Are You Buying a Property?
That really depends on person to person. Ideally, you must visit as many homes as it takes to help you and your family feel satisfied to choose the one you finally settle upon. On average, buyers in the market generally see an average of 15 homes before choosing one. Just be sure to clearly communicate with your real estate agent about your preferences, likes and dislikes so that precise homes matching your preferences can be shown to you thereby saving time and effort on both sides.
Part from comparing the homes that you are in the process of shortlisting with your ideal minimum criteria and wish lists, you should also consider the following check points: Is there enough room for the present and the future as your family grows? Are there enough bedrooms and bathrooms? Is the home pleasant, airy and has ample natural light? Do the pre-installed mechanical and electronics systems and appliances work? Do you like the floor plan? Will your furniture fit in the space? Is there enough storage space for all your needs? Imagine the home in day and night, in good and bad weather. Will you feel happy and secure inside round the year? Are the property related legal documents clean and clear? Have you done due diligence on the property? Carefully consider each and every home that you inspect and ask your real estate agent to highlight the pros and cons of each home from a professional and legal standpoint.
Built-up Area: The entire area of the floor – the carpet area, walls, lobbies, corridors, atrium areas, and basement. It is advisable to cross-check with respective builders/agents the specific meaning of these terms, for colloquially the term may include varying components across different cities in India. Carpet Area: The usable area within the walls – that is, the area in which you can actually lay a carpet. Super Built up Area: This refers to the entire area of the building which includes the carpet area, lobbies and corridors, walls, lifts, staircases basements, and other atrium and utility areas. It is advisable to cross-check with respective builders/agents the specific meaning of these terms. This is because like the built-up area, colloquially, different components make up a super area in different cities across India.
Loan Related FAQs
Any Indian Resident, Non-resident Indian or Person of Indian Origin can apply for a Home Loans if they are 21 years of age at the origin of the loan and 65 years or below at loan maturity. Housing Finance Companies (HFCs) usually give Home Loans for properties located in India to people who are employed or self-employed, with a regular source of income.
An individual can apply for a Home Loans even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house.
Loan eligibility is calculated based on the ability to repay. Factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.
Most HFCs offer a fixed rate as well as the variable rate options to customers.
On the basis of the principal at the start of every month, the interest is calculated in monthly rest. For annual rest, this is done at the beginning of every year.
Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure.
A guarantor is insisted on by the HFC so as to ensure that the loan is paid back in full and in time. The guarantor is responsible for the repayment of the loan if the borrower is unable to do so.
Generally, the amount is up to 2.5 times your gross annual income. But your equated monthly installments usually should not exceed 35 percent of your gross monthly income. Besides this, HFCs will assess your eligibility based on your ability to repay.
Yes. You are eligible for certain exemptions on both the principal and interest components of the loan as per the Income Tax Act, 1961. The principal repayment of the loan up to Rs 10,000 is eligible for a rebate @ 20 percent U/s 88 of the IT Act. The income tax exemption limit for interest paid on housing loans is Rs 75,000 per annum on self-occupied houses. Therefore an interest payment of up to Rs 6,250 per month can be deducted from taxable income in arriving at the total income tax payment of an individual.
Yes, these loans are available from some HFCs. However, the loan terms may be different from the usual housing loans.