Vakil Daffodils – Launched in Vakil Whispering Woods Phase 3 !

Vakil Daffodils – Launched in Vakil Whispering Woods Phase 3 !

We are glad to inform you that Vakil Daffodils, a 132 unit apartment project was launched in Vakil Whispering Woods Phase-3 in September 2015.

 

As is the norm with Vakil Housing, construction is progressing at a rapid  pace, and has  already reached upto First Floor slab stage.

Have a look at the construction photographs below:

 

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Rent Vs EMI – The Big Debate !

Rent Vs EMI – The Big Debate !

buy_or_rentFor the average Indian, a major sign of truly having arrived to success is buying a home of his own.

A common refrain heard is that “it is better to pay an EMI and own a home, rather than pay a rent and make someone else rich”.

While this argument does have merits of its own, there are certain times when paying a rent makes more sense.

If you are currently caught in the dilemma of whether to pay a rent or EMI, here is some advice that will help with the decision.

A home is definitely about being close to everything that you need to lead a comfortable life. The question of whether to buy it or rent it often depends purely on the financial considerations involved and how you handle it.

It would be prudent to get a financial advisor to help you make the right decision. If not, here is what you need to keep in mind.

Loan-EMI-Calculator1. When EMI Makes Sense Financially:

 The first factor to evaluate in the rent vs EMI debate is your financial position. You may have found the perfect house – one that is close to work and school and which has all the amenities you need for a good life close to you.

Find out the approximate price with all additional costs.

If this sum is more than 75% of what your proposed EMI is going to be, it would be a good idea to consider buying.


e39e4a0327acbf2f0ffd7dd02f26fcca2. How Much Upfront Payment Can You Afford:

In general, you may be eligible for a home loan that covers up to 80% of the cost. Which means, you have to pay around 20% to 25% of this amount upfront as your contribution.

For example, with your down payment, you will take on a loan amount of Rs 48 lakh for a Rs 60 lakh home. This would put your EMI at approximately Rs 50,000 a month, based on current rates of interest.

If this EMI is more than 40% of your monthly income, then you are better off with a rental home. Ideally, if you can pay over 50% of the value of the home as your contribution, then that it would be a good idea for you to invest, else continuing to rent is better.

 

3. PO16_BS_Lead_1_jpg_1950975fWill You Be Ready for Pre-Payment:

In an ideal scenario, you should be prepared for a total pre-payment of your loan amount within a few years of beginning it.

Keep in mind that making regular EMI payments will get you a good discount when you work on pre-payment. Work out your finances and make a projection of where you will stand a decade or so after taking the loan.

Pre-paying even a small amount of around Rs 10,000, in a reducing EMI scheme, will help you make some good savings while buying a home. This will help you make a decision on whether to rent or buy.

 

You have to remember that investing in a home is all about investing a large part of its complete pricing. Putting in only a small amount of this may lead to the banks benefitting more from the interest you pay, rather than you making the most of your investment. Similarly, if you end up investing more than you can afford, you are going to be stuck in a financial rut for a long time to come.

Take-aways:

  • Buying a home makes sense if you are able to invest at least 50% of the total value of the project.
  • Buying a home vs renting one, makes sense only if it is in line with the rent you are paying and not double that amount.
  • If your financial planning allows you to be able to pre-pay major parts of the loan over a period of time, then buying a home makes more sense than renting one.
Cancelling Your Booking and Securing a Refund

Cancelling Your Booking and Securing a Refund

CancellingIn the previous segment of this sequence titled Non-Legal Options When Cancelling Your Booking, we spoke of the non legal options through which you can cancel a booking. Here we will talk on how you can cancel your booking and get a full refund.

Naveen Thomas recently booked an apartment in the city after securing a home loan from a well-recognized bank. However, circumstances were not really in his favour and he found himself in a financial quandary. He requested his builder to cancel his booking and refund his money but was soon faced with several obstacles. As a friend in need of sound advice, he came to me and we discussed his options extensively.

Our first step was to look through his sale agreement to read clearly the clause related to cancellation. In his case, a cancellation meant that he would have to forfeit Earnest Money which was 10% of the total value of the property booked. Besides this, his builder went on to say that the money would be refunded only when he found another buyer for the apartment. The wait for Naveen was an indefinite one.

If you, as Naveen did, decide to take legal recourse, here are some things you need to be aware of:

  • Your lawyer will first issue a notice to the builder to make the refund within the stipulated time in the sale agreement. If this period is crossed, your lawyer will file a suit for the recovery of your money.
  • You can file for the recovery of money with a civil suit or file a consumer case for recovery of money with interest. A civil court case is time consuming and you are liable to pay a court fee. A consumer court may get your redressal quicker.
  • Besides this, in a consumer court case, you are also eligible to file for interest on your booking amount as well as monetary compensation for the distress you have undergone.
  • If you have paid stamp duty, registration charges, VAT and service taxes during the course of your transaction, you will not be able
    to claim a refund on this.
  • Ensure that all correspondence between the builder and you in relation to a refund is completely vetted by a lawyer.

You have to understand that legal recourse can take a long while and even then you will receive your money only after deductions have been made. To avoid getting into a sticky situation as far as cancellation and refunds are concerned, you will need to keep some pointers in mind:

  • Read the sale agreement multiple times and have it vetted by your lawyer. Make sure that you understand the cancellation clause clearly.
  • Consider your decision to cancel your booking thoroughly. You will need a good reason to file for a refund if the builder has maintained his part of the deal. Financial trouble is an understandable reason.
  • Do try and consider all non-legal methods of recovering your money.
  • Speak with other others of apartments to see how they fare and where they stand.
  • Always ask for a clearly defined cancellation clause.
  • Never pay by cash and always ask for a receipt for the complete money paid.

Consider going the legal way only if you have exhausted all other means of securing a refund. Always have a good lawyer by your side.

Take-aways

 

  • You may file a civil suit or a consumer case against your builder.
  • The case may be long drawn and you may still have to absorb some deductions.
  • Financial distress is an understandable reason when asking to cancel a booking and securing a refund.
Non-Legal Options When Cancelling Your Booking

Non-Legal Options When Cancelling Your Booking

Cancel BookingI was recently having a chat with a friend who’s forte is real estate law. One of the most common cases she confronts is with people who are looking to cancel their apartment bookings and seeking refunds.

What makes things difficult in most cases is that there are no fixed guidelines on refunds or cancellation. Therefore, a consumer is bound to the clauses signed off in a sale agreement. It is only when the time to seek a refund comes that one tends to realize that the clauses are often more in the favour of the developer than the buyer.

As a prospective buyer, you may be sure of seeing the purchase of an apartment through. However, there may suddenly arise a situation where you may want to cancel the booking and seek a refund.

Here are certain things to bear in mind:

  • Ensure that your sale agreement has a clause on cancellation included.
  • If there is no clause in your agreement which mentions cancellation, you can still apply for one on various grounds such as delayed start on construction etc.
  • Never pay a booking amount by cash and always ask for a receipt for the complete amount paid.
  • Always ensure that your sale agreement clearly outlines what the charges are for cancellation and securing a refund.
  • If there is no agreement as such between the developer and buyer, make sure that you obtain a receipt or an allotment letter stating the booking amount with a clear mention of cancellation charges and procedures. This can be provided in the court while asking for a refund.

Here’s What a Cancellation Clause Reads Like –

The Bangalore District Consumer Disputes Redressal Forum recently ruled that if there is a delay in construction of the project or you as the buyer see no progress, then you are entitled to a full refund. However, even here, the cause for delay may be justified by the builder and you may still see a delay in refund. All cases that go to a consumer court will have different outcomes.

In general, cancellation of booking and refund charges are deducted on basis of what is signed off on in a sale agreement. This may be Earnest Money or 10% of the total value of the project, when a refund is given. To forfeit this is at the discretion of the builder, however, whatever may be the deduction you are entitled to a clear break-up of the charges.

Here Are Some Options That You Can Look Into to Avoid Going to Court

No builder would want to be taken to court over failure to provide a refund. One of the most common reasons for delay in refund is because cash from the booking of one project is diverted to another that is closer to completion. Considering there are no fixed guidelines on how to get your refund, there are a few options that you may consider or place before your builder:

  • Move your booking to another apartment by the builder, which suits your specifications and is closer to completion. This usually does not involve any deductions.
  • If a full refund is not an option the builder is providing you, then you may consider bringing in another buyer, having the sale agreement transferred into his name and securing your booking amount from this new buyer.
  • Use the power of numbers. Get more people, who may be in a similar situation dealing with delayed construction with the same project and force the builder to either complete the project or offer discounts.

In the end, you have to know that applying for a cancellation and securing a refund is based entirely on your dealing with your builder. Many cases work out in a mutually beneficial manner and quite a few take the legal route. Have your bases covered at the time of signing the sale agreement to ensure you have a stronger case.

Take-aways

  • There are no guidelines governing cancellation and refund of an apartment booking
  • Having the cancellation clause clearly spelt out will help to a large extent
  • The issue may be resolved in multiple ways without seeking legal assistance
  • Recourse may be sought in a consumer redressal forum and the outcome is on a per case basis

This is the first segment of a two blog series. In the next article we will talk of how you can cancel your booking and secure a refund. Stay tuned!

5 Simple Interior Design Features to Make your Home Look Bigger

5 Simple Interior Design Features to Make your Home Look Bigger

Own a home, but are unsatisfied with the size? While you may not be able to make a physical difference to the dimensions of your home, there are a few interior designing tricks that you may use to give our homes the feel of a bigger space.

Shubhada Ravindra, a city-based independent architect elaborates on 5 interior design features applicable to any type of home that needs to appear bigger.

1. Paints for your home

Always go in for a lighter palette of colours. Pastel shades help reflect sunlight or lighting in your home, making your space look brighter. This alone gives the illusion of your home being bigger than it is. Shades such as cream and white work really well on walls and ceilings.

If you would like to use textured paints on your walls, it would be best to stick to a neutral approach. For example, if you have a light blue shade on your wall, a texture is best added in a shade that is perhaps just a tone or two darker. Never go in for contrasting colours as this shrinks your space visually.

2. Flooring

The same principle of lighter shades applies to your flooring as well. Marble and vitrified tiles, available in a range of colours, make a world of difference to how big your home looks. Their muted presence does not draw attention and this gives the space a bigger feel.

3. Natural Lighting

As far as possible opt for wall mounted lamps in all your rooms. If your home is still in the architectural stage, then it would be ideal to have taller windows installed. Do note that taller windows are better than wider ones. Alternately, you could consider installing skylights in your home that bring in daylight. This gives your home an expansive look.

What is important is that you do not use heavy curtains on your windows. Sheer, lacy ones give you the privacy you need, while letting in all the light.

For the nights, invest in spot lights that are upturned on the wall. This bounces light off your wall, onto your ceiling and down below in muted tones. Besides the ambient lighting, if enhances the look of a space.

4. Accessories

Mirrors are great accessories to use in a small home. In a living room, place this opposite a wide window and it will reflect the outdoors. This makes a brilliant way of expanding the look of your home. If the window looks out onto a garden, then you have an added aesthetic feature to your home. If you are in an apartment, you may consider creating a planter garden on your windowsill to get the same effect.

Try to avoid covering your floor unless absolutely necessary. If you must, avoid carpets, instead use dhurries.

5. Furniture

Minimal furnishing is ideal for small space. Consider investing in nesting tables. You could also consider multi-purpose furniture, like a chest for your centre-table that also has storage space in it.

As far as possible make sure that all your bulky furniture is the same shade as the walls that it is stacked up against. If you happen to have an armoire that you would like to put up against the wall but it is of a darker shade, do try and have it painted to blend with the wall. Restrict the size and number of furniture you have in your home. Avoid cluttering to ensure your home looks big. Reduce the number of knick-knacks you have on display.

When you are looking at seating options, ensure that anything you choose has the arms and legs exposed. This makes the piece of furniture seem less bulky and it will take up less space in your home visually. If you must have a centre-table ensure it is in glass and one can see the floor through it.

In your bedroom, let the bed continue to be the focal point. Instead of side table, opt for foldable shelves. If your bedroom also serves as a working space, have a foldable study that you may also double up as an ironing table.

Giving your home an expansive look is easy enough if you follow a few of these simple tips. Go on and make your home the envy of all.