What Are Bridge Loans & How Do They Work?

A bridge loan is a kind of short term loan taken out for a set period of time ranging usually from 2 weeks to 3 years. Bridge loan has a short tenure with a relatively higher interest rate than a standard loan. Some lenders might charge you the standard variable rate on a bridge loan and some will adjust the interest rate as per the situation or the risk involved. You may rarely come across the situation when you would sell your current property at the same time you buy your next home. And at times, the situation may push you to buy a new property before you are done with the sale of your existing property. Even, the arrangement of such a huge amount is not easy for everyone but, bridge loan is something which can act as a savior for you in this situation.

How to apply for bridge loan?

One can easily apply for a bridge loan individually or jointly like if you are going to co-won the proposed property the, all the proposed owners must be co-applicants for a bridge loan. The prevailing interest rate in the market for a residential property is 12.30% and for the commercial properties it is 13.15%. The interest rate may vary from loan providing agencies or banks.

Documents required to apply for short-term bridge loan

-          Proof of identity & residence ( passport, voters id, adhar card, driving license, etc)

-          Proof of income ( PAN card, salary slips, Bank statements, Form 16 & IT returns)

-          Property documents of both the parties (Title deeds with chain of property and proof of no encumbrance on property)

Repay of Bridging Loan

This is one of most important and crucial part as this will impact your financial strength. So, before you make up your mind to opt for a bridge loan, you should know that what you are getting into. Firstly, you need to know your mortgage payments are calculated during your loan period and how much you will have to pay once the loan period is over. When you are in the process of selling your existing property, the minimum repayments are calculated on an interest only basis and depending on your lender, you may be able to capitalize all repayments until the final sale is carried out. In addition, when you apply for a bridge loan, your peak debt will increase and so will the overall interest on the loan.

Should you opt for bridge loan?

Before taking another step ahead towards a bridge loan, you must know its pros and cons. The major cons of availing a bridge loan is that the interest rate is much higher than the regular loan. On the other hand it gives you the benefit to wait for better options rather than accepting a lower offer in a hurry.

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.