Provident fund may get you a home loan!!

The Employees’ Provident Fund Organization, also known as EPFO is considering the decision of letting the subscribers pledge their future PF contributions to buy a house.  Here is how to use your Provident Fund to finance a home purchase. 

Purchase of a house/plot or Construction of the house:

Under the Provident Fund scheme, a subscriber can withdraw his PF money after the contribution of 5 years for the purchase or construction of house. The loan amount would depend on the purpose for which you are taking the loan. For purchasing a plot, the loan available shall be restricted to 24 months’ basic salary and dearness allowance (DA) and in case of the loan, to purchase or construct a house; availability shall be enhanced to 36 months of basic salary and DA. It is pertinent to note that the property cannot be purchased jointly with anybody else, except your spouse.

In case you withdraw from your provident fund account, the construction should begin within six months and be completed within 12 months of the withdrawal. In case you intend to buy a ready house, the purchase also needs to be completed within six months. The withdrawals for the purchase or the construction can be made in one or more installments, depending on the circumstances.

Subscribers can also avail the withdrawal facility again for additions or improvement of the house, only after 10 years from the first withdrawal, subject to the same eligibility criteria, vis-à-vis the amount.

Repayment of housing loan through Advances

For the repayment of the outstanding balance of home loan taken by you, the provident fund scheme allows you to avail of the withdrawal facility. The advance amount cannot exceed 36 months of basic salary and DA. This withdrawal can only be made for loans availed from specified entities like public financial institutions, Municipal Corporation, governments and state government, registered co-operative society, state housing board, nationalized banks, or a development authority.

The proposal, however, is in preliminary discussion stage and the government is exploring the possibility for providing a suitable low-cost housing scheme for subscribers of Employees Provident Fund.

Goods and Service Tax Bill – A boon for the buyers & sellers!

Real estate segment has witnessed a phenomenal growth in recent past. The growth is not just limited to Tier 1 cities, but even Tier 2 and Tier 3 towns.  The industry is in the conflict of increased regulations, with bills such as the Real Estate Bill for Regulation and Development, which is still pending for approval.  GST is one of those developments that will have a significant impact on this sector.

The implementation of this law will single-handedly solve many challenges faced by the real estate sector. This will also help in breaking the long slumber of this sluggish sector. The taxes being paid by the developers currently will go down by considerable percent.

Construction costs would also be reduced to some extent and this benefit can be passed on to the buyers, thereby spurring buying of homes, he added.

If a clear uniform rate for one tax that covers everything that the buyers need to pay in taxes to authorities, the whole payment process will become very easy and convenient for the buyers. In this case, even a higher rate would be more acceptable to the buyers than a lack of clarity.

However, the model suggested for GST Law restricts the availability of credit on goods and services to be acquired for the construction of immovable property other than plant and machinery. This clause in particular may lead to litigation, resulting in denial of availability of credits in certain situations.

The approval of GST Bill is the biggest indirect taxation reform being introduced in the country. It could be a turning point in the real estate sector which is currently plagued and loaded with a myriad of indirect tax issues.

We would like to believe that the bill brings a more comprehensive & uniformed tax structure to ensure greater transparency in the real estate sector.

Ready To Buy Your First Home?

Planning to buy a home for the very first time? Investing in a new home is one of the best kinds of investment in today’s age. While planning on the home, the few things that you consider are budget, space and feasibility. However, many first time home buyers get overwhelmed with the fact that buying a home comes with a wide load of responsibilities, majorly financial.

Given below are few things you should note if you are planning on purchasing house for the first time.

Contact a Buyer's Agent

Many people do not understand the role of a buyer’s agent. Buyer’s agents are experienced people within a certain locality. They have thorough knowledge and information about the complete location, including connectivity, availability of offices, educational institutes and commercial areas. They are the best people who can search you a house that best fits your budget. These agents also have the legal obligation of introducing you to the builder or developer from whom you plan you purchase. The agents negotiate contracts and will help you through the complete buying process. If required, they can also help you find attorneys, inspectors and movers.

Take Professional Financial Advice

While buying your new home, you have to deal with huge amount of money transaction. Therefore, it is wise to consult a financial expert. These experts will walk you through many different kinds of home loans that best suits your requirements and budget. This information will enable you to filter out your choices and make it easier for you to search.

Gather Market Knowledge

Here, you might need a little help from the buyer’s agent. The agents can gather you all the market comparables in a particular area of your interest. They will let you know the recent selling prices of the homes that you decide upon. This information will further help you negotiate with your offer price. At times you may come across houses where negotiation becomes a must. However, the homes that are fairly rated based on the rest of the market, may need no negotiation at all.

Get a Thorough Inspection

This is one of the major steps that one must implement while buying a new home. A thorough inspection is very crucial. No matter how good your home appears and how perfectly it meets your budget, there could be certain underlying issues that might end up causing undue stress. If any issue is found during the inspection, you could ask your buyer’s agent to get it fixed. However, if the issues are too large you can always pull back your decision of buying the house.

Thus, list down your requirements and start looking out. Buying your first house, referring to the above mentioned points, would make your search smooth and hassle free. let your new home be one of your best investments.

Why Greater Noida Is The Best Place For Property Investment?

In today’s time, Greater Noida is one of the hottest destinations in the realty radar. At present, there are above 3,000 families who have opted to move into projects located in Greater Noida. It has been speculated that by the year 2018, the location will home around three lakh apartments. Given below are few major reasons why the demand for property is high in this region.

The Greater Noida West Region:

Previously known as Noida Extension, Greater Noida starts after Greater Noida Expressway. The roads are well laid out, connecting Noida and extending eastwards with new upcoming sectors. Wide numbers of residential and commercial projects are expected to be completed in the next 2 years.

One of the major landmarks for the region is the Formula 1 track. This has also contributed in boosting the real estate sector on the Yamuna Expressway, making way for a number of both residential and commercial projects. Moreover, in the coming years the first night safari in India has been planned on the Yamuna Expressway.

Connectivity:

Greater Noida is wonderfully planned in terms of road connectivity. With an eight lane expressway that connects to Noida and further to Delhi, it becomes an ideal residential location for all working professionals. Moreover, the Noida-Greater Noida offers alternate connectivity to Noida City Centre and also Ghaziabad.

Recently, a six lane highway connects the region to Ghaziabad. The roads within the sectors in Greater Noida are statistically planned making it a more convenient place for residing and commuting. Moreover, after receiving the approval for extending the metro lines to Greater Noida, a number of developers and builders have opted for the region to construct commercial as well as residential projects.

The International Airport at Jewar, located 21 Kms from Formula 1 track, makes Greater Noida easily accessible for people all across the globe. This has further increased the demand for property. 

Educational & Commercial Hub:

Greater Noida also homes few of the most prominent educational institutions. Two of the well known universities in the region are Universities like Galgotia and Guatam Buddha University. There are also many professional institutes and colleges that are coming up in the next few years.

Along with the institutes and colleges there are also many IT and commercial offices that attracts residents from nearby cities.

Investment Returns:

With comparatively low property rates it is a perfect time to invest in property in Greater Noida. The region offers low rates as compared to nearby cities like Delhi, Gurgaon and also Noida. However, with due course of time the value of infrastructure is expected to increase.

Thus, Greater Noida is a place where you will find educational institutes with international standards, hospitals with advanced medical care, commercial places consisting of all brands and residential spaces. The region grants immense potential for property investors. Individuals are striving to avail both personal and professional benefits from this place. The residential locations in Greater Noida are NRI City, Jalvayu Vihar, Swarn Nagri and Parasnath Platinum. Similarly, sectors that are fully developed are Alpha, Beta and the Gamma sectors, which are already inhabited by people.

Therefore, if you are planning on investing on property, Greater Noida should be your first option as it offers all that is required for a comfortable and easy lifestyle.

Arihant Arden Welcomes To Experience The Luxury Living Arihant Arden Welcomes To Experience The Luxury Living

ArihantArden in Greater Noida West is one of the high rise living destination provided by Arihant Buildcon.

The project offers 2BHK, 3BHK and 4BHK well-planned apartments and is carefully designed to allow superior ventilation and feeling of newness in the free flow of fresh air and sunlight. Each apartment consist of practical apartment layout design to provide stylish amenities and a lifestyle to match, with a spectacular view of the landscape. The apartments are adorned with luxurious facilities, to generate a feeling of calmness and tranquility in every room and to provide living spaces of international standards.

The project is elegantly designed, with stylish and modern amenities and gadgets like swimming pool, a fully equipped gym, garden area, high speed lifts, ample parking space, rain water harvesting, intercom facility, security system, jogging track, indoor games, fire safety alarms, modular switches, round the clock water & electricity supply, and much more. All these facilities are of premium class and gives you the perfect mixture of comfort, luxury, security, world class facilities and a highly sophisticated ambience.

A new tower in Arihant Arden will soon going to be launched with world class construction, technology, product quality beautiful aesthetics and promises timely construction with a commitment to quality. The finish of the project along with modern amenities will be the trademarks of this residency.