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Things a Nuclear Family Should Check While Buying a Home 

Posted on by HomeCapital Team

A nuclear family is a small family that mainly comprises a husband, a wife, and their kids.  A nuclear family is different from a joint family in the sense that in a joint family there are more members such as the parents of the husband or the wife, or even brothers and sisters of the husband and the wife. 

Traditional homes used to be bigger (with multiple floors) because they accommodated multiple family members. Parents, grandparents, uncles and aunts, husbands and wives, and children and grandchildren, all lived under a single roof, with a single kitchen. 

This is fast changing now. Couples are moving to different cities for better job opportunities.  Sometimes both husband and wife are professionals and often find it difficult to adjust their professional and domestic lives within the traditional framework of a joint family.  So, they move out with their kids. 

Unlike a joint family, a nuclear family does not need a very large home. Not many rooms are required. 

On the other hand, the neighbourhood, the social infrastructure, the amenities, easy transportation, quick access to the workplace, and facilities available in the vicinity are more important. 

Things a nuclear family should check before buying a home

Are you a nuclear family looking to buy a home? What should you consider before you invest your hard-earned money in a home? Here are a few things to consider. 

  1. A safe and friendly neighbourhood 

A nuclear family does not have many near and dear ones in proximity. This gap can be filled by a safe and friendly neighbourhood where children can play outside without the need to be supervised all the time, and both husband and wife can enjoy a fulfilling social milieu. 

Look for a home neighbourhood where the crime rate is close to negligible, people live amicably with each other and the roads outside are not dangerous. This means you will need to do thorough research talking to people in the neighbourhood. You must especially talk to people who have no stake in you buying the property. 

Security for the family is very important. A gated community for example has round-the-clock security. It will be a plus sign if the neighbourhood has CCTV cameras installed at seemingly vulnerable spots. 

  1. Possibility to upgrade 

You are a nuclear family – the kids may be small and you may not get many visits from your relatives right now. Smaller kids may even be sharing a single room and using bunk beds, but soon the kids will grow up and they will demand their own rooms. You will have to upgrade. 

If you have a freehold home, you can probably build another floor or if there is vacant land around (belonging to your property) you can extend your home to make more space for your growing family. 

If you’re living in an apartment and if you need an extra room or two, building another set of rooms may not be an available option for you. You will need to upgrade. 

Hence, when you are buying your home as a nuclear family, keep in mind that in a few years you may have to sell your property. Will you be able to sell it for a profit? Does the home you are buying have scope in the resale market? Will you be easily able to find a buyer? By selling your present home you should be able to buy a bigger home for your growing nuclear family. 

  1. Proximity to workplace 

With ever-increasing traffic congestion, travel is becoming a big headache, especially when you need to commute every day to work and back. Many residential colonies these days are built around commercial zones and if you are buying a home for your nuclear family, you should consider buying one near your office. 

Agreed, there is no permanency in a job these days, nonetheless, you can buy a home for your nuclear family at a centralized location so that even if you need to change your job there isn’t much difference between your old workplace and the new one. 

  1. Schools and hospitals 

These are the necessities that you cannot ignore when buying a home for your nuclear family. Are there good schools in the vicinity?  Although most of the schools these days provide conveyance you don’t want your children to spend lots of time travelling on polluted roads daily. Try to buy a home where there are some good schools at a distance of just 20-30 minutes. Preferably at walking distance. 

Similarly, when buying a home for your nuclear family, make sure that there are some good hospitals that can be reached quickly in case of an emergency. 

  1. The number of rooms 

Although the size of your home depends a lot on your budget and right now how much you can spend (and how much loan you can get), if finance isn’t much of a problem, the number of rooms can be a big deciding factor. Can your children share a room? Is there a possibility that in a few years your aged parents might be moving in? Are your children at an age where they need their own rooms? Do you need a prayer room? Will an extra study room help or will you be able to convert your balcony into a study room? Select a home size for your nuclear family keeping in mind your requirements for the coming 5-10 years. 

Conclusion 

Buying a home for your nuclear family is a rewarding experience. You’re going to grow as a couple. Your children will spend their formative years in that home. It is your responsibility to provide your family with a nurturing environment especially considering the fact that your extended family is not with you and you need to take care of almost everything, in partnership with your spouse. Hence, it is important you spend a considerable amount of time weighing all the options before you finally settle on your dream home.

What does the term group buying in real estate mean? 

Posted on by HomeCapital Team

Most of us have the misconception that purchasing a house is a challenging endeavour and requires making a significant financial commitment all at once. The thought of acquiring a home loan and, more importantly, being responsible for its repayment may seem quite daunting. However, group buying has emerged as a practical alternative for buyers wishing to purchase homes and get alluring price reductions in the real estate market. 

Our goal with this article is to educate you about the concept of group buying in the real estate market, including the advantages for both buyers and developers. 

What is group buying? 

Group buying in the real estate market involves forming a group of prospective home buyers interested in purchasing a house inside the same development. This group then contacts the developer with an offer to acquire the home. A certain threshold of potential buyers must exist before a group buying may be considered.  

The idea of group buying in the Indian real estate market is novel. Buyers may save up to 25% by purchasing in groups, making this tactic a smart choice when investing in real estate. A plethora of online portals and websites now allow clients in India to participate in group buying. 

How does group buying work? 

Group buying often involves a third party that acts as a middleman between the purchasers and the developer. Initially, a platform is provided where interested homebuyers may meet one other. A group buying firm will often offer a forum or meeting place to bring together the various purchasers. The purchasers will then band together to establish a group.  

The business goes to the constructor with a limited number of orders in hand and negotiates for potential price reductions on behalf of the purchasers. There is an opening for the builder to sell many homes. As a result, a predetermined discount is settled upon, which is often larger than case-by-case discounts. 

Discounts for group buying vary according to the project’s location and development phase. Due to the uncertainty of future sales, developers often offer steep discounts early in the development process of a real estate project when they are eager to move as many units as possible. 

Similarly, suppose the project’s completion date is drawing close, and the developer is eager to sell any remaining apartments. In that case, the price of those units will drop significantly to attract purchasers. The property purchasers would have to pay a fee to the registration firm. The fee might be anything from 1% down to 0.5%. 

Advantages of group buying  

This strategy has the potential to be beneficial not just for developers who need more funds but also for purchasers who are on the fence about making a purchase.  

  • For the home buyers  

When purchasing a home, prospective buyers cannot utilise their power to negotiate a big price reduction with the real estate developers. Individuals need strong negotiating power to get a contract with a rebate, but if they create a group, they may boost their bargaining power and increase their chances of success. 

A home loan, legal fees, and other costs associated with closing the deal are all things that members of a buying group might split among themselves. Since banks are eager to do business with large groups of people, obtaining a loan from one is simple and often advantageous. In most cases, purchasers are eligible for reductions or waivers of certain fees, such as the processing cost, the interest rate, the search fee, and the valuation fee. 

  • For developers  

When purchasing as a group, the down payment is often larger, giving the builder access to much-needed funds at the project’s outset. In the current Indian real estate market, when lending rates are rising, a large down payment might be a breath of fresh air for developers. 

The reduction in selling costs that results from collective purchasing is something that developers very much appreciate. Because the developers do not have to spend as much money on marketing and new client acquisition, the selling cost is decreased. The home buyer may be eligible for discounts based on savings. 

Group buying allows developers to move more units in a shorter time. As a result, it allows them to focus more on upcoming initiatives. 

Conclusion  

It doesn’t matter what kind of house you want to live in; the goal is to discover an ideal bargain. In a market where real estate developers have a dominant position; the negotiating power of an individual home buyer is often limited. Therefore, individual buyers have an improved chance of finding a decent bargain and an ideal house if they get together and participate in group buying. 

HomeCapital could help you out if you’ve already decided to become a home owner but are in the midst of accumulating the initial down payment amount, stamp duty, possession payments or any other payments to developers. HomeCapital’s innovative business concept leverages the strengths of its financial, technological, and real estate industry partners to provide its consumers with access to an interest-free down payment assistance program.  

All you need to know about home loan restructuring 

Posted on by HomeCapital Team

Following the monetary fluctuations caused by the pandemic and the subsequent effect on the economy during the pandemic, home loan restructuring has gained popularity. Borrowers who qualify for this scheme are given more time to make their payments with reduced interest rates and other simplified terms.  

The article explores the essential features of home loan restructuring, such as eligibility criteria, advantages, and disadvantages. 

What is home loan restructuring? 

When both the lender and the borrower agree to re-evaluate the terms of the loan, including the interest rate, the monthly payment amount, and any other costs associated with the loan, this is known as home loan restructuring. To reach an agreement that benefits everyone involved, both the lender and home loan borrower modify the loan arrangement after multiple rounds of talks. Home loan borrowers might use this to renegotiate their loan payback obligations and get leniency from their lenders.  

When to apply for home loan restructuring 

  1. During job loss 

Borrowers may get a home loan from a bank or other financial institution if they are employed by a legitimate firm and receive regular wage deposits. The loss of a job, for whatever cause, means an immediate cessation of financial support. Shortly, you will need more money to pay for necessities, much alone make EMI payments on your home loans. Repayment obligations might be temporarily suspended for six months or longer via home loan restructuring schemes. 

  1. When pay cuts become the new normal 

A company’s capacity to pay its workers their regularly scheduled monthly salary might be significantly impacted by economic downturns, war, natural catastrophes, and man-made disasters. Having one’s salary cut over an extended period of time is disastrous. The capacity to make loan payments and the quality of life are both negatively impacted by a significant decrease in income.  

  1. Parental leave for childcare 

Taking time off to care for a new born is common for men and women in today’s workforce. It is common practice for professional employees to face salary reductions during maternity leave. As a result, it is difficult for them to meet all of their necessary financial commitments and EMI payments on their housing loans simultaneously due to their lower income. Therefore, taking part in a home loan restructuring plan will allow them to avoid the burden of loan payments temporarily. 

  1. A move unexpectedly made by the bank 

Home loan repayment strains most people’s limited monthly income. When the lending institution unexpectedly raises the interest rate on loan, the cost of repayment goes up. If you find yourself in this position, you need to get in touch with your bank and formally seek a debt restructuring plan. 

Types of home loan restructuring schemes 

  1. A prolonged time period to make loan payments 

The loan’s principal and interest rate will both be kept the same under this arrangement, but the borrower will have more time to pay it back. Those with substantial debt to the lender might benefit from this option. Borrowers have the same responsibility for repayment as before but have more time to do it. 

  1. Loan obligations suspended for the time being 

Many individuals choose to restructure their home loans in this manner. The borrower’s existing debts are put on hold by the bank for a period of time, often between six and twelve months. Home loan borrowers will not incur any late fees or other penalties for failing to repay the loan during this time. This choice is ideal for individuals who lost their jobs due to economic downturns in certain areas and now find it difficult to keep up with their home loan payments.  

  1. Lowered interest rates 

Borrowers have legitimate concerns about the interest rates they’ll be charged. Borrowers’ capacity to repay the loan might be significantly impacted by financial losses brought on by interest charges that are too high. For this reason, the bank may lower its lending interest rate. It’ll help you save money in the long run by lowering your total payment amount. 

How to participate in home loan restructuring scheme 

  • Learn more about loan restructuring initially 

Every financial institution has its own set of guidelines and expenses involved with loan restructuring programs. It has been noted, however, that not all financial institutions and banks are quick to consent to home loan restructuring negotiations since it is generally not in favour of their financial interests. That’s why it’s very important to learn more about your bank’s debt restructuring programme and take the necessary steps to join. Having a thorough understanding of the debt restructuring program and your rights will equip you to defend your financial interests effectively. 

  • Gather all necessary documents 

To reap the advantages of a program that allows you to restructure your home loan, you first need to organise all necessary paperwork. In most cases, you will be required to have the following documents: 

  1. A photocopy of the current loan arrangement, 
  1. Your employment background 
  1. A recent credit report 
  1. Permission of the spouse to engage in the home loan restructuring program, attested and notarised 
  1. Latest Income tax return 
  1. Proof of identity and address 

If you own your own business and are open to participating in a home loan restructuring scheme, the bank requires you to provide them with the following papers. 

  1. The most recent record of your company’s volume, audit report, and ITR information 
  1. Recent details about your company’s current account 
  1. Credit report score 
  1. Loan contract document 
  1. Certificate of no objection from regulatory authorities 

How to apply for the scheme 

The following steps make up the whole process of restructuring the terms of home loan repayment: 

  1. Talk to the financial institution that provided you with the home loan 
  1. Complete the application form and include any supporting documentation 
  1. Put in your application with the appropriate bank department, and wait for a response. 
  1. They’ll contact you to discuss the loan’s specifics if they approve your application. It’s important to remember that, throughout negotiations, each side will be looking out for their best interests. Because of this, you should be as forthright as possible with the lender on the terms and circumstances of the home loan to increase the likelihood of getting a good agreement. 
  1. The contract may be finalised if the parties can agree on the new loan terms and conditions. 

Advantages of home loan restructuring schemes 

When you submit a request for home loan restructuring, you should first check to see whether you are eligible for the program. You should also be aware of the advantages and disadvantages of loan restructuring. First, let’s go through some of the advantages: 

  • Offers you the choice of a home loan moratorium period that may last for up to two years. 
  • Based on the borrower’s capabilities to make payments, extending the loan term may help renegotiate the EMI. This may only be done for a maximum of two years at a time, and at most, that. 
  • The burden might be lessened for the borrower by shifting the outstanding interest on the house loan to a separate credit facility, which is an available option. 
  • Unless the request for loan restructuring is approved, the borrower’s personal account will not become a default account; rather, it will continue to be a normal account. 
  • The borrower may have less pressure on their finances due to the restructured EMI, making it easier for them to plan how they will return the loan. 

Disadvantages of home loan restructuring schemes 

Housing loan restructuring has its benefits, but it’s also important to consider its drawbacks before making any final decisions. 

  • The restructuring process will have an effect on your credit score, which timely EMI payments may mitigate. 
  • Paying any fees associated with housing loan restructuring might add more pressure on your budget. 
  • Longer payback periods and interest suspensions add up to a larger total amount of interest due and might hurt finances. 
  • Restructuring your EMIs to lower your monthly payment will result in a longer period spent paying off your loan. 

Conclusion 

Home loan restructuring might be an excellent choice for those who are in a tough financial situation. Yet, it’s wise to consider the advantages and disadvantages of every option. Review your budget and determine whether you can keep paying the loan after making any necessary adjustments. 

HomeCapital program provides down payment assistance to assist those who require financial assistance for up to 50% of the initial project costs. There is no additional fee for making a prepayment. The borrower can foreclose at any moment throughout the repayment term. 

How to finance a home down payment using a personal loan

Posted on by HomeCapital Team

One of the most significant and life-altering choices we make is to purchase a house, which requires much forethought and preparation. It is one of the most significant investments we can make, both monetarily and emotionally. As a result, everyone spends a bit more than they intended to when they went home hunting. Even if housing loans are helpful, it may be difficult to come up with even a modest down payment if you aren’t financially independent, want to avoid risking your assets, or the property’s worth is really high. To purchase your ideal home, a personal loan might be helpful in this situation. 

This article will explain why and how a personal loan may be used to finance a home down payment. 

What is a personal loan? 

A personal or no-collateral loan is extended to a borrower for purely personal reasons. Typically, a borrower has to present just a few pieces of documentation to get a personal loan. The interest rate is often greater than a secured loan, such as a vehicle or a house. A personal loan may be used for almost any purpose, and it can be a good choice in several different kinds of sticky financial situations. 

Why use a personal loan for your down payment? 

Home loans can only be obtained on time because of the large amount of money required and the time it takes for banks and NBFCs to verify the information provided by the borrower and the legitimacy of the property being used as collateral. Getting the loan approved and the money transfer may take a few days. 

The seller cannot wait or keep the property on the market for such a long time without an existing agreement. Because of this, you must search for other sources of finance that may be acquired on short notice. When it comes to making down payments, the best choice is to apply for a personal loan.  

Due to the smaller loan amounts, banks quickly approve and disburse personal loans. Credit card holders and customers with established banking relationships may also qualify for Instant loans and have the funds delivered to their accounts in a short span of time. 

Personal Loan approval and features 

Before approving a borrower for a personal loan, financial institutions will often consider the applicant’s creditworthiness and ability to repay the loan. They also investigate the borrower’s financial background to see whether or not they have a stable monthly income that would allow them to make timely payments of the equated monthly instalments. 

Financial institutions offer personal loans without the need for collateral. As a result, the interest rate which these lenders charge is much greater when compared to that of house loans. However, if a person has a healthy credit score, the interest rate may still be low. 

Before committing to a personal loan provider, borrowers should do their research to find out who can provide the most favourable interest rate and repayment conditions. They should also know that using a personal loan for a down payment will reduce the amount of the home loan the bank is prepared to provide them because of their reduced capacity to repay the loan. 

Advantages of using a personal loan for home 

Personal loans could be the ideal choice for funding the down payment on a house since they provide several benefits, some of which are listed below: 

  1. Quick availability of funds 

One of the main draws of a personal loan is the ease with which one may get one. You will get a notification email from the lender after you have submitted a complete application with all essential information and documentation.  

The loan’s approval or denial will depend on the lender verifying your details and the paperwork you’ve submitted. After submitting all requested documents, the loan approval procedure usually takes 2-7 days. However, this may vary from lender to lender. It may take another day or two after approval for the funds to be released. 

  1. Flexible repayment term 

The loan period for a personal loan may be anything from one year to five years, and the borrower is free to choose the length that best suits his or her needs and repayment schedule. 

  1. No collateral 

One major perk of a personal loan is that, unlike other secured loans like housing loans, car loans, loans against property, etc., you don’t have to put up any of your own assets as collateral. In addition, a guarantor is not required for a personal loan. 

  1. Acts as a financial cushion 

You may sell assets or borrow from relatives or acquaintances when you need cash. If you have a long-term financial strategy, breaking the investment may not be smart. On the other hand, borrowing money from loved ones may strain relationships. Also, one should have enough savings to account for a rainy day. 

Disadvantages of using a personal loan for home 

When it comes to qualifying for a personal loan, there are a few drawbacks that you should be aware of. 

  1. High-interest rate 

A high-interest rate is the biggest drawback of personal loans. Typically, the interest rate is around 12 – 14% based on the profile of the home buyer. A longer payback term, say four to five years, means you’ll pay more interest and fees than the original loan amount.  

The interest rates offered by many banks to attract 0.20 percentage points only reduce consumers to 0.50 percentage points. If your financial past is spotless and your credit score is good, you should utilise this information to your advantage when haggling with your financial institution over interest rates. 

  1. Pre-requisite of a high credit score 

Lenders of unsecured loans, like personal loans, consider a wide range of factors, including your credit score and history, age, work status, regular income and debts, and so on, to determine the amount of loan that you are eligible for. Your credit score is a major factor when determining your ability to make loan payments. Loan companies are more likely to provide credit for personal loans if they know you have a solid financial history. 

It takes work to find a home that’s perfect in every way. This is a chance you can’t afford to pass up because of a lack of funds for a home’s down payment. Therefore, HomeCapital is here to assist you with all your down payment requirements. HomeCapital is founded on a simple yet powerful idea of solving the critical problem of down payment savings for home buyers. We enable you to become a homeowner by providing interest-free credit up to 50% of the home down payment amount. No need to take out an expensive personal loan. The application process is quick and easy to complete online. To know more about India’s first home down payment assistance program and to accelerate your home ownership dreams visit: https://homecapital.in/program 

What is Virtual Staging in the Real Estate World? 

Posted on by HomeCapital Team

A remunerative deal often slips out of hand because the buyer cannot imagine how the interiors will look after being furnished. As a result, homebuyers often get confused about the space they see and hesitate about spending a lump sum of money for it. However, when one can see a fully-furnished property in place of just an empty stretch of space, he or she might stick with their former decision. Virtual staging works like magic in such cases as it is key to achieving the ultimate look. It is effectively used in the real estate world to create a virtual space where the client can see and feel how the area will look after being furnished completely. 

What is Virtual Staging? 

Virtual staging is the method of furnishing empty properties virtually.  

In other words, it is a kind of real estate digital marketing strategy where buyers can get a picture of how their fully furnished properties will look. Specialists can expertly stage and bring in more viewers.  

From marble textures, and wooden floors to luxury couches, dining tables, indoor plants and all-set kitchens, the virtual stage can display it all digitally and grab the buyer’s interest then and there.  

Benefits of Virtual Staging: 

Virtual staging has many benefits. It acts as an effective tool that makes it a lot easier to convince buyers and sell a property in the real estate world. Some of the key benefits of the technology: 

  • It is a very cost-effective method in comparison to traditional home staging. 
  • One can redecorate according to their choices. 
  • It gives a warm and homely feeling to the buyers. 
  • It imitates the size, height, and depth of the space. 

How does it work? 

Virtual staging bridges the gap between how the property looks and how it will look in the future after proper furnishing and decoration. A proper photograph of the empty space is the first step towards virtual staging.  

First, experts in virtual staging have to work on the photograph to bring realistic visual effects to the empty space and make it look like a living space.  

Then, professional designers will place furnishings from digitally generated items and catalogues- floor finish, rugs, mats, couches, tables, chairs, mirrors, plants (and whatever you wish to have at your place)- in the photograph of the empty space to give the space a homely feel, your desired look, and ambience. 

As per recent statistics, 90% of the population is searching and getting involved with the real estate world. With the rapid growth of real estate, virtual staging is becoming more prevalent and accessible due to its innovative way of staging homes. 

Why Virtual Staging? 

  1. Saves time: It takes a lot of time and effort to decide on your interiors and then imagine how they shall suit your empty space. A lot of brainstorming, research work, small details and measurements must be considered, which can take weeks or months. But when you are doing virtual staging, it will consume less amount of time and give you the desired output. 
  1. Attractive photographs: As the competition is increasing day by day, dealers are putting up stunning photographs online to appeal to buyers. So, to stand out in this competitive market, one needs to have attractive images of even empty spaces. This can be achieved only by virtual staging. A furnished look of the empty space will convince buyers better than just empty spaces. 
  1. Cost-effective: Any seller or buyer will wish to deal with the property cost-effectively. Finance is a term everyone keeps in mind while selling or buying a property. Virtual staging software helps to save money as it can provide a different look to different customers using the same empty space. One can alter the furnishings as per customer needs. 
  1. Adds volume: A blank space always gives a feeling of void, whether for home, office, or commercial purposes. Buyers may get confused about how it looks after proper furnishing and whether it will suit their requirements or not. Using virtual staging, you can add furniture, limitless objects, designs, floor finish, etc., according to your choice. These add volume to the photograph and attract more potential customers. 
  1. High-quality pictures: Sometimes, the photographer fails to capture the whole dimension or a high-quality picture in real staging. But in virtual staging, you receive high-quality images with everything on point. Unlike real staging, light and shadow, perfect angle, and so on is not a problem here. Virtual staging is totally based on digital technology, giving you the perfect shot of both the empty and furnished space. 

Conclusion 

Virtual staging is a game changer in the real estate world. It has brought in more potential buyers and led to a rise in profit. Virtual staging has numerous benefits and makes it easy for the customer to decide whether spending a substantial amount of money on the house will be worth it. 

What is an easement right on the property?

Posted on by HomeCapital Team

The Indian Easements Act of 1882 applies to the territories of Madras and Coorg. Easement property right empowers a landowner to compel the owner of another land to allow something to be done or to refrain it from happening based on the fact that it would benefit the dominant tenement.  

This Act takes the non-possessory rights of property into consideration. Thus, it allows one to use certain facilities without emphasising much on the title and ownership. Right to air, light, and right of way are some basic examples of easement property rights. 

It can be viewed as a privilege enjoyed by the dominant landowner over the other who is obliged to abstain from or compelled to do something. The following are certain essential requirements to possess the easement property right- 

  1. Dominant heritage and dominant owner- The landowner that enjoys certain rights over the property that is not owned by them legally is known as the dominant owner. Hence, the land in this respect is referred to as the dominant tenement or heritage.  
  1. Servient Heritage and servient owner- The landowner that cannot restrict the dominant owner from using their land is known as the servient heritage or servient tenement. The actual landowner in this case is referred to as the servient owner.  

Section 4 of the Indian Easement Act, 1982, defines “easement” as the right which allows the usage of another person’s land for a designated purpose.  

Types of the easement property rights- 

There are four types of easement property rights: continuous or discontinuous, apparent or non-apparent.  

● Continuous easement- A continuous easement can be regarded as that type of privilege in terms of property rights which by nature is continual with or without the act of a person. Allowing cattle to continuously graze on the existing pasture is an example of continuous easement.  

● Discontinuous easement- This type of easement requires a conscious act on the part of a person to manifest or yield benefits for the party concerned. The construction of sanitary facilities can be regarded as an example of discontinuous easement.  

● Apparent Easement- The presence of this type of easement right is shown with the help of some sign that is permanent. If any interested person enquires about the permanent sign, its components will become clear.  

● Non-apparent Easement- A non-apparent easement does not come with any particular sign.  

Description and analysis of the different types of easement property rights 

As mentioned earlier, there are three main types of easement property rights: Right of Way, Right of Light, and Right of Air.  

Right of way- 

There are two main categories here: 

● Public rights– They aim to benefit the ordinary people. Common examples of it may include- highways, bypass roads, flyovers, etc. It has an element of service for the greater good of the public in it. 

● Private rights- These rights lie in the hands of specific individuals rather than owners of dominant tenements.  

Right of Light and Air-  

This right aims to prevent the owner of an adjoining area from constructing a building or placing it on his land to ensure that the light and air received by the dominant tenement are not obstructed.  

There are various ways to acquire the right to light, and they include the following- 

  • A grant or covenant that, by nature, may be implied or expressed.  
  • The Indian Easement Act provides necessities that tenants may enjoy without interruption for twenty years, beginning from the day of establishment of the property or their tenancy period.  

Remedies present in terms of the easement property right- 

The court does not interfere in easement property rights if the obstruction of light and air is trivial. However, if the tenement experiences problems that carry an element of severity, the court would very well interfere in the redressal of grievances.  

It must be understood here that the material aspect of the entire scenario is given a lot of importance. A case shall be heard in the court if a construction is diminishing the value of the dominant edifice or is taking away from the comfort that the tenant earlier experienced. If the tenant can continue with their business like before, then it does not stand much chance of being dealt with in court.  

In India, the courts may take up a case only if financial compensation does not provide adequate relief. However, the court will grant an injunction if a man with the right to light and air faces difficulty due to the building or structure constructed by their neighbour.  

However, the court would take up the matter only if a severe comfort loss occurred. The court would not entertain cases with a mere loss of fanciful vision. It must also be noted that if the party concerned moves the court after the completion of the building, a mandatory injunction may not necessarily be granted.  

Conclusion 

Easement property right differs from a lease as it does not entitle a person with the right of possession. It only provides certain specific reliefs for the violation of certain fundamental rights. Cases regarding the right to way, light, and air are heard only if there is a violation of rights on a greater scale, such that the party concerned is facing great difficulties that they did not face before. 

In the case of Hero Vinoth Vs Seshammal, it was ruled that a case regarding the violation of property rights would only take place if necessary and if the problem could not be solved with the help of a grant.  

What to look for on a home tour? 

Posted on by HomeCapital Team

Everyone has in mind some of the things they need in their home and the things they don’t. However, no one has a complete picture of what they must prioritize or look for during a home tour. Doing it in person is more difficult as you may forget or lose focus while exploring a house. 

A home tour is an exciting part of the journey to buy your house. It can sometimes become a nerve-wracking experience, no matter how exciting it sounds.  

Therefore, when you are on a scheduled home tour, you need to consider some crucial factors. Keep reading to know more about it. 

Important things to consider in a home tour 

Wall and floor condition 

Besides looking for an aesthetic or attractive finish, notice defects like warped floors, watermarks, or small cracks in the wall. These are important signs that indicate the overall house quality. However, vertical hairline or foundational cracks in the wall of around 1/8 of an inch are not a cause for concern. Thus, you do not need to worry about it.  

Look around the doors or window frames. If there is a wide horizontal or diagonal crack, it is a thing to be concerned about. They can be present anywhere on the wall and might be due to foundational issues or water damage.  

A soft or bouncy floor is a big red flag. These are indicative of termites, rotting wood, and low-quality construction.  

Odour of the house during the home tour

Although visuals of the house might seem important, you must also focus on other factors. For example, the odour of the house is important to determine if it is fit for living.  

Your nose will help you uncover many issues you may not notice. For example, mildew and molds are issues that can be understood with the smell. The smell of mold is similar to wet socks, and mildew has a light musty odour. These are serious issues that might give rise to health problems.  

Many homeowners use fragrances beforehand so that they can mask these odours. However, if you can smell excessive diffusers, candles, or sprays, it might not be about setting the mood but hiding some odour issues with the home. 

Storage space 

In every household, storage is a big priority. You may notice there are numerous closets, cabinets, or similar storage spaces, but that might not be enough. Your family might need more space for extra wardrobes, dressers or something else. Thus, you must see the empty spaces available in the house to customize it according to your needs.  

Keep the drawing space, dining room, and kitchen in mind when looking for storage space. You may need to fit big appliances or tables according to your family’s needs. These will also consume a lot of storage area. 

Integrated fixtures and systems issues during the home tour

Integrated fixtures and systems are a bigger concern than you think. They are not small changes that can be easily done like changing the exterior appearance of some parts of the house. 

For example, don’t focus on loose cabinet hinges or wonky ceiling fans. Instead, look at how the electrical wiring, heating, and cooling elements are working and if they are in good condition. Eroded or exposed wires, inadequate ventilation systems, and a problem with power can cost you a lot of money and is also hazardous to your family’s safety. 

The air conditioning unit making a grinding or squealing sound needs to be serviced or replaced. Besides this, vibrating wall outlets or flickering lights is a sign of an issue with the electrical wiring. Replacing or fixing them might be a costly business.  

Parking 

You may or may not own a car now, but you don’t know what will happen in the future. All homes do not come with a parking spot. If you are someone who uses a car often, you must look into the parking situation and what options are available near the house like street parking or so.  

Parking will definitely become competitive if the house is in a densely populated area. However, places with ample parking may have regulations about street parking. Therefore, you must know all details about parking because this can become a daily issue when you start living there. 

More about a home tour 

During a home tour, a person has to keep several factors in mind including secondary ones. Starting from architectural style to number, location, and size of the bedrooms and bathrooms, it is recommended to look into everything.  

You need to look into the condition of plumbing, water availability and noise levels outside the house. Conditions of stairways, roofs, and gutters must also be proper. Remember, no matter how perfect the house may look, it should always have remodelling opportunities. 

Conclusion 

It is rather difficult to find a home that matches your desired aesthetic and functionality. The home tour plays a pivotal role in this process. It helps to determine the best house for your family and customize it according to your needs. Therefore, you must carefully look at all the crucial aspects besides its appearance.  

The importance of a sanctioned site plan 

Posted on by HomeCapital Team

Home buyers usually have two options to choose from- a ready-to-move-in house or a house still under construction. Statistically speaking, most of them prefer the latter. This is because they get to choose and customize the features and design of their house including the type of floor, direction of the property (whether it would face north, south, east or west), external view (park or pool), number of elevators, fire escape and so on. We understand that it is difficult to contain the excitement of becoming a homeowner which is why buyers often tend to overlook or miss out on examining important things such as the site plan. However, a site plan is one of the most important documents, which, if not reviewed properly, may lead to dissatisfaction after an expensive investment. Thus, it is your primary responsibility as a home buyer to check the sanctioned site plan before agreeing to the deal.  

Before discussing further, let us first understand what exactly a site plan is. 

What is a site plan and a sanctioned site plan?  

The site plan, also called the plot plan, is basically an architectural drawing that presents the entire layout of the property you are about to buy. The diagrammatic presentation includes many things such as the apartment or building location, clubhouse location, parking area, garden, swimming pool, terrace and so on.  

According to section 2 of the Real Estate (Regulation and Development Act) of 2016, a sanctioned site plan implies a site plan that has obtained the required permission and approval from the respective civic authority before the initiation of the project.  

Changes to the sanctioned site plan  

The Real Estate Act 2016 has made it compulsory for the developer to abide by the specifications made in the original sanctioned site plan that was approved by the RERA authority.  

However, minor changes can be made if deemed necessary. In any case, the following areas are off-limits: 

  • Any addition to the area or site 
  • Alterations in height 
  • Removing a specific part of the building  
  • Changing fixtures or equipment  
  • Constructing, removing or carving out a wall or any of its parts, joist, floor, beam or column 
  • Closing off or changing the means of access 

If the developer wants to make changes in the above-mentioned sectors, they need the approval and consent of a minimum of two-thirds of the buyers or allottees who are supposed to have a unit in the apartment or building.  

Why is a sanctioned site plan important?  

  1. Provides detailed information about the building and its location 

A sanctioned site plan is very important as it provides the home buyers with a thorough idea of the scale, size, type and orientation of the property.  

If you are a potential buyer who wishes to opt for an under-construction building, we recommend that you look into sectors such as plot location, building position, accessibility to public transportation, and the means of access and entry.  

  1. Maintains transparency with the home-buyers 

Before agreeing to the deal, buyers are entitled to a copy of the sanctioned site plan. This is in accordance with sections 19(1) and 19(5) of the RERA Act.  

Similarly, according to section 11 (3) (a) of the RERA Act, the builder or promoter needs to hand over the sanctioned site plan to the allottee during the time of booking and allotment letter issue. They need to display the approved plan at either the site itself or any other place as decided by the authority.  

If the promoter or developer does not comply with the above rules and fails to display the sanctioned site plan, then the buyer has the right to leave the project. Moreover, the promoter is legally entitled to pay back the entire amount invested by the allottee along with the interest rate as applicable as per Section 18 of the Act.  

  1. Prevents delays 

Another advantage of having a sanctioned site plan is that it lessens risks such as project cancellation or delay in its execution. As it falls within a legal framework, it becomes essential that the project is completed in a timely manner, thus adding to the advantage of potential home-buyers.  

  1. Legal recourse in case of any malpractice  

If the sanctioned site plan is altered without informing the buyer or allottees, they can lodge a complaint. As already stated before, it is prohibited that any structural or other change be made without the approval of the buyer first. This is in accordance with section 14(2)(i) of the RERA Act.  

Wrapping up 

Before the RERA was implemented on March 10, 2016, the buyer did not have a well-defined protection against changing the site plan.  

However, things took a turn for good after the implementation of the RERA Act. There is greater transparency between the buyer and the developer, thus leading to greater trust. This is why you should always examine the sanctioned site plan thoroughly before finalizing the deal.  

Why is it a Good Idea to Buy Property in Ravet?

Posted on by HomeCapital Team

Ravet is a well-developed sub-urban region in Pune, situated along the Pawana River and home to modern apartment buildings and the famous Tilak Bridge. The ISKON temple present here acts as a source of tourist attraction.  

Ravet has great social amenities as it is connected to the neighbouring cities with well-planned development. This region is well known for offering luxurious properties near the city area at an affordable cost. 

One of the main highlights of this region is that it is located at the crossroad of the Mumbai-Pune expressway and is well connected to different parts of the city, including railway stations and the airport. Hence, it is an ideal location for leisure as well as work. One should lose no opportunity of buying a property here as its scenic beauty also serves the purpose of building a farmhouse here.  

Five reasons to buy property in Ravet 

  1. Ravet provides brilliant capital appreciation  

Ravet is situated at a very advantageous location and is well connected to the neighbouring cities. The price of properties in Ravet is a lot less than that of the adjoining areas, and with time this has become a great investment option. 

The availability of hospitals, hotels, and shopping complexes in the region further encourages investment in real estate. Moreover, there are several well-reputed educational institutions present in Ravet. In terms of recreation as well, one can find several options to choose from.   

  1. Close to industrial areas  

Ravet is near the industrial region of Pimpri- Chinchwad MIDC and Hinjewadi. Needless to say, in this age where people are moving out of their homes for corporate jobs and earn a good salary, they often look for places close to their offices. Ravet provides numerous options and helps make life more comfortable for office-goers. Moreover, Pune has developed into a hub of IT sector companies, and thus many people migrate to Pune every year. 

The residential properties in this region are always in high demand as young IT professionals try to find a comfortable, well-maintained, and secure living area for themselves and their families.   

  1. Upcoming residential projects  

Owing to its advantageous location and the availability of social amenities, several reputed companies have planned to undertake residential projects in this region.  

Several lucrative deals have been signed to develop projects around the Mumbai-Pune expressway. Some of the tallest and most luxurious towers in Pune, comprising 2 – 6 BHK homes are coming up in Ravet. Such projects have been in high demand because they cater to the needs of people of all age groups.  

Most of the properties in Ravet are elegantly designed and close to nature. However, this does not highlight seclusion as it has already been mentioned how well-connected and industrially prosperous this developed region is.  

As the demand for residential complexes is increasing here, the government is further investing in the development of this region. It has already granted permission to several projects to ensure the proper development of infrastructure facilities.   

  1. Growing prospect of employment  

Ravet is suitable even for people who are not employed and looking for jobs or need to settle somewhere as it offers various options for building a career in the corporate sector. Some of the most reputed MNCs are situated in this area, and they often encourage the participation of young people as well as adults in their corporations. 

Moreover, various IT hubs are located at easily commutable distances. Therefore, finding a lucrative job in Ravet often comes in handy, manifesting the demand for polished and affordable residential areas in this region. The Rajiv Gandhi Infotech Park, the DLF Akruti IT Park, and Panchshil Tech Park are the main sectors providing employment opportunities.   

  1. Growth factor involved in investment  

Ravet is an area that has shown enormous growth in recent years and has attracted people from all over the country. Therefore, the property rates of this region have a lot of upside potential. 

For example, it has been estimated that a property purchased in 2022 will cost 20% more in 2025. Therefore, the returns one can expect from an investment in the properties of this region are pretty good. Thus, long-term investors should consider buying properties here to earn the maximum from their one-time investment.   

Wrapping Up 

Ravet has developed into a well-furnished region and has the potential to provide excellent returns on investment. Therefore, people can also buy property in this region for residential or commercial purposes. The connectivity and social amenities provided by this region are extremely luring.  

With government investments flowing in, one can expect the area to develop further and cater to the needs of more people. The neighbouring areas are well-developed and provide access to essential regions. However, purchasing luxury properties at such an affordable rate is challenging today. 

Top Reasons Why You Should Invest in Indian Real Estate today

Posted on by HomeCapital Team

Due to the consistently high level of demand, real estate in India is an excellent choice for investment. For most Indian families, the realisation of their desire to purchase a brand-new home is the fulfilment of a lifelong ambition. The realisation of this desire will not only provide you with emotional fulfilment but also the promise of financial progress due to the high rate of return offered by investments in real estate in India. 

In this article, we will look at the variables that continue to make real estate the most popular option of investment for Indians.  

6 Reasons to Make Real Estate Investment in India  

Some of the most convincing reasons for real estate’s continued popularity as an Indian investment opportunity are as follows: 

  1. This industry is expanding quickly 

The market for real estate in India is seeing rapid expansion at the moment. The value of the real estate industry is projected to increase from US$ 1.72 billion in 2019 to US$ 9.30 billion in 2040, and its contribution to the country’s GDP is anticipated to reach over 13% by 2025. 

As the focus of the world moves from China to India, real estate investments may be lucrative. Many foreign businesses are establishing operations in India, which bodes well for the country’s employment market. Since more individuals will have access to capital, the demand for housing is expected to rise. 

  1. Lucrative Investment Return 

Real estate prices in India almost always go up over the course of time. When it comes time to sell an investment, one might realise a huge return if the investment was well chosen.  

Additionally, rents have a pattern of increasing with the passage of time, which results in a rise in cash flow. It has been shown throughout history that the longer a person retains ownership of the real estate, the greater the amount of money they will generate from the investment.  

  1. Substantial Cash Flow through Rental Income 

After deducting the cost of the mortgage and other operational expenditures, the net revenue from an investment in real estate is referred to as cash flow. The opportunity to produce cash flow via real estate investments in India is substantial. A rental income that is consistent each month is a wonderful example of passive income, and it also provides the investor with financial stability over the long term. 

The majority of the time, a person’s cash flow will only improve over the course of time as they pay down their mortgage and develop equity. Cash flow from a successful real estate investment should typically be at least 6% higher than the initial investment. 

  1. Investment Opportunity That Is Safe & Secure 

When compared to other asset classes, such as stock markets and cryptocurrency, real estate investments are considered to be among the most secure financial strategies. In contrast to the unstable stock markets and volatile cryptocurrency markets, real estate values tend to be more stable and less prone to frequent swings. 

In the real estate industry, RERA has developed well-documented and well-known legal precedents, including property registration and stamp duty. Once these steps have been completed, the likelihood of being a victim of theft or fraud is significantly reduced if you invest in a reputable builder’s project. 

  1. Tax Advantages 

Real estate-related tax deductions have the potential to balance income and bring about total tax savings. Rental income is not subject to self-employment tax in any way.  

While this is going on, the government provides tax deductions for things like the depreciation of assets, insurance costs, upkeep and repairs, legal costs, and even the accrued interest on a mortgage. Investors in real estate are eligible for reduced tax rates because of the nature of their long-term investments. The reasonable expenditures of owning, running, and maintaining the property are often deducted in whole or in part. 

One may deduct up to ₹ 1.5 lakh on house loan principal amounts under section 80C. Similarly, you may reduce your interest payments by a maximum of two Lakhs under Section 24. As a result, real estate investment in India becomes more financially feasible, and a significant chunk of taxable income is reduced. 

  1. Leverage 

One of the most important advantages of investing in real estate is the opportunity to employ leverage, which is purchasing a property with just a part of one’s own funds while financing the remainder of the purchase price via a loan. For example, if you purchase a home for 1 crore rupees. You may make a down payment of as low as ₹10-15 lakhs from your resources and get a home loan to finance the remainder.  

This implies you’ll just have to put down a very small deposit to become the property’s official owner. It also makes sure that you don’t invest all of your money in property Investment and that you set aside some funds for any crises. 

Conclusion  

Investing in real estate in India continues to be one of the most popular forms of capital allocation. You may rest easy knowing that over the course of time, the value of your investment will consistently go in an appreciating direction. Take advantage of this opportunity to ensure a prosperous future for yourself, enjoy a life of comfort, and leave a lasting legacy for the people you care about. 

With the real estate market in India on such a roll, investing in a home might be one of the smartest choices you ever make. The down payment assistance program that HomeCapital provides might be of great assistance to you in achieving this objective. Accelerate the process of purchasing a home in only 5 simple steps. Pick your tenure, get immediate in principle approval, electronically sign the documents, submit supporting documents, and then receive funds in your account.