Monthly Archives: March 2016

6 facts you should know about joint home loan

Home buying is both an overwhelming and a satisfying decision. It is enabled by home loans in most cases, unlike earlier days where people used to save money for years before they bought a home. Your home loan eligibility can go up substantially if it is a joint home loan, which might help you in buying a bigger or better house. We tell you all you need to know about joint home loans.

Home loan eligibility is not the only benefit of taking home loan with your family member. There are a number of other benefits and some limitations as well on borrowing money together. Since there is not much material available on this subject, we have put together a fact sheet on taking a joint home loan.

Following are the 6 most important facts of joint home loans:

Co-Applicants: What is the definition of Co-applicant? This is the most common question one asks. A co-applicant is the person who jointly takes a loan along with you. It is important to understand the difference between a co-applicant and a co-owner. A co-owner includes all the owners of the property. Banks insist that all co-owners be necessarily co-applicants. Hence, all co-applicants may not be co-owners but all co-owners have to necessarily be co-applicants. A co-applicant can be your spouse, parent, sibling or child.

Paperwork: In case of a joint home loan, both the applicants have to submit all documents required for processing the loan such as, copy of Permanent Account Number (PAN), address proof, income proof, bank statements and documents relating to the property.

Loan eligibility: Increase in the loan eligibility is one of the biggest benefits of a joint home loan. The lenders will consider the income of all the applicants thereby, increasing the loan eligibility value.

Repayment liability: When you are a co-applicant, the lender also makes you liable to repay the loan amount. So, the responsibility of repaying the loan is also on the shoulder of the co-applicant. If one of the borrowers fail to pay, the responsibility of footing the equated monthly installment (EMI) automatically shifts to the other borrower.

Tax benefits: When you are equally responsible for repaying the loan, it is but logical that you get to enjoy the tax benefits as well. Under Section 80C of the Income Tax Act (IT-Act), a home loan borrower is eligible for tax benefit of the principal re-payment of up to Rs 1 lakh and Rs 1.5 lakh of interest re-payment under Section 24 of the same act. In case of a joint home loan, both applicants are eligible to enjoy these benefits proportionate to the extent of contribution towards re-payment.

Cibil score: This is the most important part where you are considering higher loan eligibility as the main reason of availing a joint home loan. If all the applicants in a joint home loan have a good Cibil score, then it is a cake walk to get the loan approval. If one of the applicants has a bad Cibil score then the lenders do not consider his/her income to increase eligibility, but the lenders do make exceptions in certain cases. Considering the income of a person who has a bad Cibil score is completely at the discretion of the lender.

So, it is important to understand that joint home loans do come with a great deal of benefits along with proportionate liabilities. So if you want to enhance your loan eligibility, approach your blood relatives but make sure you have a clear strategy to repay the higher loan amount on time.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in

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Taxation Rules for NRI Property Buyers

If you are NRI wish to buy Property for Parents or Investment. You Need to Know about Taxation Rules in India. Also, with the value of rupee dropping in the global market, investment in the Indian real estate market seems profitable to NRIs Investors. Many of the NRI property buyers investing in Indian shores are primarily from the Middle East, US, Singapore, Australia, UK, Canada and South Africa. As many NRIs are planning to Buy Property, this has pushed many developers to cater to this NRI category. Although buying or selling a property in India is easy, there are many NRIs who should know the tax implications while purchasing properties in India.

Many NRI wants to understand the prevailing NRI taxation rules in India, while buying and selling properties. While purchasing the flat NRIs are required to deduct income tax at 1 per cent if the value of the property is more than Rs 50 lakh. However, if you are buying the property from another non-resident then the rate of deduction would be much higher.

You need to pay the seller only the balance amount after deduction of taxes. The deducted taxes are to be paid to the Income Tax Department along with a duly filled Challan 26QB.

Further, while selling the property, taxes will have to be paid on capital gains (i.e. profit). There are certain investments that you can make to minimize the tax outgo. It is very important that you check the tax implications in the country of your residence as well.” Those who are looking to purchase another property (probably a shop), for one of the property, income (equivalent to the rent that a similar property would fetch) will have to be offered to tax. One can choose the property for which you will declare the rent depending on what would be beneficial.

Tax savings for NRIs

NRIs who had sold his ancestral property and is now planning to invest in a plot. Considering the property sold was a residential house/flat, you need to reinvest the amount of capital gain (after indexation) in another residential house to claim the capital gain exemption.

To save on tax there will be no benefit to re-investment in the plot of land unless you construct residential house on the said plot in a period of 3 years from the date of the sale of original property.

You can also claim capital gain exemption u/s. 54EC by investing in certain notified bonds (REC/NHAI).

Can a PIO card holder sell property in India and reinvest in the UK? He need to pay tax and if yes what percentage?

Considering the property was on hold for more than 3 years now and is a long term capital asset, the owner will have to pay taxes at 20.6 per cent post indexation on the amount of capital gains. With the amendment brought up by the Finance Act 2014 you will not be eligible to claim any exemption for reinvestment in property outside India. But you can save taxes by reinvesting the amount of capital gain in 54EC Bonds.

The top five do’s you should know before making an investment:

  1. Personal visit to site along with self evaluation of the project, study about builder etc. is very essential. (Online data should be verified before final decision)
  2. A local person/attorney can really help for some miscellaneous jobs.
  3. Before renting the premises, proper care should be taken for getting possession back on expiry of the terms.
  4. If money is to be repatriated out of India, care should be taken of prevailing laws for the same.
  5. TDS at the rate of 20 per cent is deducted from the sale price when any property is purchased from NRI, so that is to be considered.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in

Change the mood with soft furnishings

Soft furnishings infuse life into a home, imparting colour and texture to design.
With the basic structure of a home in place, the next step is to design the interiors. This includes furniture, as well as furnishings such as drapes, blinds, cushions and upholstery, carpets and rugs which give life to furniture and impart a definite character to different spaces. Here are some suggestions:

Curtains

Go for fine quality and durable drapes or blinds that can withstand constant washing. Use jacquard fabric for floral prints in a formation of swirly blooms. Linen fabric in cur Linen fabric in curtains gives a handmade look. With some speck detailing or decorative motif on fabric, it can give a homely and soothing feel in the bedroom.

Satin, sheer and organza fabrics add a luxurious feel to any room. Silk can be added in the form of an embellishment. These fabrics for curtains are recommended for living areas, dining or family room.

Voile is a lightweight woven fabric and can be used for rooms which need more fresh air and sunlight. Voile curtains are available in a variety of colours and prints. They give a delicate feel to the windows. Full-height curtains could also give an illusion of greater visual height.

Upholstery

Chenille offers a soft touch and is the perfect material for soft chair coverings, children’s bedrooms or lounge areas. For heavy traffic zones, hardwearing fabrics or printed fabrics are in demand. Velvets can used for sofas and armchairs for a royal look and making the entire living-dining space grand. The richness of this fabric and colours will not fade soon and makes it easy to maintain.

Cushions and bedspreads

Cushions and coverings raise the level of comfort and add a decorative look to interior spaces. A personalised decor can be achieved by the use of various shapes, sizes and colours of cushions. Cotton, linen and handloom products are best for bedrooms as they add to the warmth and luxury. Raw silk and polyster can make for bright and lavish cushions in the formal areas. Putting in throws and cushions with such rich fabrics makes the couch look expensive and glamorous.

Carpets and rugs

Persian carpets showcase the art of carpet weaving and are among the best hand-woven carpets. Contemporary design rugs with bold geometric patterns or floral designs can be placed in children’s rooms. Carpets can balance colours beautifully. The bright tones of walls can be softened by subtle carpet patterns. On the contrary, a neutral decor scheme can be balanced by a charcoal-rust combination of floor soft furnishings.

Colours

The range goes from hot orange, red, yellow, amber and pink tones to serene hues of the cool blue ocean. Some of the most popular colours are teals, limes, pastels and vivacious pinks. Nectarine has a warm coral touch, and in combination with poppy reds and lemon zest colours, can make for a very inviting space. Emerald is recommended for kitchen furnishings. African violet or Monaco blue can give the master bedroom an exotic and lavish appeal.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in

Tips for buying the first home

Buying a home, though a momentous step for most people, is usually not a final thing in and by itself. Most homeowners will upgrade their homes at some point, which makes their first homes ‘starter homes’. The seemingly diminutive term aside, it is a fact that we tend to buy our first homes with the maximum resources which are available to us at that point in time. Starter homes may yield to a bigger, better deal in the future, but right now it is all that one can afford. As such, starter homes are as significant to their owners as anything that will follow.

Buying a starter home is also significant in another sense – it is the point where most people step into ‘adulthood’, in the sense that they are finally transitioning from living on rent to a self-owned property. It marks the end of one’s association with landlords, and the beginning of autonomy.

The autonomy that a starter home affords is first and foremost financial in nature. Rather than spending a significant amount of money every month without the hope of seeing any returns on investment, one is now investing a certain sum of money every month into a self-owned, appreciating asset. However, the autonomy extends beyond the financial aspect, as well. Regardless of how small and humble one’s starter home is, one finally enjoys the full gamut of freedoms vested in home ownership.

Most changes and modifications to the flat can be carried out with complete confidence, with no permission from the landlord required (of course, some structural changes will still require the approval of the housing society). Unlike in the case of a tenant, a property owner has an active say in all matters that come up for discussion at housing society meetings. His or her vote is required and sought to pass new rules, regulations or initiatives undertaken within the project.

That said, starter homes are often just that. They are purchased to serve as transitional homes, and will in most cases not be the ‘final’ home one lives in. Until the time for upgrading comes, however, it will serve as a place to set down one’s roots, start a family and work on one’s career. Because it is bought at a time before the buyer reached his or her peak financial capacity, it needs to come at an affordable price and also involve affordable maintenance costs.

Luxurious amenities are not expected in such a home, but most buyers will still look for a decent size of living space and a balcony. Reliable water and electricity supply are of course indispensable, and should not be compromised upon regardless of one’s purchasing power.

Location is a critical consideration for starter homes as much as for the more expensive upgrades which are to follow. While a small family can live in adequate comfort in a 2 or 3 BHK flat, a remote location which does not allow for a relatively easy commute to and from work is not acceptable. The area must be well-connected by public transport, as many people will only buy their first car for regular use at a later stage. The area must also offer an adequate selection of retail outlets to meet daily shopping needs, and access to a good school and hospital.

Location is in fact very critical when buying a starter home, because many first-home buyers find that their lifestyle quotient takes a backward step when they stop living on rent and buy their starter home. After all, one of the advantages of living on rent is that one can live in central locations which offer a lot of conveniences. When it comes to actually buying a small home of one’s own, one may find that the only locations that are affordable are the under-developed or emerging ones.

To avoid such a trap, it is all the more necessary to launch a detailed and patient search when looking for one’s first home. The first options that crop up while doing an online search for properties within a certain budget often tend to be in emerging locations, but that does not mean that no better options are available. This is the best of time to contact real estate brokers who have good databases to access. Some of the cheaper options in a project may not be advertised online, but other often exist. Also, not all emerging locations are created equal. Some offer much better locational advantages than others, and reputed developers will often launch township-style projects in which most needs of residents are easily met. Obviously, properties in such locations and projects will appreciate must faster than others, meaning that one is buying into a much more advantageous base for a future upgrade to a larger home.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in

All you need to know about interim security in a home Loan

In order to make the home buying experience easier and quicker, banks and financial institutions have introduced flexible repayment options to borrowers. The latest addition to this is the kick off of ‘interim security on a home loan. As the name suggests, this is a temporary arrangement whereby, the borrower can get a home loan quickly by providing a market instrument as a collateral security.

Interim security is a security offered to the bank for a short term period, usually one month. It is provided for a period between the time a bank issues a loan to the borrower and the borrower deposits the full security for the loan amount that is mortgaged anywhere else. It includes life insurance policies, shares pledge and solvent guarantors. The security is offered to the bank only under a few instances.

When is an Interim Security required?
Financial institutions ask for interim security under three circumstances mentioned below-

In case of an under-constructed property

If the buyer avails a home loan for a property in an under-construction stage, an interim security is required. The current value of the property is lower than the mortgaged house agreement with the bank. In such a situation, the bank may ask for additional security which equals to the value of the home loan sanctioned. Usually, the interim security is provided by the builder to the bank. The security offered must be free from any debt and encumbrances (legal liability that diminishes the property value).

However, if the market value of the property under-construction is witnessing a rising trend then banks do not ask for interim security. Besides, if the construction is associated with a reputed builder that has a record of completing a project timely project completion. even then interim security is not required.

Transfer of the loan

Another instance when interim security is required by the financial institution is when the borrower wants to transfer the home loan from one bank to another. The procedural formalities take nearly a month. When the loan is shifted, the new bank issues a cheque of the outstanding loan amount to the borrower. The cheque is deposited with the old bank that then the original document of the mortgage is released. In order to tide over the risks till the procedural formalities are completed, the new bank asks for interim security, adds expert.

Purchase of the property

Interim security may also be required in case of the purchase of the property. The period between the loan disbursement by the bank to the seller and the registration of the sale deed received by the bank in the name of the borrower. The entire process of registration, collection of documents from the office of the registrar and submission in the bank may take three to four weeks. During this time the loan remains unsecured due to which banks ask for interim security from the borrower.

Permission to the Authority
Demand of interim security arises when the property buyer has to draw permission from the development authority. The process is known as Permission to the Authority. In this situation, a buyer willing to avail a home loan has to seek consent from the development authority of the area for mortgaging a leased out property. The process takes 10- 15 days. To cover up the risk till the borrower receives permission, bank asks for an interim security. After the permission is sought; borrower can deposit the documents of the leased property with the bank.

Private banks are lenient with interim security compared to public sector banks. However, borrower should be prepared with the interim security, if availing a home loan to avoid hassles at a later stage.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in

Adding a traditional flavour to the decor

Indian tradition can provide innumerable decor ideas to incorporate in one’s home. A traditional flavour to the home decor will accentuate the whole ambience of the house. There are so many quintessential Indian style decor elements that will add a charming character to the house. From wall hangings, furniture, upholstery to wall art, there is no aspect of home decor that does not have its specialized Indian variant. The best part of such an inspired home decor is that it would strike an immediate connect and make guests feel at home. If there are guests from abroad, then what better way to intimately introduce them to some of the best Indian art forms?

Beginning with the living room, the sofa set including the centre table, can greatly contribute to the traditional factor that one wants to bring in to the home decor. Intricately carved wooden furniture is the best choice for this purpose. One could either go for heavily embellished sofa sets or a lighter variant of it. These ornate furniture pieces invariably add a tinge of reality to the whole house.

Rajasthani style dewan set and a wooden swing cannot be given a miss in the traditional theme of home decor. In case the embellished sofa set and the dewan leave no room for the swing in the living room, then the space near the dining area too is good for installing the swing. While the sofa set and dewan need to have carved designs, one could go for a swing that is not too heavily carved and is of smaller size. This is just so that any excessive design element is off-set.

Upholstery is another important decor element that will greatly add to the traditional flavor of the house. Matching the carved furniture with silk cushion covers is a great idea. Silk cushion covers make the ambience look grand and festive. Even if one does not wish to use them on a daily basis, they are a must for celebratory occasions such as festivals and wedding ceremonies. Block printed cotton fabric is also a beautiful option to explore. One could find beautifully designed block printed cotton fabric for table cloth, curtains, cushion covers, table runners, etc.

Wall art has been prevalent in India since ancient times. Even to this date the mud walls of humble dwellings in rural India bear design patterns. One could dive into the vast Indian tradition and culture and come up with unique motifs for wall art. The expansive banyan tree, pea-cock, earthen lamps, river front, so on and so forth. Just about anything as per one’s taste could be the wall art theme. Wall decals which are gaining popularity as a decor element, offer a wide range of wall art that is easy to put as well.

Wall hangings made of cloth with embroidered design patterns are a must. Both, Rajasthani and Gujarati style of wall hangings are great picks for the traditional home decor theme. Kalamkari art form also offers beautiful range of wall pieces to choose from. In order to have beautiful and unique collection of traditional decor elements, it is advisable to visit exhibitions and shows specially set up to showcase Indian arts and crafts.

To Know more about Prescon Realtors & Infrastructures Private Limited

Contact Us :

Address  :

201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.

Telephone : 91-22-25985951–55

Email : prescon@prescon.in