Why it is the Best Time to Acquire Home Loans for Buying Apartments in Cochin

13 Oct 2018 02:52 PM

A major portion of people in the country works extremely hard and strives hard to save money in hopes of buying or building a home for their family to live. A home is not just a piece of property in India; instead, it is also considered as a source of stability, security, and pride. As a result, several individuals in the country are looking to invest in apartments and flats, rather than residing as tenants in rented houses.

A recent survey conducted by homebuilders and experts in the real estate industry revealed that only 28 percent of people in urban areas are living in rented houses. Interestingly, the same in the year 1961 was estimated to be around 54%. Reports from several reliable sources indicate that the percent of rural Indian who live in rented houses will considerably reduce in the next five years or so.

As you would probably know, the real estate market in several parts of the country is currently booming. This means that it is the best time for home seekers to buy apartments in Cochin. The recent infrastructural developments and rapid improvements in Cochin City and nearby areas has increased the competition between real estate agents, and that has allowed homebuyers to own flats in Kochi at cheap and affordable prices.

The recent economic policies introduced by the government as well as the several benefits available to first time homebuyers have made home ownership accessible to a major portion of India’s population. For instance, the recently launched RERA act was able to bring transparency in the real estate sector and it offered support to the homebuyer’s interests too. Another interesting thing to note is that the introduction of GST was able to eliminate the highly variable and complex taxes in the real estate sector.

The government has also introduced attractive tax benefits to first time homebuyers that you can take advantage of when you are purchasing apartments in Cochin. However, the best and most effective move made by the government to urge more Indians to buy apartments, flats, or an individual home was the recently launched ‘Housing for All’ scheme. This new scheme provided heavily subsidized interest rates on home loans, which in turn allowed homebuyers to buy the home of their dreams. In fact, this scheme was even regarded as the best and most attractive first time homebuyer benefits in the country.

Things to Know About Home Loans

Until a few decades ago, buying apartments and flats was considered as the option available to only the ones who were able to afford a huge sum of money. However, things have dramatically changed over the course of the last few years, as the government has made home loans available to several first time homebuyers for reasonable interest rates. However, first time homebuyers who are planning to apply for a home loan should realize that the loan covers just 80 percent of the property value. This means that you will need to spare the remaining 20 percent from your personal funds. If you have no clear idea on how to apply for a home loan in India, then we have got you covered.

Find a Bank

The first and most important thing you need to do is to find a bank or financial institution in your area that offers home loans to buyers. You should make sure to compare the loan interest rates of different banks in your area, as it will help you to save your valuable money. If you have already found out such a bank, then you should get in touch with the officials to learn more about the home loan policies and agreements. Homebuyers might also have to fill out an application where you will have to disclose your financial and personal details.

Credential Evaluation

Banks are always taking a huge risk when they are loaning out money to new homebuyers because there is a chance that some might not pay the money back. So, most banks usually conduct a background check of customers to assess their repayment capacity and to verify the details. A representative from the bank will arrive to your home to check these details.

Property Inspection

The representative from the bank or financial institution will schedule a visit to the property that you are planning to buy. He/she will thoroughly evaluate the property to determine whether it is a good investment or not. The construction quality, value of the property, and the stage of the construction process are some of the details they check before lending you a home loan. The officials from the bank will provide further instruction on home loans if necessary.