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A House or an apartment: What to buy?

What would be a better buy: a house an apartment? It is a question every residential property buyer grapples with during the home search process. You need to consider a few things to find an answer to this question.

house or apartment

Your family requirements

If you have a nuclear family then an apartment is a better choice, because the family size may not change much over time. Moreover, children and elderly have more people to interact in an apartment building.

what to buy : house or an apartment

A house is a better option if you have a large family. The family size will increase over time and a house would provide you with the option for further construction.

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Your daily schedule

what to buy apartment or a house

Another point to consider is your daily schedule. If you have a busy work schedule and long working hours then an apartment would be a better choice. More so if your spouse also has a similarly busy schedule. Apartments don’t require much personal attention and most of the maintenance aspects are taken care of by the builder or the Residents Welfare Association (RWA).

If you or your spouse has some time to spare in your daily schedule then a house is the better option. A house requires personal attention. You can address issues like building repairs, plumbing, security, local property tax payments, and other such matters.

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Amenities

mahagun mywoods ready to move apartments

Apartment complexes typically have more amenities like swimming pool, club, jacuzzi, gymnasium, jogging tracks. If you are a socially active person but don’t have the time to visit faraway society club or a gymnasium,  then an apartment would be right for you.

A house, on the other hand, is more suitable for you if you like to spend more time with your family than those outside. A house is better if you are fond of organizing social gatherings as it has more space.

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Financing the purchase

what to buy : a house or an apartment

Another important aspect to consider is how are you going to finance the purchase of property? If you are going to pay from your own finances then it is not a factor except the cash component of the deal. But if you are going to finance it with a home loan then it is usually easier to get a loan for an apartment than a house.

Most banks have a list of pre-approved apartment complexes and getting a home loan for buying an apartment in these projects is easy provided you meet the basic conditions. I have written an article on home loan eligibility that you can read if you wish to know more about it. You can also use the EMI calculator to find your expected EMI.

Banks are more scrutinizing when looking at a house loan. They survey the property and the whole process takes longer due to each house being different. Higher scrutiny often means slimmer chances of home loan approval.

Conclusion

What to buy: A house or an apartment? The answer to this question is based on your family requirement, your daily schedule, amenities that you want and last but not the least how you are going to finance the purchase.

You can share this article with your friends and family through social media sharing buttons below. If you have any questions or would like to comment then you are most welcome.

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5 Best property sites: 99acres, magicbricks, housing, makaan and commonfloor

The top 5 property listing websites in India

Apart from 99acres and magicbricks, what are the other top property websites in India? This is a question that most of us ask when we want to sell buy or rent property.

99acres magicbricks housing image

Property websites are useful for doing the initial research when buying, selling or renting any type of property. For the buyers, most sites offer advanced search options with which they can come up with a shortlist of projects that can be visited and finalized.

Sellers have the advantage of listing their property and have it seen by an exponentially large number of prospective buyers thus enabling the seller to get a good deal.

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In this write up I will introduce the best real estate sites in India like 99Acres, Magicbricks, Housing, Makaan, and Commonfloor.

99Acres

99acres

99acres.com is owned by Info Edge India Pvt Ltd. It is an online classifieds company which also has similar online portals in matrimony, recruitment, and education. 99Acres has an Alexa ranking of 3,670 and went online on 8/1/2005. 99Acres also has a mobile app besides the web portal which can be used by you for your property search.

Magicbricks

magicbricks

magicbricks.com is a part of Times Internet Limited which is a subsidiary of Bennett, Coleman & Co. Ltd. The Times group is in the publishing business and owns the Times of India newspaper brand. Magicbricks was founded in 2006 and has an Alexa ranking of 4,920.

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Housing

housing

housing.com is a real estate company that was started by 12 IIT students in June 2012. It was launched nationwide as a brand in March 2015, with the tagline ‘Look Up’. Its founder CEO Rahul Yadav later sold the company to Sequoia India. It provides a variety of search options to help you zero in on the best-suited property for the buyer. The Alexa rank for housing.com is 13,400.

Makaan

makaan

makaan.com is owned by proptiger.com which is an online real estate advisory firm. Proptiger is now owned by Elara Technologies Pvt Limited, a Singapore based firm. Makaan has an Alexa rank of 16,600.

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Commonfloor

commonfloor

commonfloor.com was founded by 3 IIT Roorkee graduates in the year 2007 and is a real estate portal. Its unique apartment management system links neighbors with each other and is used many residents to stay in touch. Its Alexa rank is 19,000.

So these are the top 5 property listing websites. You can share this article with the social media links given below. To read more property related articles click here.

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PropertyHome

5 Best property sites: 99acres, magicbricks, housing, makaan and commonfloor 1

propertyhome.in target=”_blank” was founded in 2016 by a team of experienced real estate professionals. It is a property portal that has fresh as well as resale properties listed. It is a Noida based real estate brokerage firm and has access to the latest and the best deals in the property market. Here you can find the property that’s right for you.

Mahagun Mywoods ready to move apartments

 

mahagun mywoods ready to move apartments

Mahagun Mywoods ready to move apartments can be described as a ‘Home in the Woods, yet in the city’. It is a perfect description of Mahagun Mywoods spread across an area of about 35 acres involving the development of around 6000 residential units.

To access the brochure click here.

It is designed by the renowned Hafeez contractor and conforms to the pre-certified gold standards of IGBC. Extending to three phases of development, it is a township replete with self-sufficient infrastructure including an array of amenities.

mahagun mywoods ready to move apartments for resale

The features of the project include commercial space – Mywoods Mart – for meeting the daily requirements of residents. School, Nursing Home, 3 clubhouses are exclusive to the three phases of development.

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These ready to move apartments are complimented with a swimming pool for kids and adults gym, spa and multipurpose hall. The outdoor recreational options include a unique woodland plantation, adventure parks in the woods,  orchard, nature track, meditation areas and adventure trails/parks.

mahagun mywoods ready to move apartments

Besides these, Mahagun Mywoods also boasts of reflexology parks and senior citizens sit-outs. Sports options in the project include the tennis court, basketball court, skating rink, box cricket and lots more. Open garden encompasses jogging track, cycling track and also amphitheater and a sprawling area surrounded by lush greens.

Mahagun Mywoods ready to move apartments prove to be one of the most desirable residences of the area.

Woodland Plantation

Located in the heart of landscape greens, the unique woodland plantation here offers an adventure park in the woods and an orchid, meditation area, nature track, adventure trails along with a podium concept.

With jogging tracks of approximately 1.75 km that transform into a sanctuary of solitude away from the hustle and bustle of everyday life.

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School

As a group, Mahagun has also ventured into the education sector. Within the premises of Mywoods, Mahagun has a school which will fulfill the educational needs of your child. The school will offer all amenities that an ideal school should have.

Nursing Home

Mahagun takes care of you and wants you to lead a healthy life. To ensure the same, Mahagun Mywoods has a Nursing Home which will take care of all your health needs. For any emergency, the nursing home is available 24 x 7, replete with modern medicines and technology.

Outdoor amenities

It includes Central green area of approximately 5.5 acres, amphitheater, kids park, cycling track, skating rink, reflexology paths, open lawn, mist plaza, tennis court,  basketball court, box cricket, badminton court, and volleyball court.

To access the brochure click here.

Call us now for more details at 9899011510

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EMI Calculator for Home Loan

EMI calculator is used in calculating the equated monthly installment figures for a loan. EMI is the monthly installment that you have to pay to the bank or any other financing institution as repayment for your loan.

The loan could be for financing a home, car, two-wheeler or a home appliance like a washing machine, refrigerator, microwave etc. It has two components, the principal amount and the interest.

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Online EMI Calculator for Home Loan

How to use EMI Calculator for Home Loan

To use the EMI calculator for a home loan, you should have four figures with you. They are Cost of property, Percentage of the amount you want finance for, interest rate and tenure (years).

The Cost of the property is the Actual Cost of your property. Percentage of Cost of the property is the amount that the bank is going to finance. It is usually a maximum of 80%. The rate at which the finance provider is providing the loan is the interest rate. You can get the interest rate directly from a financing institution or get it from the provider’s website.

If you have these figures ready then just feed it into the EMI calculator above and voila, you have your monthly installment figure.

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Terms Defined

The Monthly Installment is your monthly payment that is due to the bank.

Interest Amount is the total interest component of the loan payable on the principal amount.

emi calculator

Types of EMI

Flat Rate Method – In this method, the principal amount remains the same for the tenure of the loan. For example if you take a loan of Rs 10,00,000 for a tenure of 10 years at a rate of 8.5%, the EMI would be 15,415 calculated as (10,00,000+(10,00,000 x 10 x 0.085))/10×12).

Reducing Balance Method – In the reducing balance method the principal amount reduces with each EMI. So the EMI for similar loan would be Rs 12,399 calculated  as ((10,00,000 x (0.035)) x (1 + (0.035 / 12))120;) / (12 x (1 + (0.035/12))120; – 1).

The second method reduces the borrowing cost for you and it is also the method that is commonly used by most financial institutions. The EMI calculator given above uses the reducing balance method.

Read this write up on getting a loan to know about the eligibility and other requirements.

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Under construction vs ready to move apartment

With a plethora of options available in the real estate market, the question that all buyers face is whether to buy an under construction or a ready to move apartment.

under construction vs ready to move apartments

Your present accommodation

under constructio vs ready to move apartment

If you are living in rented premises then rent expense is something you need to consider. Buying a ready to move apartment would save you this cost.

If you finance the property through a home loan, as most individuals do, then Equated Monthly Installment(EMI) would replace the rent expense.

However, buying an under construction apartment would mean that you would have to bear monthly rent and EMI expense too which may upset your budget significantly.

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Specific needs of family members

under construction vs ready to move apartments

For families with elderly people, lower floor apartment is often a priority as it is then possible for them to use the stairs. Higher floors are difficult for them to climb.

However, lower floor availability in a ready to move property is rare as most of the project is sold out by the time it reaches the ready to move stage.

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Your Budget

under construction vs ready to move apartment

Under construction, apartments are cheaper by about 20-40% compared to a similar ready to move property. As the project progresses, rates increase in stages. Apart from the lower price tag, builders also offer a variety of payment plans.

It is possible to get a bigger or a better located under construction apartment in the same budget. Ready to move apartments are costlier. The higher cost may, however, be compensated by the savings in rent.

Choices available

Under construction projects offer a variety of choices. The choice is available in floor, size, facing (pool, club, park, road) or entry direction for the vastu conscious. The chances of finding your dream home are higher in an under construction property rather than a ready to move one.

Ready to move projects have lesser options available, as there is not much inventory available for sale by the time a project reaches the ready to move stage.

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Possession time

Ready to move apartments have zero to one month possession time. So what you see is what you get. Buying a ready to move property is less risky.

There have been instances where Under construction projects have delayed possession resulting in an increased burden on the buyer. But with the advent of RERA law, the real estate sector has been streamlined to a large extent.

As per RERA regulation, the builder is legally bound to pay a penalty of up to 10% of the invested amount in case the possession is delayed.  Also, the payment received by the builder now goes to an escrow account and 70% is locked in and can only be utilized for the construction of the project for which it has been collected.

Conclusion

The decision to whether buy an under construction or a ready to move apartment depends on your family requirements, budget, your choice of apartment and also when you want possession of the property.

If you are buying an apartment for investment purposes read this. You can share it with the social media buttons given below.

Renting vs buying a home

With home financing becoming a viable option for most salaried and business persons, we are faced with the dilemma of renting vs buying a home. To find an answer, you need to ask yourself a few questions first.

Whether to buy or to rent a residential property

Does your profession involve a frequent change of location?

Renting vs buying a residential property

For individuals who have to regularly change their location due to occupational requirements, renting a home is a good idea. Renting a home involves little paperwork and also does not require a long-term commitment on your behalf.

Moreover, if you are in the initial stage of a career it may involve changes in the company, city or job profile. In such scenarios changing your residence is easier with a rented home.

Are you in the mid-stage of your career? If yes, then you should consider buying a home. At this stage individuals usually have family obligations and settling down in one location is advantageous.

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Are you single or married?

Renting vs buying a home 2

If you are single then your space requirements are less than compared to a family. Most residential properties are built for small to large families. Therefore it becomes difficult to find a suitable property to buy for an individual. It is easier to rent a portion of the home. Not to mention, it turns out to be cheaper too.

Having a family brings with it certain obligations. Children’s education is a high priority for all parents. To provide standard and un-disrupted education, settling down at one place for the family becomes important. In such a scenario buying a home in a location having reputed schools and colleges is definitely advisable.

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Are you adjusting type or the independent type?

Your nature also determines which option is best for you. Individuals with an easy going and adjusting nature often find it easier to get along with a property owner’s sometimes finicky demands. In India, the average annual rental return on property is 2% of its value whereas interest on a home loan is 8.5%. So the money you save can be utilized in other forms of investment or on lifestyle.

If you are the independent, no interference type of person then purchasing a home may be a better option for you. Property is a long-term investment that would also provide you value appreciation over a period of time. Also owning a property is considered a status symbol in most societies and a source of pride for the owner. There is an article on investing in property that you can read if you wish to know more about this topic.

Conclusion

So the decision to whether buy or rent property should be based on your career stage, parental status and last but not the least, your nature. If you like this article you can share it with your friends through the social media buttons given below.

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Home loan eligibility

If you are thinking of buying a residential property, then one of the questions that are probably foremost on your mind is how to go about arranging the capital required. Most buyers today prefer to get a home loan to finance their property purchase.

getting a home loan
Getting a home loan

What is the eligibility for getting a home loan?

Home loans are offered by most banks and NBFCs as they are considered a relatively secure asset by them. However, there is still the eligibility criterion to meet for you to be able to get that loan.

Capital available with you

To finance your property acquisition, banks expect you to fund 20% of the cost of property through your own funds. The remaining 80% is provided by the bank. This proportion can also change as per individual profile. So the first requirement is funding capacity on your behalf.

getting a home loan

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Your Credit Score

Banks determine the risk involved in a home loan case on the basis of applicants credit score. As you must be aware, your credit score is linked to your PAN number and is accessible to financial institutions for risk assessment.

Applicants with high credit score are eligible for a lower interest rate and lesser capital share of the home loan. The capital requirement could be reduced from 20% to 10 % in some cases.

Other factors like age, past payment history and years left for retirement are also considered.

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Your Monthly Income

Along with identity documents and PAN number you would be asked for your bank statement and/or IT returns if you are a business person. Your monthly income determines the amount of home loan you would be eligible for.

The maximum amount the Equated Monthly Installments (EMI) can go up to is 50% of your monthly income. This 50% is considered surplus income and EMI and loan amount eligibility calculated on its basis. For example, if your monthly income is Rs 1,00,000/month then your EMI can be a maximum of Rs 50,000/month.

However, in case of an ongoing loan i.e car loan, personal loan your monthly income minus that loan’s EMI is considered as the available monthly income. So 50% of the available monthly income is the maximum EMI limit.

Home loan eligibility 3

Type of Property for which home loan is required

Home loans are available typically for apartments, flats, and villas constructed as part of authority approved projects. Purchase of plots and freehold land are usually not financed by banks. An exception in this would be a house constructed on authority approved society plot which is eligible for financing. Some examples of authority approved projects are given here.

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Conclusion

Getting a home loan is one of the most preferred ways of financing a property purchase. Share this article with your friends through the social media links given at the end of this article. You can use this free tool to calculate your EMI here.

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Investing in Property

Investing in property is something that we all want to do. This article explains why a property is a preferred investment option.

Investing in property
Investing in property

Why invest?

Well, the reason most people invest their money is to increase the value of their savings and safeguard them from inflation. As time passes by inflation gradually erodes the value of money. For example, one could buy a car for Rs 5000 in 1965 but today it cost a Rs 4,00,000 to buy a similar car.

That’s a price increase of 80 times! There are a lot of investment options available for an individual. Real Estate, gold, precious stones, stocks and deposits in the bank are some of them.

Investing in Property

Let us compare gold and property as investment options since gold, stocks, fixed deposits have similar traits while a property is a different type of investment. Gold can be bought in small quantity. Property requires a larger investment. Gold can be liquidated fast. Selling off property requires some time.

Property gives regular returns in form of rent, lease while also appreciating in value. However, in the case of gold, value appreciation can be realized only on liquidation.

Buying gold is a low involvement decision and does not require much research while buying property is a high-involvement decision requiring research. This research could be carried out by the investor personally or by using the services of a real estate expert.

Investing in property makes the investor eligible for structured tax benefits while selling gold attracts capital gains tax. Investing in property is also a booster for the country’s economy as it involves developing land for better use. Gold investment is essentially a hedge(inflation safeguard) and has no such benefits for country’s economy.

Which type of Property to invest in?

Types of Property

Commercial Property

commercial property
Commercial Property

The type of property which is directly related to business activity is known as commercial property. Retail, wholesale shops, office space, and buildings are some examples of commercial property.

Investing in commercial property generally gives higher returns on investment as compared to other property types. An example of a commercial project is this.

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Residential Property

buy flat in noida extension
Residential Property

As the name suggests, residential property is that property which is used as housing and shelter. Investing in residential property provides steady returns over time in form of rent or savings when it is used personally for housing apart from value appreciation. Here is a good residential project for mid to long-term investment.

Agricultural Property

agricutural property
Agricultural Property

Land used for farming and related activity comes under the agricultural property. Agricultural property provides a steady income through rent, lease and farming income. It also has huge tax benefits as agricultural income is exempt from tax.

There is also good scope for value appreciation. In areas notified under city master plan agricultural land gets acquired by the authority at up to four times the prevailing market rates.

Industrial Property

industrial property
Industrial Property

Property used for industrial activities comes under this head. Industrial shed, godown, factories are examples of such properties. Environmental clearances, pollution control, and such aspects are unique to this type of property. Returns are directly related to the industrial growth in the region and can provide you with steady returns over a longer period of time.

Conclusion

So we see that investing in property is usually a mid to long-term investment option that is safe. It is also a source of high returns when compared to other forms of investment. It is advisable for most investors to have at least 70% of investment in immovable assets like property. A maximum of 25% can be held in liquid assets like gold and cash deposits.

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