Home loan and purchase tips for you
Monday, December 22nd, 2008Home buyers looking for flats and apartments to purchase on the outer fringes of Mumbai and other cities like Nashik and Pune will benefit the most from the reduction in the interest rates by public sector banks recently. Public sector banks announced that home loans up to Rs. 5lakh would be given at a maximum interest rate of 8.5%, while those between Rs. 5lakh and Rs. 20lakh would be offered at 9.25% (these rates could fall in the near future also).
However this will have almost no impact on the Mumbai market at all. “The Mumbai market will not be affected by this decision as no flat in the city is below Rs 20 lakh. For larger metros, the limit should have been set at Rs. 50lakh,” said Boman Irani, chairman of the Rustomjee Group, which is setting up middle-income housing projects across the city including the suburbs like Bandra and Santacruz. This is obvious as the property purchase prices in Mumbai Suburbs like Bandra, Santacruz, Goregaon and Andheri range from Rs 20,000 to Rs 7,000 per sq feet. So a 1000 sq feet property in Mumbai’s suburbs would cost anywhere from Rs 70 Lakh onwards only.
Real estate consultant Ashok Narang said that the ground realities are different when it comes to disbursement of loans by banks to lower income people. “Bringing down the interest rate won’t help, “he said.
Said Anshuman Magazine, chairman & Managing director, CB Richard Ellis, South Asia:”Although this is expected to have some impact on the market, it won’t be a significant one. It would have made a large correct,” he said. Impact if the limit had been increased to Rs. 40lakh. Besides, confidence levels are waiting for prices to Mumbai-based developer Pujit Agarwal said over the past four years when the market was booming, most developers had stopped catering to the lower income group and ware only concentrating on high value products. The interest cut will lead to a flurry of developers catering to this segment now.”
Almost all the prominent builders have announced projects for lower income groups in the recent days and are looking to make small dwellings in far flung suburbs to make the most of the governments latest policies.
Here are 9 important things you should know before planning to purchase a new property in Mumbai Suburbs or for that matter anywhere:
1. Check for rate of property currently going on in that location by asking few people or property agents (some top property brokers listed here - click here).
2. Check the credentials of the builder and his reputation to provide quality and amenities as promised earlier.
3. Check if the home you purchasing has well maintained society registered properly so that most of the legal matters are taken care and you are at lower risk of being cheated.
4. Check both Original documents before giving token money for the deal.
5. Check if that property can get Loan from banks.
6. If property is old you can benefit and save money during paying stamp duty payment to be given. So find out assessment letter for Municipal Corporation for same.
7. Check if the space area quoted for is on Carpet, built up OR super built up basis to avoid a dispute later.
8. Check if it CIDCO or BMC approved, or alternately if property is old then proper Completion Certificate, OC, Plan Copy and saat bara utara (7-12 utara) documents there with seller.
9. Ask your advocate to calculate required Stamp Duty and Registration Fees with advocate fees and be ready.
