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Facts to consider before Buying a House

Leave a Comment / Home Buying Tips / By AdntAdmin

The decision of Home buying is a very critical decision in one’s life as it is a matter of investing their hard-earned wealth into their dream home which must be essentially perfect for their future and also customisable as per one’s needs. It is a crucial moment in a person’s life as it also involves the inception and planning of a family and its future where children would grow up to call it home. The search of a home is a meticulous process involving browsing several portals and several sources, talking to several people for their advice, visiting several properties and judging all the options based on various factors involved and then selecting the best option apt for one’s requirements. Various other factors come into play along with the inspection of the neighbourhood of your property

1. Location

Whether you have plans to live in a peaceful suburb or the busy city, deciding where to live is crucial to the satisfaction of a property owner. Considering all the attributes of a locality keeping in mind all family members to ensure comfort for everyone is essential. Another major factor is whether the locality matches your standards of living and the scope of development in that locality is high so as to ensure higher returns on investment, better connectivity, comfortable living.

2. Connectivity

Having a number of options to connect to the city centre and other parts of the city from your locality is a must. A vast road network connecting to all major locations along with various alternatives to decongest traffic and reaching respective destinations in a short time is essential.

3. Know your Neighbourhood

It is essential for a homebuyer to know the basic amenities available in the community or the presence of a township integrating commercial and residential living as having easy accessibility to all basic needs and amenities like commercial retail outlets, schools, colleges, hospitals, offices, shopping malls, restaurants and various other public places.

4. Transport Options

Considering vehicle reachability and commute options ranging from Metro-Bus-Auto-Trains-Public Transport is crucial. Quick accessibility of various transport options is essential for a busy and modern family.

5. Security

For a family, a home is their shelter. Firstly, you must ascertain the security conditions of their locality, then invest in an advanced security and surveillance system to ensure the safety of your family and your property. It protects your investment and at the same time makes sure you have your peace of mind. Carefully select the security system that is apt for your property.

6. Financials

The purchase of a home can initially be very exciting for the first-time home buyer. In this excitement, one must not forget scoping all the financials pertaining to your investment. It is also necessary that you have a sizeable amount of savings to spend. Determine the true costs of the property by taking a strong reality check.

As can be seen, various factors must be taken into careful consideration and selection of the best from a variety of options is a critical aspect.
Adinath Buildwell focused on satisfying customer’s requirements rather than commercial gains, someone whose offerings are unbiased and tailor-made for the buyer’s satisfaction is key to efficiency and profitability. We strongly urge you to get in touch with us all your needs, doubts and queries and let us help you find your dream home.

Legal Documents required to buy a Property

Leave a Comment / Home and Lifestyle Tips / By AdntAdmin

1. Deed of Sale Document

A Sale Deed is the most important legal document that acts as proof of sale and records the transfer of ownership of the property from the seller to the buyer. This document needs to be compulsorily registered at the sub registrar’s office under whose jurisdiction the property falls in. It is imperative that before the Sale Deed is executed one should implement the sale agreement and check for conformance of various terms and conditions as laid in the sale deed.

2. Khata Certificate

Khata certificate or extract is an important legal document for the registration of a property and is known by different names in different places. It is essential if you want to transfer the property to someone else at a later stage.
This document is proof that the property is entered in the records of the local municipality and the construction was carried out according to a plan. This paper is essential if you are applying for a home loan.

3. Power of Attorney

This piece of paper is required as a proof of whether the sale or purchase is done by an authorised person in the interest of the owner of property. This legal document needs to be produced in original if you are intending to apply for a home loan.

4.Copy of Building Plan

A copy of the building plan must be acquired by the buyer approved by the statutory body to establish that the construction of the property has been carried out following all the rules and regulations.

5. No Objection Certificate

There are as many as about 20 NOCs that needs to be obtained by a developer from different authorities before starting to build a housing project. Ask the developer for copies of these NOCs and file them for your record.

6.Building Plan Document

A copy of the approved building plan must be acquired by the buyer to establish that the construction has been carried as per the laws.

7. Sale Agreement

This legal document records all the information about the property – the terms and conditions, possession date, payment plan, specifications, facilities etc.
The agreement is one of the most important legal documents that holds the developer accountable for the construction of the property. This document needs to be produced in original for property purchase and while applying for home loan.

8. Allotment Letter

An allotment letter is one of the most important certificate that needs to be produced in a bank before applying for a home loan. It is issued by a developer or the housing authority, listing the description of the property and an account of the amount paid by the buyer. An allotment letter is issued on the letterhead of the housing authority while a sale agreement is a document made on stamp paper.
An allotment letter is issued only to the first owner and other owners can ask for a copy of the original papers.

9. Possession Letter

This legal document is provided by the developer to the buyer and sets a date on which the former will grant the latter the possession of the property. The original copy of this document needs to be shown while applying for a home loan.

10. Payment Receipts

The original payment receipts need to be provided by the developer to the buyer if you are buying a property. If you are buying a resale property, ask for a copy of all the receipts so that it can be produced in the bank.

11. Property Tax Receipts

Property owners need to pay taxes.Make sure that the previous occupier/owner had paid property taxes and no pending dues are left. It also establishes the legal status of the property.

12. Encumbrance Certificate

An Encumbrance certificate establishes that the property does not have mortgages or legal dues pending for payment. This is one of the most important legal documents that need to be provided to the bank before applying for a loan. In India, Form 15 is issued if the property has encumbrances against it; else Form 16 will be given to the owner clearing the owner of all encumbrances.

13. Completion Certificate

This legal document is essential for obtaining a home loan. This certificate reiterates the fact that the building has been constructed according to an approved plan.

14.Certificate of Occupancy

An occupancy certificate is issued to the developer by the local authority to establish that the building is ready for occupancy and the construction has been done as per as established plan.

Adinath Buildwell focused on satisfying customer’s requirements rather than commercial gains, someone whose offerings are unbiased and tailor-made for the buyer’s satisfaction is key to efficiency and profitability. We strongly urge you to get in touch with us all your needs, doubts and queries and let us help you find your dream home

The Rera Act benefits for Home Buyers

Leave a Comment / Home Buying Tips / By AdntAdmin

1. Carpet Area Standardized:

Due to lack of uniformity in the calculation of carpet area, this act has firstly defined the formula for calculation of carpet area to be adopted by all builders and developers. This is a major factor for buyers as the cost of a property is calculated based on this.
Cost of Property = Carpet Area x Rate per Sq. ft.
Earlier it was seen that a lot of developers would portray the carpet area falsely in order to hike the price of the flat which is not possible now.

2. On Defaulting, the rate of interest to be paid the same for both parties

In the case of defaulting on payments & possession by the buyer and the seller, the rate of interest shall be the same for both. The developers who used to charge more interest to buyers on defaulting payments would now be charged with the same rate of interest in case of defaulting on possession date by them.

3. Reduces Risk of Builder Insolvency/ Bankruptcy

Especially in the case of big developers who are involved in multiple projects at the same time, it is now mandatory to deposit 70% of the amount realized in construction costs in a separate bank account which can be used for that project only and can be withdrawn only on completion after being certified by concerned authorities.

4. Rights of Buyer in case of False promises

When the commitments given by a builder are not met, then the buyer is eligible for a full refund of the advance amount or any amount that was paid along with interest. Also, they will be allowed to claim compensation for their grievances.

5. Advance Payment

An advance amount or any applicable fees that are collected towards a property must not be more than 10% of the cost of the house and must be collected only after an agreement of sale has been executed between the buyer and the seller.

6. Rights of Buyer in case of defects found after possession

After a buyer has possessed property in case any defects have been found within 5 years of their possession, the builder is liable to bear all the expenses for repair of it and do so within 30 days.

7. Rights of Buyer in case of Delay in possession

In case of delay in completion or possession, the buyer can either withdraw from the project in which case he is entitled to a full refund or continue with the project till completion and collect the interest for the period of delay by the developer

8. Rights of Buyer in case of Defect in Title

Once a buyer has possessed the property and in case defects in the title have been discovered the buyer is eligible to claim compensation with no time limit on the discovery.

9. Right to Information

Gone are the times when the buyer would have limited info on the house, with this reform coming in the Buyer is entitled to know all information on the project right from title deeds to the time of completion.

10. Grievance Redressal

If the buyer, the promoter, or the agent has any complaints with respect to the project, they can file a complaint with RERA. If they aren’t pleased with RERA’s decision, a complaint can also be filed with the Appellate Tribunal.

The RERA act which has already been encouraging speedy, transparent and smooth developments in Real estate for the past 2 years, has been the biggest boon to the Home buyers in India.
We Adinath Buildwell are of the opinion that when the government and authorities have implemented such an important initiative to cleanse the real estate market, buyers must take full advantage of this as there has never been a better time to invest in Indian Real estate than now.

Which is the best option to Buy -Apartments, Villas and Plots

Leave a Comment / Home and Lifestyle Tips / By AdntAdmin

1. Apartments

Apartments are multi-storeyed buildings comprising numerous individual housing units. When compared to villas and plots, apartments are the most sought after and sold properties in India. Contemporary looks, Modern Amenities, and Better Security are some of the reasons why they are preferred. Unless the buyer has an intent to design his own property Apartments for sale have been the top choice consistently. It is advised to homebuyers that after analysing various aspects like budget, location, and other preferences, make a decision from the plenty of options available in ready to move in flats.

Scope of Return on Investment

Some homes are purchased from an investor’s perspective. From an investor’s standpoint, factors like Rental Yield and Capital Appreciation are key. These properties are generally rented out. What’s left to be considered is external factors like Location, Accessibility, and Demand for the Properties for sale in a specific locale which impact the overall financial prospect of the property. Apartments are known to have high resale value and a wider buyer base. As the demand for flats is generally higher, it is understood that finding a buyer for a flat is easier.

One aspect where apartments lag behind their counterparts is Appreciation. Primarily, appreciation is realized on the value of the land. So, when it comes to apartments, the wear and tear of the building increase the rate of depreciation.

Impact on Tax

A person can avail some tax benefits when he or she buys an apartment. In case of the self-possession of the property, a taxpayer is eligible to avail tax rebate of up to Rs 2 lakh on the interest paid per financial year. Additionally, they can avail Rs 1 Lakh on the principal amount paid.

In the case of renting the property out, the rent collected is taxable as it is considered income.

2. Plots

Plots are the basic units of land with no built-up space. They are ideally bought by people looking to build their own home as per their taste and need or an investor seeking to reap heavy profits on their investment.
In any scenario, building a house is a meticulous task. If one’s thinking of building a home, considering the extent of financial backing as the owner land, construction, architects, designers and labour cost. Let’s not forget it is extremely challenging and time-consuming to buy plots for sale and build a home. Financially speaking, banks to give loans for purchasing plots but they are relatively stern and different when compared to the loan for an apartment. If we were to take an example, the loan limit for a land purchase loan is lower than the loan limit for a constructed structure. What this means is that one has to shell a larger down payment for plot when compared to a flat.

Scope of Return on Investment

It’s a known fact that plots can’t be rented out without any built structure. But interestingly, when compared to apartments plots have higher rates of capital appreciation which is seen when the sale is done in a lucrative market scenario. One more factor is the proportionality of demand and supply. The ideal time is when the demand is higher than supply.

Impact on Tax

In the case of loan for a plot purchase, one is not eligible for tax exemptions. If a structure is being built on the plot then one can avail tax exemptions for the loan amount sanctioned for the construction. This can be done only after the construction is completed. Another important fact is that if a plot more than 500 square metres in the area is vacant then it is liable for a wealth tax.

3. Houses/Villas

People who prefer privacy choose to buy independent houses and villas for sale. The disadvantages that come with the purchase of an individual house or villa are lack of security and power and water backup. However, what’s interesting is that in gated communities, property developers offer security and power back up with a wide range of options and shared amenities. These are features that societies give.

Scope of Return on Investment

Coming to the financial aspects of individual houses for sale and villas, capital appreciation is low compared to apartments and plots which is due to the higher capital initially and lacklustre demand later.

The rental yield is higher when compared to apartments but when this is calculated with respect to initial capital invested. But let’s not forget that its relatively difficult to find tenants for villas when compared to apartments.

Impact on Tax

In case of the self-possession of the property, a taxpayer is eligible to avail tax rebate of up to Rs 2 lakh on the interest paid per financial year. Additionally, they can avail Rs 1 Lakh on the principal amount paid.