Pooja Agrawal Blogs

Overcoming the down payment hurdle through HomeCapital

Buying your first home can be one of the most exciting and stressful moments at the same time. We often find ourselves in a situation where we are puzzled about our choices of buying a home which includes the type of home as well as the finance required to buy that home. But with the right information, you can shop for a house, apply for a home loan, and close the deal with confidence.

Buying your first home and saving cash for a down payment and Stamp Duty, always cause delay to purchase a home. Due to these reasons people often back up to the idea of buying the perfect home and settle for cheap or rented options. However, there are other factors that decide our possibilities of buying a home.

When applying for a home loan you should be careful about your credit or CIBIL score. It is important to ensure that your CIBIL score is in order and you’ll also want to consider the amount you’ll need to make buying your first home a reality. Of course, there’s your down payment — typically between 10 and 30 percent of the purchase price.

As you save money for your down payment, avoid the temptation to invest in the volatile stock market with money you hope to use in the next year or two. While you might be tempted to try to earn a greater return on your money than an online savings account paying one percent, the greatest risk is not having your money available when you’re ready to buy a house.

As you save, don’t underestimate how much money you’ll need — you might be surprised at how much cash you’ll need for Down payment but Program of HomeCapital can help you as they are providing Down Payment Assistance, an interest-free credit program directed at home buyers. This unique program is an opportunity to buy your home today without having to wait for years to accumulate savings. The program gives you the ability to buy your home today with your future savings. It provides for interest-free down payment assistance matching your contribution to support your home buying. It is their conviction that everyone should be given the opportunity of buying their dream home.

My Dream of Home Buying Fulfilled

It was a long-awaited wish of mine that one day I would live in Mumbai in a self-purchased home. It is a dream that is not only seen by me but also almost everyone who has worked hard to see this dream come true. If we look a few years back then we can tell the difference between the prices of the residential homes. They have skyrocketed and the people who saw the dream of owning a home that time after a couple of years, the rise in the prices have washed away their plans.

Since I worked in a reputed private firm, I was earning a decent amount and the second part was I was a single earning person living in Mumbai. The earnings from my father were sufficient enough to suffice the needs of our family and hence I didn’t have to contribute to fulfilling the needs of the family. So I decided to save up to buy a decent house of my own later down the line.

After amassing enough funds I was ready to take the biggest financial decision of my life i.e buying the house of my dreams. However, I felt that I couldn’t spend all my hard-earned money at once for the down payment and then to get a home loan for buying the house. The property that caught my eye was the Platinum Tower 31 in DN Nagar, Mumbai. This place was in close vicinity to my workplace and was well connected to other suburbs. The location of this project shared excellent connectivity with DN Nagar Metro Station, Western Express Highway, Domestic & International Airports, and Andheri Station of Western Railways.

It was the perfect home one could find, however, the down payment was the biggest challenge for me. I searched the internet for something that could help me buy my home along with some of my savings for the future. Just when I thought that I couldn’t fulfil my dream and should give up on this house, I found the website of HomeCapital that showed a ray of hope. They had this program that was known as Down Payment Assistance for the home buyers. The best part was the property I was looking for was listed under their offering of this program.

This program helped the buyers by providing up to half of the down payment amount which was in the form of interest-free credit. It was the perfect opportunity that I couldn’t let go. I contacted them and they helped me by making my home buying journey hassle-free. I would recommend everyone to check out HomeCapital’s website if you are looking to buy a home.


Effects of Migration of people on Residential Real Estate

Indian real estate sector is shaping itself dynamically with a progressive approach to migration. Presently, the Indian real estate sector is one of the most recognized sectors which influence rapid development and growth. According to the India Brand Equity Foundation (IBEF), the Indian real estate sector is expected to reach a market size of US $1 trillion by 2030 from the US $120 billion in 2017 and it will contribute 13% of the country’s GDP by 2025.

With this increasing rapid rate of development, the demand for residential housing is also increasing rapidly. Some of the reasons to consider for this rapid growth is increasing income, urbanization and economic growth moreover residential housing has become an essential asset for migrating population. Growing population in India has an impactful contribution in increasing the growth and rate of residential real estates. Education is also an important factor which has enabled the rural population to draft its shift to urban locations and thus, has made an increasing contribution to the urban housing system. Shifting of youth for employment to the cities has resulted in a key situation that has made housing more important. The increasing rate of development and education has made the need for rapid residential real estate sector growth a necessity. There has been a rapid increase of housing requirements also, due to the current practice and trend in Indian rural sector to migrate from rural areas to urban areas for a better livelihood.

Moreover, citizens in growing economies like India face difficult situations like a prospective home buyer facing a cash crunch to buy their dream home or having a limited choice of homes to select from. To bridge such situations HomeCapital has taken an initiative to assist the first time home buyers in India. It has come up with the first Down Payment Assistance Program with an objective to solve the biggest hurdle towards homeownership i.e. down payment. This program offers up to half of the home down payment requirement with zero cost EMI loans. Apart from this assistance provided by HomeCapital, the government of India has also taken steps forward by the scheme PMAY - Pradhan Mantri Awas Yojana which facilitates a vision to provide housing for all. The honorable prime minister of India has made an envision to provide housing for all Indians by 2022 when India will complete its 75th year of Independence. Such initiatives have made an important impact on making the residential real estate sector more convenient for home buyers.

The main objective of such an initiative is to make affordable housing in co-operation with public and private sectors. On December 2018, the Delhi Development Authority Housing Scheme launched 20,987 fresh housing units. From which 488 units were three-bedroom apartments for the high-income group (HIG), 579 units for the middle-income group and 16,296 units for the low-income group (LIG) and 3,624 units will be reserved for the economically-weaker section. This scheme has a direct link scheme under PMAY. Other such schemes include Tamil Nadu Housing Board Scheme (TNHB), Maharashtra Housing and Area Development Authority (MHADA), NTR Urban Housing Scheme and etc. All such initiatives were undertaken by government and private bodies to make dream housing affordable in India.