Home Buying Tips: Considerations For Indian Homebuyers

Pune Property

There is a school of thought that states that you should buy a home as soon as you can afford it, or as soon as your home loan application is approved. In fact, the only question one tends to ask in context with home buying is whether property prices and interest rates are amenable at that point in time or not. On the surface, this makes sense. However, not all surfaces are reliable mirrors.

From an investment point of view, buying a house is often likened to buying gold and putting it in the bank. That is true to some extent. Investments in real estate, historically, have given very good returns, if held for a long period. In other words, buying property today does make a certain amount of financial sense.

Buying a house means security, and security is important to any family of any generation. It is one of the few long-term investments with practical utility – after all, you’re not going to put the flat in a bank while it appreciates in value. You’re going to live in it. But the fact that investment in property needs time to pay off good returns should be kept in mind.

Before utilising your loan or putting your own money down, calibrate the options well to judge whether your investments today will yield desired results before you plan to sell off. With the social structure in India decaying slowly, there are a host of factors that need to be kept in mind before making such a huge investment.

Work Profile

The reason why a home loan company digs so deep into the nature and situation of a client’s job is that they need to gauge how reliable a risk he is. There are certain classes of jobs that inspire more confidence due to the stability they offer to the employee.

This stability is not judged by the take-home income but by potential consistency. Therefore, if you are applying for a home loan, it would be best to make a personal evaluation. If you are a frequent job-hopper, suffer from poor health or have a long history of dismissals, you would do well to set your career situation in order before applying.

Even if your application is accepted, how well are you equipped to pay the EMIs (equated monthly installments)? With the loan granted, you could avail of it more productively when things are a little more stable on your professional front.

Peripheral Expenses

Another factor to consider is the peripheral expenses. To begin with, if you are using the services of a real estate broker, you will be liable to pay him a certain amount of money once the deal is finalised. There are also various legal formalities, including property and registration taxes. Are you in a position to take care of them as and when they arise?

Family

There are both practical and less definable reasons for assessing your marital situation before contemplating the purchase of a home. A shaky or distressed marriage is definitely not conducive to making four walls into a home. The contemporary Indian mind assumes that marital problems will automatically get ironed out once the decisive step of buying a home is taken. The facts state differently, but that is not the point. Let us consider the purely financial point of view.

Many couples take out joint home loans. When a marriage is stable, this does have many advantages. When it is not, the consequences can be quite disastrous. Payment of EMIs in case of separation or divorce can become a major legal issue. Even in the case of outright purchase, actual ownership of the property if the marriage dissolves will be the subject of dispute. Hoping that buying a home will set a disturbed family situation right is akin to hoping that water will miraculously flow upwards if the right kind of pipe is installed.

Cultural Roots

Yet another reason to think long and hard before actually investing in a residence would be sudden geographical change. One major mistake repatriating NRIs usually commit is to buy a home arbitrarily, without considering the possible culture shock.

The fact is that they have spent a minimum of five years in a foreign country, which means that they have assimilated that country’s culture and adopted a certain lifestyle. Such a culture and lifestyle may be hard to replicate in India, no matter how progressive the city of choice is.

The same feeling of alienation and displacement can overwhelm property buyers who decide to settle down in an unfamiliar city or even state, without familiarising themselves with the new area of location.

Finally, the financial investment angle. If you ask a financial consultant about whether the time is ripe to buy a residence, he will probably raise only one point – will you be able to keep the property long enough to make it pay as an investment?

All of these factors are worth thinking about before actually taking the plunge of buying a home.

Mohammed Aslam is head (Pune) at Jones Lang LaSalle Meghraj.

This article is reprinted from the report, A House Of Your Own: Are You Ready To Buy?, published in The Indian Express.

Pimpri Chinchwad Municipal Corporation Gets Land For Cancer Hospital

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State minister for water resources, Ajit Pawar, made this announcement at a function in Pimpri on Saturday when he laid the foundation stone for the flyover at Kasarwadi. The land will be used for the proposed cancer hospital as well as for setting up a sewage treatment plant.

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While the global economic slowdown of 2008-09 had some impact on the Indian economy, Pune’s realty market remained virtually unscathed.

It is an acknowledged fact that in the last one decade Pune has seen an enviable escalation in realty. The rise in construction activity has been widely attributed to Pune’s new face as the emerging IT hub of India following at the heels of ‘over crowded Bangalore’ and beating Hyderabad that has recently been overwhelmed with the Telengana issue.

“Pune is the safest, most stable and most rapidly progressing realty market,” says Mr Shashank Paranjape, Managing Director of Paranjape Schemes, a city-based developer.

“From 2001 onwards, the city witnessed a phenomenal growth. But it was only in 2003-04 that the Pune realty market actually took off,” explains Mr Satish Magar, promoter of mega township Magarpatta and Chairman, Pune chapter of Confederation of Real Estate Developers’ Associations of India.

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According to Mr Magar, Pune has four growth engines — IT, auto, educational and migration. “Migration to Pune from rural Maharashtra is on the rise due to the excellent demand for skilled and unskilled labour, leading to the growth of the city,” he emphasises.

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NCP chief Sharad Pawar had performed the bhoomi pujan six years ago; project touted as the first multi-layer flyover in the state. Six years after its bhoomi pujan, construction of the Rs 99-crore World Bank-aided Nashik Phata flyover finally got cracking.

District Guardian Minister Ajit Pawar laid the foundation stone of the bridge which will fly over rail, river and road. It is being touted as the first multi-layer flyover in the state.

Speaking on the occasion, S K Lohiya, officer on special duty (OSD), Ministry of Urban Development, said, the Nashik Phata flyover is the first project of the Central Government in the country under the Sustainable Urban Transport Project. “11 cities were selected for the project. While Pimpri-Chinchwad was the last to join the project, it has become the first to implement it,” he said.

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Called the Spine road’, it is being developed by the Pimpri Chinchwad New Township Development Authority (PCNTDA) at a cost of Rs 70 crore. Besides connecting the two highways, the road also cuts through the industrial, residential and commercial areas on the eastern side of the township and is expected to reduce traffic snarls witnessed on the smaller roads.

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The ‘clean and green’ fuel, will now cost Rs 35.40/kg in the limit of Pune Municipal Corporation and Rs 35/kg  in the limit of Pimpri-Chinchwad  Municipal Corporation, according to press release issued by Maharashtra Natural Gas Limited, the sole natural gas provider for city areas.

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Ever since the first batch appeared for the SSC exam in 2006, CMS has improved the results in terms of distinctions achieved year by year. This year also, among the 100 students who appeared from the school, 10 have scored above 90 per cent marks, 56 got distinction, 28 got first classes and 6 got second classes.

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“The ATS has to study the case scientifically and collect evidence to identify the group behind the attack”, he said, talking to reporters on the sidelines of a function on Tuesday night.

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WASHINGTON: A visiting delegation of Indian parliamentarians led by Congress spokesman Abhishek Manu Singhvi and Union Minister of State Ajay Maken, was briefed by a team of top FBI officials in New York on its counter-terrorism operations.

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Maharashtra Govt Sanctions Rs 14 Lakh To Rebuild Pune’s German Bakery

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A cheque for the amount was given to the eatery owner Smita Kharose by the Pune Guardian Minister Ajit Pawar here in the presence of the district collector Chandrakant Dalvi, an official release said today.

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