Beware of these Real-Estate Scams

Even though the real-estate is thriving, there are still many property developers out there who operate in an unethical manner, they have no compassion for the hard-earned buyer as these property developers scam these prospective buyers in order to earn a quick pay-day and then disappear with the buyers hard earned money. Make sure you do not be a victim to these scams by being aware of these common scams that are happening in the real-estate industry.

1. Scams in real-estate that go after renters: This scam targets the people who are to looking to rent a house and the seller of the home. The con artist will take up pictures of the house from any builder’s website and post these pictures on rental websites to draw prospective renters. And you must be cautious when the rents of these homes are going for very less in a prominent location. These are all tell-tale of the fake real-estate agent looking for a quick pay day. Sometimes the con artists use this scam to acquire your identity. They even go to the extent of handing you fake house keys. It is advisable to conduct an effortless google search to check customer reviews if the property is genuine and listed every where with same price. Also enquire to the landlord to visit the property.  Above all don’t not rush into things like these, as this type of scam needs to be done quickly so the con artists can take your money and run quickly before they get caught.

2. Scams in Mortgage Finance: This type of mortgage scam affects both homebuyers looking to get a mortgage to buy a home and homeowners who may be looking to re-finance their home.  These fake mortgage lenders at times advertise on social media groups to help people obtain loans who have low credit or even no credit at all. Part of the scam involves charging the customer an application fee. They best way to tackle this scam is to use licensed mortgage loan providers as they register with the National mortgaging license system. Another tell-tale sign of the scam is the contact e-mail address will be from a public account like Gmail, Yahoo etc. It is better to get the advice from your friends and families, talking to local banks and realtors to ensure to work with legitimate lenders.

3. We purchase home for cash scam: There are only a few honest companies out there looking to buy homes for cash. Beware of this scam as it may involve you transferring the deed for your home but you are still left to pay the mortgage debt and other tax debt present in the seller’s name in the deed. To best to tackle scams like these to hire a lawyer to review the contracts and documents before you sign. If the buyer is adamant in not bringing in a lawyer then you might want to reconsider the offer.

4. Scams which target, sellers, realtors and homebuyers: This scam is much worse than the other as hackers hack into the e-mails that are sent by the seller, buyer, Title Company or realtor to use that information against the buyer of the seller. The con artists will advise you to wire the money as part of a transaction fee. Wire transfers are rarely done during a real-estate closing. If in case you do get an e-mail to wire money regarding a real-estate transaction. Then call the company to confirm the e-mail being sent. 

So beware of these common scams and it always advised to get in more information from sellers, legal agents and banks before making a well informed decision. 

Massive Down Payments why A Big No Home Buyer

There is nothing to point out wrong if you are giving a good amount as your down payment and you have back funds to support this investment in your future. As per the experts advice one should make at least 10 or 20 percent of the price as down payment. However in general we assume, we should pay as much as possible towards down payment so there won’t be any extra burden during paying the successive amounts as EMI.

Since you spent a huge part of your saving and now you are compromising with the quality of life style you are maintaining and off course on your savings as well. In addition to this, you don’t even know either your dream home is going to complete or not within the stipulated time frame and since you spent a huge which actually stopping you to withdraw from your decision. 

Why Massive Down Payments are Big No for Home Buyers

Here are top 3 reasons why you shouldn’t spend more on down payment while buying home also check out how to go about residential plots.

“Draining your Emergency Fund”

You should never buy property in hurry, spending your future savings as a down payment of large investment is completely a wrong idea to adopt. Suppose you lost your job or ended with a loose in business than it may create a terrible financial deficit for you. So it is always recommended to save at least 3 to 6 months expenditure as your emergency fund to avoid uninvited situations.

Note: Making Emergency Saving comes prior to buying or investing on real estate or even planning for retirements. If your future investment plans or home buying plans are affecting your safety then you need to step back first and concentrate on saving.

"Finale payment may scare you"

Don’t stand blind folded without calculating the expenditures of closing the deal or registering the property to your name. Taxes and other expenses can be 3 to 6 percent of the total cost of the property. If you spent all your money in a single huge down payment then you might be surprised by knowing the huge expenses that you are going to pay in the finale settlement.

If 20 percent down payment puts you on strain then there are good numbers of chances that the finale cost of your home will put you in deep strain. You may be ended up as a buyer who has a bigger home than he can afford.

"Ended with living in an empty home"

This is for sure that an empty home never looks like a home. What if you have spent all your funds on a massive down payment and living in a house with no sufficient appliance? This could be the perfect scenario of you, if you are moving from a small apartment to a bigger home with endless empty spaces. So what is the purpose of buying a bigger home if you are not able to afford a matched sized sofa for it?

So you handed all your money in making down payment, and now scratching your head to figure out how to pay EMIs. Potentially you have no money left for other things. Just imagine, how it looks like if you can’t afford a bed for your guest room? 

Well congratulations you are a home owner now, but without any retirement savings. Taking burdens more than you can afford is a destruction of your own happiness. 

TGS Layouts sells sizable plots in Bangalore with different down payment option and weekend offers.  If you are an investors or first time buyer then you must read more about this land developer http://www.tgslayouts.com/about_us

How to go about buying a residential plot? – TGS Layouts Tips

Different local authorities regularly come up with residential plots for sale and distribution for individual citizens. Jaipur Development Authority is distributing land plots of different sizes currently and in the recent past Haryana Urban Development Authority has offered the public allotment of residential plots of different sizes in Palwal and Faridabad. Yet there are many other state governments who declare allotment of lands and distribute it through local or municipal authorities. In bigger cities and metropolitans, sale of apartments is more in vogue due to paucity of land at economical prices. But in smaller cities buying land is still a trend that is being preferred.

The realtors opine that in category B and C cities the percentage of the buyers of land is higher compared to metropolitans. The percentage of land buyers in smaller cities are more owing to the desire of building a house on the land and potential land buyers are in the percentage range of 30 to 35 percent in smaller cities while such percentage is only 5 to 7 percent in metro cities. In cities like Mumbai this percentage is even lesser and in the range of 2 to 3 percent due to the paucity of land in the city limits. Many people desire to settle down in their home towns and start working towards their goal in advance by buying a plot. They thus take a loan and construct a home which helps them achieve their plans.

How to go about it?

The process of buying a plot by taking a loan is entirely different from taking a home loan for buying an apartment primarily because of the difference of the assets involved. The eligibility of the loan amount is different for different assets and one has to figure out what proportion of the money should be used in buying the land and what proportion should be utilized in constructing the house. In case of an apartment the full amount can be taken as a loan but in case of a land and to build a house on it the segmentation has to be done.

An example will make the situation clear. Let’s say one’s loan eligibility is Rs. 60 lakhs and you decided to spend Rs. 45 lakhs on buying the land and the rest of Rs. 15 lakhs can be spent on the construction of the house. Let’s suppose if you have to change your mind and decide to spend Rs. 40 lakhs and spend the rest of Rs. 20 lakhs on the house, you have this flexibility to do so.

But in case of buying an apartment the flexibility would be limited and the lending banks disburse the amount of loan in installments. The composite loans are first of all disbursed for the acquisition of land and then for the subsequent construction of the building.

You may be asked for the submission of certain documents for the loan approval and also the documents relating to the land that you intend to buy namely the allotment letter issued by the development authority, copy of the drawings of the proposed property duly approved which is to be purchased, title deed, sale agreement and also the chain of documents in case of resale. Apart from these the borrower has to submit the title document of the plot in original along with the map duly approved by the authority with the estimate of the amount needed for construction.

If one wants the loan amount for the construction of the house one has to submit the building plan duly approved by the local authorities and the construction costs has to estimated and approved by an architect or a civil engineer. The construction of the house has also to start within the stipulated period as mentioned in the loan agreement or else the lending interest may go up as per the agreement with the lending institutions to higher rates as high as 13 to 14 percent as well. Banks like the ICICI restricts the construction to be completed within a time period of two years from the date of disbursement of the first installment of the loans.

Loan eligibility and interest rate

The amount that you are eligible for depends on the income and the credit profile, repayment capacity, savings history, spouse’s income and the number of dependents in the family and such other relevant factors. The Loan to Value ratio (LTV) is generally 75 percent for acquisition of plots. For composite loans of plots and construction of homes the LTV goes up to 85 percent for an amount of up to Rs. 20 lakhs and 80 percent for loans of up to Rs. 75 lakhs. This implies that if the LTV ratio is 75 percent of the property value of Rs. 50 lakhs a loan will be disbursed of Rs. 37.5 lakhs and the borrower has to pay Rs. 12.5 lakhs from this own pocket.

Interest rates are different in different banks and they come in fixed and floating rates. The rates of interest vary on many factors like tenure, loan amount and loan seeker’s payment and credit history. But the rules regarding the repayment of loan, interest rate change, delays in repayment remain all the same as for the loans for buying an apartment. The tax deduction rules are also the same.

Summary: TGS Layouts sell land plots at very affordable prices in Bangalore / Bengaluru at least 40 percent lesser than the market price. You can post your valuable comments / suggestions here. To view existing customers feedback click TGS Layouts Reviews.

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