Buying a house was never this easy!

Posted on August 14, 2015 by Anukampa

The festive season is buzzing and people find it to be the perfect time to buy a house. Earlier, it was really difficult to buy a house but now a days the real estate companies and the banks offer many schemes for the people who have a dream to buy their own house. To let your dreams come true at affordable prices, developers have brought in the most advertised, and probably the most innovative, and of interest, the subvention scheme. Though these schemes have been in existence for few years, but a larger population wasn’t aware about this. Now the developers are advertising it to attract buyers.

How does this scheme works?

There are three parties-the buyer, the banker and the developer. The buyer books the property by paying 5-30% money upfront. The bank in the form of loan pays the rest of the amount to the buyer. The bank disburses the loan to the developer as construction progresses. The most important aspect is that the developer bears the interest cost till possession or for a fixed period mentioned in the buyer-seller agreement. The subvention scheme is preferable for those who stay on rent as they will not have to bear the burden of both the loan equated monthly installments (EMIs) and the rent while their house is under construction. It is an added advantage for the customer as the developer is bearing the interest cost till the construction is on. This is an incentive for the buyers at a time when project delays are so common.

How it benefits to the developer?

In view of tight liquidity with banks, when they are not willing to lend directly to developers, such schemes provide the builders an access to the funds, and that too at a low rate. It also helps buyers, who do not want to commit a big sum upfront as the project might take up more time than the committed period.

Will Repo Rate Cut benefit Real Estate buyers?

Posted on June 17, 2015 by Anukampa

Repo Rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. It is used by monetary authorities to control inflation.

A cut in Repo Rate has a positive influence on the Real Estate Industry in the following ways:

Firstly, it will boost affordable housing: Gaurav Gupta, General Secretary, CREDAI-RNE says, “Such rate cuts are helpful for housing projects falling under the affordable price segment. Home loan interest rates impact the home buying decision of middle class buyers the most as they hugely depend on financing.”

Secondly, it will reduce EMIs: The reduction in the repo rate will help reduce the EMIs of homebuyers and lessen their burden, as they are already loaded with various other taxes.

Thirdly, for the real estate sector, it will improve sales figures: The rate cut is anticipated to revive buyer sentiments and bring back some to the market, resulting in improved conversion rates and sale volumes as more potential customers will think of buying homes due to reduced interest rates.

Last, but not the least, it reduces interest rate on home loans: While the Repo Rates have been cut for the third time in this fiscal year, home loan interest rates have been cut only once. But this cut, might just force banking institutions to revise interest rates again.

This is why the real estate industry, along with investors and homebuyers look forward to Repo Rate cuts eagerly.

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.

Tips for cleaning in Spring

Posted on April 8, 2015 by Anukampa

In our busy lives and tight schedules, one hardly finds the time for proper cleaning. But there is something you need to know – that a clean and well-managed house brings positive feelings into the family, because as they say, Cleanliness is next to Godliness.

So, here we are, with a few tips to help you organise your house better:

Declutter

Start from the most messy room or area of the house, so that cleaning a less scattered room makes it less of a burden. Find things that are really of use to you and get rid of things you haven’t used for months. This way, you will find more space for organise your things. It is a bit time consuming, but once done, you’ll save time and energy while searching for things you need.

Make space for the rest

After arranging the house if you don’t find space for everything, try creating some. You can choose decorative baskets, trunks, boxes or crates to keep your things. This way you can clean and simultaneously decorate your house.

Add cleaning to your daily TO-DO List

Give a touch-up to your home everyday rather than having a whole cleaning day. Make this a habit for lifetime; it hardly takes 15 minutes if you do it as a routine.

Make it easy

Make all the cleaning equipment easy to reach, like the things you use for cleaning the kitchen, should be kept in the kitchen itself. It will be more convenient and less time taking, and also evolve your cleaning habit.

Let them do it themselves

Organising can be achieved single handed, you should teach children as well as other members the importance of cleaning. So that the responsibilities can be divided and working together will also bring everyone closer.

Clean and organise your living spaces before it becomes a task. Give your house a whole new look and feel!

What is Vaastu Shastra? Why should my building be Vaastu compliant?

Posted on March 4, 2015 by Anukampa

Vaastu Shastra is an ancient science, which helps one to get the natural benefits freely offered by the five basic elements of the universe in which we all live. These basic elements are Akash (Sky), Prithvi (Earth), Paani (Water), Agni (Fire), and Vayu (Wind). Vaastu Shastra can be applied by keeping in harmony with these basic five elements of nature.

Sometimes, one might feel that the wheel of family life is not moving smoothly and there is lack of peace, harmony, affection and well being in one’s family. One should always choose a house that is Vaastu Shastra compliant, to expect good results and well-being gradually and steadily.

Vaastu Shastra is the traditional Indian system of architecture and design of Vedic origin. Vaastu means the dwelling of humans and Gods. Many Vaastu rules are derived from ‘Vaastu Purusha Mandala’, which is depicted as a man lying with his head pointing northeast, in a grid of usually 64 squares. The different directions and sectors are assigned to different Gods and Guardians. It aims at providing guidelines for proper construction. Vaastu orientates, places and dictates the proportions of every detail in building lines, skylines, elongations, levels, slopes, water (underground and overhead), kitchen, bedrooms, toilets, staircase, heights of ceilings and roofs, entrances, loci of doors and windows, compound walls and so on. Vaastu is affected with positive power of three elements: the earth, the water, the fire (the sun).

Vaastu Shastra cannot be directly linked with prosperity. It only suggests ways in which we can live in tune with the laws of nature so that we can be healthy and peaceful and work efficiently. The ancient texts of Vaastu Shastra have probably claimed to bring prosperity, as an indirect consequence of being able to perform well at home and work.

Benefits of investing in Property

Posted on February 18, 2015 by Anukampa

The market of real estate is booming with every passing day. Today, investing in realty has become a common investment choice. Many people are investing in properties, rather than opting for any other investment option. Although, there are many opportunities available for making good profit, but the real estate business is flourishing constantly. For this reason, many people prefer to invest in real estate to obtain capital profits and regular cash flows. Since last few years, investing in real estate has becoming a trendsetter in India. Because of its huge benefits, it has become a major investment choice of many people. There are many benefits associated with investing in real estate, such as

•Leverage: It is one of the major advantages of investing in real estate. It allows you to get a much higher return on your investment. By using leverage on your real estate transaction, you can have a positive impact on your financial statements.

•Appreciation: When the value of property increases over time, as a result of supply, demand, capital improvements, inflation or other factors, it is called appreciation. There are many investors who invest in real estate due to diverse reasons. When looking at the advantages of renting or buying a home, many people prefer to buy a home, as it can increase their net profits through appreciation.

•Tax Benefits: Another big advantage of investing in real estate is tax benefits. There are many tax benefits offered, when you own a property. All HOA dues, repair interests involved in it are tax deductible.

•Capital Growth: The value of property is increasing at a very rapid pace. By investing in real estate, you will not only get benefit of a steady capital growth, but can also earn a good rental income every month. It is a long-term cash flow that strengthens and increases over time.

As compared to any other kind of investment, investing in real estate is the best option that offers huge cash flows and profitable returns. The process of investing in real estate is very straightforward and easy. The only thing you require is sufficient knowledge in the real estate investment field. Apart from all these aspects, it is a more profitable mode of investment, as compared to stocks and shares.

Health at your Home!

Posted on February 11, 2015 by Anukampa

‘Health is a state of complete physical, mental and social well being, and not merely the absence of disease or infirmity.’

In times of supersonic lifestyles, it is critical to give due importance to good health. A healthy lifestyle means a longer life. Which is why it is important to have a home in a place that helps us lead a healthy, wholesome lifestyle. A place that assists you to perform to the best of your ability, in every sphere of your life.

Here are some of the things you can consider while choose a place to reside, so you can maintain a healthy, happy lifestyle – no matter what stage you life you may be in:

Swimming pool: Swimming is a great workout because it keeps your heart rate up but takes some of the impact stress off your body.

Indoor games Room: Games are a good hobby as they can help you relax after work or on weekends and take away stress.

Modern, well-equipped gym: Going to the gym every day puts you in contact with people on a regular basis and enhances your social life as well as the way that you feel about yourself. You will stay fit, in shape and sleep better if you exercise each day.

Kids play area: Don’t underestimate the importance of children’s playtime. It may look like leisure time, but when children are playing house, fighting imaginary dragons or organizing a game of hopscotch, they’re actually developing crucial life skills — and preparing their brains for the challenges of adulthood.

Sports facilities like lawn tennis, cricket practice net, basketball court, etc.:Sports stress on the positive effects of participative learning, the important life skills of goal setting and time management combined with enjoyment; the development of a strong sense of morality; and appreciation of diversity.

Skating ring: Skating is a great way to participate in a fitness activity that benefits both your body and your mind.

Jogging tracks: Jogging is a popular form of physical activity. Regular running builds strong bones, improves cardiovascular fitness and helps to maintain a healthy weight.

Landscaped parks: You may find stress relief and healing when interacting with nature. Plants lower blood pressure, reduce muscle tension related to stress, improve attention and reduce feelings of fear and anger or aggression.

What is Pre-EMI interest? What mode should I choose to pay my home loan?

Posted on January 21, 2015 by Anukampa

Pre-EMI is the interest portion on the disbursed loan amount that you pay until the full disbursal is done. i.e., your home loan behaves like an interest-only loan on the disbursed amount until the completion of construction. Your EMI payments start after the pre-EMI phase. Until then, your money does not reduce even a paisa of the outstanding loan amount.

Now you may wonder which is a better course to take while making loan repayments – EMI or Pre-EMIs?

The selection of full EMI repayment mode is deemed as beneficial in the longer run as borrower of the loan starts paying the principal amount from day one itself. So, in this case the total outstanding principal amount by the time the property is taken possession of, is reduced manifolds. However, in case project completion gets delayed, loan borrower may end up paying more than the principal loan amount even before getting possession of the property.

So, in all EMI mode can result in hefty payouts on the part of the borrower as he pays the interest amount during the loan tenure in addition to the term before the final disbursement of the loan. However, Pre-EMI may turn out to be a better loan repayment mode in case the homebuyer wishes to sell the property soon after getting the possession.

Things you should know about Pre-EMI home loan repayment mode:

Though pre-EMIs seem to be less burdensome at first as only the interest component on the loan amount disbursed is required to be paid until the final loan amount disbursement, it results in more number of payouts. In contrast, opting of full EMI mode results in lower tenure with the decrease in principal amount.

Pre-EMI interest amount paid when the property was under-construction does not qualifies for tax deduction with respect to the principal amount repaid. However, loan repayment either in pre-EMI mode or EMI in taxation terms is treated without much difference and in fact tax deductions are only allowed on the interest paid post the completion of the project. The interest amount paid is divided into five equal proportions and allowed for tax deduction once the project is completed.

Thus, before choosing the mode of home loan repayment, you must consider your purpose of buying the property, expected time for project completion and taxation factors.

What is a Home Loan? Can I apply for it?

Posted on January 7, 2015 by Anukampa

Home Loan is a secured loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower fails to pay back the loan, the banker can retrieve the lent money by selling the property.

If you are planning to buy your own house, it may be a good idea to apply for a home loan, rather than trying to arrange the entire purchase amount at once. It is also a good way of tax planning. And if you’re wondering whether or not you’re eligible for a home loan, please go through the following guides. Please note that the guide is only for assistance and may not be absolutely exhaustive, as criteria may differ slightly from one financial organisation to another.

Any adult individual with a source of income can apply for a Home Loan, if he/she meets the criteria of the Banking Financial Corporation / Non Banking Financial Corporation norms and eligibility criteria of the same.

You may NOT meet the criteria for getting a Home Loan if any of the following is true:

Suite filed or written off cases reported in the Credit Information Report [CIR]. This is indicated in the ‘Account Status’ section of your CIR.
Payment history trend – if there has been any default or amount overdue. This is indicated in the ‘Days Past Due’ [DPD] field of your CIR.
Company profile where you work – the banks generally have an approved list to whom they extend loan / credit card.
EMI to Income ratio: if your current total EMI exceeds your monthly salary by more than 50% then chances of getting a loan are reduced.

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