VBHC to build premium houses, plans share sale

Affordable housing firm VBHC Value Homes Pvt. Ltd, which sells homes in the Rs16-40 lakh price bracket, will also build premium homes and is planning an initial public offering (IPO), said senior company executives.

VBHC Premium Houses

“The three fundamental positives for an IPO would be that the stock market has performed well, recent IPOs look good and the affordable housing sector continues to do good. The only negative would be that the real estate sector is still not doing well. So, the key to success (for an IPO) will be to separate affordable housing from the overall real estate sector,” said Jaithirth Rao, chairman, VBHC.

Source: VBHC to build premium houses, plans share sale

Buyer’s Checklist When Closing on a House Deal

Buyer’s Checklist When Closing on a House Deal

Buying a house is no small accomplishment! It involves a lot of legwork, scouring for  locations, arranging funds, negotiations, and momentous paperwork, among other things. Therefore, once you have zeroed on your dream property, you would definitely want to avoid any hiccups during the final closing stage.

Buyer’s Checklist When Closing on a House Deal

Let us look at a few critical parameters that need to be assessed, before you go ahead and make the final payment on your house.

  1. Legal Documents:

To avoid any unnecessary hiccups be diligent while verifying the legal formalities related to transfer of property ownership. Some of the critical documents that fall under this purview are the sales deed, share certificate, society papers, encumbrance certificates, sanction plans, etc. Also, ensure the property has been registered in your name with the authorized regulatory body. This simple step can help counter any title-related disputes.

  1. Amenities:

At the time booking, buyers are usually promised state-of-art amenities such as pristine swimming pools, play areas, green spaces, gorgeous landscaping, fully equipped gymnasium, clubhouse, etc. Before taking possession of your flat, make sure that the builder has honoured his side of the deal and has provided you with all the conveniences as per the promised specifications. Any disparities should be flagged and brought to the notice of the builder.

  1. Check for the Walls:

It may seem insignificant, but walls are what make a house and are undoubtedly the most important architectural element of a flat. Therefore, it is in your interest to check the walls for any chips, cracks, peeling of paint, leakages or dampness. In case of any damages, ask the builder to carry out the necessary repairs before you take possession of your house.

  1. Check the Fixtures:

Make sure all the fittings and fixtures are new and in working condition. Electrical wiring should be fault-free and of high durability. There should be a separate line of sufficient gauge wire for each air conditioner and heater. All the plug points, sockets and bulb holders should be connected to the main plug, and power back up facilities, if promised, must be provided. Bathroom and kitchen fitments must be in line with the specifications. Check the windows, grills and doors for any cracks, chips or any other form of damage. Clogging of drainpipes could be a nightmarish experience and that too an expensive one. Therefore, make it a point to check the drainage systems of your house. Bathrooms, balconies and the kitchen must be equipped with proper water outlets.

  1. Security Features:

Each of us aspires to live in an environment devoid of any danger or threat. To achieve this, make sure the builder has conformed to all the critical safety standards laid down by proper authorities, such as the National Building Code. There should appropriate provision for fire exits, fire extinguishers, smoke detectors, etc. In case of any discrepancy here, you must get it addressed before taking over the possession of your flat.

Adhere to these simple, yet important pointers to ensure that the closing process of your much awaited dream home is smooth and uncomplicated!


Six Things to Remember When Applying for a Home Loan

Six Things to Remember When Applying for a Home Loan

Nowadays, buying homes is no longer an impossible feat. Financial and Non-financial institutions readily provide home loans at attractive rates to prospective buyers. However, there are certain aspects that need to be taken into account before applying for a home loan.

Six Things to Remember When Applying for a Home Loan

In this article we will examine a few critical ones.

  1. Know your Loan Eligibility:

Typically, Banks can sanction up to 80% of the property value as loan amount subject to your past history in paying credit card dues, home loans, if any, and your current income. Another point to note here; while calculating your net income, banks usually exclude heads like Leave Travel Allowance (LTA) and medical allowances as employees are expected to use them for personal consumption. Only that part of your income will be considered which can actually be utilized to pay off the loan amount.

  1. Know your CIBIL Score:

Your home loan eligibility also depends on your credit score. The Credit Information Bureau India Limited (CIBIL) scores every individual on a scale of 300 to 900 depending on his/her past credit history, management of accounts, management of previous loans, if any, history of any bounced checks, etc. Usually a score of above 700 is considered acceptable for sanctioning of home loans. All financial and non-financial institutions make it a point to check the CIBIL score before sanctioning a loan.

  1. Types of Interest Rates:

There are two types of interest rates – fixed and floating. It is important to understand the difference between the two as these will have a profound impact on your monthly EMI amount. Fixed interest rates are immune to changes in the market conditions and will stay stable throughout the loan tenure, and hence are advisable if interest rates are likely to increase. The floating interest rates change in response to fluctuations in the markets. Therefore, it would be sensible to choose this option if interest rates are predicted to fall.

  1. Loan Tenure:

The calculation of monthly EMI on home loans is based on the loan amount, the interest rate on loans and the tenure. There is an inverse relationship between the EMI and the loan tenure. That is to say, if the loan tenure is long, then the EMI amount will be less on a monthly basis and vice versa. However, it is also to be noted that there is a direct relationship between the tenure of the loan and its interest rates. So, if you opt for a longer tenure, then the amount you pay as interest will be much higher than if you opt for a short tenure period. Hence, careful analysis of different permutations and combinations are needed before you make a decision.

  1. Choose the Lender With Care:

Do careful research before settling on a lender. Look for things such as terms and conditions of offering a loan, the interest rates, loan repayment options, customer service, charges for termination, etc., and go for the one that offers you the best package.

  1. Read the Agreement Documents with Care:

Make sure you read the loan contract carefully with special attention to the small print before signing it off.

These tips can go a long way in simplifying the loan approval process and bringing you a step closer to possessing your dream home.

Bangalore: Top Corporate Realty Market of India

Bangalore: Top Corporate Realty Market of India

Bangalore has emerged as the biggest commercial real estate market in India. According to the latest CB Richard Ellis (CBRE) report, this city has been a leader for the past five years in terms of office space stock and office space absorption trends.

“Bangalore’s investment grade office stock grew exponentially from less than 20 million square feet in the early 2000s to 127 million square feet in 2015-at a compound annual growth rate (CAGR) of 13 per cent over the last 15 years. This has placed the city well ahead of other leading Indian office hubs”, CBRE said in a statement.

Top Corporate Realty Market of India

A combination of factors are responsible for making Bangalore the most sought after corporate realty destination. Some of the most critical factors have been discussed below:

  1. IT/ITES sector:

Known as the Silicon Valley of India, Bangalore has witnessed phenomenal growth in the IT/ITES sector since the early Y2K controversies. Home to more than 40% of the total IT companies in India, the city still continues to attract foreign investment because of supportive government policies, conducive to growth culture and exceptional talent pool. This trend has created a huge demand for commercial real estate spaces in the city for constructing retail spaces, commercial office spaces, IT city centres and IT parks.

  1. Growth of E-commerce and Global Captive Centres (GCCs):

Off late, major demand for commercial real estate in Bangalore is coming from e-commerce players and on-demand car-sharing players. Also, this city plays host to the largest number of GCCs in India, contributing to increasing demand of commercial real estate.

  1. Breeding Ground for Start-Ups:

The booming technology sector, availability of a huge talent pool and stable government has made Bangalore a fertile base for starting and running successful businesses. This flourishing start-up culture is also responsible for boosting the demand for commercial realty in Bangalore.

  1. Connectivity:

Another reason why this city is considered as a preferred base for corporates is its excellent connectivity. Bangalore is home to the third largest airport in India, it is a major railway hub, and has convenient access to major economic centres of India – Mumbai-Pune region, Hyderabad, Chennai and the West Coast. In addition, the city’s local transportation network is superior to that of most other cities in India.

  1. Talent Pool:

Bangalore is home to many internationally renowned management, medical and engineering colleges. The availability of highly qualified skill pool has been one of the major reasons why corporates prefer to establish their operations in this city.

  1. Conducive Weather:

Good temperate weather and the city living upto its reputation as the ‘Garden City’ are also responsible for attracting and retaining corporate investment in the city.

Therefore, it is evident that Bangalore has all the potential to sustain its position as a leader in corporate realty market in India.