In my opinion, Subvention Schemes are the last lifeline for real estate sector. Currently, the sector is going through a rough patch. In a last ditch effort, builders are rolling out offers under Subvention Schemes to attract buyers. As an unwritten understanding among builder community, a direct discount on the rate card cannot be offered. Moreover, declining sales and ever growing debt burden are forcing builders to offer innovative marketing schemes. These offers can be labeled as Subvention Schemes as most of these offer indirect discounts. In my post, 7 Risks Associated with Subvention ... Read More
What is the ideal Home Loan Tenure?
Home Loan Tenure is one of the most crucial decision making factor during Home Loan Process. Home Loan Tenure has a direct impact on your cost of borrowing. In turn, the cost of borrowing increases your overall cost of the property. I receive many queries on what should be the ideal Home Loan Tenure?. There is no standard answer to this query. As a borrower, you need to arrive at the optimal value which should be a fine/comfortable balance between your current financial condition and your Home Loan requirement. The home loan providers i.e. banks/HFC's push for longer home loan tenure as it is ... Read More
10 Benefits of Staying on Rent
10 Benefits of Staying on Rent, an offbeat post for website on Home Loan and Real Estate. Today morning i decided to write something different. I always try to share neutral perspective i.e. both sides of story for the benefit of readers. You might have come across many people who prefer staying on rent because of unaffordable & increasing property rates. I highlighted this in my post, Endless Wait for Property Prices to Fall. In Indian society, staying on rent is a social stigma. It is linked to financial instability. On internet, you will find lot of financial data whether you should ... Read More
5 Tips to Prepay Home Loan Faster
For any Home Loan Borrower, to prepay Home Loan is topmost priority. As i discussed in my earlier posts that Home Loan interest increase the overall cost of property. Some of my readers mentioned that they are availing tax deduction but they ignored the fact that they lost HRA (House Rent Allowance) component. At macro level, if your property is appreciating at 10% and at the same time you are paying 10% interest on Home Loan then net/real appreciation is NIL. Currently world economic crisis is keeping property prices under check. Instead of appreciation, property rates are decreasing in most ... Read More
Home Loan Prepayment – 5 Important Points
Home Loan Prepayment is financially beneficial for Home Loan Borrowers. It helps to reduce Interest burden thus overall cost of property. Any type of debt including Home Loan is not good for financial health of an individual. Average Home Loan tenure in India is 8 years which means Home Loan Prepayment is preferred by borrowers to clear off Home Loan. Normally Home Loan Prepayment is done when we receive annual bonus or any exiting investment mature. As i mentioned in my other posts also that Home Loan Interest increase the overall cost of property. Assuming, your current Home Loan ROI is 10% ... Read More
How Home Loan Eligibility is Fixed ?
One of the key concern of a Home Loan Borrower is Home Loan Eligibility. In one of my previous post on 6 Steps of Home Loan Process i highlighted 6 critical factors which impact Home Loan Eligibility. Many readers requested me to write a seperate post on Home Loan Eligibility. Let me admit that there is no scientific method to fix Home Loan Eligibility. If an Individual A apply for a Home Loan with 3 different banks, All 3 banks will fix different Home Loan Eligibility. The deviation is normally 5%-10% from mean. Private Banks and HFC's are more liberal whereas PSU banks are strict. Home Loan ... Read More