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Some reasons to buy A HOUSE THIS FESTIVE SEASON!

With RERA in place, PMAY subsidies on home loan interest rate, and the festive season in full swing, this could well be one of the most opportune moments to buy one’s home!
Given the cautious buyer sentiment and stagnant property prices, a question is sure to crop up in the minds of home buyers these days: Is this a good time to buy a piece of property?
Experts say that, generally, any time is a good time to buy a house for personal use, keeping in consideration your ability as well as the availability of a product of your choice.However, in times like the present one-when various policy changes have been made, RERA and GST implemented–property has become cheap and there are offers galore from developers. Thus, this could well be one of the most opportune moments to buy one’s home.Some compelling reasons to buy a home:

1 Low Interest Rates:

The past few months have made home-buying relatively economical. “Currently, home loans are at a 10-year low, which is already bringing an upsurge in the market. Though RBI kept the policy rates unchanged, there is a feeling that owing too surplus liquidity in the system and very sluggish credit growth, banks may resort to interest rate cut. If one borrows at variable rate, he can avail the future cut in interest rates. Thus, waiting for rate cut to buy a house is not advisable,“ Manish Gupta, MD of Strategic Group Royal Court, says.

2 Interest Rate Subsidy:

Under the Pradhan Mantri Awas Yojana (PMAY), the government is offering discounts on interest rates in the purchase of one’s first home. The net discount is equivalent to around Rs 2,50,000, which is adjusted in the principal amount up front to buy a house of 1,184 sq ft. This reduces one’s EMI by around Rs 2,200.

3 Low Property Prices:

Over the past two years, there has been a decline in the sales volume. “Many developers have lowered prices in their projects. Also, investors who put money in these projects in Noida Extension are not expecting rates to go up in the near further, and are selling their units at competitive rates in the secondary markets. It’s, thus, a good time for home buyers to bargain hard with the seller and get a better deal,“ says Avadesh Chaudhary, associate director Pocketworth Realty, Noida.

4 Discounts and Freebies:

Eyeing a 4 rebound from a prolonged slump, property developers are betting big on the current festive season. This can be gauged from the fact that a large number of developers have already rolled out a number of attractive schemes in a bid to woo prospective buyers and fence-sitters. With this, home-buying has become more attractive. “Festivals are considered as an auspicious time to invest in a piece of property. Thus, developers offer freebies and lucrative schemes as incentives to  . The key, however, is to ensure that there are no hidden surprises and the offer is clear and transparent. You should always look to invest with developers who have a proven track record, so that there are no unwanted surprises coming your way,“ Pankaj Bansal, director of the M3M Group, says.

5 Regulator in place:

There is no denying the fact that there have been numerous incidents of project delays in the recent past. However, with RERA in place, developers won’t be able to fleece home buyers anymore. You only need to ensure that you are buying your home in a RERA-compliant project, from a trusted builder.

Prices are in fact rock bottom.There are hardly any launches at the current prevailing prices of ready-to-move-in apartments. Developers say unless prices go up, there cannot be any new launches. At the same time, e inventories of unsold units in good ready to move-in projects are likely to be bought out in the next two to three quarters. After that prices may go up.

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Buy that flat! Go, BUT, CHECK FREEBIES FOR HIDDEN STINGS!

With the onset of the festive season, developers are offering a slew of freebies and discounts to lure buyers-but are these as lucrative as they sound and should you buy a flat going by these offers alone?

This is a perfect time to buy your dream flats in Noida Extension. It is Navaratra time, prices are at the lowest level, even lower than the replacement cost.Interest rates on home loan, around 8.35%, are also at a 10-year low and falling further, which will help you in lowering the cost of acquisition further (if you are borrowing at variable rate).

If you are a young property buyer and are going to buy your first house, you can also avail around Rs 2.45 lakh interest subsidies from the government. These subsidies are given upfront and will reduce your total bank loan.

Apart from all these, developers are also betting big on the current festive season to monetize their unsold inventory to raise funds to complete projects. Developers are also hoping for a rebound from a prolonged market slump as the sales pick up.

This can also be gauged from the fact that a large number of developers have already rolled out a number of attractive schemes to woo prospective buyers and fence-sitters. While some developers have started giving discounts on the basic selling price of properties, others are offering gold coins or, even cars, on booking a flat.

They also are offering free car parking and payment of pre-EMIs till the possession is offered. However, are these discounts and offers really as lucrative as they sound and should one buy a flat going by these offers alone?
“With the festival season upon us, it can get difficult for buyers to evaluate the best deal which works in their favour. Thus, it is important to critically evaluate all options and take the necessary precautions before closing a deal this festival season,“ says Avadesh Kumar, associate Partner (Pocketworth Realty) at Noida.

Here are some precautions which a buyer should take before making the final decision in buying property: Negotiate hard: This is a buyers’ market.So, here you should use your skill to negotiate hard. This is the key to get a good price. If you are a serious buyer and ready to close a deal, developers are ready to give you a good deal.

Step 1: While negotiating, do it first without any freebies.

Step 2: Then you compare it with the price of the same with freebies on offer. This will give you a clear idea of the value of freebies being offered by the developer.

Step 3: Next, find out the value of the freebies that are on offer, independently. For example, a gold coin or a 32-inch TV would cost around Rs 30,000 in the market. Similarly, a modular kitchen costs between Rs 1 lakh and Rs 5 lakh, depending on the gadgets and their quality used in that promised kitchen. Similarly, other freebies like car parking, cash discount, and foreign trips have also some value, which you can find out.

Step 4: Finally, compare the value of freebies and the discount on the price of the flat you are getting without any freebies! Take a decision with all these information in hand.

EMI till possession: Many developers ask you to pay only 10-20% upfront. You will have to take loan, but the pre-EMI will be paid by the developer till possession is offered. Such schemes are good options.

Besides, it not only means lowering of the net cost of the house, it also provides you a kind of security of obtaining possession. In this case, too, negotiate on the price front.

Many a time, developers offer payment of EMIs for the first two or three years and not till the possession is offered. So, better check and insist on the payment of EMIs till the possession is offered.

Some developers offer freebies while others may offer direct discounts on the home price or options like waiving off registration charges. Direct discounts work best on the pocket, particularly at a time one is deciding to buy a house–a decision that overstretches one’s pocket.

Compare prices in the festive and no on festive period: Some builders may increase prices during the festive period to shower multiple discounts during this time. Ascertain the actual benefit you get after purchasing the property. Compare the price of a similar flat in other projects in vicinity.

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BUMPER FESTIVE OFFERS – TIME TO LOCK HOUSING DEALS!

With Navaratra and Diwali round the corner, developers are readying lucrative offers to attract customers to their projects
Realty players have customized a slew of offerings to suit buyers’ requirement and help them seal a good deal. These festive offers begin from September 21 and will last till Diwali in October.In expectation of good sales during the festive season, some developers plan 100% discount on stamp duty charges, registration fee, and service tax, along with 17 different discounts and freebies to potential buyers.

REASONS FOR THE EXPECTATIONS

1. Lowering of interest rates by leading home-loan lenders like SBI, HDFC, ICICI, and PNB 2 .Reforms like RERA and GST in place; affordable housing schemes by central governments, which will benefit homebuyers looking for a dream home, especially in the Delhi NCR region Why buyers may lock deals during festive season Traditionally, the festive season after the monsoons, beginning with Navaratra and Diwali, has been regarded very auspicious for making important financial deals, and buying a house is the most important financial decision any householder can make in India! Who are making offers?
Real estate firms, especially from the Noida and Gurgaon regions: Tata Housing, Pacific Group, TDI, TDI Infratech, Exotica Housing, Tulip Infratech, Express Builders, Thapar Builders, BDI, Tulip Infratech, Gaursons India, Supertech, Antriksh India, Ajnara India, Gulshan Homes, Paramount, Saya Homes, Mahagun, Strategic Group, among others.

WHAT IS ON OFFER?

Freebies like: Open and covered car parking, club membership, first transfer, 1KVA power backup, LED TV, refrigerator, sofa set with centre table, modular kitchen, wardrobes, airconditioner in every room, dining table set and double bed, gold coin (10 gram).

All these come with attractive payment plans like free stamp duty, price guarantee up to possession, free maintenance for one year, delay possession penalty charge, no loan processing fee, and customized payment plan on every booking.

TAKE YOUR PICK

Tata Housing: Buyers will be get possession of a ready-to-move-in flats on payment of 20% of the total cost; buyer takes home loan for the rest of the amount, whose pre-EMI (interest on the loan amount) for the next two years will be borne by the company, while the buyer will start paying EMI only after this.

Offer allows homebuyers to defer the payment of the rest of the amount for two years and live in their own apartment from Day 1 of their purchase.

The scheme is equivalent to a benefit of around 16% on the cost price. Rajeeb Dash, head of corporate marketing at Tata Housing said the festive scheme will provide additional benefit not only for end users but also for those seeking to invest in property. “This festive offer follows a nationwide campaign by Tata Housing called `Move In India’, a scheme that allows investors to rent out their apartments while Tata Housing provides them with assured rental income for 24 months, across 7 of their projects,“ Dash said.

Sikka Group: Offering GST impact waiver, special payment scheme (noloan-plan; pay 10% now and 90% on possession), and fully furnished home.Valid in–Sikka Kimaantra Greens, Sector 79, Noida; Sikka Kaamna Greens in Sector 143; Sikka Karnam Greens, Sector 143B, Noida Expressway; also, assured rentals till offer of possession in Sikka Kapital Grand, Sec tor 98 in Noi da.

Tulip In fratech: Of fering 10% discount on list price of 4 BHK and 3 BHK flats in Tulip Violet (group-housing project) for a full month in the festive season starting from Navaratra.

Thapar Builders Pvt Ltd: Free–1 covered car parking, modular kitchen with hob and chimney, cupboards in each room, 5 airconditioners in each apartment, branded bathroom fittings and wall tiles; applicable in group-housing project, The Arthah, in Sector 4, Vaishali.

Express Builders: Free–car parking, waiver of EEC and FFC charges, 1 KVA power backup, and club membership on every booking in Navaratra period in Express Zenith, Sector 77, in Noida.

SG Estates: Free–club membership, car parking, easy payment plan, power backup of 1KVA, no PLC, first transfer, along with a surprise gift (like a microwave, mobile, washing machine, etc) on spot bookings during Navaratra in SG Oasis in Vasundhara and SG Grand in Raj Nagar Extension.

New payment plan: Customers pay 5% now and balance on offer of possession.

SG Estates get the rest 80% from the bank and the pre-EMI is borne by them.

TDI Infratech Pvt Ltd: Free–gold coin and Rs 50,000 off for people associated with the armed forces, or any central or state government employees, and foreign trip on every purchase in TDI City in Kundli, Panipat, and Mohali.

Pacific Group: Discounts add up to Rs 9 lakh which include discounted BSP; EDC and IDC waived off; golf membership waived off in Pacific Golf Estate.

Gulshan Homz: Free–One 32-inche smart LED TV and a microwave on Gulshan Ikebana in Sector 143 on Noida Expressway; half-modular kitchen in Gulshan Bellina in Greater Noida West.

Exotica Housing: Free–Home appliances like LED TV, refrigerator, ACs in all rooms, modular kitchen, wood work, etc, to every buyer in Exotica Fresco, Sector 137, on Noida Expressway and in Dreamville in Greater Noida West.

Gaursons Group: Offer–100% GST benefit on all units including those under construction. Free–maintenance for one year, car parking, membership of in-house club, pre-fitted fans and fancy lights, RO in kitchen on every booking during the festive season.

Ajnara Group: Offer–Full GST benefit. Free–gold coin (10 gram), modular kitchen, wardrobe in all bedrooms, RO unit in kitchen; customized payment plan, no-price escalation, no processing fee for home loan, and no transfer fees on first transfer on every booking in The Belvedere, Sector 79 in Noida.

TDI Infracorp: Innovative offer for buyers in Lake Grove City in Kundli-Sonipat. The booking amount on a 2 BHK, 3 BHK, 3 BHK plus study in low-rise floor is doubled and credited to a buyer’s sale value, amounting to 8% discount.

BDI Group (Bhiwadi-based): Free-Motorcycle on every booking on September 22, 23, and 24; will also hold lucky draw offer for LIG and EWS.

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Real Estate Roundup!

May new home sales gain 2.2% from April

Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. — From Housing Wire

3 ways to tame student loan debt and afford a mortgage

It’s no secret that student loans can make buying a home a challenge. But what exactly is the problem, and how can buyers overcome it? The problem is that student loans can be included in the buyer’s debt-to-income ratio, or DTI. — From Bankrate

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We’re ready for the TRID rules!

At 5 p.m. EST June 17, the Consumer Financial Protection Bureau issued a statement that the effective date for the TILA-RESPA Integrated Disclosure (TRID) rules would be pushed back to Oct. 1, 2015.

CFPB Director Richard Cordray said in a prepared statement: “The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until Oct. 1, 2015. We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”

Rainier Title has been working towards the TRID implementation for over a year and felt prepared for August 1st. However, with the proposed delay we will be taking this opportunity to continue our education and training of TRID. While we believe that we have been proactive and ready for this change, there are still so many unknowns that will have to be addressed at the time of implementation. The industry should still prepare for 45-60 days for transaction to close due to the new timing parameters of the forms.

We’re working hard to be ready for all changes!

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Real Estate Roundup

Active Home-Building Industry Will Lead to More Demand for Warehouse Space

Strong consumer spending and the rise in housing construction activity are currently the prime factors for the incredible rebound of the U.S. industrial real estate sector, and experts say as home buying continues to increase, so will demand for warehouse space. — From NRE Online

To Buy or Not to Buy: That Is the Developer’s Question

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