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...
8 Reasons why your Home Loan Got Rejected

8 Reasons why your Home Loan Got Rejected

Are you disappointed and confused why your housing loan got rejected? Well, don’t worry we have got the answers for your question. In some cases, banks do reject home loan applicants for a wide variety of reasons. They may or may not mention the exact reason. We are listing out all possible reasons why your home loan can be rejected. It is wise to go through them before applying for a loan. Also Read: 10 Key Tips for Smooth Home Buying Experience Poor Credit Score Banks and financial institutions in India have developed a method to track your credit history. This information is freely available for lenders to verify when you apply for a loan. If you have defaulted on previous loans be it either housing loan, personal, loan, credit card payments, everything will be reflected in the credit score. If this is bad they might reject your loan application. The best thing to do is to check your credit score in advance before applying for a loan. Unapproved Builder/Project Each and every builder have tie-ups with different banks in your city. If you apply to a different bank, they might reject your application. Consult your builder and get to know which bank has pre-approved their project. This will save you a lot of time and effort. You might also end up getting a small discount in processing fees. Over-Valued Property It doesn’t matter at what price you and the seller have agreed for the property. Banks have their own professional visiting your property and doing their own due diligence. If their valuation doesn’t match they will not approve...
6 Important Things You Didn’t Know About Real Estate Agents

6 Important Things You Didn’t Know About Real Estate Agents

Are you planning to sell or buy a home through a real estate agent, then you need to know some important things about them. Real Estate agents are a great way to find potential buyers for your property. Most of the real estate agents charge around 1-2% of the property value as their brokerage commission. Before you hire someone, negotiate and finalize the brokerage percentage. Also, check his service record by talking to his references. We are listing some of the important things that you need to know about real estate agents. Also Read: Things to Consider Before Buying a House in a Gated Community Price Inflation: Most of the agents increase the price of your house than what you originally quote. Let’s say that your selling price is 50 Lakhs, they increase the price to 52 Lakhs and make a profit on the extra 2 lakhs. So make sure they sell at a price which is mutually acceptable for both you and the agent. Try to look for an agent who is transparent with dealings. They are Part-Timers: Most of the real estate agents in a city like Chennai are part-timers. They have more than one business running for their livelihood. Doing real estate alone might not be enough to run their families. So when you witness a delay from your agent, you can imagine that they may be occupied with other business too. Buy house cheaper without an agent: This statement is largely true. In most cases, you can get a house at a much cheaper price if you approach the seller directly than through an agent....