Buying a house is like completing a huge responsibility and if it comes as smooth as it can then, it is cherry on the top of the ice-cream. Every step you move into buying a house, you feel the heat and keeps you awake at night. But when you are armed with all the information and document and you are aware of the basic real estate terms, then you can land up in the safe zone.
DOCUMENTS NEEDED TO BUY A FLAT
Builders may promote flats without getting approvals and may get the approval in due course. Check whether he has got all the approvals.
1 TITLE DEED, MOTHER DEEDS OR PARENT DOCUMENT:
Get this document and check it for his right to sell the property. If he has any minor children, or if is an ancestral property then you may face problem in the future. He should have a No objection certificate to sell the property on behalf of the minors.
2 GOVERNMENT APPROVED PLAN:
Make sure that the builder has got the approval for building the flat. If he has started the constructions then make sure that the approval building layout is same and there is no deviation in the house or flats. If there is deviation then it will create problems in the future
3 PROPERTY TAX RECEIPTS:
Get the copy of the property tax paid by the owner. If it is ambiguous, then enquire this issue with the corporation office or the municipal office. The property tax should be updated till date and for at least 10 years.
4 SALE AGREEMENTS:
Get the sale agreement between yourself and builder
5 COMMENCEMENT CERTIFICATE:
Usually given by the municipal or corporation authority for the commencement of the construction of the property; it is mandatory for builder to have one, if not, it is illegal.
6 NO ENCUMBRANCE CERTIFICATE:
It is a certificate to make sure that the property which he is going to sell you as a flat is not mortgaged for loan.
7 COMPLETION CERTIFICATE:
It is document given by the municipality or corporation to make sure that the construction is complete and without any deviation.
8 OCCUPATION CERTIFICATE:
It is issued by the municipal and corporation that you have legal electricity connections, water supply and sewage connections for you flat.
9 NO OBJECTION CERTIFICATE: by the land owner for change in electricity bill
Remember for getting loan from the bank you have to produce another set of document. These are:
1 Two passport size photograph, PAN card and employee ID
2 Residential proof address: Ration card, Adhaar card, voter ID
3 Last four months salary slip. Some banks ask for 6 months salary slip
4 Appointment letter from the present organisation and relieving order if your present employment is less those 3 years
5 Form 16 for last two years
6 Bank statements for past 6 months
7 One cheque from salary account as processing fee
Two passport size photo and PAN card details
DOCUMENTS NEEDED FOR BUYING A PLOT
Planning to buy a plot to build a house of your choice is a good idea. The documents that are needed are
1 Mother document
2 Sale deed
3 Encumbrance certificate
4 Tax receipt tax paid by the owner of the land
5 Plan layout and
6 Sale agreements between you and the seller
Hope this blog helps you and do share with us your suggestions
Is it a mirage? or is it real?, and current scenario from the experts
Metropolitan cities in India are fast becoming a hub of industrial parks, high rises, residential complexes, sprawling malls and huge commercial complexes, which are gradually but steadily transforming their skyline. If you are commuting on the busy and packed streets of Delhi, Mumbai, Bangalore, Hyderabad, Kolkata or any other tier I city, you will come across brightly colored cranes, rubble, construction and hordes of workers scurrying up and down the towering skyscrapers. This surely urges you to contemplate on the explosion of real estate sector in India.
Is it a mirage?
How real is the influx of investments by speculative and long-term profit makers? Are the commitments by oversized private equity firms, overseas investors and domestic financial institutions adding to the hype and frenzy created in the concrete world of real estate?
Astute watchers in the property sector feel that the bubble is not as big as it seems. According to prominent investors, brokerage firms and property developers, there are certain factors which are failing to add the right tempering to the real estate markets in India.
It is quite evident that the funds brought in by the foreign investors are only a small percentage of the promised amounts.
Price resistance from real estate purchasers and the soaring prices of land are cutting deeply into the investor’s margins, making real estate ventures less lucrative than expected.
Bureaucratic lethargy coupled with red tape, opaqueness in regulations and the absence of insurance title prove to be other concerns for real estate investors.
According to reports by Cushman and Wakefield, there has been a 15 per cent drop in the valuation of private equity deals in the first nine months of 2012. Their observations are based on the following:
Investors are putting their money in residential deals rather than commercial ones.
PE players are showing an increasing preference towards the metros rather than class II cities in the hope of better liquidity and higher returns.
The investments are being made on the basis of the assumption that real estate prices will not change in the near future.
Investors are looking towards projects which have all approvals and licences in place and are expected to have short cycles. The assurance of quick and stable returns is guiding their purchase and investment decisions.
They are also having a greater say in the prices of projects. This is decreasing the scope for automatic price correction or defining of prices by the developers.
The current situation is raising fears of an overheated economy and real estate bubble. This has inspired the central banks to initiate a lender cutback on the amounts sanctioned for real estate loans. The act has caused an upward escalation in the rates of interest and lowered the attractiveness of home financing for consumers. As a result, the cost of home and office rentals along with their purchase price has ended up touching unprecedented heights.
So where does this scenario leave the investors and property purchasers?
A majority of Indian real estate companies are privately held and do not disclose their financial health to investors and buyers. The inability to read the right signals in the absence of readily available information on products such as retail outlets, industrial property, residential apartments and offices is causing grave concerns in the minds of the investors.
Rumors related to the misfiring of a large deal or reports of distress sales by prominent property developers is further adding to the confusion in investor sentiments.
The prices of property in the Indian markets are being stoked by the following factors:
Numerous speculative deals taking place in the hope of making faster and better gains
The rising cost of construction with respect to raw material, labor and other costs
An unexpected hike in the excise prices
Increase in service tax rates
The escalation in land prices
The present scenario in the Indian real estate markets is raising concerns with regard to future profit margins for foreign investors. Contrary to the figures in the past two years, when increasing valuation in property yielded returns as high as 30-40% on investments, the expected returns in the days to come are not expected to go higher than 15-20%.
Foreign investors are now looking towards other emerging markets such as those of Latin America and Eastern Europe.
According to analysts, this is a good time for purchasing real estate intended for long-term investment and end use. The cyclical nature of the markets is expected to push up the residential property rates in the next three years. If the investment horizon is greater than this period then it makes good business sense to invest in property in metros and other fast developing cities.
The decision to purchase property in the emerging areas should be backed by a complete analysis of the demand-supply forecasts and infrastructure plans for the region. As far as capital appreciation and rental yields are concerned, mid-range houses are expected to provide better returns than luxury apartments or premium property purchased at discounted prices.
Among the top real estate investment destination in India, Chennai has witnessed an increase in housing prices gradually.
Radhakrishnan, former all India president of Builders’ Association of India (BAI) says South Chennai real estate market sees a major growth than any other part of the city. Witnessing this, Medavakkam and Pallikaranai in south Chennai are turned out to be a happening place in the city. By 2012 to 2017 Pallikarani will be expecting a rise of 93%, whereas Medavakkam is expected around 103% says the report.
Adding value to this Fair Pro 2013, organized by Confederation of Real Estate Developers’ Association of India (CREDAI) is been held on February 22 – 24, 2013 at Chennai showcasing 250 projects by 70 builders ranging from Rs 10 lakhs to 10 crore. Individuals all over the city participated had participating in this event & more that 50,000 visitors had visited this 3 day event.
With all the eyes on the 2013 budget it has failed to live up the expectation of the realty sector but it provides some benefit for the first time home buyers. Finance minister P Chidambaram’s incentive to the first time home buyer with reduction of Rs 1 lakh for first home loans upto Rs 25 Lakhs. In addition to this he also announced the additional tax deduction that can be carried forward to the next year by the first time home loan borrower if in case the limit is not exhausted in the present year. This is another added advantage for the first time home buyers.
Due to the increase in the real estate prices people are in the situation of buying a home from a reputed builders or build their own homes. But unfortunately all of them don’t have enough funds to move next step. In that case, the first option for them will be getting a home loan. Not everyone will be successful in it; there might be a few cases where these loan can be rejected. So today we thought of discussing about an important issue “Rejection of home loan and how to overcome from it”.
Reasons behind home loan rejection & how to overcome from it
Applicant residential address on the defaulter list:
There are chances that home loan can be rejected if the applicant address is been listed in the defaulter list either for loan repayment or credit card dues and that has been reported to CIBIL.
This problem arises not because of the applicant, maybe because of the person who lives in the same address before him/her. So in that case discuss the issue with the relationship manager and try to bring the attention that the applicant is not related to the applicant no more. In case the defaulter happens to be a family member, then the applicant has to stress that the defaulter is not dependent of the applicant.
Applicant profile doesn’t fit into the banks policy:
Every bank has its own internal policies. Suppose say some geographic locations & credit profile is listed in bank’s policy guidelines on negative lending. In that case there are high possibility of your loan is getting rejected.
Discuss with the bank officials and provide security is any other forms like Fixed Deposits, collateral securities etc. Also assure the bank about the repayment ability.
If the applicant loan has been rejected before:
If the applicants loans has been in rejected list with the bank, then there are chances that they may blindly reject loan to you the second time. Take out the loan proposal and review it and the bank might have told you the reason. try to fulfill any irregularities and short coming in the load proposal. Discuss with your well wisher, ask advice and opinion. You can also take tips and suggestion from experts in that field
How to Choose a luxury or budget home builders in Chennai? If this is the question arises in your mind then you have to make sure that you read this article because it has some good guidelines and tips to choose the right builders to invest your money for a comfort future.
Every creature in the world wants their own house. In some cases the problem arises if they don’t have enough funds and in very few cases the problem arise in finding the right home builders.
Who to choose?
At present the city is now having plenty of home builders, lots of current & upcoming projects, so people are a bit confused about whom to choose and which property to opt in. Here are some basic tips to identify the right one. Lets dive straight into the tips.
1. Research – The first and the foremost thing to do is take some time to research about the builders and their projects. If you are looking for an elegant home then you have to choose a luxury builders or else if you are looking for a budget homes you have to choose the builder to suit all your needs. At present the best way to research is to go online. So that you can see reviews either it may a good or bad about the builders or the projects you choose.
And also take some time to walk straightaway to meet the builders or else the projects. So this will give your some idea on whether to buy it or not.
2. Think about referrals – Referrals are the great way to go with. Asking your friends, relatives or colleagues is a great way to choose the home builder or the projects.
3. Compare the price quotes – Since you are spending plenty of money you should make a smart move before purchasing. After researching and referrals just pick 2 – 3 builders/projects that suits all your needs. Compare those prices and go with the right one.
I hope these guidelines and tips will help you for a better and comfort future.
And if you a buyer then click here to know more about a luxury projects in OMR.