Properties, Homes & more

A rental agreement is for short tenancies, usually for 30 days which automatically continues once this period is over, unless the agreement is terminated. In a rental agreement, the landlord can choose to amend the mentioned terms as long as he provides written notice to the tenant. However , the tenant has the right to occupy the property for a specified period at fixed terms, usually 11 months, in case of a written lease. However, unlike a rental agreement, a lease has to be renewed.

Please find below a list of important points that need to be thought upon, before taking a property on rent:

1. A tenant should know the prevailing rental rates in the chosen location and be aware that only an airtight rental agreement that transparently outlines his rights is acceptable. For example, it should be clearly mentioned who will pay the tax after mutual agreement between the landlord and the tenant. Also, a tenant should be aware that the landlord’s permission is required before initiating any major changes to the property.
2. The tenant should be wary of a clause allowing for automatic rent increases, arbitrary amendments to the existing terms of the agreement by the landlord, and any provision that permits the landlord to enter the property at any time.
3. The agreement or lease should be filled out by the tenant, or in the presence of the tenant.
4. There is no stipulation on the amount of security deposit to be paid by the tenant. It’s a commercial term determined between the two parties. Hence, the time to safeguard one’s safety deposit is before moving in.
   • Security deposit should ideally be paid in cheque to ensure that the same is reflected in their bank statements. Also, legal assistance should be sought to ensure that a proper clause stating that the security deposit would be refunded at repossession by the owner. There should also be a clause in the leave and license agreement of interest penalty on the outstanding security deposit amount in case the amount is not refunded. In such cases, the agreement should clearly highlight if the advance would be adjusted with the first or last few months of the lease. In case of security deposit, the amount and terms for its return should be mentioned.
5. The name of the landlord should be clearly mentioned in the property documents. The property papers, which include the occupation certificate and title deeds, should be in order.
6. The tenant can seek a copy of these papers if needed. If the landlord has carried out an illegal extension within the house, a tenant has to take a written record or have the landlord mention the same in the agreement . There is no such norm that the tenant should possess these documents. However, it’s in the best interest of the landlord and the tenant to have everything in written.
7. Similarly, if the property has any lien such as loan, then the lender should be involved in the transaction between the landlord and the tenant for the transaction.

Valentine’s Day is a day to express your feelings and renew the bond of love you share with your Valentine. To make this Valentine Day memorable for your beloved declare your love to the world by sending a cute and heartfelt Valentine’s Day message to us!! We will carry your message along with your name in this page dedicated to lovers and their messages.

So what are you planning for your Valentine? Some may plan something regular, like gifting flowers (especially, red roses), jewelry, dress, greeting card, etc. But I have something else in my mind for my beloved Valentine. I am not gifting her something unusual. It will be something absolutely out of this world. Something she will never expect and never forget!

Here is the list of my options. I am requesting each one of you to please suggest which option I should go ahead with…

Should I gift her PERSONALIZED COOKIE ARRANGEMENT & FLOWERS?
Should I gift her set of EXCLUSIVE JEWELRY WITH PERSONALIZED TIMELESS MESSAGE?	Should I gift her PERSONALIZED T-SHIRT that carries a message specially created ONLY FOR HER?
Should I gift her a much-desired and most-awaited BEAUTY CARE & BODY UPLIFTMENT SESSION to make her look even more beautiful & seductive?	Should I gift her EXCLUSIVE SET OF SPECIALLY PREPARED LINGERIE?
Or, last but not the least, SEDUCTIVE PERFUME that is specially prepared for her by FRANGRANCE SHOP keeping in mind her personality and tastes?

Guys… Please help me make the correct choice. I want to make this Day very special for my Valentine. I am waiting for your suggestions…

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Suddenly, it’s raining home loans! Banks, which were, until recently, reluctant to open their purse strings to home loan customers, are busy chasing them with teaser rates - where the interest rate is kept lower in the initial few years.

However, advisers warn individuals against obtaining such a loan only because of the lower interest rate, as it could have serious impact on their finances if the interest rates were to shoot up when the floating rate kicks in after the initial years. All prominent banks have introduced teaser home loan rates as they are flush with money due to lack of demand from companies for funds.

Ideally, one should buy a house only because one needs it and can afford it. Lower interest rate shouldn’t be the reason one should be going for a housing loan. ‘Taking a decision on the basis of current interest rate wouldn’t be right and wise, especially if you are going to switch to the floating rate after the initial period. The reason is: the teaser interest rate may be only 8% or max 8.5% in the first year or for the first three years, but after the initial period is over, you would be paying prevailing floating rates, which is not so easy to predict. And it may not be in your favour as well!

A lot of people make (incorrect) assumption about the future rate on the basis of the current benchmark rates. This method of reaching indicative rate only proves to be costly for them in the long run. For example, because of some unforeseen events, if the interest rate hardens suddenly, people might find it difficult to service their home loan, as the EMIs could shoot up beyond their ability to take care of them. So take a very serious look at your cash flow & finances before opting for such a teaser loan.

Continued from Part 1…

There are many important points to be looked into before signing on the dotted line… In this 2-part series, I will cover 9 important points that must be carefully considered.

1. Look deep in your wallet before deciding the property
2. Look closely at your lifestyle and financial capabilities
3. Evaluate market conditions
4. Higher loan amount increase burden of debts

(Please refer Part 1 for discussion on these 4 points)

5. Increase the down payment When you go for home loan, you have to pay around 10% to 15% of the project cost and around 85% to 90% is funded by the bank or financial institution. If you have more than the required amount for ‘down payment’ then pay more, so that your required debt is reduced significantly.
6. Prepayment is the best way to save on interest Always make an effort not to extend a loan beyond its tenure. As and when you have excess cash, try to prepay (huge loan first). For example, you could prepay from your yearly bonuses or salary hikes. Prepaying can lower the tenure and help you save on interest. However, check with your bank from when you can start prepaying, as banks usually do not allow prepayment during the first year of the loan period. Also check if there is a prepayment penalty. The idea is to make sure that the interest saved does not exceed the prepayment fees.
7. It is not a family bank, unlike family doctor It is not essential to opt for the same bank that your brother took his home loan from. It is advised that you should do your own searching in terms of the deals offered by different banks. Moreover, your brother’s offer for the same loan amount and tenure could be (and mostly, would be) different from what is offered to you, as it varies according to the credit profile of the borrower.
8. Processing fee If you have nothing in writing from the bank, it is possible that you might lose the processing fee that you pay to bank in case the loan does not get approved. So, either you get something in writing from the bank or factor in all this money for these kinds of losses.
9. Read the home loan agreement (fine print) carefully Most of us just close our eyes and sign on the dotted line. What we forget to read are the clauses that are in fine print in the loan agreement. You need to understand the significance and impact of these various clauses before you sign the agreement. Important clauses to watch out for are: the Force Majeure clause and Reset Clause on Fixed Rates.

So you have finally decided to buy your own house… With this single decision follows a chain of other decisions, ranging from choosing the property, choosing a home loan offer to deciding the furniture for the new house. However, believe me this is not as simple as it sounds… There are many important points to be looked into before signing on the dotted line… In this 2-part series, I will cover 9 important points that must be carefully considered.

1. Look deep in your wallet before deciding the property Now that you have set your heart on a house that is perfect for you, have you carefully thought of whether your wallet will be able to handle the cost of your dream home? Going for a house that you can’t afford to pay for is like eating more food than you can digest. You end up with indigestion, and in this case the indigestion may cost you dearly!
2. Look closely at your lifestyle and financial capabilities Plan for an unfortunate eventuality like loss of job or illnesses and ensure that your wallet will be able to take the pinch for a few months at least. Pay attention to your other debt liabilities before going in for the home loan.
3. Evaluate market conditions Understand the real estate market and evaluate if the property prices are stable and not likely to fall further. Do your research on home loan interest rates, see if they are likely to decrease or increase in future depending on the existing market conditions, you may not want to lose out on a good deal because you jumped in too early.
4. Higher loan amount increase burden of debts Having high credit card outstanding and a number of other loans not only brings the eligibility for higher loan amount down, it also increases the burden of paying all of these debts off.

Concluded in Part 2.