13 Hurdles to cross when you want to switch your home loan to another bank

February 2018

Be firm to your banker and convey your incapacity to visit the branch for closure and agree to all authorisation they may need.

When you realise that your current lender is not offering you the lowest rate available in the market or you need to switch your loan to another lender for some other reason, be sure of covering all the following aspects, as not knowing about these could jeopardise your plans and you may land up paying hefty charges.

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1. Ask for a foreclosure letter: Seeking this letter and been issued one to you is a proof that you have intimated your intention of closure of the loan with your current lender. As a resultant factor the lender gets an opportunity to retain your business by offering you a lower rate or a different feature that you might be interested in. So, not knowing what they want to offer may make you regret later. At the same time, the lender will not have an excuse of not to accept your closure amount, when the time comes stating it was not 'informed'.

2. Apart from foreclosure amount, it should mention daily interest: Sometimes the new bank takes a little longer to process and miss the foreclosure date. For example, if the letter states a due of X amount on November 30, 2017, the payment may get to reach the old lender on December 2, 2017. Now the interest of these two days are important. If there is even one rupee pending, the loan will not be closed. Hence, for the sake of calculating the exact amount on the day of closure, knowing the per day interest will help. Alternately, you can be prepared to pay this additional two days of interest from your own source of funds.

3. Check whether this loan is linked with any other: This home loan is associated and linked by the lender as a 'condition' to any other loan, then prepaying this may not release the title from the bank and that could be a big issue for the next lender. So, be very sure there are no strings attached. Here is an example, you took this home loan seven years ago and took another just a year back. While buying the second property you needed an amount which was not well-supported by the valuation report, and hence they considered the market value of the previous property, which is enhanced now and you have paid some principal already in last seven years, which made the second loan amount possible. So, both loans will be linked and one can't be closed.

4. Find out whether the co-borrower's consent is required: Some lender do make a lot of fuss and seek the signature of the co-borrower authorising the closure and sometime they even go to an extent of seeking a power of attorney from the co-borrower if he or she cannot be present in person during closure. Though it is not prevailing in most lenders and they accept the closure amount, no harm in being prepared as your co-borrower may live in some other city or may be traveling!

5. Do not forget to check on the process of transferring the original title papers: Although logically the original title should get transferred from one lender to the other, most lenders do send the documents back to the borrower. Losing the documents in transit is not uncommon and you need to know the tracking details when they do send by courier etc. Some lenders will insist that your personally visit their branch to collect the originals and you must know that it will be during your work hours causing you irritation. To top that, some lenders insist on visiting with co-borrower and failing which demand POA in favour of yourself to handover the originals to you. Better be ready.

6. Take an LOD again just to be sure all documents are safe: All MNC lenders issue the list of documents (LOD) soon after the loan is disbursed. But the private lenders do not issue any. In the first case, it is better to seek another one just prior to the switch, for above-mentioned reason. For the private lenders, it is better that you seek an LOD when you borrow and seek again when you are about to switch to make sure things are in same order.

7. Pre-plan a disbursement date with the new lender: Fix and discuss a date of disbursement with the new lender. You will avoid paying double interest in case you are traveling and the old lender is not accepting the payment from the new lender in your physical presence. These are just the tricks to make you feel frustrated and cancel your switch-plan, but be smart to decide on a date mutually with the new lender and close it on your own.

8. Inform the previous lender of the closing date in advance: In form of seeking foreclosure amount you have already given them a feel, but no harm in telling your relationship manager or co-ordinator in advance that you are coming on so and so date to close the loan. They will save themselves from the shock of loss of book volume and you will save a lot of time which they take harassing you and sending you from one counter to another.

9. Check for any pending amount from you: If there is any other charges payable, seek that information in advance and be ready to pay. Go with your cheque-book while closing the loan.

10. Do the previous lender accept closure amount from a third party: Sometimes, to avoid closing the loan a lender gets to these kind of activities and ask the borrower to come down to their branch, knowing you will not be able to make it. Surprisingly, the same lender never asked you to move out of your chair while extending the loan facility. You may not have time or intent to visit a branch, wait there in a long queue and you may want to send your office-boy or ask your loan agent to do it for you, but that may not be acceptable unless you have put an end to their expectation to meet you in person at their office. Be firm to them and convey your incapacity to visit for closure and agree to all authorisation they may need.

11. How many days will it take to close the loan after submission of the amount: Depositing the closure amount is not the end of your paying interest to the previous lender. Some lenders take 8-9 days to send the demand draft for clearance and show various futile clauses. Be firm in your instruction that they should bank the pay-order at the earliest and close the loan. Do not assume that they have closed it after you send them the DD.

12. When will you receive a ‘No Due Letter’ from the previous lender: In your busy work-life you will forget to get this one letter which may haunt you after five years when you want to borrow again. The lender might simply forget to post that information in credit bureau and you will not have any document to prove closure on that specific time. Going back to the earlier lender and making them change their report to credit companies will be tiresome and you may have lost good scoring opportunity by then.

13. What is the process of terminating the ECS: Almost all lenders debit your bank account for the EMI each month. There used to be a process of issuing post-dated cheques (PDC) but it is almost defunct now and ECS is issued. Remember to intimate your paying bank that you have closed down the loan (they may require the closure proof) to avoid paying EMI even after closure. This happens frequently as the previous lender forgets to pass on the instruction to their collections.

Hope the above input helps you to be better prepared.

Till then Happy Switching, Happy Foreclosing!!

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Source: moneycontrol.com

Stamp Duty and Tax On Gift Deed of Property

December 2017

Gifting is an act, through which a person voluntarily transfers certain rights in an asset to another person, without any consideration. Gifting of a house property, has certain income tax and stamp duty implications.

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LEGAL REQUIREMENTS FOR GIFT

As per the Transfer of Property Act, the transfer of a house property under a gift, has to be effected by a registered instrument/document, signed by or on behalf of the person gifting the property and should also be attested by at least two witnesses. The registrar shall ensure that proper stamp duty has been affixed on the gift deed/document when it is presented for registration. The amount of stamp duty and registration charges payable, with respect to a gift deed, are generally the same as in the case of a regular sale. However, if the gift deed is executed between some specified close relatives, some states provide concessions in stamp duty. For example, Maharashtra used to have a cap on stamp duty payable on gift of a residential or agricultural property to one’s spouse, children, grandchildren or wife of a son who has died, at Rs 200, till May 16, 2017. Now, the stamp duty applicable is three per cent of the market value of the transaction.

INCOME TAX IMPLICATION

According to income tax laws, the value of all the gifts received by a person during a year is fully exempt, as long as the total of such gifts does not exceed Rs 50,000 in a year. If the value of all the gifts taken together exceeds Rs 50,000, then, the aggregate of the gifts received become taxable without any threshold exemption. However, income tax laws also give a favourable treatment, to gifts between two close relatives. Consequently, the gift of any asset (whether movable or immovable) made to certain specified relatives, is fully exempt from tax in the hand of the recipient, without any upper limit. The list of close relatives includes parents, spouse, siblings, siblings of the spouse, lineal ascendants and descendants of the person and his/her spouse. The list also includes spouse of the abovementioned persons.

If the house property is received as a gift from a relative, the first incidence of tax will arise, when you sell the property. The cost for the purpose of income tax, shall be the taken as the cost that was paid for the property by any of the previous owners. The profits shall be treated as short-term or long-term, depending on whether the aggregate of your holding period as well as that of the previous owner who had actually paid for it, is more than 36 months or not.

If the holding period as computed above is less than 36 months, the profit accrued on the sale of such property, shall be treated as short-term and will be added to your regular income and taxed at the applicable slab rate. However, if the holding period is more than 36 months, you will get the benefit of indexation on the cost of the property, as well as the option to claim exemption from payment of 20% long-term capital gains tax, by investing in a residential house or in capital gains bonds of Rural Electrification Corporation (REC) or National Highway Authority of India (NHAI).

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Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: housing.com

Train Commute along Thane-Diva Stretch to get Colourful, Pleasant

December 14, 2017

THANE : Civic chief Sanjeev Jaiswal plans to colour the compound walls along the railway tracks between Thane and Diva with an aim to make the nearly 12km-long stretch a pleasing experience for commuters.

The decision comes nearly a week after heaps of garbage lying around the tracks reportedly led to the derailment of a freight wagon near Parsik hills. The plan will not just clear the mess around the tracks but also make it visually appealing for passengers crossing the stretch just like the experiment paid off in the city like the one at Pokhran 1, said officials.

A proposal will soon be readied for revamping the walls of houses and walls skirting the tracks along the Thane and Diva slow and fast stretch. As per the plans, the ‘paint a wall’ concept that was taken up along several roads in the city early this year will now be replicated, but on walls along the tracks with residents and artists contributing collectively to liven up the stretch with murals or theme paintings.

Experts and artists will be roped in to recreate pre-approved designs on the otherwise mundane looking walls of the houses and concrete boundaries. The civic body is likely to fund the expense incurred in the initiative, said officials.

“We want to give an identity to the areas and give a feel good look to passengers crossing the stretches. Presently, the areas are strewn with garbage giving a repulsive feel to commuters who should instead be given an opportunity to admire the city,” said an official.

Jaiswal, along with select experts, travelled by a local train between Thane and Diva on Tuesday to survey the area.

“A detailed survey will be undertaken and a plan of action readied for implementation within a month. We will be able to give a much deserved facelift to the stretch once the project is implemented,” said Jaiswal.

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Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: timesofindia.indiatimes.com

A Guide to Renting out Your Property

December 2017

If you are looking to earn rental income from a second or third home, here is a round-up of what you need to keep in mind before locking in the lease

Real estate has always been a lucrative investment option for Indians. Many people will invest in a second and third home to earn rental income. Here is what you need to about the risks involved in renting out your property.

Low rental yield: The returns from rental housing are not very high. “In most cities, the yield is barely 2-3%,” points out Sanjay Sharma, MD, Qubrex, a Gurgaon-based real estate consultancy. On the positive side, however, rental returns are inflation-adjusted. It is usually possible to revise the rent each year, unless there is a supply glut. Hence, the return on your historical cost, improves as time goes by.

Potential expenses: All repairs have to be undertaken by the landlord. If the house needs major repair, the cost can eat away a substantial portion of the income earned that year. The house also has to be painted every time a tenant vacates.

Vacancy risk: If the house remains vacant for a few months after the previous tenant has moved out, your cash flow gets disrupted.

Tenant issues: Difficult tenants may not pay rent on time. The problem assumes a serious proportion if payments are defaulted continuously. The tenant could also misuse the property, undertaking commercial activities in a residential unit, or even use it for illegal activities. The landlord should be watchful that the tenant pays the society’s maintenance charges and the utility bills, on time.

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FINDING THE RIGHT TENANT

Research: Before speaking to potential tenants, find out the current rental rate in the area to avoid quoting a rate that is out of sync. You can charge a higher rate only if you have expanded the area of the apartment or furnished the house.

Advertise: Post a flyer on the notice board of your housing society with the resident welfare association’s (RWA) permission. You may also inform local brokers. Many potential tenants approach them when looking for an apartment in an area. Another option is to list your property online.

Police verification: Once you have found a client, you will have to get police verification done. This has become mandatory. Download the verification form from the police department’s website. Fill it and submit it at the local police station along with the tenant’s proof of identity. The police will then conduct a background check and provide approval accordingly.

Rent agreement: This document, usually prepared by the real estate agent, must mention a few things explicitly. It must specify the start and end dates of the lease and the total period. The norm in the residential market is to have a lease period of 11 months. The agreement should also mention the rights and obligations of both, the landlord and the tenant in case one of them wants to terminate the lease before 11 months. The agreement should also state the date on which the rent will be paid. If the tenant is handing over post-dated cheques, it should mention the number of cheques and the repercussions if a cheque bounces. The rent agreement should also mention clearly who will be responsible for repairs. Usually, minor repairs are taken care of by the tenant.

Register the agreement: Get the rental agreement registered. The cost of stamp duty may have to be borne by the landlord, or it could be shared with the tenant. “The rent agreement will have greater validity in a court of law if it is registered and not just notarised,” points out Sujit Kumar, a Delhi-based high court lawyer.

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Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: housing.com

Perk Up the Passage at Home

December 2017

A passage in any home, need not be a dull space that is wasted. We look at how home owners can spruce up this space, with just a little creativity and imagination

Most houses have a corridor, which home owners can decorate using innovative ideas, to add a unique touch to the home. The walls of the passage, for example, can be used to create a memoir wall of one’s travels. “From collages made of boarding passes, colourful small maps and tickets, to postcards collected during your travels, you can use the wall to create a memory lane of sorts. You can also display inexpensive drawings and posters from street artists. One can also use the passage as a photo area, to hang pictures of the family – including joyous and serious photos that make you smile when you look at them,” suggests Lekha Gupta, senior architect, LAB (Language Architecture Body).

WAYS TO BRIGHTEN UP THE CORRIDORS

Passages are often dark, which makes the space appear small and unattractive. This can be easily solved, with some bright, coloured lamps and lanterns. “One can choose various indoor plants, to perk up the passage. Decorating with nature is fun and not at all expensive. You can place the plants in eclectic vases and pots, to add a theme to the area. An array of ornamental mirrors can be hung up, to pep up the area. One can go in for a bookshelf, to optimise the space. Wooden shelves that resemble trees and branches are a popular contemporary trend,” says Natasha Jain, co-founder of Bent Chair.

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OPTIMISING THE SPACE AVAILABLE IN THE PASSAGE

Most corridors are a maximum of four ft wide, out of which, one needs at least three ft as walking space, Gupta points out. “This leaves only one ft of free space and any furniture that has depth, will make the space cramped. Anyone living in cities, knows that every sq ft counts. Hence, while it may be tempting to put a shoe rack in that space, one should ensure that it does not obstruct movement. Alternatively, opt for a small rack or a lamp, or simple linear furniture. Or, opt for storage above the head level,” adds Gupta.

HOW TO USE THE PASSAGE AS A PLAY AREA

In homes that have children, you can opt for a pin board on the passage wall. This pin board can display various crafts like paintings, handmade cards and hand prints, all made by the children. The small passage linking rooms, can also be used as a play area. You can paint the walls with ‘magnetic’ paints and stick magnets on the walls. You can also paint a chess board, or a simple snake and ladder game on such a wall, to let the kids play.

USING THE PASSAGE, TO ADD A PERSONAL TOUCH TO THE HOME

“A message board, is another interesting way to utilise the space. In the age of tablets and smartphones, we rarely pick up a pen and paper,” says Gupta. From ‘to do’ messages or a simple ‘I love you’ scribbled on the board, to colourful posts, you can put up messages to read, whenever you are in the mood, adds Gupta.

Mahi Mehra, a Mumbai resident, maintains that the passage can serve as an accent area of the house. “I have a glamorous wooden trolley in the foyer, against a red wall. In the passage, I have a displayed pieces from our travel, like vintage sketches from London, plates from Greece, small porcelain teapots from China, painting from Jaipur and so on. These little memories add warmth to the house,” Mehra explains.

TO KNOW ABOUT REAL ESTATE PROJECTS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: housing.com

Author

Colour Therapy for your Home

December 2017

Colours have a profound effect on individuals and can affect us on a physical, emotional, mental and spiritual level. We look at how you can choose the right colours for your home, to create a positive and happy environment

Colour or chroma therapy is an alternative method of healing, through the use of colours. When we gaze at colours, different energies are absorbed, as each colour has its own frequency and vibration. “We are constantly surrounded by a free flow of colours, through nature, the clothes that we wear and the space where we live or work. At different stages of our lives, we feel attracted to or repelled by different colours, depending on our emotional and mental needs,” says Amisha Mehta, an artist and colour therapist.

“If we do not receive a balance of the seven colours in the spectrum, our metabolism can be affected. For example, the lack of natural sunlight, can cause lethargy, tiredness and depression. There is no such thing as a good or bad colour. While a colour can have beneficial qualities, the same colour can also have a detrimental effect on us. Usually, too much of any colour will tip the scale. Thus, one must be careful while designing a home’s interiors and choose colours that aid the well-being and harmony of all the members residing in the house. Colours should be clear, bright or light. Muddy or dirty colours, reflect the negative aspect of that colour. There is nothing wrong with deeper rich tones, if they are also not murky in appearance,” suggests Mehta.

Credits : pexels.com

THE IMPORTANCE OF COLOURS IN VASTU SHASTRA

The sun is the source of light and helps to sustain life on our planet. There is a direct relationship between the sun and the science of Vastu Shastra, as each direction has one color that influences it in a positive way, points out Mumbai-based Jayshree Dhamani, a Vastu and astrology expert. “Sunlight appears to be gold in colour but it contains seven different colours – violet, indigo, blue, green, yellow, orange and red. Each colour has a different wavelength. Suitable colours in the right direction, enhances the health and prosperity of the home’s inhabitants. If the wrong colours are used, then, it creates stress and conflicts in the minds of the inmates,” Dhamani adds.

HOW TO SELECT THE RIGHT COLOURS FOR YOUR DÉCOR

It is better to choose warm colours in rooms where there is a lot of activity, such as the living room and dining room. For example, instead of red, one can use shades of burgundy, wine, terracotta, etc., as they are not overpowering. “A colour scheme that focusses on only one or two colours, can cause an imbalance in energy. It is not only the wall colour that has an impact, but also the colour of furnishings, paintings, plants and lights. So, the home should have a variety of colours,” says Mehta.

Yellow is the colour that is closest to sunshine and is regarded as cheerful colour. So, try and incorporate it in some way at home. People who are depressed, can add a dash of orange colour to their room, to develop optimism. “Someone who has tensions, body pains and sleeplessness, can opt for blue-coloured walls or curtains, to get relief. Similarly, people who do meditation and spiritual practices, can use violet colour in the room for calmness. One can also use lamps of different shades, to add specific colours to a room, as and when needed,” adds Dhamani.

IDEAL COLOURS FOR DIFFERENT AREAS OF THE HOUSE

• Ceilings should always be white or in off-white colour, as it reflects light.
• Natural shades like green (which symbolises life and growth), yellow (stability), orange (cheerfulness) and blue (aids concentration), are recommended for children’s rooms.
• For the temple area, it is best to use purple or lavender, as it is associated with spirituality, peace and wisdom.
• Orange evokes excitement and enthusiasm and is apt for an exercise room.
• Avoid excessive use of black and grey, as it can give a depressing feel.
• Red helps in increasing appetite. So, add subtle touches of red on the dining table, with red flowers or red table linen.
• Bedrooms should be done up in soothing colours, such as pink, peach, light yellow, green and other light colours.
• The colour pink is associated with romance. Similarly, red is the colour of passion but avoid too much of it in the bedroom, as it leads to aggression.

VASTU GUIDE TO CHOOSING COLOURS FOR DIFFERENT DIRECTIONS

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Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: housing.com

Top 5 Tips to get the Lowest Home Loan Interest Rate

December 2017

When the loan is of a high amount, like home loans usually are, even the slightest drop in your loan’s interest rate can make all the difference. So here’s what you can do to ensure that a home loan is offered to you at a low rate of interest.

The interest rate is the make or break factor when you’re selecting a loan. If it’s too high, the source of finance becomes entirely unaffordable. Since you’re looking for aid, you don’t want to end up increasing your financial burden in the long run. So, it is imperative that you focus your energy on securing the lowest interest rate possible when taking a Home Loan.

These 5 tactics will help you get an interest rate that is close to what you have in mind.

LEVERAGE YOUR CREDIT SCORE

Having spent all that time ensuring that your credit score is impeccable comes in handy when you’re looking to negotiate your home loan interest. The more stable your credit history, the higher your chances are of getting a Home Loan Interest Rate that is affordable. If your credit score needs work, clear your debts and avoid taking on more debt before you apply for a home loan. Even small things such as avoiding making purchases via a credit card will help.

CHOOSE A SHORTER TENOR

This may seem counterproductive, but hear us out. While it is true that when you have a long tenor your EMIs are low. However, the gross interest paid by you is higher. So, if you can pool in your finances, it is worth opting for a short tenor to keep the interest rate low.

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TAKE ADVANTAGE OF SEASONAL OFFERS

Instead of jumping the gun, wait it out for a few weeks if possible. This way, you have time to evaluate all lenders thoroughly and pick a home loan that is ideal for you. But more importantly, this gives you a chance to take advantage of seasonal offers. Many financial institutions extend offers or discounts during festive seasons or as limited-period promotions. If you manage to time your application right, you’ll be able to get a significantly lower rate of interest on your home loan. So, if your credit needs are even slightly flexible, it is worth considering this tactic.

LOWER YOUR DEBT-TO-INCOME RATIO

As the name suggests, your debt-to-income ratio is a measure of all your debts pitted against your income. Like your credit score, this ratio is also extremely important to maintain. As a thumb rule, ensure that your debts are far lower than your income to assure yourself a good interest rate. But, if your debt component seems high, take measures to clear as much of it as possible. Whether it is an outstanding education loan or a car loan, it is worth the effort to make a few large payments to tip the scales in your favour. With a lower debt to income ratio, you can convince your lender to give you a lower interest rate and find that repaying your home loan is easier than you imagined.

DON’T BE SCARED TO NEGOTIATE

If you have steady employment and your financial history is in order, don’t hesitate to verbally negotiate with your lender. You’ll be surprised at how it can help you shave off a few thousand rupees from your monthly EMIs. As long as you’re confident and you meet all the eligibility criteria, this is worth a shot. You have nothing to lose and you may be able to walk away with a better deal than you had anticipated!

With these 5 solutions up your sleeve, lowering your home loan interest rate is no longer a daunting, almost impossible task. For a home loan that truly puts your interests first, take a look at Bajaj Finserv’s Home Loan. It offers flexibility and is incredibly affordable too. Moreover, from 23rd November 2017 to 29th November 2017, you get a rate of interest of just 8.3% if your home loan’s value is above Rs.30 lakh.

TO KNOW ABOUT REAL ESTATE PROJECTS IN THANE CONTACT US AT 022 2580 6868

Contact
501, 5th Floor, Plot No – A-123/4,
Odyssey IT Park, Road No. 9,Wagle Estate
Thane  – 400 604, Maharashtra, India
Mobile : (+91) 9833 4583 23 E-mail: mchithane@gmail.com

Source: msn.com