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Jan 17

Why should you invest in a second home?

As you know, buying a home is the biggest investment which everyone makes in their lifetime. Being a homeowner will always make you feel proud and special. And let’s discuss whether buying a second home and what are the benefits involved in it? Actually, there are many flats in Chennai for sale and there are plenty of homes where you can invest your money.

Choose a better Location
The location is something which is really important in buying a home and if it is bad, then it is really not worth to buy. If you buy a second home, then you should know the purpose of it and you need to choose a list of properties and choose the best among them. Make sure that you’re buying a home for a vacation or just an investment and just make a right decision before you buy a second home.

Decide your Budget
Decide well before you buy a second home and make sure that you have enough money to buy a second home and it should not affect you at any cost. It is extremely important to ask yourself all these questions. The investment which you make in real estate is a long-term decision. You need to prepare yourself for buying a second home and you should be capable of investing your money in a second home. And only then you should be secured before investing in real estate.

Get a Home Loan
If you don’t have enough money to buy a second home. You can make use of a home loan, but there are the lot of things which you need to consider before opting for a home loan and how you can prepare financially for a second home. And you should be eligible to get a home loan. So, you need to check your credit score and you should be capable to pay off the loan at the proper time.

Create a Lifestyle
After doing all this research, you should make the decision of buying a second home. You should not just buy a home, but you should always buy a home which provides a great lifestyle. It should be a home where you can feel happy, secured and safe.

Make an Income
If you want to buy a second home, which is just as an investment. Then, it is better to rent it out that home. This is a brilliant idea and it will be a source of income for you. You can just rent it for a short-term or long-term and it depends on your decision. Even in the future, it will be a great investment and it will help you at that time. Renting a home will be a good source of income and it is better than making it become a dusty home.

Hope, you got some ideas on buying a second home and decide wisely before you invest in a second home and just plan accordingly. And there are many flats for sale in Chennai at affordable prices and you can just make a good investment!

Home Loan

Jan 9

7 Tips to Determine the Right Home Loan Amount to Borrow

Regardless of the rich or the poor, the financially able or the weak, almost all of the home buyers in the country rely on home loans to get their dream homes. But the process of deciding the loan amount and the actual necessity of the money can be really hard to find for someone who doesn’t know how these things work. To know the same, an applicant should understand his/her own needs, the income, potential future, savings at hand, ability to handle the monthly repayments and also take care of miscellaneous & unexpected expenses.

Lenders do not usually approve the total mentioned amount of the loan. And because of the same, it requires careful financial planning with the ability to manage the income between expenses, loan repayments and also investments. This helped me so much to plan my repayment tenure when I bought one of the apartments for sale in Pallavaram Thoraipakkam Road.

To find out how much money that an applicant should borrow, the following tips can be noted down:

  • How much ever the home costs, lenders usually aid in funding only up to 80% of the average market value. If the price of the property is more than 30 to 40 lakhs, few banks provide a loan amount of 90% of the market value. This percentile also depends on other important factors like past repayment records, income records, and credit ratings. If any of these parameters are low, the financial aid sanctioned by the lender might be low.
  • We have to forget the notion that the banks/financial institutions sanction the loan by evaluating the gross income. They refer the net income to find out the ability to pay the monthly repayment installments.
  • As discussed earlier, the lender might provide up to 90% of the total loan amount. The remaining contribution, which is called as margin money for the loan should come from the applicant’s pockets. Every borrower is supposed to give at least this 10% of the total amount and if the margin money is high, the EMIs and the interest rates will be low for specific loan tenure.
  • One of the ideal ways to find out the loan amount to borrow is to evaluate the debt to income ratio. This ratio calculates the debt payments of the borrower to the overall income he/she incurs. There are calculators to determine this online and they come in handy to identify the perfect loan amount.
  • The type of property also plays a major role in determining this home loan amount sanctioned. For instance, for under construction projects, the applicant has to include the service tax and the value-added tax whereas the same doesn’t hold for ready to move in properties.
  • Rates of interest should also be considered to identify the amount to be borrowed as a loan. The rate of interest depends majorly on the tenure of the loan repayment chosen. For longer loan repayment tenure, the interest levied by the lenders will be more. Also, the applicant should be aware of the teaser rates that banks and financial institutions promise on housing loans.
  • For tenants who pay rent, it is better to purchase an own flat in Chennai with and pay the EMIs rather than shedding it for rent every month.

Kindly check out our other blog which helps you in Acquiring a Home Loan.

 

How to Prepare Financially for a Second Home_

Jan 2

How to Prepare Financially for a Second Home?

In India, buying a property is considered as a huge financial investment if the buyer already has a home and is settled in it. It is a reflection of the social and financial status of an individual. Many amateur investors rely on getting into the realty sector to incur profit in the upcoming future.

While it is easy to identity a prospective property for investment or for future use, it is still hard to plan the finance for the same. The whole process toils an individual and the complexities involved need not be mentioned separately. Here in this article, let us see how to prepare financially for this second home:

Opting for a home loan for the second time:

You don’t have to worry that you cannot get a second home loan if you have availed that financial aid already. You can go on to apply for a home loan again if you are financially capable to repay it. That being said, lenders evaluate the application process very strictly in order to ensure that you are capable of repaying it without any problem.

On the brighter side, if the property value of the second home you are buying is lesser than the market value of the existing property, it is easy for them to approve the loan. If the lenders are still sceptical about your credibility, you can show your investment portfolio with good profitable investments as security for the same.

These investments can be in any valuable form such as mutual funds, partnerships, businesses, jewels and also insurances. This happened to me as I was planning to buy my second property in one of the apartments for sale in Pallavaram, which was much cheaper than the property I already own. At this point I had to showcase all my other properties as a security to get the home loan sanctioned for the second home.

Availing a loan against existing property:

For a simpler approach, you can always ask the lender to consider your first property as an asset for the second home loan that you are availing. This concept is called as taking a loan against property, and they provide a reasonable home loan amount by referring to the present property value of the existing property.

Choosing a convenient top-up loan:

If you will be able to add another loan to your existing loan and pay for both the EMIs at the same time, you can always opt for a top-up loan. This can be done when you don’t want to avail a separate loan for your second property. By applying for this top-up loan, you can always save yourself from the excruciating process of getting another loan approved and sanctioned.

Provide the first property for rental revenue:

For people who want to move to a new flat in chennai, then they can utilize the first home as a product of revenue, then you can rent the first property and move into the new property that you buy. With the rental returns from the first home, you can always manage to pay the EMI for the second property quite easily.

Kindly check out our another blog on Buying a Second House Good for Investment.

 

Home Safety Measures

Dec 28

Home Safety Measures: How to protect your home with Modern security measures.

It is an absolute must to keep our homes sheltered and secure constantly. We’ve conferred a ton of cash on purchasing a flat in Chennai, so we should avoid potential risk. The exact opposite thing you need is for your home to be effectively broken into or harmed. There are bunches of things we can do to protect our homes, beginning with security.

Security

Set aside the opportunity to influence your home to secure and, at last, safe. The security of a house is essentially imperative and includes a scope of things.

Door Locks: Every entryway that leads into your home ought to have a type of bolt on it. These locks are generally your run of the mill key locks, yet they come in various varieties as well. It may likewise be worth getting a little chain in your front entryway. This joins to within and prevents the entryway from being opened completely. It’s an additional wellbeing measure to take.

Security Cameras: These days you can get surveillance cameras introduced outside your home. Along these lines, you can check whether anybody dodgy is at your entryway or in the event that anybody has vandalized your property. When a theft happens and you have a break in, you can see who did it if there is a security camera placed around.

Alarm System: Install an appropriate security caution framework in your home. This is a caution that will go off when individuals break into your home. It’s noisy so individuals on your road will know when it goes off, and that something is up. Likewise, you can get alerts that send a flag to an observing organization, who at that point call the police. A decent caution framework is the beginning stage of home security. As of now that there’s some alert introduced, watch that it’s working legitimately. If not, you’ll require another one.

Motion Sensors: You can introduce movement sensors inside your home that light up in the night when somebody’s moving around. It’s a decent method to let know people that somebody is there who shouldn’t be.

It’s not only the security that makes a house safe; you ought to consider different things as well.

Extra Safety Measures

Windows: Install thick windows that are difficult to break. Despite you have single coated windows; at that point, you’re requesting a break in. Get something solid that can’t be broken with little power.

Gate: You ought to get a door driving into your home. It can be at the front of your garage. A door can make it harder for individuals to break into your home as it’s an additional hindrance. You can get ordinary latch entryways or an electric one.

Fences: Set up fencing in your back garden to prevent individuals from effortlessly accessing your home. It’s regular for thieves to attempt and return in through them, as it’s generally esteemed as less secure. A tall fencing with hostile to climb paint can stop them returning to your garden.

Regardless of whether you live in a small size home in any rural locality or in a Luxury Apartment in Chennai or in any other metropolitan city; it is a necessity to consider these tips to keep your home protected and secure from burglary and fear of theft. A happy and secured home is always safe to live in.

Kindly check out our another blog on How to be cautious to prevent regular household failures?