4 Tips To Manage Home Loan EMIs

Home-loan-interest-2Buying a new home? Then, home loan is one of the components, which helps to fulfill your life’s goal of owning a dream home. It is a long-term financial commitment that a buyer has to make as it includes repayment of the principal amount and payment of the interest on the outstanding amount of your home loan. Just like the processing and confirmation of of home loan takes a lot of time, similarly managing the financial burden is also nothing less than a headache. If you’re buying a home in Navi Mumbai & looking for ways to get your home loan management right, then below are some of the tips you should pay attention to:

  • When you are moving into a new home, it involves a lot of expenses right from interiors to other hidden costs. It may become difficult to manage EMI. Hence, it is better to use a home loan EMI calculator which will help you make an informed decision. The calculator helps to save time by giving you an exact number of monthly amount to be paid. You will get a fair understanding about the ratio of the principal amount to the interest based on the effect of the home loan tenure and interest rates.
  • If you’re looking to reduce loan tenure, you can use your fixed deposit or prepay a large amount of loan partially. Some banks allow partial repayment of home loan starting from Rs.10,000 and the banks do not impose any charges for it.
  • As a home loan borrower, you can opt for a higher EMI option. An accelerated repayment will ensure that your loan gets repaid faster, thus giving you an advantage of interest savings, as well as tax benefits. If you decide to go for a higher EMI option, make sure that have evaluated banking charges and the amortization schedule (this is basically a table giving you a detailed periodic payment information of typically a mortgage).
  • When managing home loan, affordability of an EMI matter. Though short loan tenure looks seems interesting, but a higher EMI amount can definitely cause a financial burden. Hence, always remember to keep affordability as a primary factor when choosing your loan EMI amount.

While managing monthly installments of home loan, make sure that you’re is not listed under special mentioned account (SMA). This usually happens when the loan amount remains outstanding for minimum 30 days and maximum 90 days. Hence, ensure that you’re repaying a home loan on a timely basis for smooth management of your financial burden.

If you’re looking for a property in Navi Mumbai or Mumbai, get in touch with Akshay Argade, where you will find luxurious and affordable properties in Navi Mumbai and Mumbai.

What precautions you should take with the rising building collapse in Mumbai?

Lately, there have been many cases of building collapses, which is badly affecting the real estate market of the city. The alarming rate has bought under the radar the poorly constructed structures and the old buildings that require immediate attention from the government authorities.

Let’s get to know the reasons behind the recent collapses:

  • Poor construction on part of the developers
  • Using land illegally to develop buildings
  • Violating real estate policies
  • Construction done in haste
  • Lacking required approvals & certifications from authorities

The reason that locations like Thane, Dahisar, Ghatkopar and other towns have seen destruction of such structures is the rising population and land shortage in the metro city, which giving opportunities for bogus developers to construct modern building with poor materials.

To ensure that you do not get entangled in such situations, here are some precautions you can take:

Look for earthquake resistance properties:
hqdefaultNow-a-days, almost all builders are constructing properties which are earthquake-resistant that makes a structure capable to withstand seismic waves. Earthquake resistant buildings are often fitted with bolts in the foundation. One can also consult an engineer for inspection of home to know if the home is earthquake resistant and safe.
When it comes to checking the legal foundation of a property, you can ask to the builder/developer for a foundation certificate of a property.

Beware of construction land & area:
map-mumbai-new-01Residential properties constructed on commercial zone are considered illegal. To examine land record, you can seek help from RTI, as well as obtain details from online portals of state governments. Moreover, builders are required to get structural design cleared from authorities & certified from registered structural engineers.

Check for legal approvals:
housing-approval-from-councilIn case of under constructed properties, it is mandatory to evaluate approvals and certifications, including sale deed (a proof of sale), mother deed (helps to trace antecedent ownership of the property) certificate of commencement, NOC, Booking form, allotment letter, BBA, completion certificate, occupancy certificate, encumbrance certificate, among others.

Building codes:

BuildingCodesBefore a prospective buyer decides to invest in a property or buy a new home, it is mandatory on their part to check for building codes, which is basically a set of regulations by the Indian government related to design, construction, alteration and maintenance of buildings.

So, the next time when you’re searching for homes, do keep in mind these points. If you’re looking for earthquake-resistant properties in Navi Mumbai or Mumbai, get in touch with Akshay Argade, where you will find luxury properties in  Navi Mumbai and 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.

How to determine if a property in Navi Mumbai is legally clear?

In a 2015 survey conducted by the CIDCO revealed that there are around 300 illegal buildings spread across Navi Mumbai. The government body took an action against unauthorized constructions by demolishing them as most of them were under construction. With illegal buildings getting constructed in some areas of Navi Mumbai, how would you determine the legality of a property in Navi Mumbai?inwestuje
Below are the given checklists to know if the property is legally clear:

Check agreement papers:

While buying or investing in a property in Navi Mumbai, you need to verify the original title deeds, building approval papers or occupancy certificate. In addition, a potential home buyer need to ensure all documents are legally approved, stamped and registered. If it is a resale property in Navi Mumbai, remember to check the transfer deeds and share certificate.

Encumbrance Certificate:

When it comes to buying a property in Navi Mumbai, encumbrance certificate is mandatory. The certificate is issued by the concerned Sub-Registrar, which is used in property transactions. It is basically a proof that the builder has a complete ownership of a property without any legal issue. A property dealer is mandated to submit 10-15 years of encumbrance. For buyers applying for a home loan, this certificate is compulsory when you buy or sell a property. To confirm about the encumbrance, you can ask for up to 30 years of encumbrance to be checked.

Approvals from leading banks:

Confirming legality of property in Navi Mumbai can also be judged if a particular project has got the approval from banks. If the property dealer has all the vital documents in place, which have received legal clearance from banks, then you can go ahead with the plan of buying a home.

Examine construction area:

There are times when buildings are constructed illegally, hence confirm with the builder about the sanctioned area of construction. Do a comparison between the build up area and the sanctioned area. This will help you to understand whether the property in Nani Mumbai is completely legal or not.

Registered society:

A home is the most valuable investment of your life and that’s why it is necessary to make sure that it is a registered society. Often, people who are less equipped with the knowledge of home buying procedure get tangled in real estate troubles like investing in unauthorized buildings, thus resulting loss of time and money. It is recommended to choose registered society to save yourself from the hassles of illegal constructions.

So, the next time you’re stuck to determine whether a property in Navi Mumbai is legal or not, these  are points you need to remember.

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.

5 Simple and effective home security tips for new home owners

Moved into a new home? When you buy a new house, you being busy in decorating your new home, similarly, it is significant to equip it with necessary security equipments. You would be surprised to know that 33% of burglars enter through front doors and nearly 73% of these incidents occur in residential properties. Although, the security at residential properties is completely ensured by security guards, then too it is vital that you take preventive measures. Whether you’re a new home owner or already own a home, here are some security tips you should keep in mind.
Home Security
Proper locking system:

When you have moved to a new home, ensure that you have installed a good locking system for doors and windows. Unless you are using a deadbolt for the door, burglars have an easy chance to open your in seconds using cheap tools. This is because when you’re using a deadbolt, you cannot move it in an open position without the use of a key, which in turn helps to move lock cylinder.

Safety doors:

To meet high security requirements, you need to install a safety door that is solid and kick-proof. Wooden doors are the best, while you can also opt for other materials like metal or steel doors. It offers an added protections, plus you can also use a variety of colors to enhance its appeal.

Install a peephole:

In a peephole in the front door is the best option, if your home doesn’t have a window that allows you to see who is knocking on the other side. A peephole should be drilled at an adult’s viewing height, so that even the shortest member of your family will be able to see.

Stop hiding Keys:

Many of home owners have the habit of hiding keys in the mailbox or under doormats. Did you know thousands of families have reported of burglary in their home and the reason for this is hiding of house keys under the mat. You may think that hiding spare key is a good idea, but in this like openly inviting thieves to enter your house.

Be friendly with neighbors:

If there are any signs of suspicious activity, your neighbors can inform you about it. Get to know your neighbors so that you are rest assured that any theft is prevented. In the next moment, you can return the favor.

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.