Apartments in Trivandrum - Projects by various builders across locations

Apartments in Trivandrum and complete list of builders in Trivandrum by five promising locations

A recent survey conducted by the market research team of Nandanam Consultants, across 64 locations in Trivandrum over a period of two months did a deep dive of projects by various builders across Trivandrum. The locations are listed in the descending order of the number of projects on going.

You can also contact us for our comparable analysis  and feedback, which can help you compare projects and apartments across price points, quality and locations in Trivandrum. This will help you understand which projects would offer same value or appreciation at similar budgets.

Given below is the list of builders, villas and apartments in Trivandrum across the top five locations which have the maximum number of ongoing or completed projects. These locations are Kazhakoottam (Technopark), Pattom, Kowdiar, Vazhuthacaud &  Sreekaryam. 

If you are looking to buy a property (new or resale apartment) in any of the other locations in Trivandrum like Kariyavattom, Peroorkada, Poojappura, Vellayambalam and Kuravankonam, Menamkulam, Sasthamangalam, Ulloor, Vattiyoorkavu, Mannamthala, Akkulam, Kesavadasapuram etc. do contact our team for advice on ideal prices. Our matrix of 56 builders across 64 locations can pin point the projects or properties in Trivandrum that fit your criteria of budget, lifestyle and other aspirations you may have from your home.

Location: Kazhakoottam - Villas and Apartments

Builders with apartments (descending order of count of projects) in Kazhakoottam, Trivandrum: Oceanus, Favourite homes, SFS, Kristal, Skyline, Cordial, Creations, Future, SRK, Vijaya, Asset Homes, Aswathy, Big Infra, Condor, Confident, Goel Ganga, Nikunjam, Heera, Olive and RDS builders.

Total number of apartments or villa projects ongoing/completed at Kazhakoottam, Trivandrum: Approximately 30

Key Projects

• Oceanus Apartments - Oceanus Bluemount  (103 units, 1211 to 1660 sq.ft., G+ 14 floors), Oceanus Serenity (79 units, 1147 - 1440 sq.ft., G +9 floors), Oceanus Rainbow (65 units, 1613-1717 sq.ft., G + 10 floors), Oceanus Elite  (G+10 floors, 969 TO 1273 sq.ft., 77 units),Oceanus Bliss
• Favourite Homes Apartments and villas - Dream Castle, Spring Fields, Golden Cascade, Blue Nile (Villas)
• SFS Apartments - SFS Iris, SFS Cyber Palms (Silver), SFS Cyber Gold, SFS Cyber Gateway Eden
• Kristal Builders - Kristal Onyx, Kristal Pearl, Kristal Tech Park View
• Other Apartments & Villas - Heera Infocity, Skyline Domain, Ganga Constellaa,  Infranest Kazhakoottam, Confident Phoenix II, Aswathy Gardens, Creations Nakshatra, Spring Fields (Villas), Asset Signature, Condor Cyber Gardens,  Big I, Nikunjam I Park, Cordial Cyber Castle Queens

*Square feet rates across apartments at Kazhakoottam - Rs.3500 per sq.ft - Rs.4500 per sq. ft based on location, utilities, specifications and amenities.

Most home buyers would find Kazhakoottam rates to be quite affordable at this point especially in the under 50 Lacs bracket, considering the supply of new units becoming available. One could consider buying an apartment within a distance of 2 Kms of Technopark even at slightly higher value, if it can be afforded, since these are likely to appreciate much more. Rates are likely to increase in the area after 2013 if market growth kicks in again in India, due to FDI investments.

Location: Pattom - Villas and Apartments

Builders with apartments (descending order of count of projects) in Pattom, Trivandrum: Samson and Sons, SFS, Heera, Artech, Favourite, MYS, Nikunjam

Total number of apartments or villa projects ongoing/completed at Pattom, Trivandrum: Approximately 18

Key Projects

• Samson and Sons Apartments - Yellow Sapphire, S&S Block I - IV, Nova Castle 
• Heera Apartments - Heera Castle, Heera Point, Heera Central, Heera Twins
• SFS Apartments - SFS Pattom Square , SFS Mynt, SFS Maple Heights, SFS Mayfair
• Other Apartments and Villas - Artech Florenza, Artech Enclave, Favourite Dew Drops, Nikunjam Imperial Court, Pentagon Colony, Nikunjam Imperial Court, MYS Builders Pentagon Colony

Location: Kowdiar - Villas and Apartments

Builders with apartments (descending order of count of projects) in Kowdiar, Trivandrum:  SFS, Heera, SI, KGS, Nikunjam, Prime, Samson and Sons, Mansions

Total number of apartments or villa projects ongoing/completed  at Kowdiar, Trivandrum: Approximately 16

Key Projects

• SFS Apartments- SFS Fairway, SFS Kingswood, SFS Palace Court, SFS Wimbledon
• Heera  Apartments- Heera Grace, Heera Velmont 
• Other Apartments and Villas - SI Amrith Dale, SI Belhaven Gardens, Mansions Serene Square, Mansions Sanskriti, Prime Properties Blooms (Villas), Nikunjam Fortune, Samson and Sons PR Enclave, KGS Kowdiar Gardens

Location: Vazhuthacaud - Villas and Apartments

Builders with apartments (descending order of count of projects) in Vazhuthacaud, Trivandrum:  Artech, Heera, Astride, Condor, Mansions, Powerlink, SFS

Total number of apartments or villa projects ongoing/completed  at Vazhuthacaud, Trivandrum: 15

Key Projects

• Artech  Apartments- Artech Centrix, Artech City Meenakshi, Artech City Kalyani, Artech TN Samruddhi
• Heera Apartments- Heera Grand Villae, Heera Gate, Heera Park
• Other Apartments and Villas - Astride CSM Enclave,  SFS Fairmont, SFS Melody, Condor Marigold, Mansions Nina Residency, Powerlink Panera, Cordial Shroffs

*Square feet rates across apartments at Vazhuthacaud - Rs.4500 per sq.ft - Rs.6500 per sq. ft based on location, luxury, utilities, specifications and amenities.

Location: Sreekaryam - Villas and Apartments

Builders with apartments (descending order of count of projects) in Sreekaryam, Trivandrum: Heera, SI, Artech, BCG, Big Infra, Chevron, Desai, , Kristal

Total number of apartments or villa projects ongoing/completed  at Sreekaryam, Trivandrum: 11

Key Projects

• Heera Apartments and Villas - Heera Dreams, Heera Towers, Heera Vastu Hills (Villas), Heera Gardens (Apartments and Villas)
• Other Apartments and Villas - SI Endura, Artech Alliance, Kristal Sapphire, Desai Diamond District, Chevron Rivulet (Villas), Big Exotica, BCG Horizon

Trivandrum Real Estate 2012 - Apartments in Kazhakoottam, Kerala

Property, Projects, Real Estate Trends and Price analysis of Apartments in Kazhakoottam, Trivandrum, Kerala

A recent survey conducted by the market research team of Nandanam Consultants, across 64 locations in Trivandrum over a period of two months, analyzed the following trends in each of these small micro markets in Trivandrum. 

Our survey methodology included focus group discussions, email, telephonic interviews, questionnaires, and meetings with reputed developers who operate out of these micro real estate markets in Trivandrum. We used regression and statistical modeling methods to arrive at a cause effect relationship and understand the underplay between factors that affect property prices in the Kerala and specifically the Trivandrum real estate market. What follows below is an executive summary of the property trends at Kazhakuttam and areas surrounding Kazhoottam. For an indepth understanding of Flats on sale at Kazhakoottam, buyer feedback, price determinants in Kazhakoottam, builder reviews in Trivandrum, and apartments in Trivandrum, please reach out to the Nandanam team.

About Kazhakuttam - Source Wikipedia

Kazhakoottam (Malayalam: കഴക്കൂട്ടം) is a locality in Thiruvananthapuram city, the capital of Kerala, India. It is located on theNational Highway 47 on the way to Kollam from the city, and has gained in significance because of proximity to Vikram Sarabhai Space Centre, and, Technopark,the IT center which is the first and largest of its kind in the country. The Sainik School is also situated in this area. Kazhakoottam is the first ward of Thiruvananthapuram Corporation.

Our analysis of the Kazhakoottam, Trivandrum real estate market covered the following aspects: 

1) Evaluation of new and ongoing projects by developers and builders at Kazhakuttam in Trivandrum. 

2) Forecasting calculations on the number of units being created afresh and that are outstanding to be sold at Kazhakoottam based on available market data.

3) Survey of home buyers who purchased flats at Kazhakuttam or those who took houses on rent in the Kazhakoottam market in the past one year and their feedback on rents, price and overall living conditions at Kazhakoottam.

4) Analysis of Flats for Sale at Kazhakoottam and the average sales value of Flats in Kazhakootam per sq.ft.

5) Occupancy levels on apartments in Kazhakoottam area and factors affecting home rentals and occupancies.

Flats for Sale at Kazhakoottam, Trivandrum

Our team looked at existing and ongoing or recently announced projects at Kazhakootam with a focus on the 2011-2012 time frame. Of the total of over 250 projects which are under construction at the moment in Trivandrum, Kazhakoottam has a pie of 30 projects which is about 12.5% of the total construction activity in Trivandrum. That's a massive number for a small city like Trivandrum which means that out of a total of about 35,000 units which are under construction all over the city, approximately 4000 units are coming up at Kazhakuttam. 

Occupancy levels, Rentals and Sales Price of Flats at Kazhakoottam, Trivandrum

Our forecasts based on samples collected, showed that on an average, units which are within 1.5 to 2 km radius of Technopark or Infosys campus at Kazhakootam, recorded occupancies higher than 75% which means that there is a real demand for apartments in close proximity to the IT hubs. Results also showed that factors like amenities present, nearby schools, quality of homes also played a role in occupancy levels. Outside the zone of 2 Kms to the IT hubs, occupancies varied with a negative correlation to distance from the offices as well based on values of flats. Luxury flats above 1cr, showed less occupancy indicating that some where bought for investment purposes. Highest occupancies was usually for 1 or 2BHK apartments at Kazhakootam. Luxury housing was usually preferred by senior management of IT companies with employees at mid and junior levels going for 1 or 2BHK options. Employees from companies such as TCS, Infosys, Oracle and US Technologies formed the majority of occupants at flats near Kazhakootam, Trivandrum

Historical Sales values as per data collected by us for flat and home transactions from 2010 -2012 showed that, compared to earlier trends, currently Kazhakootam offered deals to home buyers in the 40-65 lacs range predominantly for apartments. The area had property values at 2500 per sq.ft in prime locations prior to 2008, but has crossed over to 4500 per sq.ft. for these properties as we enter 2011-2012.

Rentals varied with property and ranged from Rs.8,000 - Rs.17,000 for 1BHK or 2BHK apartments based on proximity to Technopark, area in sq.f.t, furnishing in the apartments, closeness to utilities and amenities offered.

Size of the Units of the Apartments on Sale at Kazhakoottam, Trivandrum

For a majority of 4000 units coming up at Kazhakootam, the average unit sizes are 2 Bedrooms ranging from 910 - 1100 sq.ft. with a median of 950 sq.ft. Most of the units tended to be over 1000 sq.ft. and developers  in Trivandrum seem to have gone for this as a benchmark when designing and architecting the units. Kazhakootam also offers units across the 1BHK and 3 and 4 BHK ranges, the former with single bedrooms and the latter catering primarily to the affluent sections with prices ranging from 60 lacs to 1cr+ for some apartments.

Developers and Builders at Kazhakoottam, Trivandrum

Interestingly over 19 builders out of the 56 builders (i.e. about 33%) in Trivandrum seem to having an eye on the pie at Kazhakoottam in the list of 30 projects coming up, showcasing that no one wanted to miss out on the real estate action there. The underlying effect seems to be a hungry scout for lands in the Kazhakootam region for these projects and price escalations of even 100% for lands in areas with close proximity to Infosys and Technopark in the last one or two years.Our survey also showed that no single developer was willing to put all eggs in one basket and barring a few, none of the developers had 3 or more projects underway at Kazhakootam, with most focussing on a single apartment or villa project at Kazhakoottam. 

Developers with projects underway at Kazhakottam (with respect to number of projects in descending order are): Oceanus, Favourite homes, SFS, Skyline, Cordial, Creations, Future, SRK, Vijaya, Asset Homes, Aswathy, Big Infra, Condor, Confident, Goel Ganga, Kristal, Nikunjam, Olive and RDS builders.

Luxury Real Estate - Villas and Apartments on Sale at Kazhakoottam, Trivandrum

Going by the true definition of luxury real estate at Kazhakootam, few of the projects completed and very few ongoing had amenities which could fit the bill to enter into the real luxury segment. SFS Cyber Palms project took the icing on the cake across all the projects, not only with CRISIL 7 star ratings, but with home buyers in the property expressing extreme satisfaction on their purchase, amenities offered and real estate appreciation.

The property also earned 8 out of 10 credits in our survey with existing lessee's in the project, interested in buying homes if available at reasonable prices in this project. Some projects like Heera Infocity, SFS Cyber Palms, Big  Infra and Asset Signature, seems to have earned significant mind-share of prospective home buyers who are looking for an investment in the area, and many were ready to pay extra to buy their next property if available at a good price in one of these four projects.

Assessing risk of buying projects in Kazhakoottam, Trivandrum

We are constantly faced with uncertainty, ambiguity, and variability especially for home and real estate investments. And even though we have access to information, we can’t accurately predict the future. Monte Carlo simulation (also known as the Monte Carlo Method) lets you see all the possible outcomes of your decisions and assess the impact of risk, allowing for better decision making under uncertainty.

We used Monte Carlo simulation and other techniques available with statistical tools to estimate risks to a home buyer based on property trends and price values in Kazhakoottam, Trivandrum and comparing it with the Trivandrum and Kerala real estate market. The risk quotient varied significantly based on timeliness, price ranges and depending on if the property was being bought for investment or stay purposes. Overall it showed that Kazhakootam may not be ideal for an investment in a second flat since projects were getting delayed due to lower number of transactions in the last year or so and also due to a slow growth phase in the IT sector. Our real estate agents and experts point to looking for value deals at Kazhakoottam, and making prudent decisions based on location, services, quality and delivery. You can also contact us for our comparable analysis which can help you compare projects across Trivandrum which might offer same value or appreciation like Kazhakootam at similar budgets.

Summary of our analysis for home buyers at Kazhakoottam, Trivandrum

For those home buyers who entered and bought properties at Kazhakootam, in the pre-2010 time especially 2006-2010 phase, seem to have got good value for money for their investments, especially if the projects were from reputed builders, and were completed in the stipulated time. Some buyers expressed their deep dissatisfaction with a few builders who handed over projects 2 to 3 years later than promised. Our advice would be to talk to a reputed real estate consultant, especially if you are keen on Kazhakootam and are looking at the existing inventory available there. For all you know, there might be a couple of great deals for you to invest in at Kazhakootam!

To remain updated on the trends in the Kerala and Trivandrum real estate market, connect with us on Facebook

Luxury amenities in the apartment market. What do you aspire for?

Snapshot at Lodha Bellissimo Mumbai

In India the useful life of an apartment is about 30 to 40 years as per most studies by experts. This is primarily due to the climactic conditions prevailing like humidity, temperature fluctuations etc. which have a significant effect on the the reinforced concrete and steel, the building blocks of an apartment building. 

Take the case of Japan. Building regulations and new techniques, ensures that life of apartments there could run over a 100 years and stand the rigors of earthquakes, floods and other natural calamities. Today with green buildings and modern construction techniques coming into the fray, we can expect future apartments to last over 70 to 80 years, which would be the ideal scenario in India.

When it comes to apartments, most builders advertise their properties as luxury apartments.To demystify, what luxury could really mean , we try and segregate options that builders provide in apartments into 3 different categories. If you are a traveller, you might have heard of 3-star, 5-star, 7-star etc for hotels. However in the case of luxury properties, no real segregation is in place today.

We hope this categorization of Super Luxury, Essential Luxury and Basic Luxury, will help you understand what your luxury apartment should ideally be like:

Super Luxury

1. Design inspired by Worldwide designers e.g. Hiranandani Horizon, Bangalore
2. Prime Location overlooking a prime road or a business center e.g. MG Road
3. Premium concierge services like Quintessentially for apartments e.g. Lodha Bellissimo, Mumbai
4. Full Home automation

Essential Luxury

1. Internal and External Bar
2. BBQ Area
3. Golf Course
4. Lake or Sea Facing
5. Private Theatre
6. Yoga or Aerobic Studio


Basic Luxury
1. Gymnasium
2. Games Room
3. Swimming Pool
4. Squash and Tennis courts
5. Children's Play area
6. Landscaped Garden

So why would you invest in a super luxury apartment? While some of these super luxury apartments in Bangalore for example run into 3 or 5 crore rupees on launch, there have been examples where within a few years the square feet rate has run into 33,000 sq.ft after construction of the property is complete. This means a 3000 sq.ft. 4 bedroom flat runs into approximately 10 crore rupees. In Trivandrum or Kerala for that matter, apartments of the kind Super Luxury really do not exist at the moment. A vast majority would fall into the Basic Luxury or a handful in the Essential Luxury category.

When you choose a Luxury apartment where you aspire to live, do look for the credibility of the architects, designers and the builder and their track record of luxury apartments. After all you want the promises to be delivered as well.

The Pre-Launch property game. Proceed with caution.

What is a Pre-Launch project

A pre-launch project is one for which either the entire land has not been acquired (that is, the developer does not have full legal sanction of the title), or clearances (like licences, land conversion and site plan) have not been obtained, or both. Developers are allowed to launch a project only after all clearances, and full ownership of the land have been obtained. But when a developer cannot raise the entire amount needed to launch the project from internal accruals or equity, he turns to private financiers, investors and end-consumers by 'pre-launching' it. He works on the premise that full legal sanction will come through by the time the project is ready.

Techniques used by Developers

The marketing technique used in a Pre-Launch project is quite simple. It is "Enter Early and Buy Cheap". The temptation and carrot offered by the developer to a customer mostly are:

1. You get to choose your site or apartment you want to live in before everyone else. So you can choose the right floor, best view, road side etc. etc.

2. You get the best rate possible for the property only now

3. The pre-launch rates would only be valid for about 3 months and then rates could be up by 200 or 300 rs. per square foot.

From the developers point of view , every four to six months, as the approvals trickle in, he can keep hiking the prices. Post full legal sanction he can launch the project and by then he has enough bookings in his kitty.

Perils of a Pre-Launch project

One of our customers, brought a project called "Salarpuria Senorita" in Sarjapur Road, Bangalore in 2010. The Project was in Pre-Launch. Salarpuria being a reputed builder, put up huge sign boards at the sight of the property and hoards of people walked into enquire. The project was being offered Rs.300  per square feet lower compared to launch (which was scheduled 4 months away). The promise was some one who books now, would get about Rs. 5 to Rs. 10 Lacs benefit depending on final price and size of the unit. The booking amount for pre-launch was Rs. 5 Lacs.

As the story goes, despite waiting for one year, the project was not launched. The person's money was stuck because in the interim other builders launched projects and he did not take the money back in the hope that Senorita project would launch. Salarpuria finally returned back the pre-launch booking money with bank interest, leaving the person in question flummoxed and exasperated.

This is typical of most pre-launches which do not take off. Six months would already be gone by the time you realise that the promises are not being kept and the construction is not happening as promised. By then, you would have sunk in between Rs 5-15 lakh . If you buy a plot in the pre-launch stage and the project is shelved, the only exit route is to approach consumer forums or courts, unless the developer returns the money. The riskiest move is buying into a project for which the developer has not acquired the entire land.

Checklist to avoiding perils in the Pre-Launch game

1. Check the title deed. Reputed and credible developers start the project only after acquiring 100 per cent of the land and will not shy away from showing the title deed

2. Look for the developers residential housing track record.

3. Be proactive and pull out if you start getting feelers that the pre-launch project is not going to launch in 4 to 5 months or if developers keeps giving excuses that approvals are coming shortly.

Onam, Kochi Metro and Emerging Kerala expected to usher in property appreciation in Kochi real estate market

As Malayalees get set to celebrate their most awaited annual festival of Onam in the end of August, real estate developers in Kochi are the most anxious as well as exuberant. In stark contrast to the property correction which has been witnessed in Kochi over the last one year, developers believe that the gloom prevailing over the sector  will soon fade off and prices would again rise by 15 to 20% after Onam due to the triple bonanza - Onam , Emerging Kerala and the Kochi Metro launch.

In anticipation of a rise in price and demand for property near the Kochi metro stations, most developers have already bought parcels of lands in the proposed vicinity of where the stations have been announced. We had mentioned earlier why improvement in accessibility to mono rail or metro or LRT augments the real estate prices within a radius of 1-2 Kms of the station.

The end of Karkidakam masam and the onset of Chinga masam is considered an auspicious time for Malayalees. Most marriages, new business launches take place in this season and it is also an auspicious time to register a property. So Malayalees who are on the look out for property at the moment in Kochi, might be spoilt for choices by many developers. Developers also are hoping to close many new bookings in the Onam season and are preparing welcome bonanza's and discount schemes for home buyers. The key trend that is beginning to emerge however is that after the NRI driven demand, Kerala’s real estate market is now slowly turning in favour of the working class with a gradual shift towards the affordable housing segment.

Since common sense states that most users of the Kochi metro will live and breathe in the city, (than an NRI who would sit abroad), the demand for housing in areas near the metro station is expected to be real and measurable. There is a growing belief that the correction seen in the Kochi real estate market over the last many quarters, might be the prelude to a phase of stability in property prices.

In the interim some malls like Abad Nucleus at Maradu have also started selling individual shops, which is seen to be a new trend in the real estate sector. As per CREDAI Kerala, "Building rules which were amended three years ago, is the main reason behind the collapse of real estate sector in the state. Because of over supply, 40 per cent of residential properties have not been sold.In 2008, 10 new projects were announced in a month but now only one new project is announced in six months. In Thiruvananthapuram, the most happening place in real estate in the state, the property prices have doubled in 4 years."

For the sake of the investors, the developers and those aspiring to own their home in Kochi, we hope the predictions come true and the prices reign in, in Kochi and other parts of Kerala and offer stability.

Onam 2012, can then finally be one to savour and remember!

7 factors which determine the value for your property - Proven by research

Research studies conducted across the world, especially in developed economies, have used multiple methodologies to determine real estate values and the parameters determining it. The most popular among these is the hedonic model which ascertains value based on the distance from the central business district (also referred to as CBD), access to light rail transport and expressways amongst many other variables. The formula given below, shows the price function in the Hedonic regression model as a combination of factors like structural characteristics (s), neighbourhood characteristics (n), and environmental characteristics (e).

Price Function (P) = f (s1, s2, s3...sj; n1, n2, n3,...nj; e1, e2, e3,...ej)  Source:Wikipedia

Drawing from some of the best research worldwide, we list down seven critical attributes which have been proven to affect property values: 

1. Access to Light rail transport (LRT) - 'Al Mosaind, Dueker and Strathman' claimed a positive correlation between distance to LRT and property values. They argued that properties which were within 500 meters of the LRT got a much higher value, since it improved citizens accessibility to CBD and other job areas within the city. A perfect example is the monorail development within Trivandrum which could improve access to the CBD for the smaller suburbs and amplify real estate rates in areas which are in the vicinity of the proposed station. The correlation with accessibility seems to become void if the property is more than 1.5km away from the station of interest. 

2. Distance to CBD - A study done in Ohio (United States) for a period of five years and another done in Sydney (Australia) point out that distance to CBD is a critical determinant of real estate prices. Most researchers argue that this variable is more critical than accessibility mentioned above,although positive correlation does exist for the latter. However as cities become poly centric with multiple CBDs instead of being monocentric, real estate prices would be determined with respect to proximity to a particular CBD in the zone or the suburb. At present only MG road could be considered as the central business district within Trivandrum with a majority of banks, retail and business houses located in the area. With new retail and business hot spots emerging at Vellayambalam, Pattom and Kazhakuttam, new CBDs could emerge within the next decade in a poly centric model within the city and change the real estate pricing pattern. 

3.Clustering - As per the spatial distribution phenomenon, properties of a similar value appear clustered together than widely spread out. 

4. Promixity to Highways and Expressways - Properties located upto 2kms from major highways and expressways showed a much higher value and appreciation across many global studies. 

5. Proximity to Regional Shopping centers - Research has also shown than real estate which is in proximity to malls, and other regional shopping centers are more expensive than rest of the sample. At the same time, properties located too close to the shopping units saw a drop in real estate rates due to higher levels of noise, pollution and crowding on the streets. The buffer zone was usually about 2kms from the shopping area, within which, the prices seems to be lower due to above factors but increased incrementally after that. 

6. Comparable Sales Approach - 'Can and Megboulougbe' in their research proposed the comparable sales approach wherein they said that price history in the immediate neighborhood of the given property will have a spill over effect on the given property's market value. The lesser the distance between the anchor property (which got sold at a higher price) and the given property, the more the impact on the value. This correlation seems to nullify if the anchor transaction happened before six months or if the anchor property is more than 2kms away from the given property. 

7. Structural attributes - This refers to the size and type of the property. International research concludes that number of bedrooms and washrooms tends to have a positive effect on the property value given that all other factors are the same. Strucutral attributes by itself pales into insignificance if spatial parameters mentioned above are not favorable for the given property. Centralised air conditioning and even presence of senior citizens in a property tends to more propitious as per research. 

In summary a host of factors typically decide property rates and you can get a realistic approximation of value based on these. Since studies of a similar nature spread across many years have not yet been conducted in Kerala or for that matter Trivandrum, the true sense of if any of these seven factors have a particularly significant influence for real estate in the city is left to be ascertained. These 7 factors could act as guiding principles in helping you choose your dream home or property in the Trivandrum or Kerala market.

Don't get carried away by a sample flat

Although seeing is believing and experiencing your new home through a sample flat might be a pulsating experience for a home buyer, there are fallacies with this approach. A sample flat is one of the marketing techniques used by builders to convince customers of what they can expect when they get to live in their proposed house. To the buyers misery, not many are aware of tricks which could be used by builders in the sample flat. The marketing practice itself is not wrong and is more effective than traditional brochures or websites or emails from the builders point of view.

Factors to be considered while seeing the sample flat

1. Sample flats outside of the original property - A sample flat constructed outside of the original property could be deceptive. Most builders use the first floor of the property to showcase the sample flat to customers. A sample flat outside of the property might offer two or three balconies, great views and look more spacious than the one which you are planning to buy, which is not standalone but in a bigger apartment complex.

2. Great interiors - Sample flats usually come with exquisite looking furniture, well finished walls and paintings. More often than not your home won't come with the same embellishment or you would end up paying for the upgrade. To supplement this, the lighting and other artistic wall hangings used in a sample flat improves the aspirational value of the flat in the mind of the buyer. Some builders might even choose furniture sets which fits just well enough in the given space, so that it gives a feeling to the buyer of having enough space within the apartment

3. Thinner walls - Walls made of out wood or even gypsum boards could be used in sample flats which gives an impression of higher floor space. Gypsum which is used in the cement industry as a retarding agent, can also be customized in making the wall finish much more superior compared to cement plaster.

4. Taller ceiling - A sample flat could also look bigger when it comes with a taller ceiling compared to the original flat.

Nevertheless customers don't have much of an option since most of the sample flats are demolished before construction begins. And builders can put terms into the sale agreement that specifications might change later.

Ways around getting deceived by a sample flat
 
1. Look at 2 or 3 properties from the same builder to get an idea of the overall finish

2. Look for builders who offer sample flats in the apartment complex than outside so that it is more realistic

3. Don't be mislead by the aesthetics and interiors of a sample flat. Use the sample flat as a reasonable guide to how your home might finally be. To get a clear picture of your flat, look at the architectural drawing and layout plan and discuss with the builder to avoid future disappointment.

4. If you want to factor in the looks of the sample flat into your own flat, prepare a cost estimate for the same or consult an interior design firm or a real estate consultant privy with the matter.

Why developers and owners prefer joint development for residential projects

Own a sizeable portion of land that you are looking to sell and make money? Wait. Have you considered JDA or Joint Development. JDA is one of the best options available if you own a large piece of prime land in the city and are looking for prospective buyers. It could even fetch you higher than market rates, provided you get sound advice on the JDA process and get things right. More about JDA below.

It is fairly common to see developers and builders enter into development related arrangements with land owners rather than making an outright purchase of the land identified for their project. Paucity of good parcels of prime land is one of key reasons developers go for such joint development through out the country.

Land owners may grant rights to develop their land under an agreement entered on mutually agreed terms and conditions. The development rights itself can be granted in three different ways, such as by a joint development rights agreement, sole development rights agreement and through a development services agreement. Joint Development is the most popular amongst these.

As described in Mint  "In a joint development rights agreement, the owner provides the land free and clear of all title defects and encumbrances, and undertakes the development of such land along with the developer. In such arrangements, the land owner continues to own the land and shares the responsibility to develop the building project along with the developer. " The land owner and developer can either agree on sharing revenue out of sale or lease of the built-up space or owning the built-up space in an agreed ratio.

The Supreme Court of India has given concurrence to this proposition in the case of CAT v. Fazalbhoy Investment. In this case, the court held that there exists a concept of dual ownership in India wherein one person can be the owner of the land and another person can be considered the owner of the structure on that land.  From the land owners point of view, a JDA enables an individual land-owner to cash in on the skyrocketing real estate prices, but at the same time, it also helps him/her to retain a portion of the land/property for his/her own use and living.

If you are looking at entering into a JDA, you must pay due attention to aspects like Service tax and Stamp duty, otherwise you may land yourself in trouble while parting with your land.

Two brand new ready to occupy apartments in Trivandrum

Keeping in mind that many of our customers look for ready to move in properties we present two properties here by SFS which are ready to move in currently. One at Vellayambalam and the other near Technopark.

SFS Cyber Gold at Technopark has 1 & 2BHK apartments available for purchase ranging from 687 to 1192 sq.ft. Cyber Gold has some of these amenities like Designer entrance lobby,Fitness centre, Swimming Pool and Kiddies Pool with changing room & toilet,Recreation Multi-purpose hall, Independent letterbox for each apartment, Beautiful landscaped premises, Intercom in apartments,lifts, caretaker room,and security cabin,Care taker room & Security cabin, Proximity sensor entry card & Sewerage treatment plant.

SFS Grande at Vellayambalam has 2 & 3 BHK, ready to move in apartments available for purchase ranging from 1305 to 2027 sq.ft. SFS Grande is the first green building registered in Trivandrum with IGBC. SFS is currently running a promotion for customers to visit these ready to move in apartments even in the evenings!

Property Sales Slump as NRI's lose faith - Our analysis and recommendations

We picked off on the same subject line which Economic Times came out with on July 16th 2012 about a nose dive in property investments by Keralites who are NRIs.  You can read the full article here: http://articles.economictimes.indiatimes.com/2012-07-16/news/32698366_1_property-sales-property-prices-nri-investment.

We also post our analysis and recommendations on the basis of the article below.

ARTICLE SUMMARY (Source: Economic Times)

1. NRI's account for 70% of the investments in real estate in the State and this has come down by 40% in the last three quarters.

2. Sahara, DLF, Unitech, SRK have delayed their projects or cancelled their launches.

3. Key reasons for lack of interest is pointed out to be long delays and as per the article a staggering 70% of the projects in 2700 to 4000 square feet bracket are delayed by upto 2 years. There are 10,000 such properties.

4. People are investing in projects which are nearing completion to remain safe with their investments. There is also an example of an NRI investor who put in 70 Lakh in 2005 and is still awaiting possession.

5. Wait and watch strategy by NRIs in the hope that property prices would come down or investment in asset's which give return of 8-9% and are relatively safer. 

6. Small builders are more affected due to working capital requirements not being met

OUR ANALYSIS

A careful second look at the article and a root cause analysis will give you little more insights into what is the real cause behind the problem. We take up one at a time.

Lower Investments
A drop in investments in the last three quarters in the real estate sector is not just typical of the Kerala market. A global economic down turn and less money in the global system and even people losing jobs in markets like Abu Dabhi & Dubai are reason for the same. A sceptical personal future outlook means people want to stick on to their money than invest in real estate. However if you look at the broader picture of the boom - bust cycle, investments tend to work cyclically and you might see most of the world at a peak again  in the next 4 to 5 years. Kerala and Trivandrum are particularly ranked as highly competitive and good cities to invest in by most real estate surveys which were done this year and in 2011. Hence the opportunity is still quite good to invest in real estate as the fundamentals of the Indian economy are still good although GDP growth rates have slowed from 8% to about 5%.

Delays by Larger Builders
Delays and cancellations by larger builders are not just typical of Kerala. There have been huge drops especially by large builders in cities like Mumbai and Delhi. Please read more here on an article published in July 5 on Hindu Business Line. House sales slump in Mumbai due to oversupply. The article mentions that developers have been more open to negotiation in the premium segment, reducing prices upto a maximum of 25 per cent. What we would like to highlight are the fact, that as mentioned by us already real estate is a high leverage business. Groups like Brigade could take loans of upto 300 crore for a Villa project from banks at the prevailing interest rate. When supply overtakes demand, developers tend to slow down on the construction to keep the costs low, since they would want to sell their unsold units. This is particularly evident in the highly valued segment. Often larger builders take up larger projects or announce them in advance to garner market attention or even for share price escalation. However when their earlier projects in cities like Mumbai or Delhi get stuck due to lack of demand, they are bound to cancel their existing plans or put them on hold. We believe the reason for cancellations are also due to undercurrents across India and not just due to a lack of demand in Kerala. Larger builders having a stake in projects across the country will take a look at their working capital as a whole before committing to new projects.

Premium and Luxury properties
The point to note here is that 10,000 properties mentioned here are premium or luxury properties since a typical 3BHK house does not exceed 2000 SQ. FT. in any apartment. A 2700 to 4000 bracket indirectly refers to the Villas segment or the 4BHK or Duplex or Penthouses which usually come in that range. In most villa projects especially by smaller builders the number of units are less and hence cost per property and eventually the risk of completion per property is higher. Thus delays could predominantly be attributed to the premium or high value segment above 1crore, since a 70 Lakh investment in 2005 is equivalent to a 1.2 crore rupee investment in today's time. The real delays have not been reported in the budget or larger chunk of the market which is under 60 lakhs range.

Wait and Watch Strategy
In the world of economics wait and watch has never really worked. Warren Buffet invested and bought 5% share in Gold man Sachs when the market was in a bust. Facebook become a 100billion IPO after the bust cycle and Google came out after the 2001 bust. So investors who prudently invest always tend to make more money than others who wait. However investment has to be done with caution and awareness especially since what you want to do is multiply your investment and get a handsome ROI in 5 to 6 years or longer. We believe that since real demand is there in certain sections of real estate in Kerala, investing prudently with sound advice will not leave you in a state of worry.

Small Builders
As advised in our earlier few articles in this blog, you really need to watch out for the builder and take care of a few factors for new launched properties which deter buyers. For small builders their leverage, track history, ownership and other financial commitments need to be looked at before deciding on a property. Sound advice usually would deter you from a faulty investment and keep you away from fraud.

Our recommendation from the above analysis, is not to feel disgruntled but to really build awareness about what you are putting your money into before making the decision. Builders can easily do marketing events or road shows or boast of things on the internet, but it is for the investor to come to a decision on what he or she wants to buy.

If you are interested in buying a property in the premium or luxury segment above 1crore, there are special advisory services which cater to your need ensuring you can be rest assured of a safe investment. Without proper advice and by just going by hear say, you always run the huge risk of your money stacked up in a real estate investment with zero returns.

Floor area reduction for residential apartments

The Kerala Municipal Building Rules govern the floor area for residential apartments. Floor area ratio is the ratio of total floor area of the building which is proportionate to the area of the plot. This is subject to satisfying other conditions such as parking, setbacks, access width etc.

For example if a plot measures 25 cents (approx. 10886 sq.ft) and the F.A.R. permissible for that area is 2, then a maximum of 21772 sq.ft of space will be permitted to construct in all floors of the building put together. will be allotted to construct all floors of the building put together.

Town planning schemes mandate different FAR values for different areas and a 40 per cent of the total land should be left free. F.A.R. values mainly determine the density or intensity of development of an area. Hence different F.A.R. values are prescribed for different locations in development plans.You can read more about town planning & F.A.R. here: Kerala Town Planning. The concept behind the FAR is to ensure adequate open area on a plot for high-rise buildings. The open area will not only be a blessing to the occupants of the building and the neighbouring community

The usage of land for construction has also been limited in proportion to the increase in number of dwelling units. Thus, only 55 per cent of the land can be used for a building having 51 to 100 units; 50 per cent for 101 to 200; and 45 per cent for 200 units and above. Also the access width for a high-rise building to roads is seven metres for 25 flats; nine metres for 50 flats; 12 metres for 75 flats; and 15 metres for 100 units.

The FAR limitations have made builders scout for more land for projects, leading to a spurt in the prices of apartments. These limitations force the builder to restrict the number of flats in a complex. Builders feel that the changes have a negative impact on the real-estate sector.

Our unbiased and unparalled feedback on builders in Trivandrum

Hi Folks,

Going by our mission of giving utmost, unbiased and complete information about developers in Trivandrum, we have launched a page about builders in Trivandrum. Knowing about a builder, their financial leverage, their past track record and their construction quality is important to have piece of mind as a buyer.

We would feature all the builders in Trivandrum in upcoming blog posts in this section and we welcome your comments, feedback and experiences with various builders. We believe this will become a forum for customers to know, understand and review the builders before they commit to a project, so that they are aware of the pros and cons.

This is critical especially if you are new home buyer since most buyers just know about reputed builders,  but not many know about the new ones. We would like you to avoid cases like what happened with Apple a Day project and avoiding fraud when you end up buying real estate i.e apartments, villas or land in Trivandrum.

Nandanam Research Team

What deters home buyers from newly launched properties?

Today, we see an increasing trend in the market towards ready to occupy projects. To understand further we looked at one of the recent surveys done by Track2Realty across 10 cities. As per a the survey done in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Kochi, Ahmedabad, Chennai, Patna, Pune and Chandigarh  following were some of the reasons why home buyers in India, prefer ready to move in flats. You can read more here.

Possible reasons for preferring a ready to occupy property

• Delay in the delivery is cited as number one reason to book a new launch by almost all the home buyers
• Default in design, construction quality and fear of faulty construction
• Nearly eight out of ten, say they have not got what was showcased as the sample flat.
• Lack of amenities like the water splash as the swimming pool, clubs being no more than cafeterias and under-equipped gyms etc in their housing project
• Home buyers prefer ready-to-move property because they can avail for tax benefits only after the possession of the house.
• Immediate relief on rent and EMI is cited as one of the main criterion for choosing a property worth possession.
• Possible artificial demand in a new launched project and after 12-24 months, prices can be realistic, if not outrightly downward.
• Anxious to make sure who their neighbours would be and the overall community profile of the apartment.

As per our analysis and understanding of the Trivandrum real estate market, most of the reputed builders like Skyline, SFS and Artech who have a history of project completions on time, don't deal with issues 1, 2 and 3 which are the primary concerns for a home buyer.  For new builders one needs to be a little bit more cautious and ask a real estate consultant on their specific requirements from the property and assess if it is the right decision. Areas a real estate consultant can look at include: 1) Financial leverage 2) Clear documentation 3) Approval from banks 4) Contractors who are constructing the project (this could be different from the builder) 4) Getting feedback on existing projects.

With regards to artificial demand, there are examples of that in the market. For e.g when DLF launched its project in Bangalore there was a huge demand for real estate space and then there was a slump which made DLF cut the prices ultimately. However what we find is that real demand truly exists in most places in Trivandrum especially within the city like Vazhuthacaud, Kowdiar or even MG road. Hence an investment with a good builder in an area within the city should allay most of the concerns of home buyers. For those who still have questions should seek help and trusted advice of a consultant.

About our story - Nandanam Consultants

Nandanam Real Estate Consultants was pioneered when our founder, Mr. K Ramachandran Nair came across the fact that most of his friends and relatives were finding it difficult to single out a particular property in Trivandrum within a short span of time at a good price. Mr. Ramachandran, ex General Manager, Finance of  Asianet Satellite Communications with over 40 years of industry experience across a wide variety of sectors used his experience in marketing, strategy and finance as the cornerstone of advisory services on real estate in Trivandrum.

The challenge which he saw was three fold:

1. Lack of credible market information on Trivandrum real estate - Most of the available information comes from news sources or the internet. However these do not always address the entire city, road developments, upcoming projects etc. which could play a significant role in real estate prices and appreciation. A wholistic picture thus wasn't available and the customers had to go with hearsay.

2. Choose from a directory or list of properties which were advertised - Most agents or websites offered property in an area for a particular budget. While this saved time in looking around, a list presented what is available, but not always what is becoming available and had its shortfall as you were never quite sure if that is all to it. To become sure, you needed to look a multiple such lists of properties in an area.

3. Budgets and aspirations vary from person to person - A 40 Lac apartment  in Kazhakootam for example meant two different things to two different people. So properties went beyond square feet rates and locations to personal aspirations and undivided share of land to even finishing.

The only solution around this for us was to give as much information as possible to our customers for free! 
We spent the time and energy on a regular basis meeting builders, infrastructure developers and associations to keep a tab on what is coming and in the pipeline in Trivandrum.

We knew that only if the customers were well educated about the real estate market, the various properties, the pros and cons for different builders, experiences of existing property owners and we then advise them on which one to go for, their decision would be more prudent and fruitful. Some of our customers have even completely changed their location or other preferences once they understood completely the various facets of their decision.

For us every customer is unique and important and we believe our mission is just getting started! 

Buying and Selling advisory services from Nandanam Consultants

Buying your dream home or selling your property at attractive prices is a walk in the park with Nandanam

 

 

Buying your property in Trivandrum.

We specialize in property in the Trivandrum market. Whatever be your budget, type of property you are looking for and the amenities you need, we help you shortlist just the right property. You leave the searching to us and be assured of handsome return on investment with our sound advice. Our market research and insights into developments in Trivandrum helps you identify those properties which may not otherwise be advertised. 

Selling your property in Trivandrum.
Selling your property is easier these days with a plethora of options available on the internet.  But do you always understand the market valuation and get the best prices for your property. We keep track of trends in all localities in Trivandrum, so that you know you got the best deal out there!

How do you differentiate between apartments you want to buy?

Make the Right Choice for your apartment

Let's say that you have shortlisted two apartments to buy in Trivandrum. Now assume that they are almost in similar locations, with almost the same amenities, are from reputed builders and are available at relatively the same price. The question is what else do you factor in to decide on this property and how do you differentiate which apartment to buy. 

We offer you a few tips to further narrow down your search results:

1. Understand the Carpet Area, Super built up area and Built up area - Carpet area is the area enclosed within the wall i.e. the actual used area of an apartment. Built up Area is the carpet area plus the thickness of outer walls and the balcony. Super Built Up Area is the built up area plus proportionate area of common areas such as the lobby, elevators, stairs, etc. Thus the share of all common areas is proportionately divided amongst all unit owners and it makes up the Super Built-up area.What is important here is to understand if both builders are charging for the carpet area or the super built up area.

2. Look at the payment plan - Most builders ask for a 15 or 20% down payment at the time of booking and then rest of the payments need to be made based on stage of construction. Here there could be a few differences. Some developers like Confident have come out with schemes which say "pay the rest" only during hand over. This offer is excellent since it ensures that your are not charged unduly by bankers for availing part of the loan if the project is getting delayed. The actual payment schemes by various builders could mean a difference of about 10 to 15% of your project cost , which could be around Rs.5 Lacs paid about 6 months in advance. The opportunity cost of that capital would be around Rs.25,000. Hence you might want to negotiate with the builder on payment terms and make it suitable to your needs.

3. Look for small differences in finishing - For e.g.  Vitrified tiles are stronger and less susceptible to wear and tear than ceramic tiles. Vitrified tiles can be further classified into glossy-finish, rustic-finish (has a rough surface), satin-finish (shiny in appearance but has a rough surface), imported, slab-size tiles. Check if the walls of the rooms will be painted with Acrylic Emulsion Paint and if the windows/Glazing will be Anodized/powder coated Aluminum/UPVC. Also check if the flooring will be of Anti Skid Ceramic tiles in the bathroom and other relevant areas.

4. Undivided share of land - In many instances the builders of an apartment do not transfer the entire extent of land to the buyers of flats. Instead, they tend to retain a portion of the undivided share which is subsequently misused leading to various complications. States such as Karanataka have made it mandatory that the undivided share of the land cannot be registered in isolation and they have to be registered along with the flats. Now why is this important?

Imagine you are building a 2000 sqft home over a plot of 2400 sq ft land. In this case, the undivided land share is 2400 sqft and the super built up area is 2000 sqft. The undivided share of land is thus equivalent to building a flat on that assigned land area. Over time, the value of constructed area depreciates while the value of land area appreciates. Say after 30 years, the building is too old to stay and the entire complex needs to be rebuilt. What you own will be only the Undivided Land Share. 

Sometimes the builders might allot you a lesser land share or may not mention the land share in you sale agreement or even worse they might claim the land share of your entitled land. If you are buying resale flats which are quite old (10+ years), undivided share is important to ensure that you get the value of land at the time of reconstruction.

Artech - new launch coming up in Sasthamangalam in six months

As per our sources, Artech developers has recently bought a property near Kochar road in Sasthamangalam. The property is at a location where the Anjaneya Motors was located previously.

Sasthamangalam is a prime target for developers as there is no real space to build apartments left in the area. Kochar road could see more developments due to some parcels of land available here. The current property is only about 100 metres from the Alakapuri marriage auditorium in Kochar road making it an excellent location.

Artech is planning an apartment complex here which should be in Pre-Launch phase in another 3 to 4 months and should be launched in another 6 months. Artech currently has launched two new projects in Vazhuthcaud and Venpalavattom. Another builder who has acquired property in Sasthamangalam area is SI. SI is also awaiting sanctions on this property and it is expected to be launched as well in another 6 months.

SBI home loan - Analysis and features

Analysis

    Speed of Sanction - 7 working days
    Ease of documentation - Pre- Approved projects only.Less Documentation
    Balance Transfer Charges - (incase of refinance) 2%
    Part-payment Charges - Nil
    Switching Charges - (Fixed to Floating or vice-a-versa) 1.75%
    Loan to Value ratio - Upto 20 lakh-90%,Above 20 lakh-80%
    Customer Service -  Good
    Franking Charges - 0.2%

Features

• SBI home loan contains package of exclusive benefits.
• SBI offers lowest interest rates. Further, they charge interest on a daily reducing balance!!
• Low processing charges.
• No hidden costs or administrative charges.
• No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan.
• Over 12000 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.
• Actual loan amount will be determined taking into consideration factors such as applicant’s income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.
• Security:
  Equitable mortgage of the property.
  Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged.

Documents Needed - Salaried Individual

• Application form with recent photograph
• Salary slip of last 3 months
• Latest Form 16
• Bank statement for last 6 months
• Processing fee check
• Proof of identity (any one): Passport Driving licence/photo credit card/Employee licence/Voter's ID/PAN card
• Proof of Residence (any one): Driving licence/Any utility bill/Govt. or authority bill
• Proof of age (any one) : Passport/Voter's ID/PAN card/' Birth certificate/life insurance policy or premium receipt
  Signature verification proof
• Repayment track record of existing loans/Loan closure letter

Documents Needed - Self Employed

• Application form with recent photograph
• Bank statement for last 6 months
• Processing fee check
• Proof of age (any one) : Passport/Voter's ID/PAN card/'Birth certificate/life insurance policy or premium receipt
• Proof of identity (any one): Passport Driving licence/photo credit card/Employee licence/Voter's ID/PAN card
• Proof of Residence (any one): Driving licence/Any utility bill/Govt. or authority bill
• P&L and balance Sheet for last 2 years certified/audited by CA
• Qualification proof of the highest professional degree
• Proof of existence
• Income Tax return/Computation of total income/Auditor's Report Balance sheet/Profit and loss account for last
  2 years certified by CA
• Repayment track record of existing loans/Loan closure letter
• Proof of office address
• Board Resolution in case of company

HDFC Bank Home Loan Analysis and Features

Analysis

Loan To Value Ratio –HDFC Home Loan can be applied for a maximum of 85% of the property value subject to credit discretion


Through its Home Improvement Loan scheme, it facilitates internal and external repairs and other structural improvements. HDFC finances up to 85% of the cost of renovation (100% for existing customers) subject to market value of the property.

Speed of Sanction
Subject to all documentary compliances loan sanction within 7 working days

Ease of documentation
Simplified credit and legal documentation 

Customer Service
Excellent

Features:

    Loans are available to individual to purchase or constructed houses.

    Anyone can apply for home loan individually or jointly

    Loan is available up to 80% of the cost of property based on repayment capacity of the customer

    Automated repayment of home loan by giving standing instructions or PDC’s

    Flexible repayment options are available

Eligibility:

    Minimum age to apply for home loan is 21 years, and maximum age at maturity is 60 years

    Minimum 2 years in employment and minimum of 1 year in current organization.

Charges:

    Late payment charges: 2% per month

    Cheque swapping charges & Cheque bounce charge : Rs 500/-each

    Duplicate statement charges: Rs 100 per page, Maximum Rs 300/-

    Issue of duplicate provisional interest certificate, balance certificate, amortization schedule charges Rs 300 each

    Prepayment charges: No prepayment is allowed in first 6 months, 6 months to 5 years it is 1.5% of original loan amount,for 5 to 10 years 0.75% of original loan amount & for >10 years there is no closure fee

Interest Rate:

    Loan is available at both floating rate & fixed rates
    Floating rates are linked to base rate & BPLR

Documentation:
 

Salaried Individuals

      Application form with recent photograph
      Latest salary slip and Form 16
      Bank statement for last 3 months
      Proof of Identity (any one): Passport/Driving license/Photo credit card/Employee license/Voter's ID/PAN card
      Proof of Residence (any one): Driving license/Any utility bill/Govt. or authority bill
    
For Self Employed Professionals / Self Employed Businessman
    Application form with photograph
    Identity and Residence Proof Identity and Residence Proof
    Education Qualifications Certificate (for professionals only)
    Last 3 years Income Tax returns, Profit /Loss account, Balance Sheet and computation of income
    Business profile (for non professionals only)
    Last 6 months bank statements ( personal and business accounts)
    Proof savings & investments
    Processing fee cheque

* NRI’s are required to submit copy of the passport, work permit, CDC (in case of sailors) and
visa in addition to the documents listed above.

    

Factors to consider before availing your home loan

The next time you decide on buying your property and the amount of loan you require, this article should help. Most customers just think of the interest rates while going for the home loan.

This is a prudent thing to do, however there are a multitude of other things which you should keep in mind as home loan is usually for a tenure of about 20 years. So these factors also mean a lot to your experience during the tenure of the loan.


For more information please reach out to our expert team at Nandanam Consultants

Different categories of home loan

•     Home purchase loan: It is one of the basic types of housing loan which is taken for buying the new house.
•     Bridge loan: Such kind of housing loan helps in financing the new home of the borrower when he is interested in selling the current house. It is mainly a short term loan which is given to the applicant for the period when he is interested in selling the old house and wants to buy the new house.
•     Home extension loan: It can be used for extending or expanding the current home, like, adding an extra room or bathroom, etc.
•     Home improvement loan: Such kind of loan is for doing renovation or repairing of the house which you have already purchased.
•     Home conversion loan: It is the loan wherein the borrower has already taken a home loan for financing his current house but is now interested in moving to some other home.

With the help of the home conversion loan, borrower can transfer the current loan to the new house which needs extra funds. With the help of the new loan, you can make the payment of the earlier loan & arrange sufficient funds for buying the new house.

Factors to consider for your home loan:

• Interest Rate
• Pre payment charges
• Balance Transfer Charges(incase of refinance)
• Part-payment Charges
• Switching Charges (Fixed to Floating or vice-a-versa)
• Loan to Value ratio
• Speed of Sanction
• Ease of documentation
• Simplified credit and legal documentation
• Customer Service
• Franking Charges 

What differentiates a good home loan lender-
A good lender is one who clearly discloses all terms and conditions, is responsive to your requirements and gives you a loan at easy rates. A home loan demands constant servicing for next 15-20 years, and therefore, interest rate should not be the only base of choosing the lender.

    Check credentials of the lender-  It should be remembered, that the Reserve Bank of India (RBI) has no control over what the loan provider will charge. Each lender has its own cost of funds and they accordingly decide the charge whatever it deems fit. So, you should compare what a lender is charging as interest rate to new customer and on loans which are already running with them for past 2-3 years. This will help you decide what would happen to you two years down the line.

    Negotiation- If you are earning good income and have a decent CIBIL score then you should try to negotiate for home loan rates from lender. You might get 0.25 to 0.75 percent rate lower than normal. It also involves doing negotiation for processing fee. Many lenders are charging 0.5 per cent- 1 per cent as upfront fee but if you will do negotiation then it can be lowered to 0.1 per cent.

    Stick to one lender- Never make a mistake of applying to 5-6 banks at a time as after the introduction of CIBIL, each new loan enquiry can lower your credit score by approximately 10 basis points. A low credit score can impair your power to demand an easy rate. So, you do your research or talk to our experts before discussing the final deal.

 Fixed or variable interest rate?- Interest rate varies from time to time and it is a good idea to do a proper analyzing of liability portfolio on the regular basis in order to get maximum benefit out of it. It means, if you are borrowing for a short period, i.e., for 2-5 years, then you should go for fixed rate, or else, you can choose the variable interest rate, in the hope that the interest rate will come down in the longer tenure.

    Right selection- Since loan is for the long-term, therefore, you should select that company which is offering other loan products also, like, personal loan, car loan, education loan, etc. If required, you will be able to get preferential interest rates on other products also on the basis of your track record with the lender.
This will also avoid running from one lender to other for your varied financing requirements.