It is the smaller cities in India not the metros that are witnessing a housing boom. In quiet Gangtok every fourth household took a housing loan from a scheduled commercial bank in 2005-06, In Bhubaneshwar over one-fifth of all homes took the housing loan in the same year.
On an average of barely Rs 3.4 lakh per housing loan is being taken by Sikkimese. Though Sikkimese capital may not be able to match the residents of the metros in case of the size of the loan but in terms of the sheer proportion of families that are borrowing to have a home they can call their own, small-town India is on the march.
Amongst the metros Mumbai tops the list in terms of the value of housing loans, with a little under Rs 24,000 crore in 2005-06, according to the details data available of the latest year. Delhi comes next with over Rs 16,000 crore, followed by Bangalore with over Rs 14,000 crore, Chennai (a little more than Rs 10,000 crore) and Hyderabad (over Rs 7,000 crore). The metros are topping the list without including suburban districts like Thane and Thiruvallur.
How you rank the cities in terms of their inclination for housing loans will wholly depend on the parameter you choose — the volume of loans, the value of each loan, the proportion of households that borrowed or the average borrowing per household.
On looking at the average value of each loan account opened in 2005-06 the list changes with the immediate neighbors crawling to the top of the chart leaving behind the metros. Noida now tops the list with Rs 10.5 lakh followed by Gurgaon with Rs 10.2 lakh and Delhi with Rs 9.8 lakh. Mumbai, with an average housing loan of Rs 7 lakh, is now at eighth place.
Even on looking in terms of the average housing loan per household the list changes. Noida and Gurgaon remain on top with Rs 1.49 lakh and Rs 1.29 lakh respectively, but Chandigarh and Chennai, with an average of just over Rs 1 lakh, are now joint third while Delhi slips to No 17 with Rs 0.49 lakh.
Wednesday, November 28, 2007
Monday, November 26, 2007
You can sell existing house stilling having home loan on it
The financial status of the people has improved. With the improvement in the financial status the mind set of the people has also changed with time. Now people think about investing their money, buying insurance policies, etc.
Before and now also most of the people are still interested in investing money in property like buying plots or house. Many builders have come up and are building apartments in and around the states so the people have choice to buy house in the other place or shift to a bigger house in a better locality.
If you want to move to a bigger house you have a choice either to retain it or sell it. If you have enough money to buy another, bigger house then you can retain it. But for many, this may not be viable. You may need to sell the existing house to fund the new, bigger house. As you had funded your first house with a home loan and still have 7 or 15 years to go before completing the payment, a question arises: Can you sell your existing house that still has a home loan on it?
The answer is yes, you can for this home loan lender’s consent is needed. It is not difficult to obtain that. You can consult the bank for this as every bank has a clearly laid out process to help you sell your home with the loan. With the consent letter you will be able to start negotiation for the sale of your house. The buyer to your house will need to pay directly to your lender bank the outstanding loan amount and the bank will release the lien on your house. Here is step-by-step procedure to help you on how to sell your house with a loan:
Step 1
Tell your lender bank about your requirement and request them to issue a consent letter to you. The consent letter will normally provide the amount, on payment of which the outstanding loan will be fully paid off along with the other details.
The amount mentioned in the letter includes the prepayment charge, if any, chargeable by your bank and should list the documents held by them that will be released on payment of the stated amount. This amount mentioned in the certificate is typically calculated as on a future date, to enable time for the buyer to arrange the payment.
Step 2
Based on this certificate, you can negotiate the sale of your house with potential purchasers.
If the new purchaser takes the loan from your existing bank, the process is far simpler than if he were to take the loan from another bank, which may need the title deeds in its hands before it agrees to release payment.
In case the purchaser is not taking any loan and is making an outright payment, the new purchaser can make a cheque favoring the bank for an amount equivalent to the amount stated in the certificate. This will clear your home loan. For the balance amount, he will provide a cheque in your name. Your property documents will be released to the buyer only when you have prepaid your entire housing loan.
Before and now also most of the people are still interested in investing money in property like buying plots or house. Many builders have come up and are building apartments in and around the states so the people have choice to buy house in the other place or shift to a bigger house in a better locality.
If you want to move to a bigger house you have a choice either to retain it or sell it. If you have enough money to buy another, bigger house then you can retain it. But for many, this may not be viable. You may need to sell the existing house to fund the new, bigger house. As you had funded your first house with a home loan and still have 7 or 15 years to go before completing the payment, a question arises: Can you sell your existing house that still has a home loan on it?
The answer is yes, you can for this home loan lender’s consent is needed. It is not difficult to obtain that. You can consult the bank for this as every bank has a clearly laid out process to help you sell your home with the loan. With the consent letter you will be able to start negotiation for the sale of your house. The buyer to your house will need to pay directly to your lender bank the outstanding loan amount and the bank will release the lien on your house. Here is step-by-step procedure to help you on how to sell your house with a loan:
Step 1
Tell your lender bank about your requirement and request them to issue a consent letter to you. The consent letter will normally provide the amount, on payment of which the outstanding loan will be fully paid off along with the other details.
The amount mentioned in the letter includes the prepayment charge, if any, chargeable by your bank and should list the documents held by them that will be released on payment of the stated amount. This amount mentioned in the certificate is typically calculated as on a future date, to enable time for the buyer to arrange the payment.
Step 2
Based on this certificate, you can negotiate the sale of your house with potential purchasers.
If the new purchaser takes the loan from your existing bank, the process is far simpler than if he were to take the loan from another bank, which may need the title deeds in its hands before it agrees to release payment.
In case the purchaser is not taking any loan and is making an outright payment, the new purchaser can make a cheque favoring the bank for an amount equivalent to the amount stated in the certificate. This will clear your home loan. For the balance amount, he will provide a cheque in your name. Your property documents will be released to the buyer only when you have prepaid your entire housing loan.
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