Blogs

Zero energy buildings: Their importance to real estate future

Posted on by HomeCapital Team

Climate change can no longer be denied. Rising temperatures, shifting snow and rainfall patterns, frequent storms, and wildfires are all strong indicators of global warming. Governments all across the world have started signaling their intent to reduce their carbon footprint. While all the sectors are being optimized in terms of energy consumption, the development industry has been identified to have the potential to make significant reductions in emissions. The rise in population in the cities will eventually lead to the need for residential buildings which may lead to high energy consumption. The question is how to accommodate the needs of the rising population without negatively affecting the environment. Zero energy building is the answer.

What is a zero energy building?

They are built to combat climate change by cutting power emissions dramatically. They consume only as much energy as they can generate onsite through renewable resources over a given period of time. In other words, they use energy resources that are renewable and lead to a lower carbon footprint. 

These buildings are constructed by incorporating climate-responsive design and technology interventions. To meet the energy demands of a building, renewable energy sources like solar PV, wind energy, or onsite geothermal power are utilized. Both on-site and off-site renewable energy resources are used in the process of constructing a zero-energy building.

Why are zero-energy buildings needed?

They have several financial advantages including reduced energy consumption, improved energy efficiency, and improved energy security. Sophisticated home batteries and energy management systems can enable homeowners to better control their energy consumption. This also allows the building to become net positive and enables owners to live a low carbon life.

The need for zero-energy buildings is on the rise due to the rising energy costs, scarcity of fuel, and an alarming increase in global warming. Earth’s non-renewable resources are vanishing at a rapid pace making it extremely crucial to shift to a more sustainable lifestyle.

Steps to build a zero-energy building?

Now that we have understood why zero-energy buildings are the next big step toward a better future, let us see the several steps involved in creating them.

  1. The first step is to audit the building’s energy demand with the help of micro-climate analysis, simulations, and on-site measurements.
  2. The second step is identifying and implementing passive design features and active tactics including daylight sensors, occupancy sensors, motion sensors, etc.
  3. The third and final step is carefully creating alternative energy supply strategies that are not only renewable but also low-emission. Both off-site and on-site renewable resources are utilized to meet the energy consumption demands.

Advantages

There are several advantages that not only improve the lives of the homeowners but also impact the environment positively. Let us discuss the major benefits of living in a zero-energy building.

  1. Complete isolation from any future energy price increases as they are self-sufficient.
  2. The net monthly cost of living comes down significantly.
  3. Higher resale value as the value of a zero-energy building will increase every time energy cost increases.
  4. They are high on comfort due to more uniform interior temperatures.
  5. Allows building owners to live a low carbon life.
  6. Better control of energy usage through advanced house battery packs and power management systems.
  7. Improved energy efficiency leads to a reduced total cost of ownership.

Disadvantages

Owing zero-energy buildings has its own set of disadvantages however in the long run the advantages outweigh the disadvantages proving this to be a good investment decision. Let us take a look at some of the negative attributes of zero-energy buildings.

  1. The initial cost of a zero-energy building can be higher.
  2. Very few designers have the required skills to create such a building.
  3. Climate-specific designs of a building may limit future ability to adjust to rising or falling ambient temperature due to global warming.
  4. Recovering higher initial costs during the resale of the building can be challenging as the appraisers are uninformed.
  5. The value of capital invested in the solar electric generating systems will eventually decrease as the prices of new photovoltaic solar cell equipment technology fall.

Conclusion

Zero-energy buildings might turn out to be a game-changer for not only the construction industry but also for the energy sector. They are a practical approach to cutting down energy consumption while lowering the maintenance cost. Despite the higher upfront cost of understanding, maintaining, and executing zero net energy use, the pace at which measures are implemented has now been increased as the knowledge amongst the stakeholders is increasing. Zero energy buildings could become an essential feature of the country’s long-term property markets as it offers a feasible way to reduce power consumption and allows owners to enjoy a lifetime of reduced maintenance cost.

How can SAAS help developers reduce unsold inventory?

Posted on by HomeCapital Team

Software as a service or SAAS is a key factor in helping developers reduce unsold inventory. Property dealers have faced a sudden crunch in demand. To overcome this, rapid adoption of technology is crucial to selling units. In fact, artificial intelligence has helped increase sales by up to 30%. These numbers will only go on increasing, making the adoption of technology a high priority among real estate developers.

Real estate and SAAS

Using SAAS for customer relationship management is the way to go forward for real estate companies. Previously, the tech integration of the sector needed a lot of improvement. They mostly depended on mainstream software developers who didn’t understand their specific requirements. Today, real estate developers have the choice of an integrated CRM built using SAAS and developed by tech-driven real estate consultancies. These solutions are often crafted keeping the need of the builder in mind and, as such, are highly effective. Though using SAAS can be complex for some, it integrates several solutions into a single platform. This allows real estate developers to actively leverage the power of tech solutions to sell their inventory. 

Why do current online solutions for real estate fail?

A lot of real estates developers have already adopted technology at some level. The problem is that the solutions currently in the market are quite expensive, which pushes away most real estate developers. To make things worse, these solutions are often generic, run-of-the-mill software made by sector agnostic software businesses.

Some software used at present lack the ability to scale. Their inability to adapt makes them unsuitable for a growing business that will likely change. In the end, what a developer usually has is an overkill that underperforms and needs a lot of management.

SAAS solutions, on the other hand, are more demanding of software developers instead of real estate developers. They allow the builders the freedom to use high-end and customizable tech freely at an annual charge.

How does SAAS help sell unsold inventory?

The SAAS model combines the efficiency of advanced software solutions and the personal touch of human involvement. It eliminates the need to spend a large amount of capital and provides a result-oriented approach to meet business goals. Below are just a few of how it helps real estate developers sell unsold inventory.

  • Superior lead generation capabilities. Both from online inquiries and site visits, the leads are automatically sent to a sales manager leading to more conversions.
  • Eliminates the need for call centers for customer service. A SAAS system will instead analyze the profile of the buyer and the inquiry to determine the preferred method and time for reaching out to the customer. It will then pass on this data to an appropriate call operator. The fully trained sales representative then carries out all further interactions with the customer, from inquiries to purchases.
  • SAAS solutions allow real estate developers to instantly share the relevant information regarding units on demand. This results in faster communication with the customer and faster closure of deals.
  • The SAAS system allows complete control over the interactions. A senior salesperson has complete knowledge of the stage of interaction. They can instantly involve themselves in the discussion if it is needed.
  • Similarly, the developer also has constant access to the channel partners in the project. They can keep a check on the performance and the work done by each operator.
  • The need for data entry is eliminated. With the help of artificial intelligence, all data is recorded and entered into the database automatically. This information can be easily retrieved with a single click.
  • A SAAS system maintains a complete record of expenses and results. It also suggests effective marketing interventions by keeping a detailed track record of the ongoing activities in the market.

How does SAAS assist homebuyers?

Though SAAS is highly complex at the technical level, its work is to deliver a smooth experience to the customers. It does this by providing customers with information that is relevant in an easy-to-understand manner. Unnecessary information is eliminated, and interactions are kept to the point. To keep customer engagement alive, push notifications and alerts are regularly sent to the site visitors. Finally, SAAS provides the customers with direct contact with the upper management. For customers, this ensures that they feel as if their inquiries are being paid serious attention.

Conclusion

Some years developers end up with unexpected inventories being unsold. Developers urgently need to speed up sales by adopting tech solutions that can be deployed quickly and cost-effectively. By adopting the SAAS system, they can immediately find the problem with most of their solutions. It boosts sales efficiently and simultaneously monitors all activities of the sale in real-time. When it is done correctly, SAAS can become a major enabler for developers. Such projects during sustenance periods are sold with several offers from developers. If you are someone who wants to immediately become a homeowner but are short of the total capital for the down payment, just get in contact with HomeCapital. We provide personal loans for downpayment to potential homebuyers which are interest-free so that you can get your dream home immediately.

Are you looking for a Home Loan for an Under-Construction Apartment?

Posted on by HomeCapital Team

Real estate developers strive to add more and more features to their homes to attract new buyers. As someone who wants to buy an apartment, you may find investing in an under construction apartment more preferable than a completed one. Under construction apartments usually cost less than similar finished properties in the same locality. Couple this with a low-interest rate home loan, and you can save some money when compared to a ready-to-move-in property.

However, you need to invest a significant sum for an under construction property. Thus, it is important to be aware of a few details so that you can take full benefits of your purchase. Here are some points to remember when looking for a home loan for an under construction apartment.

Points to remember when looking for an under construction property

 1. Go for a lender that helps you analyze the property

The best home loan provider will not only give you the funds you need to buy the property but will also help you evaluate it. In fact, inputs from lenders can be highly valuable since they have professionals who are specialized in this line of work.

A lender with a property search service can help you find out the credentials of the builder and ensure the trustworthiness of their business. By making use of such services, you can find yourself a trustworthy builder with a stellar reputation. This will help you find yourself a home to match your preference and budget.

2. Understand the home loan disbursement for under construction buildings

The process of disbursement of a home loan for an under construction property is a bit different from a normal home loan. Usually, for an under construction property, the home loan is disbursed in installments. These portions of the loan are approved as per the demands of the builder.

Some financial institutions only charge the EMI on the installments (pre-EMI) released to the builder till possession. On the other hand, other banks ask for EMI payment on the entire loan even if you’ve only taken out smaller portions of it.

3. Negotiate the price of under construction property

Builders may charge high prices to increase their profits. While the prices may seem cheaper than the rates in the same locality, you should not shy away from negotiations. If your budget is just lower than the price on board, chances are negotiation will bring it down. Bringing the price down has an additional benefit. By decreasing the overall price, you effectively lower the total cost of the house by decreasing your total interest on the home loan. The lower amount allows you to make repayment quickly and more easily.

4. Pre-approved loans are a thing

Builders often tie-up with banks to offer pre-approved loans that have an easier approval process. This makes the process easier and reduces risk since such tie-ups mean that the banks trust the builder to finish the project.

Plus, such loans are often provided at lower interest rates than normal home loans. Most major builders are registered with large banks and financial organizations to provide funds to potential homebuyers. However, the eligibility criteria for such loans are determined by the bank based on your account status and financial records.

5. Keep track of the construction and stay in touch with the lender

You must constantly stay in touch with your builder and lender during the loan disbursal and construction. This helps you keep track of the completion of the project and whether the bank should release the next installment of the payment. Under construction projects might face some delays. So even if the builder urges you to pay before the schedule, you should communicate to the bank to release the payment as per the progress of construction.

If progress as per the agreement is not visible, then you can ask your lender to delay the payment. This is very important. Otherwise, the bank will continue to release payments on time. You might eventually find that you’d paid all the required amount, but the construction remains unfinished. This is very unlikely as the valuer of the financial institution usually checks each milestone before the next tranche of payment is released by them.

6. Income tax benefits

A home loan for an under construction property can get a tax deduction of INR 2 lakhs on the interest paid in a particular year and INR 1.5 lakhs for principal paid under Section 80 C of the Income Tax Act. However, you can avail of tax benefits once the construction is completed. You can get deductions on the interest paid during the construction in 5 installments.

Conclusion

Selecting a reliable and branded builder will ensure that your project gets delivered on time and will have no legal hassles. Choosing a good lender can help you immensely with the whole process. Further, having the required documents would help you to apply online for your home loan in no time.

Before you apply for the home loan for your under construction apartment, all you need to take care of is the down payment. 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 book an under construction apartment.

Top 5 affordable locations in Kolkata

Posted on by HomeCapital Team

If you are someone who is planning to become a homeowner in Kolkata, there is no better time than now. In this article, we have prepared a list of the top five affordable and best locations in Kolkata.

Kolkata or the ‘City of Joy’ is one of the most significant cultural hubs in India. Surrounded by the Hooghly River on its east side, the metropolitan city is considered the seventh most populated region in the country. Thus, the demand for housing and affordable locations has considerably increased over the past few years. Moreover, it is cheaper compared to other metropolitan cities such as Mumbai, Delhi, Bangalore, and so on.

Whether the locations in Kolkata listed in this post are affordable or not depends on your budget and residential preference, but the information in this post will give you a fair idea of how these locations fare vis-à-vis other residential options in alternative cities.

1. Biddhannagar

Biddhannagar, also known as Salt Lake, is famous for its IT hubs that are often occupied by young IT professionals all over the city. You can find renowned IT companies here such as Wipro, TCS, and so on. Salt Lake is a clean and well-planned region that was specifically built to accommodate the growing need for residential areas. Moreover, it is situated in such an area of Kolkata that transportation to other parts of the city is extremely convenient and easy. This is why most working professionals prefer living in Salt Lake. The average cost per square foot in the area is Rs.7446

Besides IT hubs, Salt Lake is also home to a number of friendly playgrounds, hospitals, schools, and other civilizational facilities. For instance, some of the most prominent educational institutions include St Joan’s School, St Francis Xavier School, and Techno India University. You can commute to hospitals such as AMRI Hospital, ILS Hospital, or Anandalok Hospital in case of emergency.

2. Jadavpur, Southern Kolkata

Jadavpur is a suburb situated in Southern Kolkata. The place is mainly known for Jadavpur University, one of the top-ranking educational institutions in India. It hosts many concerts and events inside as well as outside in the open-air theatre. Thus, the region is evidently occupied by students. This is one of the primary reasons why residential flats and houses are well-maintained and extremely affordable. Jadavpur is connected to the rest of Kolkata through rickshaws, buses, metro, and train routes. The average cost in this location is Rs.5305 per sqft.

3. Dumdum

This area falls under the KMDA or Kolkata Metropolitan Development Authority. The Netaji Subhas Chandra Bose International Airport is merely 650 meters away from Dumdum which is one of the major contributing factors to the location being in great demand. Dumdum can be considered one of the prime locations for affordable residency and is preferred by most families. The roads that connect it to the rest of the city include VIP Road, Jessore Road, Belghoria Expressway, and NH- 34.

Dumdum is home to major educational institutions such as Indira Gandhi Memorial High School, Orient Public School, and Dum Dum Girls’ High School. Besides this, the area also has many hospitals such as Dum Dum Municipal Specialized Hospital and Cancer Research Center, and ILS Hospital.

4. Garia

Garia is one of the oldest localities in Kolkata. Over the past few years, it has undergone numerous developments and improvements which have led to the construction of more hospitals, wholesale and retail sectors, educational institutions, corporate workplaces, shopping malls, and many more. This is why the demand for residential and commercial areas in Garia has significantly increased.

Besides this, connectivity to the rest of the city and transportation has become extremely convenient due to the metro route. Moreover, the hassle-free route to the EM Bypass stretch makes the region even more demanding. Thus, you should consider this Southern locality if you wish to buy or rent residential places in Kolkata.

5. Baguihati, North East Kolkata

Located on the northeastern side of Kolkata, Baguihati is primarily a residential area. Situated along the VIP road, it is flanked by the localities like Dum Dum, Krishnapur, Deshabandhu Nagar, and New Town. Small industries dealing in jute, electronics, and polyware manufacturing, including some export-import units, have resulted in a pool of low and middle-income workforce settling here.

A cozy 2 BHK residential flat in Baguihati costs anywhere between Rs 16 lakh to Rs 25 lakh. The average property prices in this area range from Rs 2,830-3,340 per sq ft.

Conclusion

As already stated before, the cost of living in Kolkata is much cheaper compared to other Indian metropolitan cities. This is why a lot of people have relocated to Kolkata during these past few years. Thus, if you are thinking of coming to this city, please make sure to choose one of the localities listed above as they are the most cost-friendly places presently. You also have to make sure that the locality is closer to your office building or educational institution to save on transportation costs.

Advantages of buying a house with an all-inclusive price tag

Posted on by HomeCapital Team

A few developers attract purchasers by offering homes at a ‘comprehensive cost’ with no secret charges. Here is a glance at how this benefits homebuyers monetarily. Purchasing a house can be a big task at hand, particularly on the off chance that the homebuyers skirt the fine print. Specialists subsequently accept that purchasing a comprehensive home is advantageous as every one of the subtleties is imparted at the earliest reference point, consequently keeping away from any shocks.

The general property costs are extensively partitioned into two sections – one that will be paid to the developer, and the other is the legal and legitimate expense to be paid to the public authority. While the previous classification generally involves 80 to 85 percent of the general property cost, the excess goes to the public authority money vaults.

A comprehensive cost thinks about key parts, for example, stamp duty obligation and enrollment charges, as well as home credit handling expenses. Moreover, charges connected with the vehicle leaving the region, floor rise top-notch, fit-outs, support, and so on are likewise remembered for the comprehensive cost. Aside from this, engineers likewise offer inside plan bundles at an extra expense. The expense of these bundles fluctuates relying upon the homebuyers’ necessities and the size of work.

For the most part, to save time and exertion, a few purchasers look for a comprehensive arrangement close to the kitchen, washroom, closets in rooms, and so on. The thought is to move into a prepared and utilitarian home – very much like the fitting and play idea in an office space.

Why purchase a house with a comprehensive cost?

Taking a goliath jump of purchasing a house is irrefutably something that you ought to be pleased with. Nonetheless, guaranteeing that this choice doesn’t land you in a monetary wreck is something you ought to likewise be careful about. One of the significant motivations behind why you ought to purchase a house with a comprehensive value is to try not to pay more than anticipated or conveyed. An engineer might provide you one cost estimate, yet subsequent to adding every one of the charges, the number could be much more than the cost cited. For instance, for a home costing Rs 1 Crore in Mumbai, the GST will be five percent, stamp obligation, and enrollment charges will be six percent, and the home credit handling expense will be one-two percent. Different charges like floor rise, parking, and other miscellaneous charges will likewise expand the worth of the home by seven-eight percent. Some first-time homebuyers by and large are stunned on the grounds that they don’t represent these numbers. Notwithstanding, in a comprehensive home, the expense of a similar home (for instance) would be associated with Rs 1.2 Crore, however, that is all the homebuyer needs to pay. This assists home purchasers with arranging their funds better and dodges the latest possible moment monetary crunch.

A comprehensive house cost is additionally advantageous to the developer. On the off chance that a developer promotes projects with a comprehensive sticker price, featuring that there are no secret charges, he has a superior possibility of drawing in likely homebuyers.

Remember these elements while purchasing a comprehensive house:

  • Peruse the arrangement and every one of the deals archives cautiously to know where your cash is going;
  • Charges connected with an inside plan can be chopped down. Be vocal about the costs with the designer to get these expenses brought down;
  • An expected level of investment is an unquestionable requirement, regardless of whether you are purchasing a house at a comprehensive cost;
  • Ask the developer whether the charges would fluctuate if stamp duty or GST undergo any change by the time, they take possession. This will be applicable if you are booking an under-construction house;
  • Obviously, inquire as to whether you should pay any more sum than what is referenced in the cost sheet and pricing shared.

Five hidden charges to keep an eye out for:

  • Stamp duty and registration charges: It is an expense paid to the public authority without which you won’t be viewed as the legitimate owner of the property. It drifts around three-seven percent relying upon the city and the state. While this is compulsory tax homebuyers have to bear, most first-time home buyers tend to not account for this.
  • Parking charges: Developers charge extra for your four-wheeler or bike parking spot. Most developers do not include this in the agreement value of the house. This may depend on the number of additional parking opted for by you
  • Floor rise: The higher you go in a skyscraper, the more you need to pay. This charge is based on the floor you opt for, the location of the project, and also on the developer
  • Home loan processing fees: If you need to purchase a house with the assistance of housing credit, check the home loan processing charges. This fee is ordinarily around one-two percent of your loan amount
  • Furnishing charges: Most developers offer inside plans as an important component of the bundle. This expense relies upon the homebuyer’s necessities and how much work is required.

Benefits of buying property in a woman’s name

Posted on by HomeCapital Team

You may have heard that new home buyers often register their property in their wive’s or mother’s names. Doing so provides some significant benefits to home buyers. It is also an act of women empowerment that the government has been trying to push for years. The benefits differ from place to place and on ownership status: sole or joint owner. Apart from providing your wife/mother with a valuable asset, take a look at some of the other benefits of buying a property in a woman’s name.

Benefits of buying property in a woman’s name

1.   Tax savings

If you have gone for joint ownership, then both individuals can apply for tax deductions under Section 80C from your taxable income. The dedication will be dependent on the ownership share between the two. In case of equal ownership, a joint deduction of up to Rs 1.5 lakh yearly can be availed on the principal of your home loan. In addition, another joint deduction of up to Rs 2 lakh can be claimed on the interest of the home loan.

In case the woman is the sole owner and is a first-time buyer, then she can claim an additional Rs 50,000 for the principal of the housing loan under Section 80EE. Thus, it’s a good idea to figure out the state of ownership based on additional loan tax benefits.

2.   Lower interest rates

The biggest factor when considering buying a home is the rate of interest on home loans. If your wife has a source of income, then she can avail a home loan and enjoy interest rate discounts exclusive to women. Most banks provide a discount of up to 1% to women applicants. This percentage differs from bank to bank. Additionally, going for government schemes such as Pradhan Mantri Awas Yojna (PMAY) will also let you enjoy a subsidy of 6.5% for a term of 20 years.

3.   Reduced stamp duty

Stamp duty can be the single largest expense of a home buyer, second to the actual home itself. It is usually around 4% of the total value of the house. The government provides concessions of up to 2% to women on stamp duty. The percentage may seem small, but it can be a large number in terms of absolute value. The exact discount is dependent on the location.

4.   Deduction on rental income

If you’ve rented out your home, you’ll be happy to know that you can claim tax deductions on your rental income. When renting out your property, women can have interest deductions on interest paid on loan against rental value over and above the standard 30% deductions on rental income.

5.   Get a financial cover

Buying a home in a woman’s name is a great idea to secure yourself financially. In case of bankruptcy or debt, your home can usually be seized to recover losses as it is a major asset. However, if it is in the name of your wife, then it cannot be claimed by creditors or government officials. This is subject to the condition that your wife is not a guarantor or co-owner of any loans taken by the husband.

In the case of co-ownership of a home, the succession issue is easily resolved. If one of the parties is met with an untimely demise, the other partner becomes the sole owner of the property. There is no scope for any legal contest over the issue of succession, and you get to save money on legal help. 

Points to remember when buying property in a woman’s name

Some points should be kept in mind when buying property in a woman’s name so that you don’t get blindsided later.

  • The woman should have a source of income to individually claim tax benefits.
  • If the woman has no income, the property will be considered the husband’s asset.
  • In case of divorce, the property will be divided based on the sale deed.
  • In the case of joint ownership, you will be taxed as per the gain to your income.
  • If there are any legal problems in the future, the husband will be jointly responsible even if the woman is the sole owner.
  • Banks will not provide a home loan to a woman with no source of income.

Conclusion

In this article, we have discussed how buying a property in a woman’s name can be beneficial. Involving a woman in the ownership of a property yields plenty of benefits. Whether the woman is single or married, there are benefits to be had. If the woman has a source of income, she gets to have all the benefits. But even if she does not, she can still claim some of the benefits at the time of purchase. As a society, we should strive for the empowerment of women, and such benefits aim to do just that. If you are an aspiring female homeowner like many others, then we at HomeCapital are here to help you fulfill your dream as India’s first home loan down payment assistance program. Just apply for any of our down payment plans and get interest-free capital towards your various home buying needs. At HomeCapital, we believe in women empowerment and have started a movement to encourage more female homeowners through our #BreakTheBias program. Through this program, in addition to the general benefits, women will be provided with complementary cancer insurance cover* of Rs 1 lakh on successful disbursement of the down payment loan.

How is an NRI home loan different?

Posted on by HomeCapital Team

One of the major financial goals of the common man includes purchasing a house irrespective of where they reside. It does not matter whether you live in India or plan to return to your country someday, a home is extremely essential to achieving peace, stability, and togetherness. Lenders understand the sentimental values behind these houses and offer different home loan interest rates on various houses accordingly. However, please note that the home loan eligibility and the process for native residents differ from NRI home loans in many aspects.  Before moving forward, let us first understand who constitutes the NRI status.

Who can opt for an NRI home loan?

Non-resident Indians are basically people who have authorized Indian passports and are considered citizens of India but they do not reside in the country. The reason behind their staying abroad can be anything ranging from higher studies, work projects, jobs, or some assignments. However, a proper definition of the NRI status is mentioned in the Income Tax Act. As per that definition, a person who has lived in India for less than 182 days in a single financial year is granted the status of Non-Resident Indian, or NRI. Thus, they can opt for an NRI Home Loan.

How are NRI home loans different from home loans for Indian residents?

There could be certain differences either in the eligibility criteria or the application process for NRIs. For instance, most Indian lenders prefer people who at least have a graduation certificate in order to approve their NRI Home Loan application. Moreover, they might also require the applicant to have a co-applicant or borrower who is an Indian Resident. Please also note that the interest rate on NRI Home Loans tends to be greater than that for Indian residents. This increment is due to the increased risk of lending money to the NRIs.

The primary differences are explained below.

1.  Income Tax Act Section 6 definition

As per this Act, a person who has stayed in India for over 182 days in a year or at least 365 days in the previous four years and sixty days minimum in the present financial year qualifies as an Indian resident. Thus, they can opt for regular home loans. An NRI status, on the other hand, is granted to people of Indian origin who reside in a foreign country and who have stayed in India for less than 182 days in one financial year or below 60 days and 365 days in the previous 4 years. They need to opt for an NRI Home Loan.

2.  Place availability

Indian Residents can opt for a home loan regardless of the place they live in. NRI Home Loans, on the other hand, applies to most countries with a few exceptions. These include North Korea, Iran, Syria, Cuba, Crimea region of Ukraine, Sudan, Bangladesh, Pakistan, Afghanistan, Sri Lanka, Hong Kong, Nigeria, China, Nepal, Bhutan, and Macau.

3.  Home loan period

The tenure of home loans for Indian residents differs from that of NRIs. While the former have up to thirty years to return the entire money lent to them, the latter get around twenty years to pay off their home loan debts.

4.  The interest rate of home loans

As already stated before, lenders have a higher interest rate for NRI Home Loans due to the greater risk factor. Thus, the rate for Indian residents is a little lower than for the NRIs, who pay a marginally higher interest rate ranging between 0.20 percent to 0.50 percent.

5.  Salary or income requirements

Indian residents need to have a minimum salary of INR  20,000 in order to avail of the home loan. NRIs, on the other hand, need to have a salary of at least INR 5,00,000 in order to avail of the NRI Home Loan.

6.  Eligibility criteria

The eligibility of Indian residents who wish to apply for a home loan is calculated based on their banking surrogate, salary multiplier, and so on. However, these factors are not used to determine the NRI Home Loan eligibility. During the application process, the documents required by the Indian residents include KYC documents for identity and address proof, salary slip, six months bank statement, income tax returns, and passport-sized pictures. While NRIs need to submit all the above documents, they need to provide additional documents as well. This includes their passport copy, NRO or NRE account statement, employment contract, work permit, Visa, Salary slips, and the power of attorney. Please note that the documents required for availing of NRI Home Loans might differ from lender to lender. Thus, make sure that you know all the important information such as interest rate, documents required, and home loan tenure before applying for a home loan. Once you have fulfilled the eligibility criteria, handed over all the required documents during the application, and abided by all the legalities, you can get an NRI Home Loan with ease.

Things most neglected while buying an apartment

Posted on by HomeCapital Team

An apartment is a lifelong investment. Once you buy an apartment, you will most likely spend the rest of your life there. Yet, a lot of homebuyers may neglect to pay attention to some very basic things when selecting an apartment. A long-term investment such as an apartment requires thorough attention, research, and planning before making the final call. 

Several factors such as location, amenities, and comfort may contribute to your final decision. However, sometimes home buyers often miss out on a few important things of note when buying an apartment. We’ll list them out here, so you can pay extra attention when you make your decision. 

Must-follow steps before buying an apartment

Below are the six must follow steps that are essential while buying a house:

Research on the builder and their finances

Though a lot of people do a quick search on the internet, a thorough field search is always neglected. When buying an apartment, talking to previous customers should always be a priority. Buying your apartment from an experienced builder with a good track record is always the better option. A reputed developer with good reviews will have a better network and systems in place when compared to a new one. 

Financials are also one of the most important factors that get neglected by the buyer. A builder with strong finances will likely complete the project on time. They’re also better equipped to deal with any problems that may arise. On the other hand, a builder whose project depends completely on the fund from the customer can find itself struggling in case of delays. 

Do a market study before buying an apartment

The market is always changing. And so is the cost of an apartment. When buying an apartment, it is vital to know whether it is the right time to invest all your hard-earned money into a property or not. The market could be on a high right now, and as such, the cost of any new project will likely be inflated. This is why it is important to put in your money at the right time when the price of new projects is more reasonable.

RERA Norms

A lot of people might have seen project advertisements with the tag ‘RERA approved’. This is not just some optional certification but a very important part of any medium to large apartment project. And more often than not, homebuyers don’t pay attention to it. 

Any apartment building with more than 500 sq. m. of land or more than 8 apartments needs to be registered with RERA. Until it is registered, no sale is recognized by the authorities. In fact, not just the project but real estate agents also need to register themselves under RERA to facilitate transactions. Never even think about buying an apartment until it is RERA-approved. 

Paperwork and land documents

Documentation and legal verification of the land are perhaps one of the first things one should consider when buying an apartment. It is also one of the most neglected ones among homebuyers. Not a lot of customers ask to see the documents regarding the land the project is being built on. While the chances of subterfuge are small, it is always safer to go through the documents. Hiring a legal consultant to check them is even better.

Check the sale agreement before buying an apartment

This one applies to everything and not just apartments. Almost every person is guilty of simply skipping or skimming through contracts at one time or the other. When you are buying an apartment from a builder, the sale agreement should be scrutinized carefully. Because once you sign on it, you will have no room to contest anything on it. 

Make sure that you plan the sale agreement signing well in advance. It should carry the date of possession and include a penalty clause for delays that the project may suffer. Most importantly, ensure that the agreement is registered; otherwise, it may be nullified. 

Hidden costs

Some builders often only advertise the bare cost of buying an apartment. And when the buyer goes to sign the sale agreement, they often skip over the hidden costs that may be included, only to be surprised later on. Always be sure to ask for full disclosure from your builder. Enquire specifically about the hidden charges that may be incurred on buying an apartment. Some of the most common hidden charges include taxes, maintenance, clubhouse, legal charge, etc. 

Conclusion

Buying an apartment is a dream for many people. When you’ve worked hard to find your dream home and made a wish list to be fulfilled, it is only normal to want the best. This is why it is crucial to pay extreme attention to all the aspects of a sale. From documentation to hidden charges, always be sure to not neglect anything. Just pay attention to the things listed above, and you will always keep yourself safe from any blunders. 

Once you do confirm all the things yourself, just visit HomeCapital to avail a down payment assistance loan for your dream house. Our interest-free loans help to accelerate homeownership, and the whole process is completely online and transparent. 

Know how kids influence the home buying decision

Posted on by HomeCapital Team

Some obvious factors are considered when it comes to home buying. Budget, location, and environment are a few of them. However, for a homebuyer with a family and kids, several other factors come into play. From security to schools and the input of the kids, the homebuyer needs to consider everything. 

Children are often very picky about their needs and tastes, and they aren’t afraid of articulating them. If they don’t like something, they’ll say it, and if they do, they’ll agree excitedly. Of late, a lot of homebuyers also consider their opinions and their needs before coming to a decision. Let’s find out how children influence their parent’s home buying decisions.

Ways kids influence the home buying decision 

Below are six ways how kids influence home buying decisions:

Schools

Every parent aims to provide the best education to their children. Quality schooling is one of the primary goals of parents when they decide on home buying. As such, they’ll seek houses that are in the vicinity of the best schools in the area. This also makes the daily commute to and from school much easier and safer. A house where a good school is within easy reach will always shoot up on the priority list.

Amenities for children

Homebuyers with kids will always be on the lookout for projects that feature child-centric amenities. Families with a growing child are more likely to be attracted by amenities such as a clubhouse, swimming pool, and playground. Apart from this, transportation for easy commute and road connectivity are also key factors that are considered. In this regard, a housing society by a reputed builder is the best option for home buyers with kids.

Open spaces

Kids love outdoor activities. Most of their time is spent playing with friends in the playground in the backyards. It’s no wonder that play zones and open space are one of the prime factors in home buying for many parents. A house for such buyers should not only be spacious on the inside but also on the outside in the courtyard. In the case of high-rise apartments or places where a lawn or a backyard is not feasible, a playground and public parks are the next best option. Having open spaces will not only allow more freedom for the child but will also allow parents to have some quality time with them. 

Safety

For any homebuyer with children, safety is a determining factor when it comes to home buying decisions. Parents pay extra attention to the safety and security that are offered by the location. While amenities and proximity to schools and offices are essential, the safety of the children and the neighbourhood is high on the list too. To get an idea about the safety of the area, a look into the statistics from the police station will do. Before finalizing the home buying decision, extensive research into the safety and security of the locality is crucial.

Area of the property

A 1 BHK house will be more than enough for a person who plans to live alone. However, those who have kids will not be satisfied with that. Since kids have a lot of room to grow, their need for space will continue to increase as time passes. In such a case, a better home buying decision would be to go with a larger house. However, whether it is a 2 BHK or a 3 BHK house, it should have enough area to accommodate the whole family. 

To future proof the house, parents would also consider a separate room for the kids before finalizing the home buying. Apart from this, the house should also have a lawn or a balcony where the children can play. As they will always require extra space to do their thing, parents ensure that the house has enough indoor space. 

Neighbourhood

Community areas are great for the kids. Since they are still growing, a community allows them to meet up with other children and form friendships. The daily interaction with other children positively affects the social nature of the children. Kids who do not interact with other children are often more reserved. A neighbourhood with a good community and other children will be preferred by parents when it comes to home buying.

Conclusion

There is a great deal of confusion regarding the spending habits of the up-and-coming generation. However, it is quite clear that the home buying decision of a lot of families is influenced by their kids. According to a report, almost 90% of purchase decisions are influenced by the kids. While this number pertains to the overall purchases, it’s no stretch to say that kids have a lot of influence in the finalization of a home buying decision.

Everything You Need To Know About Tripartite Agreement

Posted on by HomeCapital Team

Tripartite as the name suggested is an agreement involving three parties. Generally, only two parties are involved in an agreement. However, certain cases mandate the presence of a third party. In the case of homebuyers who purchase a house using a home loan, a tripartite agreement can be made.

The three parties involved are the seller, the buyer, and the financial institution providing the funds. This legally binding document amongst the parties is called the tripartite agreement. Such documents are extremely important to protect the interest of the buyers, especially in the case of under-construction houses. The agreement also reaffirms the transfer of the property to the financial institution in case of default from the buyer’s side.

What does the tripartite agreement state?

  • Three parties are referred to in this legal document: the borrower, lender, and developer.
  • The developer is the one in charge of constructing the building as per the specifications, approval, and map as it was in the agreement.
  • For the duration of the agreement, the developer is not allowed to enter into the same agreement.
  • The developer should have a clear claim and title over the land.
  • Various information like the sale proof, phases of construction, EMIs, interest rates, and many more. 

How does it work?

Tripartite agreements are established to protect the rights of the buyers by having a powerful institution like a bank act as an arbitrator in case of a dispute. These agreements are most commonly used for home loans or mortgages for under-construction properties.

The agreement lists out the status of every party and monitors the important documents. A list of rights and remedies for the buyer against the lender or the builder is also written in the agreement. In addition, important details regarding the project such as EMI, phases of construction, and date of possession are also mentioned in the agreement.

Tripartite agreements also have a unique facet called subordination. It is a legal process that defines how to whom and when agreements in the property are assigned to the parties. It keeps the buyer safe from fraud and prevents the developer from selling the same property to another party. For instance, in case of the demise of the buyer/borrower, the developer may have the first right to lien for what is rightfully owed to him, and then the bank would retain a lien on the remaining assets. It also acts as a deterrent to the developer to not slack on his liability to construct the building as per the specifications.

Is the tripartite agreement important?

In short, a tripartite agreement is a legal agreement that lists out the responsibilities of each party. It also decides on the terms and conditions, which are enforced during the duration of the construction. Such agreements allow everyone to protect their rights.

In case of default, the banks get their due. And in case the developers do not work on the property construction, the bank acts as the arbitrator and protects the interest of the buyer. Thus, it works as a system of checks and balances for everyone involved.

When are tripartite agreements useful?

  • When a home loan is taken out for an under-construction house, a tripartite agreement is made between the buyer, the seller, and the financing institution.
  • At the time of selling the flat, if the society is registered, then a tripartite agreement between the seller, the buyer, and the society is made.
  • When a society becomes a part of a tripartite agreement, it affirms that it has no objection to the transfer and confirms the transaction.
  • If there is no society, then a tripartite agreement between the builder, the seller, and the buyer is made.
  • If a builder becomes part of a partite agreement, the responsibility of the builder is to make the new buyer a member of the society.
  • In case of encroachment on a property such as a house or a farm, a tripartite agreement is needed.

Benefits of a third-party in tripartite agreements

  • The third party in a tripartite agreement indirectly becomes part of the transaction.
  • Such a party cannot claim in the future to be unaware of the transaction.
  • If the third party has any legal successors or heirs, they cannot make any challenge to the transaction.
  • It helps convince financial institutions or banks about the genuineness of the sale, and thus provides financial assistance to the buyer in the form of a home loan to secure the property.
  • A tripartite agreement implies that the seller has no arrear payable to the third party.

Conclusion

Tripartite agreements are quite useful to buyers looking to secure a housing loan for under-construction properties. While the property is under construction, you will not be its legal owner. Hence, the builder is a part of the agreement. Such agreements are particularly useful to avoid any future conflicts that may arise due to differing claims, such as in the case of the death of the buyer or default of payment.

Prior to signing the tripartite agreement and securing a home loan, the primary step is to pay the down payment of your property. Don’t worry. You don’t have to search high and low. HomeCapital provides you with any assistance you may need. We are India’s first down payment provider. Find out your eligibility for the down payment loan today and only repay the principal.