Home Loan schemes with an overdraft option helps save time & money

If you are thinking of taking a home loan and are confident of generating a surplus every month after paying the regular EMI, you can opt for loan schemes with an overdraft facility that not only cut interest payments significantly, but also reduce the loan tenure. State Bank of India, Standard Chartered Bank, HSBC and Central Bank of India offer such home loan products.

Under the scheme, as a home loan borrower, you can deposit any surplus that you have into the home loan account, though you retain the option of withdrawing the sum, if required. By depositing an amount higher than your EMI, you save on interest outgo. The principal amount on which the loan interest is calculated is the outstanding principal minus the savings deposited in the Smart Home account every month, over and above the EMI.

THE ADVANTAGES

Essentially, such home loan schemes work like current accounts with an overdraft limit. They also let the borrower maintain liquidity of his or her savings because the surplus funds parked in the current account are available for daily banking transactions.

Keeping any surplus in loan accounts is of greater value than investing in fixed deposits. This is more tax-efficient as interest saved via such schemes is not taxable, whereas the income earned is. If the excess funds were to be invested in interest bearing instruments, the interest earned would attract income tax and the effective rate of earning would be much lower. In fact, even if you are already servicing a regular home loan, you could look at switching to banks that offer overdraft-linked home loan schemes. The effective rate of interest will certainly be lower compared to the conventional home loan products.


THE COSTS

The main drawbac
k of such schemes is the higher interest rate—up to 25 basis points— compared to a regular home loan. Also, the product may not work favorably if you don't use the account for regular transactions. You should ensure that your routine banking transactions are carried out via this account. Maintaining a balance that is equal to 2-3 EMIs will also help deliver the results.

DOES IT SUIT YOU?

Such schemes may particularly appeal to double-income families who are in a relatively comfortable financial position. It's best to evaluate the terms and conditions of the schemes and, more importantly, assess your future income and savings. You need to ascertain whether your budget will allow you to make the most of the scheme's feature to offset higher interest rate of around 25 basis points that these schemes carry.

Borrowers who have surplus funds to park in the account, over and above the monthly EMI, should consider this product favourably since the savings on net monthly interest payments would justify the additional premium they pay for this feature. If you are servicing a regular home loan and plan to switch to such schemes, you need to carry out a cost-benefit analysis to ascertain whether a simple prepayment would be cheaper.



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Thane Scripts a New Realty Tale

Due to great infrastructural facilities and availability of open spaces and excellent connectivity the micro-markets of Thane are turning into realty hotspots

Thane has risen on the realty map of Mumbai in a very short span of time. Sunita and Vishal Khare, who are software consultants and have been living in a rented apartment at Chembur for the last four years, are among the new generation of buyers who now no longer want to stay on rent and instead wish to buy their own home in Thane. When they contacted a local real estate agent, they told him specifically to search for a flat in Thane and even if it is a re-sale flat, they are completely fine with it. Vishal explains, "If we are going for a resale property in a good area, we know the property titles are clear. The necessary social infrastructure is ready and we would not have to struggle every day for our daily necessities. Besides, Thane has emerged as a destination where residential development is complemented with strong infrastructure and improving connectivity. Hence, we want to invest in this area."

Manohar Bapat, a local broker in the area says, "For the last three years, the market had been sluggish in Thane. In this period, there were many buildings ready for possesion, which were available but there were not many buyers. Due to enroachment of private forest land and other clearance issues, home buyers were looking at areas that were 'popular' and wherein the buildings had a clear municipal title."


But now the scenario is gradually changing with buyers opting for areas, which were earlier considered `far flung' due to the improving social infrastructure and connectivity. According to Ramesh Nair, COO business and international director, JLL India, "Thane's residential property market has the unique advantage of being able to cater to almost every income group. Many areas in Thane like Vasant Vihar, Ghodbunder Road, Majiwada and Waghbil have become key attractions for buyers. But some of its newly emergent locations also show clear signs of superior town planning, very likely induced by learnings from other markets like Navi Mumbai. Today, Thane has clearly defined precincts for the upper-middle class of home-buyers. Thanks to intelligent land purchasing and planning, some of the major developers are now able to launch large integrated residential projects, which offer a lot more than just baseline amenities and facilities. Thane's excellent connectivity to Mumbai by road and rail has also helped boost its overall stature and desirability in the realty market."

Ateev Gala, executive director, Vijay Group agrees, "Thane Municipal Corporation (TMC) and the government bodies have planned many new infrastructural projects as well for improving the connectivity of the area with the rest of the city. The approvals have also come in and both, the developers as well governing bodies, are working to make Thane a self-sufficient city. The upcoming metro project, an improving railway connectivity and the growing IT and commercial space, have boosted Thane's realty quotient." Also, after the Kapurbawdi fly over has become operational, it has considerably reduced traffic congestion in this region. The proposed monorail, which will connect Thane to the western suburbs in its next phase, is yet another major draw for this location.

Sachin Mirani, director, Squarefeet Group, says, "Thane is attracting the attention of home-buyers as well as developers alike. In the near future, affordably priced properties in Thane will experience a steady rise in rates. In addition to all this, Thane is also endowed with multiple renowned schools, multi- specialty hospitals, shopping malls, avenues for recreation and enter-tainment, fine dining restaurants and eateries within an easy reach. While this area remains among the more affordable ones around Mumbai, there will be a steady rise in rates as development catches up with planning and existing supply getting absorbed by the buyers." But many buyers who have invested in the area in the last five years, also caution that before anybody makes a purchase, it's important they exercise due diligence by checking the documents thoroughly and making sure the area has strong infrastructure and connectivity. James Joseph, who bought a 2-BHK flat in Majiwada, four years ago, says, "Till date, we are facing a lot of problems due to an irregular supply of water. Besides, our area is not as well connected too to the railways station as compared to other areas. Hence, it's important that the authorities should look into all these problems before giving the permission for new buildings."

Talking about the popular areas in Thane, Shailesh Puranik, managing director, Puranik Group says, "At present, it is the Ghodbunder Road, which has become one of the most favourite destinations among home-buyers in view of excellent connectivity and infrastructure facilities it enjoys although nothing can take away from the GETTY IMAGES fact that it has taken a lot of years and efforts on part of both, the government and the developers, for the area to become live able."

But for most of the realty experts, even the upcoming areas of Thane, are going to give better returns, provided the area has good infrastructure. Vikram Kotnis, founder and managing director, Amura Marketing Technologies says, "Thane, as a destination, has definitely picked up, given the rates and the infrastructure being developed there. Hence, I am sure, in the coming time, besides the 'current favourite' localities, the remaining areas will also do well and attract the attention of buyers and developers alike."'


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6 Facts you Should know about Joint Home Loan

Home buying is both an overwhelming and a satisfying decision. It is enabled by home loans in most cases, unlike earlier days where people used to save money for years before they bought a home. Your home loan eligibility can go up substantially if it is a joint home loan, which might help you in buying a bigger or better house. We tell you all you need to know about joint home loans.

Home loan eligibility is not the only benefit of taking home loan with your family member. There are a number of other benefits and some limitations as well on borrowing money together. Since there is not much material available on this subject, we have put together a fact sheet on taking a joint home loan.

Following are the 6 most important facts of joint home loans:

    Co-Applicants: What is the definition of Co-applicant? This is the most common question one asks. A co-applicant is the person who jointly takes a loan along with you. It is important to understand the difference between a co-applicant and a co-owner. A co-owner includes all the owners of the property. Banks insist that all co-owners be necessarily co-applicants. Hence, all co-applicants may not be co-owners but all co-owners have to necessarily be co-applicants. A co-applicant can be your spouse, parent, sibling or child.
 
    Paperwork: In case of a joint home loan, both the applicants have to submit all documents required for processing the loan such as, copy of Permanent Account Number (PAN), address proof, income proof, bank statements and documents relating to the property.

     Loan eligibility: Increase in the loan eligibility is one of the biggest benefits of a joint home loan. The lenders will consider the income of all the applicants thereby, increasing the loan eligibility value.

     Repayment liability: When you are a co-applicant, the lender also makes you liable to repay the loan amount. So, the responsibility of repaying the loan is also on the shoulder of the co-applicant. If one of the borrowers fail to pay, the responsibility of footing the equated monthly installment (EMI) automatically shifts to the other borrower.

      Tax benefits: When you are equally responsible for repaying the loan, it is but logical that you get to enjoy the tax benefits as well. Under Section 80C of the Income Tax Act (IT-Act), a home loan borrower is eligible for tax benefit of the principal re-payment of up to Rs 1 lakh and Rs 1.5 lakh of interest re-payment under Section 24 of the same act. In case of a joint home loan, both applicants are eligible to enjoy these benefits proportionate to the extent of contribution towards re-payment.
  
    Cibil score: This is the most important part where you are considering higher loan eligibility as the main reason of availing a joint home loan. If all the applicants in a joint home loan have a good Cibil score, then it is a cake walk to get the loan approval. If one of the applicants has a bad Cibil score then the lenders do not consider his/her income to increase eligibility, but the lenders do make exceptions in certain cases. Considering the income of a person who has a bad Cibil score is completely at the discretion of the lender.

So, it is important to understand that joint home loans do come with a great deal of benefits along with proportionate liabilities. So if you want to enhance your loan eligibility, approach your blood relatives but make sure you have a clear strategy to repay the higher loan amount on time.



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Tax Benefit Linked to Possession of House

As if the mental harassment of delayed delivery of a house is not bad enough, you could also be losing 85% of the tax benefit on your home loan, for no fault of yours. A tax deduction of Rs 2 lakh per year is allowed against payment of interest on home loans, if the house is acquired within three years of taking the loan.

In case the possession happens after three years, the permissible deduction falls to just Rs 30,000 a year -a reduction of 85%.

In the past couple of years most home deliveries have been delayed beyond three years from time of purchase, making the buyers ineligible for the tax deduction-a fact they would have not known at the time of taking the home loan.

Given the stress in the real estate sector, most builders are now committing deliveries after four years of booking, so home buyers lose out on a big chunk of the potential tax deduction. For people in the top income tax bracket of 30% (annual taxable income of Rs 5 lakh or more) the benefit resulting from this provision will drop from Rs 60,000 to Rs 9,000 a year.

On a home loan of Rs 50 lakh taken at 9% interest for 20 years the total loss through the entire repayment period will be Rs 8.81 lakh.

The three-year possession condition was introduced to expedite construction of projects. The deduction limit was raised from Rs 1.5 lakh to Rs 2 lakh in 2014-15.

The income tax department must address the issue in a way that home loan takers are not disqualified from availing of the benefit for no fault of theirs.

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THANE: Realty Hostpot among Buyers and Bevelopers

One of the Most lucrative spaces on the real estate map, Thane, has risen as a realty hostpot among buyers and developers alike over the years.

New projects in downtown Mumbai are close to saturation point and have been observing a space crunch, causing the growth in the mainland towards the northern and eastern directions, thus creating the 'up-town phenomenon'. The migration of aspiring job seekers into Mumbai, growing nuclear families, better lifestyle, connectivity, newer locations offering business op-portunities, an increased affordability and an availability of home loans are creating a huge demand for residential and commercial properties, thereby pushing the growth of areas like Thane and Dombivli-Karjat region.

Thane is hence, growing to be the uptown of Mumbai, In recent times, it has been an attractive destination in terms of infrastructure support and growth prospects. Rightly priced property prices, project facilities and a supporting infrastructure provide an advantage to the real estate here. Currently, Thane has a favourable social infrastructure and connectivity, thanks to the presence of some of the finest developers with a successful track record in this region. Proposed infrastructure plans and their timely execution will place Thane, as a case study, in real estate development of MMR.

As far as residential projects and their consumers are concerned in India, especially in Mumbai, they demand holistic products, which can cater to the ever growing demands of all family members. It is all about providing amenities such as a clubhouse to spend quality time; swimming pool to rejuvenate from the stressed and fast paced life of Mumbai; senior citizen - friendly areas so that they also have their much needed space; a play area for kids and crèches to make sure they are taken care of a well equipped gymnasium and multi- sports facilities to stay fit; hobby rooms to engage in personal passion, etc. Thane can provide all the above mentioned amenities within your residential projects as well as within a small radius of your home and that too, at a much acceptable price point. In Mumbai, where affordability of owning your dream home is getting dearer, it is of utmost importance to pick the right location and project.

Today, Thane is encompassing the luxury element of downtown Mumbai on one side and smart sized apartments on the other side; i.e. studio, compact 1 and 2 BHKs and smart 3 BHKs in Thane.



Neral is also being touted as the ‘next Badlapur’ owing to the infrastructure development. Vikram Gadekar, owner, Sree Vriddhi Properties says, “While much of the development in Badlapur happened because of Ambernath and proximity to Thane, Neral is a close beneficiary owing to its proximity to Badlapur. Despite the fact that Vangani and Shelu are closer to Badlapur, infrastructure development is hinting at Neral as the next beneficiary.”

The increase in office space demand in Thane and nearby locations has led to a walk-to-work concept and reduced travel time in a major way. Thane is also endowed with multiple renowned schools, multi-specialty hospitals, temples, shopping malls, avenues for recreation and entertainments, fine dining restaurants and eateries within the easy reach of the people.

The topography also provides for fresh and non-polluting air-quality, especially in the region like Ghodbunder Road, which is surrounded by natural greenery of Sanjay Gandhi National Park on one side and the flowing Vasai Creek and Ulhas River on the other. The planned infrastructure of the city keeps away the dumping grounds, pollution and thrash areas to ensure freshness in the air levels all the time. Moreover, Thane has over 33 lakes, which provides for additional items on your weekend places-to-visit list.

Speaking about connectivity; Thane enjoys superb connectivity to Navi Mumbai as well as to the eastern and western suburbs of Mumbai via the Ghodbunder Road. With the onset of various intersections like JVLR, SCLR, Eastern Freeway, NH-8, Mumbai-Nashik Highway and the Thane-Belapur Road, Thane forms the central hub to reach any where within 30-40 minutes. Besides the central harbour rail line, Thane-Panvel rail line and the central railways connect Thane to Mumbai's railway network very well. Future connectivity plans include the proposed Wadala-Kasarvadavli Metro rail that would run along the Ghodbunder Road with more than 10 halts within Thane itself. Other infrastructural developments on the cards include the construction of the Borivali- Tiku-ji-ni-wadi Tunnel, Ovala- Chena Freeway, Thane-Diva Road, the fly-over at Bhiwandi bypass, metro-3 project to Kalyan and also the waterfront development to connect Vasai and Gaimukh Creek.

To support the growth of this sector, the government is also giving tax rebates on housing loans, interest exemptions and fastening the process of approvals and sanctions. To sum it all, Thane the emerging uptown of Mumbai, is now catering to all demands from MIG housing to super luxury projects with major realty brands launching huge projects, thus making it a realty hub. Today, it is the most desirable, self-sustainable and environment friendly destination of the city.



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Infrastructure push unlocks land in Thane, beyond

Thane’s development from a neglected corridor to a developing micro market is of interest to investors. Enhanced connectivity, development prospects, translating city development plans into reality, possible inclusion of some areas within the municipal corporation limits and affordability are some of the reasons that are drawing potential buyers to Thane.

Danish Bhagat, director, New Sky Infrarealty Marketing Pvt Ltd says, “With the Panvel-Bhimashankar-Chakan Highway, the distance between Mumbai to Karjat would be reduced by 21 km. As for the Neral-Badlapur Highway, commuters from Karjat to Khopoli or Pune would be benefitted. Meanwhile, Karjat also awaits a multi-disciplinary university, a project by a renowned business magnate.”


Affan Ansari, a local realtor in Thane informs, “Majiwada Junction Flyover facilitates cutting across the busiest routes of Thane. Strategically planned, commuters from Mumbai would have easy access to Kalyan. Similarly, this flyover which is already half operational, facilitates to and fro connectivity to Mumbai, Nashik and other areas where most economic drivers are.” So, whether you are working in Borivili, Malad or Mulund, the three flyovers planned here are getting developed in phases and assist travel.

Thane’s most active residential pocket is Ghodbunder Road catering to both commercial and residential development with many new projects under construction. Connectivity to Eastern and Western Express Highways in Mumbai has been a determinant.

At the foothills of the Sahyadris and close to Matheran is Neral. To add to the modest price of property here is the good climate of the region. “Matheran and areas close by have tourism potential and a lot of investors eye this area for a second home. The social fabric is decently sufficient to cater to the needs of the population,” says a local realtor.

Neral is also being touted as the ‘next Badlapur’ owing to the infrastructure development. Vikram Gadekar, owner, Sree Vriddhi Properties says, “While much of the development in Badlapur happened because of Ambernath and proximity to Thane, Neral is a close beneficiary owing to its proximity to Badlapur. Despite the fact that Vangani and Shelu are closer to Badlapur, infrastructure development is hinting at Neral as the next beneficiary.”

Neral is under Gram Panchayat but awaits inclusion within the corporation limits as local realtors anticipate Neral’s population to grow to afford the eligibility.

Titawala, under the Kalyan Dombivli Municipal Corporation (KDMC), is seeing rapid development owing to its tourism potential and the efforts of local authorities. RK Sonawane, Commissioner, KDMC says, “Efforts are in the right direction to make concretised roads, provide adequate water supply, monitor underground drainage and develop infrastructure.”

“As for West Kalyan, housing demand has been sizeable and the area is rapidly developing,” adds Sonawane.

KDMC’s City Development Plan (CDP) could also be an encouragement to prospective buyers. The CDP launched in the year 2007-08 lists the Towala lake renovation project in Titawala as well as the need to equip the area with better physical and social infrastructure as it is a religious tourism destination where pilgrims converge from all over Maharashtra. Water treatment plants, supply of potable water and underground drainage are also looked into.

Subhash Patil of Subhash Patil and Associates, consultant and co-ordinator, CDP, confirms, “All the projects highlighted in the CDP have either been completed or are in progress.”

Five years ago, Murbad and Shahapur’s real estate was stark different. Arun Pawar of Savvy Realtors and Investment Consultants, says that more developers launching their projects here, availability of clear title plots, region’s potential because of proximity to NH-3 as well as to the Delhi Mumbai Industrial Corridor (MIDC) is a clear hint of the progress.

This industrial area has four dams and is a major source of water supply to areas in Mumbai. Thus, it has been declared as a no-chemical zone, informs Pawar.

All the aforementioned areas have adequate water and electricity supply as well as basic social fabric. Consequently, the local workforce and investors from Mumbai and Pune are equally interested in properties here. Trend watchers believe that with rapid development, property prices may go up soon. Make the most of this time!


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Make your bedroom interesting with some fun decor elements

A comfortable bed, teamed with nice looking cushions, an attractive bedside hurry laid interestingly on the floor and freely flowing sheer curtains is a very picturesque visual. Sometimes these elements over a period of time tend to become monotonous. Keeping the relaxed aura of the bedroom in mind, a few modifications can add a whole new dimension to this space.

Unusual ideas and out of the box thoughts can convert your bedroom into a fun space-a place where you would look forward to spending an entire day; a place where you not only get to relax and retire to, but also feel enthusiastic about. Many homes keep a workstation in one of the bedroom corners. This works well if you are working from home. You can be motivated and more productive in an interesting spot in your home without being workaholic at the same time.



Furnishing
Having a canopy bed can make your bedroom look romantic and playful. Use bright colours like orange, purple and leaf green with subtlety whether it is the paint on the walls or the furnishings. A bedspread with bold prints adds vividness to the overall personality of the room. You can also get cushion covers printed with your face portraits making hilarious gestures. Make your bedroom look starry at night by decorating the windows with glow at dark curtains or even get the ceiling painted with a glowing solar system for a pinch of drama. An artificial tree could run through from the ceiling to the floor and its false branches can be used to place a telephone or hang a lamp, a wall artifact to add that feeling of unusualness to a bedside table.

Furniture
You can conceal your bedroom television behind a long sliding door and cover outer surface with an eye-catching poster of your favourite rock star or band. A collapsible window that opens on the inside as well as outside and rolls up can be interesting. The carpet or the wall to wall vinyl cover for the floor can be a fun work of art. Contemporary wall clocks with uncommon designs are another good idea.


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