Buying a home is probably one of the most expensive purchases made by most of us. When you decide to buy a house, you need to plan your finances in a manner that can help you manage the pre and post-purchase expenses too. If you are planning to avail of a home loan to buy the house, then the amount of loan you can get will depend on the price of the property and your loan repayment capacity. In this article, we will talk about factors that you should consider while deciding the home loan EMI amount based on your income.
Choosing your home loan EMI based on your income
Your income is an important aspect in determining the home loan amount and EMI. Usually, banks cap the EMI to 40% of the gross monthly income of the applicant. This automatically restricts the home loan amount and EMI. Here are some examples to help you understand:
Ravi decides to buy a house worth Rs.50 lakhs. His gross monthly income is Rs.1 lakh. The bank is offering home loans at an EMI of Rs.1000 per lakh for a home loan for 20 years.
So, considering that the bank caps the home loan EMI at 40% of the gross income, the maximum home loan EMI that Ravi will be required to pay will be Rs.40,000. This translates into a home loan of Rs.40 lakhs – which is 80% of the price of the house. If the bank offers a home loan of up to 70% of the price of the house, then the maximum home loan that he can get will be Rs.35 lakhs.
Ravi decides to buy a house worth Rs.50 lakhs. His gross monthly income is Rs.50,000. The bank is offering home loans at an EMI of Rs.1000 per lakh for a home loan for 20 years.
So, considering that the bank caps the home loan EMI at 40% of the gross income, the maximum home loan EMI that Ravi will be required to pay will be Rs.20,000. This translates into a home loan of Rs.20 lakhs – which is only 40% of the price of the house. Even if the bank offers a home loan of up to 90% of the price of the house, Ravi will not be able to get a home loan of more than Rs.20 lakhs.
Ravi decides to buy a house worth Rs.50 lakhs. His gross monthly income is Rs.2 lakhs. The bank is offering home loans at an EMI of Rs.1000 per lakh for a home loan for 20 years.
So, considering that the bank caps the home loan EMI at 40% of the gross income, the maximum home loan EMI that Ravi will be required to pay will be Rs.80,000. This translates into a home loan of Rs.80 lakhs – which is more than the price of the house. Let’s say that the bank offers home loans for up to 80% of the price of the house. Therefore, Ravi can borrow up to Rs.40 lakhs as a home loan. This is where he can choose the loan amount based on the EMI he is willing to pay.
Factors to consider while choosing the home loan EMI
Here are some factors that you can consider while deciding on the EMI of your home loan:
Monthly expenses: When you are calculating your home loan EMI, make sure that you think about the expenses that you might have to manage in the future like medical expenses, education expenses of your children, etc. Also, make sure that you consider inflation while calculating these expenses.
Fixed and floating interest rates: Home loans are usually available with fixed and floating interest rates. Make sure that you consider the implications of both before deciding.
Existing loans: If you have existing loans like car loans, personal loans, or credit card outstanding dues, then make sure that you factor in the repayment of these loans while choosing the home loan EMI.
Remember, a home loan is a long-term commitment. While your income might increase with time, so will the expenses. Therefore, make sure that you do not overstretch your limits while calculating the maximum home loan EMI that you want to agree on.
Also, while choosing a house, try to look for high-quality construction, good connectivity to important parts of the city, and amenities as it can contribute to the growth in the value of your property over time. In Pune, Sankla Buildcoon understands the needs of home-buyers and offers affordable homes with top-notch construction quality at locations that are central and well-connected. Their residential properties include SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi.
Choose the right house and the perfect home loan EMI based on your income and realize your dream of owning a home. Good Luck!
Traditionally, in India, people were more inclined to save their money in a savings account than invest it. While over the last three decades, an increasing number of people have started looking at investment options to generate returns and create wealth. There are numerous investment avenues available to people like stocks, bonds, fixed deposits, mutual funds, gold, real estate, etc. Each of these investments has certain risks associated with it and reward potential. Because of the risk involved, it is prudent to understand all investment options before making a decision. Today, we will talk about three popular investment avenues – Gold, Real Estate, and Stocks and compare them to help you find the real DHAN to invest in during this Diwali.
The last few years have been tough with lockdowns slowing down economies around the globe and interest rates falling. In such a landscape, it is important to choose the right investment options and grow your wealth. Here is a quick comparison between gold, real estate, and stocks.
We will talk about stocks in the broader sense of equities and cover shares and mutual funds. As an investment option, stocks have grown in popularity over the last two decades. People are increasingly investing in shares and mutual funds. When you invest in stocks, you buy equity or equity-related instruments based on your assessment of the market and earn returns. However, these investments are risky and adverse market movements can corrode your finances. Stock investments offer you the option of earning a regular income or generating wealth over the long term.
Gold has traditionally been the investment of choice for Indians. With the ‘yellow metal’ playing an important role in our culture and tradition, people have always purchased gold for occasions and events. This also acts as a safety net during financial emergencies. Further, gold can be used as collateral to get secured loans at affordable rates. In recent years, digital gold and gold bonds have also been launched to help people invest in gold. However, gold-based investments have certain risks too that need to be factored in before investing.
Around the world, investment experts call real estate investments the best way to generate wealth. When you buy real estate, you have an opportunity to generate wealth over the long term as property prices appreciate and regular income by renting it out. These investments are also subject to market-related risks.
What is the real DHAN to invest in during Diwali 2022?
Choosing the right investment option depends on your needs. As you can see, all these investments have certain risks and returns associated with them. You need to consider your financial goals, risk tolerance, and investment horizon. This will help you create an investment plan and choose the right investments.
Here are the pros and cons of investing in stocks, gold, and real estate to help you choose:
|Pros||Potential to earn high returns||Easy to invest||Lower volatility compared to stocks and gold investments|
|A wide range of options available to diversify risks||Potential to earn high dividends over the long-term||Property prices and rents tend to increase with increasing inflation rates|
|Cons||High risks associated with the investment||No regular income||Usually involves a large ticket investment|
|High volatility in short-term stock investments||No tax advantages on gold investments||Liquidity is low|
Regardless of the option you choose, make sure that you pick the right investments. So, if you are planning to invest in stocks, then make sure that you choose the right companies to invest in based on your financial goals. If you are looking for real estate, then choose between new and used properties. For new properties, make sure that you look at reliable and reputed builders like Sankla Buildcoon. In Pune, Sankla Buildcoon has established a reputation for building state-of-the-art commercial spaces and aesthetic residential homes using high-quality materials and modern designs. Their residential properties include SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi. On the other hand, the commercial properties include SATYAM BUSINESS COURT at Manjari, PS ANGAN at Magarpatta Road, and JAYMALA BUSINESS COURT at Manjari.
Remember, investing is a responsible task. Make sure that you choose the right asset class to invest in (gold/real estate/stocks) and the right instruments to give yourself the best opportunity to earn the intended returns. Good Luck!
Location of MohammadwadiLocated close to the Mohammed Wadi Reserve, Mohammedwadi is a residential locality in the southeastern zone of Pune. Properties in the locality are highly affordable and have quick access to the prime employment hub of Hadapsar. Additionally, Mohammadwadi shares its borders with localities like Kondhwa, Pisoli, Handewadi, Wanowrie, and Undri. While a lot of developers have constructed some amazing projects in the area, Sankla Buildcoon’s project Avani, with its spacious one and two BHK apartments, has been in high demand.
ConnectivityMohammadwadi has excellent connectivity with various prominent parts of the city via buses operated by Pune Mahanagar Parivahan Mahamandal Limited (PMPML). Also, Mohammadwadi has good connectivity to major roads like the Mumbai-Bengaluru Expressway, Hadapsar Road, Kondhwa-Katraj Bypass, and NIBM Road. Also, you can access the Sasvad Road Railway Station within a few minutes via the Mohammadwadi Road. The Pune International Airport is at a distance of around 14km from the locality.
Social & retail infrastructureAnother important aspect of a thriving residential location is access to educational institutions, hospitals, and retail outlets. Mohammadwadi is closely connected with many popular educational institutions like JSPMs Jayawantrao Sawant College of Engineering, Smita Patil School, The Lillian School, and Rehmani Junior College. You can also find state-of-the-art healthcare centers like the Lifeline Hospital, Life Care Multispecialty Hospital, Satyanand Hospital, Dr. Gunvant Oswal G Therapy, and New Command Hospital. Shopping centers like the Amanora Mall, Seasons Mall, and INOX Mall are also at a distance of a few kilometers from the neighborhood.
Employment hubsThere are many tech parks located near Mohammadwadi as follows:
- Phursingi IT Park (6Km)
- Cyber City IT Park (7Km)
- Cerebrum IT Park (11Km)
- EON Free Zone IT Park (12Km)
- Maharana Pratapsingh Garden in Sadashiv Peth – around 11km from Mohammedwadi
- Joglekar Baug in Mandai – around 10km from Mohammedwadi
- Jijaau Park in Kasba Peth – around 10km from Mohhamedwadi
- Shri Swami Samarth Garden in Raviwar Peth – around 9km from Mohammedwadi
01: Increase natural light in your homeA well-lit room can look much bigger than it actually is. Choosing the right lighting can help determine the areas that are highlighted and the ones that aren’t. One of the best ways to make your house look spacious is to use as much natural light as possible. The first thing you can do is work with light-colored curtains and blinds. Use sheer material if possible as it can improve the amount of natural light that enters the house. If you have limited scope for natural light, then use interior lighting meticulously to illuminate the required areas of your home to make it look bright and cozy.
02: Keep the floor clearHouses look cluttered if a lot of things are spread on the floor. Over-utilized floor spaces are usually a result of a lack of planning. Start thinking vertically and maximize the utilization of wall space to clear space on the floor. Look at every element in the room and think of ways in which you can use options on the wall to keep the floor clutter-free. Instead of standing racks, consider using wall-mounted racks for clothes, books, and other things.
03: Consider size and proportionSize and proportion play a big role in determining the spaciousness of a house. As a general rule, using low furniture can make the room feel larger and the ceiling taller. Another intelligent way of doing this is creating a gallery wall that is placed vertically as it draws the eye upwards. Also, when using rugs, choosing a large bright rug will stretch the borders of the area. On the other hand, using many small rugs will break the area into smaller sections.
04: Use multi-tasking household itemsEvery household has certain requirements. For example, you will need a fixed number of seating areas, tables for dinner and coffee breaks, a place to keep kitchen towels, shoes, and various other things. When you set up a house, you decide how and where these items are placed so that they serve their desired purpose. However, you can re-look at all of them and think of ways in which you can use existing household items for multiple tasks as it can help reduce the number of items at home and create more space. Just keep a simple thing in mind – a de-cluttered house looks more spacious than a cluttered one. Hence, focus on using fewer items and placing them carefully to boost space in your home.
05: Keep empty areas in your home
Imagine a corner of a house that has a rich rug, wallpaper, a wooden cabinet, and a crystal light hanging on the ceiling. Looks cluttered and distracting, doesn’t it? Remember, if you fill a room from floor to ceiling, you will end up feeling cluttered and distracted. Make sure that you keep empty areas in your home for the eye to rest. Don’t try to cover every surface in the room and make sure that all elements work cohesively to create a space with free-flowing energy. Hence, don’t underestimate the importance of empty areas in your home.
Remember, once you have purchased a house, then you can rarely make structural changes to it. While you can work on the interiors of the house, you will have to work with the available structure. Hence, it is important to ensure that you buy a house from a reputed builder who creates living spaces designed for comfortable living. In Pune, Sankla Buildcoon has a reputation for being one of the most trusted developers of homes. If you are looking to buy a residential property, then you can consider our projects SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi.
Create a space devoid of leakage and seepageOne of the biggest concerns of potential buyers of residential or commercial properties is seepage and/or leakage. This can be due to rains or water seeping through the walls coming from a bathroom or the room above. If left unchecked, water seepage can damage the building’s structure and leave it smelling foul. Sometimes, this can involve talking to your neighbors and asking them to make changes to their homes. Make sure that you locate and eliminate all sources of leakage and seepage in your property.
Keep the place well-litApartments and offices that lack natural light usually seem closed and claustrophobic. Light and ventilation are essential to make the place look appealing and inviting. Nobody likes a home or office that looks dark and dull. Make sure that you use large windows, light curtains, use open-layout kitchens, and low sitting to make the space feel well-lit and warm.
Renovate smartlyRenovations can help you redefine the house based on its structure and your needs. Use better tiles, create wet and dry areas in the bathroom, use water-saving flush systems, etc. You might have to break down a few walls to create a better living space. Also, make sure that you choose the wall paint based on the light and interiors used.
Focus on the electrical wiringUnder home improvement, electrical wiring is another important aspect. Make sure that you constantly check on the status of the wiring in your home/office and keep them in top shape. Also, use LED lights instead of large tube lights, energy-efficient geysers and air-conditioners. Remember, if your house/office looks ready to move in, then its value increases for the potential buyer.
Make the exteriors countThe first impression is usually a lasting impression. Hence, make sure that you focus on the exteriors of your home and office along with its interiors. Make sure that the outside walls are clean and painted and so are the doors and windows. Add lights along the corridor or hang murals to add an aesthetic appeal.
Furnish carefullyWhile choosing furniture, make sure that it is aesthetic and functional. Avoid overcrowding the space. People love empty zones at home and office. Also, invest in furniture made using rosewood or teak as its value increases over time. Also, invest in a good Kashmiri carpet as it increases in value with time too. Remember, minimalism is trending in furnishings. Keep the structure and space available in your house in mind while planning the furnishings.
Use woodwork to reduce the load on the buyer and enhance the value of your property. Choose the wood and laminate carefully based on your budget and focus on materials that require low maintenance.
Choose the property carefullyApart from making the changes recommended above, you must make sure that you buy a property after carefully considering its location and surroundings. While there are certain things that you can change about a property, location and surroundings are beyond your control. Make sure that you are in a well-connected location with adequate amenities and facilities that can make living and/or working there hassle-free.
Sankla Buildcoon endeavors to deliver stunning homes and offices with a clear focus on innovation and quality. Over the years, our projects have received a lot of recognition and love from our customers. This keeps us motivated to build futuristic spaces where living and working are more efficient. Our upcoming residential projects SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi and commercial projects SATYAM BUSINESS COURT at Manjari, PS ANGAN at Magarpatta Road, and JAYMALA BUSINESS COURT at Manjari are created keeping the needs of the future generations in mind.
01: Plan your financesBuying a property is a huge financial commitment. Therefore, the first logical thing to do is to be financially prepared for the purchase. Most people opt for a loan to buy a property. To get the best deal from the bank of home finance institution, you need to prepare your financials in a manner that highlights stability and a low-risk profile. Here are some tips:
- Repay all high-interest debts like credit cards and personal loans
- Start saving for the down payment since a property loan is usually around 70-80% of the purchase amount. You will also have to factor in brokerage and other costs associated with buying it
Remember, being financially prepared will help you estimate the price at which you want to close the deal and look for options accordingly.
02: Avoid buying on market fluctuationsAsk yourself why you are buying the property. If you want to live there, then create a checklist of amenities and features you would need to live happily. If you are planning to rent it, then make another list of features and amenities based on the type of tenants you can expect in the locality and their needs. Avoid buying a property only because the markets are down and the real estate rates are low. Always purchase based on your needs and not market fluctuations.
03: Talk to a reputed real estate agentThere are many aspects that one needs to keep in mind while buying a property. These include the strength of the construction, local amenities, proposed changes in infrastructure in the locality that might impact its demand, quality of the neighborhood, etc. Researching all these aspects yourself would demand a lot of time and effort. Hence, it is prudent to avail of the services of a reputed real estate agent who is aware of the area and can help you find the best deals for your needs.
04: Inspect the property carefullyA property inspection can help you uncover issues with its structure, electrical wiring, plumbing, seepage, and any other issues that demand expensive repairs. Identifying them can help you negotiate with the existing owner efficiently. However, this needs the assistance of a professional. Many real estate agencies have professional property inspectors that can help identify such problems and help you make a relevant offer.
05: Look at maintenance costsOnce you buy a property, you will have to pay monthly/yearly maintenance charges for the upkeep of the premises. This can vary from Rs.1000 to Rs.10000 or more per month. The maintenance charges are based on the expense of the property and the amenities offered by the builder. So, if you are buying an apartment and the complex has an in-house swimming pool and gymnasium, then its maintenance charges would be higher than a complex that does not have these amenities. Make sure that you review these charges carefully.
06: Check for natural light and ventilationHomes/offices that do not receive a lot of natural light or ventilation are usually not preferred by home buyers. So, if you end up buying one, then finding a buyer at the right price might be difficult in the future. Hence, make sure that you choose a property that receives adequate natural light and is designed for ventilation. Lastly, if you are purchasing the property from a builder, then ensure that you check the RERA Registration and other approvals carefully. In Pune, Sankla Buildcoon has a reputation for being one of the most trusted developers of homes and offices. If you are looking to buy a residential property for the first time, then you can consider our projects SATYAM NIRANJANI at Hadapsar, SOMMET at Bhugaon, and AVANI at Mohammadwadi. On the other hand, if you are planning to buy an office space, then you can go through our modern offices at PS ANGAN, Magarpatta Road, and Satyam Prima, Manjri.
- Have real estate projects and agents registered.
- Usher in transparency in the sale of flats, plots and buildings.
- Protect customers, allottees, real estate agents and promoters who are involved in real estate transactions.
- Facilitate dispute resolution through a dispute settlement method.
- Create an appellate tribunal which buyers can approach to resolve disputes.
- Provide recommendations to the appropriate government authorities in matters related to development and promotion of real estate.
Features of MahaRERA
- RERA AUTHORITY: MahaRERA handles registrations related to the state of Maharashtra as well as the union territories of Dadra and Nagar Haveli, and Daman and Diu
- VOLUME OF GRIEVANCES: Up to 23 September 2019, the regulatory authority received 8,968 complaints; of these, 8,351 complaints were against registered projects and 617 complaints were against unregistered projects. 5,355 orders have been passed against registered projects and 351 orders have been passed against unregistered projects
- EASY TO USE WEBSITE: MahaRERA also has an official website which is very user-friendly ( https://maharerait.mahaonline.gov.in/) and is detailed and easy to understand. It provides information of projects which have been registered with the MahaRERA. It facilitates homebuyers and property investors to be better informed. Users of the website can find information related to expected date of possession, credibility of brokers, etc. Most importantly, now that borrowers/home buyers know when the project is going to be completed, they can decide when they should apply for a home loan.
- BUYER FRIENDLY: MahaRERA is buyer friendly because only projects registered under MahaRERA are permitted to advertise. Delays in completion of projects are handled stringently; in case of delay in project completion, If the allottees / buyers do not want to withdraw from the project, the builders are required to compensate the buyers by way of refunding the buyers’/ allottees’ money along with interest at the stipulated rate for every month of delay till the developer hands over the property to the allottee.
Benefits of MahaRERA
- HIGH LEVEL OF TRANSPARENCY: Before RERA Act, there was a lack of transparency in the real estate sector; buyers were left to the mercy of developers to obtain possession of property they purchased, promoters and developers could publish non-factual advertisements, etc. However, with the introduction of RERA, the consumer is provided all the information related to the project he has purchased his property in, the developer has to mandatorily adhere to registration of the project with RERA, report on its progress, intimate about delays, if any, is penalized for the same, etc. Additionally, buyers have the right to question each step involved in both development and promotion.
- ADHERENCE TO LAW AND ORDER: Now that MahaRERA has come into force, there is no scope for developers to funnel funds collected from investors and redirect them to some other projects. Down payment has been fixed at 10%. 7Non-compliance to RERA provisions attracts penal action of imprisonment up to 3 years as well as financial penalty.
- ACCOUNTABILITY: It is mandatory for Developers to deposit 70% of all funds paid towards a particular project into a single account. These funds are to be used only for construction or cost of land. Developers must also report progress periodically on the project to the regulatory authorities
- INCREASED TRUST: Perhaps the greatest benefit that customers have is the reinforced trust in the real estate sector. This has led to reinvigoration of the sector and greater confidence among property buyers.