Blogs

Shifting vs Renovating your Home

Posted on by HomeCapital Team

Many of us struggle with the decision of whether to shift to a different house or renovate the existing home at some point in our lives. Previously, everyone wanted their home to be small and cozy. A sizable drawing room, bedroom, kitchen, and bathroom seemed more than enough. However, when you start living, you add more things to your home, and as the family grows, it feels like you are running out of space. As this thought hits your head, you land in a dilemma of whether to opt for renovating or shift to a different house altogether.

Shifting your home

Shifting means moving to an entirely new place and simultaneously a new neighborhood. If you choose to shift, you can select a house of your preference, a large or small home, and choose a better location and community. Besides this, you can select an area near schools, offices, and the marketplace. These options would not be available to you in case of renovation. Shifting can help bring the significant change in life that you had wished for, for a long time. If you and your family want to start afresh, shifting is the best option.

Advantages and disadvantages of Shifting your home

Advantages of shifting your home

When you shift to a new house, you do not have to deal with any mess. Renovating your house, on the other hand, requires you to deal with a lot of stress and unwanted mess. For example, a big change in the kitchen renovation can leave you with no proper place to cook food for a month. Each room you renovate will take a lot of time and make your life much more hectic and inconvenient. So, if you have enough money, you can easily shift to a new place in a house of your choice. It is a more stress-free procedure.

Remember that you need to keep the cost of furnishing in mind. The new house’s design, floor, wall panels, space, and furnished rooms will cost you accordingly. So, you must find a house according to your taste and budget.

Disadvantages of shifting your home

As already mentioned above, buying a house and shifting may cost you a lot of money. You might consider that the money you will get by selling your previous house will be enough to cover all the expenses.  However, packaging all items, moving the furniture, and transporting all the stuff to a new location result in additional expenses. There will be extra charges, legal papers’ fees, commission, and many more. Also, the bigger the family, the more you will need to move and the more costly as well as hectic it becomes.

Renovating your home

Renovating your home means improving it or modernizing the old, damaged, or defective parts of the house to make it look more presentable. You do not have the option of a new location or neighborhood like during shifting. Therefore, the change will not be major. The new change takes place only inside your home. Consequently, it is more cost-effective and involves no hassle of transporting your items and furniture. During the renovation, you can add furniture of your choice, change and modify your kitchen, bedroom, living room, and so on. If you want some budget-friendly change in the house, then renovating is the best choice for you.

Advantages and disadvantages of renovating your home

Advantages of renovating your home

Unlike shifting, renovating does not need you to empty your house altogether. You can move your things to another room when the renovation is going on in one room. A well-strategized renovation will not cost you a lot. The best part is that you can upgrade your house by implementing your desired aesthetic and functionality within a limited budget.

Renovation gives you hundreds of options for customization and modification. For example, when you buy a new house, you may love the bedroom but dislike the kitchen or living space. If you try making changes there, it will cost you additional money. However, customizing one’s already existing home is a lot easier. You can do anything of your choice ranging from changing floors to walls and all within your preferred budget.

Disadvantages of renovating your home

Renovation is the best plan if you plan to modify only a few rooms. If you wish to modify the whole house, it will not be worth all the mess and investment. It is cost-effective when done in a few spaces. You cannot live with the mess if you modify the whole space. For example, when you modify the kitchen, it becomes difficult to cook for weeks. Similarly, you will face problems with each room as they have their own purposes. The daily commotion in your home will get on your nerves someday. In short, you may either have to move out of your house for a month or adjust to living in all the mess.

To conclude, shifting and renovating both have their own benefits. While shifting will give you a whole new address and life, it will simultaneously cost you a lot. On the other hand, renovation is quick but stressful. Therefore, it ultimately depends on your choices and requirements.

What is the average home loan processing time?

Posted on by HomeCapital Team

The purchase of property is one of the most anticipated events of a household, but sufficient capital is required to turn this dream into reality. To meet the requirements of capital, most Indians rely on home loans. Since these loans are becoming easier to avail of, the dream of being a homeowner is now closer than ever. All you need to do is ensure that you meet the eligibility criteria set by your financial institution to get a home loan in no time. But this brings up a question, exactly, how long is the average home loan processing time? Well, here are a few things that you should keep in mind regarding the home loan processing time.

Overview of the standard home loan process

You might have heard that taking out a home loan is quite a time-consuming and harrowing task, but that’s not always the case. To ensure that it goes smoothly, the borrower needs to duly fulfill the requirements specified by a financial institution.

These include documents, meeting the eligibility, and a guarantor in some cases. That’s why it’s recommended to have a complete understanding of the process of applying for a home loan. This will help you prepare better and get resolutions faster.

Here’s a quick overview of the home loan process.

  • Begin by submitting the application form for the home loan.
  • Next, prepare and submit the documents needed for the loan.
  • Now, pay the home loan processing fee.
  • Go through the documents online thoroughly to understand the terms and conditions of your loan. Sign on the dotted line after you read it.
  • Get all your documents verified.
  • The financial institution will now send you a loan approval letter.
  • After receiving the letter, complete the property verification and the legal check for your loan.
  • Now, all that you need to do is sign the loan agreement (after you ensure everything is in order).
  • The loan is then disbursed by the financial institution.

This should have given you an idea about the home loan process, but what about the home loan processing time? Let’s find out.

Home loan processing time

The home loan processing time of a loan depends mostly upon the lender in case of no external problems. Different lenders will have different home loan processing times. This is mostly due to the internal mechanics of the lenders, such as document verification.

This means that if you approach two different lenders, you will most likely have different home loan processing times. Another point of difference is the borrower itself. For example, salaried professionals will have shorter home loan processing times as compared to self-employed individuals.

However, generally speaking, if everything is in order, then you can expect the disbursal of your loan within 1-2 weeks post-signing the documents. Here are some points to help you understand the nuances of a home loan process.

  • You might face some delays when applying for a home loan. They can happen for a variety of reasons, including misplaced documents, low credit scores, issues with the property, etc.
  • The lender cannot and will not proceed with the loan without diligence and verification. Everything and anything that can be verified will be verified. Just cooperate with the bank to get a loan faster.
  • Issues with the property tend to increase processing time by a significant margin. This happens due to faulty credentials of the builder in question or the lack of a title for the property.
  • For self-employed individuals, ensuring valid income tax returns during document submission is critical. It will help fasten the home loan process.
  • A good rule of thumb to speed up the processing time is to learn what documents are needed before applying for a loan. Different lenders may require different documents. It also depends on your status and the type of home you are trying to build. You can get the list of the required documents via the lender’s website. The customer care or the relationship officer will also list out the pre-requisites of a loan.

Conclusion

Thanks to online banking facilities, the home loan processing time has come down by a significant margin. To accelerate it even further, it is essential to cooperate fully with the lender and understand the requirements. If you are an employee of a financial institution, getting a home loan from there would be quicker. Since they already have a lot of your documents, it brings down the time significantly.

While your home loan may take some time to be disbursed, you can rest assured that HomeCapital will quickly approve your request for a down payment loan. Fill out the online application form to get an interest-free down payment loan of up to 50% of the down payment amount. You also get the option to repay the loan in a flexible tenure as per your suitability.

Metaverse – The rise of virtual reality

Posted on by HomeCapital Team

In October 2021, Metaverse became the trendiest word that everyone was talking about. This happened because the social media giant Facebook was renamed ‘Meta’ by Mark Zuckerberg. This move was Zuckerberg’s way of staking the claim on the future of the internet, i.e., the Metaverse.

Another big company, Microsoft, has also announced that Metaverse will be brought to its online meeting platform, Microsoft Teams, in 2022. Hence, it can be said that tech CEOs are definitely on board with this next step of virtual reality.

But what is Metaverse, how is it linked to Virtual Reality, and is it possible to buy real estate in the Metaverse? Let’s find out.

What is the Metaverse?

The metaverse is an integration of the physical and digital worlds using technologies like AR (Augmented Reality) and VR (Virtual Reality). It will be a virtual world where real life is mimicked, and peer-to-peer interaction can take place. It is said to be the evolution of the internet as we know it today. The Metaverse will change education, networking, shopping, and other such experiences.

The Metaverse will possibly be introduced to its users by means of wearable VR technology. Digital avatars will be the identity of people. Representation and communication in the Metaverse will be through these digital avatars. Blockchain is also believed to play a major role in the workings of the Metaverse.

Virtual reality and the Metaverse

The Metaverse uses the technologies of virtual reality and augmented reality in different capacities. Virtual Reality will help in making the sensory experience of the artificial digital world similar to the real world. A computer-generated environment with scenes and objects helps to make the digital world look real for the users. Virtual Reality headsets or projectors will be required to enter and experience the Metaverse.

Through Virtual Reality, people can experience the virtual world without leaving their homes. They can visit schools, experience concerts, go to work, and shop as well.

Augmented Reality will be used in collaboration with Virtual Reality to transform the real world with visual elements and graphical characters.

Until now, Virtual Reality was a redistricted experience to the virtual world, but the Metaverse is a virtual space that is open, always present, and shared among lots of individuals. It will be the next step for Virtual Reality technologies.

Metaverse use cases

The 3D world of Metaverse will have a lot of real-world capabilities and advantages. The use case of Metaverse can range from improving the online gaming experience to virtual business and markets. It can also revolutionize the following sectors:

  • The social media experience can be completely revolutionized by Metaverse by creating an immersive experience for socializing.
  • E-commerce will be advanced by virtual marketplaces and digital asset readings.
  • Remote work and online classes will become an even more engaging experience in the future with the use of the virtual 3D world.
  • Virtual real estate will be the next big thing as entertainment spaces like cinemas, and amusement parks will be developed along with digital storefronts.

Metaverse and real estate relationship

It is easy to see the relationship between Metaverse and areas such as technology, gaming, and social networking but Metaverse and real estate also have a connection. The concept of buying and investing in virtual land is something those forward-thinking entrepreneurs have shown an interest in.

Cryptocurrency has made the sale of digital real estate a possibility. The investment in real estate will also increase because of it. This is so because cryptocurrency users from all around the world can invest in real estate without any barriers. The scope of real estate in the Metaverse is huge. Digital properties, just like real-life properties, can be flipped, leased, or developed for profit. It is a high-risk investment, but it also has high rewards.

To buy virtual real estate, a digital wallet is necessary. Sandbox, Somnium space, Decentraland, and Crypto Voxels are the four main platforms where the purchase of virtual real estate is a possibility. If you plan on investing in metaverse real estate, look for areas that have the potential for development. Places, where people can potentially assemble or flock, will attract more growth than those in areas with scarce development. Consider plots of land near but not within developed districts. You can score these properties at relatively lower prices, build on them, and wait for prices to drive up.

Conclusion

The future is now with Metaverse integrating into various areas of our everyday world. This isn’t actually a new development as technologies like virtual reality, augmented reality, artificial intelligence, and digital currency have been around for almost a decade. However, the implementation of the virtual reality of Metaverse is now in full gear, and soon it will be a part of our everyday life.

In which Indian city should you buy your first home?

Posted on by HomeCapital Team

The first home has a special place in the heart of home buyers. It’s the first time when they can call a house their home through their hard work effort. As such, this is often decided after a lot of consideration and thoughts. It should also meet strict criteria set by the homebuyer. A first home should be affordable while fulfilling the needs of the buyer. There’s usually a good amount of debate about where one should buy their first home. Well, here we’ve compiled a list of the best Indian cities to buy your first home.

Top Indian cities to buy your first home

1.   Bengaluru

The Silicon Valley of India is a highly attractive place for your first home. The real estate sector here has remained unchanged despite the lull in the market and is continuously growing. There are areas with low-cost housing for the affordable and mid-income sectors available in the outskirts of the city in what is called Neo Bengaluru. They offer good deals at affordable prices.

The popular areas of Whitefield and Marathahalli are also popular residential sectors. With its bustling IT sector and plenty of job opportunities, a first-time home buyer moving to Bengaluru will have no problems moving in. Bengaluru also has some of the best schools and plenty of public places, like parks, which make it a perfect place to move in with your family.

2.   Indore

Indore is often called Mini Mumbai. It offers a wide range of housing options to choose from for your first home. From apartments to villas and townships, you will be spoilt for choice. Moreover, the city has a pleasant climate throughout most of the year. It has also topped the rankings for the cleanest city in India several times.

The real estate in the city is well developed, and there are plenty of premium facilities like higher education institutes and corporate offices. And don’t forget, in the cost-of-living index 2021, Indore was a whole 5.67 points lower than Mumbai. Because of all these reasons, Indore should definitely be on your list of prospective cities for your first home. 

3.   Buying your first home in Pune

Pune is on the path to being the next large residential hub after Mumbai in Maharashtra. The city has an incomparable lifestyle along with a great climate which makes it a great place to live. Affordable housing is also quite a clincher. Pune has an influx of people because of its manufacturing and IT sector, so you will likely live in a diverse community. It has a rich cultural heritage and offers a lot of attractions for its residents.

Pune has been ranked as the most liveable city in India several times, which makes it a perfect location for your first home. Due to the rise in commercial activity and educational institutions, Pune is an ideal choice to buy your dream home. The city is experiencing an uptick in residential properties that are designed to improve the living experience. With several micro-markets like Koregaon Park and Kalyani Nagar, home buyers will be spoiled for choice.

4.   Mumbai Metropolitan Region

Mumbai, or to be more exact, the Mumbai Metropolitan Region (MMR), is a great choice for your first home. The region has an area of over 6640 sq km and consists of 9 municipalities. The MMR is a preferred real estate location due to its proximity to one of the largest cities in India. Places like Thane and Navi Mumbai should be on your list since they have plenty of space for development projects.

The MMR region is also highly attractive due to the employment opportunities that are available in the region. You will also find people from all over India here. There won’t be a day when you’d feel bored. The healthcare and commercial developments in the city are also an attractive point in its favor. With a lot of upcoming development projects and townships in the region, the MMR is the place to buy your first home.

5.   Buying your first home in Hyderabad

Hyderabad continues its splendid growth on the back of its IT industry and stable governance. Ranked first in the Mercer 2017 quality of living ranking, Hyderabad has a lot to offer to a home buyer. Despite teeming with professionals and its ever-growing IT hubs, the city still has plenty of options for affordable housing.

There is no shortage of places to buy your first home like Kuktpally, Manikonda, etc. With its proximity to IT offices, you can make sure that your daily commute to your office is a small one. Hyderabad also has a rich cultural heritage, and there are plenty of monuments to see in the city.

Conclusion

Investing in your first home can be extremely rewarding if done right. The post-pandemic work system has somewhat equalized the playing field. You can invest in properties that are in cheap neighborhoods and work from home. And while you will easily find plenty of options in the market, it’s important to remember your requirements and not get swept in the flow. Proper research and a personal visit will make sure that your first home is as close to your ideal as possible. If you’re also thinking of buying your first home, HomeCapital can help you with your down payment. It is India’s first down payment loan service and offers fast and easy down payment loans at no interest.

An overview of blockchain technology and real estate

Posted on by HomeCapital Team

Blockchain is a new entrant into the field of technology. Ever since its entry, it has been hyped as the next step in the technological revolution. And indeed, it influences how different sectors work and operate.

Real estate, too, is one of the sectors that has been unable to escape the blockchain disruption. With features like decentralization and immutability, blockchain technology finds itself in use with things like transactions, property search, ownership, and more. Here we’ll discuss how blockchain technology will change the face of the real estate sector over the next few years.

How does blockchain integrate itself into real estate?

Blockchain technology gives solutions to many real problems faced by the real estate industry. It can exponentially transform business processes that are built on transactions and bring a complete overhaul. However, it is much more than that. Its key feature is its immutability. Immutability has the potential to transform the auditing process into a quick, efficient, and cost-effective procedure, and bring more trust and integrity to the data businesses use and share every day. This provides real estate companies with a haven for their business. Blockchain technology has the potential to completely change the real estate sector and make it more growth-oriented and efficient.

Listed below are a few ways in which blockchain helps the real estate sector.

1.      Blockchain technology as search platforms

In the current landscape, the most common way for a prospective buyer to connect with a seller is through various listing platforms. These platforms often demand a fee for their services. Plus, the data on such platforms may be outdated or inaccurate. Blockchain technology can improve this aspect by storing the listing data in a centralized database. This offers the seller better management of their properties and frequent update of data resulting in accuracy. Further, it eliminates the middle man in the transaction and fees to third-party platforms.

2.      Smart contracts

The real estate sector involves lengthy processes involving contracts and documentation. Blockchain technology can help out here using smart contracts. They are automated self-executing contracts that are executed when certain conditions are fulfilled. Their code comes with specific instructions written, which helps them record all data related to transactions and payments without any human interference. They can help replace traditional contracts and save time and provide safety from fraud.

3.      Blockchain technology for tokenisation

Blockchain technology is capable of using something called tokenization. The main purpose of tokenization is the division of real estate assets into computerized tokens. As ensuring the security of the asset is the main priority for realtors, this can help them improve security.

Any investor can buy these tokens and claim fractional ownership of the property, much like traditional stocks. These tokens store rules, assign ownership rights, and save transaction history. Since these tokens are immutable, owners of these tokens can also trade them in the market like a stock. This provides greater security, reduces costs, and improves liquidity.

4.      Remove intermediaries

Ask any homeowner their experience, and they will tell you about the number of middlemen they had to go through. From bankers to brokers, the list of intermediaries is not small. This makes the whole process quite complex and time-consuming. However, blockchain technology cuts out the need for intermediaries by directly connecting the developer/seller with the buyer. As a result, both parties save money in commissions charged by the middleman. This also ensures faster communication and completion of the process.

5.      Reduced costs

Blockchain technology can help developers automate the entire process of a transaction and complete it online. This cuts down on the cost of selling a property exponentially. Automation is not only highly effective but it also removes any unneeded processes from the transaction. The use of blockchain technology in the real estate sector also helps circumvent the costs associated with registrations, taxes, and loans.

6.      Prevent frauds through blockchain technology

Blockchain technology can help prevent any frauds such as forging of title and deed from ever happening. Since it stores all the information regarding the property and the owner along with the legal documents in a single database, it prevents any third-party hacks. It is also very easy to verify such records ensuring that no fraud happens.

Conclusion

Blockchain technology needs no introduction. Wherever it is introduced, it is a gamechanger. Its integration with the real estate sector can bring in some much-needed positive changes for all homeowners. It has the potential to transform the entire industry by increasing trust among parties, proficient management of data, and access to information in real-time. As long as the right steps are taken, the implementation of blockchain technology can take this sector to new heights. While blockchain is definitely what will drive the future, it will take some time to reach there.

Don’t let rising inflation delay your home ownership plans

Posted on by HomeCapital Team

Inflation has been the most talked about topic in the business section of newspapers and websites presently. It is as if inflation is on the tip of everyone’s tongue. Its effects are widely visible on everything ranging from food to gas prices. However, if you are planning to buy a house, the impact can be quite different and more prominent when considering its price. Therefore, you must know more about inflation to get a proper insight into the market scenario. In this article, we will discuss more about the topic and why you should not step back from your home ownership plans despite rising inflation.

What is inflation?

Inflation is the rate at which market prices rise over time. A healthy economy must always have some inflation theoretically. When prices increase with time, people are encouraged to buy services, goods, and houses in time rather than waiting for a longer period. This in turn, improves the producers’ selling prospects and makes them hire more people and buy more goods and services. This whole cycle is actually beneficial and important. The trick here is to keep a limit on inflation. No one wants a product to cost twice its previous price. The most common place where we see inflation is in gas stations, which are usually making the headlines presently.

Impact of inflation on housing

Inflation can impact housing in two ways: mortgage interest rates and the prices of homes.

1. Home prices

Like most other products, home prices also increase due to inflation. Therefore, as the prices of materials for building houses increase, the overall price simultaneously goes up.

Owners with existing homes behave naturally, as any economist would expect. However, inflation is not the only thing that causes a surge in the price of homes. Homes also face real value prices that rise over time due to multiple factors. Therefore, we must have a closer look at the individual home price appreciation.

2. Home appreciation

During home appreciation, the real price rises above the ones that would have been accounted for by inflation, resulting in real gains in value. It depends on various factors that make the value increase.

  • Condition of the house: The first criteria that an owner will want the house to be is in good condition so that the estimated home value is not subjected to repairs. Repairs can delay transactions or may lead to the cancellation of a deal if it is not done in a reasonable timeframe.
  • Square footage: A spacious house will bring in more significant transactions. According to the square footage of the house, the price can rise more than other homes in the same locality.
  • Bedrooms and bathrooms: In this case, the more space there is, the better it is. Extra rooms are very much in demand now. As the trend of working from home is increasing, people are converting extra bedrooms into offices and workplaces. This may lead to hybrid workspaces or completely remote work.
  • Location: Location is a crucial factor that maximum buyers tend to consider. Commuting long distances through public transportation and workplaces can be a concerning factor. Although offices and schools might not be a big factor all the time, people prefer homes near restaurants, beaches, or venues.

How should you react and deal with homeownership plans in the face of rising inflation?

If you have second thoughts while dealing with your homeownership plans due to rising inflation, follow these tips. There is no need to step back from owning a home today.

  • Pay down existing debts: A lender always considers the debt-to-income ratio as a qualifying factor for home loans. They review the amount of your previous installment and the monthly debt payments compared to the monthly gross income. The lesser it is, the better it is, as it implies that you can afford a higher monthly payment and be able to pay more for your home.
  • Be realistic: With rising home prices, you may not get everything you wish for in your budget price. Therefore, you must determine at first if there’s something you are paying for and not really getting. If so, you need to cut it out. Keep only what you require and can get the most utility from. Next, make a list of the things you need the most, followed by the ones you wish for and the ones you cannot function without. Hence, you can stay away from the crazy bidding war for a house and cross your budget.
  • Get credit ready: If you clear your debts, you get to raise your credit score. A minimum credit score is required to qualify for big loans. Hence, the more you score, the better are your chances of the financial institution giving you a better offer. You can also take care of any negative credit items and charge-offs.

Conclusion

Inflation should not obstruct your homeownership plans if you act skillfully. Remember, you should always negotiate with lenders for a lower closing cost. Also, the more you save beforehand, the better it is as you would be able to pay a higher amount towards the down payment. This in turn would reduce your quantum of home loan. We at HomeCapital are here to help you out with our down payment assistance program. Our fast, interest-free, down payment loan will help you realize your dream of owning a home. With up to 50% of the total down payment as credit, you can easily become a homeowner.

What is an IGBC-certified green home and its benefits?

Posted on by HomeCapital Team

According to the Ministry of Urban Development, by 2030, the country is expected to have 68 cities with a population of one million, 13 cities with more than 4 million people, and 6 megacities with a population of 10 million or more. This data indicates that there is going to be an upsurge in housing requirements in the coming future. This rise in demand will also lead to higher energy and water consumption. The only way to meet this demand is by adopting green home concepts in the residential sector and ensuring that future growth is sustainable in nature.

What is a green building?

A green building is a sustainably designed building that is the perfect blend of high-quality construction and low environmental impact concepts. Green buildings are built in a way to preserve natural resources while construction. Adoption of green techniques and concepts while building homes can create positive impacts on our climate and natural environment.

Green homes are paving a way for India to usher into a new era of sustainability. They majorly focus on effective usage of water and energy resources, optimum material utilization, and efficient waste management system. The concept of green building is not simply confined to the building walls but also extends to site planning, land-use planning, and other issues as well.

What is an IGBC-certified green home?

IGBC (Indian Green Building Council) green home is the first rating program developed exclusively for residential properties in India. This rating program is a medium through which designers can apply green concepts and principles to reduce the environmental impact of constructing new buildings.

The program strives to strike a balance between established practices and emerging green concepts. IGBC home criteria allow the construction of buildings that are sustainable over their life cycle. The IGBC-certified green home addresses the need for the housing sector to make a judicious move toward sustainable living so as to leave a better earth for future generations.

Benefits of staying in an IGBC-certified green home

Green homes are known to have tremendous benefits, both tangible and intangible. Those who decide to invest in a green home today are going to witness the value of their investment multiplied by a factor much higher than normal homes. Staying in a green home is not eco friendly but also beneficial to you, the resident.

Here are some common positive impacts of green homes:

 1.  Conservation of water

Every IGBC-certified building takes dedicated measures for the conservation of energy. Almost 30-50 percent of the water is saved and reused in green homes through several techniques including rainwater harvesting, water metering, management of irrigation systems, etc.

2.  Conservation of energy

Saving energy is an essential step that must be taken to reduce the consumption of natural resources and live a more environmentally conscious life. A green building helps you do that by conserving almost 20-30 percent of the energy.

3.  Waste management system

IGBC has made it mandatory for all the green homes to have a waste treatment system installed within its boundaries. All the disposables and organic waste from different houses are collected and then either recycled or reused.

4.  Excellent daylighting

While living in an IGBC-certified green home, there is no need to switch on lights all the time. The houses are built in a way to let ample amount of natural sunlight inside the house hence providing not only health benefits but also lower electricity costs.

5.  Conservation of scarce natural resources

Green buildings are largely made by using sustainable raw materials that can either be reused or recycled at any time. Using sustainable materials while construction not only leads to the conservation of scarce natural resources but also makes the living atmosphere healthy and breathable.

6.  Lower energy bills

Green buildings help in saving 15-20 percent on electricity bills due to their maximum usage of natural light. They also help in lowering electricity bills by making use of solar heating systems and energy-efficient walls and rooms. Installation of solar panels and use of natural light reduces the need for CFL and LED bulbs significantly.

The future of IGBC green homes

To enable the construction of green homes, several green building materials, technologies, and equipment are frequently introduced in the market. To keep up with the constant up-gradation and introduction of new green technologies and certified green products, it becomes crucial for the IGBC rating program to undergo continuous revisions. Each IGBC-certified home is built in line with the latest advances and changes in green technology. We highly recommend homebuyers to invest in a green home as there are imminent, tangible, and sustained rewards in the form of reduced electricity bills, reduced water bills, lower medical bills due to a healthier lifestyle, and overall improved quality of life for the entire family.

All about Patta Chitta – Tamil Nadu land records online

Posted on by HomeCapital Team

Patta Chitta is the term used by the Tamil Nadu government to refer to their online land revenue records. Patta and Chitta are two separate terms. They play an important role in land or property-related transactions in Tamil Nadu. From property pledge to property transfer, Patta Chitta’s documents are needed. They used to be different documents but were later merged into a single one starting in 2015. Let’s go through all its intricacies in this article.

What is Patta?

Patta is an official government record that contains the details of the land ownership, the location of the land, and its area. It is a revenue record of the land. While doing a transaction for a property, the Patta document will verify that the owner of the land is the one doing the transaction. This ensures that only the rightful owner of the land is involved and prevents fraud.

For a clear property title, the seller of the land should have a valid Patta. Once the buyer purchases the land, they need to apply to the Taluk office to transfer the Patta to their name for maintenance of records.

What is Chitta?

The Chitta document is used to clarify the nature of the land. This pertains to immovable property that is maintained by the Taluk office and the village administrative office (VAO). The Chitta document clarifies the details of the property or land owner, and the classification of the land between Punjai and Nanjai is provided.

Punjai is used to refer to land that has fewer water bodies and instead has facilities like water wells. On the other hand, Nanjai is used to refer to land that has plenty of water sources, such as rivers, ponds, and canals. 

How to apply for Patta Chitta online?

Tamil Nadu government has completely digitized the Patta Chitta records. As such, they are easily available online, and you can access them through the web or the Taluk office. The procedure to obtain the document online is quite simple and goes as such:

  • Go to the official website of Tamil Nadu for Patta Chitta.
  • Select the Chitta, Patta, and FMB or TSLR extract option and select the district of the property.
  • Enter the details of the property, such as the Taluk, Village, Ward, and Block, along with the subdivision number and the survey number.
  • Submit the details, and soon a certificate from the Town Survey Land Register will be issued online containing the details of the property.

How to transfer Patta Chitta?

On the sale of a property, the transfer of the Patta Chitta document is mandatory. The procedure for transferring it is much like that of its registration.

  • Apply for the transfer of Patta Chitta to the respective Tahsildar office
  • The application will then be scrutinized and then accepted or rejected based on the document and the examination of the property.

Documents required

The transfer of Patta Chitta requires some documents that need to be submitted to the tehsildar office along with your application. These documents are:

  • Proof of possession such as electricity bill or paid tax receipt.
  • Encumbrance certificate.
  • Sales deed, both original and a photocopy for verification.

How to check the status of Patta Chitta?

You can check the status of your Patta Chitta document transfer in a few simple steps:

  • Visit the e-district website of Tamil Nadu.
  • Enter your application ID and the captcha.
  • Click on get status, and the status of your application for transfer will be displayed.

How to verify Your Patta Chitta?

You can verify your Patta Chitta document by following the given steps:

  • Visit the e-district website of Tamil Nadu.
  • Click on verify Patta.
  • Enter your reference number and select submit.
  • Your Patta Chitta will be verified.

How to check the status of Patta Chitta verification?

To check the status of your verification, follow these steps:

  • Go to the Tamil Nadu service site.
  • Enter your reference number.
  • Click on submit.
  • The status of Patta Chitta’s verification will be displayed on the page.

Conclusion

Patta Chitta is the evidence of your ownership of the land or property. It is a crucial document that all property owners should have. In case of a dispute regarding the title, it can be used as evidence to clarify matters. In addition, it is also useful in case the government wants to acquire land as it makes you liable for compensation.

Remember that documents are not given out for apartments. However, the land on which the apartment is built can have a Patta Chitta. Thanks to the efforts of the Tamil Nadu government, people can now apply and assess their documents online for a nominal cost.

Just like the state government of Tamil Nadu has made access to Patta Chitta easy, HomeCapital too has made it easy for you to access down payment loans. The program assists budding home buying with up to 50% of the required home down payment value as an interest-free loan through a completely online process.

What is force majeure and its impact on the Indian real estate sector?

Posted on by HomeCapital Team

Force majeure, in the literal sense, means greater force. It is used to define unexpected circumstances such as natural disasters that are outside the control of people. It can be used as an excuse to circumvent the terms of a contract in the legal system. This type of clause is mostly found in construction contracts and insurance policies. But when is a force majeure enforced? To declare a force majeure, conditions such as unpredictability, externality, and irresistibility need to be met.

Force majeure is neither defined nor dealt with by the Indian legal system. However, its concept has been touched on in certain sections. Section 32 of the Indian Contract Act, 1872, talks about contractual obligations in case of an unforeseen event. Section 56 of the same Act deals with the doctrine of frustration. It says that if the fundamental purpose of the contract is destroyed, then it is nullified.

However, as there is no specific mention of force majeure in the Indian Contracts Act 1872, contracts need to be formed with the specific mention of such a clause for citation. Moreover, it should be noted that as there is no provision of force majeure in the Indian legal system, it cannot be used as a reason to opt out of the contract. The liability of the party to fulfill its legal obligation would still stand regardless of an unexpected circumstance. This clause can at most only be cited to suspend the performance for a certain time.

Force majeure in real estate

The Real Estate Regulation and Development Act (RERA) requires builders to specify the period of project completion and register their new projects with the state authority. Without RERA registration, no builder is allowed even to advertise their project. In case they are unable to meet the deadline in the registration, the developer may be fined up to 10% of the total cost of the project. This is done to protect the rights of the customers.

However, this Act also comes to the rescue of developers in case of unforeseen circumstances that prevent them from meeting the deadline. Unlike the Contracts Act, which only indicates the existence of force majeure, the RERA Act recognizes this clause. Section 6 of the Act specifically mentions force majeure and talks about the extension of the project deadline in case of such a situation.

It also gives another breather to the developer by giving an extension of a maximum of one year in reasonable circumstances at the discretion of the authority. RERA clearly defines force majeure as such, “The expression Force Majeure shall mean a case of war, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature affecting the regular development of the real estate project.”

How does it impact homebuyers?

With the pandemic and nation or state-wide lockdowns, a lot of Indian developers had to invoke the clause of force majeure, and the government also announced blanket relief. While banket relief was evident for affected areas such as NCR or the MMR, construction in other areas was not affected as much.

As per data, India had 9 prime residential markets with over 16 lakh units in different stages of construction as of March 31, 2020. 19% of them were in NCR while 37% were in MMR. This extreme concentration of units in highly affected areas meant possession of projects being postponed by up to 6 months. 

Can buyers cite force majeure too?

Actually, it cannot be practiced by home buyers. Force majeure is not citable for the buyer of a property. This is because job loss is not considered under unprecedented circumstances. During the pandemic, the delays in the project are not the only thing that buyers need to look out for. At a time when lockdown restrictions were causing income loss for many, there was no respite for the home buyer in this case. Home buyers can get a moratorium on their EMI for up to 6 months.

Conclusion

It is important to understand that the term force majeure is not encompassing. Since it is quite difficult to understand what can be defined as an unusual circumstance, a discussion is usually held in court. Usually, the terms of the contracts will be read and interpreted to conclude whether a force majeure clause can be triggered. For example, fluctuations in the economy are not considered force majeure. That is why both parties need to come to mutually agreeable terms.

How is the Internet of Things poised to elevate and transform any home into a luxury apartment?

Posted on by HomeCapital Team

The age of the internet is upon us, and it is rapidly changing how we live our daily lives. From the way we work to the way we commute, the internet affects all. And this integration of the internet with our daily necessities is what constitutes the Internet of Things. Most of us already use IoT (Internet of Things) devices without thinking about it. Smart TVs and connected doorbells are just a few of them. And while it is still in its infancy, IoT will soon turn even a simple apartment into a luxurious one.

How will the Internet of Things bring change to homebuyers?

IoT is a lot more than simply just voice assistants and thermostats. An apartment truly integrated with the Internet of Things will be interconnected and intelligent from the inside out. Any apartment with IoT will be able to transform into a luxury home. It will have these three key characteristics.

  • Smart services: This includes things like smart locks, smart lights, temperature control, as well as services like package delivery. These tech gadgets aim to make the daily life of the resident much simpler and easier.
  • Connectivity: An apartment integrated with IoT will have devices that are highly interconnected with each other. Use of speakers to hear commands and sensors will be ubiquitous.
  • Management: IoT will not only make the life of the resident easier, but it will also help out the management. It will create better living experiences for the resident by connecting with maintenance and management services to save time, cost, and effort. 

Control over climate

No, this does not mean you will be able to change the weather. But with the internet of things, you will be able to regulate the air condition, heating, ventilation, and air filtering of your home. All you will need to do is click a button and select the temperature you need your home at. Your IoT device will do the rest and work without any further input. You can even program it to change the temperature and the climate at certain times of the day or depending on the outside weather conditions.

Proximity sensing with Internet of Things

Imagine walking into your house after a busy day at work, and the door automatically opens itself. The temperature of the room is also set to cool you off or warm you up, depending on the weather. Well, this isn’t such a far cry if proximity sensors get their say. With the internet of things and linking your proximity sensors with your temperature control systems and GPS, this is possible. The GPS can accurately detect your presence and set your home to your ideal temperature a couple of minutes before you reach your place.

Sprinklers

Working on the lawn can be bothersome sometimes. A lawn irrigation system with inbuilt smart sprinklers can take care of it. They can collect weather data in real-time and sprinkle water on the garden based on the conditions. Such a system can help you save time and effort if you are busy at work and unable to tend to your garden.

Advanced Security System with Internet of Things

Home security is a top priority in any luxury apartment. While most homes are equipped with a security system, IoT takes it a step further. It can analyze data such as environment and weather conditions, air quality, and more to prevent damage to your home. The devices will be in constant touch with each other and will notify you in case of damage to your home, open windows, or unlocked doors.

The cameras can identify intruders and notify you or the authorities at a moment’s notice depending on your settings. They can also detect unusual levels of smoke or toxic games and raise a fire alarm. IoT will make your daily life simpler while keeping you and your family safe at all times.

Better response time from maintenance staff and managers

By interconnecting the apartments, IoT will enable the resident to connect with the manager much more quickly. They can raise the alarm or a complaint with a single press of a button, and the appropriate staff will be notified. It also helps by relaying real-time information about the building, which helps in more efficient management. IoT provides the residents with a faster response time while simultaneously providing managers with a lower cost of service and higher efficiency.

Conclusion

Internet of Things has been slowly but surely creeping into daily life. Currently, progress is slow, but it will surely be widespread in the future. With the advent of IoT, real estate developers will need to bring about changes in their constructions, both new and old, to accommodate it. The next wave of technology will go even further and connect with more networks to automate tasks. This will bring more comfort to the residents and a greater ROI for the investors. In fact, a lot of developers are already offering apartments with current IoT technologies. If you want to get one of those apartments but need the capital for the down payment, just visit HomeCapital. At HomeCapital, we provide up to 50% of the down payment as an interest-free personal loan so customers can buy the home of their dreams.