5 Things to Consider in Mind While Taking an NRI Home Loan

5 Things to Consider in Mind While Taking an NRI Home Loan

NRIs spend a lot of their career abroad and send money back to India for their family and savings. Most of their funds either go to a fixed deposit or for buying a property. Most NRIs doesn’t approach a bank for funding when buying a house. They think that getting a loan for NRI is not easy and requires a lot of clearance and documents. This is a wrong idea and we are writing this article for helping the NRIs in understanding the home loan process. Now let us look at important aspects of NRI home loan. Also Read: NRI’s should avoid these Mistakes while Investing in Real Estate 1. Eligibility The minimum requirements for taking a home loan for NRIs are qualification and Income. Though these vary from banks to banks there are some standard requirements like one should have a minimum diploma or a graduate degree. As per the income requirements one should have a minimum 3 years of work experience in a foreign country. If you are earning any additional income in India it will also be considered for the loan eligibility criteria. 2. Rate of Interest In most of the banks the rate of interest for home loan for both resident Indians and NRIs are almost the same. Some banks might charge a bit extra interest rate for NRIs compared to resident Indians. 3. Loan Tenure The loan tenure is different for NRIs and is a lot lower than Indians. NRIs earn a lot more than resident Indians and so their repayment ability is also more. The number of monthly installments will be lower for...
6 Important Things You Should Know About MCLR

6 Important Things You Should Know About MCLR

Getting a housing loan and paying the monthly EMIs regularly is a huge financial burden for most of the families in India today. RBI last year came up with a new structure which will determine the interest rate for housing loans and some other loans like personal loans. This is called as MCLR, we will be discussing in detail about it and its benefits. Also Read: 8 Reasons why your Home Loan Got Rejected 1. What is MCLR? MCLR stands for Marginal Cost of Funds based Lending Rate. This will be followed by banks and financial institutions in India starting April 1st, 2016. This has replaced the previously followed base rate. MCLR is considered more efficient and cost effective both for lenders and loan takers. 2. Why MCLR Previously banks followed the base rate of interest to determine the loan interest rates. Whenever RBI revised the Repo rate the banks will change the interest rate but it took a long time to change. This affected the borrowers. Even after many warnings from RBI banks did not pass on the interest rate benefit instantly to customers. This forced the RBI to come up with MCLR which will ensure the rate of interest changes as soon as RBI changes the Repo rate. This will ensure cheaper loans and interest rates for customers. 3. Type of Loans for MCLR Before going there, let us understand the two types of loans. Fixed rate Loan: The rate of interest is fixed at first and will remain the same throughout the loan tenure irrespective of the repo rate change by RBI. Floating rate Loan: The...
NRI’s should avoid these Mistakes while Investing in Real Estate

NRI’s should avoid these Mistakes while Investing in Real Estate

NRIs are basically wealth creators and also they aide in our country’s Forex enhancement. They send back huge sums of money each month back to India either using a money transfer service or banking platform. This money is invested in bank fixed deposits, gold, real estate and a small part in Equity markets. Investing in Indian Real Estate is a tricky business which requires a lot of information and clarity. This article discusses various mistakes NRIs make when it comes to real estate investment. Also Read: 5 Things to Consider when Buying a Luxury Home Delaying the Investment Most of the NRIs plan to come back to India and settle here when they retire. So they think investing into a property in their early age is not a good idea and postpone the investment. Instead of investing when they are 25 they prefer to invest when they are 45. Till then they prefer to accumulate their money in the fixed deposit. They will consider buying a property just 2 years before coming back. This is a bad investment decision. Property prices in India are growing all the time. If a property which is available for Rs.1 Crore when they are just 25 years old will cost around Rs.3-4 Crores when they are 45. They will end up paying 2-3 times more if they postpone. So it is highly advisable to buy property when the NRIs are young. Investing only in their Home Town This is the single largest mistake made by 90% of the NRIs. They prefer to settle down in India during their old age and so consider...
The Risks of Buying a Home Without a Realtor

The Risks of Buying a Home Without a Realtor

It is a general opinion that brokers are generally selfish and indulge in many fraudulent activities which will lead to inflated home prices and issues. While this is partially true there are a bunch of realtors who are professional and they really care for the home buyers. This article is written keeping in mind good realtors in the market. Now let us look at various risks involved in buying a home without a realtor. Also Read: The 5 Best Ways to Search for Homes Paying a Premium If you don’t have a realtor while negotiating pricing with the seller there is a chance that you might end up paying extra. Without a broker the price is decided by the home owner who may not be an expert in the current market pricing. It is a common occurrence that they will over price their property and also might not be willing to negotiate. The same scenario with a broker will be different. He will have a clear idea about the market pricing and also know how to evaluate a property and will guide the seller in pricing it right. Lack of Availability. If you have selected a property for buying without any realtor, then you have to deal directly with the seller each and every time. Like you, the seller is also a common man with his own set of commitments and timing constraints. He might not answer your phone call all the time as he might be busy with his work. He might not be available for a property visit at your convenient time and you need to reschedule...
The 5 Best Ways to Search for Homes

The 5 Best Ways to Search for Homes

Finding a home for rent or sale it not an easy task, mainly considering the summer heat and the cost of homes. Good homes with decent valuations are sold instantly and it is tough to monitor all the offers which suit our requirements. This is why we have come up with a list of possible ways to find your dream home both using offline and online methods. Also Read: House Hunting Problems Faced by Bachelors in Chennai 1. Use your personal contacts Inform your close ones that you are looking to buy a new home. Some of these contacts can be relatives friends office associates neighbors Social acquaintances You can either call them personally or just Whatsapp them as most of the people use WhatsApp now. Homes that comes through them are most trustable and also reliable ones. 2. Use Local Classifieds Use local area newspapers which have the classifieds section. You can mention what kind of home you are looking to buy and area constraints etc along with your contact number or email. Local newspaper ad will only cost around Rs.300 per distribution. Most of these local newspapers are published weekly once and come in both local and English languages. 3. Use online classifieds There are a lot of free classifieds portals which you can make use of. People who are selling their homes will create a free ad in those portals you can just search based on your preferred location and you will find their contact details. This is a free way to search for homes. Some of the popular online classified sites are OLX, Quikr, Sulekha,...
Pros and Cons of Buying a Home without a Real Estate Agent

Pros and Cons of Buying a Home without a Real Estate Agent

When it comes to buying a home either new or old, the first thing that comes to our mind is our real estate agent. All these years, whenever we need a new home, we just pick up the phone and dial our agent explaining our requirements. With the growth of online marketplaces and social media, the process of house hunting has changed dramatically. We will be looking at the advantages and problems of searching a home with an agent. Pros More Trust and Knowledge: If you come across a property for sale without an agent, it means you could already know the seller. He could be your neighbor, friend, family, work associate, etc. That being the case you have extra trust on this person and also on the property. Also Read: 6 Important Things You Didn’t Know About Real Estate Agents Avoiding the Commission: A real estate agent charges anywhere between 2-3% for the buyer and 1-3% for the seller. If you plan to buy a home without an agent, it means you are saving around 3% of the total property cost. Better room for negotiation: Since there is no brokerage involved, you can cite this to the seller and negotiate the price for extra 3-5% discount. Seller will also be interested in negotiation since there are no middlemen. Avoid Price Hike: It is a common practice by brokers to inflate the cost of the house. If the seller is willing to sell the property for Rs.50 Lakhs, the agent will increase the cost to Rs.55 lakhs to get some additional commission. If you look for properties without an...