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WHAT EVERYBODY OUGHT TO KNOW ABOUT CHENNAI’S LOW CONSTRUCTION COST

Chennai’s climate can often be unforgiving for those who aren’t accustomed to its heat and humidity. In fact, it is often said that the city has only three seasons – hot, hotter, and hottest. However, that doesn’t mean that city locals don’t step outdoors till the sun is down.

Chennai‘s long and beautiful coastline is in many ways the city’s greatest gift and also the best counter for its heat. However as soon as the summer season sets in, Chennai’s streets and footpaths become full of fresh fruit stalls selling various summer fruits.

Now, wait a min, what does this have to do with a real estate blog?

One may wonder and if you’re reading this, well you sure are too.  Just continue reading and you will find out for yourself.

Chennai, a rich amalgamation of Architecture

From monumental structures and residences to public buildings that make up the fabric of a city, Chennai’s myriad mix of heritage structures and contemporary buildings have imbibed various architectural styles as it evolved over the decades.

The city is home to several styles such as Portuguese and French, the Indo-Saracenic style of architecture predominant particularly in the public buildings, has defined the essence of the city and has played a significant role in defining the character of Chennai’s neighbourhoods.

Today Chennai has expanded its boundaries, and there are umpteen neighbourhoods and suburbs that boasts of excellence in its architecture which offer a high standard of living and greater luxury than what meets the untrained eye.

Chennai in the past two years has grown in the usage of data centers, following most of the IT sectors moving their infrastructure to cloud. Chennai embodies a perfect amalgamation of a rich cultural heritage along with cloud-based technology hubs that have helped many of its residents during their work from home periods during the lockdown.

The Spirit of Chennai’s Real Estate

A city’s true character, its resilience, its determination to bounce back and the compassion of its residents comes out when all seems lost. While the pandemic has led to economic uncertainties across the world. Chennai has managed to stay afloat in its real estate sector bucking the trend and also witnessed growth.

According to a report by the economic times, Chennai’s realty sector has witnessed steady growth owing to three important factors: a lowered rate of interest, pent-up demand translating to sales velocity and an urge to own a home.

While Ahmedabad has emerged as the most affordable housing market in the country with an affordability ratio of 24%, Pune and Chennai followed with an affordability rating 26% each in 2020, according to Knight Frank India’s Affordability Index 2020. Chennai also has one of the lowest average construction costs where costs are around 14% lower than Mumbai. That should tell you a lot about the need to buy a home in Chennai in the immediate future.

Hottest Innovations in the Real estate sector

A look towards technology will also be a key to the world of construction which may include a drive towards use of updated technology, new equipment and the adaptation of less popular forms of construction such as pre-engineered Buildings/modular construction.

Newer technologies such as virtual construction, virtual reality, IoT sensors, prefabrication, and touch-free controls are expected to take major strides in the near future.

As customers need for high-end products in real estate rises, so does the requirement of specialized work related to construction as also ensuring a smooth and finish, on par with global standards.

Chennai has dealt with this aspect with by on-going programs wherein labor at various construction sites are enrolled in classes and courses which enhance their skill-sets.

Conclusion

Real estate investment in Chennai has always been in good shape as property rates are more realistic and affordable when compared to other metros like Bangalore or Delhi, Chennai has always had high returns on investment.

Offering a wide spectrum of residential options, the city caters to the high-end IT population that fuels the demand for mid and high-end homes. At the same time, it also addresses the needs of the traditional manufacturing class, with limited affordability, which has given rise to affordable homes.

So don’t let the summers scare you away, when Chennai’s real estate is the hottest right now.

[newrysblog]

SEE HOW EASILY YOU CAN LEARN IF IT’S WISE TO PRE-CLOSE A HOME LOAN IN INDIA.

Most of us in India are averse to being debt ridden. A loan is a debt that one would typically want to repay at the earliest (i.e. pay before it’s due).

A home loan is a long obligation and a commitment, considering the fact that its repayment might stretch up to 30 years depending on the type of loan. A home loan helps you own a house along with availing tax benefits; however, it also impacts your present and future finances.

However, a home loan should not be considered in the same light as a personal loan, car loan, etc.

First, what does pre-closing a home loan mean?

In a layman’s term, when a person repays his loan amount before the set tenure, it is termed as prepayment. This payment can be made partially or completely, depending on the funds available.

So, why is this done? This can be done for various reasons such as refinancing, saving on interest, etc. However there are two major reasons for this in India, the borrower may have arranged the required finances, or the borrower wants to opt for refinancing to avail lower interest rates.

For some people, a loan is a very stressful thing. Even if they are comfortable paying the EMIs, they certainly aren’t at peace mentally. If you fall in that category, then you should prepay your home loan.

Are there Types of home loan closures?

Regular closure – In regular closure of the loan, one needs to pay a stipulated amount and number of EMIs to pay off your loan. For this, the individual needs to carry your identity proof, loan account number, and a cheque. These documents will be verified by the officials before closing your loan account.

Bad loan closure – This happens when the borrower is unable to repay the loan amount continuously for a certain period due to bankruptcy or other financial losses. However, the financial institution may also waive off the fee after evaluating one’s present financial condition, or in another case, the bank may also confiscate your collateral and realize the outstanding payment.

Settled loan closure – It is a situation where a borrower is unable to pay off the entire loan amount, and therefore, the financial institution offers the borrower a discount to pay towards the overdue amount of the loan. The remaining amount is then waived off.

Does pre-closing your home loan makes sense!!!

According to the financial express, pre-closing may come with a penalty charge (in case of fixed interest rate home loans) and depending on the institution one may have their home loans from. So, before pre-closing your home loan, one must consider the approximate penalty charges involved in doing so.

One should pre-close your loan only when you have paid a few instalments, not when you are at the end of the payment term. Doing so will not be a good idea as one will be charged additional penalty charges.

But as per the guidelines by the Reserve Bank of India, banks are forbidden from collecting prepayment penalty on floating rates home loan.

So are there any factors before prepaying a housing loan?

While prepaying your home loan will save the interest outgo, it will also exhaust the liquid funds, which could have been otherwise used to fulfil your immediate financial goals or medical emergency requirements.

Financial Requirements:

Therefore, before going for home loan prepayment, one should ensure that he/she has enough liquid funds to take care of your immediate financial goals, medical emergencies or everyday expenses.

Age of the Borrower:

Age is also an important factor to consider before prepaying your home loan. If one is nearing hers/his retirement, it is best to close your home loan as soon as possible.

Stage of the Loan:

The primary benefits of home loan prepayment is that it helps you save on the interest outgo. Now much you will save on home loan interest depends on the stage of your loan repayment.

The interest component in an EMI is the highest during the initial stage of your home loan. Prepaying home loan in the later stage may not give you substantial savings on interest.

Home Loan Tax Benefit:

To encourage more people to invest in the real estate sector in India, the government offers various tax benefits on housing loans. Under Section 80C of the Income Tax Act 1961, one can claim tax exemption of up to Rs. 1.5 lakh per financial year on the repayment of principal amount of home loan.

Under Section 24(b) of the Income Tax Act, you can also get tax exemption of up to Rs. 2 lakh on the interest paid on home loan taken for self-occupied house; in case of a non-self-occupied house, there is no limit. However full prepayment of your home loan will prevent you from enjoying the above tax benefits.

Conclusion:

As Indians, much of us are taught to think that debt is potentially troublesome. While it’s good to reduce debt, high aversion to debt is not always prudent. You can comfortably manage debt if planned smartly.

Always remember, in a haste to prepay your home loan, do not compromise on liquidity. Ensure that you have sufficient funds available for your financial goals and emergency requirements.

[newrysblog]

ALL YOU NEED TO CONSIDER BEFORE BUYING A PROPERTY

Let’s say, you spotted this property ad in the newspaper and were super impressed with it. You immediately went over to take a look at the property, and now, you really want to buy it. The first question that pops in your head is, ‘Can I afford it?’ And the answer to that question is never binary and requires a lot of analysis. For someone who is not so keen on the real estate market and news, all of this can seem extremely new and daunting. That’s why we decided on helping you with a detailed analysis of all you need to consider before buying a property. Read on!

Key Takeaways:

Understanding how much you can afford, and then planning your budget accordingly is crucial for home buying and running your daily life.

An insight into the present real estate market and an understanding of the near future based on the forecast is an important evaluation to make.

While the property to buy and its price are on the table, it’s necessary that you also assess other financial implications and lifestyle changes that are bound to occur and include them in the plan.

1.How to plan your budgeting?

For an investment as huge as buying a house, planning your finances is the biggest worry. But with a clear understanding of your present lifestyle, incurring expenses and savings, you will be able to analyse how much you can afford, and that could be of great help with planning your budget. Here are a few things to keep tabs on:

Debt to Income Ratio:

If you have adequate cash to purchase a house, then there’s no stopping you from buying it if all the papers are clear. If not, which is often the case, don’t worry. We have housing loans. One of the foremost requirements for availing a housing loan is getting the loan request approved. What eases this process is a standard called debt to income (DTI) ratio, which is what the banks, lenders and other financial institutions use to determine one’s repaying capacity. By definition, it is the ratio of the monthly debt payments to the gross monthly income (without tax deductions) of the borrower.

The lower your DTI, the better chances you have for getting your loan approved. This is because your DTI is proof enough that you have a perfect balance between your payout obligations and income. Here’s what your DTI means to your lenders and what you can do about it:

DTI

How lenders see you

What steps you can take

Below 35%Favourable candidateGet your loan approved and buy the house.

36% – 49%A candidate who is often considered. One with a lower DTI is preferable as they can better handle unforeseen expenses that may come their way.

Making a larger down payment

Reducing your DTI by paying off extra for existing loans to reduce overall debts.

Having a high credit score by settling your credit card dues on/before time to increase trustworthiness.

Talk at your workplace to initiate your pay hike earlier to reduce DTI.

Above 49%A risky candidate whose application is often rejected.

Move your purchase a few months down the year by talking to the property owner asking for more time.

Simultaneously, reduce your DTI by negotiating a salary hike at work or by covering present debts with higher EMIs.

Avoid acquiring new loans in this period.

Calculate your DTI every month to check for a drop.

Let us take you through an example to make this simple to understand:

Rajesh is on the lookout for a new house for himself. But presently, he has an ongoing personal and a car loan (in the closing stage) and is paying ₹8,000 and ₹25,000 as EMIs. Before heading to banks and lenders, he wants to understand if he could avail a loan and calculates his debt to income ratio. His total EMI is ₹33,000 (personal loan EMI + car loan EMI), and his gross monthly salary without tax and charges comes up to ₹80,000. Now, Rajesh’s debt to income ratio expressed in percentage comes up to 41.25% (total EMI ÷ monthly salary). Since his DTI falls under the range of 36% to 49%, he has a good chance of getting the loan if his credit card statements are clean, and he has a lump sum in his savings for making a huge down payment.

Down payment:

Let’s talk about the elephant in the room that one cannot ignore while purchasing a house. A down payment is the upfront payment or deposit that you need to make at the early stages of buying, to block a property. By making a large down payment, you waive yourself off a huge amount of money that you may otherwise have to repay your lender as interest.

In India, to ensure that the borrowers are committed to repaying the lenders and financial institutions, the RBI has set 20% of the property’s purchase price as the minimum down payment amount. This is, however, liable to change based on the age of the property you are purchasing – the older the building, the lesser is the loan sanctioned. This will be purely based on the valuation of the property at that point of time.

Let’s take Rajesh’s example to understand how beneficial down payment can be for repaying home loans. He recently decided on buying a house and came across one that fits all his expectations for ₹70,00,000 (exclusive of registration fees). He has approached a bank for a loan and got the approval. The loan processing fee, rate of interest and tenure are 1% (maximum ₹25,000), 6.5% and 15 years, respectively. Since he has been planning to buy a house for years now, he managed to save about 30 lakhs for the same (including his investments) and is ready to shell out ₹20,00,000 as down payment, which is more than the required 20% of the property price, including the processing fee charges (₹14,00,000 + ₹25,000). With his principal loan amount coming down to ₹50,00,000, his EMI comes up to only ₹43,555, which without the down payment would have been ₹60,678.

Now that you know the importance of down payment, here are a few tips on how you could arrange for the same:

Start planning early so that you can save up and use a huge portion of your savings, leaving enough for emergency needs, monthly personal expenses, loan processing fees, EMIs, associated costs like stamp duty and registration fees, etc.

Turn to your investments. Sell off a few well-performing shares or use your FDs, mutual funds and stocks as security to get a low-interest loan that settles your down payment while also allowing your investments to grow continuously.

Getting a soft loan with very minimal or no interest from relatives, friends or your workplace could be of great help.

Consider the Pradhan Mantri Awas Yojna (PMAY) scheme to get low-interest-rate loans for affordable housing. Since your monthly EMIs are lower in this plan, you can pay the down payment using these funds without arranging for additional funds.

Apply for a personal loan with no collateral by showing your credit score, DTI and other criteria. Keep this as the last resort as it is the costliest means.

Research on all the various banks and loan schemes before zeroing down on one to get the lowest interest rates and avail other benefits like low or no processing fees, offers for first-time and woman buyers, etc. This can reduce the pressure of keeping a huge amount in hand for a down payment.

Planning your EMIs:

If you have decided to loan money, you need to plan your EMIs. Reserve a contingency amount along with the down payment for your first few EMIs to ease you off the burden of worrying about repayments when the time comes. You can also try prepayments to bring down the EMIs further down the tenure, if it doesn’t mean a financial crunch. Apart from these, there are a lot of other options too that you can explore. Some banks offer Flexi Hybrid Home Loan plans that allow you to pay just the interest amount as the EMI for the first few months of the loan period. Now, all banks allow you to transfer your home loan balance from their bank to another if you find the interest rate at theirs too high and burdensome.

2.What’s the real estate market looking like?

Once the money matters are sorted, you need to delve deeper into seeing this as a real estate investment. Being able to just cash off your purchase is not a reason enough for you to buy a house. You need to check if it’s a worthy investment, and for that, you need to understand the real estate market scenario.

Of course, real estate is a safe long term investment plan with so much to offer. But this is subject to change based on recessions and disasters like the most recent pandemic. So, if you are expecting a rise in property value with time, you need to take all of this into account, along with your mortgage repayments, maintenance costs, property development, etc.

The effect of the recent pandemic has eased the financial constraints of buying a house to an extent. Some of the buyer and builder trends that will thrive in 2021 include:

Affordable housing has become the best choice for both consumption and investment. Developers are offering a number of amenities at reasonable prices, and the recent festive season has boosted the demand for this segment. Another factor supporting this trend is the government PMAY scheme that helps buyers with annual incomes ranging from below ₹3 lakhs up to ₹18 lakhs by providing loans with interest subsidy ranging from 3% to 6.5%.

With the new norm of work from home and the series of lockdowns in the past year, buyers have shown interest in larger homes, integrated townships and gated communities. This is because of the need for security and easy access to basic facilities during a time of crisis. So, buyers are looking for properties that promise them a holistic living with all the necessary amenities, all at an affordable price.

The pandemic delayed and halted several construction projects, instilling a sense of fear in the investors and buyers, making ready-to-move homes the preferred choice.

Interest rates in banks have been at an all-time low to attract buyers along with several other offers (women, first-time home buyers) and waive offs (reduction in processing fee, etc.).

The government has also extended its support to boost the real estate industry by giving a 6 – 9 month deadline extension for project completion through RERA (Real Estate Regulation Act) 2016, relaxing tax rules for houses costing up to ₹2 crores to encourage sales, extending interest subsidy for the MIGs (Middle Income Groups), reducing stamp duty charges, etc.

With metro construction underway and commercial & industrial development on the rise, the Chennai suburbs like Porur, Perumbakkam, Poonamallee, Padi, Pallavaram, Shollinganallur, etc., are gaining momentum as residential hubs.

The demand for 2BHK houses followed by 3BHK and then 1BHK, and an increasing interest in plot purchase in areas like Thirumazhisai, Avadi, etc. (for investment purposes) are on a high.

With the high demand to supply ratio, the future seems favourable for you, the buyer. However, with construction and raw material costs increasing, you can expect an increase in property prices too. Based on the above-mentioned trends and the economic outlook, take a call on whether now is the time for you to buy your dream house or not. Right now, the market is slowly getting back to good speed after the huge blow last year. When you know that the price is low, and you’re convinced about striking a good deal, then it probably is the right time to make the investment.

3.What are the lifestyle changes you may have to make?

What comes along with all the financial obligations is a transformational lifestyle change. Often overlooked, this is an important point of discussion that has to happen before buying a house.

Right now, Rajesh and his wife may be okay with living in a 2BHK. But in the future, when they have to accommodate their parents or kids, they may need a larger space with more rooms. They might even want to look at properties close to reputed schools and hospitals and have good connectivity to recreational centres, malls, railway stations, and the airport.

Thus, it is important to foresee your future requirements and lifestyle changes along with your present way of living while making a housing choice. Based on this choice you make, you may also have to revise your present lifestyle a little to manage your finances and maintain your DTI. This could be anything from cutting down on regular fancy dinners, having a personal gym trainer, splurging in malls, etc.

So, let’s revisit the same question that we started with – ‘Are you ready to buy a house?’ We can hear your thoughts. Yes, the process involves way more attention to detail than we ideally think but trust us; this early understanding will save you a lot of costly mistakes. Lay the foundations right to enjoy a stress-free house-buying process.

[newrysblog]

FIND OUT HOW 2021 IS TURNING INDIA’S TENANTS INTO HOMEOWNERS.

The post Coronavirus situation has changed the way home-ownership will be viewed in the following months. Consumer behaviour patterns are ever-evolving and Chennai property purchase patterns have altered drastically over the last few months owing to the pandemic lockdown.

A vast majority of individuals are battling concerns about their ability to pay monthly rental during the ongoing lockdown of 2020. Since spending increasing amounts of time at home has become integral to human safety, home-ownership is now viewed differently in a world crippled by the COVID-19 virus.

Millennials are going to play a pivotal role in the housing market in India; undoubtedly, physical assets have rendered the highest sense of security especially during crisis such as COVID-19.

COVID-19 and the Home Owner.

Though the Indian real estate market is recovering from the COVID-19 impact, market experts say that it can be a very positive time for home buyers as they are at an unprecedented advantage to negotiate good deals on ready-to-move-in options.

Experts also state that the COVID-19 lockdown has accelerated technology-led home buying in India, making it possible to inspect properties online as well negotiate deals. There will be a strong revival of consumer demand once the COVID-19 issue has been resolved.

The virus spread has made the “Generation Rent” or “Millennials”, who have primarily had a no-strings-attached approach towards asset ownership, rethink their strategy as well.

Operation Bounce Back

The residential real estate sector has a real opportunity to bounce back towards normalcy; the virus-induced fears in the human mind have forced society to acknowledge the fact that our homes are our ultimate safe havens.

Larger living spaces, with the option of converting a room into a home office or homes which have business centers as part of the amenities being offered, is something that is also on the minds of potential home buyers now.

This means that potential home buyers can also choose peripheral locations where property prices may be relatively cheaper, and at the same time enjoy the benefit of larger living spaces that fit within their budget. Customers are beginning to understand that investing in affordable homes now is a viable option that is sure to be a financially sound move for the future.

The changing buyer sentiment

While real estate buying have always been and continues to be a family decision in India, most properties are always inspected physically. The recent lockdown has encouraged buyers to online real home purchases.

Many real estate developers are now offering attractive options where one can book online and post completion of the viewing can decide if they would like to continue with the rest of the transaction within a specified period.

People have now realized the importance of home in their lives in the last two-three months. Virtual site visits are also becoming a reality and a large chunk of the property selection and purchase processes are now being digitally. There has been a sudden change where the demands for virtual tours or visits home-buyers now prefer to do virtual tours either to shortlist or to finalize their homes.

In conclusion

Home owners need safe, secure and sanitary housing now more than ever. Inquiries and searches for properties have increased compared to pre-COVID months. Acting quickly and smartly will help future homeowners find better deals for their budget.

[newrysblog]

3 trends Chennai real estate market will follow post COVID -19 - Newry Properties

From industrial to corporate office spaces and retail to hotels, COVID-19 has left its mark on real estate property. How long will this pandemic last? What will the ultimate impact be? No-one has a crystal ball. While there is no real politically correct answer as yet, the pandemic has served as an accelerant for real estate trends that were already underway.

We find ourselves in the throes of defining the ‘Next Normal’ for real estate investment.

However, along with its negative impact, the pandemic has opened a new era of selling real estate which was being under-utilized till now. Also, as priorities of people have changed and they are now realizing the importance of owning a home, the demand for real estate is likely to go up in the post COVID-19 world.

Gated communities is the next big thing

Covid-19 has made people realize the importance of a house in a gated community. Gated communities have customized solutions for promoting social distancing and minimizing points of contact while residents go shopping for essentials.

So, if the grocer’s is located inside one’s gates, which is one worry less to deal with. Fortunately, many of the gated communities do come fitted with a grocery store. Something that had seemed unimportant, has now led to most gated communities proving to tackle this crisis with innovate solutions.

Millennial workspaces in a post-coronavirus world

As lockdowns lift and the professional world returns to normalcy, addressing this gap might become a major challenge for traditional office setups, with compulsory social distancing and uncluttering office spaces.

On the other hand, with business challenges and liquidity shortage, investing to expand office spaces would be next to impossible for most organisations. It is here that co-working spaces can rightly come in to fit the need and address the gap with unique offerings that bring about the right blend of safety, sustainability, and cost optimization.

Co-working spaces will enable large organisations with a brilliant option to move beyond high expenses in the long term with easy entry and exit policies. This could help as an ultimate game-changer for both co-working industry and the real estate sector.

Own it, don’t rent it

The pandemic has pushed people indoors and apartment dwellers have felt the pinch. With poor access to green spaces and high density within units, people, especially millennials, are looking at investing in a home of their own.

With the aspect of owning a home becoming a priority, the demand for affordable homes along with    sanitized flats with home office spaces will witness a strategic uptake. Comprehending the importance of owning a home in catastrophic times, the new buyers have started to prioritise the aspect of home ownership.

Our opinion

The post corona pandemic situation has highlighted three major factors in the mind of a potential homebuyer and millennial community – it is important to have your own home, buying a home is a good investment option, and having a well-planned home with facilities around is of prime importance.

The coronavirus tragedy has challenged humanity in multiple ways, but it has also created new opportunities for many businesses. The residential real estate sector has a real opportunity to spring back towards normalcy, because of the way people are perceiving home-ownership going forward because of the virus.

[newrysblog]

Top 10 Banks to Avail Home Loan 2020 | Find Lowest Interest Rates and Processing Fees

Learn latest housing loan interest rates and processing fees. CIBIL score impact on home loans and special interest concession for women home buyers. Newry Properties Chennai.

[newrysblog]

Top 5 Neighbourhoods to live in Chennai | Best Residential Areas to buy an apartment | Newry Properties

Manapakkam: The upcoming IT Hub of Chennai 2021. Kottivakkam: Popular residential address in OMR for the benefit of IT and Manufacturing Industries. Pattabiram: The major Real Estate arm of Chennai.

[newrysblog]

7 Tips in 2021 To Help Buy House In Chennai | Newry Property

Key Takeaways:

Begin your house hunt after considering the type of property, your affordability and your financial constraints.

The process of buying a home involves analysing your needs, fixing a budget, hunting down a property that aligns with your expectations, planning your finances, proposing an offer, closing the purchase with proper documentation and then insuring the property.

1. Consider the choices

Having a clear picture about what you’re looking for and why makes your way forward smooth. It helps you make an informed decision. Start with defining your purpose – whether you want to move in and occupy immediately, rent out the property, leave the space for lease or simply buy for investment. Based on your purpose, choose the type of property you want – apartment, villa, penthouse, gated community, commercial space or a plot. For example, if you’re looking to invest in real estate, a plot is the best and most-opted for, while for rental purposes, nothing beats buying an apartment. Most Chennaites looking to move-in are inclined towards buying properties in the proximity of medical, commercial, educational and other conveniences. This has made integrated townships a famous choice.

2. Fix your budget

On average, a person living in Chennai earns about ₹33,800/month. Though the amount seems good enough, the race between savings and expenditure is neck-to-neck, with all the bills to pay. So when you’re planning to invest in real estate and know what you’re looking for, it’s important to fix your budget. When working out your budget, ensure that you consider your present level of expenses, savings, capacity for loan repayment (if required), future investment plans, and tax implications.

3. Shortlist the preferred localities

The choice of location is what influences the cost of a property the most. Make a list of all the neighbourhoods you like starting from your topmost preferences. Then start ruling out based on your top priorities. Suppose you are buying a property for your personal use. In that case, it is best to consider localities that are well-connected and have proximity to your workplace, commercial centres, medical facilities, schools, etc. Sometimes, you may prefer a prime locality, but the rates

may not fit your budget. In such a case, you can consider properties in its neighbouring localities. This way, you get to enjoy the amenities of the main locality for much lower prices. Some of the best localities in Chennai include Manapakkam, Kottivakkam, Kolathur, Adyar, Annanagar East, Sholinganallur, Chrompet and Velachery among others. Newry has ongoing and upcoming projects in many of the localities mentioned above.

4. Check for resale value and rental returns

It is always good to analyse your Return On Investment (ROI). When it comes to real estate buying, the resale value of your property and the rental returns indicate your ROI. If you’re planning to rent out, buy a property that’s in high demand in commercially developed/developing areas with good accessibility to IT parks, manufacturing hubs, airport/railway stations, etc. for good-to-reasonable rental returns. The resale value is significant when you are buying real estate as an investment. To check for the resale value, consider the scope for commercial and infrastructure development in and around the neighbourhood, the connectivity and the builder’s reputation.

5. Evaluate your loan eligibility

When applying for a home loan, the amount sanctioned depends on your repayment capacity, mortgage value, income, a track record of existing debts and loans (if any), age of the applicant, etc. The prime factors that you must consider to apply for a loan include the bank, interest rates (lower the better) and your current expenses. Banks offer several offers for first-time buyers and women investors. Choosing the top and credible banks for availing your home loan makes this tiring procedure effortless and hassle-free.

6. Be aware of the associated and additional costs

Exclusive of the property’s purchase price, you can expect associated costs that are mandatory – stamp duty and registration fees. Only by paying this can you claim ownership of the property you are buying. Stamp duty is paid to the state government for the documentation of your property purchase, followed by which you will have to pay the registration fee to legally register all the documents. In most Indian states, the stamp duty and registration charges vary between 5-7% and 0.5-3%, based on the property value, respectively. In Chennai, the registration charge is 4% while stamp duty is 7%.

The additional costs incurred are the commission for your real estate agent, lawyer charges for validating the property documents and payment for the surveyor to evaluate the property that you choose to pledge. Though you can save money by not hiring an agent and a lawyer, both the human resources prove to be very useful.

7. Safeguard your new property with an insurance

There is a range of insurance policies with varying levels of protection & safety for your new property. During unforeseeable circumstances that lead to property damage, property insurance safeguards your asset.

With that, we have covered all the different aspects you need to consider before buying a property and the process that needs to be undergone. Whether you are a billionaire or not, property investment is an expensive affair that requires much of your involvement, attention and money. So, be wise and make the right choice!