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Team iPropUnited

Team iPropUnited
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Here Is Why Bank Statement Is Required For A Home Loan

By
Team iPropUnited
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Bank Statement

If you are planning to apply for a home loan, the bank statement must be in your check list of the documents required for a home loan. Why bank statement is required for a home loan? How significant is your Bank Statement and what information lender intend to extract out of it? Below are the facts that lenders look for while inspecting your bank statement:

Cheque Dishonouring
With the Bank charges debited to you account on account of cheque dishonouring enables the lender to access your financial discipline. In case of higher instances of cheque dishonour, the same projects your incapacity to pay off your liability and affects your credibility. A person who issues cheques without maintaining an adequate balance in his account thus resulting in more number of cheque dishonours has slim chances of getting a loan. Hence, bank statement is required for a home loan.

Information Regarding Other Loan – if any
With the existence of any other loan, your scope of getting higher amount of next loan gets diminished. In case the constant amount is debited from your account every month, that show your liability towards other loan(s) and the lender assessed your capacity of repaying the current loan by accessing your total liability minus the amount you are liable to pay for the previous loan.

Balance of your Account
With the trend of payments via credit cards and online transactions, the lender is able to calculate your expenditure vs. income as all such transactions get reflected in your bank statement. The one will high amount of debits on account of such expenses compared to their income, have fairly low chances of securing a home loan as this reflects your habits of over spending and your incapacity to repay loans in near future.

The Nature of Activity
Lastly, bank statement is required for a home loan because it plays a crucial role in verifying the level of activities of a business in case of self employed and the salary quoted against the amount mentions in loan application. If there is a huge inflow of funds around the time when the loan is applied for, it arises a suspicion that the same activity is being with a view to obtain an eligibility of loan.

In case of genuine salaried employee, a constant amount gets credited as income every month and gets reflected in the bank statement. But in case if the amount has a significant variations, then the same get scrutinized by the lender before lending a loan. Similarly, in the case of self-employed, receipts reflected in the bank statement are compared with the amount declares in income tax returns to access the credibility of the borrower.

So, by now you must be aware of why bank statement is required for a home loan. Now, if you are applying for a home loan, ensure your bank statement is free from the flaws as mentioned above else chances of rejection of your home loan will get substantially high.

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How To Obtain Home Loan For Your Dream Home

By
Team iPropUnited
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Home Loan

Obtaining a home loan is as easy as pie for one while other may have to struggle a bit to get the same. With the aspiration of buying a home, one diligently explores various options available in real estate within budgets. What’s next after you have finalized your dream home? Obtaining a home loan is, surely, a crucial step to realize your dream of own house. How to obtain a home loan? Following are the steps one need to follow to obtain a home loan for your dream home.

Initial Evaluation of Property: You need to submit a loan application with its processing fee as the first step of loan application. The bank will evaluate your credibility basis your credit history and documents provided by you.

Verification by the Bank: After qualifying the eligibility criteria, you need to submit your documents which shall get processed by the bank. To cross check your details provided in documents, a bank representative will visit your work place and residence as well.

Evaluation shall be done for the property to be purchased. However, in case your loan application gets rejected, your processing fees shall also get forfeited. Hence ,it is highly recommended to go through the guideline for application while applying for home loan for your home.

Documents Required: Following documents are required to obtain a home loan once your application gets approved –

Loan Application
1. 3 Photographs of the Applicant
2. Identity Proof – Passport, Aadhar Card, PAN card or Driving License.
3. Address Proof – Electricity Bill, Aadhar Car, Driving License
4. Proof of Income-
For salaried employees, Last three years copy of income tax returns and original salary slips.
In Case of self-employed; proof of business existence, Profit and Loss statement & Balance sheet for last 3 years certified by a CA, Income tax return of last 3 years and photocopies of challans for Advance Tax payments
5. Passbook and Bank Statement for the period of last 6 months
6. CIBIL score of the applicant.
After submitting these documents, you will get the acknowledgement letter from the Bank.

Acquiring Pre-Approval of Loan
With acquiring the pre-approval of loan, you have to obtain the loan within 3 to 6 months will now be definite about your buying capacity and can negotiate better with the seller. In case the project is not approved the bank and the time taken by bank to approve a project exceeds the pre-saction loan limit, your loan may get cancelled. To avoid such situation, always go for an approved project in case of applying for pre-approval.

Defining Credit History
Credit history plays a vital role in determining if you are eligible for loan or not. Credit Card dues and your existing debt against the EMIs you pay determine your Credit History. Ensure to not to make more of loan enquiries as it may pull down your creditworthiness.

Which Type of Loan to Choose From?
Hidden charges like valuation fee, processing fee etc. inflate the cost of your loan. So, compare while choosing a loan on basis of Hidden charges associated with it. Terms of repayment and rate of interest should also be considered as compared.

Clauses to be Considered in Loan offer Letter:
Once your loan is approved, you will receive a Loan offer letter from Bank comprising following clauses:
• Terms and Conditions of Loan
• Scheme or offers applicable, if any
• Interest rate – Floating/fixed/Mixed
• Tenure of Loan
• Mode of repayment
• Change in rate of interest over the period of time – if any
• Number of installments in which bank will disburse the loan amount

Assessing EMIs
Equated Monthly Installments (EMI) is the amount that includes the principal amount and interest to be repaid by the borrowers to bank. The amount of EMI is inversely proportional to the duration of EMI. It is calculated by using a factor called Fixed Obligation to Income Ratio (FOIR) which is generally 50% to 60 % of the net salary of the borrower.

Other factors like Interest Rate (Fixed or Floating or semi-fixed) shall also be considered while obtaining a loan.

NRIs With No Pan Card Need Not To Pay High Tax

By
Team iPropUnited
-

No Higher Tax for NRIs

With the recent declaration by Finance Minister Arun Jaitley in Budget 2016 that NRIs without PAN shall not be required to pay higher tax rate. It has been viewed as a step to boost NRI investments in India. Earlier NRI without was required to pay TDS highest of the following under Section 206AA:
• At the rate of 20%
• At the rate specified in relevant provision of income tax for a particular source of income
• At the rates in force

Now section 206AA has been proposed to amend in Budget 2016 where alternative documents can be furnished instead of PAN Card and NRIs shall not be accountable to pay higher rate of taxes.

Jaitely mentioned in his budget speech that whiles the global economy is suffering with crisis, Indian economy still holding its ground firmly.  With the investment process making easier for NRIs without PAN Card, no doubt this move will raise the investment from them and thus, strengthen the economy.

In case of absence of PAN card, NRI investors are required to file under Section 37BC:
• Tax Residency Certificate (TRC) from the country of his residence
• Tax Identification Number (TIN) or any Unique Identification Number (UIN) of the    country of his residence
•  Address of the his country of residence
•  Name, email id and contact number

However, PAN card is mandatory for the following types of transactions by NRI:
•  Royalty
•  Payment on transfer of any capital asset
•  Interest
•  Fees for technical services

These measures will surely relive not just the NRIs but the foreign companies who were earlier paying higher taxes on account of absence of the PAN card.

Here Is Why You Should Buy A Home In Your Wife’s Name

By
Team iPropUnited
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Wife's property

To boost the empowerment of woman, several tax concessions and benefits have been provided by the government of India exclusively for woman, making buying-home in wife’s name a profitable deal. Either as sole owner or joint owner, there are several benefits in buying a property in the name of a woman or your wife. Here is why you should by a home in your wife’s name.

Lower Stamp Duty Charges
Partial waiver in the stamp duty is offered by the several states in India, where the property has been registered in the name of a Woman. Approximately 1%-2% can be saved on account of stamp duty. In Delhi and Haryana, Men are required to pay 6% as stamp duty over woman who are required to pay 4% only.

Tax Benefit
An extra deduction of interest up to Rs. 1.5 Lakh each financial year can be claimed by a woman tax payer in case the house is self occupied. With separate sources of income, even if the husband and wife are joint owners in a property; they both can claim tax deductions under Sec 80 C. The amount of tax benefit will depend upon the ownership of individual co-owner. So, buying a home in the name of a wife as a co-owner or sole owner will help you grab some extra share of income tax deduction.

Lower Home Loan Interest Rates
Home Loans for women borrowers are offered at discounted rates by the banks like HDFC, SBI and ICICI. While SBI charges an interest rate of 9.35% from women borrowers, others are required to pay 9.40% for an amount less than 1 crore. The HDFC bank charges 9.40% from women while men pay around 9.45%-9.50% for an amount of 1 crore.

One of the greatest benefits of purchasing a property in wife’s name is that, in case one undergoes some of the financial setback and is liable to repay some debt, the property held in the wife’s name shall not be clubbed to cover the losses.

However, the tax benefits can only be enjoyed in case the wife has a separate source of income. But, in case of any legal dispute against the property, both husband and wife shall be involved as co-owners. So, one should make a decision after inspecting each and every pro and con associated to it.

Ready To Move Vs. Under Construction Property

By
Team iPropUnited
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ready to move vs. under construction

Buying an under-construction or a ready-to-move property largely depends on the needs of a buyer. The one who is looking for a house with urgent requirement to move in, cannot sustain with an under-construction property. While those with the perspective of investment in real estate finds under-construction property as more profitable affair.

Ready-To-Move Properties
If you strongly believe the adage – “A bird in hand is better than two in a bush” then ready-to-move property is meant for you. With the growing instances of defaults and delay in the real estate sector, chances are high that the developer will not render the possession or may not be able to complete the construction within the time stipulated.

As an emerging sector, real estate has been curbed by some of unprofessional builders who start their projects without adequate financial and other resources resulting in delay of projects and loosing buyer’s confidence. In case the property is associated with any kind of litigation, chances are high for the further delay in project completion although the disbursement are generally linked with the completion of construction in case of under-construction property.

Ready to move in property with complete registered Papers also give an advantage to owner to borrow any kind of loan from the Bank by submitting the documents as a collateral to them.

Once the construction gets completed, EMI payment gets started and the home loan gets disbursed at the same time. In case there is some delay in the possession, a buyer may end up paying EMI while bearing the expenses of rentals as the possession of the house is yet to be transferred. Under such cases, a buyer may require to cancel the property booking due to financial constraints of monthly rent and EMI simultaneously.

Alternatively, when a buyer opts for ready-to-move apartments, he can save on the part of rentals or can rent out his apartment to earn a supplement source for EMI payment. High rates of Interest and higher risks are involved with under-construction property. Although default factor becomes minimal when it comes to reputed builders with good credibility still, lot of risk involves in giving away the possession of property with delay in time.

Under-Construction Properties
The rules say “Profitability is always proportional to the risk undertaken”. So, under-construction property being a risky version allures the investors due to its higher profitable aspects. No doubt, the prices of under-construction properties are lesser than a ready-to-move apartment. The buyers for under-construction venture may experience price stagnation for the first few years till the proper amenities get developed around the area. But, later on they may enjoy the higher price appreciation as compared to ready-to-move apartments.

At the same time market trends depict various risks like delay in possession or default by seller like allotting the same under-construction property to more than one buyer involves huge risk in such projects. Secondly the under-construction property is not as liquid as ready to move-in apartments. In case of sale, you shall be required the consent from builder as well as his commission from the sale proceeds.

While ready-to-move property ensures an instant gratification of your money, under construction property assured higher returns in long term.

Most Important Rationales To Consider For Real Estate Investment

By
Team iPropUnited
-

real estate investment
When it comes to finding out the best way to enhance your investment in Real Estate, a unanimous consent is required for it. The real estate segment has witnessed tremendous growth over last two decades and this is the reason it has become a superlative choice of investment for almost every investor. Below are some most important reasons which will convince you to believe that real estate, actually, is better sector when it comes to choose for a long-term investment with other benefits like rental income with marvellous appreciation in your capital amount.

Simple and Easy Investment
When it comes to invest in property, it is quite an easier option compared to shares and stocks which need a stock-broker to invest. Although expert advice is always recommended when it comes to invest your hard-earned money, this sector still requires minimal third party (broker) intervention. Various online portals are available to answer your dilemmas about investment on property.

Cheap Loans
When it comes to comparing loan rate for other assets, interest rates for home loans are cheapest ranging from 9.25 per cent to 11 per cent a year. While an auto loan is offered at 14 per cent in India, you shall be required to pay an average of 15 per cent on personal loan.

Extensive Finance Option
As many options are available for financing the real estate projects, ranging from Non-Banking financial institutions like private lenders and institutions to Banks, one can easily invest in real estate sector with no dearth of money in terms of financing.

More Prospects of Appreciation in Capital than others
Once invested, the investor not merely enjoys appreciation in the property value, they can also enjoy a stream of income by letting it out on rent. Depending upon location, property attracts whooping rentals and there is no dearth of people looking for rented apartments in areas like NCR where thousands of immigrants across India settle down every year.

Asset for Generations
This is a kind of long-term investment which is expected to be appreciated over years and can be passed on to your kids.  Preferred over shares and stock which does not assure you an appreciation in long run, investment in real estate guarantee a long term appreciation as well

Safest Bet
No single company in National Stock exchange has guaranteed continuous appreciation on your invested amount over a decade or two. But, when it comes to investment in real estate, if invested diligently, one may derive dual benefit as rental income and property pricing appreciation which may go as high as more than double of your invested amount.

Tax Benefits
Not just low interest rates, you will also enjoy rebate on your taxable income against your home loan. If the acquisition or the construction of your property gets completed within 3 years from the year you have taken the home loan, you can get benefited with an extra deduction of up to Rs. 2 lakh per annum for a self-occupied property.

Dream of “Own House”
With investment in property, you can pursue you dream of owning your “own” house apart from various other monetary benefits like rental income and property appreciation. Owing a house, no doubt, assures a secured future for your coming generations besides giving you a distinct status in society.

Real estate, no doubt, is a money building cycle today which helps you to reap benefits till time conquers perpetuity, right boasting from your social status to building an investment channel that assures a guaranteed income, property plays a vital role.

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Importance Of NRI Investment In Indian Real Estate

By
Team iPropUnited
-

NRI Investment Importance

Recent moves by the current government have given NRIs a reason to smile and made Indian real estate sector a beneficial option of investment for them. The significant impact of such norms has been arisen in the recent past with significant boost in NRI investment, which is further likely to increase in current financial year.  Does NRI investment really play a crucial role in the development of real estate? Below are the impacts that clarify why Indian government is inclined in drawing NRIs attention in Indian Real Estate Sector:

1. For last 5 years, real estate in Delhi/NCR has witnessed stagnation. Although the trends have been started reversing with the new government, the people are reluctant in investing real estate sector. With pumping in NRIs investment by introducing investor-friendly policies like treating non-repatriable investments in Real Estate sector as domestic investment, the government is successful in building up the confidence of domestic investor in real estate.

2. Of course, when real estate will become a lucrative option of investment for NRIs in real estate in India, it will draw more FDI (Foreign Direct Investment) that will pave the way for overall economic development of the country.

3. With more and more capital inflows, the real estate sector in India will get a much-needed push and will reflect more growth prospects in this sector.

4. When more and more capital shall be introduced by NRI in this sector, housing in the country shall become less expensive. The prices of individual apartment in large scale projects shall be expected to be lower than a typical residential project.

5. With more NRIs’ investment in Indian real estate, the remittances from abroad will rise and tune in billions of dollars in India every year which is further comparable to India’s annual plan expenditure and thus plays a significant role in economic development of the country.

6. The introduction of more and more NRI investments in Idian real estate, curbs more skill-set from NRIs too. In case the suitable architects and designers are unavailable for the specified projects, foreign architects are hired for the desired level of expertise. With their improved abroad practice, NRIs ethically contribute literally much to the real estate.
As the value of Indian Rupee is falling against dollar turning Indian property cheaper, NRIs are eyeing real estate as a beneficial deal to invest.

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SBI, ICICI Banks Further Reduce Home Loan Rates

    By
    Team iPropUnited
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    SBI and ICICI Banks

    A precise cut of 0.15 % in the rate for Home Loan up to Rs. 75 Lakhs is announced by SBI while ICICI has declared waive off on the loans owned by the people withdrawing salaries and holding account with it. For SBI, it’s the lowest level of interest rate the Bank ever offered in past six years. Certainly, an excellent offering by the bank.

    As per the revised rate, the home loans will now be available at 9.15 per cent and that for women the same will be available at 9.10 per cent rate of interest from SBI. An individual can save Rs. 542 per month on the interest rate for up to Rs. 50 Lakh which makes up to Rs. 2 Lakh during the entire loan tenure of 30 years. The same person can save up to Rs.6 Lakh at the end of the tenure on same EMIs of Rs. 542 per month if investing in a recurring deposit.

    The offering of private sector bank is little different from the SBI in a way that it has launched ‘ICICI Bank Home Overdraft’ for the ICICI account holders. Through this, ICICI offers Rs. 5 lakh to Rs. 1 Crore credit against properties owned by them which, in turn, delivers dual advantages – term loan and overdraft facility.

    The term loan is for quick availability of funds for the urgent and immediate requirement, whereas overdraft facility is to have the access to the loaned amount whenever required, at any point of time for personal as well as other purpose. This allows utilising the amount for education, treatment, home or shop renovation, marriage and other such needs.

    Overdraft facility provides the loan amount in bracket of Rs. 5 Lakhs to Rs. 1 Crore which can be used both as term loan and overdraft. To the minimum, 10 per cent of total loaned amount can be used as term loan, while 90 percent of the total loaned amount, to the maximum, can be used as overdraft. Interest rate on term loan will be as per the EMIs and for the overdraft amount, the same will be calculated upon the funds used and for the period it was used.

    However, the recent decision on demonetisation of Rs. 500 and Rs. 1000 currency notes might also affect the home loan criteria and banks may reduce their rates further.

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    From Physical To Digital Marketing – Real Estate Being Sold Online

    By
    Team iPropUnited
    -
    Online Property Sell
    BrickToBuilding

    Builders and developers have well understood the pre-requisite of the era and have smartly shifted to online channel to deal with the customers. Even homebuyers, who are willing to invest their heavy amount in flats and apartments, prefer to check the desired property virtually before they actually visit and examine it.

    How They Are Using It?

    They are getting connected through various social networks like Facebook and Google which, in turn, help them getting connected with potential customers online. Builders are interacting personally by sharing messages and are gaining better results.

    As per current statistics, around 25 per cent of the total leads are generated through digital marketing and gives approximately 9 to 10 per cent of conversion rate. As expected, the stats for real estate digital marketing will grow in future and more than 28 per cent of revenue will be generated in come 3 years.

    What Builders Do?

    Builders find that the information is best to be shared through online channels rather than verbal or physical communication. Virtual information saves customers’ time and energy. Pre sales support make it easier for the homebuyers to make right decision regarding property purchase. They make use of the digital media such as property portals, Google, e-papers, ad campaigns, websites and so on for the promotion of their project and generating the leads simultaneously.

    Utmost use of social channels like Facebook, Instagram, Twitter, LinkedIn etc. to increase social outreach and reach potential homebuyers is being done. Appropriate for all types of marketing, Facebook claims that the services so provided by the platform is extensive and that they deliver right message to the target audiences, at right time – referred as personalization at scale. Facebook spokesperson suggests that Facebook holds solution for each aspect in marketing – to sell or to generate awareness among public.

    What Else?

    The Mobile Apps. Real estate developers are leaving no stone unturned to reach their customers and grow their sells. Apart from getting connected through social channels and various other digital marketing platforms, mobiles apps is also their hard-and-fast tool. This facilitates easy communication along with hassle-free transactions.

    The Results

    Much renowned real estate company – Tata Housing Development Company was among the first companies in real estate which adapted the digital marketing strategy in 2009 and had made use of mobile app for the promotion and sell of its much appreciated projects – Arabella in Gurgaon and The Promont in Bangalore.

    According to the Tata Housing statement, the results achieved by them was phenomenal and it encouraged them to conduct 25 per cent of the sales through digital platform at the cost merely 10 per cent of the cost through traditional medium. Digital marketing, thus, is not merely profit driving technique but motivating platform as well. Innovative social media campaigns along with other digital marketing techniques create experience for the potential consumers.

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    Top Reasons Why Indian Real Estate Excites Young NRIs For Investment

    By
    Team iPropUnited
    -

    Young NRIs and Indian Real Estate

    With the boom in the real estate industry, it does not only allure domestic investors but the India real estate sector has excited young NRIs too for the investment. This segment has become quite favourable for NRIs to invest in real estate in India. With the government’s investment-friendly policies, young NRIs have become more optimistic for properties as a source of investment.

    Favourable Policies
    To secure maximum foreign investments, government has initiated many investment-friendly policies like treating non-repatriable investments from NRIs as domestic investment, lowering minimum build-up area requirement to 20,000 sq. ft from 50,000 sq. ft for FDI etc. These surely give a boost to NRIs to invest in real estate in India and revive the Indian economy by inflow of more and more investments from young NRIs.

    Affordable Pricing
    With the difference in the currency values, investment in Indian real estate is affordable with a view that NRIs tend to pay less due to their higher currency value against rupee. Even builders now-a-days are focusing on young NRIs-centric projects that comply with the norms for young NRIs investment in Indian real estate. Thus, these factors, altogether, make real sector lucrative option as investment in India.

    Steady Source of Income
    NRIs tend to invest in Indian property with an aim of securing regular rental income. A country like India, where more and more people are heading towards metropolitan in search of better job prospects leads to inflate the demand for rented property. In such a scenario, investing in real estate assures quick-bucks as rental income.

    Rooted to the Country
    One of the primary reasons why young NRIs prefer to invest in Indian property is to remain attached with the land of their ancestors. No doubt, higher wage rates and better growth aspects tempt NRIs to settle abroad for long run but owning a home in India is always an aspect of importance for them. According to a recent survey by Sumansa Exhibitions “young NRIs, aged between 18 and 35, in UAE account for 43% of investments in Indian real estate segment.”

    Promising Prospects of Real Estate in India
    According to reports, Indian real estate sector is expected to witness a phenomenal growth and estimated to reach up to $180 billion by 2020.  Young NRIs are looking on property in India with the perspective of long-term asset investment and finds it a money-spinning option of investment.

    With the real estate sector observing tremendous growth, young NRIs pumping in money paves a way to marvellous growth in India’s infrastructure.

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