Real Estate Scenario in Nashik

Real Estate Scenario in Nashik

The skyrocketing prices and demands of real estate in Mumbai and Pune have led investors on the lookout for affordable and higher return destinations to invest in. One of the pocket-friendly destinations worthy of investment is Nashik. The emerging Wine Capital of India is proving as a worthy opponent to many metro cities. Here’s what has led to the rapid demand for this city.

In the past decade, Nashik’s residential market has boomed. With better infrastructure, connectivity, and government projects, Nashik has transformed into an attractive real estate destination.

The expansion of the IT sector and increasing industrialization has given way to many employment opportunities in the city. Along with the newly developed airport, many other government projects are in the pipeline. Due to this rapid infrastructural growth, Nashik is recognized as one of the fastest developing cities in India.

The geo-strategic location of the city is what earns it brownie points as the real deal in investment. Located in western Maharashtra, Nashik is surrounded by Mumbai and Pune making it a triangular corridor. While enjoying the up-gradation of the Mumbai-Nashik highway, and the airport, Nashik has become the hub for many migrants. However, this has not diluted the beauty and peace that prevails in the city. Pleasant climate, green pastures, and scenic beauty pretty much add to the charm of the city and secure the status of an upmarket locality. Endowed with a good quality of life, the city is now the destination for most millennial couples looking to invest in a pandemic friendly home-office.

While having some of the best infrastructural developments made by the government, certain localities add to the charm of the city making them viable for investment. Topping this list is Gangapur Road, with its well-connected roads and popular amenities in the locality. An iconic project in this area is Ashar Grapecity offering 4 BHK luxurious apartments. The project is equipped with state-of-the-art amenities such as a temperature-controlled swimming pool, fully equipped gym, and clubhouse, senior citizen zone topped with marvelous architecture, and unobstructed hill view perfect for leisure. The podium-style layout of the project ensures an elevated lifestyle in one of the most iconic areas in Nashik.

A steady increase in demand for property and the need for a second home have elevated the real estate status of Nashik. A clean and green environment, cultural and historical significance, road connectivity, pleasant climate, and many such factors make Nashik the ideal destination for investors.

So whether it is your first home or a second home for investment, Nashik should be on top of your list. Explore 4 BHK luxurious homes in the most prominent locality of Nashik at Ashar Grapecity.

Trends in Real Estate

Modern Times = Modern Homes

How pandemic has changed the face of the real estate market

The ongoing pandemic has transformed the way real estate is viewed. The once widely-popular corporate spaces now sit empty, while the need for residential spaces have shot up. The reason is enterprises making work-from-home a new way of working. This has pushed the demand for spacious nuclear homes in urban areas with all of your essential amenities, making moving in easy for a working couple.

Embracing and adapting to this change, the real estate world is transforming in many ways:

  1. Small homes, with big hearts

Small homes that are easy to maintain have cropped up in large numbers across cities, and are affordable too. This is due to the rise in the demand for residential properties that made realtors create a new market for small, affordable spaces. The furniture industry also jumped on the bandwagon by creating compact, multi-purpose furniture pieces.

  1. Easy living with smart, equipped homes

Moving into furnished homes, equipped with essentials such as air conditioners, refrigerators & kitchenettes, etc. is essential for today’s homebuyers. This is complemented with smart homes where everything including air conditioners, dishwashers, lights, fans are voice-controlled at the push of a button even when one is away from home.

  1. Fuss-free furniture

Gone are those times where one would move into homes months after purchasing. For today’s fast-moving generation, everything is now or never. This has given rise to a new segment of ready-made, build-it-yourself furniture that is affordable and can be easily modified and installed, without assistance.

  1. Accommodating a millennial lifestyle

The technology-led millennial generation comprises the largest population. They have a heavy disposable income and are today’s homebuyers. Additionally, today’s generation is eco-conscious, hence they look for sustainable homes.

To grow & stay relevant, the realtors and the real estate market should ideally be revolving around the needs of millennials. The key for which is marrying technology, sustainability, and affordability, while being quickly adaptable.

Home loan benefits for women in india

WOMEN IN THE HEART & ON THE NAME PLATE

Benefits of being a Woman Home Buyer in India

More and more women in India are becoming financially independent. They are taking their rightful place as equals in the society, participating & making important decisions such as buying their own house.

As per the latest consumer survey by ANAROCK-LIC Housing Finance, 77% of women home seekers are looking to buy property for end-use, while the rest are looking at the same as an investment.

To make house purchases more profitable for women while fulfilling its larger goal of ‘Housing for All’ the Indian government offers several monetary benefits that women home buyers in India can avail of, if the property is registered in their name.

1. Stamp duty

The stamp duty on homes registered in the name of women is about 1%-2% lower as compared to men in most Indian states. E.g., if a woman purchases a property worth Rs. 50 Lakhs, she saves around Rs. 50,000 – 1, 00,000 on stamp duty, all the credit for this goes to the lower stamp duty scheme for women.

The stamp duty that in India for when a man pays v/s when a woman pays

State The stamp duty rate for men The stamp duty rate for women
Jharkhand 7% Re 1
Delhi 6% 4%
Haryana 6% in rural, 8% in urban 4% in rural, 6% in urban
Uttar Pradesh 7% Rebate of Rs 10,000 on overall charges
Rajasthan 5% 4%
Punjab 6% 4%
Maharashtra 6% 6%
Tamil Nadu 7% 7%
West Bengal 5% in rural, 6% in urban, (Plus 1%, if the property cost is more than Rs 40 Lakhs) Same
Karnataka 5.6% 5.6%
Note: Charges are indicative and subject to change.

2. Home Loan Benefits for Women

Did you know? 

Women are the favoured applicants for a home loan. They are known for having a better track record. Lenders find them more reliable, hence a woman’s chances of being approved for a home loan are higher.

Financial lending institutions are encouraging home buying behaviour amongst women by offering specialised schemes and lower interest rates.

Even a minimum subsidy of 0.05% to 1% on home loan rates significantly impacts EMI. It adds up to a considerable amount in lowering down the EMI, thus making repayment stress free for women.

Here’s how much a women applicant can save on a home loan at a lower rate of interest as compared to others:

Particulars Women Borrower Other Borrower
Loan Amount 50 Lakh 50 Lakh
Rate 8.30% 8.35%
Rate Difference 0.05%
Tenure 20 years 20 years
Monthly instalment 42,760 42,918
Total Principal Amount 50,00,000 50,00,000
Total Interest Amount 52,62,482 53,00,234
Total Amount Payable 1,02,62,482 1,03,00,234
Amount saved 37,752

2.   A. Women can choose longer tenure

Women can easily avail a home loan maximum of up to 30 years. With no charges levied on prepayment, women can lower their EMIs and save for other financial goals that they have planned for.

2.   B. Women can benefit as co-borrowers

Women can apply as co-borrowers with their spouses. Their combined income can offer them higher loan eligibility. Furthermore, as co-borrowers, they can claim tax benefits of Rs 1.5 lakh on the principal amount under Section 80C and Rs 2 lakh on the interest repayment. By availing of a joint home loan, a couple can claim the benefit which is a combined deduction of Rs 3 lakh on the principal amount and Rs 4 lakh on the interest component.

To understand more you can refer to the illustration below:

ParticularsHome loan tax benefits for IndividualsHome loan tax benefit for Couples*
Principal under Sec 80 CRs. 1,50,000Rs. 3,00,000
Interest under Section 24Rs. 2,00,000Rs. 4,00,000
Total DeductibleRs. 3,50,000Rs. 7,00,000

However, the couple should ensure that the sale deed/conveyance deed has the names of both the applicants as the owner of the property and women to be the main applicant.

2.   C. Women can avail higher loan amounts

Many lenders are increasing their sanctions to attract women borrowers. Benefiting from this, women can avail higher loan amounts from anywhere between Rs. 30 Lakhs to 3.5 Crore. This complemented with simple eligibility criteria, it’s a big ‘YES’ to be a woman home buyer in India.

3. Tax Deduction Benefits

Women can also avail tax benefits while taking a home loan. The limit is up to 3.5 lakhs covered under section 80 C for Principal repayment and Section 24 (b) on Interest paid. As per the Income-tax Act 1961, the borrowers can claim a deduction of up to Rs 1.5 lakhs under section 80 C and can claim a deduction of up to Rs 2 lakhs under section 24 (b).

Over & above the deduction of 24 (b), women can claim an additional deduction of Rs 1.5 Lakhs under section 80 EEA. This is only applicable to the loans sanctioned from 1st April 2019 to 31st March 2021.

Section Tax deduction applicable on Limit
80C Principle Paid Up to Rs. 1.5 Lakhs
80C Stamp Duty Rs. 1.5 Lakhs
24(b) Interest Paid Up to Rs. 2 Lakhs

4. Pradhan Mantri Awas Yojana benefits for women

As a step towards equality, and to empower women of all ages, classes, and marital status to apply for housing loans without facing any discrimination, the government has introduced the Pradhan Mantri Awas Yojana (PMAY) Scheme.

Under this scheme, a woman borrowing a home loan under Pradhan Mantri Awas Yojana Credit-Linked Subsidy Scheme (PMAY-CLSS) enjoy concessions on interest. Women borrowers from the economically weaker section (those earning up to Rs 3 lakhs per annum) and low-income group (LIG) category can avail of an interest subsidy of 6.5% (up to Rs 2.67 lakhs) on housing loans of up to Rs 6 lakhs. The subsidy amount is given upfront on the principal outstanding, thus lowering down the interest amount.

The benefits under PMAY-CLSS scheme are categorised on the basic income:

Income Groups Eligible Family Income
Economically Weaker Sections (EWS) Up to Rs. 3 Lakhs
Lower Income Group (LIG) Rs. 3,00,000 to Rs. 6,00,000
Middle Income Group 1 (MIG 1) Rs. 6,00,001 to Rs. 12,00,000
Middle Income Group 2 (MIG 2) Rs. 12,00,001 to Rs. 18,00,000

To avail of the benefits of the PMAY-CLSS scheme, women must meet the below guidelines:

  • At least one woman in the family must be registered as the owner of the new property, irrespective of the fact whether she is buying the property or not
  • Neither the woman, nor her immediate family should own a ‘pucca’ house anywhere in India. (You qualify, even if your parents own a home and you live with them)

Other Benefits under Pradhan Mantri Awas Yojana Scheme:

ParticularsEWSLIGMIG 1MIG 2
Annual IncomeRs 3 LakhRs 3 lakh to Rs 6 lakhRs 6 lakh to Rs 12 lakhRs 12 lakh to Rs 18 lakh
Repayment Tenor (in years)20 years20 years20 years20 years
Subsidy Interest6.5%6.5%4%3%
Loan amount for subsidy qualificationRs. 6 lakhRs. 6 lakhRs. 9 lakhRs. 12 lakh
Max. Property Carpet Area30 square meters60 square meters120 square meters160 square meters

All the above-mentioned benefits add wings to a woman’s dreams of owning a home. They go a long way to empower women both financially and economically.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The transition of real estate – from real to virtual

THE TRANSITION OF REAL ESTATE – FROM REAL TO VIRTUAL

Modern Problems Require Modern Solutions – this statement proves to be true in today’s pandemic struck world where the best of the world comes to you at your doorstep, or rather fingertips, thanks to digitalisation. It is a part of almost every sector – be it work from home, education, e-commerce, banking, retail, tourism, or real estate.

When the pandemic-induced lockdown forced businesses to shut down physically, they began to look for other avenues to reach out to their customers. It was here that digitalisation proved to be a silver lining.

While property portals have been around for more than a decade or so, buyers mostly preferred to visit the property physically, inspect the location, meet the developer/seller and sign the agreement. Property portals & real estate mobile applications were mostly used to narrow down the property search, view property pictures, and contact the developer & seller.

But, this is now a thing of the past. Pandemic introduced the ‘new normal’ – digitalisation. People have now got used to the digital way of life where they can get everything from pin to property in a click. If not completely, at least more than half of the real estate transaction process is conducted digitally. This includes virtual property visits, availing bank loans, online payments, documentation submission, the initial meeting with developers & sellers through video calls etc.

This is the buyers’ side of the story, the dipping real estate sales and the pursuit to recover sales and to remain relevant developers & sellers are placing their bets on digitalisation & modern technology.

So, how is the digital transformation of the real estate industry taking place?

Promotion, eventually leading to sales:

Social media is a powerful tool that can help developers & sellers generating leads and converting them into buyers. Developers & sellers are striking while the iron is hot by strengthening social media presence. Aggressive organic & inorganic marketing on Twitter, Facebook, Instagram & LinkedIn is just one of the ways to bridge the gap between the buyers & them, and increasing their business.

Understanding buyer behaviour:

Developers & sellers are leveraging the power of the digital marketing funnel to zero down on their target audience by understanding their needs better concerning home buying preferences. Digital marketing funnel keeps a track of customers navigating the web pages. Properties are filtered as per the requirement to convert leads into sales.

Additionally, thanks to AI and Big Data, developers & sellers can accurately analyse customer behaviour, distinguish between hot & cold leads, thus saving substantial time, customer service costs, and understand buyer behaviour.

Harnessing the power of technology:

Building Information Modelling (BIM) is transforming how real estate projects are done. A 3D model-based software – BIM facilitates planning, designing, constructing & managing buildings for construction, architecture, and engineering professionals.

Chatbots are a great way for developers & sellers to stay connected with their potential buyers 24×7. Through chatbots, developers & sellers can offer handholding to customers through their entire property-buying journey, thus developing nurturing relationships & fostering sales growth.

Virtual walkthroughs or e-Visits are a thing now. Augmented Reality (AR) and Virtual Reality (VR) are proving to be a magic wand for developers & sellers. AR & VR provide a surreal home buying experience to home buyers. They empower potential buyers to take a tour of property virtually – anytime, anywhere without physically visiting it.

Making the most of this technology, Ashar Group too conducted virtual meetings and e-visits for its potential customers during lockdown which proved to be fruitful.

Seal the deal digitally:

Shifting from conventional paper-based processes to digital documentation has resulted in nearly 10 times faster turnaround time in the overall sales deal. Digital documentation eliminates – long hours to prepare legal documentation of purchase agreement, loan processing and payments and human errors. The expense incurred for the storage of documents was massive for real estate players, digital documentation will reduce that and make it secure. Lastly, digital documentation makes it easy for consumers to purchase property in another city, state, or country.

To summarise, as the saying goes “The only constant in life is change.” Digitisation – apart from being the silver lining in a dark cloud of the COVID-19 pandemic, is here to stay. Whatever the reason be – to enhance transparency, increase sales, ease the selling process, gain an edge, attract new buyers, or stay in touch with loyal customers – developers & sellers should continue to harness the power of digital technology even in the post-pandemic world. While doing so, they should not forget that old is gold, hence interpersonal relations or human intervention cannot be ruled out.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

The impact of COVID-19 Positive on Real Estate – Negative or Positive?

Covid-19 came as a humanitarian challenge that changed the way people live, work, and play, maybe forever. It took away people’s lives and source of livelihood. The global economy saw one of the biggest downturns. There was a point in time when people were more scared of the pandemic-led lockdown than the pandemic itself, due to its devastating impact on the economy.

Real-estate, retail, finance, aviation and automobiles are the 5 sectors that are worst hit by COVID-19. Speaking of realty, last year when the nation went into a complete lockdown between March and May 2020, many new constructions stopped, sales took a hit, and new launches were postponed.

The pandemic brought in a domino effect on the realty sector. At first, the lockdown brought the construction activities to halt, then the fear of health & financial crises caused a mass exodus of migrant workers, the demand for social distancing & the sudden realisation of the importance of saving overspending led to negligible homebuyer enquiries and site visits.
Beginning June 2020, just when the realty sector started taking baby steps on the road to recovery through digital business strategies; and seeing a ray of hope through increased demand of virtual site visits, the country was struck by 2nd wave of COVID-19, this time, deadly than previous.

The cities where real estate activities have most suffered are Mumbai, Delhi, and Bengaluru amongst others. For instance, the Mumbai Metropolitan Region (MMR) in Maharashtra has witnessed a drop in property registrations. Experts say the recovery of the realty market in India could now prolong until 2022, and that it will be highly dependent on the way India deals with the second wave of Coronavirus.

THE OVERALL DAMAGE DONE – What reports say?

Going by a KPMG report, the real estate sector has incurred a loss of over Rs 1 lakh Crore since COVID-19 broke out, resulting in a serious liquidity crunch for real estate developers. The credit shortage brought down the residential sales from 4 lakh units in 2019-20 to 2.8 lakh units in 2020-21 across the top seven cities of India.

The overall residential demand declined by over 40 per cent in H1 of FY21, says the India Ratings and Research Private Limited (Ind-Ra) report. The agency believes that the sales will continue to decline until the pandemic is brought under control.

According to a report by Liases Foras, the pandemic-led lockdown cascaded the volume of unsold inventory from 15+ quarters at the end of FY-20, to 19+ quarters towards the end of H1 FY21. The volume of the unsold stock increased by an extreme dip in sales in Q1 and dampened recovery in Q2 2020.

IT WAS NOT WORKING ANYMORE FOR COMMERCIAL AND RETAIL REAL ESTATE

What simply existed as a concept in an organisation’s HR policies, now become a new way of life – Work from Home (WFH). The rise of the WFH concept led to the fall of the need & demand for office spaces.
According to a report by Cushman and Wakefield, the net leasing of office spaces declined from approximately 70 lakh sq. ft. in 2020 to around 35 lakh sq. ft. in Jan-Mar 2021.

In Q4, the immunisation drive by the Government picked up the pace, so did the Coronavirus cases. Thus delaying leasing & impacting leasing rates. The net leasing rates dipped by 33 per cent in 2020, and average commercial property prices declined by 7-10 per cent.

The demand for flexible workspaces such as WeWork & Awfis which had resurged in the last few months has declined since the second COVID-19 wave emerged. If the pandemic is brought under control soon, experts anticipate leasing 38 MN sq. ft. flexible workspaces in the coming year.

Speaking of retail real estate – data compiled by Statista says that retail mobility has declined by 55-60 per cent across India owing to the partial lockdowns and curfews across cities. Another factor contributing to this downfall is that people are no longer keen on visiting retail spaces – they can get everything, from food & clothes to entertainment delivered home, in just a click. Thanks to e-commerce and OTT platforms.

Looking at the other side of the grass, with WFH becoming a norm, residential real estate underwent a dramatic architectural change. Along with the routine bedroom, living room, washroom, kitchen & balcony, providing a dedicated WFH space has become a need of the hour in the upcoming projects.

DID THE LAW OF SUPPLY AND DEMAND AFFECT REALTY PRICES?

There are many points to be considered while discussing realty prices.

  1. While on one hand, during the 1st wave, some developers went all out to woo buyers by offering major discounts. We came across news such as:

    A 559 sq. ft. property of Hiranandani has been closed for Rs 86 lakh this month. A similar unit was transacted at over a Crore in MarchIn January, ready-to-move-in residential units – one in Ashoka Towers in Parel and the other in Omkar 1973 in Worli – were both available for around Rs 8.5 Crore. Then coronavirus struck & the same units were available in May for Rs 7.5 Crore and Rs 6.5 Crore.

    On the other hand, some developers continued to withhold prices due to limited profit margins. Unlike the first wave, the second wave of the pandemic has, so far, not impacted the prices of the residential market.

  2. Meanwhile, the pandemic-induced spike in prices of essential raw materials, like steel bars, cement, plastic, man-made polymers and resins, etc., are pressurising developers to hike the prices of new projects. The supply shortage is only making matters worse. There are chances that once the lockdown is lifted, we may witness minor hikes in property prices by the end of the next quarter, whereas we may see more significant corrections in prices by the end of 2021.

  3. During the 1st wave of the pandemic, people realised the value of owning a home for themselves and lucrative deals added fuel to the fire.In areas such as Maharashtra, where the stamp duty charges were reduced from 5% to 2% until 31 December 2020 and 3% from January 1 to 31 March 2021.

    Furthermore, RBI kept the repo rate unchanged at 4%, making home buying affordable by availing home loans for as low as 6.65% annual interest, which was in contrast with the average home loan interest rate of 8% in January 2020.

    While this is one side of the coin, COIVD-19 related constraints such as stay-at-home & social distancing, and delayed delivery of other support facilities, such as processing papers for applying for home loans, having the agreement for sale or flats registered, or reaching out to sales and marketing personnel to garner more information about the project are either discouraging buyers or coaxing them to postpone their home-buying plans for later. All of which is leading to a dip in sales.

    Although the vaccination drive seems like a silver lining in the dark cloud of COVID-19, the year 2021 is expected to remain challenging for the real estate sector.

THE DOMINO EFFECT

Iron & steel, cement, machinery are amongst the many industries that are dependent on the real estate sector. The pandemic inflicted heavy losses on them all during the year 2020. Approximately 250 SMEs reported losses that were accompanied by increased costs in 2020.

This was the condition during the 1st wave of the pandemic. The developers and manufacturers were more prepared and cautious during the 2nd wave. They made preparations such as installing labour camps, putting a shift-wise duty in place, and ensured adherence to COVID-19 protocols such as regular temperature checks, once-in-a-moth COVID-19 testing of labourers and installing sanitising stations on construction sites.

The government’s move of initiating a vaccination drive for those above 18 years of age will boost the construction activities as it will help the labourers to get vaccinated at the earliest. It will also make labourers feel safe & eventually reduce migration.

THE ROAD AHEAD

Post-phase-4 of lockdown, the realty sector slowly began its operations, and there came 2021, which seemed to be the year of recovery as COVID-19 vaccines were developed. But the happiness was short-lived as the pandemic’s 2nd wave gushed in, putting the developers and financial institutions in cautious mode. The resurgence of the pandemic has compelled financial institutions to avoid risky investments, adding to the woes of the real estate sector already suffering from a liquidity crisis. But it’s not all dark and gloomy for the realty sector like it’s said, “A smooth sea never made a skilled sailor” – Franklin D. Roosevelt. The realisation of the importance of owning a home in the consumers’ mind during COVID-19 can play an important role in increased residential property sales. Once the government accomplishes its goal to vaccinate its over 1.3 billion population and the fear of COVID-19 diminishes, there are high chances for the realty sector to experience market equilibrium. Points supporting this stamen are

  1. People may return to work, thus increasing the demand for commercial spaces;
  2. Increased e-commerce may lead to increased demand for industrial units to store inventory;
  3. Pandemic has turned many employed professionals into entrepreneurs, this may lead to a rise in demand for retail spaces;
  4. Virtual site visits have lured and made it possible for NRIs to invest back home;
  5. Low-interest rates (home loan interest rates are at below 7% now) and high tax exemption (rebate against home loan interest payment is as high as Rs 3.50 lakhs per annum) can make the option of owning a home attractive over renting;
  6. Many people, especially professionals who have permanently decided to return to their hometowns, who were earlier living on rent in Tier-1 metro cities like Mumbai, Bengaluru, Delhi etc. will look to buy homes, and finding employment in their hometown. Thus, increasing the demand for commercial, residential and retail spaces in Tier-2 cities.
Having mentioned that, here we are seeing the glass half full, but if we look at the half-empty glass, the pandemic has led to job losses and pay cuts, and the entire population is yet to be vaccinated. So we will be able to see a clear picture once the pandemic is tamed and the infection rate declines. Till then, it’s all about the wait-and-watch approach.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Home Loans for NRI’s

Home Loans for NRI’s

Real estate in India is a perennial industry. Residential real estate for Non-Resident Indians (NRI), particularly, has a glorious future. Whether it’s a dream home or a lucrative investment opportunity, India has countless opportunities for you. And what’s even better? The hassle-free availability of home loans for the NRIs to benefit.

What is the procedure?

Applying for a home loan is simple in India. All you need to do is submit an NRI home loan application form to the bank. Indian banks have become widespread and increased their footfall overseas, too. You can submit your application directly to the bank or use an online application. There is an alternative method where you can also apply at a home branch by appointing someone as a Power of Attorney (POA) holder on your behalf. That way, you won’t have to come or wait till your next trip to India. However, if you issue the POA while you are not present in India, it will require a signature. This need to be performed in front of an embassy official for legitimate consideration. Once you submit the application form, the bank will take you through various terms and conditions and applicable interest rates.

Interest Rates and Conditions

RBI guidelines state: You are an eligible NRI only if you are employed or carrying out business outside India under the circumstances showing an uncertain duration of stay abroad. Thus, if you fall under this category, you can apply for NRI home loans in India. You’ll also have to present documents validating your income, employment, and educational qualifications.

Banks offer 70% – 90% of the property value as a loan, based on your qualifications and income, at an interest rate of 0.25% – 0.50%. The repayment has to be in Indian rupees through Non-resident External or Non-resident Ordinary accounts only.

How does this benefit you?

Banks are now offering home loans to NRIs at attractive interest rates. So, taking a home loan is always better than personal financing. Instead of engaging your savings in the purchase, you can invest that money elsewhere for better returns and manage the property-related expenses with the loan. Home loans for NRIs also have tax benefits, just like the home loans for Indian residents.

So, when you take a home loan, you get tax benefits, security, and freedom to invest your money elsewhere and earn profits.

Key features

Here are some of the most attractive features of Home loans for NRIs that will aid you in selection-
  • You can get loans for constructing a house, purchase a developed property, or renovating an existing property as well.
  • The process of application is simple, and the approvals are quick.
  • There is a flexible online process with precise application tracking facilities
  • Flexible prepayment facility with minimal fees
  • Better finance management
  • Tax benefits and money savings

Conclusion

It is evident from the above points, home loans for NRIs have become a cakewalk in recent times. The entire process requires minimal paperwork, and you may reap multiple benefits in return.

So, should you get a home loan to buy your dream house?

Well, if you are an eligible NRI, the answer is a loud, resounding yes. Getting a home loan is the best choice you can make while purchasing residential real estate property in India.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Why is real estate a better long-term investment option?

Real estate is the most preferred investment option across the world. As per a Gallup poll in 2016, real estate investment was rated as the best among long-term investments – much ahead of bonds, stocks, saving accounts, mutual funds, and gold.

In India, the emotional joy of owning a property is inherently much stronger than ever. The cherry on the cake: The recovery phase of the real estate market of India may have begun already since hitting rock bottom in the previous few quarters.

Did you know?
In India, real estate is the second biggest employer after agriculture and is expected to grow by nearly 30% in the coming decade. Hence, no matter what the temporary impediments, it remains the safest investment option to date, and is set to grow much shortly.

Why is real estate a better long-term investment option?

It does not need much expertise

Investing in real estate is not rocket science. Even first-time investors can get it right with the help of some online research or real estate consultants/agents.

In comparison, investing in stock markets or mutual funds demand constant time & attention, in-depth knowledge of the market, the business & the financial world.

Generate rental income

By investing in real estate, one is almost 100% guaranteed a regular stream of rental income. In comparison to stocks, you are not subject to the mercy of volatile market forces that can dilute your net worth overnight. By owning a home, you are assured of regular and stable monthly income, which will increase with time while your home’s capital value also appreciates.

Good appreciation over the long term

You must have come across these sayings: “Ninety per cent of all millionaires become so through owning real estate” – Andrew Carnegie. “Landlords grow rich in their sleep” – John Stuart Mill.

Real estate is a long-term investment, it’s a place to park cash in an appreciating asset that has the potential to provide passive income.
Over the last two centuries, about 90 per cent of the world’s millionaires have been created by investing in real estate. For the average investor, real estate offers the best way to develop significant wealth.
In addition, it’s a fact that the human population is booming while the supply of habitable land is fixed. Hence, it is highly likely that the demand for real estate will only rise in the future, and eventually, the returns from real estate will only increase in the long-term future.

Comparison to stock investments

In comparison to real estate, investments in stocks are a cocktail of uncertainty. It is a risky game to trade in derivatives and stocks. Since investing in the stock market is a highly specialised field, it needs superlative skills to make money out of equities and exploit trade cycles. Also, misleading market trends often result in investors making impulsive decisions to sell and buy.

Comparison to mutual funds

By principle, investment in mutual funds results in minimising risk by investing in several different portfolios. However, the investment is subject to many risks because of market volatility. In comparison, investing in real estate is not a very risky option as it promises many long-term returns – because demand outstrips supply.

Going by the facts stated above, it’s a wise decision to invest in real estate over stock market or mutual funds. So if investment running all over your mind, real estate is the right option and, now is the time to begin. History says – real estate can be more rewarding for those who start at a young age.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

How to choose your dream apartment

FIND THE HOUSE OF YOUR DREAMS

How to know if a house is right for you?

You’ve long been dreaming to own a house, saving up to turn it into a reality. But finding a dream property in the city of dreams is no easy task. There are many points to consider: location, amenities, safety, value for money, appreciation rate, size & layout of the apartment, and the list goes on… If luck permits, you’ll get them all, but if not, you might have to compromise on a few factors, but which factors are worth compromising? Aargh! This might get annoying.

Once you’ve found a close match, how to be sure that this is the one? Well, fear not, we are here. Here are some valuable tips and ideas on how to choose the property that best fits your needs.

Define your budget

Before your house-hunting spree, determine your budget. To estimate your budget, you need to know: 1) your earnings 2) savings/collateral.

Map Your Location

Location is by far the most critical considerations you can make before signing your purchase papers. If you have children, you should ideally select a property that is located nearby an educational institute. Additionally, your future home should be well connected to roads and public transport, it should be closer to hospitals & shopping malls, etc., and be safe. Last but not least, the residential complex should have all the necessary amenities and facilities.

Choose the Proper Layout

What type of building do you prefer? One where you can walk up to your home, or a high-rise elevator building? Do you own a vehicle to park?

Determine an apartment size that’ll work for you, a 3, 2 or 1 BHK? If you dream of spending your mornings on a balcony, check if the building offers one. Are you looking for an apartment with a master bedroom, a separate dining area; or for that matter, with the work from home culture slowly becoming a norm post-COVID, does the apartment offer a separate workspace?

Own a pet and want to bring them, add that to your must-haves.

Evaluate the space

While house hunting, carry a notebook. Jot down the pros and cons of the flat and evaluate the reasons behind this. If the walls need some fresh paint or servicing, note down the areas requiring proper scrutiny. Are there any visible damages? If yes, take pictures of them. Also, check for essentials such as a gas pipeline, water & electricity supply etc.+

Take Care of Amenities

Along with the essentials, you should check for the amenities provided by the developer. If you are a fitness freak, a well-equipped gym in the vicinity might be of interest. Kids might be keen on a clubhouse or a garden for their recreational purposes. Also, with elders in the house, you might want to consider having worship places inside/nearby the society.

A home needs maintenance too. So, check how accessible are the plumbers and electricians etc.

Moreover, it’s important to check if these amenities come for free, or you’ll have to shell an additional amount for it.

Run a background check on the builder

Check the credibility of the builder based on parameters such as record and performance, quality accreditation and certification, recognition in real estate, etc.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Kitchen trends in your apartment

What’s cooking?

Chic and contemporary decor ideas to turn your kitchen into a drool-worthy one.

It is not easy to find the right dwelling space in the city of dreams – Mumbai. It requires an investment of time, energy and money. Once you find the right fit, the next challenge is to convert the house into your cocoon, your home sweet home. What better way to do so than through a décor?

The kitchen is the heart of the home, it is a place that fuels our bodies, minds & souls, brings people together,  traditions are made, cemented and passed on in our lives, and A place where memories are homemade and seasoned with love. For a place as important as this, decorating it should be of utmost importance.

Here are some stunning kitchen décor ideas you’ll be tempted to try:

Metallic colours and accents

Let your kitchen embrace the beauty of metallic hues and textures. Add geometric décor in modern metallic finishes and simplified oversized shapes to your kitchen cabinets and shelves. You can also add some accessories on the periphery of the cabinets – go for some gold and silver metallic combinations for a uber-chic kitchen.

Statement-Making Taps

Ask your interior designer to arm your kitchen with some smart taps. Opt for slender, metallic finish smart taps, not only will they add some real oomph to your kitchen, but also help you save on water bills. These attention-grabbing smart taps automatically sense the motion of hands and stop the water flow once you put your hands or other objects away from it. Indeed a must-have!

Intelligent Gadgets

Why just smart taps when you can turn your entire kitchen into a smart kitchen? An empowering tool, smart devices such as Amazon’s Alexa voice assistant. From maintaining a grocery list to keeping multiple timers, making coffee, controlling smart cookers & large appliances such as ovens and refrigerators and listening to music or the news while cooking. Alexa is your genie and your wish is her command.

You can also accessorise your kitchen with motion sensor-enabled lights. So that when you are in a kitchen, nothing except the recipe for a gastronomic meal runs in your mind. More so, they help you save both: money and energy.

Optimum Storage

Make the maximum utilisation of your storage space in the kitchen – go for open shelves with eye-catchy textured background wallpapers, you can fold them after your meal is ready!

Some More Space

You can make your kitchen look spacious with the help of larders. The larders are the single cupboards that symbolise a food wardrobe. You can store all your tableware and groceries in them.

Black and White

Accessorise your kitchen walls with black and white textures, they are bold & versatile and will impart a seductive allure to your kitchen that says sleekness and sophistication at the same time. If you choose a matte black wall texture and tone, complement it with glossy surfaces, to create a kitchen that’s difficult to take your eyes off.

Get Ready to Brighten Up

To add a visual depth to your kitchen and create a welcoming ambience, embellish your kitchen with unique kitchen pendant lights.

Minimalism

For a kitchen to run smoothly, you can’t suffer through chock-full cabinets or overflowing drawers. For a clean kitchen that will effortlessly allow you to get what you need without having to dig, reach, or unstack, you will need to practise minimalism. This means you will have to declutter your kitchen very inexpensively with only a little time and thoughtful consideration.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

Home Loan Tax Benefits

Why owning a home is beneficial tax-wise?

Buying a property is a big decision & investment, for which every one needs the support of a home loan. If one wishes to buy a 1 BHK in Thane, he will have to shell out between 60 lakh – 1 crore. To pay up the entire amount is not everyone’s cup of tea, more so, not even who can afford wishes to do so. In such a case, a home loan, added to accompanying home loan tax benefits come to the rescue. Not only does it make the home buying process systematic, smooth & easy on the pocket, it also brings along with it some additional tax benefits.

Home Loan Tax Benefits

Joint home loan

Lighter on the pocket, a joint home loan allows you to share the EMIs with your family member, friend or any other co-borrower. In case you lighten your financial burden, even more, you can add more than two applicants to the same loan, this will also make the repayment of the loan easier.

The tax benefit on joint home loan for co-owner are:

  • Each joint owner and borrower can claim Rs.2 lakhs interest deduction
  • A joint owner can claim an 80C deduction on principal repayment
  • Each joint owner can split costs of registration and stamp duty and claim an 80C deduction
  • Source: Grihahakti

Deduction under section 80EE and 80EEA

In the year 2016 & 2017, to increase the sale of flats and to make it easy for people to buy homes, the Indian government introduced a deduction under section 80EE. Section 80EE allows a deduction of up to Rs 50,000 for interest paid by first-time homebuyers for a loan sanctioned from a financial institution between 1 April 2016 and 31 March 2017. The government has extended the benefit for the FY 2019-20 which can be claimed until the housing loan is repaid.

Speaking of Section 80EEA, a deduction for interest payments up to Rs 1, 50,000 is available, which is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act.

Cumulatively, taxpayers can claim a total deduction of Rs 3.5 lakh for interest on a home loan, if they meet the conditions of section 80EEA.

For availing this deduction there are some eligibility criteria & conditions one has to adhere to:

Eligibility criteria:

  • The deduction is available only to individuals. If you are a HUF, AOP, Partnership firm, company, or any other kind of taxpayer, you cannot claim any benefit under this section.
  • Similar to Section 80EE, to claim deduction under Section 80EEA, you should not own any other house property on the date of the sanction of a loan.

Conditions:

  • A housing loan must be taken from a financial institution or a housing finance company for buying a residential house property.
  • The stamp duty value of the house property should be Rs 45 lakhs or less.
  • The individual taxpayer should not be eligible to claim deduction under the existing Section 80EE.
  • The taxpayer should be a first-time homebuyer. The taxpayer should not own any residential house property as of the date of sanction of the loan.

Conditions concerning the carpet area of the house property. These conditions have been specified in the memorandum to the finance bill, but not mentioned in section 80EEA:

  • The carpet area of the house property should not exceed 60 square meters (645 sq. ft.) in metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the whole of Mumbai Metropolitan Region)
  • The carpet area should not exceed 90 square meters (968 sq. ft.) in any other cities or towns.
  • Further, this definition will be effective for affordable real estate projects approved on or after 1 September 2019

Under Section 24, homeowners can claim a deduction for interest payments up to Rs 2 lakh on their home loan, if or not the owner or his family resides in the house property.

If the homeowner has rented out the property, the entire home loan interest is allowed as a deduction.

If one can satisfy the conditions of both Section 24 and Section 80EEA, benefits under both the sections can be claimed.

It is however advised to exhaust the deductible limit under Section 24 first, which is Rs 2 lakh. Then claim the additional benefits under Section 80EEA. Therefore, this deduction is in addition to the Rs 2 lakh limit allowed under Section 24.

Source: Cleartax-80eea, Cleartax80ee

Deduction for stamp duty and registration

In India, a homebuyer has to pay stamp duty between 4-10% and a registration charge at 1% of the property value. Deductions are claimed on stamp duty and registration charge paid on property purchase under Section 80C of the Income Tax Act, 1961. The overall deduction limit under Section 80C ─ which offers rebate against a wide range of investments, including PF, PPF, life insurance, home loan principal etc. ─ is Rs 1.50 lakh in a year.

So, under Section 80C, a homebuyer can not only claim a rebate on his home loan principal but also on stamp duty, registration charge and other additional expenses. However, the limit stands at Rs 1.50 lakh in a year only.

Conditions apply to claim tax benefit on property stamp duty and registration charge under Section 80C

  • One has to be either an individual or part of a Hindu Undivided Family ('HUF')
  • One should pay the stamp duty and registration charge from his pocket, the amount shouldn’t be borrowed
  • The taxpayer can claim this deduction only in the year in which he has made the payment
  • The deduction is meant only for purchase and construction of residential house property, not on plot or land purchase
  • For a co-owned property, both owners can claim deductions while filing their respective Income Tax (IT) returns
  • This deduction can only be claimed on the new property and not on a resale property
  • The deduction will be allowed only if the purchase doesn’t include any payment towards renovation or repair of the property

Source: Proptiger

Home loan tax benefits of owning a second property

If you have bought a second property with the help of a home loan or other housing finance, you can claim a tax deduction on it too.

While deductions under Section 80C on the principal amount of the loan may not be available in the case of your second house, you can enjoy tax benefits on the interest component.

In other words, if the interest payable on the loan taken for the purchase of the second house was larger than the rent received, the remaining portion could be adjusted against your other income. However, now a limit of Rs 2 lakh has been imposed on such adjustment. The remnant portion of the interest, if any, can be carried forward for 8 successive years to be adjusted against income from house property only and under no other head.

In the case of self-occupied property, any additional income remaining after deduction of Rs 2 lakh can neither be carried forward nor adjusted against any other income.

Source: HDFC

Deduction on interest paid

Interest paid to your friends and relatives in respect of money borrowed for purchase, repairs or renovation etc. of a house can also be claimed under section 24(b). All you need to do is prove the actual usage of the personal loan to renovate your property to avail of the deduction. This can be easily done by establishing a linkage between the credit of the personal loan in your bank account and its actual use. Although you are not allowed to attach any document with your ITR, you still need to preserve the documents.

If you have not claimed the deduction on interest paid for a personal loan during the last year in your income tax return, you can do so this year by revising your ITR.

Source: Livemint

A guide to calculating and claim tax benefits

  • Calculate your gross income (Write down your annual gross salary)
  • Arrive at your next taxable income by removing the deduction amount
  • Calculate all your taxes
  • Consolidate your next tax
  • You can easily claim tax benefit under section 80C, 80EE, 80EEA of income tax on the same year of income tax paid

Source: ETMoney, Cleartax

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. Ashar Group does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.