Blogs

5 ways to transfer property in India

Property transfer in India can occur in a variety of ways such as gifts, mortgages, or sales. The options may vary depending on the circumstances. In India, when you claim property through gift, inheritance, purchase, relinquishment or something else, you need to ensure that all the revenue records and mutations are prepared in your favour as early as possible. 

An overseas citizen will have no trusted representative for property transfer in India. Many factors may lead to illegal land transfer and complications by third parties. Therefore, to avoid these frauds and complications, you must efficiently transfer the property at the earliest in your name according to the legal procedures. 

Modes of property transfer in India 

There are primarily two types of property transfers in India. It depends on the situation and what kind of transfer you would choose to have. 

  • Voluntary transfer 
  • Involuntary transfer 

A voluntary transfer is when the owner willingly transfers his properties. The transfer can be done in various ways like a gift, will, sale, mortgage, exchange, or lease. 

Involuntary alienation or involuntary transfer refers to a situation where the property owner has not explicitly consented to their property transfer. However, they are bound by legal obligations. 

Five ways to transfer property in India 

Here we will discuss the five most common ways to transfer property in India in complete compliance with the law. 

1. Sale deed 

The most famous property transfer method in India is through Sale deeds. A simple example is when you have a property in possession and wish to sell it for a sale value. This is called a Sale deed. Legally, the enrollment of a sale deed or transfer deed is necessary. After the sale deed is enlisted in the Sub-Registrar office, the new owner gets all the ownership rights. 

2. Gift deed property transfer

Gifts can be in the form of houses, shares, money, jewellery, etc. It is something that is received without any second thought, or you may say an asset claimed without giving anything in return. It can be in the form of cash, movable property or immovable property. 

A gift deed is used for gifting properties to any of your family members or friends. If it is an immovable property, you must register the Gift Deed under Section 17 of the Registration Act, 1908. 

Please remember that this type of transfer is irreversible. If you gift any asset like land or house, it will henceforth belong to the respective recipient or beneficiary. You will not be able to ask for any monetary compensation or switch the transfer. It is quite a cost-effective method of transferring ownership

3. Release deed or relinquishment deed 

There may be multiple owners of a single asset. When one co-owner is required to transfer the property’s rights to another, execution of the Release deed or relinquishment deed is necessary. Property transfer through Release deed can take place with or without consideration, i.e. involving no money exchange. 

4. An inheritance or Will deed 

Will deed property transfer in India occurs when the owner dies, and their successor such as their children, wife, or other individuals are legally entitled to it and will receive the Khata or Patta transferred to the next generation. 

A person can gain land through a Will deed or inheritance. When a property owner dies, all his/her properties are transferred to the successor as per the Law of Succession. The testator can make changes in the inheritance or Will deed during their lifetime. Therefore, the Will beneficiaries will inherit the property’s ownership rights after the previous owner dies. 

After their death, the Will Deed or Inheritance will automatically pass to their successor. He or she does not need to enroll the property in their name. However, the individual will need to apply to the concerned local civil authorities with a copy of the will. The death certificate and the Succession certificate must be submitted to get the rightful transfer done in the individual’s name. 

5. Settlement deed or partition deed 

A partition deed is one that the land co-owners execute when a local revenue authority or court order has to be carried out. 

However, in a settlement deed, a third person is the property owner, and it is settled for persons with no past interest related to the property. The share of the heir happens according to the settlor’s wish. 

The settlement deed is a lot different from Will. It is a non-testamentary report that will become operative immediately. On the other hand, Will is a testamentary file which can become active only after the owner expires. The testator can cancel or modify the Will, but a Settlement deed is irreversible. 

Wrapping up 

There are numerous methods of property transfer in India, out of which the Sale Deed and Transfer deed are the most common ones. We understand that the entire experience of decision-making can be quite hectic and mentally draining. However, make sure to look into everything to make an informed decision. Legal counsel is something that we highly recommend in such cases. 

Transferable Development Rights 

When buying land or a house, people will consider whether they are getting all rightful permissions. Factors such as home loans, insurance, legal ownership, and many others are related to your purchase. Over time, the rate of population and construction has increased rapidly. Sometimes the infrastructure pace lags. Moreover, overcrowding is also an issue in urban areas. The government finds it tedious to acquire land. Land acquisition in urban areas has thus become hectic, complicated, and expensive. This is where transferable development rights come into play. They look after the zoning method to protect land plots with conservation value on a permanent basis. 

What are Transferable Development Rights? 

TDR or transferable development rights are issued as certificates that owners can trade in the market for cash or use for themselves.  

According to The Urban and Regional Development Plan Formulation and Implementation Guidelines (URDPFI), (MoHUA, 2014) “TDR is a technique of land development, which separates the development potential of a particular parcel of land from it and allows its use elsewhere within the defined zones of the city. It allows the owner to sell the development rights of a particular parcel of land to another.” 

Property owners and land owners are eligible for transferable development rights. The main goal is to increase developers’ permissible development rights when they purchase the TDR certificates available in the market. 

Developers may increase the area of their permitted floor space index based on the rules prevailing in the particular area. Here, the price mainly depends on the supply and demand concept. Land interests are also increasing day by day due to TDR trading. 

TDR can also include spaces such as natural resources, farmlands, cultural resources, open communities, etc. The government protects such lands and looks over their growth and development. 

TDR is of four different types, namely, Reserved Plots TDR, Heritage TDR, Road TDR, and Slum TDR. Mostly, the rights are transferred from fully developed zones to sparsely or to-be-developed zones. This idea helps in having an equal distribution of population in underdeveloped areas too. 

Important Points Regarding TDR 

  • The TDR certificate has to be issued by the Municipal Corporation. The owner of a property that is reserved for public utilities has to obtain this. 
  • The certificate issued is the same as the reserved rights of the owner while surrendering the property to Municipal Corporation. 
  • The right makes a certain portion of the built-up area surrounding the owner’s rightful area available to him for extra construction. 
  • In metropolitan cities, these rights are transferred from the fully developed zones to the other ones. 
  • This is considered to be an urban tool to avoid over congestion. 
  • This method generally minimizes time and makes the acquisition process easier as the TDR certificate is enough to transfer the rights. 

How do the Transferable Development Rights Benefit People? 

Landowners can get financial compensation from Transferable development rights who choose not to develop some part of their land. They get the option to legally provide their unused land and its developing rights to the municipal zone and in return obtain fair compensation. They may also sell their land and the rights of development will be severed and protected permanently using a conservation easement. Besides this, without TDR, one cannot utilize this piece of spare land for redevelopment or growth that is both beneficial to society and the landowner. 

Some other benefits include: 

  • Landowners are given market-determined financial reimbursement for conserving the land. 
  • Developers are also benefited by making a profit and getting an advantage due to the regulatory flexibility of the unused area through TDR. 
  • The public gets to enjoy the environmental, economic, and health benefits of conserved lands. 

How do Transferable Development Rights Work? 

According to the law, the existing right to build on one-acre land is environmentally sensitive. This means that no one has permission to build in that location but can purchase for use in a different location. This puts a deed restriction on the property, keeping track of appraised value, development rights, and the initial owner so that it can be later sold elsewhere. 

If a developer wishes to use the legal right of the land and accept additional units, they have to buy the rights from the original owner for which the latter gets compensation. Landowners may wait for their money to get raised as with time, the price rises. The development right will be priced only at the time of separation and the seller will presumably earn interest. Besides, banks are also set up at times to maintain a record of the tracks of development rights and collect interest for managing transactions and buy the rights for their next sale later. 

Wrapping Up 

Potential land and homeowners must speak to the realtors to get a clear picture of how the process happens and what benefits they can get from this. It is important to understand the benefits before you lock your land for investment. Through transferable development rights, a fully developed area can make a huge profit on investment. Transferable Development Rights is thus a scheme initiated by the government to make land acquisitions less complicated and smooth. 

Section 80EE: Home Loan Interest Deduction 

The euphoria that comes with purchasing your first house is unique. Especially after enduring the rigorous process of searching for the ideal property that matches your finances and satisfies your requirements, as well as the tedious procedure of applying for a home loan. However, if you are a first-time home buyer, a home loan may prove to be a boon in certain cases. The government provides several tax deductions related to the repayment of home loans under Section 80EE: home loan interest deduction. To be eligible for these deductions, you need to be familiar with the 80EE eligibility requirements and any additional criteria that are linked with claiming them. 

What is Section 80EE?  

First-time home buyers are eligible for a home loan interest deduction under Section 80EE of the Internal Revenue Code. A tax break of up to one lakh rupees is available for those who took out house loans during the financial year 2013-2014.  

The tax relief provided by the deductions that may be claimed under section 80EE was established to help low-income homebuyers. According to Section 80EE, the only people who are qualified to claim tax deductions for the interest they pay on their mortgage are first-time purchasers.  

Features of Section 80EE 

Here is a list that describes the several features of the home loan interest deduction offered under Section 80EE: 

  • Eligibility criteria 

Only individuals may claim the deduction provided by this provision. Due to this, whether you are a HUF, an AOP, a corporation, or any other type of taxpayer, you are not eligible to make a claim for any compensation under this section. 

  • Amount limit 

There is a maximum deduction of Rs 50,000 available. This amount exceeds the limit of Rs. 2 lakh that is specified in Section 24 of the Income Tax Act. 

  • Other conditions 

In order to qualify for this deduction, the taxpayer cannot simultaneously own any other properties at the time that the loan is being processed. If you and your spouse own the property jointly, you may split the tax advantage proportionally between the two of you. 

Requirements for making a home loan interest deduction claim 

The following are the requirements that must be met in order to be eligible to claim a home loan interest deduction under Section 80EE: 

  • Home loans that were approved between April 1st, 2016 and March 31st, 2017.  
  • In order to qualify for home loan interest deduction, the loan amount must be less than or equal to Rs. 35 lakhs. 
  • The total value of the residential property that is being acquired cannot exceed Rs. 50 lakh. 
  • The applicant is purchasing their first home with the funds from the home loan. 
  • When it comes to interest payments made on house loans obtained in the fiscal year 2013-2014, the extent of the exemption is capped at Rs. 50,000. 
  • The benefit is only available to eligible taxpayers for the 2013-2014 fiscal year. 
  • Any unused portion of the exemption limit that remains beyond the end of the 2018–19 fiscal year cannot be reclaimed as a deduction. 
  • The property in consideration may either be used for owner-occupied purposes or for rental income. 
  • A financial institution or a corporation that specialises in home financing needs to provide their approval for the loan. 

Procedure to claim tax benefits under Section 80EE 

The following steps need to be taken in order to calculate how much of a tax deduction may be claimed in accordance with Section 80EE: 

  • Calculate the actual amount of interest that was paid on a mortgage loan during the course of a fiscal year (FY).  
  • Once the entire amount of interest that was paid has been determined, you may submit a claim for a deduction of up to Rs 2,000,000. 
  • According to Section 80EE, taxpayers are permitted to make a claim for an additional sum of up to Rs. 50,000. 

Overall tax advantage and home loan interest deduction under Sections 80EE and 24? 

It is possible to claim home loan interest deduction under sections 80EE and 24, with a maximum cumulative cap of up to Rs 2,50,000. These breaks may be claimed jointly. Also, in order to make use of the tax benefits provided by both of these sections, you are first required to make use of the limit provided by section 24, and then you are required to make use of the tax benefits additionally provided by section 80EE.  

Under Section 80EEA, first-time home buyers investing in affordable homes in India enjoy additional income tax deductions on home loan interest payments. However, the benefits of Section 80EEA are applicable only if they buy an affordable property with the help of home loans. Section 80EEA of the Income Tax Act enables home buyers to make up to Rs 1.50 lakh of their income in a year tax-free. The applicability of Section 80EEA is valid on home loans taken between April 1, 2019, and March 31, 2022. 

Conclusion  

It should come as no surprise that the provisions of Section 80EE might make it possible to realise significant yearly cost reductions. If you are presently making payments on a house loan that is still outstanding, make sure to take advantage of the deductions that are available to you under this section in order to get the much-needed relief from your tax obligations.  

HomeCapital is here to help you if you’re seeking assistance with the down payment on a home purchase. We are the pioneers of India’s very first initiative to help with the down payment on a home loan. Customers who take advantage of our assistance programme are eligible to get an interest-free loan for the down payment amount for up to fifty per cent of their dream house. 

What is Loan Prepayment, and How Does it Work? 

There are a lot of people who are looking for various strategies to either cut down on their debt or consolidate it. One of the very well-liked strategies among borrowers is to return the loan, either in part or in whole, before the end of the loan’s lifespan. In addition to reducing your debt, consolidating it may save you substantial money in interest payments. The ability to make prepayments is currently offered by a number of institutions, which makes this possibility more widespread. Let’s look at what exactly ‘loan prepayment’ is and how it works. 

What is Loan Prepayment? 

To make a one-time, large payment toward the principal balance of a loan prior to the conclusion of the loan’s term is known as loan prepayment. Because a longer loan duration results in an increase in the total amount of interest paid, making a prepayment may be an efficient approach to lower your interest payments and, as a result, your overall debt load. 

A shorter loan term or a lower EMI payment are two common outcomes of early loan repayment. Either way, you’ll save a lot of cash on your monthly loan payments owing to this strategy. However, before choosing to prepay your loan, you need to be aware of the prepayment fees you’ll be required to pay to determine whether this choice is feasible.  

Prepayment considerations when taking out a loan 

Even though it is common knowledge that paying off a loan early may result in significant savings, there are still a few things that every borrower needs to be aware of. 

  • Prepayment lock-in duration 

During the lock-in duration, which may range from one to three years and is imposed by the majority of banks, you are not permitted to prepay the loans. According to RBI standards, there are no lock-ins on floating-rate loans. 

  • Prepayment penalty 

If you pay off your loan early, you may be subject to a penalty. Do the math to see whether the fine will outweigh the interest savings. 

  • The interest rate of the loan 

Most banks use the declining balance approach to figure out the loan’s interest. Thus, interest accrual is greater in the beginning and diminishes in proportion to the length of the loan. Using a prepayment calculator or an excel sheet, you can figure out exactly how much interest you’ll save if you stick to your prepayment schedule. 

Benefits of loan prepayment  

It may be in your best interest to prepay your loan, since doing so might bring you a number of perks, including the following: 

  • You’ll save a lot of money on interest 

In the event that you choose to make a complete prepayment of the whole loan amount, you will often be able to cut down significantly on the amount of interest that you are required to pay. 

Consider a 20-year, Rs. 50 lakh loan with a 9 percent annual interest rate and 240 monthly instalments. This works out to a monthly payment of Rs. 44,986. Let’s say you decide to make a prepayment of Rs. 50,000 just before the first instalment. Consequently, the remaining term of the loan will be about six months shorter. Over the course of the payback term, this implies that you may save nearly Rs. 2.4 lakh, which is almost five times the amount of principal returned. 

  • Improves credit score 

A flawless credit report together with a clean record of loan payback is more desired, and lenders also like to provide loans to individuals who have credit histories like these. It is regarded as beneficial and will assist to boost your credit score. An increase in your credit score makes it easier to finalise your next loan request and also gives you more leverage to negotiate more favourable conditions with the lender. 

  • Reduced financial stress 

Being debt-free comes with its own set of benefits. Your life will become less stressful, and you will be able to achieve financial independence sooner. Since the likelihood of a financial collapse will be reduced, and you will have more money available for spending. 

  • Tax deduction under Section 80C 

It is also possible to make a claim for a tax deduction related to the loan prepayment under the provisions of the Income Tax Act’s Section 80C. This benefit is provided for any and all principal that is repaid during a given calendar year, along with any prepayments that may be made. 

Prepayment with various loans 

Borrowers who have various loans might utilise the prepayment option to combine their debt and make their payments more manageable. Most notably, a prepayment loan may be used to shift from loans with high-interest rates, such as private loans, to loans with lower interest rates, such as housing loans, mortgage loans, and other similar possibilities. 

How does a prepayment calculator work? 

You may assess whether or not to select the prepayment option on your loan with the help of a prepayment calculator, which is a tool that can be accessed online. When you try to prepay your loan, the majority of calculators found online will assist you in determining four important aspects of the loan: 

  • Payable EMI sum 
  • Modified EMI sum 
  • Revised loan duration 
  • Amount/percentage of EMI savings 

You will then be able to calculate how much money you would be able to save as well as the new amount of your EMI payments. Calculating otherwise may be difficult and time-consuming; however, using an online calculator is quite straightforward and simple. All that is required of you is to input the following information on the loan: 

  • Pending loan amount  
  • Loan duration  
  • Interest rate  
  • Prepayment amount  

After entering the pertinent information, you will be able to determine the total amount of money you would save by opting for the loan prepayment route. 

Conclusion 

It’s possible that prepaying your loan early isn’t always the smart move. If you’re thinking of prepaying your loan, you should only do so if the long-term advantages outweigh the penalty that will need to be paid. It’s possible that you may save a significant amount of money on interest if you carefully plan out your prepayment. 

Thinking about buying a home? 

Is your brain now chanting prepayment on a loop? Put your brain’s chant on hold. You can get to it after you select your dream home and have the down payment handy. HomeCapital makes it easier for you to purchase your first home by covering up to fifty percent of the amount of the down payment. Get your eligibility and an in-principle sanction letter from HomeCapital in just one minute and begin the process toward becoming a homeowner today. 

What is the title deed of property? All you need to know. 

The real estate industry uses a variety of terminology and phrases, some of which might be a little complex to understand. You must have a solid understanding of all of the concepts that pertain to ownership rights in order to make the whole process of purchasing and selling a property simple and trouble-free. The title deed is one of the most popular terms that consumers really need to be familiar with. 

In India, title deeds represent a person’s legal claim to possession of the real estate. We are going to dig thoroughly into this concept to help you understand all things about title deeds. 

What is the title deed?  

A title deed is defined as a document that states and confirms a person’s legal right to possess property or a building. To put it another way, a title deed is a document that is used to transfer ownership of a piece of property from one individual to another. 

When you acquire a piece of real estate, you automatically become the legally recognised owner of the asset. This is accomplished via a formal procedure called property registration. The so-called “title” of the property will be changed to your name as a result of this procedure. 

Title deed registration 

The title deeds for commercial properties may be filed by the owners of such assets, such as business firms, administrators, or trustees. Due to this, they are able to verify that they are registered correctly in the event that they need to seek funding. Deed polls are used by certain business enterprises in the event that they need to raise capital to ascertain that their assets are appropriately registered in their names. 

For the purpose of registering property and acquiring the expertise necessary to locate title deeds, the buyer is required to present all prior paperwork pertaining to the property that was used to compile a sale deed. For a more accurate description, you might say that the original owner and all future transfers of ownership must be documented in some way. 

What is included in it? 

Now that we have established the importance of a title deed, let’s see what all must be included in it: 

  • A concise summary of the property, including its dimensions, borders, and location. 
  • Identity of the person or individuals with legal ownership of the property, including name and identification number. 
  • The time and date of the property’s most recent transfer. 
  • If purchased from another individual, the price at which this was done. 
  • Any obstacles that would prevent the property from being sold, such as an outstanding mortgage. 
  • Any conditions that must be met before the acquisition of the property. For instance, the title deed ought to specify whether or not the real estate in question has a complete freehold title. 
  • An official seal from the Deeds Registry Office indicates that the deed was registered in favour of the proprietor and the date. 

Various types of title deed   

  1. Warranty deeds 

Warranty deeds are the essential documentation for businesses to have in order to shield themselves from legal responsibility. Additionally, these are significant papers that need to be drafted, reviewed, and signed by their legal team. There are various reasons to use a warranty deed: 

  • To hand over all property rights associated with a property to the purchaser. 
  • To make available to the purchaser a variety of guarantees, including a warranty protecting them against any flaws in the product or the service. 
  • In the context of legally binding contracts, to safeguard the legal rights of one of the parties. 
  1. Quitclaims 

Quitclaims are among the most significant legal papers that may be filed. In this legally binding document, you establish your possession of the property and renounce your obligations as a renter. This document provides a property description, the landlord’s contact details, and other important updates. 

  1. Gifts 

The title deed gives the owner the right to dwell, utilise, and even sell a particular piece of property. During special occasions such as birthdays, graduations, marriages, anniversaries, and other commemorations, title deeds may be presented to the recipient as a gift.  

  1. Pledges 

The act of transferring ownership of one’s property to another person is known as a pledge. The language being used may have an impact on the specific form of the title deed that is employed. A trust deed is the most frequent kind of pledge that people make.  

  1. Chattel mortgages 

Chattel mortgages are granted to those who don’t qualify for a normal loan since their credit rating is too low or they don’t earn enough money. Instalment loans, like this one, allow borrowers to pay back their debts in regular instalments. 

Title deed vs sales deed  

Despite the fact that both a title deed and a sale deed contribute to the establishment of the other, the most significant distinction between the two is that a title deed is a notion, but a sale deed is always in a documented form.  

As soon as the sale deed is registered, it transforms into a title deed and serves as evidence that you are now the legal owner of a certain piece of property. The sale deed fulfils a number of other functions in addition to just providing a declaration of the property titles. 

For instance, a sale deed will also detail who currently has the title to the property in consideration. In the event that the property has been transferred numerous times over the years, the sales deed of the property would include all of the relevant information. 

Legally speaking, these two may be categorised as an agreement and a statement, respectively. To ensure that all the parameters and circumstances agreed upon by both parties are clearly stated, a sale deed is required to be signed by both parties. According to the Registration Act of 1908, sub-office registrars must record this legal document as an agreement. 

A title deed is not subject to these restrictions in any way. Despite the fact that it is communicated through a sale deed, the title deed is just a legally valid declaration that exclusively concerns the legitimate owner of a certain piece of land. 

Conclusion  

There are a variety of factors that go into establishing who legally owns a piece of property, regardless of whether that item is movable or immovable. When a seller transfers ownership of a property to a prospective buyer, it is essential for both parties to have a legally enforceable agreement in place, such as a title deed. 

The process of obtaining a loan for a down payment has been simplified for you by HomeCapital. The programme provides first-time homebuyers with up to fifty percent of the value of the down payment in the form of an interest-free loan, and the whole application process may be completed online. 

Eco-Friendly Amenities Developers are Currently Offering

Green and eco-friendly real estate development is no longer a passing fad or nebulous trend, but rather a need, as more and more people are choosing sustainable ways of living. Additionally, buyers have gained a deeper appreciation for the need to sustain a healthy ecology — a cumulative result of the pandemic, forest fires, melting glaciers, food shortage, and more. As a result of this increased awareness, a large number of prospective home buyers are searching for properties that comply with green and ecological principles of construction. In fact, authorities at all levels of government have issued mandates requiring developers to include minimal green infrastructure and amenities in all new developments. In addition to the involvement of the government, developers of all stripes are becoming more environmentally sensitive, and as a result, a growing number of sustainable features and amenities are being included in new and existing projects.  

The following are examples of major amenities that are provided by developers in today’s market: 

Simple accessibility to gardens or green areas 

The need for a verdant garden has grown in tandem with the need for health clubs, community centres, sports facilities, etc., among homebuyers. Apartments that are able to put residents a little closer to nature are becoming more popular among people. Nowadays, developers place a premium on making garden spaces easily accessible to successfully contribute to the creation of a greener and more sustainable lifestyle and to enhance the quality of the air that inhabitants breathe. 

Windows that reduce UV radiation and sound transmission amenities

When you live in an urban area that is continuously bustling, the only constant you can count on is the presence of noise from the traffic. One of the most apparent advantages that windows provide is a decrease in sound, which is particularly useful for construction projects that are located near major thoroughfares, such as city centres and airports. 

The installation of soundproof windows results in a significant drop in the overall decibel level, making the space seem much calmer and at ease. In addition, these windows provide an additional layer of defence against dangerous ultraviolet rays and shield you from the glare of the sun, both of which contribute to the potential reduction in the amount of money spent on the consumption of power. 

Water management amenities

Today’s water-conscious citizens are demanding that designers and developers use measures to prevent any water from being wasted. Installing low-flow fixtures such as faucets, sprinkler systems, and flushes has become a priority for developers because of the 30% water savings they may provide in residential settings. 

The responsible use of water is among the cornerstones of environmentally friendly architecture. Developers are continuing to place a strong emphasis on making certain that components and systems are utilised in constructions and landscapes that contribute to reduced water use. 

Solar panel system 

Developers continue to use solar energy systems since it is one of the cleanest kinds of energy, and hence one of the valuable amenities for all property types. Having a solar energy system established may reduce utility bills, which can result in lower operational expenditures. In addition, the solar energy that is produced assists in powering equipment located in public spaces, such as lighting, escalators, and pumping stations, to mention a few. 

Conclusion  

Over time, the real estate industry has grown to recognise the value of establishing a strong eco-friendly planning process that incorporates the use of eco-friendly technologies. Through consistent investments in research and development and the commitment to sustainable development planning, developers have begun to concentrate their efforts on the use of eco-friendly amenities and techniques that aid in raising the standard of living, keeping costs down, and focusing on having a minimal environmental impact for a balanced life. 

Are you thinking about purchasing an eco-friendly house? HomeCapital, India’s first home down payment assistance program can help you in this regard. You will be able to purchase an eco-friendly home with the assistance of our programme which provides interest-free down payments. 

Independent house vs apartment: Which one is better? 

Everyone unwinds and enjoys quality time with their loved ones and close companions at home, making it the ideal location for social gatherings. Hence, before purchasing a home, it is essential to make sure that the location is suitable for your requirements and satisfies your objectives. Determine how close it is to major financial centres and educational institutions, and, most significantly, how much you can afford to spend. Buying a home is a major financial commitment that should be carefully considered. Due to this, the very first issue that comes up throughout the process of purchasing is deciding between an independent house and an apartment. You must consider all the benefits and drawbacks of each alternative before making your decision. Learn more about independent house versus apartments in the sections below. 

What exactly is an apartment? 

The definition of an apartment is simply a living area located inside a building. They are planned to provide a home for a large population as well as contemporary conveniences. They additionally come with a robust security system that keeps a watch on the property throughout the clock. The administration and restoration of a building are often the responsibility of the proprietor or management of the facility. 

What is an independent house?  

A home that is completely independent is built on a plot of land. The person who owns the property has the right to build a dwelling of their own and according to their own personal preferences. This property has the potential to be either self-occupied. It is also possible for it to be partly inhabited while simultaneously being leased out. The care for the property and its upkeep is within the purview of the owner. 

Independent house vs apartment 

There has been a recent uptick in the market for apartments in every major city, but that doesn’t mean there aren’t people who would prefer to buy an independent house. The cost of land is increasing at a pace that is higher than the average rate of inflation for apartments constructed over the same time period. As a result, they provide a higher return on investment as well. 

Apartments, on the other hand, provide a number of advantages that independent houses and plots of land do not. Here is a rundown of the many ways in which the lifestyles afforded by the various properties differ: 

Upkeep 

Apartments have few upkeep requirements. Most complexes have their own maintenance staff to deal with issues like broken appliances and door locks. It’s a stress-free way of life, with dedicated staff members taking care of things like keeping the garden grounds mowed and restocking the overhead tanks. 

The owner of an independent house, on the other hand, is required to go to the trouble of locating electricians or carpenters and sometimes even take it on themselves to perform the maintenance work. 

Facilities 

Apartments often have a number of enticing facilities, like a swimming pool, a fitness centre, a clubhouse, and a specific play space for children. In comparison to living in a house of one’s own, apartment living offers a greater degree of convenience due to the aforementioned factors. 

The cost repercussions are extremely significant, despite the fact that some of these conveniences may be included in an independent family dwelling. 

Security in independent house

Cameras and guards watch over the doors and windows around the clock. That’s why it makes sense for retirees, people who don’t drive, and couples whose children get home from school before their parents do to move into an apartment together. In fact, living in such close quarters with one’s neighbours is a nice perk of apartment living. In addition to that, fire extinguishers are a standard safety feature in all units. This ensures residents’ peace of mind. These preventative measures are not available in independent dwellings. 

It is possible for the owners of an independent home to incur extra costs by installing surveillance equipment such as CCTV cameras or security systems for the purpose of monitoring the property. 

Finance for independent house

Loans for authenticated apartments might be approved by financial institutions. Most of the time, builders form partnerships with banks in order to simplify the procedure. On the other hand, before giving loans for independent homes, banks do a comprehensive check, which is a procedure that takes a lot of time. When long clearance procedures create delays, prospective buyers often miss out on the home they had their eye on. 

Investment 

After doing some preliminary research on the developer and their previous projects, a buyer who is purchasing their first home may acquire an apartment with complete self-assurance. A first-time buyer has access to everything they desire, including the ability to browse reviews of previously purchased apartments to get an idea of the level of quality offered by the property.  

On the other hand, independent homes have the inherent danger of title disputes, which, depending on the circumstances, may only be addressed in a legal proceeding. 

Social life 

The likelihood of improving social skills is far greater in apartment complexes, despite the fact that independent housing communities can bring in a feeling of the local community. Celebrations of holidays and other events that bring neighbours together, such as parties held in the apartment complex’s clubhouse or garden, may serve as a catalyst for peaceful coexistence among residents. 

Conclusion 

Homeowners today are more concerned with making efficient use of their time and leading lives that are relatively uncomplicated. As a result, many individuals look for apartments in which they can make use of a wide range of services while also enjoying breathtaking views of the city. People who want to spend less time caring for their home and more time enjoying life may consider buying an apartment. Retirees looking for peace and quiet will also find this sort of home to their liking. 

Apartments are a far better investment than single-family homes are, especially when viewed from the standpoint of potential return on investment. You have the option, if you are the owner of the property, to rent or lease it out to renters. Due to the convenient, stress-free living, it provides, busy professionals and households on the rise are likely to prioritise purchasing this kind of home. 

Planning to own an apartment or an independent house? HomeCapital makes it easier for you to purchase your dream apartment by offering you interest-free credit for up to half of your property’s down payment.

Financial benefits of buying jodi flat 

The jodi flat, or trend of purchasing adjacent properties by homebuyers, has recently witnessed a revival in popularity. Jodi flats have proven to be incredibly advantageous for homebuyers since it allows them to save money while also ensuring that they can stay close to their families. Also, this trend is particularly common in pre-construction dwellings, where the buyer has greater leeway in making personalisations to the property.  

But is it really profitable to own two adjacent apartments? Let’s have a look. 

Why do individuals favour jodi flats? 

There are two main reasons why a buyer would want to acquire two smaller flats and integrate them into one larger 3 or 4 BHK: 

  • Two small flats in a prime location may prove to be a good financial investment. For instance, if you purchase jodi flats and then turn around and sell them, you’ll earn a lot more money than you put in. 
  • In spite of your best efforts, you may be unable to upgrade to a larger house, either due to financial considerations or because of your strong preference for your existing location. Buying the flat next door is a simple, beautiful, and no-brainer option in such a situation. 
  • Many people argue that it is more useful to purchase two smaller flats rather than one large apartment with four or five rooms since you acquire extra space that you normally wouldn’t get if you bought just one flat. Therefore, purchasing two 2-BHKs is more advantageous than purchasing one 4-BHK. 

Financial Benefits of Jodi Flats 

  • The process is simple 

The prospective buyer of the property will be required to submit a request for an amendment that grants permission to the municipal government of the area to combine the flats. In spite of the fact that you will be required to pay two distinct stamp duty rates, the total amount will be lesser to what you would spend for a single larger unit. 

  • Profit from reduced taxes 

A major advantage of jodi flats is the tax benefit. However, the extra room and flexibility in design are nice bonuses as well. Investing in numerous flats that are connected together and utilised as one separate residential unit qualifies a taxpayer for investment-linked tax advantages, as stated by the Income-Tax Appellate Tribunal. 

  • Flexibility 

The added financial freedom that comes from renting out the apartment next door while maintaining close supervision of one’s own residence is just one more perk of owning a flat in the same building. 

Other advantages 

  • Upgraded kitchen space 

Since there are now two kitchens in the building (one for each apartment), the additional one may be demolished to provide more space in the living area. The kitchen may be opened up to the living room, creating a space with more storage, a dining table for six, and a massive cooking area. The scope of possible layouts is vast. 

  • More rooms dedicated to the master suite 

If you have purchased a unit with 2 bedrooms, 1 bathroom, and a kitchen, you have the option of expanding the number of bedrooms by merging two of the rooms into a single larger one. For example, the original 4 bedrooms may be converted into two master bedrooms. 

  • Layout reminiscent of a home 

In the event that the jodi apartments are united vertically rather than side by side, you will have the option of installing a conventional staircase. When space is limited, having access to stairs in one’s home is a luxury that not everyone can afford to enjoy in a densely populated area. It creates the impression that the apartment living is a standalone residence. 

  • Consolation and relaxation 

When you make a choice to extend your present flat by connecting it with the flat next door, it eliminates the need of uprooting the whole family. You are able to stay in the neighbourhood that you like and are familiar with. 

Keep these things in mind before buying a jodi flat 

Consider the following details carefully before you rush out to purchase two inexpensive and rather modest flats in order to create a jodi flat: 

  • Is tearing down the walls in order to connect the two units a realistic and workable option? 
  • Since buildings sometimes need double-stacked bathrooms for plumbing maintenance and leak prevention, ensure that your envisioned jodi flat layout follows the necessary guidelines. If the two apartments were renovated on separate dates, there is a greater chance that their fittings and inner workings might be incompatible. 
  • To combine two flats that are next to one another, permission is required, and some states and cities do not permit the practice. Consequently, it is necessary to get mandatory approval from both the local city council and the welfare association of the colony. 

Conclusion  

Tired of starting the weekend with high hopes of finding the ideal apartment? Frustrated that no other society can provide the same comforts as your own? Trying to find the perfect house may not always be productive for a variety of different reasons. If this is the situation, then creating a single house out of jodi flats is the superior and more astute choice. 

So, are you thinking of buying a jodi flat? HomeCapital is the ultimate platform to get you started on the path to buying a jodi flat. Buyers may get interest-free down payment assistance from the HomeCapital programme to get added support with their down payment, possession, stamp duty, and any other property payments owed to developers. 

3D Printed Homes to Revolutionise Affordable Housing 

The construction business has been confronted with difficulties that have never been seen before in recent years. There is a worldwide housing crisis, a rise in labour prices that are being driven up by a lack of trained employees, and the consequences of climate change throughout the globe are becoming more obvious than they ever have been. As a result, the construction industry has made it a point to challenge established practices and test the boundaries of innovation to keep up with the changing times, which has necessitated the adoption of new technologies as part of the ongoing digital revolution. 3D construction printing is one breakthrough that shows great promise. Even though it’s a newer method, it’s been tried and true in a wide variety of buildings, including homes and apartment complexes, and it’s already revolutionising the housing market. This suggests that 3D printed homes have the potential to offer better, more environmentally friendly, affordable and economically feasible properties. 

Are they a sustainable solution?  

The 3D printing process is far more eco-friendly than conventional building methods. Since just the precise quantity of material that is required is used in 3D printing, there is far less waste produced. This procedure may be made even more environmentally friendly by including materials that have been recycled or reclaimed. 

As an added bonus, the speed with which 3D printed homes can be erected means that they cause far less disruption to the surrounding area. In order to construct a home using a 3D printer, one simply needs the machine itself. Perhaps just one or two compact construction trucks would be required to level out the site. This means that 3D printed homes are greener than conventional building methods. 

How are 3D printed homes built? 

Additive manufacturing is another term for 3D printing. The method involves building up a three-dimensional structure from flat sheets of material. Until recently, 3D printing was only capable of producing very tiny plastic items. However, advancements in technology during the last decade have changed that. Modern 3D printers have the capability to extrude several materials, including concrete and metal. 

Using conventional three-dimensional printing techniques and scaling them up, engineers are able to create a house in three dimensions. The printer employs a previously configured floor layout. To create the walls, 3D printing employs a range of specialised concrete combinations. Windows, doorways, drainage, electricity, HVAC, the rooftop, and interior finishes are installed by construction personnel. 

Impact of 3D printed homes on constructors  

3D printed homes eliminate the need to pay more for intricate designs. Designs that, in the past, required a significant amount of time to conceptualise, carry out, and introduce to customers may now be made available to them in a shorter period of time. 

This technique has the potential to drastically decrease the amount of capital that is locked up in building materials and the expenses to recover scrap. 3D printers may have a hefty price tag up front, but they help constructors save a lot of money in the long run by lowering their incremental unit costs. One of 3D printing’s greatest advantages is that it streamlines operations, transforming the construction industry into a network of mini-construction hubs. 

Impact of 3D printed homes on homebuyers  

Due to the minimal cost of construction, the purchaser does not need to fork out an excessive amount of money. Therefore, 3D printed homes enable constructors to build swiftly as per the demand, offering a large window for buyers to fully personalise their homes without having to keep an eye on the time. The technique allows for the use of recyclable materials, it is disaster-resistant, and it creates walls that can sustain themselves. 

The inclusion of thermal insulation in a 3D-printed residence ensures that occupants will enjoy a pleasant environment all year long. This will, in the long run, create a whole ecosystem that delivers accommodation that is more operationally accessible and also more financially affordable. 

Conclusion 

The construction business and the housing market throughout the world will be fundamentally altered by the introduction of 3D printed homes. This technology can offer houses that are gorgeous, robust, and can be constructed in a broad range of architectural details for individuals of all economic strata.  

For this reason, 3D printing’s disruption of the construction sector comes at a time when much-needed innovation is especially welcome. The use of 3D printing in the construction industry will lead to a decrease in the homeless population, and the realisation of the middle class’s desire to own their own house. 

Thinking About Investing in a 3D Printed House? 

Once you have chosen your dream house, visit HomeCapital to apply for our down payment assistance program. HomeCapital makes it easier for you to purchase your dream home by offering you interest-free credit for up to half of the amount of the property’s down payment.   

Understand joint development agreement in real estate 

Real estate is one of the most important sectors that determine the welfare and development of a nation’s economy. A considerable amount of investment, time, effort, and skill is involved in successfully developing real estate. Investment is necessary for acquiring land, obtaining its conversion permission from the concerned authority for the purpose intended, and for many other reasons. Joint development agreements have become a famous model nowadays where the developer and the land owner combine their efforts and resources.  

As per a joint development agreement, the land owner will contribute his land and join to form an arrangement with the developer. The developer will develop and construct a real estate plan according to his budgetary plan. 

Hence, a land owner contributes his land, and the developer bears the development and construction cost. In this article, we will discuss more about joint development agreements in real estate.  

What is a joint development agreement? 

A joint development agreement (JDA) in real estate is an official contract between the landowner and the developer that vividly explains how the construction will take place. 

It has become a common aspect in the real estate world that binds both the landowner and builder in a contract for constructing a new property. The landowner receives some provision in return. 

As the name suggests, this agreement takes place over fixed guidelines and propositions between two parties. 

JDA is the ownership right of the land and the fixed guidelines for the development of the land. Through this agreement, the owner is bound to give the developer his land for development under legal terms and through a fixed contract. 

The development or construction work takes place as per instructions, and ultimately the profit shares are divided. 

What does the landowner receive in it?

The major things that the landowner receives from the developer in a joint development agreement are:  

  • Round sum consideration 
  • Percentage of sales revenue 
  • A part of the percentage of the newly constructed property on the given piece of land 

The above points may vary depending on the terms and conditions of the agreement and what both parties mutually agreed to.  

This is how a Joint Development Agreement sums up the resources of the landowner and the builder together. After a certain portion is allocated to the landowner, the rest of the property is sold off by the builder directly.  

Structure of a joint development agreement 

JDA is a structured formal agreement that consists of many parts based on financial implications. They are as follows: 

  1. Contribution resources 
  1. Costs 
  1. Transfer of the land and execution of the power of attorney 
  1. Marketing Rights 
  1. Handing over the right of land 
  1. Development Rights 
  1. Management of marketing and development responsibilities 
  1. Revenue shares 
  1. Mortgage of land 
  1. Termination of Agreement  

Benefits of a joint development agreement 

JDA is increasingly becoming popular due to its growing significance in the real estate industry. It comes with several benefits. We have listed a few of them below: 

  • Fast and smooth development of the land as working capital is necessary mainly for meeting the construction needs 
  • Suitable consideration for the landowner 
  • A win-win situation for both parties 

Points to be noted concerning joint development agreements 

In the present time, most independent homes and villas are amassing a huge revenue. Therefore, land owners and developers are coming together for new projects. However, before you step into a joint development agreement, you must note some considerations listed below. 

  • A joint development agreement is a transferable title.  

Buyers must remember that the power in real estate and selling the property depends upon the developer. The landowner has fewer rights on the project. They cannot sell the newly constructed building from the developer without obtaining a no-objection certificate from them.  

  • The documents must be registered 

The authenticity and validity of the documents are only proved when they are registered in the sub-registrar office. Registration of the agreement is significant for both the parties and any potential buyer. If you just get the document notarized, you will not be saved from any future consequences. Along with the main document, the supplementary agreement should also be registered. 

  • A home loan is not available until registration 

Without proper registration of the joint development agreements, no home loan is sanctioned by the bank on the property. Of course, one may look out to other financial sources for purchasing property

Wrapping up 

As the real estate market evolves every day, a joint development agreement is becoming more common and handy. it is a beneficial deal for both the owner and the developer as it saves money and eliminates any hassle for both parties. however, it is advisable to properly study the agreement before one enters into such an agreement.