Key of Dream

Homebuyers associated with insolvent projects should explore protection granted by the law and compel the state authority to  ensure that either the delivery of the project is seen through, or the money invested is returned. So, you decided to purchase a property, and were waiting for the construction to complete. The work started in full swing, but one day, you find out that the builder is no longer “there”. Worse, they have gone bankrupt, and declared insolvency. Among many other things, the recently executed RERA (Real Estate Regulation and Development) Act has tightened the noose around builders, thus, prompting many of them to escape the ambit of the state regulator. For buyers, on the other hand, it’s not exactly a smooth ride ahead. Of course, in some cases, the government will intervene and monitor the cash flows of your builder. This also includes the administration ensuring that the project is completed by a third party, notwithstanding the developer. As a buyer, here’s what

With the recent spate of builders filing for bankruptcy in most metro cities, buyers have been left in a turmoil about the status of their under-construction homes. It becomes crucial to know the recourses homebuyers have access to if their builder goes insolvent. Check them out in the article below! A buyer’s worst nightmare is having his builder go bankrupt. Such an event can bring the construction of his property to a standstill, putting his investment at significant risk. What is scarier is that as per the provisions of the Insolvency and Bankruptcy Code, 2016, buyers may be at the losing end in such a scenario, especially if the builder owes massive debts to creditors such as banks and other financial institutions. What is insolvency? Insolvency refers to a situation when a company or an individual cannot meet its financial obligations to its creditors or lenders. A builder may file for insolvency when he is unable to clear his debts once they become due. In order to be declared i

In order to understand a CIBIL or CIBIL TransUnion score, it is essential to know what CIBIL is. Credit Information Bureau India Limited (CIBIL) is the first credit information company founded in India. It records and maintains credit details of individuals. These include details such as payment records of loans and credit card bills received from member banks and financial institutions. This information is then used to create Credit Information Records (CIR) and credit scores. This is shared with all the banks and financial institutions for evaluation and sanctioning of different types of loans.   CIBIL score and its calculation In the last five years or so, the Indian financial market has become quite stringent. Therefore, it is essential to maintain a healthy CIBIL credit score. Your CIBIL credit score is generated basis the CIR created and is used for evaluating your eligibility for any kind of borrowing. A CIR is an individual's credit payment history across loan types and cre

Buying a home is probably one of the most important decisions of your life. However, in India, this decision is often taken as a result of societal pressure to be an owner rather than a tenant. Nonetheless, such financially binding decisions should not be taken in haste and under pressure. It requires detailed understanding and planning of finances, so as to avoid any economic strain later on.  As, more often than not, buying a home involves taking a loan, there are certain factors one must consider before finalising the purchase. Thus, before one understands how to finance a home, it is essential to know how much one can afford.     EMI Affordability Equated Monthly Installment or EMI is the most important factor when it comes to home loans. Buying your dream home may become a nightmarish experience if the EMI is not within your comfortable reach. EMI affordability is determined by factors such as your monthly income, the number of working years left and existing liabilities.  Net mon

Investing in land is significantly different from purchasing a built property. However, the returns on investment are largely governed by the type of land you invest in. One of the most frequently asked questions by all investors is – Which offers better ROI – residential land or non-residential land? Little do the buyers realise that there are various types of non-residential land, each having its own set of challenges and prospects of growth. If you are facing this dilemma of which type of land property to buy, it is essential to understand the types of land parcels and the kind of returns on investment you can get from that piece of land. Based on usage, land is broadly classified into residential and non-residential. Non-residential land is further classified into – Industrial Commercial Agricultural   Out of all, independent buyers can opt to invest in industrial, commercial and agricultural land. The Government holds the land reserved for recreational and transport purposes and a

Growing population and limited land as a resource have paved the way for vertical expansion in Indian real estate. As a result, residential buildings in many parts of the country are constructed as high as 100 floors, conveniently qualifying as skyscrapers. While the idea of living at higher floors may sound enticing to many, it may not appeal to those who prefer living closer to the ground. As per the Indian Building Code norms for fire safety, all buildings up to the height of 15 m from the first access point for a fire engine, are considered low-rise constructions.       While high rises can accommodate plenty of housing units across floors, low-rise buildings generally offer four floors or less. In low-rise builder floor units, a single dwelling is provided on every floor.  While buying an apartment, you may often face the dilemma of whether to buy a unit on a lower or a higher floor. Many a times, this decision may also depend on the city in question. For instance, in Delhi NCR, l

The real estate market has a plethora of developers – new as well as established – making an array of offerings in a bid to expand their clientele. Every developer, irrespective of the company’s brand equity, carry distinct advantages and drawbacks. Therefore, in order to make an informed home buying choice, a prospective buyer must weigh the pros and cons while selecting a real estate titan or a new entrant in the builder fraternity. Here are a few points that you must keep in mind when deciding on a developer:   RERA Certification: The most reliable and cut and dried measure of credibility is a RERA certificate. All real estate developers are mandated to register under their respective State’s regulatory authority. By purchasing in a project by a RERA-registered developer, you can safeguard your investment in the event of delayed possession, incomplete project or faulty or substandard construction.   Credibility: One of the key advantages of buying a property from a reputed develop

Buying real estate is no cake-walk. The decision from whom to buy a home is as important as timing the purchase. While booking a property, you may have to choose between buying a fresh unit from a developer and buying from an owner - essentially known as the primary and secondary markets, respectively. Both have their advantages and disadvantages and you must make an informed decision based on the nuances involved in each of these options. Advantages: Fresh Booking (Primary Market) An under-construction fresh unit may allow you to get customised payment plans, most popular being the construction linked plan. The ease of payment is the biggest advantage of buying an under-construction unit from a developer. Since the unit is new and unused, you will not have to worry about the chipping paint or nail holes. You can make changes to your unit from scratch. Post the implementation of RERA on 1 May, 2017, all under-construction and new units are mandated to be registered under RERA. Buy

Apartments General features Apartments have increasingly become the most supplied property type across cities in India. Their popularity can be attributed to reasons including but not limited to contemporary looks, modern-day amenities and better security. In addition, issues pertaining to water and power supply, and maintenance are usually taken care of by the developer. Thus, if you are buying a property for end use, apartments might prove to be the best option unless you want the liberty to design your own house. As these units are easily available, you also have plenty of options to choose from, depending on your budget, location and other preferences. Scope of earning/income opportunities In case you do not plan to occupy the flat immediately, you may put it on rent and revoke the burden of EMIs, if you have availed a home loan. Another advantage of investing in an apartment over a plot or a house is its higher resale value and a wider buyer base. As demand for these units is usua

A couple of terms that perplex most home buyers are “freehold” and “leasehold”. So, what do they mean? Are there any legalities associated with them which a home buyer should be aware of? What is the basic difference between the two? And, most importantly, is one better than the other? The main difference between freehold and leasehold properties pertains to land ownership and control. As an owner, you can mostly do what you wish with your home, provided you keep within the local planning rules. In the case of a leasehold property, the ownership is given by the government for a tenure of 99 years. It is possible to extend the leasehold to 999 years if the owner, which is the State in most of the cases, wishes to extend the lease and you have to pay a price for the lease extension.   Freehold Property If you have purchased a freehold property, you own the land it is built on and also the house. In the case of apartments, the owner of the house becomes a shareholder in the property. You

Buying a real estate asset, particularly a property in your name, should be a guided decision with the goals and objectives well-defined. One cannot simply leave any space for confusion when it comes to putting your lifelong savings into the realty market. Though investing and end-use are the two most frequently used words in the context of buying a property, many fail to understand the fine line of difference between the two. For instance, while location is of paramount importance while buying a home for end-use, one could probably compromise on it a little when it comes to investment. Let’s look at these important parameters closely.   Location End-users: For those planning to own a home for shifting into it sooner or later, location plays the most important role. Make sure that the locality is conveniently situated and one that can cater to all your needs. It should have access to facilities such as schools, hospitals and malls and should be well-connected to other parts of the city

The whole world is eager to invest, and for all the right reasons. The benefits are countless: the return on your assets can be utilised as a regular source of additional money for your day-to-day living expenses. You can also reinvest the funds to compound your wealth. Merely saving money is not enough – making the right investment is critical for higher returns. Stay with Key of Dream. One quality investment that is the talk of the town today is real estate. Real estate investments often yield consistent cash flows, good yields, tax advantages, and diversification with well-chosen assets - and are a great avenue to build wealth. Investors make money through rental income, appreciation, and profits generated by business activities that depend on the property. Here are six tips for you, as a (soon-to-be) real estate investor, to get going on your real estate investment journey: Start early, enjoy latter. As property values rise with time, investing in real estate at an early stage give

A question that usually troubles almost all home buyers is whether to opt for a ready-to-move-in house or book an under-construction one. Since both these property types serve and suit different purposes and intents, it is imperative to know their pros and cons in details. Here is a ready guide to help you take the decision.   Buying an under-construction property has become one of the easiest ways to realise the dream of owning a home these days. This proposition in real estate comes with certain risks as well, the most common being delayed possession. However, due to the incessant delays in project deliveries in the last few years, home buyers have increasingly started preferring ready units. Let’s take a look at the advantages and disadvantages of both under-contrsuction and ready properties in the article below. Advantages of Under-Construction Property: Easier on the pocket An under-construction property does not hurt a buyer’s pocket as much as a ready home does at the time of bu

Many landlords prefer to increase the rental amount annually at the time of lease renewal, generally, maintaining a 10 percent minimum hike. However, regular payments and good upkeep of the property, among others, can help you negotiate a rent increase with your landlord. Key of Dream elaborates more on such tips to help you ace rental negotiations. Every year, Mr. X pays more rent to stay in the same house in North Delhi. Although he has been living in the same property for over seven years, he has not yet found a way to negotiate rent with his landlord, who following the usual practice, raises the monthly rent by 10 percent every year. Almost all tenants, have to face the above situation. While it is a common practice among property owners to increase the monthly rent by 10 percent annually, some tenants are fortunate enough to get away with a smaller or negligible hike. Does this mean that the art of negotiation gives them an edge over others? Also is the yearly rental hike mandator

Real estate investment is generally associated with hefty capital investment. However, the lack of such an amount may not necessarily mean that one cannot invest in the sector. With new trends making headways into the industry, there are now various ways to invest in real estate apart from buying a physical, immovable property. Real estate investments do not necessarily involve property ownership. There are plenty of other opportunities that allow investors to reap the benefits of real estate appreciation, without the need to shoulder the continuous responsibilities of building maintenance. Investors who choose to invest in real estate beyond the traditional sense of buying property, have the option to invest across multiple locations and property sizes along with different classes of real estate. While these steps may serve as predecessors to potential property-owning in the future, you may also find the returns from these realty investments compelling enough to avoid buying a propert

 Mivan shuttering is a fast-paced construction technique which offers strength and durability to a building by use of aluminium frameworks. It is much quicker than the traditional beam, column, and brick construction. This technology does not use column and beam but involves walls and slabs cast in easy to handle, light weight, pre-engineered aluminium frames. With a growing focus on affordable homes and "Housing for All", real estate stakeholders are increasingly emphasising on the use of new and innovative construction techniques. One such technology is Mivan shuttering which is being promoted for its ability to aid mass construction activity. So, what exactly is Mivan Technology? Historically, the Mivan Technology, or the aluminium formwork system, was developed by a European company. Later in 1990, the Mivan Company Ltd started manufacturing these formworks, hence giving the name ‘Mivan Technology’. Use in India So far, the technology has not been used extensively in Indi

 A Gift Deed is a document that allows the original property owner to voluntarily give away their property to a person, trust or a party as a gift. Having this document in place helps avoid disputes that may arise because of inheritance claims. Key of Dream elaborates the legal process involved and the important inclusions to the deed. A Gift Deed is a legal document elucidating the voluntary transfer of the property – movable or immovable – to someone else without any monetary exchange. The property owner can hand it over either to a person or an institution; however, it should be accepted by the donee (recipient) during the lifetime of the donor and should be registered under Section 122 of the Property Transfer Act, 1882 with the sub-registrar as per Section 17 of the Registration Act, 1908. Like a Sales Deed, Gift Deed also comprises the details of the transferor and the recipient. Having a registered gift deed in place helps avoid any sort of litigation that may arise in future. E