How are land loans different from home loans?

How are land loans different from home loans?

Investing your money in real estate is a milestone in your life and believe it or not, it is bound to change your life right from the next instant. It doesn’t matter whether you are a first-time investor or not, it’s extremely important to know about loans and how they ease the entire buying process for you. Buying a home or a plot of land may not seem different to most and both are usually considered as a home loan but it’s important to consider the differences while applying for the loan. Although the terms and conditions, the application processes, and the tenure of both the loans are quite similar, there are some fundamental differences between home loans and land loans. The most important factor when it comes to home loans is eligibility. Let’s check out the difference between home loans and land loans.

Home Loans 

Home loans are availed to the eligible people for the purchase of residential properties that are to be constructed in the future, or for under construction, or for ready-to-move-in properties.

  • You can get a home loan to any type of residential property in any location of your preference
  • Any resident of India and NRI’s are eligible for home loans
  • The maximum tenure of the home loan can be 30 years
  • If both the husband and wife have separate sources of income are co-owners of the property, both can claim an income tax deduction on the loan separately
  • Tax deductions can be availed for both the principal and interest payments
  • The loan-to-value (LTV) ratio is between 75% and 90% of the total cost of the property, depending on the lenders
  • Interest rates are at an all-time low ranging between 6.65%-8.00% depending on the lenders

Land Loans

A land loan can only be used to buy a plot of land that has been earmarked for residential real estate construction.

  • The location for the plot should be within the limits of the municipality or the corporation or in industrial or rural areas
  • Only residents of India are eligible for land loans
  • Land loans cannot be used for the purchase of agricultural land
  • The maximum tenure of the land loan is 15 years
  • No tax deduction for the purchase of the property, the tax deduction is only eligible for construction of the property on the plot and can only be claimed after the completion of the construction
  • The loan-to-value (LTV) ratio is up to 75% which means that 70%-75% of the total value of the property will be provided as a loan
  • You can avail of a plot loan to purchase a plot through direct allotment or to buy a resale plot, depending on the respective lender
  • The interest rates are about 0.75%-1% higher than the home loans

At TMR Group, we aim to bring promising ROIs in the shape of RERA and HMDA approved plots in Hyderabad. Our projects have precisely designed layouts in the most sought-after locations of Hyderabad that have a great potential to multiply your investments in the upcoming future. Check out www.tmrinfra.com to know more about us and our work. Get in touch with us!

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.

Source:

  1. http://dtcp.telangana.gov.in
  2. https://www.hmda.gov.in
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.

HASSLE-FREE DOCUMENTATION

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.

YOUR INVESTMENT IS SAFE & SECURE

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.

YOU GET TO EXPERIENCE COMMUNITY LIVING

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.

TRUST OF THE BRAND

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.

Why is Property Insurance so important?

Why is Property Insurance so important?

Your home is your cherished dream. You are totally invested in it, emotionally as well as financially. It is but obvious that this precious dream should be protected.

Property is a high-cost and a high-involvement purchase. Any natural calamity or catastrophic devastation such as an earthquake or a fire can destroy that asset. It can become a target of some socio-political turmoils as well. Hence, in order to protect it from such unforeseen occurrences, wise investors always ensure the security of their property with insurance.

What is property insurance?

A typical insurance plan covers for the loss and damage caused by a fire accident, theft, allied damage, or burglary. Also, you get various plans including landlord’s insurance, tenants’ insurance, content insurance, buildings insurance, etc. Lets’ explore why property insurance is so important.

There are many reliable insurance companies that offer a wide range of features and benefits to their insurance plans. These include discounts, customized options, or extra coverage.

Importance of Property Insurance

Property insurance has a number of benefits. So use your foresight and common sense and avail of this security that will save your trouble in the future.

It covers temporary living expenses

When your insured property is damaged you need to live in another house till it is repaired. The insurance covers the expenses you need for this living period.

It covers loss or damage of assets

In addition to your house structure, the insurance companies also offer coverage against loss or damage of your personal belongings or valuable assets such as jewelry, household appliances, clothing, furniture, and more.

It facilitates easy loan approval

Some financial institutions and banks give fast loan approval to those applicants who have their property insured. It is even in the eligibility criteria of some banks. So having your property insured is helpful in quicker loan sanction.

So if you are thinking of buying a property, make it a point to insure it. For your investment purpose, have a look at the property opportunities by TMR, a trusted name in real estate.

Home Loan Benefits for Women in India

Home Loan Benefits for Women in India

Indian women have expanded their horizons. They are exceling in various fields. They are setting benchmarks, inspiring people and dreaming big. The financially independent women are taking decisions for themselves and their families.

Indian women have already known as great home makers. Now they have become home buyers too, in large numbers. Considering this home loan lenders have created attractive schemes especially for women with specific benefits. Let’s have a look at them.

Lower interest rates

Interest rates for women’s loans are lower. It is a great benefit that lowers the Equated Monthly Instalments (EMIs) and saves money over the tenure of the loan.  Many banks and lending institutions offer a concession of 0.05% to 1.00% on home loan for women.

Lower Stamp Duty

Stamp duty is the state government’s tax on the property during its sale or transfer. Generally the Stamp Duty is from 4% to 10% of the property cost. Many state governments have 1% to 2% lower stamp duty for women buyers, in solo or joint ownership.

Tax Benefits

Taxpaying women are eligible to claim home loan tax deductions under Section 80C of the Income Tax Act, 1961 and under Section 24(b) of the Income Tax Act, 1961. In addition, there are other additional tax deductions that benefit women home buyers.

Benefits as Co-borrowers

Women can apply as co-borrowers with their spouses. The combined income of the couple endures higher loan eligibility. It allows the couple to select the home of their choice. They can avail tax benefits as well.

Quick Loan Approval

Data analytics has proven that women have higher loan repayment rates. So a woman’s chances of loan approval are higher. More and more women are also encouraged to be home owners so as to become self-sufficient and financially empowered.

Land is a very stable investment option that appreciates steadily but surely. It proves to be a good long term investment for women. TMR has excellent plot schemes at premium locations. With loan benefits and appreciation guarantee, women are sure to enjoy this double benefit and get rewarding returns. So are you ready to take the plunge?