Skip to main content

You’ve Got Possession Letter. What Next?

From getting meters to paying property tax, there are many things new house owners must do as they get the possession letter

You have been given your possession letter. You are today the proud owner of an apartment in the Delhi NCR. What must you do next? Did you say interiors? Well true, but not entirely correct.

“There are several key things that new owners of apartments must do ones they get the property possession letter,” says Dheraj Singh, a real estate adviser in Noida.

So what are some of the aspects one must do after getting possession?

Transfer of documents in your name

Electricity and water meter: This is one of the primary things that a new owner must do.

“Till the apartment is ready, all bills will be in the name of the developer. Once you get possession of the apartment it is essential you change it in your name and get a separate meter installed that way you will pay for use of these facilities and not the general share (you pay in case you don’t get this transferred),” says Ruchi Agarwal, who recently moved into a new apartment in Sector 52. “These documents are important as they are part of the legal proof of ownership.”

Property tax/Khata:  This needs to done with the local municipal body. Builders often have contact in these offices or have a person who will help you get this done.

“Buyers need to remember these transfers are not automatic. They need to get this done and even ask the builder about these transfers once they get the possession,” says Singh.

Document safety
“Our lawyer advice us to take more than two copies of the original documents for safety sake,” says Agarwal. “While one is in the safe and another is with us at home for reference. We have also got a scanned copy of all relevant documents as a third option, which would help save time in case we need to send soft copies for any transaction.”


Let Risk Profile Decide Home Loan Amount

It is a key aspect when going in for a loan to make the most of income, debt and savings and keep it well-balanced

Everyone wants to own a beautiful home. Gone are the days when one used to religiously save and build a corpus over a lifetime to have that home. Today, you have a number of banks and NBFCs who can help you fulfill your dream.

These institutions can fund utmost 80 per cent of the property value with a prerequisite that EMIs should be maximum 60 per cent of the income. But, if you are pledging more than 50 per cent of your salary to fund a loan for next 20 years, when will you start saving for your children’s education, travel and retirement? says Pallav Saraswat, managing partner, Dhanmantra Investment Solutions LLP.

To avoid any such financial suffocation, a smart move by the buyer would be to focus on credit optimization. It is a key aspect when going in for a loan to make the most of income, debt and savings and keep it well-balanced, say experts.

Some of the key aspects to be kept in mind include:

  1. Your risk appetite: “The efficiency of this parameter is reflected in the long-term average returns of the different asset classes,” says Saraswat.
    For equity investments, long-term returns are at an average of 15 per cent which is much higher than current home loan rates of around 9.55 per cent. Hence, investors in property with higher risk profile should retain their investments for long-term returns and opt for higher loan value.On the other hand, risk-free assets like debt funds and bank fixed deposits give an average return of 8 per cent which is lower than the interest rates on the home loans. Hence, to reduce the cost of funding, a conservative investor should opt for minimum loan amount possible and try to self-fund it as much as possible, says Saraswat. This way, an aggressive investor in property can allow his/her corpus to grow over a period of time and can pre-pay the loan easily while a conservative investor, by opting for lowest possible loan amount, has to pay less to the lender.
  1.  Debt (EMI)-to-income ratio: An ideal value for this ratio is 35-40 per cent, while rest of the income should be deployed carefully in savings and necessary expenses, Saraswat adds.
  1.  Savings-to-income ratio: Considering the EMIs, if you are able to save 15-20 per cent of your income in a disciplined way, you will be able to support yourself adequately in achieving your other financial goals as well.Thus, it is essential that a careful consideration of the above parameters be made so that one not only ensures in reducing the `cost’ of the home loan but also be able to ensure proper allocation of your income to all the other important areas of the family.

Ghaziabad: Flats Within Rs 40-70 Lakh Budget

ghaziabad-property-newSome of the well-known players with projects here include the Amrapali Group, Saya, Panchsheel, Ajnara, JNC and ATS Group

Ghaziabad remains one of the affordable locations to buy property in the Delhi NCR. The city even offers 3BHK with two toilets, three balconies at a unit size of 1,700 sq ft for a quote price of Rs 41 lakh.

According to HappyKeys data, there are no less than nine projects at various degree of construction and expected to be completed by the end of 2016. Located strategically, these projects are by category A developers.

Some of the well-known players with projects here include the Amrapali Group, Saya, Panchsheel, Ajnara, JNC and ATS Group.

“The advantage this area offers is that even luxury projects offer a healthy number of 2BHK units,” says Prem Sharma, a developer of builder flats under the banner of Hometown.

“Though priced higher than mid-segment offerings, the overall rates are lower than the ones in Noida while the lifestyle amenities even in builder floors are focused towards a better livability quotient.”

Thus, you can get a 2BHK with a unit size of 1,300 square feet for a price of around Rs 68 lakh in a luxury project. And it comes with a host of several luxury amenities. In addition to the usual swimming pool, club house, 24-hour security and high-end tiles inside the apartment and in common areas, offerings include piped gas, in-house laundry facility and other add-ons.

The modest options
For a budget in the range of Rs 40-50 lakh, one can get a 2BHK or 3BHK unit of sizes varying from about 1,100-1,700 square feet. Localities include areas near NH 24, Indirapuram, Govindpuram, Ahinsa Khand, GH I and Sector 3. The expected possession is generally by 2016-end.

The luxury options
One can also invest in luxury projects in Ghaziabad, which begin at a price range of about Rs 67 lakh. Offerings in this segment include 2BHK, 3BHK and some 4BHK apartments in areas like Vasundhara, Sector 3 and Indirapuram.

Brimming with comforts, these flats come in sizes ranging between 1,140-2,160 square feet, depending upon the size and type of apartments.

“The one key aspect that works in favour of Ghaziabad is low population density compared to Noida and Greater Noida. Also, many of the offerings here, especially in the luxury segment, come with larger room sizes, especially in areas like Rajnagar Extension, Indirapuram and Vaishali. Also, the number of people you will eventually be sharing amenities like swimming pool and club houses are also less. Thus the quality of the lifestyle in everyday terms is really better,” says Manoj Goswami of Dynamic Properties.

Basic facilities offered in these projects include yoga and meditation centre, intercom facility, maintenance staff, parks and play areas for children, healthcare facilities and landscaped gardens. Lifestyle amenities available in several targeted projects include theme constructions, clubhouses, butterfly parks, and swimming pools.


Guide To Buying A ‘Starter’ Home

Starter homes may yield to a bigger, better deal in the future, but right now it is all that one can afford, says Kishor Pate, CMD of Amit Enterprises Housing

Buying a home, though a momentous step for most people, is usually not a final thing in and by itself. Most homeowners will upgrade their homes at some point, which makes their first homes ‘starter homes’. The seemingly diminutive term aside, it is a fact that we tend to buy our first homes with the maximum resources which are available to us at that point in time. Starter homes may yield to a bigger, better deal in the future, but right now it is all that one can afford. As such, starter homes are as significant to their owners as anything that will follow.

Buying a starter home is also significant in another sense — it is the point where most people step into ‘adulthood’, in the sense that they are finally transitioning from living on rent to a self-owned property. It marks the end of one’s association with landlords, and the beginning of autonomy.

The autonomy that a starter home affords is first and foremost financial in nature. Rather than spending a significant amount of money every month without the hope of seeing any returns on investment, one is now investing a certain sum of money every month into a self-owned, appreciating asset.

However, the autonomy extends beyond the financial aspect, as well. Regardless of how small and humble one’s starter home is, one finally enjoys the full gamut of freedoms vested in home ownership.

Most changes and modifications to the flat can be carried out with complete confidence, with no permission from the landlord required (of course, some structural changes will still require the approval of the housing society).

Unlike in the case of a tenant, a property owner has an active say in all matters that come up for discussion at housing society meetings. His or her vote is required and sought to pass new rules, regulations or initiatives undertaken within the project.

That said, starter homes are often just that. They are purchased to serve as transitional homes, and will in most cases not be the ‘final’ home one lives in. Until the time for upgrading comes, however, it will serve as a place to set down one’s roots, start a family and work on one’s career.

Because it is bought at a time before the buyer reached his or her peak financial capacity, it needs to come at an affordable price and also involve affordable maintenance costs.

Luxurious amenities are not expected in such a home, but most buyers will still look for a decent size of living space and a balcony. Reliable water and electricity supply are of course indispensable, and should not be compromised upon regardless of one’s purchasing power.

Location is a critical consideration for starter homes as much as for the more expensive upgrades which are to follow. While a small family can live in adequate comfort in a 1 or 2 BHK flat, a remote location which does not allow for a relatively easy commute to and from work is not acceptable. The area must be well-connected by public transport, as many people will only buy their first car for regular use at a later stage. The area must also offer an adequate selection of retail outlets to meet daily shopping needs, and access to a good school and hospital.

Location is in fact critical when buying a starter home, because many first-home buyers find that their lifestyle quotient takes a backward step when they stop living on rent and buy their starter home. After all, one of the advantages of living on rent is that one can live in central locations which offer a lot of conveniences. When it comes to actually buying a small home of one’s own, one may find that the only locations that are affordable are the under-developed or emerging ones.

To avoid such a trap, it is all the more necessary to launch a detailed and patient search when looking for one’s first home. The first options that crop up while doing an online search for properties within a certain budget often tend to be in emerging locations, but that does not mean that no better options are available. This is the best of time to contact real estate brokers who have good databases to access. Some of the cheaper options in a project may not be advertised online but other often exist.

Also, not all emerging locations are created equal. Some offer much better location advantages than others, and reputed developers will often launch township-style projects in which most needs of residents are easily met. Obviously, properties in such locations and projects will appreciate must faster than others, meaning that one is buying into a much more advantageous base for a future upgrade to a larger home.

The author is chairman and managing director of Amit Enterprises Housing Ltd


Noida’s Sector 76 Continues To Be Attractive

This micro-market has projects by developers such as Amrapali Group, Sethi Group, Aditya Group, Supertech and Skytech Group

Noida Sector 76 has reported a healthy growth in property in the last six months. This has resulted in the area becoming one of the popular investment hubs. HappyKeys takes a look at what is making this sector attractive.

“One of the key reasons is that several projects are getting ready for possession,” says Aamir Ahmad of Prime Estates. “Also, prices are comparatively lower as compared to other sectors nearby. Also, all facilities which a home buyer looks for are available in the sector’s proximity.”

The other reason for Sector 76 doing well is connectivity.

“The metro work has started. Also one can reach Pari Chowk by avoiding the City Centre route from Sector 76,” says Rashid Azam of Casa Investor. “The Wave City Center Metro Station is nearest to the locality connecting Noida directly with Dwarka. Additionally, factors like its proximity to Ghaziabad via NH 24 have ensured easy commute for the residents in this sector.”

The property options
The average price in the area is around Rs 4,500-5,500 per square feet. A 3BHK unit is the most supplied configuration in the area with sizes ranging from 1,000-2,700 square feet. The prices range from about Rs 50-90 lakh per unit.

A 2 BHK on the other hand is available at a starting value of around Rs 35 lakh and goes up to Rs 70 lakh with sizes ranging from 870-1,400 square feet. Residential houses are also available in the area at a budget range of around Rs 50-70 lakh.

Developers in the micro-market, as per HappyKeys, include Amrapali Group, Sethi Group, Aditya Group, Supertech and Skytech.

Amenities provided in these projects include eco-friendly features such as rainwater harvesting, energy efficient lighting, evaporative cooling and solar water heating systems, among others. Other facilities include clubs, walk paths, swimming pools and indoor sports facilities.


What Makes Ghaziabad A Good Property Destination

Some of the upcoming residential corridors here include Raj Nagar Extension, NH-24 beyond Indirapuram, Crossings Republik and Vaishali 

There are many factors that keep the Ghaziabad property market attractive — affordability and connectivity are just two of these.

“Ghaziabad is greener, less congested, has better connectivity and property is affordable compared to Noida. And this is why the area is doing better,” says RK Sharma of RK Sharma Properties.
Some of the upcoming residential corridors here include Raj Nagar Extension, developments along NH-24 Ghaziabad beyond Indirapuram, areas around Crossings Republik township and Vaishali.

Ghaziabad is well connected to Delhi-NCR through two national highways — NH-58 and NH-24. The widening of the NH-24 to six lanes and extension of the Metro route to Indirapuram and Mohan Nagar in Ghaziabad are expected to improve travel within and around these areas.
Upcoming development like the elevated road from UP Gate to Raj Nagar Extension, the metro project and improvement of crossing and widening of roads like the Meerut Road are currently underway.

The metro which is a lifeline for commuters from this area is expected to be expanded further in the future. As per the first phase of the metro line, it is planned to extend from Anand Vihar to Vaishali. In the second phase, the line is expected to come from Dilshad Garden to Ghaziabad new bus stand through Mohan Nagar.

“Given the lower population density of Ghaziabad, commuting by public transport is easier,” says Praveen Rastogi, director, Mahika Infratech. “And this is not just for the NHs but also for several roads within Ghaziabad. In fact, these main roads are of about 120 feet width, which is pretty broad for a small place like this.”

Ghaziabad is a developed locality in terms of social infrastructure. Presence of schools, malls, hospitals and banks make it favourable for buyers.

Some of the existing malls here include the World Square Mall, Shipra Mall and Mahalaxmi Metro Mall. Schools that can be found here include DPS, Amity International and Kendriya Vindayalaya, while hospitals include Max Hospital and Shanti Mukund Hospital.

Given that it is still a developing locality, one can find a wide range of offerings catering to a varied cross section of economic backgrounds.

“Mixed budget offerings are the key differentiator in Ghaziabad. You can get a 2 BHK priced at around Rs 15 lakh with a unit size of about 850 square feet to super luxury offerings at around Rs 2.3 crore,” says Rastogi.
In addition to apartment complexes, builder floors and even plotted communities are being developed here.

Key developers with projects in different stages of completion as per HappyKeys research include the ABA Group, Shipra Group, Wave City , Supertech, Amrapali, Gaur, Sara and TGB.

Legal advice

3 Things to Check While Buying Property

Hemant Gupta, a Noida-based advocate, explains the important aspects to check before signing the agreement with the builder or developer

There a number of important things one should check before signing the agreement for buying property in Delhi-NCR. Hemant Gupta, a Noida-based advocate, explains three important aspects:

1. Ways to know whether the project has legal approval
If banks are funding the project, then it may be treated that all approvals are in place. Normally, banks approve projects and start disbursement only after all the approvals are in place. Still, one must check the following:

  • Ensure that title documents of property one intends to buy are clear. One must verify with the originals.
  • One should ensure that the building that is being constructed as per the sanctioned plan and in case of any deviation, the same shall be within allowed limits. In case of reclaimed land, statutory NOCs from specific departments should be in place and one should possess a copy of the same.
  • One should ensure that the builder/developer has obtained necessary and mandatory clearance certificates from the electricity board, water and sewage board and other concerned departments.
  • Commencement certificate and occupancy certificate are other essential documents that are necessary to be verified while buying property.
  • One should ensure that agreement for sale and sale deed should be duly stamped, executed and registered in possession of the buyer. The agreement should be unilateral.

2. When a builder is liable to pay compensation
One should check payment terms with construction stage/s. If the buyer delayed in making payment or did not fulfill the terms as per the agreement, getting any relief from any judicial agency would be difficult. If one is ready to accept the penalties awarded for defaults, one can demand specific performance on the part of the builder from the consumer grievances forum.

3. Legal aspects one should keep in mind while purchasing a resale property
For resale property, one should check whether the property is duly registered, date of construction, whether the property free from all encumbrances and debts or disputes and whether the title is clear. One should also verify NOCs from various authorities.