RBI Repo Rate Cut by 25 basis Points; Real Estate Sector Lauds The Move

Recently, RBI reduced repo rate by another 25 basis points. It is expected to bring down construction costs and home loan interest rates, giving a boost to the real estate sector. RBI has cut the repo rate by 50 basis points since February 2019, bringing it down to 6 percent.

“This step by RBI is going to augment the real estate sector. The sector has already started improving after several steps taken by RBI and the government,” says Jayesh Dave. The March quarter has witnessed 12 percent increase in housing sales across the top seven metro cities, all credit goes to various measures by the government and RBI.

“After reducing the repo rate, RBI has done its work. Now banks should reduce home loan interest rates further so the step by RBI could reach end term customers. Doing this will encourage people to purchase property,” said Mr Jayesh Dave. He also added that lower interest rate clubbed with reduced GST rates for under construction properties will enhance the demand of property amongst the buyers, improving overall real estate sector.

Repo rate is the interest rate at which RBI lends money to bank. Lower cost of borrowing directly impacts the EMIs you are paying for your loans. For instance, if the current rate of interest offered by SBI is 8.75% then consider a Rs 30 lakh loan amount for 15 years tenure for your home loan and the EMI which you will have to pay will be Rs. 29,983. But with the reduced interest rate to 8.5%, your EMI will come down to Rs. 29,542. The total amount which you are going to save will be Rs. 80,000.

“At large the repo rate reduction is going to affect the overall Indian economy. It will reduce the borrowing costs of MSMEs, corporates and retail borrowers. This will boost the private consumption and private capex. Also, this will definitely bring up private consumption and housing demand,” stated Jayesh Dave.

Eligible new borrowers can take advantage of Pradhan Mantri Awas Yojana (PMAY). The scheme offers credit-linked subsidy based on your annual income under the flagship ‘housing for all’.

Source: The Voice Of Nation

Why Location is an Important Factor to Consider Before Buying a Home

Buying an ideal house is a dream for many. However, there are several factors that an individual needs to consider before spending his hard-earned money on this asset. One of the most important things to consider while buying a house is its location, reviews Jayraj Builders.

Location is an exciting prospect for a homebuyer, since it determines the value of his property to a great extent. Living at the center of the city, a place where everything is accessible, is desirable to most. However, this can be a problem in disguise of a blessing. Increasing population in urban areas has become a massive challenge for the authorities that are finding ways to tackle this problem.

Moreover, the rising standards of living are also drawing people to the urban areas. Considering all these facets, it has become imperative to review the location of house before sealing the deal. The constant struggle between affordability and accessibility is one of the major issues as well. At this juncture, a buyer needs to study the market and take smart decisions to choose the right option, suggests Jayraj Builders, one of the top builders in Vadodara.

There is not much space available in the center of the cities, which is anyways too costly. A perfect location at this stage would be the outer ring roads of the major cities, or areas in close proximity to the business hubs, with well-connected roads. According to Jayraj Builders Vadodara MD Jayesh Dave, locations like Race Course, New Alkapuri, Old Padre Road, Akota, Bhayli, etc. are proving to be the perfect cushions for major city centers of Vadodara.

In a similar fashion, the residential properties near outer ring roads have been preferred the most in other major cities. In the capital city of New Delhi, the extended parts of NCR (National Capital Region) have attracted a large host of buyers over the years. The exasperating pace of urbanization and modern living demands a place that can diminish the strains of travelling back and forth every day.

At this juncture, the extended arms of big cities play a crucial role in addressing to the housing needs of the ever-growing metros. Living at these locations can provide much needed comfort and peace to the residents, who can enjoy a large number of facilities available to them like swimming pools, gymnasiums, lush green gardens, play rooms, etc.

The top builders in these cities have also followed the suit by coming up with affordable and luxury apartments in big cities like Vadodara. According to experts at Jayraj Builders, the trend is likely to continue in the coming years, which makes it even more important for the buyers to choose the right location for their dream house.

Source: Jayraj Builders

Jayraj Builders Vadodara Explains some Commonly used Real Estate Terms

Source: Horizon Cottages

If you are looking for investing in real estate for the first time, you might have come across a lot of terms that would’ve left you confused. It’s only natural; however, it ought not to remain the same. Jayraj Builders Vadodara simplify some commonly used real estate terms for you. Take a look:

Credit score

Credit score refers to your capability to repay the loan (home loan or any other) you plan to take on the basis of your salary, financial strength, bank statements, and background check. A good credit score makes it easier to get the loan application approved.

Real Estate Broker

Though often confused with one another, there exists a major difference between a broker and an agent, quip realty experts from Jayraj Builders Vadodara. While the latter is equipped with a real estate license that allows them to assist in property associated matters like buying and selling, it is the former that has qualified the state’s broker exam and has a certain number of successful deals as feathers to their hat.

Lease Agreement

Lease Agreement is a legally binding contract between the landlord and tenant that specifies the details associated with the deal, such as the details of both parties, rent payable, monthly bifurcation, lease commencement and expiration date, security amount, etc. These terms are mutually agreed upon and signed by both the parties involved. Additional clauses can also be added as per discussion, suggests realty expert Jayesh Dave, founder and owner of Jayraj Builders Vadodara.

Carpet Area

Although this term has grown out of use lately, it remains undeniably the most important factor to consider while buying a residential property. Carpet area refers to the area that can be used by the resident to set up their home. It excludes the area covered by balconies, lobby, outer walls, etc. Note that built-up area factors in the area occupied by the aforementioned. Jayesh Dave founder of Jayraj Builders suggest buying the property based on carpet area only.

Super built up area

As the name suggests, super built up area includes the carpet area along with the extra areas like stairs, lobby, balconies, lifts, etc. In other words, all the area that is ‘saleable’. This is also one of the major reasons why most developers decide the final cost on the basis of cost per square feet, quip realty expert Jayesh Dave from Jayraj Builders.

Subletting

Subletting is a clause that allows the tenant in a property to rent a part (say, a spare bedroom) to an outsider, or sub-tenant, and take the rent from them for that area, without the involvement of the property owner. However, if done without the knowledge of owner, this can lead to immediate action of vacating the property, suggests Jayraj Builders.

Any other real estate term you need to be explained? Let us know in the comments section!

Jayesh Dave MD Jayraj Group enlists important documents to check before buying a new property

Buying a property, be it residential or commercial, is one of the most important decisions a person takes in his/her entire life. However, people often neglect the importance of the documents involved in the process, and end up investing in the wrong property. We asked Jayesh Dave, MD of Jayraj Builders Vadodara, for his expert advice in this regard.

While the laws governing the sale of property might vary from state to state, there are a few permissions and documents a builder or promoter must have if they are selling flats. Jayesh Dave from Jayraj Builders provided us with a concise list of documents that you should check while buying a property from any builder. Take a look:

Title deed: This document tells you whether the builder owns the property being sold and has the right to sell the property and the freedom to transfer ownership. Insist on seeing the original document, instead of a copy of the title deed. This will also tell you whether everything is legal or not. According to Jayraj Builders Vadodara MD, every buyer should check the original deed, confirming that the land is in the name of developer, in order to make sure that no one else has right to sell it. It is recommended to get the title reviewed by a lawyer.

Intimation of disapproval (IOD): A set of permissions which must be obtained by a developer at various stages of construction, an IOD keeps trouble out of your property’s way. IOD usually includes approvals and a No Objection Certificate (NOC) from various departments such as the Storm Water and Drain Department, Sewage Departments, Forest Department, Environment Department, Chief Fire Officer, Traffic and Coordination Department, Airport Authority and Pollution Board, among others.

Commencement certificate (CC): This document must be issued by the local authorities. It legally allows a builder to start the actual construction work. Builder Jayesh Dave explains that this is important as any construction without procuring a CC is illegal.

Encumbrance certificate: This document can be obtained from the office of the registration authority (the sub registrar’s office) and tells you whether the property carries any legal or monetary liabilities or has any litigations pending. It can date as far back as 30 years.

Approved layout plans: The layout plans for the property should be approved by the appropriate planning authorities. According to Jayesh Dave from Jayraj Builders, property buyers need to exercise caution as there have been cases where developers deviated from the approved layouts, by adding extra floors or reducing open areas.

Purchase agreement: This is one of the most important documents involved in any property transaction. You should go through the purchase agreement carefully to make sure it includes everything you were promised. You can only hold a builder or promoter legally accountable for what is in the purchase agreement, not for anything that has been verbally promised to you.

Occupancy certificate (OC): This certificate is issued by the local authorities, and states that the property has been constructed in compliance with the provided permissions. As told by Jayesh Dave, the developer would have completed all necessary water, sewage and electrical connections at this stage.

We hope this list of important documents helps you choose the right property.

Source: Jayraj Builders

Jayraj Builders Founder Talks Real Estate on Vadodara’s Smart City Transformation

One of the largest cities in Gujarat, Vadodara, is gradually being transformed into a smart city. The development that occurred throughout the last decade vouches for the major transformation good old ‘Baroda’ is undergoing. Realty experts believe that the credit for the changing face of the Banyan City goes to the latest building techniques used by the city’s leading real estate developers.

Founder of Jayraj Builders Vadodara, Jayesh Dave, while talking about the changing real estate scenario in the city, said, “The housing scheme started by the government for medium to low income groups has turned out to be a major influence in changing the face of the city. People are giving positive response to the concept of affordable housing.”

Areas like Sama, Sayajigunj, Kala Ghoda, and Akota are now being transformed into smart localities with the introduction of intelligent poles. The idea behind these poles is to provide Wi-Fi connectivity to every citizen at a good speed. These poles also have LED display centers to relay important messages and they will also have the provision for CCTVs.

Not just the local dwellers, but major investors from all across Gujarat are keen on capitalizing in these regions of Vadodara. Real estate experts believe that this huge change has been only possible due to the new technological advances made by Vadodara’s real estate developers. The likes of Jayraj Builders are following international standards while designing and constructing new residential properties.

According to Jayesh Dave, founder of Jayraj Builders, this year is witnessing a quantitative rise in Vadodara’s real estate market, when compared to the previous year. “The modernization of real estate sector through Vadodara Smart City Project has enticed more investors than ever,” Jayesh Dave added.

The emerging residential townships are resourced with several modern facilities like 24×7 water supply, uninterrupted power, 24×7 security with CCTV cameras, ample parking space, better sewage management, gymnasium and swimming pools, special play zones for kids, community hall, and well-maintained gardens for recreational purposes.

According to Jayesh Dave, the condition of Vadodara’s realty market has been seeing a positive stride owing to the rapidly progressing Smart City Project. “This benefits prospective home buyers to a great extent. Buildings under construction will feature latest technology and better amenities. This will provide the residents with a better experience,” he said.

Source : Horizon Cottages

Also Read : How To Make Homeloan EMI Affordable By Jayesh Dave