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Factors you should consider before choosing a home builder

Choosing the right builder plays a vital role while buying your dream home. Here are some essential factors you need to check while choosing the right builder.

1. Check the track record of the builder

Choose a builder with good experience and valid track record. It is vital to check the construction expertise of the builder and their years of existence in this field.  This will help you understand the type of projects they have, quality of construction, specifications, on-time delivery and latest technology they implemented for construction.

2. Post Sales Services

Before signing the agreement, it is important to check the post sales services of the builder. Ideally, you can avail the service of post sales from the moment you book an apartment with the builder. This includes the periodic updates of the project, helping to select the home loans of your choice, maintenance of the delivered till the formation of the resident association.

3. Visit the completed project of the builder

Seeing is believing! Visit some of the completed projects of the builder and directly interact with the residents about their experience about the builder. You will get the real picture about the quality of the projects they are delivering, amenities provided inside the project, layout of the project, etc. After visiting the past projects, you can evaluate and validate the claims of the builder.

4. Check the builder’s industry association

Make sure that the builder is a member of reputed builders association like Confederation of Real Estate Developers Association of India (CREDAI) or Builders Association of India (BAI).  These associations provide certain rules and regulations that are mandatorily followed by the member builders. The builder who violates the rules will be blacklisted.

5. Check the builder’s website and social media

Website of a builder is one of the major resources of information. Check the information such as their current projects, completed projects, location, amenities, upcoming projects, awards, customer testimonials, etc. You can also track the property appreciation of their completed projects.

6. Check the Awards and certifications

A good builder is always bestowed with numerous prestigious awards for their efforts. A builder with ISO 9001 certification indicates that they ensure quality in their projects and services. Also, check the CRISIL grading of the builder.  DA2+ is the highest grading given to any Kerala builder. The builder who constructs environment friendly green building projects should be a member of the Indian Green Building Council (IGBC).

7. Real customer experience

To know real customer experiences you need to interact with a few existing customers of the builder.  A good builder will display their customer experiences on their website and social media platforms.

 

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Guide for NRIs to sell inherited property in India

Many Non-Resident Indians (NRIs) have properties in India which they inherited from their parents or ancestors. Most of the time, they want to liquidate it. For NRIs, who had left India for so many years ago, may not be aware of the procedures of selling the inherited property.

Here are the procedures that an NRI should go through before selling the inherited property.

Step 1: Transfer the title of the property to your own name

The foremost thing you need to do after inheriting the property is transferring the title of the property to your own name. This process can be done by ‘mutation of revenue records’. For this you need to have a copy of the registered will or deed of partition, in case you haven’t possess these, you need to obtain the death certificate and apply for legal heirship.

Step 2: Arrange all the documents

After you got transferred the title of the inherited property, put together all the documents that need to sell the property. Here are the documents you need to sell.

1. Original title deed

2. Encumbrance certificate for the last 30 years

3. Possession certificate

4. Latest land tax receipt

5. Location sketch

6. Prior deed

7. Latest building tax receipt

8. Occupancy certificate

9. Approved plan

10. Id proof and address proof

Before getting into the actual process of sale, you need to identify the sale value of your property. Here you can seek the help a professional firm or you can do it by yourself after researching the market. While selling your residential property, NRIs should aware of the tax implications such as short and long term capital gains. When an immovable property is sold after a period of 2 years of its purchase is taxed at 20.8 percent. For inherited properties, the date of purchase of the original owner is considered for calculating the capital gain.

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Documents needed for an NRI to transfer title of an inherited property to his name

A Non-Resident Indian (NRI) can inherit any type of property in India. This includes residential, commercial and agricultural land.

Let’s check out what are the documents required for an NRI to transfer the title of inherited property to his name.

Deed of Partition

If there is a partition deed already executed among the family members who had inherited the property, based on the said deed each individual will get his share. Thereafter each shareholder can get the property mutated in his name

If there is no partition deed among the family members, after the death of parents/ relative the legal heirs will be entitled to get the property. This happens in case parents die intestate (without executing a will). The legal heirs will have to apply for a death certificate of the deceased father/mother. After obtaining the death certificate, application for legal heirship certificate has to be submitted before concerned Taluk office. The Tahasildar after seeking a report from the village office will proceed further and take steps for gazette publication. Based on this legal heirship certificate will be issued to legal heir.

To prove the title, following documents after mutation are required

1.    Land tax

2.    Possession certificate

3.    Encumbrance Certificate for 15 years

4.    Location sketches of the property

 A registered Will

If the parents have already executed a registered will, then based on this will, after the death of executant the property will come to the hands of beneficiaries mentioned in the said will. To prove the title, the death certificate of the executant of will is required.

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How NRI investors gain from falling rupee

The Indian rupee has depreciated 14% in value against the US dollars this calendar year. If you are a Non-Resident Indian (NRI) investor then this could be the best time to own a property back in your homeland. The depreciating rupee value against currencies like the dollar, UAE dirham, pound, encourages a large of NRIs to invest in Kerala’s real estate market. Along with the dwindling rupee, the ready to implement RERA (Real Estate Regulation Act) bring in transparency and accountability makes the real estate the investment options for NRI invest. For a US-based NRI who would have got Rs 64 lakh for $100000 just one year back, but today he will fetch Rs. 71 lakh for the same amount which is a big gain. For example, an NRI who pays an EMI of Rs 51,000 on a home loan, his monthly deduction would be $797 in November 2017 and now it will be $718 for the same amount. In effect, he is saving $79 dollars which is equal to an amount of Rs 5609.

Major factors that an NRI should consider before making an investment

• An NRI can buy residential and commercial property in Kerala, but not allowed to buy agricultural lands, farmhouses, and plantations. But he can inherit such properties.

• An NRI should be aware of the builder, its projects, location, financial stability, quality of construction and on-time delivery etc

• Know the property documents related to the property such as the title deed, prior title deeds, latest tax receipts, encumbrance certificate, approved plan, building permit number etc.

• An NRI can avail home loan from any financial institutions registered with the National Housing Bank (NBC). He should hold a bank account in any authorised Indian Bank and make all transactions in Indian currency only. The repayment of loan can be done with NRO/NRE account or FCNR (Foreign Currency Non-Resident) deposits.

• Before investing into real estate an NRI should know that he is qualified for tax benefits. The NRIs can claim tax benefit according to section 80 C of Income Tax Act, 1961. The charges for the processing fee, stamp duty, registration, and municipal tax are applicable for the tax deduction.

• An NRI should know the ROI potential of the property. An NRI can sell or rent his property without constraint.

Interest

How to reduce interest on your home loan

When you consider buying a dream home, the best possible way to make it more comfortable and easy is taking a home loan. One of the major factors concerning about the home loan is its interest rate.  Since it’s a huge investment, the repayment of home loan should not be a burden for the borrowers.

Here are some smart tips to reduce the interest rate on your home loans.

1.  Short Term Home Loan Tenure

Shorter duration of the home loan will definitely increase the amount of EMI and that guarantees a faster repayment of your loan. This means the principal amount of your home loan is paid much faster that will result in the reduction of the absolute interest rate.

2.  Pay more EMIs

One of the effective ways to reduce your rate of interest is to pay additional EMIs. The extra EMIs you are paying will not only reduce the principal amount, but also the interest rate.

3. Refinance the home loan

To get the benefit of a lower rate of interest is transferring your existing home loan to another lender, which is otherwise called refinancing. You need to watch out for the best interest rate offers prevailing in the market. You can switch your home loan to another bank/ financial institution who offer a lower interest rate than your current lender. While evaluating the benefits, keep your eyes on the additional charges like processing fee, legal fees etc.

4. Make part-payment of home loan

Another effective measure to reduce the home loan interest rate makes a part prepayment. The surplus cash you paid will reduce the principal outstanding on your home loan which will definitely bring down the interest rates.

To know more about Skyline Builders projects which are approved by banks for home loans

 

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Benefits of buying a ready to move-in apartment

 

1. No waiting period

A major advantage of ready to move-in apartments is the absence of waiting period. You can immediately move in to your new home once the documentation work is over.

If you looking for a luxury apartment in Kottayam, then Skyline Exotica is the best option you can have. This ready to move-in apartment has received the completion certificate. Book an apartment at Exotica, complete the documentation procedures and start living with your family.

 

2. Can physically verify the apartment

You will actually get the real experience of your own apartment before buying it. You can physically inspect the apartment and other amenities before making the final decision.

This helps you make an informed decision while buying a new home. You and family are invited to visit our ready to move-in apartment, Skyline Campus Heights at Sreekaryam, Trivandrum.  Here, you can physically inspect the quality and design layouts at Campus Heights that will help you make a better choice according to your needs.

 

3. Can totally save Pre-EMI

The best thing about ready to move-in home is, you can avoid the payment of pre-EMI. Once the bank disburses the home loan, you can immediately start paying EMIs, which will effectively save a considerable amount of money. To avail this benefit, we have only few more villas available at Skyline Oasis, one of the ready to move-in villas at Kottayam.

Read More: How to create one crore worth asset with an initial investment of Rs. 25 lakh

4. Can save on rentals

Another advantage of buying ready to move-in home is that you can either save or earn rent. If you are paying very high rent buying a ready to move-in home will give you an immediate relief. And for those who are not planning to move in soon, then, they can let it out for rent and can start earning an income. This will be a supplement to your EMI payments. To know more about a Skyline ready-move-in apartment at Pala, visit Skyline Grace.

 

5. No GST implication

Ready to move-in apartments are exempted from Goods and Service Tax (GST). Book any of the ready to move-in apartment of Skyline Builders to avail the benefit

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Simple tips to protect your home during this monsoon

Paint external walls with waterproofing paints
Make sure that the external walls of your house are painted with waterproof coats. This will prevent water to seep from external wall to the internal walls.

Protect wooden furniture
You need to periodically check the wardrobes during monsoon. In order to avoid the musty smell, keep the doors of the wardrobe open for some time. Paint/polish the furniture will increase the longevity of your furniture.

Check electrical fittings
Old broken electrical fittings will cause electric shocks, voltage fluctuation and power off. To avoid accidents make sure that you check all the electrical fittings of your house. It is preferred to call an electrician to check and fix the electrical faults in your house.
AC outdoor unit should be kept raised from the sunshade, preferably on stands so that water stagnation can be prevented.

Check roofs and walls
Any cracks in the roofs and walls will lead to dampness and allow the moisture to get into the structure of your house. To safeguard, fill the hole with crack fillers and re-paint the walls. In high-rise buildings, there are chances for improper plant growth in the roof, which leads to cracks. To avoid this, immediately uproot the plants and periodically maintain the roof.

Clean all rooftop drains and rainwater pipe
Remove all the blockages in the rooftop drains and rainwater pipe. This will avoid clogging of water in sunshades and rooftops.

Avoid using carpets and rugs during monsoon
During monsoon, muddy footprints and moisture will cause damage to your expensive carpets. It is better to use bamboo carpet or coir mat during the rainy season.

Home Buying

Guide to finding the best home

Owning a home is a long cherished dream of many. It provides a sense of long-term security and is considered as the perfect investment that provides reasonably high returns over a period of time if one is able to invest in the rising curve of the real estate cycle. It is an emotional decision for few and a rationale purchase decision for the rest. Buying a home requires detailed research, financial planning and can be a time-consuming and a cumbersome experience at times. With the introduction of the Real Estate (Development and Regulation) Act (RERA), there is growing requirement for transparency and availability of credible information on the internet. However, before setting out on making a real estate investment, it is imperative for one to understand the nitty-gritties of the home buying process.

Right from cost of the property, government regulations and taxes applicable, costs involved while undertaking home loans to the limitations or benefits of the current regulations, there is a need to clearly understand all aspects.

Here are a few tips to reduce the stress involved in finalising your home purchase -

Assessment of Home Requirement:

Firstly, one needs to understand the important factors that will drive your investment decision. The location, address, surroundings, views, proximity to social infrastructure and the workplace, commuting time, security, potential for capital appreciation, quality of the developer, timelines for possession, quality of product and the budget play a key role in deciding which project one should invest in.

Financial Assessment:

Once you have identified which of the above key factors are of paramount importance, you should make a financial assessment of your budget, ability to leverage and address the financial commitment during purchase, construction and post occupation.

Do remember that it is not only the Agreement Value that you should provision for but also taxes that can vary during the lifetime of the project besides property taxes and Common Area Maintenance post occupation.

In a nutshell, the following costs should be envisaged for under-construction projects:

  • Agreement Value
  • GST and other taxes applicable
  • Stamp Duty and Registration Charges
  • Broker’s fee, if applicable
  • Other charges including parking, corpus, formation of society, legal charges, etc.
  • Payment terms

 

Post occupation, one should provision for the following:

  • Interior and fit out costs
  • Property taxes and common area maintenance
  • Property Insurance, if applicable
  • Mortgage payments, if loan availed

 

Availability of Finance and Schemes:

There are multiple banks and Non-Banking Finance Institutions (NBFCs) offering home loans and attractive schemes in tie ups with developers. A buyer has the option to pick and choose from these schemes and some of these come with assured insurance options in case of contingencies.

It is important to understand the terms and conditions of every scheme and the impact of delay in handing over possession, cancellation, liabilities, etc. It is also important to assess ones credit rating and loan eligibility prior to making an investment in a home. Very often, customers intend to sell existing properties to fund the new acquisition. However, one often is faced with a situation where the sale does not happen within the expected time frame, for various reasons resulting in payment default and an interest liability, thus adding to the cost of acquisition.

 

Research:

Research plays a vital role in finding and narrowing down your dream home. Earlier, real estate agents played a major role in influencing the purchase patterns of homebuyers. However, the busy working schedule of professionals makes them resort to social media platforms and other internet based research. Today’s highly digitised world provides a number of real estate portals listing down available properties at the click of a button. Internet provides the comfort of looking at multiple options across locations. It is now possible to evaluate and compare properties basis each individual criteria. Make sure you research on the latest trends and regulations in the industry. The process involved, property prices across locations and documentations required for a purchase is also easily and readily available online. Additionally, an interactive website with extensive project details and images helps in building credibility for the developer and adding to a unique buyer experience.

 

Impact of the Real Estate (Regulation and Development) Act (2016)

One of the salient features of the introduction of RERA is that all developers have to register with the Authority and upload details of the project, including title, approvals, agreements, delivery dates, payment schedules, finish, etc. This enables the customer to get a good insight into the project before making a purchase decision.

The following information, amongst others, are mandated to be made available on the RERA portal:

  1. Sale deed/title deed /Conveyance Deed – Title documents and Title Report
  2. Litigations, if any
  3. Approved Layout Plan
  4. Building plan sanctioned by statutory authority
  5. Approvals including permission to commence construction ie. Commencement Certificate
  6. Detailed cost estimate/valuation report from chartered engineer/architect (if applicable)
  7. Building Layout, configuration and details of units
  8. List of Common Area Amenities and Facilities that will be provided
  9. Configuration and details of units sold
  10. Details of consultants on the project and registered channel partners

 

Customer Protection:

Some of the recently passed bills like RERA provide greater transparency and protection to customers. Off late, the government approved the amendments in the Insolvency and Bankruptcy Code (IBC) which recognises homebuyers as equivalent financial creditors as banks and institutional creditors. This and many such steps will prove pivotal in protecting homebuyers and instilling transparency in the real estate system.

 

Conclusion:

Most often, you would be investing a major part of your savings while purchasing a home, hence, always ensure you garner all the valuable information that will lead you to make the right purchase.

How to create one crore worth asset with an initial investment of Rs. 25 lakh

real estate investment with minimum liquidity

When it comes to investing, the most important question before us is – Where to invest?  The traditional investment options like gold and fixed deposit are no longer lucrative.  Stock market/mutual funds are highly volatile and risky to invest.

Then, what will be an option for those who are looking for a potential investment, which is ever appreciating but risk- free? The answer is real estate. Let’s see how you can invest in real estate with a minimum initial investment.
Let’s assume, you’ve shortlisted an apartment, worth one crore. Your down payment will be Rs. 25 lakh. Usually, banks or other housing finance companies will provide you up to 75 percent of loan amount. In effect, you have owned a property worth one crore with Rs. 25 lakh, which is an ever-appreciating asset.

It is a proven fact that the value of real estate investment will increase over time. For example, the launch price of Skyline Springfield Villa at Cochin was Rs. 12 lakh, it has now appreciated to Rs. 2.1 crore. Likewise, the launch price of Skyline Palm Meadows Villas at Kottayam was Rs. 29.8 lakh, it has appreciated to Rs. 1.42 crore. Another project at Calicut, Skyline Medows, was priced at Rs.7.5  lakh during its launch; it has now appreciated to Rs.1.05 crores. For full information on the appreciation of Skyline Builders, projects click the link below

Skyline Property appreciation

You can claim income tax benefit of Rs. 1.50 lakh for the principal repayment and an annual interest up to Rs 2 lakh can be claimed as a deduction against income. Along with this under Pradhan Mantri Awas Yojana (PMAY)), you will get a subsidy of Rs. 2.35 lakh.  For details click here

Pradhan Mantri Awas Yojana

For best locations, the average rental income increases, usually in the range of five to ten percent. A steady rental income will help you partially fund to repay the loans taken. In effect, your effective EMI will come down drastically.

The table below illustrates your effective monthly EMI for a property worth one crore. The down- payment is taken as Rs. 25 Lakh

Table1
But, all these are possible if you invest with the right right builder. It is very important to check the builder’s expertise and track- record.  Always choose a builder with a good reputation, who gives priority for best locations, quality of construction, timely delivery, financial stability and above all, it should have an efficient post-sales service team. This will guarantee that you get a good return on your hard-earned money.

*If your yearly income is above 10 lakh, the tax slab applicable will be 30 %

*Yearly tax benefit under 80 cc is Rs. 1.5 lakh

*Yearly Tax Benefit under section 24 is Rs. 2 Lakh

* Total Yearly tax benefits is Rs. 3.5 lakh

* Loan tenure is 30 years

How to use home loans effectively for tax benefits

 

Home loan tax benefits 2018
Avail home loan tax exemption for self occupied home

  • Under section 24, annual interest up to Rs 2 lakh can be claimed as deduction against income. Senior citizens will get up to Rs 3 lakh.
  • Depending upon your tax slab, the tax liability can be reduced up to Rs 67, 980
  • As per section 80 EE, the homebuyers will get the tax benefit for home loan up to Rs 50,000 per financial year. The value of the property should not exceed Rs 50 lakh and the amount taken for the loan should be less than Rs 35 lakh.
  • Tax benefit will be available for purchase of land, construction, repair and renewal of home property
  • As per section 80C, the applicant will get a maximum tax benefit of Rs. 1.50 lakh for principal repayment.
  • Under section 24, you are eligible to claim tax deduction if you take loan from friends, employer, relatives or any private lender to buy a home. A valid certificate from the lender (relatives/friends/ employer) should be produced showing the detail amount of loan taken.

 

Claim tax benefit on for under construction property before possession

  • Section 24 of IT Act clearly states that payment of interest is qualified for tax reduction for under construction (on-going) property.
  • The total interest paid during the construction period can be claimed in 5 equal installments starting from the financial year in which the construction is completed.
  • Tax benefit during construction is not allowed for repair or renewal of existing home.

 

Avail tax deduction for rented property

  • According to section 24, you are entitled to tax deduction if the property is not self-occupied and you are away for various reasons such as employment, business needs.

 

Joint home loan tax benefits for co-owners/co-borrowers

  • For the co-owners of the property, the home loan borrowers (any number of applicants) can claim individual tax benefit.
  • As per section 80C, each applicant will get a maximum tax benefit of Rs. 1.50 lakh for principal repayment.
  • Under section 24, the applicants can claim Rs 2 lakh for interest repayment.
  • Even if you are paying the EMI of the property owned by your parents/ spouse, you are eligible for the tax deduction.
  • The information compiled taken from various authentic sources.

 

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Skyline Builders Real Estate group offers you Luxury Apartments, Villas, Homes and Flats all across God's own country – Kerala, India. Skyline Builders™ is the #1 Builders in Kerala. Skyline invites you to join our ever-growing community of satisfied customers... into a world where dreams do come true... where unmatched quality goes hand-in-hand with affordable rates... where aesthetic beauty in a clean green environment is coupled with all the essentials for practical living... an investment that is a celebration of your success. The Skyline Group has been in existence since 1980 and Skyline Builders™ is the flagship unit of the group. We provide luxury villas and apartments across Kerala esp. in Kochi (Ernakulam/ Cochin), Thrissur(Thrichur), Trivandrum(Thiruvananthapuram), Kottayam, Kozhikode (Calicut) and Kannur. With the IT boom in full swing, Skyline Builders is providing housing facilities near Infopark-Kakkanad and Technopark- Kazhakkottam.

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