Thursday, 13 April 2017

New Income tax Rules On Home Loan

The government has changed income tax rules that could increase the tax outgo of those who have taken a home loan for a property that has been rented out. The amount that could be set off on home loans for rented property has been reduced. Earlier, in the case of rented property, the loss of house property – which is basically the interest paid on home loan minus rental income – was allowed to be adjusted from income without any limit. This helped significantly reduce tax liability. Now the limit that can set off against the loss of rented house property has been restricted to Rs. 2 lakh per annum. This came into effect on April 1, 2017 (the assessment year 2018-19).

However, on rented properties, the interest paid above Rs. 2 lakh can be carried forward for eight assessment years. Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as a deduction even in subsequent years.

For example, your interest outgo on a second property is Rs. 5 lakh in a particular year. Assume that you are earning a rent of Rs. 1.5 lakh annually from the property. Such buyers, as per the current rules, are allowed to adjust the difference of Rs. 3.5 lakh (Rs. 5 lakh interest minus Rs. 1.5 lakh). But from the next financial year, they will be allowed deduction of just Rs. 2 lakh. The remaining amount of Rs. 1.5 lakh (Rs. 3.5 lakh minus Rs. 2 lakh) can be carried forward up to eight financial years and be adjusted later.

Tax experts say that some high net worth individuals – who used to buy properties on loan and were able to set off the full interest liability against the lettable value of property and thus bring down their tax liability substantially – would be particularly hit by this new tax rule.

Note: Income tax rules say that those who own more than one property can only treat one of them as self-occupied and the rest have to be assumed to be rented. Income tax has to be paid on notional rent.

From April another tax rule related to the properties will also change. The new tax rule will help bring down tax liability from the property sale. The holding period of a property for qualifying under long-term gains will get reduced to two years, from three years currently. As per current tax norms, if a property is sold within three years of buying, the profit from the transaction is treated as short-term capital gain and is taxed according to the slab rate applicable to him/her. So reducing this time period to two years will bring down tax liability.
Thus, after two years, the transaction will be able to qualify for long-term capital gains, thus lower taxes. Under long-term capital gains on immovable properties, the profit is taxed at 20 per after indexation. Under indexation, inflation during the holding period is taken into account and thus the purchase price is adjusted, reducing the tax burden on the property seller. There are also other benefits for the seller under the long-term capital gains tax. If the gains are invested in some select government investment schemes, the tax liability goes down significantly.


Friday, 31 March 2017

Moving To a New Home? Things to do to make it feel like home!


These tips will help you find your place within your community — and make it feel even more like home.
After the hard work of finding and moving into the perfect home, you’re finally ready for the best part: exploring your new neighbourhood and city! Here’s what you should do in your first week, month, and year in a new place to help make it your home sweet home.
The first week: Organize and settle in

1. Get your bills in order.
You probably had the essentials switched over to your name so you wouldn’t be without them on move-in day. But you’ll need to make appointments for other services, like cable or home security, right after you move in.

2. Find your local resources.
No matter how organized you are, there will be items, like extension cords and towel rods that you will need to pick up quickly to make sure that you feel settled. Your first week is the best time to seek out these essentials and more. You’ll no doubt become well-acquainted with the nearby hardware store, but you’ll also want to stock that new fridge at the local grocery store, make friends with the barista at the neighbourhood coffee shop, and hit the closest post office to have your mail forwarded.

3. Meet the neighbours.
This will give you some comfort in knowing who is around you. Neighbours are a great resource for [discovering] where all the local hot spots are, where to go for necessary services and more. If you have children, this will also help them meet the neighbourhood kids their age and start making friends.”

4. Find your community online.
Next door and neighbourhood or community groups on Social Media are an easy way to start following what’s happening in your new neighbourhood. A subscription to the local city magazine can’t hurt either. This way, you can stay on top of community events, safety issues, and meet more neighbours! Want to untether from the laptop? Head to a nearby park or coffee shop and scope out the bulletin boards for upcoming events or local businesses to try.

5. Study the rules.
Before you jump into those home improvement projects, make sure they’re not against the rules of your society association or local zoning laws. If you live in a historic district, you may even have to get your paint colours approved! And be careful not to overlook those easy-to-forget loose ends. During your home-buying process, there are lots of deadlines and time frames to be aware of. After closing, you will also need to check on items like your property taxes, etc.

The first month: Explore and grow

1. Dine like a local.
Try different restaurants, supermarkets, coffee shops, and bars in the neighbourhood. You can choose your favourites and start to build a community.

2. Extend invites.
The sooner you make friends in a new city, the sooner it will start to feel like home. Whether you live in the city or in a more suburban area, don’t roll your eyes at these connections. Make the effort to get together with all of them — they will invite you to meet others and share their tips.

3. Follow your interests.
Local charities are always looking for volunteers and religious groups are always looking for new members. City recreation facilities often offer classes for kids and adults. This can also be a great way to meet other locals that have similar interests.

4. Pitch in.
Offering to assist a neighbour with a project can also be a great way to break into the neighbourhood. You can help in organizing group activities or cleaning the surroundings. The favour will likely be returned in the future!

The first year: Practice good citizenship

1. Take advantage of your city.

You chose your neighbourhood for its character, proximity to work, or its other perks. Now’s the time to explore other neighbourhoods nearby for hidden gems. Go to the theatre! Visit museums and concerts. Take advantage of your town’s amazing parks! Explore a different neighbourhood every month. Knowing your city better will help you feel more connected and give you, even more, favourite places to come back to again and again.

2. Start a group.
Make an effort to stay connected with your neighbours, even if you don’t click right away. In the first year in a neighbourhood, you will find that some of your neighbours and you will click and they will become friends. They’re a built-in source of information and support nearby. To stay in touch, launch a book club, dinner club, or another type of regular get-together on a schedule that works for everyone. It’s a low-pressure way to forge a deeper connection with those around you.

3. Host for a holiday.
Pick a holiday and plan an event in your home. Invite the neighbours or friends from unconnected groups. Think of it as your own mixer. Who knows? Maybe you’ll inspire some more friends to move to your neighbourhood — and make next year’s parties even better.

4. Attend society meetings.
Attend as many as possible so you’re aware of exactly what’s happening in your community regularly. If you have time, you might consider joining in a more official capacity, which lets you contribute to future plans and provides insights into neighbourhood changes.

5. Make goals for next year.
Reflect on your first year in your new neighbourhood and make goals for the next one. Would you like to get more involved, perhaps in a leadership role with your society? Have you noticed congestion or traffic issues that you could work with your neighbours to resolve? Maybe you’d like to support a local non-profit or school by organizing a 5K race through your neighbourhood. Or perhaps there’s a beautification effort you could launch. Whatever you choose, you’ll be on a path to deepen your involvement in your community.


What tips do you have for moving to a new city or neighbourhood? Share in the comments!

Monday, 6 March 2017

Tips to Buy Home For The First Time


Whether purchasing a car for the first time, a home for the first time, or anything for that matter for the first time, it can come with much confusion, a high level of uncertainty, and even some stress.  The home buying process is often seen by many as a “daunting” process.  This doesn’t have to be the case, though if the proper preparation and research is done.
Each and every person who purchases a home normally will have different experiences, hurdles to overcome, and ultimately have their own opinion on the home buying process, so beware of many opinions when talking with family, friends, and co-workers.  Even though the majority of home buyers are different, the home buying process is usually the same.  There is a general outline that should be followed when buying a home for the first time.
Here is several first time home buyer tips and some advice to help make the process of purchasing a home for the first time much less stressful and seamless!

How Much Can You Afford
Whether a consumer is purchasing a car for the first time, a home for the first time, or a set of golf clubs for the first time, it’s important to know how much can be afforded!  This is an extremely important part of the home buying process.  Many first time buyers don’t realize or understand that it’s extremely important to know how much they can afford before looking at homes!  It’s important that a first time home buyer understands what the costs of buying a home are but also why they are involved.
In addition to the general overview of the first time buyer’s financials, the lender usually will pull a credit report to make sure the credit scores are within the required guidelines of the different loan programs.

Set Realistic Expectations when purchasing your first home!
When buying a home for the first time, an extremely important tip is to make sure expectations are set.  By setting realistic expectations, the chance to be disappointed or let down is minimized.  So, what type of expectations should be set before purchasing a home for the first time?

Once a buyer knows how much they can afford, it’s important to figure out what will their money get them?  When buying a home for the first time, it’s important to do it with a purpose and a realistic goal in mind.  How big of a home can be afforded?  What style of home is desired?  What are acceptable locations of the home?  It’s important that first time buyers have a strong feeling on items like these but also a good idea on which items they are willing to be flexible with.  It is a great idea to prioritize these items in order of importance.

Buying a home with no expectations or goals in mind is no different than going to a grocery store with no list or budget.  By going to a grocery store with no idea what will be purchased often will end up in lots of wasted time walking around aimlessly and ultimately not getting the results that would be expected.  By having that strong grasp on the style of home, the size of a home, and other characteristics that are desired in a home will save a first time buyer lots of time and also ensure they are purchasing their first home while staying within the range of what they are able to realistically afford. 

Learn About the Home Buying Process
The home buying process is exactly that, a process.  There are certain steps that need to be taken to ensure the process of buying a home for the first time, goes smooth.  By understanding the process, it greatly reduces the chance that a buyer is disappointed, let down, heartbroken, or frustrated.  There are many things that a first time buyer should be doing before looking for homes, such as getting a pre-approval, but also many things that a buyer should be doing once they are under contract in their future home.  Many first time home buyers don’t understand why it generally takes somewhere around 60 days from contract to closing.

Get Educated on the Local Real Estate Market
When purchasing a home for the first time, it’s important a buyer understands the local real estate market.  There are many ways this can be accomplished.  The internet has completely changed the way the real estate industry works in 2017!  There is so much information available on the internet that can certainly help a buyer understand the local real estate market.  The internet is great for providing a wealth of information, however, it’s also important a buyer understands that not everything that is on the internet is true.  Really it isn’t!  There are many third-party real estate websites on the internet that provide some very inaccurate information. 

Are There Any Loans Available
First time home buyers are often able to take advantage of Home Loans.  It’s important that a first time buyer understands that every lender is different.  From the interest rate they are able to offer, the type of loan products they offer, to the incentives or grants they are able to offer. When selecting a lender, it’s a good idea for a first time home buyer to research all of their options

Consider All Expenses Involved in Owning a Home
Many first time home buyers make the mistake of not considering the costs of owning a home.  It’s common that a first time buyer purchases a home that is the absolute maximum they can afford according to a lender.  This can lead to problems once the buyer realizes the other expenses involved in owning a home.  First time home buyers often forget about additional expenses of utilities, furniture, appliances, insurance, and groceries, to mention only a few.


The above advice and tips are extremely important to a first time home buyer.  By understanding these tips, it can make the process not seem as “daunting” or difficult!  A first time buyer needs to understand and feel comfortable with the professionals they are working with that “no question is a dumb question!”  

Thursday, 2 March 2017

Choosing the Best Neighbourhood for your new Home


The place where we live and the people with whom we share our life are the beginning and the core of our humanity. It’s how we learn to trust and value others, cherishing the spaces and values we share. A great part of the successful move is finding a good neighbourhood. Choosing the right neighbourhood for you and your family is just as important as choosing the right home. When buying a new home, remember that you are not just buying a home- you are also joining in and becoming a part of a neighbourhood. Not all neighbourhoods are created equal. Not all neighbourhoods are going to be a truly perfect fit for everyone and their individual needs. There are many things that should be considered when purchasing a home, especially if you are moving to an area that you don’t know well. Before buying a property evaluate the aspects of a prospective neighbourhood.

Make a list of your needs and wants
Think about what kind of atmosphere you are looking for. Do you prefer a community in the centre of the city or a quiet neighbourhood in the countryside or town? How important is it to have top schools in the area? Do you plan to drive or get public transportation to work? Are there shopping centres, restaurants, cinemas or parks nearby?

Find out whether it is suitable for your lifestyle
Have a walk in your prospective neighbourhood streets. You will get the best information about the neighbourhood from the people who live there. Do your own research by talking to the neighbours. Ask them if they like the area, what problems they have in the place. Ask them questions that concern you. Ask them about the advantages and disadvantages of the neighbourhood. They can tell you things you’d never find out online. Walk the markets, shopping centres, restaurants, parks and all the other amenities that your neighbourhood has to offer you. If you like an active life it should be important for you that there are cinemas, theatres, and bars. Such entertainment could be the only thing that makes your neighbourhood alive. If possible, try to visit different days and times. Find out if the streets are clean if the homes and yards are in a good condition if there are many people who live there, whether it is a quiet neighbourhood or not. Imagine yourself living there. Once you feel comfortable with the area, you can feel more at peace about the home buying decision. In some neighbourhoods, neighbours even don’t know each other’s names. In others, block parties make regular occurrences. Spending time in the target neighbourhood you can find out if the place is suitable for you and our family.

Education system
Public and private schools, kindergarten through high school, and even preschools can greatly affect the value of a home. A good school should be a priority on anyone’s list having children. You should look at the quality of the school system of the neighbourhood you are considering. If you have children or plan to have them, you will naturally want them to have access to the best education possible.

Transportation issues in the neighbourhood
Transportation is a non- separable part of any society. It exhibits a very close relation to the style of life, the range, and location and the goods and services which will be available for consumption. Finding a home in a neighbourhood that has convenient access to public transport is important but people sometimes forget to consider this as a crucial factor. When choosing a neighbourhood, find out how close it is to the nearest bus line, how long it takes to get to work, school and other regular destinations, how heavy the traffic is during the day. Basically, the farther you live from the bus line, subway or other means of transportation, the more important it gets to be very close and have easy access to the main junctions and routes. You can get anywhere you want in little time if you are near a train or bus.

Crime statistics
Crime statistics of the neighbourhood make one of the most important factors when considering buying a home. Nothing is more important than the security and safety of your family. Many people worry about crime rates when they move into a new place. When driving through the neighbourhood watch for the signs of vandalism. You can do a quick Google search for some information about the crime statistics in the neighbourhood you want. The best way to find out detailed information about the neighbourhood crime statistics it’s to contact the local police department with all your questions.

Affordability
The location is the factor that will definitely play a large role in calculating the property value. Each neighbourhood has its own set of property values. This is an important aspect to look into for the location you consider. Compare the cost of living in our current neighbourhood to that of the new one.


You need to make sure the neighbourhood has the access to the things you like to do. The amenities a neighbourhood offers greatly depend on the neighbourhood’s location. Think about what amenities you can and can’t live without. Think about amenities you would like to have nearby like grocery stores, coffee shops, pools, health and fitness centres, shopping malls.

Tuesday, 21 February 2017

SMART HOMES: NEED OF THE HOUR


Smart homes are no more a luxury, they have become a necessity.
The contemporary lifestyle demands convenience and security, and the smart homes offer them both. The modern home buyers do not hesitate in spending some extra to get all the smart devices installed in their house. The technology has placed every control on our fingertips. As such, the number of smart homes is growing and so are the smart buyers. Most of the buyers seek the house which is already installed with the smart equipment, rather than arranging for them themselves. The demand of this kind of houses is growing fast in India and it is estimated that the revenue doubles every three years.


What are the buyers looking for?

Not only the security equipment but the buyers are also interested in the state of art smart devices connected to the mobiles or computer. They can be operated easily and remotely. Some sensor based equipment like the lights which are switched ON when someone enters the room or the voice command based electrical systems are very popular. The home buyers are also contributing to the betterment of the world and prefer the technology that draws the power from the natural resources like Sun, Wind and Water. Instead of relying on the conventional power sources, they are contributing to a better world with the alternate sources of energy.
The upfront cost of such devices may be high but in the long-term, they are quite profitable. They need less maintenance and last longer. All the systems are energy-efficient and save the money.

Why are the smart homes increasing?

1. The buyers need technology
Today’s home buyers want the control in their hands. If a work can be done conveniently why not go some extra lengths to get that. The buyers want to make the most of the technology, a single remote can control all the devices and who needs a remote when you can download a software in your mobile and manage it all. These systems are user-friendly. Hence, buyers want the technology that is convenient and within budget.

2. Young people are buying homes
The young people are earning more than they require and a lot of disposable income is at their hands. They can avail the loan on the house and the age of buying a house has reduced significantly. As such, they want it all in their new house. While the young people do not seek a house for long acquisition, they want the stay as comfortable as possible.

3. Economical in long terms
The modern equipment save energy and some also work on the natural resources, hence economical. The buyers get to save on the electricity bills. These devices also do not contribute to the global warming. Young people understand their responsibilities and hence, they are spending more on such houses.

4. Security is the prime concern
This goes without saying that the old lock and latch system cannot be trusted today. The buyers want the best of the security systems like CCTV, digital lock, automatic visitor’s log etc.

Thus, the smart homes are growing and the growth is sustainable. Many builders are offering these facilities in the affordable housing too. The luxurious homes may have better responsive systems but the security systems in the apartments are no longer poor. In Goa too, many builders are coming up with the smart projects, they are going to change the face of the housing in the city. For any queries related to reality trends and what property to buy, you can contact us.