Blogs – Page 26 of 39

Eco-friendly house – Why should you buy them?

Posted on September 29, 2021November 26, 2021 by HomeCapital Team

Our generation is witnessing the rise of the eco-friendly house as buyers and developers actively participate in the fight to preserve our environment. There is a distinct change in the way construction is done worldwide, that is also influencing the Indian construction industry. In today’s day and age, Indian homebuyers are definitely choosing to invest in eco-friendly houses.

Why choose eco-friendly houses?

Natural resources are depleting at a rapid pace. It is all of our responsibility to save resources whenever we can and to use them optimally. Investing in an eco-friendly house is one step towards being eco-friendly. While global warming seems like too big of a problem for one person, you can make a difference. A house that allows you to decrease your energy usage and carbon emission is a huge step in helping the environment.

What constitutes an eco-friendly house?

Basically, it uses natural resources to help reduce your carbon footprint. Eco-friendly houses implement appliances that save water, use solar panels, wall insulation, lighting and air conditioning that saves energy, etc. There are huge benefits for your life and the environment when you opt for a house that is eco-friendly. These benefits include:

1. Water and energy efficiency

There has been a steady rise in the prices of energy as the years go on. As the population increases, so does the need for energy and its cost. Putting together home systems that save energy will help you be cost-efficient and lower your electricity as well as water bills. You will be able to earn the set-up cost quickly through these various savings.

2. Increase in building’s lifespan & better resale value

Implementing sustainable materials while building a house extends the life of your home without reducing its value in any way. There are several school-friendly resources you can use such as recycled metal, wood, and steel, bamboo, etc. Your building will be stronger and more durable with the use of precast concrete slabs. It will also help save energy. While eco-friendly houses might seem costlier than the rest at least in the beginning, the money you save in the long term is worth it. If you’re thinking of living in your sustainable home for a long time and then selling it, you will get a better value because it is an eco-friendly house.

3. Better quality of air

While building a house that is focused on environment preservation, developers choose materials that are extremely eco-friendly. These include implementing long-lasting adhesives and paints, among several other materials to reduce toxic emissions. The environment definitely benefits from this and so do the people who live in the house. It keeps you safe from developing certain health conditions such as allergies and asthma. Ventilation systems that are purer are part of eco-friendly homes that help make your air quality better. It just makes the perfect environment for you to live a healthy life in.

4. Cost-effective

When your house is being constructed, utilising recycled materials helps reduce the effective cost. Eco-friendly options such as a water heater without a tank and metal roofing, initially are costlier. However, the money you save from these increases your overall savings as time goes on. Your utility bills are reduced with eco-friendly options like geothermal heating or solar panels that use less energy. Landfill wastes can decrease if long-lasting construction materials are used, which saves a lot of renovation and repair costs.

5. Environment-friendly surroundings

The environment within and surrounding your house will be exceptionally healthy because there will be a decrease in waste disposal and pollution. This helps conserve significant amounts of energy. Additionally, if your house has a lot of trees or plants, gardens, rainwater harvesting, sewage treatment, solar power, and other such eco-friendly elements, it will help nature thrive. It creates a healthy cocoon for you to live in.

6. Save time

You can reduce your construction time by selecting eco-friendly construction materials. Small businesses get a boost when you choose materials that can be bought locally. It boosts the local economy and decreases the fuel wasted in shipping in materials from a distant location. You can also have better control over the quality of the materials as you can just pop in the local store and check them yourself.

Buying an eco-friendly house could be one of the best decisions of your life. It helps the environment in the long run and provides a variety of health benefits. Saving and protecting natural resources, using them sparingly, and protecting nature will help the next generation as well. It will help you live a long healthy life and do your part for the environment.

Is now the time to buy a home for renters?

Posted on September 23, 2021November 26, 2021 by HomeCapital Team

The real estate market is humming with the benefits of lowered processing fees and a distinct fall in interest rates. During these times, having a financial plan in place to take care of your family and achieve the goals you have set together is important. Hence, in the case of renters, investing in the real estate market is believed to be one of the best ways of keeping your money safe and helping it grow as time goes on.

One of the main questions you need to keep in mind while considering any kind of investment is if the timing is right. The pandemic has taught us the importance of having a backup plan in case of an emergency. However, it has also changed the game in many ways. For example, it has tipped the scales in the rent versus buying debate in favour of buying a house. It is unnecessary stress such as moving houses, paying monthly rent, and many more such factors that renters can get rid of if they have the stability of owning a home. Working from home has made buying a house a practical need. Let’s take a look at the reality of the real estate market and if buying a house is the best decision for you.

1. Should you buy or stay on rent?

Are you one of those renters who have been dreaming of purchasing a house for a long time? Do you have a steady job and income? In the past 5 years, there has been a significant fall in interest rates that has made buying a house an achievable goal. You can also find plenty of homes that are ready to be moved into. The buyers are in better control of the negotiations in the real estate market these days, which makes purchasing a house extremely tempting.

For those renters who do not have financial stability at the moment, you can wait until your cash flow becomes better. In that case, staying on rent for a bit more time could be a realistic option. However, considering the low loan rates in the market right now, you could take a loan and buy a new house. Your monthly rent could instead be spent on paying back the loan. This will help you end up with a house of your own in the end.

The entire world is feeling the stress of this pandemic. With an increase in the work-from-home situation, there are a lot of people who are migrating out of cities. This has brought new life to the real estate market in locations that were earlier considered unfit because they were far from offices. However, renters are now investing in affordable housing in these areas. So if you’re a renter that can’t afford to buy a house in the city, you can easily buy a place of your own on these outskirts.

2. Low-interest rates

The final quarter of 2020 has witnessed banks reducing their home loan rates. This has given rise to a huge demand for home loans as they prove advantageous to the customers. Home loans are currently offering their lowest rates in the last 15 years. Several private banks as well as public sector banks have reduced their home loan rates. This rate fell further in 2021 down to 6.65 – 6.90% per annum. Some banks are offering rates as low as 6.79- 6.90% per annum. Hence, the time to go for your dream house is now.

3. Tax benefits

You can have huge tax advantages on home loans when you file for your tax returns every year. You can get many tax benefits if you have taken a home loan. In fact, Income Tax Act, 1961, Section 80C dictates that you will be offered a ₹1.5 lakh deduction from your income to help repay your loan. Moreover, under Income Tax Act’s section 24B, you can get a ₹ 2 lakh deduction for interest payment on your home loans.

The pandemic has worked for a few sectors. For buyers in the real estate sector, has received a boost. From offering home loans at a reduced rate, to receiving tax benefits, this is the best time for turning your dream of buying a house into reality.

How the pandemic gave rise to the millennial home buyer

Posted on September 17, 2021November 26, 2021 by HomeCapital Team

Consumer behavior has dramatically been altered since the beginning of this pandemic. The priorities have shifted to health, security, and financial reliability for the millennial age group which includes the decisions that they make about real estate investments as well. Pandemic has also increased the benefits of homeownership due to a decrease in interest in home loan rates, decrease in stamp duties, and a good policy environment, along with many more. Let’s take a look at the reasons that are helping bring this real estate shift for the millennial group.

1. Discounts and schemes

The Indian real estate market did not get hit as badly as many expected it would. Several developers grabbed this opportunity to bring new offers and discounts to attract new home buyers. In fact, reports have pointed out that these discounts have helped boost sales for many developers while their pandemic has been going on, as compared to the sales taking place before the pandemic. Moreover, millennials between the ages of 30-40 years are considered the newest active customers in the market. In addition to this, reduced interest rates and government decreasing the rates of house purchases, have given millennials the right opportunity to invest in the real estate market.

2. Boost in the relocation of young homebuyers

Investment in new houses has witnessed a huge surge in the millennial age group. This global pandemic reduced the need of being located in the city near to their place of work. It, therefore, opened up huge possibilities in homeownership instead of living in a crowded locale on rent. They could look for houses outside the city where the rates could be more to their liking. It has caused a big chunk of millennials to migrate to different locations. Approximately 47% of the millennial age group choose to live in suburbs rather than rural or urban places. Since social distancing has been on everyone’s mind, buying a house in a less crowded location is much preferable compared to a crowded city.

3. Work-from-home

It is pretty obvious that the work from home reality that this pandemic introduced us to is going to last for a while more. In reality, it has brought a lot of uncertainty regarding safety, which has led many companies to consider work from home indefinitely or, in certain cases, build a hybrid work situation. Hence, an increasing number of millennials are choosing to buy bigger houses, since they are enabled to work from any location. Moreover, there are several companies that expect their employees to have a proper space to work from within the house. Therefore, several people could be working from home in a single household. This has introduced the need for bigger houses that accommodate the lifestyle and needs of the homeowners.

4. Role of technology

Technology has highly influenced the real estate sector during this pandemic. Millennials are one of the biggest users of technological devices, which causes them to have a huge impact on the way they choose to buy a home. Mobiles with the internet have made the finding, scouting, and buying homes process extremely simple, especially since we were not allowed to travel during the lockdown. A huge number of millennials are using online platforms to gather information regarding the real estate sector. While this might seem obvious, the number is twice that of the older generation looking for houses using online platforms. Technology has helped millennials get into contact with people via text to solve their questions and get appointments. During this pandemic, the house buying process has included online video tours, pictures, and live streams of houses millennials are interested in.

5. Secure long-term investment

The pandemic has led people to reconsider all of their financial investment choices due to various reasons. There are a lot of investment options available, but they might not provide the long-term stability that real estate provides in India. While rental properties give the freedom to change residence as often as you might want, it does not provide the security of stability that owning your own house gives. Hence, millennials are choosing to buy a house of their own.

Real estate investment has shown itself to be a great long-term financial investment option for millennials. It also allows developers to benefit from this shift of millennials choosing to buy a property rather than just renting one. It has allowed the Indian real estate sector to be revived amid this pandemic.

Six must-have features in a residential apartment

Posted on September 14, 2021November 26, 2021 by HomeCapital Team

In life, our property purchase decision is based on a list of essential aspects. So, if you know your list well, you will be able to take the right decision. Especially in the residential apartment purchase, you will come across a variety of features amongst which some form a necessity. Let us have a look at the story behind the residential apartment complex.

The metro cities made the residential apartment concept popular almost 3 decades ago. Over a period of time, this concept was adopted by Tier II and Tier III cities across the nation. The residential apartment concept introduced the theme of lifestyle amenities in the real estate market. These amenities were essential and the benefits of the same were well understood by the developers as well as the buyers. This also introduced the culture of amenities in standalone towers.

We will now discuss the six must-have residential apartment features.

1. Location

Before you even enter a residential apartment complex, its location has to be thoroughly checked. You need to ensure that your apartment location is central to the facilities like hospitals, schools, educational institutes, superstores, malls, etc.

Some residential apartment complexes do include schools, a single-screen theatre, a large grocery store or multiple ones, and a small first aid center. However, this is not possible for most of the complexes due to lack of space and maybe even due to technical constraints.

A remotely located residential apartment complex with all the amenities but no connection to social and communal facilities may make traveling a hassle. Hence, location becomes the most significant feature in apartment purchase.

2. Car parking

Car parking criteria is usually fulfilled by the developers in a residential apartment complex. However, it is advisable to check whether enough and spacious car parking is provided for easy car movement. In case you own more than one car then check for additional parking available. You also need to check whether enough visitors’ car parking is provided. Buying a residential apartment with dedicated car parking is a must to avoid regular chaos over parking spaces.

Ideally, covered parking is preferred over open parking. But if due to planning constraints fully covered parking is not available then at least a combination of covered and open needs to be there.

Going a step further, you can check the apartment area-car parking ratio as per the municipal corporation rule to know the accurate figures. This will give you a clear picture.

3. Security features

To ensure mental peace and safety your apartment should have the required security features. So, you need to ensure that the residential apartment complex has good manned security and is well equipped with surveillance cameras covering the entire premise without any blind spots. Furthermore, also check if your apartment has a multi-apartment video door phone installed. This will allow you to speak to your visitor as well as speak to other apartment owners through the intercom.

4. Eco friendliness

An eco-friendly apartment will cost you slightly more but it will surely give you long-term benefits to enjoy.

Eco-friendly residential apartments are homes reducing the carbon footprint and energy use. In simple words, it conserves energy and natural resources and some ways of eco-friendly solutions are discussed below.

i. Solar power solution: Roof-mounted solar panels are used to provide electrical power for communal areas, elevators, and water pumps. This solution saves energy and achieves a substantial reduction in electricity bills over a period of time.

ii. Water conservation: First, you need to ensure 24 X 7 water supply. Then you need to check for water conservation systems like rainwater harvesting, sewage treatment plants, and water
recycling systems.

iii. Solid waste management: This is yet another feature that protects the environment. The system segregates the type of wastes clearance dispatch.

iv. Energy efficient lighting systems: You need to ensure that LED lighting systems are used which save more than 50% energy.

5. On-site maintenance

Trained and efficient on-site maintenance personnel must be present to address any household issues like plumbing, electrical, mechanical, etc in real-time on just a phone call. This will maintain your mental peace as you do not have to rush to find someone to fix these issues.

6. Fitness, sports and recreational facilities

Residential apartment including the first 5 features still remains incomplete when it comes to health. If you are a health-conscious person then this is a must-have feature and in case if you are not, you can start to become one. An apartment becomes complete when it has a gymnasium, spa, sports club, jogging track, and children’s play area to keep them fit. A part of the recreation area is generally dedicated to senior citizens where they can sit and enjoy some fresh air and enjoyable conversations.

In a nutshell, you need to narrow it down to a residential apartment that is well-connected locality facility-wise, eco-friendly, easily maintained and health-friendly.

How to do your investment planning when planning to buy a home

Posted on September 9, 2021November 26, 2021 by HomeCapital Team

A great achievement comes at a great price. You thinking about buying a new home is a great thought. To make this thought a reality, you will need detailed investment planning and only then you can make a successful home purchase. It is indeed a dream project in itself giving you a sense of achievement and emotional peace. Let us have a look at how you can do your investment planning to buy your home

Calculating your current expenses

This is your first important step in investment planning. Current expenses act as a reference point in case you are opting for a home loan. You need to have a detailed view of current expenses and check where you can cut down and start saving and investing.

Current saving and income projection

Have a look at your current savings and also ponder over your income forecast for at least 4 years ahead. This step is to give you some idea of how much you can invest and the amount of down payment you can make against the loan.

Credit history

This parameter surfaces especially when you consider the home loan option. Your credit score must be high to avail the optimum benefits of the loan. If you have any existing loans then ideally you must clear all the loans if possible and then opt for your home loan.

Home budget and deadline

Now that you have assessed the previous parameters, you need to figure out your home budget. You need to know a range, for example from Rs. 80 lakhs to Rs.90 lakhs. When the budget is known then you can figure out property size and location. Once the budget is finalized, you need to set up a deadline to make the home purchase. The home prices keep rising in most locations, so a delay in decision-making may result in a price hike. You may have to change your home parameters like size or location. Otherwise, you may end up paying more for your selected property.

Furthermore, if you have already decided on size and location at the beginning, you have to do your investment planning accordingly.

Interior designing expense

Almost every home buyer considers a certain percentage or some amount for the interior design expense. However, you can go a step further and check out interior designing to the deepest detail and its budget and accordingly add this value in your investment planning.

Planning your investment

This is the core of the entire home buying process. At this stage, you are aware of your savings, income and income projections, credit history, and budget. You can consult a financial adviser unless you have a good hold on investment planning. You need to consider several investment options and their returns over a period of time.

Finalizing home price and down payment

You need to gauge the amount of down payment determining the percentage of the home value. The bank loans on residential property are granted a maximum of up to 80%. It is advisable to make a bigger down payment and avail lesser home value percentage loan reducing the financial burden.

Loan amount and loan deals

This is the stage where you know the amount of loan you are opting for. First of all, you need to check your current credit status and pay off the existing loans (if any) if possible. You need to keep on looking for bank offers and deals for loans. Thereafter analyzing factors like rate of interest, foreclosure charges, bank reputation, etc proceed with the bank selection.

Checking the liabilities in the first year

Prior to your home finalization as well as loan procurement, consider your liabilities in the first year. You may have some added overheads or expenses. For example, children’s tuition fees or any specific health activity you have started or you may have taken a car loan recently or some other regular expense. This will help you make some changes in your loan amount and also the payment plan.

Consistent income

This is an obvious one yet not to be ignored. When you are sure of taking a loan, you always need to ensure that you have a consistent income that will pay the EMI of your loan.

The contingency planning aspect became more significant post-pandemic. You need to have some additional income or an emergency fund or both in the case for some unforeseen reason, your main income halts. In addition, you also need to have installments saved for the first 3-4 months to have an edge overpayment plan. With this move, you can also improve your investment planning with the flow.

Finally, do consider other expenses in detail and plan your investments and payments accordingly. Always aim for a bigger down payment and never invest all your funds for home purchase as this may cause a struggle for other expenses

Neighbourhood matters in a pandemic

Posted on September 8, 2021November 26, 2021 by HomeCapital Team

The lessons learned about living in adversity and leading a life due to the pandemic will remain with us for a long time. Lifestyle has taken an acute turn with the primary focus on health and financial planning as well. The degree of empathy has risen to new heights. The pandemic taught us the better essence of unity in times of adversity living in a community, society as well as neighborhood. We understood the deeper level of how neighborhood matters in a pandemic.

Good neighbourhood

The initial pandemic phase staged a never seen before environment. Nevertheless, there were great neighborhoods filled with compassion and empathy to help the infected households. They followed the strict guidelines of quarantine and sanitization. For example, getting groceries for the neighbor and keeping it outside the entrance door on a sanitized table. Other aspects like keeping a log of quarantine days and checking up about health on daily basis and asking for the needs.

The government ran awareness campaigns about supporting the infected by following the established guidelines and gradually it worked. It was the realization of the importance of neighborhoods making a lasting impact.

Things beyond neighbourhood

The work culture and lifestyle has changed to a greater extent due to pandemic unlike prior to that. The work-from-home culture has made a big impact on life. People have now become health conscious and aim for a healthy lifestyle with regular exercise, sports, jogging, etc. Social distancing and avoiding crowded places are the ones to be strictly followed.

Despite the government awareness campaigns the pandemic guidelines are not followed to the extent as expected. This has its own reasons huge populace, lesser amenities, and congested infrastructure. The public amenities and even the privately owned ones like parks, gymnasiums, swimming pools, health clubs are not enough for the current population by following guidelines strictly.

Apartment living

Living in an apartment has brought a one-stop solution for several challenges faced in the pandemic. Having an apartment in a large residential complex or even a township provides you a complete ecosystem that takes care of your entire lifestyle.

In our lives, mental health is equally important as physical one. When you have all the things available at your fingertips to have your best lifestyle then it is truly blissful.

If someone in your neighborhood has been found to be coronavirus positive, they and their family will have to be in-home quarantine. It is possible that those living on their floor in a residential complex or in an adjacent apartment will also have to self-isolate at home as a precaution. This means that they will not be able to step out to buy groceries or any other essentials. In the case of an apartment complex or a township, the resident can just visit their convenience store on the premises itself.

Residential complex amenities

A residential complex will offer you complete gymnasiums, swimming pools, and jogging trails to take care of your health requirements. Landscaped pathways, lush green meadows, and big open spaces contribute towards your fresh air needs and a good feel for the eye. Some complexes also have sports clubs with basketball courts, badminton, table tennis, chess, etc.

Benefits of a township

The benefits of a township go way ahead of a residential complex. The township is larger in area than a residential complex. It creates a perfect neighborhood.

A township will not only include the amenities provided in a residential complex but will have schools, hospitals, shopping malls, and cinema theatre. Some townships offer spacious residences as well as large communal areas. Townships also include huge commercial plazas where large corporations have their offices. This provides employment opportunities and a workplace near to home saving your travel time and effort.

So, it is not just about having compassionate neighbors and becoming a good one ourselves but also about having a complete neighborhood sufficing all the needs of life.

Questions you should ask yourself before you invest in plots

Posted on September 6, 2021November 26, 2021 by HomeCapital Team

The journey from considering investing in plots based on various factors to purchasing the same is a pleasant one. It gives a sense of satisfaction and achievement. There are many factors you have to consider before buying a residential property. Similarly, investing in plots has its own share and is indeed not lesser or easier than homebuying. Let us discuss the questions you need to ask yourself before investing in plots.

1. Financial capacity

Investing in plots takes a certain amount of time and exclusive financial planning to generate the funds needed for the plot purchase. Thereafter, you can lock in an amount you wish to invest. Once you are clear with your budget, depending on it you can select the land location and its size.

2. Land investment is also for middle class

Earlier, plots were bought by wealthy people for investments or for second homes. However, now with bank loan assistance, a middle-class person can also buy with proper financial planning.

3. Underlying purpose for plot purchase

You need to be crystal clear about your underlying purpose for plot purchase. This will set up the course for required market research and analysis. You may buy the plot as just a short-term investment for 2-5 years or a long-term one for more than a decade. You may also consider buying it to build a home or sell a ready home with the plot.

4. Adopting a wider perspective

Instead of restricting yourself to researching only about the locality and plot size and shape in the current market, you should adopt a wider perspective by going beyond. You need to check for any further planned developments like industrial, infrastructural, airports, railways, etc. A smart approach is to buy one where there are compelling factors that will appreciate its price. That will yield the sought-after benefit from the investment made.

5. Title clearance

This is an extremely important factor to be checked. The plot must be vacant without any encroachments. The plot you are about to select must have a clear title. It should not be in any dispute whatsoever. Furthermore, the category has to be clearly mentioned like commercial, agricultural or residential.

6. Documents needed

Once you have confirmed the title clearance positively, then you will need a few more documents before you proceed with the plot purchase.

i. Encumbrance certificate

This document is issued by the Sub-Registrar stating that there is no financial or legal liability on the owner and the details of the owner. You must check the property tax receipts to confirm that payments made are up to date.

ii. Release certificate

This document is provided by the bank when all the dues are cleared by the owner if the property had been mortgaged.

iii. Survey and demarcation

It is advisable to hire a professional surveyor to conduct a land survey to verify the demarcation shown in the document approved by the survey department.

Benefits of buying a residential plot

The rate of interest is usually more than 1% on a bank loan for a plot than a home loan.

Banks only provide 70% loan amount to the plot value unlike 80% amount in a home loan unless you are buying a government-owned land.

So before you buy a plot, it is all about spending a good time on the market research and doing your documentation meticulously.

The plot prices in the city are better and appreciate faster than on the city outskirts or farther. However, they are more expensive to buy than the plots in the outskirts. A smart move is to buy a plot in the outskirts of the city where the city limits will stretch in the near future or any infrastructural developments are planned.

Factors that affect property valuation

Posted on August 24, 2021December 13, 2021 by HomeCapital Team

A property purchase is an interesting journey of several milestones. Once you are ready with your finances to buy a property, you are halfway through this journey. Before we buy any expensive product, we need to ask ourselves about the value of the product. How is the value derived? What are the factors that make an impact on the value? Is it overvalued? Let us discuss these factors to ease up your property purchase.

1. Location

This is the first and foremost factor impacting your decision of selecting the property. The property valuation based on location is directly proportional to the number of resources, facilities, and amenities. For example, location near as mentioned below

i. Commercial hubs

ii. Railway stations, bus terminals & airports

iii. Schools and colleges

iv. Hospitals, clinics, and diagnostics centers

v. Playgrounds and sports club

vi. Shopping malls, grocery stores, and chemists

vii. Fruits and vegetable markets

viii. Cafes and restaurants

ix. Banks and ATMs

In simple words, the better the comfort aspect, the more the property value will be based on location.

2. Infrastructure

Few infrastructural developments like railway stations, bus terminals, airports, malls have already been mentioned earlier. In addition, road developments with end-to-end connectivity for various amenities and facilities will soar the property value. This is the most important property valuation factor which gives an identity to the property location.

3. Commercial establishments

Commercial establishments like IT hubs and business parks in the property location significantly have an upward impact on the property valuation. In cities like Bangalore, Delhi, Mumbai, Hyderabad, and other TIER I cities, a developed trend of buying a home near the workplace is seen. This saves a great amount of time, energy, and money.

4. Purchasing capacity

A location rich in commercial hubs will generate more revenue and more income for individuals. This will result in greater spending capacity than a location having industrial and agricultural zones. So, from a seller’s point of view, affordability is high and hence there is a rise in property valuation.

5. Land availability

When the supply is less and demand is more the price increases, the basic law of supply and demand. In urban areas and especially in the large metro cities the vacant land availability is scarce and hence the property value rises. On the contrary, you will come across several pockets of vacant land in Tier II and Tier III cities where you will find a slow appreciation of property value.

6. Supply and demand

The supply and demand equation is volatile with reference to the time factor. When there is an increase in the populace in a specific densely structured locality, eventually it creates more demand. More people would like to buy homes in this locality. But due to lesser supply, the property value rises and vice versa.

7. Trio of property prices, interest rates and income

This is yet another factor that affects property valuation.

If any of these rises to the peak then there is a significant change in the property market. If the prices of property rise to the maximum, depending on the location, buyers will check for affordable homes in other areas.

Interest rates are increased then the buying capacity reduces and hence property demand lowers. Otherwise, when the interest rates are at their low then this creates greater demand as more people want to buy homes.

Income attaining a peak also plays a big role. For example, in a location thriving with IT hubs and there is a boom in this industry, the income level rises and hence the affordability. This creates a surge in the demand and hence the property valuation. This will also have an effect on its neighboring localities.

Furthermore, when the nation’s economy or even the state economy has a tall rise then the income per inhabitant ratio also soars. This also makes an upward impact on property valuation.

8. Structure

The factor of structure has its own presence in affecting property valuation. The property price depends on material cost and quality, type of structure, and prevalent rates of labor. However, this factor does not form a major part in the increase or decrease in property valuation unless exorbitantly expensive materials are used and processes adopted.

9. Size and external view

Size – More the property area, the higher the price you pay. Hence, the larger the size more will be the property value.

External view – If the apartment you plan to buy is giving you a beautiful view then the value will be high. For example, a sea-facing flat or a large open area and a horizon mountain view.

10. Customized property demands higher value

When you ask the developer to make minor or major changes in your prospective apartment then the value will increase. For example, if you ask for a superior quality of basic interior like flooring, painting, and roof. In case, you would choose for kitchen upgrades with upscale equipment, a high-grade kitchen platform, and a landscaped terrace. All of these changes will increase the price compared to the standard apartment.

On a concluding note, this list can act as a guide for you to gauge whether your prospective property is valued appropriately. It is better to devote a good 3 months to check all these factors before narrowing down to your final purchase.

How to check the construction quality of your new home?

Posted on August 18, 2021December 2, 2021 by HomeCapital Team

There are a million things that might define success and give satisfaction. One of the major milestones is owning a house. There is nothing that comes close to the feeling of buying a new home. Buying a house is a huge step that involves a significant investment of time and resources.

About 80% of the people miss out on confirming the quality check. Also, according to a poll, about 18% of Indian home buyers know how to conduct due diligence. However, it becomes extremely important to keep a check on the quality of the construction.

Construction quality checklist

We have listed a few steps that you could use to run a construction quality check

1. Quality of building materials

To begin with, always reconfirm the quality of the building materials. This should include everything that you or your contractor must have ordered. Do not blindly trust any brands, rather, always approach standard vendors while buying the materials. Always make sure that the quality is not compromised!

2. Grade of land being used

Another important thing to remember is to thoroughly check the land on which construction is going to be built. In case you plan on purchasing a plot and constructing your own house, make sure that the soil is of the appropriate type. Avoid building on clay-rich soil. Clay-rich soils change in accordance with humidity. This causes the land to slip and construction to weaken. While checking the land, you must also check the water-retaining capacity.

3. Get your structure right

Needless to say, the structure of the building also needs to be firm technically. It is not expected from everyone to understand the know-how and hence, consulting an expert will be the best option. The height, width, and length ratio play a very important role.

Before you start building your own house, make sure to get the construction plan approved by all the relevant authorities. While your plan is being designed, make sure that construction rules and regulations are followed thoroughly to avoid future mishaps.

4. Determining the quality of cement and thickness of walls

The load-bearing capacity of the tower depends majorly on the strength of the concrete mix used. Ready-mix concrete is available in the market. It consists of sand and concrete in an optimum and predetermined ratio. Developers should ensure that they use the best quality concrete mix. The quality of concrete used can be determined by driving a nail into the wall. In case your nail gets stuck easily without any effort or peels off the cement, it means that the concrete quality is not up to the mark.

Once the plan is approved and raw materials are assembled and ready to use, the base starts building. Now, as the structure starts developing, the next step that you should take should be to check the thickness of the walls. You can actually use your knuckles to lightly knock on the walls and check their hollowness and understand if the material used is of apt quality.

5. Checking the quality of paint

Now, once the walls are built, the most vibrant part of construction – painting begins. This is when your new dream home comes alive with colors. Make sure that the paint used is produced by an authentic organization. Check the plastering of the walls as well. Make sure that the painters use waterproof materials. This increases the longevity of the paint and plaster. Check the paint alignment too. During the night, the light should reflect equally through walls.

6. Checking on materials used in the bathroom and kitchen

Watch out for leakages and patches in the room too. It also becomes extremely necessary to explore the tiles used in the kitchen and bathroom. They need to be easy to clean. These tiles should not become slippery when they get wet. Check the alignment of the floor and the slopes. In the kitchen and washrooms, the slopes should be at a relevant angle so that the water can easily drain.

7. Power and fire safety

Eventually, it will be time to light up your house! This is when you should be extra careful. Check all the electrical fittings religiously. Also, look for faults if any to avoid short-circuits. If your new home is an apartment or has an elevator present, you should test the elevator. This shall act as a precaution so that there are no breakdowns in the future.

Ensure that fire extinguishers are installed all around the building or at the relevant places in your bungalow. These extinguishers need to be extremely handy. During the fire breakout, they should be easily visible. Safety should always be given the first priority.

These are the most essential things that you can keep a checklist of while your new home is in the building stage. As we know, precautions are better than cures! It is also essential to remember that Section 14 of the Real Estate (Regulation and Development) Act, 2016, states the developer’s responsibility to rectify any structural defects, within a period of five years.

All you need to know about CIBIL score

Posted on August 12, 2021December 13, 2021 by HomeCapital Team

In the finance domain, CIBIL score is the aspect that determines the credibility of an individual to borrow funds from financial institutions. For almost two decades CIBIL score is the first and important prerequisite for any credit application.

What exactly is a CIBIL score?

CIBIL is an acronym for Credit Information Bureau of India Limited. And a three-digit number derived through an algorithm run on the individual credit history data is referred to as Score.

CIBIL has been in operations since 2001. However, RBI granted licenses to 3 more credit information companies named Highmark, Experian, and Equifax.

CIBIL has technically collaborated with two international credit controlling bodies one being TransUnion International, a Global Credit Bureau and, Dun and Bradstreet, a global provider of credit information.

The range of CIBIL score is between 300 and 900. Scores closer to 900 are considered as a high score and vice versa. Procuring a loan becomes easier with a higher credit score compared to a lower one.

CIBIL Score Range	Interpretation
– 1 350 – 579 580 – 669 670 – 739 740 – 779 Above 800	No credit history (NTC – New to credit) Poor Fair Good Very Good Excellent

Calculation of CIBIL score

Your CIBIL score is mainly dependent on the number of loans you have, timely repayments, outstanding amount, and number of credit scoring inquiries. Basically, a complete credit score history.

Payment History	30%
Credit Exposure	25%
Credit Type and Duration	25%
Other Factors	20%

CIBIL Report

This is a mandatory document at the time of loan application. This includes a complete history of credit score and relevant inputs from banks and other financial institutions to enable the loan providers to make a sound judgment.

The report comprises of the following;

Your CIBIL score
Personal and contact details
Employment information or professional details
Account status which includes the details of loans, credit cards, outstanding amount, etc.
Credit score enquiries made through loan providers, financial agents and money lenders.

How can you check your CIBIL Score?

You can check your credit score by following the steps below:

Go to www.homecapital.in
You need to click on signup to create an account
Enter your basic details and then enter the OTP received on your mobile.
A password needs to be set up before you log in
Click on Home Finance and Credit Score page will be opened.
Basic details such as name, email ID, mobile number will be prefilled. You will need to fill in details like gender, PAN, monthly salary, and date of birth. Accept the basic terms and click on “Get My Credit Score”.

Soft credit pull versus hard credit pull

When a credit report is pulled to check your credit score, an inquiry is conducted. A credit inquiry could be done in two ways:

Soft credit pull – is a credit check done by the applicant themselves. It is also known as soft Inquiry or soft credit check. These checks may not be recorded by the credit bureau, and they are not associated with a particular application for new credit. Hence, this type of check does not affect the CIBIL score. Thus, prospective homebuyers can check their CIBIL score occasionally to keep a track of their creditworthiness.
Hard Credit Pull – is a credit check carried out by a financial institution or any other authorized lender. It is done specifically along with credit applications like a home loan or credit card application. It is also known as hard inquiry or hard credit check. Hard credit pull does affect the credit score by few points. More of these hard credit checks done greater will be the fall in the credit score.

Hard inquiries do not always, impact your credit scores. One of the most common misconceptions about CIBIL inquiries is that they always have a negative effect on your credit score. Even if a hard credit inquiry negatively impacts your credit score, it is only likely to drop up to 10 points and should recover within the year.

Main factors of CIBIL score

Your CIBIL score is derived through your detailed financial behavioral analysis. Nevertheless, we will discuss the main factors that impact your CIBIL score.

Details of past payments – Timely payments with full amount gives a positive impact on CIBIL score
Credit mix – Having a credit mix of more secured loans and less unsecured can have a good impact on CIBIL score. If a person has only secured loans compared to other having only unsecured loans, then the former will have a better CIBIL score.
Credit score enquiries – Lesser credit score enquiries will keep your CIBIL at a better place.
High credit usage – With high credit usage, it will show a large amount of debt and hence maintaining a high CIBIL score will be difficult. For example, if an individual has a housing loan, car loan, business loan, personal loan and few credit cards then it will reflect a big amount of credit.

Ways to improve your CIBIL score

Below mentioned are a few activities/habits to maintain or increase your CIBIL Score.

Make timely payments of Equated Monthly Installments (EMIs)
Apply only for the required amount of credit
Paying your credit card bill within the interest free period.
Apply for loan only if it is required and keep yourself restricted to one or two loans.

Benefits of high credit score

A high credit score has several benefits. Below are the advantages of having a good credit score:

Faster loan processing – Better credit score forms a faster positive judgment thus speeding up the loan process and once other criteria are met, eventually funds disbursement happens quicker. Lower credit scores will take more time or some period has to be given so that the credit score improves.
Higher probability of pre-approved home loan – A pre-approved home loan is granted by banks to select few customers at their own discretion. Such discretion may be exercised by banks taking into consideration inter alia the credit score of a customer.
Greater limits on credit cards and loans – Financial institutions offers greater limits on loans or credit cards for high credit scoring individual since the degree of risk is lower.
Long tenure loans can be granted – Lenders are happy to extend the loan tenure for high scorers with a lesser EMI as they find it as a low risk manoeuvre.
Low Interest Rates on Loans

When you have a good credit score, you own great confidence. You can negotiate with the banks/financial institutions and grab a low-interest deal. It is always in the best interest of the bank to promote loans to an individual with a high credit score

To become a credit high scorer, it is always advisable to have a high degree of financial discipline. Apply for a loan only if it is absolutely required. And finally, keep an eye on your credit score regularly and make a conscious effort to maintain or improve it.