When do home loan EMI payments start?

 

Taking a home loan to finance your housing dreams is a common practice across India.

Loans provide you with the money required to own property in your name.

While some pay the amount upfront, others remove home loans as a means to finance their dreams.

Once one decides to take a home loan, a common query that arises is knowing the tenure of repayment and its commencement date.

Typically, lenders offer a grace period known as the moratorium period before the EMI payments begin. Borrowers are not required to pay any amount in this period.

The moratorium period varies from three to six months and depends on factors such as the borrower’s profile, the lender’s policy, and the loan amount.

Once the moratorium period ends, the lender is required to start paying the EMIs before the due date each month. Each EMI comprises of a part of the principal amount taken as loan in addition to the interest payable on your loan.

While the EMI amount remains unchanged, the composition of the same varies throughout the duration of the loan. During the initial period, the interest payment component is higher and closer to the completion of the loan tenure, the the principal repayment component of your EMI is higher.

EMIs on home loans are affected by the tenure of the loan taken. Simply said, the longer the loan tenure, the lesser the EMI to be paid. A longer duration of a home loan allows you to pay your monthly EMIs without it being a burden on you. Whereas a shorter tenure helps you pay off your loan faster with lesser interest being accrued.

Banks typically offer a loan amortization schedule that helps you analyse and prepare your loan repayment schedule to ensure a seamless loan repayment. So to effectively repay your home loan, borrowers should be aware of their monthly repayment capacity in order to determine an ideal loan tenure.

In conclusion, a housing loan has several benefits and drawbacks, however based on your credit standing capacity one can choose the right loan amount and amoritisation schedule suitable to them. To know more, visit https://www.joyvillehomes.com/ today.

Originally Published at - https://industryupdates.medium.com/when-do-home-loan-emi-payments-start-d3f21aac3ee8

What is 2.5 bhk?

 

2.5 & 3 BHK at Parkwest 2.0, Binnypete, Bangalore

In today’s day and age, home owners are constantly on the lookout for houses that offer them the best returns on their investment — by evaluating the space and comfort that they receive for the property being offered to them.

While homes traditionally offered 1, 2, 3 or 4 rooms, consumers with specific needs and requirements gradually created demand for an innovative concept in real estate — an additional 0.5 BHK in homes.

A 2.5 BHK, as the name suggests, offers more than just 2 rooms. The 0.5 in this scenario indicates that the bedroom is of a smaller size than a regular one. This kind of a set-up usually offers a standard size above 950 sq. ft with substantially more room than a 2 BHK.

This arrangement is gradually becoming popular amongst nuclear families in times of rising costs of living. Additionally, homeowners looking for increased free space in their homes as opposed to cramped living spaces prefer a 2.5 BHK as it makes a significant difference in their rent and overall living expenditures.

But what are the key considerations for homeowners looking for a 2.5 BHK?

Room space offered: 2.5 BHK homes provide an ideal blend of spaciousness and utility based living. While the 2 rooms offered have room space comparable to a 2 BHK, the additional 0.5 offered provides added value and utility to nuclear families.

Value for money: Purchasing a flat involves several considerations, with one of the predominant factors being the cost involved. For those who have a fixed budget and don’t want to compromise on the space, a 2.5 BHK serves as an ideal fit for their requirements.

Resale value: If one is looking to purchase a flat with the intention of re-selling it, then a 2.5 BHK will provide a higher resale value in the future. Here, the additional space being offered provides the seller with a higher negotiating power during resale

The quest for an ideal home requires one to evaluate their needs correctly thereby helping one reach the conclusion regarding the number of rooms required.

While a 2 BHK may work for some, a 2.5 BHK also offers considerable advantages from a home owner and investment perspective. Explore all your options with Shapoorji Pallonji, visit shapoorjipallonji.com today.

Originally Published at - 

https://industryupdates.medium.com/what-is-2-5-bhk-ee8a9319a61d

Pre-EMI vs Full EMI: What’s the difference?

 

Loans have become indispensable for financing significant purchases, whether for a home, a car, or education. They offer you an opportunity to alleviate your financial constraints and help you realize your aspirations.

To those who are new to the world of real estate, navigating through complex financial terminologies can be daunting. However, the right guidance helps you finance your dream home better and turn it into a reality.

Loans and their repayment is usually undertaken in Equated Monthly Installments (EMIs). These EMIs can be disbursed in the form of pre-EMI or full EMI.

Therefore, understanding the difference between pre-EMI and full EMI is essential.

What is Pre-EMI?

Pre-EMI, short for Pre-Equated Monthly Installment, is a repayment option provided by some lenders during the construction phase of a property. Under pre-EMI, one pays only the interest component on the disbursed loan amount until the property’s construction is complete. As the construction progresses, the interest is calculated on the disbursed amount and the pre-EMI amount remains lower than the full EMI.

What is Full EMI?

On the other hand, full EMI is the regular Equated Monthly Installment comprising the principal amount and the interest on the loan. Unlike pre-EMI, full EMI begins after the entire loan amount is disbursed to you. It includes repayment of the principal amount and interest and the EMI amount is generally higher than the pre-EMI.

Differences between pre-EMI and full EMI

Loan Disbursement

Pre-EMI: The loan disbursement occurs in parts, staggered as per the construction progress of the property. Hence, one only pays interest on the amount disbursed.

Full EMI: The entire loan amount is immediately disbursed, and your EMI starts with the first repayment.

Initial Repayment Amount

Pre-EMI: During the initial period, one only pays the interest on the disbursed loan amount, resulting in lower monthly payments than full EMI.

Full EMI: Here, one pays both the principal amount and the interest, leading to higher monthly payments than pre-EMI.

Total Interest Paid

Pre-EMI: As the interest amount is not paid off initially, this repayment method results in payment of a slightly higher interest amount.

Full EMI: As the principal and interest are paid from the start, the overall interest paid could be lower than pre-EMI.

Key points one must consider before opting for pre-EMI or full EMI:

Construction Status of Property

If you are buying a property that is still under construction, pre-EMI may be a viable option to ease your financial burden until the possession is granted.

Buying Motive

If you intend to purchase the property for resale or rent after possession, then full EMI loan repayment is beneficial as it reduces the overall interest paid.

Short-term vs. Long-term Perspective

Analyze your long-term financial goals and commitments. If you have other major expenses planned shortly, pre-EMI might provide temporary relief until you are financially prepared for higher EMI payments.

All in all, determining your EMI repayment option is essential for the efficient and timely disbursal of payments. Hence, one should choose a payment format that is most suitable and convenient after carefully assessing all the parameters.

For further details on EMI options for your dream home, visit https://shapoorjirealestate.com/ today.

Originally Published at - https://industryupdates.medium.com/pre-emi-vs-full-emi-whats-the-difference-c3a8a7715065

10 Things Must Do After Buying Your Dream House

 

Buying a house is a dream come true for many. It might be on the list of resolutions you have for this year or might have been there for many years. But when you finally invest in a residential property, there are quite a few more things to do to ensure the complete transfer of ownership of the residence in your name.

We will look at six things you should do after buying a house. Let’s look at each of them briefly.

1. Make sure all your documents are in place.

After moving into your new home, ensure all original documents related to your purchase are with you and stored in a safe place. One of the first things you should do is check the Title deed and verify it thoroughly. Then double-check this. This is important because any change in the Sale deed requires an endorsement, which has to be signed by the previous owner.

Have a checklist of the documents and ensure you obtain them if you still do not have them.

Here’s a sample checklist for your reference:

• Title deed
• Encumbrance Certificate
• Patta / Khatta / Mutation (Certificate/Extract)
• Property tax receipts
• Utility bills
• Occupancy certificate
• RR/RTC
• Allotment letter

2. Transfer all utility bills to your name.

The next step would be to change the name on the light, water, and other bills registered at your address to your name. It would require an NOC from the previous owner. Ensure that correct details are updated, as changes are cumbersome and exhausting.

3. Update property tax records for the house in your name.

Registration and revenue are separate departments. Hence you should update your name as soon as you move into a new home. The process of updating revenue records is often tedious and manual, but you should get it done as fast as you can.

4. Submit your sale deed to your society or welfare association.

Get your name updated as a member, and request a share certificate issued in your name as soon as you buy a new home.

5. Set up insurance and maintenance.

Insuring your new home against risks isn’t a bad idea. It saves you from the trouble that may come in the future. You should also set up proper maintenance services like house help, a cook, or any other services you might require from the start.

6. Check if you need to file ITR returns.

Usually, if you purchase a new home, you do not have to declare it in the ITR. However, if your annual income surpasses ₹50 lakh after taxes, then you need to declare assets and liabilities, including new properties purchased.

Whether you’re looking for your dream home or your next investment, Shapoorji Pallonji, one of the finest real estate developers in India, has projects that scale with premiums and convenience.

To learn more about Shapoorji Pallonji Real Estate, visit https://shapoorjirealestate.com/

Originally Published at - https://industryupdates.medium.com/10-things-must-do-after-buying-your-dream-house-3c5c87ce133b

Understanding Real Estate Terms and Jargon

 

Buying a house is a dream for many individuals. I’m sure it is one of the many things you’ve hoped to check off your bucket list. Sometimes, this dream also gets confusing.

Often, we get confused because we don’t know what the different processes and jargon that gets thrown around by the ‘experts’ of the real estate industry even mean. Not fully grasping something while striving hard to get it can be difficult and frustrating.

Here, we will list a comprehensive set of terms commonly used in the Indian real estate sector so that you can be prepared when an agent or a real estate company tries to confuse you between carpet area and built-up area, for example.

Here are some real estate terms that you must know:

Area

The area is the unit of land measurement. It is measured in acres, square feet, or square meters.

Allottee

An allottee is a person allotted a piece of land or property, usually by a government body/authority or a project developer.

Apartment

An apartment is an independent property sold to buyers that may include one or more rooms, usually a part of a multi-storeyed building with other facilities and amenities.

Appreciation

Appreciation is an increase in the value of a property due to changes in market value.

Assessed valuation

Assessed valuation is the value that a taxing authority places on a property to determine the taxation value of the said property.

Beneficiary

The person/institution designated to receive an income from a trust/estate/deed of trust.

Built-up area

The built-up area is the entire floor area that includes walls, lobbies, corridors, basements, and some common areas with the carpet area. Different regulatory bodies in different cities might have their built-up areas. As a buyer, you need to know what is included when the developer or authority measures the built-up area.

Carpet area

The usable area of an apartment, not including the wall thickness, is called the carpet area. The name means an area where you can place a carpet.

Completion certificate

More commonly known as Occupation Certificate (OC), this document is issued by a municipal corporation to a real estate developer. It is a document acknowledging that the developer has completed the project following proper formalities and approvals.

Central Business District

Central Business Districts or CBDs are commercial areas such as employment hubs and their immediate vicinity near many large corporate entities, retail outlets, and financial institutions.

Collateral

An asset, like a car or home, that guarantees the repayment of a loan.

Down payment

Down payment is usually paid by the buyer after the lending company has issued a loan of about 80–85% of the value of the property.

Depreciation

Depreciation is a decline in the value of a property due to ageing, physical deterioration, economic imbalance, etc.

EMI

EMIs are Equated Monthly Installments used to pay back the loans issued by financiers.

Fixed Rate of Interest

This rate of interest remains fixed throughout the loan.

Floating Rate of Interest

This kind of rate on a loan may fluctuate depending on the lending rate fixed by the Reserve Bank of India. This rate changes yearly but can happen as frequently as once in six months. The floating rates are adjusted according to the Prime Lending Rate. If the PLR falls, the customer benefits and vice versa.

Lease

A lease is a sum of money paid to the landlords at the beginning of the tenure and is repaid without interest when the tenure ends.

Lock in

Lockin is a written agreement which guarantees the buyer a fixed interest rate if the loan is closed in a fixed amount of time. The agreement also mentions the number of points to be paid in closing.

Mortgage

A mortgage is a type of loan where the borrower agrees to pay back the lender within a fixed period during which the property is the collateral.

Maintenance Charges

Maintenance Charges are charged by societies on homeowners, including security fees, maintaining complex structures, and contributions towards new investments and requirements.

Market value

Market value is the price of the property in an open market. A lot of factors, including demand, supply, quality, and other offerings, affect the market value of a property.

No Objection Certificate (NOC)

NOC is a certificate issued by the local authority to state that it has no objection to the commencement of construction. It states that the plans are in order, approvals are taken, and guidelines and rules are set and in force.

Possession letter

A possession letter is given by the developer to the customer to confirm that the property is completed and ready to be handed over to the customer to be moved into.

Pre-payment

Pre-payment involves the paying off of the loan before the tenure is over. A usual fee is charged, depending on lenders, for the pre-payment to happen.

Registration Charges

Registration Charges are issued to register a legal title under your name. It takes place in the sub-register’s office in a local court.

Super built-up area

The super built-up area includes everything mentioned in the ‘built-up area’ with a share of all the common areas proportionately divided among all unit owners.

Sale deed

The sale deed is essential in transferring the ownership of a property in exchange for a price paid. This document has to be registered.

Stamp Duty

Stamp Duty is a percentage of transaction value levied on every registered sale by the State Government. It ranges from 5–14%, depending on the state.

Tehsildar

A Tehsildar is a revenue authority or officer who collects revenue from a particular jurisdiction.

Tenant

A tenant is a person who is not the owner of the property but occupies it under specified terms and conditions for a specified period.

Title

The document provides legal backing that a person is the rightful property owner.

These are some terms you need to know when investing in real estate. In India, there has been a rapid increase in the demand for residential properties over the years.

Joyville Homes by Shapoorji Pallonji offers affordable housing projects in Hadapsar, Hinjawadi, Virar, Howrah, and Gurugram.

Visit — https://www.joyvillehomes.com/ today.

Originally Published at - https://medium.com/@industryupdates/understanding-real-estate-terms-and-jargon-b66faafa53fb

What is the difference between a flat, an apartment, and a house?

 

Words like house, flat, and apartment are often used interchangeably, in a manner of speaking, to refer to spaces of personal dwelling where people return to in order to refresh and rejuvenate after a day spent working and travelling.

While the actual unit one occupies depends on several factors, the most important being budget and geography, the terms themselves hold specific meanings when one is in the market for a home.

What is a flat?

Falling more on the affordable side, flats are common structures in bustling cities where home buyers/renters are looking for living spaces that offer standard features that cover basic needs. Usually occupying a single level, accommodations here can share several amenities like washrooms and laundry areas. ‘Flat’ is also more commonly used in countries speaking UK English.

What is an apartment?

Apartments can occupy a broad range of residences, affordable to both middle-income home buyers and renters to high-rise luxury apartments exclusive to high-net-worth individuals where amenities expand to private gyms, pools, luxury decks and more. They are individual units in multi storey set-ups. The word ‘apartment’ is more commonly used in the USA.

What is an independent house?

They refer to standalone housing units. It consists of a ground floor or one or more upper storeys. Typically, the most luxurious out of the three, an independent house comes with a bigger price tag where the biggest advantage is developing the architecture to suit your tastes and needs. Also called as villas, these luxury residences are found behind gated communities.

One of the biggest advantages that comes with living in a multi-unit dwelling like a flat or an apartment is the ability to share the maintenance cost of amenities like elevators, parking space, and security with the other residents of the apartment building. They can also provide a sense of community with apartment neighbors, as well as amenities like sports areas and gardens bringing residents together.

Taking out an insurance or a loan is easier for people seeking to live in flats and apartments as any damage to building property is covered by the society as a whole whereas individual home owners have to pay monthly premiums to safeguard their property. There are also pre-approved loans for flats and apartments whereas a stricter process is attached to seeking loans for individual properties.

Similarly, a flat or an apartment is relatively easier to sell as compared to houses as the selling price attached to it is often too high to be affordable to the general public. Ensuring security can also put a stain on one’s finances when it comes to independent house owners whereas for people living in residences, paying for security is a part of the monthly maintenance costs.

One is more likely to find independent houses as places of residence in semi-urban to rural areas whereas apartments and flats are relatively more common in cities.

To know more about luxurious residences in the heart of the city with state-of-the-art amenities, visit: https://shapoorjirealestate.com/

Originally Published at - https://industryupdates.medium.com/what-is-the-difference-between-a-flat-an-apartment-and-a-house-47defd566463