In my 27 years of real estate consulting, I have seen almost 93% of my clients avail a home loan to fund their home purchase. Since most home purchases are beyond the budget of home buyers, they use home loans to bridge the gap between their funding and the total cost of the home they are buying.
But what if I tell you that many home buyers still opt for home loans even if they have spare funds to buy the dream home. Yes that’s true. In today’s scenario buyers prefer taking a home loan to fund such purchase. And here is my insight into why these clients prefer taking a home loan.
You get your due diligence done –
All the banks get a rigorous due diligence done for any property that’s funded by them. This due diligence process consists of checking the title of the property, vetting of all the legal documents till date, find out if there are any encumbrances or existing mortgage on the said property and if the current owner has a clear and marketable title to the property.
- You get a valuation done –
Ascertaining the true market value of any property is tricky and best left to professional valuers. Your housing finance company gets your property valued for you at no cost to you. Isn’t that wonderful? You have access to the exact value of the property you are buying and you get it for free.
- You have spare money to invest in high pay off investments –
Home loan interest rates are the lowest amongst all category of loans that a bank has to offer. Now imagine this – You have surplus funds of ₹ 3 Crores and instead of using it to fund your new 3 bedroom home at Borivali, you take a home loan of ₹ 3 Crore and buy that swanky new home. And with this surplus of ₹ 3 Crores, you buy an office at Andheri East. This new office will fetch you a rent of at least ₹ 1,25,000/- per month, which helps you pay off part of your home EMI. Cheap home loans help you leverage your money better and create more assets for you. The only downside is you have to be careful with where you invest your hard-earned money.
- You can grow your business with your funds –
Instead of locking up your valuable capital in buying a new home or upgrading to a bigger home, you can take a home loan and use your funds to expand your business or scale up your operations across the country. Your business gives you the highest ROI and it never makes sense to fund home purchases when you have a huge need of capital to grow your company.
- Loan against Property is your emergency fund generator –
Want funds to renovate your home or have an unexpected expense come up? Top up loans in form of loan against property (your home) can surely come to your rescue. Your asset can always get you liquidity in terms of funds, whenever you need it. But don’t get tempted to take a top up loan and indulge in speculative stock market investments. It may seem lucrative, but it’s not allowed as per the lending norms and you run the risk of losing your capital in the volatile markets. So be very prudent in taking loan against property also known as top up loans.
- You get tax breaks –
Yes that’s right. You get income tax rebates on the interest paid on your home loan and also the principal repaid.
Home loans can become your asset instead of a long term liability if you leverage money in a prudent manner and this can create assets for your future as well.
If you plan to sell your home without recruiting the services of a realtor, think again.
You do not want to take such a massive risk while carrying out what is probably the
biggest financial transaction of your lifetime, do you? By sidestepping this critical
enabler, homeowners expose hard-earned money and valuable time to a larger risk,
while frittering away some significant benefits.
Most buyers/sellers who opt for this route, usually want to forgo the commission paid
to the agent but fail to pre-empt the valuable benefits he offers in return. In fact,
surveys have shown that such properties usually sell for a comparatively lower price
than those sold with the assistance of a professional realtor.
Before taking a decision, check out these proven benefits a realtor will bring to the
table if you engage his services to buy or sell a property
1. Availability of Time: Given the tight work schedules, you actually do not
have time to show around the home and play the role of a real estate agent.
How will you manage showing the home while you are out on a business trip
or a vacation? Your friendly, neighborhood realtor is ready to showcase your
property at a short notice and collect the right feedback from prospective
buyers about it too, by asking the right questions (could you do that?). He will
even offer solutions to problems a prospective buyer perceives, especially
those that could come in the way of concluding a deal.
2. Priceless Knowledge: The domain knowledge that a realtor possesses is
truly invaluable and as a layman it is difficult to match up to it. He knows how
to pick holes in the story that the property websites weave around the home
and provide valuable insights to the prospect. He is aware of the history
surrounding the home and is able to turn it into a selling point.
3. Marketing awareness: While selling a property, image is of vital importance
and you rarely get a second chance to create a good impression about your
home. Professional realtors know how to “prepare” a home when a
prospective buyer comes visiting or when property images have to be shared
with an interested party. Marketing your property will need the expertise of a
realtor and you wouldn’t want to miss out on this valuable quality for the sake
4. Experienced negotiator: When you engage a certified realtor and entrust the
task of finding the right buyer for it, you get many bundled-up qualities too. His
expert negotiation skills (due to the endless hours he has spent doing this)
always keeps the buyer interested and he ensures that terms and conditions
always work in your favour.
5. Understands Closure: There are dozens of things to be taken care of, after
the deal is sealed in your favour. With a realtor managing things for you, you
can be assured that last-minute issues and unexpected delays at the
registrar’s office or loan formalities are taken care of. He is qualified enough to
carry out firefighting activities whenever needed and this truly makes a realtor
an indispensable part of a buying/selling process of a home property.
6. Safety: With property portals and online agencies making the buying and
selling easy, it has also attracted a lot of negative attention too. When you put
up your home, its images and other details on the internet, you can expect
unknown buyers wanting to see your home. You wouldn’t know the actual
intentions or background of the so-called “prospect” since there is no agent
who can verify that. Won’t this put your home and family at a risk? And all this
because you do not want to pay a commission to the agent. Think again!
It makes great sense to appoint a certified realtor to help you to sell your property
and avoid a lot of costly mistakes that could come back to haunt you in the future.
Use the professional services of a realtor who not only helps you to protect your
interests but will also justify your home’s value that is so rightly deserves.
What is Vastu Shastra ?
When literally translated, the term ‘Vastu Shastra’ means the Science of Architecture and is an ancient Hindu system of architecture.
This science is a combination of Hindu and Buddhist beliefs.
Vastu Shashtra has integrated architecture with nature to formulate unique rules to be followed during the construction of a house.
A large number of home and commercial property buyers consider Vaastu Shastra while taking a decision.
This has driven property developers and builders to build Vaastu-compliant homes.
This science is often treated as an irrational belief. But being based on the principles of the five elements of nature, it does deserve a second thought, especially when such a large investment is at stake.
Let us understand a few basic but practical Vaastu tips you can easily follow while buying a property
- The Entrance to your home:
While buying an apartment, it is the entrance to the entire property or the main gate that shall be taken into consideration. As per Vastu, the North or North-East entrances are generally recommended as opposed to the South or West. The sun rays from the north or north-east are beneficial to the residents of the home, thus this precaution.
- The Ventilation and sunlight:
As a regular buyer, you would definitely consider these aspects as they are integral to a homeowner’s well-being. Vaastu too lays great emphasis on homes being airy, well-lit and should receive an ample amount of sunlight. Any home that has a claustrophobic atmosphere is bound to breed germs and bacteria, which sunlight can kill and stop its growth.
- The Kitchen:
As per Vastu, the south-east end (Agneya- a direction governed by fire) of your home is the most ideal place for the kitchen. The kitchen platform should face the east (the sun rises in the east and the stove/cooking gas should face it). Ensure that your main door does not face the kitchen as it brings negative energy into the kitchen directly.
- Water Tanks:
While building a home, Vastu recommends your water tank is placed in the north-east direction as the morning ultra-violet rich rays can reach it easily.
- Kid’s Room:
To avoid harmful rays of the sun from entering a child’s room, having the room in the North-east or north-west direction is recommended.
- Toilets and Bath Areas:
South-west or the southern-most end of the apartment is ideal for wash areas. One line of thinking says this is done so that winds that generally flow from south-west do not contaminate the rest of the home. It makes sense to keep the puja room away from the toilet area, whether you are a believer in Vaastu or not.
- Master Bedroom:
The master bedroom should be ideally located in the South-west corner, especially when you have selected and east facing home. The winds flowing from the kitchen carry their aroma and this along with its sounds, could be a hindrance while trying to sleep.
It is recommended to use these Vastu tips in a practical and sensible manner. Always consult a certified Vastu expert. Do not follow any suggestions blindly.
Make sure you have checked all the parameters before implementing the Vastu tips in your home.
One cannot simply expect Vastu tips to work out of thin air.
It needs support from the members of the home in every possible way.
The benefits will be surely visible when these tips are followed up with the basics of cleanliness and hygiene.