FAQ

If your goal is to buy a home for it’s resale value and the one you are thinking of
buying in the older neighborhood is at the upper end of values for that neighborhood,
then it may not be the wisest choice. If it is similar or lower in price to the others,
then there should be no problem, because pricing should be considered in relation to the
local neighborhood and not compared to homes in other neighborhoods (for the most part)

Plus, is it a neighborhood on the decline, or are others going to be fixing things up, too, so that it is a neighborhood that is improving? It could turn out to be a very good deal as long as you don’t “overpay” because of the recent improvements.

Remember that you also buy a home for it’s value to you as a “home,” and that is something else you should consider. Which neighborhood would you AND your family feel most comfortable in?

A lot depends on why you are buying the house. Are you buying it mostly as a home or mostly as an investment? There is a difference.

For the most part, upgrades are high-profit items for builders. They aren’t designed to enhance the value of the house, but make you happier with the house you do buy.

If you are looking at your home as an investment, then you buy from the smaller to medium size in the tract and spend only a minimal amount on upgrades. If you are looking at your purchase as a home, then you select upgrades that will enhance your quality of living.

One rule of thumb is to always upgrade the carpet and padding.

It’s like buying stocks. How do you really know which ones will increase most in value over the next five years? As with any investment, there are risks.

The most often quoted rule is that location is the most important factor.You want to make sure that the house does not back to busy streets and is as close to the interior of the tract as possible. Avoid corners and intersections. Choose the middle of the block or a cul de sac. You’ll want to be sure it has at least two bathrooms (if you are buying in an older area).

Sometimes it is just timing that works out best for you. For example, if you buy a home before a major surge in local prices.

There is truly no concrete “correct” answer to this question. There are pro’s and con’s to buying a home before selling your current home and the same can be said about selling your current home before buying another.

The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up. This can reduce the stress and pressure of having to find a home once your current home is sold. This however also can create disappointment and heartbreak. If you are unable to purchase a new home without having to sell your current home, you’re purchase offer is going to be contingent upon sale and transfer of title of your current home. If your current home does not sell in a timely manner, this can lead to you getting “bumped” by a non-contingent buyer and you losing out on the home you’re looking to purchase, which can be devastating.

The time it takes to sell your current home is unpredictable. There is no crystal ball that exists that can tell you exactly how many days it will take. Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you’re purchasing due to the fact you are purchasing without the sale contingency of your current home.

One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live. There are options if your current home sellers before buying another though. A “rent-back” can sometimes be negotiated with the buyer of your current home. A “rent-back” would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage. A “rent-back” allows for additional time to find a new home.

When buying a home, it’s important to know what additional costs will be in addition to the monthly mortgage payment. Utility bills are just one of the additional costs to consider when buying a home. Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months. Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.

  • In the sales agency agreement the agent must specify their genuine estimate of the selling price, expressed without any qualifying words, as either: a single figure, or
  • as a price range in figures with an upper limit that does not exceed 110 per cent of the lower limit. (ref LABSAC sec 24A)
  • The agent is not required to disclose to the vendor how they arrived at their genuine estimate of the selling price. However a vendor is free to choose not to list with the agent on this basis.
  • The vendor is required to state their selling price sought or a price acceptable to them as a single figure in the sale agency agreement.
  • If a vendor does not specify a selling price in the prescribed form then the agent is not authorised to act on their behalf and is prohibited from doing so. (ref LABSAC sec 20 (1))
  • An agent cannot market or advertise a vendor’s property for less than the ‘prescribed minimum advertising price’.
  • Legislation does not require vendors to accept any offers; however, the agency agreement may require payment of commissions in a variety of circumstances.
  • If the vendor wishes to advertise below the ‘prescribed minimum advertising price’ the sales agency agreement needs to be amended and signed by both parties.
  • If the vendor receives an unconditional offer over their stated selling price in the sales agency agreement but rejects the offer then the agent may be entitled to their sales commission if the sales agency agreement makes allowance for this.

Your home should fit the way you live, with spaces and features that appeal to the entire family. Before you begin looking at homes, make a list of your priorities: location, size, lot, amenities, etc. Establish a set of minimum requirements and a “wish list”. Minimum requirements are things that a house must have for you to consider it, while a “wish list” covers things that you’d like to have but aren’t essential.

In addition to comparing the home to your minimum requirement & wish lists, consider the following:

  • Is there enough room for both the present & the future?
  • Are there enough bedrooms and bathrooms?
  • Is the house structurally sound?
  • Do the mechanical systems and appliances work?
  • Is the yard big enough?
  • Do you like the floor plan?
  • Will your furniture fit in the space?
  • Is there enough storage space?
  • Does anything need to be repaired or replaced?
  • Imagine the home in good and bad weather and in each season. Will you be happy with it year round?

Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint.

Closing costs are usually made up of the following:

  • Attorney’s or escrow fees (yours and your lender’s if applicable)
  • Property taxes (to cover the tax period to date)
  • Interest (paid from date of closing to 30 days before the first monthly payment)
  • Loan origination fee (covers lender’s administrative cost)
  • Recording fees
  • Survey fee
  • First premium of mortgage insurance (if applicable)
  • Title insurance (yours and lender’s)
  • Loan discount points
  • First payment to escrow account for future real estate taxes and insurance
  • Paid receipt for homeowner’s insurance policy (and fire and flood insurance if applicable)
  • Any documentation preparation fees

The more you know about a seller’s motivation, the stronger a negotiating position you are in. For example, seller who must move quickly due to a job transfer may be amenable to a lower price with a speedy escrow. Other so-called “motivated sellers” include people going through a divorce or who have already purchased another home.

Remember, that the listing price is what the seller would like to receive but is not necessarily what they will settle for. Before making an offer, check the recent sales prices of comparable homes in the neighborhood to see how the seller’s asking price stacks up.

Some experts discourage making deliberate low-ball offers. While such an offer can be presented, it can also sour the sale and discourage the seller from negotiating at all.

Before looking for a home, determine your price range, down payment amount, and estimated settlement charges. Lenders use different variables including income, debt load and credit scores to determine how much a potential buyer can take out as a mortgage knowing what you can afford makes finding the right home easier.

Before you close on a home, you should hire a home inspector to evaluate its condition. That way, you avoid surprises after settlement, and you can see the condition of the home firsthand. You can also order additional tests for radon, wood destroying insects or lead paint.

The home-buying process from looking through listings to actual settlement has many steps to be fulfilled and deadlines to be met. Your agent can guide you through the process, whether you are looking at your first home, transferring to the area, or searching for investment property.

Additionally, a buyer’s agent is familiar with past home sales in the area and can help buyers decide on a fair offering price for a home.

  • Confirm the approved plans from the appropriate authority are in place.
  • Check that all other permissions from various authorities are in place. E.g. Utility Companies, Environment clearance, Airport Authority, etc.
  • Confirm that the Land title is clear and there is no disputes/litigation (Title Certificate).
  • Confirm Builder has the Intimation of Disapproval (IOD) and commencement Certificate (CC) to start construction.
  • Have the agreement evaluated by an Advocate. Check possession date promised and provide for penalty if Builder does not deliver as agreed.
  • Check and negotiate the payment schedule.
  • Do not book in Pre-launch without executing and registering the agreement. In Maharashtra, it is mandatory for Builder to do both at inception stage itself.

  • Approved plans
  • Title Certificate from Advocate of current date
  • Copy of IOD/Commencement Certificate
  • Stamp duty paid receipt
  • Demand Draft for payment of Registration fees.
  • Property Card showing CTS No. of plot
  • PAN cards of Sellers and Buyers
  • Khata Extract

A deed is the document that transfers ownership of real estate. It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. You can’t transfer real estate without having something in writing, which is almost always a deed.

In order to determine how much you can afford, we need to understand debt to income ratios.
First, we must determine what your gross annual income is and divide that income by 12. (12 months)
Second, we must determine your long term debt. For example: home mortgage (principal & interest), taxes & insurance (T & I), school loan, car loan, credit card debt, etc. and calculate the monthly payments.
Third, the debt to income ratio is established by dividing the monthly debt by the monthly income. The debt to income ratio should, in most cases not exceed 35%.

Forth, if the debt to income ratio is 35% or less and your credit rating is decent, there is a good chance you will be able to get approved for a mortgage loan.

Your home should fit the way you live, with spaces and features that appeal to the entire family. Before you begin looking at homes, make a list of your priorities: location, size, lot, amenities, etc. Establish a set of minimum requirements and a “wish list”. Minimum requirements are things that a house must have for you to consider it, while a “wish list” covers things that you’d like to have but aren’t essential.

The more you know about a seller’s motivation, the stronger a negotiating position you are in. For example, seller who must move quickly due to a job transfer may be amenable to a lower price with a speedy escrow. Other so-called “motivated sellers” include people going through a divorce or who have already purchased another home.

Remember, that the listing price is what the seller would like to receive but is not necessarily what they will settle for. Before making an offer, check the recent sales prices of comparable homes in the neighborhood to see how the seller’s asking price stacks up.

Some experts discourage making deliberate low-ball offers. While such an offer can be presented, it can also sour the sale and discourage the seller from negotiating at all.

Closing costs are usually made up of the following:

  • Attorney’s or escrow fees (yours and your lender’s if applicable)
  • Property taxes (to cover the tax period to date)
  • Interest (paid from date of closing to 30 days before the first monthly payment)
  • Loan origination fee (covers lender’s administrative cost)
  • Recording fees
  • Survey fee
  • First premium of mortgage insurance (if applicable)
  • Title insurance (yours and lender’s)
  • Loan discount points
  • First payment to escrow account for future real estate taxes and insurance
  • Paid receipt for homeowner’s insurance policy (and fire and flood insurance if applicable)
  • Any documentation preparation fees

Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information from your agent, or pay for a professional appraiser to objectively evaluate your home’s worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer.

In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer. Also, make sure that your home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service or online listings provider.

A NRI is a person resident outside India who is either a citizen of India or a person of Indian origin. A NRI is an Indian Citizen who has migrated to another Country. For all official purpose the Government of India considers Indian National away from India for more than 182 days, in a year.

A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:

  • held an Indian Passport at any time, or
  • who or whose father or paternal grand father was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

There are no restrictions on the numbers of Residential/Commercial Properties (other than agricultural land/farm house/plantation) that can be purchased.

No. All Indian citizens are entitled to buy property in India, irrespective of their residential status.

The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR(B)/NRO accounts maintained with banks in India.

No.

Yes, NRIs and PIOs can freely acquire immovable property in India by way of gift either from

  • person resident in India
  • NRI
  • PIO However the property can only be commercial or residential.
    Again NRIs and PIOs may gift residential/ commercial property t
  • person resident in India
  • PIO
  • NRI
  • Foreign national of non Indian origin – with approval of RBI

Currently there is no lock in period.

Yes. Reserve Bank of India has granted general permission for sale of such property to the following categories:-

  • To a NRI
  • To a PIO (If the seller is a PIO, then a prior approval is required from RBI)
  • To a person Resident of India

Yes. Reserve Bank of India has granted general permission for sale of such property to the following categories:-

Yes the sale proceeds can be remitted/repatriated out of India
In the event property acquired out of foreign exchange source i.e. remittance through normal banking channels/ debit to NRE/ FCNR(B) accounts, the amounts to be repatriated should not exceed the amount paid for such property from such source. However, repatriation of sale proceeds purchased out of foreign exchange is restricted to not more that two residential properties, in a block of one year, with a facility of crediting the Capital gain to the NRO account.

Again in the event the property was acquired out of Rupee source, an amount not exceeding USD one million, per financial year, subject to tax compliance, out of balance held in NRO account, may be remitted/repatriated.

Yes, during repatriation Capital Gains (Long Term/Short Term) as applicable will be attracted.

Long Term Capital Gains: For properties held for 36 months or more are termed as
Long Term Capital Assets, and currently attracts a rate of 22.6%
(Fin. Year: 2007-08)

Short Term Capital Gains: For properties held for less than 36 months are termed as
Short Term Capital Assets, and currently attracts a rate of 33.9%

Repatriation of income derived out of letting of immovable property is permissible. NRI/PIO can rent out the property without approval of Reserve Bank. Rent received can be credited to NRO/NRE account or remitted abroad. Powers have been delegated to the Authorised Dealers to allow repatriation of current income like rent, interest, dividend etc. of NRI/PIO who do not maintain an NRO account in based on an appropriate certification by Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/ provided for.

About Us

Squarius Infra Projects (P) ltd, is a fully integrated real estate development company involved in all activities associated with the development of residential, commercial and townships.

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