Fixed and Floating Home Loans – Which One Should You take?

Applying for a home loan is the easiest way to finance your real estate investment dreams. However, there are two types of housing loans you can opt for based on the demands of the borrower. These are the fixed home loans and floating home loans. Both these types of loans are easily provided by all leading commercial banks and housing finance organisations. But which one is better? Let’s find out.

What are Fixed home loans?

Fixed home loans are the loans which are offered with a fixed interest rate over the entire period of the tenure. The period of the loan is also fixed. This type of loan does not get affected by the fluctuating market conditions. However, you may have to pay a prepayment penalty for a fixed home loan which is approximately 2% of the total loan value.

Pros of fixed home loans:

  • A fixed home loan offers a fixed interest rate and does not depend on the financial market.
  • You can plan your monthly finances with ease.
  • There is a fixed certainty in the repayment of the loan.
  • It offers you peace of mind as you know how much you need to be paying.

Cons of fixed home loans:

  • The fixed interest rate to be paid is usually higher than the rate offered by floating home loans
  • Even if the market rates drop, you need to pay the fixed interest rate you signed up for
  • You need to pay a prepayment penalty for a fixed home loan.

What are floating home loans?

A floating home loan is a housing loan in which the rate of interest varies. Both the base EMI amount and the rate of interest vary based on a benchmark rate fixed by the central bank known as the Prime Lending Rate. Commercial banks and housing finance companies are not authorised to lend loans below this rate. Hence, the fluctuation of this rate leads to the fluctuating rate of interest of the floating home loan.

Pros of floating home loans:

  • The rates of interest offered by floating home loans are cheaper than fixed home loans.
  • Due to its fluctuating nature, even if the rates of interest increase, it is only for a temporary period of time.
  • Often, in floating home loans, you end up saving more in terms of repayment of the loan.
  • Choosing a floating home loan is a better option if you are applying for a higher loan amount.
  • There is no prepayment penalty for a floating home loan.
  • You can switch your floating home loan for an inexpensive loan in the same bank or to another bank with a minimal switching fee. On the contrary, this process cannot easily be done in the case of a fixed home loan.

Cons of a floating home loan:

  • Since the monthly instalments are not fixed, it is hard to plan your finances.
  • You will benefit from this loan only if the interest rates do not increase higher than a rate of 11%.

Apart from merely choosing between a fixed loan and a floating loan, you can also opt for a loan which is fixed for a part of the tenure and is floating for the rest of the period of the loan. Typically, these loans offer a fixed interest rate for the first ten years of the repayment period after which a floating rate of interest is applied. However, this kind of integrated loan can lead to an increased repayment period with a higher EMI to be paid during the extended period.

To sum it up, both fixed home loans and floating home loans have its own set of benefits and drawbacks when scrutinised from an investment angle. However, it is better to opt for a fixed home loan if you want to be certain of your expenses, whether you are planning to buy an apartment or a villa. On the other hand, you can opt for a floating home loan if the fluctuating market conditions do not bother you much or if you are applying for a larger amount of loan.

Also, if you are planning to buy a house, make sure you check out our extensive guide to property insurance. Head out to Radiance Realty today and find your dream home in an address that gives you the best of everything.


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Top Reasons Why Home Insurance is a Must for Homeowners

Buying a house is the largest single investment in all our lives. It is a herculean task that involves a lot of planning, saving and research. However, the fact that you can own a house without a home insurance policy makes us neglect the concept of home insurance on the whole. Most of us feel that it is a waste of money as it is a certain investment for an uncertain cause. Nevertheless, with the increase in natural calamities, it is a good idea to take up a little expense to avoid a huge financial setback in the future. Read on for a better understanding of why home insurance is a must for homeowners.

The protection is not just for your home

An extensive home insurance policy does not only protect your building. It covers all the components in your compound like your garage, shed, deck and even your fence. Additionally, you can also opt for add-ons in your policy and protect the contents of your house like your furniture, electronics and valuable home appliances.

It provides a replacement for your loss

Getting your home insured gives you financial security with the added benefit of replacing your insured belongings. Based on the home insurance policy you have opted for, you can now get your damaged goods replaced instead of merely claiming an equivalent amount of money for your loss.

It protects you from natural disasters

Natural disasters are every homeowner’s nightmare. Taking up the expense of repairing a damaged house is not the kind of burden you want to put yourself and your family through, especially when they are in the middle of an emotional rollercoaster. A detailed home insurance plan covers you during natural calamities like floods, landslides and earthquakes, for a minimal monthly or yearly expense.

It is not expensive

Though a home insurance policy might seem like an unwanted expense, the benefits provided by the scheme are much more than money can buy. For an insured amount of about Rs 40 lakhs of the building, you can get a home insurance policy worth just Rs 2,000 per year. Additionally, the most comprehensive policy, which covers even the contents of the house, can be bought at an approximate value of just Rs 5,000 per year. At such nominal rates, getting your house insured is not even an expensive affair.

It protects you from lawsuits

Based on the type of policy you have opted for, you can protect yourself and your family from property-related lawsuits. Your home insurance will cover you during the misfortunate incident of you accidentally damaging another property, like in the case of a fire or mechanical damage. Additionally, it will also cover the medical expenses of a guest injured in your property.

Above all, it provides peace of mind

Getting your home insured provides you with the ultimate luxury of peace of mind. Whether you own an apartment or a villa, once you have selected your policy and paid your premium, protecting your property is no longer your responsibility.

Pointers to keep in mind while insuring your home:

  • It is always important to maintain proof of all your insured items in order to claim them.
  • Unauthorised construction cannot be claimed, so make your investment wisely.
  • During the time of policy renewal, get a quote of the reconstruction cost from a contractor for extensive coverage.
  • A home insurance policy is valid only for the building and its components. It does not cover the land.
  • Tenants can insure the contents of the house they are living in.

With such comprehensive benefits, getting your home insured is not an option, it is a necessity. Head out to Radiance Realty and find your dream home at an address that gives you the best of everything.

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5 amazing tips to create a terrace garden

Creating a terrace garden is a productive way to unwind and de-stress. Whether you love plants or not, there is something calming about sitting amidst lush greenery and sipping your evening coffee. Though balconies and house entrances are the usual places to keep a few potted plants, there is an increasing trend of terrace gardens in urban cities. This is because terraces are typically left barren due to its direct exposure to sunlight. But in reality, the vast space and abundance of sunlight make terraces a haven for a gorgeous garden with an evening sit-out. Read on for a few amazing tips on how to create a remarkable terrace garden and be the talk of the town.

Find the right space       

Find out if your terrace can be used to create a garden as it is a common area. Get your neighbours consent and intimate them about your plans. Once that is done, plan your garden according to the place you have. If your terrace faces too much sunlight, consider putting up a green tent to protect the plants. You can even plan to place the plants in a shady area to avoid the extra expense and maintenance of the tent.

Get the right soil

The right nutrients play a key role in keeping your plants healthy and vibrant. You can either buy fertile soil from plant nurseries or make your compost at home. Creating your compost is an organic way of fertilising your soil and has a lot of added benefits as well. For starters, it conditions the soil well and helps you get rid of kitchen waste in a productive manner. It is also extremely beneficial for the environment and promotes the growth of nutritive organisms in the soil. Compost can be created by piling up kitchen waste and yard waste in the corner of your backyard or lawn and letting it decompose over a period of time. You can water it periodically to maintain moisture and cover it up with hay or a sack to retain heat. Additionally, give the pile a good turn once in a while to air it up. Once your compost is ready, mix it up with soil and use it for your terrace garden.

Use the right containers

You can opt for fancy store-bought terracotta containers or get creative and make your own containers. Get adventures and use old paint containers, glass bottles, an old barrel or funky tin containers. Scan your home for such containers which can double up as decorative items. Whatever you chose, make sure the containers have tiny holes for air circulation and to drain out excess water.

Start with simple plants

If your terrace can bear the weight of an actual garden, you can even grow small trees on it. However, it is a good idea to start with the basics and begin with easy-to-maintain potted plants. If you are planning to grow a vegetable garden, you can opt for chillies, tomatoes, ladies fingers and lime. If you have a larger space, you can opt for underground vegetables like potatoes and carrots. Other than vegetables, you can also grow radiant flowers to add to the beauty of the garden. Invest in gorgeous roses, marigolds and striking bougainvillaea plants to make your garden a visitor’s delight.

Don’t forget to decorate

The best part about setting up a terrace garden is decorating it. Apart from the natural beauty brought in by the breathtaking plants, you can add on many artificial decorative items to make it a beautiful sit-out. Invest in wicker chairs or cane furniture to make the place more inviting. If you do not want to spend too much, you can convert a plain slab into a seating area by painting it with vibrant colours and covering it with a protective plastic sheet. Light up the place with string lights to give it an intimate feel. You can also opt for hanging pots with flowering plants and go creative with a blank wall to add on to the eye-catching appeal. There is an interesting link between your personality and home décor, so decorate the garden in such a way that your identity comes out through it. Last but not least, to go completely over the top, you can invest in a miniature water fountain and enjoy the calming sound of the running water as you indulge in some quality gardening.

These foolproof tips are guaranteed to help you create the terrace garden of your dreams. The main objective of gardening is to have some productive fun as you take care of your plants. They have the added bonus of making your house look rich and posh at half the expense. Visit Radiance Realty and find yourself a dream home at an address that gives you the best of everything.

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How NRIs Can Simplify Their Search for a Property

Chennai’s real estate market has been on a steady rise over the past few years. Home seekers within the city limits and from other states have realised the potential of Chennai’s residential sector; this is mainly due to the huge number of modernistic structures and the recent release of real estate laws like the RERA Bill that has given perks to home buyers. Even across the border, NRIs have made Chennai a favourite among their property purchase list. While NRIs have understood the basics of property investment in India, there is still the issue of simplifying the search. If you’re an NRI, here’s how you can simplify your search for a property.

Subscribe to YouTube channels

The rise of video base content has prompted real estate developers to begin showcasing more of their properties through videos. Video-based content works wonders for real estate, as it can give you a sneak peek of the interior and exterior of a building. Many developers have launched dedicated YouTube channels that provide lots of information on upcoming projects. Video content is already showing promise as a future-ready medium with the launch of VR technology; imagine sitting in front of a screen and experiencing what is like to be living in a whole other place.

Get active on property forums

With so many properties to choose from, it can get quite confusing as to which property fits the requirement. Especially for NRIs, who can’t keep moving to and fro just to get a good word on certain properties; searching for recommendations and general discussions is best done online. Forums have become the new word-of-mouth medium and the best, most trusted forum is Quora. You simply have to create an account and filter down your topics- in this case, real estate properties in India. Forums have unbiased viewpoints on any given topic and you are bound to find a community of NRIs who face similar dilemmas over the search for a property.

Look out for social media updates

The real estate industry actually experienced an influx in property sales after getting active on social media. A lot of reputed real estate developers enjoyed an increase in their consumer base with the launch of their social media channels. Today, almost everything relating to property searches, updates on latest property launches and property sale discounts are updated on social media. By following social media channels, you will always stay updated with the latest property trends from the developer while also keep tabs on the best properties to invest.

Browse through aggregator websites

Aggregator websites are the one stop solution for all things search related. Property aggregator websites normally store and update information regarding every real estate developer’s property. You can check out pricing, locations, type and even compare any two selected properties. Subscribing to aggregator websites is a good thing to do, as any updates on bookmarked or previously searched properties will be sent directly to you.

Check the developer’s website

The internet has become the ultimate source of information but is also a competitive medium. For any brand in a given industry, being on the top list of search engine websites is essential, as it helps establish strong brand presence and reputation. One way to achieve great internet presence is to launch a website. If you search for properties strictly based on brand name, a website can prove to be the best source for all things brand related. Subscribing to the brand’s newsletter through the website will give you a more personal property search experience.

Have a keen eye for Google ads

Google has become a favourite online advertising medium across industries. Every time you search for something on Google, it registers the search as part of your internet history. The more properties you search for, the more Google understands your need, and it eventually starts showing you relevant ads in the form of banners across your news feed and on other websites you visit. This concept of display ads could serve as the catalyst for all your future property searches.

Property searching will only get simpler and quicker as technology continues to evolve. Buying a property is a pleasure like no other, and if you’re planning to buy a home in India, Radiance Realty is the best developer to choose.


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The RERA Bill and its Impact on Real Estate

The real estate industry has seen a lot of exciting changes over the past year. Big changes like the curbing of black money through demonetisation and the promising future through the smart city initiative have given more than enough reasons to purchase a home in 2017. One of the biggest reforms is the release of the Real Estate Regulatory Authority (RERA) Bill. As of May 1, the bill is officially in effect and is expected to have a huge impact on the real estate market. Here are a few things you should know about the RERA bill.

Why was the RERA Bill passed?

Owing to a surge in property development and the massive amount of money that flows into the real estate sector, the Government sought to introduce the bill in order to keep tabs on general real estate practices, thereby nullifying any chance of fraudulent activity.

Real estate developers will now have to register with RERA every time they plan to build a commercial or residential project that exceeds 500 square metres of land. On successful registrations, the developers will be provided with a login ID and password through which they have to fill out an application with the project’s details.

RERA licenced developers must quote their registration number to home buyers on every transaction that is being made. Altogether, RERA ensures increased transparency of real estate dealings for both developers and home buyers.

Increase in demand for housing projects

The RERA Bill has been touted as a buyer- friendly bill; most of the major reforms are angling towards increased support for potential home buyers which enable them to make more informed decisions before purchasing a dream home. Buyers now have an incredible amount of power during the pre-purchase and post-purchase of their home. Developers must get written consent from buyers ahead of making any last-minute changes to the infrastructure of the property and buyers can approach the developer regarding changes and improvements to maintenance services one year after the handover.

With such a big advantage for home buyers, the demand for housing projects is likely to increase, with recent studies showing a surge in real estate stocks. Developers can easily meet the demand by clearing up any unsold inventory.

Real estate brokers have a bigger role to play

Apart from developers, it is mandatory for real estate brokers as well to register with RERA. Brokers need to contact their state’s authority and will receive a registration number through which all sales made by the will be quoted. There are still a huge number of home buyers who depend on facilitators to make purchasing decisions for them; brokers can now sell properties more confidently because all available properties will be registered under RERA.

Projects have strict completion timelines

Developers tend to make lots of promises to sell as much of their property as the can to potential home buyers. One of their biggest promises is the timely handover of a completed project. However, due to unforeseen cases, the completion of a project may be delayed. In the past, there was no penalty for delayed handovers, making it quite difficult for home buyers to settle into their homes as expected. With the RERA Bill coming into effect, developers have to comply with the project deadlines they set; the Bill ensures this by making it mandatory for developers to open a bank account for each project and transfer 70 percent of the funds they receive to the respective accounts. In the case of a delay, the developer must pay off the pre-EMI charges that were initially being paid by the consumer to the bank.

Change in project pricing

Developers normally price their projects based on the sure feet of the super built-up area- the entire area of the compound, inclusive of the outer walls, common hallway and, in some cases, the recreation areas. RERA has forced a change in pricing by asking developers to price their properties based solely on the square feet of the carpet area- home interior space. While this reform may force developers to increase pricing per square foot, it will not affect the total price of the property, as carpet area only comprises of 65-70 percent of the total living space.

Improved quality of housing projects

With the RERA Bill in full effect, the onus is now on developers to improve the standards of their projects. RERA has given developers a period of five years to rectify any structural defects. Home buyers will find it easier to make purchase decisions when assured that their potential future home is in tip-top condition.

Purchasing a home can prove to be a tough task; the RERA Bill has made that task a whole lot easier with its numerous reforms. Radiance Realty is one such builder that is always a step above the rest when it comes to complying with all the latest real estate laws and trends. When you find a home you love, make sure to apply for property insurance. If you love decorating your home, here are some unique ways to go creative with your blank wall.

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