Property News

The largest housing finance major— HDFC has fallen in line with State Bank of India. The company has introduced a special home loan scheme at 8.25% fixed up to March 2012, reports CNBC-TV18’s Gopika Gopakumar. The new home loan scheme is fixed at 8.25% up to March 2012.
                  
Thereafter, the company will fixed the home loan at the floating rate for the balance term. The new scheme will be applicable to all customers, who will take this loan before January 2010. The disbursement will have to be taken before March next year. The company says there is ample liquidity in the system and the company has been able to bring down its borrowing cost. Therefore, it’s passing on the benefit to the other customers. HDFC has also introduced a special scheme for those customers who are ready to move into new property.
                  
But with this rate cut, HDFC’s rate is still not lower than SBI’s and LIC Housing Finance’s rate.

The prospective homebuyers, who are looking to cobble together funds to buy an attractive property, now have every reason to cheer. The country’s largest lender State Bank of India on Friday decided to extend its 8 per cent home loan scheme till March 31, 2010, just a day before it was due to expire. The move is sure to further intensify the already heated competition in the home loan market. In the past few days banks like Axis Bank and Bank of Rajasthan have launched special scheme for home loan borrowers. Axis Bank came out with a special 8 per cent scheme for the first year and Bank of Rajasthan too dropped home loan rates to 7.
                  
5 per cent w.e.f. from November 9 and Punjab National Bank extended its 8.5 per cent scheme till December 31. The bank, which offers the special scheme under ‘My Home Campaign’, gives 8 per cent fixed interest rate for 5 years for loans up to Rs 5 lakh, with a maximum tenure of 10 years.
                  
These are clear signs of banks renewing focus on the growing home loan market in the country. With low credit off-take worrying the banking industry, the banks’ continued aggression in the retail space is not surprising especially in the absence of signs of strong demand from the corporates. Credit off-take dropped to single digits recording 9.6 per cent growth as on October 23. In fact, both the disappointing credit growth numbers and SBI’s move has already got other players thinking of extending their schemes too. “Such schemes should be continued as it is not a time to withdraw schemes,” said MV Nair, chairman and MD of Union Bank of India.
                  
SBI’s aggression may also force bigger private sector players to relook at their strategy for the fear of losing market share. The customers however are all smiles as the party continues.

Buying a property is not only buying a dream property but also your investment in life. It is obvious that you don’t want to invest on property which causes problem or risk in future. You may be searching for assistance or checklist to guide you for buying your dream property. Here are some checklists for smooth and easy buying of property. Clear Title Do not buy a property if the title of property is not clear.
                  
If title is not clear or marketable it will cause problem in future and financial institutes refuse to finance on such properties. You can either seek assistance of your lawyer or approach financial institutes to know whether the title of the property is clear. Your property title confers the owner of the property. Documents Ensure that seller of property has all documents relating to property. If possible ask for copies of original documents and get them verified by your legal advisor or lawyer. Expense for buying Consider cost for property and other expense incurred for owing the property.
                  
Cost of property is not rate of property but also includes other costs. Some of the important costs incurred for buying a property are fee for lawyer, Registration and notary cost, realtor’s commission etc. Home Insurance Home insurance for your property helps you to meet unexpected loss or expenses. This helps you in case of theft, fire or other natural calamities. While applying for home insurance, search for company which offers you insurance at low premium rate. Title insurance This insurance is important for buying a property and protects buyer against any losses.
                  
This is an advantage for buyer when buying a property and helps to avoid from buying a property with defect in title. Approved layout Get copy of approved layout for the building from your builder or seller of property. Ensure that building plan and construction is approved by the authorities and property is listed in government register. Consult a Realtor Choose a good realtor or agents for helping you to buy a property. You can contact agents or realtor in your neighborhood. Remember do not buy a property believing the realtor or seller, buy them only if you are convinced and feel comfortable with.
                  
Ensure property is free from debt and liabilities Ensure you are buying a property which is free from debts and all taxes are paid in time. If seller of property has taken any loan or advance on the property, ensure they are paid off and ask them for documents or copies to show that property is debt free. Intimation of disapproval (IOD) IOD is set of instruction given by respective authorities for builders to construct the building. Normally it is valid for a period of one year and if the building is not constructed within one year’s time, IOD has to be reissued. Water and power supply Ensure that property you are buying has adequate water supply and there is no problem of power such as voltage fluctuation, power shortage etc. Voltage fluctuation can damage your home appliances.
                  
Ensure the availability of water and power supply. When buying a property ensure that there is no claim on the property by authorities or government and check whether land is designated for the residential purpose. Before buying the property ensure you have good neighbors and check the reason for selling the property. Make good market research and seek expert’s service for making your decision. ( source: iproperty)