Monthly Archives: April 2011

Keerthi Estates Instigates Luxury Residential Villas in Hyderabad

Keerthi Estates, a Hyderabad-based real estate developer with huge experience and long term operations in Hyderabad and Bangalore, has launched its premium luxury residential complex – Richmond Villas – in Hyderabad. The gated-villas project, consists 157 villas of 4BHK, is coming up over 24 acres of blossoming green land near Andhra Pradesh Police Academy circle, close to the new International Airport.

Managing Director, Keerthi Estates, K Anil Kumar Reddy, said, “Each villa, ranging from 3,400 sq ft over 300 square yards to 4,000 sq ft over 466 square yards, will be built as triplex and will have a huge multipurpose hall, which could be converted into a mini theatre or bar or gym based on the buyer’s choice”. Each villa would cost between Rupees 1.25 crore and Rupees 1.85 crore.

The project is well connected to all the reachable amenities within 10-15 minutes like hospitals, educational institutions and shopping, the IT hub, financial district, Hi-tech city, international schools. The company has to complete the project by the end of 2013, so it has already taken all the approvals for the project and began construction. They have already completed two model villas and work on 15 villas is now at a later stage. There has been good response to the project so far and more than 30 villas are booked.

With around 52 per cent open area in the gated villas project, the company is offering key facilities such as a smartly designed clubhouse along with sports facilities, a swimming pool and an air-conditioned gym among others. The project also offers a waste management system with sewerage treatment plant, supported by water harvesting system and solar fencing all around.

Keerthi Estates has so far built over 3-million sq ft of residential and commercial space and some 1 million sq ft is currently under development in Hyderabad and Bangalore.


SBI Ends Its Teaser Home Loan Schemes by End of April 2011

State  Bank of India (SBI) will put to an end to its puzzled home loan schemes by the end of April 2011. The interest rates offered on its home loans will now be recalled by floating interest rate schemes, which are comparable with those offered by  other commercial banks and housing finance companies. All loans from May 1 will  draw an interest rate of 9.5-10.25 per cent, depending on the loan amount.  Loans up to Rs 30 lakh will be available at 9.5 per cent (one percentage point  above their base rate). Loans in the Rs 30-75 lakh range will be charged 9.75  per cent (125 basis points above the base rate). And, those above Rs 75 lakh  will be charged 10.25 per cent (175 basis points above the base rate). Though,  these rates would move in line with the changes in the bank’s base rate that is  reviewed every quarter.

Earlier,  the RBI had asked banks to stop giving teaser loan rates,  since it believed such loans would blow the asset quality of the bank’s home  loan portfolio. Puzzled loans offer advances at a comparatively lower rate of  interest for the first few years, after which rates were re-set at higher  rates. SBI is the last one to discontinue such special loans. Under its SBI  Easy Home Loan and SBI Advantage Home Loan products, one could get loans for  8-8.75 per cent in the first three years. After the third year, the rates would  get reset at the current floating rate structure. At 8.75 per cent, a  20-year-old loan on Rs 30 lakh would come to Rs 884 a lakh. At 9.5 per cent,  you would now be paying Rs 932 a lakh.

Those who already have SBI’s puzzled home loans  and are still in the initial three years, the old rates remain applicable. The  new rates will only apply to new applicants. Among the housing finance  companies, LIC Housing Finance is still offering a fixed interest rate of 9.9-10 per  cent for the first five years and, thenafter, the existing rates will apply. A quick calculation on showed that the average  rate for a 20-year period still works out in SBI’s favor. The average rate for  SBI was 9.5 per cent, while that for LIC Housing was 10.5 per cent for the same period.

SBI  has also said there would be no penalty on foreclosure on home loans. The bank  used to charge customers a 02 per cent penalty on fore – payment of the home  loan. It will also introduce a graded processing fee, which will increase   according to the loan amount.

Smarter Way of Buying a Home.

Profit is the keyword, when it comes to Investment and Investment in real estate rotates around purchase, ownership, management, rental and sale of property.  It involves a lot of planning, especially because of the rapid changes in the economic scenario.

Here’s a checklist of the things you need to keep in mind:

  • The Location: While buying a home, location is the most important factor. It is essential to take several factors into account. If you are to reside in a house, it becomes important to see the other factors such as propinquity to the work place, school, family and friends. No one would mind spending a few lakhs of rupees if the house were close to ones child’s school or ones office.
  • Th Condition of the Home: If you are buying an old house, scrutinize it carefully. No one don’t want to waste a lot of money in repairs later on.
  • Nearness to leisure time areas: You may want to live in a neighborhood with parks, libraries and walking trails, local markets, shopping malls, etc. as these are the points where you can relax or have fun on daily basis and also fulfils your basic needs of life.
  • Future Prospects: You can have an idea about the property by the area is going to develop by looking at the current local real estate trends. Upcoming malls and hotels are a key of the kind of development that the region is expected to undertake. The more developed an area, the more valuable your property becomes. High property values are especially useful when you want to go in for rent out or selling, so that it gives you good profit.
  • Your Neighbors: Try to meet the people living in the neighborhood of the choice of your area. If they are unfriendly to the idea of having you as their neighbor, it’s likely to show in their behavior.
  • Finance: You need to work out the financial implications of buying a home. You will have to decide whether which home loan, which bank at pertaining interest percentage you want to opt for to finance your property. If you already have the money, you need to work out whether investing your money in a property will affect your other expenditures in any way as you may need some for unforeseen emergencies.