Tips for purchasing a house in Pune

When you invest in buying a house in Pune, the investment is multi-dimensional. Your house offers you security, satisfaction, and the joy of owning a property. Buying a house is probably the biggest investment that you are going to make and a house will always remain as an asset to you. Thus, buying your house can be considered as a major milestone in your life.

Sometimes, your hard earned money might not be sufficient for purchasing your dream house. This is where home loans come in to play. On an average, a home can stretches over a period of 15 years to 20 years. If you are staying in a rented apartment, buying a house and paying for home loan installments instead of rent makes more sense. The maximum tenure that you can avail for the repayment of a housing loan is 30 years.

It is advisable that you set aside a substantial chunk of your savings for your emergency purposes. Don’t churn out everything for buying a house.

Things to remember when you buy a house on home loan in Pune:

• Location – The location where your property is situated plays an important role when you apply for a home loan. Depending in where your property is in Pune, the home loan eligibility may change. There are areas blacklisted by banks and if your property lies in a blacklisted area, you might not stand eligible for the loan.
• Affordability – Various people in Pune, buying houses for the first time fail to understand the expenses that come after buying the house. Firstly, buying a house does not mean just paying for the property. The legal work, registration charges must be factored in while calculating your affordability towards the flat. After you buy the flat, you will have to pay for the interiors, electrical fittings, painting, etc. All of these will cost a substantial amount of money and you must estimate your total expense accordingly.
• Learn to deal with the builders – Understand what you are signing up for before you pick a property. It is always advisable to go for a background check of the promoter you are signing the deal with. Check if he and the property that he’s building are registered under RERA. Only invest your money when you know that it is completely safe.
• Documentation – Generally, you would be signing a stereotypical agreement when you buy the house. Speak to your lawyer and understand the agreement better. You can recommend specific changes to the agreement and customise to a certain extent, depending upon your needs.
• Understanding the concept of carpet area – The carpet area is the final area that can be utilised for residing inside your property. The built up area is the carpet area plus the area in the balcony, walls, etc. The super built up area includes everything that is a part of the built up area and the garage, lobby, lift, etc.
• Tax benefits – You can avail tax benefits if you invest in a house under the prevalent tax laws.

Bottom line – It is a matter of joy and honour to buy a house. But understand what you are investing in. A well-done research is advised before you pick a property and invest in it.

Are you eligible to book a home under PMAY?

The Pradhan Mantri Awas Yojana (PMAY) is a government initiative intended to provide low-cost housing to the economically weaker sections of society. Its objective is to provide affordable housing to individuals below a certain income group by providing a subsidy on home loans.

Subsidy classification of PMAY

CLSS	Max. area	Max. loan amount	Subsidy on interest	Maximum subsidy	Loan tenure	Max. household income
MIG - II	110 sq. meter	Rs.12 lakh	3% p.a.	Rs.2.30 lakh	20 years	Rs.12 – 18 lakh
MIG	90 sq. meter	Rs.9 lakh	4% p.a.	Rs.2.35 lakh	20 years	Rs.6 – 12 lakh
LIG	60 sq. meter	Rs.6 lakh	6.5% p.a.	Rs.2.67 lakh	20 years	Rs.3 – 6 lakh
EWS	30 sq. meter	Rs.6 lakh	6.5% p.a.	Rs.2.67 lakh	20 years	Rs.0 – 3 lakh

PMAY eligibility

Mentioned below are the eligibility criteria to avail a PMAY subsidy:

• Any individual who is a first-time homebuyer that doesn’t have any property in his/her name
• In case of an unmarried applicant, his/her parents must not own a property in any part of India
• In case of a married applicant, his/her spouse or kids must not own a property in any part of India
• For applicants under LIG or EWS, a woman co-applicant is mandatory to avail the benefits of PMAY
• The applicant and his family should not have availed any housing scheme, including PMAY, previously
• The beneficiary can obtain the home loan only for construction/improvement/purchase of a home

Documents required to obtain the benefits of PMAY

• Aadhaar card
• Sanction letter for the loan
• PAN card
• Buyer builder agreement or ATS copy
• Stamp paper / affidavit

How long does it take to obtain a subsidy under PMAY?

On an average, it may take anywhere between 3 – 4 months to get your application approved.

The PMAY scheme has already helped homebuyers obtain home loans at a subsidised rate, causing a boom in the real estate market. The PMAY scheme is also causing home loan interest rates in banks to drop, indirectly making homes affordable to everybody.

Pradhan Mantri Awas Yojana - Everything there is to know about CLSS

Pradhan Mantri Awas Yojana - Housing for all, is an initiative launched by the Government of India wherein, affordable housing will be provided to the urban poor of the country. The scheme itself has various components of which, the Credit Linked Subsidy Scheme is the most popular. Under this scheme, beneficiaries can avail a subsidy on the interest component of a home loan of up to Rs.2.67 lakh.

However, before you get too excited, there are a few things that you need to consider first. For instance, the scheme is directed primarily towards the people belonging to the Lower Income Groups (LIG), Middle Income Groups (MIG), and Economically Weaker Sections (EWS).

Furthermore, there are three prerequisites that have to be fulfilled before you commence your application to avail the benefits of the CLSS. They are:

1. You or your family should not own an all-weather house in any part of the country.
2. You or your family should not have taken assistance from the Central Government for any housing scheme or applied for the benefits under the PMAY.
3. In case you are married, you and your spouse will be eligible for a single subsidy, irrespective of the ownership status of the house.

After fulfilling these three conditions, the next thing that you need to consider is the income criteria. The maximum interest subsidy that can be availed depends on the annual income of the applicant and the category to which they belong.

• The cap on annual income for those belonging to the EWS and LIG is Rs.6 lakh.
• For the MIG 1 category, the maximum household income should not be more than Rs.12 lakh.
• For the MIG 2 category, the maximum household income should not exceed Rs.18 lakh.

In addition to these, factors like maximum loan amount, maximum carpet area, et cetera, are also taken into consideration when it comes to Credit Linked Subsidy Scheme. This has been explained in the table mentioned below:

Category	Maximum Carpet Area (in Square Metres)	Interest Subsidy (%)	Maximum Loan Amount Considered for Subsidy Calculation, in Rupees	Maximum Subsidy, in Rupees
EWS and LIG	60 sq. mt.	6.50%	Rs.6 lakh	Rs.2.67 lakh
MIG 1	120 sq. mt.	4.00%	Rs.9 lakh	Rs.2.35 lakh
MIG 2	150 sq. mt.	3.00%	Rs.12 lakh	Rs.2.30 lakh

Under the scheme, all the Statutory Towns are covered as per the 2011 Census, along with subsequently notified towns. Regardless of where you live in India, you will be able to avail the benefits of the Credit Linked Subsidy Scheme, provided you meet the aforementioned criteria.

The home loan under the CLSS can be taken for any housing purpose - purchase, construction or enhancement of an existing house. The interest subsidy is calculated only on the maximum home loan amount mentioned for the specific categories and is valid for the duration of your entire tenure. For any home loan taken beyond the specified limits, non-subsidised interest rates will be levied.

More details about the PMAY and the CLSS can be found on the official website of the scheme.