Showing posts with label RENT. Show all posts
Showing posts with label RENT. Show all posts

Thursday, August 6, 2020

What are Implications of death of home loan borrower?

Buying a grand house is every Indian's dream. While earlier most people bought a house after their retirement, modern people can become a homeowner in the early stage of life. This has been possible due to relaxation in home loan policies. In India, many people have successfully purchased their first home under PMAY. The scheme provides subsidy on interest, which makes loan repayment easier. But this does not mean that you will get any debt forgiveness.

Among the various reasons for nonpayment of a home loan, the borrower's death is the most common cause. The common question for every home loan borrower is what will happen to their home in case of their death. Will it force his family to vacate the house as the bank immediately takes over the property? Or, will all the installments of his home loan go in vain upon his death?

Well, before taking this topic further, let us explore the different categories of loans and the provision of loan repayment in each case.

1) Joint Loan - This type of home loan is taken jointly by two borrowers. If the primary borrower dies, the right to repay the home loan is given to another borrower. However, if the surviving co-applicant refuses to repay the loan balance, the lending bank may seek legal recourse in the civil court or the Debt Recovery Tribunal.

2) Secured loan- A secured loan is one in which the borrower pledges certain assets in case of failure to repay the loan. If the borrower of the secured loan dies, his / her spouse or heir will have to inform the bank about the same by presenting the death certificate.

In this case, the bank cannot take any coercive measures to force the surviving spouse or heir to repay the debt. In addition, for the recovery or enforcement of security, it must comply with the law.

3) Unsecured loan- In this case, the lending bank cannot claim unpaid loan from the surviving borrower or heir of the deceased borrower. However if the deceased borrower has left any property in the name of his partner or heir, the creditor can recover the outstanding amount by selling them after initiating appropriate legal action.

We conclude that things do not change much by the borrower's death. The loan still exists and has to be repaid by a co-partner, spouse or legal heir. The family of the deceased borrower can handle the mortgage in several ways. Here, we have mentioned some simple tips in this regard.

Tips 1- Repay the loan as per your convenience

The survivors can inform the bank about the demise of the borrower and continue to repay the loan. It can be difficult to arrange money. But in that case, you should inform the bank about your current financial situation. Most lenders are supportive of their customers and will provide them with suitable suggestions for repaying the mortgage.

Tips 2- Repayment and Refinance

The legal heirs of the deceased borrower can refinance the loan or they can repay the loan in full.

Tip 3- Sell or rent a house

If the spouse or heir has no regular source of income to repay the loan, they can resell or rent the home. Money received in this way can be used to repay the loan.

Tip 4- allow the bank to occupy the property

The survivor may allow the bank to recover the loan by selling the house at auction. If the immovable property is more than the debt owed on it, the difference from the sale proceeds will be transferred to the heirs.

Friday, July 3, 2020

Is it wise to invest in the Indian real estate market in 2020-2021?


Finance Minister, Nirmala Sitharaman presented the Union Budget 2020-21 on 1 February. Highlights of the budget for the real estate sector are as follows:

Deductions on affordable housing were allowed on housing loans sanctioned on or before March 31, 2020. In order to ensure that more people take advantage of this benefit and to pursue affordable housing, the date of loan approval has been proposed to be extended by 1 year. To boost the supply of affordable homes in the country, a tax holiday is being provided on the profits earned by the developers of the affordable housing project till 31 March 2020.

Currently in real estate transactions, when taxing income from capital gains, business profits, and other sources, if the consideration value is less than the 5% circle rate, the difference is counted as income for both the buyer and seller. To reduce the difficulty in real estate transactions and provide relief to the sector, it has been proposed that the limit be increased from 5% to 10%.

An investment of Rs 100 crore will be made on infrastructure in the next 5 years in various sectors like housing, infrastructure, energy, healthcare, educational institutions, transport, logistics and warehousing, irrigation projects etc.

The year 2019 was a period of many highs and lows for the Indian real estate market. The ongoing crisis resulted in a decrease in liquidity and a slower pace of sales improvement. However, on the positive end, the successful launch of India's first real estate investment trust (REIT) opened up new avenues for investment, while several positive government initiatives provided much needed relief to the sector. 

According to research, the housing sale price of India's top 9 listed players reached in the 2nd and 3rd quarters of 2019, an increase of 5%. 2019 saw a 4–5% annual increase in housing sales with over 2.58 lakh homes sold during the year. The new housing launches in 2019 saw 18-20% annual growth and developers are expecting sustained efforts of the central government such as additional cuts on loan interest, GST rate cuts, alternative investment funds for stalled projects and credit guarantee scheme changes in the sector will be strengthened.

Wednesday, June 24, 2020

You Should Know Before Buying Vastu Compliant House


The ancient science of Indian architecture, Vastu Shastra places great emphasis in choosing the right direction of the house, the size of the plot, air and ventilation to help the residents live a happy, healthy and prosperous life. Although most Indians still look for Vastu-compliant homes, the truth is that not all apartments follow the principles of Vastu Shastra. Rather, real estate developers in India only focus on optimal use of space. But many builders promise to provide architectural-friendly flats. Well, your decision to buy a house should not be influenced by attractive advertisements by real estate developers. Rather, you should flat check whether everything is designed perfectly. In this blog, we've shared some excellent tips to help you test whether a flat is Vastu-compliant.

1) Check the entrance or Main door.


By the way, most people think that the north-eastern entrance is the best, but there are actually 32 entrances in Vastu Shastra. And each direction has its own importance. East, west and north-facing entrances are always good. But south facing doors can either be extremely beneficial for housework.

· The main gate should not be in the southwest, northwest and southeast.
· While most Vastu experts suggest that northeast entrance is most beneficial.
· Others say that it can be extremely dangerous in some cases.
· The main gate should not be placed directly in front of the lift or stairway.

2) Kitchen Location.


· The kitchen should be in the right direction to balance the fire element of the house. Fire signifies wealth and cash flow.
· Having a kitchen in the north-east and south-west areas should be avoided.
· Vastu Shastra suggests that the kitchen should be kept in the south-east direction. However, this may not always be possible in modern homes. In such a case, make sure that the gas burner is in the south, west or northwest corner of the flat. And, while cooking, you should face east or north.
· The kitchen should not have black or blue tiles, floors or slabs. And, avoid granite under the gas burner. A marble slab is highly recommended.
· The cabinet should be placed on the southern wall.

3) The rooms.


· The master bedroom should be in the southwestern direction of the flat. And, the children's room should be in the east or north direction.
· The living room should be either in the east area or central area of ​​the house.
· There should be no bedroom between the east and south-east area of ​​the house as it may affect the health of family members.
· Bedrooms on the southern and western side are to be used by sons and are perfect for daughters who are on the northwest side.

4) Toilet or Bathroom.


· Modern homes have one or more toilets, which are connected to a bedroom or living room. Ideally, the washroom should be in the northwest direction. And, toilets in the north, north-east, south-east, and south-west directions are considered inauspicious.
· The bathroom or toilet door should not be faced in the kitchen.

General points you should know when purchasing property:-


· The land on which your apartment is built must be either rectangular or square in shape. Irregular shaped plots are considered inauspicious.
· There should be no pond near the south and west direction from the house. You should check if there is any swimming pool in these directions of your flat.
· Avoid balconies or courtyards in the western or southern direction.
· Apartments in red, black or sky colors should be avoided as these colors attract negative energy.
· The puja room should be either in the northern or eastern direction.
· According to the guidelines of Vastu Shastra, the ladder should not be in the north-east corner as it troubles the residents.
· The total number of doors and windows should be 2,4, 6 etc.
· All the doors of the flat should open inwards.

Saturday, June 6, 2020

Should know about payment of guest accommodation agreement


Paying guest accommodation is becoming a preferred option among students and young employees. Staying away from his hometown, a Paying guest provides a homey atmosphere to flourish. Students look for excellent facilities, good food, high security and many other facilities when choosing paying guest accommodation in various cities, but they often ignore the importance of signing a Paying Guest Accommodation Agreement with the landlord. By doing this, they create sufficient scope to pay huge deposits and to rent for various facilities. In addition, they may end up in a variety of landlord-tenant conflicts, with no valid way of proving their point. Before digging deeper on the importance of a paying guest housing agreement, let us understand the important difference between a paying guest and a tenant.

Paying Guest vs Tenant


As a tenant one gets a separate flat or a different part of the rented house. And, the landlord is not allowed to enter that premises, without the permission of the tenant. On the other hand, a paying guest resides within the landlord's premises and can share many common facilities with him. Now, as the paying guest is not a tenant, he / she cannot enjoy all the privileges that have been given to a tenant under the law. But the government has provided special provisions for paying guests.

The Urban Development Department has come forward to regulate the functioning of payment of guest accommodation across the state, making their registration with the designated officer mandatory. In addition to determining registration with fees, the rules also specify the number of guests who can stay at a Paying Guest. In addition, the law also makes it mandatory for a landlord to sign a paying guest agreement.

Benefits of signing a Paying GuestAgreement


Once you have selected a Paying Guest, the next thing you need to do is a Paying Guest Agreement with the landlord. It may be possible that your landlord may not be convinced about entering into a legal agreement. If this is the case, you should convince them of the benefits of signing this agreement. A well prepared Paying Guest settlement protects both the owner and the guest paying against future legal battles. It also ensures that either party does not deviate from the rules that were previously agreed upon.

The Paying Guest Agreement also serves as proof of local address for the paying guest. Also, it will provide proof of the rent you are paying to the landlord and the facilities he is obliged to provide to you.

How to sign a Paying Guest Agreement?


A paying guest agreement must be documented on stamp paper. As long as the agreement is signed on the stamp paper, it does not need to be notarized. Remember that if there is no agreement on the stamp paper, it cannot be used as a document of proof in the courts in case of disputes.

The agreement must contain the name and permanent address of both the landlord and the paying guest. It should be signed by both the parties and two witnesses.
Also, the agreement should provide detailed information about facilities, rent, security deposit and the code of conduct expected from both parties.

Since the Paying Guest Agreementis a license to live and use the premises only, it can be made for 1 year, 1 month, 6 months or any period.

Friday, May 22, 2020

Trends those are likely to shape the real estate market in 2020

2019 was a relatively challenging year for Indian real estate, which faced a slowdown in the sector. Nevertheless, the recession made Indian developers aware of where they stand and the drawbacks are to blame. As a result, industry experts expected, in 2020, to adapt to several changes in terms of preference, demographics, technology and policies, in a bid to boost buyer sentiment and promote affordable housing sales.

Even with the slowdown in the sector, sales showed some signs of improvement in Q3 and Q4 of FY19, due to redemptions made by developers in their product offering, based on an understanding of consumer demand. New age developments are more suitable for millennial, which are actually the target group of many affordable housing developers,” says Dinesh Doshi, Managing Committee Member, CREDAI MCHI, Raigad.

Real estate to operate the end user


The market is becoming increasingly end user driven. “While the number of real estate investors is already small, this segment is shrinking further. In the coming year, it seems that almost all of the demand will come from end users, with the supply of products targeted primarily to them, says Mayur Shah, Managing Director, Marathon Realty.

Demand to increase compact housing, co-working and commercial space


The demand for 'compact housing' is likely to increase a great deal across the country. In different regions, homes whose price is right have the potential to elicit good feedback from consumers. Developers will address this challenge, going further,” says Shah. The healthy demand for co-working spaces seen in 2019 is likely to continue until 2020. The growth of the commercial real estate segment, which is attracting foreign investments, will also help in improving the economy.


Heavy Dependence Technology


New-age customers rely heavily on technology and social media as they enter the housing market. Thus, it will become imperative for developers to adopt and leverage technology, to engage with customers, to enhance the experience at every point of view and to create positive perceptions about the field. Adoption of technology will also increase efficiency, quality and transparency, which will lead to change in the sector, ” he explains.

Challenges facing real estate in 2020


The industry is seeking support from the government, to overcome some challenges and to emerge from the recession. While the government has taken several steps so far, continuous reforms are necessary in many key areas.
·     Industry status and single-window clearances
·     Funding from banks
·     Financial bailout
·     GST burden and input tax credits
·     High stamp duty charges