Majority of financial institutions lend home loan to borrowers who are planning to buy a patch of land to build their dream home. Banks grant land loans to salaried and self-employed people and even to NRIs. These loans empower you to buy a residential piece of land.
WHAT KIND OF LAND CAN BE BOUGHT?
Banks do not offer land loans on an agricultural land. As per the guidelines laid down by the Reserve Bank of India, a land loan is specifically given for buying lands for residential means only. Few lenders have fixed set of norms under which the land should be located within certain municipal limits. Apart from this some financial institutions add on a number of restrictive clauses that demand the purchaser to start the construction process on the purchased land within a duration of six months to a year.
IS IT FITTING FOR YOU?
There are a lot of factors that affect a person’s choice of building his dream home on his own. One such factor is the price. Buying a piece of land and then constructing the house on it can some time turn out to be a less costly affair. Also, one can set the pace of construction as per wish to suit his financial conditions. Constructing the home oneself facilitates the owner to put into action his all creative ideas in design and color schemes. Apart from this one also has a liberty to put off main operating cost, enhancements and addition to a future date.
HOW DIFFERENT IS A LAND LOAN FROM A HOME LOAN?
The interest rate for a land loan is on a par as compared with the interest rate of a home loan. One cannot ask for income tax deductions on the interest rate paid for a land loan. But if a borrower converts the land loan into a home loan to get financial support for the construction purpose of the residential property, then surely he can get all the tax benefits available under the Income Tax Act. Apart from this, once a completion certificate is obtained from the appropriate authority, the interest rate paid on the loan is entitled for IT benefits.
DOWN PAYMENT
Borrowers who are looking forward to get a land loan have to pay a higher down payment amount. The loan-to-value ratio for land loan in the case of down payment often goes as high as 70%. Normally, an individual who opts to take a home loan has to pay for only 20% of the cost of property.
DOCUMENTS REQUIRED
It is always advisable to appoint a legal expert to check and verify all the legal documents of the plot in concern. Apart from this, one should also verify the layout drawing of the site as approved by the town planning authority, and no encumbrance certificate of the land. Other property documents that need to be validated comprise of original documents pertaining to ownership of land, revenue receipts, land records and tax receipts.
DOCUMENTS REQUIRED WHILE APPLYING FOR A LAND LOAN
Before the borrower applies for the land loan, he should have some documents in place which include original site ownership documents, tax receipts for taxes paid by the owner, layout drawing, revenue receipts , no objection certificate from society for sale and transfer of land, and no encumbrance certificate for the land.
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Home Loan Pre-conditions for purchasing a land to build for residential purpose
June 22, 2011 at 5:26 pm · Filed under Banks, Brokergae, Builder, Growth Investing, India Real Estate, Indian Properties, Indian Real Estate, Investing, Loans, Marketing, NRI Related, Pre-owned homes, problem, Properties, Prospecting, Real esate, Real estate trends, Reality Firms, Realtor, Referal, Repatriation, Residential Property, Selling ·Tagged agricultural land, apartment, bank, financial institution, home loan, Income Tax Act, Indian Properties, Indian Real Estate, interest rate, land loan, land records, land revenue receipts, layout, loan-to-value ratio, no encumbrance certificate, NRI, plot, property ownership, property title, residential property, Rserve Bank of India, tax benefits, tax receipts
Premium Space
November 26, 2008 at 12:16 pm · Filed under Agent, Bangalore, Broker, Brokergae, Builder, Commercial Property, Delhi, Eastern India, Finance, Growth Investing, India Real Estate, Indian Properties, Indian Real Estate, Internet, Investing, legal, Marketing, NCR Region, NRI Related, problem, Properties, Prospecting, Real esate, Real estate trends, Reality Firms, Realtor, Referal, Repatriation, Residential Property, Selling, Southern India, Traffic, Uncategorized, US, Western India
Size matters. Ask any member of a joint family and chances are that they are staying on in their vast crumbling old house simply because flats today are too poky. Even the most united family is likely to see schisms when literally rubbing shoulders with the others on a daily basis. But there’s hope—if pockets are deep. Real estate developers are coming up with what are called “presidential apartments”, or apartments built in over 4,000 sq ft. Some of the uber-premium apartments actually go up to 12,000 sq ft. Never mind not having the space to swing a cat; with apartments this size, you can almost have your own private zoo indoors.
Duplex? No, triplexSome of the apartments are three-storeyed with total living space of over 11,000 sq ft having eight bedrooms, as many bathrooms, balconies, separate home office, family room, powder room, decks….the list is long. Here are the key unique offerings you can expect in these houses:
Terrace garden & deck A private garden; wooden or glass decks overlooking the golf course or greenery
Your mini theatre in the house equipped with the latest in home electronics; expansive seating and shelves French windows With so much of premium on the view (sea, golf course, greenery), these floor-to-ceiling windows let you sit back and enjoy. They also add to the sense of space and light
Your private pool on the terrace fitted with the latest filtering system
Consoles that let you control everything from lighting, television, music to even window blinds
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In cities that are starved of space, a 10,000 sq ft apartment is more than a mere status symbol—it declares loudly that you have arrived. And if you’re going to be able to afford to cough up the Rs 1 crore plus that even the smallest of these presidential apartments cost, you’re definitely headed for material success. Depending on the size and location, you can pay up to Rs 10 crore for an apartment. But for that kind of space—generally in prime residential localities—it really doesn’t seem like a lot.
Apart from massive floor space in prime locations, you also get every creature comfort that can be built in. Private lifts, landscaped gardens, a gym, swimming pool and state-of-the-art security are taken for granted. The apartments sport imported tiles or wooden flooring, acrylic emulsions on the walls, and ultra-modern modular kitchens. Bathrooms are more like health clubs with top-end sanitary fittings, sauna, steam, Jacuzzi and shower cubicles. These apartments come with at least four bedrooms (some go up to 12), are centrally air-conditioned, a three-tier security system, separate guest and service elevators. Some developers also give buyers an option of getting the space designed according to their requirements.
Take Unitech’s Grande project coming up in Noida in the National Capital Region. The project consists of 12 towers, each designed by a different international architect; all apartments have a view of an 18-hole golf course and 100 acres of landscaped greens. The common facilities are equally lavish with a sports complex, a habitat centre, lounge bars, theatres, bowling alley, library, schools and a 200-bed hospital.
The apartments themselves come with their own plunge pools and sky gardens. All this for a base price of Rs 6 crore. Similarly in Bengaluru, Total Environment has launched a project called ‘Windmills of your mind’ that has apartments of up to 7,000 sq ft. Its design and facilities rival the best in the world. In Mumbai, where even a three-bedroom apartment is considered luxury, Oberoi Constructions has already sold half of its 8,000 sq ft penthouses at its Skyz project in Worli. K Raheja Universal, which pioneered the trend of duplexes with its Buckley Court project in Mumbai, now has a duplex in most of its new luxury projects.
Customize You can decide the design of your apartment. You have choice of layout, interiors, fixtures, landscaping and even the size and number of rooms— everything except the basic structure Split-level living Some of these apartments come as duplexes and triplexes. The lower level has the living space and utility rooms like kitchen and the upper level has the bedrooms Private lifts Staying on the 45th floor does not mean waiting for lifts—exclusive high speed lifts open into your house and link the floors of your duplex or triplex Home office A fully functional, wi-fi enabled office area with a separate entrance and seating area especially suited for working professionals like doctors and chartered accountants Multi-tier security From motion sensors and cameras outside the house to password protected locks, gas leak detectors, state of-the-art fire detection and sprinkler systems Central cleaning A central vacuum system with ducts across the house so you don’t have to roam around with a vacuum cleaner. All the dust is then collected into a central bin outside the house
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“People from large kothis are moving to apartments but rarely do they want to compromise on the space,” says Kunal Banerji, Vice-President, Marketing and Corporate Communications, Ansal API. Adds Anuj Puri of JLL Meghraj: ‘‘There are two areas of demand for high-end apartments. First, there are people who want to stay within the city, where Rs 1-2 crore for an apartment is normal. The second category is those who want to shift to the suburbs for more space and it is these people who are creating demand for bigger apartments.” The demand is highest in Delhi and Mumbai followed by Bengaluru and Kolkata.
Private Comfort Versus Shared Luxury |
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Bungalow |
Apartments |
Cost |
Land (Rs 5 cr) + Construction (Rs 1 cr) = Rs. 6 cr |
Apartment (Rs. 6 cr) + Facilities (Rs 5 Lakhs)= Rs. 6.05 cr |
Garden |
Private |
Private terrace garden & common garden |
Spacious & Split-Level Living |
Yes |
Yes |
Uniform Neighborhood |
Less likely |
More likely |
Scope For Future Modification |
Substantial |
Marginal |
Security |
Private |
Private & Common |
Common Facilities |
None |
Several (Pool, jogging track, golf course, club) |
Comparison for a luxury apartment project and a bungalow in the same location |
According to the Confederation of Real Estate Developers’ Association of India, the market for high-end properties is growing fast and will continue to grow at 7-10% at least over the next two years. The reasons for that healthy outlook, say experts, is the strong economy and big pay packets. These high-end projects have an active resale market too. Over the
past two years, most such properties saw a price appreciation of up to 100%. One reason is the profile of buyers. As NRIs look for ready-to-move-in options, investors get their exit options easily.
However, exclusivity is a double-edged sword if you are looking at your property just as an investment; in case of a slowdown or a market crash these are the first to take the hit. “But so much premium is built into these projects because of intangibles that prices will almost never go below the cost of acquisition,” says real estate expert Abdul Bari.
Article by Rakesh Rai
Source: Money Today 2008
Real Estate – Legal Corner
August 22, 2007 at 9:36 am · Filed under Commercial Property, India Real Estate, lawyer, legal, legal column, problem, Real esate
Life is a complex maze – full of possibilities.
Real Estate, not only in India but wherevere it may be in the world – is also quite similar to our daily experiences – full of unexpected possibilities. Some countries have quite well defined the processes and demystified the puzzle for a common citizen – “the home seeker”, others are “work in progress”.
Meanwhile, we (www.atoneplace.com) get a lot of questions on the Indian real estate legal maze. Every time there seems to be a much more complexed problem….. So, sometime back we realized a need of an experieced legal expert for our marketplace.
Finally, the search has ended… to help our customers (specially now that the world is shrinking and investments flowing in all directions) living outside Indian borders or even for those who live in a different state from where the land under question is…. we are happy to announce the appointment of a legal expert on our marketplace – so now send your basic questions (legal nature) to legal@atOnePlace.com and our legal expert will try and answer them for you…. here’s the catch…. totally FREE!!
More details will follow soon…
Meanwhile, send in your questions … She’ll love to hear from you! (oops, no early disclosures, the board warned 🙂
NOTE: Fictitious names used, and any resemblance is co-incidental. All copyright & trademarks acknowledged.