Know Your Lender For Your Shelter!

“A house is not a home unless it contains food and fire for the mind as well as the body.”

Benjamin Franklin

We have all dreamy of a perfect home where we’d like to experience life with our loved ones. Big or small we all have our own ideas of a dream home. But sadly, not always can we afford the home we dream of and that’s where the banks come in; helping us finance the home we want. But, do they actually help us? Let me help you find the best loan for YOU!

Costs related to a Home loan:

1. Processing Fees– This is the first prominent fee one needs to pay with the loan application. The fees varies from 0.25% to 1% of the loan amount and is non-refundable i.e. you have to pay it irrespective of whether your loan gets sanctioned or not.
2. Legal Advisory Fees- The fees you bear to get the property’s papers verified and scrutinized by a legal advisory or a lawyer and prepare a report on the basis of which bank will decide whether the property can be financed or not. This fee is also non-refundable and needs to be paid with the loan application.
3. Stamp Paper Cost-This is a nominal expense of about INR 300 which is required to buy legal stamp papers once the loan has been approved and write down legal home loan agreement between you and the bank.
4. Cost of Home Insurance Premium- Insuring your home is a recommended option, which some banks have as a mandatory requirement. This insures your home against any natural calamity and other threats which can potentially destroy your property.
5. Cost of Home LOAN Insurance Premium– Home loan insurance is different from home insurance. The first insures you against the home loan liability; the second i.e. home insurance, insures your property. Home loan insurance can also act as your guarantor,in case your credit report is NOT good and the bank wants you to provide a guarantee to support your home loan. This is a big expense if you opt-in for it. However, it is recommended to cover the Buyer’s dependents, in case of his demise.
6. Service Tax on Bank Fees– Service tax is another amount that is charged by banks on the amount that you pay them as fees.

Right Loan Provider  – Factors to Consider:- Six factors for selecting right home loan provider:

6. Processing speed– It should take not more than 10-15 days for a loan to be processed and additional 3-5 days for the loan amount to be disbursed.
7. Lending criterion– Different banks have different lending criterion for the estimation of the loan amount and in general the approval of a loan. For eg- age, job profile, credit history, etc of the borrower.
8. Repayment of loan–  Banks have terms and conditions for the repayment of the loan and also for an early part payment / repayment of loan. You must refer to the terms related to the settlement/ foreclosing the outstanding amount in detail before finalizing a lender. As per RBI Directions, a bank can NOT charge Foreclosure Charges.
9. Cost of loan– Banks have certain other charges related to loans, irrespective of the loan being sanctioned. Refer to the beginning of the article for a detailed explanation.
10. Fixed vs. floating rates– In Floating Rates, Rate of Interest keeps changing, where as in Fixed, it is Constant. In Hybrid, the rate is Fixed / Floating for a period & changes thereafter. As a thumb rule, if the loan period ranges between 2 to 5 years, going with a fixed interest rate is better, and Floating rates are more suited for long term loans. You can even go for a hybrid loan, which enables the borrower to enjoy the best of both fixed and floating interest rates.
11. Hidden charges– Hidden charges is something that tends to prick the pocket of borrowers the most. Thus, while narrowing down the options, it is advisable to compare the processing fee, down payment, valuation fees, prepayment costs and other charges levied by different lenders.

     In case of any further queries, we would love to hear from you.

     Leave us a message on –Facebook; Blog; email– biraj@colonelz.com

Reference Link:- https://colonelzbricklogic.blogspot.com/2015/02/houseis-not-home-unless-it-contains.html

Green Buildings – Indian Perspective

Deteriorating Environmental conditions pan India entails we MUST focus more on Environment Friendly Buildings & Infra development. We are a country of 1.5 billion people and counting , in which 32% of population lives in urban areas.India’s  increase in commercial energy consumption in the last four decades has been 700% and is growing. Energy consumption in India will grow upto 3 times of current consumption by 2030. There is a shortage of about 250 million liters of water per day, if we only consider the major Indian cities. The crisis is approaching, lest we stem it. Green building construction presents a solution for sustainable growth.

What is Green Building? Green building, or sustainable design, is the practice of increasing the efficiency with which buildings and their sites use energy, water, and materials, while reducing the negative impacts of the building on human health and the environment over the entire life cycle of the building. Green building concepts extend beyond the walls of buildings and should  include siting, design, construction, operation, maintenance, renovation, and demolition; as also, community and land use planning as well.

There are numerous ways to make your buildings more Eco friendly. We list a few below

Sustainable Site Selection:

Easy availability of public transport/ Mass Transit system and conveniences helps cut down energy consumption for transportation. Rehabilitation of sites damaged by environmental contamination is a better option than any new piece of land where large amount of energy and resource is needed to make the land worthy of building on, thus saving large amount of energy.

It is very important to protect the existing Flora & Fauna, the soil and natural features. Avoid hard paving on the site to preserve top soil and ease rain water harvesting. There should be minimum storm water runoff.

Sustainable Building Components / Material

Material which can be recycled, have low toxicity, nil / low harmful air emissions, as also, have a long shelf life are better. Planning the Building’s structure and dimension can reduce the construction costs. Construction and demolition material can be reused and recycled for landfills. Proper planning for managing materials through deconstruction, demolition and construction is done.

Using renewable materials like bamboo flooring, wool carpets, straw board, cotton ball insulation (made from denim scrap) is good. Locally available materials must be given priority; Saves transportation costs. Alternative materials that can be generated from waste with lesser energy is used over conventional building materials, e.g. alternative materials for timber, like MDF board, Mica Laminates and Veneers on composite boards should be used instead of natural timber.

Industrial waste based bricks and blocks, aerated lightweight BPC concrete blocks, can be used for masonry structures and Fly ash, for bricks, outdoor paving and in concrete.

Solar Energy

Indian Govt is giving numerous subsidies, including sharing of Solar energy generated in the Grid so that excess energy generated during day can be bartered for energy at night, thus being economically efficient, as also environment friendly.

Water Efficiency

Installation of water efficient or low flow equipment in kitchens and bathrooms to reduce water consumption is very important. Newly designed Vapor generating taps save 80% water while being as efficient.

• Incorporating waste water management technologies like dual plumbing for using recycled water in toilet flushing or using water conserving fixtures such as low flow shower heads, self closing nozzles on hoses, water closets with dual flush options.
• Use of Micro irrigation techniques at sites instead of high pressure sprayers.
• Re circulation system for centralized hot water distribution.
• For landscaping purpose, local plants and trees are used as they consume less water.
• Provisions for reusing and recycling water are made to ensure efficient water management.
• Using treated waste water, non potable water for site irrigation. Raw sewage can be recycled using aquatic plants like duckweed and water hyacinth to produce clean water suitable for re-use in irrigation and industry.
• Integrating Rain water harvesting system in building design to ensure maximum possible utilization of rain water.

1billion square foot building area has been certified as green by leading green building rating system LEED-INDIA.

There are two established Green Building rating system in India.

• LEED-INDIA
• GRIHA

Some Green Building Projects in India

• Suzlon Energy Limited – Pune
• Biodiversity Conservation India – Bangalore
• Olympia Technology Park – Chennai
• ITC Green Centre – Gurgaon
• The Druk White Lotus Schoo l- Ladakh
• Doon School –  Dehradun
• Raintree Hotels – Chennai
• Nokia – Gurgaon
• Rajiv Gandhi International Airport – Hyderabad
• Palais Royale at Worli – Mumbai

Reference Link: https://colonelzbricklogic.blogspot.com/2017/02/green-buildings-indian-perspective.html

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Taking / Giving Property on Rent? Our Advise—– Be Wise

Hiring a place may seem very simple for the Landlord, as also the Tenant. Sometimes these become very unnerving if you miss out on some important aspects that need to be considered before moving into the house / letting out your house. Taking the paperwork lightly may have serious implications for both the parties. Apart from checking out the exteriors and interiors, the legal check on various aspects is equally essential.

Tenants Points to be considered:

• Check property ownership documents. Conveyance Deed is the best proof, however, Electricity / Water / Gas Bills are also acceptable.
• If a Broker is involved, his registration should be checked.
• Brokerage to be paid to the broker varies from 15 days rental to 1 month in North India. It could be more at places. Must negotiate it.
• Brokerage paid is part of expenses & you can use it for tax purposes. So preferably, pay in cheque.
• You must inspect the house and see the house in detail before finalizing. Bring out the repairs required, like; toilet flushes, electricity points, modification required for ACs, Doors & windows, etc.
• Photograph broken or dilapidated fixtures / fittings & exchange it on mail with owner to avoid problems while handing back.
• Major & Minor Repairs. Major repairs due to fair wear-and-tear are done by the owner. In case of negligence, cost is borne by the tenants. All minor repairs are the responsibility of the tenants.
• You must read through the RWA by-laws of the society to avoid inconvenience / regrets later.
• Get a clear idea about the amenities near / around the property, to include public transport, neighborhood gentry, proximity to essential markets, schools, hospitals, etc.
• Check the safety aspects, especially for working / single women. You could get the crime rate in the area on the.
• Find out the age of the property. If possible, speak to the previous tenants or the neighbors.
• For Fully furnished apartments, normally a Lock-in period is required, as expenses are incurred on furnishing the house. Must check the deed in detail, including the rent increase percentage after expiry of contract. It must be mentioned in the Rental Agreement.
• Lease Deed/ Rental Agreement – A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by her to the property owner. This agreement is ideally drafted before the tenant occupies that place. Necessary inclusions of the rental agreement or the Lease Deed would be;
• Include start and end date of the tenancy.
• Monthly Rent amount payable and the date of payment- should generally be 10^th of the month, especially for salaried persons, to avoid cheque bounce.
• Security deposit amount to be paid. This is refundable & should be mentioned in the Deed.
• Service/maintenance charges. Is it included in the Rent or over & above the Rent.
• Responsibility of payment for repair and maintenance.
• Conditions of termination of Agreement.
• Notice period for vacating the house.
• Provisions of electricity, water and power facility & their payment procedure.

Property Owner / Landlord. Rented Property generates additional income by way of lease or rent. But if leased to a wrong person, could cause numerous problems. It requires substantial care and a lot of aspects have to be kept in mind while selecting the right paying guests (PG) or purchasers on rent (rent party):

• Must check financial capability and background of the prospective tenant (Second party). (Too good offers are dangerous. If the going rental is Rs X and you get offer of Rs 2X, reject it).
• Avoid renting out to small businesses as they may not be able to service the monthly payouts.
• Police verification of the prospective tenant is a must. This process helps in background check of the tenant. Not doing this is a punishable offence under Section 188 of the Indian Penal Code.
• Take the permanent address proof of the prospective tenant.
• Take the bank statement of the bank from which the payment cheques are made.
• Take her PAN No and check her CIBIL score to ascertain whether the prospect respects her commitments.
• Meet the tenants one on one, interact with them and get to know them. Don’t leave it on the broker – his sole interest is Brokerage.
• Services of Registered Brokers only must be used. If he charges GST (currently 18%), he should deposit the GST & give details of it to you.
• It is imperative for the landowner to ask the appointed broker to provide the agency’s registration number, valid signature and agency seal/ stamp on every page of the ‘Lease and License’ accord so that the broker can be held accountable for any legal disputes in future.
• If possible, rent your property to Tenants with families. If renting to Bachelors, obtain “Comfort Letter” from the Employer of the prospective tenant & do a call check with the Company’s HR / Admin.
• Lease Deed/ Rental Agreement. A rent agreement or a lease deed is a legal document that contains the details of the rights of a tenant to occupy certain property for a fixed period of time in return of the rent paid by him to the property owner. This agreement must be drafted before the tenant occupies the place. Necessary inclusions of the rental agreement or the Lease Deed would be;
• If the period of time is 12 months or less, registration is not compulsory. If more than 12 months, you are legally bound to register which costs a minuscule amount (nearly 1% of the total rent value, depending on the local laws), making it a very authentic legal document.
• Clear mention of Dates; to and from.
• Notice period required from both sides; owner and tenant.
• Rental value and the security deposit made by the tenant and any advance payments done.
• The annual rent is generally 2-3% of the capital value and differs according to the location and amenities provided.
• Date of monthly rent payment (usually around 10^th of each month, especially for salaried tenants).
• Annual increase in Rent Clause.
• Mode of payment; ECS mandate or Post dated cheques. AVOID CASH TRANSACTIONS.
• Clear mention of the size of the property and the number of rooms, bathrooms, kitchen, etc.

Wishing you a Happy Letting out / in. You may make lifelong friends with your Tenants / Landlord. Happy Safe homes is what is important.

Reference Link: https://colonelzbricklogic.blogspot.com/2015/10/taking-giving-property-on-rent-our.html

How To Look For An Architectural Agency?

We all are aware of the fact that nowadays, technology is being so advanced. In every field, we will find modifications which have been brought to us by technology. If you are also among those who are looking forward to such changes, then you can consider the architectural field.

The architectural field is one of those fields which are being one of the requirements when you are looking forward to availing the construction services. If you are not available with architecture companies that it will become difficult for you to pass the map of your location and also you will not be able to design it well.

If you are among those who are looking forward to designing their ambiance and want to contact with the best architecture agency, then you must get sure about few requirements. If you are not sure about all these requirements, it will become difficult for you to contact the architectural companies efficiently.

Things to get consider are:

• At the very first, you must get sure that the architecture companies you are choosing must be available with professionals. Professionals will help you to know whether you are appropriately availing the services or not.
• Budget is also being one of the first requirements when you are availing the services. If you are having a good but then it will be not a problem for you to avail the services that if you have a nominal budget, then you must look for the same.
• Make sure architecture companies you are choosing are providing you with the services which will be accurate with the location and will also help you concerning the future as well. If the services you have availed are temporary and you are not constant with the same, then it will become difficult for you to maintain them.

If you are not sure where you can search for architecture agency, then you can visit the online platforms. Online platforms are all the detail available about these companies and will also help you to contact them. All the details which are necessary for you to contact them are available on the online platforms which will help you to get in touch with them quickly. Moreover, their website links are also available where you can raise your query, and they will get back to you within no time.

When you get sure that the services you are availing are the best and you are ready to invest in, then you are prepared to avail the services efficiently. Do not let yourself in any doubt. If you have any doubt, then clears them with the professionals in advance. Also if you find that you are not ok with the budget then also you can contact them freely. They will let you get available with services in your budget quickly.

What else you want when you are getting the best services within your budget and your dream will design according to your need. These services will not only help you in maintaining your private area but if you want you can also design your office area as well.