Select Location

• Understanding Location Advantage and Benefits Around (Ground Water, Schools, Bus & Train Facility, Market Other Life Style Facilities)
• CMDA or DTCP Approval for plot and House.

Property Legal Opinion

Need To Plan Before Construct a House

Size of the house, Vacant Land or Set back, Natural Ventilation for Air and Sunlight, proper set back, Provisions, Foundation for Future Extension E.B or Drainage work , we need to plan the foundation based on the future requirement.

Budget for house or Plot: -

• Based on your budget you need to decide size of plot after that you need to plan house construction.
• Plan based on your budget and bank loan or other financial availability.
• Need to check on construction cost if your planning to construct through builder or contractor.
• Verify construction materials specification in the Builder Agreement and Stage Payments, Indian Govt. has offered subsidy for new house holder for Rs .2.67 Lakhs which will reduce your bank loan value.

Step 1-Design your Floor Plan

• While Construction of an Individual house based on the availability of land, you need to do proper Design / Elevation / Future Extension / Vasthu with Builders.
• Think multiple times before executing Final Drawing and Construction on required facilities are Covered in designing and floor plan.

Step2- E.B/Water Connection

• We need to apply temporary E.B Connection, Bore or Well for water & others support during construction.

Step3-Stages of Construction

Foundation to Final Completion of a house, you need to plan for financial budget in 5 stages Either Your own Funds or Banks.

• Stage 1 of the Construction Payment during Agreement
• Stage 2 of the Construction Payment after Basement
• Stage 3 of the Construction Payment Completion Roof
• Stage 4 of the Construction Payment completion of Brick Works & Plastring
• Stage 5 of the Construction Payment Completion of Whole Works

A House is always our Dream, Pride, Life, Value So Construct Your Dream House Now & Enjoy your Life till your End.

Our Support & Wishes to your Dream House

Investment Tips and Suggestions

• Excellent Appreciation will be there.
• If you Buy Land within Chennai limit, All the access for your Family will be comfortable like (Office, Schools, Transport and other Lifestyle Facilities).
• If you have Small Budget, Buy Land now, Individual House you can construct later.
• As a Earner you can settle our Family Members comfortabaly in Individual House, you can go Office even its distance.
• Individual House always gives you more Pleasure, comparatively Flats.

After Individual House Constructon

• Change Property Ownership Patta
• Water, E.B, Sewage, Name change
• Property tax Name Change
• Security Arrangement (camera)

A Patta is a crucial document which tells about the ownership of a particular property. It indicates about the person who has the rights to the property. For this reason, it is also known as “Record Of Rights (ROR)”. The person who has his name registered in the Patta is considered to be the owner to be that property.

• Patta is a legal document which has been issued by the appropriate government
• Patta establishes the ownership of a person over a particular piece of land

What type of properties need Patta?

Although all the properties can be registered under Patta Land, the properties which are not visited quite frequently by the owner must be compulsorily registered.

• The plots which are left out without any construction needs the Patta document the most.
• The buildings or any other property on which construction has been done can also get a Patta land registration

How to get your name registered under Patta Land?

• A Patta is registered by the Tehsildar of that particular area.
• To get your name registered under the Patta, you have to make an application to the Tehsildar, requesting him to get your name registered.
• He could after examining the application either accept the application or will reject it.
• He could either ask you to show the property and would investigate the property by himself or may ask you to provide certain documents which could prove that the new owner of that property is you and then match those with the ones which are available in the revenue office and then change it.
• The process for transferring of Patta is the same as that of registering a Patta Land.
• The transfer of a Patta of a person who has died either leaving a will or not leaving a will, the Patta needs to be transferred as soon as possible.
• The legal heirs, if any, shall approach the Tehsildar with the documents proving to be his legal heirs and make an application for the transfer of Patta Land.
• If the person has left a will then the ones who are allotted that property under the will shall approach the Tehsildar as soon as possible to get their name registered under Patta Land, providing him with the copy of the original will and identity proof that you are the beneficiary who has been allotted the property by the testator.

Conclusion

The Patta of a particular property is the most important document to prove the ownership of a person over a particular property. The name which is registered under the Patta of a particular property is considered to be the owner of that property. The State Governments are trying their best to make this hectic procedure of applying and getting your name registered under Patta as comfortable and convenient as possible for the applicants.

Website - eservices.tn.gov.in

Property Tax or House Tax in India is a tax charged by the municipal authorities for the upkeep of basic civic services and amenities in the city like roads, sewer system, parks, and other infrastructure facilities like lighting etc., as well as for maintenance of the existing infrastructure. This article explains What is Property Tax, Different ways in which Property Tax is Calculated Annual Rental Value, Capital Value System and Unit Area System,How to Pay Property Tax?

Property tax and Income Tax from house property

• Property Tax is levied by the local body like Panchayat/Municipality/Municipal Corporation while the Income Tax is levied by the Central Government.
• The method of computation of amount of tax payable in both the cases is very different.

On which kind of property is property tax levied?

In India, property tax is levied on real estate which consists of buildings or land attached to the buildings. Vacant plots of land without any adjoining building are not liable to be taxed under this head. The type of properties that are liable to be taxed under property tax in India.

• Residential house (self-occupied or let out)
• Office Building
• Factory Building
• Godowns
• Flats
• Shops

How to Pay Property Tax?

In most of the states you can property taxes online. There are offline methods too, like paying at the municipal office, or at select banks as identified by your municipal authority. Late payments towards property tax can attract a fine, generally equivalent to a certain percentage of the amount due. This interest varies from state to state. Any delay in payment can attract a penalty of 1-2% per month.

Website: www.tn.gov.in

How is Property Tax Calculated?

There are three main ways in which Property Tax can be calculated given below.

• Annual Rental Value or Rate-able Value or ARV :

  ARV is a system in which the gross annual rent of the property is fixed by the municipal body and taxes would be levied based on the estimated value. Chennai and Hyderabad follow the Annual Rental System.

• Capital Value System or CVS :

  CVS is where the market value of the property would be used to estimate the taxes to be paid. Generally, this market value is fixed by the stamp duty department of the area.

• Unit Area System or UAS:

  In UAS system property taxes are levied on the per unit price of carpet area of the property. Cities such as New Delhi,Bangalore follow this system. Generally, you need to ascertain the value of property fixed for your zone and multiply it with the carpet area of your house.

An encumbrance refers to any charge created on any asset, more often used in the context of real estate. An Encumbrance Certificate or EC is a certificate of assurance that the property in question is free from any legal or monetary liability such as a mortgage or an uncleared loan.

It is of capital importance that a homebuyer obtains an EC not only to secure his legal title over the property but also to be eligible to obtain loans from most banks and financial institutions for or against the property.

How to obtain an EC?

The EC for a property is provided at the sub-registrar’s office in which the property has been registered. To ascertain the transactions that have taken place concerning a property-

• Application is to be made to the registration office for an EC, along with an attested copy of proof address, details about the property, its title details, and the fee applicable for obtaining the Certificate.
• An Encumbrance Certificate with the details of the transactions in the specified period, or if no transactions have taken place, a Nil Encumbrance Certificate (NEC), is issued.
• The certificate is issued 3-15 days from the date of application.
• The forms of the applications and certificates are specified in the annexures to the rules of the Registrations Acts of the respective states. Usually, an application is made in Form No. 22 and the EC are issued in Form No. 15, NEC in Form No. 16 of the respective state rules.

What you’ll find in the EC

All transactions relating to the property that have been recorded by the Registrar will be looked into, and necessary details will be made to reflect in the EC. 　

The Certificate usually pertains to a specific period and transactions relevant to that period alone will be considered. Another important consideration is that the EC will reflect only those transactions and documents that have been registered with the office. Certain documents such as testamentary documents and short-term lease deeds need not be registered under the law, and are therefore excluded from the purview of the transactions recorded at the sub-registrar’s office. 　

Online EC available - 1975 onwards

Manual Ec available -1925 to 1975 period.

Classification of Real Estate

Real estate includes various properties which can be classified by their uses. These are as follows:

Residential Real Estate: The real estate which consists of home, i.e., single, duplex, triplex, township, bungalow etc. used for residential purpose. Whether it is a newly constructed property or a house to be resold by the owner.

Industrial Real Estate: A large scale property utilized to build factories, manufacturing units, warehouses, distribution centres, etc. are categorized under industrial real estate.

Commercial Real Estate: The properties or office buildings such as a complex, are parted into multiple small units. These are rented out or used to run various businesses. Therefore, they are known as commercial real estate.

Retail Space: These properties are used as showrooms, restaurants, shopping malls, retail stores, etc. either individual units or multiple units located in the prime location.

Land: Any vacant land where activities like ranching or farming take place is also a form of real estate.

Fix and Flip Properties: The residential properties which are in a poorly maintained state and are available at a low price are termed as the fix and flip properties. These properties, when purchased by the buyers involved in renovation and repairs of properties to modify them and sell at a high price.

Mixed-Use: A single high-end real estate project which constitutes of different types of properties mentioned above to ensure diversification and minimize the risk of project failure, is termed under mixed-use real estate.

Appreciation of Property Value: Usually, the value of property keeps on increasing even in the situation of inflation in the economy, therefore investing in real estate is a wise decision.

Rental Income: Renting out premises, whether residential or commercial, is always a good idea for generating a progressive passive income in the long run.

Related Commission: The real estate management companies, agents or brokers can make money in the form of commission by facilitating the exchange of property among the buyer and the seller.

Means of Earning Through Real Estate

• Best Asset for Family
• Saving/Protecting our Money
• Financial Security
• Best Appreciation
• Rental Income
• Self Image and Pride
• Best Investment comparing to Stock Market

Investment in real estate can prove to be beneficial in the long run. If done wisely, it may generate lucrative returns.

The advantages of pooling money in real estate are as follows:

• Hedge Against Inflation: Unlike other assets, real estate is not adversely affected by inflation. Instead, its value and income increase with the rising economy.
• Rent Pays Off for Mortgage: Residential and commercial properties are the only assets which have the capability of generating income through rentals to pay off the interest on their mortgage.
• Stable Income: It can be seen as the most significant source of generating passive income. The investors can rent out their property to ensure regular and steady cash inflow.
• Tax Benefits: Real estate investors relish tax exemptions on the rental income up to a specific limit. Even the tax rates for such investments when made for the long term, are quite low.
• Financial Security: As we know that putting money in real estate is a long term investment. The investor has the possession of a physical asset, hence providing financial security to the person.
• Value Appreciation: Real estate investment is the purchase of property which encounters capital appreciation in the long run.

Reasons for Failure in Real Estate Investing

If not done wisely, real estate investment may even lead to poor returns or depreciation of the investment value.

Following are some of the primary reasons for which the real estate investing goes wrong:

• Lack of Knowledge: Before investing in real estate, one must have ample knowledge and information about the project he or she is planning to spend in. Most of the investors fail to analyze the right time of investment or potential of the property and are unable to generate good returns on their sum.
• Poor Management: Buying of a suitable property or real estate project as an investment is an art. But the investor needs to equally pay attention towards the management and maintenance of that property, contractors, budget and tenants. In the case of a real estate which is poorly managed, the returns may deplete.
• False Calculation: Real estate investing requires a calculative approach and mathematical skills to determine the future profitability of a project. Sometimes, investors lack these particular skills and fund in less beneficial projects.
• Giving Up Early: One of the most common mistakes made by an impatient investor is expecting a high return from a real estate investment in a short period. And if it does not happen, they lose hope and give up easily. Such people need to understand that these investments yield high returns in the long run.

Tips for Investing in Real Estate

Investing in real estate is a long term approach and yields high profit in future at a low-risk level. These investment decisions are irreversible.

Therefore, the following tips will help you in making real estate investments even with minimal capital:

Collaboration or Partnership

If an investor lacks sufficient money for investing in a property which can prove to be a cash cow in future; he or she can convince a friend, family member or any other known person to invest in a partnership.

CMDA stands for Chennai Metropolitan Development Authority. But recognising the need for a Planning Authority in the State formation in 1974.

FUNCTIONS

The functions of the Chennai Metropolitan Development Authority are:

• To carry out a survey of the Chennai Metropolitan planning area and prepare reports on the surveys so carried out.
• To prepare a Master Plan or Detailed Development Plan or New Town development Plan as the case may be for the Chennai Metropolitan planning Area.
• To prepare an existing land use map and such other maps as may be necessary for the purpose of preparing any development plan.
• To cause to be carried out such works as are contemplated in any development plan.
• To designate the whole of Chennai Metropolitan planning area or any part thereof within its jurisdiction as a new town and toper form the following function viz.
  • To prepare a New Town development plan for the area concerned , and
  • To secure the laying out and development of the new town in accordance with the New Town development plan.
• To perform such other functions as may be entrusted to it by the Government.
  • The Chennai Metropolitan Development Authority may by order, entrust to any local authority or other Authority as may be specified in such order, the work of execution any development plan prepared by it.
  • The Chennai Metropolitan Development Authority may by order, authorize any local authority or other authority as may be specified in such order , to exercise any of the power vested in by or under the Town and Country Planning Act -1971 and may in like manner withdraw such authority and the exercise of any power delegated in this behalf shall be subject to such restrictions and conditions as may be specified in such order.

DTCP means Directorate of Town & Country Planning. Except,Chennai metropolitan area where CMDA is approving the layouts of housing, institutional & industrial layouts beyond 1 hectare extents all other places in Tamilnadu. DTCP is the authority to approve such developments.

Role of DTCP

The DTCP is an exclusive organization for urban planning. The DTCP which is a Town Planning Agency has the authority to develop and update Master Plans for an area under their jurisdiction. Master Plans are important documents. Master Plans identify the “usage” for which land is to be used.

What is DTCP? What are its functions?

Directorate of Town & Country Planning (DTCP) is a government body. The organisation plans and provides technical support for other government bodies with respect to the development of cities, towns and villages. The functions of DTCP are –

• Conducting surveys, both physical and socio-economical. It is also responsible for preparing master plans for the development of cities, towns and villages and obtaining approval from the state government for the same.
• Preparation of socio and civic schemes such as town extension, development and improvement, rehabilitation, ashraya schemes etc.
• Offering technical assistance to Tamilnadu State Town and Country Planning Board. Besides, DTCP also assists the Urban Development Authorities in plan preparation, implementation and enforcement under KTCP act of 1961.
• Assisting other government bodies like Housing Board, Industrial Areas Development Board and Slum Clearance Board among others.
• Approving design of layout plans for private organisation, individuals and government bodies.
• Providing an opinion on the conversion of agricultural land to non-agricultural land for other purposes to the Revenue Department.
• Devising safe traffic management systems, systematically and efficiently.
• Preparing guidelines for the conservation of heritage precincts and formation of heritage regulations.

The Real Estate Regulation and Development Act, 2016 (RERA) is an Act passed by the Indian Parliament. The RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector. The Rajya Sabha passed the RERA bill on March 10, 2016, followed by the Lok Sabha on March 15, 2016 and it came into force from May 1, 2016. 59 of its 92 sections were notified on May 1, 2016 and the remaining provisions came into force from May 1, 2017. Under the Act, the central and state governments, are required to notify their own rules under the Act, six months, on the basis of the model rules framed under the central Act.

Why RERA?

For long, home buyers have complained that real estate transactions were lopsided and heavily in favour of the developers. RERA and the government’s model code, aim to create a more equitable and fair transaction between the seller and the buyer of properties, especially in the primary market. RERA, it is hoped, will make real estate purchase simpler, by bringing in better accountability and transparency, provided that states do not dilute the provisions and the spirit of the central act. The RERA will give the Indian real estate industry its first regulator. The Real Estate Act makes it mandatory for each state and union territory, to form its own regulator and frame the rules that will govern the functioning of the regulator.

How will RERA impact home buyers

• Informing allottees about any minor addition or alteration.
• Consent of 2/3rd allottees about any other addition or alteration.
• No launch or advertisement before registration with RERA
• Consent of 2/3rd allottees for transferring majority rights to 3rd party.
• Sharing information project plan, layout, government approvals, land title status, sub-contractors.
• Increased assertion on the timely completion of projects and delivery to the consumer.
• An increase in the quality of construction due to a defect liability period of five years.
• Formation of RWA within specified time or 3 months after majority of units have been sold.

RERA definition of carpet area

The area of a property is often calculated in three different ways – carpet area, built-up area and super built-up area. Hence, when it comes to buying a property, this can leads to a lot of disconnect, between what you pay and what you actually get. Gautam Chatterjee, Maharashtra RERA chairman, explains that “It is now mandatory for the developers of all ongoing projects, to disclose the (i.e., the area within four walls). This includes usable spaces, like kitchen and toilets. This imparts clarity, which was not the case earlier.” According to the RERA, carpet area is defined as ‘the net usable floor area of an apartment, excluding the area covered by the external walls, areas under services shafts, exclusive balcony or verandah area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment’. Rahul Shah, CEO of Sumer Group, points out that “As per the RERA guidelines, a builder must disclose the exact carpet area, so that a customer knows what he is paying for. However, the act does not make it mandatory for the builders, to sell a flat on the basis of carpet area.”

Impact of RERA on real estate industry

• Initial backlog.
• Increased project cost.
• Tight liquidity.
• Rise in cost of capital.
• Consolidation.
• Increase in project launch time.

Initially, a lot of work is to be done to get the existing and new project registered. Details such as status of each project executed in last 5 years, promoter details, detailed execution plans, etc., needs to be prepared. With the advent of RERA, specialised forums such as the State Real Estate Regulatory Authority and the Real Estate Appellate Tribunal, will be established for the resolution of disputes pertaining to home buying and the aggrieved party will have no recourse to other consumer forums and civil courts, on such matters. While the RERA sets the groundwork for fast-tracking dispute resolution, the litmus test for its success, will depend on the timely setting up of these new dispute resolution bodies and how these disputes are resolved expeditiously with a degree of finality.

Tamil Nadu RERA

The Tamil Nadu RERA Rules were notified on June 22, 2017. TNRERA has jurisdiction over Tamil Nadu as well as Andaman and Nicobar Islands. Exclusion/inclusion of projects for registration depends on whether they lie within the Chennai Metropolitan Area (CMA) or outside the CMA, among other factors.

Which projects come under RERA

• Commercial and residential projects including plotted development.
• Projects measuring more than 500 sq mts or 8 units.
• Projects without Completion Certificate, before commencement of the Act.
• The project is only for the purpose of renovation / repair / re-development which does not involve re-allotment and marketing, advertising, selling or new allotment of any apartments, plot or building in the real estate project, will not come under RERA.
• Each phase is to be treated as standalone real estate project requiring fresh registration.

How can a builder be RERA compliant

• Project registration.
• Advertisement.
• Withdrawal – POC method.
• Website updation/ Disclosures.
• Carpet area.
• Alteration in project – approval of 2/3 allottees.
• Project accounts – Audit.
• 70% of the funds collected from allottees needs to be deposited in the project account. Withdrawals to cover construction and land cost.
• Withdrawals to be in proportion to the percentage completion method.
• Withdrawal to be certified by an engineer, architect, and CA.
• Provision for RERA to freeze project bank accounts upon non-compliance.
• Interest on delay will be same for customer and promoter.

What information does a builder need to provide under RERA

• Number, type and carpet area of apartments.
• Consent from affected allottees for any major addition or alteration.
• Quarterly updating of RERA website with details such as unsold inventory and pending approvals.
• Project completion time frame.
• No false statements or commitments in advertisement.
• No arbitrary cancellation of units by promoter.

How to register projects under RERA

• Authenticated copy of all approvals, commencement certificate, sanctioned plan, layout plan, specification, plan of development work, proposed facilities, Proforma allotment letter, agreement for sale and conveyance deed to be given when
• Applying for project registration with RERA.
• Mandatory registration of new and existing projects with RERA before launch.
• Registration of agents/brokers with RERA.
• Dispute resolution within 6 months at RERA and RERA appellate tribunals.
• Separate registration of different phases of a single projects.
• Developers to share details of projects launched in last 5 years with status and reason for delay with RERA.
• Timely updating of RERA website.
• Maximum 1 year extension in case of delay due to no fault of developer.
• Annual audit of project accounts by a CA.
• Conveyance deed for common area in favour of RWA.
• Construction and land title insurance.
• Project completion time period.

How will RERA impact real estate agents

Under the Real Estate (Regulation and Development) Act (RERA), real estate agents will need to register themselves, to be able to facilitate a transaction. The broker segment in India, is estimated to be a USD 4 billion industry, with an estimated 5,00,000 to 9,00,000 brokers. However, it has traditionally been unorganised and unregulated. “It will bring a lot of accountability in the industry and the ones who believe in professional and transparent business, will reap all the benefits. Now, the agents will have a much larger and responsible role to perform, as they will have to disclose all the appropriate information to the customer and even help them chose a RERA-compliant developer,” says Sam Chopra, founder and chairman of RE/MAX India. With RERA in force, brokers cannot promise any amenities or services that are not mentioned in the documents. Moreover, they will have to provide all information and documents to the home buyers, at the time of booking. Consequently, RERA is likely to filter out the inexperienced, unprofessional, fly-by-night operators, as brokers not following the guidelines will face hefty penalty or jail or both.

How to file a complaint under RERA

Market situation after one year of RERA

• There have been fewer project launches and the focus has been on execution.
• Developers have tried to adhere to compliances, to avoid litigation.
• Relaxed delivery timelines for existing projects has granted developers an escape window.
• The market is yet to witness any landmark judgement that could set a precedent.

Block Development Office (BDO) is the department in charge of the development and activities of a block (block is a district sub-division). Block Development Office also monitor the implementation of all the programs related to planning and development of the blocks.

A flat is the British English equivalent of the word apartment. A flat is a single-family suite of rooms including a kitchen and at least one bathroom situated in a building with multiple such suites, a flat is generally a rental property. The word flat meaning an apartment comes from the Old English word flett, which means floor, a dwelling. Occasionally, one sees the word flat used in North America to give a more upscale feeling to the property available for rent, while in Britain one occasionally sees the word apartment to indicate that the rental property in question is luxurious.

Things to notice while purchasing flats.

What are the details to be looked into while purchasing a New or Resale flat?

• Type of Flats ( Budget / Medium / Luxury Quality of Construction).
• Size of Flats ( Carpet Area / Build Up Area & Quality of Construction ) Super Build Up Area.
• UDS Area / Value and other common facilities.
• Market Rate and Other Charges.
• Near By Transport and Life Style facilities.
• School and Collage.
• Builder / Seller Offer ( Negotiable).
• Legal Documents Approvals / Deviations / Bank Loan Tie – Up.
• P.M Housing Loan Scheme Subsidy.
• Number of Car, Two Wheeler Parking , Drainage and other Lifestyle Facilites inside the campus .

Find your requirements while purchase on New or Resale Flats , Check your requirement : -

• 1 , 2 , 3 , 4 BHK.
• Budget ( Own Contribution and Bank Loan ).
• Ground Water Source ( or ) Metro Water ( If you have a water issue then it will be a problem ever ).
• Rooms Internal Modification.
• Safety Fitting , Painting , Pest Control , Interior.
• Project Hand Over Date ( If under construction ).

RESIDENTIAL FLATS OF CARPET AREA, BUILDUP AREA, SUPER BUILDUP AREA

Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment. Built up Area is the carpet area plus the thickness of outer walls and the balcony.

Flats are generally priced on the basis of the area. However, the actual usable area of the flat may differ from the one you are charged for, or, the saleable area. The difference between the useable and saleable areas is a result of the space included in the calculation. Some of the commonly used area calculations are:

CARPET AREA

This is the net usable area measured wall to wall, from the inner faces of walls. Simply put, it is the area in a flat which can be covered by carpeting. Some builders may add half the actual area of a terrace or dry areas while calculating the total carpet area. Others may treat these spaces like internal rooms and consider the entire area..

BUILT-UP AREA

This is the gross area of a flat. Besides the carpet area, it includes the space covered by the wall thickness and ducts. Generally, it is 10-15 per cent more than the carpet area of the flat.

SUPER BUILT-UP AREA

The current trend is to consider this as the saleable area. It is calculated by adding the markup for common spaces to the built-up area. These common spaces include the ones on the floor (lifts, staircases etc) and those in the building (entrance lobby, electrical room, pump room, flower beds etc). Basically, it includes all the common amenities that are built, but not directly charged to the customer. Parking space is excluded from this calculation and is typically charged for separately.Ideally, the area of the common spaces should be calculated and added proportionately to each flat. However, this practice is rarely followed. As a thumb rule, most builders take 1.25 as the multiplying factor to calculate super built up area, multiplying the carpet area by 1.25. This would increase the total saleable area by approximately 25 per cent.This percentage is also commonly known as ‘loading’. Most builders quote loading figures while calculating the saleable area. For example, say the carpet area of your flat is 500 square feet. The builder may add loading of about 30 per cent. This means that have to pay for 650 square feet, in spite of using only 500 square feet.

Since there is no written rule with regards to loading, on occasions, it could even be as high as 50-60 per cent. This implies that a 1,000 sq ft flat (super built up) could have a carpet area of barely 500-600 sq ft. As a result, home owners can find themselves in a dingy flat in spite of paying a high price. Builders usually justify such high loads on the basis of amenities provided. Thus, it would be higher for larger schemes, where more space is given to amenities and common areas as compared to small projects without much frills.

There are many types of Bank Loans Available in National Sector/NBFC. Banks With Different Interest Rates For Housing and Plot Loans Starting with 7.9% to 12.5%.P.A.

• HL - Housing Loan
• ML - Mortgage Loan
• TOL - Take Over Loan
• BT - Balance Transfer
• PL - Plot Loan
• CF - Commercial Funding
• PF - Project Funding-12% (scrow Account)

P.MAY Scheme:- (Pradham Mantri Awas Yojana Scheme)

Only will be Lady (2,67,000/-) Loan Interest Subsidy will be given by the Bank

• Annual Income
• Middle
• Lower
• Eligible after 2017 up to March 31st 2022

Flat Details:-

Type Of Flats:- (1,2,3,4 BHK)

Regular Flat, Penthouse, Housing Complex, Gated Community Projects.

FLOATING INTEREST

A floating interest rate refers to a variable interest rate that changes over the duration of the debt obligation. It is the opposite of a fixed interest rate, where the interest rate remains constant the

The following are the benefits of a variable interest rate: oughout the life of the debt. Loans, such as residential mortgages, can be acquired at both fixed interest rates as well as at floating interest rates that periodically adjust per interest rate market conditions.

Uses of Floating Interest Rate

There are many uses for a variable interest rate. Some of the most common examples are:

• Floating interest rates are used most commonly in mortgage loans. A reference rate or index is followed, with the floating rate calculated as, for example, “the prime rate plus 1%”.
• Credit card companies may also offer floating interest rates. Again, the floating interest rate charged by the bank is usually the prime rate plus a certain spread.
• Floating rate loans are common in the banking industry for large corporate customers. The total rate paid by the customer is decided by adding (or, in rare cases, subtracting) a spread or margin to a specified base rate.

Advantages of Floating Interest Rate

• Generally, floating interest rates are lower compared to the fixed ones, hence, helping in reducing the overall cost of borrowing for the debtor.
• There is always a chance of unexpected gains. With higher risk also comes the prospect of future gains. The borrower will enjoy a benefit if interest rates decline, because the floating rate on his loan will go down. The lender will enjoy additional profit if interest rates rise, because he can then raise the floating rate charged to the borrower.

Disadvantages of Floating Interest Rate

The following are the potential disadvantages of a variable interest rate loan

• The interest rate depends largely on market situations which can prove to be dynamic and unpredictable. Hence, the interest rate may increase to a point that the loan may become difficult to repay.
• The unpredictability of interest rate changes makes budgeting more difficult for the borrower. It also makes it harder for the lender to accurately forecast future cash flows.
• In times of unfavorable market conditions, financial institutions try to play it safe by putting the burden on customers. They will charge high premiums over the benchmark rate, ultimately affecting the pockets of borrowers.

FIXED INTEREST RATE

A fixed interest rate is an unchanging rate charged on a liability, such as a loan or mortgage. It might apply during the entire term of the loan or for just part of the term, but it remains the same throughout a set period. Mortgages can have multiple interest-rate options, including one that combines a fixed rate for some portion of the term and an adjustable rate for the balance. These are referred to as “hybrids.”

Understanding Fixed Interest Rates

A fixed interest rate is attractive to borrowers who don’t want their interest rates fluctuating over the term of their loans, potentially increasing their interest expenses and, by extension, their mortgage payments. This type of rate avoids the risk that comes with a floating or variable interest rate, in which the rate payable on a debt obligation can vary depending on a benchmark interest rate or index, sometimes unexpectedly.

Advantages and Disadvantages of Fixed Interest Rates

Fixed rates are typically higher than adjustable rates. Loans with adjustable or variable rates usually offer lower introductory rates than fixed-rate loans, making these loans more appealing than fixed-rate loans when interest rates are high.

Borrowers are more likely to opt for fixed interest rates during periods of low interest rates when locking in the rate is particularly beneficial. The opportunity cost is still much less than during periods of high interest rates if interest rates go lower.

RECURRING DEPOSIT

A recurring deposit is a special kind of term deposit offered by banks which help people with regular incomes to deposit a fixed amount every month into their recurring deposit account and earn interest at the rate applicable to fixed deposits.[1] It is similar to making fixed deposits of a certain amount in monthly installments. This deposit matures on a specific date in the future along with all the deposits made every month. Recurring deposit schemes allow customers an opportunity to build up their savings through regular monthly deposits of a fixed sum over a fixed period of time. The minimum period of a recurring deposit is six months and the maximum is ten years.[2]

The recurring deposit can be funded by standing instructions which are the instructions by the customer to the bank to withdraw a certain sum of money from his savings/current account and credit to the recurring deposit account.

When the recurring deposit account is opened, the maturity value is indicated to the customer assuming that the monthly installments will be paid regularly on due dates. If any installment is delayed, the interest payable in the account will be reduced and will not be sufficient to reach the maturity value. Therefore, the difference in interest will be deducted from the maturity value as a penalty. The rate of penalty will be fixed upfront. Interest is compounded on quarterly basis in recurring deposits.

One can avail loans against the collateral of a recurring deposit up to 80 to 90% of the deposit value.

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