Imperia Structures Ltd. Blog | Indian Real Estate Market Pulse , tips for Investment in Reality Sector

Home Loan Interest

Good News For Home Buyers

Buying a house has always represented a big investment not only in terms of the property value, but also because of the long term for which you have to repay the home loan.  Therefore, it involves proper planning to ensure that there are no hiccups in the repayment of the loan and your asset remains yours. The big challlege in last few years has been the rising rate of interest which has made buying property buying even more difficult. What seems to be an attractive rate of interest on paper, most loan takers end up paying a amount much higher than the initial value of theor property in form of of interest on their home loans. For better understanding, let’s consider the following example. Mr. T has taken a loan of 20 Lakhs @ 10% with a tenure of 20 years. He pays EMI will come out to be Rs. 19,300/- per month or Rs. 2,31,600/- per annum. As per the loan amortization schedule, Rs. 1,98,510/- will go towards interest repayment while the remaining Rs. 33,100/- will be towards the […]

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Property Circle Rates

Circle rate is an important term that you should be aware of while buying or selling property in an area. It is defined as the minimum rate at which the sale and purchase of a property in a particular area can take place. Circle rates are determined by the state government’s revenue departments or the state’s development authorities and serves as a reference point to determine the actual property prices in that region. Circle rates also underline that the sale and purchase of a property has to be done at arm’s length principle. Being a yardstick of actual property rates, circle rates invariably affect the stamp duty and registrations costs of the property as well. How does it differ from the market price? While circle rate and market rate are connected, circle rates have very little bearing on the actual market rate of the property. As is evident by now, market rate is the actual market price of the property that depends on the expectation of the seller (individual or builder) and the interest of the buyer. Circle rates are […]

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How Does Your House Come To Your Protection

Ever faced a situation where you needed some additional funds – for buying a new car; wedding in the family; or for business expansion… ? Did you end up taking a high-interest a personal loan? Or had to sell some small asset? Well it needn’t be so anymore, if you own a house or any other property. LAP: Making your property a liquid asset. Taking a LAP (or Loan against Property) is one of the cheapest and arguably the most prudent way to utilize your asset to finance your needs. In LAP, the loan amount sanctioned is a specific percentage based on the value of the property. Other factors that help determine your eligibility are your income sources and your repayment track record of the existing loans you have. Amounts disbursed under LAP are transferred to your personal account and can therefore be utilized for any of the following purposes: – Funding higher education Marriage expenses Paying for high medical costs Investment or expansion in business Funding vacations Buying new car etc. Reduce your debt burden ; Consolidate with a […]

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Public-Private Partnership

- The Way Forward

Infrastructure is the cornerstone of a nation’s development and global standing and India is no exception to that ideology. Be it roads, highways, airports or real estate, the quality and magnitude of infrastructure is a key indicator of how well the country is progressing on a macro-economic level. Keeping that in mind, rapid execution of infrastructure projects becomes crucial. However, the lack of investment in the industry is a big roadblock that tends to slow down the whole process. This is where Public Private Partnerships come as a viable solution as they can be the catalysts to help revive the growth of infrastructure in India. What is PPP? The concept of PPP has never been very clearly defined. It is basically a partnership in which infrastructure projects that are under the mandate of the public sector will be executed using the capital provided by the private sector as per the contract signed by both the entities. Infrastructure in our country hasn’t been able to grow in tandem with the growth in economy. This is where the need for PPPs gets […]

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Financial Planning for your 20s

20s is the first phase of life where you start working and become financially independent. First job brings income and a freedom to spend like you never had before. With a low level of responsibility at this age, it is easy to get into the habit of unplanned spending and live life paycheque to paycheque, or as is oten seen, beyond your incomes While it is less likely to affect you at this time, it might be financially detrimental in the long run. Planning your finances might seem like a tedious task on the face of it, but it really isn’t that complex. It is about understanding the finances available and utilizing it in the best possible manner. “How to go about it?” While there is no one set way of financial discipline, here are a few tips that can play a significant role in good financial planning during your 20s: – Brush up your financial diction Before you decide to skip this suggestion, just read what follows. The Reserve Bank of India has mandated banks and financial institutions to […]

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Budget 2014-2015

Benefits for the real estate sector

Real estate has historically been on the periphery of Budget reforms for some time now. In that sense, the reforms announced by Finance Minister Mr. Arun Jaitley in the Union Budget 2014-15 have come as a breath of fresh air — something that the sector has welcomed with open arms. So what does the latest Budget do for real estate? And more importantly, how will these Real Estate sector reforms directly or indirectly help you in the growth of your wealth : – Lesser tax outgo As per the latest budget, the minimum slab for taxable income has increased from Rs. 2 Lakhs to Rs. 2.5 Lakhs for individuals below 60 years of age and from Rs. 2.5 Lakhs to Rs. 3 Lakhs for senior citizens. This essentially means that you will have an additional Rs. 5,000/- to Rs 15,000 available to you for paying the EMIs / installments towards your house. Paying a home loan? Save more on the interest component now. Up till now, the Government allowed exemption of up to Rs. 1.5 Lakhs under section 24B of […]

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NRI Home Loans

- Myth vs Reality

Averaging 15% annual capital appreciation per annum, investing in real estate in India has always been an attractive a proposition for NRIs, as it has been for resident Indians. In fact, the strengthing of the foreign currency against Indian rupees in recent years has played a starring role in attracting NRIs to Indian real estate – since they can build a high return asset in more economically manner. The other motivation is to have a place to call home and to maintain connect with one’s homeland. Even the banks in India have introduced progressively designed NRI Home Loans to make home buying easier for NRIs. However, the myths surrounding NRI home loans is a major hindrance for NRIs looking to take these loans. This table should help straighten things out: – MYTH REALITY As an NRI, you cannot apply for a joint home loan with a resident Indian. The truth is,  you can. However, the loan will be considered an NRI loan.That means that you will still be the primary applicant and the loan value will be determined on the […]

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