier III cities? Is it easier or much tougher when compared to big cities of India?

Sharma: Actually, this whole smart cities mission is a very challenging project. Every city has its own set of challenges ranging from infrastructure, city dynamics, behavioural practice, etc. For example, we have Varanasi Smart City, Indore Smart City, Kanpur Smart City, Dehradun Smart City and Moradabad Smart City. The demography, area, population etc. are different in each of these cities. So, each of these cities have their own challenges.

We need to customise the solutions for each cities based on their demography and geographical structure. We can’t apply the theory of ‘One size fits all’ here. We need to understand the key issues and then provide the appropriate solutions. For example, Varanasi is a city with great religious and cultural importance so we need to keep those elements intact while bringing the changes.

Neeta Sharma, a 50-year-old HR consultant, bought a 200-sq meter land in one of the unauthorised colonies of Delhi and constructed an independent house on it. She received a sale deed, a power of attorney and a copy of Will registered with local authorities. Sharma even has a Voter id, a Permanent Account Number (PAN) card, and an electricity connection registered at the same address along with other important documents of the home.

But, 12 years after the actual purchase, Sharma and her neighbours who had property in the same area have recently received a notice from a third party to show their property papers at the local police station. The third party is reportedly trying to find out its 2000-sq-yard land but don't have the Khasra Number. On asking further, Sharma found out that other residents of the area have property papers with multiple Khasra Numbers. Since there were multiple sellers who sold the property to the existing owners, they didn't know the exact Khasra Number and therefore, mentioned nearby numbers as well. Now, if the third party proved that the actual sellers do not have any right over the land, the will, the sale deed and the POA can be nullified.

This is not the only scenario, many such cases surface in the lives of homebuyers who have invested in unauthorised colonies and did not perform due diligence. But, despite the risk involved, homebuyers still make such investments.

What makes unauthorised colonies more attractive?

Price rise: The demand for properties in unauthorised colonies is always on a high due to several reasons. First, there is a large scope of earning rental income as tenants prefer these colonies for offering similar units as that in the nearby authorised colonies at a much affordable price. Second, people who had black money invested in such colonies to earn monthly rent. Apart from this, realtors often speculate the regularisation of these areas which is one prime reason why property prices keep on a constant rise in such areas. 

Location: Most of the unauthorised colonies are located in proximity to a posh authorised colony hence, indirectly offering the infrastructural benefits to the residents here. For instance, Uttam Nagar lies near Janakpuri, Khirki Extension is close to Saket, Aya Nagar shares the common neighbourhood with Arjan Garh, and Rajiv Colony lies behind Rohini. All of these illegal colonies enjoy Metro connectivity and the development is driven by market demand including roads, parks and shopping zones.

Almost realistic facilities: Though illegal, these colonies have proper water and electricity connection for local residents. Some of these areas have been provided with gas lines as well. People staying here on rent upgrade from a 1BHK to 2BHK and settle here permanently.

On the flipside

Though consistent price rise makes properties in unauthorised colonies an attractive proposition, a buyer should not forget the hindsight of investing in these areas:

• Parking is a very serious problem in these areas as the developer does not follow the building code and constructs on the 100 per cent ground area.
• Internal roads are not developed nor maintained. Therefore, these are more prone to water logging and flooding in monsoon.
• Waste management, garbage disposal, sewage system in unauthorised colonies are always a challenge
• Public amenities such as parks, green space, community halls are missing
• Highly populated but the infrastructure is semi-developed
• The gentry is limited to lower to middle-class group
• Safety is a growing concern here as unlike gated complexes, there are no provisions for security arrangements.
• Banks do not offer loans to buy properties in illegal colonies
• The due diligence gets tough as it is hard to identify who is the real seller and the owner of the property

What does Delhi's state government say?

While Delhi government has promised to regularise the colonies and has opened the registry for the unauthorised area in 2015 but the process stopped mid-way. This was after the urban development ministry interfered asking to submit details of plot size and population in these colonies. In the latest move, the Delhi High Court has set up a committee comprising officials from the Centre and the Delhi government to decide the issue of regularisation of unauthorised colonies. 

Those who have been closely observing Kochi’s growth as a real estate destination would not be greatly surprised by the fact that this southern city has left behind all metropolitans and some of its key competitors in value appreciation. The Reserve Bank of India House Price Index (HPI) shows Kochi saw property values increasing over 28.8 per cent in the third quarter of the financial year 2018-19 when compared to the same period last year, the highest seen in any city. In contrast, overall rates in 10 key residential markets grew only 4.7 per cent, the HPI shows. Data available with Makaan.com also show rental yield in Kochi has increased 4.10 per cent in the past one year.

What could be behind Kochi’s tremendous rise in times of realty distress?

Some would tell you it has much to do with the Metro network

If you are not already familiar with this fact, the time you got to know Kochi is the first Tier-II city in India that has a running Metro network ─ mind you, the city was chosen over Kerala capital Thiruvananthapuram for the launch of the mass transit project. The Kochi Metro has already been running here for two years now providing better connectivity while working its magic on city real estate, mass transit systems are widely credited for.  As work progresses to connect other localities in the city under Phase-II of the project, rates are seen appreciating in areas that would be on the Metro map in the near future.

Some would also link it to the smart city tag

Kochi is among the 99 cities that would be developed under the Centre’s Smart City Mission. Betting on brighter prospects, domestic as well as NRI investors are betting heavily on brand Kochi.

Some others would credit the city’s growth because of its emergence as an IT hub

Exorbitant prices in Bengaluru and Chennai commercial real estate have nudged domestic start-ups and entrepreneurs to look for new and affordable space in the south. Hiring skilled workforce in these two cities where some the world’s biggest IT giants have offices is also comparatively expensive, especially for a start-up.

Just so we are clear, Kochi is the financial capital of a state that boasts 100 per cent literacy rate. What comes handier than Kochi in that case if you plan to start a business? Trend watchers are acutely aware of this opportunity. The four-lakh-square-foot IT park here, Infopark Smart Space Kochi, is their answer to that.

Some others would credit it to the rich NRI

A large part of Kerala’s migrant population lives in the UAE. Since immovable assets are the top choice for Indians, these NRIs like to park their money in real estate back home, fuelling the demand from outside. That is not all. Data available with Makaan.com show Kochi is a preferred destination for NRI investors and not just those who are from Kerala and settled in the UAE. Increasing demand from NRIs is another key reason why rates in Kochi have been consistently increasing.

Planning investment in Kochi?

In case you are planning to invest here, you might consider localities such as Kadavanthra, Elamkulam, Warriyam Road, Kaloor and Maradu. Data available with Makaan.com show these localities have seen highest livability score.

In case you are planning to invest in apartments, you would find a huge variety in terms of pricing. A unit may cost you as less as Rs 15 lakh or as high as over Rs 2 crore, depending on the locality, the unit size, the amenities offered in the project and the builder brand. Currently, there are 970 ready-to-move-in and 524 under-construction projects in Kochi.

Sector biggies such as Tata, DLF, Puravankara and Sobha have projects in the city. 

If we look a decade back, Wadala was just an area that housed commercial establishments, including factories and mills. When one casts a glance now, they would find number of gated communities and luxury apartments that dot across this centrally located area. Consequently, property rates have also undergone significant positive change in the past decade.  Since authorities have plans to boost infra and connectivity further, homebuyers would continue to be drawn towards this suburb in future, too.

How so?

Mapping Wadala’s future prospects

Upcoming CBD: Located between south Mumbai and the suburbs, this micro market will be developed as Mumbai’s third central business district (CBD) after Nariman Point and Bandra-Kurla Complex. When the Mumbai Metropolitan Region Development Authority (MMRDA) is done doing that job, Wadala will boast a mixed-use CBD, with over four million square metre of offices and residential space. Apart from boosting the job market in the area, the CBD will also push retail and hospitality sectors in a big way.

Better connectivity: In location lies the key to Wadala’s connectivity benefit. While the locality already enjoys smooth connectivity with south Mumbai and the suburbs, the MMRDA plans to develop an Inter-State Bus Terminus here to further improve road transport.

Also, the elevated road connector from the BKC to the Eastern Express Highway is aimed to provide an aid to the daily commuters a direct connectivity. This will reduce traveling time between the two major CBDs. The Eastern Freeway has also helped in minimising the travel time between Nariman Point and Wadala.

By 2021, the locality would also be on the Metro route, through Line-4 which will connect Wadala to Kasarvadavali via Ghatkopar and Mulund.

Social climb: This locality also boasts a well-developed social infrastructure, and that makes this place ideal for families.  

Wadala, for example, is home to several well-known education institutions such as the Veermata Jijabai Technological Institute (VJTI), the Vidyalankar Institute of Technology, the Khalsa College, the University Institute of Chemical Technology and South India Welfare Society, etc. Dr. Ambedkar Commerce and Law College, SNDT Women's University, Shri Bansidhar Aggarwal Model School and Junior College are are also situated here.

Also, Wadala has some renowned hospitals such as Indian Cancer Society, Group of Tuberculosis Hospitals, MbPT Hospital, Acworth Municipal Hospital for Leprosy, etc.

The area is also home to many recreational and entertainment spaces like sports clubs, theaters, shopping malls, etc. A number of churches, temples and shrines are also situated nearby. Wadala is also known for flamingo spotting.

Green sheen: The urbanisation of Wadala is well balanced with the ample number of green spaces that bring a sense of serenity in the hectic city life. Gardens like Mancherji Joshi Five Gardens, Karve Garden and Bhakti Park Garden create a sense of community and helps in creating social ties with the Wadala residents.

 The author is director, Siddha Group.

Our present is the most dominant factor when we decide to purchase a property. Since capital is the basic requirement, we assess our current financial position to understand what we can afford. Once that understanding is developed, we try to list out what our current requirements are. In our pursuit to meet our current requirements, we often overlook the future. That would certainly not be a wise idea.

Your requirements change with time…

He made his family and friends proud when Mohit Thapaliyal, 31, bought a 1BHK home on the top-floor of a two-storey building in east Delhi's IP Extension. Since it was only a two-storey construction, there was no provision of elevators in the building. This did not matter to young Thapaliyal till one day he realised his ageing mother cannot visit him often ─ it is no less than a Herculean Task for a woman of her age to take that narrow flight of stairs. When Thapiyal decides to start his own family, he might also find it difficult to live in a 1BHK home.

His example shows us a lot of thinking must be done about the future when we purchase a property. Sure, you have an option to sell the property and move to a bigger and better place which would meet your future demands. However, those who have gone through the process would tell you that job is easier said than done. If you are buying a property for end-use, you would not like to engage in the process again and again.

…and so does your financial position

In the above-mentioned example, Thapaliyal might have bought a 1BHK because of monetary constraints. Buying and maintaining a bigger home would have been costlier for a single man. So, he decided to make a compromise. Not even for a moment, he considered the fact that his income was going to rise in future—a factor that would enable him to purchase a bigger home at present, in case he is able to save a substantial amount of down-payment.

If you are spending Rs 25 lakh in a big city to buy a 1BHK, another Rs 10 lakh will put you in a position to go for a 2BHK unit, pricing trend show.

In case you are not able to arrange the down-payment or are not eligible to get that kind of loan, it would better to put on hold your purchase plan for a little longer, save money more, and then go for a bigger and better unit. Unless exceptional changes are made, rates of property would not shoot overnight, rest assured about that.

The Narendra Modi-led National Democratic Alliance is set to form the government for the second time in a row, trends show. India’s real estate sector will certainly benefit when Modi comes back to spearhead the government at the Centre.

How so?

On the right course

Several projects aimed at providing housing to the country’s marginalized sections that were launched by the Modi government are still underway. These include the smart city mission, the housing-for-all-by 2022 mission, etc. Modi’s second coming would mean work on these will continue without any interruption. This is the kind of stability India’s economy in general and real estate in particular needs at this juncture.

This would be a motivation for India’s real estate developers, too, who have been keenly waiting for the election outcome for clarity’s sake. Project launch schemes that were put on the backburner would take the front seat now. Better clarity on goods and services tax-related issues would also help them sell their existing housing stock faster.

“In the long run, we expect the sector to grow in terms of earnings and homes delivered. We hope that policies introduced in the previous term such as the GST and the RERA are seen through and implemented smoothly in this term. Further, we hope that the new government puts the economy at the forefront and continues to carry out reform in the realty sector by creating jobs and augmenting growth,” says Farshid Cooper, managing director, Spenta Corporation.

The new government is also expected to bring better clarity in terms of the real estate law and the insolvency code.

“The government needs to harmonise the working of the RERA and the IBC- multiplicity of legal proceedings needs to be avoided. The government needs to deliberate if it would be prudent to vest exclusive jurisdiction for all disputes between developer and purchaser with the RERA. At present, flat purchasers have the option of approaching consumer forum and the National Company Law Tribunal (NCLT),” says Abhishek Sharma, partner, Cyril Amarchand Mangaldas.

Banking on better future

Large-scale delinquencies have led to banks and non-banking finance companies fighting shy of lending to real estate developers, putting further stress on the cash-starved sector. The developer community expected the new government to resolve that issue, too.

In its previous stint, the government largely focussed on planning and building highways and expressways to connect the interior regions of states. With the NDA coming back to power, these plans will shape up, boosting property markets along the corridors in Tier-II and Tier-III cities.

The new government will also have to streamline norms on development projects taken up in areas where tribal rights are involved. Several infrastructure projects which involve diversion of forest land for non-forestry purposes have been stalled because of unclear compensation rules and environment clearance policy under Forest Rights Act.  

"The strong and steady government should bring about stability with remedial actions without much delay to revive the shock of last quarter economic growth. The stable government reflects the faith reinforced by the aspirational India which enhances the confidence index domestic as well as globally," said Dr. Niranjan Hiranandani, national president - NAREDCO

The concept by itself is quite appealing – home are not just roofs and walls made of bricks and other construction materials. They are places that fill our being with a sense of security, price, and happiness. They also stand as the testimony in front of the others that we have grown and achieved something in life. For all these reasons and more, almost all of us want to own a property. However, the gratifying concept is not without its own set of apprehensions and pangs. As we plan and work towards the implementation, many questions arise in our minds. But, in case of the new-age homebuyers who are looking for affordable options to somehow make the purchase possible, these questions are very basic.

Am I ready for this?

Your wife is fed up with shifting rented accommodations. Your colleagues are shifting into their new homes and so are your friends. The pressure on you to have a place of your own is mounting every day. Even your parents would not be convinced that you have "settled down" or have "achieved something in life" till you become a property owner. So, you gather all your courage, accumulate all your funds, and start your search for an ideal property. Not that you yourself are not charmed by the whole concept of being a property owner, you still keep questioning ― is it really that important or am I succumbing to peer pressure?

Will I be able to shoulder the debt burden?

You were about 30 when you took the loan to buy your house for a repayment tenure of 30 years. Technically, for a period of 30 years you will be obliged to follow a certain regime to shake the load off. This could be an overwhelming thought? What if I get tired of my job and want to quit? What If I get sacked? What if I begin to dislike the property and try to sell it and fail to find a taker? Worst of all, what if I pass away and this huge responsibility falls on others?

Also Read: Factors That Can Help You Decide Your Home Loan Tenure

What if I default?

Bank finance has really made it possible for a common man to dream about owning a property and materialise it, too. But, one would hardly find a borrower who does not get apprehensive about the whole concept. What if I lose my job one day and am not able to pay my EMIs (equated monthly installments) for some time? They will snatch my house from me? These are scary thoughts and keep borrowers on the edge all the time. Such fears are also behind borrowers trying everything in their capacity to pre-pay the home loan.

Also Read: Not Able To Pay EMIs? Here Are Your Options

What If I get duped?

It will not be wrong to say that incidents that make the headlines are often unpleasant in nature. A piece of good news is often hard to find. The same is true of real estate, too. News reports about one developer delaying project and other duping buyers are really dampening for the spirits of someone who is planning his own house purchase in future. At the back of his mind, this prospective buyer will keep feeling the lingering fear of getting duped. It would also not be wrong to state here that this personal sentimental fear of the common man can do great harm to a sector. The current state of affairs in India's real estate is a fine example of that.

It is common knowledge that the money you pay to the government as stamp duty and registration charges is used for your own benefit as a member of the society, but one could hardly be expected to look at the big picture when one is stuck in an immediate financial conundrum — arranging all that additional money that a house purchase involves is no easy task, and it is often so frustrating that one would resort to any means to lessen the burden.  At a time such as this, one would need little convincing to fall for it immediately if you told them they could indeed lessen their burden by under-valuing their property.

Since the stamp duty and registration charges have to be paid in proportion to the property value, under-reporting the value would help you cut corners.

If you register your property at Rs 45 lakh even though it actually cost you Rs 50 lakh, for example, you could be saving some money. Supposing five per cent is the stamp duty charge, you would save Rs 25,000 if you undervalued your property on paper. (At five per cent, stamp duty would come down to Rs 2.50 lakh for a property worth Rs 50 lakh, and Rs 2.25 lakh for a property worth Rs 45 lakh.)

Also Read: Going To Register Your Property? Take Note Of These 8 Things

Similarly, registration charges would come down, too. At the rate of one per cent, the registration charge for a property worth Rs 50 lakh on paper would be Rs 50,000. In case this property is reported at Rs 45 lakh on paper, the buyer would save another five grand in registration charges.

At this juncture, given that you are hard-pressed, you may be open to saving every penny you can. Those who have been in your shoes would vouch for that! Undeniably, you have made a short-term success for which you may have to pay in future.

Why undervaluing your property is not a good idea?

You expect your real estate investment to fetch you at least double the amount if you decided to liquidate it in the near future. This is where the problem would pop out. The truth is you might find a buyer who would be willing to pay you the price you cite, if the market is functioning brilliantly. However, it is here that your past mistake would come to haunt you.

When a buyer sees you bought this property for Rs 45 lakh five years back and are trying to sell it off for Rs 1 crore now, they are bound to bargain hard. It would take some convincing for them to understand that the property actually cost you about Rs 55 lakh at that time.  But, this is not the tougher part. You will also have to now find a buyer who would be willing to commit the same “mistake” you made at the time of your property purchase ─ that is undervaluing it.

Why is that?

On the gains that you make on your property sale, you will be liable to pay long-term capital gains tax. In case the buyer does not undervalue the property and is interested in an all-white deal, you could end up paying enormous amount of money to the government as tax (20 per cent of the gain, in case this money is not invested in another property purchase within a specified time).

Amid all this, you will mastermind many a base scheme to circumvent the law. In a deal where no short-changing of the set procedures is done, you are spared all that trouble. You get all that is rightfully yours without having to nurse any financial headaches.

On a social plane as well, it does little good.  When you talk to your friends about your newly purchased home, you would like to slightly inflate the price, would you not? This would be done, often unintentionally, with a view to dazzle them with your financial achievement. If they were to find out you not only bought the property for much less than what you are publicizing but also misreported the transaction value, it would leave a bad impression on them. It is another matter that your friends would invariably fall for the same trick in their time of need.

Also Read: Frequently Asked Questions On Property Registration

This childhood memory haunts many of us. Despite knowing the answer to a question that the teacher had dished our way, we would not be able to answer it. In our attempt to put our point across we would reach a point where we would start looking stupid, much to the amusement of the class. The class would not be without those students who were gifted with a great speech. Even if they answered only parts of the question correctly, they could dazzle the teacher with their vocabulary and style of delivery, igniting much awe in the teacher and a great deal of disappointment among not-so-gifted orators. Even as small children, we were made aware of the power of talking. As we grew old, the realisation only gained deeper ground.

Apart from making your life easier, good communication skills would be of great help when you decide to be a home owner. Hang on! We are not referring to you striking a better deal by haggling with the seller or the broker here. It is already understood that you have managed to work things in your favour already in the regard. Now is the time to use your skill to get a better deal from the bank, too, where you have submitted a home-loan application.

Most of you might react with — how is that possible? Banks have preset rules which they strictly follow. All applicants are treated equally, irrespective of their skill sets. In serious matters relating to high-value investments, softer skills may lose their impact. To a great extent, you are right. However, you do have an advantage over other in case you are a persuasive speaker who can assure the banks you happen to be a zero-risk prospect.

Here are some tips:

• You could flaunt your high credit score, and based on that ask the bank to offer you a home loan on a slightly lower rate of interest. Do not be shocked if they agree to do so. Conversations may also lead to the bank cutting down or waiving the loan processing fee and several fringe expenses that you have to bear as a borrower. The same rule applies with regard to the several rules and regulations that are part of home loans.

• Your communication skill will come handy when you decide to switch lenders in the wake of falling interest rates. Your bank would love to retain a customer such as you and would offer to make the deal sweeter.

While using the power of your talking, however, do be mindful of the fact that:

• Banks may refuse your request for something. However, this should not discourage you. When you do not ask for something, you most certainly have no chance of getting it. When you ask for it, there is always the possibility of getting yes as an answer.

• Bluffs would certainly not work. What you say has to be factually correct. Banks would do all the background check to find out everything about it. The power of communication must actually be used to highlight the positives about you, based on facts.

• Passive “threatening” may often not work. Be persuasive without being negative.

Also Read: How Does Paying An Extra EMI In A Year Help You?

Those who are servicing a home loan can easily divide their lives in two parts— life before they took a home loan and life after the equated monthly installments (EMIs) started getting automatically deducted from their bank accounts. The carefree days when this person did not give much thought to his credit card getting swiped multiple times over the weekend for “aimless” purchases have disappeared in the wind. This person is keeping a diligent watch on every penny that now makes an exit out of his wallet. There is a stark difference between the life this person lived earlier and the life he lives now. In short, home loans are great teachers of financial discipline.

As someone who has a monthly EMI to pay, you know better. You may have used your yearly bonus on upgrading your wardrobe and buying fancy gadgets earlier but now you realise that saving some extra grand can play an instrumental role in your financial planning.

To pre-pay or not to pre-pay: As a home loan borrower, your first thought may go to using this money to pre-pay part of your home loan. This is a good idea, of course. Part paying your home loan can result either into lower EMI outgo or shorter tenure. Before you make plans to use your bonus in prepaying your home loan, however, do note that small payments are not going to make a great difference. One year’s annual bonus would not do the trick. It would be better to put this year’s additional income to work --- stocks are good options if you have the mental acumen patience---so that you are able to garner good returns by the next year. Wait for a couple of years till you have earned an amount which would make a substantial amount using which you could pre-pay your home loan.

It is important to understand here that home loan help you in several ways. While the interest rate is lower when compared to other types of loans, you could also avail of tax benefits. Wisdom does not lie in becoming debt free as soon as you can; wisdom lies in using this financial tool to the best of your advantage.

Are you value adding, really?: It would be a great mistake to assume you are done with adorning your dream home at any point of your occupation--- no matter how much money you spend, there is so much more that you think you could do to make it salubrious. This extra money could be used to purchase items that would help your home turn into a territory you so desire. On the other hand, you could also gift your home certain new items. Old electronic appliances that consume great amount of power could be replaced with energy efficient ones. An LED bulb, for instance, uses only 25 per cent the electricity than a normal one does.

All small and big options must be explored to move towards greener, healthier and cleaner living. In doing so, you would not only be reducing your monthly electricity bill but also your medical bills.

Create a fallback option: In case of any emergency, one has to have a back-up plan. A back-up plan is basically a euphemistic way to say, we need to have a corpus in place to deal with emergency situations. While all of us must build such a fund, acting on this rule is even more crucial in case you are employed in the private sector and do not enjoy job guarantee. Experts are of the opinion that you need to have at your disposal at least three months of your total expenditure in as emergency corpus. But, the stronger the fund, the better. This year’s bonus could be used for that purpose, too.

Hopes of thousands of homebuyers who have been patiently waiting for the Supreme Court (SC) to give them justice have taken a severe beating. It has been hearing cases involving India’s major real estate developers, including Amrapali, Jaypee and Unitech, for two years now without being able to find any solution. These homebuyers had already spent several years waiting for their homes before they approached the apex court, seeking justice. In a scenario such as this, what could be the most logical thing for a homebuyer, who used all his savings relying on the fact that they would soon be able to move out of their rented accommodation, to do?

The right strategy

Knee-jerk reactions could only aggravate the troubles if you have been at the receiving end of a project delay. Whatever your modus operandi may be, it has to be well thought-out. Your plan must be chalked keeping in consideration your specific case.

As a buyer, you have two options — to wait for the project to complete or to seek refund and exit. Depending on your specific case, one of these two options has to be picked.    

When does it make sense to wait?

If case your developer is a well-known name in the industry with a good record, you have a better chance of getting the delivery even though your patience has been tested. The realtor may be able to weather the storm if it has hit him in the form of mild financial stress. Exiting the project at this juncture may not be advisable for a buyer since that would amount to a good deal of money and effort going down the drain. Rankled you certainly may be because of the developer’s failure to keep his end of the bargain, it would still be wise to stay still in your own interest.

Big developers who have entered into a full-fledged financial turmoil are a different story altogether though.

When does it make sense to seek refund?

Sample this.

When the group was at the peak of its career, Noida-based Amrapali Group had the then Indian cricket team skipper Mahendra Singh Dhoni endorsing it. It has so happened that Dhoni is currently suing the beleaguered realtor for monetary losses of Rs 150 crore. No respite is in sight for over 42,000 homebuyers, who are waiting for the apex court to for over two years now to reach a verdict.

In such a scenario, delivery of homes would be delayed interminably, and getting a refund could be a buyer’s best shot at getting some relief. This money could then be invested in a ready-to-move-unit if the buyer is doubly pressured because of paying rent as well EMI month after month.

In their frustration, buyers also often stop paying the EMI for long-delayed projects.

Hundreds of buyers, who had booked homes in various projects of Jaypee and had paid over 80 per cent of the unit cost when the developer was dragged to the insolvency tribunal in 2017 stopped paying their EMIs. That the developer would have a legal authority to forfeit their earnest deposit and their CIBIL scores would take a severe beating for stopping the EMI payment was a fear not many of them had the luxury to feel.

In such cases, such buyers cannot be proven guilty of doing anything illegal, the fact that the terms of the builder-buyer-bank agreement state differently notwithstanding.   

In various rulings, the SC and the national consumer forum have said neither developers nor lenders could take adverse action against buyers who have been made to suffer because of long delays.

A buyer’s best bet in a terminally sick housing project is to get his refund, to put it succulently. This money could then be invested in a ready-to-move-in unit where the need for wait, something the buyer already dreads, does not arise at all.

The developers and investors are gaining back their confidence in the Bengaluru real estate market. The market that had been witnessing a setback from past few quarters, emerged as one of the top runners launching over 50 per cent new projects in the fourth quarter of the financial year 2019 year-on-year, data available with PropTiger.com show. The data also show that sales here increased 46 per cent making it a value-for-money market bringing back the investors to the market.

So, if you are planning to invest in Bengaluru, where property prices are also on a rise, here are five handpicked projects you could consider.

Brigade Buena Vista

RERA ID : PRM/KA/RERA/1251/446/PR/171026/000405

Buena Vista offers over 370 units of 1BHK, 2BHK, 3BHK and 4BHK apartments, measuring between 719-2,440 square foot (sqft). The project spread in an area of seven acre is being developed by Bengaluru’s renowned developer Brigade Group.

The project is located at Budigere Cross, one of the prominent localities in east Bengaluru with proximity to the IT hubs at Whitefield and KR Puram. There are over 40 ready-to-move-in and 17 under-construction projects in Budigere Cross.

Location: Budigere Cross

Price: Rs 34.8 lakh- Rs 1.21 crore

Possession: June 2020

Sobha Rain Forest at Dream Acres

RERA ID: PRM/KA/RERA/1251/446/PR/170915/000193, PRM/KA/RERA/1251/446/PR/170915/000156, PRM/KA/RERA/1251/446/PR/170915/000157, PRM/KA/RERA/1251/446/PR/170915/000221, PRM/KA/RERA/1251/446/PR/170915/000223, PRM/KA/RERA/1251/446/PR/170916/000293

Sobha Rain Forest at Dream Acres is offering over 1,800 apartments in 1BHK and 2BHK configurations with sizes ranging between 645-1,210 sqft. The under-construction project is located at Varthur in east of Bengaluru, well connected to the various parts of the city through the Outer Ring Road.

The project is being developed by one of the most renowned names in the industry Sobha Limited. The developer in over two decades of its operations has worked on a total of 135 projects across 24 cities across the country.

Location: Varthur

Price: Rs 36.5 lakh- 52.6 lakh

Possession: December 2020

Also read: Check Out Localities Offering Highest Returns In Bengaluru

Godrej Air

RERA ID: PRM/KA/RERA/1251/446/PR/170819/000006

Godrej Air offers 487 apartments in 1BHK, 2BHK and 3BHK configurations of sizes varying between 473-1,222 sqft. The ready-to-move-in project is spread in an area of six acre and is located at Hoodi, an upcoming residential locality lying in proximity to the key IT hubs in the suburbs such as Whitefield, Brookefield and ITPB.

The project developer Godrej Properties has nearly three decades of experience in the industry, developing over 11.80 million square metre (sqm) of space across 12 cities.

Location: Hoodi

Price: On request

Possession: December 2022

Blue

RERA ID: PRM/KA/RERA/1251/446/PR/180728/001966

Blue by Shriram Properties is offering over 470 apartments in 3BHK configuration sizes varying between 1,650-2,150 sqft. The developer of the project Bengaluru-based Shriram Properties has over four decades of experience in the market. It has a total of 55 projects of which 19 are under construction.

The under-construction project is located at one of the prime Bengaluru suburbs KR Puram. The locality lies in proximity to the IT hubs of Whitefield and Marathahalli and residential localities such as Kuvempu Nagar, Dooravani Nagar and Pai Layout.

Location: K R Puram

Price: Rs 98.4 lakh- 1.41 crore

Possession: July 2021

Assetz Marq

RERA ID: PRM/KA/RERA/1251/446/PR/171016/000973

Assetz Marq, spread over an area of 4.62 acre, offers over 840 apartments in 2BHK, 3BHK and 4BHK configurations, measuring between 1,222-2,653 sqft. The project has two phases of which Phase-I is ready for possession while Phase-II is under construction. The project is being developed by Singapore-based Assetz Property Group that has nine under-construction projects in India.

The project is located at Kannamangala in the east of the city, in proximity to Hoskote and Budigere. The locality is well-connected to the rest of the city through the Outer Ring Road.

Location: Kannamangala

Price: Rs 58 lakh onwards

Possession: November 2022

Experience may be the best teacher, but this tutor is best avoided in house-purchase matters. One would like to know beforehand the pros and cons of investing in a particular location or project or property, considering a large sum of money is at stake, and making mistakes is no option.

But then, what should you look for in allocation/project/property, apart from the obvious things, of course, before selecting the one meant for you?

One could easily gauge the advantages and disadvantages of a unit if they paid attention to where the unit exactly stands. We are going to talk about selecting the right property in this context presently.

Location: All good in the hood?

Any attempt to undermine the whole stress on the age-old location-location-and-location dictum as mere brouhaha would be deleterious for you, to say the least.  But, this is not to say the “top localities” of a city are the “best localities” for you to buy a property ─ the definition of a “perfect” location is not the same for everyone; our priorities are the key determiner of a locality’s perfection.

For someone who is looking at multiplying their money by investing in a low-ticket property, the perfect location would be, what they refer to as, an emerging area. Since infrastructure is still in a developing stage in such locations, rates of property are comparatively lower.

Investors eyeing big profits in the long term are seen investing in properties along the Yamuna Expressway, for instance, close to Jewar where the country’s biggest airport is scheduled to come up by 2023.

For someone who is buying a property for their own use and who wants to stay close to the city centre, established localities along the area are the perfect location. These are also the place for those who hate to travel for hours to reach their workplaces in central business districts (CBD).

Sample this.

In east Delhi’s Mayur Vihar a 20-year-old re-sale unit of 1BHK configuration would cost a buyer somewhere between Rs 65 lakh and 80 lakh. How come? Those who live here can reach central business district Connaught Place in sharp 15 minutes, travelling a total distance of nine km.

Suburbs are the place for those who are looking for peace and quiet while still being in touch with the city. They are also the place for those with budget constraints. Peripheries are also apt for people looking for large residential spaces.

Noida real estate, for example, is a popular choice for buyers looking for all the three things mentioned above. A new large 4BHK home could come between Rs 60-75 lakh here.

What if there is a mismatch between what you want and what you could afford?

Now, there might be a financial mismatch between what we want and what we could afford. If the mismatch could be taken care of by a couple of more years of saving, it would be advisable to wait rather than adopt desperate measures in a hurry.

Stop-gap arrangements don’t really work that well in matters related to property transactions since liquidation is not easy (no matter how easy they try to make it sound).

Even if one is inspired to believe that selling may not be a problem, real estate flipping has a cost. Each time you buy a property, you have to pay stamp duty and registration charges, for instance. This cost could run up to 6-8 per cent of the property value.

You also have to pay capital gains tax each time you sell a property. In case the transaction is taxed for short-term gains, a great deal of the profit would go to the government. If the seller falls under the highest income tax bracket, they will end up losing 30 per cent of the profit as STCG.

Project: The right posture

Let us assume you have made up your mind about the locality and now looking for a project that meets your budget. Apart from the builder brand, the money and the amenities, are there any other aspects that you should be mindful of?

Well, those are only broader aspects of a property purchase; there are a thousand other smaller concerns involved here, especially if you are investing in an under-construction project.

Majority of people might get baffled when the developer shows them the intricately designed building plan. For the fear of looking and sounding silly, some key questions are left unasked at this juncture.

One needs practice to ace this round of negotiation.

“Building plans of major developers in India are designed using the MKS (metre, kilogram and second) system where sizes of units are denoted using millimeter. As users, we are more comfortable knowing this in foot. Now, 300 mm is a foot. Keep that in mind and quickly calculate the unit area using the formula,” says Abhineet Seth, founder Abodekraftz.

You need to know which direction the project faces, Seth suggests. Only a south-east project would get sunlight all day long, for instance. In projects facing other directions, you would have sunlight in the house only for limited hours in a day. Pick a tower where you get natural light and air as much as possible. It may also be wise to pick a tower that is not staring right at the main road, in case the project is close to one.  

Unit: Sunny side up

A large part of the job has been done at this juncture. By showing a little more of that diligence, a buyer would be able to buy the best of the lot.

Since having natural light and air is high on our agenda, we would try to pick a unit that faces directly the southeast without staring at the main road. This would mean our electricity consumption would be lower and our house would be well lit and cool at the same time. It would also result in our homes being better equipped to fight pests (natural light does the trick) without being noisy.

The floor on which the unit stands is also a key determiner of the kind of air and light we would get. Homes on higher floors would get these in plenty when compared to homes on lower floors. Homes of higher floors would also mean greater privacy.

Home on lower floors, especially till the third floor, means we are not depended on elevators to commute to the house ─ it is strictly advisable to stay closer to the ground if one has motion-related problems. Those suffering from claustrophobia or agoraphobia or have fear of elevators must stay closer to the ground. Panic attacks of anxiety even if mild might be bad for you if they occur on a daily basis.

Pune real estate has been witnessing growth across various parameters. New launches in the city went up by 21 per cent while sales grew five per cent bringing the housing inventory stock down in the fourth quarter of the financial year 2019, data available with PropTiger.com show. In a market that has been on a growth graph for a long time now also witnessed a two per cent increase in property prices in the March quarter.

This property market is only expected to grow further in the coming years owing to the growing population in the city looking for better employment opportunities and affordable ready-to-move-in homes.

So, those looking for a ready-to-move-in apartment in Pune, PropGuide handpicks 10 leading ready-to-move-in projects that you can invest in.

Rohan Abhilasha

RERA ID: P52100000832

Located at Wagholi, the project offers 300 units of 1BHK, 2BHK and 3BHK apartments, measuring between 427-920 square foot (sqft). The project is strategically located in one of the affordable property markets of Pune. Wagholi is primarily an industrial area that also offers ample residential options. At present, there are 200 projects in Wagholi of which 113 are ready for possession while 87 are under construction.

Location: Wagholi

Average locality price: Rs 4,000 per sqft

Completion date: December 2018

Kumar Picasso

RERA ID: P52100000104, P52100018205  

A project by Kumar Properties, Picasso offers 366 units of 2BHK and 3BHK apartments in sizes ranging between 1,078-2,355 sqft. These apartments are available for a starting price of Rs Rs 71 lakh. The project is located at Hadapsar in south Pune and lies close to special economic zones, including Magarpatta city, Amanora Parktown and Fursungi IT Park (SP Infocity). The locality is well-connected with the Pune highway.

Location: Hadapsar

Average locality price: Rs 5,784 per sqft

Completion date: May 2017

Raheja Vistas (Building B2)

RERA ID: P52100000919

This project offers 40 units of 2BHK and 3BHK apartments, measuring between 780-994 per sqft. It is developed by K Raheja, one of the leading builders with over six decades of experience and over 30 projects in Pune.

The project is located at NIBM Annex Mohammadwadi in south-east Pune, near Kondhwa. One of the upcoming suburbs, NIBM Annex is well-connected to city centre areas, including Kalyani Nagar and Hadapsar. There are 56 projects in the ready-to-move-in category and 28 under-construction projects in NIBM Annex.

Location: NIBM Annex, Mohammadwadi

Average locality price: Rs 4,925 per sqft

Completion date: June 2018

Kumar Park Infinia

RERA ID: P52100000084, P52100014939, P52100017239

Spread in an area of 41 acre, Kumar Park Infinia offers 997 units of 2BHK and 3BHK apartments of sizes varying between 925-1,626 sqft. The project is located at Phursungi in southeast Pune, lying in proximity to Hadapsar. The area is well-connected to some of the key industrial hubs such as  Wadki Industrial Belt and Loni Petroleum Distribution Hub. Moreover, the Pune Municipal Corporation has recently approved new town planning schemes for Phursungi that will further strengthen the infrastructure in the locality.

Location: Phursungi

Average locality price: Rs 4,000 per sqft

Completion date: May 2010

Kolte Patil Ivy Estate Umang Premier

RERA ID: P52100000655

Spread in half-acre area, Ivy Estate Umang Premier offers 188 apartments in 2BHK configuration of sizes varying between 553-665 sqft. These apartments are available for a starting price of Rs 56 lakh. The developer of the project, Kolte Patil, is one of the premium property developers in the city with over 90 projects, of which 27 are under construction.

The project is located at Wagholi, an area that is well-connected to key residential markets such as Kalyani Nagar, Viman Nagar and to IT hubs such as Kharadi and Hadapsar.

Location: Wagholi

Average locality price: Rs 4,000 per sqft

Completion date: September 2018

Geras Song of Joy

RERA ID: P52100001789, P52100002048

This one of the luxury projects in Pune that offers 120 apartments in 2BHK and 3BHK configurations, measuring between Rs 1,221-1,680 sqft. These apartments are available for a starting price of Rs 1.03 crore. The project offers premium facilities such as an Art Studio and Gurukul. The developer of the project, Gera Developments, has a total of 34 projects, of which nine are under construction.

The project is located at Kharadi, one of the prime IT hubs of the Pune. The locality also lies in proximity to the Pune’s international airport, a distance of just 10 kilometre.

Location: Kharadi

Average locality price: Rs 5,732 per sqft

Completion date: December 2015

Kalpataru Serenity

RERA ID: P52100001267, P52100015855

The project, spread in an area of 16 acre, offers 510 units of 1BHK, 2BHK and 3BHK apartments in sizes varying between 592-1,775 sqft. These apartments are available for a starting price of Rs 40 lakh. The builder, Kalpatru Group, has over five decades of experience in the sector with a total of 107 projects across India.

The project is located at one of the popular Pune suburbs Manjari. The area lies close to the IT hub of Hadapsar and to residential markets of Ghorpadi and Kalyani Nagar.

Location: Manjari

Average property price: Rs 4,843 per sqft

Completion date: September 2015

Proviso Leisure Town

RERA ID: P52100001401

The offers 95 units of 2BHK and 3BHK apartments of sizes varying between 538-716 sqft, offered for a starting price of Rs 42.2 lakh. The project is developed by Saiproviso, a new developer in the city with three projects.

The project is located at the IT hub of Hadapsar, 8.5-km from the Pune city centre. There are over 257 ready-to-move-in and 43 under-construction projects in Hadapasar.

Location: Hadapsar

Average locality price: Rs 5,784 per sqft

Completion date: December 2018

Lodha Belmondo

RERA ID: P52100000182 , P52100000406, P52100017082, P52100019434, P52100020142, P52100020156, P52100020172, P52100020188, P52100020190

Lodha Belmondo, a 100-acre project, offers over 1,100 apartments in 1BHK, 2BHK, 3BHK and 4BHK configurations, in sizes varying between 490-6,012 sqft. These apartments are available for a starting price of Rs 90 lakh. One of the premium projects in Pune, Belmondo is located at Gahunje along the Mumbai-Pune Highway.

It is developed by Lodha Group, one of the leading developers of luxury housing in India. The developer has a total of 218 projects across the country, of which 132 are under construction.

Location: Gahunje

Average locality price: Rs 5,751 per sqft

Completion date: Feb 2017

Godrej Sherwood

Overlooking the Mula River, Godrej Sherwood is a premium project in Pune offering 56 units of 2BHK, 3BHK and 4BHK apartments of sizes up to 1,500 sqft. It is located at Shivaji Nagar, one of the prime residential markets of Pune home to some luxurious projects. There are over 69 ready-to-move-in and 11 under-construction projects in Shivaji Nagar.

The project has been developed by Godrej Properties that has over 90 projects across the country, of which 57 are under construction.

Hyderabad realty has been defying trends. According to Realty Decoded report by PropTiger.com, property prices in the City of Nizams increased 14 per cent in the fourth quarter of the financial year 2019 at a time when rates in most other cities declined. Home sales also increased 26 per cent during the same period. At 17 months, inventory overhang was also the lowest in the city during the quarter. This growth is driven by the rising job opportunities in the city and better transport infrastructure.

While there are projects across categories, including affordable and luxury, the highest number of properties in this market fall within the Rs 90-lakh bracket. PropGuide handpicks five projects if you are looking for a property in that budget.

Hallmark Vicinia

RERA ID:  P02400000184

Hallmark Vicinia is an under-construction project, offering 440 apartments of 2BHK and 3BHK configurations with sizes varying from 1,270 to 2,205 square foot (sqft). Located at Narsingi, the project is spread in an area of 4.5 acre. The area is close to the IT areas in the city with a growing demand for rental properties. The property prices in the area that lies along the Outer Ring Road range between Rs 4,500-5,500 per sqft.

Price: Rs 63 lakh onwards

Location: Narsingi

Nearest Metro station: Hitec City

Possession status: December 2020

Accurate Wind Chimes

RERA ID: P02400000042

An under-construction project located at Narsingi, Wind Chimes offers 334 apartments in sizes varying between 1,090-1,725 sqft. The 6.5-acre project is being developed by Accurate Developers. The developer has an experience of over two decades with projects developed in Gachibowli and Kondapur.

Project lies in proximity to some of the key areas of Hyderabad, including Gachibowli, Kondapur, Attapur, Jubilee Hills, and Hitec City. 

Price: Rs 58 lakh onwards

Location: Narsingi

Nearest Metro station: Hitec City

Possession status: December 2022

Ramky One Galaxia Phase II

RERA ID: P02400000505

The recently-launched project offers 412 apartments in 2BHK and 3BHK configurations with sizes varying from 1,265-1,665 sqft. , spread over an area of 3.95 acres. Gachibowli is the area where most of the luxury projects and IT companies are located. Hence, the rental demand is considerably higher than any other nearby areas. The Ramky Group is one of the oldest developers in the city and has developed around 20 projects, out of which six are ongoing.

Price: Rs 66 lakh onwards

Location: Gachibowli

Nearest Metro station: Hitec City

Possession status: March 2025

Incor One City

Incor One City is an under-construction project being developed at Kukatpally, one of the premium residential areas in Hyderabad. The project offers 1,167 units of 2BHK and 3BHK apartments in sizes varying from 1,208-1,931 sqft. The developer of the project, Incor Infrastructure, has over a decade of experience in the sector. The developer has six projects in Hyderabad of which three are under construction.

Price: Rs 73 lakh onwards

Location: Kukatpally

Nearest Metro station: Kukatpally

Possession status: September 2020

Cybercity Marina Skies

This is one of the premium residential projects being developed in Hitec City. The project, spread in an area of 8.5 acre, offers 1,240 units of 2BHK and 3BHK apartments sized between 1,210-2,340 sqft. It is being developed by Cybercity Builders and Developers, who has three ready-to-move-in and two under-construction projects in Hyderabad.

Price: Rs 68 lakh onwards

Location: Hitec City

Nearest Metro station: Hitec City

Possession status: December 2021

Note: Under-construction projects approved before January 1, 2017, do not require RERA registration.

The demand for affordable homes is always on a rise in Pune owing to the growing working population in the city. Data available with PropTiger.com show that nearly 43 per cent of the total number of properties sold in Pune in the fourth quarter of the financial year 2019 was in the price bracket of Rs 25-50 lakh.

Those who are looking for affordable homes, there are ample options available for you. PropGuide handpicks five such affordable projects in the city that you could consider.

Rohan Abhilasha

RERA Id: P52100000489

An under-construction project, Rohan Abhilasha offers 1BHK, 2BHK and 3BHK units in the size ranging between 330-853 square foot (sqft). There are 307 units that have been launched in the project spread in an area of 1.48 acre. The project is located at Wagholi, one of Pune’s popular locations offering affordable properties. 

Price: Rs 18.93 lakh onwards

Possession status: December 2021

Also read: All You Need To Know About Pune Metro Project

Western Avenue

RERA Id: P52100000917

Kolte Patil’s under-construction project spanning 13.39 acres offers 862 units 2BHK and 3BHK in the size range of 562-866 sq ft. The project offers a host of amenities such as a children's play area, landscaped gardens, rainwater harvesting, a clubhouse, closed car parking solid waste management and disposal facilities. Located at Wakad, the project is located in proximity to the IT hubs.

Price: Rs 23 lakh onwards

Possession status: December 2021 

Majestique Memories

RERA Id: P52100016824

This under-construction project by Majestique Landmarks was launched in 2018. The project spread in an area of 2.49 acre offers 132 units in 1BHK and 2BHK configuration at NIBM Annex Mohammadwadi. The project provides amenities such as closed car parking, recreational open spaces, facility for treatment and disposal of sewage, water conservation provisions, an amphitheatre, a badminton court, a jogging track, a swimming pool, etc.

NIBM Annex is one of the fast-emerging localities in Pune well-equipped with civic and social infrastructure, including hospitals and schools. Homebuyers prefer this location owing to the presence of job hubs in the vicinity.

Price: Rs 27.90 lakh onwards

Possession status: December 2019

Also read: Vienna Is World’s Most Liveable City; Hyderabad & Pune Are India’s

Kumar Picasso

RERA Id: P52100018205

Kumar Properties is offering 132 units of 2BHK and 3BHK apartments in the size range of 671-853 sqft. Spread in an area of 2.14 acre, Kumar Picasso will be equipped with a range of amenities such as closed and open car parking, landscaped zones, fire protection facilities, solid waste management, etc.

The project is located at Hadapsar, is a popular residential choice for professionals working in Magarpatta IT City, Koregaon Park and Kalyani Nagar.

Price: Rs 49.79 lakh onwards

Possession status: August 2021

Kumar Park Infinia Phase III

RERA Id: P5210000084

Another project by Kumar Properties, Infinia Phase-III is an under-construction property located at Phursungi. The project offers 334 units of 1BHK, 2BHK and 3BHK apartments in the size range of 494-1,020 sqft. The amenities here include  a gym, a swimming pool, a club house, a multipurpose room, rainwater harvesting, a jogging track, etc. The project spans 4.4 acre.

Price: Rs 56 lakh onwards

Possession status: May 2019

Overvalued properties dragged the Gurugram property market down for a good length of time—data available with PropTiger.com show home sales numbers kept declining year after year even as developers tried to hard-sell by sweetening offers. At the same time, they put all their plans of launching any new projects in this commercial-hit market on the backburner. Their efforts are seen yielding results now.

According to PropTiger.com’s Realty Decoded, a quarter analysis of India’s nine major residential markets, home sales in Gurugram increased 10 per cent in the March quarter of the financial year 2018-19 (FY19), year-on-year. The Millennium City was second only to Hyderabad where home sales increased 26 per cent during the quarter.

During the same period, new launch numbers have also gone up five per cent—4,929 units were launched in the city in the March quarter as against 4,705 units launched in the corresponding month of the previous financial year. As against 5,220 units in Q4’18, developers sold 5,764 units in the same quarter in FY19. Gurugram, in fact, was among the three cities where new launches saw a marginal increase during the quarter.

In the past one year, rates have also declined four per cent, hitting an average Rs 4,950-per-square-foot bracket. This is the sharpest fall in prices seen by any city in the past one year. Noida and Ahmedabad were the only two cities where prices declined in this period, by a per cent only.

This property market still has a great deal of inventory, and realtors here would need at least 32 months to be able to sell the existing stock here at the current sales velocity.  

Affordable twist

Let its distinction of being an unaffordable market not mislead you—data show otherwise. According to the report, over one-third of all units sold in Gurugram during the quarter were in the Rs 25-50-lakh price bracket. A similar trend was seen in Ahmedabad, a realty hotspot primarily known for its affordability.  

Also read: Will Gurgaon Realty See A Turn Of Luck In 2019?

Aging inventory

The unsold housing stock in this city is, however, getting old. About 58 per cent of the inventory stock here is aged over three years. Its affordable peer in the national capital region Noida is worse off—76 per cent of the housing inventory is three-year-old. This could also be the reason why prices have seen some correction here in the recent past. In Hyderabad, for example, which has the best inventory profile among the nine cities, property rates have increased 14 per cent in the past one year.

We all know the monetary benefits of property ownership — there would be great returns, there would be tax rebates and there will be security. However, that is not all that you as a property owner enjoy. The benefits of property ownership reach you in many other subtle ways. 

Your family and friends take you seriously

When Patna-based Keshav Sinha heard that his 24-year-old son is booking a 2BHK unit in Bengaluru, he was happily surprised. His happiness is not entirely based on the fact that his son now owns an asset. He is quite proud of the fact that his young son has the prudence to channel his money towards the right platform. From a pampered son to a man his parents can rely on, the position of this young gentleman into his family seems to have changed overnight.

“I am no more just a kid … my opinion on things has begun to matter more than it used to earlier. For instance, if I tell my parents I want to delay my plans of marriage because of financial constraints, they will be more understanding. They also greatly rely on my opinion in their own financial matters,” says Shashank Sinha.

They look up to you

Her parents were not happy about her life choices till quite recently. A journalist by profession, Neha Chandra has decided to stay single, something her family and friends did not approve of, and they made their disapproval obvious to the 31-year-old independent woman. Their perspective begun to change, by and by, after Chandra booked a 1BHK home in Noida. She is not just a woman living a nomadic life; she is now a woman who managed to buy a property all on her own.

“I was not expecting such a change it was going to make in my life when I decided to buy a house. My family is now coming to terms with the fact that I plan to spend the rest of my life alone. The house is not just a property investment, from where my loved ones view it; they also feel I have somehow “settled in life”,” chuckles Chandra.

“For some in my family, I have turned out to be a role model,” she adds.

Your employer knows you're stable

It is not only your personal bonds that become more stable after you become a property owner. A similar change would be reflected in your professional ties, too. However, the nature of the latter is a bit complicated.

If you have taken a home loan, you cannot afford to switch jobs frequently. This means you have to maintain a good rapport with your employers. To do that, you are likely to work on your performance, which would also help you get a raise in salary. (What a relief would it be to have some extra bucks every month because your EMI burden is really heavy!) Your employer is aware of this, and sees you as an employee, who would be serving them for a long term. They are likely to be more generous to you in such a scenario.

“As far as professional ties are concerned, the dependence is mutual if an employee is paying off a home loan. Both stick with each other because it is mutually beneficial. The attrition rate is quite high as far as the private job market is concerned. Having an employee, who would serve you for a long time is something most corporates would want. This is quite rewarding for someone who is paying off a debt, and cannot frequently change employment,” says Ramesh Nair, a Gurgaon-based human resource consultant.

Also Read: A Guide To Get Home Loan Against Property

A buyer-seller agreement is a written pact between two parties, showing their intent to enter into a transaction under some terms and conditions.

PropGuide explains buyer-seller agreement.

A buyer-seller agreement is a written pact signed between the buyer and the seller at the time of a property transaction. Also known as agreement to sell, this document ensures there is no default on part of the parties involved in the deal. A buyer-seller agreement is an important legal document and, in case of a default, could be used to fix liability. Details to be filled for such an agreement include names and address of the parties concerned, the date of transaction, various costs involved in the transaction, the payment plan, terms of the purchase and date of possession, etc. In real estate, this agreement is used at the time of sale or purchase of property or land.

In the light of some fraudulent activities taking place in the sector, it is crucial for buyers and sellers to ensure the authenticity of this agreement. It is advisable for all the parties to seek legal assistance while preparing the document. Doing so will not only keep the purchase process transparent but also reduce chances of any dispute in the future.

Check out PropGuide's comprehensive guide to real estate terms here.

Blogs Related To Buyer-Seller Agreement

12 Legal Documents You Will Encounter In Your Home Purchase Journey

Investment Vs End-Use of Property: How Your Searches Should Vary

“This is the last such home left for sale. If you do not book this property now, you may miss the chance forever.”

“This offer is valid only for another 10 days. You will have to do the booking right now.”

“It is only for you that we are offering this price. We have others willing to pay a higher amount for the unit. We are willing to take a cut because we like you.”

“For a great property, money should not be a concern.”

“In this budget, this is the best you can buy.”

Et cetera.

All those people who have at any point in their lives gone for a site visit to find an ideal property must have etched in their memories the above-mentioned statements. The property brokers would just not shut up about the many merits of every property they make you visit. You will also be hammered with the knowledge that each of those properties is highly desired and may soon be off the shelf. Some of us really succumb to such pressure tactics.

In all walks of life, the fear of missing out (fomo) on a bright prospect is intense enough to make us do things that we later might not be proud of; property buying is no exception. In case you are at a stage where you may be susceptible to making the same mistake – that is to say, if you are going to buy your first property and do not really have prior experience in dealing with the sellers and brokers and all that is typical of them – we would like to bring to your attention certain facts.

Where is the lack of options?

We live in times when all we hear about is infrastructure development, residential real estate included. We have plenty of options to pick from at any location, in any configuration and in any budget — data available with Proptiger.com show real estate developers are sitting on huge inventory stock in nine major cities of the country.

In light of this fact, it would be a mistake to hurry up to book a unit only because your broker/seller tells you that this is the last such unit left in a particular project/location/budget. Even if their statement is partially true (chances of it being fully true are negligible), you would always find another one, most probably a better one.

Is the offer really worth it?

It would be great to get some sort of discount on your property purchase. However, let the idea of getting a cheaper deal not drive you to an extent where you overlook the other crucial aspects of the transaction. If the “right” property comes without a discount, it would be worth every penny spent on it.  Also, in the back of your mind, do consider that there might a reason why a particular property is being offered at a discount. Do not fall for discounts such as foreign trips or gold coins if you think you will have to make a compromise on the construction quality or the developer brand.

What is the hurry?

There is little room for well-thought-out decisions going wrong, or thoroughly worked out plans not working out. Hurriedly made decisions and quickly formed plans go that way. When sellers/brokers tell you that such and such unit will be off the market soon, they pressure you to make a decision quickly, leaving little time for you to consider all aspects pertaining to the transaction. It is at this juncture that you have to hold your own. Take your own sweet time to make your decision, and make your intentions known to the sellers/brokers. Despite the fact that work involved in home buying is quite tiring and testing, applying patience and acting with calmness with regard to the biggest investment of your life would be the best policy.

 Also read: Why Watching Property Markets Play Should Be Your Favourite Game

Indore’s Super Corridor is an eight-km highway stretch that is being developed as New Indore on the outskirts of the main city. The corridor runs between the Airport Road and MR 10 with a width of 600 m, excluding a 75-m wide road. According to the 2021 Master Plan of the city, over 18 activities on the corridor, including corporate offices, malls and multiplexes, can be taken up along the area. Some of the mega projects being developed on this stretch include a sports complex, a medical hub and a convention centre.

Also Read: Indore Bags ‘Cleanest City’ Title

The new corridor, which is still in development phase, will gradually be home to business parks, industrial parks, IT parks and residential projects, making it a complete commercial and housing destination equipped with the latest infrastructure. The locality already has some developed infrastructure that includes schools and healthcare institutions.

Residential development

The Indore Development Authority (IDA) has planned to give a thrust to the residential real estate market of the city’s Super Corridor by launching two housing schemes in the area. Scheme-172 and Scheme-176 will be developed on a 500-acre land in the next two years. While most part of the land used to develop the schemes will be government-owned, almost 30 per cent of the area will be acquired by the farmers. These farmers will be given 33 per cent ownership of the plots developed in the two colonies with a floor area ratio (FAR) of 1.5-2.

Apart from these two government-launched schemes, there are nearly 28 projects up for sale on the Super Corridor. Of this, 15 are ready to move in while 13 are still being constructed. The locality offers a mix of residential configurations, including plot, 1BHK, 2BHK, 3BHK and 4BHK.

Property prices

The locality, which has a livability score of 7.5, has witnessed dips and peaks in the past six years in property prices. According to PropTiger.com data, the per square foot price in the locality that stood at Rs 2,150 in 2013 has only reached Rs 2,190 in 2019. The property prices here range between Rs 14-62 lakh.

On the other hand, the average rent here is Rs 10,800, shows Makaan.com data.

The government wants to bring down interest rates to a level where it becomes cheaper for people to pay equated monthly installments (EMIs) than paying monthly rent, Finance Minister Arun Jaitley said on April 4, a day on which the Governor Shaktikanta Das-led Reserve Bank of India (RBI) reduced repo rate by 25 basis points to bring it down to six per cent. Last rates were this low was exactly a year ago.

“When Atal Behari Vajpai was the prime minister, paying home loan EMIs was cheaper than paying rent. We need to take interest rate to that level,” Jaitely told Hindustan Times in an interview.

"Low interest rates will make borrowings cheaper, particularly for homebuyers, and boost consumer demand that will boost economic growth," Jaitley added.

For the uninitiated, repo rate is the rate at which the RBI lends money to the bank. Since cost of borrowing reduces for bank if repo rate is cut, they are expected to pass on the benefit to borrowers by slashing lending rates consequently—something they do not often do despite the central banks urging them to do so.

“Banks have a formulation where they do not do an immediate transmission. But, they do it over a period. So, we will have to wait for their decision,” the FM told media on Thursday.  

Does it really make sense to opt for EMI over rent?

One could also argue against the idea, based on several facts, but those who do want to buy a house would have enough reasons to encourage them to make a move at a time when interest rates are at record low.  

Let us give you seven reasons why you ought to buy a home now and say your rented accommodation goodbye:

1. You no more have to deal with a landlord. You own the asset yourself. Your own house alone can provide you with the utmost sense of privacy and freedom.
2. House ownership is a great teacher. It by default would instill in you a much greater sense of financial prudence.
3. If packing and repacking is not ideal because you now have a family to take care of, buying is what you ought to do without further ado.
4. Let us face it. Money payments towards home loans would almost always be much higher than monthly rents. But the fact that EMIs gradually earn you complete ownership of an asset should be reward enough for financial pressure you may be facing currently.
5. If need be you could rent part of the premises to earn rentals. No subletting rules stop you from doing that.
6. You are saving your children the trouble of starting all over again when they are adults. They would own the asset that you built.
7. It reflects brilliantly on your financial prudence. You can hardly believe the kind of respect you start to get once you become a property owner.

The entire country is in a celebration mode! On April 6, people in different parts of the country would celebrate one occasion, the first day of the Hindu calendar, though by different names. While people in Maharashtra celebrate the day as Gudi Padwa, people in Kerala call it Vishu. The occasion is celebrated as Yugadi in Andhra Pradesh and Karnataka and Puthandum in Tamil Nadu. 

Realtors of the country eagerly wait for this occasion—this is the time which is considered by Hindus to buy property. This year, developers are expecting better sales since the government has launched several moves that have made home-buying more affordable. Rate of the goods and services tax on affordable housing has been bought to one per cent. Interest rates are also at record low.

Now, what are builders offering to make the deal sweeter for homebuyer during this Gudi Padwa or Baisakhi or Yugadi?

Offers aplenty

From customised payment plans to zero GST and subvention schemes to free appliances, builders have crafted Padwa offers to cash-in on the occasion. Runwal Group, Sheth Creators, etc., have gone an extra mile to make it a happy festival for homebuyers.

For instance, Runwal Group is offering EMI holiday of up to 12 months for new buyers while Sheth Creators is launching its referral scheme for their existing clients.

Developers are also offering gift vouchers of interior brands using which buyers can purchase modular kitchen or furniture at discounted prices.

Some developers are also offering cash discounts in their ready-to-move projects to clear their unsold stock.

Some developers such as Godrej Properties and Poddar Housing are using the auspicious occasion to launch new project. 

“Developers continue to create special offers and other alluring schemes to make attract end-users. The government move to cut the GST rate on under-construction projects could lead to a 6-7 per cent reduction in the buyers’ payout. Through consecutive reductions, the Reserve bank of India has also brought down the repo rate, the rate at which it lends money to banks, by 50 basis points this year,” says Girish Shah, executive director, residential services, Knight Frank-India.

“These factors would prompt buyers to make a move, and the Gudi Padwa is expected to providing them just with the right time to do so,” he adds.

It may seem slightly absurd that house-purchase decisions, the biggest financial transaction in most individual’s lives, are oftentimes emotionally driven. Don’t those who have made their fortune by the way of investing invariably tell us that caution, diligence and detachment are the keys to make wise investment decisions? But then, if it were not for the emotions, why would one be driven to do anything at all, wise or impulsive? A typical homebuyer ─ one who is buying a property to stay there and not to make money out of it ─ would not trifle with his lifetime of savings if it were not for an emotive disruption. Now then, what are the external factors that give our internal being that necessary push to finally take a call?

That festive feeling

Festivals are occasions when even those who are often accused of being skin-flint or Scrooges loosen their purse strings ─ that is festive spirit narrowed down for you! No wonder then that home sales see an increase during the festive season, which starts from October and lasts till about January, from Diwali to the New Year.  Developers wait for the festive season to make up for any slow growth that they may have witnessed during the entire year. Apart from this, for Hindus, Akashya Tritiya that falls in the month of Vaishakh and the first day in the month of Chaitra, is also considered auspicious for booking homes. To attract buyers, developers throw open several discount offers and concessions during the festive season.

Mathematical delight

Most homebuyers these days — who are young, working professionals — opt for home loans to fund their purchase. This lot keeps a keen watch and follows every move of banks. For them, a low interest rate regime would be the most auspicious of the occasions to book their homes. Data show that after each rate reduction by the Reserve Bank of India (RBI), home sales figures witness an uptrend. This goes further up when banks quickly extend the benefits of the reduction to homebuyers.

Striking at the right time

Recent trends also show that homebuyers utilise the opportunity to make their purchases at a time when developers may be grappling with a dip in sales and a rise in inventory. In a situation like this, prices are likely to be much lower than in normal circumstances. Data available with PropTiger.com show end-users are driving India’s residential real estate market currently, at a time when real estate developers across the country’s key housing markets are struggling with huge unsold housing stock. Unlike when the market was booming, developers are more willing to offer sweeter deals to homebuyers. Negotiation did not yield this kind of result in the booming market.

By the book

These days, educated-working professionals form a substantial part of homebuyers in Indian cities. Among other things that influence their home-buying decision are the various reports on the property market. Armed with an opinion that is formed on fact analysis and data crunching, such buyers put all their reading to good use by making a safe financial decision. They are also likely to go for places which lie on top of the heap on certain indexes and surveys. This is why cities such as Pune and Chandigarh, with their clean public image, have more takers than other Metropolitans.

Ready to go

For many, any day is a good day to book a home if they have the money. Those who need to apply for a home loan would certainly not wait for banks to reduce home loan interest rates. Then there are buyers who are in a hurry to buy for personal reasons and don’t really have the time to wait for the “right time” to make the purchase. A couple that sees that there is an urgent need to leave the rented accommodation and shift to house of its own would hardly consider the timing if they have the financial wherewithal to immediately make the purchase. This is, in fact, the buyer segment that keeps the property market going even in its weakest phase.

For most Indians, religion is a way of life. People’s quest for spiritual freedom also leads to several materialistic changes in the real world, in the world of real estate. As a matter of fact, cities, which have religious significance, are seeing more and more investment from investors and homebuyers. While this trend was seen in old religious centres earlier, new locations are becoming popular among devotees to buy properties in recent times.

A look at five cities where real estate is flourishing due to their religious significance:

Mathura, Uttar Pradesh

The followers of Lord Krishna and the lovers of the peda, a sweetmeat the city is famous for, flock to Mathura as often as they can—the city enjoys brilliant connectivity with all parts of the country. While the former immerse in the many stories told and retold by the pujaris of various temples, the latter try out different shops to find the best of the pedas that would leave their taste buds rolling for more. Mathura’s proximity to Delhi (it lies 145 kilometre southeast of the national capital) and many key cities in Uttar Pradesh (it lies 50 km north of Agra) has also been instrumental in promoting real estate here. Mathura real estate is gaining popularity among retired couples looking for “affordable” spiritual surroundings to live the rest of their lives peacefully.

Average property price: Rs 1,200 psf.

Rates of property in the city increased 151 per cent in the past one year.

Key localities: Pali Khera, Aurangabad Bangar, Refinery Nagar, Udhanpur Banger and Vishwalaxmi Nagar.

Haridwar, Uttarakhand

Who would not like to have a house in a city, where the climate is perfect, the surroundings are peaceful and homes that would provide a beautiful view of the Ganga? Would the charm of the house not increase manifold if the resident could just walk out and be a part of the daily Ganga aarati at the ghats in the evening? Lying close is Rishikesh, which, apart from its religious significance, is also popular as a weekend getaway. Because of this variety of reasons, more and more people are prompted to invest in Haridwar real estate for a second home or a holiday home.

Average property price:  Rs 2,700 per square foot (psf).

Rates have increased 20.48 per cent in the past one year.

Key localities: Kangri, Kankhal, Shyampur, Salempur Mahdood, and Shivalik Nagar

Tirupati, Andhra Pradesh

Already the ninth most populous city in Andhra Pradesh, Tirupati, also referred to as the spiritual capital of Andhra Pradesh, is seeing more and more people seeking residence here. While most of the devotees come to the city to stay close to Lord Venkateswara by visiting the Tirupati Venkateswara Temple, there is a sea of temples in town to dive. In 2018, Tirupati was rated the fourth best city to offer ease of living in India. Many developers have launched projects here to provide suitable residence to those who want to have a second home in this heritage city. 

Average property price:  Rs 2,900 psf.

Key localities:  Kottapalli, 3G Garudadri Layout Kuntrapakam, AIR Bypass Road, Anantapur Tirupati Highway

Puri, Odisha

Things cannot get better if one can manage to have a home in a city that houses the temple of Lord Jagannath and boasts a clean beach at the same time. While this location’s proximity to Bhubaneswar would ensure you have access to everything a state capital offers, you would also be much content in the peaceful surroundings the city is known for. In Puri, you will be spoilt for choice if you make up your mind to book a flat here.

Average property price:  Rs 3,400 psf

Key localities:  Bata Mangala, Kasiharipur, Sipasurubili, Sipasirubili Mouza and Siddhamahavir

Shirdi, Maharashtra

While Sai Baba has his followers across India, his devotees visit Shirdi at least once in their lifetime to witness what lies at the centre. While this has promoted the rental and hospitality segments here to a great extent, developers have also launched many projects here to meet the demand for housing here. Property prices Shirdi have seen appreciation, too, owing to the rising demand.

Average property price:  Rs 3,600 psf

Key localities:  Kakdi, Pimpalwadi Road, Rahata and Rui Shiv Road 

Note: Cities are ranked based on affordability.

Data is sourced from Makaan.com and covers trends.

It is only normal for doubt to creep into your mind right after you have bought something. Property investments are no exception. Often, a buyer starts wondering whether his decision to buy a property is right or not once the deal is completed. However, over-thinking might not be a good idea. You would have gone into a detailed study of all the aspects before you bought the property and therefore such feelings must be nipped in the bud.

Here are four questions that might pop into your head but must be dismissed immediately:

Did I rush it?

One waited for the right time to invest. One only decided to buy a property once prices had stabilised, developers were offering heavy discounts and authorities had slashed stamp duty charges. However, a buyer often ventures into a deal wondering whether by waiting a little longer he could have bagged a better price. Entertaining such doubts could trigger anxiety and may not be of any help. It is better to focus your energies on the new house.

Could I have got this for even less?

You heard your friend also bought a new house of a similar size and design but paid far less. Now, you feel like a fool. You, too, could have got it cheaper had you negotiated better. At a time like this, you might remind yourself to compare the two properties. Only because the configurations match does not mean the two properties are similar. Your apartment might be offering you a better connectivity or a better outside view. Property prices differ based a multitude of factors. You decided to invest in your present property after due diligence. There is no need to get into self-doubt about this.  

Could I have bargained better?

This is another suspicion that creeps into a most home buyers' head, often after they through with negotiating. The seller reduced the initial price he quoted for the property and if only you showed a little less interest in the property, your friends tell you, he could have come down even further. You might be greatly mistaken here. Recent developments in India's real estate sector show even at a time when developers were struggling with heavy inventory stock, property prices did not see a free fall. They did offer several discounts but prices remained largely stable. There is only so much a seller would do in the world of property market. In fact, in your enthusiasm of hard bargaining, you might end up spoiling the deal.

Did I settle for too little?

Home buyer often wonder whether they could have waited a little longer, saved a bit more and invested in a better property. The answer is yes – with more money you can afford a better property. However, you did invest your money, which is, likely, growing. In case you want to sell you current house and buy a new one, the return on your investment would surely be bigger than what you could have expected from keeping your money into a saving account. And then, you are now enriched with the knowledge of property which will help you in your pursuit for betterment.

In the good-old days ― well, not too old as we are only talking about the times after independence ― property purchasing was perceived differently than it is today. People of this generation, for instance, think differently than their parents' or grandparents' generation when it comes to real estate investment. 

What is the basic difference between the past and the present?

We don't hesitate to borrow to buy property

We won't be wrong in assuming that most home-buying deals of today would not take place if banks were not there to offer credit. Young homebuyers are only too eager to get a home loan. Will it not mean they become property owners in their 20s? Will it also not mean they save big on taxes? Will it also not mean they do not have to live in rented place for a great part of their lives? In our hurry to reap all these benefits, we rush to banks with a loan application and pray that things work out well, and we are granted the loan.

Our fathers and grandfathers, in most cases, would not share our view. They would go through the pain of living in rented accommodations to ensure they lived debt-free lives. They would use all their funds ―  retirement money, family jewels, loan without from friends and family, etc. ― to ensure they do not have to go to a bank to ask for credit. Personally speaking, it is only in a worst-case scenario that my father would agree to take a loan from a bank.

Also read: Gold Versus Real Estate: Which One Is A Better Investment?

We do not think it's a once-in-a-lifetime investment

The generation preceding us used all its might to collect every penny it could and bought a house it could afford. After that, there was hardly any chance of them selling the property to buy another. In most cases, if one could afford a second property, they would still stick with the first one. In short, our fathers and grandfathers attached more sentimental value to property. This emotional approach could also help explain the relatively slow movement of property markets in the old times. It is not the same with us. We are always looking forward to moving to greener pastures. If I find a better property five years after I bought my first home and can afford it, I and most people of my age would not hesitate even for a second to grab it.

Also read: Going Home Shopping? Doing Everything Yourself May Not Be A Good Idea

We don't think sticking close to the ground is necessary

My father lives in a house which he built on a plot. No doubt, it is far bigger than my 2BHK apartment! Every time he visits me, he makes his displeasure about my purchase decision known — he says and I quote, “a house hanging in the air is no house at all”.

The only way I can establish my reputation as a smart investor in my father's eyes is by purchasing a plot and constructing a house on it. The only problem is, I do not share his thoughts on the subject. Why would I worry myself with arranging safety measures when I live in a housing project that offers me 24x7 security? Why would I go out to do some physical exercises when my housing complex offers me a gymnasium, a swimming pool, a badminton court, etc.? I may have to be content with smaller spaces, but then again, I do not have to maintain bigger spaces in my busy live.

Disclaimer: Views expressed are personal.

Surat, the textile hub of India, will soon become the second city in Gujarat to have a Metro connectivity. The Centre on March 8 approved the construction of two Metro corridors in the city. The Rs 12,000-crore Phase-I project will be implemented by the Gujarat Metro Rail Corporation (GMRC) and will be completed in five years. The project will be financed by the Central and the state government on a 50-50 basis.

The two corridors approved include Sarthana to Dream City and Bhesan to Saroli.

Corridor-I: The 21.6-km stretch will run between Sarthana and Dream City with 20 Metro stations. Of the total stretch, 6.4 km will be underground while the remaining will be elevated.

Corridor-II: This 18-km line will run between Bhesan and Saroli, and will have 18 elevated Metro stations.

Impact on real estate

Unlike many Tier-II cities in India, Surat has an active property market that interests many non-resident Indian (NRI) investors.  

The corridor-I will be connecting the Diamond Research and Mercantile City, which is an upcoming business district in Surat. To be built on 2,000 acre of land near Khajod, the Metro connectivity will make the area more approachable and attractive for commercial development. At present, Varachha has most of the diamond workshops and will be connected to Dream City by the north-south corridor. The same corridor will also be connected to the Surat International airport.

Adajan, Pal, Palanpur areas are some of the popular residential localities in west Surat that will fall on the corridor-II. According to data available with Makaan.com, there are over 200 ready-to-move-in projects in west Surat, with property prices ranging between Rs 4,500-6,000 per square foot (psf). The Metro connectivity will have a positive impact on the otherwise stagnant property prices. For those planning to move-in here or buy a property for rental income, now is the time to do so.

When a property is bought not to keep it for end-use but to rent it out (in the short run) or sell (in the long run) with an aim to make monetary gains, it must be treated differently. Certain rules must be followed to make sure the primary purpose of this investment is fully achieved. This is why different yardsticks are used to deal with an end-use property and an investment property.

Does your property really need that change?

There are pro-active sort of investors. They like to do all it takes to earn good rentals or get a great deal when they sell a home. To do that, they invest heavily in the property. Here is a word of caution for them: do not personalise the property.

To begin with, it would require a good deal of investment on your part. Improvements that do not improve the property of the property but are only reflections are of your own taste and style would it more harm than good. If you equip the kitchen of your fully-furnished home with a microwave, for instance, it is going to a plus — we live in times when microwaves have become an essential part of our culinary life; your tenant is going to love this equipment. However, adoring your drawing room with a grand chandelier or a great painting would not really solve your primary purpose. Let the tenant decide how they want to decorate their territory, even if it is temporary.

Our homes are everything we are, but, that rule does not apply to a property which you are planning to give on rent or sell for that matter. Do be mindful of the fact that this property has to be everything that the tenant/new buyer is. A tenant will have to work a great deal to make your personalised signature off the property and create his own. When you start looking for a buyer, personalisation would again hinder your progress.

In case you are looking to sell the property, do not go for making structural alterations. This would mean a great deal of investment on your part on the one hand. This would also limit the new buyer's chances of changing the property in a way that they might have liked. The key is to let the buyer imagine the possibilities your property has to offer. You would be blocking their vision if you went ahead and made changes based on your own judgment.

Several changes that are commonly perceived as value addition also end up devaluating your investment property. The arrival of the Metro network too close to your property, for instance, is not as beneficial for you as you might have thought. Not many of the tenants would like to live in a place that would constantly be noisy and crowded. Similarly, if a telecommunication major sets a mobile network tower in your housing society and you think you could cite this as a unique selling point of your property to buyers, you would be doing wrong.

Changes that amount to health hazards would not find favour with buyers.
Then, there is that category of investors who think the property will sell/rent itself. This category of investors would not do even the bare minimum that is required to make the property inhabitable. It would be good to remind yourself that the market a full of great property-we live in that kind of times. Gone are the days when property owners had the privilege to act that way. Sitting on a vacant property would only harm your monetary goals ergo make the additional investment that is required to achieve that primary goal. Also, maintenance would be your responsibility in case you give your property on rent. Do be mindful of that fact, too.

Shiv Nandan, 28, finalised a property and he was only inches away from becoming the owner. But, something occurred at the last minute that derailed his plans. While this software engineer was in the process of buying the property, he changed his job. The banks from which Nandan was going to get a loan did not take kindly to the fact that he didn't inform the lender about the change.

If you, too, have also finalised a property and are set to seal the deal, make sure that any last-minute change does not derail your plans.

Switching jobs

Like Nandan, not informing your lender about a job change could take you back to where you started. In any case, a change in job while you are in the middle of buying a home is not a great idea. A lender before giving out the funds runs a final check with your employer. In case the lender finds out that you have quit or have been fired, be sure that your home loan application will be cancelled.

Another loan

When making a final decision of buying a property, do not take up another loan. For instance, you want to buy a new car while you buy a home. Not a great idea. This will add your financial burden and disrupt your debt-to-income ratio. If the lender at the time of conducting a final credit check finds out that you have another loan and it will raise your DTI, he will see you at risk and might not approve your home loan. 

Also read: Little Financial Mistakes During Home Buying That Bite Hard

On second thoughts

This could happen with a buyer as well as a seller. What if your seller, who gave you a final yes verbally, got a better deal? He is likely to have second thoughts. This could derail your home buying at the last minute. Or, what if you made a final visit with one of your relatives and they pointed some critical issues with the property? You may have second thoughts, too.

Also read: Don't Do These 5 Things Before You Buy A Home

The final touches

During the final discussion with your seller, there might arise a disagreement over things small and big. Do not consider the purchase complete until you cross this stage.

Do not be mistaken by the advertisements they show on television. Getting a home loan takes much more time than what the TV commercials tell you. Apart from the time, you also have to be ready with piles of documents to prove that you can be trusted with a loan of such a great value — home loans are often large in size and most borrowers would spend a great part of their lives in repaying them. Buy what if you are not prepared to buy you must get a loan and buy a house nevertheless? Your credit score is poor and your eligibility is also questionable on several grounds. And, the problem is that you need this loan as quickly as possible. Banks would certainly not entertain you. What are your options, then?

The answer is that you could go to a housing finance company (HFC) or a non-banking finance company (NBFC) and apply for a home loan. Not only would you have your loan quickly processed, you would also find the whole process comparatively easier. When compared to banks, HFCs and NBFCs have relaxed rules and are more willing to lend even if a borrower does not meet the eligibility criterion.  However, there are certain things that must be considered before you knock on the doors of an NBFC or an HFC to borrow.

• Loans offered by the non-banking housing finances companies are not linked to the new lending benchmark—the marginal cost of funds-based lending rates (MCLR). Loans offered by NBFCs and HFCs are linked with the prime lending rate system. The MCLR regime came into effect in April 2016, and all banks now offer home loans linked with a floating interest rate using the new benchmark.

• It is mandatory for banks to pass on the benefits offered by the Reserve Bank of India, as the MCLR system falls under the ambit of the central bank. The same is not true of the prime lending rate system. NBFCs are free to set a prime lending rate of their choice and any changes by the RBI in lending rates will have no impact on it. This means that an NBFC is under no obligation to slash interest rates even if the RBI has substantially reduced repo rate (the rate at which the RBI lends money to banks). However, this works both ways. Banks can not lend you money at rates below MCLR while HFCs and NBFCs can do so.

• Banks provide you with an overdraft loan facility. The overdraft loan is linked with a borrower's account in which he could keep a surplus income. This surplus money is treated as loan pre-payments by the bank. This not only brings down your loan liability but also substantially reduces the interest outgo. HFCs and NBFCs do not offer thins facilities to people who borrow from them.

• While HFCs and NBFCs go easy when it comes to paperwork and other norms that are strictly followed by banks, they do increase the interest rate in case your credit score is poor. While a credit score between 300 and 600 is considered risky by financial institutions, a score above 700 is considered no-risk zone.

• As is obvious, HFCs and NBFCs have a low customer base when compared to banks. To increase profits, they try to sell borrowers other related projects --such as home insurance cover and home loan insurance cover-- along with the home loan. The same is true of banks, too, but NBFCs and HFCs are likely to push this agenda more aggressively. This could jack up the overall cost for a borrower. Depending on your requirements and financial position, you may have to tell your lender that you may not be able to afford the add-ons.

Also Read: A Guide To Get Home Loan Against Property

Well-designed, captivating and welcoming, sample flats are what an ideal home would look like. But, wait. These flats are not what you will actually get.

When on a site visit to an under-construction project, you are persuaded by the developer as well as the broker to visit the sample flat to take in the look and feel of what you will be delivered. These flats are designed with utmost care and the best-in-class products to entice the potential homebuyers and make them think that it is exactly how their dream home would be like. While the whole setup looks perfect, remember, what you will get is nothing close to the sample flat.

Also read: Questions You Should Ask During Site Visit

These flats are designed so that the homebuyer is all set to buy the property the very moment and developers spend a heavy sum to make them look top notch.

It is suggested that you take everything you are shown in the sample flat with a pinch of salt. Here's how the sample flats are different from the flat that you will be delivered in the future:

• The main door of the sample flat will be at least 30 per cent higher and almost 10 per cent wider than the flat that you will be delivered. The wood used on the door will be thick and top quality, too. These features make the flat look bigger at the very first instance.

• You will see a lot of glass separators between rooms rather than walls, another way of making the flat look spacious as well as luxurious.

Also read: Going For A Property Visit? Don't Forget To Carry This Checklist

• The ceiling will always be a few inches higher than the flat you will be delivered in the future.

• The lighting fixtures used will be luxurious and elaborate that will give you a sense of space.

• Smaller furniture is used so that you see more space all around ranging from living room to bedroom.

• Even the walls in these apartments are not concrete rather the developers use gypsum boards as these are easy to install and then dismantle. But, as a home buyer, you will see more room.

• Modular kitchens showcased are luxurious, too, made using quality hardware. You might not be delivered the same.

What can you do to avoid being disappointed?

• If you are planning a visit, make sure you ask the broker, while he shows you the sample flat, to take you to the site to show a raw flat too.

• When visiting the sample flat, begin to visualise your furniture and decorative there and see if the property is spacious enough.

• Always ask for the documents with actual dimensions of the apartment and do not hesitate in measuring them in the sample flat.

• In case the project is still in a soon-to-launch stage before you ink the deal, do due diligence and check the projects the developer has constructed previously. Make a visit to these projects if possible.

Also Read: Scam Watch: Beware Of Visually Appealing Sample Flats!

You may have done everything in your capacity to make sure that you invest with one of the best brands. But, as fate would have it, this real estate project got stuck in a limbo after the developers failed to comply with the terms of the agreement it signed with the lender. No sooner did you hear about the news than you, as a buyer who has used all his savings to book this flat apart from taking a big loan, started panicking. Are you going to lose your property because a legal tussle has broken out between the developer and his lender? Well, not necessarily.

What is about to unfold?

In case a developer defaults, the lender would first start proceedings known as symbolic possession. The drill is that the lender would stick a notice on the project informing the public about the default. However, this does not mean things have reached a point of no return for the developer. The defaulting party can approach the bank and settle the matter.  He could use his personal or corporate guarantee to maintain his ownership of the project. In the meantime, this promoter can continue the construction work and even hand it over to buyers.  However, in case the bank and the developer fail to come to terms, the lender would start the process to take physical possession of the property.

What now?

This lender, in all likelihood, does not mean to take down the structure. This would mean a severe beating to its profits. The most obvious choice that lies in front of the bank to recover its money is to sell the project to another player. The new developer or contractor will be serving the loan on different terms.

How does it impact you?

The change in the ownership of the project in no way fiddles with your ownership of a unit. The whole change in ownership, in fact, could only be an academic exercise as far as buyers are concerned ─ there would be some name changes. But, do make sure that you have completed all the paperwork to prove your ownership. Experts are of the belief that only having in your possession the builder-buyer agreement may not be enough. Buyers who have paid the stamp duty, the registration charges are better protected. In case you do not feel comfortable in the wake of the recent occurrences and want to sell this property, you have all the right to do so.

We reckon that the monthly EMI (equated monthly installment) that you are paying against your home loan has turned out to be a huge burden. You now pay over twice the amount as your EMI when compared to the monthly rent you paid earlier. Despite the fact that you and your wife both are earning, it is becoming quite a task to manage your finances. There are so many other property-ownership related expenses—maintenance charges, for instance—that you did not factor in when you were making the budget for the entire thing. In hopes of a long time gain, there is a near-term pain. What could you do now to limit it?

• There is a substantial amount of money you spend on buying fuel—petrol or diesel or gas—for your automobile. If more than one member of the family owns cars and uses it for all their travelling purposes, the cost of travelling multiplies. This is one area where there is scope to cut costs. Government is working quite hard to improve the connectivity across the nation. Why not make use of the public transport sometimes while sparingly using your private vehicle?

• When you see your friends and colleagues posting pictures of their fun-filled grand vacations on social media, a sudden pang of restlessness grips your heart. Extreme as it may sound, let us try and give social media platforms that make us unhappy a skip.  A good deal of money is blown every month on maintaining internet connectivity. You enjoy uninterrupted internet connectivity in your offices on your phone. You may consider giving away the wi-fi connectivity at your home in case it does not adversely impact you in some or the other way.

Also read: Is Facebook Envy Shattering Your Home-Buying Plans?

• As much as you like to socialise, the truth is that you will have to put a cap on such activities to run easily on your existing income. You may not have realised earlier, but those frequent weekend parties and dinners have you dearly. For instance, a decent meal for two people in a decent restaurant would cost you nothing less than Rs 2,000. In case you go for 10 such dinner dates in a month, you would be spending Rs 20,000 a month. You will have to make the unkindest cut in this area. 

• There are many luxuries you enjoy as a property owner, but these luxuries do come at a cost. There are so many things that you earlier did to pamper yourself. This may include regular visits to spas and salons. Being a movie buff, you also indulge in watching every film that released every weekend. Let us remind you that you have an EMI to pay. You do not have to stop such activities altogether; you only have to strike a balance because you do have a new financial liability now.

• A great deal of customer behavior research is done for setting up retail stores. Things are placed in such a way that you often end up buying more than you need. Sorry to remind you, but you cannot afford the luxury to get carried away in such frivolities anymore. Make a list of things that you need and stick with that. Buy only the essentials.

• Depression and stress are the most commonly used words that define the modern lifestyle. Caught between the demands that our personal-professional lives pose in front of us, we often start suffering from these maladies. Most of us seek refuge in retail therapy to overcome the two ailments—we go out and buy clothes and accessories irrespective of their usefulness. In this process, we end up paying more than we would pay in case we decided to seek help from a psychologist. We do acknowledge that you do need to do this to keep your sanity intact, but might we suggest it be done sporadically.

• Earlier, you did not pay much attention to what kind of penalty you paid for making late payments. This includes telephone bills, utility bills and payments towards various policies. This is the time to make the calculation. You would be surprised to see the savings you will have in case you maintain the payment dates.

From choosing your property to paying your property tax, homebuyers can do everything online these days. Moving ahead, they could also use the internet to bequeath their assets in future. This could be done by creating a digital will, also known as e-will.  

Let us note down the benefits of creating a digital will first.

Save time: To begin with, the entire job could be accomplished in only half an hour or so.

Save money: Typically, a lawyer could ask you anywhere between Rs 10,000 and Rs 50,000 to create a will. When you do it digitally, you could get the job done in Rs 2,000-5,000.

Quick edit: In case you change your mind about distribution of your assets, you could make a quick edit in your digital will without having to seek the assistance of a lawyer.

Ensure document safety: You run the risk of losing a document that is lying with you in a physical form. A digital will ends that risk. Also, the platform you use to create an e-will will delete all the information once the will is created. There are no risks of a third-party involvement in the process.  

Who will help you create an e-will?

Since we are now aware of the benefits, let us now see which players in the Indian market would help you make a digital will. SBICAP Trustee Company, NSDL and HDFC Securities are among the established players in this sphere. You could create an e-will on the SBI platform by spending only Rs 2,500. On the other two platforms, the charges are slightly higher at Rs 4,000. There are also several startups that are launching such platforms. In case you are a non-resident Indian, you could make use of the services of ICICI Bank and Federal Bank.  

How to create an e-will?

Let us go step-wise here.

*Log on to the platform you have chosen for the purpose, and create an ID first.

*Now, you will have to make the payment for availing the services, using online payment channels.

*Once that task is complete, a form will appear asking you to fill your personal information, along with the information about your assets, and how you want to bequeath it.

Once you submit all that information, the platform will review your will, and send you a draft for approval. Once you give it a go ahead, the final copy of your e-will would be created. Additionally, the service provider will also send you a hard copy at your home address.

What has to be done after an e-will is created?

Create witnesses: Take a printout of the will and get two witnesses to sign it. Keep a digital record of the same.

Get it registered: As is true of a will created otherwise, get this document registered. To do that, you will be spending Rs 7,000 onwards, depending of the type of assets and the distribution.

Get a medical certificate: A will could be challenged in future and become null and void if it could be proved that the creator of the will was not in a sound state of mind while creating it. To make sure your will is not challenged on that ground in the future, it would be the best to get a medical checkup done right before the creation of the will. Keep a record of the same.

Keep the physical copy secure: It would be a good idea to keep the hard copy secure with you.

An e-will may not suit you if

*You are large and scattered across categories

*You own assets in different geographies. A will created in India, for example, may not be legally acceptable in other nations.  

*You belong to a religion that has different rules. In Islam, for instance, bequeathing all your property through a will is not allowed.

In its pursuit to provide housing for all, the government is building “affordable” homes. For this purpose, it has also defined the term ─ property bought under a certain value mean affordable homes. While many of you may not qualify to avail of benefits offered by the government since you earn a fatter salary check than what is acceptable to apply for loan waivers, the babel about the word “affordable” keeps you in an utter state of confusion. The entire nation is talking about affordability, and, you could hardly be blamed for mixing up your own theories. However, the word “affordable” means something different to each one of us ─ what is affordable to your neighbour might not be affordable for you.  It is in this context that we should be discussing your home-buying plans and the money involved in it.

Irrespective of what the rules lay, homes that cost you less than Rs 50 lakh are referred to as “affordable” units. However, an individual who earns Rs 50,000 as his in-hand monthly salary might find it quite difficult to afford this “affordable” unit. (Mind you, Rs 50,000 is a decent amount of money to be earned monthly, by Indian standards.)

Since a bank would typically offer 80 per cent of the property value as loan, this earner is expected to have in his saving account at least Rs 14 lakh. (If he lives in Delhi, he would have to pay six per cent of the property value in stamp duty, one per cent as registration charge and another one per cent as brokerage charge.) This means he is left alone to arrange 27 per cent of the property value on his own. Now, let us not theorise it for the sake of it! There are no prizes for guessing that would be a gigantic task to accomplish, even for those earning a “fat” salary check of Rs 50,000 a month. It might take several years of saving and investing before one is able to collect that kind of funds, considering you are paying your rent in the big city and taking care of other banal things. The flow of your expense has been such that the hole in your pocket remains un-mended. To cut a long story short, the affordable unit is not really affordable for you. If you entertained any delusions about your riches earlier, a short stroll in the real estate market would cure you of that ailment.

Now arises the question, should you put your home-buying plans on backburner because affordability of property, irrespective of its huge popularity as a concept in today’s Indian realty, evades you? It might be a mistake, to be sure, to let that happen. If you are depending on your salary check getting fatter, you must most certainly also depend on the property price tags getting more expensive. At any point, the situation would remain the same, by and large. The best way to deal with the situation is to define affordability according to your personal station and make your move. When they say, the time to buy property is “now”, there is no need to read ulterior motives into the statement ─ if you gave the idea a deeper thought, the interpretation would attain a more personal significance.

In the example cited above, the man could go for a home worth up to Rs 30 lakh. He may find it quite affordable to buy his home “today”. “Now” certainly is the time to buy property if you are able to decode and define the word affordability according to your own suitability.

It is always better to depend on your friends and family members for financial help for a number of reasons. To begin with, you do not have to pay an interest in case you take a loan from them. You will only be returning what you borrowed. But, you run the risk of spoiling your relationship in case you fail to show sincerity in repayment. Let us understand this with the help of possible scenarios.

Scenario 1

Abhay and Ankita had an arranged marriage. It was a well-thought of decision. While enough money was spent to mark a decent wedding ceremony, the two youngsters in their late 20s who have been living on rent in the city of their work combined a large part of their savings to buy their home. They were also co-applicants in the home loan application. Later, Ankita would use her income to run the household while Abhay's salary would be spent in paying the monthly EMI (equated monthly installment). As fate would have it, the duo decided to separate at a later stage. Among all the major issues that needed resolving was the property ownership issue. Apparently, Ankita paid more money when the down-payment had to be made. There was no legal record of that.

Scenario 2

On his father's suggestion, Rahul bought a home, but not without taking help. His father paid the entire down-payment. Years later, Rahul's younger brother would claim ownership over the property. In his opinion, he, too, owned a part of the property as their father made the initial payment.

Scenario 3

Manish took a loan from his close friend to quickly purchase a home. Later, financial issues occurred, and despite his best intentions, Manish was not able to meet the repayment deadline. His friendship with this close buddy turned sour.

***

In all the cases cited above, something or the other went wrong. However, this is not to say you should depend entirely on bank finance to buy a home. Seek the help of your family and friends.

• To begin with, you do not have to pay an interest on this loan. You will only be returning what you borrowed.

• There is little paperwork that you will have to do.

• The process would be much faster.

Now arises the question—are these benefits worth the trouble that might arise in future owing to any discontent? Would you be ready to jeopardise your personal relationship with someone because of the benefits cited above? The answer to your question is that any unpleasant situation may not arise at all in case you are careful enough.

Here are certain points for you to consider:

• Even if we do not give money undue importance, you do know that it has the potential to spoil personal relationships. As a precautionary measure, formalise the process so that there is clarity on who spent what. In scenario one, the couple could have done that.

• In case your parents are helping you buy a home, your siblings will expect similar help in their time of need. So, it may be a good idea to take the money in the time of your need. But, do not forget to return it. This process, too, should be formalised.  

• Friendships are solely based on trust. It is only based on this trust that a friend, who will have no ownership rights over your property at any point in time, decided to lend you money. You have to be extremely careful if you are one such borrower. Do stick with the deadline. In case of an issue, keep this friend in the loop at all times.

Also Read: Taking A Loan From A Family Member? Read This

Change certainly is the only constant, but not many of us like constant changes, especially if we have spent a great deal of time working out the details of a well-defined plan. We would like things to go exactly how we had planned them to go. Home buying, for instance, is serious business and buyers want to tread a path they have carefully devised to complete this all-so-complicated journey. But, since, change is the only constant, like everyone else, homebuyers, too, should be prepared to make quick changes in their previous plans even after they have been able to find the perfect locality, the perfect property for the perfect price.

The seller might be in a hurry

All sellers, as a matter of fact, are in a hurry to complete the deal, get their money, and be on their way to reinvest it as quickly as possible. Some, however, are far more hard pressed than others. In case the seller of the perfect property that you have chosen is, say, a non-resident, he will be in a hurry to complete the transaction within a specified time. If the seller is someone who is in urgent need of money owing to a personal reason, he, too, would be overeager to receive the money as quickly as possible. Since most of us depend on financial institutions to purchase homes these days, the situation might get tricky for the buyer.

The bank will take its own time

Banks, as a matter of fact are going to take all the time they need to do their part of the due diligence. And, you have to believe that is not only for their own good; they are also doing you a great favour. In case there are any legal or technical issues with the property, the bank would identify and refuse to sanction the loan. It would save you from getting into a transaction which might have got you into trouble otherwise. While the bank is working on your home loan application, the seller would call you several times in a day, looking for updates. The nervous energy shown in the seller’s behaviour is going to keep on the edge. Even if you act pushy, the bank is going to take the time it has.

There are several small financial transactions that have to be done during the purchase process. For instance, before the bank sanctions you the home loan, it would ask you to present before it that your side of the payment has already been made, that you have already deducted one per cent TDS (tax deducted at source) from the amount (this rule applies only in cases where the total value of the property is over Rs 50 lakh), that you have also already paid the stamp duty and registration charges and that you have booked an appointment at the Sub-Registrar’s Office.

Typically, banks send a representative at the Sub-Registrar’s Office with a cheque that is directly given to the seller. Getting all these works done within a specified timeline while constantly communicating with all parties concerned can be an absolutely testing affair. While all this unfolds, a buyer will have to juggle between so many things and make several big and small changes while keeping his cool.

Here are certain additional things that you will be doing while you are at it.

*Out of nowhere, several small expenditures that you never thought of are going to pop out their heads. No matter how ready you have been for them, you could not have been ready enough. Keep in touch with someone who can help you with money as and when the need arises. The need, we assure you, would certainly arise.

*The bank will start charging the interest from the day it issues you a cheque. So, the repayment process would start immediately. Even if you bought a ready-to-move-in house, the pressure for the time being on you is going to be immense. After putting all your money in down-payment, you will also be paying the rent and the EMI.

*We live in a digital era and all big and transactions are done online. Several beneficiaries have to be added using netbanking to make all those big and small payments. This, too, is a time-taking job, and it is going to cost, too.

*You may have to open an account with the bank in case you already do not have one to make the transaction simpler. That is going to take time and money, both.

*You may have factored in all the running around you will have to do. Consequently, your travel budget is going to shoot, too.

You have some idea about what to do if you are dreaming to become a homeowner soon. While focusing on those points you may pay enough attention to things that you need to avoid doing to make sure the dream is realised soon enough.

Buying impulsively? Calm down

Urban life has its many demerits — we are often lonely and stressed. To unwind ourselves, we often make use of the retail therapy — this is to say, we flash our credit cards at the cashier to finish purchasing objects we often can't afford and more often do not require. While this exercise may have a temporary calming effect, its adverse impact on your finance is undeniable. A future homebuyer would devise other methods to deal with stress and boredom; indulging in retail therapy may derail his plans of buying a property in the near future.

Failing to pay your bills? Clear them

This is often co-related with the previous problem. Because only a swipe of a plastic currency is done to make objects your own in a matter of minutes while you involve in retail therapy, you often do not realise what kind of financial liability you are imposing on yourself. This may result in you defaulting on repayment. Recurring occurrences of this nature would mean a poor credit score, based on which banks assess your creditworthiness. You should also diligently pay off your other loans in case you borrowed for some other purpose. It would also be better to clear small loans before you sign up for the big one.

Planning job change? Hold on

Banks accept or reject your home loan application purely based on your earning potential. Your professional record is thoroughly examined by a team specifically appointed by financial institutions to eliminate any chances of risks that might arise if loans are sanctioned to an “unstable” person. While frequent job changes should even otherwise be avoided, you have to be more careful if you plan to buy a house. Stick with one job for at least a year before you submit your loan application.

Are you technologically challenged? Change it

Everything is online these days. From the selection of a property to the very purchase, everything can be materialised using the internet even in real estate. While the process may be slow, even government agencies whose help you would need to complete the transaction offer services online. For instance, you will soon be able to register your property online in Uttar Pradesh as the state is training its staff to launch services from November this year. In times like this, being a technologically-challenged individual would just not do. Take classes to familiarise yourself with the internet, if need be.

Not much of a talker? Start talking

You may like to keep to yourself in general, but when it comes to property matters taking others' opinion really matters. Taking on board your spouse about the matter is not all. Outside help must be sought to get a better understanding of the process. For instance, someone who recently bought a property would be in a position to give insights about the process. Someone who is living in the complex/locality you are planning to buy a property in knows better than what the developer would tell you. Also, your parents, friends and neighbour can also give you useful tips to breeze through the process.

Do not like to go by the book? Start reading

Not everyone enjoys reading. In fact, some of us barely managed to survive the academic life. This is certainly the time to start reading, voracious reading would be preferable. Familiarise yourself with rules and regulations involving property purchases—read the law on that account. Also familiarise yourself with tax-related matters — read about what would be your tax liability. Arm yourself with the knowledge of how the banking system works — you have to apply for a loan after all. Being a Jack of all these trades would turn out really useful. Also, the world of real estate is ever changing — you must also follow the ongoing developments in property markets. Take the help of real-estate specific TV channels, newspapers, magazines, online portals, etc., to keep yourself updates.

Like to do everything on your own? Let go

While discussing, parleying, reading and keeping yourself updated would ensure you are not duped at any stage, this is not to say you have to entirely depend on your personal skills to complete the purchase. Be open to the idea of hiring the services of a lawyer, a broker, an interior decorator, a chartered accountant, etc., to make sure the buying process goes smoothly. While making sure that you do not remain without a clue on matters, taking the assistances of experts is preferable.

When it came calling after eluding it for so long, the word affordable entered India’s real estate territory in a tsunami-like manner. As soon as it took charge in 2014, the National Democratic Alliance government made it clear that anything that came in the way of affordable housing was going to get hurt as it vowed to provide housing for all by 2022. Those property markets which were not able to quickly adapt had to bear the consequences, Gurgaon real estate included.

A change of heart…

Before affordability became the defining word for India’s real estate sector, property markets of the Millennium City, widely known for their expensive tag, were performing quite well. Everyone was fond of the vibe they got in this city, which successfully replicated some of the features of a global city. Those who swore by quality found the construction satisfying. Those who aspired to rub elbows with the well-off knew Gurgaon was the place to be. In that hot pursuit, buyers did not let money be a constraint even if they found Gurgaon more expensive than other markets in the region i.e. Noida and Ghaziabad. Easy availability of home finance, which banks began to offer aggressively stating this decade, only improved their odds. Consequently, the demand for housing went up while rates kept increasing. Gurgaon real estate’s joy ride, however, came to a shocking halt with the emergence of a slump-like situation in India’s other property markets the early signs of which were seen in 2014. In an atmosphere such as this, the term affordability attained a biblical sense; everything having any disagreement with the concept of affordability went right out of fashion.

Developers chucked their previous plans midway and quickly started a spree to launch affordable projects without having a universally accepted definition of the term. Banks started lending aggressively to this segment, proving ease of doing business. Buyers could not have asked for anything better.

It was only natural that the negativity attached to anything luxurious significantly affected the aspirational value based on which Gurgaon, streets of which are adorned by some of the posh malls and some of the grandest commercial set-ups in the country, was built. As if feeling guilty for wanting to buy luxury when opting for affordable would have been ideal, buyers turned their back to the Gurgaon property market.

Consistently since the demand has receded and supply has fallen even as property prices underwent some correction. Data available with PropTiger.com sow home sales in Gurgaon fell 43 per cent in the second quarter of the current financial while sales numbers increased 59 per cent for its affordable peer Noida on an annual basis. New launches also decreased 46 per cent during the period in Gurgaon while the fall in Noida has been restricted at 33 per cent, despite the fact that some of the biggest Noida-based builders are staring at insolvency and buyers’ trust in the market has hit an all-time low.

Property is way more affordable in Noida when compared to Gurgaon. A square foot of space in Gurgaon costs buyers an average Rs 5,000 while the same space in Noida could be bought for Rs 3,800, data available with PropTiger.com show.

It would be wrong to blame the high price alone if the developers’ saw their apple cart getting turned upside down in Gurgaon though. Buyers paid extra for enjoying world-class facilities in this city. They found themselves shortchanged when the city’s fancy infrastructure came undone on several occasions. Apparently, the city is not equipped well enough to handle even over-night rains as has been proved on various occasions. In a city that hopes to become world-class, residents often find it difficult to get uninterrupted supply of even the most basic amenities.

… And a turn of luck

Since not much improvement is seen on those two fronts listed above, would it even be correct to assume a change is likely for Gurgaon real estate in the New Year? Well, we have reasons to believe they would.

Private estimates show Gurgaon saw the most rigorous commercial space leasing activity in the second quarter. Global technology giants are betting on Gurgaon’s top-quality office spaces to make their mark in one of the world’s largest markets. As the rule goes, people follow jobs. If they do so, the only likely scenario is that they would move to Gurgaon in search of rented or permanent accommodations. If that happens, they would find it easy to have their pick as the city property market is replete with 47,500 fresh units that were added to the city’s existing housing stock in the last three months of 2018.

Possible completion of some stuck infrastructure projects that are slowing down the process of recovery for Gurgaon real estate may also help turn its luck.  

The Kherki Daula toll plaza, for instance, is acting as a spoil sport for Manesar, Dharuheda and Bhiwadi markets. The toll plaza is major of traffic congestion in the areas. While plans to shift it to another location have been in the making since 2017, the government is may finally move the site this year. The shifting of the toll plaza would make the Delhi-Manesar industrial area stretch toll-free, giving a major boost to property markets nearby.

The completion of the Southern Peripheral Road (SPR), which will connect the Golf Course Road with the National Highway-8, would also act as a panacea for the micro property markets of the Golf Course Road and the Sohna Road. The 16-km-long road originates from the Gurgaon-Faridabad Road near Ghata Kanarpur and meets the NH-8 near Kherki Dhaula via an intersection at the Sohna Road, at the Badshahpur Chowk.

The much-delayed Dwarka Expressway, which will provide greater between Delhi and Gurgaon, is also impeding the growth of the property market. Work on the Haryana stretch of the project is likely to start this November. Even if a full recovery may not be on the cards, Gurgaon may very well regain some of its lost charm for property seekers and investors.

Still in its early stages of development, Gujarat International Finance Tech-City (GIFT) City is an ambitious mixed-use project in the country. It was recently ranked third in the Global Financial Centres Index 24 (GFCI). It is the first time that the project has been featured in the report that highlights 15 centres across the world that are likely to gain significance in the next few years. GIFT City is also now a part of the main index of the GFCI, and is ranked 77 in a list of 100 global financial centres.

Being developed as India's first International Financial Service Centre (IFSC), GIFT City is located between Ahmedabad and Gandhinagar. It is intended to provide high-quality infrastructure through the optimum use of resources.

The GIFT City has been visualised as a global IT and a financial services hub equivalent to the quintessential financial centres of La Defense, Shanghai and London Dockyards. Working on the idea of sustainable development, the project is likely to create one million job opportunities.

With high-quality infrastructure and improved connectivity options, GIFT City is expected to revamp the real estate scenario of Ahmedabad and Gandhinagar.

A hotspot for Alternative Investment Funds 

In a move that would accelerate the business in the GIFT City, Alternative Investment Funds (AIFs) could now invest in the IFSC through the Foreign Portfolio Investment (FPI), the Foreign Venture Capital Investor (FVCI) and the Foreign Direct Investment (FDI) route. The Securities and Exchange Board of India (SEBI) on November 27 released the guidelines for AIFs, making the GIFT City a potential destination of investment to launch offshore funds in India. This move will also help generate more jobs in the City.

Large-scale infrastructure development

GIFT City is an initiative to provide high-quality infrastructure consisting of 24x7 water supplies, automated waste collection, underground cable for power distribution, space optimisation and district cooling system.

Large masses demand homes and offices in areas that are capable of meeting their infrastructural needs. Growth in the field of real estate is a function of infrastructural developments in the area and GIFT City has been envisioned to meet global standards in the field of infrastructure.

Seamless connectivity

GIFT City has been envisaged to provide an integrated transportation system, too. It is a transit-oriented development (TOD) where people can walk to work. An urban linkage system consisting of surface roads, bridges, public transport systems and intelligent transport system has also been planned.

Moreover, the project is connected to some of the major cities such as Delhi and Ahmedabad so that its scope of development is even more widened. Bus Rapid Transit System (BRTS) and Metro rail connectivity have also been planned to link GIFT City to Ahmedabad. It is evident that advancements in transport will also lead to the growth of real estate in the neighbouring localities of GIFT City.

Commercial hub

The main focus of GIFT City is on the development of commercial activities. With major areas dedicated for financial services, shopping malls, IT sector and other office spaces, the project is expected to create a lot of job opportunities. The place is likely to be thronged by immigrants from nearby areas which will, in turn, create a sizeable demand for residential projects. Though essential housing facilities like apartments and studios are available within the premises, these facilities are limited. This will also see a rise in the demand for residential projects in the neighbouring areas of GIFT City.

Social facilities

With a vision to develop a 'smart city', GIFT City will be provided with all social facilities including hospitals, educational institutions, communication hubs and recreation centres. With the increase in social and commercial institutions, residential projects will also see a rise in the neighbourhood. Apart from these facilities, the GIFT City will also have a Special Economic Zone (SEZ). These are expected to bring in Foreign Direct Investment (FDI) and create better employment opportunities.

When fully functional, the project would also have an Information and Communication Technology (ICT) system spread across the city. The development of GIFT City is a significant initiative towards taking the real estate market of Gujarat to a higher level of advancement.

"Government land near big projects such as Metro rail, bullet train or GIFT City project would be sold at higher rates from now on," an official was quoted as saying in a DNA report. The valuation would be calculated on the basis of transactions in the last year, size of the land to be sold, connectivity, floor space index and town planning. 

"The recognition of GIFT IFSC in list of most significant emerging financial centres and entry into main index of global financial centres by GFCI is the testimony of the contribution GIFT IFSC is making in the international financial services business," said GIFT City MD &Group CEO Ajay Pandey.

Stamp duty and registration charges in Mumbai remain one of the biggest sources of revenue for the state government of Maharashtra. In fact, the government has been banking on Mumbai's real estate boom to fuel growth and development.

While the city was exempted from the state-wide hike of one per cent in the stamp duty in October 2017, the municipal corporation of Mumbai in November 2017, has passed a bill to levy 1 per cent surcharge on stamp duty for Mumbai property buyers only. The total stamp duty to be borne by the homebuyer in the metro city of Maharashtra has been raised to six per cent and additional Rs 30,000 as registration charges.

In April 2018, the stamp duty for affordable housing projects under Pradhan Mantri Awas Yojana has been capped to Rs 1,000. 

In March 2015, the Maharashtra government decided that stamp duty need not be paid on the transfer of immovable property — land, house or flat — to one's own children or blood relatives. For such transfers, the total stamp duty, including local taxes is Rs 200. "As per Article 34 of the Maharashtra Stamp Act, for Gift Deed of Agricultural or Residential property and is in favour of Husband, Wife, Son, Daughter, Grandson, Granddaughter or Wife of deceased son of property within the limits of the Mumbai Municipal Corporation, the total stamp duty, including local taxes is Rs 200," says the website of the Department of Registration and Stamps, Maharashtra.

Stamp duty on gift deed in Maharashtra

Recently, Maharashtra Cabinet revoked the order to hike stamp duty on gift deeds. The state legislative assembly on August 10 passed an amendment to the Maharashtra Stamp Duty Act to increase the stamp duty on gift deeds to three per cent of the market value of a property. The existing stamp duty stands at Rs 500. Earlier, the cabinet had approved a stamp duty of three per cent on prevailing ready reckoner rates on gift deed transactions where the immovable property is being transferred to blood relatives including children, husband, wife and sister. 

No hike in ready reckoner rates in Mumbai

Maharashtra government has stayed the hike in ready reckoner rates for land in Mumbai. Ready reckoner rate is the market value of a property, determined by the government for stamp duty estimation, directly impacting the real estate project construction as municipalities collect several premiums and charges which are directly proportional to these rates. Moreover, the government has not altered the stamp duty for conveyance deed in Mumbai city but has raised it in rural areas by one per cent.

A gift deed in favour of any other family member, however, attracts stamp duty at the rate of two per cent of the transaction value. Similarly, five per cent of the transaction value is charged as stamp duty if a gift deed is signed in favour of someone outside of the family.

How much stamp duty and registration charges you need to pay in Maharashtra?

To put it in a nutshell, for residential property transactions done until December 31, 2014, the registration charges were Rs 25,000. From January 1, 2015, onwards, this has gone up to Rs 30,000. The stamp duty is charged at a standard five per cent across Maharashtra and additional 1 per cent as surcharge for Mumbai property buyers. 

Stamp duty on conveyance deeds

On August 10, the assembly also approved an increase of one per cent to the stamp duty on conveyance deeds in rural and peri-urban areas.

Moreover, the stamp duty on conveyance deeds in gram panchayat areas is now set at four per cent of the land value in the amendment, up from the current three per cent. The stamp duty in peri-urban areas governed by municipal councils was also increased to five per cent from four per cent.

How to calculate stamp duty and registration charges on your property?

The purchaser has to enter into an agreement with the seller of the flat and the stamp duty is computed as per the agreement value. The agreement value should not be less than the ready reckoner rate, or the guideline value as fixed by the government. In certain cases, the agreement value can be the market value, but whichever is higher is taken for stamp duty computation. Once the stamp duty amount is computed, the purchaser has to take a pay order in favour of the Stamps and Registration Department. Finally, the parties have to be duly present and sign the agreement before the registrar for completing the property transaction.

Suppose you buy a 200 sq m flat near Dr Homi Bhabha Road in Colaba, where the Ready Reckoner rate for residential property is Rs 264,200 per sq m. Assuming the property's agreement value is the same as the Ready Reckoner Rate in the locality, your property price calculation will be as follows:  

Recently, the department of registration and stamps in Maharashtra has announced that cashless payment options for property registration in the state will be launched after Diwali. According to media reports, the department is testing the new payment platform. The department will set up point of sales machines that will be integrated with a central software for payment of document handling charges. Once launched homebuyers will be able to use the Government Receipt Accounting System (GRAS) to make online payment for registering the documents but they had to visit the office physically to pay in cash the handling charges of Rs 20 per page.

Moshi, a Pune suburb boasting of industrial development, is now witnessing a rising demand for the residential real estate. Falling under the jurisdiction of the Pune Metropolitan Regional Development Authority (PMRDA), Moshi was earlier known to be facing various infrastructure challenges which are now being rectified to make the locality more and more livable. The rising employment opportunities and demand for residential properties in the semi-urban region of Moshi have helped the locality develop at a fast pace. Starting from the construction of International Exhibition and Convention Centre which is being developed in phases by the Pimpri Chinchwad New Township Development Authority to boost economic development, the area would attract more investment from foreign companies for better infrastructure.

For those planning to invest in this upcoming affordable residential Pune suburb, you have a plenty of reasons to make your move now.

Enhanced connectivity

To make commuting to this suburb easy, many infrastructural developments are in the works. From widening of the 12-km road between Nashik Phata and Indrayani River, to the planned Metro network passing through Moshi are expected to make the suburb connected to some of the key localities across Pune. The proposed Metro route that will pass through Moshi will connect the locality to the upcoming Pune international airport proposed in Rajgurunagar near Chakan.

Town planning at its best

Moshi is known for the industrial development that has taken place in the locality in past few years. According to media reports, the locality is being developed on the lines of Chandigarh, a city known for its town planning. Wide roads, industries with job opportunities, coming of affordable homes and one of Asia’s largest convention centres, together fulfill the needs of the dwellers.

Ample investment options

According to data available with PropTiger.com, there are over 170 projects in Moshi, out of which 73 projects are ready to move. Over 70 projects are under construction and 16 projects are new launches. Some of the well-known builders in the area are Pristine, Mantra Properties, Rama Melange Residences, etc. Most of the projects here are available in the affordable housing category and the amenities are restricted to car parking, kids' play area, garden and security assistance.

Consistently rising property prices

The property price movement in the area is consistent. A 1BHK is available for an average price of Rs 22.23 lakh while a 2BHK is available for Rs 32.24 lakh, a 3BHK is available for Rs 53.35 lakh and a 4BHK is priced at Rs 1.74 crore. The property prices in Moshi at the end of September 2018 stood at Rs 4,007 per square foot (sqf), up from Rs 3,995 per sqf in January 2018.

Also Read: 5 Upcoming Pune Localities For Buying 1BHK Apartments

A plan is underway in Karnataka to regularise over one lakh B-Khata properties within corporation limits. Soon, owners of B-Khata properties in the state can obtain an A-Khata by paying an improvement and conversion charges.

Understanding A and B Khata

Khata/Register is a document that records the property tax payments made by you to the municipality. Initially, there was only a single Khata (record) document that stored the details of your property tax payments. It was governed by the Bangalore Mahanagara Palike (BMP). But in 2007, the ambit of BMC was expanded to include the municipal councils of Mahadevapura, Byatarayanapura, Bommanahalli, Dasarahalli, Krishnarajapuram, Raja Rajeshwari Nagar, Yelahanka, Town Municipal Council (TMC) of Kengeri and some 110 villages. The civic body was then renamed to be Bruhut Bangalore Mahanagara Palike (BBMP).

Following this expansion and formation of BBMP, properties which didn't have necessary approvals have issued an acknowledgment of property tax payment which came to be known as the 'B' Khata. You can say that the BBMP used this classification of ‘A’ Khata and ‘B’ Khata to bring about a more efficient tax collection process. Therefore, ‘A’ Khata properties were those that were legal in every way. They had paid their taxes and cleared all dues and were eligible for loans on property, trade and building licenses, etc. B-Khata are semi-legal or illegal constructions built upon unauthorised layouts or without occupation or completion certificates or having violated one or the other construction rules. In short, a Khata may just be a certificate but all your property related decisions are impacted greatly by this one factor.

Not the first time

Thousands of properties in the state moved to the B-Khata list ever since 2008 and this is not the first time that an attempt to regularise these properties is being tried out. Previously, such property owners in the state could BBMP Revenue Officer’s office or concerned authority’s office with the sale deed, encumbrance certificate, tax receipts, occupancy and completion certificates, betterment charges receipt, the plan documents and old khata certificate and apply for a khata transfer. While many succeeded, many failed as well.

In January this year, the state government informed the High Court that BBMP was taking steps to make the khata transfer as seamless and transparent as possible. This would include a uniform policy on applications for khata entries that would be maintained under BBMP Property Tax Rules, 2009. The possibility of inviting online applications was also being looked into.

Earlier, the BBMP had said that B-Khata properties could be regularised under the Akrama-Sakrama scheme. However, with this scheme being heard in the Supreme Court, the BBMP Commissioner, N Manjunath Prasad has clarified that B Khata can be delinked from Akrama-Sakrama.

Now that the B-Khata is set to be regularised, necessary changes and amendments need to be done in the Karnataka Land Revenue Act 1964.

How will the regularisation help you?

So far, you would have been unable to take bank loans, or even an occupancy certificate or a building plan approval. If you regularise, you would be able to do all this. Even re-selling your property will become far easier than before.

Over 3 lakh properties have already been given A-Khata but so far building plans and Occupancy certificates have not been issued.

The proposal to regularise now needs to be forwarded to the Cabinet. Once passed, the civic body expects to garner minimum Rs 1,000 crore and put it to build civic amenities. The BBMP says that these layouts are already equipped with basic amenities such as roads, drainage and sewerage, sanitation etc. Now, the necessary fees need to be collected. Overall, out of three lakh illegal properties in Bengaluru, one lakh are registered as B-Khata and stand a chance to be the beneficiaries of this new proposal.

Exceptions

Note that BBMP will not regularise those layouts wherein the building bylaws have been violated and have failed to procure even a B-Khata. Such cases will need to look forward to Akrama-Sakrama scheme, the BBMP Chief has clarified.

Monsoons could mean discomfort but it is also a good time to look around for a locality and a property fit for you. Wondering how this could be possible? Could monsoons be a good time to invest?

Ashok Mohanani, chairman, EKTA World and vice president, NAREDCO West says, “Rather than avoiding this opportunity, a potential homebuyer should use it as an analysis to witness the pros and cons like location, construction quality, etc.”

What can you guage? Mohanani explains:

Check for amenities and quality of infrastructure

During monsoons, the roads are full of traffic and water logging. This could indicate the commute and access to the area. A potential homebuyer must visit the site several times before taking the final decision. Monsoons is a suitable time to check the condition of the building and the adjacent area around it. Also find out how frequent is public transportation and how much time would it take to commute to a bus depot or a railway station if you are dependent on it.

Time to gauge the quality of construction

Issues like seepage near washrooms and on the ceilings, leakages, quality of plumbing and drainage, water logging, traffic in the neighborhood are very common during monsoons, and this period will be the best time for a quality check. Especially if you are looking at a resale or ready to move property, it is a good time to check.

a)Where flaws in the project become obvious during the rainy season, buyers can negotiate and also ask the developer to repair the same.

b)Low lying areas are prone to flooding, leading to traffic jams and transportation distress. This problem can be best judged in the monsoon season.

c)Potential buyers can estimate whether the property has problems pertaining to seepage, leakage from the terrace, drainage issues leading to stagnation of dirty water, etc.

d)For a resale home, a concluding examination in this season can disclose construction quality and how the property has been maintained.

More sellers await you

Monsoons dry up the list of potential buyers and builders are under constant pressure to sell their inventory so this period is best to negotiate with them. Developers are more flexible when it comes to payments and negotiations; they are also open to giving freebies, services and discounts which a buyer may not get otherwise.

Raining discounts

It is an ideal time for discounts and negotiations. Monsoon season is the time where builders lower their prices for serious buyers. Also on account of the festival season that falls during September-October, developers offer special discounts to create a buzz in the market and increase their sales.

Consider these cases:

A. Three years after buying a home, Mr A realised that the rate of interest he is paying on his loan may be more than other banks were offering. This made him feel how naive he was at the time of buying the property. Feeling cheated, Mr A decided to go for refinancing of his loan.

B. Five years after taking a home loan for a 30-year tenure, Mr B thought the time-frame is too long. With a view to reduce it to 20, Mr B approached his bank to shift to another plan.

C. After getting a big promotion and a good salary raise, Mr C decided to increase the EMI (equated monthly installment) amount of his home loan to get rid of the burden as soon as possible. He decided to refinance his loan to increase the monthly EMI amount.

Now, these case studies tell us about the three factors ---- the interest rate of a loan, the tenure of a loan and the amount of a loan ---- affect a buyer's refinancing decision. In many scenario, shifting your home loan from one bank to another or going for a re-financing with better terms within your bank may be a good option. However, before you do so, consider these points:

Why refinancing home loan can be a good idea

Refinancing home loan can be beneficial if the new bank is offering attractive rate of interest that can bring down the total cost of loan. Applicants can switch loans to shift their debt to prevailing market rate rather than paying high interest rate. Also, if you are willing to move from floating to fixed rate of interest or vica versa, getting it refinanced can be a good idea. Your monthly EMI burden can come down, giving you significant cost savings. Applicants can also apply for top-up loan when switching lenders if the rate of interest is attractive. However, enquire about the top-up loan plan from the existing lender as well. 

Why refinancing home loan can be a bad idea

• All over again

The bank that you approach for refinancing will treat you like a new customer, despite the paper work and other formalities that you have done for the former loan. Apart from that, the new bank will also charge a loan-processing fees, as in case of a new loan. This is generally a percentage of the loan itself. In case you want to switch from one plan to another within a bank or a finance company, you will have to pay a fee.

• Those extra bucks

Before a bank agrees to refinance your loan, it will most likely do a survey to decide the price appreciation/depreciation of the property. The cost of the survey goes from the buyer's pocket.

• Fixing it alright

Remember this: on a fixed rate, the interest on you home loan remains constant throughout the loan period, irrespective of the changes in market conditions, while in a floating one, the interest can decrease or increase depending on market fluctuations.

So, while it may look like a very attractive deal when you go for a new loan on low floating rates, things may change in future. If the interest rate cycle changes soon after you shift the loan, you may end up paying more. It is advisable you shift your loan only if you are getting a good discount on a fixed rate of interest.

• Pre-pay if possible

There are only marginal gains in shifting loans, if the principle amount remains unchanged. It would be better for a buyer to use savings to reduce the loan amount before refinancing a loan. This way, while the EMI amount would be lower easing your monthly burden (after the shift), the loan amount would go down, too, cutting the interest costs. The loan-prepayment process is also smoother while shifting banks.

• Keep your eyes & ears open

These days, ones sees banks coming up with loan discount programmes and such offers quite often. Even as you keep the research and re-finance options ready, keep checking about the interest rates around banks. Wait for the discount schemes that banks might launch soon after the government makes certain announcements about the banking or real estate sector. These schemes may help you strike a good deal.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities.)

With the passage of Real Estate (Regulation & Development) Act, 2016, the troubles for home buyers are expected to get over soon. High penalties and mandatory registration are few clauses added in the law to save buyers from frauds and possession delays. The inclusion of compulsory insurance against land title is another step in this direction that will give extra cushion to the home buyers as well as to developers.

PropGuide takes you through title insurance and its proceedings-

What is Title Insurance?

Title insurance protects the policyholder/potential owner of a property against possible financial loss caused due to defects in property title, disputes or frauds. It was last year when Insurance Regulatory and Development Authority of India constituted a seven-member committee to study the scope of such policies in the Indian market. The policy is designed in a way to safeguard financial interest of real estate owners, investors, lenders against property issues. Real Estate Law specifically talks about the importance of project insurance to safeguard stakeholders' interest in the case of land-related dispute.

What does Title Insurance cover?

Since the concept of title insurance is new, the product has been designed keeping in mind Indian market conditions where some states lack digitised records. Keeping in mind such situations, here are some of its provisions:

-          Defect in, or lien on the title at the date of cover including but not limited to, indemnification of loss from a defect in the title caused by-

• Forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation
• Failure of any person or entity to have authorised a transfer of conveyance
• Document affecting title, not property created, executed, witnessed, sealed, stamped, acknowledged, notarized or delivered
• Documents affecting title executed under a falsified, expired or otherwise invalid power of attorney.

Defence costs: If the property title is challenged in court through litigation, the entire proceedings will be covered by the insurance.

Out-of-court settlement: Expenses incurred during out of court settlements with other party is also covered under insurance. This also includes compensation to be made to the parties involved. However, the petitioners should not be the co-owner, co-borrower for the property.

How is Title Insurance useful for home buyers?

Title insurance will be taken up by the developer at the time of project registration. The premium is paid by the developer until the construction is completed. The policy is transferred to the Apartment Association along with power of attorney and other documents. Henceforth, the insurance should be renewed each year by the registered authority of the project.  

Service providers in India

Since the concept of Title insurance is comparably new and belongs to European and American markets where the land records are already systematically fed, service providers will be facing a challenging situation in India where land details are either completely manual or partially digital in select states. Therefore the cost and time involvement will be more, which will be borne by the insurer. Currently, Bajaj Allianz and ICICI Lombard are in talks with First American Title Insurance Company to offer reinsurance support. Marsh is another global service provider offering title insurance in collaboration with National Insurance Company Ltd and New India Assurance Ltd.  

Also Read: What Home Insurance Companies Offer To Homeowners