Role of Real Estate while Planning for Retirement

Today’s fast paced; insecure, inflationary and highly destabilizing environment has made retirement planning the core of every individual’s financial goals.

Having a home of one’s own was the core desire which fueled the boom in the Indian real estate sector in the late nineties. Planning for retirement has transformed from being restricted to safe government policies to market linked plans.

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Today with the slow death of the joint family system and the need to have a home of one’s own after the kids grow up and fly the coop, the need and prevalence of retirement communities also seem to be gaining ground.

These consist of a cluster of houses which people buy like any other residence. They are designed as per the needs of senior citizens with facilities like wheelchair friendly corridors, community kitchen, parks, hospital facility etc. Unlike usual senior living homes in retirement communities they can stay with their families.

It is one of the ways to secure post retirement financial independence via means of real estate. It is opposite of a normal home loan. Under a reverse mortgage, one gives his property to the financial institution for a fixed tenure and receives monthly installments. Even at the end of the tenure, the installments stop but one can continue to live in the property.

After individuals’ death, the legal heirs are given an option to settle the dues else the house is sold. If there is any extra money fetched from the sale, it is passed on to the legal heirs. Also, the property is reevaluated at regular intervals during the tenure and installment amount is adjusted accordingly.

In the end, to maintain a relaxed lifestyle post retirement one should start planning early and should analyze carefully the options available.

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Sound Agreement Between Buyer & Builder

After all the running around you have finally made up your mind and chosen your dream home. Do you think it is the end of your worries and it’s just a matter of time and you’ll soon sign the ‘sales agreement’ to become a proud home owner?

In reality post selection procedure is more crucial than the selection procedure. Are you wondering why and how? This is the stage where one actually has to pay and get away with his life savings.

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Rather than reading and analyzing the impact of each and every clause in the agreement or consulting a property lawyer, most of the time buyers simply sign it. They usually think it’s too long or they simply ignore it as the language is too technical or at times are overwhelmed about owning a house, and hence, fall in the trap. Developers take advantage of buyers’ ignorance and draft agreements which are highly developed based.

Here is a list of checkpoints that a buyer must keep a check before signing the sales agreement with the developer:

Firstly a sales agreement is a legal document which lists the terms and conditions of the transaction. These are agreed upon by the parties involved and bind the parties to fulfil their part of the commitment.

Most of the contracts have a clause stating that the given plans are tentative and therefore, there can be alterations in the final product. Also, the final price of the house is adjusted accordingly. There should always be a mention of the permissible extent of such changes.

Usually the builders sell on super built up area which includes the actual area of the house along with an unaccountable addition for common spaces. One should be careful and should make the developer include the details of carpet area and super area in the agreement. This also gives the buyer an account of the extra charges demanded with respect to alterations in the plans at a later stage.

Details of all the charges starting from the basic cost of the house to all the extra charges the buyer has to bear should be clearly mentioned. All the levied charges like utility charges, maintenance fees, club house membership charges, parking charges should be included in the agreement. There have been cases especially in Mumbai where developers have sold the parking to external parties even when as per the contract they belong to a resident of the society.

Another critical and must do point is registering the sales agreement to avoid litigation at a later stage. Being a legal document it helps in case of a fraud and creates a public record of your property. In case of any discrepancy a buyer should always go to the consumer court as they favor buyers. Also, buyers facing similar problems should collectively work on the issue to build up pressure on the developer and other concerned parties. Consumer forums and other social networking mediums are also strong in today’s time.

In the end, with the absence of any regulation defining real estate practices in India, it is a buyer’s duty to check the agreement before signing it. It is advisable to consult a lawyer and demand alterations in the agreement if required before formally signing it. It’s always best to do a check on builder’s track record. Above all, a sales agreement should always be registered.

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Affordable Housing in India

In a developing nation like India, the rate of urbanization increases every year, adding to the already existing housing deficit. Today nearly 28% of Indian population lives in urban areas, which is expected to get doubled in the coming decade.

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With the ever increasing land value and construction cost the definition of affordable housing in India has changed. There is a wide gap between what is available in the market and what in reality people can afford, widening the demand and supply gap even further.

The government on its own can’t find and fulfill the humungous housing demand and it needs the involvement of the private sector to build the existing gap. Government should give subsidize and incentivize the private sector companies for them to start looking at it as a business opportunity.

The question here is – should there be separate clusters for economically weaker section of the society or should they be mixed with other groups? There are studies which show that such areas are usually ignored and have a lower rate of development leading to poor living conditions.

Rental housing is also a proven solution for mass housing. Rather than the whole burden of funds going to the government, affordable rental housing is a well-practiced phenomenon worldwide. From the rental income the area can be maintained along with funding for future housings. Private rental sector can also be developed with partial government funding or subsidies.

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Understanding Home Insurance

A home insurance in no longer an optional luxury, but it is a necessity for every prudent homeowner. It serves as a potential safety net for your finances in the case of an environmental disaster or an accident on your property. A home insurance policy also known as homeowners insurance works similarly to a life insurance policy. A life insurance policy offers the dependents or nominees a particular sum of money in the event of death of the insurer whereas a home insurance policy cover for the loss incurred to the house structures and internal contents due to a natural disaster or man-made calamities.

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Benefits of Home Insurance

A home insurance policy is the solution that makes it possible to safeguard one’s property and possessions from damages caused by unforeseen perils such as natural calamities, riots, fire, robbery, etc. Thus offering you complete peace of mind. 

Although home insurance can be availed by spending a minimum amount annually to protect against large financial damages, yet most people are ignorant of the benefits of insurance and do not prepare themselves for unforeseen circumstances. Today the monthly premiums involved are reasonably low in most cases so as to avoid any extra financial burden on the owner. 

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All about Apartment Associations

Increasing urban migration and scarcity of land in the cities has led to a rise in Apartment culture – where rows of independent houses are now replaced by high-rise structures that offer all amenities essential for urban living.

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When an apartment is completed and starts getting occupied, there can be many initial issues with the developer. Common problems would include handover issues, maintenance problems or any pending documentation problem. At this time a committed group of individuals has come together to coordinate on behalf of the residents and form an apartment owners association. This association is formed then works as an authoritative body that protects the rights of the apartment owners, maintains the amenities within the apartment complex and works for the welfare of the residents.

But many apartment owners and residents often have resurfaced questions on what exactly is the definition of an Apartment Owners’ Association? How is one formed? What is its purpose, its legal powers, its duties?

Formation of the association is a vital task and apartment owners or residents need to be aware of all the related laws and regulations. The onus lies with the residents to enroll themselves as members of the association or cooperative housing society to safeguard their rights and titles.

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The best way in selling property

Selling both commercial as well as residential property may be due to some very important reasons. Some people though sell properties as forced by some critical conditions and reasons. It may be due to financial problems such as cost cutting, going away for good, planning to buy a new house, and the likes. When a person decides to sell his property, the first thing to look for is the buyer. Literally, how can one sell property when there is no buying party to deal with?

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One of the most common properties put up for sale is the house. There are at least 70% of people who are looking for houses to purchase. Why not? It will be much less costly when one bought an already fully furnished house than to still take the burden of constructing a new house with nothing but a scratch.

Sellers of properties would as much as possible want to get the whole of the profit for themselves. It is quite understandable as times are too hard these days that they are pressing hard on the people. The tendency is for the owners to sell properties privately. Meaning, they do the advertisement and handle the task of finding the right and worthy buyer.

Also, these real estate agents are usually only after the amount of the commission that they will get as soon as possible. So they simply just value the properties in very small amounts so the transaction of selling the property will be closed soon.

These estate agents are usually reputed for being notorious. There have been a lot of estate agents who have been charged and punished by the authorities because of misleading their clients therefore resulting in a loss of large amounts as on the part of the owner of the property.

Basically, estate agents act for the security of their interest. They prompt the buyers to purchase the property for sale simply so they can secure their commissions.

Now you know the disadvantages of employing an estate agent in selling property. If you can do it by yourself, so be it. There are a lot of private sales sites where you can advertise your property for sale and get relieved of the tiring expenses on commission rates.

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Essential tips on buying property

Buying a real estate property in India is the biggest financial commitment of our lives. With inventory diminishing daily and multiple offers being extremely common, it is of great importance that you position yourself to have the “Best Chance” to get your offer accepted. You enhance your chance of buying the real estate property in India of your choice by doing the following.

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Get pre-approved for the purchase. This takes very little time and is of great value. At this time, identify the price range for which you qualify and which fits your lifestyle for fountain hills real estate. Submit a strong competitive offer. Submit the offer as if there will be multiple offers. Include substantial earnest money deposit. Acceptance of an offer is sometimes determined by the amount of the deposit. A larger amount may signify a bigger commitment to the seller.

When buying a real estate property it is a must that a buyer and agent must have instant communication access. Maintain instant access to each other via office phone, voice mail, fax, pager or cellular phone.

Whether you are buying property for investment or to live in extreme care should be exercised to ensure your purchasing experience is stress free and risk free. These few buying tips will make you aware of some of the pitfalls and ways to avoid them.

Think about why you are purchasing the property. If you intend to live in the property does it really suit your needs? If you have young children or elderly people living with you, you might wish to avoid stairs and prefer a level block. Do you intend to install a pool in the future? Is the garden too big or too small? Will you need more bedrooms in the future? Be sure to have reports for building inspection and pest inspection prior to committing to the purchase.

Deciding how much to offer can be difficult. You might wish to make your best offer up front or start with a lower offer and be prepared to negotiate up. However, purchasers who make higher offers might secure the property without giving you the opportunity to increase yours. If you wish to avoid someone else purchasing the property you have decided to buy, be prepared to exchange the contract with a cooling off period.

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Real estate tips for property buying

Buying real estate property can be risky sometimes if you are not clear on what you are doing and if you have any unreal expectations.

If you are under a time constraint for buying a home, then the best option you have is to go to a real estate auction. It is as simple as looking at a home, bid for it and close the deal within a month, if you win the bid. There are many online websites where you can find the events going in your locality. But remember, you cannot take back once you have bid for it, therefore you make sure absolutely that you want to buy the property.

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You have to make sure you should buy a good and safe home, for this you have to pay close attention on the condition of the home. If you find any cracks or dampness in the building, it indicates that the home’s foundation is on a wet ground. If it is present then you have to pay for the major repairs for the home you are buying.

When you pay for the home you are buying at the auction in cash instead of financing then you can get a better deal. Sellers always look out for  fast transactions and hence they always opt for the payment in cash as financial institutions only slow the process. If you have the money ready to pay for the home, then you can get a great discount and this money you can save for any repairs or other things.

It is a good idea to purchase a real estate property in India hat attracts other investors so that you can resell them to the investors and make a profit. Remember you must never buy a real estate property that needs extensive repairs to be done.

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