Home Loan Co-Applicant, Co-Borrower and Co-Owner are some of the common terms which you come across during property purchase. Most of the people take it very lightly but it can have severe legal implications in future. Broadly speaking home loan co-applicant or co-borrower is one and same thing i.e. a person who shares the equal responsibility towards the repayment of the Home Loan. Such type of Home Loans are called Joint Home Loan. Co-Owner is the person who has share in the property i.e. rights in the property. A co-owner of property can be co-applicant in Home Loan. It is not necessary ... Read More
How Real Estate Sector is Highly Profitable?
Real Estate Sector is in bad Shape or Real Estate Sector is under huge debt. You might come across these news paper headlines on regular basis. You must be feeling very pity for people in Real Estate Sector. I do agree that Real Estate agents or Real Estate brokers are struggling to survive but story is completely different on other side. Yes, i am talking about Promoters, Builders or Investors of Real Estate Projects. Recently i met senior executive of very reputed builder in Mumbai. Privately he admitted that Profit margins of any project is between 15% to 20%. Surprisingly the margins of ... Read More
Property Negotiations – Avoid These 5 Mistakes
Property Negotiation is an ART and is normally misunderstood as only price negotiation. Reason being, any property purchase decision mostly revolve around "Value of the Property". Property purchase is overall deal which require negotiations on Legal, Compliance's, Property Maintenance, Amenities, Taxation, Payment Terms and of-course most important among all is "Price of the Property". In my earlier post on How to Negotiate Property Deals, i discussed mainly price negotiations. This post is focused on Property Negotiations. Let's take example of one of my client Mr. Sathish from Hyderabad. He ... Read More
Home Furnishing – A Waste of Money?
Home Furnishing is one of the critical and final step to realize the dream of owning a home. Home Furnishing is aspirational in nature and there is no end to the amount being spent on the same. Marketers sell it as a dream package to convert your home to a premium property. It is highly profitable business as people don't bargain in this. Only condition is that the perceived value should be high. I have seen my clients bargaining hard for property deal for months but don't mind over spending savings from bargain on Home Furnishing. Common discussion while finalizing a property is around Home ... Read More
Encumbrance Certificate
Encumbrance certificate or most popularly known as EC is one of the most critical document for property purchase. In my post on Checklist of Property Documents i briefly discussed about EC but considering the importance of same, it deserves a separate post. Encumbrance Certificate certify that there are no dues on property both Mortgage and Legal & the title of the property is clear and marketable. It contain all the transactions in respect of the said property. Encumbrance is basically a Charge / Liability / Lien which is created on the property, which is held as a collateral or security ... Read More
Should i apply for Pre-Approved Home Loan?
In my opinion, Pre-Approved Home Loan is one of the least risky way of buying a property through Home Loan by a buyer. Obviously it require intelligent planning and execution. Later in the post, I will explain how Pre-Approved Home Loan mitigate certain risks. Every product has its own advantages and disadvantages therefore before making any decision it is advisable to understand the product in detail. I receive lot of queries from my clients on Pre-Approved Home Loan therefore i decided to write a separate post on this subject. In my previous posts, i explained Pre-Approved Home Loan product ... Read More