Home is where the loan is

The real estate industry today has seen a huge change as far as the attitude of the buyer is concerned. Today's buyers are more informed and aware and carefully retain other's experiences in their mind so as to extract a lesson from it later. But, even so, the irony is that too many smart people are buying homes and still having problems. Sometimes, it's the quantum of readable material available that is confusing in itself. Want an upper hand when applying for a home loan? Believe it or not, just revisit your basics. 

1. Impact of loan on your personal finance: With the new cash out flows there's bound to be a dent, so you'll need a brand new monthly budget in place. 

2. Know your maximum loan eligibility: Some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income. Do your research here. 

3. Check your CIBIL score: A score above 700 gets home loans easily. The Credit Information Bureau India Ltd (CIBIL) provides a credit score on a scale of 300 to 900 based on your current financial stability, loans existing, card usage, etc. 

4. Co-application: If you want a loan amount higher than what's offered, having a co-applicant with his/her own source of income helps and also make sense from a taxation perspective with each applicant being able to avail the tax benefit available on interest payment of an EMI. 

5. Tenure: Shorter tenures mean greater EMI burden, but your loan is repaid faster. What you would pay as interest over the term of your loan would be substantially lower. 

6. Type of interest rate: The type of interest rate you choose has an impact on the monthly EMIs you pay. It is important that you know the difference between fixed rate home loan and floating rate home loan. 

7. Pre-payment and foreclosure charges: Sometimes, pre-payment of loans may require you to pay a penalty. Do your research well so that there's flexibility if you can close your loan earlier. 

8. Loan Options: Banks generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home Loans. The EMI of a floating rate loan changes with changes in market interest rates. 

9. Take cover: A life insurance plan that covers the re-payment of loan in the event of an unfortunate death of the borrower can at least help the family retain their home. 

10. Loan transfers: Old customers have higher rates of interest while the new ones have lower rates. So, over time the good deal turns into a sour deal. So the cost of switching is always high. 

11. Implications of delayed payments: Try to clear your EMIs in time because once you are declared a defaulter or your credit history turns bad, and taking any kind of loan in the future may be an issue. 

12. Read the documents carefully before you sign: Check the documents to ensure that the terms are same as what you negotiated and agreed upon. Don’t let the bunch of home loan documents bog you down and just sign on the dotted lines. 

Buying a home is an important personal finance decision for every individual. Before applying for a home loan and paying your processing fee, make sure you analyze the above aspects to get a satisfying and smooth deal

SARE: Three awards and still counting

We are truly excited to announce the top honours we won recently at the Realty Plus Excellence Awards 2013! Our maiden luxury project ‘The Grand’ in Gurgaon was awarded ‘Residential Property of the Year - North Zone’, while our Ghaziabad property 'Crescent ParC - SpringView Heights' was awarded ‘Integrated Township of the Year – North Zone’ and that's not all. Our Chennai property in OMR ‘Expandable Villas’ won the ‘Residential Property of the Year – South Zone’ award. 

The Grand is the newest phase of our 65-acre integrated township in Sector 92, Gurgaon. It offers centrally air-conditioned 3BHK and 4BHK apartments equipped with sophisticated individual zone-control (VRV System). The project has several world-class amenities including an 18,000 sq. ft. 5-star luxury lobby. Just step in and you will be greeted by two breathtaking 23-storey high atriums, elegant reception areas with billiards tables, landscaped sit outs with a coffee shop and many more thoughtful conveniences. The Grand also houses Gurgaon’s largest and finest residential club, called The SARE Club, measuring 35,000 sq. ft. 

Springview Heights is spread across an 88.35-acre integrated township called SARE Crescent ParC on NH-24 in Ghaziabad. Its unique features include six towers with seven clubs, of which each tower has its own club. There is also one common club and a central park on a 10-feet-high beautifully-landscaped elevated podium, complete with a Sky Lounge Terrace and entertainment features that offer a first-of-its-kind indulgent experience! 

This GDA-approved township is in an advanced stage of construction and habitation. Families are living happily in phase-1, with phase-2 being ready for possession soon, and construction in full swing at phase-3. The leading facility management company Jones Lang LaSalle (JLL) has been appointed to manage the project. 

Our 112-acre Expandable Villas project in Chennai enables homeowners to add additional living space at a later stage as per their convenience. The Crescent ParC township at Chennai’s Old Mahabalipuram Road not only caters to lifestyle needs of prospective homeowners, it also maximizes the value of their investments. 

On winning the awards, Mr David Walker, Executive Director, SARE Homes, said, “We are very pleased that our first project in the luxury space has been recognised on such a prestigious platform. The fact that as a national-level FDI developer of quality community housing projects, our efforts have been acknowledged, comes as a bonus.” 

“For a customer-centric company such as SARE Homes, these awards will go a long way to encourage us to realise the lifestyle dreams of our customers,” said Mr. Vineet Relia, Chief Operating Officer, SARE Homes.

Gold or real estate? Flip a coin

A popular term in Hindi; Roti, Kapda aur Makaan, translates as food, clothing and a house, the bare essentials for survival. While an average person toils and moils all year round so provide these for his family, the focus has shifted ever since the recent dip in gold rates. It has been a couple of years since share market enthusiasts have drifted and found their way to gold and real estate. 

Having said that, one questions whether the returns given by these safer investments are likely to sustain. If gold rates have seen a 20% decrease, are real estate prices also likely to plummet? Is there any correlation between gold and real estate prices? According to a survey by Karvy, there is. Their results of the Hong Kong market said real estate index and gold prices have 81% correlation. 

The Indian market has a similar story for the year 2012-13.

Builders and developers are coming up with new, affordable schemes to lure people into making purchases. Jewellers are known to tempt people into investing in gold by predicting a rapid rise in rates in the near future. In fact, when gold rates decline, people are known to sell their real estate investments in order to invest in gold!

So if you have not purchased a home yet and are waiting for that moment that rates see a fall, there is no guarantee that it may happen merely because gold rates have fallen and you may only hope for it to be true. One may argue that real estate prices may not go down considering land is limited after all but its demand is not. Gold on the other hand is not as limited as land for sure and is an international commodity so it's rate is more likely to keep fluctuating. Land prices may stagnate at the most but not fall.

However, all these are debatable but the fact of the matter remains that people wait for a trigger to make them invest in either gold or real estate. One can work as a trigger for the other but will we be able to predict that? At least for now we can be delighted to not be forced to choose between food and clothing.

The promise of a strong recovery for the residential market: 2013

Has the thought of owning a home, been dinner table fodder for years? Incessant cafeteria chatter or off the cuff remarks, about a dream home still being a distant dream?

Well! 2013 seems to be the game changer for the desi home owner and India to witness, a strong recovery on the residential real estate.

The optimistic outcomes via the government’s instigated policies on Real Estate Regulation, have strongly been recommended and implemented in giving the realty sector, industrial status -which is truly commendable.

With some price discounting and lower interest and mortgage rates futher down by (25-75bps) all thanks to the RBI, the pace of new launches have picked up, across key markets and with this trend most likely to run successfully and sustain, well into the next few quarters will lead to sharp recovery in volumes coming off a very low base.

JP Morgan believes this trend will allow an easier system of liquidity, with the expected cuts in policy rates ahead, further emphasizing discounts, rate cuts, lower unit sizes that are a sure clincher for affordability levels going high into 2013.

Knight Frank India’s, shared perspective on the performance and future of the residential market share across the 6 major metros offers some valuable insights.

Delhi NCR: A distinct supply increase from new sectors opening in Gurgaon, Noida and Greater Noida continue to lead the market, while a controlled supply check of the quantum of unsold inventory will make and keep the NCR market stable.

Mumbai: Mumbai’s phenomenal property price hikes and downward diving sales volumes, clubbed by a stagnant job scenario have affected sales momentum adversely. This muted account, will increase shares around its peripheral markets.

Bengaluru: A steady supply coupled by stable absorption continues to lead the overall residential market. Being an end user driven market, Bengaluru ensures a healthy growth for 2013.

Pune: Drawing the IT/ITeS with the manufacturing sector and a host of NRIs, Pune continues to gain maximum traction in the residential space, going forward a marginal drop in new launches could stagnate prices, as supply overhang decreases. Pune still boast of luxury budget homes as something special.

Hyderabad & Chennai: IT/ITeS driven residential demands are expected to stabilize in both cities, with absorption to be well maintained with maximum traction seen in West Chennai & West Hyderabad. Both continue to grow exponentially.

The Silver lining for those who missed the boat last year, both developers & consumers, 2013 starts with a fresh beginning with something for everyone and offers a window of opportunity for those anxious to move into their dream home.

SARE Homes launches The Grand in Sec 92, Gurgaon

We have been known to provide quality community housing at strategic locations in India and are now all set to offer a grand 5-star lifestyle with the launch of 'The Grand' in Sector 92, Gurgaon.

Developed as part of the newest phase of its mature 65-acre integrated township SARE Crescent ParC, The Grand consists of 23-floors of elegance in the form of 3-&-4 BHK air-conditioned apartments, with opulent lobbies, concierge services and grand terrace balconies that are perfect for hosting quintessential parties.

Available in sizes ranging between 1,853 and 2,280 sq. ft, all apartments at The Grand are centrally air-conditioned and equipped with sophisticated individual zone-control (VRV System). These apartments are priced in the range of Rs 97 lakh – 1.19 crore.

Step into the world class amenities at The Grand, which offers an 18,000 sq. ft. 5-star luxury lobby, with two 23-storey high atriums, elegant reception areas with billiards tables, landscaped sit-outs, a coffee shop and several other thoughtful conveniences including kids entertainment options.

Residents can unwind in the serenity of The Grand’s 25,000 sq. ft. rooftop terrace which offers facilities including a relaxation deck, jogging track, herbal garden, star- gazing observatory and meditation centre.

While the basic sale price of these apartments is Rs 5,650 per sq ft, we are offering an inaugural discount of Rs 400 per sq ft. You can also look forward to a milestone-linked payment arrangement at The Grand, that's an indication of our commitment to strictly adhere to delivery deadlines.

As per the milestone linked payment plan, you will require to pay only 20 per cent of the sale price at the time of booking apartments. This will amount to Rs 12.5 lakh for a 3- BHK apartment and Rs 15 lakh for a 4-BHK apartment.

Mr David Walker, Executive Director, SARE Homes assures, “At SARE, we are fully focussed on developing homes that offer our customers a distinctive lifestyle and make their dreams into reality when they start living here. The homes are designed to match the lifestyle needs of modern home buyers, provide them with the latest conveniences and amenities, by which they can truly experience a luxurious style of living.”

One of the most exclusive features of The Grand is that it will be home to Gurgaon’s largest and finest Residential Club, spanning 35,000 sq. ft. It will offer you luxuries such as a party/Banquet Hall and Party Lawn and a pre-function area as well as stellar amenities - creche for resident’s children, a cafeteria on the ground floor, a restobar, cards room and library on the first floor, a state-of-the-art gymnasium, indoor heated swimming pool, outdoor swimming pool with kids pool, squash court, billiards & table tennis room, 2 outdoor badminton courts, an outdoor lawn tennis court, a skating rink and an amphitheater.

Strategically located at the Gurgaon growth corridor, the township is a part of the NCR - home to multinational IT/ITES, automobile and manufacturing companies. You will enjoy superior connectivity to Delhi via the Expressway, Metro, Rail and Bus services. The Grand will adjoin the proposed mega SEZ in NCR and you will have convenient access to an arterial 60-meter wide road. What's more, you will be just a 40-minute drive from the IGI Airport. The project is also situated at close proximity to the Dwarka and KMP Expressways as well as industrial hubs such as IMT, Manesar.

The Grand will present you a global lifestyle consisting of uninterrupted power supply, 24x7 multi-level security, wide and well lit inroads, landscaped paths, shopping, educational and medical facilities and several other modern amenities for your ultimate satisfaction.

Our Take on Budget 2013

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units.

According to David Walker, Executive Director, SARE Home, "The announcement of National Housing Bank (NHB) setting up a Urban Housing Fund, tax sops for first housing loan of Rs 25 lakh and provision of an additional Rs 1 lakh rebate in addition to the existing Rs 1.5 lakh rebate will help to revive the demand for housing stock.

The allocation of Rs 2000 crore for housing in the urban areas appears to be on the lower side considering that the estimated shortage of housing units is placed at more than 18 million units. Provision of Rs 6,000 crores in the rural areas would certainly result in more permanent constructions.

The budget move to levy 1% TDS on properties above Rs 50 lakh would prove to be a major burden for both developers as well as customers especially in the metropolitan cities like Delhi and Mumbai and their outskirts as even small apartments in these areas cost more. High interest rates and soaring land prices have been the major resistance factors in reviving the demand for housing stock and the budget could have announced a few long term steps aimed at improving the supply of land and reducing interest rates."

What newly weds need to look for while buying a house

It is quite common to see a newlywed buying a house since it is usually the first decision on the financial aspect that both partners will take together. Searching for a new home has a lot of aspects associated with it. The earning potential of the married couple, their financial  stability and situation along with their future family plans are crucial when deciding to buy a new home.

A systematic plan has to be laid before venturing out to look for a new home. Valuable advice and tips regarding buying a house will be available when you take some effort to contact the professionals of this field. There are some important considerations and salient features to be looked for in the process. So, take interest in going through the below factors before making the final decision. After all it’s a big decision for all of us!

* Setting an affordable budget for home buying is a factor that plays a crucial role. It depends on related factors such as home loan approval, savings, financial situation, debts, income tax and many other points. The price range that is ideal for both the members have to be considered and chosen. The availability of cash to do the down payment also matters when laying your budget for house purchase.

* The launch of a new home search has to be done after getting all your finances in the best possible order. The financial viability can be affected by various aspects such as credit report errors, income tax returns and so on. Discrepancies in all matters have to be erased before home search activities.

* Making the right choice of the house and location is of prime importance. Home interiors can be done based on your preferences but once a house is chosen to be bought, the location cannot be changed as and when we require. Think many times before selecting the house.

* Hire professionals to get the house inspected for aspects such as the integrity of the structure, security of the location, environment and surrounding, worthiness of the project and related factors.

Having all your priorities met as per your preferences, go ahead and buy your own home with lots of confidence and happiness. The joy of living in your own house can boost you to perform extremely well in many aspects of life. Get that dream house and start your new life in a brand new atmosphere.