Friends,
I want to know more about the commercial space within mahagunpuram. What are mahagun's plan with respect to it and is it really worth considering ?
- Kapil
Sunday, October 31, 2010
Friday, October 29, 2010
Which bank is right for me to take home loan : Tips on Home loan
Owing a Home is lifetime wish and dream for many. In order to fulfil our dream, we tend to stretch all our financial muscles. And in this process, we take help of Home loan apart from our own savings. But, choosing a right bank for loan is not an easy task, as a loan has impact on your future financial health and livings.
Following are few things that you should keep in mind while making a choice.
- Interest rate: Probably the most important aspect of deciding on a home loan provider and becomes all the more important if you are going for a variable/floating rate option. Generally, every bank will have a prime lending rate (PLR) of its own and the Rate of Interest (RoI) that you are offered will include a discount. Banks are legally obliged to keep this discount for the entire life of loan. For example, if published PLR of XYZ Banks Ltd. is 11.5% and you have been offered a discount of 2.25% then the effective RoI at the start of your loan would be 11.5-2.25= 9.25%. With a change in RBI rates, Bank will change its PLR but the discount will remain same and thus the variation is expected to be inline with RBI policies. I strongly recommend going for a bank who has published PLR which gives them very little room to change the variable rate at their discretion. Also,
- If you are going for some of the custom-built offers (like fixed 8% RoI for first two year then applicable floating rate), make sure that you understand very well as to what floating rate would be applicable once the honeymoon period of first two years is over. I know of people who would pay more than what they could have by going straight for good deal in floating rate.
- If you are going for Fixed Rate then it’s a simple question of finding out the lowest RoI at offer as you can be fairly sure that RoI will remain same for most of your loan tenure. [However, technically, bank can alter their Floating Rates as well]
- Pre-payment: The ideal bank would be the one who does not charge you anything even if you pay back the full loan amount. But like most of the other ideal things, this does not exist as well. Where most of the banks will have no penalty for part pre-payment (provided you do not pay-back the full amount within one year of having made the part-payment), almost all of them will charge between 2 to 3% (plus applicable taxes) for a full closure of the loan. Also, few banks only allow certain % of remainder amount to be part-paid in a given calendar year which I personally found NOT BEING CUSTOMER FRIENDLY policy. It’s always a very good idea to get all these details sorted out and clarified.
- Processing fee & time taken: Next in the list of important things would be to find out how much Bank will charge in total for the entire processing. I know of few sales people who would never tell you the total amount and will give you little surprises at different stages of the processing in the name of technical evaluation/property survey etc. Also, for most of us who are busy with their work-life, ease at which processing gets done matters as well. However, I would recommend doing a comparison between time you spend Vs benefits you get in long run. Never opt of a bank just because it sends an executive to your place to help you fill-in the form, collect documents from you etc.
- Penalty clause for missing payments: You should again make sure that you understands how would missing a payment (or may be two) impact you financially and otherwise. Some banks will be lenient and charge you anywhere between nothing to a minimal amount where as few others will see this as an opportunity to get extra out of you.
- Post disbursement customer care: Despite of tall claims of a smooth customer services post disbursement, I have found them to be no or of very little use. With most of the banks providing you an online account, you hardly have to speak to someone. And in the unfortunate event of something having gone wrong, Customer Care (?) of all the banks will be equally UNHELPFULJ. Summary is – this should NEVER be a contributing factor for you to decide on a bank to go with for your home loan.
Read the Terms & Conditions document carefully (if you canJ) before signing it and ask as many questions as you think are necessary to keep you at peace post-signing the contract.
Saturday, October 23, 2010
Miscellaneous Updates : For all members
Friends,
I have updated the 'T n C' as below:
- Renamed the page as 'New Member/ T n C'.
- Updated the page content to include the summary of features on this blog. This will be helpful to the new members to get most out of this forum
I need help from everybody. As, my main goal to make it a community blog, I have decided to extend "Author" rights (Blog Posting) to all the members, whose email IDs are present/updated in our common contact excel sheet.
You must have got the email of the invitation. Just login to blogger with your email ID and you will see this blog in your blog list. It simple to use. Please feel free to contact us via email, in case of any difficulty.
I would urge all to contribute to this blog by posting any relevant information about the project and Ghaziabad City Development.
For New Members
Please join the blog and add yourself to the contact list located at the below link. You will be given rights with invitation only (This is done to keep the contact details available within ourself).
http://mahagunpuram.blogspot.com/p/members-area.html
Once your email ID is updated, we will send you invitation to become the blog's author.
-Gyani
I have updated the 'T n C' as below:
- Renamed the page as 'New Member/ T n C'.
- Updated the page content to include the summary of features on this blog. This will be helpful to the new members to get most out of this forum
I need help from everybody. As, my main goal to make it a community blog, I have decided to extend "Author" rights (Blog Posting) to all the members, whose email IDs are present/updated in our common contact excel sheet.
You must have got the email of the invitation. Just login to blogger with your email ID and you will see this blog in your blog list. It simple to use. Please feel free to contact us via email, in case of any difficulty.
I would urge all to contribute to this blog by posting any relevant information about the project and Ghaziabad City Development.
For New Members
Please join the blog and add yourself to the contact list located at the below link. You will be given rights with invitation only (This is done to keep the contact details available within ourself).
http://mahagunpuram.blogspot.com/p/members-area.html
Once your email ID is updated, we will send you invitation to become the blog's author.
-Gyani
Mahagun Mahagunpuram project status : Site Picture Set 4 : October 2010
Continuing with 4th Set....
[Click on the images to ZOOM]
[Click on the images to ZOOM]
Mahagun Mahagunpuram project status : Site Picture Set 3 : October 2010
Here goes 3rd Set....
[Click on the images to ZOOM]
[Click on the images to ZOOM]
Mahagun Mahagunpuram project status : Site Picture Set 2 : October 2010
Friends.. we have a number of pictures for Oct 2010... just enjoy :)
[Click on the images to ZOOM]
[Click on the images to ZOOM]
Mahagun Mahagunpuram project status : Site Picture Set 1 : October 2010
Hi Friends,
For sometime, I had been away of the blog. Have just come again, just to see a peaceful observation :)
Here is some mood refresher for you. Our dear member Siddharth has shared some of the site picture, which shows some good progress.
There in no caption on the pictures, so its a puzzle to solve you all (which one is which block). Let us see how correctly you can figure out about your dream home.
For sometime, I had been away of the blog. Have just come again, just to see a peaceful observation :)
Here is some mood refresher for you. Our dear member Siddharth has shared some of the site picture, which shows some good progress.
There in no caption on the pictures, so its a puzzle to solve you all (which one is which block). Let us see how correctly you can figure out about your dream home.
Monday, October 4, 2010
Flat Booking Cancellation Costs A Lot : Be careful while choosing a property
With a slew of launches in the affordable housing category last year, home buyers now flooded with options to choose from. And with your cellphone buzzing every hour with advertisement of a new housing project, you tend to give in to an attractive offer which may not really suit your needs. Deepak Srivastava, an information technology professional working with a Gurgaon-based firm, fell in for one such deal. The price range was well within his reach and a slight agent push, Srivastava didn't think twice before booking a residential project in Noida. One month down the line, he realized the apartment he had booked, though affordable, was too small to serve any purpose once his family and assets grew. At this stage, he regretted not stretching a bit and booking a bigger apartment instead.
Srivastava's case is not an isolated one. A lot of people may want to cancel a booking done in haste for one reason or the other. Though there is a provision for cancellation, the procedure is complicated. It may take a few months before your primary concern, the refund of the booking amount,gets sorted out. Also, it's expensive: You would be penalized for not sticking to your decision and may lose the initial booking amount altogether.
But once you are decided and are ready to pay the price, here's how to go about it.
Inform your bank
If you are already into a home loan, which the bank is cancelling, for the apartment, you better be prepared to shell out some money at the outset. You need to foreclose the loan and repay the amount it has disbursed to the developer. Says Harmit Chawla, vice-president (sales and marketing), Paras Buildtech Pvt. Ltd: "Usually, the applicant has to inform the bank and the developer about the cancellation. Your bank will then approach the developer's sales and marketing department to get the refund of the money that has been disbursed. This whole process may take a month or more." At this stage, you need to pay a foreclosure charge. This is usually 1-3% of the loan amount. Once the developer pays the entire amount to the bank and the buyer pays the penalty on closure, the bank issues a no-objection certificate to the customer. The customer has to submit a copy of the same with the developer.
•Inform the developer
•Convince the developer
•Ask for refund
•What you lose
•What you should do
Inform the developer
Do this at the earliest. In fact, if you make up your mind before your loan amount gets disbursed, the process gets much simpler and may even get wrapped up within a week or so without showing much losses in your account.For this, you need to submit an application along with relevant papers at the developer's sales or corporate office in person. You can also send an email along with scanned copies of your relevant papers. However, in your absence, the process could take more time. At the sales office, you need to fill a form, giving your personal details, such as name, age and address. Says Siddharth Yadav, owner of a Delhi-based event management firm, who cancelled his booking in a Noida residential project recently: "The letter of cancellation is usually addressed to the marketing head of the developer firm. You also need to give details of the price at which you bought the apartment along with details of payments made till date. You also need to give details of the apartment that has been booked along with its area specifications. Apart from payment details, you need to give a reason for cancelling booking." Don't forget to collect the receipt from the developer's sales and marketing department.
Convince the developer
After you have intimated the developer about your intention, the next step is to convince him that you can't do without cancelling the booking. Though legally you are not bound to give any reason, your developer would insist you fill the space. Developers would usually discourage you from cancelling a booking because it doesn't work for them. One cancelled booking would mean they would fall short by that much amount. Usually, the construction and fund inflow is directly related. "The developer will try not to cancel the deal. Also, with each cancellation, the department has to undergo a lot of paper work and approvals for refund. Therefore, the reason cited for cancellation must be strong enough to convince the sales and marketing department," says Chawla. Developers say they demand a valid reason to stop dealing with investors with a fickle mindset. Says a developer, who didn't want to be named: "The cancellation forms becomes a database of buyers. Sometimes, it is seen that same buyer may have cancelled a booking elsewhere, too. So, in case the same buyer approaches us in future for some other project, we blacklist him and try not to get into any deal with him. Then, it also acts like a feedback for us. In case the buyer points out some defect in our construction quality or the project, it alerts us and we try to rectify the defect."
Ask for refund
Convincing your developer to cancel deal is winning only half the battle. The next and one of the most important steps is to ensure you are refunded what you've paid till now. To safeguard the interests of the developer and the buyer, a refund clause is always a part of the builder-buyer agreement. However, when submitting your cancellation application, remember to put in a request for the refund separately. The refund amount depends on the builder-buyer agreement, the amount invested till the date of cancellation and the status of the project. Moreover, it varies from developer to developer.
The refund is paid through current-dated cheques in favour of the applicant. The builder may release the amount in one go or in instalments. "Usually, the sales staff of the company gives a tentative date of refund," says Prasan Aggarwal, director and business head, Allcheckdeals.com, a part of the InfoEdge Group that owns Internet brands, such as Naukri.com, Jeevansathi.com, 99acres.com and Shiksha.com. You can collect the refund from the same office on the date mentioned.
What you lose
Changing your decision comes at a price. Not only would you forego the initial booking amount, the builder may also deduct a penalty from the remaining payment you've made. Says Anil Goel, chairman, Piyush Group, a New-Delhi-based developer: "As per the industry norms, the booking amount is non-refundable. However, payment done after the booking amount is refundable." Depending on the loss that the developer incurs on account of the cancellation, he may charge you a penalty. While some builders deduct 10% of what you've paid apart from the booking amount, others mention the amount as the "cost of property". Some others deduct as high as 20% of the invested amount.
What you should do
Mint Money advises you to tread carefully when buying a house and not fall for attractive deals. Know what you are getting into and whether it will suit your long-term needs. However, as a precautionary measure, try and reduce the cost on cancellation in the builder-buyer agreement because cancellation charge vary widely. For instance, in luxury projects, the developer may cite higher loss per unit and charge you accordingly.
Another measure could be paying by cheque and not cash. For decisions that are quick enough, a cheque blocking request at your bank may save you allthe trouble. Always remember to obtain the receipts of each payment you make to the developer. You would need these when submitting the cancellationapplication. Cancelling may not always work for you. In fact, you stand to lose a lot of money in the process. Moreover, looking for another property may take some time. So, make sure you really want to cancel what you've booked.
Srivastava's case is not an isolated one. A lot of people may want to cancel a booking done in haste for one reason or the other. Though there is a provision for cancellation, the procedure is complicated. It may take a few months before your primary concern, the refund of the booking amount,gets sorted out. Also, it's expensive: You would be penalized for not sticking to your decision and may lose the initial booking amount altogether.
But once you are decided and are ready to pay the price, here's how to go about it.
Inform your bank
If you are already into a home loan, which the bank is cancelling, for the apartment, you better be prepared to shell out some money at the outset. You need to foreclose the loan and repay the amount it has disbursed to the developer. Says Harmit Chawla, vice-president (sales and marketing), Paras Buildtech Pvt. Ltd: "Usually, the applicant has to inform the bank and the developer about the cancellation. Your bank will then approach the developer's sales and marketing department to get the refund of the money that has been disbursed. This whole process may take a month or more." At this stage, you need to pay a foreclosure charge. This is usually 1-3% of the loan amount. Once the developer pays the entire amount to the bank and the buyer pays the penalty on closure, the bank issues a no-objection certificate to the customer. The customer has to submit a copy of the same with the developer.
•Inform the developer
•Convince the developer
•Ask for refund
•What you lose
•What you should do
Inform the developer
Do this at the earliest. In fact, if you make up your mind before your loan amount gets disbursed, the process gets much simpler and may even get wrapped up within a week or so without showing much losses in your account.For this, you need to submit an application along with relevant papers at the developer's sales or corporate office in person. You can also send an email along with scanned copies of your relevant papers. However, in your absence, the process could take more time. At the sales office, you need to fill a form, giving your personal details, such as name, age and address. Says Siddharth Yadav, owner of a Delhi-based event management firm, who cancelled his booking in a Noida residential project recently: "The letter of cancellation is usually addressed to the marketing head of the developer firm. You also need to give details of the price at which you bought the apartment along with details of payments made till date. You also need to give details of the apartment that has been booked along with its area specifications. Apart from payment details, you need to give a reason for cancelling booking." Don't forget to collect the receipt from the developer's sales and marketing department.
Convince the developer
After you have intimated the developer about your intention, the next step is to convince him that you can't do without cancelling the booking. Though legally you are not bound to give any reason, your developer would insist you fill the space. Developers would usually discourage you from cancelling a booking because it doesn't work for them. One cancelled booking would mean they would fall short by that much amount. Usually, the construction and fund inflow is directly related. "The developer will try not to cancel the deal. Also, with each cancellation, the department has to undergo a lot of paper work and approvals for refund. Therefore, the reason cited for cancellation must be strong enough to convince the sales and marketing department," says Chawla. Developers say they demand a valid reason to stop dealing with investors with a fickle mindset. Says a developer, who didn't want to be named: "The cancellation forms becomes a database of buyers. Sometimes, it is seen that same buyer may have cancelled a booking elsewhere, too. So, in case the same buyer approaches us in future for some other project, we blacklist him and try not to get into any deal with him. Then, it also acts like a feedback for us. In case the buyer points out some defect in our construction quality or the project, it alerts us and we try to rectify the defect."
Ask for refund
Convincing your developer to cancel deal is winning only half the battle. The next and one of the most important steps is to ensure you are refunded what you've paid till now. To safeguard the interests of the developer and the buyer, a refund clause is always a part of the builder-buyer agreement. However, when submitting your cancellation application, remember to put in a request for the refund separately. The refund amount depends on the builder-buyer agreement, the amount invested till the date of cancellation and the status of the project. Moreover, it varies from developer to developer.
The refund is paid through current-dated cheques in favour of the applicant. The builder may release the amount in one go or in instalments. "Usually, the sales staff of the company gives a tentative date of refund," says Prasan Aggarwal, director and business head, Allcheckdeals.com, a part of the InfoEdge Group that owns Internet brands, such as Naukri.com, Jeevansathi.com, 99acres.com and Shiksha.com. You can collect the refund from the same office on the date mentioned.
What you lose
Changing your decision comes at a price. Not only would you forego the initial booking amount, the builder may also deduct a penalty from the remaining payment you've made. Says Anil Goel, chairman, Piyush Group, a New-Delhi-based developer: "As per the industry norms, the booking amount is non-refundable. However, payment done after the booking amount is refundable." Depending on the loss that the developer incurs on account of the cancellation, he may charge you a penalty. While some builders deduct 10% of what you've paid apart from the booking amount, others mention the amount as the "cost of property". Some others deduct as high as 20% of the invested amount.
What you should do
Mint Money advises you to tread carefully when buying a house and not fall for attractive deals. Know what you are getting into and whether it will suit your long-term needs. However, as a precautionary measure, try and reduce the cost on cancellation in the builder-buyer agreement because cancellation charge vary widely. For instance, in luxury projects, the developer may cite higher loss per unit and charge you accordingly.
Another measure could be paying by cheque and not cash. For decisions that are quick enough, a cheque blocking request at your bank may save you allthe trouble. Always remember to obtain the receipts of each payment you make to the developer. You would need these when submitting the cancellationapplication. Cancelling may not always work for you. In fact, you stand to lose a lot of money in the process. Moreover, looking for another property may take some time. So, make sure you really want to cancel what you've booked.
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