DRAG

Finance Corner

The Abode Advisory Overview

At Urbane Group, we aim to redefine the real estate journey by making it transparent, informed, and customer-centric. The Abode Advisory is a specialized platform designed to guide homebuyers at every stage of their property journey. Whether you're evaluating financing options, understanding legal formalities, or seeking advice on property design and ROI, this hub simplifies complexities to empower you. With our expertise, we help you make confident, well-informed financial decisions.

Buyer’s Tips

Real estate is one of the most resilient asset classes, offering security, capital appreciation, and income generation potential. With historically low interest rates and a recovering economy, now is a promising time to invest. Here are actionable tips to guide you:

1. Pre-Approval for Home Loans

Before starting your property search, secure a pre-approved loan.

  • Why It’s Important:
    A pre-approval ensures you know your budget, helping you avoid properties beyond your financial reach. This clarity prevents unnecessary emotional and financial stress.
  • Key Steps:
    • Review your credit score.
    • Submit income and asset documents to your lender for assessment.
    • Receive a clear loan amount approval, which serves as your financial boundary.

2. Define Your Purpose

Decide whether your property purchase is for self-use or investment.

  • For Self-Use: Prioritize comfort, proximity to work/school, and community amenities.
  • For Investment: Focus on high-growth areas with promising rental yields or resale value.

3. Prioritize Location

The location significantly impacts ROI and lifestyle quality.

  • Residential Use: Look for areas with good connectivity, schools, hospitals, and lifestyle amenities.
  • Investment: Opt for areas with planned infrastructure developments, such as new metros, highways, or industrial hubs.

4. Understand Builder Options

Choose builders with a strong reputation for quality and timely delivery.

  • Why It Matters: Reliable developers are less likely to face financial difficulties, ensuring project completion.
  • What to Look For: Builders with projects in diverse locations, offering more choices for potential ROI optimization.

5. Assess Additional Costs

Calculate all expenses beyond the property price.

  • Common Costs: Registration fees, stamp duty, property tax, and maintenance charges.
  • Why It’s Important: These can significantly increase your total investment, affecting affordability.

6. Market Timing and Decision-Making

Don’t wait for the “perfect time” to buy.

  • Why: Real estate markets are cyclical, and waiting could mean missing current opportunities.
  • Strategy: Monitor interest rate trends and local market developments but act when you find a suitable property within budget.

7. Evaluate Real Estate Options

Explore all property types—apartments, villas, or commercial spaces.

  • Tip: Match your budget and long-term goals with the property type that best suits your needs.

Understanding Property Loans

The right home loan can make property ownership a seamless experience. By understanding your options and responsibilities, you can reduce financial stress and maximize benefits.

Loan Application Process

Securing a loan involves several stages:

  1. Application: Fill out the loan application with accurate details.
  2. Personal Discussion: Meet the bank to discuss your requirements.
  3. Field Investigation: The bank verifies your income, employment, and other credentials.
  4. Credit Appraisal and Loan Sanction: Your loan eligibility is assessed, and an offer is extended.
  5. Documentation and Legal Check: Submit legal property documents for verification.
  6. Disbursement: After the property valuation is complete, the loan amount is disbursed.

Loan Types and Terms

  • Floating Rate Loans: Interest fluctuates with market trends, offering potential savings if rates fall.
  • Fixed Rate Loans: Interest remains constant, ensuring consistent EMIs for the loan tenure.
  • Step-Up Loans: Lower EMIs initially, increasing over time—ideal for professionals with growing incomes.
  • Step-Down Loans: Higher EMIs initially, reducing over time—suitable for individuals nearing retirement.

Eligibility and EMI Management

  • Eligibility Criteria:
    • Lenders evaluate your income, credit history, and liabilities.
    • Typically, 50-60% of your disposable income is considered for EMI payments.
  • EMI Tips:
    • Opt for a tenure that balances affordability and interest costs.
    • Use online EMI calculators to plan repayments within your budget.

Prepayment and Refinancing

  • Prepayment: Paying off your loan early reduces interest costs.
  • Refinancing: If interest rates drop, consider switching to a lender offering better terms.

Guidelines for Non-Resident Indians (NRIs)

NRIs and PIOs can capitalize on India’s booming real estate sector. Here’s what you need to know:

Eligibility

  • NRI Definition: Indian citizens residing abroad.
  • PIO Definition: Individuals of Indian origin but non-citizens (excluding certain countries like Pakistan and China).
  • Payment Modes
    Funds must be routed through NRE, NRO, or FCNR accounts. Cash payments are prohibited.

Property Purchase Restrictions

  • NRIs/PIOs can invest in residential or commercial properties but need RBI approval for agricultural land, farmhouses, or plantations.

Repatriation Rules

  • Sale proceeds from property can be repatriated up to USD 1 million per financial year, subject to specific conditions.

MahaRERA Overview

MahaRERA ensures a transparent and regulated real estate environment in Maharashtra, protecting the interests of homebuyers and investors.

Benefits of MahaRERA

  1. Standardized Carpet Area:
    Developers must adhere to a uniform method for calculating usable property space, eliminating confusion.
  2. Financial Security:
    Developers must allocate 70% of project funds to a dedicated escrow account, ensuring timely and transparent project completion.
  3. Buyer Compensation:
    • In case of delays, buyers can claim a full refund with interest or compensation for waiting until completion.
    • Structural defects identified within five years must be rectified by the builder within 30 days, or the buyer is entitled to compensation.
  4. Transparent Processes:
    Buyers can access all project details, such as layout approvals, construction timelines, and progress reports.
  5. Advance Payment Cap:
    Builders cannot charge more than 10% of the property’s cost as an advance before signing the agreement of sale.

For further assistance, visit the official MahaRERA website.