Tips for NRIs to buy a new home in India

When it comes to investment avenues, NRIs are considered to be opportunists. Real estate industry is one of the profitable sectors which they mostly focus on as it offers attractive returns and there is no dearth of investment options. In terms of loan applications, NRIs find it easy to get home loans as financial institutions in most cases do not face any troubles when it comes to repayment.
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Below are two norms laid down by the Reserve Bank of India for NRIs looking forward to buying any property:

1. A financial institution approves around 80% of loan amount, while the remaining amount is borne by the NRI.
2. The NRI is required to make down payment, repay principal amount and interest from his/her Non-resident External (NRE) or Non-resident Ordinary (NRO) account in India
Income & education eligibility:

Your income and educational qualification plays an important role in determining how much amount of loan will be offered to you. You need to be at least a graduate and your income eligibility is calculated taking into account the repatriable income (income abroad) plus income in India.

Tenure of loans:

Loan tenure for NRIs is limited that is within the range of 5-15 years. However, if you wish to extend the loan repayment term then it is depends on the rules of banks, but it may be extended only is some cases.

Taxation:

Just like a resident of India is required to shell our registration and stamp duty money, similarly the rule is applicable for NRIs as well. He is entitled to avail all sorts of benefits at par with Indian residents on the interest paid for the home loan. However, the tax process becomes full of twists if the property is leased.

Document submission:

To submit documents for home loan, NRIs do not need to make their trips to India. Some banks do offer online facility for document submission. However, you would require help of a General Power of Attorney in favor of a resident Indian who would act on your behalf with the bank.

Authentication:

To authenticate a property, NRIs are required to verify property through proper mediums. You can either consult your friend or a real estate agent.

If you’re an NRI looking to buy a new home in Navi Mumbai, then get in touch with us. We are the leading property consultants in Navi Mumbai.

Frequent home buying mistakes & how to avoid them

With the real estate prices in Navi Mumbai & all over Mumbai becoming affordable post the roll-out of GST and RERA, it may urge several people to buy their dream home now. Buying a new home is a major decision, especially for first time prospects where they may make a blunder.

But don’t you want to avoid such kind of errors typically when it comes to home buying? After all, it’s your hard-earned money and you should be in charge of it. Here are a few tips to help you take back control over your home buying mistakes & how to avoid them:
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Organizing your finance:

When you’re ready to walk into a dealership, the next prep-work you need to focus is organizing your finances. You can also negotiate with an agent to get the best price for your home in Navi Mumbai. Once you have fragmented your finance, it will help to use the spare budget for clearing down payment, taxable amount and other hidden costs associated with your dream home. Turning a blind eye to additional costs is a common error which buyers make.

Real estate policies:

It is no doubt that RERA and GST are redefining the regulatory reforms of real estate in India, which has influenced the current prices of affordable properties, under construction, ready-to-move-in houses. Hence, it is a mandate for home buyers in Navi Mumbai to stay updated regarding real estate policies and how they are affecting the mortgage rates for different states.

Keep account of transactions & written proof:

Whether you’re purchasing a home for the first time or investing for a future purpose, it is good to collect a written proof of the purchase contract. In fact, it is advisable to keep account of even smallest of transactions & every vital paper work. This will save you from fraudulent activities. Make sure your agreement mentions registration, property completion date, as well as conditions in case of delay. Do a detailed paperwork study by consulting a lawyer in case you’re less knowledgeable about legal formalities.

Detailed research:

A careful and persistent effort is the key if you’re looking for a new home in Navi Mumbai. When searching for dealers, negotiate in such a way to grab the best deals. Research thoroughly on location, construction company, real estate agent, insurance and other vital things. Once you have decided to invest in a home, it is necessary that you know about the future prospects of the surroundings, and what are the upcoming developments. Seek recommendations from your friend for a professional inspection of your neighbouring area. It is a mistake if you are unaware of profits you can gain from the developments that may happen in the near future.

It is important that you have a complete control over mistakes. You can ensure to be extra cautious by following some of the steps outlined above. To get the best deals, visit Akshay Argade which is the leading real estate company in Navi Mumbai.

GST: Is it a positive sign for developers and home buyers?

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2017 has been revolutionary for the real estate industry as there have been several regulatory changes and practices that have been implemented with the only purpose of making it an organized sector. First, it was the roll out of the Real Estate Regulatory Act (RERA), now another development that has taken place is the recent introduction of the Goods and Services Tax (GST).

GST has increased the total incidence of tax from 5.5% to 18%. Earlier, an individual had to pay different taxes, however; the scenario now has changed. The tax regime will subsume taxes like  excise tax, service and value added tax, octroi or the local body taxes. A unified tax will now be applicable on all goods and services which is segregated into three tax slabs consisting of:

CGST, SGST and IGST

The Council responsible for the new tax regime has decided four-tier tax structure for the the real estate industry – 5, 12, 18 and 28%.

How will GST will help real estate developers?

According to a few real estate developers and builders, the implementation of GST and RERA will increase the prices in the state by 5% to 6%. Developers will have to pay goods and services tax on the below list of things:

  • Services provided by goods transporters
  • Services provided by government or local authorities
  • Construction materials

Under the new regime, the construction materials will come under the 18% and 28% tax slab. According to a report released by CRISIL, the cement will be taxed at 28%, while steel will be taxed at 18%. Other inputs like paint and white goods, will come under 28% tax slab. The housing unit will taxed at 12%. This rule is applicable for real estate companies in Navi Mumbai as well as all states in India.

How will GST help home buyers?

A uniform tax means home buyers are saved from the implications of triple taxation, thus bringing down the compliance costs. Earlier, developers used to charge diverse taxes due to ambiguity of taxes to be charged. The new tax regime will bring transparency and a structured tax policy, therefore, bringing clarity among home buyers.

As only a few days have passed to the implementation of GST, for home buyers in Navi Mumbai, this will bring straightforwardness into the sector without causing any tax confusions.
For home buyers, who are searching for dream homes in Navi Mumbai or Mumbai, the roll out of GST will be beneficial as it promises to eliminate tax ambiguities.

GST and affordable housing:

Affordable housing will also be liable for tax at 12% . Let us understand this policy with an      example:

For example: A prominent builder has launched an affordable project, which offers 1BHK at Rs. 6 Lakhs and a buyer is required to pay down payment of around 10% while the remaining would be financed by the banks. Affordable housing is exempted from service tax, the builder imposes zero tax as the rate is all inclusive. It is likely that the government may come out with a clarification regarding the applicability or continuing exemption under the GST. For the affordable housing, which is basically an initiative under the Pradhanmantri Awas Yojna, the overall impact of GST will remain be neutral, but full of gains.

As stated by the Finance Minister, affordable housing will not be impacted by GST. This comes in the wake of the ‘Housing for all by 2022’, an initiative by the Union Cabinet chaired by the Prime Minister, Shri Narendra Modi.

If you’re looking for affordable homes or luxury apartments in Navi Mumbai, visit Akshay Argade. We will assist you in getting the right value for your property based on market research and our expertise.

This year, buy your dream home in Navi Mumbai

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It is said that 2017 is the best period to invest in a new home in Navi Mumbai. Leading banks like SBI, ICICI and HDFC have lowered their interest rates on home loans. It’s not just the monetary benefit associated with property investment, even some changes in real estate regulations would work in favour of home buyers.

The recent budget 2017-18 announced the rule of infrastructure status to affordable housing, which has resulted in higher demand and pushing the sales of apartments in Navi Mumbai. Even developers felt the pinch of the new rule and constructing properties where affordable housing has a high demand.

RERA (Real Estate Regulatory Act) which came into force on 1 May 2017 will restore the confidence of consumers in the market. In fact, this new regulation will also aid to bring transparency in the construction of properties. Whatever information given by the developers regarding the amenities and facilities of the township, RERA makes it mandatory for developers to offer the same as promised. RERA commits to assure customers of timely delivery and unparalleled quality.

In addition, the upcoming taxation system called GST (Goods and Services Tax) will come into effect in July 2017. The new tax regime will replace service tax and value add tax. These regulations will have a positive impact on the real estate as a whole. In fact, by taking into account all these changes, home buyers will be encouraged to invest in a new home in Navi Mumbai. And, undoubtedly 2017 is considered as the best time to make your investments count.

If you’re still wondering whether you should invest in a new home? Then choose Navi Mumbai for your dream home. Here’s some fact to clear your confusion. In 2014 and 2015, around 16,000 units have been sold in the Mumbai Metropolitan Region (MMR). Put your worries to rest by choosing profitable locations like Kharghar, Dronagiri, Panvel, Taloja, Ulwe, among others.

It is recommended to give less preference for under-construction properties considering the delays and tumultuous nature of the real estate in India. When you’re looking for home in Navi Mumbai, opt or ready-to-move apartment which has a tax benefit on home loans, zero delivery risk and promises a good return on investment.

Navi Mumbai will continue to be a trending location due to significant infrastructure developments like the airport, metro railway and ease of transport, which makes it an attractive location among home buyers.

So, buy a new home in Navi Mumbai. If you’re looking for any kind of assistance for your ideal dream home, get in touch with us. Visit our website to get exclusive deals on properties in Navi Mumbai.

Why do you need homeowners insurance to buy a home in Navi Mumbai?

 

Your home is place where you cherish every moment whether it is togetherness, hopes, dreams & more. That’s why to make sure it remains precious, you need to guard it against unpredictable problems. Homeowners insurance is a type of insurance which aims to protect your home and household possessions against any damage which may be caused due to natural disasters or man-made problems like fire, theft or vandalism.

You never know when accidents may occur, but in case if your home catches fire wouldn’t you look for some solution which helps you to cover the losses? Hence, whether you’re a tenant or a home owner, a home insurance is a necessity. When you buy a home in Navi Mumbai, it is significant you invest in either basic fire insurance or a comprehensive policy.

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When you’re buying a home insurance, here are three things to keep in mind:

  • Typically, a home involves various hidden costs including stamp duty, brokerage fee, vat, maintenance & more. However, home insurer companies do not take into account these costs, it covers only the building cost. If you’re living in a co-operative housing society, then it is recommended to get the entire building insured or if have a row house on your own land, then it is necessary for the home owner to get it insured.
  • During the process of buying a home insurance, you need to make sure that you’re very well-informed about the claim process because an insurer would thoroughly examine damaged possessions of your home. Insurers will most likely refuse to grant a claim if you have not maintained your property in proper condition or it is an unauthorized construction.
  • A home insurance can be availed in two ways: depreciated cost basis and reinstatement basis. Reinstatement is the value of reconstruction, which does not include the depreciation cost and the claim is approved only when a home is reconstructed. In case of depreciated cost, an insurer will depreciate market value by 2% p.a.

How to select an home insurance for buying a home in Navi Mumbai:

Company evaluation:
Once you have decided to proceed ahead with home insurance, make sure you do a complete evaluation of the insurance companies. Is the company offering a policy which fits your bill? Select a company with friendly staff who can assist you anytime when a crisis strikes.

Evaluate premium and coverage:
It is recommended that you do not finalize on premium amounts blindly. Evaluate the risks your home might face. Choose a policy which includes premium that fits your budget easily.

Claim process:
Often, insurance companies are perceived as notorious with regards to claim settlement. Some companies show a good turnaround time for claiming process. Check for settlement record of the insurance companies before selecting one.

Why you should think about investing in a second home?

1Investing in a second home is everyone’s dream, but very few manage to buy one. Though, the sentiment of owning a second home has persisted for ages, however, it is slowly becoming a trend  among elite investors and middle class. Several potential home buyers are putting money into vacation homes to finance long term needs and converting it into primary homes for the golden years.

The demand for buying second homes in India is growing among NRIs, making it a profitable market segment among developers. In 2015 alone, more than 2 million vacation properties were purchased as indicated in a research report conducted by the National Association of Realtors.

Alternate income earnings:

Once you buy a second home in Navi Mumbai or Mumbai, you are bound to get advantage of gaining extra income in the form of home stays or short term rents. The first thing you need to make sure is the location you have chosen is a relaxing place – lush green surrounding featuring world-class amenities– which calms down the stress of the visitors. Additionally, you need to place emphasis on how the location rental price will help you earn more.

For your retirement years:

If you do not wish to give the home for rental purpose, then it is a perfect abode for you to spend your retirement years peacefully in your second home. The rent received from the home will secure your future financially in the later years. Many people buy a second home for the sole of making it into primary homes after retirement.

Tax efficiency:

The rent received from the second home can be used for paying interest of the home loan you have taken for the flat you’re staying in.

If you are living in a home for which you have taken a home loan, a tax deduction up to
Rs. 1,50,000 is applicable under the section 80C of income tax act. In case you have invested in a second property, which is under construction then get a deduction on 20% of total interest paid. The concession on interest rate is applicable for a period of five years.

While investing in a second home in Navi Mumbai or Mumbai, make sure you have enough capital in place for managing expenses as well. Think well before making an investment decision.

Theme Based Housing: The new trend in Indian real estate domain

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Theme-based residential projects have been gaining momentum as the taste of consumers has shifted to architectural design, while the other factors like health clubs, spacious living, enviable location have taken a backseat.

The fact is that most of the home buyers, who seem to be interested in theme based housing mostly comprise of HNIs and NRIs. The architectural themes that have been popular are Egyptian, Arabic, Spanish, Mediterranean, Roman and Moroccan. The European renaissance design is becoming more of a trend for this type of properties in the Indian real estate domain.

There are several reasons why the aspirational crowd is looking for theme based properties. These properties boast charismatic ancient era, contemporary designs and latest facilities. Well-known developers and real estate companies are increasingly catering to the demands of the high income home buyers. Theme-based projects can be witnessed not only in Mumbai, it is also now a trend among across various cities and states in India.

According to some real estate analysts, a project is said to get sold more if it has an attractive pricing and an exceptional design concept that perfectly blends with a particular theme. It is good to remember that home buyers today are well-informed and educated due to the kind of exposure to instant information they have through various sources.

In fact, some real estate companies have roped in expert architects from abroad to bring the feel of an exact theme based concept. This trend is not just limited to real estate domain as the state governments are also picking up this new-age style. The latest development is coming up in Haryana as the government plans to construct 13 theme-based cities along the 136-km-long Kundli-Manesar-Palwal expressway.

If you’re planning to invest in theme-based projects like these, here some of the things you should keep in mind before taking the plunge:

  • When investing, think about basic necessities like proximity to workplace, health care and education institutes.
  • These properties consume a lot of time as they are developed in phases.
  • There may be chances of a particular project getting delayed in the long run.
  • Make sure you are well-informed about the developer’s past projects.
  • Appreciation from the theme based project is guaranteed, but you will have to hold on to the property for earning capital.

Should you start investing in real estate at a young age?

Investing in real estate in your twenties is tough considering money is the most important constraint. If you’re one of the few lucky people, who have inherited a large sum of money from your folks, then investing in property is easy. Today, investing in real estate is more precious than putting money into gold. It’s true that the risk associated with property investment is larger, but this  could turn into a valuable asset in the future. We help you to know whether it is good decision to invest in real estate, read further to know more.
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Regular cash flow:
Whether you’re seasoned or first time real estate investor, make sure you have set your priorities. As a young property investor, you may be having several goals and one of them could be attaining consistent cash flow or capital gains. One way to generate capital gains is to buy a property that has low retail value in the market and then selling it at a higher price. For judging the price fluctuations, make sure you are aware of the price rise that may vary depending on the market conditions.

Huge return on investment/ Appreciation:
When you’re in 20s, real estate investment gives you the opportunity to earn extra income. Don’t let any money sit idle, it is advisable to invest in property. You can gain decent profit by holding properties for a few years. Depending on the location advantages and market conditions, make sure you’ve picked a perfect property that yields maximum profit. However, it is good to remember that this industry should be looked at as a long-term investment.

More time to learn:
As a young investor, you have ample of time to learn and assimilate knowledge on investing. If you’ve done any mistake, you have more time to recover from the loss incurred. Being an expert in real estate gambling game is all about learning new things. In fact, if you have acquired the right skills and applied the tactics about investing, then you can also become a consultant in the long-run advising people on the profitable opportunities.

Tax advantages:
For working professionals, investing is also way to save on income tax. Just like Public Provident Fund (PPF) and Insurance, which help to prevent tax cut, you are eligible for tax exemption on interest if you have invested in second property. In case, more than one borrower is involved in the investment, tax exemption option is granted individually.

Build Wealth & retire early:
Most of the times, the pervasive reason behind investing in real estate is accumulating wealth. If you’re passionate about this field, then you will be able to find and quickly resell to end users or to investors. This is one of the best ways to build wealth and opt for early retirement achieving financial independence. You are assured of getting steady income for a lifetime.

When deciding to invest in a risk market, it is necessary that you have the required information and a strategy in place before making any move. Being extremely competitive and challenging, you need to keep in  mind that not every investment will be successful, but eventually some may bring out positive results. If you have decided to invest in property then it is important to remember that good investments take time.

Whether you are looking to invest for a dream home or want capital gains, check out Akshay Argade, which offers amazing opportunities to invest in residential properties.

What are the top 5 hidden costs one should consider before buying a house?

Welcome to our blogging space! It’s been a while the new year has set in and as a home buyer, you must be in an exciting phase to book a dream home of your own. Right? But, prior to proceeding with the tedious process of  documentation and booking, what’s more significant is taking care of the mounting costs.

Are you really aware whilst you’re ready to take over in your new abode, what are disparate expenses you need to incur? Fret not, here we’ve compiled the top 5 lists of hidden costs associated with the home buying process.

Stamp duty and registration of title:

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Stamp duty is just like sales tax and represents a legal evidence of property investment. As per the Section 3 of The Bombay Stamp Act, 1958, the transactions made for the stamp duty is recorded by the government of India. The cost of stamp duty varies from state to state.
When a home or a property is registered in your name, registration fee is imposed. The amount of registration fees is more than the fees of stamp duty. Most of the times, it is 1% of the market value.

Maintenance Deposit:

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The cost of maintenance varies depending on the type of home you have chosen. Maintenance deposit is in a way saving for the home buying process. It is usually deposited for the purpose of maintaining common amenities, lobbies, landscaping, pools and elevators.

Brokerage fees:

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For buying a home, if you’ve consulted Realtor or a property agent then you will have to incur around 1-2% of the property cost. This is basically a service charge as agents serve as mediator between buyer and seller.

Service and VA tax:

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While stamp duty is somewhat similar to the tax, another hidden cost associated with the home buying  process is service and value added tax. This amount is basically directed towards government. The taxes are levied only for properties that are bracketed as under construction. In case of independent homes, villas and bungalows, service tax is exempted, as well as not applicable for homes with a carpet area of 60 sq ft. In case of service and VAT, the money is usually paid by the builder, although it is often recovered from the buyers.

Expenditure on interiors:

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When you’re buying a home, the cost of interiors is unavoidable. Interiors mostly include furniture, painting, electrical fittings, plumbing, among others. Most of the times, the cost incurred on interiors can go up to lakhs.

 

Why Choose Real Estate Agency For Property Investment?

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1.Immense Expertise
Expertise comes with experience and experience comes with practice. Real estate agencies possess immense amount of expertise in term of real estate industry. They know which property can  appreciate in value.

2.Great Negotiators
When it comes to negotiation, agencies are the best to rely on. When they know everything about the property, they also know about the market fluctuations and trends and are also the masters to understand hidden arenas in terms of cost and valuations. Moreover, negotiation is nothing less than an art and they do it on regular basis.

3.Good Connections
Well, connections matters in every walk of life and so very much more in real estate. Whether you are buying or selling a property, finding a buyer or seller, choosing them, and dealing with one, are no child’s play. Agencies are great manual search engines owing to their great connections.

4.Relevant Knowledge
Working day and night in the world of real estate, these agencies possess relevant knowledge pertaining to ethics of the industry, rules and regulations, new and old laws and other legal matters. These matters play a huge while closing a deal.

5.One-point Contact
Dealing with an agency ensure that you remain headache-free through-out the deal. A property dealing means hundreds of calls and negotiations every day and for days. Going through an agency helps you simplifying the process and also they act as your one-point contact regarding a deal.

Though engaging a real estate agency is personal matter of choice, well most of the time it has been noticed that deals heading through agencies are more fruitful ones merely because they are more considered, evaluated and well-negotiated.