Guidance for first time home buyers

Tips for buying the first home

Following tips will help first time home buyers to take a decision when buying the first dream home or apartment or first real estate: -

a) Compare the prices in the area in which you are going to buy a home or house. First compare and check then take the final decision. Comparison may be done online with the help of web sites.
b) Decide the kind of property or house you will purchase depending on the prices that how much you may afford as per the price level exists.
c) Determine the cost and expenses associated with viz. documentation, taxes and insurances. The maintenance cost should also be considered depending on the locality.
d) Budgeting and planning is the most important thing that means the cost of the house should be within the budget and the amount should never cross maximum budget.
e) Consult reputed real estate agent before taking a decision to have a solid picture of the market situations.
f) Regarding loans and finance the wise decision is to be taken to find out the suitable lender. Regarding type of lending along with rate of interest, easily repayable EMI play a vital role in taking decision.

Before buying a apartment or real estate whatever may be always go for online searching because it will save your valuable time and effort. The reliable site will provide you various necessary info in your fingertips without wastage of valuable time and money.

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Eco-friendly Green House

Eco friendly Green House How to build it?

Eco friendly green house is very much appreciable concept because of the threat of glabal pollution and warming. Global pollution poses a health hazard worldwide and we are always alarming against the pollution and its harmful effects on health. Eco friendly houses are fully free from pollution and very much good for health and as well as mind because its natural impact it creates on health and mind. The Eco friendly houses are made of materials derived from nature and all are natural that poses no health hazards at all. Eco friendly concept is very much comfortable as well as economic in nature. The material costs less and thus saves money. 

The main criteria for the building of Eco Friendly Houses: -

Selecting materials 

Purchase materials  locally and as per requirements so that no materials get unused and thus avoid the excessive wastage of materials and money. All materials should be natural and sustainable.

Solar Panel

Solar panel must be selected and installed in place of regular electricity.

Insulation

The house should be well insulated that the energy may be utilized efficiently and energy efficient equipments must be used.

Water saving devices and Eco friendly paints

 Use water saving devices on bathrooms and eco friendly paints for painting.

Eco friendly housing plan

 Purchase always the architect designed eco friendly house plan which is environment friendly and energy efficient.

 

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A Comprehensive Guide to Home Loans

What is Home Loan?

A Home Loan is the amount of money borrowed for the purpose of purchasing a residential property or apartment. Your home loan is secured against the property that you buy. This means that in case you are not able to repay the loan amount along with specified interest, the lending bank will have the right to seize the property or house.

Two main points to be considered for taking a Housing Loan: -
a) Amount of principal

b) Rate of interest

The principal is the amount of loan the lending bank or financial institutions provide to the buyers. The principal depends on the following points: -
1) The income of the borrower
2) The repayment capacity of the borrower
3) The value of the house property or apartment the borrower is going to purchase


Interest rates are of two types viz. Fixed rate of interest and Floating rate of interest. In fixed rate the interest becomes same throughout the repayment period. Floating rate the interest changes depending on the market situations.

Main features to be considered of Housing Loan: -
a) Availability of loans means loan amount is given by the bank or financial institutions for ready flats, property under construction or residential property of which the construction will be starting very shortly.

b) Loans are available for both salaried persons and as well as self employed.

c) Flexibility of repayment options and period of repayment.

d) Easy EMI and favourable interest rates.

e) Documents transferability that means if the borrower would like to change the lender the existing documents may easily be transferred.

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Real Estate Investment

Features of real estate investment: -

The following points are to be considered

Protection from inflationary trends

Real estate investment provides the buyers a very good protection against inflation.In this regard it is like Gold, in that usually real estate retains its intrinsic value. However, the buyer may earn and enjoy a very comfortable stream of income from the property as rental income. As per price level and cost of living index one may revise the rent from time to time and thus retaining the purchasing power of the money besides a very good benefit of capital appreciation.

Diversified investments
There are different types of real estate and property investments. Various avenues are open and the investors may choose as per their own choice, where one may invest and get a maximum return on investment. The most common and as well as popular choice is the Residential property or flat or condo ville now-a-days. Others may include Commercial property, industrial property, warehouses, leased property etc. The ROI on various sectors are also different.

Cost of maintenance

The maintenance cost is a very important criterion when one invests in property, it is likely that the annual maintenance costs viz. repairing and maintenance and the occasional capital expenditure to upgrade the property every  year. Investments in financial instruments has no such maintenance cost.

Taxation planning

Purchasing real estate tax saving is a very important schemes worldwide. Governments of different countries offer various tax incentives or subsidies for real estate buyers which may be availed successfully. Regarding residential estate or apartments government offers various schemes to encourage buyers from time to time. It is found that various tax subsidies are offered by the government most commonly in terms of residential purchases.

Investment related matters

When it comes to the process of making a real estate investment there are a few things that one must consider

1. Cost towards transaction: When one buys or sells property, there are many incidental costs viz. brokerage, cost of stamp duty, registration fees, tax liability in case of capital gains. All these expenses add a material amount to the purchase price or selling price of the investment.
2. No Easy Liquidity:  Investments like stocks, shares or FDs may be readily converted into cash as compared to real estate which is not easily liquidable. Real estate  takes time to convert it into cash.
3. Preference of Cash: Property investments are always the cleanest because of the cash versus cheque component property dealings.Generally clean transactions viz cash or demand draft which is as good as cash is preferred. No preference of documents transfers on the basis of subject to realization.

Following criterion must be considered before dealing or investment in real estate: -

a) Locational preference of the property
b) Clarity of the documents relating to the property
c) Reputation of dealers or developers and quality of constructions
d) Measurement of the property viz carpet area and other facilities etc.
e) Approval and license of the overall projects
f) Finally the Payment terms and conditions

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