10 important factors to Consider-while-Buying-Your-First-Home

So, all set to buy a house? We all dream to own a house and it is considered as one big achievement in a person’s life. It is one of crucial and important financial decision that every goes through at least once in a lifetime. Landing in your own house from here would not be relaxing process, as it requires to find a house which is best for you and analyze carefully all the factors involved in making financial or non-financial decisions.

Here I am going to list down 10 important factors to consider while buying your first home.

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Do you have sufficient finances?

Buying a first home is not a single activity, there are many financial commitments that pops up as soon as you get into the deal. Decide carefully how much you are bound to spend on all the dependent requisites. You may either choose to finance your house or invest your savings to completely pay to purchase your house. Whatever the case, may the availability of liquid fund is import for all the following activities-

• - Making a down payment
• - Purchasing a housing insurance policy
• - Paying off monthly installments of mortgage
• - Spending on service charges and tax
• - Your hosing maintenance charges and miscellaneous costs
• - Keeping a small portion of buffer towards miscellaneous costs is important to avoid any last-minute surprises in your closing your deal.

Have you got a trustworthy real estate agent for your deal?

Real estate agents are those who are responsible for promoting, generating lead and informing prospective clients about the seller’s or builder’s property. They are offered brokerage and commissions for converting the deal. However, you would be approached by many agents who would claim to be reliable and trustworthy. Don’t just get carried away by their words and try to do some background verification from your end as well. Also, the important point is – never get agreed for paying commission or brokerage while buying your first home. Few, real estate agents may try to get the benefit from both the parties.

Have you identified the best mortgage products?

There are verities of mortgage products available in the market, few of them may suit best for your need and requirement. Look out for different kinds of products and offers and find which one involves lower cost and high flexibility to you. Since, mortgages are generally a long term commitments, we need should carefully decide as to which one has the best features as per our need and comfort.

Have you decided the location of new house?

Deciding the location of your new house is very important and involves lots of predictions. When you decide to build your house in a location, you are going to stay there for a longer period of time. Look for all the facilities and amenities that would accessible from your new house. The distance from schools, colleges, Hospitals, parks, retails stores, market and the traffic condition in the vicinity. Also, verify if your location of your new house is not flood prone or in danger of any natural or social threat. You can visit various real estate websites to find best location for your new house. Real estate can also help you solve any queries related to locations of new house.

Have any clue, how long you are going to stay in your new house?

Some people may choose to shift to different location for a job or for caring loved ones. However, if you know it earlier, you may plan your house accordingly. If you feel that you may have to change the location in near future, you can find a house which can appreciate faster with considerable amount of investment. You may park your luxurious needs for your next house after you decide to permanently settle down at one place.

Have you decided the category and features of house you need?

Modern houses have got lots of variants and features, a big kitchen with a dining hall or a garden in the backyard or the top floor of multistory building. What pleases you the most, is important to consider before you decide to while buying your home. List down all the features that you like to have in your house and then decide which one suites best in your budget.

Have you collected all your documents for mortgage application?

Before, getting into the final deal with an agent or the seller, arrange all the documents required to process your loan application. You can get the details on the list of required documents on the official website of the bank you are planning for the mortgage. Read all the terms and conditions of mortgage products by downloading e catalog or visiting the nearest branch. You may also contact the support services for any queries on the documents and mortgage products.

Have you reviewed your credit score for financing your house?

Credit score is an important factor to decide the approval or rejection of your mortgage application. As mortgages involves long term commitment and huge money, financial institutions look for anything between above average to good credit scores. It also depends on your credit report and your repayment history. You can easily find your credit score online through various credit score checking websites to get an idea on your current position. If you feel that your credit score is quite low to qualify for a mortgage, you may look for other financial institution who can rather offer you a loan at a slightly higher interest.

Are you comfortable with monthly EMI for your house?

Calculate your EMI online or visiting the branch, where you are planning to apply for mortgage. Various mortgage calculators and simulators allows you to reveal any hidden cost and derive overall interest, EMIs and overall approximate cost. You can also request to generate a dummy repayment schedule from your bank a analyze for each month how much you are paying towards interest and principal. These analyses will help you to identify and calculate all your financial commitments and you would free to change your decisions at this time.

Have you decided the financial institution or bank to apply for mortgage?

Deciding your lender is a very important factor for a successful mortgage process. You may get there through referrals to get an extra discount on the interest rates or processing fees. A typical mortgage product involves lot of components, which involves huge cost. Verify all these carefully and choose the best lender for your new house.

Also read: 4 Benefits of Married Couples Jointly Owning Property

To Buy Affordable House in Ghodbunder Road Thane,Contact - Squarefeet Group in Thane, On +91-22-25452903, 66543333 Or Email Us At - sales@squarefeetgroup.in

Source - www.thanksmoney.com

1 BHK, 2 BHK, 3 BHK – Which one to choose?

Many home buyers may think that with the exception of the size and the cost, there may not be much difference between a 1-BHK, a 2-BHK and a 3-BHK apartment. But in reality, there are several factors that differentiate the different unit sizes. This article will tell you about the advantages and the disadvantages between differently-sized apartments.

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Advantages of 1 BHK:

A 1-BHK apartment comes at a nominal price. Other than that, it is easy to maintain. This unit size is ideal for bachelors living alone. Even couples often chose such an apartment for the matter of convenience and budgetary constraints. A 1-BHK apartment is cozy and is ideal if one is in a moving job.

Disadvantages of 1 BHK:

It is difficult to find a 1-BHK unit in several societies, especially in big cities. At the same time, due to its space crunch, it can become difficult for some, especially families, to feel a sense of comfort in such apartments. Storage can also turnout to be a major hassle in such unit.

Advantages of 2 BHK:

This is the most commonly chosen unit size across cities. As per the latest Insite Report by 99acres.com (Apr-Jun 2015), 2BHK is the most supplied configuration in the top seven metros – Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata. Because of its popularity, this unit size is easily available in both small towns, as well as big cities. It is also the ideal unit size for couples. With the additional bedroom compared to a 1 BHK, storage issues can also be taken care of.

Disadvantages of 2 BHK:

Due to the high demand for this unit size, even if it is relatively nominal in price, it is not considered cost effective. Also, families may find it difficult to get comfortable as this unit size generally caters to couples and is slightly congested for three or more people living together.

Advantages of 3 BHK:

With sufficient space in a 3BHK unit, one does not have to worry about size issues. This is even true for the convenience of families living under one roof. This unit size, with three separate bedrooms, is in fact considered ideal for decent-sized families. Normally, two or more separate balconies with such units add to the charm and comfort of having sufficient personal space.

Disadvantages of 3 BHK:

This unit size with its sufficient space normally comes at an expensive price. In such a scenario, it is certainly not pocket-friendly for many people, including families. Also, because of ample space, maintenance of such an apartment can turn out to be a costly activity.

The decision of choosing the unit size is one of the the most critical ones. But one must make sure that instead of focusing on just one or two aspects, one looks at the overall picture and makes an informed decision.

Also read: 4 Benefits of Married Couples Jointly Owning Property

To Buy 1bhk 2bhk Property in Ghodbunder Road Thane,Contact - Squarefeet Group in Thane, On +91-22-25452903, 66543333 Or Email Us At - sales@squarefeetgroup.in

Source - www.99acres.com

4 Benefits of Married Couples Jointly Owning Property

July, 2019

Whether it’s tax benefits or hassle-free succession of assets, there are several advantages to jointly owning property

In addition to making an informed decision, property buyers are also working out the best mode of acquiring their immovable assets. Whether it’s choosing the best financing option for tax benefits or directly dealing with the seller to avoid brokerage, Indians are leaving no stone unturned. One such smart way is the decision to register the property jointly, with the spouse.

There are intangible benefits of joint registration of property like elevating the status of the wife in a patriarchal society, better bonding, long-term commitment, and trust between spouses. However, not many are aware of the financial advantages.

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Loan options for couples

The budget to purchase property is determined by the loan eligibility, which has a specific limit depending on the income. In case of a joint registration, spouses can opt for a joint home loan. It shares the debt burden between two people and paves the way for a higher loan amount as two incomes will be considered. A joint home loan can be obtained by an applicant along with their spouse, parents or siblings.

Tax benefits for co-borrowers

According to Suraj Nangia, partner, Nangia & Co., “From a taxation point of view, a joint home loan is beneficial to all co-borrowers who can claim a tax deduction of Rs 1.50 lakhs for principal repayment under Sec 80C and Rs 2 lakhs for interest payment under Sec 24. In the case of two or more people taking a joint home loan, each of them can enjoy tax benefits under the Income-tax Act, in respect of the principal and interest paid during a year, on proportionate basis.”

Under section 80C, each joint owner is allowed a deduction of Rs 1,50,000 for principal repayment. They can also claim deduction on the registration charges and stamp duty charges that they have paid for, with total deduction not exceeding Rs 1,50,000. Additionally, they can also apply for deduction of housing loan interest from house property income, up to Rs 2,00,000 each. However, the deduction should not exceed the interest.

Stamp duty benefits for women

Delhi, UP, Punjab, Haryana and Rajasthan, offer relaxations in stamp duty for women buyers. Punjab reduced the stamp duty charges from nine per cent to six per cent in 2017, for a limited period. It maintained that from April 1, 2019, urban areas would again invoke a stamp duty charge of nine per cent and the same would be six per cent in rural areas.

The stamp duty rate in Maharashtra, which was recently increased to six per cent from the previous five per cent, is uniform for both, men and women. However, the other states where stamp duty rates are lower for women include:

Note: List is not exhaustive – charges are indicative and subject to change.

Additionally, many banks such as SBI, HDFC, ICICI, etc., offer discounts on home loan interest rates to women as compared to men. This varies from bank to bank and goes up to nearly one per cent.

Succession of jointly-owned property

In the case of single ownership, transfer of property can be lengthy and time consuming. For instance, after the death of a New Delhi resident, his family members found that the flat they lived in, was solely owned by the deceased. The procedure to get the documents in the successor’s name involved excessive conformation to regulations and rules.

“Many people suggested shortcuts involving unethical practices. Finally, my sister took possession of the property after extensive paperwork, mental torture and time,” recounts the brother-in-law of the deceased.

If only the property was jointly owned, these hassles could have been avoided.

“Joint registration of property is always advisable as the spouse is always the successor. This will prevent unwarranted problems in the future after the demise of any person,”

Also read: How to use your provident fund to finance a home purchase

To Buy Upcoming Project in Ghodbunder Road Thane,Contact - Squarefeet Group in Thane, On +91-22-25452903, 66543333 Or Email Us At - sales@squarefeetgroup.in

Source - www.housing.com