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.
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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.

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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.