Being one of the oldest inhabited towns in south India, Pallavaram is a place where historical structures of the Pallava dynasty intermingles with cantonments and residential colonies. Despite of being 17 km away from the heart of Chennai, Pallavaram holds a good connectivity to IT corridors Shollinganallur and Thoraipakkam. It has also created additional demands for residential properties, resulting in escalating land prices.
Most of the IT professionals working in these corridors are opting for the stay in Pallavarm. As its location on the outer, proximately 7-10 km, provides an environment free from the hustle and bustle of the IT hubs.
Majority of the real estate absorption in the city is mainly focused along the Guindy micro-market, closer to Pallavaram and the Old Mahabalipuram Road (OMR). Areas in the vicinity of Pallavaram are promising fast growth, owing to the continued demand for office space, vis-à-vis transportation and social infrastructure in the years to come. Old Mahabalipuram Road and nearby localities will continue to pull attention from the corporates from various sectors, including IT, manufacturing, engineering and insurance.
Due to the improving fundamentals in the IT and manufacturing sectors, the office market is showing a stable improvement. Which will further enhance the residential market.
Currently the prices for apartments vary from Rs 4,000-5,500 per sq ft. The 2BHK units are gaining the maximum demand, as the most preferred budget range happens to be Rs 35-Rs 50 lakh. As of now the availability is mostly limited to the price band of Rs 50-Rs 60 lakh.
This momentum of the residential properties in the locality has caught the investors’ attention. As these localities are high on yielding good returns on investments, proving to be a good bet for investors. There might be a further push for the prices in the locality, as in coming future, locality would be included within the municipal corporation limits.
With rental values inching up on a regular basis, the rental demands are gaining speed in Pallavaram. The rental values for apartments range have reached up to Rs 15-Rs 20 per sq ft-per month, as the single IT professionals are mostly driving the rental market here.
Chennai’s residential market has witnessed the launch of nearly 5,300 residential units, depicting a rise of 19 per cent from 2016. 33 per cent of the total launches, were focused in the outer locations of the city’s south quadrant, along OMR, ECR and the Grand Southern Trunk (GST) Road. Major players of the real estate in the mid-market category accounted for about 70 per cent of the total launches.
Real estate growth is proportional to infrastructure growth. Pallavaram area is about to witness significant residential demand in the near future. Therefore, there is a need of some considerable overhaul for the existing infrastructure in order to match the increasing demands for the real estate in the area.
Before You Apply For A Home Loan, This Is What You Need To Know
It is crucial that you understand the perquisites for a home loan from a bank in advance. There is a number of reasons for a bank to reject your loan. It is even possible that you may end up not getting the best deal from a bank.
Here is a list of things that you need to do before you apply for a loan, as per Babu Sivaprakasam, partner – head banking & finance, real estate, Economic Laws Practice:
- Collect and collate all the documents. Keep original as well as copies handy like income proof, income tax returns for the last three years, identity proof, address proof, Aadhaar card, PAN card, etc.
- Know the eligible loan amount well in advance.
- Typically, a lender will give you a home loan to the extent of 80 per cent of the flat’s cost; know the amount of funds that he can contribute towards margin money.
- Calculate the amount of balance available after the EMI payment. Is it sufficient as per your lifestyle? This is especially important for people who opt for under construction property as they will have to pay rent during that period.
- It is very important that you maintain a good credit track record. Your CIBIL score should be above average level.
- Keep the down payment amount ready.
- Check your loan eligibility amount, using online tools.
- Work out tenure of loan that would be suitable for you.
- Compare and make a list of banks, on the basis of the most attractive interest rates, low charges, penalty fees, maximum loan to value ratio and least loan approval time.
Even if you have all your documents in place and have a healthy CIBIL score, there are still chances for your loan to get rejected. This can happen if the concerned bank have not identified or approved the project or if the project has certain title or legal issues, or it is not registered under RERA, etc.
Thus it is important for the buyer to check if the project has been registered under RERA Act before making any booking payment. In order to maintain a healthy credit score, applicants should make sure all their loan payments and credit card payments are made on time. Furthermore, filing your income tax returns on time shall also assist home buyers to avail home loans.
Take a look at some of the most common reasons for home loan rejection:
Maximum home loan applications get rejected due to insufficient income to buy a home.
Amit Goenka, MD and CEO at Nisus Finance Services Co Private Ltd (NiFCO) said, “The annual net income after taxes, minus expenses towards other loans, EMIs and other recurring expenses, is the surplus available to a buyer. Home finance companies usually take 50-65 per cent of this surplus, as available for servicing the home loan and may sanction up to 10 times of such amount as the home loan. This amount may be short of the desired loan amount, in which case one has to look for a lower value apartment or bring in more of their own capital, to avail of the loan. The buyer may also add another family member (husband/ wife/ father/ mother/ sister/ children, etc.) as guarantors and pledge their surplus income, to meet the loan requirement. One can also seek assistance and guarantees, if possible, from one’s employer.”
Many times, developers also assist home buyers by proving such guarantees, or by offering subvention schemes or by absorbing certain costs, so that buyers can avail the loan. Based on your income, loan seekers should check online portals which easily tell you about your loan eligibility and rate for home loans.
Also Read: All You Need To Know About Joint Home Loans
Benefits Of Jointly Owned Property
Property buyers have started working out the best mode of acquiring their immovable assets by delving ahead of informed decision. Whether it is directly dealing with the seller to avoid brokerage or choosing the best financing option for tax benefits, Indian buyers are leaving no stone unturned. One of the best ways to facilitate this is the decision to register the property jointly, with the spouse.
There are many benefits of joint registration of property like better bonding, long-term commitment and trust between spouses, and elevating the status of the wife in a patriarchal society. But a majority of the buyer’s section is unaware of the financial advantages.
Loan eligibility is the major factor that determines the budget to purchase a property, with a specific limit dependency on the income. Whereas, a joint registration allows the spouses to opt for a joint home loan. This provides for sharing of the debt burden between two people, paving the way for a higher loan amount as two incomes will be considered. The candidates falling under the eligibility criteria for a joint home loan could be applicant along with their spouse, siblings or parents.
On the taxation point of view, experts claim that a joint home loan is beneficial to all co-borrowers, who can claim a tax deduction of Rs 2 lakhs for interest payment under Sec 24 and Rs 1.50 lakhs for principal repayment under Sec 80C. Tax benefits can be availed by individuals if two or more people take a joint home loan, this can be done under the Income-tax Act on proportionate basis, in respect of the interest and principal paid during a year
Some of the states provide lower stamp duty rates by 1 to 2% to encourage women to own property individually or jointly. For instance, in Rajasthan a man has to pay 5% as stamp duty whereas a woman has to pay 4% of the market value. Similarly, in Delhi, a man has to pay 6% of the market value whereas the woman has to pay a stamp duty of 4%.
The transfer of property can be time consuming and lengthy in the case of single ownership. As in a recent case in New Delhi, after a local resident passed away, his family members found that the flat they lived in, was solely owned by the deceased. They had to face excessive conformation to regulations and rules in order to get through the procedure of getting the documents in the successor’s name.
After quite a mental stress and hard work put into the extensive paperwork, finally landed the possession with the spouse of the deceased. These hassles could have been avoided if the property was jointly owned. It is always advisable that the joint registration of property should be opted as the spouse is always the successor. As it will prevent the unwarranted problems in the future after the demise of any person.
Illegal Colony Regularisation To Benefit 1 Lac People In Bhopal
The Madhya Pradesh government has decided to regularise the illegally-built colonies, which has given a huge relief to property title holders by rescuing them from the worries of an uncertain future. The announcement on Tuesday will affect near about one lakh people in Bhopal, as the last of such initiative came 14 years before in 2004.
As per the estimates, an average plot of 1,000 sq feet would cost about Rs 1.50 lakh. According to the Subashish Banerjee, chief city planner, Bhopal Municipal Corporation(BMC), there are approximately 335 illegal colonies in Bhopal, out of which 98 colonies are in the process of regularisation. The same was notified by advertisements in the area recently.
Locations along Kolar, Semra, Neelbad, Ashoka Garden, Awadhpuri, Narela, and Bairagarh on the city outskirts are likely to benefit. According to the announcement, all illegal residential constructions before December 31 in 2016 would be legalised. In accordance to the data released by urban development few days ago, there are 770 illegal colonies in Bhopal.
Banerjee, who recently took over charge as the chief city planner clarified that the Green belt under FTL zone, colonies on government land or land marked for transportation needs would not be regularised. And now Bhopal master plan 2005 would be the basis of the demarcation. Under the master plan, there are number of constructions in new Bhopal that are along demarcated ‘main’ roads.
An inquiry report regarding such construction is currently pending with the government. According to the sources, hundreds of commercial structures and posh residentials would be demolished if the provision is implemented. In rough estimates, each of the colony would be legalised after a penalty of Rs 15 per square foot. This penalisation of coloniser is termed by the MP municipal corporation colonisers rules of 1998
As the surveyors have assessed the development with the development work. Majority of these colonies do not have 24×7 water supply, except the areas along Karond. According to BMC, many colonies benefiting from this proposal are the colonies that have been recently been constructed in last two decades. But the benefit to the slum-dwellers by the proposal is yet to be clarified by the government notification.
Manoj Meek, Confederation of Real Estate Developers Association of India (CREDAI), said that they don’t extend support to the illegal colonies and there are economic issues that have led to such measures. The government has its own take on the issue. As this issue doesn’t give the same gain to those in organised building construction. Government taxation and other fees should be reduced for organised sector as there has to be a level playing field
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