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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?

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Your Remittance: Very Critical!

Tushar Mathur — Sun, 17 Feb 2008 06:21:37 +0000

NRI remittances may mean valuable foreign exchange for India, but for many households, it is a means of making two ends meet. Whether it’s a semi-skilled laborer in the Gulf or a software professional in Silicon Valley, every other NRI sends a part of his or her earning back home.

India leads in inward remittances

According to the World Bank’s data, India was leading China and Mexico at number one amongst countries receiving maximum remittances in 2006. In the same year, the remittances were more than three times India’s foreign direct investment. In a state-wise analysis of immigrants remitting money, Kerala and Tamil Nadu were the forerunners with almost 50% of the total immigrants belonging to these states, closely followed by Karnataka, Gujarat, Andhra Pradesh, Maharashtra and Punjab. As per the Reserve Bank of India’s Balance of Payment information, NRI remittances touched $8.6 billion in the first quarter of 2007-08 as compared to $5.9 billion for the same period in 2006-07. So should India produce more NRIs?

What are remittances used for?

According to a survey conducted by RBI, almost 13% of NRI remittances in 2006 were invested in equity and real estate. With the stock market swinging upward and a real estate boom across India, this statistic comes as no surprise. With private sector banks offering numerous NRI-friendly products, 20% of the remittances found their way into bank deposits. The major chunk of the remittances, a significant 54%, were used up for meeting family related expenses. Are these remittances veiling sacrifices by NRI families?

Families in India – usually comprising aged parents, dependent siblings, spouses and children — use the remittances to cover monthly expenses. These remittances provide immense financial security to the dependents. Regular remittances mean better education for children or siblings and good health care for aged parents. NRIs also remit funds to help ease the burden of major expenses related to marriage, higher education, or investment in property. In some instances, NRIs’ remittances also serve as start-up capital for acquaintances’ small but feasible enterprises. Wanting family members to live a better life, NRIs often fund everything ranging from expensive home appliances and automobiles to house repairs and surgeries.

Is it a feeling of indebtedness or genuine concern that makes each NRI remit part of their earnings back home? Though some families sustain themselves and others flourish because of these remittances, does money fully make up for the NRIs’ absence?

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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.

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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.

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