Pre-Approved Home Loan benefits for Home Buying

When ever we speak to a home buyer for a home loan, the answer is let me finalize the property first and then we will apply for the loan.

In ideal scenario, you should get this home work done as this gives you the added confidence about buying a property well knowing in advance that you are entitled to an X amount as a Home Loan and you will have a Y amount as an EMI to pay every month or year. With a lot of paper work, CIBIL checks etc. you should not be under double pressure when you are buying a property.

A few developers even give a benefit in price if you go with a pre approved sanction letter. Imagine you paying around 11236 for a sanction and you walk away with upto 10 times as a benefit upto Rs.1,12,360 as discount from our New Property Buying – Get it Right – Series offers by select developers.

For further details please feel free to call me on 9820030685 or email


Ascertaining your Under Construction Home Costs

Buying a Under Construction home is one of the most easiest tasks ever. It is simple, choose a location, the project, speak to the developer, agree on the price and yes, you have a deal.

It is very important, that one studies a little more in detail. I am highlighting below a few points, which you must review before you sign the cheque for the New Home or the Investment. Each Developer has a different way of adding Car Parking charge.

1. Ensure that you understand the Carpet and Built Up Area.

2. Rate is quoted on what area.

3. Floor Rise – Yes and from which floor.

4. PLC – A lot of developers in Mumbai have started applying a Preferential Location Charge, which typically means the best views would be expensive, however, in a city like Mumbai, one has to really judge, if his views are being blocked in future, before putting the money down.

5. Infrastructure Charge – Depending on the kind of plot and the infrastructure around needs development, the developers charge an X amount of money PSF.

6. Club House and Health Club Charges – If the project has such amenities, one has to pay for it.

7. Electricity, Gas, Water Meter Charges

8. Society Formation, Corpus Fund and Legal Charges. (All the fees paid by Developers for paper work is indirectly paid by you and you cannot argue or change this.)

9. Maintenance in Advance for 6, 12, 18 or 24 months

10. Property Taxes in Advance

These are the above charges you will have to pay prior to you getting your home, so the Expenses are

> 100% For Purchase

> 5% Stamp Duty

> 1% Vat

> 3.71% Service Tax

> Rs.30000/- Registration and upto Rs.4000/- for Scanning and Agent Fees.

So in short, your new home possession costs is around 15% more than the original cost. So while selling please factor these and don’t remember your cost of purchase per sq.ft which you did earlier and sell based on the same.

Sandeep Sadh

CEO – Mumbai Property

Lease rent returns drop down to 2 to 3 percent in SOBO

With growing capital values of Real Estate and high society maintenance charges and property taxes,  the lease rent yields are plumetting to levels of 2 to 3 percent.

For home buyers on one hand the Capital Values have grown over 100 percent over the past 5 years in most of the projects across Mumbai but the present day capital values give a very low lease rental yield.

In India, the home loan rates are around 10.25 to 11% where as in other parts of the world the same are 2 to 4 percent.

The lease rent yields overseas enable an automatic mortgage payout and it is far easier to link your EMI to your Rent without being out of pocket.

Sandeep Sadh