Sprucing up one’s home for the festival of Diwali need not be an arduous task. Here are some simple and creative ways, in which homeowners can make their homes look warm and welcoming

How to give an inexpensive makeover for the walls

Painting the house makes it clean and fresh. There are a lot of inexpensive painting options available in the market, which are of good quality. Homeowners can also opt for wall coverings such as wallpapers, to add color to one’s house. There are a variety of wallpapers with exquisite finishes and attractive prices, which can be installed in a day’s time. Alternately, one can use festive wall stickers which can be removed, without damaging the wall or the paint. They can be applied on walls, wood, glass, etc. Swarovski crystals and studded decals can also add glitter to your living rooms.

Furnishing and accessories for the festive season

Changing the drapes and furnishings, are the easiest ways to add a festive look to your home, this Diwali. While doing so, first select a color theme that complements the furniture and then, opt for floral, geometric or plain fabrics, accordingly. If your home is done up in classy white or soothing beige, then, you can brighten it up with touches of vibrant green or feisty orange. Intricate patterns and soft fabrics like silk, which connote luxury, are ideal for festive seasons.

Metallic touches and ornamental accents also add to the festive feel of a house. Gold or sparkling silver items, handcrafted vases, lamps and ethnic artwork, can transform a festive space. For the dining area, use tableware in lovely colors and designs, made of porcelain, steel, silver, earthenware or and glass.

Decorating the entrance of the house

Decorate the main door, with a floral toran or colorful bandhanwars designed with pearls, gotas and fancy flowers. As rangolis are considered auspicious, make one with powder or with fresh flowers like marigold, mogra and rose petals, near the entrance of your house. You can also opt for readymade acrylic or studded rangolis and arrange it with hand-painted earthen diyas.

Diwali lighting options for your home

Lighting plays an important role, in the overall look of a house. “Indirect cove lighting gives a warm and cozy feel to the house while direct lighting or spot lighting is used to create focal areas. Other light fittings like wall bracket lights, may be used to highlight a painting on the wall or artifacts. A chandelier can brighten up the décor of a house, as well. Metal, Brass and Silver are ideal décor elements for Diwali – the festival of lights. Similarly, fairy lights and rope lights create a festive atmosphere. One can be creative, by using paper cones around the light fixtures, to change the shade of the light, from greens, to blues and oranges. You can also use discarded wine bottles and stuff it with Mirchi lights and arrange it around the house for a unique statement.

Fresh flowers uplift one’s mood and add a feeling of positivity to the home. Mogras, roses, carnations, chrysanthemums, orchids and other exotic flowers can be used to give an eye-catching makeover to the home.  Use a lot of flowers to decorate the home for Diwali. Marigold balls, hung at the entrance and strew flowers around the temple to create a festive look that complements the overall décor of the house.

Quick ways to decorate your house, this Diwali

• Give your home’s windows a quick makeover, by changing the curtains or opting for classy blinds.
• Keep a plant in a vibrant colored pot and decorate it with fairy lights.
• Gold-coloured décor pieces can be a lovely addition to a neutral environment.
• For the bathroom, use matching colored napkins, towels, dispensers and door mats.
• Use potpourri, reed diffusers and fragrant oils, to create a refreshing ambiance.
• Add mirrors with fancy frames, to enlighten a dull space.
• A wide range of silver and brass accessories, used along with fresh flowers, lanterns and diyas, can beautify the temple area.

Indian constitution advocates same parity for both men and women. Somehow it is not practiced in day-to-day life. It is generally observed that till it is necessary, the home or any property is purchased in the name of male members of the family. The central and many state government for women empowerment provide benefits for women property buyers. A peep in as to what is the benefit when a home is bought in wife’s name.

There are several benefits to buying a property in a woman’s name, either as the sole owner or as a joint owner, with governments and banks offering several sops. Aspiring homebuyers can seek certain benefits including tax exemptions if a home is bought in a woman’s name. Such offers can also attract more women buyers to the realty sector. Encouraging women to register assets in their name, also boosts women’s empowerment.

Tax benefits

Experts explain that some of the obvious tax benefits of buying a home in the wife’s name include an extra deduction of interest up to Rs 1.5 lakh every financial year if the house is self-occupied. If a husband and wife are the joint owners of a property and if the wife has a separate source of income, then they can both claim tax deductions individually. The tax benefit will depend on the ownership share of each co-owner.

Discount on stamp duty charges

Several state governments in north India are now offering a partial waiver on stamp duty, for buyers registering properties in a woman’s name – either as a sole owner or as a joint owner.

You can save 1%-2% on stamp duty if the property is in a lady’s name. In Delhi and Haryana, the stamp duty rate is 4% for women, compared to 6% for men. Moreover, if you are undergoing some financial setback and have some debts to repay, the property held in your wife’s name, does not come under the cover for your loss.

Discount on home loan interest rates

Many banks like SBI, ICICI and HDFC Bank, offer discounted rates on home loans for women borrowers. The prevailing interest rates for women borrowers are as mentioned below:

Interest rate for woman borrower vs. men borrowers

Note: For amount less than Rs. 1 Cr.

Things to keep in mind when buying a home in the wife’s name

Experts maintain that it is a good idea to buy a home in the name of one’s wife or in co-ownership. However, the wife can enjoy the tax benefit, only if she has a separate and genuine source of income. Moreover, if there is any legal dispute on the property, then both, the husband and wife will be involved in the case. Therefore, homebuyers should evaluate all possibilities, before making a final decision.

In India, the needs of children are not considered before buying a home. Their say and requirements are not on the agenda set for home buying. The maximum consideration in regards to children in a home is that there is a minor consideration for the provision of a separate room. Parents generally do not pay heed to the children’s requirements, when they buy a home. As children usually spend more time at home than their parents, property owners and buyers should ensure that the home fulfills their requirements. Moreover, the house should also be able to meet the child’s changing needs, as they grow and mature.

We shall now examine the needs of children that buyers need to consider before finalizing a house purchase and the impact on property prices.

There are many good reasons why children should be an important consideration while buying a home. Everything that transpires within a family, directly or indirectly involves its children. Even young couples, who do not yet have children, will still consider this as an important factor while choosing a residential property. In a country like India, where emotional ties are strong, it is common for people to make significant investments, based on the present and future needs of our children.

Things to consider, as per children’s requirements

Experts suggest that buyers on a conservative budget should focus on connectivity, rather than location. One should invest in a location that is well connected and not in a location that is centrally located. Builders are also recognizing the importance that children’s needs play, in property transactions and are, therefore, coming up with projects that cater their requirements.

While buying a home, the factors that need to be considered, depend on the various phases of life – a toddler, a teenager and an adult.

Medical facilities should be readily available, not only for children but also for other members of the family. Everyone will agree on the importance of good educational institutions being available. Today, people also look at connectivity to nearby amusement parks, theaters, pubs, malls and food outlets.

Children’s requirements and its impact on property costs

Nevertheless, the availability of good schools, colleges, green spaces, connectivity, hospitals, malls, etc., will add to the cost of property. As the comfort and convenience that a particular location offers increases, so does the price. It all boils down to what kind of a budget you are working with.

However, a home is essentially a family-oriented property and should not cost more because it is children-friendly. If certain developers want to charge a premium for specific children-oriented features or services, there should be a clear and visible justification and its price should be comparable to any other property, with similar lifestyle amenities.

The competition among the institutions disbursing the home loans is on the rise these days. These institutions vie with each other to woo loan seekers to their organization with promises of interest rate cuts and better services. For this, they try to lure existing borrower with marginal rate cuts and easy repayment terms.

While it may be tempting for a home loan borrower to transfer his/her loan to a bank that offers lower rates, there are several charges and procedures that the applicant should consider.

The facility to transfer one’s home loan from one bank to another, allows borrowers to have a ‘plan B’ in case they are not satisfied with their existing lender. Besides deficiency in services, a borrower may also want to switch banks if their existing bank does not allow a renegotiation of the loan’s terms, such as changing the tenure or reworking the EMI.

Earlier, banks would not pass on home loan interest rate cuts to existing borrowers. Allowing the same would have benefitted customers and led to greater savings during repayment. In such a case, transferring a home loan would have been beneficial.

Take an example where a home owner’s home value increased significantly when compared to the price at which it was bought. When he wanted to renovate his home and his bank was unwilling to increase the loan amount, he switched to another bank. However, he also faced several problems while transferring the loan.

Tedious process

To transfer a home loan, the borrower first needs to submit an application to his/her, current lender. The bank will then provide a consent letter or NOC, along with a document mentioning the outstanding amount. These documents should be submitted to the new bank to which the borrower wants to shift the loan.

The new bank will treat the application as a fresh loan and the documentation process, including submission of the employer’s letter, salary slip, photo identity proof, bank statement, etc., will have to be done all over again. Transfer of a home loan requires diligent documentation, coordination, and follow-up. Problems may arise if the original loan is jointly taken and one of the borrowers has retired or income levels have reduced. The new bank may also refuse to take over the loan if the customer has not been paying the EMIs regularly.

If the new lender is satisfied with all the documents, he will sanction the loan amount to the previous lender in order to close your account.

Open-ended risk for the new bank

Once the transaction is completed, the property’s papers are handed over to the new lender and remaining post-dated cheques or ECS payments are canceled. The bank that agrees to give the loan, runs an open-ended risk because the existing bank releases the mortgaged documents of the property only after receiving the payment. However, they take this risk solely to acquire a new customer.

Pay the fee, again

As the new bank treats the application as a fresh loan, all charges associated with availing a home loan will be applicable. Consequently, the borrower will have to pay the processing fees, stamp duty, notarization charges and franking charges. This can easily be 0.5% to 1% of the loan amount.

Not a formal procedure

There is no formal procedure for carrying out the loan transfer process and this is deliberate. The Anand Sinha Committee that was set up by the RBI to look at issues surrounding consumer service briefly touched upon the balance transfer issue. However, no action has been taken, yet.

To avoid hassles, most customers prefer to stay with the same bank, as long as they are allowed to switch to a lower cost loan by paying a fee.

The competition among the institutions disbursing the home loans is on the rise these days. These institutions vie with each other to woo loan seekers to their organization with promises of interest rate cuts and better services. For this, they try to lure existing borrower with marginal rate cuts and easy repayment terms.

While it may be tempting for a home loan borrower to transfer his/her loan to a bank that offers lower rates, there are several charges and procedures that the applicant should consider.

The facility to transfer one’s home loan from one bank to another, allows borrowers to have a ‘plan B’ in case they are not satisfied with their existing lender. Besides deficiency in services, a borrower may also want to switch banks if their existing bank does not allow a renegotiation of the loan’s terms, such as changing the tenure or reworking the EMI.

Earlier, banks would not pass on home loan interest rate cuts to existing borrowers. Allowing the same would have benefitted customers and led to greater savings during repayment. In such a case, transferring a home loan would have been beneficial.

Take an example where a home owner’s home value increased significantly when compared to the price at which it was bought. When he wanted to renovate his home and his bank was unwilling to increase the loan amount, he switched to another bank. However, he also faced several problems while transferring the loan.

Tedious process

To transfer a home loan, the borrower first needs to submit an application to his/her, current lender. The bank will then provide a consent letter or NOC, along with a document mentioning the outstanding amount. These documents should be submitted to the new bank to which the borrower wants to shift the loan.

The new bank will treat the application as a fresh loan and the documentation process, including submission of the employer’s letter, salary slip, photo identity proof, bank statement, etc., will have to be done all over again. Transfer of a home loan requires diligent documentation, coordination, and follow-up. Problems may arise if the original loan is jointly taken and one of the borrowers has retired or income levels have reduced. The new bank may also refuse to take over the loan if the customer has not been paying the EMIs regularly.

If the new lender is satisfied with all the documents, he will sanction the loan amount to the previous lender in order to close your account.

Open-ended risk for the new bank

Once the transaction is completed, the property’s papers are handed over to the new lender and remaining post-dated cheques or ECS payments are canceled. The bank that agrees to give the loan, runs an open-ended risk because the existing bank releases the mortgaged documents of the property only after receiving the payment. However, they take this risk solely to acquire a new customer.

Pay the fee, again

As the new bank treats the application as a fresh loan, all charges associated with availing a home loan will be applicable. Consequently, the borrower will have to pay the processing fees, stamp duty, notarization charges and franking charges. This can easily be 0.5% to 1% of the loan amount.

Not a formal procedure

There is no formal procedure for carrying out the loan transfer process and this is deliberate. The Anand Sinha Committee that was set up by the RBI to look at issues surrounding consumer service briefly touched upon the balance transfer issue. However, no action has been taken, yet.

To avoid hassles, most customers prefer to stay with the same bank, as long as they are allowed to switch to a lower cost loan by paying a fee.

There are several taxes to be paid while buying different properties. What are the legal taxes that a buyer for home has to pay on the purchase of a home? Here is a sum-up to the types of the taxes and duties payable by the buyer.

Apart from the cost of the house, a large chunk of net home cost consists of taxes and duties. The purchaser of a home in India has to primarily bear the burden of four duties payable at the time of purchase of a home. They are –Stamp duty, Value added Tax or VAT, Service Tax and Registration charges. The amount of Stamp duty, VAT and registration charges may vary from state to state but the rate of Service Tax is common throughout the country as it is levied by Central Government.

 Stamp duty

Stamp duty is payable to the state government. Payment of this duty denotes the legal status of the transaction. A sale agreement that is not appropriately stamped, is not acceptable as confirmation in the court of law.

Value-added tax (VAT)

VAT is typically levied on the sale of goods and is applicable for house property, as it involves the transfer of ownership rights from the seller to the buyer. It is pertinent to note that VAT is applicable, only in the case of under construction properties.

Registration charges

The agreement executed between the buyer and seller (owner/developer) of a house property, should compulsorily be registered, as per the Registration Act. If the agreement is not registered, it is not admissible as evidence in a court of law.

Service tax

Service tax is payable to the central government. This charge is only applicable for under construction properties. Service tax is charged at a specific rate on the basic cost of the property (cost of land and construction) and at a different rate on other cost items, such as preferential location charges, floor rise charges, initial maintenance charges, club house, etc.

Who should pay these charges?

Payment of stamp duty and registration charges is the responsibility of the buyer. However, due to poor market conditions in recent times, some developers have offered to bear this cost. With respect to service tax and VAT, it is the responsibility of the developer to collect it from the buyer and deposit it with the concerned department.

If the stamp duty and registration charges are not paid, the registration procedure itself will not be complete and therefore, the property would not be legally transferred in the name of the buyer.

Are taxes the same for all classes of homebuyers?

According to experts, most of the above taxes and charges are applicable on a similar basis, to all categories of home buyers, except for service tax. The service tax brackets are as follows:

• If the value of the house property is more than Rs 1 Crore, then the service tax chargeable is 4.50% on the sale consideration and 15% of floor rise and other charges.
• If the value of the house property is less than Rs 1 Crore, then, the service tax chargeable is 3.75% on the sale consideration and 15% of floor rise and other charges.

From a tax perspective, the following points are important for homebuyers:

• In the case of an under-construction property, all the taxes are applicable.
• In the case of ready-to-move-in homes, where the buyer is buying from a developer and the occupancy certificate and completion certificate have been received, service tax is not applicable.
• In the case of ready-to-move-in homes, where the buyer is not buying from a developer, service tax and VAT are not applicable.

Owning a home is becoming a very costly affair these days. A large amount is required to finance a house purchase. Though, the buyer will venture into house buying only when he has a significant corpus to substantiate his purchase. Home apart from being a basic necessity of human being is an object of his endeavor.

Buying a home has become easier these days courtesy affordable home loans from Banks and financial institutions. An easy paperwork procedure and sound bank statement ensures a home loan to the borrower. The set of documents required by the financial institute differs from lender to lender. But there are some mandatory papers that every lender will ask for. A short synopsis of documents required for a home loan application is given below to time and effort of the borrower.

Home loan application form

This is the document that records name, address and other personal details of the applicant. If there is more than one applicant for the loan the same requirement is to be fulfilled by co-applicant The photograph of the applicant and those of co-applicants are mandatory too. The application for the home loan is to be submitted with processing fees, thus, it is advisable to the applicant to avoid filling multiple applications, as the accompanying fee is not refundable.

Applicant’s Identity and address proofs

Lenders generally ask for the copy of any one or all of these documents such as PAN card, valid passport, Aadhar card, driving license, and identity card issued by any government department or employer and Voter card for identity and address proofs.

Income Authentication proofs

The lender will always establish the ability of the borrower about his ability to repay the loan. The home loan eligibility of an applicant is determined only on the basis of his income. For salaried persons, lenders generally ask for the Form No 16 and/or a copy of his income tax return with the computation of the total income. The lender may also ask for the applicant’s latest salary slips, to ensure that he is still working with the same employer and that his income has not undergone any negative change.

Self-employed people

For self-employed people, lenders usually ask for the last three years’ income tax returns with the computation of total income. The bank may also demand copies of audited profit and loss statements and balance sheets, for the last three years. In case the accounts are not audited, you may have to get these documents certified by a chartered accountant. For self-employed professionals, the lenders will also insist on proof of educational qualification. In both cases (salaried and self-employed) the lending institution will also ask for copies of the bank statements where your salaries are credited or your business transactions take place, to verify the authenticity of your income.

Documents pertaining to the property

It is not necessary for you to identify the property, before making an application for home loan. Ideally, the loan application should be made before you identify a property. Doing so will help you to sort out any issue pertaining to eligibility, whether it is related to the quantum of the home loan, or any incorrect information related to your credit score or credit history.

Once you have identified the property that you intend to purchase, you will have to submit the documents related to the property. If you are buying a resale house, you will have to provide the copies and originals of all the documents constituting the chain, from the first buyer to your present seller. This will help the lender to establish that the property is not already mortgaged. In case the property is in a cooperative society, you may have to furnish a no-objection certificate from the society.

If you are buying the property from a developer, you will have to provide documents that establish the clearances obtained from the local authorities, the approved building plan, documents about ownership of the land, legal opinion about the title of the land, etc.