Top most common issues you may face while buying a property?

Know the top Issues that are Faced While you Buy a Property in Your Preferred Location

Investing in real estate always has welcoming result for the buyers or investors. Real estate in India is the rapidly growing sector that attracts many people to invest in some types of properties as they wish. Be it an apartment, individual house or land for investment or immediate construction, in that respect are many known and unknown issues to be fronted by a purchaser. Although we believe that we are on the safe side and our investment is a saucy one, there are always some hidden factors that may frighten us at the fourth dimension when we slack.

Therefore, it is really important that we keep ourselves updated with all current and necessary information and details while investing in purchasing a property.

Nevertheless of unknown issues, it is imperative that we keep ourselves aware of some common issues while buying a property. To help you become aware of such issues that many buyers prone to face, here follows a list:

• As the first point to notice, read the documents and related papers carefully,. Make sure that there is no litigation in the property and it has all the essential proofs and papers perfectly attached
• Try to read the document content line by line, as there may be some hidden terms and conditions that you may not notice at the time of purchase, whereas it may rise as a big issue sometimes later in the future
• Legal issues may arise when the plan for a house construction is not properly designed. Therefore approach an experienced engineer who can perfectly assist you to design the blue print of your house as you wish and at the same it does not raise any legal issues in the future
• If you are buying an already constructed property, then make sure that the house is built with all essential things to prevent storm damage. Ensure if your home insurance property covers such damages caused by natural calamities, as the loss would be huge and many home owners forget doing this
• Concentrate on materials used for construction. This is very important to ensure that the materials used are of top quality and worth the money you spent. Poor quality material may not promise firm and long lasting construction
• Ensure if your house has proper drainage infrastructure. Area with poor drainage may cause water damage, therefore, make sure that you invest in a property where there is proper drainage infrastructure is laid by the government
• Think about the possible water problem that may arise in your home you newly bought. Water is very important for better living. Therefore, make sure that the area you choose has a good water supply
• Consider electrical safety issues. Be it old or new homes, there have been always unexpected electricity issues to happen any time, therefore, before you buy a home, make sure that the home has safe electricity cables and systems

SG Estates provide the best properties fulfilling all the requirements of safety and legal aspects. You can buy your properties without any fear of common issues faced by people investing in real estate.

What Steps we have taken at SG to be more Customer friendly

The moment people think of buying a home or any type of properties, think of a builder or a realtor. Besides, with the boom in real estate industry, today you can find numbers of real estate and construction companies offering competitive services with ample choices. The industry is absolutely open to anyone looking for best investments in real estate, be it small or large. Although there are many real estate companies across the city, providing excellent opportunities to invest, it is equally important to choose a reliable realtor who can provide a property that worth your investment and increases in value. Moreover, the company you approach must also be friendly in every aspect and guide you for the right investment at a perfect location you are looking for.

SG Estate is one of the leading real estate and Construction Company offering quality service along with every word of correct Review and Complaints to their buyers. Undoubtedly, they provide customer friendly service to the clients and help them choose the right investment at prime location. It is the fact that everyone looks for a cheap and best investment within their budget levels and at the same without any compromise in your desire. In this array, SG Estate provides you trustworthy real estate services.

All the projects from SG Estate features quality construction. There is no doubt that the buildings stand with pride for many years, regardless of heavy storms, wind, rain or hot sun. Investing on their project brings a meaning to your investment and life. Moreover, being experienced real estate company, they are also time bound. They are very specific in completing the projects within the committed time and never let customers to wait for long to occupy their home. They ensure client’s delighted and give them 100% satisfaction.

SG Estate is very creative in every new project they plan and design. They make sure that all their new project match with the current trend and taste of young generation giving them 100% comfort living with current lifestyle. In addition to highlighting these features of their construction services, they are also bonded with social responsibilities. Therefore, they make sure that all their new projects meet construction standards that ensure the safety of both the occupants and neighbors. SG Estate is currently developing many housing projects including apartments, villas, individual houses and many more in varying budget and sizes. They create a flexible choice for customers to choose their preferred size of living area within expected budget range.

SG Estates is committed for providing customer friendly services in the real estate industry. They accompany clients in every aspect to make the right investment. Today SG proudly boost of hundreds of Satisfied Occupants of Homes and Business Premises.

Why is Real Estate in India a Preferred Investment Option than Stocks?

With the development in various sectors across India, real estate is now experiencing a tremendous growth. There is no doubt that everyone who have invested in real estate are really happy about their investment, as with the overall development in India of various sectors, their investment in real estate is also growing with a considerable hike. Although there are many options to invest your money like stocks, people still prefer real estate, for many reasons.

To point a few reasons why real estate is being the preferred investment option than stocks, here follows:

·         The foremost factor that makes people choose real estate for investment than the stock is, risk. The fact cannot be denied that stocks involve huge risk and you may have to always fear about what is going to happen next. There may be a sudden hike or a sudden fall that may cause unpredictable loss. In this criteria, real estate becomes a safer option, as even if it is going to be a gradual growth over years, you will definitely end up with some profit for sure

·          Before investment one can check out the Review and Complaints sections. You have the flexibility to invest any amount of money, be it a small investment or a huge investment. However, whatever be the investment you make, you can for sure be confident that you will get a good return on your investment over the time Growth.

·         You can expect the growth of our property in terms of value as the area or location in which you have bought your property develops. It is an obvious factor that with the development in the area to increase in population and development of many buildings like hospital, hotels, schools, the value of your property will also grow

·         Flexible to build your dream home as you desire. You are never restricted to building your dream home if you have invested in a piece of land. Building with land will further increase the value of your property. Moreover, either you live in your home or not, you can still rent it and make a good income every month

With all these factors favoring real estate investment to be the best choice while compared to stocks, who may say no to such wonderful investment opportunities. For those who are looking for a safe and excellent choice of investment, real estate creates wonderful opportunity and you are always on the safe side, away from risks.  

SG Estates take the efforts to make sure that every investment you make worth and they give you flexible options to invest as you desire.

EMI or House Rent -An over View by Mr. Gopal Mittal, SG Estates Ltd.

A question  arises whether to  opt for Home Loan  or to go for  rented house. This dilemma arises normally in the mind of salaried people where monthly  salary is in the range of Rs. 50,000/- and above.

As per  existing norms of the Banks, it is easy to get a loan upto 80% of the  total value of the flat/house and people  go for home loan after making payment of  20%  of value  of flat  up-front, where after monthly  EMI of loan sanctioned by Bank  are deducted/paid.

Broad  Reasons which are in favour of raising Home Loan ( i.e. re-payment by EMI) vis-à-vis Paying monthly Rent:-

i) Home Loan Repayment both Principal & Interest are exempted from Income Tax  to the extent of  limits specified earlier  Rs. 1.00 lac & Rs. 1.50 lacs now

increased to Rs. 1.50 lacs and Rs. 2.00 lacs.

ii) Interest  income on savings  is taxable.  If taken into account the inflation also real interest incomes  some time  is nominal  or  negative some time. 

iii) Historically, the value of property appreciates and in 5-6 year’s  span of time  it is doubled.

iv) EMI leads  to habit of forced savings and forces prudent spending from income.

Just  to take an example a person ‘A’ purchased a flat in Group Housing Society developed  by SG Estates Ltd.,  in SG Impression, Vasundhara, Ghaziabad in the year 2009 for a  total cost of Rs. 50,00,000/- and after paying  upfront 20%  raised a loan of Rs. 40.00 lacs for a period of 25 years,  At the prevailing rate of interest  the monthly EMI  worked out to Rs. 40,000/- P.M. i.e. Pay out towards monthly re-payment for Home Loan is  Rs. 40,000/- and   house/flat is self occupied.

Had ‘A’  not gone for purchase of property and preferred to live in a rented House, average pay out  towards rent for a flat of the  size purchased Super Area approx. 1960 sq. ft.,  would be 18000/- p.m. Further  rentals go on increasing every year @ approx.  10%  as per  rent Agreement clause.

Pay Out

                                                                                    Rent

            EMI     Rs. 40,000/- x 12                     = Rs. 4,80,000/-          Rs. 18,000/-

            Pay back by way of

            Claim in Income  Tax 80C & Int.       = Rs. 2,00,000/-

                                                                        --------------------

                                                                        = Rs. 2,80,000/- 

Total Pay out  of EMI  works out to Rs. 23,330/- p.m. against  Rent of Rs, 18,000/-

which means excess  Payout of Rs. 5333/-  approx. as compared to rent have been  per month. As against which, if we look into the appreciation of value of property which has taken place over a  period of approx.. 6 years , it has  doubled from 50.00 lacs to  Rs. 100.00 lacs.  Also owning a flat has resulted in improved Social status of ‘A’ in the Society.

Above example shows it was  prudent for A to go  in for Home Loan  i.e. Payment of EMI as against Paying rent.

Another trend coming up in Metros also speaks in favour of EMI vs Rent.While posted in Metros younger generation instead of going in for  taking a property  on rent buy a flat  on loan from Bank after making upfront Payment.And once they have to leave the City due to switching over of job, sell off  the existing property, Pay Bank loan.  Siphon of profit  due to appreciation in value of property during this period and park  in Capital Gain A/c  to lawfully avoid  tax liability.Again buy property  in the new city/town  where they go with the  corpus  built up in Capital Gain a/c  as upfront payment.

In nut shell, my observations are it is always advisable /recommended to go in for purchasing  a flat/house, with  in one’s budget as against renting a house.There  might be  excess marginal higher Pay out form monthly income vs  rent initially,but  in long run one is  gainer,besides elevation of  social status and per  force developed  habit of  savings.

 Gopal Mittal

SG Estates Ltd. 

Why it makes more sense to pay EMIS to own a house than to pay rent?

Own a House or Pay the Rent – Which Sense Good and Profitable?

It is always the dream and passion for everyone across the world to own a house, be it small or large. No matter, be it a small size flat in an apartment, a large villa, independent house or a bungalow, everyone strives towards making some investment to own a property within their ability level and income status. Although many people think that renting a house is wise doing than owning a house, own house always makes the difference. This is especially true in a country like India, where the population is increasing and urbanization is expected to reach to 40% by 2030 from its current level of 24%. Real estate is also amongst the best asset class in India, which has given steady returns.  

 There is of course convenience and challenges in both rent and own house. However, while distinguishing the factors, owning a house always sounds better than renting in many aspects. Here are some favoring elements for why you should prepare to pay your EMI and own a house, than paying your rent:

 Before getting stronger with own house, here are a few points to highlight for why rented houses are comfortable.

·         A rented house may be the correct choice for bachelors, students and professionals or office goers who are living far off from their home town away from their family, alone.

·         A rented house may be the best choice for those who have planned to live in the city with their family or alone only for a short term say, a few months or a few years. This is because, they will definitely go back to their home town or native places to lead the rest of their whole life and have no idea to get back.

·         A rented house may be favorable for those who keep travelling and transferring to other districts often

 

But, now emphasizing on the point, why should you possess a home, here are a few points to strongly highlight about:

·         An own house is always an asset for you throughout your life and historically has always given beaten inflation and made decent returns.  

·         It is not only your property to live in for the time being, but it reflects the best investment that is certainly gaining appreciation over the period

·         House has an emotional attachment in India and a tool of being proud.

·         You always have the rights to transfer the ownership of your property to your kids and it becomes a good security for your entire family

·         Over the time, you can also rent your house, which fetch you’re a reasonable income constantly

·         Besides all, you have a hold for your life and there is no need to keep shifting your home often

Therefore, owning a house is always worth to pay your EMI than renting a house. Your EMI turns to be your investment and saving, while your rent is only your expense and you will never get it back in any ways.

SG Estates Ltd has been a prominent developer operating in different parts of Ghaziabad and has delivered various projects in Vasundhara and Raj Nagar Extn. in Ghaziabad.

Ongoing projects of the company are SG Oasis in Vasundhara, SG Homes in Vasundhara, SG Grand in Raj Nagar Extn. and SG Benefit in Govindpuram.

Completed projects in Ghaziabad are SG Impressions in Vasundhara, SG Alpha Tower, SG Beta Tower, SG Impressions 58 in Raj Nagar Extn., SG Impressions Plus in Raj Nagar Extn. amongst others.