Home, Property, Real estate investments

Home & Property:

It is extremely important for everyone to plan a home for yourself even if you stay with your parents or relatives. And it is necessary to invest as early as possible. In case you pay rent then you may end up spending lot of money on rental, live at lower standard of life and may not be well satisfied in long term.

- Sometimes you may not be sure in which city or area you plan to stay. Many a times this may not be a choice available to you. If you think there can be delay in this then I recommend you to still invest in any suitable home property option in and around the place to stay or your relatives stay. Take Home Loan buy the property and then rent it out. This rent may compensate for the rent that you may pay for staying at other location.

- Also in future when you find a right property for yourself , you can sell this one and buy the new one. This will screen you from the increase in property prices as the property price of your existing home will also keep increasing with the market.

- if you are just planning and thinking when and where to buy home since last 1 year, then you are seriously loosing money every month without feeling it. You will feel the heat in future.

- If you find that property prices are very high, then I recommend to wait for some time for the prices to come down or goto some areas where property prices are low and buy home for investment. In year 2005-2007 the property prices have risen sharply and its expected to come down in 2008-2009 in many pockets (where lot of new residential projects come up) . so I suggest you to find right locations and buy a home.

- Loan - Loan rates are now coming down. I suggest you to buy smaller home if you are not getting enough loan. Do not think that it is always necessary to stay in the house that you buy. You can buy it for investment, screening yourself form property price hikes, and earning rental incomes.

- If you think that stock markets and mutual funds are risky, then Property market is probably with much less risk.


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Home loans get costlier; repayment to rise by over 12%

New Delhi: Home loans just got costlier with the lending institutions on Thursday announcing a hike in their interest rates by an average of 0.75 per cent a move that would increase repayments by a minimum of about Rs 2.5 lakh for a Rs 20-lakh loan.

Consumers would have to fork out over Rs 1,000 more every month as EMI for a loan of Rs 20 lakh, whose repayment is spread over 20 years.

Market leader HDFC today announced a hike of 0.75 per cent in its retail prime lending rate, on which its adjustable home loans are benchmarked, with effect from August 1.

While a few banks already announced rate hikes yesterday, others are expected to soon follow suit.

HDFC said that for new home loan customers, the adjustable rate loans would now be priced at a minimum of 11.75 per cent. Fixed rate remains unchanged at 14 per cent.

On a 11.75 per cent floating rate, the EMI is estimated to work out to around Rs 21,675 per month, up Rs 1,031 from Rs 20,644 at a rate of 11 per cent.

This would result in an overall additional burden of close to Rs 2,50,000 over the 20-year period.

The rates are being revised in the wake of tight monetary measures announced by RBI on Tuesday, when it asked the banks to maintain higher mandatory cash reserves with it and also increased its short-term key lending rates for them. Avdhoot Investment or read more on Housing Loan here