Tax benefits on home loan

Posted on February 22, 2016 by Anukampa

Few years back, people with moderate income, either inherited a home which was built by their predecessors or if they planned to build a house it was only when they got their annuity amount or got substantial money as an inheritance. The tax incidence on construction of a house was too high and there were not enough tax benefits attached to the same. Middle class people only day-dreamt about owning a proper house, it was the prerogative of rich or well off people to get a house constructed for themselves and their family.

The scenario changed with the liberalisation of Indian economy and housing was shortlisted as one of the thrust sector for revival of economy and accordingly required measures were taken to push up the things for housing sector. Apart from easing of home-loan process and interest rates, one of the push-ups to the housing sector given by Government was benefits in regard to Income-Tax. Here we shall give a short synopsis of few deductions to be claimed in regard to home loan:

Paid Interest will be treated as loss: The interest component of the EMI’s paid for the home loan will be treated as loss to the assessed and accordingly will be deducted from his income. This deduction will be effected from the year in which the construction of the home is complete. A maximum deduction of Rs. 2 Lakh can be claimed in regard to home loan for the home used as own residence and if the property is rented then entire interest amount for the year shall be deducted.

Is deduction available on principal repayment? : The repayment of principal amount of home loan also falls under the purview of deduction factor. The part of EMI which is repaid as Principal amount is eligible for deduction u/s. 80C of Income tax. However, a maximum amount of Rs. 1.5 Lakh will be eligible for deduction.

Even Stamp duty paid and registration charges will be eligible for deduction: Section 80C also allows the amount paid towards Stamp duty and registration charges as deduction for the year the payments were made.

Pre-construction interest is also eligible for deduction: Along with, the deduction of Interest paid with EMI’s starts with the financial year the construction is over, the deduction for pre-construction interest can be claimed from the same year. However, it shall not be more than Rs. 2 lakhs for the house used as residence, divided in five equal instalments.

Why switch Home loans with another lender?

Posted on February 12, 2016 by Anukampa

‘Home Sweet Home’ is what every one wishes to own one during life span. Owning a house can be a tedious and a life time achievement for some but it may be a regular buy for others.

Presently, it has become easier for aspirants to own a house, thanks to easy loan facility availability and easy repayment options coupled with rock-bottom interest rates. Interest rate has become the bone of contention amongst housing loan companies and banks. With stiff competitions in the offing, the beneficiary is the loan seeker who is being wooed by financial institutions with cropped interest rates, zero or very nominal processing fees or longer tenure for repayment with attractive EMIs. To expand their customer base, these institutions have resorted to customer snatching practices with offering lower interest rates and a plethora of other services. There can be many pros and cons of switching Home loans with another lender; here we shall give a level platform for both aspects:

Does loyalty pay:

Yes, it pays because the shifting client saves time and money on credit checks, authentications, revaluations, paper work and lot of other formalities besides initiating everything afresh. No, because one might miss a very attractive offer which is in the offing. It will be better to first have a tough negotiation with existing loan-giver before shifting to another one if the deal happens to be that attractive.

Time factor:

Tenure of loan is an important factor while deciding loan shift. If the existing loan is to expire in a short period, then it will not be feasible to shift as like interest time also plays an important role in cost effectiveness. Yes, it will be favourable for an aspirant who has recently started paying EMIs as switching loans to a better package will be very cost effective.

Switching costs:

Home loans when switched might become costly in comparison to the present depending on offered package. The factors of Stamp duty, processing fees, legal costs and expenses of fresh documentations should be in for consideration. Another factor up for consideration is pre-payment penalty charged by present lender. If these factors are favourable then it will be a wise decision to shift loans to another lender subject to other conditions being favourable too.

Keep an eye on CIBIL ratings:

A person who has presently taken a loan from some banking or financial institution should always keep a sharp eye on his CIBIL ratings. Generally, the worth for CIBIL ratings gains importance only when a fresh loan or loan switch is contemplated. Don’t be under an impression that CIBIL ratings will not alter once approval to loan is given and further when payment is smooth. There may be many other factors which might alter ratings. The potential lender will certainly consider CIBIL ratings while considering a switch over borrower.

Decision is yours:

A borrower of home loans is a wise person in his own esteem. He knows the benefits and inadequacies of whether to continue with present loan or switch loan to a new lender. Continuing with present lender has the benefit of acquaintance which might be of help even if there is a negative twist to CIBIL scores because, here, personal touch gets a priority over data facts. On the other hand one may rue over loss of a jackpot opportunity if the shift of loan is not affected.

Grihapravesh…towards new beginnings.

Posted on January 25, 2016 by Anukampa

For some, this New Year has brought a lot of new beginnings in their life. January being a season of marriage has witnessed a lot of couples settling down and start a new life.

In our country, Griha Pravesh of a new home is considered to be one of the most auspicious rituals before entering into a newly built house. Once the house is ready, the family moves in on an auspicious day that is determined by the astrological charts. We congratulate everyone who has moved into their new homes.

Like marriage, for many people, owning a home is the fulfillment of their dream. As marriage showcases stability, prosperity and fertility in one’s life so does owning a house. As one moves ahead in the journey of life, having a stable home is an obvious need.

On this note it is very important for a newly wed couple to own a house that is built with the pillars of love and affection. Another benefit of owning a home is that it gives you complete control and freedom. You get the complete freedom of choosing which things to be placed where. Which wall to be hammered. And of course, it saves you from the hassle of shifting from one apartment to another. Considering the future aspect, your children will have a more secure surrounding to grow and cherish fond memories in their own home.

When starting a new family, the feeling of owning a home is a feeling of pride. It helps you in bringing steadiness in terms of giving security, luxury and comfort to you and your family desired for.

Therefore, in this phase of life when starting afresh, owning a home can play a vital role in bringing you and your family on a concrete ground.

How to apply for a Home Loan

Posted on January 14, 2016 by Anukampa

Buying a home is one of the biggest decisions you’ll take in your life. It is usually a good idea to take a home loan for a section of the payment. In the beginning, the process may look bothersome, as it involves many criteria and stages, but it is a safe and easy way to own a home.

To begin with, you’ll need to give a formal application for the home loan to your bank. The application form will requires certain basic information about you such as your income, employment, educational details, details about the property, estimated costs and current means of financing the property. Though the requirements may vary slightly from bank to bank, all banks will require supporting documents to validate your information.

The following is a list of documents you should keep handy while applying for a loan:

Income proof
Age proof
Identity proof
Address proof
Employment details
Proof of educational qualifications
Details about the property if finalised
Bank statements

In addition to this, you will need to pay a ‘processing fee’ to the bank for the home loan application. The fee varies from bank to bank and is non-refundable. It is charged as a small percentage of the total loan amount. The fees is used by the bank to start and maintain the home loan process including completing various formalities during the entire period.

Once you have submitted the required documents and paid up the processing fee, the banks will begin evaluating and processing your application for the loan, based on your requirements.

Real Estate Terminology 5

Posted on January 3, 2016 by Anukampa

We have been talking about Property Terms, giving you insight on the terminology that sometimes get difficult to comprehend. Read on further to know more such terms.

Facilities management

The co-ordination of many specialist disciplines to create the optimum working environment for staff.

Fail rent

The rent determined by a rent officer (or, on appeal, by a rent assessment committee) under a regulated tenancy and registered.

FERA

An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act (FERA) of 1973, it is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.

Fire certificate

A certificate covering matters of safety required under the legislation for hotels, boarding houses, factories, offices shops and railway premises, excluding those buildings containing less than a minimum number of employees.

Fitouts

Relate to the interior permanent furnishings required in a property including HVAC ducting, fire protection system implementation, establishment of workstations and telephone/computer cabling among others, in order to make the property fit for usage.

Flatted factory

An industrial building of more than one storey, usually with two or more goods lifts, and constructed or converted for multiple occupation. The building is subdivided into small, separately occupied units which are used for manufacturing, assembly and associated storage.

Freehold

Freehold property can be defined as any estate which is “free from hold” of any entity besides the owner.

Frontage(line)

The full length of a plot of land or a building measured alongside the road on to which the plot or building fronts. In the case of contiguous buildings, individual frontages are usually measured to the middle of any parting wall.

Come back to continue reading about more Real Estate terms

Welcome Winters!

Posted on December 18, 2015 by Anukampa

With the inception of winters, the weather becomes gloomy and sad. Even a small window can brighten up your place. Get a perfect decor for your home in winters and brighten up your days.

Mirror Magic
If you don’t have enough space to add new lights, add a few mirrors adjacent to your lights. Mirrors create the illusion of more lighting sources, and doubles the amount of light that bounces around your apartment.

Wireless lights
Though candles are a great way to add light and style to your living area, consider more safer options like LED candles and battery operated lights. Not only are they safer from fire hazards, they can also be placed anywhere.

Don’t overdo
Now that you have new lamps, string lights and mirrors around the house, take some time to consider the proper placement of each piece to maximise the effect. Also don’t put all the lighting in one room and neglect other places. Put at least one light source near each corner of larger rooms.

Sticking to lighter shades
To keep your apartment as bright as possible, stick to light-coloured lamp shades. Darker lamp shades will filter out a considerable amount of light and may leave you sitting in the dark.

String/Fairy lights
These might remind you of the festive season, but they work well when it comes to adding more light to your house and also look pretty as a home decor idea. Simply string them around the window or adorn your book shelve with it. For a classier look, go for white ones rather than coloured.

Proper lighting not only provides enough light to your home during the dark hours but also adds up to your efforts of home decor.

Stay close to nature!

Posted on December 13, 2015 by Anukampa

If you love the green colour and have space, then you should explore this idea.

Balcony gardens can be intimate, manageable, useful, and absolutely stunning. But they can be complicated or simple depending on your choices and time to manage it.

Having an open garden in front of your home is a dream most of us have. With the apartment culture on rise, a personal garden seems a distant dream but balcony gardens are one arena that you can explore.

The most basic need of a balcony garden is space. Make sure you have space enough to have a few planters without making it look cluttered.

Since balconies differ in the climate from the ground and each balcony is situated in a different direction, you need to determine the environment of your balcony before selecting the kind of plants that can survive that weather condition.

Once you are sure of the weather conditions, choose a variety of plants mixing the seasonal and annual ones, so that your garden stays green always. You can also consider plants that require the structural support of trellises or cages to add variety and beauty.

Make sure the containers you plan to use are compatible with the growth habits of your plants and have adequate drainage as well.

Use different combinations of container and plant sizes to create visual interest. Reduce visual clutter by choosing containers that blend in with the surroundings.

If you have a variety, layer plants, with taller plants in the back and smaller ones in the front. You can also try vertical gardening. Hanging baskets and trellises can be used to maximize space and can really take your balcony garden to the next level.

Adding a little creativity and dedicating few minutes each day can really bring the blossom of a garden to your home. But before starting off, make sure your society and building management allows them.

Own a home!

Posted on December 6, 2015 by Anukampa

Getting a home or buying a home of your own is one of the most important aspects of life. It not only defines your well-being but also gives you security for life!

Having a place of one’s own is important in terms of security and investment for the future. With changing times and economy, it has not only become easy to buy a home but also the age at which you purchase your first home has decreased.

Here are some of the benefits of having your own home.

1. At the most basic level, having your own home gives you a sense of security and ownership. Not only do you have a place to reside but you also own it and would own it for the rest of your life. Isn’t that a great feeling?

2. Property rates would only increase with time. We have seen a surge in the property rates in the last two decades and it is only going to move upwards. With the lands getting scarce and the demands increasing, we only know what happens to its prices.

3. With changing times, we have also seen an upward trend in the salaries, so affordability is not an issue combined with the fact that home loans are no longer a terrifying aspect.

4. Staying on rent cannot be a permanent option. In fact, the amount that you shell out every month on your rent can be your EMI towards your home loan repayment, which in the end, will help you own a house and not leave you homeless. Also the interest on home loans are lower than any other loan, so it’s better to take a loan and buy property.

5. Advantage of tax breaks. Under the present tax rules, you can get a tax break on interest repayments for home loans to the extent of Rs 150,000 and on principal payments up to Rs 100,000 per annum.

6. Property works as a good investment and an asset. We have always seen homes becoming a rewarding investment and property rates are only likely to rise with urbanisation and economic development.

These reasons not only sum up the need of a home but also make it look beneficial for the future.

Why pay for property space you cannot use?

Posted on April 29, 2015 by Anukampa

While buying an apartment or an office, it is important to analyse the quality of the architectural planning, so that do not end up paying for space you will never be able to utilise efficiently. This space is called ‘Negative Space’

Negative Space is the area not occupied by any useful construction. This part of the property plan is often neglected, used inappropriately as an afterthought.

The term ‘Negative Space’ comes from the world of art, where it was used as a composition tool between objects in both two- and three-dimensional work. However, in times of rising property prices, shrinking living areas and smartly designed homes, there should be no room for space that is not utilized efficiently.

Having no negative space in an apartment means, having no neglected or unutilized areas on the floor plan. Since the cost of your purchase is calculated on the basis of square foot area, every inch matters.

Smartly designed apartments and other properties will always have the layout in such a way that your property smartly uses every inch of the space you’ve paid for, while providing you an airy, efficient and comfortable living / working area.

Browse through 2 & 3 BHK modern lifestyle apartments in Jaipur that offer you zero negative space with the Anukampa Group.

What you should know if you’re dealing with property brokers.

Posted on April 16, 2015 by Anukampa

With the current land prices, man force and raw material management involved, building an independent house is a distant dream for many. Hence people prefer to go to a property broker to find a house of their choice that also fits in their budget.

Here again there are many scrupulous brokers taking the buyers for a ride with indirect charges, fake registration titles and many untold sufferings till they are able to take possession of the flats. Thus, it is always recommended to either deal with the builder itself or be well informed of the buying process before approaching a broker.

Here are few points that every buyer must remember when buying a property through a broker:

Verification of the documents- It is always preferable, before getting in to a deal. Verification is necessary of the land records, legal clearances (whether the plot on which the building stands is non-agricultural (N/A) and has a clear title.), whether the building is in the name of the builder, whether a co-operative housing society has been formed and if yes whether the conveyance of the plot and building in favour of the society has been completed by the builder, the current rate (Rs./sq. foot) of the area, whether the rate offered to the buyer matches with the area rate and the basis – built up or super built up. Check what is included in “super built up” and what amenities will be included.

Construction Quality Check- Have a check on the quality of the construction and ensure that the layout / development has been approved by the Development Authority; most importantly ensure that all documents are legal.

Method Of Payment- It is better that you don not pay the broker a bulk amount in advance. Stagger the payment, and make final payment while occupying the house. This way you can reduce the risk to a great extend. Banks do due diligence before giving away a loan, but, in case there is a problem, they don’t take the risk.

Rules and Regulations- The point of worry for any investor is that in the absence of regulations, brokers are breaking rules with impunity and taking customers for granted. This is the biggest reason for loss of confidence among customers, they be investors or end users.

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