The ‘personal discussion’ checklist for home loan

There is a certain anxiety one experiences before one meets the lender granting the home loan. The meeting popularly referred to as a ‘personal discussion’, can be hassle-free, if dealt with tact.

Getting a home loan entails putting many pieces of paper together for the lending company to help ascertain your demographic and financial situation. After this, the lender will seek to meet you prior to sanctioning the loan. This meeting is colloquially called the ‘personal discussion.’ The personal discussion is of crucial importance. Decisions regarding the sanction as well as the loan amounts are made based on this meeting.
Given the importance of the personal discussion, it is worth understanding the objectives of the meeting so that you are well-prepared.

To accurately assess income: While your income statements for the previous year(s) reveal the income, the lender would like to know if there are any other streams of income that you have that can be used to service the loan. These could include deposits or other instruments maturing, a property that you may be selling in the near future or any other income that is not reflected in your financial statements.

To estimate your worth: The lender will ask you questions regarding your assets and your plans with regards to each one of them. This is to estimate whether you have the ability to repay the loan even if there is some stress with regards to your regular income.

To understand your business: Self-employed customers have incomes that fluctuate. The lender will like to understand your business, its seasonality and your ability to manage any resultant stress. Based on this, he will form a view regarding your ability to consistently repay your monthly installments.

To ascertain your expenses: Each one of us has different lifestyles and different levels of expenses. The lender will understand this and determine the installment that you would be comfortable repaying.

Loans or other obligations: Any loans that you are currently repaying need to be taken cognizance of, so that your consolidated debt burden is reasonable.

Future prospects: Finally, the lender will understand the future prospects of your business or employment situation. This will determine not only the appropriate loan amount but also whether the option of monthly installment can increase in the future.

While there is no need to ‘prepare’ for the personal discussion, it is worth bearing a few points in mind:

Be honest: Like elsewhere in life, it pays to be honest during the personal discussion. Lenders have access to your financial statements and a lot of information is accessible on the internet. Further, it is a common practice to do reference checks with the industry or trade. So any lies or inconsistencies are easily found out and could adversely impact the decision to sanction the loan.

Do not conceal any information: This is an extension of the previous point regarding honesty. Your indebtedness, reputation in the market and virtually every other facet of life are verifiable. It is not worth concealing information for the sake of getting a loan. It is worth noting that lenders exchange information regarding potential bad or fraud borrowers among themselves, thus magnifying the impact.

Keep your documents handy: It will help expedite the sanction if you provide answers to all the questions and provide any supporting documents required.

Confidence: Finally, be confident. You are the customer and have access to many lenders in the market. You just need to talk about your financial situation with clarity and confidence. There is no need to get intimidated by the process.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Why 2bhk and 3 bhk size matter?

Basic facts you should know when buying a home

Let’s admit it, the terms and jargon thrown at us by agents and realtors have us staring at them cluelessly most of the time. While buying a house, terms such as carpet area, built-up area and super built-up area mostly evade our realm of understanding, or at least cause some confusion. In every residential complex, there are these three ways of calculating the area, or the square footage. They may not all sound very different, but there is in fact a big difference between carpet area and built-up area.
Not knowing what each actually means is what could give people a chance to take you for a ride. However, it is not rocket science. Just a little reading and you will be pretty thorough with the terms. Here are some of the basics of real estate you should know.

Carpet area

Carpet area is the area that can actually be covered by a carpet, or the area of the apartment excluding the thickness of inner walls. Carpet area does not include the space covered by common areas such as lobby, lift, stairs, play area, etc. Carpet area is the actual area you get for use in a housing unit. So when you are in search of a house, look at the carpet area and then make your decision, because that is the number, which will give you an idea of the actual space at your disposal.
Focusing on the carpet area will help you understand the usable area in the kitchen, bedroom, living room, etc. Nowadays, many builders don’t even mention carpet area at first, and usually charge on the basis of built-up area or super built-up area. Carpet area is usually around 70% of the built-up area.

Built-up area

Built-up area is the area that comes after adding carpet area and wall area. Now, the wall area does not mean the surface area, but the thickness of the inner walls of a unit. The area constituting the walls is around 20% of the built-up area and totally changes the perspective. The built-up area also consists of other areas mandated by the authorities, such as a dry balcony, flower beds, etc., which add up to 10% of the built-up area.
So when you think about it, the usable area is only 70% of the built-up area. So, if the built-up area says 1200 square feet, it means around 30% (360 square feet) is not really usable, and the actual area you will get to use is only the remaining 840 square feet.

Super built-up area

Super built-up area is a builder’s BFF! It is the area calculated by adding the built-up area and common area that includes the corridor, lift lobby, lift, etc. In some cases, builders even include amenities such as a pool, garden and clubhouse in the common area. A developer/ builder charges you on the basis of the super built-up area which is why it is also known as ‘saleable’ area
Now let us consider this case: the rate is Rs. 2,000 per square foot and the super built-up area is 1,200 square feet, then the base cost will come up to 24 lakh.
When there is more than one apartment on a floor, the super built-up area is calculated in a different manner. Let us assume this is the case.
- The area of Apartment 1 is 1000 square feet
- The area of Apartment 2 is 2000 square feet
- The total common area is 1500 square feet, out of which the share of Apartment 1’s common area is 500 sq. ft. while the share of Apartment 2’s common area is 1,000 sq. ft.
Then the super built-up area of Apartment 1 is 1,500 square feet and of Apartment 2 is 3,000 Square feet. The super built-up area, as seen in this example, is divided in the ratio of the apartments’ built-up areas (in this case 1:2).
Considering the fact that builders and developers usually price their apartments based on super built-up or ‘saleable’ area, being unaware of the fundamental difference between carpet area and built-up area and other terms leaves one running blind. Often the actual usable area is much lower than the super built-up area.
Some builders take into account the carpet area while charging you, but this is only in the rarest of the rare cases. 90% of the developers calculate the base cost on the basis of the super built-up area; the more the amenities the higher the super built-up area.

In a nutshell

Real estate can be complicated, and you cannot change the rules and practices, but you definitely can make an informed decision when you’re aware of the various types of calculations for square footage, a seemingly major but actually simple job. We hope this clears up the confusion that always seems to permeate floor areas and how prices are calculated, making it easier for you to make decisions.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Walk-to-work culture gaining immense momentum in Thane

Everybody wants their home to be close to their work place; however, is it feasible to have one, especially in a metropolitan city like Mumbai? Thane, today, is very strongly promoting the walk-to-work culture. Residents here tend to allocate high importance to the location of homes that are within a reasonable commuting distance from their workplaces. In such a scenario, a home close to the Central Business District (CBD) or Secondary Business District (SBD) is a premium offering in the residential real estate segment.
Siddharth Bhatia, marketing head, The Wadhwa Group, says, "The potential growth of Thane as one of the new CBDs of the city, has witnessed a major rise in the preferred residential location by people. In the last two decades, Thane has transformed rapidly as a developing location. The demographic aspect of the metropolitan is such that commuting from one part of the city to another is a task and hence, people prefer settling for a property that is closer to their area of work."

Experts believe that the increased connectivity of Thane with Mumbai's suburbs and the national highways has paved the way for many corporates and factories to have their foothold in this area. Emerging micro-markets in Thane like Majiwada, Ghodbunder Road, Pokhran Road and Kolshet Road along with the presence of prominent developers and their quality offerings, have led Thane to house both, residential and commercial spaces. "Accessibility to international schools, hospitals, entertainment facilities and green living, has contributed to the rise of the population in the nearby areas and the expansion of Thane city. Integrated townships and high-rise buildings, along with public service facilities, have promoted the government to establish a business centre around Thane, thereby enabling people to have an adequate work-life balance," explains Anupam Verma, vice-president operations, Rustomjee Urbania.

Thane and its walk-to-work culture

Thane has seen a gigantic increase in residential real estate because of its close proximity to prime locations and commercial hubs. "With the infamous traffic grimaces, walk-to-work is the much-needed change that will make a significant transformation for the betterment of Thane by facilitating people to dedicate more quality hours at work rather than spending time on travelling," opines Rushank Shah, director, sales, Hubtown Ltd. According to experts, there exist certain key aspects that lead to an appropriate work-life balance in Thane, such as:

Connectivity: Connectivity of Thane with Mumbai's suburbs and its out skirts is fetching a great amount of at traction for the residential and commercial realty space;

Accessibility: Accessibility to international schools, corporate entities, hospitals and transportation, has enabled the consumers to avail a better lifestyle

Entertainment: Availability of the malls, amusement parks and other entertainment zones in Thane has added a great quotient to the walk-to work culture.

Healthy living in thane

Niranjan Hiranandani CMDHiranandani Group points out, "Healthy living is something that Thane promotes with its real estate offerings. There are two aspects we need to consider here. First, the city itself is clean and green; it is blessed with verdant greenery and water bodies. The Sanjay Gandhi National Park's eastern side overlooks the city and this adds to the green perspective. Gardens within the city adds to the 'green' quotient; as do the lakes surrounded by lush, tree lined avenues. Secondly, the integrated townships, which are coming up in Thane have added to the 'clean and green' aspect in a major way. In fact, these townships promote the 'walk culture', with options which encourage residents to walk to the green spaces, the club house or sports facilities. The townships have been created in a manner that encourages residents to think 'green'."

Experts claim that Thane is one such locality that fulfils the most lucrative need by providing a classy living without compromising on the breathing zones of the city. Widened roads and a number of green patches dotting the locality all around add to the spacious charm.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai – 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Top Interior Décor Disasters to avoid

Styling your home can be time and money consuming so make sure you do it right. Here is the list of the major interior décor faults to avoid.
Decorating our homes can be a daunting task for most. While the market is filled with several options in myriad styles, not many of us are equipped with the aesthetic sense to do a good job with our interior decor on our own. Consulting an interior designer or decorator is the best way to ensure that your home is a welcoming space for guests and family while still reflecting your personality. For those who still want to take the task into their own hands here are the suggestions some basic things to look out for so that we may avoid major interior decor disasters.

Excessive matching

We emphasises the importance of maintaining a balance in your decor. Just because you like a particular colour does not mean you should decorate the whole house in that colour. Decking up the whole house with a single colour or matching furniture set would make the house look extremely garish. Try using contrasting shades or accents to break the monotony. Your favourite pattern will stand out more if used in small doses.

Clutter

So you love picking up souveniers from your travels or have a huge collection of knick knacks that you want to display in your home? Make sure that you do not over do the showing off. Just because you have a ton of family heirlooms does not mean you need to keep them all over the house. Remember that it’s your home, not an antique store. We suggest that ideally we should only use half of our most loved display elements. Choose the items that work well with your decor theme and have the most sentimental value.

Poor lighting

Lighting has the power to change the whole mood of a room. The ubiquitous fluorescent tube lights are great for reading or cleaning but if you plan to entertain guests in your home, warm white light as of LEDs would be a better option. Having multiple bright overhead lights is a major décor disaster to be avoided. Try using a balanced mix of floor lamps, overhead lights, reading lamps and accent lighting in order to create focal points in your decor. Placement and the type of lights used is an important decision which, if ignored, can spoil even the best decor.

Excessive use of plastic

Indian homes are very commonly filled with plastic products ranging from artificial flowers to plastic furniture. Using plastic in your interior decor must be done very carefully as it tends to lend a cheap look to your home. Unless you want a retro look try to avoid excessive use of plastic in your home decor.

Mismatched furniture and furnishings

Just as going all matching-matching can spell interior décor disaster, similarly mismatched furniture can also ruin the whole look of your house. Choose a theme and buy furniture and furnishings that complement the theme. People often replace old furniture pieces without much thought to how the new ones go with the existing décor. The least you can do is to ensure that your wooden furniture pieces have similar look and colour. Unless you have a strong artistic sense, try not to mix and match several styles as your home might end up becoming an example for interior décor disaster. Another common décor blunder that most of us are guilty of is ignoring the clocks in our home. An unattractive clock amongst beautifully done interiors can become a terrible eye-sore.
Remember style is always a subjective issue. People will always differ in their opinion about what’s trendy and what’s not. But knowing the most basic do's and don’ts of interior decor will help save you from major interior decor disasters.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai - 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Invest in property to save capital gains tax

When a property is sold, the gains are liable to tax. Investing the gains in another property within the stipulated time exempts you from this tax. In case you sold a property, you are liable to pay capital gains tax. Any gain or loss arising on transfer of a property is subject to tax provisions under the head 'Capital Gains'. According to the Income Tax Act, a 'capital asset' means property of any kind, which is held by an individual, whether connected with his business profession or not. Any property flat, house, building, site, farm house, commercial property etc is subject to capital gains on its sale transfer.

Gains from sale transfer subject to tax

It is not only the sale of a property that triggers capital gains. Even certain specified kinds of transfers are deemed as sale and any gain thereon is subject to capital gains tax. Transfer of property means an act by which one person conveys property to another. The income arising on transfer of a capital asset is subject to capital gains tax if there is a transfer of a capital asset during the previous year. A transfer is deemed to have taken place on the date on which possession has been given of the property. If payment is received but the transfer has not been effected it will not be treated as a sale transaction. Under the income tax law, capital assets may be of two types: Long-term capital asset, Short-term capital asset. In case a property has been held for more than 36 months, the capital gain arising there on is treated as long-term capital gains. In case the property is transferred or sold after it was held for less than 36 months, the income will be treated as short-term capital gains.
The period of holding of a capital asset determines its taxability whether it is a long-term capital asset or short-term capital asset, and accordingly, whether you have incurred a long-term or short term capital gain loss.

Arriving at capital gains

The exact amount of capital gains is arrived at by applying the Cost Inflation Index (CII).This index is published by the Income Tax Department. The present worth of a property is arrived at by applying the CII to the cost of the property as well as any improvements made to it. This is deducted from the sale amount received by the transferor from the transferee to arrive at the capital gains.

Avenues for exemption

Some tax planning can save tax under Section 54EC in respect of long-term capital gains. You can invest the gains in a residential property or in capital gains bonds. It needs to be ensured that the conditions prescribed under the Section are strictly complied with, or else the amount claimed as exempt can be made subject to tax.
Under Section 54 of the Income Tax Act, in order to avoid paying capital gains tax, you should have bought a residential property within a period of one year before or should do so two years after the date on which the transfer took place. You can also construct a residential property within a period of three years after the date of transfer. In these cases, if the amount of the capital gains is equal to or less than the cost of the new property, the capital gains will not be charged to tax at all.
In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new property, the cost will be reduced by the amount of the capital gains.

Capital gains account

The amount of capital gains which is not appropriated towards the purchase of a new property, before the date of furnishing the income tax returns can be deposited in a 'Capital Gains Account Scheme' with a specified bank. The amount should be deposited before the due date for filing the income tax returns.
The amount used for the purpose of purchase or construction of a new property together with the amount deposited in the account will be deemed to be the cost of the new property. In case the amount deposited in the account is not used wholly or partly for the purchase or construction of a new property within the specified period, the amount not used will be charged to tax as income of the previous year in which the period of three years from the date of the transfer of the original property expires.

Long-term bonds

Under Section 54EC, you can also invest the capital gains within six months of transfer in long-term bonds of the National Highways Authority of India and Rural Electrification Corporation of India Ltd. Investments in these during one financial year cannot be more than Rs 50 lakhs.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai - 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

8 Factors to consider when finalising your neighbourhood

Assessing the suitability of a property’s neighbourhood is crucial from a homebuyer’s perspective. It is not just important to look for a home but a neighbourhood that has all the necessary facilities.
Buying a home involves a thorough research about the property you plan to purchase. However. it also involves a careful scrutiny of the surrounding area. The neighbourhood is as important as the property itself, especially if you plan to reside there. Compromising on a key facility in the neighbourhood for the sake of saving a few bucks may prove to be a wrong decision in the long run.
A good neighbourhood is important as it ensures a peaceful and congenial life for residents of the area. Value appreciation of a property in the long run also depends on the neighbourhood.
There are many factors that can help a homebuyer establish a neighbourhood's suitability. Connectivity to the city centre and distance from one’s workplace are among the most important criteria, Social infrastructure, security and civic amenities such as water and power supply are equally important parameters.
Here are eight factors that work to a locality’s advantage:

Roads

Wide roads and street lights are the first indication of the state of physical infrastructure in a locality. These ensure a hassle-free travel and convenient entry/exit from the area. Bad roads will discourage a customer from buying a property in such a location.

Distance from workplace

Time needed to reach the place of work from the property is now a key concern for homebuyers. Capitalising on this factor, many developers are now launching housing projects that boast of a walk-to-work culture. This has become a key advantage in todays scenario. Especially due to massive traffic jams in the city.

Metro connectivity

Accessibility of an area enhances its appeal for property buyers. With the metro network expanding in most of the major cities, homebuyers expect the prospective property to be at a reasonable distance from a metro station.
There, the partition walls between rooms instead of civil walls 6” – 8” thick are dry partitions of 2” – 3” thick. This saves space as well.

Civic amenities

Homebuyers look forward to ample supply of basic amenities such as drinking waterand power supply.

Schools and hospitals

There must be educational institutions, banks and medical facilities in the propertys neighbourhood. Absence of social infrastructure is sure to discourage end-users as well as investors.

Green spaces

Modern homebuyers are health-conscious and aspire for a healthy lifestyle. They - therefore look for green and open spaces in a residential project. The propertys neighbourhood must be environment-friendly and pollution-free. Noise pollution is also possible if the area is in the flying zone of an airport.

Shopping facilities

A neighbourhood that has markets and shopping malls goes a long way to make the area self-sufficient. This is also the reason for the emergence of mixed use projects. which feature residential and commercial properties in the same project.

Safety concerns

A locality that has a safe neighbourhood will be an obvious choice. On the flip side, high crime rate in an area will not encourage a homebuyer. Buyers must talk to local residents in order to get a comprehensive perspective on the area.
In addition to the above factors, development plans and projects in the pipeline are important as these will lead to healthy appreciation in the long run.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai - 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in

Maximising space efficiency

Architect explains how small homes are optimally designed in South East Asian cities.
While one is thinking of décor or design elements, ‘small’ is always beautiful. Hence, the smaller, the better it is. But can you imagine if the ‘smaller the better’ principle is applied to living spaces?
Well, if appropriately handled, this could be the answer to all our forthcoming congestion problems. Its meaning is plain and simple; can we make our living spaces small but efficient? Which in turn makes their purchase cheaper? Lesser the area means lesser the fit-out cost and maintenance thereon.
So what is wrong in this? Well, the answer is almost nothing. This is a well adopted formula in South East Asian cities like Singapore, Bangkok and Hong Kong since many years.
We are gradually moving towards making our spaces smaller or rather more efficient. Having seen various apartments of Hong Kong and Singapore, I have seen how efficiency makes things smaller.

Space savers

The biggest space savers are the deletion of lobby’s and passages which are unused spaces. The main door directly opening into the living or dining area is an avoidable situation but opening the door in reverse of the living side is an easy way out to reduce the lobby area.

Odd corners

While selecting an apartment, the layout must be closely studied. If the rooms are lined one after another in odd shapes, this automatically generates a corridor flanking the rooms which are unused spaces. Odd corners in the bedroom or living room will always remain unused and in turn, be dust gathering spots. If the building plan is rectilinear, this will certainly help in achieving efficiency.

Asian approach

In Hong Kong, bedrooms are taken at say 8’-6” x 10’-0” with 1’-6” ledge projecting out. This not only makes room look larger, but also doubles up as a sitting ledge-cum-display area, which adds to aesthetic value.

Furniture norms

Once the spaces become tiny, it is very important to look at equally lighter furniture and fit outs. The sofa set, instead of solid base, could be having exposed legs making it look lighter. Similarly, flooring in a lighter colour without much inlay and pattern that usually suit large spaces is preferred.
There, the partition walls between rooms instead of civil walls 6” – 8” thick are dry partitions of 2” – 3” thick. This saves space as well.

Lift lobbies

The lift lobby instead of having elevators one after another with dead wall in front can be two lifts opposite each other with a common lobby in between. These are effective space savers and keep areas efficient, lesser for buyer to pay, making it more affordable.

To Know more about Prescon Realtors & Infrastructures Private Limited
Contact Us :
Address  :
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi, Thane (W), Mumbai - 400601.
Telephone : 91-22-25985951–55
Email : prescon@prescon.in