Properties, Homes & more

It’s all in the name of good faith! Wise old men said centuries ago that a person’s happiness rests on the good things he has in his home or place of work. Probably every family in our country has a Ganpati figurine in the house that is a sign of prosperity and good luck. Now-a-days, the trend is to have Feng Shui artifacts. It means wind and water. It is rapidly becoming a standard practice for creating the ideal and balanced environment to live in and work.

Feng Shui specifically comprises of four aspects: building, environment, people, and time. Most “masters” and Feng Shui books only utilise the first two aspects - building & environment - and miss the other two important factors - people & time.

It is an ancient chinese study of the environment that is natural and “built”, and has been practiced for thousands of years. It is a blend of architecture, interior design, Chinese mathematics and common sense. In its most accurate form, Feng Shui analyzes specifically how a building and environment supports the people and how a certain time period affects the house and its occupants.

If properly applied, Feng Shui recommendations can result in improvements in the life of the individuals who occupy the property. There are many places where Feng Shui articles are available. Now even stores like Lifestyle are also stroing Feng Shui figurines like Three Wise Men - its presence is said to ensure wealth, authority, respect, long life and good health; Laughing Buddha - a symbol for prosperity, success and financial gains in the work areas; Dragon and Turtlehead Dragon among others.

The sale of these artifacts is going really strong because they are the best way of ensuring good luck. These collectibles are priced very affordably in the range of Rs. 120 to Rs. 2,000 - according to the size & material used. You can also place Figures and Fountains in porcelain thus enhance the beauty of your living rooms. You can use Wind-chimes, available in ceramic and aluminium. In my next post, I will discuss more about Feng Shui and how one can utilize this philosophy to bring in cheer to one’s life.

Ramakant lives in a 3 BHK flat in a posh Thane apartment. He had purchased the property around 1.5 years ago for Rs 60 lakhs. Today, the cost of the apartment is almost 1.5 times original price. With an (2 times) increase in his pay package, Ramakant is sure he can save some additional money every month. He is contemplating on buying a second house. Is this a wise decision?

Discussion…

Correction phase

In today’s times, the realty sector can be best described as in a correction phase. Ideally, this is the best time to invest in property.

Easy home loans

A few years ago, procuring a home loan was quite difficult with lot of administrative hassles, government hurdles (or red-tape), and high interest rates. People could buy their own homes only towards the end of their careers when they had saved enough (PF) money. Things have changed considerably over these years. If you are a salaried individual of today - employed with a large, reputed firm - and have no history of previous loan defaults, getting a home loan is absolutely simple for you.

Nowadays, the lender decides on your housing loan eligibility after considering factors like age, income, educational qualification, repayment track record and credit history. Interest rates have dropped down to single digits. You can, in fact, shop around for the bank that offers you the best deal!

Tax benefits

If you have acquired a second home, the principal paid on both the home loans, will be eligible for deduction under Section 80C, subject to the overall cap of Rs 1 lakh. The entire interest repaid can be deducted from your taxable income for the second house. Only one of your properties can be shown as self-occupied. In case of the second property, actual or notional rental income has to reflect as additional income earned. You can deduct 30 percent from this rental income towards maintenance charges. Municipal taxes can also be deducted from rental income.

Rental income

The rental income that a second property can fetch is a major factor that many buyers take into consideration. This rental income can help pay off a large portion of the EMIs. If the property is closer to the heart of the city, the rental income could be higher.

Conclusion

Considering all above parameters, it seems to be a wise decision for Ramakant to buy a second house, provided he can assure himself a decent cash flow after purchasing the second home.

As I have written in my previous post: Beware of “teaser” home loans, I have mentioned that advisers are warning individuals against obtaining a “teaser 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.

Although all prominent banks have introduced teaser home loan rates as they are flush with money due to lack of demand from companies for funds, the Reserve Bank of India (RBI) has taken a stern stand on this “bad practice” and have categorically asked all the participating banks to END TEASER LOANS. As reported by Economic Times, RBI is concerned mainly because borrowers may subsequently find it tough to repay the loans, once interest rates go up after the first couple of months (during which the rates are fixed at a fixed rate). I hope banks are ensuring that borrowers are well aware of the implications of such rates and the appraisal takes into account repaying capacity of the borrowers when the rates become normal. [Refer: RBI sees red over teaser home loan rates]

As per RBI’s directions, SBI will be terminating its teaser loans offers by March End, and HDFC will continue till end of February. However, ICICI Bank has immediately withdrawn all its teaser loan schemes. [Ref: Economic Times]

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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