Important Tips while Financing your Property

Buying a property is possibly one of the biggest investments a person makes in his/her lifetime. Thus, there is an obvious fear and a person tries to take as much precautions to avoid precious savings going down the drain. After deciding on a desired property, you further land up in a formidable maze of complicated legal aspects and endless paperwork. This is when it is necessary for you to acquaint yourself with various legal terms and technicalities. Following are some of the tips that would help you get through the property buying process and help understand the finance procedure for the same. 

Research

Various financial institutions offer exciting home loans that lure investors with striking interest rates and proposals. However, a buyer must wisely take decisions before opting from any financial institution. One must educate themselves with the terms and conditions that are set while signing the loan agreement. 

Servicing the EMI

While servicing the EMI, calculate the total loan amount you require on the basis of your income and monthly expenditures. This will help you to calculate the amount of loan you could afford and thus ensuring you will be able to pay your EMI’s on time. One must understand that the penalties for EMI delays are a heavy amount and prior calculation is essential. 

Interest Rate Negotiation

Yes! Interest rates are negotiable. Many a time financial institutions reserve their best of rates for loans that are to be disbursed quickly. It’s recommended to search for a financial lender during the month ends. As these institutions have monthly targets, your negotiation could probably fetch you an attractive rate. 

Decide the Loan Tenure

While deciding the loan tenure, one of the important factors to consider is your disposable income in hand. Disposable income is the one from which you will be repaying your loan amount. If your net disposable income is low, long term loan tenures are recommended. However, you must also be aware that longer the loan tenures, more is the interest you’re going to pay.

These days, very few real estate developers in Pune offer proper documents and finance guidance which buying a property. However, various reviews from recent property buyers depict that DSK Developers Limited are the ones who give proper guidance to the buyers while buying a property in their projects. This developer has several upcoming developments in the cities of Pune and Mumbai where a buyer can get their dream home and also proper financial guidance.

DSK Developers, committed to building homes not houses- offer luxurious 3 BHK Row Houses at Pune

Imagine the sheer exclusivity of an independent bungalow and the closeted comfort of a cultured classy neighborhood..or.. the transcendental quietude of being in mother nature’s lap yet within conveniently reachable distance of downtown Pune. DSK Vishwa conforms to every one of your perspectives about life and living.

Find all your favorites at DSK Vihwa- be it a jogging track for the fitness freaks or a game of badminton, or better still, a luxuriating swim in the pool to begin the day with. A well-stocked library, an amphitheater, restaurants, general stores, ATMs, even Banks-its all here- at DSK Vishwa, not to mention a top-notch school and a medical facility too.

Surrounded by an abundance of verdant greenery and huge open spaces to fill your senses with the exuberance of nature’s bounty and developed as a part of the sprawling 130 acre township, DSK Meghmalhar are elegantly designed 3 BHK Row Houses offering ultra modern amenities and concepts to make your living a dream come true.

With a lush carpet of 1,00,000 sq.ft covering the undulating terrain and dotted with sparkling fountains and cool blue water bodies, DSK Meghmalhar is a paradise of worldly comforts. The prestigious address hosts a variety of outdoor activity areas such as a gymnasium and a community hall with a party hall for your year-round celebrations. Children have ample playground, a basketball court and a skating rink while the senior citizens would find solace at the herbal gardens having a plaza and a number of convenient sit outs to rest and relax while on walks.

Feel the summer breeze on your ears and the monsoon drizzle on your cheeks. Enjoy the superb kaleidoscope of climatic variations at the picturesque Meghmalhar!

Visit: http://www.dskdl.com/site/current_projects/Pune/Meghmalhar

Call: +91 20 6604 7100

Property Loans – Impact of RBI guidelines on home loan borrowers

Real estate prices continue to climb and to add to problems of home loan borrowers, Reserve Bank of India has introduced some new norms and policies. These policies are bound to have an impact on the home loan borrowers and teaser loans are one of the areas where changes have been incorporated. Teaser loans were pioneered and promoted by State bank of India as low cost loans and these loans are offered at low fixed interest rates for the initial 2 to 3 years. After this initial period the interest rates go back to the normal floating rates.


The Reserve Bank of India has had serious reservations about teaser loans since it can be risky to the banks with borrowers being unable to pay the increased EMIs in the long run. For this purpose RBI increased standard asset provision on the teaser loans from 0.4% to 2%. Currently borrowers are able to get loans at low rates of 8% for fixed number of initial years following which the rates shoot up. The increased provisioning means reduced income for the banks.


Some banks that offer teaser loans include State Bank of India, ICICI Bank, Corporation Bank and Punjab National Bank. Borrowers opting for teaser loans should understand that the rates are low only for the initial years and they are bound to increase. The decision to buy a property should be taken only if the borrower likes the property and is able to pay increased EMI in the future. Base Interest Rates – Safeguarding interests of old and new borrowers.


As per the new guidelines given by RBI in April 2010 the lending rates will be fixed at base rate along with the borrower specific charges. The base rate will be fixed as per the cost of funds and so changes in interest rates will be passed to new as well as old customers. Banks will be allowed to experiment with the rates before the system is adopted from December 2010. Most banks are expected to determine their base rates in the range of 8 to 9%.


The purpose of this change is to allow increased transparency in rates of lending. Volatility in the market will also be reduced due to the base rate policy and there will be increased competitiveness among banks. Borrowers will be able to choose the bank that can best meet their requirements. Protecting interests of home loan borrowers through lowered loan to value ratio.


To exercise greater control over home financing sector in the country, Reserve Bank of India has made home buying an expensive proposition particularly for those who depend completely on bank loan. As per the new provision home buyers will now be able to get loan to the extent of 80% of the house value from the bank. The buyer will have to arrange the remaining 20% of the house value. Some banks were allowing loans of up to 90% of the house value and RBI introduced this new policy to curb this problem.


Visit: http://www.dskdl.com/

Call: +91 2066047100