5 Super Points of Protection of Real Estate Bill A Home Buyer Should Know!

Real Estate Bill, which is aimed at safeguarding home buyers’ interest, moved nearer to becoming law after it had been removed within Rajya Sabha. The balance made to bring transparency and accountability towards the real estate sector, is anticipated to bring back investor and buyer confidence.

Listed here are five ways the way the bill will safeguard home buyer:  

-       All commercial and residential projects which include eight apartments or cover a place of 500 square meters or even more, will need to be registered with real estate regulator. This virtually covers most property being built-in the metropolitan areas Asia. No project is going to be permitted to become offered towards the buyer unless of course it’s all necessary permissions from local government bodies to begin construction.

-      Buyer-seller or builder-buyer contracts are very uneven, offering very little legal rights or protection towards the buyer today. When the bill becomes an action, one on the side contracts will end up a factor of history. Any delay in payment though the builder will attract exactly the same penalty as exactly what the buyer must pay out, if his payment is postponed. Builders who are well known for altering project plans, halfway, including the amount of flooring inside a building or even the layout of the flat, will be barred from doing this, with no approval of tow or third from the purchasers.

-        Real estate projects frequently get postponed because designers divert funds intended for one project to a different. But when the balance becomes law, property designers will need to deposit a minimum of 7o percent of cash collected from purchasers within an escrow account to satisfy construction costs. This can make sure that designers who exhaust cash don’t stall projects.

-      Designers cannot sell property based on super area (flat area plus common area). They are going to have obviously define carpeting area including spaces like kitchen and toilets. So a purchaser knows what is he or she getting as living space and also the cost he or she is having to pay for this.

-        In addition, designers will also be banned from making claims in ads or posting images of site or project that are false. Misleading advertising has been created punishable. For flouting anyone of rules specified by the Regulator Act, the developer could be penalized 10 percent of the total project cost. As well as for repeated offense, the builder may also be jailed.

The Smartest Choice To Buy Flats Is - Township!

Why home buyers choose to live in a township project over a group housing project? Because township is really a complete living experience and all sorts of inclusive cluster of commercial and residential structures with associated infrastructure for example internal streets, schools, hospitals, gardens, convenience shopping, along with other condition from the art amenities – in a nutshell everything that offer an excellent living experience. 

Numerous options are there to live in, Flats, Apartments, Banglows or normal houses. There’s a dearth of residential options in fast-growing metropolitan areas like Mumbai. All major metropolitan areas like Mumbai are growing limitations and integrated township developments appear is the answer. With longer distances to traverse to operate, clients nowadays prefer to exist in a place which has everything they require for any good lifestyle, from spacious houses, schools & schools, malls, and cinema halls- all a stone’s discard. Also using the walk-to-work concept attaining prominence within the densely populated metropolitan areas, Township projects have become a success with home buyers.

Townships would be the next large factor in the Indian property perspective. Townships are made across a sizable land area and many townships are made with the idea of “City inside a city”. All facilities including schools, hospitals, departmental stores, gymnasium, and health spa supply the unique living experience that individual’s demand nowadays which aren’t obtainable in standalone structures. There’s also a feeling of well-being and security when one resides in a gated community of like-minded people compared to a standalone project. Most designers today are visiting a great interest in houses that may give a holistic living experience for his or her clients so we visit a huge chance gift for integrated developments across Mumbai along with other leading metropolitan areas in India.

Because of the altering preferences of clients and also the increase sought after for township houses, additionally they become a more sensible choice in the investment perspective. Townships will also be less susceptible to unpredictability on the market which makes them a great investment proposition. Most integrated townships today are planned in a way they self-keeping, eco-friendly and focus on the majority of the needs of their residents. A number of the many benefits of residing in a built-in township:

City inside a city: A Township provides all the benefits of a town existence in a single location and things are available in your achieve. You are able to live, work, study, eat and play inside a township development.

Holistic living experience: Compared to a standalone building, townships provide bigger open spaces, gardens, and jogging tracks and play grounds which suit the requirements of all age-groups from kids to youngsters towards the seniors. There’s additionally a Walk-to-Work possibility which augments work existence balance.

From urban chaos: Most townships given their sheer size are made from the city that is a large boon to the citizens given that they can avoid traffic, pollution and cramped up city houses. Also these large format developments provide more open and eco-friendly spaces and therefore are usually nearer to character.

One-stop shop: A township is sort of a one-stop shop, the only thing you needs from shopping complexes, to entertainment venues to education and work, all of your needs are met at one place.

Guaranteed Living: Township developments are a lot more like gate towns with enhanced security measures. Considering that security is really a key concern for many families especially working couples who’ve youthful children or elders in your own home, most townships will often have electronic home security systems like video door phones, Closed-circuit television Cameras and all sorts of exits are manned 24X7 to ensure that all citizens can live worry free.

Superior Lifestyle: Residing in a gated community of like-minded people with everything with minutes of achieve, townships do give a superior living experience.

Sustainable Living: Townships help cut travel time, money and energy allocated to one’s daily needs. Integrated township are precisely planned if this involves eco-friendly and sustainable features like rain water cropping, Sewage treatment, Solar power, Energy-efficient houses and complexes etc. Cheaper: Townships are often easy around the pockets. Because they are built outdoors the town limits, the price of land in low which fits towards both Developer along with the purchasers. Lower land acquisition costs makes township houses less expensive as in comparison to houses inside the city.

Well worth the cost option: As in comparison to stand alone structures opportunities in integrated townships offer better return on opportunities. They are also a great wager if this involves rental earnings since many people are searching for an entire living experience today.

Budget 2016: First time home buyers to get additional deduction of Rs. 50,000 on interest for loan upto Rs. 35 Lakh

By introducing an additional deduction of Rs.50, 000 in the Budget 2016 proposal, Finance Minister Arun Jaitley has given some reason to cheer to the first time home buyers. This additional deduction has been given on interest for loan upto Rs. 35lakh, provided the house value doesn’t exceed Rs.50lakhs. An additional deduction was much awaited as the costs of housing units have increased much over the recent years.

A home buyer in India is entitled to claim both the interest and principal components of home loan repayments for tax benefits. Currently interest payable on a self-occupied house is subject to a maximum deduction of Rs.2Lakh under the head Income from House Property.

Taxpayers and industry experts were expecting the government to increase the tax deduction limit for housing loans, especially in metropolitan cities, by about Rs. 1lakh to Rs. 3Lakh as the current limit of Rs.2lakh is insignificant.  Besides interest, the portion of ones EMI which goes towards principal repayment is allowed to be claimed under Section 80C. This amount can be claimed within the overall limit of Rs. 1, 50,000 under Section 80C.

Tax experts and home buyers were also urging the government to look at carving out a separate deduction for principal re-payment of housing loan, as the principal paid is currently clubbed under Section 80C with other tax saving instruments, which effectively does not provide significant tax relief to the home buyer. The demand, if met, would leave behind a higher disposable income in the hands of the borrowers of home loans and also encourage investment in the realty sector. 

Home Buying Tips For The First Timers!

If you are a first time property buyer, buying a home can be a great experience. Every home buyer knows that they set a particular budget range and stick to the price range so that you can know how much you can afford for the property or home. Buying a home may be the first step you take towards building long term wealth. Thus, here are things to know before buying a house:

·     Budget: You need to know how much money you will have each month to meet your expenses. Remember that your first property will seldom be your final property, so search after your present property getting needs first, and let the long term take care of itself. You should guarantee that the property you are getting will satisfy your present needs and be within your budget. 

·      Location: Take a good look at the location and the locality. It is better to try a place adjacent to the prime location of your city so that the price is not that high. Location will also have a large impact on the resale value of your home. Choose wisely and your home may be your best investment.

·       Rental Rates in the area: If you are planning about investing in rental property, homes in high rent or highly populated areas are ideal. Knowing the rental rate in the area helps you to choose the right property and location.

·      Good Resale Value: Resale sale value is an important thing to consider before you plan to invest or buy a property. Property buyers never consider resale value when they buy. They make the mistake of focusing solely on a prime locality or the budget of the property. If you choose the wrong property or location, it is possible that your future sales price will always be less than the other homes around it.

·       Loan Eligibility: Home loan eligibility depends upon the repayment capacity, income, existing loans or debts and age of the loan applicant. The lending company or banks provide online services such as Home loan eligibility calculator to calculate loan eligibility of the home loan borrower. The maximum loan that can be sanctioned varies with the banks and the eligibility criteria may vary according to the bank or RBI regulations. As home loan rates increase, the loan eligibility for a borrower becomes stiffer.

·       Stamp Duty & Registration Fee: This is an important expense or tax, much like the sales tax and income tax that are collected by the Government. When planning your budget for property buying and deciding to buy a property, you need to know the rate and charges applicable in your city. If you want to know the market value of your property and the stamp duty amount on it, you need to contact the Ready Reckoner to locate your valuation zone and sub-zone. Find out the stamp duty amount applicable to you as per the market value.

·        Property insurance: Property insurance safeguards your financial future if certain damages occur to your property. The cost is relatively low and provides coverage in case of problems with the property title, certain damages or any legal issue. There are many different home insurance policies to choose from, with varying levels of protection. When taking a decision to protect your major assets, it is important to have a resource you can trust, to guide you along the way. Choosing the right house insurance protects your property and makes the process of buying easy.

·       Tax Planning: Tax planning, a legitimate exercise and should not be confused with tax avoidance or tax evasion. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act. You can also purchase property in joint names. Joint home loan is an option that might prove fruitful for married couples. Know about your home loan and tax benefit available on it.