Family factors which influence home buying decision


Family factors which influence home buying decision

By Evente Clinic

For most of us, buying a home is once in a lifetime event. It involves several social and emotional decisions that can influence the home buying process. It is a very big decision in our lives and hence we don’t want to take any second chance when finalizing our dream home. So how do we get sure?

We check with our friends and family.

Family plays an important role in most of our buying decisions. Our selections are based upon several important considerations, many of them influenced by our families and our roles in them. The influence of family remains on our buying decisions throughout our lives from the time we are kids to the time we become grandparents.

Traditionally, the big decisions in the house were always taken by the male in the family. However, Indian society has seen major changes especially now when most women are working and contributing equally to the household income, equal weightage is given to her decision as well.

Namrata Pandey, MD, Evente Clinic say, ‘The behavior of real estate consumers over the past decade has evolved due to various factors like economic change, education levels, increase in family income, change in values, and the growing number of working women.’

Let us start our discussion with the role of children in decision making. If one is going to buy a home when their children out small, they must take that into consideration. Even young couples, who do not yet have children, should consider this as an important factor. Medical facilities should be readily available, not only for children but also for other members of the family. Everyone will agree on the importance of good educational institutions is available. As a result, almost all the projects are giving importance to these primary needs.

The other factor which influences our home buying decision is our family culture. Are we going to live a nuclear family or a joint family? Lot changes when this dynamic comes into the picture. A joint family would need an independent house with more space to accommodate all the people while a nuclear family can easily make do with a 2BHK apartment or a smaller house.

The other factor is who has a major say in the buying decision. Is it a male or female member of the family? Men tend to make quicker decisions with lesser influence from others. On the other hand, women are more prone to negotiations and try to cater to everybody’s needs which lengthens the process.

Lastly, the number of working individuals in the family. If both the members of the family our working, families tend to go for prime location and can afford a little more luxury.

Let us know your home buying experience. Who influenced you most and how?

What is top up loan and how you should use it?


What is top up loan and how you should use it?

By Evente Clinic

If you have an urgent requirement of money, what will you do? Most of us go for personal loans. Right? For some it is a good thing to do but not for everyone. There is another category of loans which most of you may not be aware of.

We are talking about Home loan top-up. Home loan top-up is a smart financial move for you if you need money given you already have a home loan. It is more efficient both in terms of interest cost as well as duration. To explain it better – Top-up on a home loan is an addition to your already existing home loan. If you are already in the process of repaying the loan amount and doing it without missing any of your EMIs, you can avail of the top-up facility by agreeing to the terms and conditions laid down by the bank.

Most of you may think still think why not to apply for a new loan than disturb an existing loan? The thought process you must be going through while contemplating from where to arrange funds is that how can I easily arrange funds at the lowest interest rate available in the market, isn’t it? The brand new loans can be a personal loan, a loan against property, a gold loan or any such loan which you can avail against collateral or even without collateral. But if you would have ever taken a loan, you would know it is not an easy process, it comes with a lot of paperback and headaches.

So let us see the benefits of the top-up loans:

Duration – The duration of the home top loan is longer than compared to other options like personal loan, car loan or gold loan. The top-up loan is available for a period of up to 20 years or until the balance tenure of the original home loan.

Use for any purpose – Most of the people who know about this option go for it because it can be used for any purpose. Whether you want to go on an expensive holiday or want to expand your business, a top-up loan is an answer for you.

The interest rate – If you go for personal loans, the interest rate will be a double-digit number. The interest rate for top-up loans is more or less the same as what you are already paying for your existing home loan.

Approvals – As mentioned earlier, getting any type of loan is not easy. You have to go through a lot of process and paperwork and this is where top-up loans are very good. Your top-up loan application would be easily approved and disbursed. In most of the case, all you need to do is submit your bank statements to reflect the repayment of the existing loan.

Tax benefits – You can also avail of tax benefits on top-up loans. However, you should be using the loan amount only for a home extension, renovation, or for educational purpose for yourself or your child for that.

If you have any more questions around top-up loans, feel free to contact us.

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How technology is changing Indian Real Estate


How technology is changing Indian Real Estate?

By Evente Clinic

Several tech advancements and innovations have made inroads into the Indian real estate sectors, which are likely to reshape the future of the industry. Not only the construction processes have become more specialized, but the facilities accessible in the real estate sector have also seen a massive improvement.

Like other e-commerce platforms, now the Indian real estate will have a web space. The housing ministry is going to launch the e-commerce platform with the core intention to bring the trust back in the real estate sector. The objective of the e-commerce platform is to bring transparency in the sector and offer only certified projects. The online platform is for projects that have received occupancy certificates (OCs) and is expected to create a seamless, safe and transparent home-buying experience for home buyers.

The two of the most technology of recent times have also found its foot in the real estate industry – Artificial Intelligence and Machine Learning.

From the way property seekers, scout for property to offering probable buyers with applicable information to investigating property values – all the phases of property procurement are now powered by AI and machine learning. In the Indian property sector, AI has the vast scope and ability to lessen operative expenses, augment and advance customer service, recover competence and condense resource depletion within the industry.

Some of the areas where AI is used and can be used more effectively in the future are Chatbots, Investor Analytics, Forecasting Loan Defaults, Deal Matching, Construction Automation, Property Management, Intelligent Search Platforms, etc.

The other technology which is emerging very fast in real estate is Virtual Reality. It has changed the way builders project their properties. It provides a preliminary idea of what the completed building would entail and aids in the decision-making process.

Innovation in the construction sector has paved the way for a wide range of dynamic building structures. The new developments are specialized to be water-resistant, flame-retardant, and safeguards against earthquakes and other natural disasters. The futuristic construction technologies have not only reduced the time frame for the completion of the project but also reduced the overall cost of the project. Labor costs can be significantly reduced, and quality and precision standards increased by using robotics for the repetitive, mechanical functions such as bricklaying.

The real estate has seen a major change in marketing methodology of the projects. The builders have started looking for technology now to reach a wider audience than traditional marketing methods like paper ads and hoarding which are not only expensive but also have limited reach. Now the real estate marketing portals offer a wide range of valuable insights, including market dynamics, customer analysis, projected trends, and more. This helps the developers and brands to reach a much larger target audience.

With the rise of innovative technologies and the growing need for environmental sustainability, the real estate industry has also witnessed a rapid growth in green construction. Solar panels and energy-efficient features are commonly being offered in today’s buildings to lower the carbon footprint and impact on the ecosystem.

Indian Real Estate outlook for 2020


Indian Real Estate outlook for 2020

By Evente Clinic

The past decade witnessed a lot of ups and downs for the real estate industry. There were structural changes, policy changes, industry consolidation and much more. 2019 was a bit challenging year for the real estate industry which struggled with a funding crisis amid issues plaguing the NBFC and banking sector.

The past is behind us and we are in a new year and the budget has just been out. The worst is over and now we can expect good returns from anyone who dives in with the investment. As reported by the Indian Brand Equity Foundation, the real estate sector in India is expected to reach a market size of US$1 trillion by 2030 and contribute 13 percent of the country’s GDP by 2025.

The biggest question everyone is asking today – Will property prices come down? To our readers’ disappointment, the answer is negative. As builders are coping with a severe liquidity crisis, reducing unit rates isn’t much of an option. In a scenario where they don’t have many lenders willing to grant loans, they can hardly be expected to play around with their only chance of getting liquidity.

Both commercials, as well as the residential sector, has great potential for 2020. The warehouse sector will gain traction as it did last year. The concepts like ‘Housing for all’ and ‘Affordable housing’ will drive the industry forward. Rentals have also been inching up with companies like WhatsApp, Apple, Facebook expanding their presence in India.

IT hubs like Pune, Chennai, Hyderabad, and Bangalore have always seen steady growth and the trend is likely to continue. These cities have also shown a new trend, the millennials are more interested in co-living spaces. As per Knight Frank, ‘In India, the co-living concept is gaining widespread acceptance and though the concept is novel, it’s here to stay. This trend is giving impetus to an organized rental market in cities such as Bengaluru, NCR and Pune in the same way as co-working spaces did for shared office space.’

The Reserve bank of India has reduced the home loan interest rate by 135 basis point (bps) in the year 2019 given our GDP has touched a six-year low of 4.5 percent in Q2 FY20. The banks, however, have not been able to pass the same to the end-users because of their own liquidity crunch and increase in NPAs. If RBI further reduces the rate, the banks are most likely to pass on the benefits to the customers.

The technology will continue to change how key players work. The technologies like data gathering, artificial intelligence and machine learning which will play a key role in redefining the realty sector in India. Smart homes will continue to be the choice of customers.

Considering housing loans are cheaper at this point in time and property prices are stable, it makes perfect monetary sense for all people looking to invest to go ahead with property buying in 2020. The same is true for you to plan and earn rental income by investing in a second property.

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