Myths About Investing In Indian Real Estate- Debunked

Is India’s real estate market a bubble waiting to burst? Or it is just another sparkling growth story of the highest order? There are many such theories attached to this dynamic and somewhat diverse sector and here’s busting ten of the top myths: 

Real estate prices will surely rise in the future

Bull markets are always built around one particular myth and people tend to have this strong perception relating to the upward movement of prices over time. This often spurs rapid buying decisions. In reality, there is no land shortage and prices have been known to fall in areas with stagnant demand in metros like Mumbai, Kolkata and Bangalore. 

A home always fetches quick returns 

Many of us believe that real estate is the sole path to wealth but the real return on real estate investments is not something which will cheer you up quickly! Returns are fluctuating and may depend on multiple circumstances. If you are looking for quick returns, invest in market instruments instead. 

A home is a veritable piggy bank 

People used to treat a home as a piggy bank earlier owing to low interest rates and cooperation from banks. Equity could earlier help you tap into credit lines but banks are now more skeptical about lending against equity, especially your immovable asset after the recession. 

The bigger the down payment, the better 

A smaller down payment may actually benefit you with regard to availing a lower rate of interest since less than 15-20% automatically entails buying insurance. Low down payments also help you snap up properties right away without waiting to save enough. 

Value for money is possible only in the suburbs 

Another common myth, life in the suburbs may cost you more than you think in spite of the cheaper prices of apartments and land. This includes transportation and related costs of amenities which can often equal your savings on the property. 

Redecoration makes for a good investment proposition

Remodeling will never really get you as much as you think. It depends on your own selling skills and the kind of buyer you get. With the tight situation in contemporary times, buyers never really want to fork out much for newer additions. 

Go for the first possible discounts 

Often, realtor groups and companies offer luring discounts which may seem tempting at first. However, this often makes us buy rapidly owing to an expectancy of price rise in the future. However, developers often use this tactic to push sell a property. 

Rentals may not always be a good option 

In spite of the overwhelming fear of rentals, the fact remains that they are a good way to start earning some income after you buy a property. Once the value of the property appreciates, you can always look to sell it for better gains. 

Local developers offer the best, lowest priced properties

Check the credentials of the developer thoroughly. Local developers often default on delivery and this raises your expenses considerably. It is best to stick with experienced and reputed names. 

Property prices are always fixed 

The truth is they’re not! Developers can be negotiated with if they are in a hurry to clear old inventory and you may end up getting a good discount in the bargain!

Which is a better option buying or renting ?

Given the skyrocketing capital values of residential properties, more home seekers are opting for rental properties. However, this phenomenon has led to a new kind of problem where rental values of certain areas, particularly those close to commercial properties are increasing rapidly. Today’s home seeker is therefore left in a dilemma over whether to buy a home or rent it. If you are stuck in a similar situation, then here are some pointers to aid you out.

1. Risk Analysis- Rise in property prices is exponential in developing nations such as India as prices may be artificially floated over a long period. However, rental earning grows at a realistic rate as they are proper functions of demand. Most rental agreements have clauses where rental rates are hiked by 10 percent annually. Price of property in metros normally double every 5 years in urban areas, which is around 20 percent in a year. You should carefully weigh your options of investment as stock markets too offer an annualized return of 20 percent almost.
2. Price to rent ratio- This tool is fast catching up with Indian property buyers where the cost of the property is divided by the rent payable annually for it. If the value of the ratio is lesser than 15, it would be better to buy the house than rent it.
3.  
4. 1. Financial strength- Your financial position must be the backing force behind your stand to purchase an apartment. If your family earning is around Rs 1 lakh in a month, then you shall be entitled to take out a loan of Rs 40 lakhs to Rs 50 lakhs for a period of 20 years. However, if you need to balance your budget in a way to be able to meet expenses with a residual pay after the EMI is deducted. Moreover, you have to spend 20 percent of the cost upfront. For a house valued at Rs 50 lakhs, you have to down pay Rs 10 lakhs or so. Before you set out to buy an apartment, you should set aside an amount of Rs 5 to 6 lakhs as emergency fund. Also, you should be left with some savings after bearing home expenses and monthly EMI. The surplus shall cover the needs of investment and any increase in interest rates. Once you fulfill the conditions, you should look out to purchase an apartment.
   2. Stability of earnings- Home loans are normally for long tenures (more than 20 years or so). Unless you have a stable employment record, getting a home loan may be difficult. You must be confident about the stability of your job particularly if you are employed in a privately owned enterprise. Loan agreements normally come with built-in insurance which would take stock of the outstanding loan in the event of death.
   Besides, prior to buying a new apartment you must factor in the salary increases you hope to see in the coming years because your EMI may increase when the rates are revised. Or else, go for flats on rent under your budget in a preferred locality.

.

Small Home Office Ideas

These clever small home office ideas prove you don't have to give up your workspace just because you live in a small space.

Modern Artwork

The neutral color palette here doesn't steal too much focus from the rest of the room and the small desk details and wall frame cluster keep it from feeling unfinished.

Shelf Under the Stairs

Add a floating shelf, and a small space beneath the stairs is transformed into a tidy workstation. The corkboard on the wall displays clippings and reminders and the front of the shelf opens with hinges to hide paper clutter.

Bachelor Pad Nook:

Even the most unlikely corner can function as a work area. The master bedroom nook can instantly became an office with the addition of a few floating shelves and a refined desk chair.

Minimal and Modern:

Choosing a white desk and chair is a smart strategy if you don't want to add too much visual weight to a room. The clean lines of these pieces also make them feel light and airy.

Masculine Area:

Sometimes a workspace can actually help unify a room, as this desk area does with its sculpture, pistol painting and red cords on the wall. A brick room can be challenging to decorate, but these details certainly add interest.

Vintage With a View:

Pick up a vintage desk, pair it with a woven chair. Plant both in front of a bedroom window. Decorate with framed photos, flowers and a lamp, and you've added form as well as function to an overlooked space.

Types of home loan and their benefits and loss

The increasing price of residential housings and apartments has increased the demand for Home Loans in India. Home loans are the money borrowed from a bank to buy or modify a residential property. Any person who wants to buy a house can go for a home loan. When you decided to buy a property in the immediate future you can also apply for a loan before you decide on your property. The property you are going for should be pre-approved by the bank.The fact that home loans come with huge benefits like tax benefits feels like a cherry on top of your cup cake.

Here we would talk about some of the types of home loans and their pros and cons.

Land purchase loans are used to purchase a tract or plot of land on which the supplicant is planning to construct their home. Most banks offer up to 85 per cent of the price of the land.

The most popular home loan available in India is the home purchase loans. These loans can be used in the purchase of a brand new residential property or an old property from its previous owners.

Home construction loans can be used by the ones who want to construct an independent house. The tract of land on which the person wishes to construct the house should have been bought within a year of application of loan. A rough estimate of the cost for construction of the house should be calculated and then one should apply for the loan. The loan will then be analyzed and then sanctioned.

Home expansion or extension loans are useful for people who want to expand their current home. Expansion includes alteration in the existing structure of the home to add extra area to it. Home improvement loans are applied for renovation purposes.

Home conversion loans are used by the ones who already have a house with a home loan but now want to buy and shift to another house can go for the home conversion loans. With these loans they can fund the buying of the new house by transferring the existing loan to the new house. And there is no need to repay the loan on the earlier home.These are quite expensive though.

NRI home loans are home loans exclusively for the non-resident Indians.The formalities are similar to the normal home loans but the paper works are a bit detailed.

Stamp duty loans are provided to finish off the stamp duty charges on the purchase of the property. The finance from this loan can be used only for this purpose.

What to Consider When Buying a Second Home.

In this present busy world, where everyone is caught up in the middle of a lot of work and no time for a break with their family, a Second home can be a perfect get away everyone is looking for.

When someone decides on investing on a Second home,it usually is considered on two basis, a paradise for that rest over the weekend, if you are holidaying or if you are keen on making a little extra profit by renting the house.

But before you fix your mind on a Second home, there are few factors you should consider on making your investments and how in return it will benefit you. It is highly recommended to consider these few points since no one wants to make a wrong investment and regret about their mistake. The first and foremost point is to keep your priorities straight. 

Check if the house caters to all your needs, if the house suits your lifestyle,if you are the kind of person who likes to have your space and is looking for a fun holiday with your family then check for the perfect location form a local real estate agent. If you consider it to be your after retirement destination then check if healthcare centers, shopping facilities are easily accessible.

The next important point is maintenance. If you just plan to holiday there and lease it out for the rest of the year then a Condo is the best option but if you like it to be your private space then stick to a single family home. Don’t forget about insurance, since your second home should be considered as your primary home considering the fact of high maintenance. If you have a big family or a large group of friends then see if you can pool in to buy your second home. That way you will save a lot of money and wouldn’t have to worry about high maintenance charges.

If you are thinking on renting out your second home, for that extra income to help you for the month then as an owner you need to take a lot of responsibilities. Think of various ways to lease it or rent the house that will benefit you. With these few tips, you could make the most out of your second house. So before you invest consider the points and do a keen research for a great lifetime investment.

What factors affect your choice for a location for your home

Whether you are purchasing your home as an investment, a lifestyle upgrade or both, one of the most important decisions you will make is where you want to live. Your home's location will help determine not only the future value of your investment, but also many aspects of your everyday life. Here are some factors you should consider carefully when selecting a location.


Geographic Location The place you choose to live in will have a major impact on your lifestyle. Particularly if you want to stay in your home for a long time, make this decision very carefully, taking into consideration the factors that are most important to you, like average home prices in the area, job opportunities in your field, proximity to loved ones and climate.

City vs. Suburb vs. Rural The setting you choose within the city or town you select will affect the amount of peace and quiet you have, lot size (if you're buying a house), primary and secondary education options for your children, proximity to shopping, entertainment, medical services and anything else you might want or need, and more.

Neighborhood Within a particular area, different neighborhoods will have different characteristics. You'll want to pick the one that is the closest fit to your lifestyle and personality - a place where you'll feel comfortable and where you are likely to get along with your neighbors. You'll also want to try to live close to the places you visit frequently, like grocery stores, your job (if you plan to keep that job long-term), and, if you have kids, the schools you want them to attend.

School District If you have or are planning to have kids, school district is certainly an important consideration. Living in a good public school district will save you tens of thousands of dollars that you might otherwise be tempted to spend on private school. And even if you don't have kids, it may still be a good idea to consider the quality of neighborhood schools when choosing your location in order to maximize your investment. If you have difficulty finding a public school that meets your standards, you may have to pay a premium to live in a neighborhood with good schools. You will have to consider how that premium compares to the cost of paying for private school or sending your children to a sub-par educational institution.

Proximity to Work The length of your daily commute can have a significant impact on your disposable income, quality of life and how much time you get to spend at home with your family. How long of a commute can you endure? Are you planning to stay at your current job long-term or do you expect to switch jobs in the near future? If you plan to stay at your current job, how close to work do you want to live? If you plan to switch jobs, what are the job prospects in or near the area where you'd like to live?

Safety For most people, safety is a top consideration. You'll often pay less to live in an area with higher crime, but if you'll have to live in fear or if you one day become a victim, no price discount will be worthwhile. It may also be harder to resell your home or get a good price for it if you decide to sell.

Proximity to Friends and Family The best home may not feel very homey if you live too far away from your friends and family to see them on a regular basis. On the other hand, your friends and family might end up moving at some point, so make sure this isn't your only reason for choosing a location.

Proximity to Leisure Activities What do you enjoy doing in your free time? If you have season tickets for a particular sports team, you may not want to live too far from their stadium. If you love to go out to eat, you might not be happy living somewhere with few restaurants. On the other hand, if your favorite thing to do is stay home, you might have more choices available to you when it comes to this aspect of choosing your location.

Once you've narrowed down the factors that are most important to you in a location, it's time to research that location to make sure you're getting what you bargained for, assuming you're not already familiar with the location.
Research the Neighborhood Facts and statistics are available online through websites, forums and message boards. What do the crime statistics look like? What is the average income? How many people have a college education? Do the statistics reflect the kind of neighborhood you'd feel comfortable living in? It's usually easy to find these statistics online through real estate websites. Statistics rarely tell the whole story, though, so try talking to current residents and the local police department for additional information.

Visit During the Day and at Night What a neighborhood looks like on paper and how you feel when you're in it are not necessarily the same thing. Sometimes little details can make a big difference. For example, some neighborhoods have narrow roads, lots of cars parked on the street or distinctive architectural features that may not suit your tastes. If these things aren't what you envisioned in your ideal neighborhood, you may not want to live there no matter how great the statistics are. 

Also, a neighborhood might feel comfortable during the day, but seem disconcerting at night. It's important to visit several on different days, at different times and in different weather conditions to get an accurate picture of the neighborhood's character. It can be hard to judge a neighborhood's character in the dead of winter or on a rainy day when everyone is cooped up indoors. You'll also want to check for things like how well the neighborhood is lit at night, which you can't observe during the day.

Who Are Your Potential Neighbors? What kind of people live in the neighborhoods your are considering? Will you feel comfortable in the community? If you're not very religious, you might not want to live in an area that's dominated by a particular religious group. If you're a staunch Republican, you might not want to live in an area that's known for being particularly liberal-minded. It all depends on your beliefs and how open-minded you are. Some people prefer to live near others who are like them, some people don't want to live in a homogeneous environment and others don't care either way.

Homes for senior citizens- Evolve to a Future-Enabled Living in India

Independent Young Seniors

Today’s senior citizen generation is more educated and financially stable than their predecessors. They may have aged physically but they are young at heart.

Elderly today are independent and attuned to the current times, and conscious about the ‘Perform or Perish’ scenario that their children face. They are well aware of the rat race, where job responsibilities and expectations increase day-by-day.

More and more seniors are therefore opting to be independent, and lead a life of dignity without burdening the aspirations of their children.

Senior Living – The Gift of Dignity and Independence

Senior living homes are a great boon to elderly, to overcome the ‘empty nest’ syndrome and to enjoy the retirement years. Housing facilities for senior citizens is soon becoming the new normal. It is a gift that both generations can give to each other.

Younger generation can be rest assured about their parent’s well-being, and the older folk can live their life peacefully without being dependent on their children and curbing them from flying off in search of better avenues.

Independent living homes or senior living homes, as they are termed today, are holistic living colonies replete with all the facilities one could ask for – right from elderly-friendly designs to prompt medical attention.

The Wellness Factor

The independent senior living homes are wellness facilities that cater to a person’s physical wellness as well as spiritual, emotional, environmental and social wellness.

Independent living homes vouch for dignity and independence of the elderly, by providing a unique blend of preventive healthcare, engagement and companionship.

Senior living homes are typically found off-city limits, closer to the hills where the air is clean and fresh and there’s little or no pollution.

Without thinking twice, one would know that this would be an ideal place for them to retire to live a jovial and peaceful lifestyle.

Facilities

Senior citizen homes offer a host of facilities, required for a peaceful life:

Spacious Rooms

Elder-Friendly Construction Designs (anti-skid flooring and handle-grabs to facilitate mobility)

Wholesome Food

24×7 Attention Care

Yoga Centers

Landscaped Parks

Well-Lit Roads

Around-the-Clock Security

Leisure Activities, Fun Clubs, etc.

Spiritual Nourishment

Friendships of Like-Aged and Like-Minded People

With these housing facilities, the elderly will have a great place to spend the autumn of their lives financially and socially independent, and in harmony.