Financial Planning before buying a house is one of the best things that you can do. Before you start planning the locality or planning the colour scheme of your house, you should plan your finances. Initial planning is very important as it will determine all the major aspects of the home purchase. How much loan you might need, EMI amount that you should fix and whether you should opt for the EPFO scheme or not? You have to think and ponder upon many things before you plan the purchase of a new house. To help you understand the financial needs and planning in a better manner, we have compiled this post. So, if you are planning to purchase a new home, you should read this post in order to take better decisions in relation to Financial Planning before buying a house.

Financial Planning to buy a house – Understanding the various dynamics: 

• Checking the Credit Scores is a must!

Start with checking the credit scores. Even if you are applying for a small amount of loan, your credit score will be a major factor in the process. It will represent your ability to repay the loan. If you have a bad credit score, the loan application might be rejected or you might not be able to get the desired loan amount. Hence, you should try to keep the credit score in a good shape; at least for the account from which you are going to do the loan transactions. In case your credit score is bad, you can take some time to improve it and then reconsider the loan. 

There is another way out of the situation where you can give legible answers to the lender. You can show the receipts and other documented proofs for your current transactions so as to show that you are in a position to pay the loan back!

• Job History – It should be steady!

Your job history, job profile and employment status are also considered at the time of taking the loan. The lender needs to know what kind of income sources you have and whether or not you will be able to pay the EMIs. You must have a stable employment history. Even if you have job changes, it would be better if they are not because of sacking. So, try to be in a stable job for some time, before you set out to apply for a loan to buy your house. 

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•  Down Payment: 

You must decide the amount of down payment as a beginner. The down payment should be planned such that it doesn’t leave you into shambles. Your finances should be in better shape even after you remit the amount. Further, the down payment should not be this less that you end up paying a lot of money via EMIs. Hence, planning the amount of a down payment is a big financial decision that you should take after a lot of consideration. 

• Finding the balance in between the down payment and the mortgage payment:

The modern-day policies and banking allow people to buy homes with even ZERO down payments. However, the buyers fail to identify the massive wrong-doing this decision can do to their finances. You have to ultimately pay the amount. So, if you are not going to pay it as the down payment, you will have to pay it as the mortgage. Mortgage can really make your finances crunch while leaving you in a juice! So, plan well, and opt for a safe down payment amount. Don’t burn the pockets, but don’t leave them completely untouched. Find the balance between the mortgage and down payment before buying the house.

•  Maintenance Costs:

Don’t think that just because you have purchased the home, you don’t have any other expenses. You have to plan the monthly expenses and the maintenance costs at that time as well. You have to pay the bills, the taxes, the monthly food expenses and miscellaneous expenses that come your way regularly as well as out of the blue. Hence, plan well and spend some time mandatorily for Financial Planning to buy a house. Planning the EMIs and expenses should be done such that you don’t face extreme cash crunches. Further, the house will also need maintenance on a regular basis. You might be required to buy some new furniture, or you might also need a replacement for some fittings etc. There are many hidden costs that come along with buying the house. You must take them into consideration while planning the finances. If you are buying the house in a colony or posh area, you might be required to pay some fixed annual or biennial maintenance charges. The amount varies from location to location. But, this is a fixed expense that you have to bear. Similarly, there can be many other surprise expenses that you might encounter.  

• Documentation Charges:

While buying a home, you have to do a lot of paperwork. There are deeds, registration documents, NOCs, electricity and water applications and many other things that simply EAT your money away! You might be required to pay a lot more money than your expectations. Hence, don’t play recklessly with the loan amount or finances when you are doing a hefty investment such as buying a new home. 

• Planning the EMI amount:

You have to pay the monthly EMIs as well! Don’t forget them, like, NEVER EVER! People tend to ignore the fact that they have to pay them monthly and finalize a value that becomes a burden after some time. Hence, you should opt for an EMI amount that you can pay every month without putting all the other expenses in a questionable range! 

So, follow these tips for Financial Planning before buying a house and make your dream home an affordable place to enjoy Sweet Dreams!

Buying your own home is a dream that can now be fulfilled more easily. With the announcement of the schemes such as ‘Houses for all by 2020’ the subscribers of the EPFO scheme can now withdraw up to 90% of the Provident Fund. Now, coming to the other hand, many suburban areas in India are now getting developed as major residential areas. Palakkad in Kerala is also emerging as one of the major residential areas. Many major construction projects are going on in the area where villas and independent houses can be bought. If you are planning to buy Houses in Palakkad then reading the following post will prove beneficial to you. 

The following post comprises details on buying the houses with EPF. So, read the following post and find all that you should know about buying homes with EPF. 

EPF Housing Scheme – Details:

• EPF housing scheme allows the subscribers of EPFO to use 90% of the Provident Fund for buying homes. 
• The EPF amount can be used to pay the EMIs and financing the down payment as well. Hence, buying your own home can be done easily by the Government Employees. 
• To withdraw the amount from the EPF account in order to buy the home or to build the home, the employee must have completed at least 5 years of keeping the savings in the EPF Account. The amount of withdrawal can be done by the owner of the account, his wife or by both of them jointly. 
•  There is a different limit on every kind of withdrawal. If you want to withdraw the amount to purchase a plot for your home, then the limit is decided by your 24 months’ basic salary along with the dearness allowance. 
• On the other hand, if the withdrawal is being made to build a new home, the maximum cap is placed at the 36 months of the basic salary and Dearness Allowance. Once you have withdrawn the amount, you have to begin the construction in 6 months. The construction should be completed within 12 months starting from the date of last instalment. 
• If, however, you are planning to buy a readymade home using your EPF then the deal should be sealed within 6 months of amount withdrawal. So, this is applicable to the people that wish for using EPF to buy your home in Kerala. 

So, the current policies for housing have made it really easier for everyone to own a home. So, when are you buying your own home? 

Palakkad is emerging as one of the hottest districts for residential properties. A number of construction projects are going on in the district and the place is going to become a hub of residential properties of all scales and flavours. Blessed with loads of natural beauty and amazing location that has many tourist attractions all-around, Palakkad is going to be one of the major suburbs of the region. If you are also planning to Buy houses in Palakkad, then, read the following post. We have compiled a detailed post regarding the stamp duty rates and charges on the property in Kerala.

At the time of buying property, you have to pay the stamp duty; registration charges; and cess etc. Find all about these extra charges that you have to pay if you Buy villas in Palakkad.

Stamp Duty – What is it?

• This is the fees that you have to pay at the time of transferring the property to your name. This fee is levied by the State Government on all the documents that you need for the property registration.
• Every state has a different Stamp Duty as per the norms of the Government.
• As per Section 3 of the Indian Stamp Act, 1899, you have to pay the Stamp Duty for registering any property in your name.
• This fee is charged for the verification of documents that are required for the registration process. The registration document will be an absolute and legal proof that indicates the name of the owner. Hence, it has the final say in deciding who the owner of a property is.
• If you don’t complete the registration or don’t submit the Stamp Duty, you will not be able to call a property your own.
• Hence, you must complete the registration process and submit the Stamp Duty if you Buy villas in Palakkad.

Factors that decide the value of Stamp Duty:

• The age of the owner plays a crucial role in deciding the amount of Stamp Duty. The senior citizens are given subsidy on the Stamp Duty charges in all states.
• Likewise, the women are also offered a rebate on the Stamp Duty. Men have to pay 2% extra charges as compared to women. This is why most of the people opt for women when it comes to registration of some property.
• The Stamp Duty charges are decided on the basis of the property age as well. The market value of the property is also considered. As the old properties have less Stamp Duty, if you are going to Buy villas in Palakkad, the Stamp Duty will be more.
• The Stamp Duty Charges of the Commercial Buildings are more as compared to the residential buildings.
• The properties located in the posh areas have a larger fee as compared to the other areas. This is because of the type, number and grade of services and amenities available there.
• If you want to avail any extra amenity on your property, then you have to pay more Stamp Duty. The State Government has a list of 20 amenities that come at a high price.

Calculation of Stamp Duty Charges:

• The charges are calculated keeping a lot of things in mind. First of all, the total market value is considered. The expensive properties have a higher fee and the cheaper ones have a smaller Stamp Duty.
• The State Government has a full chart in which every single thing has a different fee. For example, the gender of the owner, age of the owner, area in which the property is located, extra amenities that the owner has opted for and any other special regulations for the type of property.
• You can download the list of Stamp Duty and Fees online as well and check all the fees before you Buy houses in Palakkad.

Documents Required for Stamp Duty Payment and Registration of the Property:

• Sale Deed raised in the seller’s name
• Khata and BBMP Certificate
• Power of Attorney
• Tax receipts of the past 3 months
• Joint Development Property Documents
• All registered previous agreements
• Conversion Order
• Latest Bank Statements
• Electricity Bills and Sale Agreement
• 7/12 Extract
• Sanctioned Building Plan
• Occupancy Certificate issued by the builder

Any other case-specific documents and fees might be applicable that varies from property to property.

These are the basic things that you should know before you set out to Buy houses in Palakkad. Read all the rates and special fee in the official circular provided at:

Palakkad is growing as a major choice for residences in recent times. There are many small, medium and large-sized building and construction companies that are developing the area. This has considerably piqued the interests of the people and they are buying houses in Palakkad. If you are also planning to buy houses in Palakkad or some other form of residential establishment, then read the following post. It has some really beneficial and highly effective Vastu tips for positive energy at home. Read them carefully and follow them to create a lovable, positive and content aura in your homes.

Vastu Tips for positive energy at home

• Keep the entrance unobstructed and open:

It is one of the most beneficial Vaastu tips that you should follow no matter what. This is highly crucial to let the positive energy enter your home. Apart from having the main entrance open, you should always ensure that there is no obstruction in the way and that there is no window or door right in front of it. This type of situation basically lets the positive energy leave your home as soon as it enters. So, avoid it.

• Keep the home clean and organized

It is important to keep your home organized and free of a chaotic mess. Chaos attracts chaos and mess is a perfect storehouse of the negative energy. To make sure that your home stays full of positive energy, you should never let the clutter spread in your home. The toys; utensils; any other commodity that has broken, should be thrown away – it will not let negative energy to manifest in any form in your home.

• Magnetic Colours

There are some colours that are associated with positive energy. White, earth colour and all the colours of a rainbow are extremely auspicious and a harbinger of positive energy. These colours fill your homes with absolutely pure and vibrant energy. Keep the extremely dark colours away for a home that spells peace and harmony. 

• Mirrors

Mirrors have always been associated with energy and its various forms. Mirrors reflect energy in all forms. Hence, they reflect positive as well as negative energy. Hence, you should place them on walls at strategic locations. You should not have mirrors in your bedrooms if you wish to have a peaceful sleep. Mirrors attract a lot of energy and thus, the energetic confluence in the room makes it hard to enjoy a peaceful sleep. 

• Let nature bring peace and harmony in your home:

Install some indoor plants in rustic planters that are directly associated with nature and natural elements. Money plant; plants that bear flowers and bamboo are some lucky plants that are recommended by the Vasstu Experts. So, if you are planning to buy readymade houses in Palakkad; don’t forget to have a small indoor garden or indoor planters in your new home.

• Wind Chimes

Basically, the tradition of having doorbells at the entrance has a deeper meaning to it other than just being the announcer of any new person’s arrival. Music brings positive energy and is thus extremely auspicious at the entrance of your homes. You should install some lovely wind chimes that create superb music when they come in contact with the wind. Let the music bring lots of peace and positive energy in your homes.

• Fresh and Fragrant homes

It is important to have a home that is fresh and fragrant at all times. A bad smelling home is a perfect storehouse of bad energy. Keep your homes fragrant with fresh flowers; incense and other such essentials. Don’t let any kind of stench build-up in your home to keep the negative energies at bay.

• Keeping the statues of gods

Always keep some statue or images of the gods or any other religious symbol in your home. If you can install it on some height, it is even better. These statues and religious symbols create a powerful source of positive energy in your home and keep the overall atmosphere full of harmony and peace.

• Don’t keep trash in front of your home:

Keeping trash in front of your home will only bring negative energy to your home. Hence, don’t let the trash build-up in your homes and keep the trash cans in the backside. Make sure you empty them on a daily basis.

These are some tips that you should follow to keep your new houses in Palakkad full of positive energy at all times. Combine the feeling of having a new home with the best Vaastu tips and create a lovely aura in your home that brings peace to all the residents.

Investing in a property is the investment of a lifetime for the common man. It is probably the biggest investment the common man makes in their lifetime. It is years of savings of the hard earned money. So, it is for the best that the savings do not go into a waste or worse, into a loss. Taking out insurance of the property is the best way to save and protect the savings of the lifetime.

The basic idea behind taking out insurance of the property is not to become financially crippled following a loss. The insurance allows one to stay financially whole during dire circumstances. This is the darker side one evaluates before taking out the insurance. This is not the only reason, but it is one of the few. Before jumping into investing randomly in some properties, check out the Villas in Palakkad. They are surely worth your investment

The insurance of a property is not a luxury, it is a basic necessity 

• Insurance provides protection against property damage

Irrespective of the size, location, and type of property, it is vulnerable to natural calamities and blunderings of a thief. So property insurances cover damage costs due to floods and monsoon, fire, earthquake, hurricane, and burglaries. Suppose the property is built on land which is susceptible to erosion and the house comes crashing down, it is a good thing that the property has insurance.

• Insurance provides protection for jewellery and art

This is for owners who own expensive jewellery and art pieces or other valuable art artefacts in their homes. Adding a floater to the property insurance has everything covered. This comes in as an Add-On feature in the property insurance. Moreover, this add-on feature will cover any damages to the personal items. Though, one should keep in mind that, this add-on feature only pays out a fixed amount and not more than that.

• Insurance provides protection against liability

Liability coverage protects the homeowners from incidents that occurred in the surrounding neighbourhood or an incident occurred in the next door neighbour’s house and has affected you. Liability coverage provides damage costs to such incidents that may happen any time, unannounced.

• Insurance provides protection for commercial ventures

If the homeowners decide to rent out the place to a family with kids, or to college students turning it into a dorm, or singles with pets, then the homeowners are generally held accountable for any structural damage or physical damage caused during the time of tenure. In cases where the tenant gets injured and files a lawsuit, the insurance may also provide some coverage.

Gathering the final thoughts about the insurance of the property

These were a few basic guidelines to keep in mind while sealing a deal while buying the insurance. It is of utmost importance that one must follow the checklist for property insurance before nailing the deal. One must also read the policy thoroughly and understand the terms and conditions of the same. Second guessing does not help. What helps is knowing what the policy is covering for and what not.

Knowing the coverage helps while claiming. Be safe and be covered.