Invest In India » Real Estate

How to Find the Best Building Constructor?

Malvika — Mon, 12 Apr 2010 13:43:18 +0000

For years you have been planning to build a house, but it has been eluding you all these years, because of one or the other difficulties. Now, everything has fallen into place, and you are ready. Finding the best builder is the next step. Following are some guidelines to select one.

From your friends and colleagues you will get the names of many builders. Choose the person, who is well known to most. At the same time, do thorough inquiry about the person’s previous works; number of projects he or she has completed, has he/she completed those works in time, was the customers happy with the work etc.

If possible go and see the prior works of the person and make sure if the style of his works suit you. Make it a point to meet one or two of his former clients and see if they had any difficulty (any kind) in dealing with him. Check if he has got approval for the plan from the municipal corporation.

It is better to build a home in the municipal limits so that you can avail of the city corporation water. Ensure that the builder has got sanction for the plan from the municipal corporation. He should also secure a Completion Certificate and Occupancy Certificate from the Municipal Corporation.

The title should be transferred to your name on completion. Ensure that, in the corporation records you are the rightful owner of the house. Also take care to charge the water bill, electricity bill and corporation tax to your name.

Normally a good constructor will not insist on cash payments. He should break up the payments into easy installments. He should be willing to accept cheques.

Does anyone have any complaints against him, has to be checked. Has he unreasonably delayed any works? Is he okay financially? These things should also be investigated and found satisfactory, before entrusting him/her with your dream work.

Some Common Mistakes Made While Investing in Real Estate

Malvika — Mon, 23 Nov 2009 04:17:39 +0000

Why is the Real Estate market so lucrative for the investors? The answer is quiet simple, because it has all the capability of doubling or even tripling up the invested amount of money in a short span of time. Like any other investment there are a few mistakes that people commonly make, while they invest in the Real Estates.

Think before you act

One most common mistake that normally people make is that they do not think before they invest. It’s really important that while investing in real estate you should think it over a few times especially about your budget, the amount of returns expected, the locality that you choose to invest in, its future prospects etc.

Keep impulse away

While investing in real estate, you should totally stay away from impulsive decisions. Its very common that people take loans to invest in real estate and what they plan is that they would make up for the same through the gains that they would be making out of the property but at times the whole game turns upside down due to some unforeseen circumstances. Therefore it’s important that you should consider your budget and finances properly before you have really signed the deal.

Market Research to be done

Before you fix up the property to be invested in, ensure that you have done some god amount of market research about the property. Take out time to confirm the actual price of the property from different brokers etc, take multiple opinions about the future prospects of the property as that would help you gage the actual prospects of the property.

Be flexible

Investing in real estate does not involve any hard and fast fixed rules and there could be situations where in you would have to deviate from your original plan. For example in case you had original plans to sell off the property in 2 years time and then you are not able to find a good enough buyer for the property then you ought to consider renting out the property as soon as possible, may be for sometime, or for the next couple of years. That would definitely decrease your burden of having to pay large amounts as installments for the property and might earn you some amount of equity for the property too.

These are only some of the suggestions that would keep you safe while you have invested in a property, or if you plan to do the same. There are another thousand things that you ought to take into consideration if you plan to invest in real estate, which of course we would discuss some other day.

©2009 Copyright by Invest In India

Tips to apply for an NRI home Loan

Tushar Mathur — Mon, 09 Jun 2008 12:53:43 +0000

Buying a house or property in India is relatively simple for an NRI /PIO. Any Indian who has been living abroad for employment, conducting business or pursuing a vocation is eligible for a NRI Housing loan! Personnel deputed abroad on short term or long term assignments with foreign governments or international agencies are also eligible for these loans.

Housing loans are offered to NRIs by leading financial institutions and commercial banks in India like Citibank, ABN AMRO, and SBI, to name just a few.

As an NRI you can opt for the government supported ‘Griha Shobha’ scheme as well. Remember that an NRI can avail of a loan of up to Rs.1 crore or an amount of up to 85% of the cost of the property. The rate of interest varies from 11.25% to 14.25% per annum (rates subject to change). Almost all banks and financial institutions charge a processing fee, which is payable once and will amount to approximately 1% to 2% of the loan amount applied for.

The eligibility of the amount of loan disbursed will depend upon the individual’s repayment capacity. The calculation of repayment capacity is made based on factors such as monthly and annual income, source of income, savings and credit history, work experience, age, qualifications, number of dependents, other sources of income including spouse’s income, and assets and liabilities. Further, the probability of the individual continuing in the same occupation or his /her interest in alternate employment prospects when he/she comes back to India is assessed.

The typical duration for repayment of the loan is three to ten years. The repayments are usually made in Equated Monthly Installments (EMIs), which are a combination of the principal and interest amounts. EMIs get deducted from the month following the month in which the loan gets disbursed and can be made through post-dated checks from the NRE/NRNR account held by the NRI in India. The list of documents needed to process this application is a long one.

Property and related documents:

* All receipts for payments made by individual towards purchasing the house
* Copies of approved drawings of the property, including extensions
* Copies of Agreement for Sale and sale deed
* Document containing detailed cost estimates from the architect/engineer for the house
* Allotment letter issued by the association of apartment owners

Employment and related documents:

* Copy of the work permit
* Copies of the Visa stamped on the passport
* Copy of the existing/current employment contract
* Latest wage slip/ salary certificate or statement
* Copy of the Identity card issued by current employers
* Overseas bank account statement (four months)
* Copy of the Continuous Discharge Certificate (if applicable)

Have you applied for a Home Loan in India yet? Have you encountered any problems or has it been a breeze? Share your experiences with other NRIs through this forum.

Image Source: Courtesy of http://www.ingvysyabank.com

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Penthouses are catching up big time in India

Tushar Mathur — Tue, 06 May 2008 18:51:50 +0000

A penthouse apartment is nothing but an apartment that comes with a private terrace of its own. It is generally built on the topmost floors of high-rise buildings. Since multi-storey apartments are the ‘in thing’ these days, the concept of penthouses has caught on too! Who would not want a personal open-to-the-sky terrace of their own? It translates into extra space, party areas, a play area for children, ideal location for gardening and a lot more! Penthouses generally have additional facilities like central air-conditioning, 24-hour security, etc. Swimming pools and clubhouses are also a part of several projects to enhance the luxury experience of living in the community! A penthouse experience is very heart filling, especially for NRIs, who can now look forward to a lifestyle they are used to in the West!
The concept of penthouses is catching up big time in India – they are the epitome of luxury for India’s upper middle class society! The trend is simple to follow – if you can afford something more than a traditional apartment but less than a bungalow of your own, a penthouse is the ideal solution for your housing needs.

How much do they cost?
A penthouse is meant for lavish lifestyles and thus they cost much more than an ordinary apartment. Also, one building structure cannot generally have more than two penthouses. Hence, they are available in smaller numbers than other apartments. The cost of a penthouse would also depend upon the city, the neighborhood within the city, square foot area of the apartment, etc. It would be easier to keep in mind that a penthouse would cost more than an ordinary apartment in the same building.
Penthouses are in demand in metropolitan cities such as Delhi, Chennai, Bangalore and Pune. To give you a fair idea of the prices, the Mahagun Maestro penthouse scheme in Noida is priced at approximately 0.4 million dollars for a 2,525 square foot super area with a 950 square foot terrace. Penthouse properties in Pune are also selling well. Towards the outskirts of the city in Mohamedwadi, the rate is around $40 per square foot. Naturally, in the heart of the city, the prices will be higher. In cities like Delhi and Mumbai, a penthouse property would generally be priced at several crores.

Do you like the concept of a penthouse? Would you like to live in one? What are the advantages of living in a penthouse as compared to an ordinary apartment?

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Defaulting on your home loan payment

Tushar Mathur — Thu, 27 Mar 2008 06:48:14 +0000

Failed to comply with the terms of your home loan? Find yourself in default now? Worried that you’ll lose all that you have? Read on and find out what the consequences of defaults on your home loan are and how you can avoid defaults on your home loan altogether.

Taken out a loan against your primary home to pay for your holiday home? Are you now in a situation where you can no longer afford your monthly loan repayments because you lost your job or were faced with other unforeseen circumstances? Afraid you may default on your home loan? Read on.

Most financial institutions, including leading banks, have processes in place to resolve issues of defaults on home loans. Most will urge you to restructure the financial agreement to facilitate full repayment of your home loan. There are also a number of companies engaged in collecting dues. These companies operate nationally and are paid in proportion to the money that they recover for the bank they work for. Banks also employ collection agencies and law firms to deal with home loan defaulters. However, banks and financial institutions always ensure that customers aren’t at the end of rough activities just because they’ve defaulted.

How to avoid default:

*      Seek help as early as possible when you realize that it’s getting increasingly difficult to keep up with your monthly repayments.

*      Lower your monthly payments by changing your repayment plan.

*      Try and make loan repayments on time.

*      Develop and maintain a monthly budget based on your income and expenditure.

Consequences of default:

Defaults on your home loan can have long-lasting disastrous effects. You can end up losing your home if you don’t deal with your default soon as well as eligibility to avail loans in the future. And don’t forget that the cost of your loan increases with passing time and addition of late fees.

Have you ever defaulted on your home loan payment? How did you cope? Do you have any tips or suggestions to offer?

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Looking to buy cheap property in India ?

Tushar Mathur — Fri, 07 Mar 2008 06:03:33 +0000

Property prices have gone through the roof in the last few years. It is becoming increasingly difficult to afford a home, especially in the cities of India. Do low cost homes exist in today’s times? How can one find them?

Finding a home that fits into your modest budget may look like a dream, but it may not be impossible. Here are a few options worth looking at:

City outskirts

Most people wish to live within the city limits, so as to be closer to their place of work or school. Another reason is that day-to-day living and chores like grocery shopping and banking become easier with facilities close at hand. If you are willing to increase your commute time, a home on the outskirts of the city will cost you much less than one situated within it. Not only are prices outside the city limits lower, but these properties also appreciate in value, and are good capital investments.

Second hand purchases

A second-hand home will probably be cheaper than a flat in a new housing complex in the same neighborhood.

Early birds

If you are looking for a brand new apartment and can wait to take possession of your home, it would be a good idea to purchase the apartment before the project begins or is in its initial phase. The cost of homes is lower at this stage. Finding a reliable property developer is essential here.

Seller’s angle

If the current owner of the property is in immediate need of funds or otherwise has to dispose of the property urgently, you may be able to strike a better bargain with the seller. If the seller is in a hurry to sell the home, s/he may settle for an amount below the quoted price.

Refurbishing the home

You could begin with a property that would need repairs on purchase. A property that has been damaged or is not well kept sells for lower prices. However it is important to factor in the additional cost that you would have to incur immediately after purchase. If the overall deal works out cheaper than the cost of a similar property in good condition, it would be a good buy.

Build your own home

Acquiring a plot of land and building your own home is another option. This project also gives you flexibility on your finances. You could start with building the basic structure and add new dimensions when you have surplus funds. Of course this is a more tedious process than buying a ready-made home.

Owning a home is a dream shared by nearly everyone. Many people sink their life’s savings into purchasing a place of their own. Is this because of practical considerations, or do emotions come into play where a home is concerned? Does it make better financial sense to rent a place to live in, or to possess a property that you can ill afford?

©2009 Copyright by Invest In India

Indian Real Estate: A 5 year Outlook

Tushar Mathur — Sun, 20 Jan 2008 06:54:31 +0000

What is the easiest way to double your money in a short time frame? Do you know where your money should be invested? Is it real estate? Which properties will fetch you the highest appreciation? Which are the high growth areas in India? If you’re considering investing in real estate, read on.Investing in the real estate in India seems like a wise move right now. Property prices in the Tier I cities of Bangalore, Mumbai, and Delhi are at a peak. Not only are the property prices humongous, the space crunch is inevitable, which makes it very difficult to find new property developments at reasonable prices in the heart of the cities.

Tier II and III cities like Pune, Hyderabad, Gurgaon, Chandigarh, Chennai, and Kolkata are the new hot-spots of real estate activity with the IT companies turning to these areas in a big way. Also, the outskirts of cities are the development points now for large residential and commercial projects. Close proximity to the cities and the availability of large plots of land for developing luxurious lifestyle homes, shopping malls, or state-of-the art work places are the primary reasons behind this phenomenon. You may get maximum appreciation for your investment in these areas.

The population of the Indian urban lands is projected to increase by more than 40% by 2010, thus putting an additional pressure on housing properties in these cities. The residential real estate sector is also estimated to receive large investments from the NRI sector, thus increasing the growth prospects as well.

Have you thought of commercial or retail real estate? It is estimated that an additional 200 million square feet of office space will be required in the upcoming years. This spells the continuation of real estate boom in commercial properties. The commercial real estate has seen a growth of around 30% annually and is expected to keep up the pace in the next 5 years. More than 500 shopping complexes are estimated to come up by 2008. If you are looking at commercial properties, you may also like to look at the Special Economic Zones (SEZs) as investment opportunities. High capital appreciation and a healthy rental income along with tax benefits – SEZs promise it all!

©2009 Copyright by Invest In India

Documents required for buying a Home in India

Tushar Mathur — Wed, 16 Jan 2008 06:39:21 +0000

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For all you NRIs that are looking to buy a home or a flat in a fancy apartment complex or any other type of real estate in India, here are the documents that you would need.

Identity

You can establish your identity through copies of passports, birth/school leaving certificates, driver’s license or organizational identity/labor cards. You may have to provide a certificate of your educational qualifications too.

Proof of residence

Copies of a valid resident visa stamped on your passport, utility bills or insurance premium receipts can provide proof of residence. You will need your employer to certify your designation, length of employment, passport number and salary slip, along with a copy of your latest work permit. You will also need three years’ tax returns and copies of bank statements for the past four months.

Self employed

If self employed, you have to provide a brief introduction to your business or profession and copies of trade licenses/certificate of incorporation, copies of balance sheets, profit and loss statements for the past three years and details of current and savings accounts for the past six months.

Proposed buy

The details of your proposed buy are required. These are the builder’s allotment letter, cash receipts, construction plans, cost, approved drawing and agreement of sale/sale deed.

Have the deed inspected thoroughly to prevent fraud. Take out homeowner’s insurance in advance. In addition, a lender’s coverage insurance may be required. Get a completion certificate from the seller as it tells you that your home conforms to local laws.

Additionally, details of assets and liabilities are required from all applicants. Finally, you may need to show your PIO card, Power of Attorney to a local representative, guarantor forms along with net worth and Continuous Discharge certificate.

The paper is as important as the home itself! Don’t let this get you down; the thing to remember is that when the home is finally yours, it will have been worth the effort.

Finding the right home is exciting. Though the process of buying a home can cause heartache, it is most important that you get the paperwork right.

©2009 Copyright by Invest In India

How to use Vaastu for your home ?

Tushar Mathur — Mon, 14 Jan 2008 01:10:01 +0000

What is the secret to a happy home? Can Vaastushastra help you resolve your problems? Can you introduce Vaastushastra in your home? Let’s find out!

Vaastushastra promotes harmonious living with one’s surroundings. The objective of Vaastushastra is to establish a positive atmosphere in your home. However, Vaastushastra is not magic and the solution to all your worries. And, contrary to popular belief, it has nothing to do with religion! You don’t have to be a Hindu to follow the principles of Vaastushastra! According to this “shastra” (science), everything in the home has its ideal place based on the direction of sunlight and the energy of the five elements of nature. Using these principles you can design your home in a manner such that each unit in your house is in its right place.

Every principle in Vaastushastra has reasoning behind it. Understand the principles applied and the reasons for the changes you make to your home.

Simple modifications in your home and in your lifestyle could bring you the benefits of Vaastushastra.

* Let your bed face the direction of the sun in the morning, as the morning rays are believed to be good for you.

* Align your cooking range in the southeast such that you face the east while cooking. Southeast is the fire angle or a place where the God of fire resides.

* Avoid bunk beds as they restrict free movement of air, especially for the child sleeping in the lower bunk. Air flow is an important aspect of Vaastu and proper ventilation is a must.

* Arrange your beds so that you sleep with your head facing east or south. Your bed should not touch the north or eastern wall of your room. According to Vaastushastra, this helps a person sleep well.

They say that it is best if you can keep Vaastu principles in mind when buying the land where you will build your home. If this is not possible, you could make little changes in your existing home and see if it works for you.

I personally don’t believe in Vaastu or Feng Shui etc. If you do, please share your experiences with us.

©2009 Copyright by Invest In India