All you need to know about Reverse Mortgage!

Quite often in the movies and in families we have seen and heard about the term ‘mortgage’. We see how a parent has to mortgage their assets to get a loan from the bank to make funds available for their children’s education or the wedding of their daughters. Well, this blog will speak in detail about the furthermore specific aspect of a mortgage, and dwell deep into the concept of ‘Reverse Mortgage’. So, let’s begin with some basic questions.

Reverse Mortgage or Forward Mortgage?

Mortgage, in simple terms, means ‘loan’. The lender can either be a bank or a financial institution or an individual. The purpose of a mortgage can be as simple as to own a property. It might be possible that the mortgage amount can cover the entire cost of the property, but commonly the loan amount can be secured up to 80% of the value of the property.

What ‘Reverse Mortgage’ is somewhat similar to a loan for senior citizens who lack a regular source of income. Imagine a 62-year-old father who owns a house. There’s a considerable amount of home equity line of credit attached to it what we know as HELOC. That amount can be withdrawn at any time. However, the home acts as collateral.

On the other hand, a forward mortgage is a type of fixed-rate mortgage. Compared to a normal kind of mortgage, a forward mortgage proves to be quite expensive. The lock-in period for the interest rate can be planned way ahead even before the mortgage term begins. This is helpful when you intend to own a property in the future. Forward-thinking, isn’t it? That’s why they are called that way.

What you can take away from this is that a reverse mortgage requires you to be 62 years or older to take benefits of the loan amount and they do not require a monthly payment or balance unless the property owner or the borrower dies, or sells the property or moves to a different location.

How does Reverse Mortgage work exactly?

This is the next big question of every layman who doesn’t understand these terms. Well, it’s not a complicated process. The borrower pays to the lender and the lender makes payments. However, in the Indian context, senior citizens tend to transfer their property in the name of their children and later get a bit doubtful whether or not to mortgage the property to a bank or some financial institution. There’s no need for a minimum income amount to qualify for a reverse mortgage as it doesn’t require monthly payments. Even if the borrower doesn’t have an income, they are eligible to qualify for a reverse mortgage.

However, the value of the house they own will be ascertained by independent valuation through property valuation methodologies generally accepted in the industry. A provision for periodic evaluation and consequent loan adjustments would be made once in 5 years, but the loan amount would be fixed based on the present market value of the property and not the future value.

How is reverse mortgage beneficial?

Reverse mortgage is not that convoluted as it seems to be. It has its own perks and senior citizens these days are very much in favour of it. Here are a few benefits of choosing a reverse mortgage.

You are still the owner: Contrary to the popular belief that you lose ownership of your home once you mortgage it, reverse mortgage is nothing like it. As long as you comply with the terms of the loan and pay your property taxes and homeowner’s insurance, the ownership stays with you.

The income is completely tax-free: the income that you receive from a reverse mortgage is exempt from tax. This indicates more savings for you. Not just that, you can even claim deductions on your home repairs and renovation expenses under a reverse mortgage.

It’s a new kind of income source: Moving away from traditional investment options such as fixed deposits, post office schemes or national savings certificate, reverse mortgage proves to be a supplementary source of income.

At TMR Group, we ensure that our customers are aware of all the terms that can help them invest in the right place, the right way. Our objective is not only to sell products or services but also to keep our customers informed about all the market-related terminologies that can help them make better investments and allow them to prosper. That’s how we believe, we can build a better bond and set better examples for the future generation.

How is DTCP different from HMDA?

You might have heard of these terms – DTCP & HMDA, everywhere whenever you encountered a real estate consultant. Why do they sound so similar? What’s the difference anyway? This blog will elaborate on the details as to why there are two distinct regulatory authorities overlooking the same field (pun, intended).

Let’s begin with knowing what they actually mean – DTCP stands for Directorate of Town and Country Planning, and HMDA stands for Hyderabad Metropolitan Development Authority.

Director of Town and Country Planning

The primary duties and functions of the Director of Town and Country Planning can be bifurcated into three categories – technical statutory functions, technical non-statutory functions and advisory functions.

Technical statutory functions:

  • DTCP prepares General Town Planning Schemes (Master Plans)
  • It is also responsible for the preparation of Indicative Land Use Plans (Mandal Master Plans)
  • DTCP gives all the technical approval of layouts and buildings plans (Group Housing), commercial complexes
  • DTCP is responsible for the preparation and approval of the different type of designs for community and public buildings
  • DTCP approves all sorts of technical clearance of installations (Industries), and road development plans
  • It provides NOC for cinema theatres / multiplexes

Technical non-statuary functions:

  • DTCP is responsible for the allocation of IDSMT funds. The scheme is no longer available as it was already closed in 2005 and the work of approved components are in progress.
  • DTCP sanctions approval of designs for public and community buildings and also suggest variations to the sanctioned master plans

Advisory functions:

DTCP is Advisor to Urban Development Authorities, Telangana Housing Board, Telangana Industrial Infrastructure Corporation, Telangana Pollution Control Board, Telangana Swagruha Housing Corporation and Government on planning matters. It also advises on the selection of sites and services of Municipal Councils.

DTCP overall has certain rules similar to HMDA. Now let’s have a look at the primary roles of HMDA.

Hyderabad Metropolitan Development Authority

The purpose behind which HMDA was set up was basically for planning, coordination, supervising, promoting and securing the planned development of the Hyderabad Metropolitan Region.

The development activities of the municipal corporations, municipalities and other local authorities, the Hyderabad Metropolitan Water Supply & Sewerage Board, the Telangana Transmission Corporation, the Telangana Industrial Infrastructure Corporation, the Telangana State Road Transport Corporation and other such bodies are coordinated by HMDA. Here are some of the many primary roles of the Hyderabad Metropolitan Development Authority.

  • HMDA basically prepares the entire plan for the Metropolitan city. It undertakes the preparation of metropolitan development and investment plan, revision of the plan and prioritizes its implementation.
  • It maintains and manages the Hyderabad Metropolitan Development Fund and allocate finances based on the plans and programmes of the local bodies for undertaking Development of amenities and infrastructure facilities
  • HMDA also monitors and exercises financial control over the budgetary allocations concerning development works made through it to the various public agencies, local bodies and other agencies
  • HMDA creates and manages the Hyderabad Metropolitan Land Development Bank and takes up land acquisition every year as may be necessary for various public uses, township development, infrastructure development, etc.
  • It approves the land acquisition programmes /proposals of the local authorities, other departments and functional agencies in the metropolitan region
  • HMDA acquires any movable or immovable property by purchase, exchange, gift, lease, mortgage, negotiated settlement, or by any other means permissible under any law

TMR Group is proud to have a wide range of plots in Hyderabad approved by both DTCP and HMDA so that our customers can invest in our property without any worries and strongly reinforce the trust factor in the customers. When they get to invest in a plot that gives them a sense of reliability and transparency that TMR Group has to offer, we get inspired to serve even better.


Why own a plot in a gated community

Why own a plot in a gated community?

Owning a plot is a big decision to make because we put a major chunk of our investment into it. Everyone who buys a plot definitely looks out for higher returns on any given day. Putting all these aspects under the microscope of an Indian family, the decision gets even bigger and meticulous because there are too many people in a family who influence this single decision. If it is a joint family, the process is further multiplied. Nevertheless, when the entire family decides to own a plot in a gated community as against buying an individual plot, here’s what a gated community can offer you.


When you own a plot in a gated community, the best part of the whole buying process is that your documentation process is hassle-free. There are real estate consultants who help you out with all the legal terms and intricacies of the process and inform you about all the required documents. With the digitization of most of the document requirements, the process is furthermore made effortless.


When you own a plot that is not in a gated community, which is individually lying somewhere on the outskirts of the city or hidden somewhere in the city, there’s comparatively a risk of encroachment. That’s yet another reason why most people opt for gated community plots. When the plot has 24×7 security systems in place, there is no risk or worry of your plot being encroached or manhandled. With the advancement of technology, there are CCTV cameras installed these days for round-the-clock surveillance.


Owning a plot in a gated community has its own advantages which we are clearly stating here. Another reason why this would be a wise decision is that you and your loved ones would get to experience an integrated lifestyle. With many like-minded people owning a plot in the same township as yours, the overall experience of living close to people you like and places you love gives you a different kind of positive vibe altogether.


There are many factors why you would choose a particular brand to own a plot in a gated community. First and foremost is trust. As mentioned earlier; with an investment of such a huge amount, you would definitely look out for someone who is trustworthy, reliable and committed to helping you. When a brand, with extensive experience in the real estate and plotting market, makes a promise that fulfills all your needs, you would certainly choose the brand and not any untitled broker. When the brand offers you clear title NA plots, you have entrusted your faith in the right place.

At TMR Group, we ensure that every customer who owns a plot in our gated community projects, gets to experience all that we have to offer. Be it for our value for money deals, or transparency in every transaction we make, TMR Group presents you with a plethora of gated community plots spread across prominent destinations at Hyderabad.

Shaping the future & the landscape of Hyderabad

Hyderabad as a city is progressing with numerous residential and commercial projects mushrooming in the vicinity. While the rest of India is seeing a QoQ growth of 84% in the sale of residential sector, Hyderabad is the leader on the board in new launches with a staggering rise of 480% QoQ. We can very well say that Hyderabad is shaping up its future along with the landscape of the historic city. Here are a few of the major developments happening in and around Hyderabad.

Construction of Musi River Expressway

In order to restore and give a face-lift to Musi, the Musi Riverfront Development Corporation Ltd (MRDCL) is setting up rain gardens, removing shrubs to reduce the mosquito menace, and clearing silt from the riverbed for a free flow of water from Bapughat to Nagole Bridge. The beautification of 40 lakes in GHMC and HMDA limits were carried out at a cost of `541 crore in Phase I. In the later stages, the project is bound to cover 185 lakes.

Extension of the Metro Rail

The Hyderabad Metro Corridor II, connecting Hyderabad and Secunderabad encompasses a total of 9 junctions, spanning across 11 kilometers. This corridor from Jubilee Bus Station to Mahatma Gandhi Bus Station will cut down on the travel time to about 16 minutes as compared to road travel that takes 45 minutes for daily commuters to cover. It will also stand as a crucial junction linking the existing Metro I (Miyapur-Ameerpet of 13 km) & Metro III (Ameerpet-Nagole of 17 km) corridors.

The Hyderabad Metro Rail which is the world’s largest Public-Private Partnership (PPP) in the arena of metro rail, is a landmark project in India that currently witnesses about 4,00,000 daily commuters on an average.

Construction of subways and underpasses

Hyderabad is on the cusp of major transformation as the city gears up to build subways and underpasses in major locations to decongest city traffic. 52 major junctions in the city were identified to develop as signal-free junctions. The said works worth over `3,000 crore were being taken up in the limits of Greater Hyderabad Municipal Corporation under the Strategic Road Development Plan. 

Also, the Government of Telangana has undertaken the Radial Ring Road (RRR) project with an aim to provide better connectivity and plans to extend the existing Ring Roads (Inner/Outer) to 4/6 lanes. 

The proposed 159 km long Outer Ring Road project is said to decongest the traffic snarls around the cities and cover towns such as Patancheru – Shamshabad – Hayathnagar – Medchal – Patancheru. The ORR will also link other National Highways, State Highways, Major District Roads (MDR) and other roads. The Government of Telangana has initiated a new department called Hyderabad Growth Corridor Ltd. (HGCL) to execute and supervise this project.

At TMR Group, we look forward to such developments as it boosts the real estate business in Hyderabad. With our clear title NA plots situated in most of the strategic locations around these developments, the investors and buyers are certainly in for an enormously progressive journey ahead.

Challenges and how to overcome them while buying a plot

Challenges and how to overcome them while buying a plot

Buying land is the most preferred and most reliable form of investment when it comes to investing in the real estate industry. Also, due to the outbreak of the pandemic, demand for plotted developments has skyrocketed as self-owned homes, villas, or row houses, provide better social distancing as compared to apartments. People wishing to buy land for their personal use or as a form of investment have to be aware of certain factors that help make the process of buying simple.


Paperwork can be complex owing to new terms and due to indulgence in never before like experience. However, it is one of the most significant processes to ensure secure ownership of land. The very important paperwork you’ll be needing to take care of is – Title deed. This document ensures that the seller of the property has undisputed legal ownership of the land to be sold. Having a clear title helps you own a property through an authentic process. Be it agricultural land, residential plot or commercial investment plot ensuring no unclear deeds is a must. A clear title deed once received should be checked, scrutinized thoroughly and one must not accept a photocopy of the title deed. The land must be in the name of the seller and must be checked for having full rights to sell the land. One can cross-check the authenticity of the document by running a ‘title search’ on the registration website of the state government. A lawyer can be consulted to ensure the same. Another document that helps you confirm if the land has any legal dues pending is – Encumbrance certificate. One must check the encumbrance certificate for at least 30 years. A resale certificate is issued by the bank which ensures that the seller has cleared all the loans on the property. Having this certificate improves the credibility of land being debt-free.

Land use

One of the biggest risks that buyers usually face is whether they are buying agricultural land or one which is meant for residential projects. Cities often expand rapidly with no master plan and subsume the suburbs including vast agricultural lands. Agricultural lands are usually closer to the city and are priced lower which should be alarming. So, one must check with the revenue office of the zone before one chooses to sign any land deal.

Purpose and location

Different purposes of buying land set parameters for deciding the location. One panning to build a home should strategically lock a location that is near the workplace. A farmhouse or weekend getaway home can be constructed far from the city. One planning to develop the land for commercial purposes must consider hotspots in the city. Varied structures serving various purposes demand different locations and hence one should be clear with the purpose of buying land.

Transaction obstructions

Usually, circle rates do not match market rates of the area and hence land transactions may demand high cash component. This can leave you in a challenging situation as banks may not fund the entire cash required for the transaction, in case you are taking a loan to buy land.

Lack of tax benefits

Banks offer loans mainly for residential plots located within the municipal limits; even there, they offer only 70% of the total value of the land and the buyer has to arrange the rest.

At TMR Group, we uphold the value of transparency to not just have a transaction with our customers but to build an everlasting bond. We understand the significance of legal processes and hence our team ensures that each of our transactions happens through proper guidance. Even if a new buyer is not aware of the terms and functionality, our team members spell each term for them to understand and take steps accordingly to ensure seamlessness. Having premium plotting sites at Hyderabad, we have been able to establish healthy bonds with our buyers who are getting benefitted from their association with TMR Group. Come, join us and multifold your growth journey!