Useful Tips for buying the property

[dinoo]

[dinoo]

Budget
Before you do any leg work you must ask yourself, " How much can I spend ?".

Depending your requirement and number of family members, you can decide on the living area and number of rooms, also depending on your preference and pocket you can decide between a flat and an independent house.

Flats have certain advantages like sharing of land cost and security and other common facilities cost , which can be divided among the members .On the other hand you have the advantage of modifying or constructing the independent house.

Figure out how much money you are willing to spend on house. Most of us would need to supplement with a loan. Calculate your income level and living expenses. Take into account your future considerations such as children, add-ons, amenities, fix-ups, rising income levels and so on. Also, budget for some exigencies.

You can use simple formula :

Income minus present lifestyle = potential mortgage payment.

Your home is certainly worth sacrificing a few spending habits but not worth mortgaging your entire future.

It is advisable that when you set a budget for buying a property, you reduce it by 20-25%. Typically, brokers will show you the properties, which are on outer limits of your budget and temptation to overshoot can be high, but please remember that there will be many leakages from your kitty along the way. There can be hidden costs and some unplanned expenses like cost for furnishing the house, some minor repairs etc.,

So, it is a good idea to work with a price lower than your limit because ultimate costs invariably tend to overshoot our estimates.

Once you are clear as to what you can afford , you can start visiting the prospective homes for evaluating them in detail.

[dinoo]

Registration and Agreement
It is always advisable to register the document(s) at the time of purchasing the immovable property. In some cases it is compulsory to register the document(s). Even in cases where it is not compulsory to register the document(s), registration of document(s) is advisable because

The title gets secured.

If you are looking forward for taking the loan in future from banks or other financial Institutions they will insist for the registered document(s).

If you propose to register the documents later, there is a possibility of the seller not Co-operating with you in signing the deed.
The certified original copy of the document(s) can be taken from the Registering Authority ,after completion of formalities.

Generally, the Registering Authorities insist upon the following information before registration.
1. Ward 2. Village 3. Taluk 4. Number. of floors 5.Built up area

The registering authorities insist that the area must be mentioned as built up area.
Now, let us see the difference between build up area, common area,plinth area and carpet area.
Common area: It is the area used by all persons in the building that includes corridors, steps, etc. It is divided among all the owners in proportion to the size of their flats.
Carpet Area: Actual area available for living that excludes the wall thickness.
Plinth Area: Carpet Area + Wall Thickness
Built up Area: Plinth Area + Common Area i.e. Carpet Area + Wall thickness + Common A

[dinoo]

Income Tax Concessions relevant to property purchase
Section 54; Reinvestment of house property- An individual or HUF reinvesting the net proceed of sale in another residential house is exempted from capital gains tax u/s 54, provided new house is purchased within 2 years after or one year prior to the date of transaction.

Section 88; repayment of the principal of a home loan upto Rs 20,000/- is eligible for deduction under Section 88 wherein 20% can deducted from the total amount of tax payable e.g. if any person is repaying the principal to the tune of Rs 20,000/, he will eligible for getting maximum tax benefit of Rs 4,000/.

Section 24(2); Interest on housing loan is permitted up as deductions maximum upto Rs 1,50,000/ from individual's income if it is self occupied for the interest paid for a home loan

[dinoo]

Housing Finance
There are variety of housing loans are available in the country offered by various banks and housing finance companies .Some of them are as follows.

Home purchase loan
Home construction loan
Home extension loan
Existing home improvement loan
Land purchase loan

Terms used in Housing Finance

EMI Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal

Floating Rate of interest Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up

Monthly Reducing balance In this system interest reduces monthly with repayment of Principal amount

Annual Reducing Balance In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back
Fixed rate of interest Rate of interest remains unchanged throughout the period of the loan

Processing charge It's a fee payable to the lender on applying for the loan

Prepayment Penalties When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment

Commitment Fee Some institution charge commitment fee in case the loan is not availed within a stipulated period ,after it is processed and sanctioned

Miscellaneous Cost It is quite possible that some lenders may charge documentation or consultant charges

[dinoo]

Vastushastra

In the above paragraphs, we have tried to cover important points on various aspects , before the making a buying decision. It would be unfair to the customers who are interested in Vastu, if we do not include some tips from Vastushastra.
The tips in this section are opinions only, which can vary with individual's perception /faith and belief.

The points suggested are no way exhaustive.For details, we suggest that you to take the help of an expert in Vastushastra.

The Word Vastu was derived from the word "Vaasthu" in Sanskrit, which stands for environment or surroundings.

Vastushastra is an ancient art and science on practices and principles on building a house ,which gives a harmonious balance between the man and nature.

The Principles of Vastushastra are based on Pancha Bhootas namely Earth, Fire, Water, Space and Air, gravitational and magnetic effects and influence of various Planets on life on Earth.

Anyone having belief in Vastu can take the advice from any Vastushrasta expert, before buying the plot on following aspects:

Soil check
Direction of Plot
It is advisable to buy a plot facing North, East or Northeast is good for home.
Shape of the Plot It is generally suggested to buy a plot for house in any one of the following Shapes



SQUARE

RECTANGULAR

GAUMUKHI; Plot which is wider in the back than front ( like a face of the cow)

Slope of the Plot It is recommended to have a plot which has a slope towards north or east.
The vice Versa plot i.e Sher mukhi is not considered auspious.

Similarly, you may also take the advice of Vastushastra expert in case of non - aligned plots.

Now, let us see on what points we can seek vastushastra consultant's advice , before building the house.

Direction of Bedroom for the family members ; e.g as per vastu , the bedroom facing south west is recommended for chief of the house and bedroom facing north west is suggested for guests and girls.
Toilet According to vastu , it is better to have toilet towards south or west and its better to have face towards south or west while discharging the night soil etc.
Bathroom Should be in south and west directions and the direction of flow of drains should be towards north-east. Similarly, you may take the experts opinion on place of exhaust fan, geyser etc.
Balcony Vastushastra recommends that balcony should be in north east direction to achieve good health and wealth.
Children's Room Is better to have a children's room in north west corner
Door

It is recommended to have entrance door in north or east direction because as per vastu when somebody enters the house, the waves coming from the door affects his mind.It is also recommended to have some paintings or window in front of the door.

Dining Room It is better to have dining table in southeast direction
Drawing Room It should be in north-west, south or west direction. Better to place furniture in south and west direction and as far as possible open space should be maximum in north and east directions

Kitchen According to Vastu, the direction of the kitchen should be in south-east i.e. fire angle. The face of the cook should be towards the east . You may take expert's advice regarding place of the water tap or even the color of the stone/slab, on which food is cooked.
Pooja Room It should be located in North East Corner and facing East. The paintings and pictures of God may be placed on the west wall facing the east. Preferably the sun light in the morning to fall on the pictures adoring the wall.
The Cash Vault Locker-Almirah to be kept in the middle of the northern wall - just behind the pooja room.

Similarly , you can take advice from Vastu expert on window, main gate, guestroom, portico, staircase,Main switch etc. to name a few.

more details on vastushastra are posted in vastushastra forum

[Kasey]

HI..
Dear it was a nice try but i am not gonna agree with this. There are many problems with that...