Want To Buy A Home? Have You Assessed Your Budget?

Has your landlord been bugging you about the rent and all those things that you aren’t supposed to do within the limits of his property? Well, then we have a solution for you. It’s high time you moved out and start considering the possibilities of your own home. However, there are a few things that you need to consider before you take that plunge.

While an in-depth research of the real estate market is important, you also need to pay attention to your financial resources. It’s important to understand what, where and how much you can afford.

These are the 4 key points that will help you analyze your financial situation and help you decide if you can afford a home:

Savings

The first step is to check and asses your savings. Whether or not you take a loan, there is a certain amount of down payment that you will have to make. Typically, unless there is an attractive subvention plan, you will have to pay 20 – 30% of cost of your home from your savings in 60 – 90 days. Having considerable savings will help you ease the burden of the down payment and the loan. Also, you will have to maintain some contingency fund to fall back on for unforeseen emergencies.

It’s better not to invest all your savings in buying a home as this may create a financial burden.

Monthly Income

Your monthly household income is important in deciding your budget for buying a home. It gets easier to afford a home for dual income families. While one person’s income can be used for the repayment of the loan, the other can contribute to the household expenses and savings. It’s comparatively expensive for single income families as the entire cost of EMI is to be borne by the only earning member. For a single income family, your monthly EMI should not stretch beyond 40% of your monthly take home. Your monthly income also determines the maximum loan you can avail which is 4 – 5 times of your annual salary.

Home Loan Eligibility

All banks and financial organization have eligibility criteria, which they analyze before signing on the dotted line. Your loan amount will depend on the amount of disposable income that you have and also the EMIs that you are already paying. Banks will also check your credit report and other personal details like your income, job stability and also the value of the property that you are planning to buy. Job hopping can lower your chances of getting a loan. The construction stage of the property when you are buying it is also an important factor. It is advisable to take home loan for your home purchase as it also helps you save taxes.

Payment Plan

Once you know how financially stable you are, you can check the different payment plans that are available in the market. Developers offer diverse payment plans which you can choose from. These plans allow you to pay varied sum of money at regular intervals. This again helps in strategizing your finances in a better way and acquire a loan accordingly. Builders offer the following payment plans.

• Construction Linked Plan
• Down Payment Plan
• Flexi Payment Plan
• Possession Linked Plan
• No Pre-EMI Plan

Gift Ideas For Housewarming Parties

Buying a new house is a celebration in itself and the best way to share this joy with others is to throw an awesome housewarming party. But the moment you are invited to one such celebration, you start wondering about what to gift?

Here is a list of ideal gifts for housewarming parties that will surely please the host and are also easy on your pocket:

Artifacts

Whether it is an apartment, a villa, a penthouse or a studio, artifacts make the best pieces of decor for a new home. And if the recipient is an art lover, gifting a work of art will make you his dearest guest. You may choose an item made of silver, brass, marble or terracotta. Vases, artistic table lamps, luminaries, idols, antique clocks, figurines or simply a decorative showpiece will be a priceless gift for art lovers.

Monogrammed Gifts

Monogrammed gifts carry a sense of closeness. You can gift picture frames with the recipients initials monogrammed on it. A monogram on household items like welcome mat and glasses will be good for gifting.

Cooking Ware/Dinnerware

No matter how much one hates cooking, a new and modern kitchen is always an excitement for everyone. So, gifting cooking accessories, cutlery set, dinnerware and dining decor pieces will be a wonderful idea. You can also go for a customized dinner set with your special message written on each unit. A cookbook along with it will complete your gift set.

Gift Cards

One of the best and easiest gifts for a housewarming party is a gift card. A gift card to a restaurant and home decor shops like Home Town will make a useful gift. Such gifts are really appreciated by people nowadays.

Potted Plants

Everybody needs something for the outdoor decor. A potted plant for their patio will be an eco-friendly gift. If your host does not have balcony in his flat, gift him indoor plants like Aloe Vera, Bamboo Shoots, Snake Plant and Chinese evergreen. These are elegant for decor and do not occupy much space.

Wine/Champagne

If your host has got a taste for vintage quality wine and champagne, he will be very happy to see you coming with a nice bottle of his favorite drink. Pair it with a corkscrew or a cool set of bottle stoppers and there you go.

Indoor Games Set

Gift a set of indoor games like Monopoly, Chess, Twister, Cluedo, Jenga and Scrabble and you will make the hosts as well as their children happy. Encourage them to invite you for a game later.

Besides the above mentioned items, you can also gift some special things like luxury candles, candle stand, tool box, bouquet, home appliances, melamine, paintings, showpieces and home appliances. There are many gift options but you should choose it according to the taste and preference of the host.

Renting Tips For First-Time Landlords

Does that ‘FOR SALE’ signboard outside your house look old and worn out after months of inactivity? May be it is time you started thinking about something different. One of the trending ways to get regular extra income is to rent out your house. While most of us think that letting out a house is a cakewalk, landlords who are actually trying to sell their properties would probably disagree. Misuses of the flat, low or no maintenance by the tenant, delay in rent payment are some common problems faced by landlords.

To avoid these hassles in future, one needs to do a little bit of homework before letting out a flat. Here are a few points you need to keep in mind:

Decide the Rent

The first step is to research about the renting trends in your area. Find out the rent of nearby let out homes and then calculate the rent per sq. ft. You can now apply the same to your flat to arrive at an approximate rent value of your house. The main elements to be considered for deciding the rent should be the capital value of the property, amenities offered and the locational benefits. Usually, the annual rent is 2-3% of the capital value of the property but this cannot be considered as a hard and fast rule. If your flat is in a housing society, it will be easier to decide the rent since all flats are more or less similar and so should be the renting criteria. However, if your flat is furnished or offers an exclusive view, you can charge a little more as premium.

Spread the Word

A traditional method to advertise your house is to hire a broker. In addition to bringing the tenant, he can also assist you in verification and other legal processes. But a broker usually charges half-month or a full-month’s rent as his commission. You can also post an advertisement in popular newspapers. And today if things have gone online, then so has the renting process. So if you are an internet savvy, you can advertise your home on the internet. There are a number of websites that provide relevant platforms with advanced listing, searching and sorting options.

Do Not Take That Rent Agreement Casually

Most of us are quite careless about the rent/lease agreement. But it is a crucial document and much care should be taken for its drafting. A rent agreement is document that mutually binds the landlord and tenant to comply to each others terms and conditions. Important information such as the rent and its categorization, date of rent payment, security deposit, rent period, facilities and amenities, etc., should be clearly mentioned in the agreement.

A rent/lease agreement can be used as evidence in the court only if it has been registered. Section 17 of the Registration Act says that every lease agreement for more than a period of 11 months needs to be legally registered. You may have to pay minimal amounts for registration along with the stamp duty.

Know Your Tenant

Will you ever give your house to a criminal or a drug dealer? A felonious person will not tell you about his illegal practices himself. So, knowing your tenant is not all about introduction. You also need to check his background. And you would be surprised to know that not checking the background of a tenant is a punishable offence under section 188 of the Indian Penal Code. Verification forms are available online. You just need to download it, fill the form and submit it at the police station of your area, along with your tenant's ID proof.

These are some of the points you need to keep in mind before you finally rent out your flat/house. But your duty does not end here. You should visit the flat periodically to check if the tenant is violating any conditions, and if they are then proceed accordingly.